Upload
others
View
3
Download
0
Embed Size (px)
Citation preview
Issued by HSBC Asset Management (India) Private Limited
HSBC Global Asset Management
Schemewise Annual Reports : 2008 - 2009
2
SPONSORHSBC Securities and Capital Markets (India) Private LimitedRegd. Office: 52/60, Mahatma Gandhi Road, Fort, Mumbai 400 001.
TRUSTEEBoard of TrusteesOffice: 314, D. N. Road, Fort, Mumbai 400 001.
ASSET MANAGEMENT COMPANYHSBC Asset Management (India) Private LimitedCorp. & Regd. Office: 314, D. N. Road, Fort, Mumbai 400 001.
CUSTODIANJP Morgan Chase BankCorp. & Regd. Office: Mafatlal Centre, 9th Floor, Nariman Point, Mumbai - 400 021.
AUDITORS TO THE SCHEMEPrice WaterhouseChartered Accountants252, Veer Savarkar Marg, Shivaji Park, Dadar (West), Mumbai - 400 028.
LEGAL ADVISORSBharucha & Partners4th Floor, Cecil Court, Mahakavi Bhushan Marg, Colaba, Mumbai - 400 039.
REGISTRAR & TRANSFER AGENTSComputer Age Management Services (P) Ltd. (CAMS)Rayala Towers, Tower I, III Floor, 158 Anna Salai, Chennai - 600 002.
BOARD OF TRUSTEESMr. N. P. Gidwani - Chairman
Dr. Rudolf ApenbrinkMr. Nasser MunjeeMr. Manu TandonMr. Mehli MistriMr. Dilip J. Thakkar
BOARD OF DIRECTORSMs. Naina Lal Kidwai - Chairman
Mr. Ayaz EbrahimMr. S. P. Mustafa**Mr. Vithal PalekarMs. Kishori J. Udeshi*Mr. Vikramaaditya - Chief Executive Officer***
* Ms. Kishori Udeshi has been appointed as a Director with effect from 14 January 2009 andMr. Jagjit Lal Pasricha has resigned as a Director with effect from 19 January 2009.
** Mr. S. P. Mustafa has been appointed as a Director with effect from 2 September 2008 andMr. Nawshir Khurody has resigned as a Director with effect from 1 September 2008
*** Mr. Vikramaaditya has been appointed as the Chief Executive Officer with effect from 16 July 2008and Mr. Sanjay Prakash has resigned as the Chief Executive Officer with effect from 16 July 2008.
2Trustees’ Report 0For the year ended March 31, 2009 The Trustees present the seventh report and the audited financial statements of the Schemes of HSBC Mutual Fund (the "Fund"), for the year ended March 31, 2009. 1. Scheme Performance, Future Outlook And Operations of the Schemes
a) Operations And Performance of the Schemes
1HSBC Equity Fund (HEF) – an open-ended diversified Equity Scheme To generate long-term capital growth from an actively managed portfolio of equity and equity related securities. The Scheme offers investors two Options (1) Growth Option (2) Dividend Option. The Dividend Option offers Dividend Payout and Dividend Reinvestment Facilities. The net assets of the Scheme amounted to Rs. 1092.07 crores as at March 31, 2009 as against Rs.1052.51 crores as at March 31, 2008. Around 83% of the net assets were invested in equities, and 17% were invested in debt and money market instruments as at March 31, 2009. HSBC Equity Fund's approach is to invest across a range of market capitalizations with a preference for medium and large companies. Income is not a primary consideration in the investment policies of HEF. The fund outperformed its benchmark by approximately 900 bps in FY09 by holding higher than usual levels of CBLO/ reverse repos and a defensive (low beta) portfolio.
Date Of Inception : 10 Dec 02
Compounded Annualized Returns (%)
Schemes (P2P) 1 Year 3 Years 5 Years Since Inception
HSBC Equity Fund – Growth -31.92 -0.41 17.02 32.90
BSE200 -40.98 -6.88 9.22 18.78Past performance may or may not be sustained in future. ‘Since inception’ returns are calculated on Rs 10 invested at inception. Calculations are based on Growth NAVs.
HSBC India Opportunities Fund (HIOF) – an open-ended flexi-cap Equity Scheme
HIOF is a diversified equity scheme, which seeks long term capital growth through investments across all market capitalisations, including small, mid and large cap stocks. The fund aims to be predominantly invested in equity and equity related securities. However, it could move a significant portion of its assets towards fixed income securities if the fund manager becomes negative on equity markets.
1
The net assets of the Scheme amounted to Rs. 279.93 crores as at March 31, 2009 as compared to Rs. 522.72 crores as at March 31, 2008. Around 92.43% of the net assets were invested in equities and 7.57% were invested in debt and money market instruments as at March 31, 2009.
The fund outperformed its benchmark by 600 bps in the past 1 year on higher than normal levels of CBLO/ reverse repos and a defensive portfolio. In Financial Year 2009, the fund completed 5 years of existence which is usually a metric tracked by various fund evaluators.
Date Of Inception : 24 Feb 04
Compounded Annualized Returns (%)
Schemes (P2P) 1 Year 3 Years 5 Years Since Inception HSBC India Opportunities Fund – Growth -36.60 -5.10 15.40 14.21
BSE 500 -42.77 -7.94 9.44 9.15Past performance may or may not be sustained in future. ‘Since inception’ returns are calculated on Rs 10 invested at inception. Calculations are based on Growth NAVs. HSBC Midcap Equity Fund (HMEF) – an open-ended diversified Equity Scheme To generate long term capital growth from an actively managed portfolio of equity and equity related securities primarily being midcap stocks. However, it could move a portion of its assets towards fixed income securities if the fund manager becomes negative on the Indian equity markets. The net assets of the Scheme amounted to Rs. 93.67 crores as at March 31, 2009 as compared to Rs. 235.43 crores as at March 31, 2008. Around 90.74% of the net assets were invested in equities and 9.26% were invested in debt and money market instruments as at March 31, 2009. The fund outperformed its benchmark (BSE MIDCAP index) by 300 bps over the year. This was achieved by having higher than usual CBLO/ reverse repo levels and a more defensive portfolio.
Date Of Inception : 19 May 05 Compounded Annualized Returns (%)
Schemes (P2P) 1 Year 3 Years Since Inception HSBC Midcap Equity Fund – Growth -51.01 -18.43 0.28
BSE MID CAP -54.01 -17.92 -2.40 Past performance may or may not be sustained in future. ‘Since inception’ returns are calculated on Rs 10 invested at inception. Calculations are based on Growth NAVs. HSBC Advantage India Fund (HAIF) – an open-ended flexi-theme Equity scheme
2
w.e.f 16 June 2009, HSBC Advantage India Fund (HAIF) is renamed as HSBC Progressive Themes Fund (HPTF) The investment objective is to generate long term capital growth from an actively managed portfolio of equity and equity related securities by investing primarily in sectors, areas and themes that play an important role in, and / or benefit from, India's progress, reform process and economic development. The net assets of the Scheme amounted to Rs. 357.55 crores as at March 31, 2009 as compared to Rs. 712.21 crores as at March 31, 2008. Around 88.11% of the net assets were invested in equities and 11.89% were invested in debt and money market instruments as at March 31, 2009. HAIF underperformed its benchmark by 180 bps as one of the sector in which the Scheme invested (Infrastructure sector) underperformed its benchmark.
Date Of Inception : 23 Feb 06 Compounded Annualized Returns (%)
Schemes (P2P) 1 Year 3 Years Since Inception HSBC Advantage India Fund – Growth -42.78 -9.66 -5.75
BSE200 -40.98 -6.88 -3.64Past performance may or may not be sustained in future. ‘Since inception’ returns are calculated on Rs 10 invested at inception. Calculations are based on Growth NAVs. 3HSBC Tax Saver Equity Fund (HTSF) - an open ended Equity linked Savings Scheme HTSF seeks to provide long term capital appreciation by investing in a diversified portfolio of equity & equity related instruments of companies across various sectors and industries, with no capitalisation bias. The Fund may also invest in fixed income securities. The net assets of HSBC Tax Saver Equity Fund amounted to Rs. 180.58 crores as at March 31, 2009 compared to Rs. 227.83 crores as at March 31, 2008. Around 82.77 % of the net assets were invested in equities and 17.23% were invested in debt and money market instruments as at March 31, 2009. HTSF outperformed its benchmark by 1088 bps on the back of a defensive portfolio and higher levels of CBLO/ reverse repos than the normal circumstances.
Date Of Inception : 05 Jan 07 Compounded Annualized Returns (%)
Schemes (P2P) 1 Year Since Inception HSBC Tax Saver Equity Fund – Growth -30.10 -12.76
BSE200 -40.98 -15.54Past performance may or may not be sustained in future. . ‘Since inception’ returns are calculated on Rs 10 invested at inception. Calculations are based on Growth NAVs.
3
4HSBC Dynamic Fund (HDF) - an open-ended Scheme HDF seeks to provide long term capital appreciation by allocating funds in equity and equity related instruments. It also has the flexibility to move, entirely if required, into debt instruments in times that the view on equity markets seems negative. The net assets of HSBC Dynamic Fund amounted to Rs. 234.13 crores as at March 31, 2009 compared to Rs. 405.29 crores as at March 31, 2008. Around 87.98 % of the net assets were invested in equities and 12.02% were invested in debt and money market instruments as at March 31, 2009. HDF outperformed its benchmark by 625 bps over the past 1 year on its active asset allocation calls taken during the year.
Date Of Inception : 24 Sep 07 Compounded Annualized Returns (%)
Schemes (P2P) 1 Year Since Inception
HSBC Dynamic Fund – Growth -34.73 -26.18
BSE 200 -40.98 -32.50Past performance may or may not be sustained in future. ‘Since inception’ returns are calculated on Rs 10 invested at inception. Calculations are based on Growth NAVs. 5HSBC Emerging Markets Fund (HEMF) - an open-ended Scheme HEMF seeks to provide long term capital appreciation by investing in India and in the emerging markets, in equity and equity related instruments, share classes and units/securities issued by overseas mutual funds or unit trusts. The fund may also invest a limited proportion in debt and money market instruments. The net assets of HSBC Emerging Markets Fund amounted to Rs. 84.59 crores as at March 31, 2009. Around 95.70 % of the net assets were invested in HSBC GEM Equity Fund (overseas mutual fund) and 4.29% were invested in debt and money market instruments as at March 31, 2009. The fund outperformed its benchmark by about 115 bps over the past 1 year period.
Date Of Inception : 17 Mar 08 Compounded Annualized Returns (%)
Schemes (P2P) 1 Year Since Inception HSBC Emerging Markets Fund – Growth -37.63 -36.35
MSCI Emerging Markets Index -38.79 -34.58Past performance may or may not be sustained in future. ‘Since inception’ returns are calculated on Rs 10 invested at inception. Calculations are based on Growth NAVs.
4
6HSBC Unique Opportunities Fund (HUOF) - a close ended equity scheme with automatic conversion into an open-ended equity scheme at the end of three years from the date of allotment of units HUOF seeks to provide long-term capital growth from a diversified portfolio of equity and equity related instruments. The focus would be to invest in stocks of companies facing “out-of-ordinary” conditions. The net assets of HSBC Unique Opportunities Fund amounted to Rs. 219.50 crores as at March 31, 2009 compared to Rs. 520.82 crores as at March 31, 2008. Around 86.20 % of the net assets were invested in equities, 13.80% was invested in debt and money market instruments as at March 31, 2009. HUOF underperformed the index by 640 bps over the past 1 year period on account of higher midcap allocations vis-à-vis the benchmark.
Date Of Inception : 21 Mar 07 Compounded Annualized Returns (%)
Schemes (P2P) 1 Year Since Inception HSBC Unique Opportunities Fund – Growth -47.38 -24.39
BSE200 -40.98 -13.74Past performance may or may not be sustained in future. ‘Since inception’ returns are calculated on Rs 10 invested at inception. Calculations are based on Growth NAVs. 7HSBC Small Cap Fund (HSCF) - a close ended equity Scheme with automatic conversion into open–ended equity scheme at the end of three years from the date of allotment of units. HSCF seeks to provide long-term capital appreciation primarily from a diversified portfolio of equity and equity related instruments of small cap companies. The net assets of HSBC Small Cap Fund amounted to Rs. 35.50 crores as at March 31, 2009. Around 90.77 % of the net assets were invested in equities and 9.23% were invested in debt and money market instruments as at March 31, 2009. HSCF outperformed the BSE small cap index by 640 bps over the past 1 year on running higher cash levels in the early part of the year.
Date Of Inception : 24 Mar 08 Compounded Annualized Returns (%)
Schemes (P2P) 1 Year Since Inception
HSBC Small Cap Fund – Growth -52.23 -50.93
BSE SMALL CAP -58.60 -52.61Past performance may or may not be sustained in future. ‘Since inception’ returns are calculated on Rs 10 invested at inception. Calculations are based on Growth NAVs.
5
HSBC MIP (HMIP) – an open-ended Fund (Monthly income is not assured and is subject to availability of distributable surplus.) HMIP an open-ended Fund seeks to generate reasonable returns through investments in Debt and Money Market Instruments. The secondary objective of the scheme is to invest in equity and equity related instruments to seek capital appreciation. The Fund offers two Plans: Regular Plan and Savings Plan. The Regular Plan can have up to 15 per cent of the corpus invested in equities while the Savings Plan can have up to 25 per cent invested in equities. The net assets of HMIP Regular Plan (HMIP – R) amounted to Rs. 57.26 crores as at March 31, 2009 as compared to Rs. 63.75 crores as at March 31, 2008. Around 97.10% in debt and money market instruments & 2.90% of the net assets were invested in equities as at March 31, 2009. The net assets of HMIP Savings Plan (HMIP – S) amounted to Rs. 103.38 crores as at March 31, 2009 as compared to Rs. 137.78 crores as at March 31, 2008. Around 94.75% in debt and money market instruments & 5.25% of the net assets were invested in equities as at March 31, 2009. The performance of HMIP – R and HMIP – S is benchmarked against CRISIL MIP Blended Index. Hence, the Plan having lower equity allocation i.e. HMIP – R has outperformed the benchmark index whilst HMIP – S, which has higher equity allocation has underperformed the index over the said period. HMIP – Regular Plan
Date Of Inception : 24 Feb 04 Compounded Annualized Returns (%)
Schemes (P2P) 1 Year 3 Years Since Inception
HSBC MIP - Regular Plan – Growth 2.88 7.29 7.09
Crisil MIP Blended Index 0.19 5.52 6.02Past performance may or may not be sustained in future. ‘Since inception’ returns are calculated on Rs 10 invested at inception. Calculations are based on Growth NAVs. HMIP – Savings Plan
Date Of Inception : 24 Feb 04 Compounded Annualized Returns (%)
Schemes (P2P) 1 Year 3 Years Since Inception
HSBC MIP - Savings Plan – Growth -0.24 7.21 8.32
Crisil MIP Blended Index 0.19 5.52 6.02Past performance may or may not be sustained in future. ‘Since inception’ returns are calculated on Rs 10 invested at inception. Calculations are based on Growth NAVs.
6
HSBC Income Fund (HIF) – an open-ended Income Scheme HIF, launched in December 2002, seeks to generate reasonable income for the investor by investing in bonds, debentures, short-term instruments like commercial papers, repos, etc. The Scheme has two Plans - the Investment Plan and the Short Term Plan. The investment objective of Scheme/ Plan(s) is to generate reasonable income through a diversified portfolio of fixed income securities. The AMC's view of interest rate trends and the nature of the Plans will be reflected in the type and maturities of securities in which the Short Term and Investment Plans are invested. The net assets of HSBC Income Fund - Investment Plan (HIF – IP) amounted to Rs. 114.90 crores as at March 31, 2009 as compared to Rs. 35.98 crores as at March 31, 2008. Around 93.52% in debt and money market instruments, 3.01% of the net assets were invested in reverse repos/ CBLO and 3.47% in net current assets as at March 31, 2009. The net assets of HSBC Income Fund - Short Term Plan (HIF – STP) amounted to Rs. 151.55 crores as at March 31, 2009 as compared to Rs. 12.07 crores as at March 31, 2008. Around 95.26% in debt and money market instruments, 1.08% of the net assets were invested in reverse repos/ CBLO and 3.66% in net current assets as at March 31, 2009. HIF-IP has outperformed its benchmark through relatively active management of duration. 8HIF – IP
Date Of Inception : 10 Dec 02 Compounded Annualized Returns (%)
Schemes (P2P) 1 Year 3 Years 5 Years Since
Inception HSBC Income Fund - IP – Regular - Growth 9.05 7.93 5.66 6.46Crisil Composite Bond Fund Index 7.23 6.38 4.50 5.22
Past performance may or may not be sustained in future. ‘Since inception’ returns are calculated on Rs 10 invested at inception. Calculations are based on Growth NAVs. HIF-STP has marginally underperformed its benchmark as low assets under management for an extended period had constrained ability to actively manage the fund. 9HIF – STP
Date Of Inception : 10 Dec 02
Compounded Annualized Returns (%)
Schemes (P2P) 1 Year 2 Years 5 Years Since
Inception HSBC Income Fund - STP – Regular - Growth 9.45 8.01 6.61 6.49
CRISIL Short-Term Bond 9.67 8.05 6.18 6.00
7
Fund Index
Past performance may or may not be sustained in future. ‘Since inception’ returns are calculated on Rs 10 invested at inception. Calculations are based on Growth NAVs. 1 0HSBC Gilt Fund (HGF) – an open-ended Gilt Scheme HGF seeks to generate reasonable returns through investments in Government Securities (G-Secs) of various maturities. The AMC's view of interest rate trends and the nature of the plans will be reflected in the maturities of securities in which the Plans are invested. The net assets of HSBC Gilt Fund amounted to Rs. 17.96 crores as at March 31, 2009 as compared to Rs. 0.98 crores as at March 31, 2008. 76.47% of the net assets were invested in government securities, 26.56% of the net assets were invested in reverse repos/ CBLO and (3.03)% was invested in net current assets as at March 31, 2009. HGF underperformed the benchmark as low assets under management for an extended period had constrained ability to actively manage the fund.
Date Of Inception : 05 Dec 03 Compounded Annualized Returns (%)
Schemes (P2P) 1 Year 3 Years 5 Years Since Inception
HSBC Gilt Fund – Growth -7.67 0.30 1.29 1.41
I Sec Composite Index 12.83 9.16 6.26 6.38Past performance may or may not be sustained in future. ‘Since inception’ returns are calculated on Rs 10 invested at inception. Calculations are based on Growth NAVs.
1 1HSBC Floating Rate Fund (HFRF) – an open-ended Income Scheme HFRF, launched in November 2004, is an open ended Income Scheme that seeks to generate reasonable return with commensurate risk from a portfolio comprised of floating rate debt instruments and fixed rate debt instruments swapped for floating rate returns. The Scheme may also invest in fixed rate money market and debt instruments. There can be no assurance that the Scheme objective can be realised. The Scheme has two Plans – Long Term Plan and Short Term Plan. The net assets of HSBC Floating Rate Fund - Long Term Plan (HFRF – LTP) amounted to Rs. 454.44 crores as at March 31, 2009 as compared to Rs. 69.37 crores as at March 31, 2008. Around 103.86% in debt and money market instruments, 3.34% of the net assets were invested in reverse repos/ CBLO and (7.21)% in net current assets as at March 31, 2009. The net assets of HSBC Floating Rate Fund - Short Term Plan (HFRF – STP) amounted to Rs. 87.85 crores as at March 31, 2009 as compared to Rs. 139.39 crores as at March 31, 2008. Around 99.32% of the net assets were invested in reverse repos/ CBLO and 0.68% in net current assets as at March 31, 2009.
8
HFRF-LTP has marginally underperformed its benchmark index as focus on quality of the portfolio has impacted portfolio yield to some extent. HFRF – LTP
Date Of Inception : 16 Nov 04 Compounded Annualized Returns (%)
Schemes (P2P) 1 Year 3 Years Since Inception HSBC FRF - LTP - Regular Plan – Growth 8.68 8.09 7.21
Crisil Liquid Fund Index 8.78 7.56 6.70Past performance may or may not be sustained in future. ‘Since inception’ returns are calculated on Rs 10 invested at inception. Calculations are based on Growth NAVs. HFRF-STP has underperformed its benchmark as incremental investments over the last few months have been made very conservatively in line with the general risk environment. HFRF – STP
Date Of Inception : 16 Nov 04
Simple Annualized Returns (%)
Compounded Annualized Returns (%)
Schemes (P2P) 3 Months 6 Months 1 Year 3 Years Since
Inception HSBC FRF - STP - Regular Plan - Growth 4.42 6.38 7.60 7.53 6.86Crisil Liquid Fund Index 8.34 9.35 8.80 7.56 6.70
Past performance may or may not be sustained in future. ‘Since inception’ returns are calculated on Rs 10 invested at inception. Calculations are based on Growth NAVs. HSBC Cash Fund (HCF) – an open-ended Liquid Scheme HCF is a liquid scheme, aims to provide reasonable returns, commensurate with low risk while providing a high level of liquidity, through a portfolio of money market and debt securities. However, there can be no assurance that the scheme objective can be realised. The net assets of HSBC Cash Fund amounted to Rs. 492.65 crores as at March 31, 2009 as compared to Rs. 1332.08 crores as at March 31, 2008. Around 10.15% were invested in debt and money market instruments, 86.19% of the net assets were invested in reverse repos/ CBLO and 3.66% in net current assets as at March 31, 2009. HCF has underperformed the benchmark as incremental investments over the last few months have been made very conservatively in line with the general risk environment.
9
Date Of Inception : 04
Dec 02 Simple Annualized
Returns (%) Compounded Annualized Returns (%)
Schemes (P2P) 3 Months 6 Months 1 Year 3 Years 5 Years Since
Inception HSBC Cash Fund – Regular – Growth 4.56 5.92 7.24 7.29 6.38 6.14Crisil Liquid Fund Index 8.34 9.35 8.80 7.56 6.33 5.94
Past performance may or may not be sustained in future. ‘Since inception’ returns are calculated on Rs 10 invested at inception. Calculations are based on Growth NAVs. HSBC Ultra Short Term Bond Fund (HUSBF) - an open ended Debt Scheme (formally the scheme was known as HSBC Liquid Plus Fund) HUSBF seeks to provide liquidity and reasonable returns by investing primarily in a mix of short term debt and money market instruments. The net assets of HSBC Ultra Short Term Bond Fund amounted to Rs. 984.19 crores as at March 31, 2009 as compared to Rs. 2711.35 crores as at March 31, 2008. Around 73.23% of the net assets were invested in debt and money market instruments, 22.86% were invested in reverse repos/ CBLO and 4.91% was invested in net current assets as at March 31, 2009. HUSBF has underperformed its benchmark as incremental investments over the last few months have been made very conservatively in line with the general risk environment.
Date of Inception : 17 Oct 06 Compounded Annualized Returns (%)
Schemes (P2P) 1 Year Since Inception HSBC Ultra Short Term Bond Fund - Regular – Growth 7.94 8.14
Crisil Liquid Fund Index 8.78 7.87Past performance may or may not be sustained in future. ‘Since inception’ returns are calculated on Rs 10 invested at inception. Calculations are based on Growth NAVs. HSBC Flexi Debt Fund (HFDF) - an open ended Debt Scheme HFDF seeks to deliver returns in the form of interest income and capital gains, along with high liquidity, commensurate with the current view on the markets and the interest rate cycle, through active investment in debt and money market instruments. The net assets of HSBC Flexi Debt Fund amounted to Rs. 316.84 crores as at March 31, 2009 as compared to Rs. 234.69 crores as at March 31, 2008. Around 92.24% of the net assets were invested in debt and money market instruments, 3.06% were invested in net current assets and 4.70% was invested in reverse repos/ CBLO as at March 31, 2009. HFDF has outperformed its benchmark through relatively active management of duration.
10
Date Of Inception : 05 Oct 07 Compounded Annualized Returns (%)
Schemes (P2P) 1 Year Since Inception HSBC Flexi Debt Fund – Growth 11.84 10.86Crisil Composite Bond Fund Index 7.23 7.18
Past performance may or may not be sustained in future. ‘Since inception’ returns are calculated on Rs 10 invested at inception. Calculations are based on Growth NAVs. HSBC Fixed Term Series (HFTS) – a close-ended Income Scheme HFTS seeks generation of reasonable returns by investing in a portfolio of fixed income instruments normally maturing in line with the time profile of the respective plan(s). The Plans which were launched during the year were HSBC Fixed Term Series 50, HSBC Fixed Term Series 51, HSBC Fixed Term Series 52, HSBC Fixed Term Series 53, HSBC Fixed Term Series 54, HSBC Fixed Term Series 55, HSBC Fixed Term Series 56, HSBC Fixed Term Series 57, HSBC Fixed Term Series 58, HSBC Fixed Term Series 59, HSBC Fixed Term Series 60, HSBC Fixed Term Series 61, HSBC Fixed Term Series 62, HSBC Fixed Term Series 63, HSBC Fixed Term Series 66, HSBC Fixed Term Series 68. The Plans which matured during the year were HSBC Fixed Term Series 21, HSBC Fixed Term Series 22, HSBC Fixed Term Series 23, HSBC Fixed Term Series 24, HSBC Fixed Term Series 25, HSBC Fixed Term Series 27, HSBC Fixed Term Series 28, HSBC Fixed Term Series 32, HSBC Fixed Term Series 33, HSBC Fixed Term Series 35, HSBC Fixed Term Series 36, HSBC Fixed Term Series 37, HSBC Fixed Term Series 47, HSBC Fixed Term Series 48, HSBC Fixed Term Series 51, HSBC Fixed Term Series 55, HSBC Fixed Term Series 58, HSBC Fixed Term Series 60, HSBC Fixed Term Series 68. The Fixed Term Series as on 31 March 2009 are as follows:
Scheme Name Date of Launch
(NFO Open date) Tenure Date of Maturity Net Assets as
on 31 March 2009 (in Rs.
Crores) HSBC Fixed Term Series 30
03-May-2007 3 years 10-June-2010 87.12
HSBC Fixed Term Series 41
28-November-2007 16 months 20-April-2009 36.08
HSBC Fixed Term Series 42
29-January-2008 16 months 08-June-2009 685.099
HSBC Fixed Term Series 44
04-March-2008 13 months 19-April-2009 99.52
HSBC Fixed Term Series 45
18-March-2008 370 days 02-April-2009 19.98
HSBC Fixed Term Series 46
24-March-2008 370 days 02-April-2009 248.71
HSBC Fixed Term Series 49
28-March-2008 370 days 02-April-2009 361.50
11
HSBC Fixed Term Series 50
17-April-2008 370 days 04-May-2009 478.01
HSBC Fixed Term Series 52
24-April-2008 1 year 07-May-2009 221.15
HSBC Fixed Term Series 53
23-May-2008 370 days 03-June-2009 138.62
HSBC Fixed Term Series 54
27-May-2008 370 days 17-June-2009 174.72
HSBC Fixed Term Series 56
25-July-2008 370 days 12-August-2009 121.40
HSBC Fixed Term Series 57
13-August-2008 370 days 27-August-2009 59.005
HSBC Fixed Term Series 59
07-July-2008 1 year 16-July-2009 339.37
HSBC Fixed Term Series 61
17-July-2008 1 year 30-July-2009 91.53
HSBC Fixed Term Series 62
22-August-2008 1 year 27-August-2009 442.16
HSBC Fixed Term Series 63
04-September-2008 1 year 10-September-2009 95.03
HSBC Fixed Term Series 66
18-September-2008 18 months 01-April-2010 65.80
Past performance may or may not be sustained in future.
b) Market Overview & Outlook MARKET OVERVIEW (as furnished by HSBC Asset Management (India) Private Limited) MARKET OVERVIEW (As furnished by HSBC Asset Management (India) Private Limited) Equity Market Overview The financial year ended 31 March, 2009 was a highly eventful one with long standing institutions disappearing from the landscape in the whirlwind of the sub-prime crisis and derivative losses. The year can be split into three phases - the first from April 2008 till when Lehman Brothers filed for bankruptcy, which saw a blowout commodity rally (crude oil nudged close to USD 144/barrel) and 4 the sub-prime situation turning progressively worse. The United States (US) Government / Federal Reserve bailed out major institutions thought to be critical to the functioning of the financial system. The second phase from September 2008 till January 2009 saw a spate of bankruptcies most notably Lehman Brothers which saw the appearance of an acute level of risk aversion pushing the credit markets into a gridlock. This phase also coincided with the fiscal / monetary stimuli by various governments to take the credit crisis head on. Globally, markets stabilized around their October 2008 lows and a semblance of normality started re-appearing in financial markets in this period. The third phase from February 2009 onwards witnessed a sharp rally as a weakening US dollar spewed money into emerging markets. The sensex fell 38% during the financial year. For the financial year 2009, the popular indices viz. BSE Sensex and CNX Nifty were down 37.94% and 36.19% respectively. The BSE Midcap (54.01)% and the broader
12
indices like BSE 200 (40.98)% and BSE 500 (42.77)% also reflected the correction across the markets. Within sectoral indices the best performing indices were BSE FMCG (11.08)% and BSE Oil and Gas (29.58)% while the worst performing indices were BSE Realty (79.37)%, due to the high leverage on the balance sheets, BSE Metals (58.67)%, due to slowdown in global growth and BSE Consumer Durables (58.14)% and BSE Capital goods (53.84%). In a year that saw sell-off across emerging markets, FIIs were net sellers of the tune USD 10.4 billion in the Indian equity markets while Domestic Institutional Investors (insurance & mutual funds) were buyers to the tune of USD 13.1 billion. Further, FIIs were net sellers in the derivative markets as hedge funds, and p-notes unwound positions in a rapidly deleveraging world. Thus, sentiment remained negative as few US based investment banks filed for bankruptcy in the midst of liquidity and credit crisis and safety took precedence over growth. Debt Market Overview Two contrarian forces one inflationary and the other deflationary had been in play since 2007: On the one hand strong demand from emerging economies were leading commodities higher and fuelling inflation, while on the other the housing led credit crisis in the US was starting to exert a deflationary force. The first force was dominant till early July 2008 leading commodity prices to fresh peaks and inflation to multi year highs. Since then, however, the second force took hold with the result that commodity prices fell sharply from the top, growth and inflation numbers toppled worldwide, and central bankers shifted focus to achieving financial stability and protecting growth. The financial crisis hit the domestic markets towards September 2008, leading to acute disruption in money markets. The Reserve Bank of India (RBI) acted proactively cutting the cash reserve ratio (CRR) by an unprecedented 400 bps between September 2008 and January 2009. Similarly, the reverse repo rate had been cut by 275 bps since October 2008 while the repo rate had been cut by 425 bps over the same period. Bond market yields fell in line with the unprecedented monetary easing up till the first week of January 2009. Thereon, supply pressures on bond markets rose as a result of government fiscal slippages aimed at stimulating the economy. The RBI, in line with similar measures elsewhere in the world, started buying government securities to lessen the impact on yields from the rise in government borrowing. Although this helped market sentiment, it could not prevent a general rise in yields towards fiscal close. As a result, the 10 year benchmark sovereign yield closed the fiscal at 7% from a low of sub 5% hit in early January 2009. Money market rates stabilized after the initial mayhem of September 2008 and October 2008 and liquidity came back to interbank markets. MARKET OUTLOOK (as furnished by HSBC Asset Management (India) Private Limited) Equity Market Outlook Financial Year (FY) 2008-09 was a year marked by a strong correlation between the Indian market and global markets with key indices ending deeply in the red on the back of the subprime crisis and derivative led losses across major financial stocks in the United States (US). Even in India forex losses ran across corporate India though at a smaller magnitude. FY 10 has begun on a better note on account of various fundamental and technical factors.
13
GDP for FY 09 grew at 6.7% against FY 08 levels of 9%. Agriculture posted a below trend growth rate of 1.6% and industry grew by 3.9% (versus 8.1% in FY 08) with services registering a close to 9.7% growth. IIP grew by a mere 2.6%. Although order books of engineering / capital goods were running at record high levels, there was possibility of delays in execution as funding sources for the developers (equity, ECB, private equity, FCCB) had dried up. A sharp increase in subsidy on account of oil, fertilizers and food led to a cut back in discretionary spending. Inflation rose on the back of a surging crude and higher prices of agricultural commodities to top at 12.91% for the week ending 2 August, 2008. A slow down in the growth rates in the US / EU and other markets finally tamed the surge in crude. As growth rates stumbled, governments / monetary authorities the world over triggered fiscal stimuli / monetary easing to escape recessionary forces. This was followed in India as well which started monetary easing / fiscal stimuli to keep growth rates buoyant. On the positive side, India continues to do better in relative terms and we expect GDP growth of 6-6.5% for FY10. The broad themes that are driving domestic growth viz. capital expenditure, infrastructure building and domestic consumption are still intact. The key concerns at this point stems from a ballooning fiscal deficit at the consolidated level (Centre & State) with salary revision for Central / State Government employees threatening a cut back in discretionary spending. Inflation is likely to remain benign for the first half of FY10 on a favourable base effect but we anticipate it to go back to trend levels of 5-5.5% for the second half of FY10 as this base effect wears off. On a valuations perspective, the markets are currently trading at a P/E ratio of around 12 times FY 2010 earnings. This is well below the 10-year average given the extreme risk aversion prevailing in the markets. However, the underlying growth in the economy and corporate earnings growth (15% in the long term) makes the market attractive from a longer-term view. The short term could see enhanced volatility arising from various factors. Increase in commodity prices continues to be a risk in the medium term as the US dollar continues to struggle with the ballooning US fiscal situation. Debt Market Outlook Excess supply of government bonds, as a result of fiscal slippages to arrest the downward growth momentum, has been a reality for bond markets since January 2009. However, this is now compounded with some fatigue in buying longer duration as economic data is showing signs of recovery, commodities are showing signs of rally and expectations of incremental monetary easing from the RBI are beginning to unwind. However, system liquidity remains surplus and bank deposits continue to grow thereby providing resistance to bond yields from rising sharply. Given the above factors, we believe that the market would continue to provide tactical opportunities although the fundamental bias should be for lower duration. Also, any mitigation of bond supply pressure or a new downturn in the ongoing economic recovery may provide space for opportunistic longer duration plays. On the other hand, if the recovery cycle continues uninterrupted and commodity prices remain firm, central banks may start to worry about withdrawing the current monetary stimulus by sometime early 2010; with consequent impact on bond markets. 2. BRIEF BACKGROUND OF SPONSORS, BOARD OF TRUSTEES AND ASSET MANAGEMENT COMPANY a) Sponsor
14
HSBC Mutual Fund is sponsored by HSBC Securities and Capital Markets (India) Private Limited (HSCI). The Sponsor is the Settler of the Mutual Fund Trust. The Sponsor has entrusted a sum of Rs. 1,00,000 (Rupees One Lakh only) to the Trustee as the initial contribution towards the corpus of the Mutual Fund. HSCI is a member of the HSBC Group, one of the largest banking and financial services organisations, in the world. Headquartered in London, HSBC operates through long-established businesses in five regions: Europe, Asia-Pacific, Middle East, America and Africa. Through its global network of 9,500 offices in 86 countries and territories, HSBC provides a comprehensive range of financial services to personal, commercial, corporate, institutional investment and private banking clients. HSCI offers integrated investment banking services, securities and corporate finance & advisory. HSCI is a member of The Bombay Stock Exchange Limited and National Stock Exchange (capital and derivative market segments) and is also a category I merchant banker and underwriter registered with Securities and Exchange Board of India. HSCI holds 100% of the paid-up equity share capital of the AMC. b) HSBC Mutual Fund HSBC Mutual Fund ("the Mutual Fund" or "the Fund") has been constituted as a Trust in accordance with the provisions of the Indian Trusts Act, 1882 (2 of 1882) vide a Trust Deed dated February 7, 2002 with HSBC Securities and Capital Markets (India) Private Limited, as the Sponsor and the Board of Individual Trustees. The Trustee has entered into an Investment Management Agreement dated February 7, 2002 with HSBC Asset Management (India) Private Limited (the AMC) to function as the Investment Manager for all the Schemes of the Fund. The Fund was registered with SEBI vide registration number MF/046/02/5 dated May 27, 2002. The Trust has been formed for the purpose of pooling of capital from the public for collective investment in securities / any other property for the purpose of providing facilities for participation by persons as beneficiaries in such properties / investments and in the profits / income arising therefrom. c) Board of Trustees (the Trustees) The Board of Trustees are the exclusive owner of the Trust Fund and holds the same in trust for the benefit of the unitholders. The Trustees have been discharging their duties and carrying out their responsibilities as provided in the SEBI (Mutual Funds) Regulations, 1996 and the Trust Deed. The 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 said Regulations, directions and guidelines issued by SEBI, the Stock Exchanges, the Association of Mutual Funds of India and other regulatory agencies. d) Asset Management Company (the AMC) HSBC Asset Management (India) Private Limited (the Investment Manager or the AMC) is a private limited company incorporated under the Companies Act, 1956 on December 12, 2001 having its Registered Office at 314, D. N. Road, Fort, Mumbai 400 001. HSBC Asset Management (India) Private Limited has been appointed as the Asset Management Company of the HSBC Mutual Fund by the Trustee vide Investment Management Agreement (IMA) dated February 7, 2002 and executed between the Trustees and the AMC. SEBI approved the AMC to act as the Investment Manager of the Fund vide its letter No. MFD/BC/163/2002 dated May 27, 2002.
15
The paid-up equity share capital of the AMC is Rs. 9 crores. HSBC Securities and Capital Markets (India) Private Limited holds 100% of the paid-up equity share capital of the AMC. 3. INVESTMENT OBJECTIVE OF THE SCHEME The investment objective of the Scheme has been provided above under the heading "Scheme Performance, Future Outlook and Operation of the Scheme" 4. SIGNIFICANT ACCOUNTING POLICIES The accounting policies are in accordance with Securities and Exchange Board of India (Mutual Funds) Regulations, 1996. 5. UNCLAIMED DIVIDENDS & REDEMPTIONS Nil 6. INVESTOR SERVICES During the year, the number of official points of acceptance of transactions increased significantly to about 182 locations. In addition to the offices of the transfer agency, the company has Investor Service Centres in 14 locations at its own offices - namely Mumbai, New Delhi, Kolkata, Chennai, Bangalore, Hyderabad, Pune, Ahmedabad, Indore, Chandigarh, Kochi, Coimbatore, Lucknow and Vadodara. With a view to enhancing customer convenience, the Asset Management Company has extended the facility of crediting investor bank accounts directly by way of NEFT / RTGS (for credit of redemption and dividend proceeds). Dividend payouts are done within 5 working days from the record date in all schemes. The internal standards on redemption payouts have been consistently met, with very few exceptions. The number of locations for the ECS Auto Debit facility for investments through Systematic Investment Plan also increased to about 74 by March 2009. On the distribution front, the number of empanelled distributors increased from 7859 as on 31 March, 2008 to 8632 as on 31 March, 2009. During the year, the Asset Management Company initiated tie-ups for online distribution of the Mutual Fund's schemes with several channel partners taking the total number of such tie-ups to 24 (Angel Capital & Department Market Ltd., Bajaj Capital Limited, Bonanza Portfolio Limited, Citibank N.A., Citigroup Wealth Advisors India Private Limited, HDFC Bank Limited, Hongkong & Shanghai Banking Corporation Limited, HSBC Corporate Investment Solution Services, ICICI Securities Limited, India Infoline Limited, Karvy Stock Broking Limited, Kotak Mahindra Bank Limited, Kotak Securities Limited, Motilal Oswal Securities Limited, NJ India Invest Private Limited, Reliance Securities Limited, RR Investors Capital Services Private Limited, SBICAP Securities Limited, Sharekhan Limited, SMC Global Securities Limited, Standard Chartered – STCI Capital Markets Ltd., Tom Distribution Services Limited, Yes Bank Limited). Call centre operations have been extended to cover the entire country. The Asset Management Company has outsourced certain back office services including call centre services to HSBC Operations and Processing Enterprise (India) Private Limited (HOPE). The migration of the call centre to HOPE, Chennai was successfully completed during the year. 7. STATUTORY DETAILS a) The Sponsors are not responsible or liable for any loss resulting from the operation of the Schemes of the Fund beyond initial contribution of Rs. 1 lakh for setting up the Fund.
16
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 shall be disclosed on the website at www.assetmanagement.hsbc.com/in and shall be available for inspection at the Head Office of the mutual fund. Present and prospective unit holder can obtain copy of the trust deed, the full Annual Report of the Scheme(s), the Annual Report of HSBC Asset Management (India) Private Limited and the text of the relevant Scheme(s) at a price. 8. ACKNOWLEDGEMENTS The Trustees wish to thank the Unitholders of the Schemes for their support throughout the year and also thank the Government of India, the Securities and Exchange Board of India (SEBI), the Reserve Bank of India (RBI) and the Association of Mutual Funds in India (AMFI) for the guidance provided by them. The Trustees also appreciate the service provided by the Registrar and Transfer Agent, Fund Accountant, Custodian, Bankers, Distributors and Brokers. The guidance and services provided by the Auditors and advocates and the ebullience, sincerity and dedication of the employees of HSBC Asset Management (India) Private Limited is also appreciated. The Trustees look forward to the continued support of everyone. For and on behalf of the Board of Trustees of HSBC Mutual Fund Dilip J. Thakkar Trustee MUMBAI July 6, 2009
17
Disclaimers This content of this report has been prepared by HSBC Asset Management (India) Private Limited (HSBC) for information purposes only and should not be construed as an offer or solicitation of an offer for purchase of any of the funds of HSBC Mutual Fund. The information is for general information only and does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this information. Investments in mutual funds inherently involve risks and investors should read the relevant documents/ information for details and risk factors and consult their legal, tax and financial advisors before investing. Investors should understand that statements made herein regarding future prospects may not be realised. Neither this document nor the units of HSBC Mutual Fund have been registered in any jurisdiction. The distribution of this document in certain jurisdictions may be restricted or totally prohibited and accordingly, persons who come into possession of this document are required to inform themselves about, and to observe, any such restrictions. Investors may obtain Statement of Additional Information, Scheme Information Document and Key Information Memorandums along with application forms from the office of HSBC Mutual Fund, 314 D. N. Road, Fort, Mumbai 400 001. Tel: 022-6666 8819. Statutory Details: HSBC Mutual Fund has been set up as a trust by HSBC Securities and Capital Markets (India) Private Limited (liability restricted to the corpus of Rs 1 lakh). The Sponsor/associates of the Sponsor/Asset Management Company (AMC) are not responsible or liable for any loss or shortfall resulting from the operation of the Schemes. The Trustees of HSBC Mutual Fund have appointed HSBC Asset Management (India) Private Limited as the Investment Manager. Risk Factors: All investments in mutual funds and securities are subject to market risks and the Net Asset Value (NAV) of the Scheme(s) may go up or down depending on the factors and forces affecting the securities markets. There can be no assurance that the objectives of the Scheme(s) will be achieved. Past performance of the Sponsor, AMC, Mutual Fund or any associates of the Sponsor/AMC does not indicate the future performance of the Scheme(s) of the Mutual Fund. HSBC Equity Fund (HEF), HSBC India Opportunities Fund (HIOF), HSBC Midcap Equity Fund (HMEF), HSBC Progressive Themes Fund (HPTF), HSBC Tax Saver Equity Fund (HTSF), HSBC Dynamic Fund (HDF), HSBC Emerging Markets Fund (HEMF), HSBC Unique Opportunities Fund (HUOF), HSBC Small Cap Fund (HSCF), HSBC Income Fund (HIF), HSBC Gilt Fund (HGF), HSBC Cash Fund (HCF), HSBC Ultra Short Term Bond Fund (HUSBF), HSBC MIP (HMIP), HSBC Floating Rate Fund (HFRF), HSBC Flexi Debt Fund (HFDF) & HSBC Fixed Term Series (HFTS) are the names of the Schemes and do not in any manner indicate the quality of the Schemes or their future prospects or returns. Scheme Classification & Investment Objective: HEF (an open-ended diversified equity Scheme) aims to generate long term capital growth from an actively managed portfolio of equity and equity related securities. HIOF (an open-ended flexi-cap equity Scheme) seeks long term capital growth through investments across all market capitalisations, including small, mid and large cap stocks. It aims to be predominantly invested in equity & equity related securities. However it could move a significant portion of its assets towards fixed income securities if the fund manager becomes negative on equity markets. HMEF (an open-ended diversified equity Scheme) seeks to generate long term capital growth from an actively managed portfolio of equity and equity related securities primarily being midcap stocks. However, it could move a portion of its assets towards fixed income securities if the fund manager becomes negative on the Indian equity markets. HPTF (an open-ended flexi-theme equity Scheme) seeks to generate long term capital growth from an actively managed portfolio of equity and equity related securities by investing primarily in sectors, areas and themes that play an important role in, and/or benefit from India’s progress, reform process and economic development. HTSF (an open ended Equity Linked Savings Scheme) seeks to provide long term capital appreciation by investing in a diversified portfolio of equity & equity related instruments of companies across various sectors and industries, with no capitalisation bias. The Fund may also invest in fixed income securities. HUOF (a 3 year close ended equity scheme with automatic conversion into an open ended equity scheme at the end of 3 years from the date of allotment of units) seeks to provide long-term capital growth from a diversified portfolio of equity and equity related instruments. The focus would be to invest in stocks of companies facing “out-of-ordinary” conditions and HDF (an open-ended Scheme) seeks to provide long term capital appreciation by allocating funds in equity and equity related instruments. It also has the flexibility to move, entirely if required, into debt & money market instruments in times when the view on equity markets seems negative. HEMF (an open ended Scheme) seeks to provide long term capital appreciation by investing in India and in the emerging markets, in equity and equity related instruments, share classes and units/securities issued by overseas mutual funds or unit trusts. The fund may also invest a limited proportion in debt and money market instruments. HSCF (a 3 year close-ended equity scheme with automatic conversion into open ended equity scheme at the end of three years from the date of allotment of Units) seeks to provide long-term capital appreciation primarily from a diversified portfolio of equity and equity related instruments of small cap companies. HIF (an open-ended income scheme) aims to provide a reasonable income through a diversified portfolio of fixed income securities. The AMC's view of interest rate trends and the nature of the Plans will be reflected in the type and
18
19
maturities of securities in which the Short Term and Investment Plans are invested. HGF (an open-ended gilt scheme) aims to generate reasonable returns through investments in Government Securities of various maturities. The AMC's view of interest rate trends and the nature of the plans will be reflected in the maturities of securities in which the Plans are invested. HCF (an open-ended liquid scheme) aims to provide reasonable returns, commensurate with low risk while providing a high level of liquidity, through a portfolio of money market and debt securities. HUSBF (an open-ended debt Scheme) seeks to provide liquidity and reasonable returns by investing primarily in a mix of short term debt and money market instruments. HMIP (an open-ended Fund with Regular & Savings Plans; monthly income is not assured and is subject to availability of distributable surplus) seeks to generate reasonable returns through investments in debt and money market instruments with a secondary objective to seek capital appreciation through investments in equity and equity related instruments. HFRF (an open-ended income scheme) seeks to generate a reasonable return with commensurate risk through investments in floating rate debt instruments and fixed rate debt instruments swapped for floating rate returns. The Scheme may also invest in fixed rate money market and debt instruments. HFDF (an open ended Debt Scheme) seeks to deliver returns in the form of interest income and capital gains, along with high liquidity, commensurate with the current view on the markets and the interest rate cycle, through active investment in debt and money market instruments. HFTS (a close-ended Income Scheme) seeks to generate reasonable returns by investing in a portfolio of fixed income instruments normally maturing in line with the time profile of the respective Plan(s). Terms of Issue: Units of the Scheme(s) are being offered at NAV based prices, subject to the prevailing loads. The AMC calculates and publishes NAVs and offers for sale, redemption and switch outs, units of the Scheme(s) on all Business Days, at the Applicable NAV for all Schemes (at least once a week, i.e., every Wednesday and daily during the period of redemption in case of HSCF). HUOF, HSCF & HFTS will not be open for ongoing subscriptions/ switch ins. HUOF & HSCF would be available for sale on an ongoing basis (after a period of 3 years from the date of allotment). Conversion of HUOF & HSCF to an open-ended scheme will be done only after the balance unamortized amount has been fully recovered from the Scheme. Units can be redeemed/switched out on every Business Day at NAV based prices, subject to prevailing exit loads. In case of HSCF, units can be redeemed / switched out on a monthly basis on the stipulated date i.e. last 3 business days of every month at NAV based prices, subject to provisions of exit load, if any and recovery of balance proportionate unamortized NFO expenses. Load Structure (includes SIP/STP): HEF – Entry – 2.25% for investments/switch ins* < Rs 5 crores, otherwise Nil. For switch transactions from HCF to HEF (excludes existing & prospective STP transactions) – Nil. Exit – 1.25% for < Rs 5 crores, if redeemed/switched out* within 1 year from date of investment, otherwise Nil. For switch transactions from HCF to HEF and subsequent switch transactions from HEF to any other debt or equity scheme (excludes existing & prospective STP transactions) - 2.25% for < Rs 5 crores, if above switch investments are redeemed/ switched out within 1 year from the date of switch, otherwise Nil. HIOF, HMEF, HPTF – Entry – 2.25% for investments/switch ins* < Rs 5 crores, otherwise Nil. Exit – 1% for < Rs 5 crores, if redeemed/switched out* within 1 year from date of investment, otherwise Nil. HTSF - Entry - 2.25% for investments/switch ins* < Rs 1 crore, otherwise Nil. Exit – Nil. HUOF - During close ended period - Exit - Nil. However the investor will have to bear the proportionate unamortized initial issue expenses for exiting during the close ended period. SIP/SEP/STP in HUOF available after conversion to an open-ended scheme. HSCF – During close ended period - Entry – Nil; Exit # – If the investments are redeemed/ switched out within: 1 year – 2%; 2 years – 1.5% and 3 years – 1%. # Balance proportionate unamortized NFO expenses to be recovered in case of exit within close-ended period. Upon conversion into an open ended scheme - Entry - For investments/ switched in below Rs. 5 Crores - 2.25%, otherwise Nil; Exit – Nil. HMIP-R – Entry – Nil. Exit - 1% - if redeemed/switched out within 1 year from date of investment. HMIP-S – Entry – Nil. Exit – 1.5% - if redeemed/switched out within 1 year from date of investment. HIF-IP - Entry - Nil. Exit - Regular & Institutional Options: 1%, if redeemed/ switched out within 1 year from date of investments. HIF-ST – Entry – Nil. Exit - 0.5% for investments in Regular Option, if redeemed/ switched out within 6 months from the date of investment. For HFRF-LT – Entry – Nil and Exit - 0.25% for investments/ switch-ins in Regular Option, if redeemed/ switched out within 3 months from date of investment. Daily dividend sub-option under Regular and Institutional Option – Nil. In case of HDF & HEMF - Entry - 2.50% for investments/switch in* below Rs 5 crores, otherwise Nil. Exit - 1% for investment below Rs. 5 crores, if redeemed/switched out* within 1 year from the date of allotment/investment, otherwise Nil. HUSBF – Entry and Exit - Nil. HFDF – Entry Nil. Exit – 0.75% - in Regular Option, if redeemed/ switched out within 6 months from the date of investment and 0.25% - in Regular Option, investments redeemed/ switched out from greater than 6 months to 1 year. HGF - Entry – Nil and Exit - 0.5%, if redeemed/ switched out within 6 months from the date of investment. *No load in case of switches between equity Schemes of HSBC Mutual Fund. No load in case of HCF & HFRF-ST. HFTS – Consult the nearest investor service centre for details. The entry/exit load set forth above is subject to change at the discretion of the AMC and such changes shall be implemented prospectively. Mutual Fund investments are subject to market risks. Please read the Statement of Additional Information and Scheme Information Document carefully before investing.
Auditors' Report To the Board of Trustees of HSBC MUTUAL FUND 1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Equity Fund ("The Scheme") as at
March 31, 2009, the related Revenue Account for the year ended on that date annexed thereto and the Cash Flow Statement for the year ended on that date which we have signed under reference to this report. These financial statements are the responsibility of the Board of Trustees of HSBC Mutual Fund and the Management of HSBC Asset Management (India) 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. Our procedures included confirmation of securities owned and unit capital balances as at March 31, 2009 by correspondence with the custodian/others and registrar and transfer agent respectively. 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,
(i) The Balance Sheet, 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 also give respectively, a true and fair view of the state of affairs of HSBC Mutual Fund – HSBC Equity Fund as at March 31, 2009, its net deficit and its cash flow for the year ended on that date.
(ii) The Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended on that
date, together with the notes thereon have been prepared in all material respects 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.
PARTHA GHOSH Partner Membership No. F / 55913 For and on behalf of PRICE WATERHOUSE Chartered Accountants Place: Mumbai Date: July 06, 2009
March 31, 2009 March 31, 2008Schedule Rupees Rupees
ASSETS
Investments 1 8,504,682,540 8,968,143,662
Deposits 2 625,603,000 335,603,000
Other Current Assets 3 1,924,369,609 1,619,260,643
TOTAL 11,054,655,149 10,923,007,305
LIABILITIES
Unit Capital 4 3,984,626,296 2,776,899,429
Reserves and Surplus 5 6,936,276,496 7,791,455,810
Current Liabilities and Provisions 6 133,752,357 354,652,066
TOTAL (0.52) 11,054,655,149 10,923,007,305
Diff
March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008 March 31, 2008RECONCILIATION OF NET ASSET VALUE PER UNIT Growth Option Dividend Option Total Growth Option Dividend Option Total
Rupees Rupees Rupees Rupees Rupees Rupees
Net Assets as per Balance Sheet (Total Assets less Current Liabilities and Provisions ) (Note 2.6) 4,983,739,761 5,937,163,031 10,920,902,792 4,213,261,444 6,355,093,795 10,568,355,239
Number of Units in Issue 82,822,603.543 315,640,026.026 47,671,381.108 230,018,561.715 Net Asset Value per Unit 60.1737 18.8099 88.3814 27.6286
Notes to the Financial Statements. 8
This is the Balance Sheet referred to in our report of even date.
PARTHA GHOSH For Board of Trustees of For HSBC Asset Management (India)Partner HSBC Mutual Fund Private LimitedMembership No. F-55913For and on behalf of PRICE WATERHOUSE Chartered Accountants
VikramaadityaTrustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai
Date : 06 July 2009 Fund Manager(s)
The schedules referred to herein form an integral part of the Financial Statements.
HSBC MUTUAL FUND - HSBC EQUITY FUND
Balance Sheet as at March 31, 2009
0
April 01, 2008 to April 01, 2007 to
March 31, 2009 March 31, 2008Schedule Rupees Rupees
INCOME AND GAINS
Dividends (Note 2.4) 112,999,751 60,711,388
Interest 7 142,694,000 76,098,650
Net Profit on Sale of Investments and Derivatives (Note 2.3 and 2.5) - 3,031,877,425
TOTAL 255,693,751 3,168,687,463
EXPENSES AND LOSSES
Net Loss on Sale of Investments and Derivatives (Note 2.3 and 2.5) 2,701,833,666 -
Realised Loss on Foreign Currency Transactions(Net) (Note 2.10) - 25,914
Investment Management and Advisory Fees (Note 3) 69,759,167 115,200,990
Transfer Agent Fees and Expenses 21,555,633 18,006,142
Trusteeship Fees and Expenses (Note 4) 44,943 35,647
Custodian Fees and Expenses (Note 5) 5,833,469 5,272,151
Audit Fees 550,000 700,000
Selling and Distribution Expenses 120,575,575 60,069,184
Other Operating Expenses 18,911,902 28,223,559
TOTAL 2,939,064,355 227,533,587
Less: Expenses to be Reimbursed by the Investment Manager (Note 7) 16,866,434 -
TOTAL 2,922,197,921 227,533,587
Net Realised (Losses)/Gains for the Year (2,666,504,170) 2,941,153,876
Net Change in Unrealised Depreciation in Value of Investments and Derivatives (501,741,889) -
Net (Losses)/Gains for the Year (3,168,246,058) 2,941,153,876
Net Change in Unrealised Appreciation in Value of Investments and Derivatives (1,166,575,576) (368,586,195)
Net (Deficit)/Surplus including Net change in Unrealised Appreciation/Depreciation in Value of Investments and Derivatives (4,334,821,634) 2,572,567,681
Transferred to Unrealised Appreciation Reserve 1,166,575,576 368,586,195
Net (Deficit)/Surplus for the Year (3,168,246,058) 2,941,153,876
April 01, 2008 to April 01, 2007 toMarch 31, 2009 March 31, 2008
Rupees Rupees
Net (Deficit)/Surplus for the Year (3,168,246,059) 2,941,153,876
Transfer from Income Equalisation Reserve (Note 2.8) 3,116,497,351 719,726,210
Dividend / Distributions - (2,336,539,037)
Dividend / Distributions - Prior Year (24,610) -
Balance Transferred to Reserve Fund (51,773,318) 1,324,341,049
Notes to the Financial Statements. 8
This is the Revenue Account referred to in our report of even date.
PARTHA GHOSH For Board of Trustees of For HSBC Asset Management (India)Partner HSBC Mutual Fund Private LimitedMembership No. F-55913For and on behalf of PRICE WATERHOUSE Chartered Accountants
Vikramaaditya
Trustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai
Date : 06 July 2009 Fund Manager(s)
The Schedules referred to herein form an integral part of the Financial Statements.
HSBC MUTUAL FUND - HSBC EQUITY FUND
Revenue Account for the year ended March 31, 2009
1
SCHEDULE 1 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008
Investments Market/Fair Value Cost Market/Fair Value Cost
(Notes 2.2, 2.3, 8, 9 and 13) Rupees Rupees Rupees Rupees
(Refer to the attached Statement of Portfolio Holding as at March 31, 2009)
Equity Shares 8,504,682,540 9,006,424,429 8,968,143,662 7,809,396,716
TOTAL 8,504,682,540 9,006,424,429 8,968,143,662 7,809,396,716
SCHEDULE 2 March 31, 2009 March 31, 2008Deposits Rupees Rupees
Deposits with Scheduled Bank (Under Lien Towards Margin Deposit for Equity Derivatives Rs 330,000,000) 560,000,000 330,000,000
Margin Deposit with Clearing Corporation of India towards Collateralized Borrowing and Lending Obligation 5,603,000 5,603,000
Margin Deposit with Clearing Corporation of India Limited towards Reverse Repos and Governement Securities 60,000,000 -
TOTAL 625,603,000 335,603,000
SCHEDULE 3 March 31, 2009 March 31, 2008Other Current Assets Rupees Rupees
Balances with Banks- in Current Account 20,854,960 11,265,759 - in Dividend Account 569,361 14,620
Sales Contracts Awaiting Completion - Equity Shares 82,977,090 64,493,033
Application Money Pending Allotment - Equity Shares - 96,304,710
Collateralised Borrowing and Lending Obligation 846,127,582 1,113,682,970
Reverse Repos 808,729,589 155,927,371
Unit Subscription Receivable 44,416,733 53,703,059
Receivable on Outstanding Future Contracts 14,715,811
Inter-Scheme Receivable - For Switch - In 11,615,033 19,087,685 - For Others 124,604 525,000
Derivative Margin Deposit (Note 2.5) 81,000,000 81,000,000
Interest Receivable on :
- Deposits 7,188,219 3,488,493
- Reverse Repos 104,073 34,331
- Collateralised Borrowing and Lending Obligation 98,672 259,351
- Margin Deposits with the Clearing Corporation of India Limited 351,970 -
Receivable from Investment Manager 17,002,486 879,490
Investment Towards Unclaimed Redemption [(in 84,080.727 Units (Previous year: 34,483.548 units) (Market Value Rs. 12,25,426 (Previous year: Rs. 468,656)) of HSBC Cash Fund - Growth Option) (Note 15)] 1,092,846 409,448
Investment Towards Unclaimed Dividend [(in 187,986.128 units (Previous year 236,003.555 units) (Market Value Rs.2,739,785 (Previous year 3,210,474)) of HSBC Cash Fund - Growth Option) (Note 16)] 2,116,391 3,469,512
TOTAL 1,924,369,609 1,619,260,643
HSBC MUTUAL FUND - HSBC EQUITY FUND
Schedules forming part of the Balance Sheet as at March 31, 2009
and the Revenue Account for the year ended March 31, 2009
2
SCHEDULE 4 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008Unit Capital Rupees Units Rupees Units
Growth Option
Issued and Subscribed :Units of Rs. 10 each fully paid up 315,148,602 31,514,860.200 315,148,602 31,514,860.200 Outstanding:
At the beginning of the year 476,713,812 47,671,381.108 513,734,268 51,373,426.727
Issued during the year 547,674,751 54,767,475.116 262,281,520 26,228,151.971 1,024,388,563 102,438,856.224 776,015,788 77,601,578.698
Redeemed during the year 196,162,527 19,616,252.681 299,301,976 29,930,197.590 At the end of the year 828,226,036 82,822,603.543 476,713,812 47,671,381.108
Dividend Option
Issued and Subscribed :Units of Rs. 10 each fully paid up 36,688,499 3,668,849.900 36,688,499 3,668,849.900
Outstanding:
At the beginning of the year 2,300,185,617 230,018,561.715 2,092,120,397 209,212,039.708 Issued during the year 1,467,068,695 146,706,869.491 1,492,136,453 149,213,645.273
3,767,254,312 376,725,431.206 3,584,256,850 358,425,684.981 Redeemed during the year 610,854,052 61,085,405.180 1,284,071,233 128,407,123.266 At the end of the year 3,156,400,260 315,640,026.026 2,300,185,617 230,018,561.715
TOTAL 3,984,626,296 398,462,629.569 2,776,899,429 277,689,942.823
SCHEDULE 5 Dividend Option Total Dividend Option TotalReserves and Surplus March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008
Rupees Rupees Rupees Rupees
Unit Premium Reserve (Note 2.7)At the beginning of the year 250,305,565 (151,261,257) 83,643,273 (223,153,218) Added during the year 277,777,432 363,169,580 166,662,292 71,891,961 At the end of the year 528,082,997 211,908,323 250,305,565 (151,261,257)
Income Equalisation Reserve (Note 2.8)Added during the year 963,762,549 3,116,497,351 806,670,842 719,726,210 Transferred to Revenue Account (963,762,549) (3,116,497,351) (806,670,842) (719,726,210) At the end of the year - - - -
Unrealised Appreciation ReserveAt the beginning of the year 926,017,105 1,168,778,802 - - Transferred from Revenue Reserve - - 1,218,045,948 1,537,364,997
Net Change in Unrealised Appreciation in Value of Investments and Derivatives Transferred from Revenue Account (704,549,611) (1,166,575,576) (292,028,843) (368,586,195) At the end of the year 221,467,494 2,203,226 926,017,105 1,168,778,802
Reserve FundAt the beginning of the year 2,878,585,508 6,773,938,265 3,707,624,928 6,986,962,213 Transferred to Unrealised Appreciation Reserve - - (1,218,045,948) (1,537,364,997)
(847,373,228) (51,773,318) 389,006,528 1,324,341,049
At the end of the year 2,031,212,280 6,722,164,947 2,878,585,508 6,773,938,265
TOTAL 2,780,762,771 6,936,276,496 * 4,054,908,178 7,791,455,810 *
* The share of the Options of the Reserves and Surplus is as follows : March 31, 2009 March 31, 2008
Growth Option : Rs. 4,155,513,725 3,736,547,632 Dividend Option : Rs. 2,780,762,771 4,054,908,178 Total : Rs. 6,936,276,496 7,791,455,810
Balance Transferred from Revenue Account
HSBC MUTUAL FUND - HSBC EQUITY FUND
Schedules forming part of the Balance Sheet as at March 31, 2009
and the Revenue Account for the year ended March 31, 2009
3
SCHEDULE 6Current Liabilities and Provisions March 31, 2009 March 31, 2008
Rupees RupeesCurrent Liabilities
Investment Management and Advisory Fees 2,486 9,010,212
Transfer Agent Fees and Expenses 1,406,002 1,439,591
Custodian Fees and Expenses 449,438 643,262
Audit Fees 550,000 700,000
Selling and Distribution Expenses 19,675,393 17,274,437
Purchase Contracts Awaiting Completion - Equity Shares 57,732,918 197,979,448
Payable on Outstanding Future Contracts 3,534,685 -
Unit Redemptions Payable 22,030,183 50,477,558
Inter Scheme payable
- For Switch - Out 6,711,146 18,998,543
- For Others 16,056 2,173,486
Unclaimed Redemption (Note 15) 1,113,098 1,178,339
Unclaimed Dividend (Note 16) 2,686,582 3,476,048
Bank Overdraft - 44,289,462
Temporary Book Overdraft 801,764 453,050
Load Charges (Note 2.9) 13,830,710 579,899
Sundry Payables 3,211,896 5,978,731
TOTAL 133,752,357 354,652,066
SCHEDULE 7 April 01, 2008 to April 01, 2007 to
Interest and Discount (Note 2.4) March 31, 2009 March 31, 2008Rupees Rupees
Debentures / Bonds 1,352,498 -
Commercial Paper / Certificate of Deposit 14,024,158 795,592
Reverse Repos 30,814,654 46,216,923
Collateralized Borrowing and Lending Obligation 47,462,389 8,321,490
Deposits 48,658,329 20,741,466
Margin Deposit placed with Clearing Corporation of India Limited towards Collateralized Borrowing and Lending Obligation, Reverse Repo and Government Securities 381,972 20,116
Others - 3,063
TOTAL 142,694,000 76,098,650
HSBC MUTUAL FUND - HSBC EQUITY FUND
Schedules forming part of the Balance Sheet as at March 31, 2009
and the Revenue Account for the year ended March 31, 2009
4
Year ended March 31, 2009
Rupees
Year ended March 31, 2008
Rupees
A. Cashflow from Operating ActivitiesDeficit / Surplus for the year (2,666,504,170) 2,941,153,876
Adjustments for:- (Increase)/Decrease in Investments at cost (1,249,031,725) (701,719,941)
(Increase)/Decrease in Other Current Assets (19,013,637) 572,197
Increase/(Decrease) in Current Liabilities 487,658 2,622,924
Net cash generated from/(used in) operations ( A ) (3,934,061,874) 2,242,629,056
B Cashflow from Financing Activities Increase/(Decrease) in Unit Capital 1,207,726,867 171,044,764
Increase/(Decrease) in Unit Premium 3,479,666,931 791,618,171
Adjustments for:- Increase/(Decrease) in Sundry Creditors for Units Redeemed by Investors (40,734,773) 55,443,314
(Increase)/Decrease in Sundry Debtors for Units Issued to Investors 16,758,979 (51,077,194)
Dividend Paid During the Year (24,610) (2,336,539,037)
Net cash (used in)/generated from financing activities ( B ) 4,663,393,394 (1,369,509,982)
Net Increase/(Decrease) in Cash and Cash Equivalents (A+B) 729,331,521 873,119,074
Cash and Cash Equivalents as at the beginning of the year 1,652,751,208 779,632,134
Cash and Cash Equivalents as at the close of the year 2,382,082,729 1,652,751,208
Notes :
March 31, 2009Rupees
March 31, 2008Rupees
1 Cash and Cash Equivalents include the following :
Balances with Scheduled Banks : - In Current Account 20,854,960 11,265,759
- In Dividend Account 569,361 14,620
- In Bank Overdraft Account - (44,289,462)
- In Deposit Account 560,000,000 330,000,000
5,603,000 5,603,000
60,000,000 -
Temporary Book Overdraft (801,764) (453,050)
Other Collateralised lendingReverse Repo 808,729,589 155,927,371
Collateralised Borrowing and Lending Obligation 846,127,582 1,113,682,970
Derivative Margin Deposit 81,000,000 81,000,000
2,382,082,728 1,652,751,208
2 The above Cash Flow Statement has been prepared under the "Indirect Method" set out in Accounting Standard - 3 on Cash Flow Statements,issued by The Institute of Chartered Accountants of India.
This is the Cash Flow Statement referred to in our report of even date.
PARTHA GHOSH For Board of Trustees of For HSBC Asset Management (India)
Partner HSBC Mutual Fund Private LimitedMembership No. F-55913
For and on behalf of
PRICE WATERHOUSE
Chartered Accountants
Vikramaaditya
Trustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai
Date : Fund Manager(s)
Margin Deposit with Clearing Corporation of India Limited towards Reverse Repos and Governement Securities
#REF!
Cash Flow Statement for the year ended March 31, 2009
Margin Deposit with Clearing Corporation of India towards Collateralized Borrowing and Lending Obligation
5
Annexure 1
(i) Transactions during the Year
Nature of Transaction Sponsor Investment ManagerAssociate of
Investment ManagerSchemes under Common
Control of Sponsor
Key Management Personnel and their
Relatives Total
Purchase of Investments - - - 2,652,087,757 - 2,652,087,757 Previous Year - - - - - -
Sale of Investments - - - 807,267,640 - 807,267,640 Previous Year - - - 812,200,814 - 812,200,814
Subscription of Units (including switch in and dividendreinvestment) - - - - 5,189,000 5,189,000 Previous Year - - - - 1,889,246 1,889,246
Redemption of Units (including switch out) - - - - - - Previous Year - - - - 2,805,912 2,805,912
Dividend Distribution( Including dividend reinvested) - - - - - - Previous Year - - - - 893,246 893,246
Sale of Mutual Fund Units - - - - - - Previous Year - - - 901,866,152 - 901,866,152
Investment Management and Advisory Fees - 69,759,167 - - - 69,759,167 Previous Year - 115,200,990 - - - 115,200,990
Brokerage/ Commission on Distribution of Units - - 72,415,284 - - 72,415,284 Previous Year - - 40,535,389 - - 40,535,389
Brokerage/ Commission on Purchase/Sale of Investments 1,965,799 - - - - 1,965,799 Previous Year 1,527,000 - - - - 1,527,000
Clearing Charges - - 2,429,235 - - 2,429,235 Previous Year - - 1,457,655 - - 1,457,655
Reimbursment of Expenses - 16,866,434 - - - 16,866,434 Previous Year - - - - - -
Fixed Deposits Matured - - - - - - Previous Year - - 200,000,000 - - 200,000,000
Charges for Services Provided by Bank - - 39,751 - - 39,751 Previous Year - - 251,447 - - 251,447
(ii) Outstanding As At Year End
Nature of Transaction Sponsor Investment ManagerAssociate of
Investment ManagerSchemes under Common
Control of Sponsor
Key Management Personnel and their
Relatives Total
Investment Management and Advisory Fees Payable - 2,486 - - - 2,486 Previous Year - 9,010,212 - - - 9,010,212
Brokerage/ Commission Payable for Distribution of Units - - 5,418,954 - - 5,418,954 Previous Year - - 6,791,536 - - 6,791,536
Units Outstanding As At Year End - - - - 12,267,725 12,267,725 Previous Year - - - - 3,029,942 3,029,942
Other Payables - - - 16,056 - 16,056 Previous Year - - - 2,173,486 - 2,173,486
Other Receivables - 17,002,486 - 124,604 - 17,127,090 Previous Year - 879,490 - 525,000 - 1,404,490
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control othe Sponsor.
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Purchase of InvestmentsHSBC Cash Fund 1,117,614,922 - HSBC Interval Fund - Plan I 491,845,326 - HSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund 486,669,548 -
Sale of InvestmentsHSBC Fixed Term Series 58 281,145,354 - HSBC Fixed Term Series 68 203,868,852 - HSBC Cash Fund - 812,200,814
Sale of mutual fund unitsHSBC Cash Fund - 901,866,152
Other PayablesHSBC India Opportunity Fund 14,556 1,898,556 HSBC Tax Saver Equity Fund 1,500 84,940 HSBC Midcap Fund - 20,000 HSBC Advantage India Fund - 170,000
Other ReceivablesHSBC Dynamic Fund - 502,000 HSBC Advantage India Fund - 14,000 HSBC Midcap Fund - 9,000 HSBC Cash Fund 95,000 - HSBC Floating Rate Fund - Long Term Plan 29,604 -
(iv) Disclosures in respect of material transactions with persons referred to in Note 13 (I)(v) for key management personneand their relatives
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Subscription of Units (including switch in and dividendreinvestment)Naina Lal Kidwa 2,888,000 876,000 Kemaya Lal Kidwai (Relative 1,500,000 - Sanjay Prakash - 246,825 Nelum P Gidwan - 340,738 Avan Gidwani (Relative - 255,794 Rashid K Kidwai (Relative 672,000 -
Sale of Mutual Fund Units (including switch out)Naina Lal Kidwa - 2,805,912
Dividend Distribution( Including dividend reinvested)Nelum P Gidwan - 340,738 Sanjay Prakash - 126,825 Avan Gidwani (Relative - 255,794
Units Outstanding As At Year EndNaina Lal Kidwa 7,343,415 7,390,695 Sanjay Prakash - 8,627,041 Kemaya Lal Kidwai (Relative 1,185,201 -
6
DescriptionQuantity Market Value
Rupees
Equity Shares (100 %)Auto (3.06 %)
Hero Honda Motors Limited @ 243,000 260,289,450 260,289,450
Banks (14.05 %)HDFC Bank Limited @ 468,000 455,551,200 State Bank of India @ 360,000 384,156,000 ICICI Bank Limited @ 567,000 188,697,600 Punjab National Bank 405,000 166,637,250
1,195,042,050 Cement (2.49 %)
Jaiprakash Associates Limited 2,520,000 211,932,000 211,932,000
Construction Project (3.20 %)Larsen & Toubro Limited @ 405,000 271,917,000
271,917,000 Consumer Non Durables (17.58 %)
I T C Limited @ 3,690,000 682,096,500 Colgate Palmolive India Limited 630,000 296,856,000 United Spirits Limited 270,000 175,216,500 GlaxoSmithkline Consumer Healthcare Limited 245,158 172,664,779 Nestle India Limited 108,000 168,091,200
1,494,924,979 Diversified (3.52 %)
Hindustan Unilever Limited @ 1,260,000 299,250,000 299,250,000
Finance (2.36 %)Housing Development Finance Corporation Limited 142,000 200,532,400
200,532,400 Industrial Capital Goods (8.95 %)
Bharat Heavy Electricals Limited 398,200 601,501,010 Suzlon Energy Limited 3,780,000 160,083,000
761,584,010 Industrial Products (1.74 %)
Jain Irrigation Systems Limited 433,300 148,101,940 148,101,940
Non - Ferrous Metals (1.51 %)Sterlite Industries (India) Limited @ 360,000 128,736,000
128,736,000 Oil (7.09 %)
Oil and Natural Gas Corporation Limited 462,300 360,686,460 Cairn India Limited @ 1,316,355 242,340,956
603,027,416 Pesticides (1.98 %)
United Phosphorus Limited 1,710,000 168,007,500 168,007,500
Petroleum Products (12.80 %)Reliance Industries Limited @ 472,500 720,444,375 Indian Oil Corporation Limited 513,000 198,941,400 Bharat Petroleum Corporation Limited 450,000 169,222,500
1,088,608,275 Pharmaceuticals (2.42 %)
Cipla Limited 937,124 206,214,136 206,214,136
Power (4.27 %)Reliance Infrastructure Limited 396,000 204,157,800 Power Grid Corporation of India Limited 1,665,000 159,174,000
363,331,800 Software (5.04 %)
Infosys Technologies Limited 324,000 428,943,600 428,943,600
Telecom - Services (7.93 %)Bharti Airtel Limited @ 847,000 530,010,250 IDEA Cellular Limited @ 2,878,837 144,229,734
674,239,984 Total (Cost Rs. 9,006,424,429) 8,504,682,540 ## 8,504,682,540
Equity Derivatives Short Futures (100 %)
Bharat Heavy Electricals Limited - Futures - April 2009 (47.45 %) 39,000 58,698,900 Larsen & Toubro Limited - Futures - April 2009 (9.82 %) 18,000 12,145,500 Bharti Airtel Limited - Futures - April 2009 (42.73 %) 85,000 52,853,000
Total 123,697,400
Deposits (5.13 %)^ Tenure Face Value6.3 % Standard Chartered Bank 91 230,000,000 7% Axis Bank 181 160,000,000 7.3% Development Bank of Singapore 181 90,000,000 10.1% Axis Bank 182 80,000,000 Total Deposits 560,000,000
^ Denotes Percentage to Net Asset Value.
Confirmation has been received from J P Morgan Chase Bank, Mumbai Branch at the end of the financial year for the investments held by them.
@ Investment in companies which have invested more than five percent of the net asset value of any scheme of HSBC Mutual Fund.
HSBC MUTUAL FUND - HSBC EQUITY FUND
Statement of Portfolio Holding as at March 31, 2009
(Referred to in Schedule 1 to the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009 )
7
HSBC MUTUAL FUND-HSBC EQUITY FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
SCHEDULE 8
1Notes to the Financial Statements
1 Organisation
HSBC Equity Fund (the “Scheme”) is an open-ended growth scheme of HSBC Mutual Fund (the “Fund”) and was launched on November 14, 2002. HSBC Mutual Fund has been sponsored by HSBC Securities and Capital Markets (India) Private Limited. HSBC Asset Management (India) Private Limited incorporated under the Companies Act, 1956 has been appointed as the asset management company. The duration of the Scheme is perpetual. The Scheme closed for initial subscription on December 3, 2002 and reopened for issue and redemption of units on December 27, 2002. The investment objective of the Scheme is to generate long term capital growth from an actively managed portfolio of equity and equity related securities. The Scheme has two Options - Growth Option and Dividend Option. The Scheme will not declare dividend under the Growth Option in normal circumstances. The income earned on such units will remain invested within the Scheme and will be reflected in the net asset value.
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 “Regulations”) and amendments thereto, as applicable.
2.2 Portfolio Valuation
Investments are stated at market / fair value at the Balance Sheet date/date of determination. In valuing the Scheme’s investments:
i. Equity securities listed on a recognized stock exchange are valued at the last quoted closing
price on the National Stock Exchange of India Limited (NSE). If on a particular valuation date, a security is not traded on NSE, the value at which it is traded on Bombay Stock Exchange Limited (BSE) is used. If no sale is reported at that time, the last quoted closing price on the principal stock exchange on which the security is traded is used when it is not more than thirty days prior to the valuation date.
ii. Non-traded and thinly traded equity securities, including those not traded within thirty days
prior to the valuation date are valued at fair value as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India (SEBI).
HSBC MUTUAL FUND-HSBC EQUITY FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
iii. Debt securities listed on a recognised stock exchange are valued at the last quoted closing price on the National Stock Exchange of India Limited (NSE). If no sale is reported at that time, such securities are valued at fair value as determined in good faith by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund.
iv. Non-traded and thinly traded debt securities are valued at fair value as determined by HSBC
Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India (SEBI).
v. Privately placed debt securities are valued at fair value as determined in good faith by HSBC
Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund.
vi. Traded money market securities are valued at the yield at which they are traded on the
valuation date. If no sale is reported at that time, such security is valued at the last traded price plus accretion of the difference between the face value and the last traded price. Non traded money market securities are valued at cost plus accrued interest.
vii. Instruments bought on ‘repo’ basis are valued at the resale price after deduction of applicable
interest up to the date of resale.
viii. Units in mutual fund are valued at the net asset value of the investee scheme. Following the issue of guidance note on accounting for investments in the financial statements of the mutual funds by the Institute of Chartered Accountants of India (pursuant to the Eleventh Schedule of the Regulations) net unrealised appreciation / depreciation in the value of investments and derivatives is determined separately for each category of investments and derivatives. In respect of each category of investments and derivatives, the net change in the unrealised appreciation if any, between two balance sheet dates / valuation dates is accounted through the Revenue Account and thereafter the net unrealised appreciation is transferred from the Revenue Account to the Unrealised Appreciation Reserve. The net depreciation if any, is accounted through the Revenue Account. Net unrealised appreciation is reduced from the distributable income at the time of income distribution. The loss on investments sold/transferred during the year is charged to the Revenue Account instead of being first adjusted against the provision for depreciation, if already created in the previous year as recommended in the Guidance Note. However the departure from the Guidance Note does not have any net impact on the net asset value of the options of the Scheme.
HSBC MUTUAL FUND-HSBC EQUITY FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
2.3 Securities Transaction
Investment securities transactions are accounted for on a trade date basis. The Scheme uses the average cost method for determining the realized gain or loss on sale of investments.
2.4 Investment Income
Dividend and interest income are recorded on an accrual basis.
2.5 Derivatives The Scheme enters into derivative transactions in equity/ index futures for the purpose of hedging and
portfolio balancing.
“Derivative margin deposit” representing the margin towards equity derivative contracts entered into by the Scheme is disclosed under “Other Current Assets”.
Futures
• Futures contracts are marked to market daily at the futures settlement price as determined by the exchange. The variation margin calculated as the difference between the trade price or the previous day’s settlement price, as the case may be, and the current day’s settlement price is recorded as a receivable or payable. • When a contract is closed (squared off)/ settled (on expiry), the difference between the final settlement / square-off price and the contract price is recognised in the Revenue Account. If more than one futures contracts in respect of the same stock / index and expiry date, to which the squared off / settled contract pertains, is outstanding at the time of square off / settlement of the contract, the average method is followed for determining the gain or loss.
• As at the Balance Sheet date / date of determination, all open futures positions are valued at the futures settlement price as determined by the exchange where it is traded. The unrealised appreciation / depreciation on all open positions is considered for determining the net asset value.
2.6 Net Asset Value for Growth/Dividend Options
The net asset value of the units of the Scheme is determined separately for the units issued under the Growth and Dividend Options. For reporting the net asset value for the 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 units outstanding.
2.7 Unit Premium Reserve Upon issue and redemption of units, the net premium or discount to the face value of units is adjusted
against the unit premium reserve of the Scheme, after an appropriate portion of the issue proceeds and redemption payout is credited or debited respectively to the income equalization reserve.
The unit premium reserve is available for dividend distribution except to the extent it is represented by
unrealized net appreciation in value of investments.
HSBC MUTUAL FUND-HSBC EQUITY FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
2.8 Income Equalization Reserve
The net distributable income relating to units issued / repurchased is transferred to / from income equalization reserve for determining the net surplus / deficit, transferred from / to unit premium reserve.
2.9 Load Charges Load collected is retained under a separate account in the Scheme and is used to meet the selling and distribution expenses.
2.10 Foreign Currency Translation The books and records of the Fund are maintained in Indian rupees. Amounts denominated in or expected to settle in foreign currencies are translated into Indian rupees on the following basis. (i) Market value of investments, other assets and liabilities at the closing rate of exchange on the
Balance Sheet date / valuation date. (ii) Purchases and sales of investments, income and expense at the rate of exchange prevailing on
the respective date of such transactions
The Fund does not isolate that portion of the change in investment valuation resulting from changes in the foreign exchange rates from the fluctuations arising from changes in the local market prices of securities held. Such fluctuations are included in unrealised appreciation or depreciation on investments.
Net realised foreign exchange gains and losses arise from sales of foreign currency denominated securities, currency gains or losses realised between trade and settlement dates of foreign currency denominated securities transactions and the difference between the recorded amounts of foreign currency denominated dividends, interest and expenses recorded in the Fund’s books and the Indian rupee equivalent amounts actually received or paid. Net unrealised foreign exchange gains and losses arising from changes in value of assets and liabilities denominated in foreign currency resulting from changes in foreign exchange rate are included in net unrealised appreciation or depreciation in value of investments and foreign currency denominated assets and liabilities.
3 Investment Management and Advisory Fees
The Scheme has paid or provided for investment management and advisory fees payable to HSBC
Asset Management (India) Private Limited for managing the Scheme at an average annual rate of 0.64
% of the average daily net asset value recorded by the Scheme. All costs, charges and expenses
incurred by HSBC Asset Management (India) Private Limited in the administration and execution of
the activities of the Scheme, except costs allowed to be charged to the Scheme under the Regulations,
are on their own account for which they receive investment management and advisory fees. 4 Trusteeship Fees
In accordance with the Deed of Trust dated February 7, 2002 between HSBC Securities and Capital
Markets (India) Private Limited (“The Settlor”) and the Board of Trustees of HSBC Mutual Fund, the
Fund has paid or provided for a fee not exceeding Rs.20,000 for each meeting of the Board of Trustees
attended by such Trustee not affiliated with the Settlor.
HSBC MUTUAL FUND-HSBC EQUITY FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
5 Custodian Fees
J P Morgan Chase Bank provides custodial services to the Scheme for which it receives custody fees including safekeeping.
6 Income Taxes
No provision for income tax is made as the Scheme qualifies as a recognized mutual fund under Section 10(23D) of the Income Tax Act, 1961.
7. Limitation on Expenses The total expenses chargeable to the Scheme are limited to 2.03% of the average daily net assets. HSBC Asset Management (India) Private Limited has borne Rs 168,664,34 in excess of the above mentioned percentage of the average daily net assets to be charged to the Scheme as total expenses for the year.
8 Aggregate Appreciation and Depreciation In Value of Investments
0Aggregate appreciation and depreciation in value of investments are as follows:
March 31, 2009
(Rupees) March 31, 2008
(Rupees)
Equity Shares
-Appreciation 419,474,916 1,520,481,450
-Depreciation 921,216,805 361,734,504
Equity Futures
-Appreciation 2,218,589 10,031,857 -Depreciation 15,363 -
9 Aggregate Value of Purchases and Sale of Investments
The aggregate value of investments securities purchased and sold during the financial year (excluding
accretion of discount of Rs. 14,024,158) is Rs. 20,051,454,038 and Rs. 15,984,411,730 respectively
being 184.31 % and 146.93 % of the average daily net assets.
10 Income and Expenses
The total income (including net profit on sale of investments and derivatives and net change in
unrealized depreciation in value of investments and derivatives) and expenditure during the year is Rs. (2,947,881,805) and Rs. 220,364,255 respectively being (27.10)% and 2.03% of the average daily net
assets.
HSBC MUTUAL FUND-HSBC EQUITY FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
11 Equity Derivatives Disclosure:
Futures Details of open interest in equity futures as at March 31, 2009
Underlying Asset's Name Number of contracts
Units Outstanding (Short)
Bharat Heavy Electricals Limited April 09 130 (39,000)
Bharti Airtel Limited April 09 170 (85,000)
Larsen and Toubro Limited April 09 45 (18,000)
Notional value of futures contracts bought/ (sold) by the Scheme and outstanding as on March 31, 2009 aggregates to Rs. 123,697,400.
Net Profit/ (Loss) on futures transactions recognized in the Revenue Account for the year ended March 31, 2009 aggregates to Rs. 182,854,765.
12 Disclosure Under Regulation 25(8) of the Securities and Exchange Board of India (Mutual
Funds) Regulation, 1996 as amended and in accordance with Accounting Standard 18 on ‘Related Party Disclosures’ issued by the Institute of Chartered Accountants of India (ICAI)
The Scheme has entered into transactions with certain related parties. The information required in this regard in accordance with Accounting Standard 18 on ‘Related Party Disclosures’ issued by the Institute of Chartered Accountants of India and regulation 25(8) of SEBI Regulation, is provided below :
I Related Party Relationships
Name Description of relationship (i) HSBC Securities and Capital Markets (India) Private Limited Sponsor of the Fund
(ii) HSBC Asset Management (India) Private Limited Investment Manager to the Schemes of HSBC Mutual Fund
(iii) The Hong Kong and Shanghai Banking Corporation Limited Associate of the Investment Manager (iv) Schemes of the Fund, Under Common Control of the Sponsor
HSBC Advantage India Fund HSBC Cash Fund HSBC Dynamic Fund HSBC Emerging Market Fund HSBC Fixed Term Series 21 upto April 02, 2008 HSBC Fixed Term Series 22 upto April 22, 2008 HSBC Fixed Term Series 23 upto April 02, 2008 HSBC Fixed Term Series 24 upto December 15, 2008 HSBC Fixed Term Series 25 upto April 23, 2008 HSBC Fixed Term Series 27 upto April 02, 2008 HSBC Fixed Term Series 28 upto May 26, 2008 HSBC Fixed Term Series 30
HSBC MUTUAL FUND-HSBC EQUITY FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
HSBC Fixed Term Series 32 upto July 10, 2008 HSBC Fixed Term Series 33 upto September 08, 2008 HSBC Fixed Term Series 35 upto September 18, 2008 HSBC Fixed Term Series 36 upto October 07, 2008 HSBC Fixed Term Series 37 upto October 22, 2008 HSBC Fixed Term Series 41 HSBC Fixed Term Series 42 HSBC Fixed Term Series 44 HSBC Fixed Term Series 45 HSBC Fixed Term Series 46 HSBC Fixed Term Series 47 upto June 26, 2008 HSBC Fixed Term Series 48 with effect from March 28, 2008 upto October 07, 2008 HSBC Fixed Term Series 49 HSBC Fixed Term Series 50 with effect from April 17, 2008 HSBC Fixed Term Series 51 with effect from April 23, 2008 upto October 23, 2008 HSBC Fixed Term Series 52 with effect from April 24, 2008 HSBC Fixed Term Series 53 with effect from May 23, 2008 HSBC Fixed Term Series 54 with effect from May 27, 2008 HSBC Fixed Term Series 55 with effect from June 26, 2008 upto December 29, 2008 HSBC Fixed Term Series 56 with effect from July 25, 2008 HSBC Fixed Term Series 57 with effect from August 13, 2008 HSBC Fixed Term Series 58 with effect from July 22, 2008 upto November 05, 2008 HSBC Fixed Term Series 59 with effect from July 07, 2008 HSBC Fixed Term Series 60 with effect from July 10, 2008 upto October 13, 2008 HSBC Fixed Term Series 61 with effect from July 17, 2008 HSBC Fixed Term Series 62 with effect from August 22, 2008 HSBC Fixed Term Series 63 with effect from September 04, 2008 HSBC Fixed Term Series 66 with effect from September 18, 2008 HSBC Fixed Term Series 68 with effect from October 06, 2008 to January 14, 2009 HSBC Flexi Debt Fund HSBC Floating Rate Fund Long Term Plan HSBC Floating Rate Fund Short Term Plan HSBC Gilt Fund (Formerly, HSBC Gilt Fund – Short Term Plan) HSBC Income Fund Investment Plan HSBC Income Fund Short Term Plan HSBC India Opportunities Fund HSBC Interval Fund - Plan I upto November 20, 2008 HSBC Interval Fund - Plan II upto December 10, 2008 HSBC Interval Fund - Plan III upto December 17, 2008 HSBC Ultra Short Term Bond Fund (Formerly , HSBC Liquid Plus Fund) HSBC Midcap Fund HSBC MIP Fund Regular Plan HSBC MIP Fund Savings Plan HSBC Small Cap Fund HSBC Tax Saver Equity Fund HSBC Unique Opportunities Fund
(v) Key Management Personnel and their relatives:
Nelum Pahlaj Gidwani – Associate Trustee Naina Lal Kidwai – Chairman of the Investment Manager Vikramaditya – Director and the Chief Executive Officer of the Investment Manager with effect from July 16, 2008
HSBC MUTUAL FUND-HSBC EQUITY FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
Dr. Rudolf Apenbrink – Associate Tustee Ayaz Ebrahim – Director with effect from April 11, 2008 Sanjay Prakash – Director and the Chief Executive Officer upto July 16, 2008 Avan Nelum Gidwani – Relative of a Key Management Personnel Rashid K Kidwai – Relative of a Key Management Personnel Rumaan Kidwai* – Relative of a Key Management Personnel Kemaya Lal Kidwai – Relative of a Key Management Personnel Amrita Vikramaaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Raaghav Aaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Rhea Aaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Gabriele A Apenbrink* – Relative of a Key Management Personnel Christian R Apenbrink* – Relative of a Key Management Personnel Katharina S Apenbrink* – Relative of a Key Management Personnel Yasmin Ebrahim* – Relative of a Key Management Personnel with effect from April 11, 2008 Daanyal Ebrahim* – Relative of a Key Management Personnel with effect from April 11, 2008 Nilufer Prakash – Relative of a Key Management Personnel upto July 16, 2008 Tara Prakash – Relative of a Key Management Personnel upto July 16, 2008 Anahita Prakash* – Relative of a Key Management Personnel upto July 16, 2008 * There were no transactions during the year.
II The following transactions occurred with the related parties during the year in the ordinary course of business: Refer Annexure I
III HSBC Securities and Capital Markets (India) Private Limited, the Sponsor was paid brokerage
aggregating Rs. 1,965,799 on purchase and sale of investments. The Hongkong & Shanghai Banking
Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid
collection/bank charges amounting to Rs. 39,751 and brokerage amounting to Rs. 72,415,284 for
procuring unit subscriptions for the Scheme and clearing member charges on derivative transactions Rs.
24,29,235. The brokerage paid was at rates similar to those offered to other brokers / distributors.
13 Disclosure under Regulation 25(11) of the Securities and Exchange Board of India (Mutual
Funds) Regulations, 1996 as amended
HSBC Mutual Fund has made investments in companies, which hold/ have held units in excess of 5% of the net asset value of any Scheme of HSBC Mutual Fund which have been listed in Annexure II. The investments comprise equity shares, debentures/ bonds, commercial paper, fixed deposits and other debt instruments and were made solely on the basis of sound fundamentals of these companies.
14 Segment Reporting
The Scheme operates in one segment only viz. to primarily generate attractive returns from a diversified and actively managed portfolio of equity and equity related instruments.
HSBC MUTUAL FUND-HSBC EQUITY FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
15 Unclaimed Redemptions
As at March 31, 2009, unclaimed redemptions aggregate Rs. 10,93,116 payable to 37 investors.
16 Unclaimed Dividend
As at March 31, 2009, unclaimed dividends aggregate Rs. 26,86,582 payable to 344 investors.
17 Prior Year’s Figures Previous year’s figures have been re-grouped/re-arranged where necessary.
Signatures to the Schedules 1 to 8 forming part of the Balance Sheet and the Revenue Account.
PARTHA GHOSH Partner Membership No. F-55913 For and on behalf of PRICE WATERHOUSE Chartered Accountants
For Board of Trustees of HSBC Mutual Fund
For HSBC Asset Management (India) Private Limited
Trustee
Vikramaaditya Director and Chief Executive Officer
Trustee
Director
Place: Mumbai Date :
Fund Manager(s)
Auditors' Report To the Board of Trustees of HSBC MUTUAL FUND 1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC India Opportunities Fund ("The
Scheme") as at March 31, 2009, the related Revenue Account for the year ended on that date annexed thereto, and the Cash Flow Statement for the year ended on that date which we have signed under reference to this report. These financial statements are the responsibility of the Board of Trustees of HSBC Mutual Fund and the Management of HSBC Asset Management (India) 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. Our procedures included confirmation of securities owned and unit capital balances as at March 31, 2009 by correspondence with the custodian/others and registrar and transfer agents respectively. 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,
(i) The Balance Sheet, 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 also give respectively, a true and fair view of the state of affairs of HSBC Mutual Fund – HSBC India Opportunities Fund as at March 31, 2009 and its net deficit and its cash flows for the year ended on that date.
(ii) The Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended on that
date, together with the notes thereon have been prepared in all material respects 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.
PARTHA GHOSH Partner Membership No. F / 55913 For and on behalf of PRICE WATERHOUSE Chartered Accountants Place: Mumbai Date: July 06, 2009
March 31, 2009 March 31, 2008Schedule Rupees Rupees
ASSETS
Investments 1 2,337,385,216 4,677,062,433
Deposits 2 266,152,000 146,152,000
Other Current Assets 3 245,776,099 477,890,346
TOTAL 2,849,313,315 5,301,104,779
LIABILITIES
Unit Capital 4 2,207,557,533 2,624,873,746
Reserves and Surplus 5 591,732,844 2,598,885,548
Current Liabilities and Provisions 6 50,022,938 77,345,486
TOTAL -0.70 2,849,313,315 5,301,104,779
March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008 March 31, 2008
RECONCILIATION OF NET ASSET VALUE PER UNIT Growth Option Dividend Option Total Growth Option Dividend Option Total
Rupees Rupees Rupees Rupees Rupees Rupees
Net Assets as per Balance Sheet (Total Assets less Current Liabilities and Provisions) (Note 2.6) 1,053,492,324 1,745,798,053 2,799,290,377 1,921,505,721 3,302,253,572 5,223,759,293
Number of Units in Issue 53,478,209.207 167,277,543.980 61,844,387.233 200,642,987.346
Net Asset Value per Unit 19.6995 10.4365 31.0700 16.4584
Notes to the Financial Statements. 8
This is the Balance Sheet referred to in our report of even date.
PARTHA GHOSH For Board of Trustees of For HSBC Asset Management (India)
Partner HSBC Mutual Fund Private Limited
Membership No. F-55913For and on behalf of
PRICE WATERHOUSE
Chartered Accountants VikramaadityaTrustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai
Date : 06 July 2009
Fund Manager(s)
The Schedules referred to herein form an integral part of the Financial Statements.
HSBC MUTUAL FUND - HSBC INDIA OPPORTUNITIES FUND
Balance Sheet as at March 31, 2009
0
April 1, 2008 to April 1, 2007 toMarch 31, 2009 March 31, 2008
Schedule Rupees Rupees
INCOME AND GAINS
Dividends (Note 2.4) 32,006,277 27,056,290
Interest and Discount 7 36,797,857 29,991,120
Net Profit on Sale of Investments and Derivatives (Note 2.3 and 2.5) - 1,796,911,592
TOTAL 68,804,134 1,853,959,001
EXPENSES AND LOSSES
Net Loss on Sale of Investments and Derivatives (Note 2.3 and 2.5) 1,044,590,914 -
Investment Management and Advisory Fees (Note 3) 40,753,805 71,321,204
Transfer Agent Fees and Expenses 7,641,443 11,336,831
Trusteeship Fees and Expenses (Note 4) 15,863 36,421
Custodian Fees and Expenses (Note 5) 2,489,674 3,743,993
Audit Fees 500,000 650,000
Selling and Distribution Expenses 27,718,821 46,073,941
Other Operating Expenses 8,625,739 16,800,400
TOTAL 1,132,336,259 149,962,790
Net Realised (Losses)/Gains for the Year (1,063,532,125) 1,703,996,211
Net Change in Unrealised Depreciation in Value of Investments and Derivatives (196,768,864) -
Net (Losses)/Gains for the Year 0.16 (1,260,300,989) 1,703,996,211
Net Change in Unrealised Appreciation in Value of Investments and Derivatives (481,262,582) (440,928,929)
Net (Deficit)/Surplus including Net Change in Unrealised Appreciation/Depreciation in Value of Investments and Derivatives (1,741,563,571) 1,263,067,282
Transferred to Unrealised Appreciation Reserve 481,262,582 440,928,929
Net (Deficit)/Surplus for the Year 0.16 (1,260,300,989) 1,703,996,211
April 1, 2008 to April 1, 2008 to April 1, 2008 to April 1, 2007 to April 1, 2007 to April 1, 2007 toMarch 31, 2009 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008 March 31, 2008Growth Option Dividend Option Total Growth Option Dividend Option Total
Rupees Rupees Rupees Rupees Rupees Rupees
Net (Deficit)/Surplus for the Year (460,294,516) (800,006,474) (1,260,300,989) 569,693,432 1,134,302,779 1,703,996,211
Transfer from Income Equalisation Reserve (Note 2.8) (145,348,729) (63,726,148) (209,074,877) (238,154,597) (304,052,261) (542,206,858)
Transfer from Reserve Fund - - - - 125,205,018 125,205,018
Dividend / Distribution (Net of Reversal of Prior Year Dividend Rs. 1,520 (Previous Year Rs. Nil)) - 1,520 1,520 - (532,437,884) (532,437,884)
Balance Transferred to Reserve Fund (605,643,245) (863,731,102) (1,469,374,346) 331,538,835 423,017,652 754,556,487
Notes to the Financial Statements. 8
This is the Revenue Account referred to in our report of even date.
PARTHA GHOSH For Board of Trustees of For HSBC Asset Management (India)
Partner HSBC Mutual Fund Private Limited
Membership No. F-55913For and on behalf of
PRICE WATERHOUSE
Chartered Accountants VikramaadityaTrustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai Date : 06 July 2009
Fund Manager(s)
HSBC MUTUAL FUND - HSBC INDIA OPPORTUNITIES FUND
Revenue Account for the year ended March 31, 2009
The Schedules referred to herein form an integral part of the Financial Statements.
1
SCHEDULE 1 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008Investments Market/Fair Value Cost Market/Fair Value Cost(Notes 2.2, 2.3, 7, 8 and 12) Rupees Rupees Rupees Rupees
(Refer to the attached Statement of Portfolio Holding as at March 31, 2009)
Equity Shares 2,337,385,216 2,534,154,080 4,677,062,433 4,194,797,608
TOTAL 2,337,385,216 2,534,154,080 4,677,062,433 4,194,797,608
SCHEDULE 2 March 31, 2009 March 31, 2008Deposits Rupees Rupees
Deposits with Scheduled Bank (Under Lien Towards Margin Deposit for Equity Derivatives Rs. 130,000,000 (2008 : Rs. 130,000,000) and Load Rs. Nil (2008 : Rs. 15,000,000 )) 250,000,000 145,000,000 Margin Deposit with Clearing Corporation of India Limited towards Collateralized Borrowing and Lending Obligation 1,152,000 1,152,000
Margin Deposit with Clearing Corporation of India Limited towards Reverse Repos and Governement Securities 15,000,000 -
TOTAL 266,152,000 146,152,000
SCHEDULE 3 March 31, 2009 March 31, 2008Other Current Assets Rupees Rupees
Balances with Banks - in Current Account 710,931 5,141,382 - in Dividend Account 165,360 15,651
Sales Contracts Awaiting Completion - Equity Shares 21,421,417 21,404,066
Application Money Pending Allotment - Equity Shares - 28,620,000
Reverse Repos 50,006,264 41,093,235
Collateralised Borrowing and Lending Obligation 52,318,761 289,265,708
Unit Subscription Receivable 1,317,500 1,239,354
Inter-Scheme Receivable:- For 'Switch In' 10,000 7,215,499 - For 'Others' 14,556 1,944,056
Derivative Margin Deposit (Note 2.5) 112,500,000 72,500,000
Receivable on Outstanding Equity Future Contracts 1,134,530 6,529,758
Interest Receivable on :- Reverse Repos 6,435 9,048 - Collateralised Borrowing and Lending Obligation 6,410 67,363 - Deposits 4,810,603 1,536,712
- Margin Deposit with Clearing Corporation of India Limited 87,288 -
Receivable from Investment Manager 6,185 1,016
Investment towards Unclaimed Redemption [(in 24,247.669 units (2008 : 24,949.997 units) (Market Value Rs. 353,395 (2008 : Rs. 339,088)) of HSBC Cash Fund - Growth Option) (Note 14)] 311,406 301,516
Investment towards Unclaimed Dividend [in 67,694.416 units (2008 : 79,455.789) (Market Value Rs. 986,606 (2008 : Rs. 1,079,860) of HSBC Cash Fund - Growth Option (Note 15)] 948,453 1,005,982
TOTAL 245,776,099 477,890,346
HSBC MUTUAL FUND - HSBC INDIA OPPORTUNITIES FUND
Schedules forming part of the Balance Sheet as at March 31, 2009
and the Revenue Account for the year ended March 31, 2009
2
SCHEDULE 4 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008Unit Capital Rupees Units Rupees Units
Growth Option
Issued and Subscribed :
Units of Rs. 10 each fully paid up 705,593,731 70,559,373.092 705,593,731 70,559,373.092
Outstanding:
At the beginning of the year 618,443,872 61,844,387.233 765,714,290 76,571,429.053
Issued during the year 80,052,360 8,005,235.991 336,199,709 33,619,970.910
698,496,232 69,849,623.224 1,101,913,999 110,191,399.963
Redeemed during the year 163,714,140 16,371,414.017 483,470,127 48,347,012.730
At the end of the year 534,782,092 53,478,209.207 618,443,872 61,844,387.233
Dividend Option
Issued and Subscribed :
Units of Rs. 10 each fully paid up 1,900,309,787 190,030,978.748 1,900,309,787 190,030,978.748
Outstanding:
At the beginning of the year 2,006,429,874 200,642,987.346 2,735,560,573 273,556,057.212
Issued during the year 172,550,875 17,255,087.456 727,041,909 72,704,190.973
2,178,980,749 217,898,074.802 3,462,602,482 346,260,248.185
Redeemed during the year 506,205,308 50,620,530.822 1,456,172,608 145,617,260.839
At the end of the year 1,672,775,441 167,277,543.980 2,006,429,874 200,642,987.346
TOTAL 2,207,557,533 220,755,753.187 2,624,873,746 262,487,374.579
HSBC MUTUAL FUND - HSBC INDIA OPPORTUNITIES FUNDSchedules forming part of the Balance Sheet as at March 31, 2009
and the Revenue Account for the year ended March 31, 2009
3
SCHEDULE 5 March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008 March 31, 2008Reserves and Surplus Growth Option Dividend Option Total Growth Option Dividend Option Total
Rupees Rupees Rupees Rupees Rupees Rupees
Unit Premium Reserve (Note 2.7)
At the beginning of the year (68,092,626) (372,107,756) (440,200,382) 51,651,751 87,083,840 138,735,591
Added during the year (10,719,083) (45,796,692) (56,515,775) (119,744,377) (459,191,596) (578,935,973)
At the end of the year (78,811,709) (417,904,448) (496,716,157) (68,092,626) (372,107,756) (440,200,382)
Income Equalisation Reserve (Note 2.8)
Added during the year (145,348,729) (63,726,148) (209,074,877) (238,154,597) (304,052,261) (542,206,858)
Transferred to Revenue Account 145,348,729 63,726,148 209,074,877 238,154,597 304,052,261 542,206,858
At the end of the year - - - - - -
Unrealised Appreciation Reserve
At the beginning of the year 208,675,847 273,798,734 482,474,581 - - -
Balance transferred from Reserve Fund - - - 399,382,718 524,020,792 923,403,510
Net Change in Unrealised Appreciation in Value of Investments and Derivatives Transferred from Revenue Account (167,989,291) (313,273,291) (481,262,582) (190,706,871) (250,222,058) (440,928,929)
At the end of the year 40,686,556 (39,474,557) 1,211,999 208,675,847 273,798,734 482,474,581
Reserve Fund
At the beginning of the year 1,162,478,628 1,394,132,720 2,556,611,348 1,230,322,511 1,620,340,878 2,850,663,389
Transferred to Revenue Account - - - - (125,205,018) (125,205,018)
Transferred to Unrealised Appreciation Reserve - - - (399,382,718) (524,020,792) (923,403,510)
Balance Transferred from Revenue Account (605,643,245) (863,731,102) (1,469,374,346) 331,538,835 423,017,652 754,556,487
At the end of the year 556,835,383 530,401,618 1,087,237,002 1,162,478,628 1,394,132,720 2,556,611,348
TOTAL 518,710,230 73,022,613 591,732,844 * 1,303,061,849 1,295,823,698 2,598,885,548 *
* The share of the Options of the Reserves and Surplus is as follows : March 31, 2009 March 31, 2008Rupees Rupees
Growth Option : Rs. 518,710,232 1,303,061,849 Dividend Option : Rs. 73,022,612 1,295,823,699 Total : Rs. 591,732,844 2,598,885,548
HSBC MUTUAL FUND - HSBC INDIA OPPORTUNITIES FUND
Schedules forming part of the Balance Sheet as at March 31, 2009
and the Revenue Account for the year ended March 31, 2009
4
SCHEDULE 6 March 31, 2009 March 31, 2008Current Liabilities and Provisions Rupees Rupees
Current Liabilities
Investment Management and Advisory Fees 2,462,824 4,813,721
Transfer Agent Fees and Expenses 364,116 729,208
Custodian Fees and Expenses 126,008 342,626
Audit Fees 500,000 650,000
Selling and Distribution Expenses 2,602,300 5,971,119
Purchase Contracts Awaiting Completion -Equity Shares 17,732,522 -
Unit Redemptions Payable 2,777,044 32,343,001
Inter Scheme Payable - For 'Switch-Out' 2,011,628 1,455,652 - For 'Others' - -
Load Charges (Note 2.9) 18,793,178 26,557,994
Unclaimed Redemption (Note 14) 311,406 314,690
Unclaimed Dividend (Note 15) 1,113,792 1,020,681
Bank Overdraft 101 -
Sundry Payables 1,228,019 3,146,794
TOTAL 50,022,938 77,345,486
SCHEDULE 7 April 1, 2008 to April 1, 2007 toInterest and Discount (Note 2.4) March 31, 2009 March 31, 2008
Rupees Rupees
Commercial Paper / Certificate of Deposit 2,875,943 237,533
Reverse Repos 8,777,697 15,967,868
Collateralised Borrowing and Lending Obligation 3,606,056 1,880,674
Deposits 21,440,069 11,861,167
Margin Deposit with The Clearing Corporation of India Limited 97,934 17,843
Others 158 26,035
TOTAL 36,797,857 29,991,120
HSBC MUTUAL FUND - HSBC INDIA OPPORTUNITIES FUND
Schedules forming part of the Balance Sheet as at March 31, 2009and the Revenue Account for the year ended March 31, 2009
5
Description Quantity Market ValueRupees
Equity Shares (100 %)Auto (3.71 %)
Hero Honda Motors Limited @ 81,000 86,763,150 86,763,150
Auto Ancillaries (2.96 %)Bosch Limited 22,500 69,134,625
69,134,625 Banks (12.40 %)
HDFC Bank Limited @ 99,000 96,366,600 State Bank of India @ 83,000 88,569,300 Punjab National Bank 135,000 55,545,750 ICICI Bank Limited @ 148,500 49,420,800
289,902,450 Brewers (0.56 %)
Shaw Wallace & Company Limited 90,000 13,000,500 13,000,500
Construction Project (3.10 %)Larsen & Toubro Limited @ 108,000 72,511,200
72,511,200 Consumer Non Durables (18.36 %)
I T C Limited @ 855,000 158,046,750 Shree Renuka Sugars Limited 990,000 90,288,000 Nestle India Limited 54,000 84,045,600 Advanta India Limited 134,100 61,686,000 United Spirits Limited 54,000 35,043,300
429,109,650 Diversified (3.11 %)
Hindustan Unilever Limited @ 306,000 72,675,000 72,675,000
Finance (1.36 %)Housing Development Finance Corporation Limited 22,500 31,774,500
31,774,500 Hardware (0.54 %)
Allied Digital Services Limited 72,000 12,560,400 12,560,400
Industrial Capital Goods (5.79 %)Bharat Heavy Electricals Limited 72,000 108,759,600 Suzlon Energy Limited 630,000 26,680,500
135,440,100 Industrial Products (2.45 %)
Jain Irrigation Systems Limited 90,000 30,762,000 Max India Limited 270,000 26,514,000
57,276,000 Media & Entertainment (2.03 %)
IBN18 Broadcast Limited 646,840 47,478,056 47,478,056
Non - Ferrous Metals (2.07 %)Sterlite Industries (India) Limited @ 135,000 48,276,000
48,276,000 Oil (5.74 %)
Oil and Natural Gas Corporation Limited 92,500 72,168,500 Cairn India Limited @ 337,110 62,061,951
134,230,451 Pesticides (2.01 %)
United Phosphorus Limited 477,000 46,865,250 46,865,250
Petroleum Products (14.25 %)Reliance Industries Limited @ 135,000 205,841,250 Indian Oil Corporation Limited 180,000 69,804,000 Bharat Petroleum Corporation Limited 153,000 57,535,650
333,180,900 Pharmaceuticals (4.50 %)
Cipla Limited 257,787 56,726,029 Dr.Reddy's Laboratories Limited 99,000 48,529,800
105,255,829 Power (4.22 %)
Reliance Infrastructure Limited 108,000 55,679,400 Power Grid Corporation of India Limited 450,000 43,020,000
98,699,400 Software (5.10 %)
Infosys Technologies Limited 90,000 119,151,000 119,151,000
Telecom - Services (5.74 %)Bharti Airtel Limited @ 139,000 86,979,250 IDEA Cellular Limited @ 940,549 47,121,505
134,100,755 Total (Cost Rs. 2,534,154,080) 2,337,385,216 TOTAL INVESTMENTS (Cost Rs. 2,534,154,080) 2,337,385,216
Equity DerivativesLong Futures (32.76 %)
GVK Power & Infrastructures Limited - Futures - April 2009 (100.00 %) 855,000 20,049,750 20,049,750
Short Futures (67.24 %)Larsen & Toubro Limited - Futures - April 2009 (11.81 %) 7,200 4,858,200 Bharti Airtel Limited - Futures - April 2009 (9.07 %) 6,000 3,730,800 S&P CNX Nifty - Futures - April 2009 (79.13 %) 10,800 32,564,700
41,153,700 Total 61,203,450
Deposits (8.93 %)^ Tenure Face Value6.3 % Standard Chartered Bank 91 120,000,000 10.1% Axis Bank 182 80,000,000 7.3 % Development Bank of Singapore 181 50,000,000 Total Deposits 250,000,000
^ Denotes Percentage to Net Asset Value.
@ Investment in companies which have invested more than five percent of the net asset value of any scheme of HSBC Mutual Fund.
Confirmation has been received from J P Morgan Chase Bank, Mumbai Branch at the end of the financial year for the investments held by them.
HSBC MUTUAL FUND - HSBC INDIA OPPORTUNITIES FUND
Statement of Portfolio Holding as at March 31, 2009
(Referred to in Schedule 1 to the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009 )
6
Annexure 1
(i) Transactions during the Year
Nature of Transaction Sponsor Investment ManagerAssociate of
Investment Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Purchase of Investments - - - 383,347,017 - 383,347,017 Previous Year - - - - - -
Sale of Investments - - - 254,098,680 - 254,098,680 Previous Year - - - 236,216,164 - 236,216,164
Subscription of Units (including switch in and dividend reinvestment) - - - - 6,354,026 6,354,026 Previous Year - - - - 2,147,434 2,147,434
Redemption of Units (including switch out) - - - - 350,870 350,870 Previous Year - - - - - -
Dividend Distribution( Including dividend reinvested) - - - - - - Previous Year - - - - 12,500 12,500
Investment Management and Advisory Fees - 40,753,805 - - - 40,753,805 Previous Year - 71,321,204 - - - 71,321,204
Brokerage/ Commission on Purchase/Sale of Investments 447,580 - 20,160 - - 467,740 Previous Year 1,353,000 - - - - 1,353,000
Brokerage/ Commission on Distribution of Units - - 12,053,491 - - 12,053,491 Previous Year - - 37,848,121 - - 37,848,121
Clearing Charges - - 1,179,175 - - 1,179,175 Previous Year - - 1,363,292 - - 1,363,292
Fixed Deposits Matured - - - - - - Previous Year - - 160,000,000 - - 160,000,000
Charges for Services Provided by Bank - - 22,424 - - 22,424 Previous Year - - 115,527 - - 115,527
(ii) Outstanding As At Year End
Nature of Transaction Sponsor Investment ManagerAssociate of
Investment Manager
Schemes under Common Control of
SponsorKey Management
Personnel Total
Investment Management and Advisory Fees Payable - 2,462,824 - - - 2,462,824 Previous Year - 4,813,721 - - - 4,813,721
Brokerage/ Commission Payable for Distribution of Units - - 732,193 - - 732,193 Previous Year - - 1,515,397 - - 1,515,397
Units Outstanding As At Year End - - - - 12,929,439 12,929,439 Previous Year - - - - 17,583,550 17,583,550
Other Receivables - 6,185 - 14,556 - 20,741 Previous Year - 1,016 - 1,944,056 - 1,945,072
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control ofthe Sponsor.
April 01, 2008 to March 31, 2009
April 01, 2006 to March 31, 2007
Purchase of InvestmentsHSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 128,663,810HSBC Fixed Term Series 35 126,976,981HSBC Floating Rate Fund Long Term Plan 48,113,031 -
Sale of InvestmentsHSBC Fixed Term Series 37 138,984,631 - HSBC Unique Opportunities Fund 29,342,964 - HSBC Equity Fund 29,032,042 - HSBC Cash Fund - 236,216,164
Other ReceivablesHSBC Equity Fund 14,556 1,898,556
(iv) Disclosures in respect of material transactions with persons referred to in Note 13 (I)(v) for key management personneland their relatives
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Subscription of Units (including switch in and dividend reinvestment)Naina Lal Kidwai 3,907,026 2,147,434 Kemaya Lal Kidwai 1,500,000 - Rashid K Kidwai 747,000 -
Redemption of Units (including switch out)Rashid K Kidwai 350,870 -
Dividend Distribution( Including dividend reinvested)Rahul Nelum Gidwani (Relative) - 12,500
Units Outstanding As At Year EndSanjay Prakash - 5,383,351 Kemaya Lal Kidwai 1,597,327 - Naina Lal Kidwai 8,388,928 8,470,345
7
Year ended March 31, 2009
Rupees
Year ended March 31, 2008
Rupees
A. Cashflow from Operating Activities(Deficit)/Surplus for the year (1,063,532,125) 1,703,996,211
Adjustments for:- (Increase)/Decrease in Investments at cost 1,713,376,170 994,758,743 (Increase)/Decrease in Other current assets (1,325,644) 4,595,501 Increase/(Decrease) in Current liabilities (16,045,190) (2,444,405) Net cash generated from operations ( A ) 632,473,211 2,700,906,050
B Cashflow from Financing Activities Increase/(Decrease) in Unit capital (417,316,213) (876,401,116) Increase/(Decrease) in Unit premium (265,590,652) (1,121,142,832)
Adjustments for:- Increase/(Decrease) in Sundry creditors for units redeemed by investors (29,009,980) 24,117,145 (Increase)/Decrease in Sundry debtors for units issued to investors 7,127,353 59,930,318
Dividend paid during the year (including reversal of Rs. 1,520 for prior year (previous year Rs. Nil) 1,520 (532,437,884)
Net cash (used in) financing activities ( B ) (704,787,972) (2,445,934,369)
Net Increase/(Decrease) in Cash and cash equivalents (A+B) (72,314,761) 254,971,681
Cash and Cash Equivalents at the beginning of the year 554,167,976 299,196,295 Cash and Cash Equivalents at the close of the year 481,853,215 554,167,976
Notes :March 31, 2009
Rupees March 31, 2008
Rupees
1 Cash and Cash Equivalents include the following :
Balances with Scheduled Banks : - In Current Account 710,931 5,141,382 - In Dividend Account 165,360 15,651 - In Deposit Account 250,000,000 145,000,000 Margin Deposit with Clearing Corporation of India Limited towards Collateralized Borrowing and Lending Obligation 1,152,000 1,152,000 Margin Deposit with Clearing Corporation of India Limited towards Reverse Repos and Governement Securities 15,000,000 Temporary Book Overdraft (101) - Other Collaterised LendingReverse Repo 50,006,264 41,093,235 Collateralised Borrowing and Lending Obligation 52,318,761 289,265,708 Derivative Margin Deposit 112,500,000 72,500,000
481,853,215 554,167,976
2 The above Cash Flow Statement has been prepared under the "Indirect Method" set out in Accounting Standard - 3 on Cash Flow Statements,issued by The Institute of Chartered Accountants of India.
This is the Cash Flow Statement referred to in our report of even date.
PARTHA GHOSH For HSBC Asset Management (India)
Partner HSBC Mutual Fund Private Limited
Membership No. F-55913For and on behalf of
PRICE WATERHOUSE
Chartered Accountants VikramaadityaTrustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai Date : 06 July 2009 Fund Manager(s)
HSBC MUTUAL FUND - HSBC INDIA OPPORTUNITIES FUND
Cash Flow Statement for the year ended March 31, 2009
For Board of Trustees of
8
HSBC MUTUAL FUND-HSBC INDIA OPPORTUNITIES FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
SCHEDULE 8
1Notes to the Financial Statements
1 Organisation
HSBC India Opportunities Fund (the “Scheme”) is an open-ended growth scheme of HSBC Mutual Fund (the “Fund”) and was launched on January 22, 2004. HSBC Mutual Fund has been sponsored by HSBC Securities and Capital Markets (India) Private Limited. HSBC Asset Management (India) Private Limited incorporated under the Companies Act, 1956 has been appointed as the asset management company. The duration of the Scheme is perpetual. The Scheme closed for initial subscription on February 13, 2004 and reopened for issue and redemption of units on March 5, 2004. The investment objective of the Scheme is to seek long-term capital growth through investments across all market capitalizations, including small, mid and large cap stocks. The Scheme will endeavor to invest in large cap companies as well as identify mid-cap stocks, which have the potential to become blue chip large cap stocks over time. The Scheme aims to be predominantly invested in equity and equity related securities. However, it will move a significant portion of its assets towards fixed income securities if the Scheme becomes negative on equity markets. The Scheme has two Options - Growth Option and Dividend Option. The Scheme will not declare dividend under the Growth Option in normal circumstances. The income earned on such units will remain invested within the Scheme and will be reflected in the net asset value.
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 (SEBI) (Mutual Funds) Regulations, 1996 (the “Regulations”) and amendments thereto, as applicable.
2.2 Portfolio Valuation
Investments are stated at market / fair value at the Balance Sheet date/date of determination. In valuing the Scheme’s investments:
i. Equity securities listed on a recognized stock exchange are valued at the last quoted closing
price on the National Stock Exchange of India Limited (NSE). If on a particular valuation date, a security is not traded on NSE, the value at which it is traded on Bombay Stock Exchange Limited (BSE) is used. If no sale is reported at that time, the last quoted closing price on the principal stock exchange on which the security is traded is used when it is not more than thirty days prior to the valuation date.
ii. Non-traded and thinly traded equity securities, including those not traded within thirty days
prior to the valuation date are valued at fair value as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India (SEBI).
HSBC MUTUAL FUND-HSBC INDIA OPPORTUNITIES FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
iii. Equity shares awaiting listing are valued at fair value as determined in good faith by HSBC
Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund.
iv. Instruments bought on ‘repo’ basis are valued at the resale price after deduction of applicable interest up to the date of resale.
v. Traded money market securities are valued at the yield at which they are traded on the valuation date. If no sale is reported at that time, such security is valued at the last traded price plus accretion of the difference between the face value and the last traded price. Non traded money market instruments are valued at cost plus accrued interest.
Following the issue of guidance note on accounting for investments in the financial statements of the mutual funds by the Institute of Chartered Accountants of India (pursuant to the Eleventh Schedule of the Regulations) net unrealised appreciation / depreciation in the value of investments and derivatives is determined separately for each category of investments and derivatives. In respect of each category of investments and derivatives, the net change in the unrealised appreciation if any, between two balance sheet dates / valuation dates is accounted through the Revenue Account and thereafter the net unrealised appreciation is transferred from the Revenue Account to the Unrealised Appreciation Reserve. The net depreciation if any, is accounted through the Revenue Account. Net unrealised appreciation is reduced from the distributable income at the time of income distribution. The loss on investments sold/transferred during the year/period is charged to the Revenue Account instead of being first adjusted against the provision for depreciation, if already created in the previous year/period as recommended in the Guidance Note. However the departure from the Guidance Note does not have any net impact on the net asset value of the options of the Scheme.
2.3 Securities Transaction
Investment securities transactions are accounted for on a trade date basis. The Scheme uses the average cost method for determining the realized gain or loss on sale of investments.
2.4 Investment Income
Dividend and interest income are recorded on an accrual basis.
2.5 Derivatives The Scheme enters into derivative transactions in equity / index futures / options for the purpose of
hedging and portfolio balancing.
“Derivative margin deposit” representing the margin towards equity derivative contracts entered into by the Scheme is disclosed under “Other Current Assets”.
HSBC MUTUAL FUND-HSBC INDIA OPPORTUNITIES FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
Futures
• Futures contracts are marked to market daily at the futures settlement price as determined by the exchange. The variation margin calculated as the difference between the trade price or the previous day’s settlement price, as the case may be, and the current day’s settlement price is recorded as a receivable or payable. • When a contract is closed (squared off)/ settled (on expiry), the difference between the final settlement / square-off price and the contract price is recognised in the Revenue Account. If more than one futures contracts in respect of the same stock / index and expiry date, to which the squared off / settled contract pertains, is outstanding at the time of square off / settlement of the contract, the average method is followed for determining the gain or loss. • As at the Balance Sheet date / date of determination, all open futures positions are valued at the futures settlement price as determined by the exchange where it is traded. The unrealised appreciation / depreciation on all open positions is considered for determining the net asset value.
2.6 Net Asset Value for Growth/Dividend Options
The net asset value of the units of the Scheme is determined separately for the units issued under the Growth and Dividend Options. For reporting the net asset value for the 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 units outstanding.
2.7 Unit Premium Reserve Upon issue and redemption of units, the net premium or discount to the face value of units is adjusted
against the unit premium reserve of the Scheme, after an appropriate portion of the issue proceeds and redemption payout is credited or debited respectively to the income equalization reserve.
The unit premium reserve is available for dividend distribution except to the extent it is represented by unrealized net appreciation in value of investments.
2.8 Income Equalization Reserve
The net distributable income relating to units issued / repurchased is transferred to / from income equalization reserve for determining the net surplus / deficit, transferred from / to unit premium reserve.
2.9 Load Charges Load collected is retained under a separate account in the Scheme and is used to meet the selling and distribution expenses.
3 Investment Management and Advisory Fees
The Scheme has paid or provided for investment management and advisory fees payable to HSBC Asset
Management (India) Private Limited for managing the Scheme at an average annual rate of 1.07 % of
the average daily net asset value recorded by the Scheme. All costs, charges and expenses incurred by
HSBC Asset Management (India) Private Limited in the administration and execution of the activities
HSBC MUTUAL FUND-HSBC INDIA OPPORTUNITIES FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
of the Scheme, except costs allowed to be charged to the Scheme under the Regulations, are on their
own account for which they receive investment management and advisory fees.
4 Trusteeship Fees
In accordance with the Deed of Trust dated February 7, 2002 between HSBC Securities and Capital
Markets (India) Private Limited (“The Settlor”) and the Board of Trustees of HSBC Mutual Fund, the
Fund has paid or provided for a fee not exceeding Rs.20,000 for each meeting of the Board of Trustees
attended by such Trustee not affiliated with the Settlor.
5 Custodian Fees
JP Morgan Chase Bank provides custodial services to the Scheme for which it receives custody fees including safekeeping.
6 Income Taxes
No provision for income tax is made as the Scheme qualifies as a recognized mutual fund under Section 10(23D) of the Income Tax Act, 1961. For taxes deducted at source from the investment income, which are recoverable, a receivable is recorded in the books of account.
7 Aggregate Appreciation and Depreciation In Value of Investments
0Aggregate appreciation and depreciation in value of investments are as follows:
March 31, 2009
(Rupees) March 31, 2008
(Rupees) Equity Shares -Appreciation 216,543,449 1,007,175,391 -Depreciation 413,312,313 524,910,566 Equity Futures -Appreciation 2,252,115 2,232,978 -Depreciation 1,040,116 2,023,222
8 Aggregate Value of Purchase and Sale of Investments
The aggregate value of investments purchased and sold during the financial year (excluding accretion of discount of Rs. 2,875,943) is Rs. 4,802,419,100 and Rs. 5,302,898,939 respectively being 125.54 % and 138.62 % of the average daily net assets.
9 Income and Expenses
The total income (including net loss on sale of investments and net change in unrealized depreciation in
the value of investments and derivatives) and expenditure during the year is Rs. (1,172,555,646) and Rs.
87,745.445 respectively being (30.65) % and 2.29 % of the average daily net assets.
HSBC MUTUAL FUND-HSBC INDIA OPPORTUNITIES FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
10 Equity Derivatives Disclosures:
Futures Details of open interest in equity futures as at March 31, 2009.
Underlying Asset's Name Number of contracts Units Outstanding (Short) Bharti Airtel Limited 12 (6,000)GVK Power & Infrastructures Limited 45 855,000Larsen and Toubro Limited 18 (7,200)S&P CNX Nifty 216 (10,800)
Notional value of futures contracts sold by the Scheme and outstanding as on March 31, 2009
aggregates to Rs. 61,203,450.
Net Profit on futures transactions recognized in the Revenue Account for the year ended March 31,
2009 aggregates to Rs. 118,448,717. 11 Disclosure Under Regulation 25(8) of the Securities and Exchange Board of India (Mutual
Funds ) Regulation, 1996 as amended and in accordance with Accounting Standard 18 on ‘Related Party Disclosures’ issued by the Institute of Chartered Accountants of India (ICAI)
The Scheme has entered into transactions with certain related parties. The information required in this regard in accordance with Accounting Standard 18 on ‘Related Party Disclosures’ issued by the Institute of Chartered Accountants of India and regulation 25(8) of SEBI Regulation, is provided below :
I Related party relationships
Name Description of relationship (i) HSBC Securities and Capital Markets (India) Private Limited Sponsor of the Fund
(ii) HSBC Asset Management (India) Private Limited Investment Manager to the Schemes of HSBC Mutual Fund
(iii) The Hong Kong and Shanghai Banking Corporation Limited Associate of the Investment Manager (iv) Schemes of the Fund, Under Common Control of the Sponsor
HSBC Advantage India Fund HSBC Cash Fund HSBC Dynamic Fund HSBC Emerging Market Fund HSBC Equity Fund HSBC Fixed Term Series 21 upto April 02, 2008 HSBC Fixed Term Series 22 upto April 22, 2008 HSBC Fixed Term Series 23 upto April 02, 2008 HSBC Fixed Term Series 24 upto December 15, 2008 HSBC Fixed Term Series 25 upto April 23, 2008 HSBC Fixed Term Series 27 upto April 02, 2008 HSBC Fixed Term Series 28 upto May 26, 2008 HSBC Fixed Term Series 30 HSBC Fixed Term Series 32 upto July 10, 2008
HSBC MUTUAL FUND-HSBC INDIA OPPORTUNITIES FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
HSBC Fixed Term Series 33 upto September 08, 2008 HSBC Fixed Term Series 35 upto September 18, 2008 HSBC Fixed Term Series 36 upto October 07, 2008 HSBC Fixed Term Series 37 upto October 22, 2008 HSBC Fixed Term Series 41 HSBC Fixed Term Series 42 HSBC Fixed Term Series 44 HSBC Fixed Term Series 45 HSBC Fixed Term Series 46 HSBC Fixed Term Series 47 upto June 26, 2008 HSBC Fixed Term Series 48 with effect from March 28, 2008 upto October 07, 2008 HSBC Fixed Term Series 49 HSBC Fixed Term Series 50 with effect from April 17, 2008 HSBC Fixed Term Series 51 with effect from April 23, 2008 upto October 23, 2008 HSBC Fixed Term Series 52 with effect from April 24, 2008 HSBC Fixed Term Series 53 with effect from May 23, 2008 HSBC Fixed Term Series 54 with effect from May 27, 2008 HSBC Fixed Term Series 55 with effect from June 26, 2008 upto December 29, 2008 HSBC Fixed Term Series 56 with effect from July 25, 2008 HSBC Fixed Term Series 57 with effect from August 13, 2008 HSBC Fixed Term Series 58 with effect from July 22, 2008 upto November 05, 2008 HSBC Fixed Term Series 59 with effect from July 07, 2008 HSBC Fixed Term Series 60 with effect from July 10, 2008 upto October 13, 2008 HSBC Fixed Term Series 61 with effect from July 17, 2008 HSBC Fixed Term Series 62 with effect from August 22, 2008 HSBC Fixed Term Series 63 with effect from September 04, 2008 HSBC Fixed Term Series 66 with effect from September 18, 2008 HSBC Fixed Term Series 68 with effect from October 06, 2008 to January 14, 2009 HSBC Flexi Debt Fund HSBC Floating Rate Fund Long Term Plan HSBC Floating Rate Fund Short Term Plan HSBC Gilt Fund (Formerly, HSBC Gilt Fund – Short Term Plan) HSBC Income Fund Investment Plan HSBC Income Fund Short Term Plan HSBC Interval Fund - Plan I upto November 20, 2008 HSBC Interval Fund - Plan II upto December 10, 2008 HSBC Interval Fund - Plan III upto December 17, 2008 HSBC Ultra Short Term Bond Fund (Formerly , HSBC Liquid Plus Fund) HSBC Midcap Fund HSBC MIP Fund Regular Plan HSBC MIP Fund Savings Plan HSBC Small Cap Fund HSBC Tax Saver Equity Fund HSBC Unique Opportunities Fund
(v) Key Management Personnel and their relatives:
Nelum Pahlaj Gidwani – Associate Trustee Naina Lal Kidwai – Chairman of the Investment Manager Vikramaditya – Director and the Chief Executive Officer of the Investment Manager with effect from July 16, 2008 Dr. Rudolf Apenbrink – Associate Tustee Ayaz Ebrahim – Director with effect from April 11, 2008
HSBC MUTUAL FUND-HSBC INDIA OPPORTUNITIES FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
Sanjay Prakash – Director and the Chief Executive Officer upto July 16, 2008 Avan Nelum Gidwani* – Relative of a Key Management Personnel Rashid K Kidwai – Relative of a Key Management Personnel Rumaan Kidwai* – Relative of a Key Management Personnel Kemaya Lal Kidwai – Relative of a Key Management Personnel Amrita Vikramaaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Raaghav Aaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Rhea Aaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Gabriele A Apenbrink* – Relative of a Key Management Personnel Christian R Apenbrink* – Relative of a Key Management Personnel Katharina S Apenbrink* – Relative of a Key Management Personnel Yasmin Ebrahim* – Relative of a Key Management Personnel with effect from April 11, 2008 Daanyal Ebrahim* – Relative of a Key Management Personnel with effect from April 11, 2008 Nilufer Prakash*– Relative of a Key Management Personnel upto July 16, 2008 Tara Prakash*– Relative of a Key Management Personnel upto July 16, 2008 Anahita Prakash* – Relative of a Key Management Personnel upto July 16, 2008 * There were no transactions during the year.
II The following transactions occurred with the related parties during the year in the ordinary course of
business: Refer Annexure I
III During the year, HSBC Securities and Capital Markets (India) Private Limited, the Sponsor was paid
brokerage aggregating Rs. 447,580 on purchase and sale of investments. The Hongkong and Shanghai
Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited
was paid collection/bank charges Rs. 22,424and brokerage amounting to Rs. 12,053,491 for procuring
unit subscriptions for the Scheme and clearing member charges on derivative transactions Rs.
1,179,175. The brokerage paid was at rates similar to those offered to other brokers / distributors.
12 Disclosure under Regulation 25(11) of the Securities and Exchange Board of India (Mutual
Funds) Regulations, 1996 as amended
HSBC Mutual Fund has made investments in companies, which hold/ have held units in excess of 5% of the net asset value of any Scheme of HSBC Mutual Fund which have been listed in Annexure II.
The investments comprise equity shares, debentures/ bonds, commercial paper, fixed deposits and other debt instruments and were made solely on the basis of sound fundamentals of these companies
13 Segment Reporting
The Scheme operates in one segment only viz. to primarily generate attractive returns from a diversified and actively managed portfolio of equity and equity related instruments.
14 Unclaimed Redemptions
As at March 31, 2009, unclaimed redemptions aggregate Rs. 311,406 payable to 10 investors.
15 Unclaimed Dividend
HSBC MUTUAL FUND-HSBC INDIA OPPORTUNITIES FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
As at March 31, 2009, unclaimed dividends aggregate Rs. 11,13,792 payable to 285 investors.
16 Prior Year’s Figures
Previous year’s figures have been re-grouped/re-arranged where appropriate.
Signatures to the Schedules 1 to 8 forming part of the Balance Sheet and the Revenue Account.
PARTHA GHOSH Partner Membership No. F-55913 For and on behalf of PRICE WATERHOUSE Chartered Accountants
For Board of Trustees of HSBC Mutual Fund
For HSBC Asset Management (India) Private Limited
Trustee
Vikramaaditya Director and Chief Executive Officer
Trustee
Director
Place: Mumbai Date :
Fund Manager(s)
Auditors' Report To the Board of Trustees of HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Midcap Equity Fund ("The Scheme") as at March 31, 2009, the related Revenue Account for the year ended on that date annexed thereto, and the Cash Flow Statement for the year ended on that date which we have signed under reference to this report. These financial statements are the responsibility of the Board of Trustees of HSBC Mutual Fund and the Management of HSBC Asset Management (India) 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. Our procedures included confirmation of securities owned and unit capital balances as at March 31, 2009 by correspondence with the custodian/ others and registrar and transfer agent respectively. 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, the Revenue Account and the Cash Flow Statement 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,
(i) The Balance Sheet, the Revenue Account and the Cash Flow Statement 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 also give respectively, a true and fair view of the state of affairs of HSBC Mutual Fund – HSBC Midcap Equity Fund as at March 31, 2009, its net deficit and its cash flows for the year ended on that date.
(ii) The Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended on that date,
together with the notes thereon have been prepared in all material respects 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.
PARTHA GHOSH Partner Membership No. F-55913 For and on behalf of PRICE WATERHOUSE Chartered Accountants Place: Mumbai Date: July 06, 2009.
.
March 31, 2009 March 31, 2008Schedule Rupees Rupees
ASSETS
Investments 1 757,965,962 2,009,867,433
Deposits 2 93,213,000 33,213,000
Other Current Assets 3 96,755,141 334,516,049
Deferred Revenue Expenditure 4 4,333,045 8,116,690
TOTAL 952,267,148 2,385,713,172
LIABILITIES
Unit Capital 5 1,183,790,324 1,480,644,766
Reserves and Surplus 6 (247,085,099) 875,365,168
Current Liabilities and Provisions 7 15,561,923 29,703,238
TOTAL -0.05 952,267,148 2,385,713,172
March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008 March 31, 2008
RECONCILIATION OF NET ASSET VALUE PER UNIT Growth Option Divdend Option Total Growth Option Divdend Option Total
Rupees Rupees Rupees Rupees Rupees Rupees
Net Assets as per Balance Sheet (Total Assets less Current Liabilities and Provisions) (Note 2.6) 429,122,356 507,582,869 936,705,225 990,626,478 1,365,383,456 2,356,009,934
Number of Units in Issue 42,452,067.060 75,926,965.375 48,009,622.007 100,054,854.569
Net Asset Value per Unit 10.1084 6.6851 20.6339 13.6463
Notes to the Financial Statements. 9
This is the Balance Sheet referred to in our report of even date.
PARTHA GHOSH For Board of Trustees of For HSBC Asset Management (India)
Partner HSBC Mutual Fund Private Limited
Membership No. F-55913
For and on behalf of
PRICE WATERHOUSE
Chartered Accountants
Vikramaaditya
Trustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai
Date : 06 July 2009 Fund Manager(s)
The Schedules referred to herein form an integral part of the Financial Statements.
HSBC MUTUAL FUND - HSBC MIDCAP EQUITY FUND
Balance Sheet as at March 31, 2009
0
April 1, 2008 to April 1, 2007 toMarch 31, 2009 March 31, 2008
Schedule Rupees Rupees
INCOME AND GAINS
Dividends (Note 2.4) 17,094,730 19,639,904
Interest and Discount 8 17,165,601 11,092,592
Net Profit on Sale of Investments and Derivatives (Note 2.3 and 2.5) - 872,875,014
TOTAL 34,260,331 903,607,510
EXPENSES AND LOSSES
Net Loss on Sale of Investments and Derivatives (Note 2.3 and 2.5) 954,963,644 -
Investment Management and Advisory Fees (Note 3) 17,573,030 33,232,012
Transfer Agent Fees and Expenses 3,062,822 5,072,962
Trusteeship Fees and Expenses (Note 4) 6,310 16,325
Custodian Fees and Expenses (Note 5) 963,666 1,234,950
Audit Fees 300,000 350,000
Selling and Distribution Expenses 10,018,089 19,730,571
Amortisation of Deferred Revenue Expenditure (Note 2.10) 3,783,645 3,794,011
Other Operating Expenses 3,696,770 8,298,662
TOTAL 994,367,976 71,729,493
Less: Expenses to be Reimbursed by the Investment Manager (Note 7) 2,909,306 -
TOTAL 991,458,670 71,729,493
Net Realised (Losses)/Gains for the Year (957,198,339) 831,878,017
Net Change in Unrealised Depreciation in Value of Investments and Derivatives (103,013,793) (152,637,629)
Net (Losses)/Gains for the Year (1,060,212,132) 679,240,388
Net Change in Unrealised Appreciation in Value of Investments and Derivatives - (201,794,045)
Net (Deficit)/Surplus including Net change in Unrealised Appreciation/Depreciation in Value of Investments and Derivatives (1,060,212,132) 477,446,343
Transferred to Unrealised Appreciation Reserve - 201,794,045
Net (Deficit)/Surplus for the Year -0.10 (1,060,212,132) 679,240,388
April 1, 2008 to April 1, 2008 to April 1, 2008 to April 1, 2007 to April 1, 2007 to April 1, 2007 toMarch 31, 2009 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008 March 31, 2008Growth Option Dividend Option Total Growth Option Dividend Option Total
Rupees Rupees Rupees Rupees Rupees Rupees
Net (Deficit)/Surplus for the Year (460,020,775) (600,191,356) (1,060,212,132) 262,659,434 416,580,954 679,240,388
Transfer From Reserve Fund - - - - 231,651,870 231,651,870
Transfer from Income Equalisation Reserve (Note 2.8) (45,838,696) (10,552,844) (56,391,540) (119,663,601) (92,519,192) (212,182,793)
Dividend Distributions - - - - (229,338,282) (229,338,282)
Balance Transferred to Reserve Fund (505,859,471) (610,744,200) (1,116,603,672) 142,995,833 326,375,350 469,371,183
Notes to the Financial Statements. 9
This is the Revenue Account referred to in our report of even date.
PARTHA GHOSH For Board of Trustees of For HSBC Asset Management (India)
Partner HSBC Mutual Fund Private LimitedMembership No. F-55913
For and on behalf of
PRICE WATERHOUSE
Chartered Accountants
VikramaadityaTrustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai
Date : 06 July 2009 Fund Manager(s)
HSBC MUTUAL FUND - HSBC MIDCAP EQUITY FUND
The Schedules referred to herein form an integral part of the Financial Statements.
Revenue Account for the year ended March 31, 2009
1
SCHEDULE 1 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008Investments Market / Fair Value Cost Market / Fair Value Cost(Notes 2.2, 2.3, 8, 9 and 12) Rupees Rupees Rupees Rupees
(Refer to the attached Statement of Portfolio Holding as at March 31, 2009)
Equity Shares 757,965,962 1,012,946,283 2,009,867,433 2,162,422,424
TOTAL 757,965,962 1,012,946,283 2,009,867,433 2,162,422,424
SCHEDULE 2 March 31, 2009 March 31, 2008Deposits Rupees Rupees
Deposits with Scheduled Bank (Under Lien Towards Margin Deposit for Equity Derivatives) 92,000,000 32,000,000
Margin Deposit with the Clearing Corporation of India Limited towards Collateralised Borrowing and Lending Obligation 1,213,000 1,213,000
TOTAL 93,213,000 33,213,000
SCHEDULE 3 March 31, 2009 March 31, 2008Other Current Assets Rupees Rupees
Balances with Banks - in Current Account 33,499,281 3,591,471 - in Dividend Account 48,954 29,962
Sales Contracts Awaiting Completion - Equity Shares 33,028,715 92,052,997
Reverse Repos 350,043 43,060,125
Collateralised Borrowing and Lending Obligation 366,011 175,318,608
Receivable on Outstanding Future Contracts 807,460 -
Unit Subscription Receivable 820,000 1,909,550
Inter-Scheme Receivable - For 'Switch in' - 3,260,882 - For 'Others' 5,000 44,000
Derivative Margin Deposit (Note 2.5) 23,300,000 14,000,000
Interest Receivables on:- Reverse Repos 45 9,481 - Collateralised Borrowing and Lending Obligation 45 40,828 - Deposits 740,898 643,069
- Margin Deposit with Clearing Corporation of India Limited 3,440 -
Dividend Receivable 37,796 -
Receivable from Investment Manager 2,912,349 3,286
Investment towards Unclaimed Redemption [(in 21,797.439 units (previous year 12,626.682 units) (Market Value Rs. 317,684.59) (previous year Rs 171,605) of HSBC Cash Fund - Growth Option) (Note 16)] 289,412 163,187
Investment towards Unclaimed Dividend [(in 27,353.879 units (previous year 30,929.405 units) (Market Value Rs. 398,666.37) (previous year Rs. 420,748) of HSBC Cash Fund - Growth Option) (Note 17)] 545,692 388,603
TOTAL 96,755,141 334,516,049
SCHEDULE 4 March 31, 2009 March 31, 2008Deferred Revenue Expenditure (Note 2.10) Rupees Rupees
Issue and Organisational Costs
At the beginning of the year 8,116,690 11,910,701
Less : Amortised during the year 3,783,645 3,794,011
At the end of the year 4,333,045 8,116,690
HSBC MUTUAL FUND - HSBC MIDCAP EQUITY FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the
Revenue Account for the year ended March 31, 2009
2
SCHEDULE 5 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008
Unit Capital Rupees Units Rupees Units
Growth Option
Issued and Subscribed :
Units of Rs.10 each fully paid up 1,239,211,232 123,921,123.241 1,239,211,232 123,921,123.241
Outstanding:
At the beginning of the year 480,096,220 48,009,622.007 616,321,841 61,632,184.126
Issued during the year 73,779,346 7,377,934.625 182,906,535 18,290,653.519
553,875,566 55,387,556.632 799,228,376 79,922,837.645
Redeemed during the year 129,354,896 12,935,489.572 319,132,156 31,913,215.638
At the end of the year 424,520,670 42,452,067.060 480,096,220 48,009,622.007
Dividend Option
Issued and Subscribed :
Units of Rs.10 each fully paid up 2,489,694,653 248,969,465.259 2,489,694,653 248,969,465.259
Outstanding:
At the beginning of the year 1,000,548,546 100,054,854.569 1,310,052,315 131,005,231.490
Issued during the year 60,384,637 6,038,463.722 296,287,037 29,628,703.676
1,060,933,183 106,093,318.291 1,606,339,352 160,633,935.166
Redeemed during the year 301,663,529 30,166,352.916 605,790,806 60,579,080.597
At the end of the year 759,269,654 75,926,965.375 1,000,548,546 100,054,854.569
TOTAL 1,183,790,324 118,379,032.435 1,480,644,766 148,064,476.576
HSBC MUTUAL FUND - HSBC MIDCAP EQUITY FUNDSchedules forming part of the Balance Sheet as at March 31, 2009 and the
Revenue Account for the year ended March 31, 2009
3
SCHEDULE 6 March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008 March 31, 2008Reserves and Surplus Growth Option Dividend Option Total Growth Option Dividend Option Total
Rupees Rupees Rupees Rupees Rupees RupeesUnit Premium Reserve (Note 2.7)
At the beginning of the year (125,756,671) (272,057,040) (397,813,711) (82,192,567) (150,007,873) (232,200,440)
Added during the year (69,101) (5,777,494) (5,846,595) (43,564,104) (122,049,167) (165,613,271)
At the end of the year (125,825,772) (277,834,534) (403,660,306) (125,756,671) (272,057,040) (397,813,711)
Income Equalisation Reserve (Note 2.8)
Added during the year (45,838,696) (10,552,844) (56,391,540) (119,663,601) (92,519,192) (212,182,793)
Transferred to Revenue Account 45,838,696 10,552,844 56,391,540 119,663,601 92,519,192 212,182,793
At the end of the year - - - - - -
Unrealised Appreciation Reserve
At the beginning of the year - - - - - -
Transferred from Reserve Fund - - - 92,846,436 108,947,609 201,794,045
Net Change in Unrealised Appreciation in Value of Investments and Derivatives Transferred from Revenue Account - - - (92,846,436) (108,947,609) (201,794,045)
At the end of the year - - - - - -
Reserve Fund
At the beginning of the year 636,286,929 636,891,950 1,273,178,879 586,137,532 651,116,079 1,237,253,611
Transfer to Revenue Account - - - - (231,651,870) (231,651,870)
Transferred to Unrealised Appreciation Reserve - - - (92,846,436) (108,947,609) (201,794,045)
Balance Transferred from Revenue Account (505,859,471) (610,744,200) (1,116,603,672) 142,995,833 326,375,350 469,371,183
At the end of the year 130,427,458 26,147,750 156,575,207 636,286,929 636,891,950 1,273,178,879
TOTAL 4,601,686 (251,686,784) (247,085,099) * 510,530,258 364,834,910 875,365,168 *
* The share of the Options of the Reserves and Surplus is as follows : March 31, 2009 March 31, 2008
Growth Option : Rs. 4,601,686 510,530,258
Dividend Option : Rs. (251,686,785) 364,834,910 Total : Rs. (247,085,099) 875,365,168
HSBC MUTUAL FUND - HSBC MIDCAP EQUITY FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the
Revenue Account for the year ended March 31, 2009
4
SCHEDULE 7 March 31, 2009 March 31, 2008Current Liabilities and Provisions Rupees Rupees
Current Liabilities
Investment Management and Advisory Fees 951,594 2,283,458
Transfer Agent Fees and Expenses 121,184 329,640
Custodian Fees and Expenses 41,503 150,488
Audit Fees 300,000 350,000
Selling and Distribution Expenses 881,716 2,156,545
Purchase Contracts Awaiting Completion -Equity Shares 5,386,586 3,590,124
Inter Scheme Payable - For 'Switch-Out' 2,145,682 13,585,506 - For 'Others' - 61,500
Payable on Outstanding Future Contracts - 115,500
Temporary Book Overdraft 1,239 -
Unit Redemptions Payable 884,017 2,139,526
Unclaimed Redemption (Note 16) 304,061 294,471
Unclaimed Dividend (Note 17) 594,629 418,136
Load Charges (Note 2.9) 3,078,121 2,793,440
Payable for Initial Issue Expenses 92,372 92,422
Sundry Payables 779,219 1,342,482
TOTAL 15,561,923 29,703,238
SCHEDULE 8
Interest and Discount (Note 2.4) March 31, 2009 March 31, 2008Rupees Rupees
Deposits 7,059,314 2,998,757
Commercial Paper 1,777,294 -
Reverse Repos 6,688,348 7,492,200
Collateralised Borrowing and Lending Obligation 1,625,163 527,163
Margin Deposit with the Clearing Corporation of India Limited 15,478 20,934
Other Income 4 53,538
TOTAL 17,165,601 11,092,592
HSBC MUTUAL FUND - HSBC MIDCAP EQUITY FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and theRevenue Account for the year ended March 31, 2009
5
Description Quantity Market ValueRupees
Equity Shares (100 %)Auto Ancillaries (9.64 %)
Exide Industries Limited 780,830 32,287,321 Everest Kanto Cylinder Limited 225,000 26,988,750 Bosch Limited 4,500 13,826,925
73,102,996 Banks (11.34 %)
Union Bank of India 198,723 29,182,472 HDFC Bank Limited @ 21,000 20,441,400 Bank of Baroda @ 81,000 18,982,350 Indian Bank 210,639 17,314,526
85,920,748 Brewers (1.30 %)
Shaw Wallace & Company Limited 68,269 9,861,457 9,861,457
Cement (6.77 %)UltraTech Cement Limited @ 35,000 19,297,250 The India Cements Limited 174,495 18,496,470 Orient Paper & Industries Limited 553,706 13,482,741
51,276,461 Consumer Non Durables (15.07 %
Colgate Palmolive India Limite 90,000 42,408,000 Shree Renuka Sugars Limited 330,000 30,096,000 United Spirits Limited 27,000 17,521,650 Marico Limited 209,081 12,607,584 Advanta India Limited 25,197 11,590,620
114,223,854 Ferrous Metals (1.56 %)
PSL Limited 139,624 11,791,247 11,791,247
Finance (3.12 %)LIC Housing Finance Limited 105,529 23,680,708
23,680,708 Gas (3.66 %)
Indraprastha Gas Limited 253,350 27,729,158 27,729,158
Hardware (0.95 %)Allied Digital Services Limited 41,476 7,235,488
7,235,488 Hotels (1.66 %)
EIH Limited 91,375 7,903,937 Viceroy Hotels Limited 294,666 4,640,990
12,544,927 Industrial Capital Goods (3.17 %)
Kirloskar Pneumatic Company Limited 90,000 14,715,000 Crompton Greaves Limited 75,592 9,335,612
24,050,612 Industrial Products (6.24 %)
Jain Irrigation Systems Limited 82,473 28,189,271 Sintex Industries Limited 195,519 19,131,534
47,320,805 Media & Entertainment (3.11 %)
Zee News Limited 720,039 23,581,277 23,581,277
Pesticides (3.11 %)United Phosphorus Limited 240,000 23,580,000
23,580,000 Petroleum Products (7.21 %)
Reliance Industries Limited @ 15,000 22,871,250 Bharat Petroleum Corporation Limited 48,000 18,050,400 Hindustan Petroleum Corporation Limited 51,000 13,731,750
54,653,400 Pharmaceuticals (9.16 %)
Lupin Limited 64,373 44,066,537 Cipla Limited 66,000 14,523,300 Opto Circuits (India) Limited 108,000 10,854,000
69,443,837 Power (6.73 %)
GVK Power and Infrastructure Limited 1,320,000 30,888,000 CESC Limited 95,400 20,129,400
51,017,400 Software (2.38 %)
Infotech Enterprises Limited 212,045 18,023,825 18,023,825
Telecom - Equipment & Accessories (3.82 %OnMobile Global Limited 90,768 28,927,762
28,927,762 Total (Cost Rs. 1,012,946,283) 757,965,962 Total INVESTMENTS (Cost Rs. 1,012,946,283) 757,965,962
Equity DerivativesLong Futures (100 %)
Jaiprakash Associates Limited - Futures - April 2009 (32.19 % 180,000 15,210,000 Hindustan Petroleum Corporation Limited - Futures - April 2009 (10.31 % 18,200 4,873,050 Reliance Industries Limited - Futures - April 2009 (29.15 % 9,000 13,775,400 IVRCL Infrastructures & Projects Limited - Futures - April 2009 (28.34 % 110,000 13,392,500
Total 47,250,950
Deposits (9.82 %)^ Tenure Face Value6.3 % Standard Chartered Bank 91 60,000,000 6.4% HSBC Bank 183 32,000,000 Total Deposits 92,000,000
^ Denotes Percentage to Net Asset Value.
@ Investment in companies which have invested more than five percent of the net asset value of any schemes of HSBC Mutual Fund.
Confirmation has been received from JP Morgan Chase Bank, Mumbai Branch at the end of the financial year for the investments held by them.
HSBC MUTUAL FUND - HSBC MIDCAP EQUITY FUND
Statement of Portfolio Holding as at March 31, 2009
for the year ended March 31, 2009)(Referred to in Schedule 1 to the Balance Sheet as at March 31, 2009 and the Revenue Account
6
( ) p
Dividend -
Net cash (used in)/generated from financing activities ( B ) (367,437,478)
Net Increase/(Decrease) in Cash and Cash Equivalents (A+B) (118,437,116)
Cash and Cash Equivalents Beginning of the Year 269,213,166
Cash and Cash Equivalents End of the Year 150,776,050
Notes :March 31, 2009
Rupees
1 Cash and Cash Equivalents include the following :
Balances with Scheduled Banks : - In Current Account 33,499,281
- In Dividend Account 48,954
- In Deposit Account 92,000,000
1,213,000
Temprorary Book Overdraft (1,239)
Other Collateralised LendingReverse Repo 350,043
Collateralised Borrowing and Lending Obligation 366,011
Derivative Margin Deposit 23,300,000
150,776,050
2
This is the Cash Flow Statement referred to in our report of even date.
PARTHA GHOSH For Board of Trustees of For HSBC Asset Management (India)
Partner HSBC Mutual Fund Private Limited
Membership No. F-55913
For and on behalf of
PRICE WATERHOUSE
Chartered Accountants
Vikramaaditya
Trustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai
Date : 06 July 2009 Fund Manager(s)
The above Cash Flow Statement has been prepared under the "Indirect Method" set out in Accounting Standard - 3 on Cash Flow Statementsof Chartered Accountants of India.
Margin Deposit with the Clearing Corporation of India Limited for Collateralised Borrowing and Lending Obligation
HSBC MUTUAL FUND - HSBC MIDCAP EQUITY FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and theRevenue Account for the year ended March 31, 2009.
Annexure 1
(i) Transactions during the Year
Nature of Transaction Sponsor Investment Manager
Associate of Investment Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and thier
Relatives Total
Purchase of Investments - - - 201,373,611 - 201,373,611 Previous Year - - - - - -
Sale of Investments - - - 139,433,529 - 139,433,529 Previous Year - - - - - -
Subscription of Units (including switch in and dividend reinvestment) - - - - 150,000 150,000 Previous Year - - - - 45,000 45,000
Redemption of Units (including switch out - - - - 2,230,960 2,230,960 Previous Year - - - - - -
Sale of Mutual Fund Units - - - - - - Previous Year - - - 148,241,948 - 148,241,948
Investment Management and Advisory Fees - 17,573,030 - - - 17,573,030 Previous Year - 33,232,012 - - - 33,232,012
Brokerage/ Commission on Distribution of Units - - 3,850,949 - - 3,850,949 Previous Year - - 13,494,905 - - 13,494,905
Brokerage/ Commission on Purchase/Sale of Investments 179,416 - - - - 179,416 Previous Year 572,000 - - - - 572,000
Clearing Charges - - 445,071 - - 445,071 Previous Year - - 169,121 - - 169,121
Reimbursment of Expenses - 2,909,306 - - - 2,909,306 Previous Year - - - - - -
Fixed Deposits Matured - - - - - - Previous Year - - 56,000,000 - - 56,000,000
Charges for Services Provided by Bank - - 23,153 - - 23,153 Previous Year - - 117,536 - - 117,536
(ii) Outstanding As At Year End
Nature of Transaction Sponsor Investment Manager
Associate of Investment Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and thier
Relatives Total
Investment Management and Advisory Fees Payabl - 951,594 - - - 951,594 Previous Year - 2,283,458 - - - 2,283,458
Brokerage/ Commission Payable for Distribution of Units - - 171,485 - - 171,485 Previous Year - - 596,649 - - 596,649
Units Outstanding As At Year End - - - - 505,271 505,271 Previous Year - - - - 2,924,012 2,924,012
Other Payables - - - - - - Previous Year - - - 61,500 - 61,500
Other Receivables - 2,912,349 - 5,000 - 2,917,349 Previous Year - 3,286 - 44,000 - 47,286
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control ofthe Sponsor.
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Purchase of InvestmentsHSBC Cash Fund 138,763,130 - HSBC Fixed Term Series 52 45,296,814 -
Sale of InvestmentsHSBC Fixed Term Series 68 59,931,777 - HSBC Equity Fund 29,862,659 - HSBC Income Fund Investment Plan 25,811,375 -
Sale of Mutual Fund Units (including switch outHSBC Cash Fund - 148,241,948
Other PayablesHSBC Advantage India Fund - 24,000 HSBC Equity Fund - 20,000
Other ReceivablesHSBC Advantage India Fund - 38,500 HSBC Equity Fund - 20,000 HSBC Emerging Market Fund 5,000 -
(iv) Disclosures in respect of material transactions with persons referred to in Note 13 (I)(v) for key management personneland their relatives
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Subscription of Units (including switch in and dividend reinvestment)Sanjay Prakash - 45,000 Vikramaaditya 90,000 - Rashid K Kidwai (relative) 60,000 -
Redemption of Units (including switch outSanjay Prakash 2,230,960 -
Units Outstanding As At Year EndNaina Lal Kidwai 271,059 553,303 Sanjay Prakash - 2,370,709 Vikramaaditya 110,991 - Rashid K Kidwai 123,221 -
0
HSBC MUTUAL FUND-HSBC MIDCAP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
.
SCHEDULE 9
1Notes to the Financial Statements
1 Organisation
HSBC Midcap Equity Fund (the “Scheme”) is an open-ended growth scheme of HSBC Mutual Fund (the “Fund”) and was launched on April 12, 2005. HSBC Mutual Fund has been sponsored by HSBC Securities and Capital Markets (India) Private Limited. HSBC Asset Management (India) Private Limited incorporated under the Companies Act, 1956 has been appointed as the asset management company. The duration of the Scheme is perpetual. The Scheme closed for initial subscription on May 03, 2005 and reopened for issue and redemption of units on May 24, 2005. The investment objective of the Scheme is to provide long term capital growth from an actively managed portfolio of equity and equity related securities primarily being midcap stocks. However, it could move a portion of its assets towards fixed income securities if the fund manager becomes negative on equity market. The Scheme has two Options - Growth Option and Dividend Option. The Scheme will not declare dividend under the Growth Option in normal circumstances. The income earned on such units will remain invested within the Scheme and will be reflected in the net asset value.
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 (SEBI) (Mutual Funds) Regulations, 1996 (the “Regulations”) and amendments thereto, as applicable.
2.2 Portfolio Valuation
Investments are stated at market / fair value at the Balance Sheet date/date of determination. In valuing the Scheme’s investments:
i. Equity securities listed on a recognized stock exchange are valued at the last quoted closing
price on the National Stock Exchange of India Limited (NSE). If on a particular valuation date, a security is not traded on NSE, the value at which it is traded on Bombay Stock Exchange Limited (BSE) is used. If no sale is reported at that time, the last quoted closing price on the principal stock exchange on which the security is traded is used when it is not more than thirty days prior to the valuation date.
ii. Non-traded and thinly traded equity securities, including those not traded within thirty days
prior to the valuation date are valued at fair value as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India (SEBI).
HSBC MUTUAL FUND-HSBC MIDCAP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
.
iii. Equity shares awaiting listing are valued at fair value as determined in good faith by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund.
iv. Traded money market securities are valued at the yield at which they are traded on the
valuation date. If no sale is reported at that time, such security is valued at the last traded price plus accretion of the difference between the face value and the last traded price. Non traded money market instruments are valued at cost plus accrued interest.
v. Instruments bought on ‘repo’ basis are valued at the resale price after deduction of applicable
interest up to the date of resale.
vi. Units in mutual fund are valued at the net asset value of the investee scheme.
Following the issue of guidance note on accounting for investments in the financial statements of the mutual funds by the Institute of Chartered Accountants of India (pursuant to the Eleventh Schedule of the Regulations) net unrealised appreciation / depreciation in the value of investments and derivatives is determined separately for each category of investments and derivatives. In respect of each category of investments and derivatives, the net change in the unrealised appreciation if any, between two balance sheet dates / valuation dates is accounted through the Revenue Account and thereafter the net unrealised appreciation is transferred from the Revenue Account to the Unrealised Appreciation Reserve. The net depreciation if any, is accounted through the Revenue Account. Net unrealised appreciation is reduced from the distributable income at the time of income distribution. The loss on investments sold/transferred during the year is charged to the Revenue Account instead of being first adjusted against the provision for depreciation, if already created in the previous year as recommended in the Guidance Note. However the departure from the Guidance Note does not have any net impact on the net asset value of the options of the Scheme.
2.3 Securities Transaction
Investment securities transactions are accounted for on a trade date basis. The Scheme uses the average cost method for determining the realized gain or loss on sale of investments.
2.4 Investment Income
Dividend and interest income are recorded on an accrual basis.
2.5 Derivatives The Scheme enters into derivative transactions in equity/ index futures for the purpose of hedging and
portfolio balancing.
HSBC MUTUAL FUND-HSBC MIDCAP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
.
“Derivative margin deposit” representing the margin towards equity derivative contracts entered into by the Scheme is disclosed under “Other Current Assets”.
Futures
• Futures contracts are marked to market daily at the futures settlement price as determined by the exchange. The variation margin calculated as the difference between the trade price or the previous day’s settlement price, as the case may be, and the current day’s settlement price is recorded as a receivable or payable. • When a contract is closed (squared off)/ settled (on expiry), the difference between the final settlement / square-off price and the contract price is recognised in the Revenue Account. If more than one futures contracts in respect of the same stock / index and expiry date, to which the squared off / settled contract pertains, is outstanding at the time of square off / settlement of the contract, the average method is followed for determining the gain or loss. • As at the Balance Sheet date / date of determination, all open futures positions are valued at the futures settlement price as determined by the exchange where it is traded. The unrealised appreciation / depreciation on all open positions is considered for determining the net asset value.
2.6 Net Asset Value for Growth/Dividend Options
The net asset value of the units of the Scheme is determined separately for the units issued under the Growth and Dividend Options. For reporting the net asset value for the Options, daily income earned, including realized and unrealised 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 units outstanding.
2.7 Unit Premium Reserve Upon issue and redemption of units, the net premium or discount to the face value of units is adjusted
against the unit premium reserve of the Scheme, after an appropriate portion of the issue proceeds and redemption payout is credited or debited respectively to the income equalization reserve.
The unit premium reserve is available for dividend distribution except to the extent it is represented by
unrealised net appreciation in value of investments.
2.8 Income Equalization Reserve
The net distributable income relating to units issued / repurchased is transferred to / from income equalization reserve for determining the net surplus / deficit, transferred from / to unit premium reserve.
2.9 Load Charges
Load collected is retained under a separate account in the Scheme and is used to meet the selling and distribution expenses.
HSBC MUTUAL FUND-HSBC MIDCAP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
.
2.10 Deferred Revenue Expenditure
Initial issue expenses comprise those costs directly associated with the issue of units of the Scheme and include brokerage, advertising, business promotion, marketing, printing, distribution and other miscellaneous expenses. Initial issue expenses upto 2.25% were borne from the entry load collected from the investors during the initial offer period. Costs of 0.50% of the amount collected in the initial offer have been charged to the Scheme and are being amortized over a period of five years from the date of allotment of units. Expenses over and above the applicable entry load and amounts debited to the Scheme were borne by the asset management company.
3 Investment Management and Advisory Fees
The Scheme has paid or provided for investment management and advisory fees payable to HSBC
Asset Management (India) Private Limited for managing the Scheme at an average annual rate of
1.16 % of the average daily net asset value recorded by the Scheme. All costs, charges and expenses
incurred by HSBC Asset Management (India) Private Limited in the administration and execution of
the activities of the Scheme, except costs allowed to be charged to the Scheme under the Regulations,
are on their own account for which they receive investment management and advisory fees.
4 Trusteeship Fees
In accordance with the Deed of Trust dated February 7, 2002 between HSBC Securities and Capital
Markets (India) Private Limited (“The Settlor”) and the Board of Trustees of HSBC Mutual Fund, the
Fund has paid or provided for a fee not exceeding Rs.20,000 for each meeting of the Board of Trustees
attended by such Trustee not affiliated with the Settlor.
5 Custodian Fees
JP Morgan Chase Bank provides custodial services to the Scheme for which it receives custody fees including safekeeping.
6 Income Taxes
No provision for income tax is made as the Scheme qualifies as a recognized mutual fund under Section 10(23D) of the Income Tax Act, 1961.
7. Limitation on Expenses The total expenses excluding deferred revenue expenditure, chargeable to the Scheme are limited to 2.15% of the average daily net assets of the Scheme. HSBC Asset Management (India) Private Limited has borne Rs. 2,909,306 in respect of the Scheme in excess of the above mentioned percentage of the average daily net assets to be charged to the Scheme as total expenses for the year.
HSBC MUTUAL FUND-HSBC MIDCAP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
.
8 Aggregate Appreciation and Depreciation in Value of Investments
0Aggregate appreciation and depreciation in value of investments are as follows:
March 31, 2009 (Rupees) March 31, 2008 (Rupees)
Equity Shares
-Appreciation 33,463,640 231,329,430
-Depreciation 288,443,961 383,884,421
Equity Futures
-Appreciation 575,550 -
-Depreciation 1,246,651 82,638
9 Aggregate Value of Purchases and Sale of Investments
The aggregate value of investments purchased (excluding accretion of discount of Rs. 1,777,294) and
sold (including matured) during the year is Rs. 2,819,476,499 and Rs. 3,005,664,350 respectively being
185.61 % and 197.87 % of the average daily net assets.
10 Income and Expenses
The total income (net of net loss on sale of investments and derivatives and net change in unrealised
depreciation in the value of investments and derivatives) and expenditure (excluding deferred revenue
expenditure amortized) during the period is Rs. (1,023,717,106) and Rs. 32,711,381 respectively being
(67.39 %) and 2.15 % of the average daily net assets. 11 Equity Derivatives Disclosures:
Futures Details of open interest in equity futures as at March 31, 2009.
Underlying Asset's Name Number of contracts Units Outstanding Long
Jaiprakash Associates Limited
40 180,000
Hindustan Petroleum Corporation Limited
14 18,200
Reliance Industries Limited
30 9,000
IVRCL Infrastructure Projects Limited
55 110,000 Notional value of futures contracts bought by the Scheme and outstanding as on March 31, 2009 aggregates to Rs. 47,250,950 Net Profit on futures transactions recognized in the Revenue Account for the year ended March 31, 2009 aggregates to Rs. 10,094,300
HSBC MUTUAL FUND-HSBC MIDCAP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
.
12 Disclosure Under Regulation 25(8) of the Securities and Exchange Board of India (Mutual
Funds ) Regulation, 1996 as amended and in accordance with Accounting Standard 18 on ‘Related Party Disclosures’ issued by the Institute of Chartered Accountants of India (ICAI)
The Scheme has entered into transactions with certain related parties. The information required in this regard in accordance with Accounting Standard 18 on ‘Related Party Disclosures’ issued by the Institute of Chartered Accountants of India and regulation 25(8) of SEBI Regulation, is provided below :
13 Segment Reporting
The Scheme operates in one segment only viz. to primarily generate attractive returns from a diversified and actively managed portfolio of equity and equity related instruments.
14 Related Party Relationships
Name Description of relationship (i) HSBC Securities and Capital Markets (India) Private Limited Sponsor of the Fund
(ii) HSBC Asset Management (India) Private Limited Investment Manager to the Schemes of HSBC Mutual
Fund (iii) The Hong Kong and Shanghai Banking Corporation Limited Associate of the Investment Manager (iv) Schemes of the Fund, Under Common Control of the Sponsor
HSBC Advantage India Fund HSBC Cash Fund HSBC Dynamic Fund HSBC Emerging Market Fund HSBC Equity Fund HSBC Fixed Term Series 21 upto April 02, 2008 HSBC Fixed Term Series 22 upto April 22, 2008 HSBC Fixed Term Series 23 upto April 02, 2008 HSBC Fixed Term Series 24 upto December 15, 2008 HSBC Fixed Term Series 25 upto April 23, 2008 HSBC Fixed Term Series 27 upto April 02, 2008 HSBC Fixed Term Series 28 upto May 26, 2008 HSBC Fixed Term Series 30 HSBC Fixed Term Series 32 upto July 10, 2008 HSBC Fixed Term Series 33 upto September 08, 2008 HSBC Fixed Term Series 35 upto September 18, 2008 HSBC Fixed Term Series 36 upto October 07, 2008 HSBC Fixed Term Series 37 upto October 22, 2008 HSBC Fixed Term Series 41 HSBC Fixed Term Series 42 HSBC Fixed Term Series 44 HSBC Fixed Term Series 45 HSBC Fixed Term Series 46
HSBC MUTUAL FUND-HSBC MIDCAP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
.
HSBC Fixed Term Series 47 upto June 26, 2008 HSBC Fixed Term Series 48 with effect from March 28, 2008 upto October 07, 2008 HSBC Fixed Term Series 49 HSBC Fixed Term Series 50 with effect from April 17, 2008 HSBC Fixed Term Series 51 with effect from April 23, 2008 upto October 23, 2008 HSBC Fixed Term Series 52 with effect from April 24, 2008 HSBC Fixed Term Series 53 with effect from May 23, 2008 HSBC Fixed Term Series 54 with effect from May 27, 2008 HSBC Fixed Term Series 55 with effect from June 26, 2008 upto December 29, 2008 HSBC Fixed Term Series 56 with effect from July 25, 2008 HSBC Fixed Term Series 57 with effect from August 13, 2008 HSBC Fixed Term Series 58 with effect from July 22, 2008 upto November 05, 2008 HSBC Fixed Term Series 59 with effect from July 07, 2008 HSBC Fixed Term Series 60 with effect from July 10, 2008 upto October 13, 2008 HSBC Fixed Term Series 61 with effect from July 17, 2008 HSBC Fixed Term Series 62 with effect from August 22, 2008 HSBC Fixed Term Series 63 with effect from September 04, 2008 HSBC Fixed Term Series 66 with effect from September 18, 2008 HSBC Fixed Term Series 68 with effect from October 06, 2008 to January 14, 2009 HSBC Flexi Debt Fund HSBC Floating Rate Fund Long Term Plan HSBC Floating Rate Fund Short Term Plan HSBC Gilt Fund (Formerly, HSBC Gilt Fund – Short Term Plan) HSBC Income Fund Investment Plan HSBC Income Fund Short Term Plan HSBC India Opportunities Fund HSBC Interval Fund - Plan I upto November 20, 2008 HSBC Interval Fund - Plan II upto December 10, 2008 HSBC Interval Fund - Plan III upto December 17, 2008 HSBC Ultra Short Term Bond Fund (Formerly , HSBC Liquid Plus Fund) HSBC MIP Fund Regular Plan HSBC MIP Fund Savings Plan HSBC Small Cap Fund HSBC Tax Saver Equity Fund HSBC Unique Opportunities Fund
(v) Key Management Personnel and their relatives:
Nelum Pahlaj Gidwani – Associate Trustee Naina Lal Kidwai – Chairman of the Investment Manager Vikramaditya – Director and the Chief Executive Officer of the Investment Manager with effect from July 16, 2008 Dr. Rudolf Apenbrink – Associate Tustee Ayaz Ebrahim – Director with effect from April 11, 2008 Sanjay Prakash – Director and the Chief Executive Officer upto July 16, 2008 Avan Nelum Gidwani* – Relative of a Key Management Personnel Rashid K Kidwai – Relative of a Key Management Personnel Rumaan Kidwai* – Relative of a Key Management Personnel Kemaya Lal Kidwai*– Relative of a Key Management Personnel Amrita Vikramaaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Raaghav Aaditya* – Relative of a Key Management Personnel with effect from July 16, 2008
HSBC MUTUAL FUND-HSBC MIDCAP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
.
Rhea Aaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Gabriele A Apenbrink* – Relative of a Key Management Personnel Christian R Apenbrink* – Relative of a Key Management Personnel Katharina S Apenbrink* – Relative of a Key Management Personnel Yasmin Ebrahim* – Relative of a Key Management Personnel with effect from April 11, 2008 Daanyal Ebrahim* – Relative of a Key Management Personnel with effect from April 11, 2008 Nilufer Prakash*– Relative of a Key Management Personnel upto July 16, 2008 Tara Prakash*– Relative of a Key Management Personnel upto July 16, 2008 Anahita Prakash* – Relative of a Key Management Personnel upto July 16, 2008 * There were no transactions during the year.
II The following transactions occurred with the related parties during the year in the ordinary course of
business: Refer Annexure I III During the year, HSBC Securities and Capital Markets (India) Private Limited, the Sponsor was paid
brokerage aggregating Rs. 179,416 on purchase and sale of investments. The Hong Kong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid collection/bank charges amounting to Rs. 23,153 and brokerage amounting to Rs. 3,850,949 for procuring unit subscriptions for the Scheme and clearing member charges on derivative transactions Rs. 445,071. The brokerage paid was at rates similar to those offered to other brokers / distributors.
Further, The Hong Kong and Shanghai Banking Corporation Limited, an associate of the Sponsor, is on
the panel of bankers with whom HSBC Mutual Fund places money on fixed deposits and enters into
reverse repo transactions from time to time at competitive rates.
15 Disclosure under Regulation 25(11) of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 as amended
HSBC Mutual Fund has made investments in companies, which holds/ has held units in excess of 5% of the net asset value of any Scheme of HSBC Mutual Fund which have been listed in Annexure II.
The investments comprise equity shares, debentures/ bonds, commercial paper, fixed deposits and other debt instruments and were made solely on the basis of sound fundamentals of these companies.
16 Unclaimed Redemptions: As at March 31, 2009, unclaimed redemptions aggregate Rs 304,061 payable to 16 investors. 17 Unclaimed Dividends: As at March 31, 2009, unclaimed dividends aggregate Rs 594,629 payable to 371 investors.
HSBC MUTUAL FUND-HSBC MIDCAP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
.
18 Prior Year’s Figures Previous year’s figures have been re–grouped/re-arranged where appropriate. Signatures to the Schedules 1 to 9 forming part of the Balance Sheet and the Revenue Account
PARTHA GHOSH Partner Membership No. F-55913 For and on behalf of PRICE WATERHOUSE Chartered Accountants
For Board of Trustees of HSBC Mutual Fund
For HSBC Asset Management (India) Private Limited
Trustee
Vikramaaditya Director and Chief Executive Officer
Trustee
Director
Place: Mumbai Date :
Fund Manager(s)
Auditors' Report To the Board of Trustees of HSBC MUTUAL FUND 1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Advantage India Fund ("The Scheme")
as at March 31, 2009, the related Revenue Account for the year ended on that date annexed thereto and the Cash Flow Statement for the year ended on that date which we have signed under reference to this report. These financial statements are the responsibility of the Board of Trustees of HSBC Mutual Fund and the Management of HSBC Asset Management (India) 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. Our procedures included confirmation of securities owned and unit capital balances as at March 31, 2009 by correspondence with the custodian/others and registrar and transfer agent respectively. 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, the Revenue Account and the Cash Flow Statement 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;
(i) The Balance Sheet, the Revenue Account and the Cash Flow Statement 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 also give respectively, a true and fair view of the state of affairs of HSBC Mutual Fund – HSBC Advantage India Fund as at March 31, 2009, its net deficit and its cash flows for the year ended on that date.
(ii) The Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended on that
date, together with the notes thereon have been prepared in all material respects 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.
PARTHA GHOSH Partner Membership No. F/55913 For and on behalf of PRICE WATERHOUSE Chartered Accountants Place: Mumbai Date: July 06, 2009
March 31, 2009 March 31, 2008Schedule Rupees Rupees
ASSETS
Investments 1 2,850,401,943 6,209,251,506
Deposits 2 316,250,000 251,250,000
Other Current Assets 3 452,850,091 734,069,806
Deferred Revenue Expenditure 4 21,690,228 36,394,099
TOTAL 3,641,192,262 7,230,965,411
LIABILITIES
Unit Capital 5 4,657,279,748 5,122,909,084
Reserves and Surplus 6 (1,081,762,569) 2,000,170,598
Current Liabilities and Provisions 7 65,675,083 107,885,729
TOTAL -0.46 3,641,192,262 7,230,965,411
March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008 March 31, 2008RECONCILIATION OF NET ASSET VALUE PER UNIT Growth Option Dividend Option Total Growth Option Dividend Option Total
Rupees Rupees Rupees Rupees Rupees Rupees
Net Assets as per Balance Sheet (Total Assets less Current Liabilities and Provisions) (Note 2.6) 1,864,151,788 1,711,365,391 3,575,517,179 3,439,316,127 3,683,763,555 7,123,079,682
Number of Units in Issue 223,981,981.866 241,745,992.961 236,466,762.306 275,824,146.002
Net Asset Value per Unit 8.3228 7.0792 14.5446 13.3555
Notes to the Financial Statements. 9
This is the Balance Sheet referred to in our report of even date.
PARTHA GHOSH For HSBC Asset Management (India)
Partner HSBC Mutual Fund Private Limited
Membership No. F-55913For and on behalf of
PRICE WATERHOUSE
Chartered AccountantsVikramaaditya
Trustee
Trustee Director
Place: Mumbai
Date : 06 July 2009 Fund Manager(s)
Director and Chief Executive Officer
The Schedules referred to herein form an integral part of the Financial Statements.
HSBC MUTUAL FUND - HSBC ADVANTAGE INDIA FUND
Balance Sheet as at March 31, 2009
For Board of Trustees of
0
April 01, 2008 to April 01, 2007 toMarch 31, 2009 March 31, 2008
Schedule Rupees Rupees
INCOME AND GAINS
Dividends (Note 2.4) 48,328,468 33,071,828
Interest and Discount 8 45,363,048 42,109,059
Net Profit on Sale of Investments and Derivatives (Net of Net Loss on Inter-Scheme Sale of Investments Rs. 17,574 (Previous year: Rs. Nil)) (Note 2.3 and 2.5) - 3,209,433,291
TOTAL 93,691,516 3,284,614,178
EXPENSES AND LOSSES
Net Loss on Sale of Investments and Derivatives (Note 2.3 and 2.5) 2,138,200,692 -
Investment Management and Advisory Fees (Note 3) 48,441,544 93,693,886
Transfer Agent Fees and Expenses 9,974,671 14,109,206
Trusteeship Fees and Expenses (Note 4) 20,726 31,520
Custodian Fees and Expenses (Note 5) 2,906,142 4,517,372
Audit Fees 550,000 750,000
Selling and Distribution Expenses 38,425,315 56,436,483
Amortisation of Deferred Revenue Expenditure (Note 2.10) 14,703,871 50,219,732
Other Operating Expenses 10,679,234 24,237,507
TOTAL 2,263,902,195 243,995,706
Net Realised (Losses)/Gains for the Year (2,170,210,679) 3,040,618,472
Net Change in Unrealised Depreciation in Value of Investments and Derivatives (411,564,275) -
Net (Losses)/Gains for the Year (2,581,774,954) 3,040,618,472
Net Change in Unrealised Appreciation in Value of Investments and Derivatives (208,822,207) (530,049,712)
Net (Deficit)/Surplus including Net change in Unrealised Appreciation/Depreciation in Value of Investments anDerivatives (2,790,597,161) 2,510,568,760
Transferred to Unrealised Appreciation Reserve 208,822,207 530,049,712
Net (Deficit)/Surplus for the Year -0.61 (2,581,774,954) 3,040,618,472
April 01, 2008 to April 01, 2008 to April 01, 2008 to April 01, 2007 to April 01, 2007 to April 01, 2007 toMarch 31, 2009 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008 March 31, 2008Growth Option Dividend Option Total Growth Option Dividend Option Total
Rupees Rupees Rupees Rupees Rupees Rupees
Net (Deficit)/Surplus for the Year (1,305,177,994) (1,276,596,959) (2,581,774,954) 1,388,244,594 1,652,373,878 3,040,618,472
Transfer from Income Equalisation Reserve (Note 2.8) (42,345,223) 33,858,021 (8,487,202) (236,587,999) (157,897,397) (394,485,396)
Transfer from Reserve Fund - 1,724,653,808 1,724,653,808 - 1,030,550,815 1,030,550,815
Dividend / Distribution - (268,185,007) (268,185,007) - (499,264,851) (499,264,851)
Balance Transferred to Reserve Fund (1,347,523,217) 213,729,863 (1,133,793,355) 1,151,656,595 2,025,762,445 3,177,419,040
Notes to the Financial Statements. 9
This is the Revenue Account referred to in our report of even date.
PARTHA GHOSH For Board of Trustees of For HSBC Asset Management (India)
Partner HSBC Mutual Fund Private Limited
Membership No. F-55913For and on behalf of
PRICE WATERHOUSE
Chartered AccountantsVikramaaditya
Trustees
Trustee Director
Place: Mumbai Date : 06 July 2009
HSBC MUTUAL FUND - HSBC ADVANTAGE INDIA FUND
Revenue Account for the year ended March 31, 2009
The Schedules referred to herein form an integral part of the Financial Statements.
Fund Manager(s)
Director and Chief Executive Officer
1
Year ended March 31, 2009
Rupees
Year ended March 31, 2008
Rupees
A. Cashflow from Operating ActivitiesNet (Deficit) / Surplus for the Year (2,170,210,679) 3,040,618,472
Initial Issue Expenses Charged to Revenue Account 14,703,871 50,219,732
Adjustments for:- (Increase)/Decrease in Investments at cost 2,807,715,392 3,884,905,481
(Increase)/Decrease in Other Current Assets (1,978,398) 10,136,214
Increase/(Decrease) in Current Liabilities and Provisions (3,332,502) 70,518
Net cash generated from operations ( A ) 646,897,684 6,985,950,417
B Cashflow from Financing Activities Increase/(Decrease) in Unit capital (465,629,335) (4,742,550,105)
Increase/(Decrease) in Unit premium (23,150,999) (1,723,325,355)
Adjustments for:- Increase/(Decrease) in Redemption Payable for Units Redeemed by Investors (3,577,301) (73,151,294)
(Increase)/Decrease in Subscription Receivable for Units Issued to Investors 3,234,337 2,417,917
Dividend Paid during the Year (268,185,007) (499,264,851)
Net cash used in financing activities ( B ) (757,308,305) (7,035,873,688)
Net Increase/(Decrease) in Cash and Cash Equivalents (A+B) (110,410,621) (49,923,271)
Cash and Cash Equivalents at the beginning of the year 838,036,986 887,960,257
Cash and Cash Equivalents at the end of the year 727,626,365 838,036,986
Notes :March 31, 2009
Rupees March 31, 2008
Rupees
1 Cash and Cash Equivalents include the following :
Balances with Scheduled Banks :- In Current Account 2,364,863 6,505,962 - In Dividend Account 509,002 902,465
- In Deposit Account 300,000,000 250,000,000 Margin Deposit with the Clearing Corporation of India Towards Collateralized Borrowing and Lending Obligation 1,250,000 1,250,000 Margin Deposit with the Clearing Corporation of India Limited towards Reverse Repos and Governement Securities 15,000,000
Book Overdraft (661,334) (58,897)
Other Collaterised Lending- Reverse Repos 160,862,513 63,632,815
- Collateralised Borrowing and Lending Obligation 168,301,321 420,804,641
Derivative Margin Deposit 80,000,000 95,000,000
727,626,365 838,036,986
2 The above Cash Flow Statement has been prepared under the "Indirect Method" set out in Accounting Standard - 3 on Cash Flow Statements,issued by The Institute of Chartered Accountants of India.
This is the Cash Flow Statement referred to in our report of even date.
PARTHA GHOSH For HSBC Asset Management (India)
Partner HSBC Mutual Fund Private Limited
Membership No. F-55913For and on behalf of
PRICE WATERHOUSE
Chartered Accountants Vikramaaditya
Trustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai
Date : 06 July 2009 Fund Manager(s)
For Board of Trustees of
HSBC MUTUAL FUND - HSBC ADVANTAGE INDIA FUND
Cash Flow Statement for the year ended March 31, 2009
2
SCHEDULE 1 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008Investments Market/Fair Value Cost Market/Fair Value Cost(Notes 2.2, 2.3, 7, 8 and 12) Rupees Rupees Rupees Rupees
(Refer to the attached Statement of Portfolio Holding as at March 31, 2009)
Equity Shares 2,850,401,943 3,261,966,217 6,209,251,506 6,003,859,389
TOTAL 2,850,401,943 3,261,966,217 6,209,251,506 6,003,859,389
SCHEDULE 2 March 31, 2009 March 31, 2008
Deposits Rupees Rupees
Deposits with Scheduled Bank (Under Lien Towards Margin Deposit For Equity Derivatives Rs 160,000,000) 300,000,000 250,000,000
Margin Deposit with the Clearing Corporation of India Towards Collateralized Borrowing and Lending Obligation 1,250,000 1,250,000
Margin Deposit with the Clearing Corporation of India Limited towards Reverse Repos and Governement Securities 15,000,000 -
TOTAL 316,250,000 251,250,000
SCHEDULE 3 March 31, 2009 March 31, 2008Other Current Assets Rupees Rupees
Balances with Banks - in Current Account 2,364,863 6,505,962 - in Dividend Account 509,002 902,465
Sales Contracts Awaiting Completion - Equity Shares 33,215,990 64,325,069
Application Money Pending Allotment - Equity Shares - 64,402,950
Reverse Repos 160,862,513 63,632,815
Collateralised Borrowing and Lending Obligation 168,301,321 420,804,641
Unit Subscription Receivable 1,626,606 3,233,006
Inter-Scheme Receivable- For 'Switch-in' - 1,627,937 - For 'Others' - 208,500
Derivative Margin Deposit (Note 2.5) 80,000,000 95,000,000
Receivables on Outstanding Future Contracts - 9,643,561
Interest Receivable on:
- Deposits 4,520,493 2,735,836
- Reverse Repos 20,701 14,010
- Collateralised Borrowing and Lending Obligation 20,619 97,995
- Margin Deposit with The Clearing Corporation of India Limited 87,565 -
Receivable from Investment Manager 5,354 7,392
Investment Towards Unclaimed Redemption [(in 64,121.597 Units (Previous year: 69,964.208 units) (Market Value Rs. 934,534 (Previous year: Rs. Rs. 950,863)) of HSBC Cash Fund - Growth Option) (Note 13)] 866,579 927,667
Investment Towards Unclaimed Dividend [(in 32,737.831 Units (Previous year: Nil units) (Market Value Rs. 477,134 (Previous year: Rs. Nil)) of HSBC Cash Fund - Growth Option) (Note 14)] 448,485 -
TOTAL 452,850,091 734,069,806
SCHEDULE 4 March 31, 2009 March 31, 2008Deferred Revenue Expenditure (Note 2.10) Rupees Rupees
Issue and Organisational Costs
At the beginning of the year 36,394,099 86,613,831
Incurred During the year - -
Less : Amortised during the year : - - NFO Units Reedemed 2,027,047 32,215,148 - Others 12,676,824 18,004,584
At the end of the year 21,690,228 36,394,099
HSBC MUTUAL FUND - HSBC ADVANTAGE INDIA FUND
Schedules forming part of the Balance Sheet as at March 31, 2009
and the Revenue Account for the year ended March 31, 2009
3
SCHEDULE 5 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008Unit Capital Rupees Units Rupees Units Growth OptionIssued and Subscribed :Units of Rs. 10 each fully paid up 5,972,885,774 597,288,577.365 5,972,885,774 597,288,577.365
Outstanding:At the beginning of the year 2,364,667,624 236,466,762.306 4,048,291,189 404,829,118.856 Issued during the year 259,538,337 25,953,833.730 679,540,066 67,954,006.572
2,624,205,961 262,420,596.036 4,727,831,255 472,783,125.428 Redeemed during the year 384,386,142 38,438,614.170 2,363,163,631 236,316,363.122 At the end of the year 2,239,819,819 223,981,981.866 2,364,667,624 236,466,762.306
Dividend OptionIssued and Subscribed :Units of Rs. 10 each fully paid up 10,197,445,867 1,019,744,586.733 10,197,445,867 1,019,744,586.733
Outstanding:At the beginning of the year 2,758,241,460 275,824,146.002 5,817,167,999 581,716,799.865 Issued during the year 196,564,120 19,656,412.037 535,440,399 53,544,039.938
2,954,805,580 295,480,558.039 6,352,608,398 635,260,839.803 Redeemed during the year 537,345,651 53,734,565.078 3,594,366,938 359,436,693.801 At the end of the year 2,417,459,929 241,745,992.961 2,758,241,460 275,824,146.002
TOTAL 4,657,279,748 465,727,974.827 5,122,909,084 512,290,908.308
HSBC MUTUAL FUND - HSBC ADVANTAGE INDIA FUNDSchedules forming part of the Balance Sheet as at March 31, 2009
and the Revenue Account for the year ended March 31, 2009
4
SCHEDULE 6 March 31, 2009 March 31, 2008Reserves and Surplus Total Total
Rupees Rupees
Unit Premium Reserve (Note 2.7 )
At the beginning of the year (2,164,233,326) (835,393,368)
Added during the year (14,663,797) (1,328,839,958)
At the end of the year (2,178,897,123) (2,164,233,326)
Income Equalisation Reserve (Note 2.8)
Added during the year (8,487,202) (394,485,396)
Transferred to Revenue Account 8,487,202 394,485,396
At the end of the year - -
Unrealised Appreciation Reserve
At the beginning of the year 209,428,636 -
Balance Transferred from Reserve Fund - 739,478,348
Net Change in Unrealised Appreciation in Value of Investments and Derivatives Transferred from Revenue Account (208,822,207) (530,049,712)
At the end of the year 606,429 209,428,636
Reserve Fund
At the beginning of the year 3,954,975,288 2,547,585,411
Transferred to Unrealised Appreciation Reserve - (739,478,348)
Balance Transferred to Revenue Account (1,724,653,808) (1,030,550,815)
Balance Transferred from Revenue Account (1,133,793,355) 3,177,419,040
At the end of the year 1,096,528,125 3,954,975,288
TOTAL (1,081,762,569) * 2,000,170,598 *
* The share of the Options of the Reserves and Surplus is as follows : March 31, 2009 March 31, 2008Rupees Rupees
Growth Option : Rs. (375,668,031) 1,074,648,503 Dividend Option : Rs. (706,094,538) 925,522,095 Total : Rs. (1,081,762,569) 2,000,170,598
HSBC MUTUAL FUND - HSBC ADVANTAGE INDIA FUND
Schedules forming part of the Balance Sheet as at March 31, 2009
and the Revenue Account for the year ended March 31, 2009
5
SCHEDULE 7 March 31, 2009 March 31, 2008Current Liabilities and Provisions Rupees Rupees
Current Liabilities
Investment Management and Advisory Fees 2,987,644 5,802,421
Transfer Agent Fees and Expenses 467,504 983,133
Custodian Fees and Expenses 155,645 448,775
Audit Fees 550,000 750,000
Selling and Distribution Expenses 3,261,901 5,743,522
Payable on Outstanding Future Contracts 1,160,450 -
Purchase Contracts Awaiting Completion -Equity Shares 39,311,131 76,374,861
Unit Redemption Payable 2,349,659 8,619,591
Inter Scheme Payable - For 'Switch-Out' 3,824,365 1,131,733 - For 'Others' 21,786 38,000
Load Charges 6,749,459 1,534,003
Unclaimed Redemption (Note 13) 1,018,188 1,187,446
Unclaimed Dividend (Note 14) 900,152 901,765
Temporary Book Overdraft 661,334 58,897
Deferred Revenue Expenditure Payable 67,101 67,101
Sundry Payables 2,188,764 4,244,481
TOTAL 65,675,083 107,885,729
SCHEDULE 8 April 01, 2008 to April 01, 2007 toInterest and Discount (Note 2.4) March 31, 2009 March 31, 2008
Rupees Rupees
Debentures / Bonds 139,068 -
Commercial Paper / Certificate of Deposit 667,794 149,299
Reverse Repos 11,175,368 22,102,585
Collateralised Borrowing and Lending Obligation 7,030,239 2,027,036
Deposits 26,257,562 17,823,329 Margin Deposit with the Clearing Corporation of India Limited 93,001 (96)
Others 16 6,906
TOTAL 45,363,048 42,109,059
HSBC MUTUAL FUND - HSBC ADVANTAGE INDIA FUNDSchedules forming part of the Balance Sheet as at March 31, 2009
and the Revenue Account for the year ended March 31, 2009
6
Annexure 1
(i) Transactions during the Year
Nature of Transaction Sponsor Investment ManagerAssociate of
Investment ManagerSchemes under Common
Control of Sponsor
Key Management Personnel and their
Relatives Total
Purchase of Investments - - - 337,765,190 - 337,765,190Previous Year - - - - - -
Sale of Investments - - - 319,042,192 - 319,042,192Previous Year - - - 137,392,220 - 137,392,220
Subscription of Units (including switch in and dividend reinvestmen - - - - - - Previous Year - - - - 39,120 39,120
Dividend Distribution( Including dividend reinvested - - - - 42,601 42,601Previous Year - - - - 39,120 39,120
Sale of Mutual Fund Units - - - - - - Previous Year - - - 1,002,078,759 - 1,002,078,759
Investment Management and Advisory Fees - 48,441,544 - - - 48,441,544 Previous Year - 93,693,886 - - - 93,693,886
Brokerage/ Commission on Distribution of Units - - 7,349,775 - - 7,349,775Previous Year - - 22,388,210 - - 22,388,210
Brokerage/ Commission on Purchase/Sale of Investment 776,506 - 13,368 - - 789,874Previous Year 1,682,000 - - - - 1,682,000
Clearing Charges - - 1,220,316 - - 1,220,316Previous Year - - 1,289,244 - - 1,289,244
Fixed Deposits Matured - - - - - - Previous Year - - 280,000,000 - - 280,000,000
Charges for Services Provided by Bank - - 2,493 - - 2,493Previous Year - - 110,292 - - 110,292
(ii) Outstanding As At Year End
Nature of Transaction Sponsor Investment ManagerAssociate of
Investment ManagerSchemes under Common
Control of Sponsor
Key Management Personnel and their
Relatives Total
Investment Management and Advisory Fees Payabl - 2,987,644 - - - 2,987,644Previous Year - 5,802,421 - - - 5,802,421
Brokerage/ Commission Payable for Distribution of Units - - 416,565 - - 416,565Previous Year - - 1,018,548 - - 1,018,548
Units Outstanding As At Year End - - - - 650,879 650,879Previous Year - - - - 3,002,917 3,002,917
Other Payables - - - 21,786 - 21,786Previous Year - - - 38,000 - 38,000
Other Receivables - 5,354 - - - 5,354Previous Year - 7,392 - 208,500 - 215,892
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control ofthe Sponsor.
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Purchase of InvestmentsHSBC Flexi Debt Fund 203,438,659 - HSBC Equity Fund 56,586,475 -
Sale of InvestmentsHSBC Floating Rate Fund Long Term Plan 120,491,100 - HSBC Fixed Term Series 68 62,251,241 - HSBC Equity Fund 49,611,472 - HSBC Fixed Term Series 66 38,800,005 - HSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) - 137,392,220
Redemption of Units (including switch outHSBC Cash Fund - 1,002,078,759
Other PayablesHSBC Equity Fund - 14,000HSBC Midcap Fund - 24,000HSBC Cash Fund 21,786 -
Other ReceivablesHSBC Equity Fund - 170,000HSBC Midcap Fund - 38,500
(iv) Disclosures in respect of material transactions with persons referred to in Note 13 (I)(v) for key management personneland their relatives
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Subscription of Units (including switch in and dividend reinvestmen - Nelum P Gidwani - 39,120
Dividend Distribution( Including dividend reinvested - Nelum P Gidwani 42,601 39,120
Units Outstanding As At Year EndNelum P Gidwani 325,293 568,951Sanjay Prakash - 1,864,984Avan Nelum Gidwani 325,585 568,982
7
96,187,500 Finance (2.33 %)
Housing Development Finance Corporation Limited 47,000 66,373,400 66,373,400
Hotels (0.59 %)EIH Limited 193,430 16,731,695
16,731,695 Industrial Capital Goods (9.38 %)
Bharat Heavy Electricals Limited 153,000 231,114,150 Suzlon Energy Limited 855,000 36,209,250
267,323,400 Industrial Products (2.16 %)
Jain Irrigation Systems Limited 180,000 61,524,000 61,524,000
Media & Entertainment (0.99 %)IBN18 Broadcast Limited 383,235 28,129,449
28,129,449 Oil (6.78 %)
Oil and Natural Gas Corporation Limited 140,000 109,228,000 Cairn India Limited @ 456,368 84,017,349
193,245,349 Petroleum Products (14.01 %)
Reliance Industries Limited @ 160,500 244,722,375 Indian Oil Corporation Limited 225,000 87,255,000 Hindustan Petroleum Corporation Limited 250,000 67,312,500
399,289,875 Pharmaceuticals (3.85 %)
Cipla Limited 498,136 109,614,827 109,614,827
Power (6.67 %)Power Grid Corporation of India Limited 765,000 73,134,000 Reliance Infrastructure Limited 135,000 69,599,250 CESC Limited 225,000 47,475,000
190,208,250 Software (4.60 %)
Infosys Technologies Limited 99,000 131,066,100 131,066,100
Telecom - Services (7.46 %)Bharti Airtel Limited @ 247,000 154,560,250 IDEA Cellular Limited @ 1,158,243 58,027,974
212,588,224 Total (Cost Rs. 3,261,966,217) 2,850,401,943 TQTAL INVESTMENTS (Cost Rs. 3,261,966,217) 2,850,401,943
Equity DerivativesShort Futures (100 %)
Bharat Heavy Electricals Limited - Futures - April 2009 (55.81 %) 18,061,200 Bharti Airtel Limited - Futures - April 2009 (44.19 %) 14,301,400
Total 32,362,600
Deposits (8.39 %)^ Tenure Face Value6.3 % Standard Chartered Bank 91 140,000,000 10.1% Axis Bank 182 80,000,000 7% Axis Bank 181 80,000,000 Total Deposits 300,000,000
^ Denotes Percentage to Net Asset Value.
Confirmation has been received from JP Morgan Chase Bank, Mumbai Branch at the end of the financial year for the investmentsheld by them.
@ Investment in companies which have invested more than five percent of the net asset value of any schemes of HSBC MutualFund.
HSBC MUTUAL FUND-HSBC ADVANTAGE INDIA FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
SCHEDULE 9
0Notes to the Financial Statements
1 Organisation
HSBC Advantage India Fund (the “Scheme”) is an open-ended growth scheme of HSBC Mutual Fund (the “Fund”) and was launched on December 30, 2005. HSBC Mutual Fund has been sponsored by HSBC Securities and Capital Markets (India) Private Limited. HSBC Asset Management (India) Private Limited incorporated under the Companies Act, 1956 has been appointed as the asset management company. The duration of the Scheme is perpetual. The Scheme closed for initial subscription on January 27, 2006, and reopened for issue and redemption of units on February 24, 2006. The investment objective of the Scheme is to generate long term capital growth from an actively managed portfolio of equity and equity related securities by investing primarily in sectors, areas and themes that play an important role in, and/or benefit from, India’s progress, reform process and economic development. The Scheme will attempt to take a medium term view when investing in such opportunities and will endeavour to run a more concentrated portfolio on a limited number of such opportunities. The Scheme has two Options - Growth Option and Dividend Option. The Scheme will not declare dividend under the Growth Option in normal circumstances. The income earned on such units will remain invested within the Scheme and will be reflected in the net asset value.
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 “Regulations”) and amendments thereto, as applicable.
2.2 Portfolio Valuation
Investments are stated at market / fair value at the Balance Sheet date/date of determination. In valuing the Scheme’s investments:
i. Equity securities listed on a recognized stock exchange are valued at the last quoted closing
price on the National Stock Exchange of India Limited (NSE). If on a particular valuation date, a security is not traded on NSE, the value at which it is traded on Bombay Stock Exchange Limited (BSE) is used. If no sale is reported at that time, the last quoted closing price on the principal stock exchange on which the security is traded is used when it is not more than thirty days prior to the valuation date.
ii. Non-traded and thinly traded equity securities, including those not traded within thirty days prior to the valuation date are valued at fair value as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India (SEBI).
HSBC MUTUAL FUND-HSBC ADVANTAGE INDIA FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
iii. Debt securities listed on a recognised stock exchange are valued at the last quoted closing price
on the National Stock Exchange of India Limited (NSE). If no sale is reported at that time, such securities are valued at fair value as determined in good faith by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund.
iv. Non-traded and thinly traded debt securities are valued at fair value as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India (SEBI).
v. Privately placed debt securities are valued at fair value as determined in good faith by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund.
vi. Equity shares awaiting listing are valued at fair value as determined in good faith by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund.
vii. Traded money market securities are valued at the yield at which they are traded on the valuation date. If no sale is reported at that time, such security is valued at the last traded price plus accretion of the difference between the face value and the last traded price. Non traded money market instruments are valued at cost plus accrued interest.
viii. Units in mutual fund are valued at the net asset value of the investee scheme. ix. Instruments bought on ‘repo’ basis are valued at the resale price after deduction of applicable
interest up to the date of resale.
Following the issue of guidance note on accounting for investments in the financial statements of the mutual funds by the Institute of Chartered Accountants of India (pursuant to the Eleventh Schedule of the Regulations) net unrealised appreciation / depreciation in the value of investments and derivatives is determined separately for each category of investments and derivatives. In respect of each category of investments and derivatives, the net change in the unrealised appreciation if any, between two balance sheet dates / valuation dates is accounted through the Revenue Account and thereafter the net unrealised appreciation is transferred from the Revenue Account to the Unrealised Appreciation Reserve. The net depreciation if any, is accounted through the Revenue Account. Net unrealised appreciation is reduced from the distributable income at the time of income distribution. The loss on investments sold/transferred during the year/period is charged to the Revenue Account instead of being first adjusted against the provision for depreciation, if already created in the previous year/period as recommended in the Guidance Note. However the departure from the Guidance Note does not have any net impact on the net asset value of the options of the Scheme
2.3 Securities Transaction
Investment securities transactions are accounted for on a trade date basis. The Scheme uses the average cost method for determining the realized gain or loss on sale of investments.
HSBC MUTUAL FUND-HSBC ADVANTAGE INDIA FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
2.4 Investment Income
Dividend and interest income are recorded on an accrual basis.
2.5 Derivatives The Scheme enters into derivative transactions in equity/ index futures for the purpose of hedging and
portfolio balancing.
“Derivative margin deposit” representing the margin towards equity derivative contracts entered into by the Scheme is disclosed under “Other Current Assets”.
Futures
• Futures contracts are marked to market daily at the futures settlement price as determined by the exchange. The variation margin calculated as the difference between the trade price or the previous day’s settlement price, as the case may be, and the current day’s settlement price is recorded as a receivable or payable. • When a contract is closed (squared off)/ settled (on expiry), the difference between the final settlement / square-off price and the contract price is recognised in the revenue account. If more than one futures contracts in respect of the same stock / index and expiry date, to which the squared off / settled contract pertains, is outstanding at the time of square off / settlement of the contract, the average method is followed for determining the gain or loss. • As at the Balance Sheet date / date of determination, all open futures positions are valued at the futures settlement price as determined by the exchange where it is traded. Non-traded futures contracts are valued at fair value as per procedures determined by HSBC Asset Management (India) Private Limited and approved by the Board of Trustees. The unrealised appreciation / depreciation on all open positions is considered for determining the net asset value.
2.6 Net Asset Value for Growth/Dividend Options
The net asset value of the units of the Scheme is determined separately for the units issued under the Growth and Dividend Options. For reporting the net asset value for the 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 units outstanding.
2.7 Unit Premium Reserve Upon issue and redemption of units, the net premium or discount to the face value of units is adjusted
against the unit premium reserve of the Scheme, after an appropriate portion of the issue proceeds and redemption payout is credited or debited respectively to the income equalization reserve.
The unit premium reserve is available for dividend distribution except to the extent it is represented by
unrealized net appreciation in value of investments.
HSBC MUTUAL FUND-HSBC ADVANTAGE INDIA FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
2.8 Income Equalization Reserve
The net distributable income relating to units issued / repurchased is transferred to / from income equalization reserve for determining the net surplus / deficit, transferred from / to unit premium reserve.
2.9 Load Charges Load collected is retained under a separate account in the Scheme and is used to meet the selling and distribution expenses.
2.10 Deferred Revenue Expenditure
Initial issue expenses comprise those costs directly associated with the issue of units of the scheme and include advertising, brokerage, business promotion, marketing, printing, distribution and other miscellaneous expenses. Initial issue expenses upto 2.25 % were borne from the entry load collected from the investors during the initial offer period. Costs of 1.25 % of the amount collected in the initial offer have been charged to the Scheme and are being amortized over a period of five years from the date of allotment of units. Expenses over and above the applicable entry load and amounts debited to the Scheme were borne by the asset management company.
3 Investment Management and Advisory Fees
The Scheme has paid or provided for investment management and advisory fees payable to HSBC
Asset Management (India) Private Limited for managing the Scheme at an average annual rate of 0.97
% of the average daily net asset value recorded by the Scheme. All costs, charges and expenses
incurred by HSBC Asset Management (India) Private Limited in the administration and execution of
the activities of the Scheme, except costs allowed to be charged to the Scheme under the Regulations,
are on their own account for which they receive investment management and advisory fees.
4 Trusteeship Fees
In accordance with the Deed of Trust dated February 7, 2002 between HSBC Securities and Capital
Markets (India) Private Limited (“The Settlor”) and the Board of Trustees of HSBC Mutual Fund, the
Fund has paid or provided for a fee not exceeding Rs.20,000 for each meeting of the Board of Trustees
attended by such Trustee not affiliated with the Settlor
5 Custodian Fees
J P Morgan Chase Bank provides custodial services to the Scheme for which it receives custody fees including safekeeping.
6 Income Taxes
No provision for income tax is made as the Scheme qualifies as a recognized mutual fund under Section 10(23D) of the Income Tax Act, 1961.
HSBC MUTUAL FUND-HSBC ADVANTAGE INDIA FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
7 Aggregate Appreciation and Depreciation in Value of Investments
March 31, 2009
(Rupees) March 31, 2008
(Rupees)
Equity Shares
-Appreciation 78,574,286 921,690,431
-Depreciation 490,138,560 716,298,314
Equity Futures
-Appreciation 610,412 5,784,568
-Depreciation 3,982 1,748,049
8 Aggregate Value of Purchase and Sale of Investments
The aggregate value of investments securities purchased and sold (including matured) during the year
(excluding accretion of discount of Rs. 667,794) is 7,016,898,573 and 7,575,919,895 respectively
being 140.42% and 151.61% of the average daily net assets.
9 Income and Expenses
The total income (net of net loss on sale of investments and net change in unrealized depreciation in the
value of investments) and expenditure (excluding deferred revenue expenditure amortized) during the
year is Rs. (2,456,073,451) and Rs. 110,997,632 respectively being (49.15) % and 2.22 % of the
average daily net assets. 10 Equity Derivatives Disclosures:
Futures Details of open interest in equity futures as at March 31, 2009.
Underlying Asset's Name Number of contracts
Units Outstanding Long/(Short)
Bharat Heavy Electricals Limited 40 (12,000) Bharti Airtel Limited Futures 46 (23,000) Notional value of futures contracts bought/ (sold) by the Scheme and outstanding as on March 31, 2009 aggregates to Rs. (32,362,600).
Net Profit/ (Loss) on futures transactions recognized in the Revenue Account for the year ended March
31, 2009 aggregates to Rs. (45,338,953).
HSBC MUTUAL FUND-HSBC ADVANTAGE INDIA FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
11 Disclosure Under Regulation 25(8) of the Securities and Exchange Board of India (Mutual
Funds) Regulation, 1996 as amended and in accordance with Accounting Standard 18 on
‘Related Party Disclosures’ issued by the Institute of Chartered Accountants of India (ICAI)
The Scheme has entered into transactions with certain related parties. The information required in this regard in accordance with Accounting Standard 18 on ‘Related Party Disclosures’ issued by the Institute of Chartered Accountants of India and regulation 25(8) of SEBI Regulation, is provided below :
I Related party relationships
Name Description of relationship (i) HSBC Securities and Capital Markets (India) Private Limited Sponsor of the Fund
(ii) HSBC Asset Management (India) Private Limited Investment Manager to the Schemes of HSBC Mutual Fund
(iii) The Hong Kong and Shanghai Banking Corporation Limited Associate of the Investment Manager (iv) Schemes of the Fund, Under Common Control of the Sponsor
HSBC Cash Fund HSBC Dynamic Fund HSBC Emerging Market Fund HSBC Equity Fund HSBC Fixed Term Series 21 upto April 02, 2008 HSBC Fixed Term Series 22 upto April 22, 2008 HSBC Fixed Term Series 23 upto April 02, 2008 HSBC Fixed Term Series 24 upto December 15, 2008 HSBC Fixed Term Series 25 upto April 23, 2008 HSBC Fixed Term Series 27 upto April 02, 2008 HSBC Fixed Term Series 28 upto May 26, 2008 HSBC Fixed Term Series 30 HSBC Fixed Term Series 32 upto July 10, 2008 HSBC Fixed Term Series 33 upto September 08, 2008 HSBC Fixed Term Series 35 upto September 18, 2008 HSBC Fixed Term Series 36 upto October 07, 2008 HSBC Fixed Term Series 37 upto October 22, 2008 HSBC Fixed Term Series 41 HSBC Fixed Term Series 42 HSBC Fixed Term Series 44 HSBC Fixed Term Series 45 HSBC Fixed Term Series 46 HSBC Fixed Term Series 47 upto June 26, 2008 HSBC Fixed Term Series 48 with effect from March 28, 2008 upto October 07, 2008 HSBC Fixed Term Series 49 HSBC Fixed Term Series 50 with effect from April 17, 2008 HSBC Fixed Term Series 51 with effect from April 23, 2008 upto October 23, 2008 HSBC Fixed Term Series 52 with effect from April 24, 2008 HSBC Fixed Term Series 53 with effect from May 23, 2008 HSBC Fixed Term Series 54 with effect from May 27, 2008 HSBC Fixed Term Series 55 with effect from June 26, 2008 upto December 29, 2008
HSBC MUTUAL FUND-HSBC ADVANTAGE INDIA FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
HSBC Fixed Term Series 56 with effect from July 25, 2008 HSBC Fixed Term Series 57 with effect from August 13, 2008 HSBC Fixed Term Series 58 with effect from July 22, 2008 upto November 05, 2008 HSBC Fixed Term Series 59 with effect from July 07, 2008 HSBC Fixed Term Series 60 with effect from July 10, 2008 upto October 13, 2008 HSBC Fixed Term Series 61 with effect from July 17, 2008 HSBC Fixed Term Series 62 with effect from August 22, 2008 HSBC Fixed Term Series 63 with effect from September 04, 2008 HSBC Fixed Term Series 66 with effect from September 18, 2008 HSBC Fixed Term Series 68 with effect from October 06, 2008 to January 14, 2009 HSBC Flexi Debt Fund HSBC Floating Rate Fund Long Term Plan HSBC Floating Rate Fund Short Term Plan HSBC Gilt Fund (Formerly, HSBC Gilt Fund – Short Term Plan) HSBC Income Fund Investment Plan HSBC Income Fund Short Term Plan HSBC India Opportunities Fund HSBC Interval Fund - Plan I upto November 20, 2008 HSBC Interval Fund - Plan II upto December 10, 2008 HSBC Interval Fund - Plan III upto December 17, 2008 HSBC Ultra Short Term Bond Fund (Formerly , HSBC Liquid Plus Fund) HSBC Midcap Fund HSBC MIP Fund Regular Plan HSBC MIP Fund Savings Plan HSBC Small Cap Fund HSBC Tax Saver Equity Fund HSBC Unique Opportunities Fund
(v) Key Management Personnel and their relatives:
Nelum Pahlaj Gidwani – Associate Trustee Naina Lal Kidwai – Chairman of the Investment Manager Vikramaditya – Director and the Chief Executive Officer of the Investment Manager with effect from July 16, 2008 Dr. Rudolf Apenbrink – Associate Tustee Ayaz Ebrahim – Director with effect from April 11, 2008 Sanjay Prakash – Director and the Chief Executive Officer upto July 16, 2008 Avan Nelum Gidwani* – Relative of a Key Management Personnel Rashid K Kidwai* – Relative of a Key Management Personnel Rumaan Kidwai* – Relative of a Key Management Personnel Kemaya Lal Kidwai* – Relative of a Key Management Personnel Amrita Vikramaaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Raaghav Aaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Rhea Aaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Gabriele A Apenbrink* – Relative of a Key Management Personnel Christian R Apenbrink* – Relative of a Key Management Personnel Katharina S Apenbrink* – Relative of a Key Management Personnel Yasmin Ebrahim* – Relative of a Key Management Personnel with effect from April 11, 2008 Daanyal Ebrahim* – Relative of a Key Management Personnel with effect from April 11, 2008 Nilufer Prakash* – Relative of a Key Management Personnel upto July 16, 2008 Tara Prakash* – Relative of a Key Management Personnel upto July 16, 2008 Anahita Prakash* – Relative of a Key Management Personnel upto July 16, 2008
HSBC MUTUAL FUND-HSBC ADVANTAGE INDIA FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
* There were no transactions during the year.
II The following transactions occurred with the related parties during the year in the ordinary course of
business: Refer Annexure I
III During the year, HSBC Securities and Capital Markets (India) Private Limited, the Sponsor was paid
brokerage aggregating Rs. 776,506 on purchase and sale of investments. The Hongkong and Shanghai
Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited
was paid collection/bank charges amounting to Rs. 1,220,316 and brokerage amounting to Rs. 7,349,775 for procuring unit subscriptions for the Scheme and clearing member charges on derivative
transactions Rs 2,493. The brokerage paid was at rates similar to those offered to other brokers /
distributors.
Further, The Hong Kong and Shanghai Banking Corporation Limited, an associate of the Sponsor, is on
the panel of bankers with whom HSBC Mutual Fund places money on fixed deposits and enters into
reverse repo transactions from time to time at competitive rates.
12 Disclosure under Regulation 25(11) of the Securities and Exchange Board of India (Mutual
Funds) Regulations, 1996 as amended
HSBC Mutual Fund has made investments in companies, which hold/ have held units in excess of 5% of the net asset value of any Scheme of HSBC Mutual Fund which have been listed in Annexure II.
The investments comprise equity shares, debentures/ bonds, commercial paper, fixed deposits and other debt instruments and were made solely on the basis of sound fundamentals of these companies
13 Unclaimed Redemption
As at March 31, 2009, unclaimed redemptions aggregate Rs. 10,18,188 payable to 66 Investors.
14 Unclaimed Dividend
As at March 31, 2009, unclaimed dividends aggregate Rs. 900,152 payable to 380 investors.
15 Segment Reporting
The Scheme operates in one segment only viz. to primarily generate attractive returns from a diversified and actively managed portfolio of equity and equity related instruments.
HSBC MUTUAL FUND-HSBC ADVANTAGE INDIA FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
16 Prior Year’s Figures
Previous year’s figures have been re-grouped / re-arranged where appropriate. Signatures to the Schedules 1 to 9 forming part of the Balance Sheet and the Revenue Account
PARTHA GHOSH Partner Membership No. F-55913 For and on behalf of PRICE WATERHOUSE Chartered Accountants
For Board of Trustees of HSBC Mutual Fund
For HSBC Asset Management (India) Private Limited
Trustee
Vikramaaditya Director and Chief Executive Officer
Trustee
Director
Place: Mumbai Date :
Fund Manager(s)
Auditors' Report To the Board of Trustees of HSBC MUTUAL FUND 1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Tax Saver Fund ("The Scheme") as
at March 31, 2009, and the related Revenue Account for the year ended on that date both of which we have signed under reference to this report. These financial statements are the responsibility of the Board of Trustees of HSBC Mutual Fund and the Management of HSBC Asset Management (India) 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. Our procedures included confirmation of securities owned and unit capital balances as at March 31, 2009 by correspondence with the custodian/others and registrar and transfer agents respectively. 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,
(i) The Balance Sheet, 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 also give respectively, a true and fair view of the state of affairs of HSBC Mutual Fund – HSBC Tax Saver Fund as at March 31, 2009 and its net deficit for the year on that date.
(ii) The Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended on that
date, together with the notes thereon have been prepared in all material respects 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.
PARTHA GHOSH Partner Membership No. F / 55913 For and on behalf of PRICE WATERHOUSE Chartered Accountants Place: Mumbai Date: July 06, 2009
March 31, 2009 March 31, 2008Schedule Rupees Rupees
ASSETS
Investments 1 1,438,561,575 1,911,247,096
Deposits 2 60,000,000 -
Other Current Assets 3 355,828,854 489,893,755
TOTAL 1,854,390,429 2,401,140,851
LIABILITIES
Unit Capital 4 2,450,513,535 2,167,618,534
Reserves and Surplus 5 (644,659,099) 117,635,287
Current Liabilities and Provisions 6 48,535,993 115,887,030
TOTAL -0.26 1,854,390,429 2,401,140,851
0.26
March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008 March 31, 2008RECONCILIATION OF NET ASSET VALUE PER UNIT Growth Option Dividend Option Total Growth Option Dividend Option Total
Rupees Rupees Rupees Rupees Rupees Rupees
Net Assets as per Balance Sheet (Total Assets less Current Liabilities and Provisions ) (Note 2.6) 1,110,158,857 695,695,579 1,805,854,436 1,399,839,449 885,414,372 2,285,253,821
Number of Units in Issue 150,646,655.461 94,404,698.350 132,777,868.108 83,983,985.503
Net Asset Value per Unit 7.3693 7.3693 10.5427 10.5427
Notes to the Financial Statements. 8
This is the Balance Sheet referred to in our report of even date.
PARTHA GHOSH For Board of Trustees of For HSBC Asset Management (India)Partner HSBC Mutual Fund Private LimitedMembership No. F-55913
For and on behalf of PRICE WATERHOUSE Chartered Accountants Vikramaaditya
Trustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai Fund Manager(s)Date : 06 July 2009
The schedules referred to herein form an integral part of the Financial Statements.
HSBC MUTUAL FUND - HSBC TAX SAVER EQUITY FUND
Balance Sheet as at March 31, 2009
0
April 1, 2008 April 1, 2007March 31, 2009 March 31, 2008
Schedule Rupees Rupees
INCOME AND GAINS
Dividends (Note 2.4) 22,219,056 9,249,021
Interest and Discount 7 24,935,266 13,926,798
Net Profit on Sale of Investments and Derivatives(Notes 2.3 and 2.5) - 137,481,957
TOTAL 47,154,322 160,657,776
EXPENSES AND LOSSES
Net Loss on Sale of Investments (Notes 2.3 and 2.5) 592,292,072 -
Investment Management and Advisory Fees (Note 3) 17,813,145 23,865,426
Transfer Agent Fees and Expenses 3,881,139 5,445,716
Trusteeship Fees and Expenses (Note 4) 8,127 5,452
Custodian Fees and Expenses (Note 5) 658,308 921,926
Audit Fees 75,000 75,000
Selling and Distribution Expenses 20,351,405 19,366,043
Other Operating Expenses 3,919,466 6,799,565
TOTAL 638,998,662 56,479,128
Net Realised (Losses)/Gains for the Year (591,844,340) 104,178,648
Net Change in Unrealised Depreciation in Value of Investments and Derivatives (113,087,320) 74,658,449
Net (Losses)/Gains for the Year (704,931,660) 178,837,097
Net Change in Unrealised Appreciation in Value of Investments and Derivatives - (60,982)Net (Deficit)/Surplus including Net Change in Unrealised Appreciation/Depreciation in Value of Investments and Derivatives (704,931,660) 178,776,115
Transferred to Unrealised Appreciation Reserve - 60,982
Net (Deficit)/Surplus for the Year (704,931,660) 178,837,097
April 01, 2008 to March 31, 2009 Rupees
April 01, 2007 to March 31, 2008 Rupees
Net (Deficit)/Surplus for the Year (704,931,660) # 178,837,097
Transfer from Income Equalisation Reserve (Note 2.8) (64,285,739) # 9,479,460
Balance Transferred to Reserve Fund (769,217,399) 188,316,557
Notes to the Financial Statements. 8
This is the Revenue Account referred to in our report of even date.
PARTHA GHOSH For Board of Trustees of For HSBC Asset Management (India)Partner HSBC Mutual Fund Private LimitedMembership No. F-55913For and on behalf of PRICE WATERHOUSE Chartered Accountants Vikramaaditya
Trustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai
Date : 06 July 2009 Fund Manager(s)
The Schedules referred to herein form an integral part of the Financial Statements.
HSBC MUTUAL FUND - HSBC TAX SAVER EQUITY FUND
Revenue Account for the year ended March 31, 2009
1
SCHEDULE 1 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008Investments Market Value Cost Market Value Cost(Notes 2.2, 2.3, 7, 8 and 11) Rupees Rupees Rupees Rupees
(Refer to the attached Statement of Portfolio Holding as at March 31, 2009)
Equity Shares 1,438,561,575 1,591,947,353 1,911,247,096 1,951,545,556
TOTAL 1,438,561,575 1,591,947,353 1,911,247,096 1,951,545,556
SCHEDULE 2 March 31, 2009 March 31, 2008Deposits Rupees Rupees
Deposits with Scheduled Bank (Under Lien Towards Margin Deposit for Equity Derivatives) 60,000,000 -
TOTAL 60,000,000 -
SCHEDULE 3 March 31, 2009 March 31, 2008Other Current Assets Rupees Rupees
Balances with Banks- in Current Account 3,840,417 12,556,040
Sales Contracts Awaiting Completion - Equity Shares 17,611,011 79,157,310
Application Money Pending Allotment - Equity Shares - 7,717,860
Reverse Repos 152,132,928 382,479,907
Collateralised Borrowing and Lending Obligation 159,167,745 -
Unit Subscription Receivable 21,513,450 7,354,090
Inter-Scheme Receivable - For 'Switch - In' 728,911 446,118 - For 'Others' 1,500 89,000
Interest Receivable on :- Deposits 735,287 - - Reverse Repos 19,578 84,212 - Collateralised Borrowing and Lending Obligation 19,500 -
Dividend Receivable 57,500 -
Receivable from Investment Manager 1,027 9,218
TOTAL 355,828,854 489,893,755
HSBC MUTUAL FUND - HSBC TAX SAVER EQUITY FUND
Schedules forming part of the Balance Sheet as at March 31, 2009
and the Revenue Account for the year ended March 31, 2009
2
SCHEDULE 4 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008Unit Capital Rupees Units Rupees Units
Growth OptionIssued and Subscribed :Units of Rs. 10 each fully paid up 992,369,263 99,236,926.282 992,369,263 99,236,926.282 Outstanding:At the beginning of the year 1,327,778,680 132,777,868.108 1,157,573,588 115,757,358.823 Issued during the year 183,360,346 18,336,034.648 174,528,016 17,452,801.638
1,511,139,026 151,113,902.756 1,332,101,604 133,210,160.461 Redeemed during the year 4,672,473 467,247.295 4,322,924 432,292.353 At the end of the year 1,506,466,553 150,646,655.461 1,327,778,680 132,777,868.108
Dividend Option
Issued and Subscribed :Units of Rs. 10 each fully paid up 645,008,528 64,500,852.832 645,008,528 64,500,852.832
Outstanding:
At the beginning of the year 839,839,854 83,983,985.503 748,615,911 74,861,591.180 Issued during the year 112,490,496 11,249,049.602 95,282,874 9,528,287.384
952,330,350 95,233,035.105 843,898,785 84,389,878.564 Redeemed during the year 8,283,368 828,336.755 4,058,931 405,893.061 At the end of the year 944,046,982 94,404,698.350 839,839,854 83,983,985.503
TOTAL 2,450,513,535 245,051,353.811 2,167,618,534 216,761,853.611
SCHEDULE 5 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008Reserves and Surplus Dividend Option Total Dividend Option Total
Rupees Rupees Rupees RupeesUnit Premium Reserve (Note 2.7)At the beginning of the year 13,592,022 42,691,871 303,128 909,582 Added during the year 2,133,309 6,923,013 13,288,894 41,782,289 At the end of the year 15,725,331 49,614,884 13,592,022 42,691,871
Income Equalisation Reserve (Note 2.8)Added during the year (24,316,637) (64,285,739) 2,984,231 9,479,460 Transferred to Revenue Account 24,316,637 64,285,739 (2,984,231) (9,479,460) At the end of the year - - - -
Unrealised Appreciation ReserveAt the beginning of the year - - - - Balance transferred from Reserve Fund - - 26,493 60,982 Net Change in Unrealised Appreciation in Value of Investments and Derivatives Transferred from Revenue Account - - (26,493) (60,982) At the end of the year - - - -
Reserve FundAt the beginning of the year 31,982,496 74,943,416 (44,446,949) (113,312,159) Transferred to Unrealised Appreciation Reserve - - (26,493) (60,982)
(296,059,230) (769,217,399) 76,455,938 188,316,557 At the end of the year (264,076,735) (694,273,983) 31,982,496 74,943,416
TOTAL (248,351,403) (644,659,099) * 45,574,518 117,635,287 *
* The share of the Plans/Options of the Reserves and Surplus is as follows : March 31, 2009 March 31, 2008
Rupees RupeesGrowth Option : Rs. (396,307,696) 72,060,769 Dividend Option : Rs. (248,351,403) 45,574,518 Total : Rs. (644,659,099) 117,635,287
Balance Transferred from Revenue Account
HSBC MUTUAL FUND - HSBC TAX SAVER EQUITY FUND
Schedules forming part of the Balance Sheet as at March 31, 2009
and the Revenue Account for the year ended March 31, 2009
3
SCHEDULE 6Current Liabilities and Provisions March 31, 2009 March 31, 2008
Rupees RupeesCurrent Liabilities
Investment Management and Advisory Fees 1,409,622 2,803,025
Transfer Agent Fees and Expenses 228,543 312,968
Custodian Fees and Expenses 78,176 138,486
Audit Fees 75,000 75,000
Selling and Distribution Expenses 6,755,361 2,718,960
Purchase Contracts Awaiting Completion -Equity Shares 35,071,950 104,814,658
Inter Scheme Payable for Others - 2,000
Load Charges (Note 2.9) 3,475,996 3,210,196
Payable to Investment Manager - -
Sundry Payables 1,441,345 1,811,737
TOTAL 48,535,993 115,887,030
SCHEDULE 7 April 1, 2008 April 1, 2007Interest (Note 2.4) March 31, 2009 March 31, 2008
Rupees Rupees
Reverse Repos 8,285,785 10,787,457
Collateralized Borrowing and Lending Obligation 3,273,313 970,002
Margin Deposit with Clearing Corporation of India Limited - 178
Debentures / Bonds 3,620,612 -
Commercial Paper / Certificate of Deposit 5,489,967 -
Deposits 4,265,589 2,114,393
Others - 54,768
TOTAL 24,935,266 13,926,798
Schedules forming part of the Balance Sheet as at March 31, 2009
and the Revenue Account for the year ended March 31, 2009
HSBC MUTUAL FUND - HSBC TAX SAVER EQUITY FUND 4
Quantity Market ValueRupees
Equity Shares (100 %)Auto (5.45 %)
Maruti Suzuki India Limited @ 51,000 39,772,350 Hero Honda Motors Limited @ 36,000 38,561,400
78,333,750 Auto Ancillaries (2.62 %)
Bosch Limited 9,000 27,653,850 Shanthi Gears Limited 390,000 10,023,000
37,676,850 Banks (14.12 %)
HDFC Bank Limited @ 108,000 105,127,200 Bank of Baroda @ 175,000 41,011,250 Union Bank of India 163,899 24,068,568 Punjab National Bank 44,000 18,103,800 Indian Bank 180,000 14,796,000
203,106,818 Cement (6.62 %)
Jaiprakash Associates Limited 400,000 33,640,000 Grasim Industries Limited @ 19,500 30,851,925 The India Cements Limited 290,000 30,740,000
95,231,925 Construction Project (3.08 %)
Larsen & Toubro Limited @ 66,000 44,312,400 44,312,400
Consumer Non Durables (16.25 %)I T C Limited @ 500,000 92,425,000 GlaxoSmithkline Consumer Healthcare Limited 73,914 52,057,630 Nestle India Limited 31,500 49,026,600 Colgate Palmolive India Limited 63,173 29,767,118 Balrampur Chini Mills Limited 200,000 10,560,000
233,836,348 Diversified (2.48 %)
Hindustan Unilever Limited @ 150,000 35,625,000 35,625,000
Finance (3.24 %)Housing Development Finance Corporation Limited 33,000 46,602,600
46,602,600 Hotels (0.52 %)
Viceroy Hotels Limited 473,364 7,455,483 7,455,483
Industrial Capital Goods (6.03 %)Bharat Heavy Electricals Limited 36,000 54,379,800 Thermax Limited 100,259 18,111,788 Crompton Greaves Limited 115,000 14,202,500
86,694,088 Media & Entertainment (3.47 %)
Zee News Limited 1,111,936 36,415,904 Dish TV India Limited 560,000 13,440,000
49,855,904 Oil (6.03 %)
Oil and Natural Gas Corporation Limited 80,000 62,416,000 Cairn India Limited @ 132,256 24,348,330
86,764,330 Petroleum Products (13.82 %)
Reliance Industries Limited @ 90,000 137,227,500 Hindustan Petroleum Corporation Limited 122,000 32,848,500 Indian Oil Corporation Limited 74,000 28,697,200
198,773,200 Pharmaceuticals (5.89 %)
Cipla Limited 284,292 62,558,455 Sun Pharmaceutical Industries Limited 20,000 22,229,000
84,787,455 Power (3.82 %)
Power Grid Corporation of India Limited 342,000 32,695,200 CESC Limited 105,539 22,268,729
54,963,929 Software (2.37 %)
Infosys Technologies Limited 25,800 34,156,620 34,156,620
Telecom - Services (4.20 %)Bharti Airtel Limited @ 96,500 60,384,875
60,384,875 Total (Cost Rs. 1,591,947,353) 1,438,561,575 TOTAL INVESTMENTS (Cost Rs. 1,591,947,353) 1,438,561,575
Deposits (3.32 %)^ Tenure Face Value6.3 % Standard Chartered Bank 91 60,000,000 Total Deposits 60,000,000
Confirmation has been received from JP Morgan Chase Bank, Mumbai Branch at the end of thefinancial year for the investments held by them.
^ Denotes Percentage to Net Asset Value.
@ Investments in companies which have invested more than five percent of the net asset value of any scheme of HSBC Mutual Fund.
for the year ended March 31, 2009 )
Description
HSBC MUTUAL FUND - HSBC TAX SAVER EQUITY FUND
Statement of Portfolio Holding as at March 31, 2009
(Referred to in Schedule 1 to the Balance Sheet as at March 31, 2009 and the Revenue Account
5
HSBC MUTUAL FUND-HSBC TAX SAVER EQUITY FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and theRevenue Account for the year ended March 31, 2009.
Annexure 1
(i) Transactions during the Year
Nature of Transaction Sponsor Investment Manager
Associate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and thier
Relatives Total
Purchase of Investments - - - 423,771,318 - 423,771,318 Previous Year - - - - - -
Sale of Investments - - - 194,678,537 - 194,678,537 Previous Year - - - - - -
Subscription of Units (including switch in and dividend reinvestment) - - - - 101,000 101,000 Previous Year - - - - - -
Sale of Mutual Fund Units - - - - - - Previous Year - - - 150,283,334 - 150,283,334
Investment Management and Advisory Fees - 17,813,145 - - - 17,813,145 Previous Year - 23,865,426 - - - 23,865,426
Brokerage/ Commission on Purchase/ Sale of Investments 269,324 - - - - 269,324 Previous Year 679,000 - - - - 679,000
Brokerage/ Commission on Distribution of Units - - 608,172 - - 608,172 Previous Year - - 2,050,035 - - 2,050,035
Clearing Charges - - - - - - Previous Year - - 95,784 - - 95,784
Fixed Deposits Placed - - - - - - Previous Year - - 64,000,000 - - 64,000,000
Fixed Deposits Matured - - - - - - Previous Year - - 104,000,000 - - 104,000,000
Charges for Services Provided by Bank - - 998 - - 998 Previous Year - - 8,128 - - 8,128
(ii) Outstanding As At Year End
Nature of Transaction Sponsor Investment Manager
Associate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and thier
Relatives Total
Investment Management and Advisory Fees Payable - 1,409,622 - - - 1,409,622 Previous Year - 2,803,025 - - - 2,803,025
Brokerage/ Commission Payable for Distribution of Units - - 170,738 - - 170,738 Previous Year - - 100,717 - - 100,717
Units Outstanding As At Year End - - - - 90,862 90,862 Previous Year - - - - - -
Other Payables - - - - - - Previous Year - - - 2,000 - 2,000
Other Receivables - 1,027 - 1,500 - 2,527 Previous Year - 9,218 - 89,000 - 98,218
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control ofthe Sponsor.
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Purchase of InvestmentsHSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 264,866,489 - HSBC Cash Fund 89,204,870
Sale of Investments - HSBC Equity Fund 69,573,024 HSBC Fixed Term Series 68 66,378,818 HSBC Floating Rate Fund Long Term Plan 58,726,695 -
Sale of Mutual Fund Units (including switch out)HSBC Cash Fund - 150,283,334
Other PayablesHSBC Dynamic Fund - 2,000
Other ReceivablesHSBC Equity Fund 1,500 84,940
(iv) Disclosures in respect of material transactions with persons referred to in Note 13 (I)(v) for key management personneland their relatives
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Subscription of Units (including switch in and dividend reinvestment)Rashid K Kidwai (relative) 101,000 -
Redemption of Units (including switch out)- -
Dividend Paid/Payable( Including dividend reinvested)- -
Units Outstanding As At Year EndRashid K Kidwai (relative) 90,862 -
0
HSBC MUTUAL FUND-HSBC TAX SAVER EQUITY FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
SCHEDULE 8
1Notes to the Financial Statements
1 Organisation
HSBC Tax Saver Equity Fund (the “Scheme”) is an open ended equity linked savings scheme of HSBC Mutual Fund (the “Fund”) and was launched on November 20, 2006. HSBC Mutual Fund has been sponsored by HSBC Securities and Capital Markets (India) Private Limited. HSBC Asset Management (India) Private Limited incorporated under the Companies Act, 1956 has been appointed as the asset management company. The duration of the Scheme is perpetual. The Scheme closed for initial subscription on December 14, 2006 and reopened for issue and redemption of units on January 17, 2007. The Scheme has been prepared pursuant to the notifications dated November 3, 2005 and December 13, 2005 issued by the Department of Economic Affairs, Ministry of Finance, Government of India or such other scheme as the Central Government may by notification in the Official Gazette specify under section 80C of the Income Tax Act, 1961. The investment objective of the Scheme is to provide long term capital appreciation by investing in a diversified portfolio of equity and equity related instruments of companies across various sectors and industries, with no capitalisation bias. The Scheme may also invest in fixed income securities. The Scheme has two Options - Growth Option and Dividend Option. The Scheme will not declare dividend under the Growth Option in normal circumstances. The income earned on such units will remain invested within the Scheme and will be reflected in the net asset value.
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 “Regulations”) and amendments thereto, as applicable.
2.2 Portfolio Valuation
Investments are stated at market / fair value at the Balance Sheet date/date of determination. In valuing the Scheme’s investments:
i. Equity securities listed on a recognized stock exchange are valued at the last quoted closing
price on the National Stock Exchange of India Limited (NSE). If on a particular valuation date, a security is not traded on NSE, the value at which it is traded on Bombay Stock Exchange Limited (BSE) is used. If no sale is reported at that time, the last quoted closing price on the principal stock exchange on which the security is traded is used when it is not more than thirty days prior to the valuation date.
HSBC MUTUAL FUND-HSBC TAX SAVER EQUITY FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
ii. Non-traded and thinly traded equity securities, including those not traded within thirty days
prior to the valuation date are valued at fair value as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India (SEBI).
iii. Debt securities listed on a recognised stock exchange are valued at the last quoted closing price on the National Stock Exchange of India Limited (NSE). If no sale is reported at that time, such securities are valued at fair value as determined in good faith by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund.
iv. Non-traded and thinly traded debt securities are valued at fair value as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India (SEBI).
v. Privately placed debt securities are valued at fair value as determined in good faith by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund.
vi. Equity shares awaiting listing are valued at fair value as determined in good faith by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund.
vii. Traded money market securities are valued at the yield at which they are traded on the valuation date. If no sale is reported at that time, such security is valued at the last traded price plus accretion of the difference between the face value and the last traded price. Non traded money market instruments are valued at cost plus accrued interest.
viii. Units in mutual fund are valued at the net asset value of the investee scheme. ix. Instruments bought on ‘repo’ basis are valued at the resale price after deduction of applicable
interest up to the date of resale. Following the issue of guidance note on accounting for investments in the financial statements of the mutual funds by the Institute of Chartered Accountants of India (pursuant to the Eleventh Schedule of the Regulations) net unrealised appreciation / depreciation in the value of investments and derivatives is determined separately for each category of investments and derivatives. In respect of each category of investments and derivatives, the net change in the unrealised appreciation if any, between two balance sheet dates / valuation dates is accounted through the Revenue Account and thereafter the net unrealised appreciation is transferred from the Revenue Account to the Unrealised Appreciation Reserve. The net depreciation if any, is accounted through the Revenue Account. Net unrealised appreciation is reduced from the distributable income at the time of income distribution. The loss on investments sold/transferred during the year is charged to the Revenue Account instead of being first adjusted against the provision for depreciation, if already created in the previous year as recommended in the Guidance Note. However the departure from the Guidance Note does not have any net impact on the net asset value of the options of the Scheme.
HSBC MUTUAL FUND-HSBC TAX SAVER EQUITY FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
2.3 Securities Transaction
Investment securities transactions are accounted for on a trade date basis. The Scheme uses the average cost method for determining the realized gain or loss on sale of investments.
2.4 Investment Income
Dividend and Interest income are recorded on an accrual basis.
2.5 Derivatives The Scheme enters into derivative transactions in equity/index futures for the purpose of hedging and
portfolio balancing.
“Derivative margin deposit” representing the margin towards equity derivative contracts entered into by the Scheme is disclosed under “Other Current Assets”.
Futures
• Futures contracts are marked to market daily at the futures settlement price as determined by the exchange. The variation margin calculated as the difference between the trade price or the previous day’s settlement price, as the case may be, and the current day’s settlement price is recorded as a receivable or payable. • When a contract is closed (squared off)/ settled (on expiry), the difference between the final settlement / square-off price and the contract price is recognised in the Revenue Account. If more than one futures contracts in respect of the same stock / index and expiry date, to which the squared off / settled contract pertains, is outstanding at the time of square off / settlement of the contract, the average method is followed for determining the gain or loss. • As at the Balance Sheet date / date of determination, all open futures positions are valued at the futures settlement price as determined by the exchange where it is traded. The unrealised appreciation / depreciation on all open positions is considered for determining the net asset value.
2.6 Net Asset Value for Growth/Dividend Options
The net asset value of the units of the Scheme is determined separately for the units issued under the Growth and Dividend Options. For reporting the net asset value for the 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 units outstanding.
2.7 Unit Premium Reserve Upon issue and redemption of units, the net premium or discount to the face value of units is adjusted
against the unit premium reserve of the Scheme, after an appropriate portion of the issue proceeds and redemption payout is credited or debited respectively to the income equalization reserve.
The unit premium reserve is available for dividend distribution except to the extent it is represented by
unrealized net appreciation in value of investments.
HSBC MUTUAL FUND-HSBC TAX SAVER EQUITY FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
2.8 Income Equalization Reserve
The net distributable income relating to units issued / repurchased is transferred to / from income equalization reserve for determining the net surplus / deficit, transferred from / to unit premium reserve.
2.9 Load Charges Load collected is retained under a separate account in the Scheme and is used to meet the selling and distribution expenses.
2.10 Initial Issue Expenses
Initial issue expenses comprise those costs directly associated with the issue of units of the Scheme and include advertising, brokerage, business promotion, marketing, printing, distribution and other miscellaneous expenses. Initial issue expenses upto 2.25% were borne from the entry load collected from the investors during the initial offer period. Expenses over and above the applicable entry load and amounts debited to the Scheme were borne by the asset management company.
3 Investment Management and Advisory Fees
The Scheme has paid or provided for investment management and advisory fees payable to HSBC
Asset Management (India) Private Limited for managing the Scheme at an average annual rate of
0.91% of the average daily net asset value recorded by the Scheme. All costs, charges and expenses
incurred by HSBC Asset Management (India) Private Limited in the administration and execution of
the activities of the Scheme, except costs allowed to be charged to the Scheme under the Regulations,
are on their own account for which they receive investment management and advisory fees. 4 Trusteeship Fees
In accordance with the Deed of Trust dated February 7, 2002 between HSBC Securities and Capital
Markets (India) Private Limited (“The Settlor”) and the Board of Trustees of HSBC Mutual Fund, the
Fund has paid or provided for a fee not exceeding Rs.20,000 for each meeting of the Board of Trustees
attended by such Trustee not affiliated with the Settlor
5 Custodian Fees
J P Morgan Chase Bank provides custodial services to the Scheme for which it receives custody fees including safekeeping.
6 Income Taxes
No provision for income tax is made as the Scheme qualifies as a recognized mutual fund under Section 10(23D) of the Income Tax Act, 1961.
HSBC MUTUAL FUND-HSBC TAX SAVER EQUITY FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
7 Aggregate Appreciation and Depreciation in Value of Investments
0Aggregate appreciation and depreciation in value of investments are as follows:
March 31, 2009
(Rupees) March 31, 2008
(Rupees)
Equity Shares
-Appreciation 62,106,058 173,597,447
-Depreciation 215,491,836 213,895,907
8 Aggregate Value of Purchases and Sale of Investments
The aggregate value of investments purchased (excluding accretion of discount of Rs. 5,489,967) and
sold (including matured) during the financial year is Rs. 5,161,259,484 and Rs. 4,934,062,477
respectively being 262.69% and 251.13% of the average daily net assets. 9 Income and Expenses
The total income (including net loss on sale of Investments and Derivatives and net change in
unrealized depreciation in the value of investments) and expenditure during the year is Rs.
(658,225,070) and Rs. 46,706,589 being (33.50)% and 2.38% respectively of the average daily net
assets.
10 Disclosure Under Regulation 25(8) of the Securities and Exchange Board of India (Mutual
Funds) Regulation, 1996 as amended and in accordance with Accounting Standard 18 on ‘Related Party Disclosures’ issued by the Institute of Chartered Accountants of India (ICAI)
The Scheme has entered into transactions with certain related parties. The information required in this regard in accordance with Accounting Standard 18 on ‘Related Party Disclosures’ issued by the Institute of Chartered Accountants of India and regulation 25(8) of SEBI Regulation, is provided below :
I Related Party Relationships
Name Description of relationship (i) HSBC Securities and Capital Markets (India) Private Limited Sponsor of the Fund
(ii) HSBC Asset Management (India) Private Limited Investment Manager to the Schemes of HSBC Mutual Fund
(iii) The Hong Kong and Shanghai Banking Corporation Limited Associate of the Investment Manager (iv) Schemes of the Fund, Under Common Control of the Sponsor
HSBC MUTUAL FUND-HSBC TAX SAVER EQUITY FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
HSBC Advantage India Fund HSBC Cash Fund HSBC Dynamic Fund HSBC Emerging Market Fund HSBC Equity Fund HSBC Fixed Term Series 21 upto April 02, 2008 HSBC Fixed Term Series 22 upto April 22, 2008 HSBC Fixed Term Series 23 upto April 02, 2008 HSBC Fixed Term Series 24 upto December 15, 2008 HSBC Fixed Term Series 25 upto April 23, 2008 HSBC Fixed Term Series 27 upto April 02, 2008 HSBC Fixed Term Series 28 upto May 26, 2008 HSBC Fixed Term Series 30 HSBC Fixed Term Series 32 upto July 10, 2008 HSBC Fixed Term Series 33 upto September 08, 2008 HSBC Fixed Term Series 35 upto September 18, 2008 HSBC Fixed Term Series 36 upto October 07, 2008 HSBC Fixed Term Series 37 upto October 22, 2008 HSBC Fixed Term Series 41 HSBC Fixed Term Series 42 HSBC Fixed Term Series 44 HSBC Fixed Term Series 45 HSBC Fixed Term Series 46 HSBC Fixed Term Series 47 upto June 26, 2008 HSBC Fixed Term Series 48 with effect from March 28, 2008 upto October 07, 2008 HSBC Fixed Term Series 49 HSBC Fixed Term Series 50 with effect from April 17, 2008 HSBC Fixed Term Series 51 with effect from April 23, 2008 upto October 23, 2008 HSBC Fixed Term Series 52 with effect from April 24, 2008 HSBC Fixed Term Series 53 with effect from May 23, 2008 HSBC Fixed Term Series 54 with effect from May 27, 2008 HSBC Fixed Term Series 55 with effect from June 26, 2008 upto December 29, 2008 HSBC Fixed Term Series 56 with effect from July 25, 2008 HSBC Fixed Term Series 57 with effect from August 13, 2008 HSBC Fixed Term Series 58 with effect from July 22, 2008 upto November 05, 2008 HSBC Fixed Term Series 59 with effect from July 07, 2008 HSBC Fixed Term Series 60 with effect from July 10, 2008 upto October 13, 2008 HSBC Fixed Term Series 61 with effect from July 17, 2008 HSBC Fixed Term Series 62 with effect from August 22, 2008 HSBC Fixed Term Series 63 with effect from September 04, 2008 HSBC Fixed Term Series 66 with effect from September 18, 2008 HSBC Fixed Term Series 68 with effect from October 06, 2008 to January 14, 2009 HSBC Flexi Debt Fund HSBC Floating Rate Fund Long Term Plan HSBC Floating Rate Fund Short Term Plan HSBC Gilt Fund (Formerly, HSBC Gilt Fund – Short Term Plan) HSBC Income Fund Investment Plan HSBC Income Fund Short Term Plan HSBC India Opportunities Fund HSBC Interval Fund - Plan I upto November 20, 2008 HSBC Interval Fund - Plan II upto December 10, 2008 HSBC Interval Fund - Plan III upto December 17, 2008 HSBC Ultra Short Term Bond Fund (Formerly , HSBC Liquid Plus Fund)
HSBC MUTUAL FUND-HSBC TAX SAVER EQUITY FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
HSBC Midcap Fund HSBC MIP Fund Regular Plan HSBC MIP Fund Savings Plan HSBC Small Cap Fund HSBC Unique Opportunities Fund
(v) Key Management Personnel and their relatives:
Nelum Pahlaj Gidwani – Associate Trustee Naina Lal Kidwai – Chairman of the Investment Manager Vikramaditya – Director and the Chief Executive Officer of the Investment Manager with effect from July 16, 2008 Dr. Rudolf Apenbrink – Associate Tustee Ayaz Ebrahim – Director with effect from April 11, 2008 Sanjay Prakash – Director and the Chief Executive Officer upto July 16, 2008 Avan Nelum Gidwani* – Relative of a Key Management Personnel Rashid K Kidwai – Relative of a Key Management Personnel Rumaan Kidwai* – Relative of a Key Management Personnel Kemaya Lal Kidwai*– Relative of a Key Management Personnel Amrita Vikramaaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Raaghav Aaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Rhea Aaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Gabriele A Apenbrink* – Relative of a Key Management Personnel Christian R Apenbrink* – Relative of a Key Management Personnel Katharina S Apenbrink* – Relative of a Key Management Personnel Yasmin Ebrahim* – Relative of a Key Management Personnel with effect from April 11, 2008 Daanyal Ebrahim* – Relative of a Key Management Personnel with effect from April 11, 2008 Nilufer Prakash*– Relative of a Key Management Personnel upto July 16, 2008 Tara Prakash*– Relative of a Key Management Personnel upto July 16, 2008 Anahita Prakash* – Relative of a Key Management Personnel upto July 16, 2008 * There were no transactions during the year.
II The following transactions occurred with the related parties during the year in the ordinary course of
business: Refer Annexure I
III During the year, HSBC Securities and Capital Markets (India) Private Limited, the Sponsor was paid
brokerage aggregating Rs. 269,324 on purchase and sale of investments. The Hongkong and Shanghai
Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited
was paid collection/bank charges amounting to Rs. 998 and brokerage amounting to Rs. 608,172 for
procuring unit subscriptions for the Scheme and clearing member charges on derivative transactions Rs.
95,784. The brokerage paid was at rates similar to those offered to other brokers / distributors.
Further, The Hong Kong and Shanghai Banking Corporation Limited, an associate of the Sponsor, is on
the panel of bankers with whom HSBC Mutual Fund places money on fixed deposits and enters into
reverse repo transactions from time to time at competitive rates.
HSBC MUTUAL FUND-HSBC TAX SAVER EQUITY FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
11 Disclosure under Regulation 25(11) of the Securities and Exchange Board of India (Mutual
Funds) Regulations, 1996 as amended
HSBC Mutual Fund has made investments in companies, which hold / have held units in excess of 5% of the net asset value of any Scheme of HSBC Mutual Fund which have been listed in Annexure II.
The investments comprise equity shares, debentures/ bonds, commercial paper, fixed deposits and other debt instruments and were made solely on the basis of sound fundamentals of these companies.
12 Prior Year’s Figures
Previous year’s figures have been re-grouped / re-arranged where appropriate. Signatures to the Schedules 1 to 8 forming part of the Balance Sheet and the Revenue Account.
PARTHA GHOSH Partner Membership No. F-55913 For and on behalf of PRICE WATERHOUSE Chartered Accountants
For Board of Trustees of HSBC Mutual Fund
For HSBC Asset Management (India) Private Limited
Trustee
Vikramaaditya Director and Chief Executive Officer
Trustee
Director
Place: Mumbai Date :
Fund Manager(s)
HSBC MUTUAL FUND-HSBC TAX SAVER EQUITY FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
Auditors’ Report To the Board of Trustees of HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Unique Opportunities Fund (The “Scheme”) as at March 31, 2009 and, the related Revenue Account for the year ended on that date annexed thereto, and the Cash Flow Statement for the year ended on that date which we have signed under reference to this report. These financial statements are the responsibility of the Board of Trustees of HSBC Mutual Fund and the Management of HSBC Asset Management (India) 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. Our procedures included confirmation of securities owned and unit capital balances as at March 31, 2009 by correspondence with the custodian/others and registrar and transfer agent respectively. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statements 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 purposes of our audit. The Balance Sheet, the Revenue Account and the Cash Flow Statement 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 ;
(i) The Balance Sheet, the Revenue Account and the Cash Flow Statement together with the
notes thereon give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and the amendments thereto, as applicable, and also give respectively a true and fair view of the state of affairs of HSBC Mutual Fund – HSBC Unique Opportunities Fund as at March 31, 2009, its net deficit and its cash flows for the year ended on that date.
(ii) The Balance Sheet as at March 31, 2009, and the Revenue Account for the year ended on
that date, together with the notes thereon, have been prepared in all material respects 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.
PARTHA GHOSH Partner M. No. F/55913 For and on behalf of PRICEWATERHOUSE Chartered Accountants Mumbai July , 2009
March 31, 2009 March 31, 2008Schedule Rupees Rupees
ASSETS
Investments 1 1,762,228,862 4,324,634,584 Deposits 2 165,000,000 180,000,000 Other Current Assets 3 324,080,285 623,142,229 Deferred Revenue Expenditure 4 50,255,009 126,831,644
TOTAL 2,301,564,156 5,254,608,457
LIABILITIES
Unit Capital 5 3,872,448,544 4,831,104,983 Reserves and Surplus 6 (1,677,447,411) 372,729,814 Current Liabilities and Provisions 7 106,563,023 50,773,660
TOTAL (0.21) 2,301,564,156 5,254,608,457
March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008 March 31, 2008RECONCILIATION OF NET ASSET VALUE PER UNIT Growth Option Dividend Option Total Growth Option Dividend Option Total
Rupees Rupees Rupees RupeesNet Assets as per Balance Sheet (Total Assets less Current Liabilities and Provisions ) (Note 2.7) 829,418,118 1,365,583,015 2,195,001,133 1,801,453,207 3,402,381,590 5,203,834,797
Number of Units in Issue 146,326,985.344 240,917,869.036 167,242,434.576 315,868,063.747 Net Asset Value per Unit 5.6683 5.6683 10.7715 10.7715
Notes to the Financial Statements. 9
This is the Balance Sheet referred to in our report of even date.
PARTHA GHOSH For Board of Trustees of For HSBC Asset Management (India)Partner HSBC Mutual Fund Private LimitedMembership No. F-55913For and on behalf of PRICE WATERHOUSE Chartered Accountants Vikramaaditya
Trustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai Date : 06 July 2009 Fund Manager(s)
The schedules referred to herein form an integral part of the Financial Statements.
HSBC MUTUAL FUND - HSBC UNIQUE OPPORTUNITIES FUND
Balance Sheet as at March 31, 2009
April 01, 2008 to April 01, 2007 toMarch 31, 2009 March 31, 2008
Schedule Rupees Rupees
INCOME AND GAINS
Dividends (Note 2.4) 38,414,191 39,357,072 Interest and Discount 8 38,531,162 37,593,810 Net Profit on Sale of Investments and Derivatives (Note 2.3 and 2.5) - 1,501,464,369
TOTAL 76,945,353 1,578,415,251
EXPENSES AND LOSSES
Net Loss on Sale of Investments and Derivatives (Note 2.3 and 2.5) 2,500,036,730 - Investment Management and Advisory Fees (Note 3) 35,627,202 68,182,205 Transfer Agent Fees and Expenses 6,982,422 11,023,799 Trusteeship Fees and Expenses (Note 4) 14,504 15,630 Custodian Fees and Expenses (Note 5) 1,716,758 3,117,574 Audit Fees 75,000 82,128 Selling and Distribution Expenses 25,606,468 48,379,779 Amortization of Deferred Revenue Expenditure (Note 2.6) 57,367,286 73,651,833 Other Operating Expenses 7,297,075 14,431,815
TOTAL 2,634,723,445 218,884,763
Less: Expenses to be Reimbursed by the Investment Manager (Note 7) 660,110 1,548,690
TOTAL 2,634,063,335 217,336,073
Net Realised (Losses)/Gains for the Year (2,557,117,982) 1,361,079,178
Net Change in Unrealised Depreciation in Value of Investments and Derivatives 356,129,960 (666,005,135)
Net (Losses)/Gains for the Year (2,200,988,022) 695,074,043
Net Change in Unrealised Appreciation in Value of Investments and Derivatives (472,071) (68,130,093)
Net (Deficit)/Surplus including Net change in Unrealised Appreciation/Depreciation in Value of Investments and Derivatives (2,201,460,093) 626,943,950
Transferred to Unrealised Appreciation Reserve 472,071 68,130,093
Net (Deficit)/Surplus for the Year (2,200,988,022) 695,074,043
April 01, 2008 to April 01, 2007 toMarch 31, 2009 March 31, 2008
Rupees Rupees
Net (Deficit)/Surplus for the Year (2,200,988,022) 695,074,043
Balance transferred to Reserve Fund (2,200,988,022) 695,074,043
Notes to the Financial Statements. 9
This is the Revenue Account referred to in our report of even date.
PARTHA GHOSH For Board of Trustees of For HSBC Asset Management (India)Partner HSBC Mutual Fund Private LimitedMembership No. F-55913For and on behalf of PRICE WATERHOUSE Chartered Accountants Vikramaaditya
Trustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai Fund Manager(s)Date : 06 July 2009
The Schedules referred to herein form an integral part of the Financial Statements.
HSBC MUTUAL FUND - HSBC UNIQUE OPPORTUNITIES FUND
Revenue Account for the year ended March 31, 2009
SCHEDULE 1 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008Investments Market/Fair Value Cost Market/Fair Value Cost(Notes 2.2, 2.3, 8, 9 and 13) Rupees Rupees Rupees Rupees
(Refer to the attached Statement of Portfolio Holding as at March 31, 2009)
Equity Shares 1,762,228,862 2,072,104,037 4,324,634,584 4,990,639,719
TOTAL 1,762,228,862 2,072,104,037 4,324,634,584 4,990,639,719
SCHEDULE 2 March 31, 2009 March 31, 2008Deposits Rupees Rupees
Deposits with Scheduled Bank (Under Lien Towards Margin Deposit for Equity Derivatives Rs 70,000,000) 130,000,000 160,000,000
Margin Deposit with The Clearing Corporation of India Limited towards Collateralized Borrowing and Lending Obligation 20,000,000 20,000,000
Margin Deposit with Clearing Corporation of India Limited towards Reverse Repos and Governement Securities 15,000,000 -
TOTAL 165,000,000 180,000,000
SCHEDULE 3 March 31, 2009 March 31, 2008Other Current Assets Rupees Rupees
Balances with Banks- in Current Account 494,022 7,589,052
Sales Contracts Awaiting Completion - Equity Shares 78,700,468 39,232,925 Application Money Pending Allotment - Equity Shares - 53,026,500 Reverse Repos 103,807,591 473,099,754 Collateralized Borrowing and Lending Obligation 108,607,356 - Inter-Scheme Receivable for Others - 6,000,000
Derivative Margin Deposit (Note 2.5) 30,000,000 40,000,000 Receivable on Outstanding Equity / Future Contracts 413,325 938,803 Interest Receivable on :- Deposits 1,070,055 1,174,685 - Reverse Repos 13,359 104,164 - Collateralized Borrowing and Lending Obligation 13,306 - - Margin Deposit with the Clearing Corporation of India Limited 140,740 - Receivable from Investment Manager 664,652 1,976,346
Investment Towards Unclaimed Redemption [(in 11,110.293 Units (Previous year: Nil units) (Market Value Rs. 161,925.85 (Previous year: Nil)) of HSBC Cash Fund - Growth Option) (Note 15)] 155,411 -
TOTAL 324,080,285 623,142,229
SCHEDULE 4 March 31, 2009 March 31, 2008Deferred Revenue Expenditure (Note 2.6) Rupees Rupees
Issue and Organisational Costs (net of exit load)
At the Beginning of the year 126,831,644 252,288,850
Incurred during the year - - Less: Amortized during the year 57,367,286 73,651,833 Less: Recovered during the year 19,209,349 51,805,373
At the end of the year 50,255,009 126,831,644
HSBC MUTUAL FUND - HSBC UNIQUE OPPORTUNITIES FUND
Schedules forming part of the Balance Sheet as at March 31, 2009and the Revenue Account for the year ended March 31, 2009
SCHEDULE 5 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008Unit Capital Rupees Units Rupees Units
Growth OptionIssued and Subscribed :Units of Rs. 10 each fully paid up 2,206,433,286 220,643,328.644 2,206,433,286 220,643,328.644 Outstanding:At the beginning of the year 1,672,424,345 167,242,434.576 2,206,234,286 220,623,428.644 Issued during the year 29,492,767 2,949,276.671 5,752,307 575,230.744
1,701,917,112 170,191,711.247 2,211,986,593 221,198,659.388 Redeemed during the year 238,647,259 23,864,725.903 539,562,248 53,956,224.812 At the end of the year 1,463,269,853 146,326,985.344 1,672,424,345 167,242,434.576
Dividend Option
Issued and Subscribed :Units of Rs. 10 each fully paid up 4,165,861,924 416,586,192.440 4,165,861,924 416,586,192.440 Outstanding:At the beginning of the year 3,158,680,638 315,868,063.747 4,165,322,476 416,532,247.579 Issued during the year 52,676,333 5,267,633.300 58,527,783 5,852,778.315
3,211,356,971 321,135,697.047 4,223,850,259 422,385,025.894 Redeemed during the year 802,178,280 80,217,828.011 1,065,169,621 106,516,962.147 At the end of the year 2,409,178,691 240,917,869.036 3,158,680,638 315,868,063.747
TOTAL 3,872,448,544 387,244,854.380 4,831,104,983 483,110,498.323
SCHEDULE 6 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008Reserves and Surplus Dividend Option Total Dividend Option Total
Rupees Rupees Rupees Rupees
Unit Premium Reserve (Note 2.8)At the beginning of the year (233,584,063) (384,733,420) (7,564) (10,354) Added during the year 124,220,105 151,282,868 (233,576,499) (384,723,066) At the end of the year (109,363,958) (233,450,552) (233,584,063) (384,733,420)
Unrealised Appreciation ReserveAt the beginning of the year 593,779 882,340 - - Balance Transferred from Reserve Fund - - 46,442,526 69,012,433
Net Change in Unrealised Appreciation in Value of Investments and Derivatives Transferred from Revenue Account (Note 10) (288,814) (472,071) (45,848,747) (68,130,093) At the end of the year 304,965 410,269 593,779 882,340
Reserve FundAt the beginning of the year 476,691,236 756,580,894 85,326,978 130,519,284 Transferred to Unrealised Appreciation Reserve - - (46,442,526) (69,012,433)
(1,411,227,919) (2,200,988,022) 437,806,784 695,074,043 At the end of the year (934,536,683) (1,444,407,128) 476,691,236 756,580,894
TOTAL (1,043,595,676) (1,677,447,411) * 243,700,952 372,729,814 *
* The share of the Options of the Reserves and Surplus is as follows : March 31, 2009 March 31, 2008
Growth Option : Rs. (633,851,735) 129,028,862 Dividend Option : Rs. (1,043,595,676) 243,700,952 Total : Rs. (1,677,447,411) 372,729,814
Balance Transferred from Revenue Account
HSBC MUTUAL FUND - HSBC UNIQUE OPPORTUNITIES FUNDSchedules forming part of the Balance Sheet as at March 31, 2009
and the Revenue Account for the year ended March 31, 2009
SCHEDULE 7Current Liabilities and Provisions March 31, 2009 March 31, 2008
Rupees RupeesCurrent Liabilities
Investment Management and Advisory Fees 1,830,896 5,423,054 Transfer Agent Fees and Expenses 286,441 728,354 Custodian Fees and Expenses 92,378 315,519 Audit Fees 75,000 75,000 Selling and Distribution Expenses 2,095,904 3,857,602 Purchase Contracts Awaiting Completion -Equity Shares 98,536,378 24,185,614 Unit Redemptions Payable 1,574,814 12,616,980 Inter Scheme payable
- For 'Switch - Out' 823,338 1,210,701 - For 'Others' - - Unclaimed Redemption (Note 15) 155,411 80,842 Temporary Book Overdraft 972 - Sundry Payables 1,091,491 2,279,994
TOTAL 106,563,023 50,773,660
SCHEDULE 8 April 01, 2008 to April 01, 2007 toInterest and Discount (Note 2.4) March 31, 2009 March 31, 2008
Rupees Rupees
Debentures / Bonds 442,959 - Commercial Paper / Certificate of Deposit 4,156,301 2,065,211 Reverse Repos 11,325,275 21,003,175 Collateralized Borrowing and Lending Obligation 5,896,045 2,324,672 Deposits 16,370,139 11,844,970 Margin Deposit with the Clearing Corporation of India Limited 340,443 355,782
TOTAL 38,531,162 37,593,810
HSBC MUTUAL FUND - HSBC UNIQUE OPPORTUNITIES FUND
Schedules forming part of the Balance Sheet as at March 31, 2009and the Revenue Account for the year ended March 31, 2009
Description Quantity Market ValueRupees
Equity Shares (100 %)Auto (5.16 %)
Hero Honda Motors Limited @ 63,000 67,482,450 Maruti Suzuki India Limited @ 30,000 23,395,500
90,877,950 Banks (12.69 %)
Union Bank of India 364,419 53,514,930 State Bank of India @ 46,000 49,086,600 Bank of Baroda @ 200,000 46,870,000 ICICI Bank Limited @ 115,000 38,272,000 Punjab National Bank 87,000 35,796,150
223,539,680 Cement (5.19 %)
Jaiprakash Associates Limited 675,000 56,767,500 UltraTech Cement Limited @ 63,000 34,735,050
91,502,550 Construction Project (2.74 %)
Larsen & Toubro Limited @ 72,000 48,340,800 48,340,800
Consumer Non Durables (17.31 %)Colgate Palmolive India Limited 180,000 84,816,000 Shree Renuka Sugars Limited 750,000 68,400,000 United Spirits Limited 102,893 66,772,412 I T C Limited @ 320,300 59,207,455 Balrampur Chini Mills Limited 489,238 25,831,766
305,027,633 Diversified (2.43 %)
Hindustan Unilever Limited @ 180,000 42,750,000 42,750,000
Hardware (0.73 %)Allied Digital Services Limited 73,491 12,820,505
12,820,505 Industrial Capital Goods (3.91 %)
Bharat Heavy Electricals Limited 30,000 45,316,500 Kirloskar Pneumatic Company Limited 144,000 23,544,000
68,860,500 Industrial Products (3.70 %)
Jain Irrigation Systems Limited 126,000 43,066,800 Max India Limited 225,000 22,095,000
65,161,800 Media & Entertainment (2.40 %)
Dish TV India Limited 1,000,000 24,000,000 IBN18 Broadcast Limited 249,019 18,277,995
42,277,995 Oil (1.88 %)
Cairn India Limited @ 180,000 33,138,000 33,138,000
Petroleum Products (12.53 %)Reliance Industries Limited @ 81,000 123,504,750 Bharat Petroleum Corporation Limited 135,000 50,766,750 Indian Oil Corporation Limited 120,000 46,536,000
220,807,500 Pharmaceuticals (11.54 %)
Lupin Limited 112,846 77,248,729 IPCA Laboratories Limited 136,108 44,976,889 Cipla Limited 150,600 33,139,530 Opto Circuits (India) Limited 240,000 24,120,000 Elder Pharmaceuticals Limited 110,412 23,931,801
203,416,949 Power (12.45 %)
GVK Power and Infrastructure Limited 3,000,000 70,200,000 Reliance Infrastructure Limited 120,000 61,866,000 CESC Limited 210,000 44,310,000 Power Grid Corporation of India Limited 450,000 43,020,000
219,396,000 Telecom - Services (5.35 %)
IDEA Cellular Limited @ 990,000 49,599,000 Mahanagar Telephone Nigam Limited 648,000 44,712,000
94,311,000 Total (Cost Rs. 2,072,104,037) 1,762,228,862 TOTAL INVESTMENTS (Cost Rs. 2,072,104,037) 1,762,228,862
Equity DerivativesLong Futures (100 %)
Jaiprakash Associates Limited - Futures - April 2009 (100 %) 126,000 10,647,000 Total 10,647,000
Deposits (5.92 %)^ Tenure Face Value5.25 % Standard Chartered Bank 182 60,000,000 7.5% Axis Bank 94 60,000,000 6.7 % Development Bank of Singapore 182 10,000,000 Total Deposits 130,000,000
HSBC MUTUAL FUND - HSBC UNIQUE OPPORTUNITIES FUND
Statement of Portfolio Holding as at March 31, 2009
(Referred to in Schedule 1 to the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009 )
^ Denotes Percentage to Net Asset Value.
Confirmation has been received from JP Morgan Chase Bank, Mumbai Branch at the end of the financial year for the investments held with them.
@ Investment in companies which have invested more than five percent of the net asset value of any schemes of HSBC Mutual Fund.
Year ended March 31, 2009
Rupees
Year ended March 31, 2008
Rupees
A. Cashflow from Operating ActivitiesDeficit / Surplus for the Year (2,557,117,982) 1,361,079,178 Initial Issue Expenses Charged to Revenue Account 76,576,635 125,457,206
Adjustments for:- (Increase)/Decrease in Investments at cost 3,006,498,810 1,182,299,405 (Increase)/Decrease in Other Current Assets 7,197,671 (8,002,673) Increase/(Decrease) in Current Liabilities (7,132,843) (263,764,900)
Net cash generated from/(used in) operations ( A ) 526,022,291 2,397,068,216
B Cashflow from Financing Activities Increase/(Decrease) in Unit Capital (958,656,439) (1,540,451,778) Increase/(Decrease) in Unit Premium 151,282,868 (384,723,066)
Adjustments for:- Increase/(Decrease) in Sundry Creditors for Units Redeemed by Investors (11,429,529) 13,009,974
Net cash (used in)/generated from financing activities ( B ) (818,803,100) (1,912,164,870)
Net Increase/(Decrease) in Cash and Cash Equivalents (A+B) (292,780,809) 484,903,346
Cash and Cash Equivalents as at the beginning of the Year 700,688,806 215,785,460 Cash and Cash Equivalents as at the close of the Year 407,907,997 700,688,806
Notes : March 31, 2009
Rupees March 31, 2008
Rupees
1 Components of cash and cash equivalents
Balances with banks in current accounts 494,022 7,589,052 Deposits with scheduled banks 130,000,000 160,000,000
35,000,000 20,000,000 Temporary Book Overdraft (972) Reverse Repo 103,807,591 473,099,754 Collateralised Borrowing and Lending Obligation 108,607,356 - Derivative Margin Deposit 30,000,000 40,000,000
407,907,997 700,688,806
2 The above Cash Flow Statement has been prepared under the "Indirect Method" set out in Accounting Standard - 3 on Cash Flow Statements,issued by The Institute of Chartered Accountants of India.
This is the Cash Flow Statement referred to in our report of even date.
PARTHA GHOSH For Board of Trustees of For HSBC Asset Management (India)
Partner HSBC Mutual Fund Private Limited
Membership No. F-55913For and on behalf of
PRICE WATERHOUSE
Chartered Accountants VikramaadityaTrustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai
Date : 06 July 2009
Fund Manager(s)
HSBC MUTUAL FUND - HSBC UNIQUE OPPORTUNITIES FUND
Cash Flow Statement for the year ended March 31, 2009
Margin Deposit with Clearing Corporation of India Limited
HSBC MUTUAL FUND-HSBC UNIQUE OPPORTUNITIES FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
SCHEDULE 9
Notes to the Financial Statements
1 Organisation
HSBC Unique Opportunities Fund (the “Scheme”) is a three year close-ended equity Scheme of HSBC Mutual Fund (the “Fund”) with automatic conversion into open-ended equity Scheme at the end of three years from the date of allotment of units. The Scheme was launched on February 2, 2007. HSBC Mutual Fund has been sponsored by HSBC Securities and Capital Markets (India) Private Limited. HSBC Asset Management (India) Private Limited incorporated under the Companies Act, 1956 has been appointed as the asset management company. At the end of three years from the date of allotment of units, the Scheme will automatically be converted into an open-ended scheme for the benefit of providing investors the facility of purchase and redemptions on any business day, without any further reference from the Fund /Board of Trustees of the Fund, subject to the Securities and Exchange Board of India (Mutual Funds) Regulations 1996 and amendments thereto as applicable. However, the Board of Trustees of the Fund reserves the right of not converting the Scheme into an open-ended Scheme, if deemed appropriate to protect the interest of the Scheme/investors. The Scheme closed for initial subscription on February 26, 2007, and reopened for redemption of units on March 28, 2007. The investment objective of the Scheme is to provide long term capital growth from a diversified portfolio of equity and equity related instruments with focus on investing in stocks of companies facing “out-of-ordinary” conditions. The Scheme has two Options - Growth Option and Dividend Option. The Scheme will not declare dividend under the Growth Option in normal circumstances. The income earned on such units will remain invested within the Scheme and will be reflected in the net asset value.
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 “Regulations”) and amendments thereto, as applicable.
2.2 Portfolio Valuation
Investments are stated at market / fair value at the Balance Sheet date/date of determination. In valuing the Scheme’s investments:
i. Equity securities listed on a recognized stock exchange are valued at the last quoted closing
price on the National Stock Exchange of India Limited (NSE). If on a particular valuation date, a security is not traded on NSE, the value at which it is traded on the Bombay Stock Exchange Limited (BSE) is used. If no sale is reported at that time, the last quoted closing price on the principal stock exchange on which the security is traded is used when it is not more than thirty days prior to the valuation date.
HSBC MUTUAL FUND-HSBC UNIQUE OPPORTUNITIES FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
ii. Non-traded and thinly traded equity securities, including those not traded within thirty days
prior to the valuation date are valued at fair value as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India (SEBI).
iii. Debt securities listed on a recognised stock exchange are valued at the last quoted closing price on the National Stock Exchange of India Limited (NSE). If no sale is reported at that time, such securities are valued at fair value as determined in good faith by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund.
iv. Non-traded and thinly traded debt securities are valued at fair value as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India (SEBI).
v. Privately placed debt securities are valued at fair value as determined in good faith by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund.
vi. Equity securities awaiting listing are valued at fair value as determined in good faith by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund.
vii. Traded money market securities are valued at the yield at which they are traded on the valuation date. If no sale is reported at that time, such security is valued at the last traded price plus accretion of the difference between the face value and the last traded price. Non traded money market instruments are valued at cost plus accrued interest.
viii. Units in mutual fund are valued at the net asset value of the investee scheme. ix. Instruments bought on ‘repo’ basis are valued at the resale price after deduction of applicable
interest up to the date of resale. Following the issue of guidance note on accounting for investments in the financial statements of the mutual funds by the Institute of Chartered Accountants of India (pursuant to the Eleventh Schedule of the Regulations) net unrealised appreciation / depreciation in the value of investments and derivatives is determined separately for each category of investments and derivatives. In respect of each category of investments and derivatives, the net change in the unrealised appreciation if any, between two balance sheet dates / valuation dates is accounted through the Revenue Account and thereafter the net unrealised appreciation is transferred from the Revenue Account to the Unrealised Appreciation Reserve. The net depreciation if any, is accounted through the Revenue Account. Net unrealised appreciation is reduced from the distributable income at the time of income distribution. The loss on investments sold/transferred during the year is charged to the Revenue Account instead of being first adjusted against the provision for depreciation, if already created in the previous year as recommended in the Guidance Note. However the departure from the Guidance Note does not have any net impact on the net asset value of the options of the Scheme
HSBC MUTUAL FUND-HSBC UNIQUE OPPORTUNITIES FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
2.3 Securities Transaction
Investment securities transactions are accounted for on a trade date basis. The Scheme uses the average cost method for determining the realized gain or loss on sale of investments.
2.4 Investment Income
Dividend and Interest income are recorded on an accrual basis.
2.5 Derivatives The Scheme enters into derivative transactions in equity/ index futures for the purpose of hedging and portfolio balancing.
“Derivative margin deposits” representing the margin towards equity derivative contracts entered into by the Scheme are disclosed under “Other Current Assets”
Futures
• Futures contracts are marked to market daily at the futures settlement price as determined by the exchange. The variation margin calculated as the difference between the trade price or the previous day’s settlement price, as the case may be, and the current day’s settlement price is recorded as a receivable or payable. • When a contract is closed (squared off)/ settled (on expiry), the difference between the final settlement / square-off price and the contract price is recognised in the Revenue Account. If more than one futures contracts in respect of the same stock / index and expiry date, to which the squared off / settled contract pertains, is outstanding at the time of square off / settlement of the contract, the average method is followed for determining the gain or loss. • As at the Balance Sheet date / date of determination, all open futures positions are valued at the futures settlement price as determined by the exchange where it is traded. The unrealised appreciation / depreciation on all open positions is considered for determining the net asset value.
2.6 Deferred Revenue Expenditure
Initial issue expenses of upto 4% of the amount mobilized during the initial offer period comprising advertising, brokerage, business promotion, marketing, printing, distribution and other miscellaneous expenses were borne by the Scheme and are being amortized over a period of three years from the date of allotment of units. Expenses over and above 4% were borne by the asset management company.
2.7 Net Asset Value for Growth/Dividend Options
The net asset value of the units of the Scheme is determined separately for the units issued under the Growth and Dividend Options. For reporting the net asset value for the 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 units outstanding.
HSBC MUTUAL FUND-HSBC UNIQUE OPPORTUNITIES FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
2.8 Unit Premium Reserve Upon redemption of units, the net premium or discount to the face value of units is adjusted against the
unit premium reserve of the Scheme. The unit premium reserve is available for dividend distribution except to the extent it is represented by
unrealized net appreciation in value of investments and derivatives.
2.9 Load Charges Load collected is retained under a separate account in the Scheme and is used to meet the selling and distribution expenses.
3 Investment Management and Advisory Fees
The Scheme has paid or provided for investment management and advisory fees payable to HSBC Asset Management (India) Private Limited for managing the Scheme at an average annual rate of 1.02% of the average daily net asset value recorded by the Scheme. All costs, charges and expenses incurred by HSBC Asset Management (India) Private Limited in the administration and execution of the activities of the Scheme, except costs allowed to be charged to the Scheme under the Regulations, are on their own account for which they receive investment management and advisory fees.
4 Trusteeship Fees
In accordance with the Deed of Trust dated February 7, 2002 between HSBC Securities and Capital Markets (India) Private Limited (“The Settlor”) and the Board of Trustees of HSBC Mutual Fund, the Fund has paid or provided for a fee not exceeding Rs.20,000 for each meeting of the Board of Trustees attended by such Trustee not affiliated with the Settlor
5 Custodian Fees
J P Morgan Chase Bank provides custodial services to the Scheme for which it receives custody fees including safekeeping.
6 Income Taxes
No provision for income tax is made as the Scheme qualifies as a recognized mutual fund under Section 10(23D) of the Income Tax Act, 1961.
HSBC MUTUAL FUND-HSBC UNIQUE OPPORTUNITIES FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
7. Limitation on Expenses
The total expenses excluding deferred revenue expenditure, chargeable to the Scheme are limited to 2.20% of the average daily net assets of the Scheme. HSBC Asset Management (India) Private Limited has borne Rs. 660,110 in respect of the Scheme in excess of the above mentioned percentage of the average daily net assets to be charged to the Scheme as total expenses for the year.
8 Aggregate Appreciation and Depreciation in Value of Investments and Derivatives
Aggregate appreciation and depreciation in value of investments are as follows:
March 31, 2009
(Rupees) March 31, 2008
(Rupees) Equity Shares -Appreciation 125,878,670 178,066,434 -Depreciation 435,753,845 844,071,569 Equity Futures -Appreciation 410,269 882,340 -Depreciation - -
9 Aggregate Value of Purchase and Sale of Investments
The aggregate value of investments securities purchased and sold (including matured) during the financial period (excluding accretion of discount of Rs. 4,156,301) is Rs. 5,878,551,559 and Rs. 6,358,764,847 respectively being 168.32 % and 182.07 % of the average daily net assets.
10 Income and Expenses
The total income (including net loss on sale of investments and net change in unrealized depreciation in the value of investments and derivatives) and expenditure (excluding deferred revenue expenditure amortized) during the year is Rs. (2,066,961,417) and Rs. 76,659,319 being (59.18) % and 2.20 % respectively of the average daily net assets.
11 Equity Derivatives Disclosures:
Futures Details of open interest in equity futures as at March 31, 2009
Underlying Asset's Name Number of contracts Units Outstanding Long/(Short)
Jaiprakash Associates Limited 28
126,000
HSBC MUTUAL FUND-HSBC UNIQUE OPPORTUNITIES FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
Notional value of futures contracts bought/ (sold) by the Scheme and outstanding as on March 31, 2009 aggregates to Rs. 10,647,000
Net Profit/ (Loss) on futures transactions recognized in the Revenue Account for the year ended March 31, 2009 aggregates to Rs. (57,557,646).
12 Disclosure Under Regulation 25(8) of the Securities and Exchange Board of India (Mutual Funds) Regulation, 1996 as amended and in accordance with Accounting Standard 18 on ‘Related Party Disclosures’ issued by the Institute of Chartered Accountants of India (ICAI)
The Scheme has entered into transactions with certain related parties. The information required in this regard in accordance with Accounting Standard 18 on ‘Related Party Disclosures’ issued by the Institute of Chartered Accountants of India and regulation 25(8) of SEBI Regulation, is provided below :
I Related Party Relationships
Name Description of relationship (i) HSBC Securities and Capital Markets (India) Private Limited Sponsor of the Fund
(ii) HSBC Asset Management (India) Private Limited Investment Manager to the Schemes of HSBC Mutual Fund
(iii) The Hong Kong and Shanghai Banking Corporation Limited Associate of the Investment Manager (iv) Schemes of the Fund, Under Common Control of the Sponsor
HSBC Advantage India Fund HSBC Cash Fund HSBC Dynamic Fund HSBC Emerging Market Fund HSBC Equity Fund HSBC Fixed Term Series 21 upto April 02, 2008 HSBC Fixed Term Series 22 upto April 22, 2008 HSBC Fixed Term Series 23 upto April 02, 2008 HSBC Fixed Term Series 24 upto December 15, 2008 HSBC Fixed Term Series 25 upto April 23, 2008 HSBC Fixed Term Series 27 upto April 02, 2008 HSBC Fixed Term Series 28 upto May 26, 2008 HSBC Fixed Term Series 30 HSBC Fixed Term Series 32 upto July 10, 2008 HSBC Fixed Term Series 33 upto September 08, 2008 HSBC Fixed Term Series 35 upto September 18, 2008 HSBC Fixed Term Series 36 upto October 07, 2008 HSBC Fixed Term Series 37 upto October 22, 2008 HSBC Fixed Term Series 41 HSBC Fixed Term Series 42 HSBC Fixed Term Series 44 HSBC Fixed Term Series 45 HSBC Fixed Term Series 46
HSBC MUTUAL FUND-HSBC UNIQUE OPPORTUNITIES FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
HSBC Fixed Term Series 47 upto June 26, 2008 HSBC Fixed Term Series 48 with effect from March 28, 2008 upto October 07, 2008 HSBC Fixed Term Series 49 HSBC Fixed Term Series 50 with effect from April 17, 2008 HSBC Fixed Term Series 51 with effect from April 23, 2008 upto October 23, 2008 HSBC Fixed Term Series 52 with effect from April 24, 2008 HSBC Fixed Term Series 53 with effect from May 23, 2008 HSBC Fixed Term Series 54 with effect from May 27, 2008 HSBC Fixed Term Series 55 with effect from June 26, 2008 upto December 29, 2008 HSBC Fixed Term Series 56 with effect from July 25, 2008 HSBC Fixed Term Series 57 with effect from August 13, 2008 HSBC Fixed Term Series 58 with effect from July 22, 2008 upto November 05, 2008 HSBC Fixed Term Series 59 with effect from July 07, 2008 HSBC Fixed Term Series 60 with effect from July 10, 2008 upto October 13, 2008 HSBC Fixed Term Series 61 with effect from July 17, 2008 HSBC Fixed Term Series 62 with effect from August 22, 2008 HSBC Fixed Term Series 63 with effect from September 04, 2008 HSBC Fixed Term Series 66 with effect from September 18, 2008 HSBC Fixed Term Series 68 with effect from October 06, 2008 to January 14, 2009 HSBC Flexi Debt Fund HSBC Floating Rate Fund Long Term Plan HSBC Floating Rate Fund Short Term Plan HSBC Gilt Fund (Formerly, HSBC Gilt Fund – Short Term Plan) HSBC Income Fund Investment Plan HSBC Income Fund Short Term Plan HSBC India Opportunities Fund HSBC Interval Fund - Plan I upto November 20, 2008 HSBC Interval Fund - Plan II upto December 10, 2008 HSBC Interval Fund - Plan III upto December 17, 2008 HSBC Ultra Short Term Bond Fund (Formerly , HSBC Liquid Plus Fund) HSBC Midcap Fund HSBC MIP Fund Regular Plan HSBC MIP Fund Savings Plan HSBC Small Cap Fund HSBC Tax Saver Equity Fund
(v) Key Management Personnel and their relatives:
Nelum Pahlaj Gidwani – Associate Trustee Naina Lal Kidwai – Chairman of the Investment Manager Vikramaditya – Director and the Chief Executive Officer of the Investment Manager with effect from July 16, 2008 Dr. Rudolf Apenbrink – Associate Tustee Ayaz Ebrahim – Director with effect from April 11, 2008 Sanjay Prakash – Director and the Chief Executive Officer upto July 16, 2008 Avan Nelum Gidwani* – Relative of a Key Management Personnel Rashid K Kidwai* – Relative of a Key Management Personnel Rumaan Kidwai* – Relative of a Key Management Personnel Kemaya Lal Kidwai*– Relative of a Key Management Personnel Amrita Vikramaaditya* – Relative of a Key Management Personnel with effect from July 16, 2008
HSBC MUTUAL FUND-HSBC UNIQUE OPPORTUNITIES FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
Raaghav Aaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Rhea Aaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Gabriele A Apenbrink* – Relative of a Key Management Personnel Christian R Apenbrink* – Relative of a Key Management Personnel Katharina S Apenbrink* – Relative of a Key Management Personnel Yasmin Ebrahim* – Relative of a Key Management Personnel with effect from April 11, 2008 Daanyal Ebrahim* – Relative of a Key Management Personnel with effect from April 11, 2008 Nilufer Prakash*– Relative of a Key Management Personnel upto July 16, 2008 Tara Prakash*– Relative of a Key Management Personnel upto July 16, 2008 Anahita Prakash* – Relative of a Key Management Personnel upto July 16, 2008 * There were no transactions during the year.
II The following transactions occurred with the related parties during the year in the ordinary course of
business: Refer Annexure I
III During the year, HSBC Securities and Capital Markets (India) Private Limited, the Sponsor was paid brokerage aggregating Rs. 435,189 on purchase and sale of investments. The Hongkong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid brokerage amounting to Rs. 6,446,967 for procuring unit subscriptions for the Scheme and clearing member charges on derivative transactions Rs. 565,239. The brokerage paid was at rates similar to those offered to other brokers / distributors.
Further, The Hong Kong and Shanghai Banking Corporation Limited, an associate of the Sponsor, is on the panel of bankers with whom HSBC Mutual Fund places money on fixed deposits and enters into reverse repo transactions from time to time at competitive rates.
13 Disclosure under Regulation 25(11) of the Securities and Exchange Board of India (Mutual
Funds) Regulations, 1996 as amended
HSBC Mutual Fund has made investments in companies, which holds/ has held units in excess of 5% of the net asset value of any Scheme of HSBC Mutual Fund which have been listed in Annexure II.
The investments comprise equity shares, debentures/ bonds, commercial paper, fixed deposits and other debt instruments and were made solely on the basis of sound fundamentals of these companies.
14 Segment Reporting
The Scheme operates in one segment only viz. to primarily generate attractive returns from a diversified and actively managed portfolio of equity and equity related instruments.
15 Unclaimed Redemptions: As at March 31, 2009, unclaimed redemptions aggregate Rs. 155,411 payable to 2 investors.
HSBC MUTUAL FUND-HSBC UNIQUE OPPORTUNITIES FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
16 Prior Year’s Figures
Previous year’s figures have been re-grouped / re-arranged where appropriate. Signatures to the Schedules 1 to 9 forming part of the Balance Sheet and the Revenue Account
PARTHA GHOSH Partner Membership No. F-55913 For and on behalf of PRICE WATERHOUSE Chartered Accountants
For Board of Trustees of HSBC Mutual Fund
For HSBC Asset Management (India) Private Limited
Trustee
Vikramaaditya Director and Chief Executive Officer
Trustee
Director
Place: Mumbai Date :
Fund Manager(s)
HSBC MUTUAL FUND-HSBC UNIQUE OPPORTUNITIES FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and theRevenue Account for the year ended March 31, 2009.
Annexure 1
(i) Transactions during the Year
Nature of Transaction SponsorInvestment
Manager
Associate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Purchase of Investments - - - 640,161,844 - 640,161,844 Previous Year - - - - - -
Sale of Investments - - - 193,458,585 - 193,458,585 Previous Year - - - 2,148,174,843 - 2,148,174,843
Sale of Mutual Fund Units - - - - - - Previous Year - - - 450,735,661 - 450,735,661
Investment Management and Advisory Fees - 35,627,202 - - - 35,627,202 Previous Year - 68,182,205 - - - 68,182,205
Brokerage/ Commission on Purchase/Sale of Investments 435,189 - 10,488 - - 445,677 Previous Year 1,985,000 - - - - 1,985,000
Brokerage/ Commission on Distribution of Units - - 6,446,967 - - 6,446,967 Previous Year - - 55,187,005 - - 55,187,005
Clearing Charges - - 565,239 - - 565,239 Previous Year - - 829,819 - - 829,819
Reimbursment of Expenses - 660,110 - - - 660,110 Previous Year - 1,548,690 - - - 1,548,690
Fixed Deposits Placed - - - - - - Previous Year - - 180,000,000 - - 180,000,000
Fixed Deposits Matured - - - - - - Previous Year - - 316,000,000 - - 316,000,000
Charges for Services Provided by Bank - - - - - - Previous Year - - 918 - - 918
(ii) Outstanding As At Year End
Nature of Transaction SponsorInvestment
Manager
Associate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Investment Management and Advisory Fees Payable - 1,830,896 - - - 1,830,896 Previous Year - 5,423,054 - - - 5,423,054
Brokerage/ Commission Payable for Distribution of Units - - 362,267 - - 362,267 Previous Year - - 761,533 - - 761,533
Units Outstanding As At Year End - - - - - - Previous Year - - - - 118,487 118,487
Other Receivables - 664,652 - - - 664,652 Previous Year - 1,976,346 - 6,000,000 - 7,976,346
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control ofthe Sponsor.
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Purchase of InvestmentsHSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 198,541,455 - HSBC Cash Fund 89,204,870 - HSBC Fixed Term Series 54 88,656,850
Sale of InvestmentsHSBC Fixed Term Series 58 125,742,234 - HSBC Fixed Term Series 44 48,185,937 - HSBC Fixed Term Series 55 19,530,414 - HSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) - 1,155,356,357 HSBC Cash Fund - 896,721,199
Sale of Mutual Fund Units (including switch out) - - HSBC Cash Fund - 450,735,661
Other Receivables - HSBC Dynamic Fund - 6,000,000
(iv) Disclosures in respect of material transactions with persons referred to in Note 13 (I)(v) for key management personneland their relatives
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Units Outstanding As At Year EndSanjay Prakash - 107,715
Auditors' Report To the Board of Trustees of HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Dynamic Fund ("The Scheme") as at March 31, 2009 and the related Revenue Account for year ended on that date, both of which we have signed under reference to this report. These financial statements are the responsibility of the Board of Trustees of HSBC Mutual Fund and the Management of HSBC Asset Management (India) 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. Our procedures included confirmation of securities owned and unit capital balances as at March 31, 2009 by correspondence with the custodian/others and registrar and transfer agent respectively. 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, (i) 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 also give respectively, a true and fair view of the state of affairs of HSBC Mutual Fund – HSBC Dynamic Fund as at March 31, 2009 and its net deficit for the year ended on that date.
(ii) The Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009, together with the notes thereon have been prepared in all material respects 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.
(iii) The method used to value non traded and thinly traded debt securities in accordance with the guidelines for valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India as at March 31, 2009 as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund are fair and reasonable.
PARTHA GHOSH Partner Membership No. F/55913 For and on behalf of PRICE WATERHOUSE Chartered Accountants Place: Mumbai Date: July 06, 2009
March 31, 2009 March 31, 2008Schedule Rupees Rupees
ASSETS
Investments 1 1,813,832,700 3,992,268,295
Deposits 2 261,000,000 146,000,000
Other Current Assets 3 318,915,518 212,925,310
TOTAL 2,393,748,218 4,351,193,605
LIABILITIES
Unit Capital 4 3,711,200,832 4,192,933,701
Reserves and Surplus 5 (1,369,862,489) (140,087,228)
Current Liabilities and Provisions 6 52,409,875 298,347,131
TOTAL 2,393,748,218 4,351,193,605
March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008 March 31, 2008RECONCILIATION OF NET ASSET VALUE PER UNIT Growth Option Dividend Option Total Growth Option Dividend Option Total
Rupees Rupees Rupees Rupees Rupees Rupees
Net Assets as per Balance Sheet (Total Assets less Current Liabilities and Provisions ) (Note 2.6) 1,200,245,402 1,141,092,941 2,341,338,343 1,981,587,812 2,071,258,661 4,052,846,473
Number of Units in Issue 190,248,100.865 180,871,982.404 205,008,927.831 214,284,442.273
Net Asset Value per Unit 6.3088 6.3088 9.6659 9.6659
Notes to the Financial Statements. 8
This is the Balance Sheet referred to in our report of even date.
PARTHA GHOSH For Board of Trustees of For HSBC Asset Management (India)Partner HSBC Mutual Fund Private LimitedMembership No. F-55913For and on behalf of PRICE WATERHOUSE Chartered Accountants
VikramaadityaTrustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai
Date : 06 July 2009 Fund Manager(s)
The schedules referred to herein form an integral part of the Financial Statements.
HSBC MUTUAL FUND - HSBC DYNAMIC FUND
Balance Sheet as at March 31, 2009
0
April 01, 2008 to August 03, 2007 toMarch 31, 2009 March 31, 2008
Schedule Rupees Rupees
INCOME AND GAINS
Dividends (Note 2.4) 33,617,528 3,275,940
Interest and Discount 7 67,328,545 69,385,136
Net Profit on Sale of Investments and Derivatives (Note 2.3 and 2.5) - 301,027,092
TOTAL 100,946,073 373,688,168
EXPENSES AND LOSSES
Net Loss on Sale of Investments and Derivatives (Note 2.3 and 2.5) 1,651,278,112 -
(Including Net Loss on Inter-Scheme Sale of Investments Rs. (7,648,689) (Previous period: Rs Nil)) (Note 2.3)
Investment Management and Advisory Fees (Note 3) 33,826,891 29,365,941
Transfer Agent Fees and Expenses 6,210,293 3,204,226
Trusteeship Fees and Expenses (Note 4) 12,989 6,203
Custodian Fees and Expenses (Note 5) 2,136,362 1,636,522
Audit Fees 100,000 50,000
Selling and Distribution Expenses 23,762,889 19,014,075
Other Operating Expenses 6,935,363 6,835,193
TOTAL 1,724,262,899 60,112,160
Net Realised (Losses)/Gains for the Year/Period (1,623,316,826) 313,576,008
Net change in Unrealised Depreciation in Value of Investments and Derivatives 302,654,251 (399,537,894)
Net Losses for the Year/Period (1,320,662,575) (85,961,886)
April 01, 2008 to August 03, 2007 toMarch 31, 2009 March 31, 2008
Total TotalRupees Rupees
Net (Deficit) for the Year/Period (1,320,662,575) (85,961,887)
Transfer from Income Equalisation Reserve 91,608,166 (11,091,064)
Balance transferred to Reserve Fund (1,229,054,409) (97,052,951)
Notes to the Financial Statements. 8
This is the Revenue Account referred to in our report of even date.
PARTHA GHOSH For Board of Trustees of For HSBC Asset Management (India)Partner HSBC Mutual Fund Private LimitedMembership No. F-55913For and on behalf of PRICE WATERHOUSE Chartered Accountants
Vikramaaditya
Trustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai
Date : 06 July 2009 Fund Manager(s)
The Schedules referred to herein form an integral part of the Financial Statements.
HSBC MUTUAL FUND - HSBC DYNAMIC FUND
Revenue Account for the year ended March 31, 2009
1
SCHEDULE 1 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008Investments Market/Fair Value Cost Market/Fair Value Cost(Notes 2.2, 2.3, 7, 8, 9 and 13) Rupees Rupees Rupees Rupees
(Refer to the attached Statement of Portfolio Holding as at March 31, 2009)
Equity Shares 1,655,767,413 1,750,429,287 2,837,700,186 3,235,747,059
Non Convertible Debentures and Bonds Listed / Awaiting Listing 158,065,287 159,421,648 528,610,517 529,763,635
Privately Placed Non Convertible Debentures / Bonds - - 230,219,121 230,225,193
Certificate of Deposit - - 395,738,471 395,738,471
TOTAL 1,813,832,700 1,909,850,935 3,992,268,295 4,391,474,358
SCHEDULE 2 March 31, 2009 March 31, 2008Deposits Rupees Rupees
Deposits with Scheduled Bank (Under Lien Towards Margin Deposit for Equity Derivatives Rs 146,000,000) 246,000,000 146,000,000
Margin Deposit with Clearing Corporation of India towards Reverse Repos and Governement Securities 15,000,000 -
TOTAL 261,000,000 146,000,000
SCHEDULE 3 March 31, 2009 March 31, 2008Other Current Assets Rupees Rupees
Balances with Banks- in Current Account 884,945 1,969,336
Sales Contracts Awaiting Completion - Equity Shares 24,102,712 13,489,991
Application Money Pending Allotment - Equity Shares - 35,571,480
Collateralised Borrowing and Lending Obligation 91,483,525 -
Reverse Repos 87,439,975 11,255,396
Unit Subscriptions Receivable 915,100 5,413,500
Inter-Scheme Receivable - For Switch - In 4,660,043 1,790,942 - For Others - 2,000
Derivative Margin Deposit (Note 2.5) 100,000,000 100,000,000
Interest Receivable on :- Debentures / bonds 5,790,231 32,796,759 - Deposits 3,404,334 2,508,000 - Reverse Repos 11,252 2,479 - Collateralised Borrowing and Lending Obligation 11,208 - - Margin Deposits for Reverse Repo and Government Securities 84,020 -
Receivable on Outstanding Equity Future Contracts - 7,810,689
Receivable from Investment Manager 514 314,738
Investment Towards Unclaimed Redemption [(in 9,009.782 Units (Previous year: Nil units) (Market Value Rs. 1,31,312 (Previous year: Nil)) of HSBC Cash Fund - Growth Option) (Note 14)] 127,659 -
TOTAL 318,915,518 212,925,310
HSBC MUTUAL FUND - HSBC DYNAMIC FUND
Schedules forming part of the Balance Sheet as at March 31, 2009
and the Revenue Account for the year ended March 31, 2009
2
SCHEDULE 4 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008Unit Capital Rupees Units Rupees Units
Growth Option
Issued and Subscribed :
Units of Rs. 10 each fully paid up 2,243,747,884 224,374,788.387 2,243,747,884 224,374,788.387
Outstanding:
Initial Issue and Subscription - - 2,243,747,884 224,374,788.387
At the beginning of the year / period 2,050,089,279 205,008,927.831 - -
Issued during the year / period 155,554,534 15,555,453.448 374,072,286 37,407,228.589
2,205,643,813 220,564,381.279 2,617,820,170 261,782,016.976
Redeemed during the year / period 303,162,804 30,316,280.414 567,730,891 56,773,089.145
At the end of the year / period 1,902,481,009 190,248,100.865 2,050,089,279 205,008,927.831
Dividend Option
Issued and Subscribed :
Units of Rs. 10 each fully paid up 2,334,936,263 233,493,626.288 2,334,936,263 233,493,626.288
Outstanding:
Initial Issue and Subscription - - 2,334,936,263 233,493,626.288
At the beginning of the year / period 2,142,844,422 214,284,442.273 - -
Issued during the year / period 126,156,111 12,615,611.127 360,564,762 36,056,476.242
2,269,000,533 226,900,053.400 2,695,501,025 269,550,102.530
Redeemed during the year / period 460,280,710 46,028,070.996 552,656,603 55,265,660.257
At the end of the year / period 1,808,719,823 180,871,982.404 2,142,844,422 214,284,442.273
TOTAL 3,711,200,832 371,120,083.269 4,192,933,701 419,293,370.104
SCHEDULE 5 Dividend Option Total Dividend Option TotalReserves and Surplus March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008
Rupees Rupees Rupees Rupees
Unit Premium Reserve (Note 2.7)
At the beginning of the year / period (27,983,977) (43,034,277) - -
Added during the year / period (454,852) (720,852) (27,983,977) (43,034,277)
At the end of the year / period (28,438,828) (43,755,129) (27,983,977) (43,034,277)
Income Equalisation Reserve (Note 2.8)
Added during the year / period 64,680,041 91,608,166 (8,093,796) (11,091,064)
Transferred to Revenue Account (64,680,041) (91,608,166) 8,093,796 11,091,064
At the end of the year / period - - - -
Reserve Fund
At the beginning of the year / period (43,601,784) (97,052,951) - -
Balance Transferred from Revenue Account (595,586,269) (1,229,054,409) (43,601,784) (97,052,951)
At the end of the year / period (639,188,053) (1,326,107,360) (43,601,784) (97,052,951)
TOTAL (667,626,881) (1,369,862,489) * (71,585,761) (140,087,228) *
* The share of the Options of the Reserves and Surplus is as follows : March 31, 2009 March 31, 2008Rupees Rupees
Growth Option : Rs. (702,235,607) (68,501,467) Dividend Option : Rs. (667,626,882) (71,585,761) Total : Rs. (1,369,862,489) (140,087,228)
HSBC MUTUAL FUND - HSBC DYNAMIC FUND
Schedules forming part of the Balance Sheet as at March 31, 2009
and the Revenue Account for the year ended March 31, 2009
3
SCHEDULE 6Current Liabilities and Provisions March 31, 2009 March 31, 2008
Rupees RupeesCurrent Liabilities
Investment Management and Advisory Fees 2,145,701 3,763,875
Transfer Agent Fees and Expenses 306,281 560,662
Custodian Fees and Expenses 96,866 244,414
Audit Fees 100,000 50,000
Selling and Distribution Expenses 2,607,397 4,012,976
Purchase Contracts Awaiting Completion -Equity Shares 20,244,929 246,641,852
Unit Redemptions Payable 2,673,970 13,980,022
Inter Scheme payable
- For 'Switch - Out' 2,013,818 3,085,748
- For 'Others' - 6,506,000
Payable on Outstanding Equity Future Contracts 988,405 -
Dividend Payable - -
Unclaimed Redemption (Note 14) 286,239 -
Temporary Book Overdraft 7 773
Load Charges (Note 2.9) 19,720,952 16,917,497
Sundry Payables 1,225,310 2,583,312
TOTAL 52,409,875 298,347,131
SCHEDULE 7 April 01, 2008 to August 03, 2007 toInterest and Discount (Note 2.4) March 31, 2009 March 31, 2008
Rupees Rupees
Debentures / Bonds 17,340,340 10,185,085
Commercial Paper / Certificate of Deposit 11,956,445 12,610,807
Reverse Repos 9,078,272 36,498,288
Collateralized Borrowing and Lending Obligation 6,547,272 1,197,339
Government Securities 2,210,750 -
Deposits 20,111,446 8,893,617
Margin Deposit for Reverse Repo and Government Securities 84,020 -
TOTAL 67,328,545 69,385,136
HSBC MUTUAL FUND - HSBC DYNAMIC FUND
Schedules forming part of the Balance Sheet as at March 31, 2009
and the Revenue Account for the year ended March 31, 2009
4
Annexure 1
(i) Transactions during the Year
Nature of Transaction Sponsor Investment ManagerAssociate of
Investment Manager
Schemes under Common Control of
Sponsor Total
Purchase of Investments - - - 2,285,159,407 2,285,159,407 Previous Year - - - 6,331,000,445 6,331,000,445
Sale of Investments - - - 3,383,370,888 3,383,370,888 Previous Year - - - 2,814,486,072 2,814,486,072
Investment Management and Advisory Fees - 33,826,891 - - 33,826,891 Previous Year - 29,365,941 - - 29,365,941
Brokerage/ Commission on Distribution of Units - - 6,097,974 - 6,097,974 Previous Year - - 36,171,822 - 36,171,822
Brokerage/ Commission on Purchase/ Sale of Investments 750,929 - - - 750,929 Previous Year 747,000 - - - 747,000
Clearing Charges - - 1,169,577 - 1,169,577 Previous Year - - 742,479 - 742,479
Charges for Services Provided by Bank - - 1,292 - 1,292 Previous Year - - 8,379 - 8,379
(ii) Outstanding As At Year End
Nature of Transaction Sponsor Investment ManagerAssociate of
Investment Manager
Schemes under Common Control of
Sponsor Total
Investment Management and Advisory Fees Payable - 2,145,701 - - 2,145,701 Previous Year - 3,763,875 - - 3,763,875
Brokerage/ Commission Payable for Distribution of Units - - 593,189 - 593,189 Previous Year - - 1,135,952 - 1,135,952
Other Payables - 204 - - 204 Previous Year - - - 6,506,000 6,506,000
Other Receivables - 718 - - 718 Previous Year - 314,738 - 2,000 316,738
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control ofthe Sponsor.
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Purchase of InvestmentsHSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 993,429,891 1,223,902,265 HSBC Cash Fund 491,828,135 3,338,047,042 HSBC Fixed Term Series 46 229,242,575 - HSBC Interval Fund - Plan I - 703,942,973
Sale of InvestmentsHSBC Cash Fund 2,454,382,683 2,286,758,836 HSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 535,205,517 451,507,369
Other PayablesHSBC Unique Opportunities Fund - 6,000,000
Other ReceivablesHSBC Tax Saver Equity Fund - 2,000
5
Description Quantity Market /Fair ValueRupees
Equity Shares (91.29 %)Auto (4.66 %)
Hero Honda Motors Limited @ 72,000 77,122,800 77,122,800
Banks (14.32 %)HDFC Bank Limited @ 87,000 84,685,800 State Bank of India @ 50,000 53,355,000 ICICI Bank Limited @ 153,000 50,918,400 Punjab National Bank 117,000 48,139,650
237,098,850 Construction Project (2.92 %)
Larsen & Toubro Limited @ 72,000 48,340,800 48,340,800
Consumer Non Durables (19.35 %)I T C Limited @ 945,000 174,683,250 United Spirits Limited 117,000 75,927,150 Colgate Palmolive India Limited 148,000 69,737,600
320,348,000 Diversified (5.16 %)
Hindustan Unilever Limited @ 360,000 85,500,000 85,500,000
Industrial Capital Goods (4.93 %)Bharat Heavy Electricals Limited 54,000 81,569,700
81,569,700 Oil (7.60 %)
Oil and Natural Gas Corporation Limited 90,000 70,218,000 Cairn India Limited @ 302,238 55,642,016
125,860,016 Petroleum Products (10.71 %)
Reliance Industries Limited @ 81,000 123,504,750 Hindustan Petroleum Corporation Limited 200,000 53,850,000
177,354,750 Pharmaceuticals (9.36 %)
Lupin Limited 91,232 62,452,866 Cipla Limited 263,162 57,908,798 IPCA Laboratories Limited 104,929 34,673,788
155,035,452 Power (6.28 %)
Power Grid Corporation of India Limited 630,000 60,228,000 CESC Limited 207,000 43,677,000
103,905,000 Software (4.68 %)
Infosys Technologies Limited 58,500 77,448,150 77,448,150
Telecom - Services (10.04 %)Bharti Airtel Limited @ 190,500 119,205,375 IDEA Cellular Limited @ 937,695 46,978,520
166,183,895 Total (Cost Rs. 1,750,429,287) 1,655,767,413
Non-Convertible Debentures / Bonds Listed / Awaiting listing (8.71 %)Petroleum Products (35.54 %)
11.00% Indian Oil Corporation Limited 2018 $ 50 56,180,578 56,180,578
Finance (58.65 %)8.70% Power Finance Corporation Limited 2010 10 10,160,470 11.45% Rural Electrification Corporation Limited 2010 $ 11 11,636,459 8.65% Rural Electrification Corporation Limited 2019 20 19,426,300 9.45% Rural Electrification Corporation Limited 2013 50 51,475,200
92,698,429 Finance & Term Lending (5.81 %)
9.15% National Bank For Agricultural and Rural Development Limited 2010 $ 9 9,186,280 9,186,280
Total (Cost Rs. 159,421,648) 158,065,287 TOTAL INVESTMENTS (Cost Rs. 1,909,850,935) 1,813,832,700
Equity DerivativesShort Futures(100 %)
Bharti Airtel Limited - Futures - April 2009 (42.30 %) 32,000 19,897,600 S&P CNX Nifty - Futures - April 2009 (57.70 %) 9,000 27,137,250
Total 47,034,850
Deposits (10.51 %)^ Tenure Face Value6.3 % Standard Chartered Bank 91 100,000,000 7.5 % Axis Bank 92 90,000,000 7.2 % Development Bank of Singapore 178 40,000,000 6.7 % Development Bank of Singapore 182 16,000,000 Total Deposits 246,000,000
^ Denotes Percentage to Net Asset Value.
$ Fair value of non traded and thinly traded debt securities as determined by HSBC Asset Management (India) Private Limitedunder procedures approved by the Board of Trustees in accordance with the guidelines for valuation of securities for Mutualfunds dated Septrmber 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India.
@ Investment in companies which have invested more than five percent of the net asset value of any schemes of HSBC MutualFund.
Confirmation has been received from JP Morgan Chase Bank, Mumbai Branch at the end of the financial period for theinvestments held by them.
HSBC MUTUAL FUND - HSBC DYNAMIC FUND
Statement of Portfolio Holding as at March 31, 2009
(Referred to in Schedule 1 to the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009 )
6
HSBC MUTUAL FUND-HSBC DYNAMIC FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
SCHEDULE 8
1Notes to the Financial Statements
1 Organisation
HSBC Dynamic Fund (the “Scheme”) is an open-ended scheme of HSBC Mutual Fund (the “Fund”) and was launched on August 03, 2007. HSBC Mutual Fund has been sponsored by HSBC Securities and Capital Markets (India) Private Limited. HSBC Asset Management (India) Private Limited incorporated under the Companies Act, 1956 has been appointed as the asset management company. The duration of the Scheme is perpetual. The Scheme closed for initial subscription on August 30, 2007 and reopened for issue and redemption of units on September 28, 2007. The investment objective of the Scheme is to provide long term capital appreciation by allocating funds in equity and equity related instruments and also has the flexibility to move, entirely if required, into debt instruments when the view on equity markets seems negative. The Scheme has two Options – Growth Option and Dividend Option. The Scheme will not declare dividend under the Growth Option in normal circumstances. The income earned on such units will remain invested within the Scheme and will be reflected in the net asset value.
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 “Regulations”) and amendments thereto, as applicable.
2.2 Portfolio Valuation
Investments are stated at market / fair value at the Balance Sheet date/date of determination. In valuing the Scheme’s investments:
i. Equity securities listed on a recognized stock exchange are valued at the last quoted closing
price on the National Stock Exchange of India Limited (NSE). If on a particular valuation date, a security is not traded on NSE, the value at which it is traded on Bombay Stock Exchange Limited (BSE) is used. If no sale is reported at that time, the last quoted closing price on the principal stock exchange on which the security is traded is used when it is not more than thirty days prior to the valuation date.
ii. Non-traded and thinly traded equity securities, including those not traded within thirty days prior to the valuation date are valued at fair value as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India (SEBI).
HSBC MUTUAL FUND-HSBC DYNAMIC FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
iii. Equity shares awaiting listing are valued at fair value as determined in good faith by HSBC
Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund.
iv. Debt securities listed on a recognised stock exchange are valued at the last quoted closing price on the National Stock Exchange of India Limited (NSE). If no sale is reported at that time, such securities are valued at fair value as determined in good faith by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund.
v. Government securities are valued at prices obtained from The Credit Rating Information Services of India Limited in accordance with the guidelines for valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by SEBI.
vi. Non-traded and thinly traded debt securities are valued at fair value as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India (SEBI).
vii. Privately placed debt securities are valued at fair value as determined in good faith by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund.
viii. Traded money market securities are valued at the yield at which they are traded on the valuation date. If no sale is reported at that time, such security is valued at the last traded price plus accretion of the difference between the face value and the last traded price. Non traded money market instruments are valued at cost plus accrued interest.
ix. Instruments bought on ‘repo’ basis are valued at the resale price after deduction of applicable interest up to the date of resale.
Following the issue of guidance note on accounting for investments in the financial statements of the mutual funds by the Institute of Chartered Accountants of India (pursuant to the Eleventh Schedule of the Regulations) net unrealised appreciation / depreciation in the value of investments and derivatives is determined separately for each category of investments and derivatives. In respect of each category of investments and derivatives, the net change in the unrealised appreciation if any, between two balance sheet dates / valuation dates is accounted through the Revenue Account and thereafter the net unrealised appreciation is transferred from the Revenue Account to the Unrealised Appreciation Reserve. The net depreciation if any, is accounted through the Revenue Account. Net unrealised appreciation is reduced from the distributable income at the time of income distribution. The loss on investments sold/transferred during the year/period is charged to the Revenue Account instead of being first adjusted against the provision for depreciation, if already created in the previous year/period as recommended in the Guidance Note. However the departure from the Guidance Note does not have any net impact on the net asset value of the options of the Scheme.
HSBC MUTUAL FUND-HSBC DYNAMIC FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
2.3 Securities Transaction
Investment securities transactions are accounted for on a trade date basis. The Scheme uses the average cost method for determining the realized gain or loss on sale of investments.
2.4 Investment Income
Dividend and interest income are recorded on an accrual basis.
2.5 Derivatives The Scheme enters into derivative transactions in equity/ index futures for the purpose of hedging and
portfolio balancing.
“Derivative margin deposit” representing the margin towards equity derivative contracts entered into by the Scheme is disclosed under “Other Current Assets”.
Futures
• Futures contracts are marked to market daily at the futures settlement price as determined by the exchange. The variation margin calculated as the difference between the trade price or the previous day’s settlement price, as the case may be, and the current day’s settlement price is recorded as a receivable or payable. • When a contract is closed (squared off)/ settled (on expiry), the difference between the final settlement / square-off price and the contract price is recognised in the Revenue Account. If more than one futures contracts in respect of the same stock / index and expiry date, to which the squared off / settled contract pertains, is outstanding at the time of square off / settlement of the contract, the average method is followed for determining the gain or loss. • As at the Balance Sheet date / date of determination, all open futures positions are valued at the futures settlement price as determined by the exchange where it is traded. The unrealised appreciation / depreciation on all open positions is considered for determining the net asset value.
2.6 Net Asset Value for Growth/Dividend Options
The net asset value of the units of the Scheme is determined separately for the units issued under the Growth and Dividend Options. For reporting the net asset value for the 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 units outstanding.
2.7 Unit Premium Reserve Upon issue and redemption of units, the net premium or discount to the face value of units is adjusted
against the unit premium reserve of the Scheme, after an appropriate portion of the issue proceeds and redemption payout is credited or debited respectively to the income equalization reserve.
HSBC MUTUAL FUND-HSBC DYNAMIC FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
The unit premium reserve is available for dividend distribution except to the extent it is represented by unrealized net appreciation in value of investments.
2.8 Income Equalization Reserve
The net distributable income relating to units issued / repurchased is transferred to / from income equalization reserve for determining the net surplus / deficit, transferred from / to unit premium reserve.
2.9 Load Charges Load collected is retained under a separate account in the Scheme and is used to meet the selling and distribution expenses.
3 Investment Management and Advisory Fees
The Scheme has paid or provided for investment management and advisory fees payable to HSBC
Asset Management (India) Private Limited for managing the Scheme at an average annual rate of
1.08% of the average daily net asset value recorded by the Scheme. All costs, charges and expenses
incurred by HSBC Asset Management (India) Private Limited in the administration and execution of
the activities of the Scheme, except costs allowed to be charged to the Scheme under the Regulations,
are on their own account for which they receive investment management and advisory fees.
4 Trusteeship Fees
In accordance with the Deed of Trust dated February 7, 2002 between HSBC Securities and Capital
Markets (India) Private Limited (“The Settlor”) and the Board of Trustees of HSBC Mutual Fund, the
Fund has paid or provided for a fee not exceeding Rs.20,000 for each meeting of the Board of
Trustees attended by such Trustee not affiliated with the Settlor
5 Custodian Fees
J P Morgan Chase Bank provides custodial services to the Scheme for which it receives custody fees including safekeeping.
6 Income Taxes
No provision for income tax is made as the Scheme qualifies as a recognized mutual fund under Section 10(23D) of the Income Tax Act, 1961.
HSBC MUTUAL FUND-HSBC DYNAMIC FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
7 Aggregate Appreciation and Depreciation In Value of Investments
0Aggregate appreciation and depreciation in value of investments are as follows:
March 31, 2009 (Rupees)
March 31, 2008 (Rupees)
Equity Shares -Appreciation 103,451,368 49,719,389 -Depreciation 198,113,243 447,766,262 Non Convertible Debentures and Bonds Listed / Awaiting Listing
-Appreciation 384,760 5,034
-Depreciation 1,741,120 1,158,154
Privately Placed Non Convertible Debentures / Bonds
- Appreciation - -
- Depreciation - 6,072
Equity Futures -Appreciation - 163,025
-Depreciation 865,408 494,855
8 Aggregate Fair Value of Non – Traded/ Privately Placed Investments Aggregate fair value of non-traded (including private placement) investments as determined by HSBC Asset Management India Private Limited under the procedures approved by the Board of Trustees as at March 31, 2009 is Rs. 77,003,317.
9 Aggregate Value of Purchases and Sale of Investments
The aggregate value of investments securities purchased and sold during the financial year (excluding
accretion of discount of Rs. 11,758,508) is Rs. 10,072,387,041 and Rs. 10,882,064,228 respectively being
321.53% and 347.37% of the average daily net assets.
10 Income and Expenses
The total income (including net loss on sale of investments and derivatives and net change in unrealized
depreciation in the value of investments and derivatives) and expenditure during the year is
Rs.(1,247,677,788) and Rs. 72,984,787 respectively being (39.83) % and 2.33 % of the average daily net
assets.
HSBC MUTUAL FUND-HSBC DYNAMIC FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
11 Equity Derivatives Disclosures:
Futures Details of open interest in equity futures as at March 31, 2009.
Underlying Asset's Name Number of contracts Units Outstanding Short
Bharti Airtel Limited 64 (32,000)
S&P CNX Nifty 180 (9,000)
Notional value of futures contracts sold by the Scheme and outstanding as on March 31, 2009 aggregates to Rs. 47,034,850.
Net Profit on futures transactions recognized in the Revenue Account for the year ended March 31, 2009
aggregates to Rs. 32,507,071. 12 Disclosure Under Regulation 25(8) of the Securities and Exchange Board of India (Mutual Funds )
Regulation, 1996 as amended and in accordance with Accounting Standard 18 on ‘Related Party Disclosures’ issued by the Institute of Chartered Accountants of India (ICAI)
The Scheme has entered into transactions with certain related parties. The information required in this regard in accordance with Accounting Standard 18 on ‘Related Party Disclosures’ issued by the Institute of Chartered Accountants of India and regulation 25(8) of SEBI Regulation, is provided below : I Related Party Relationships
Name Description of relationship (i) HSBC Securities and Capital Markets (India) Private Limited Sponsor of the Fund
(ii) HSBC Asset Management (India) Private Limited Investment Manager to the Schemes of HSBC Mutual Fund
(iii) The Hong Kong and Shanghai Banking Corporation Limited Associate of the Investment Manager (iv) Schemes of the Fund, Under Common Control of the Sponsor
HSBC Advantage India Fund HSBC Cash Fund HSBC Emerging Market Fund HSBC Equity Fund HSBC Fixed Term Series 21 upto April 02, 2008 HSBC Fixed Term Series 22 upto April 22, 2008 HSBC Fixed Term Series 23 upto April 02, 2008 HSBC Fixed Term Series 24 upto December 15, 2008 HSBC Fixed Term Series 25 upto April 23, 2008 HSBC Fixed Term Series 27 upto April 02, 2008 HSBC Fixed Term Series 28 upto May 26, 2008 HSBC Fixed Term Series 30
HSBC MUTUAL FUND-HSBC DYNAMIC FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
HSBC Fixed Term Series 32 upto July 10, 2008 HSBC Fixed Term Series 33 upto September 08, 2008 HSBC Fixed Term Series 35 upto September 18, 2008 HSBC Fixed Term Series 36 upto October 07, 2008 HSBC Fixed Term Series 37 upto October 22, 2008 HSBC Fixed Term Series 41 HSBC Fixed Term Series 42 HSBC Fixed Term Series 44 HSBC Fixed Term Series 45 HSBC Fixed Term Series 46 HSBC Fixed Term Series 47 upto June 26, 2008 HSBC Fixed Term Series 48 with effect from March 28, 2008 upto October 07, 2008 HSBC Fixed Term Series 49 HSBC Fixed Term Series 50 with effect from April 17, 2008 HSBC Fixed Term Series 51 with effect from April 23, 2008 upto October 23, 2008 HSBC Fixed Term Series 52 with effect from April 24, 2008 HSBC Fixed Term Series 53 with effect from May 23, 2008 HSBC Fixed Term Series 54 with effect from May 27, 2008 HSBC Fixed Term Series 55 with effect from June 26, 2008 upto December 29, 2008 HSBC Fixed Term Series 56 with effect from July 25, 2008 HSBC Fixed Term Series 57 with effect from August 13, 2008 HSBC Fixed Term Series 58 with effect from July 22, 2008 upto November 05, 2008 HSBC Fixed Term Series 59 with effect from July 07, 2008 HSBC Fixed Term Series 60 with effect from July 10, 2008 upto October 13, 2008 HSBC Fixed Term Series 61 with effect from July 17, 2008 HSBC Fixed Term Series 62 with effect from August 22, 2008 HSBC Fixed Term Series 63 with effect from September 04, 2008 HSBC Fixed Term Series 66 with effect from September 18, 2008 HSBC Fixed Term Series 68 with effect from October 06, 2008 to January 14, 2009 HSBC Flexi Debt Fund HSBC Floating Rate Fund Long Term Plan HSBC Floating Rate Fund Short Term Plan HSBC Gilt Fund (Formerly, HSBC Gilt Fund – Short Term Plan) HSBC Income Fund Investment Plan HSBC Income Fund Short Term Plan HSBC India Opportunities Fund HSBC Interval Fund - Plan I upto November 20, 2008 HSBC Interval Fund - Plan II upto December 10, 2008 HSBC Interval Fund - Plan III upto December 17, 2008 HSBC Ultra Short Term Bond Fund (Formerly , HSBC Liquid Plus Fund) HSBC Midcap Fund HSBC MIP Fund Regular Plan HSBC MIP Fund Savings Plan HSBC Small Cap Fund HSBC Tax Saver Equity Fund HSBC Unique Opportunities Fund
HSBC MUTUAL FUND-HSBC DYNAMIC FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
(v) Key Management Personnel and their relatives:
Nelum Pahlaj Gidwani – Associate Trustee Naina Lal Kidwai – Chairman of the Investment Manager Vikramaditya – Director and the Chief Executive Officer of the Investment Manager with effect from July 16, 2008 Dr. Rudolf Apenbrink – Associate Tustee Ayaz Ebrahim – Director with effect from April 11, 2008 Sanjay Prakash – Director and the Chief Executive Officer upto July 16, 2008 Avan Nelum Gidwani* – Relative of a Key Management Personnel Rashid K Kidwai* – Relative of a Key Management Personnel Rumaan Kidwai* – Relative of a Key Management Personnel Kemaya Lal Kidwai* – Relative of a Key Management Personnel Amrita Vikramaaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Raaghav Aaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Rhea Aaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Gabriele A Apenbrink* – Relative of a Key Management Personnel Christian R Apenbrink* – Relative of a Key Management Personnel Katharina S Apenbrink* – Relative of a Key Management Personnel Yasmin Ebrahim* – Relative of a Key Management Personnel with effect from April 11, 2008 Daanyal Ebrahim* – Relative of a Key Management Personnel with effect from April 11, 2008 Nilufer Prakash* – Relative of a Key Management Personnel upto July 16, 2008 Tara Prakash* – Relative of a Key Management Personnel upto July 16, 2008 Anahita Prakash* – Relative of a Key Management Personnel upto July 16, 2008 * There were no transactions during the year.
II The following transactions occurred with the related parties during the year in the ordinary course of
business: Refer Annexure I
III During the year, HSBC Securities and Capital Markets (India) Private Limited, the Sponsor was paid
brokerage aggregating Rs. 750,929 on purchase and sale of investments. The Hong Kong & Shanghai
Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private
Limited was paid collection/bank charges amounting to Rs. 1,292 and brokerage amounting to Rs.
6,097,974 for procuring unit subscriptions for the Scheme and clearing member charges on derivative
transactions Rs. 1,169,577. The brokerage paid was at rates similar to those offered to other brokers /
distributors.
13 Disclosure under Regulation 25(11) of the Securities and Exchange Board of India (Mutual Funds)
Regulations, 1996 as amended
HSBC Mutual Fund has made investments in companies, which hold/ have held units in excess of 5% of the net asset value of any Scheme of HSBC Mutual Fund which have been listed in Annexure II. The investments comprise equity shares, debentures/ bonds, commercial paper, fixed deposits and other debt instruments and were made solely on the basis of sound fundamentals of these companies.
HSBC MUTUAL FUND-HSBC DYNAMIC FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
14 Unclaimed Redemptions:
As at March 31, 2009, unclaimed redemptions aggregate Rs. 286,239 payable to 13 investors.
16 Prior Year’s Figures
Previous year’s figures have been re-grouped / re-arranged where appropriate.
Signatures to the Schedules 1 to 8 forming part of the Balance Sheet and the Revenue Account.
PARTHA GHOSH Partner Membership No. F-55913 For and on behalf of PRICE WATERHOUSE Chartered Accountants
For Board of Trustees of HSBC Mutual Fund
For HSBC Asset Management (India) Private Limited
Trustee
Vikramaaditya Director and Chief Executive Officer
Trustee
Director
Place: Mumbai Date :
Fund Manager(s)
Auditors' Report To the Board of Trustees of
HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Emerging Markets Fund ("The Scheme") as at
March 31, 2009 and the related Revenue Account for the year ended on that date, both of which we have signed
under reference to this report. These financial statements are the responsibility of the Board of Trustees of HSBC
Mutual Fund and the Management of HSBC Asset Management (India) 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. Our procedures included confirmation of securities owned and unit
balances as at March 31, 2009 by correspondence with the custodian/others and registrar and transfer agent
respectively. 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,
(i) 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 also give respectively, a true and fair view of the state of affairs of HSBC Mutual Fund –
HSBC Emerging Markets Fund as at March 31, 2009 and its net deficit for the year on that date.
(ii) The Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended on that date,
together with the notes thereon have been prepared in all material respects 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.
PARTHA GOSH Partner Membership No. F/55913
For and on behalf of
PRICE WATERHOUSE
Chartered Accountants
Place: Mumbai
Date: July 06, 2009
March 31, 2009 March 31, 2008Schedule Rupees Rupees
ASSETS
Investments 1 809,542,445 498,340,557
Other Current Assets 2 41,965,069 566,418,344
TOTAL 851,507,514 1,064,758,901
LIABILITIES
Unit Capital 3 1,352,253,861 1,022,632,022
Reserves and Surplus 4 (506,369,086) 3,073,497
Current Liabilities and Provisions 5 5,622,739 39,053,382
TOTAL -0.57 851,507,514 1,064,758,901
March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008 March 31, 2008
RECONCILIATION OF NET ASSET VALUE PER UNIT Growth Option Dividend Option Total Growth Option Dividend Option Total
Rupees Rupees Rupees Rupees Rupees Rupees
Net Assets as per Balance Sheet (Total Assets less Current Liabilities and Provisions) (Note 2.6) 527,343,177 318,541,598 845,884,775 613,973,190 411,732,329 1,025,705,519
Number of Units in Issue 84,302,484.733 50,922,901.492 61,213,343.633 41,049,858.510
Net Asset Value per Unit 6.2554 6.2554 10.0301 10.0301
Notes to the Financial Statements. 7
This is the Balance Sheet referred to in our report of even date.
PARTHA GHOSH For Board of Trustees of For HSBC Asset Management (India)
Partner HSBC Mutual Fund Private Limited
Membership No. F-55913For and on behalf of
PRICE WATERHOUSE
Chartered Accountants VikramaadityaTrustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai
Date : 06 July 2009 Fund Manager(s)
The Schedules referred to herein form an integral part of the Financial Statements.
HSBC MUTUAL FUND - HSBC EMERGING MARKETS FUND
Balance Sheet as at March 31, 2009
0
April 01, 2008 to January 28, 2008 toMarch 31, 2009 March 31, 2008
Schedule Rupees Rupees
INCOME AND GAINS
Interest 6 5,738,739 5,966,240
Realised Profit on Foreign Currency Transactions (Note 2.3 ) - 1,000,000
TOTAL 5,738,739 6,966,240
EXPENSES AND LOSSES
Realised Loss in Foreign Currency Transaction (Note 2.3) 43,989
Net Loss on Sale of Investments (Note 2.4) 10,508,992 59,842
Investment Management and Advisory Fees (Note 3) 501,942 63,544
Transfer Agent Fees and Expenses 1,571,475 47,212
Trusteeship Fees and Expenses (Note 4) 4,151 342
Custodian Fees and Expenses (Note 5) 284,849 13,679
Audit Fees 25,000 10,000
Selling and Distribution Expenses 8,294,732 161,131
Other Operating Expenses 775,054 151,722
TOTAL 22,010,184 507,472
Less: Expenses to be Reimbursed by the Investment Manager (Note 7) 3,934,805 90,641
TOTAL 18,075,379 416,831
Net Realised (Losses)/Gains for the Year/Period (12,336,640) 6,549,409
Net Change in Unrealised Depreciation in Value of Investments and Foreign Currency Transactions (497,585,301) (3,471,943)
Net (Deficit) / (Surplus) for the Year/Period (509,921,941) 3,077,466
April 01, 2008 to January 28, 2008 toMarch 31, 2009 March 31, 2008
Rupees Rupees
Net (Deficit)/Surplus for the Year/Period (509,921,941) 3,077,466
Transfer from Income Equalisation Reserve (Note 2.8) (25,485,078) 33,151
Balance Transferred to Reserve Fund (535,407,019) 3,110,617
Notes to the Financial Statements. 7
This is the Revenue Account referred to in our report of even date.
PARTHA GHOSH For Board of Trustees of For HSBC Asset Management (India)
Partner HSBC Mutual Fund Private Limited
Membership No. F-55913For and on behalf of
PRICE WATERHOUSE
Chartered Accountants VikramaadityaTrustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai
Date : 06 July 2009 Fund Manager(s)
The Schedules referred to herein form an integral part of the Financial Statements.
HSBC MUTUAL FUND - HSBC EMERGING MARKETS FUND
Revenue Account for the year ended March 31, 2009
1
SCHEDULE 1 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008Investments Market Value Cost Market Value Cost(Notes 2.2, 2.3, 2.4, 8 and 9) Rupees Rupees Rupees Rupees
(Refer to the attached Statement of Portfolio Holding as at March 31, 2009)
Units in Mutual Fund 809,542,445 1,310,418,805 498,340,557 501,812,500
TOTAL 809,542,445 1,310,418,805 498,340,557 501,812,500
SCHEDULE 2 March 31, 2009 March 31, 2008Other Current Assets Rupees Rupees
Balances with Banks - in Current Account 19,924,496 8,942,674
Reverse Repos 8,662,658 554,641,829
Collateralized Borrowing and Lending Obligation 9,063,093 -
Unit Subscription Receivable 314,500 1,871,500
Inter-Scheme Receivable :- Switch-in 61,534 - - Others - 693,892
Interest Receivable on:- Reverse Repos 1,115 122,118 - Collateralized Borrowing and Lending Obligation 1,110 -
Receivable from Investment Manager 3,936,563 146,331
TOTAL 41,965,069 566,418,344
HSBC MUTUAL FUND - HSBC EMERGING MARKETS FUND
Schedules forming part of the Balance Sheet as at March 31, 2009
and the Revenue Account for the year ended March 31, 2009
2
SCHEDULE 3 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008Unit Capital Rupees Units Rupees Units
Growth Option
Issued and Subscribed :
Units of Rs.10 each fully paid up 612,212,613 61,221,261.269 612,212,613 61,221,261.269
Outstanding:
Initial Issue and Subscription - - 612,212,613 61,221,261.269
At the beginning of the year / period 612,133,437 61,213,343.633 - -
Issued during the year / period 420,926,157 42,092,615.754 2,246,558 224,655.809
1,033,059,594 103,305,959.387 614,459,171 61,445,917.078
Redeemed during the year / period 190,034,747 19,003,474.654 2,325,734 232,573.445
At the end of the year / period 843,024,847 84,302,484.733 612,133,437 61,213,343.633
Dividend Option
Issued and Subscribed :
Units of Rs.10 each fully paid up 409,157,986 40,915,798.638 409,157,986 40,915,798.638
Outstanding:
Initial Issue and Subscription - - 409,157,986 40,915,798.638
At the beginning of the year / period 410,498,585 41,049,858.510 - -
Issued during the year / period 220,579,637 22,057,963.784 1,730,843 173,084.262
631,078,222 63,107,822.294 410,888,829 41,088,882.900
Redeemed during the year / period 121,849,208 12,184,920.802 390,244 39,024.390
At the end of the year / period 509,229,014 50,922,901.492 410,498,585 41,049,858.510
TOTAL 1,352,253,861 135,225,386.225 1,022,632,022 102,263,202.143
HSBC MUTUAL FUND - HSBC EMERGING MARKETS FUNDSchedules forming part of the Balance Sheet as at March 31, 2009
and the Revenue Account for the year ended March 31, 2009
3
SCHEDULE 4 Total TotalReserves and Surplus March 31, 2009 March 31, 2008
Rupees Rupees
Unit Premium Reserve (Note 2.7 )
At the beginning of the year / period (37,120) -
Added during the year / period 25,964,437 (37,120)
At the end of the year / period 25,927,317 (37,120)
Income Equalisation Reserve (Note 2.8)
Added during the year / period (25,485,078) 33,151
Transferred to Revenue Account 25,485,078 (33,151)
At the end of the year / period - -
Reserve Fund
At the beginning of the year / period 3,110,617 -
Balance Transferred from Revenue Account (535,407,020) 3,110,617
At the end of the year / period (532,296,403) 3,110,617
TOTAL (506,369,086) * 3,073,497 *
* The share of the Options of the Reserves and Surplus is as follows : March 31, 2009 March 31, 2008
Growth Option : Rs. (315,681,670) 1,839,753
Dividend Option : Rs. (190,687,416) 1,233,744
Total : Rs. (506,369,086) 3,073,497
HSBC MUTUAL FUND - HSBC EMERGING MARKETS FUND
Schedules forming part of the Balance Sheet as at March 31, 2009
and the Revenue Account for the year ended March 31, 2009
4
SCHEDULE 5 March 31, 2009 March 31, 2008Current Liabilities and Provisions Rupees Rupees
Current Liabilities
Investment Management and Advisory Fees 27,627 63,544
Transfer Agent Fees and Expenses 84,711 47,212
Custodian Fees and Expenses 50,119 4,762
Audit Fees 25,000 10,000
Selling and Distribution Expenses 860,152 23,764,712
Unit Redemption Payable 2,097,185 1,821,997
Inter Scheme Payable - For 'Switch-Out' 2,181,084 483,672 - For 'Others' 40,000 9,050,685
Initial Issue and Subscription Money Refundable - 3,587,035
Temporary Book Overdraft 40,359 -
Sundry Payables 216,502 219,763
TOTAL 5,622,739 39,053,382
SCHEDULE 6 April 01, 2008 to January 28, 2008 toInterest (Note 2.5) March 31, 2009 March 31, 2008
Rupees Rupees
Reverse Repos 5,086,361 3,430,705
Collateralized Borrowing and Lending Obligation 652,378 2,535,535
TOTAL 5,738,739 5,966,240
HSBC MUTUAL FUND - HSBC EMERGING MARKETS FUND
Schedules forming part of the Balance Sheet as at March 31, 2009and the Revenue Account for the year ended March 31, 2009
5
Annexure 1
(i) Transactions during the Year/ Period
Nature of Transaction Sponsor Investment ManagerAssociate of
Investment Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their Relatives Total
Subscription of Units (including switch in and dividend reinvestment) - - - - 36,000 36,000 Previous Period - - - - - -
Investment Management and Advisory Fees - 501,942 - - - 501,942 Previous Period - 63,544 - - - 63,544
Brokerage/ Commission on Distribution of Units - - 16,768,200 - - 16,768,200 Previous Period - - - - - -
Reimbursement of Expenses - 3,934,805 - - - 3,934,805 Previous Period - 90,641 - - - 90,641
Charges for Services Provided by Bank - - 3,612 - - 3,612 Previous Period - - 100 - - 100
(ii) Outstanding As At Year/ Period End
Nature of Transaction Sponsor Investment ManagerAssociate of
Investment Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their Relatives Total
Investment Management and Advisory Fees Payable - 27,627 - - - 27,627 Previous Period - 63,544 - - - 63,544
Brokerage/ Commission Payable on Distribution of Units - - 406,698 - - 406,698 Previous Period - - 13,796,594 - - 13,796,594
Other Payables - - - 40,000 - 40,000 Previous Period - - - 9,050,685 - 9,050,685
Other Receivables - 3,936,564 - - - 3,936,564 Previous Period - 146,331 - 693,892 - 840,223
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control of the Sponsor.
April 01, 2008 to March 31, 2009
January 28, 2008 to March 31, 2008
Other PayablesHSBC Small Cap Fund 35,000 - HSBC Midcap Equity Fund 5,000 - HSBC Fixed Term Series 49 - 8,317,370
Other ReceivablesHSBC Small Cap Fund - 683,892
(iv) Disclosures in respect of material transactions with persons referred to in Note 13 (I)(v) for key management personneland their relatives
April 01, 2008 to March 31, 2009
January 28, 2008 to March 31, 2008
Subscription of Units (including switch in and dividend reinvestment)Sanjay Prakash 36,000 -
6
Description Quantity Market ValueUnits Rupees
Mutual Fund Units (100 %) HSBC GIF Global Emerging Markets Equity Fund 3,353,571 809,542,445
809,542,445 Total (Cost Rs. 1,310,418,805) 809,542,445 TOTAL INVESTMENT (Cost Rs. 1,310,418,805) 809,542,445
Confirmation has been received from JP Morgan Chase Bank, Mumbai Branch, at the end of the financialyear for the investments held by them.
for the year ended March 31, 2009 )
HSBC MUTUAL FUND - HSBC EMERGING MARKETS FUND
Statement of Portfolio Holding as at March 31, 2009
(Referred to in Schedule 1 to the Balance Sheet as at March 31, 2009 and the Revenue Account
7
HSBC MUTUAL FUND - HSBC EMERGING MARKETS FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
SCHEDULE 7
Notes to the Financial Statements
1 Organisation
HSBC Emerging Markets Fund (the “Scheme”) is an open-ended scheme of HSBC Mutual Fund (the “Fund”) and
was launched on January 28, 2008. HSBC Mutual Fund has been sponsored by HSBC Securities and Capital
Markets (India) Private Limited. HSBC Asset Management (India) Private Limited incorporated under the
Companies Act, 1956 has been appointed as the asset management company. The duration of the Scheme is
perpetual. The Scheme closed for initial subscription on February 25, 2008 and reopened for issue and redemption
of units on March 24, 2008. The investment objective of the Scheme is to provide long term capital appreciation
by investing in India and in the emerging markets, in equity and equity related instruments, share classes and units
/ securities issued by overseas mutual funds or unit trusts. The Scheme may also invest a limited proportion in
debt and money market instruments. The Scheme has two Options - Growth Option and Dividend Option. The Scheme will not declare dividend under the Growth Option in normal circumstances. The income earned on
such units will remain invested within the Scheme and will be reflected in the net asset value.
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 Portfolio Valuation
Investments are stated at market/fair value at the Balance Sheet date/date of determination. In valuing the
Scheme’s investments:
i. Units in mutual fund are valued at the net asset value of the investee scheme.
ii. Instruments bought on ‘repo’ basis are valued at the resale price after deduction of applicable interest up to the
date of resale.
iii. Traded money market securities are valued at the yield at which they are traded on the valuation date. If no sale is
reported at that time such security is valued at the last traded price plus accretion of difference between the face
value and last traded price. Non traded money market instruments are valued at cost price plus accrued interest.
Following the issue of guidance note on accounting for investments in the financial statements of the mutual
funds by the Institute of Chartered Accountants of India (pursuant to the Eleventh Schedule of the Regulations)
net unrealised appreciation / depreciation in the value of investments is determined separately for each category
of investments. In respect of each category of investments, the net change in the unrealised appreciation if any,
between two balance sheet dates / valuation dates is accounted through the Revenue Account and thereafter the
net unrealised appreciation is transferred from the Revenue Account to the Unrealised Appreciation Reserve. The
net depreciation if any, is accounted through the Revenue Account.
HSBC MUTUAL FUND - HSBC EMERGING MARKETS FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
Net unrealised appreciation is reduced from the distributable income at the time of income distribution.
The loss on investments sold/transferred during the year/period is charged to the Revenue Account instead of
being first being adjusted against the provision for depreciation, if already created in the previous year/period as
recommended in the Guidance Note. However the departure from the Guidance Note does not have any net
impact on the net asset value of the options of the Scheme.
2.3 Foreign Currency Translation
The books and records of the Fund are maintained in Indian rupees. Amounts denominated in or expected to
settle in foreign currencies are translated into Indian rupees on the following basis.
(i) Market value of investments, other assets and liabilities at the closing rate of exchange on the Balance
Sheet date / valuation date.
(ii) Purchases and sales of investments, income and expense at the rate of exchange prevailing on the
respective date of such transactions.
The Fund does not isolate that portion of the change in investment valuation resulting from changes in the
foreign exchange rates from the fluctuations arising from changes in the local market prices of securities held.
Such fluctuations are included in unrealised appreciation or depreciation on investments.
Net realised foreign exchange gains and losses arise from sales of foreign currency denominated securities,
currency gains or losses realised between trade and settlement dates of foreign currency denominated securities
transactions and the difference between the recorded amounts of foreign currency denominated dividends,
interest and expenses recorded in the Fund’s books and the Indian rupee equivalent amounts actually received
or paid. Net unrealised foreign exchange gains and losses arising from changes in value of assets and liabilities
denominated in foreign currency resulting from changes in foreign exchange rate are included in net unrealised
appreciation or depreciation in value of investments and foreign currency denominated assets and liabilities.
2.4 Securities Transaction
Investment securities transactions are accounted for on a trade date basis. The Scheme uses the average cost
method for determining the realized gain or loss on sale of investments.
2.5 Investment Income
Interest income is recorded on an accrual basis.
2.6 Net Asset Value for Growth / Dividend Options
The net asset value of the units of the Scheme is determined separately for units issued under the Growth and
Dividend Options. For reporting the net asset value for the 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 units outstanding.
2.7 Unit Premium Reserve
Upon issue and redemption of units, the net premium or discount to the face value of units is adjusted against the
unit premium reserve of the Scheme after an appropriate portion of the issue proceeds and redemption payout is
credited or debited respectively to the income equalization reserve.
HSBC MUTUAL FUND - HSBC EMERGING MARKETS FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
The unit premium reserve is available for dividend distribution except to the extent it is represented by unrealized
net appreciation in value of investments.
2.8 Income Equalization Reserve
The net distributable income relating to units issued / repurchased is transferred to / from income equalization
reserve for determining the net surplus / deficit, transferred from / to unit premium reserve.
2.9 Load Charges
Load collected is retained under a separate account in the Scheme and is used to meet the selling and distribution
expenses.
3 Investment Management and Advisory Fees
The Scheme has paid or provided for investment management and advisory fees payable to HSBC Asset
Management (India) Private Limited for managing the Scheme at an average annual rate of 0.05 % of the average
daily net asset value recorded by the Scheme. All costs, charges and expenses incurred by HSBC Asset
Management (India) Private Limited in the administration and execution of the activities of the Scheme, except
costs allowed to be charged to the Scheme under the Regulations, are on their own account for which they receive
investment management and advisory fees.
4 Trusteeship Fees
In accordance with the Deed of Trust dated February 7, 2002 between HSBC Securities and Capital Markets
(India) Private Limited (“The Settlor”) and the Board of Trustees of HSBC Mutual Fund, the Fund has paid or
provided for a fee not exceeding Rs. 20,000 for each meeting of the Board of Trustees attended by such Trustee
not affiliated with the Settlor.
5 Custodian Fees
JP Morgan Chase Bank provides custodial services to the Scheme for which it receives custody fees including
safekeeping.
6 Income Taxes
No provision for income tax is made as the Scheme qualifies as a recognized mutual fund under Section 10(23D)
of the Income Tax Act, 1961 of India.
7 Limitation on Expenses
The total expenses chargeable to the Scheme are limited to 0.75 % of the average daily net assets of the Scheme. HSBC Asset Management (India) Private Limited has borne Rs.39,34,805 in respect of the Scheme in excess of the above mentioned percentage of the average daily net assets to be charged to the Scheme as total expenses for the year.
HSBC MUTUAL FUND - HSBC EMERGING MARKETS FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
8 Aggregate Appreciation and Depreciation In Value of Investments
Aggregate appreciation and depreciation in value of investments are as follows:
March 31, 2009
(Rupees) March 31, 2008
(Rupees) Units in Mutual Fund
- Appreciation - -
- Depreciation 500,876,360 3,471,943
9 Aggregate Value of Purchase and Sale of Investments
The aggregate value of investments securities purchased and sold (including matured) during the year is Rs.
870,578,912 and 51,463,615 respectively being 86.76% and (5.13%) of the average daily net assets.
10 Income and Expenses
The total income net of net loss on sale of Investments, realized loss on foreign currency transactions and net
change in unrealized depreciation in the value of investments and Foreign Currency Transactions) and
expenditure during the year is Rs. (502,399,543) and Rs. 7,522,398 respectively being (50.07%) and 0.75% of the
average daily net assets.
11 Disclosure Under Regulation 25(8) of the Securities and Exchange Board of India (Mutual Funds )
Regulation, 1996 as amended and in accordance with Accounting Standard 18 on ‘Related Party
Disclosures’ issued by the Institute of Chartered Accountants of India (ICAI)
The Scheme has entered into transactions with certain related parties. The information required in this regard in accordance with Accounting Standard 18 on ‘Related Party Disclosures’ issued by the Institute of Chartered Accountants of India and regulation 25(8) of SEBI Regulation, is provided below:
I Related party relationships Name Description of relationship (i) HSBC Securities and Capital Markets (India) Private Limited Sponsor of the Fund
(ii) HSBC Asset Management (India) Private Limited Investment Manager to the Schemes of HSBC Mutual Fund
(iii) The Hongkong and Shanghai Banking Corporation Limited Associate of the Investment Manager
(iv) Schemes of the Fund, under common control of the Sponsor
HSBC MUTUAL FUND - HSBC EMERGING MARKETS FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
HSBC Advantage India Fund HSBC Cash Fund HSBC Dynamic Fund HSBC Equity Fund HSBC Fixed Term Series 21 upto April 02, 2008 HSBC Fixed Term Series 22 upto April 22, 2008 HSBC Fixed Term Series 23 upto April 02, 2008 HSBC Fixed Term Series 24 upto December 15, 2008 HSBC Fixed Term Series 25 upto April 23, 2008 HSBC Fixed Term Series 27 upto April 02, 2008 HSBC Fixed Term Series 28 upto May 26, 2008 HSBC Fixed Term Series 30 HSBC Fixed Term Series 32 upto July 10, 2008 HSBC Fixed Term Series 33 upto September 08, 2008 HSBC Fixed Term Series 35 upto September 18, 2008 HSBC Fixed Term Series 36 upto October 07, 2008 HSBC Fixed Term Series 37 upto October 22, 2008 HSBC Fixed Term Series 41 HSBC Fixed Term Series 42 HSBC Fixed Term Series 44 HSBC Fixed Term Series 45 HSBC Fixed Term Series 46 HSBC Fixed Term Series 47 upto June 26, 2008 HSBC Fixed Term Series 48 with effect from March 28, 2008 upto October 07, 2008 HSBC Fixed Term Series 49 HSBC Fixed Term Series 50 with effect from April 17, 2008 HSBC Fixed Term Series 51 with effect from April 23, 2008 upto October 23, 2008 HSBC Fixed Term Series 52 with effect from April 24, 2008 HSBC Fixed Term Series 53 with effect from May 23, 2008 HSBC Fixed Term Series 54 with effect from May 27, 2008 HSBC Fixed Term Series 55 with effect from June 26, 2008 upto December 29, 2008 HSBC Fixed Term Series 56 with effect from July 25, 2008 HSBC Fixed Term Series 57 with effect from August 13, 2008 HSBC Fixed Term Series 58 with effect from July 22, 2008 upto November 05, 2008 HSBC Fixed Term Series 59 with effect from July 07, 2008 HSBC Fixed Term Series 60 with effect from July 10, 2008 upto October 13, 2008 HSBC Fixed Term Series 61 with effect from July 17, 2008 HSBC Fixed Term Series 62 with effect from August 22, 2008 HSBC Fixed Term Series 63 with effect from September 04, 2008 HSBC Fixed Term Series 66 with effect from September 18, 2008 HSBC Fixed Term Series 68 with effect from October 06, 2008 to January 14, 2009 HSBC Flexi Debt Fund HSBC Floating Rate Fund Long Term Plan HSBC Floating Rate Fund Short Term Plan HSBC Gilt Fund (Formerly, HSBC Gilt Fund – Short Term Plan) HSBC Income Fund Investment Plan HSBC Income Fund Short Term Plan HSBC India Opportunities Fund HSBC Interval Fund - Plan I upto November 20, 2008 HSBC Interval Fund - Plan II upto December 10, 2008 HSBC Interval Fund - Plan III upto December 17, 2008 HSBC Ultra Short Term Bond Fund (Formerly , HSBC Liquid Plus Fund)
HSBC MUTUAL FUND - HSBC EMERGING MARKETS FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
HSBC Midcap Fund HSBC MIP Fund Regular Plan HSBC MIP Fund Savings Plan HSBC Small Cap Fund HSBC Tax Saver Equity Fund HSBC Unique Opportunities Fund
(v) Key Management Personnel and their relatives:
Nelum Pahlaj Gidwani – Associate Trustee Naina Lal Kidwai – Chairman of the Investment Manager Vikramaditya – Director and the Chief Executive Officer of the Investment Manager with effect from July 16, 2008 Dr. Rudolf Apenbrink – Associate Tustee Ayaz Ebrahim – Director with effect from April 11, 2008 Sanjay Prakash – Director and the Chief Executive Officer upto July 16, 2008 Avan Nelum Gidwani* – Relative of a Key Management Personnel Rashid K Kidwai* – Relative of a Key Management Personnel Rumaan Kidwai* – Relative of a Key Management Personnel Kemaya Lal Kidwai* – Relative of a Key Management Personnel Amrita Vikramaaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Raaghav Aaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Rhea Aaditya*– Relative of a Key Management Personnel with effect from July 16, 2008 Gabriele A Apenbrink*– Relative of a Key Management Personnel Christian R Apenbrink*– Relative of a Key Management Personnel Katharina S Apenbrink*– Relative of a Key Management Personnel Yasmin Ebrahim*– Relative of a Key Management Personnel with effect from April 11, 2008 Daanyal Ebrahim*– Relative of a Key Management Personnel with effect from April 11, 2008 Nilufer Prakash*– Relative of a Key Management Personnel upto July 16, 2008 Tara Prakash*– Relative of a Key Management Personnel upto July 16, 2008 Anahita Prakash*– Relative of a Key Management Personnel upto July 16, 2008 * There were no transactions during the year.
II The following transactions occurred with the related parties during the year in the ordinary course of business:
Refer Annexure I
III During the year, The Hong Kong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset
Management (India) Private Limited was paid collection/bank charges amounting to Rs. 3,612 and brokerage
amounting to Rs. 16,768,200 for procuring unit subscriptions for the Scheme. The brokerage paid was at
rates similar to those offered to other distributors.
Further, The Hong kong and Shanghai Banking Corporation Limited, an associate of the Sponsor, is on the panel
of bankers with whom HSBC Mutual Fund places money on fixed deposits and enters into reverse repo
transactions from time to time at competitive rates.
HSBC MUTUAL FUND - HSBC EMERGING MARKETS FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
12 Disclosure under Regulation 25(11) of the Securities and Exchange Board of India (Mutual Funds)
Regulations, 1996 as amended
HSBC Mutual Fund has made investments in companies, which holds/ has held units in excess of 5% of the net
asset value of any Scheme of HSBC Mutual Fund which have been listed in Annexure II.
The investments comprise equity shares, debentures/ bonds, commercial paper, fixed deposits and other debt
instruments and were made solely on the basis of sound fundamentals of these companies.
13 Prior Period’s Figures
Previous period’s figures which are for the period January 28, 2008 to March 31, 2008 have been re-grouped / re-
arranged where appropriate.
Signatures to the Schedules 1 to 7 forming part of the Balance Sheet and the Revenue Account.
PARTHA GHOSH Partner Membership No. F-55913 For and on behalf of PRICE WATERHOUSE Chartered Accountants
For Board of Trustees of
HSBC Mutual Fund
For HSBC Asset Management (India)
Private Limited
Trustee
Vikramaaditya
Director and Chief Executive Officer
Trustee
Director
Place: Mumbai
Date :
Fund Manager(s)
Auditors' Report To the Board of Trustees of HSBC MUTUAL FUND 1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Small Cap Fund ("The Scheme") as
at March 31, 2009, and the related Revenue Account for the year ended on that date both of which we have signed under reference to this report. These financial statements are the responsibility of the Board of Trustees of HSBC Mutual Fund and the Management of HSBC Asset Management (India) 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. Our procedures included confirmation of securities owned and unit capital balances as at March 31, 2009 by correspondence with the custodian/others and registrar and transfer agent respectively. 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,
(i) The Balance Sheet, 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 also give respectively, a true and fair view of the state of affairs of HSBC Mutual Fund – HSBC Small Cap Fund as at March 31, 2009 and its net deficit for the year on that date.
(ii) The Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended on that date, together with the notes thereon have been prepared in all material respects 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.
PARTHA GHOSH Partner Membership No. F / 55913 For and on behalf of PRICE WATERHOUSE Chartered Accountants Place: Mumbai Date: July 06, 2009
March 31, 2009 March 31, 2008Schedule Rupees Rupees
ASSETS
Investments 1 281,208,992 157,502,843
Deposits 2 41,000,000 -
Other Current Assets 3 20,280,627 728,288,795
Deferred Revenue Expenditure 4 30,985,410 50,904,876
TOTAL 373,475,029 936,696,514
LIABILITIES
Unit Capital 5 733,395,369 848,414,592
Reserves and Surplus 6 (377,822,730) 11,319,217
Current Liabilities and Provisions 7 17,902,390 76,962,705
TOTAL 0.16 373,475,029 936,696,514
March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008 March 31, 2008RECONCILIATION OF NET ASSET VALUE PER UNIT Growth Option Dividend Option Total Growth Option Dividend Option Total
Rupees Rupees Rupees Rupees Rupees Rupees
Net Assets as per Balance Sheet (Total Assets less Current Liabilities and Provisions ) (Note 2.5) 213,712,710 141,859,929 355,572,639 495,013,798 364,720,011 859,733,809
Number of Units in Issue 44,079,840.395 29,259,696.530 48,849,646.818 35,991,812.396
Net Asset Value per Unit 4.8483 4.8483 10.1334 10.1334
Notes to the Financial Statements. 9
This is the Balance Sheet referred to in our report of even date.
For Board of Trustees of For HSBC Asset Management (India)PARTHA GHOSH HSBC Mutual Fund Private LimitedPartnerMembership No. F-55913For and on behalf of PRICE WATERHOUSE VikramaadityaChartered Accountants Trustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai
Date : 06 July 2009 Fund Manager(s)
The schedules referred to herein form an integral part of the Financial Statements.
Balance Sheet as at March 31, 2009
HSBC MUTUAL FUND - HSBC SMALL CAP FUND0
April 01, 2008 to January 19, 2008 toMarch 31, 2009 March 31, 2008
Schedule Rupees Rupees
INCOME AND GAINS
Dividends (Note 2.4) 9,569,687 -
Interest and Discount 8 9,264,579 3,599,125
Net Profit on Sale of Investments (Note 2.3) - 962,936
TOTAL 18,834,266 4,562,061
EXPENSES AND LOSSES
Net Loss on Sale of Investments and Derivatives (Note 2.3 and 2.9) 277,865,618 -
Investment Management and Advisory Fees (Note 3) 7,152,874 823,949
Transfer Agent Fees and Expenses 1,042,260 20,880
Trusteeship Fees and Expenses (Note 4) 2,542 -
Custodian Fees and Expenses (Note 5) 179,958 7,657
Audit Fees 50,000 5,000
Selling and Distribution Expenses 4,547,582 125,991
Amortization of Deferred Revenue Expenditure (Note 2.8) 16,866,481 -
Other Operating Expenses 1,330,190 228,744
TOTAL 309,037,505 1,212,221
Less: Expenses to be Reimbursed by the Investment Manager - 82,644
TOTAL 309,037,505 1,129,577
Net Realised (Losses)/Gains for the Year / Period (290,203,239) 3,432,484
Net Change in Unrealised Depreciation in Value of Investments and Derivatives 0.17 (131,627,362) -
Net (Losses)/Gains for the Year / Period (421,830,601) 3,432,484
Net Change in Unrealised Appreciation in Value of Investments and Derivatives (7,886,733) 7,886,733
Net (Deficit)/Surplus including Net change in Unrealised Appreciation/Depreciation in Value of Investments and Derivatives (429,717,334) 11,319,217
Transferred to Unrealised Appreciation Reserve 7,886,733 (7,886,733)
Net (Deficit)/Surplus for the Year / Period 0.17 (421,830,601) 3,432,484
April 01, 2008 to April 01, 2008 to April 01, 2008 to January 19, 2008 to January 19, 2008 to January 19, 2008 toMarch 31, 2009 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008 March 31, 2008Growth Option Dividend Option Total Growth Option Dividend Option Total
Rupees Rupees Rupees Rupees Rupees Rupees
Net (Deficit)/Surplus for the Year / Period (243,800,619) (178,029,982) (421,830,601) 1,976,341 1,456,143 3,432,484
Balance transferred to Reserve Fund (243,800,619) (178,029,982) (421,830,601) 1,976,341 1,456,143 3,432,484
Notes to the Financial Statements. 9
This is the Revenue Account referred to in our report of even date.
PARTHA GHOSH For Board of Trustees of For HSBC Asset Management (India)Partner HSBC Mutual Fund Private LimitedMembership No. F-55913For and on behalf of PRICE WATERHOUSE Chartered Accountants Vikramaaditya
Trustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai
Date : 06 July 2009 Fund Manager(s)
The Schedules referred to herein form an integral part of the Financial Statements.
HSBC MUTUAL FUND - HSBC SMALL CAP FUND
Revenue Account for the year ended March 31, 2009
1
SCHEDULE 1 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008Investments Market Value Cost Market Value Cost(Notes 2.2, 2.3, 7, 8 and 11) Rupees Rupees Rupees Rupees
(Refer to the attached Statement of Portfolio Holding as at March 31, 2009)
Equity Shares 281,208,992 412,836,354 157,502,843 149,616,110
TOTAL 281,208,992 412,836,354 157,502,843 149,616,110
SCHEDULE 2 March 31, 2009 March 31, 2008Deposits Rupees Rupees
Deposits with Scheduled Bank (Under Lien Towards Margin Deposit for Equity Derivatives Rs 11,000,000) 41,000,000 -
TOTAL 41,000,000 -
SCHEDULE 3 March 31, 2009 March 31, 2008Other Current Assets Rupees Rupees
Balances with Banks - in Current Account 14,347,770 11,209,092
Sales Contracts Awaiting Completion - Equity Shares 460,970 -
Reverse Repos 487,696 716,100,545
Collateralized Borrowing and Lending Obligation 509,576 -
Inter-Scheme Receivable - For Switch - In - 15,532 - For Others 35,000 723,315
Derivative Margin Deposit (Note 2.9) 4,000,000 -
Interest Receivable on :
- Deposits 369,572 - - Reverse Repos 63 157,667 - Collateralized Borrowing and Lending Obligation 62 -
Receivable from Investment Manager 69,918 82,644
TOTAL 20,280,627 728,288,795
SCHEDULE 4 March 31, 2009 March 31, 2008Deferred Revenue Expenditure (Notes 2.8) Rupees RupeesIssue and Organisational Costs
At the beginning of the year / period 50,904,876 -
Incurred during the year / period - 50,904,876
Less: Amortized during the year / period 16,866,481 -
Less: Recovered during the year / period 3,052,985 -
At the end of the year / period 30,985,410 50,904,876
HSBC MUTUAL FUND - HSBC SMALL CAP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009
and the Revenue Account for the year ended March 31, 2009
2
SCHEDULE 5 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008Unit Capital Rupees Units Rupees Units
Growth OptionIssued and Subscribed :Units of Rs.10 each fully paid up 488,496,468 48,849,646.818 488,496,468 48,849,646.818 Outstanding:Initial Issue and Subscription - - 488,496,468 48,849,646.818 At the beginning of the year / period 488,496,468 48,849,646.818 - - Issued during the year / period 535,509 53,550.878 - -
489,031,977 48,903,197.696 488,496,468 48,849,646.818 Redeemed during the year / period 48,233,573 4,823,357.301 - - At the end of the year / period 440,798,404 44,079,840.395 488,496,468 48,849,646.818
Dividend Option
Issued and Subscribed :Units of Rs.10 each fully paid up 359,918,124 35,991,812.396 359,918,124 35,991,812.396
Outstanding:
Initial Issue and Subscription - - 359,918,124 35,991,812.396 At the beginning of the year / period 359,918,124 35,991,812.396 - - Issued during the year / period 3,518,453 351,845.309 - -
363,436,577 36,343,657.705 359,918,124 35,991,812.396 Redeemed during the year / period 70,839,612 7,083,961.175 - - At the end of the year / period 292,596,965 29,259,696.530 359,918,124 35,991,812.396
TOTAL 733,395,369 73,339,536.925 848,414,592 84,841,459.214
SCHEDULE 6 Growth Option Dividend Option Total Dividend Option TotalReserves and Surplus March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008
Rupees Rupees Rupees Rupees Rupees
Unit Premium Reserve (Note 2.6)Added during the year / period 14,738,584 25,836,803 40,575,387 - - At the end of the year / period 14,738,584 25,836,803 40,575,387 - -
Unrealised Appreciation ReserveAt the beginning of the year / period 4,540,989 3,345,744 7,886,733 - -
Net change in Unrealised Appreciation in Value of Investments and Derivatives Transferred from Revenue Account (4,540,989) (3,345,744) (7,886,733) 3,345,744 7,886,733 At the end of the year / period - - - 3,345,744 7,886,733
Reserve FundAt the beginning of the year / period 1,976,341 1,456,143 3,432,484 - -
(243,800,619) (178,029,982) (421,830,601) 1,456,143 3,432,484 At the end of the year / period (241,824,278) (176,573,839) (418,398,117) 1,456,143 3,432,484
TOTAL (227,085,694) (150,737,036) (377,822,730) * 4,801,887 11,319,217 *
* The share of the Options of the Reserves and Surplus is as follows : March 31, 2009 March 31, 2008
Growth Option : Rs. (227,085,694) 6,517,330 Dividend Option : Rs. (150,737,036) 4,801,887 Total : Rs. (377,822,730) 11,319,217
Balance Transferred from Revenue Account
HSBC MUTUAL FUND - HSBC SMALL CAP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009
and the Revenue Account for the year ended March 31, 2009
3
SCHEDULE 7Current Liabilities and Provisions March 31, 2009 March 31, 2008
Rupees RupeesCurrent Liabilities
Investment Management and Advisory Fees 61,419 823,949
Transfer Agent Fees and Expenses 47,484 20,880
Custodian Fees and Expenses 15,463 3,637
Audit Fees 50,000 5,000
Selling and Distribution Expenses 348,672 125,991
Purchase Contracts Awaiting Completion -Equity Shares 110,024 19,392,879
Unit Redemptions Payable 12,015,976 -
Inter Scheme Payables - For Switch-Out 1,241,370 - - For Others - 683,892
Deferred Revenue Expenditure Payable - 50,841,182
Units Pending Allotment 64,000 4,801,663
Load Charges (Note 2.7) 3,745,592 -
Sundry Payables 202,390 263,632
TOTAL 17,902,390 76,962,705
SCHEDULE 8 April 01, 2008 to January 19, 2008 toInterest and Discount(Note 2.4) March 31, 2009 March 31, 2008
Rupees Rupees
Deposits 3,038,394 -
Reverse Repos 5,526,176 1,907,019
Collateralized Borrowing and Lending Obligation 700,009 1,692,106
TOTAL 9,264,579 3,599,125
HSBC MUTUAL FUND - HSBC SMALL CAP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009
and the Revenue Account for the year ended March 31, 2009
4
Description Quantity Market ValueRupees
Equity Shares (100 %)Auto (7.27 %)
Eicher Motors Limited 63,000 13,699,350 TVS Motor Company Limited 297,000 6,741,900
20,441,250 Auto Ancillaries (5.85 %)
Everest Kanto Cylinder Limited 70,617 8,470,509 Amara Raja Batteries Limited 217,451 7,969,579
16,440,088 Banks (3.28 %)
Dena Bank 285,000 9,234,000 9,234,000
Brewers (1.86 %)Shaw Wallace & Company Limited 36,190 5,227,646
5,227,646 Construction (2.82 %)
The Phoenix Mills Limited 81,000 5,495,850 J Kumar Infraprojects Limited 60,730 2,426,164
7,922,014 Construction Project (1.50 %)
Voltas Limited 91,480 4,221,802 4,221,802
Consumer Non Durables (17.83 %)Mcleod Russel India Limited 240,000 15,480,000 Bata India Limited 120,000 12,474,000 E I D Parry (India) Limited 79,470 11,225,138 Advanta India Limited 15,300 7,038,000 Eveready Industries India Limited 220,000 3,916,000
50,133,138 Ferrous Metals (1.62 %)
PSL Limited 53,874 4,549,659 4,549,659
Finance (2.15 %)LIC Housing Finance Limited 27,000 6,058,800
6,058,800 Gas (4.87 %)
Indraprastha Gas Limited 125,193 13,702,374 13,702,374
Hardware (1.56 %)Allied Digital Services Limited 25,200 4,396,140
4,396,140 Industrial Capital Goods (11.59 %)
Ingersoll Rand (India) Limited 85,500 22,482,225 Sanghvi Movers Limited 81,000 5,706,450 Kirloskar Pneumatic Company Limited 27,000 4,414,500
32,603,175 Media & Entertainment (10.23 %)
Zee News Limited 585,000 19,158,750 IBN18 Broadcast Limited 130,957 9,612,244
28,770,994 Pesticides (1.91 %)
Rallis India Limited 13,683 5,374,682 5,374,682
Petroleum Products (8.39 %)Castrol India Limited 72,000 23,605,200
23,605,200 Pharmaceuticals (1.47 %)
IPCA Laboratories Limited 12,475 4,122,364 4,122,364
Power (5.25 %)Power Trading Corporation of India Limited @ 150,853 10,552,166 Gujarat Industries Power Company Limited 90,000 4,207,500
14,759,666 Software (10.54 %)
Infotech Enterprises Limited 135,000 11,475,000 Tata Elxsi Limited 117,000 9,617,400 NIIT Technologies Limited 162,000 8,553,600
29,646,000 Total (Cost Rs. 412,836,354) 281,208,992 TOTAL INVESTMENTS (Cost Rs. 412,836,354) 281,208,992
Deposits (11.53 %)^ Tenure Face Value6.3 % Standard Chartered Bank 91 30,000,000 6.4% HSBC Bank 183 11,000,000 Total Deposits 41,000,000
^ Denotes Percentage to Net Asset Value.
HSBC MUTUAL FUND - HSBC SMALL CAP FUNDStatement of Portfolio Holding as at March 31, 2009
(Referred to in Schedule 1 to the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended April 01, 2008 to March 31, 2009)
Confirmation has been received from JP Morgan Chase Bank, Mumbai Branch at the end of the financial year for the investments held by them.@ Investments in companies which have invested more than five percent of the net asset value of any scheme of HSBC Mutual Fund.
5
HSBC MUTUAL FUND-HSBC SMALL CAP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and theRevenue Account for the year ended March 31, 2009.
Annexure 1
(i) Transactions during the Year
Nature of Transaction Sponsor Investment Manager
Associate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Investment Management and Advisory Fees - 7,152,874 - - - 7,152,874 Previous Year - 823,949 - - - 823,949
Brokerage/ Commission on Distribution of Units - - 311,641 - - 311,641 Previous Year - - - - - -
Brokerage/ Commission on Purchase/Sale of Investments 64,968 - - - - 64,968 Previous Year 10,000 - - - - 10,000
Clearing Charges - - 18,271 - - 18,271 Previous Year - - - - - -
Reimbursment of Expenses - - - - - - Previous Year - 82,644 - - - 82,644
Charges for Services Provided by Bank - - 2,001 - - 2,001 Previous Year - - - - - -
(ii) Outstanding As At Year End
Nature of Transaction Sponsor Investment Manager
Associate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Investment Management and Advisory Fees Payable - 61,419 - - - 61,419 Previous Year - 823,949 - - - 823,949
Brokerage/ Commission Payable for Distribution of Units - - 17,866 - - 17,866 Previous Year - - 2,372,881 - - 2,372,881
Other Payables - - - - - - Previous Year - - - 683,892 - 683,892
Other Receivables - 69,918 - 35,000 - 104,918 Previous Year - 82,644 - 723,315 - 805,959
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control ofthe Sponsor.
April 01, 2008 to March 31, 2009
April 01, 2008 to March 31, 2009
Other PayablesHSBC Emerging Markets Fund - 683,892
Other ReceivablesHSBC Emerging Markets Fund 35,000 723,315
0
HSBC MUTUAL FUND-HSBC SMALL CAP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
SCHEDULE 9
1Notes to the Financial Statements
1 Organisation
HSBC Small Cap Fund (the “Scheme”) is a three year closed-ended equity scheme of HSBC Mutual Fund (the “Fund”) with automatic conversion into open ended equity scheme at the end of three years from the date of allotment of units. The Scheme was launched on January 19, 2008. HSBC Mutual Fund has been sponsored by HSBC Securities and Capital Markets (India) Private Limited. HSBC Asset Management (India) Private Limited incorporated under the Companies Act, 1956 has been appointed as the asset management company. The duration of the Scheme is perpetual. The Scheme closed for initial subscription on March 03, 2008. Subscription to the units of the Plans will be permissible only during the New Fund Offer period. The Plans will not be open for ongoing subscriptions/ switch-ins. However units can be redeemed/ switched out at the end of every month during the last three business days of every month. The Scheme opened for redemption on March 31, 2008. The investment objective of the Scheme is to provide long-term capital appreciation primarily from a diversified portfolio of equity and equity related instruments of small cap companies. The Scheme has two Options - Growth Option and Dividend Option. The Scheme will not declare dividend under the Growth Option in normal circumstances. The income earned on such units will remain invested within the Scheme and will be reflected in the net asset value.
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 (SEBI) (Mutual Funds) Regulations, 1996 (the “Regulations”) and amendments thereto, as applicable.
2.2 Portfolio Valuation
Investments are stated at market / fair value at the Balance Sheet date/date of determination. In valuing the Scheme’s investments:
i. Equity securities listed on a recognized stock exchange are valued at the last quoted closing
price on the National Stock Exchange of India Limited (NSE). If on a particular valuation date, a security is not traded on NSE, the value at which it is traded on Bombay Stock Exchange Limited (BSE) is used. If no sale is reported at that time, the last quoted closing price on the principal stock exchange on which the security is traded is used when it is not more than thirty days prior to the valuation date.
ii. Non-traded and thinly traded equity securities, including those not traded within thirty days
prior to the valuation date are valued at fair value as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India (SEBI).
HSBC MUTUAL FUND-HSBC SMALL CAP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
iii. Instruments bought on ‘repo’ basis are valued at the resale price after deduction of applicable
interest up to the date of resale.
Following the issue of guidance note on accounting for investments in the financial statements of the mutual funds by the Institute of Chartered Accountants of India (pursuant to the Eleventh Schedule of the Regulations) net unrealised appreciation / depreciation in the value of investments and derivatives is determined separately for each category of investments and derivatives. In respect of each category of investments and derivatives, the net change in the unrealised appreciation if any, between two balance sheet dates / valuation dates is accounted through the Revenue Account and thereafter the net unrealised appreciation is transferred from the Revenue Account to the Unrealised Appreciation Reserve. The net depreciation if any, is accounted through the Revenue Account. Net unrealised appreciation is reduced from the distributable income at the time of income distribution. The loss on investments sold/transferred during the year/period is charged to the Revenue Account instead of being first adjusted against the provision for depreciation, if already created in the previous year/period as recommended in the Guidance Note. However the departure from the Guidance Note does not have any net impact on the net asset value of the options of the Scheme.
2.3 Securities Transaction
Investment securities transactions are accounted for on a trade date basis. The Scheme uses the average cost method for determining the realized gain or loss on sale of investments.
2.4 Investment Income
Dividend and interest income are recorded on an accrual basis.
2.5 Net Asset Value for Growth/Dividend Options
The net asset value of the units of the Scheme is determined separately for the units issued under the Growth and Dividend Options. For reporting the net asset value for the Options, daily income earned, including realized and unrealised 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 units outstanding.
2.6 Unit Premium Reserve
Upon redemption of units, the net premium or discount to the face value of units is adjusted against the unit premium reserve of the Scheme.
The unit premium reserve is available for dividend distribution except to the extent it is represented by
unrealized net appreciation in value of investments and derivatives.
2.7 Load Charges Load collected is retained under a separate account in the Scheme and is used to meet the selling and distribution expenses.
HSBC MUTUAL FUND-HSBC SMALL CAP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
2.8 Deferred Revenue Expenditure
Initial issue expenses comprise those costs directly associated with the issue of units of the Scheme and include advertising, brokerage, business promotion, marketing, printing, distribution and other miscellaneous expenses. Initial issue expenses upto 6% of the amount collected from the investors during the initial offer period have been charged to the Scheme and are being amortised over a period of three years from the date of allotment of units Balance proportionate unamortized NFO expenses to be recovered in case of exit within close ended period. Expenses over and above the amounts debited to the Scheme were borne by the asset management company.
2.9 Derivatives The Scheme enters into derivative transactions in equity/ index futures for the purpose of hedging and
portfolio balancing.
“Derivative margin deposit” representing the margin towards equity derivative contracts entered into by the Scheme is disclosed under “Other Current Assets”.
Futures
• Futures contracts are marked to market daily at the futures settlement price as determined by the exchange. The variation margin calculated as the difference between the trade price or the previous day’s settlement price, as the case may be, and the current day’s settlement price is recorded as a receivable or payable. • When a contract is closed (squared off)/ settled (on expiry), the difference between the final settlement / square-off price and the contract price is recognised in the Revenue Account. If more than one futures contracts in respect of the same stock / index and expiry date, to which the squared off / settled contract pertains, is outstanding at the time of square off / settlement of the contract, the average method is followed for determining the gain or loss. • As at the Balance Sheet date / date of determination, all open futures positions are valued at the futures settlement price as determined by the exchange where it is traded. Non-traded futures contracts are valued at fair value as per procedures determined by HSBC Asset Management (India) Private Limited and approved by the Board of Trustees. The unrealised appreciation / depreciation on all open positions is considered for determining the net asset value.
3 Investment Management and Advisory Fees
The Scheme has paid or provided for investment management and advisory fees payable to HSBC
Asset Management (India) Private Limited for managing the Scheme at an average annual rate of
1.17% of the average daily net asset value recorded by the Scheme. All costs, charges and expenses
incurred by HSBC Asset Management (India) Private Limited in the administration and execution of
the activities of the Scheme, except costs allowed to be charged to the Scheme under the Regulations,
are on their own account for which they receive investment management and advisory fees.
HSBC MUTUAL FUND-HSBC SMALL CAP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
4 Trusteeship Fees
In accordance with the Deed of Trust dated February 7, 2002 between HSBC Securities and Capital
Markets (India) Private Limited (“The Settlor”) and the Board of Trustees of HSBC Mutual Fund, the
Fund has paid or provided for a fee not exceeding Rs.20,000 for each meeting of the Board of Trustees
attended by such Trustee not affiliated with the Settlor.
5 Custodian Fees
JP Morgan Chase Bank provides custodial services to the Scheme for which it receives custody fees including safekeeping.
6 Income Taxes
No provision for income tax is made as the Scheme qualifies as a recognized mutual fund under Section 10(23D) of the Income Tax Act, 1961.
7 Aggregate Appreciation and Depreciation in Value of Investments
0Aggregate appreciation and depreciation in value of investments are as follows:
March 31, 2009
(Rupees) March 31, 2008
(Rupees)
Equity Shares
- Appreciation 11,913,805 10,312,476
- Depreciation 143,541,167 2,425,743
8 Aggregate Value of Purchases and Sale of Investments
The aggregate value of investments purchased and sold during the year is Rs. 1,000,285,806 and Rs.
458,524,246 respectively being 163.46 % and 74.93 % of the average daily net assets.
9 Income and Expenses
The total income (including net loss on sale of investments and derivatives and net change in unrealized
depreciation in the value of investments and derivatives) and expenditure (excluding deferred revenue
expenditure amortized) during the year is Rs. (390,658,714) and Rs. 14,305,406 respectively being
(63.84) % and 2.34 % of the average daily net assets.
HSBC MUTUAL FUND-HSBC SMALL CAP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
10 Disclosure Under Regulation 25(8) of the Securities and Exchange Board of India (Mutual
Funds) Regulation, 1996 as amended and in accordance with Accounting Standard 18 on ‘Related Party Disclosures’ issued by the Institute of Chartered Accountants of India (ICAI)
The Scheme has entered into transactions with certain related parties. The information required in this regard in accordance with Accounting Standard 18 on ‘Related Party Disclosures’ issued by the Institute of Chartered Accountants of India and regulation 25(8) of SEBI Regulation, is provided below :
I Related party relationships Name Description of relationship (i) HSBC Securities and Capital Markets (India) Private Limited Sponsor of the Fund
(ii) HSBC Asset Management (India) Private Limited Investment Manager to the Schemes of HSBC Mutual Fund
(iii) The Hong Kong and Shanghai Banking Corporation Limited Associate of the Investment Manager (iv) Schemes of the Fund, Under Common Control of the Sponsor
HSBC Advantage India Fund HSBC Cash Fund HSBC Dynamic Fund HSBC Emerging Market Fund HSBC Equity Fund HSBC Fixed Term Series 21 upto April 02, 2008 HSBC Fixed Term Series 22 upto April 22, 2008 HSBC Fixed Term Series 23 upto April 02, 2008 HSBC Fixed Term Series 24 upto December 15, 2008 HSBC Fixed Term Series 25 upto April 23, 2008 HSBC Fixed Term Series 27 upto April 02, 2008 HSBC Fixed Term Series 28 upto May 26, 2008 HSBC Fixed Term Series 30 HSBC Fixed Term Series 32 upto July 10, 2008 HSBC Fixed Term Series 33 upto September 08, 2008 HSBC Fixed Term Series 35 upto September 18, 2008 HSBC Fixed Term Series 36 upto October 07, 2008 HSBC Fixed Term Series 37 upto October 22, 2008 HSBC Fixed Term Series 41 HSBC Fixed Term Series 42 HSBC Fixed Term Series 44 HSBC Fixed Term Series 45 HSBC Fixed Term Series 46 HSBC Fixed Term Series 47 upto June 26, 2008 HSBC Fixed Term Series 48 with effect from March 28, 2008 upto October 07, 2008 HSBC Fixed Term Series 49 HSBC Fixed Term Series 50 with effect from April 17, 2008 HSBC Fixed Term Series 51 with effect from April 23, 2008 upto October 23, 2008 HSBC Fixed Term Series 52 with effect from April 24, 2008
HSBC MUTUAL FUND-HSBC SMALL CAP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
HSBC Fixed Term Series 53 with effect from May 23, 2008 HSBC Fixed Term Series 54 with effect from May 27, 2008 HSBC Fixed Term Series 55 with effect from June 26, 2008 upto December 29, 2008 HSBC Fixed Term Series 56 with effect from July 25, 2008 HSBC Fixed Term Series 57 with effect from August 13, 2008 HSBC Fixed Term Series 58 with effect from July 22, 2008 upto November 05, 2008 HSBC Fixed Term Series 59 with effect from July 07, 2008 HSBC Fixed Term Series 60 with effect from July 10, 2008 upto October 13, 2008 HSBC Fixed Term Series 61 with effect from July 17, 2008 HSBC Fixed Term Series 62 with effect from August 22, 2008 HSBC Fixed Term Series 63 with effect from September 04, 2008 HSBC Fixed Term Series 66 with effect from September 18, 2008 HSBC Fixed Term Series 68 with effect from October 06, 2008 to January 14, 2009 HSBC Flexi Debt Fund HSBC Floating Rate Fund Long Term Plan HSBC Floating Rate Fund Short Term Plan HSBC Gilt Fund (Formerly, HSBC Gilt Fund – Short Term Plan) HSBC Income Fund Investment Plan HSBC Income Fund Short Term Plan HSBC India Opportunities Fund HSBC Interval Fund - Plan I upto November 20, 2008 HSBC Interval Fund - Plan II upto December 10, 2008 HSBC Interval Fund - Plan III upto December 17, 2008 HSBC Ultra Short Term Bond Fund (Formerly , HSBC Liquid Plus Fund) HSBC Midcap Fund HSBC MIP Fund Regular Plan HSBC MIP Fund Savings Plan HSBC Tax Saver Equity Fund HSBC Unique Opportunities Fund
(v) Key Management Personnel and their relatives:
Nelum Pahlaj Gidwani – Associate Trustee Naina Lal Kidwai – Chairman of the Investment Manager Vikramaditya – Director and the Chief Executive Officer of the Investment Manager with effect from July 16, 2008 Dr. Rudolf Apenbrink – Associate Tustee Ayaz Ebrahim – Director with effect from April 11, 2008 Sanjay Prakash – Director and the Chief Executive Officer upto July 16, 2008 Avan Nelum Gidwani* – Relative of a Key Management Personnel Rashid K Kidwai* – Relative of a Key Management Personnel Rumaan Kidwai* – Relative of a Key Management Personnel Kemaya Lal Kidwai*– Relative of a Key Management Personnel Amrita Vikramaaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Raaghav Aaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Rhea Aaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Gabriele A Apenbrink* – Relative of a Key Management Personnel Christian R Apenbrink* – Relative of a Key Management Personnel Katharina S Apenbrink* – Relative of a Key Management Personnel Yasmin Ebrahim* – Relative of a Key Management Personnel with effect from April 11, 2008 Daanyal Ebrahim* – Relative of a Key Management Personnel with effect from April 11, 2008 Nilufer Prakash*– Relative of a Key Management Personnel upto July 16, 2008
HSBC MUTUAL FUND-HSBC SMALL CAP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
Tara Prakash*– Relative of a Key Management Personnel upto July 16, 2008 Anahita Prakash* – Relative of a Key Management Personnel upto July 16, 2008 * There were no transactions during the year.
II The following transactions occurred with the related parties during the year in the ordinary course of business: Refer Annexure I
III During the year, HSBC Securities and Capital Markets (India) Private Limited, the Sponsor was paid
brokerage aggregating Rs. 64,968 on purchase and sale of investments. The Hong Kong & Shanghai
Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited
was paid collection/bank charges amounting to Rs. 2001 and brokerage amounting to Rs. 311,641 for
procuring unit subscriptions for the Scheme and clearing member charges on derivative transactions Rs.
18,271. The brokerage paid was at rates similar to those offered to other brokers / distributors.
Further, The Hong Kong and Shanghai Banking Corporation Limited, an associate of the Sponsor, is on
the panel of bankers with whom HSBC Mutual Fund places money on fixed deposits and enters into
reverse repo transactions from time to time at competitive rates.
11 Disclosure under Regulation 25(11) of the Securities and Exchange Board of India (Mutual
Funds) Regulations, 1996 as amended
HSBC Mutual Fund has made investments in companies, which hold/ have held units in excess of 5% of the net asset value of any Scheme of HSBC Mutual Fund which have been listed in Annexure II.
The investments comprise equity shares, debentures/ bonds, commercial paper, fixed deposits and other
debt instruments and were made solely on the basis of sound fundamentals of these companies.
12 Prior Year’s Figures
Previous year’s figures have been re-grouped / re-arranged where appropriate. Signatures to the Schedules 1 to 9 forming part of the Balance Sheet and the Revenue Account.
PARTHA GHOSH Partner Membership No. F-55913 For and on behalf of PRICE WATERHOUSE Chartered Accountants
For Board of Trustees of HSBC Mutual Fund
For HSBC Asset Management (India) Private Limited
Trustee
Vikramaaditya Director and Chief Executive Officer
HSBC MUTUAL FUND-HSBC SMALL CAP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
Trustee
Director
Place: Mumbai Date :
Fund Manager(s)
Auditors' Report
To the Board of Trustees of
HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC MIP Fund ("The Scheme") as at March 31, 2009 and the
related Revenue Account for the year ended on that date, both of which we have signed under reference to this report.
These financial statements are the responsibility of the Board of Trustees of HSBC Mutual Fund and the Management of
HSBC Asset Management (India) 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. Our procedures included confirmation of securities owned and unit capital balances as at March 31,
2009 by correspondence with the custodian/others and registrar and transfer agent respectively. 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,
(i) 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 also give respectively, a true and fair view of the state of affairs of HSBC Mutual Fund – HSBC MIP Fund as at
March 31, 2009 and its net surplus/ (deficit) for the year ended on that date.
(ii) The Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended on that date, together with
the notes thereon have been prepared in all material respects 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.
(iii) The methods used to value:
(a) non traded debt securities in accordance with the guidelines for valuation of securities for mutual funds
dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange
Board of India and
(b) privately placed securities in good faith
as at March 31, 2009 as determined by HSBC Asset Management (India) Private Limited under procedures
approved by the Board of Trustees of HSBC Mutual Fund are fair and reasonable.
PARTHA GHOSH
Partner Membership No. F/55913
For and on behalf of
PRICE WATERHOUSE
Chartered Accountants
Place: Mumbai Date: July 06, 2009
March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008
Schedule Rupees Rupees Rupees RupeesASSETS
Investments 1 519,451,547 617,808,361 878,023,815 1,310,495,913
Deposits 2 18,204,000 5,204,000 25,204,000 5,204,000
Other Current Assets 3 41,362,640 26,417,731 143,341,328 78,603,288
TOTAL 0.47 -0.33 579,018,187 649,430,092 0.25 0.00 1,046,569,143 1,394,303,201
LIABILITIES
Unit Capital 4 465,877,158 544,699,319 854,507,482 1,096,495,216
Reserves and Surplus 5 106,709,964 90,525,961 179,309,381 282,559,934
Current Liabilities and Provisions 6 6,431,065 14,204,812 12,752,280 15,248,051
TOTAL 579,018,187 649,430,092 1,046,569,143 1,394,303,201
-0.33 0.00
RECONCILIATION OF NET ASSET VALUE PER UNIT
Growth Option
Monthly Dividend Option
Quarterly Dividend Option Total
Growth Option
Monthly Dividend Option
Quarterly Dividend Option Total
Net Assets as per Balance Sheet (Total Assets less Current 288,515,627 119,982,287 164,089,208 572,587,122 409,920,583 239,534,317 384,361,963 1,033,816,863
Liabilities and Provisions ) (Note 2.6) (206,605,512) (264,283,047) (164,336,721) (635,225,280) (577,048,732) (396,050,805) (405,955,613) (1,379,055,150)
Number of Units in Issue 20,343,046.918 11,179,392.387 15,065,276.417 27,263,343.045 22,335,867.542 35,851,537.631
(14,987,074.518) (24,470,779.653) (15,012,077.635) (38,287,542.486) (35,289,980.846) (36,071,998.339)
Net Asset Value per Unit 14.1825 10.7325 10.8919 15.0356 10.7242 10.7209
(13.7856) (10.7999) (10.9470) (15.0714) (11.2228) (11.2540)
Notes to the Financial Statements. 8
PARTHA GHOSH For Board of Trustees of For HSBC Asset Management (India)
Partner HSBC Mutual Fund Private LimitedMembership No. F-55913
For and on behalf of
PRICE WATERHOUSE
Chartered Accountants
VikramaadityaTrustee Director and Chief Executive Officer
Trustee Director
Fund Manager(s)
Place: Mumbai Date : 06 July 2009
Rupees(March 31, 2008)
REGULAR PLAN
This is the Balance Sheet referred to in our report of even date.
The schedules referred to herein form an integral part of the Financial Statements.
REGULAR PLAN SAVINGS PLAN
(March 31, 2008)Rupees
SAVINGS PLAN
HSBC MUTUAL FUND - HSBC MIP FUND
Balance Sheet as at March 31, 2009
March 31, 2009 March 31, 2009
April 01, 2008 to April 01, 2007 to April 01, 2008 to April 01, 2007 to
March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008
Schedule Rupees Rupees Rupees Rupees
INCOME AND GAINS
Dividends (Note 2.4) 696,108 210,227 2,382,733 571,265
Interest and Discount 7 56,957,092 36,005,243 104,230,936 58,384,227
Net Profit on Sale of Investments and Derivatives (Note 2.3 and 2.5) - 24,170,473 - 39,363,257
TOTAL 57,653,200 60,385,943 106,613,669 98,318,749
EXPENSES AND LOSSES
Net Loss on Sale of Investments and Derivatives (Including (Loss) on Inter- Scheme Sale of Investments Rs. (753,579) (Previous Year Rs. (62,199)) for Regular Plan and Rs. (1,103,342) (Previous Year Rs. 2,138,224) for Savings Plan) (Note 2.3 and 2.5) 33,855,596 - 115,863,880 -
Investment Management and Advisory Fees (Note 3) 6,459,806 6,342,399 14,354,901 10,737,409
Trusteeship Fees and Expenses (Note 4) 2,762 2,546 5,452 4,355
Transfer Agent Fees and Expenses 522,534 348,946 1,026,616 585,556
Custodian Fees and Expenses (Note 5) 151,370 120,327 329,280 221,738
Audit Fees 50,000 50,000 50,000 50,000
Selling and Distribution Expenses 6,362,968 4,657,053 10,888,250 10,606,798
Other Operating Expenses 286,734 465,109 381,695 512,430
TOTAL 47,691,770 11,986,380 142,900,074 22,718,286
Less: Expenses to be Reimbursed by the Investment Manager - 2,034,474 - 5,611,191
TOTAL 47,691,770 9,951,906 142,900,074 17,107,095
Net Realised (Losses)/Gains for the Year 9,961,430 50,434,037 (36,286,405) 81,211,654
Net Change in Unrealised Depreciation in Value of Investments and Derivatives (3,490,127) 5,563,613 (4,667,140) 2,713,764
Net (Losses)/Gains for the Year 6,471,303 55,997,650 (40,953,545) 83,925,418
Net Change in Unrealised Appreciation in Value of Investments and Derivatives 9,748,431 (3,449,563) 25,594,689 (7,446,975)
Net (Deficit)/Surplus including Net change in Unrealised Appreciation/Depreciation in Value of Investments and Derivatives 16,219,734 52,548,087 (15,358,856) 76,478,443
Transferred to Unrealised Appreciation Reserve (9,748,431) 3,449,563 (25,594,689) 7,446,975
Net (Deficit)/Surplus for the Year 0.80 6,471,303 55,997,650 -0.43 (40,953,545) 83,925,418
REGULAR PLAN REGULAR PLAN SAVING PLAN SAVING PLAN April 01, 2008 to March 31, 2009
April 01, 2008 to March 31, 2009
April 01, 2008 to March 31, 2009
April 01, 2008 to March 31, 2009
(April 01, 2007 to March 31, 2008)
(April 01, 2007 to March 31, 2008)
(April 01, 2007 to March 31, 2008)
(April 01, 2007 to March 31, 2008)
Rupees Rupees Rupees Rupees Growth
Option Monthly Dividend
OptionQuarterly Dividend
Option TotalGrowth Option
Monthly DividendOption
Quarterly Dividend Option Total
Net (Deficit)/Surplus for the Year 3,127,174 1,777,464 1,566,664 6,471,303 (17,257,537) (10,476,486) (13,219,522) (40,953,545)
(27,274,643) (1,926,987) (26,796,020) (55,997,650) (34,462,902) (26,246,827) (23,215,689) (83,925,418)
Transfer from Income Equalisation Reserve 20,914,006 (4,841,218) 673,976 16,746,764 (46,377,469) 752,354 2,539,411 (43,085,704)
(2,474,403) (11,047,667) (-3,105,870) (10,416,200) (76,890,354) (20,509,034) (19,911,871) (117,311,259)
Transfer from Reserve Fund - 14,716,563 8,231,795 22,948,358 - 28,149,826 27,892,026 56,041,852
- (364,881) (5,071,974) (5,436,855) - (2,900,709) (12,916,768) (15,817,477)
Dividend / Distribution - (5,487,709) (5,315,674) (10,803,383) - (12,965,592) (17,152,137) (30,117,729)
- (-8,685,584) (-10,334,460) (-19,020,044) - (-19,023,107) (-20,630,706) (-39,653,813)
Dividend / Distribution Tax thereon - (917,581) (780,570) (1,698,150) - (2,002,561) (2,495,127) (4,497,688)
- (-1,417,248) (-1,509,888) (-2,927,136) - (-3,152,381) (-3,030,128) (-6,182,509)
Balance Transferred to Reserve Fund 24,041,180 5,247,520 4,376,191 33,664,892 (63,635,005) 3,457,541 (2,435,350) (62,612,814)
(29,749,046) (3,236,703) (16,917,776) (49,903,525) (111,353,256) (27,481,082) (32,383,494) (171,217,832)
Notes to the Financial Statements. 8
The schedules referred to herein form an integral part of the Revenue Account
This is the Revenue Account referred to in our report of even date.
PARTHA GHOSH For Board of Trustees of For HSBC Asset Management (India)Partner HSBC Mutual Fund Private Limited Membership No. F-55913 For and on behalf of PRICE WATERHOUSE Chartered Accountants
VikramaadityaTrustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai
Date : 06 July 2009 Fund Manager(s)
HSBC MUTUAL FUND - HSBC MIP FUND
SAVINGS PLAN REGULAR PLAN
Revenue Account for the year ended March 31, 2009
SCHEDULE 1Investments
(Notes 2.2, 2.3, 7, 8, 9 and 13) Market/Fair Value Cost Market/Fair Value Cost Market/Fair Value Cost Market/Fair Value Cost
Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees
(Refer to the attached Statement of Portfolio Holding as at March 31, 2009)
Equity Shares 16,602,288 18,287,213 47,231,960 45,969,276 54,257,592 60,868,052 146,736,073 149,822,411
Non Convertible Debentures and Bonds Listed / Awaiting Listing 290,516,346 280,983,783 312,355,130 313,770,658 449,441,854 425,244,283 564,748,567 568,995,244
Privately Placed Non Convertible Debentures / Bonds - - 60,099,338 60,038,176 49,781,695 50,268,393 321,857,900 321,800,087
Asset Backed Securities 167,095,913 165,556,979 168,161,843 168,508,359 207,664,674 206,209,743 197,259,799 197,736,451
Commercial Paper - - 29,960,090 29,960,090 - - 79,893,574 79,893,574
Government of India Securities 45,237,000 48,812,402 - - 116,878,000 122,272,921 - -
TOTAL 519,451,547 513,640,377 617,808,361 618,246,559 878,023,815 864,863,391 1,310,495,913 1,318,247,767
SCHEDULE 2
Deposits March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008
Rupees Rupees Rupees Rupees
Deposits with Scheduled Bank (Under Lien Towards Margin Deposit for EquityDerivatives (Rs. 10,000,000 for Regular Plan and Rs. 10,000,000 for Savings Plan) 18,000,000 5,000,000 25,000,000 5,000,000
Margin Deposit with the Clearing Corporation of India Limited towards CollateralizedBorrowing and Lending Obligation 204,000 204,000 204,000 204,000
Total 18,204,000 5,204,000 25,204,000 5,204,000
SCHEDULE 3
Other Current Assets March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008
Rupees Rupees Rupees Rupees
Balances with Banks
- in Current Account 947,060 3,875,506 605,135 10,028,941
- in Dividend Account 3,309 12,015 346,603 358,059
Reverse Repos 10,716,550 3,518,355 52,514,442 10,622,782
Collateralised Borrowing and Lending Obligation 11,212,270 - 54,942,622
Sales Contracts Awaiting Completion - Equity Shares 735,841 1,040,102 2,023,563 6,130,474
Application Money Pending Allotment - Equity Shares - 221,010 - 1,206,810
Unit Subscription Receivable 555,500 198,000 783,000 3,099,000
Receivable on Outstanding Future Contracts 21,720 - 62,445 -
Inter/Intra Scheme Receivable for :
- For 'Switch- In' 106,381 3 - 25,002
- For 'Others' - - 10,000 2,053,000
Derivative Margin Deposit (Note 2.5) 2,250,000 1,250,000 10,250,000 2,750,000
Interest Receivable on :
- Debentures and Bonds 13,885,967 13,944,459 20,043,107 36,449,130
- Government of India Securities 453,699 - 1,087,892 -
- Deposits 280,767 81,507 365,342 81,507
- Reverse Repos 1,379 775 6,758 2,339
- Collateralised Borrowing and Lending Obligation 1,374 - 6,731 -
- Margin Deposit with The Clearing Corporation of India Limited 579 - 579 -
Investment Towards Unclaimed Redemption in "10,912.725 " units (Previous Year3,558.520 Units) (Market Value Rs. "159,046 " (Previous Year Rs. 48,044)) of HSBCCash Fund - Growth Option for Regular Plan (Note 14) 44,427 44,427 - -
Investment Towards Unclaimed Dividend in 10,912.725 Units (Previous Year :15,886.843 Units) of HSBC Cash Fund - Growth Option (Market Value Rs. 159,046(Previous Year : Rs. 216,117)) for Regular Plan and 20,861.160 units (Previous Year :14,574.784 Units) of HSBC Cash Fund - Growth Option (Market Value Rs. 304,039(Previous Year :Rs. 198,268)) for Savings Plan (Note 15) 134,858 189,236 277,625 183,702
Receivable from Investment Manager 350 2,034,474 328 5,611,232
Miscellaneous Receivables 10,609 7,862 15,156 1,310
TOTAL 41,362,640 26,417,731 143,341,328 78,603,288
March 31, 2008 March 31, 2009 March 31, 2009
REGULAR PLAN
REGULAR PLAN
SAVINGS PLAN
SAVINGS PLAN
March 31, 2008
HSBC MUTUAL FUND - HSBC MIP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009and the Revenue Account for the year ended March 31, 2009
SAVINGS PLANREGULAR PLAN
SCHEDULE 4
Unit Capital March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008Rupees Units Rupees Units Rupees Units Rupees Units
Growth OptionIssued and SubscribedUnits of Rs. 10 each fully paid up 903,797,314 90,379,731.393 903,797,314 90,379,731.393 783,535,021 78,353,502.035 783,535,021 78,353,502.035 Outstanding:At the beginning of the year 149,870,745 14,987,074.518 140,790,337 14,079,033.718 382,875,425 38,287,542.486 229,585,704 22,958,570.389 Issued during the year 112,509,342 11,250,934.216 111,938,515 11,193,851.516 177,355,745 17,735,574.480 390,170,776 39,017,077.635
262,380,087 26,238,008.734 252,728,852 25,272,885.234 560,231,170 56,023,116.966 619,756,480 61,975,648.024 Redeemed during the year 58,949,618 5,894,961.816 102,858,107 10,285,810.716 287,597,739 28,759,773.921 236,881,055 23,688,105.538 At the end of the year 203,430,469 20,343,046.918 149,870,745 14,987,074.518 272,633,431 27,263,343.045 382,875,425 38,287,542.486
Monthly Dividend Option Issued and SubscribedUnits of Rs. 10 each fully paid up 433,016,292 43,301,629.170 433,016,292 43,301,629.170 452,008,863 45,200,886.283 452,008,863 45,200,886.283 Outstanding:At the beginning of the year 244,707,798 24,470,779.653 88,742,977 8,874,297.567 352,899,808 35,289,980.846 138,790,411 13,879,041.121 Issued during the year 109,111,021 10,911,102.092 245,081,565 24,508,156.452 97,057,037 9,705,703.652 357,033,291 35,703,329.090
353,818,819 35,381,881.745 333,824,542 33,382,454.019 449,956,845 44,995,684.498 495,823,702 49,582,370.211 Redeemed during the year 242,024,894 24,202,489.358 89,116,744 8,911,674.366 226,598,170 22,659,816.956 142,923,894 14,292,389.365 At the end of the year 111,793,925 11,179,392.387 244,707,798 24,470,779.653 223,358,675 22,335,867.542 352,899,808 35,289,980.846
Quarterly Dividend Option Issued and SubscribedUnits of Rs. 10 each fully paid up 1,145,953,011 114,595,301.047 1,145,953,011 114,595,301.047 882,420,472 88,242,047.191 882,420,472 88,242,047.191 Outstanding:At the beginning of the year 150,120,776 15,012,077.635 200,913,854 20,091,385.421 360,719,983 36,071,998.339 180,030,401 18,003,040.120 Issued during the year 61,366,510 6,136,651.026 87,223,057 8,722,305.676 144,306,842 14,430,684.202 300,667,685 30,066,768.544
211,487,286 21,148,728.661 288,136,911 28,813,691.097 505,026,825 50,502,682.541 480,698,086 48,069,808.664 Redeemed during the year 60,834,522 6,083,452.244 138,016,135 13,801,613.462 146,511,449 14,651,144.910 119,978,103 11,997,810.325 At the end of the year 150,652,764 15,065,276.417 150,120,776 15,012,077.635 358,515,376 35,851,537.631 360,719,983 36,071,998.339
TOTAL 465,877,158 46,587,715.722 544,699,319 54,469,931.806 854,507,482 85,450,748.218 1,096,495,216 109,649,521.671
HSBC MUTUAL FUND - HSBC MIP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009and the Revenue Account for the year ended March 31, 2009
REGULAR PLAN SAVINGS PLAN
SCHEDULE 5Reserves and Surplus
Total Total
Unit Premium Reserve (Note 2.7 )
At the beginning of the year 2,113,370 29,515,941
(-3,397,382) (-11,140,141)
Added during the year (4,280,963) (10,190,576)
(5,510,752) (40,656,082)Transferred to Revenue Account - -
(-) (-) At the end of the year (2,167,593) 19,325,365
(2,113,370) (29,515,941)
Income Equalisation Reserve (Note 2.8)
Added during the year 16,746,764 (43,085,704)
(10,416,200) (117,311,259)
Transferred to Revenue Account (16,746,764) 43,085,704
(-10,416,200) (-117,311,259)
At the end of the year - - (-) (-)
Unrealised Appreciation Reserve
At the beginning of the year 1,323,845 57,814
(-) (-)
Transferred from Reserve Fund - -
(4,773,408) (7,504,789)Net change in Unrealised Appreciation in Value of Investments and Derivatives Transferred from Revenue Account 9,748,431 25,594,689
(-3,449,563) (-7,446,975)
At the end of the year 11,072,276 25,652,503 (1,323,845) (57,814)
Reserve Fund
At the beginning of the year 87,088,746 252,986,179
(47,395,484) (105,090,613)
Transfer to Revenue Account (22,948,357) (56,041,852)
(-5,436,855) (-15,817,477)
Transferred to Unrealised Appreciation Reserve - -
(-4,773,408) (-7,504,789)
Balance Transferred from Revenue Account 33,664,892 (62,612,814)
(49,903,525) (171,217,832)
At the end of the year 97,805,281 134,331,513
(87,088,746) (252,986,179)
TOTAL 106,709,964 * 179,309,381 * (90,525,961) (282,559,934)
* The share of the Options of the Reserves and Surplus is as follows : March 31, 2009 March 31, 2009
( March 31, 2008) ( March 31, 2008)Rupees Rupees
Growth Option 85,085,158 137,287,152 (56,734,767) (194,173,307)
Monthly Dividend Option 8,188,362 16,175,642 (19,575,249) (43,150,997)
Quarterly Dividend Option 13,436,444 25,846,587 (14,215,945) (45,235,630)
Total 106,709,964 179,309,381 (90,525,961) (282,559,934)
HSBC MUTUAL FUND - HSBC MIP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009
( March 31, 2008)
SAVINGS PLANREGULAR PLAN
and the Revenue Account for the year ended March 31, 2009
March 31, 2009 March 31, 2009
Rupees( March 31, 2008)
Rupees
SCHEDULE 6Current Liabilities and Provisions March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008
Rupees Rupees Rupees RupeesCurrent Liabilities
Investment Management and Advisory Fees 2,181,128 1,142,484 5,567,862 2,194,323
Transfer Agent Fees and Expenses 38,934 43,382 69,119 92,176
Custodian Fees and Expenses 13,572 26,747 23,001 59,101
Audit Fees 50,000 50,000 50,000 50,000
Selling and Distribution Expenses 309,185 441,172 563,794 1,234,181
Purchase Contracts Awaiting Completion - Equity Shares 1,478,945 465,828 4,331,983 2,697,917
Unit Redemption Payable - 40,000 47,610 1,981,826
Inter / Intra Scheme Payable:
- For 'Switch Out' - 8,526,171 9,290 4,081,262
- For 'Others' - 2,004,000 - 82,500
Load Payable 1,623,111 - 1,626,583 -
Payable on Outstanding Future Contracts - 202,598 - 405,194
Dividend Payable - 725,361 - 1,602,477
Dividend Tax Payable - 230,044 - 335,758
Unclaimed Redemption (Note 14) 44,427 44,427 10,000 103,028
Unclaimed Dividend (Note 15) 138,003 202,474 313,190 230,774
Temporary Book Overdraft 486,765 - 10,001 -
Sundry Payables 66,995 60,124 129,847 97,534
TOTAL 6,431,065 14,204,812 12,752,280 15,248,051
0
SCHEDULE 7Interest and Discount (Note 2.4) April 01, 2008 to April 01, 2007 to April 01, 2008 to April 01, 2007 to
March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008Rupees Rupees Rupees Rupees
Debentures / Bonds 33,851,404 19,240,004 66,330,027 35,904,727
Asset Backed Securities 16,092,627 12,342,304 20,774,897 16,227,885
Commercial Paper / Certificate of Deposits 195,997 6,646 3,399,428 17,724
Government of India Securities 2,427,202 1,591,889 7,468,240 2,912,978
Reverse Repos 2,665,146 2,444,311 3,373,402 2,940,715
Collateralised Borrowing and Lending Obligation 257,841 10,407 921,623 7,112
Margin Deposit with The Clearing Corporation of India Limited 2,593 3,488 2,593 3,488
Deposits 1,464,282 366,194 1,960,726 369,598
TOTAL 56,957,092 36,005,243 104,230,936 58,384,227
REGULAR PLAN SAVINGS PLAN
REGULAR PLAN SAVINGS PLAN
HSBC MUTUAL FUND - HSBC MIP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009and the Revenue Account for the year ended March 31, 2009
Quantity Market/ Fair ValueRupees
Equity Shares (3.20 %)Auto (11.61 %)
Hero Honda Motors Limited @ 1,800 1,928,070 1,928,070
Banks (8.79 %)HDFC Bank Limited @ 1,500 1,460,100
1,460,100 Consumer Non Durables (23.97 %)
I T C Limited @ 20,000 3,697,000 E I D Parry (India) Limited 2,000 282,500
3,979,500 Finance (4.25 %)
Housing Development Finance Corporation Limited 500 706,100 706,100
Industrial Capital Goods (10.51 %)Bharat Heavy Electricals Limited 700 1,057,385 Sanghvi Movers Limited 9,763 687,803
1,745,188 Media & Entertainment (7.89 %)
Zee News Limited 40,000 1,310,000 1,310,000
Oil (4.70 %)Oil and Natural Gas Corporation Limited 1,000 780,200
780,200 Petroleum Products (15.68 %)
Reliance Industries Limited @ 1,300 1,982,175 Indian Oil Corporation Limited 1,600 620,480
2,602,655 Pharmaceuticals (12.59 %)
Cipla Limited 9,500 2,090,475 2,090,475
Total (Cost Rs. 18,287,213) 16,602,288
Non-Convertible Debentures / Bonds Listed / Awaiting listing (55.93 %)Finance (76.29 %)
10.85% Rural Electrification Corporation Limited 2018 $ 45 50,602,827 11.65% Deutsche Postbank Home Finance Limited 2013 $ 50 49,543,164 0.00% Sundaram Finance Limited 2010 $ @ 43 36,953,706 10.60% Indian Railway Finance Corporation Limited 2018 $ 23 25,679,237 9.80% Power Finance Corporation Limited 2012 $ 21 21,970,096 8.46% Indian Railway Finance Corporation Limited 2014 20 20,066,420 9.45% Rural Electrification Corporation Limited 2013 10 10,295,040 11.50% Rural Electrification Corporation Limited 2013 5 5,541,060 9.05% Infrastructure Development Finance Company Limited 2009 $ @ 1 996,452
221,648,002 Finance & Investments (10.23 %)
8.60% Mahindra and Mahindra Financial Services Limited 2009 $ @ 30 29,711,654 29,711,654
Finance & Term Lending (13.48 %)9.80% National Bank For Agricultural and Rural Development Limited 2012 $ 20 21,147,897 0.00% Kotak Mahindra Prime Limited 2010 $ 21 18,008,793
39,156,690 Total (Cost Rs. 280,983,783) 290,516,346
Government of India Securities (8.71 %)7.46% GOI Bonds 2017 150,000 15,240,000 7.95% GOI Bonds 2032 150,000 15,210,000 7.95% GOI Bonds 2025 150,000 14,787,000
45,237,000 Total (Cost Rs. 48,812,402) 45,237,000
Asset Backed Securities (32.17 %)Finance & Investments (100 %)
BHPC Auto Securitisation Trust November 2007 I (Tata Motors Services) PTC 2011 * 6 62,316,451 SCB Long Bond Receivables Trust 2006 Series A2 (Standard Chartered Bank) PTC 2009 * 5 43,275,223 Indian Loans Receivables Trust Series T2 (Tata Motors Finance ) PTC 2009 * 4 38,875,775 Corporate Loan Securitisation Series 15 Trust 2008 - A1 (L&T Finance ) PTC2010 * @ 4 22,628,464
Total (Cost Rs. 165,556,979) 167,095,913 TOTAL INVESTMENTS (Cost Rs. 513,640,378) 519,451,547
Equity DerivativesLong Futures (100 %)
S&P CNX Nifty - Futures - April 2009 (100 %) 2,412,200 Total 2,412,200
Deposits (3.14 %)^ Tenure Face Value8 % Axis Bank 181 10,000,000 6.3 % Standard Chartered Bank 91 8,000,000 Total Deposits 18,000,000
for the year ended March 31, 2009)
Description
HSBC MIP REGULAR PLAN
HSBC MUTUAL FUND - HSBC MIP
Statement of Portfolio Holding as at March 31, 2009 (Referred to in Schedule 1 to the Balance Sheet as at March 31, 2009 and the Revenue Account
Equity Shares (6.18 %)Auto (8.88 %)
Hero Honda Motors Limited @ 4,500 4,820,175 4,820,175
Banks (9.51 %)HDFC Bank Limited @ 5,300 5,159,020
5,159,020 Consumer Non Durables (28.32 %)
I T C Limited @ 77,000 14,233,450 E I D Parry (India) Limited 8,000 1,130,000
15,363,450 Finance (6.51 %)
Housing Development Finance Corporation Limited 2,500 3,530,500 3,530,500
Industrial Capital Goods (8.91 %)Bharat Heavy Electricals Limited 2,000 3,021,100 Sanghvi Movers Limited 25,737 1,813,172
4,834,272 Media & Entertainment (6.64 %)
Zee News Limited 110,000 3,602,500 3,602,500
Oil (5.75 %)Oil and Natural Gas Corporation Limited 4,000 3,120,800
3,120,800 Petroleum Products (14.53 %)
Reliance Industries Limited @ 3,900 5,946,525 Indian Oil Corporation Limited 5,000 1,939,000
7,885,525 Pharmaceuticals (10.95 %)
Cipla Limited 27,000 5,941,350 5,941,350
Total (Cost Rs. 60,868,052) 54,257,592
Non-Convertible Debentures / Bonds Listed / Awaiting listing (51.19 %)Finance (57.86 %)
10.85% Rural Electrification Corporation Limited 2018 $ 55 61,847,899 10.85% Rural Electrification Corporation Limited 2018 $ 50 56,278,440 8.80% Sundaram Finance Limited 2009 $ @ 40 39,959,295 9.01% Power Finance Corporation Limited 2011 $ 30 30,627,826 9.80% Power Finance Corporation Limited 2012 $ 29 30,339,656 8.46% Indian Railway Finance Corporation Limited 2014 30 30,099,630 11.50% Rural Electrification Corporation Limited 2013 6 6,649,272 10.95% Rural Electrification Corporation Limited 2011 $ 4 4,263,722
260,065,740 Finance & Investments (15.43 %)
8.60% Mahindra and Mahindra Financial Services Limited 2009 $ @ 70 69,327,192 69,327,192
Finance & Term Lending (2.89 %)0.00% Kotak Mahindra Prime Limited 2010 $ 9 7,718,054 9.80% National Bank For Agricultural and Rural Development Limited 2012 $ 5 5,286,974
13,005,028 Petroleum Products (12.50 %)
11.00% Indian Oil Corporation Limited 2018 $ 50 56,180,578 56,180,578
Power (11.32 %)9.47% Power Grid Corporation of India Limited 2017 $ 40 50,863,316
50,863,316 Total (Cost Rs. 425,244,283) 449,441,854
Privately Placed / Unlisted Non-Convertible Debentures / Bonds (5.67 %)Finance (95.59 %)
0.00% GE Capital Services India Limited 2010 * 55 47,588,789 47,588,789
Finance & Investments (4.41 %)8.85% GE Money Financial Services Limited 2009 * 2 2,192,906
2,192,906 Total (Cost Rs. 50,268,393) 49,781,695
Government of India Securities (13.31 %)7.46% GOI Bonds 2017 500,000 50,800,000 7.95% GOI Bonds 2032 360,000 36,504,000 7.95% GOI Bonds 2025 300,000 29,574,000
116,878,000 Total (Cost Rs. 122,272,921) 116,878,000
Asset Backed Securities (23.65 %)Finance & Investments (100 %)
Indian Loans Receivables Trust Series T2 (Tata Motors Finance ) PTC 2009 * 10 97,189,439 BHPC Auto Securitisation Trust November 2007 I (Tata Motors Services) PTC 2011 * 9 93,474,677 Corporate Debt Trust 2008 – 09 Series 9 (Bajaj Auto Finance) PTC 2009 * 25 11,741,053 Collateralised Debt Trust Series 24 Series A2 (Power Finance Corporation ) PTC 2009 * 7 5,259,505
207,664,674 Total (Cost. Rs. 206,209,743) 207,664,674 TOTAL INVESTMENTS (Cost Rs. 864,863,391) 878,023,815
Equity DerivativesLong Futures (100 %)
S&P CNX Nifty - Futures - April 2009 (100 %) 6,935,075 Total 6,935,075
Deposits (2.42 %)^ Tenure Face Value6.3 % Standard Chartered Bank 91 15,000,000 8 % Axis Bank 181 10,000,000 Total Deposits 25,000,000
^ Denotes Percentage to Net Asset Value.
$ Fair value of non traded debt securities as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board ofTrustees in accordance with guidelines for valuation of securities for mutual funds dated September 18, 2000 issued by Securities and Exchange Board of India.@ Investments in companies which have invested more than five percent of the net asset value of any scheme of HSBC Mutual Fund
HSBC MIP SAVINGS PLAN
Confirmation has been received from JP Morgan Chase Bank, Mumbai Branch at the end of the financial year for the investments held by them.
* Fair value of privately placed securities as determined in good faith by HSBC Asset Management (India) Private Limited under procedures approved by theBoard of Trustees.
HSBC MUTUAL FUND - HSBC MIP REGULAR PLAN
Schedules forming part of the Balance Sheet as at March 31, 2009 and theRevenue Account for the year ended March 31, 2009.
Annexure 1
(i) Transactions during the Year
Nature of Transaction Sponsor Investment Manager
Associate of Investment Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Purchase of Investments - - - 372,339,147 - 372,339,147 Previous Year - - - 493,002,328 - 493,002,328
Sale of Investments - - - 233,273,207 - 233,273,207 Previous Year - - - 343,038,332 - 343,038,332
Investment Management and Advisory Fees - 6,459,806 - - - 6,459,806 Previous Year - 6,342,399 - - - 6,342,399
Brokerage/ Commission on Distribution of Units - - 559,017 - - 559,017 Previous Year - - 1,191,572 - - 1,191,572
Brokerage/ Commission on Purchase/ Sale of Investments 25,017 - - - - 25,017 Previous Year 16,000 - - - - 16,000
Clearing Charges - - 33,705 - - 33,705 Previous Year - - 4,171 - - 4,171
Fixed Deposits Placed - - - - - - Previous Year - - 5,000,000 - - 5,000,000
Reimbursement of Expenses - - Previous Year 2,034,474 2,034,474
Fixed Deposits Matured - - - - - - Previous Year - - 8,200,000 - - 8,200,000
Charges for Services Provided by Bank - - 169,266 - - 169,266 Previous Year - - 339,405 - - 339,405
(ii) Outstanding As At Year End
Nature of Transaction Sponsor Investment Manager
Associate of Investment Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Investment Management and Advisory Fees Payable - 2,181,128 - - - 2,181,128 Previous Year - 1,142,484 - - - 1,142,484
Brokerage/ Commission Payable for Distribution of Units - - 23,087 - - 23,087 Previous Year - - 84,568 - - 84,568
Other Payables - - - - - - Previous Year - - - 2,004,000 - 2,004,000
Other Receivables - 350 - - - 350 Previous Year - 2,034,474 - - - 2,034,474
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control othe Sponsor.
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Purchase of InvestmentsHSBC Flexi Debt Fund 114,697,623 110,347,746HSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 74,845,593 255,021,405HSBC MIP Fund Savings Plan 57,434,427 802,134 HSBC Cash Fund 49,481,670 -
Sale of InvestmentsHSBC Cash Fund 119,266,517 - HSBC Floating Rate Fund Long Term Plan 39,888,150 48,314,004 HSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 39,865,004 183,669,398 HSBC Flexi Debt Fund 14,456,618 61,911,139 HSBC Income Fund Investment Plan 9,991,836 48,352,674 Other PayablesHSBC MIP Fund Savings Plan - 2,002,000
HSBC MUTUAL FUND - HSBC MIP SAVINGS PLAN
Schedules forming part of the Balance Sheet as at March 31, 2009 and theRevenue Account for the year ended March 31, 2009.
Annexure 1
(i) Transactions during the Year
Nature of Transaction Sponsor Investment Manager
Associate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Purchase of Investments - - - 1,261,278,749 - 1,261,278,749 Previous Year - - - 1,030,325,938 - 1,030,325,938
Sale of Investments - - - 886,295,855 - 886,295,855 Previous Year - - - 532,501,261 - 532,501,261
Investment Management and Advisory Fees - 14,354,901 - - - 14,354,901 Previous Year - 10,737,409 - - - 10,737,409
Brokerage/ Commission on Distribution of Units - - 1,141,499 - - 1,141,499 Previous Year - - 1,535,390 - - 1,535,390
Brokerage/ Commission on Purchase/ Sale of Investments 68,515 - - - - 68,515 Previous Year 49,000 - - - - 49,000
Clearing Charges - - 95,235 - - 95,235 Previous Year - - 12,880 - - 12,880
Reimbursement of Expenses - - Previous Year 5,611,191 5,611,191
Fixed Deposits Placed - - - - - - Previous Year - - 5,000,000 - - 5,000,000
Fixed Deposits Matured - - - - - - Previous Year - - 9,800,000 - - 9,800,000
Charges for Services Provided by Bank - - 170,403 - - 170,403 Previous Year - - 344,193 - - 344,193
Borrowings for Redemptions - - 25,000,000 - - 25,000,000 Previous Year - - - - - -
(ii) Outstanding As At Year End
Nature of Transaction Sponsor Investment Manager
Associate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Investment Management and Advisory Fees Payable - 5,567,862 - - - 5,567,862 Previous Year - 2,194,323 - - - 2,194,323
Brokerage/ Commission Payable for Distribution of Units - - 53,231 - - 53,231 Previous Year - - 113,645 - - 113,645
Other Payables - - - - - - Previous Year - - - 82,500 - 82,500
Other Receivables - 328 - 10,000.00 - 10,328 Previous Year - 5,611,232 - 2,053,000 - 7,664,232
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control ofthe Sponsor.
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Purchase of InvestmentsHSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 393,647,753 570,928,329 HSBC Floating Rate Fund Long Term Plan 159,526,986 122,028,141 HSBC Cash Fund 148,445,009 - HSBC Flexi Debt Fund 132,326,943 160,805,149 HSBC Income Fund Short Term Plan 108,721,964 68,722,146
Sale of InvestmentsHSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 539,617,775 292,833,880 HSBC Flexi Debt Fund 59,695,940 135,764,947 HSBC Floating Rate Fund Long Term Plan 59,936,467 60,392,505
Other PayablesHSBC India Opportunities Fund - 82,500
Other ReceivablesHSBC Cash Fund 10,000 - HSBC MIP Fund Regular Plan - 2,002,000
HSBC MUTUAL FUND - HSBC MIP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
SCHEDULE 8
Notes to the Financial Statements
1 Organisation
HSBC MIP (the “Scheme”) is an open-ended income scheme of HSBC Mutual Fund (the “Fund”) and was launched on January 22, 2004. HSBC Mutual Fund has been sponsored by HSBC Securities and Capital Markets (India) Private Limited. HSBC Asset Management (India) Private Limited incorporated under the Companies Act, 1956, has been appointed as the asset management company. The duration of the Scheme is perpetual. The Scheme closed for initial subscription on February 13, 2004 and reopened for issue and redemption of units on March 5, 2004. The primary investment objective of the Scheme is to seek generation of reasonable returns through investment in debt and money market instruments. The secondary objective is to invest in equity and equity related instruments to seek capital appreciation. The Scheme has two Plans - Regular Plan and Savings Plan, each with a separate portfolio and each offering three options - Growth Option, Monthly Dividend Option and Quarterly Dividend Option. The Scheme will not declare dividend under the Growth Options of both the Plans in normal circumstances. The income earned on such units will remain invested within the Scheme and will be reflected in the net asset value of these Plans.
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 (SEBI) (Mutual Funds) Regulations, 1996 (the “Regulations”) and amendments there to, as applicable.
2.2 Portfolio Valuation
Investments are stated at market/fair value at the Balance Sheet date/date of determination. In valuing the Scheme’s investments:
i. Equity securities listed on a recognised stock exchange are valued at the last quoted closing price on the National Stock Exchange of India Limited (NSE). If on a particular valuation date, a security is not traded on NSE, the value at which it is traded on Bombay Stock Exchange Limited (BSE) is used. If no sale is reported at that time, the last quoted closing price of the principal stock exchange on which the security is traded is used when it is not more than thirty days prior to the valuation date.
ii. Non traded and thinly traded equity securities, including those not traded within thirty days prior
to valuation date are valued at fair value as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India (SEBI).
HSBC MUTUAL FUND - HSBC MIP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
iii. Equity shares awaiting listing are valued at fair value as determined in good faith by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund.
iv. Debt securities listed on a recognised stock exchange are valued at the last quoted closing price
on the National Stock Exchange of India Limited (NSE). If no sale is reported at that time , such security is valued at fair value as determined in good faith by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund.
v. Non traded and thinly traded debt securities are valued at fair value as determined by HSBC
Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable issued by SEBI.
vi. Privately placed debt securities are valued at fair value as determined in good faith by HSBC
Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund.
vii. Traded money market securities are valued at the yield at which they are traded on the valuation
date. If no sale is reported at that time, such security is valued at the last traded price plus accretion of the difference between the face value and the last traded price. Non traded money market instruments are valued at cost plus accrued interest.
viii. Government securities are valued at prices obtained from The Credit Rating Information Services
of India Limited in accordance with the guidelines for valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by SEBI.
ix. Asset backed securities are valued at fair value as determined in good faith by HSBC Asset
Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund.
x. Instruments bought on ‘repo’ basis are valued at the resale price after deduction of applicable
interest upto the date of resale. Following the issue of guidance note on accounting for investments in the financial statements of the mutual funds by the Institute of Chartered Accountants of India (pursuant to the Eleventh Schedule of the Regulations) net unrealised appreciation / depreciation in the value of investments and derivatives is determined separately for each category of investments and derivatives. In respect of each category of investments and derivatives, the net change in the unrealised appreciation if any, between two balance sheet dates / valuation dates is accounted through the Revenue Account and thereafter the net unrealised appreciation is transferred from the Revenue Account to the Unrealised Appreciation Reserve. The net depreciation if any, is accounted through the Revenue Account. Net unrealised appreciation is reduced from the distributable income at the time of income distribution. The loss on investments sold/transferred during the year/period is charged to the Revenue Account instead of being first adjusted against the provision for depreciation, if already created in
HSBC MUTUAL FUND - HSBC MIP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
the previous year/period as recommended in the Guidance Note. However the departure from the Guidance Note does not have any net impact on the net asset value of the options of the Scheme.
2.3 Securities Transaction
Investment securities transactions are accounted for on a trade date basis. The Scheme uses the average cost method for determining the realized gain or loss on sale of investments.
2.4 Investment Income
Dividend and interest income are recorded on an accrual basis.
2.5 Derivatives The Scheme enters into derivative transactions in equity/ index futures for the purpose of hedging and
portfolio balancing.
“Derivative margin deposit” representing the margin towards equity derivative contracts entered into by the Scheme is disclosed under “Other Current Assets”.
Futures
• Futures contracts are marked to market daily at the futures settlement price as determined by the exchange. The variation margin calculated as the difference between the trade price or the previous day’s settlement price, as the case may be, and the current day’s settlement price is recorded as a receivable or payable. • When a contract is closed (squared off)/ settled (on expiry), the difference between the final settlement / square-off price and the contract price is recognised in the Revenue Account. If more than one futures contracts in respect of the same stock / index and expiry date, to which the squared off / settled contract pertains, is outstanding at the time of square off / settlement of the contract, the average method is followed for determining the gain or loss. • As at the Balance Sheet date / date of determination, all open futures positions are valued at the futures settlement price as determined by the exchange where it is traded. The unrealised appreciation / depreciation on all open positions is considered for determining the net asset value.
2.6 Net Asset Value for Growth/Dividend Options
The net asset value of the units of the Scheme is determined separately for the units issued under the Growth and Dividend (Monthly and Quarterly) Options for the Regular and Savings Plans. For reporting the net asset value for the 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 units outstanding.
2.7 Unit Premium Reserve
HSBC MUTUAL FUND - HSBC MIP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
Upon issue and redemption of units, the net premium or discount to the face value of units is adjusted against the unit premium reserve of the Plans after an appropriate portion of the issue proceeds and redemption payout is credited or debited respectively to the income equalization reserve. The unit premium reserve is available for dividend distribution except to the extent it is represented by unrealized net appreciation in value of investments.
2.8 Income Equalization Reserve
The net distributable income relating to units issued/repurchased is transferred to/from income equalization reserve for determining the net surplus/deficit, transferred from/to unit premium reserve.
2.9 Load Charges Load collected is retained under a separate account in the Scheme and is utilised to meet the selling and distribution expenses of the Scheme.
3 Investment Management and Advisory Fees
The Scheme has paid or provided for investment management and advisory fees payable to HSBC
Asset Management (India) Private Limited for managing the Scheme at an average annual rate of
0.97% and 1.09% of the average daily net asset values of the Regular Plan and Savings Plan
respectively recorded by the Scheme. All costs, charges and expenses incurred by HSBC Asset
Management (India) Private Limited in the administration and execution of the activities of the
Scheme, except costs allowed to be charged to the Scheme under the Securities and Exchange Board
of India (Mutual Funds) Regulations, 1996 and amendments thereto as applicable, are on their own
account for which they receive investment management and advisory fees.
4 Trusteeship Fees
In accordance with the Deed of Trust dated February 7, 2002 between HSBC Securities and Capital
Markets (India) Private Limited (“The Settlor”) and the Board of Trustees of HSBC Mutual Fund, the
Fund has paid or provided for a fee not exceeding Rs.20,000 for each meeting of the Board of
Trustees attended by such Trustee not affiliated with the Settlor.
5 Custodian Fees
JP Morgan Chase Bank provides custodial services to the Scheme for which it receives custody fees.
6 Income Taxes
No provision for income tax is made as the Scheme qualifies as a recognized mutual fund under Section 10 (23D) of the Income Tax Act, 1961. For taxes deducted at source from investment income, which are recoverable, a receivable is recorded in the books of account.
7 Aggregate Appreciation / (Depreciation )In Value of Investments and Derivatives
HSBC MUTUAL FUND - HSBC MIP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
Aggregate appreciation / (depreciation) in value of investments and derivatives is as follows:
Regular Plan Savings Plan
March 31, 2009
(Rupees)
March 31, 2008
(Rupees)
March 31, 2009
(Rupees)
March 31, 2008
(Rupees)
Equity Shares
-Appreciation 930,850 4,506,995 2,465,476 10,924,860
- Depreciation 2,615,775 3,244,311 9,075,936 14,011,198
Non Convertible Debentures and Bonds Listed / Awaiting Listing
- Appreciation 12,106,129 150,202 24,617,261 350,472
- Depreciation 2,573,566 1,565,730 419,690 4,597,149
Privately Placed Non Convertible Debentures / Bonds
- Appreciation - 61,162 - 203,500
- Depreciation - - 486,698 145,687
Asset Backed Securities
- Appreciation 1,988,647 79,793 2,586,070 104,705
- Depreciation 449,713 426,309 1,131,139 581,357
Government of India Securities
- Appreciation - - - -
- Depreciation 3,575,402 - 5,394,921 -
Equity Futures
- Appreciation 779 - - -
- Depreciation - 8,156 1,043 16,313
8 Aggregate Fair Value of Non-Traded/ Privately Placed Investments
Aggregate fair value of non traded (including private placement)/thinly traded investments as determined by HSBC Asset Management (India) Private Limited under the procedures approved by the Board of Trustees as at March 31, 2009 is Rs. 439,709,739 for the Regular Plan and Rs. 670,139,321 for the Saving Plan.
HSBC MUTUAL FUND - HSBC MIP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
9 Aggregate Value of Purchase and Sale of Investments
The aggregate value of investments purchased and sold (including matured) during the year (excluding accretion of discount of Rs. 22,906,494 and Rs. 29,526,868 for Regular and Savings Plan respectively ) are :
Plan Aggregate Purchases Aggregate Sales
Rupees
Percentage of Average Daily Net Assets
Rupees Percentage of Average
Daily Net Assets
Regular Plan 1,264,636,217 189.56 % 1,360,346,341 203.91 %
Savings Plan 3,297,754,997 250.65 % 3,671,926,696 279.09 %
10 Income and Expenses
The total income (including net loss on sale of investments and net change in unrealized depreciation
in value of investments and derivatives) and expenditure during the year is :
Total Income Total Expenditure
Plan Rupees
Percentage of
Average Daily Net
Assets Rupees
Percentage of
Average Daily Net
Assets
Regular Plan 20,307,477 3.04 % 13,836,174 2.07 %
Savings Plan (13,917,351) (1.06) % 27,036,194 2.05 %
11 Equity Derivatives Disclosures:
Futures Details of open interest in equity futures as at March 31, 2009:
Plan Underlying Asset's
Name Number of contracts
Units Outstanding Long
Regular Plan S&P CNX Nifty 16 800
Savings Plan S&P CNX Nifty 46 2300 Notional value of futures contracts bought by the Scheme and outstanding as on March 31, 2009 aggregates to Rs. 2,412,200 and Rs. 6,935,075 for the Regular Plan and Savings Plan respectively. Net Loss on futures transactions recognized in the Revenue Account for the year ended March 31, 2009 aggregates to Rs. 2,053,045 and Rs. 7,124,335 for the Regular Plan and Savings Plan respectively.
HSBC MUTUAL FUND - HSBC MIP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
12 Disclosure Under Regulation 25(8) of the Securities and Exchange Board of India (Mutual
Funds) Regulation, 1996 as amended and in accordance with Accounting Standard 18 on ‘Related Party Disclosures’ issued by the Institute of Chartered Accountants of India (ICAI)
The Scheme has entered into transactions with certain related parties. The information required in this regard in accordance with Accounting Standard 18 on ‘Related Party Disclosures’ issued by the Institute of Chartered Accountants of India and regulation 25(8) of SEBI Regulation, is provided below :
I Related Party Relationships
Name Description of relationship
(i) HSBC Securities and Capital Markets (India) Private Limited Sponsor of the Fund (ii) HSBC Asset Management (India) Private Limited Investment Manager to the
Schemes of HSBC Mutual Fund
(iii) The Hongkong and Shanghai Banking Corporation Limited Associate of the Investment Manager
(iv) Schemes of the Fund, under common control of the Sponsor
HSBC Advantage India Fund HSBC Cash Fund HSBC Dynamic Fund HSBC Emerging Market Fund HSBC Equity Fund HSBC Fixed Term Series 21 upto April 02, 2008 HSBC Fixed Term Series 22 upto April 22, 2008 HSBC Fixed Term Series 23 upto April 02, 2008 HSBC Fixed Term Series 24 upto December 15, 2008 HSBC Fixed Term Series 25 upto April 23, 2008 HSBC Fixed Term Series 27 upto April 02, 2008 HSBC Fixed Term Series 28 upto May 26, 2008 HSBC Fixed Term Series 30 HSBC Fixed Term Series 32 upto July 10, 2008 HSBC Fixed Term Series 33 upto September 08, 2008 HSBC Fixed Term Series 35 upto September 18, 2008 HSBC Fixed Term Series 36 upto October 07, 2008 HSBC Fixed Term Series 37 upto October 22, 2008 HSBC Fixed Term Series 41 HSBC Fixed Term Series 42 HSBC Fixed Term Series 44 HSBC Fixed Term Series 45 HSBC Fixed Term Series 46 HSBC Fixed Term Series 47 upto June 26, 2008 HSBC Fixed Term Series 48 with effect from March 28, 2008 upto October 07, 2008 HSBC Fixed Term Series 49 HSBC Fixed Term Series 50 with effect from April 17, 2008 HSBC Fixed Term Series 51 with effect from April 23, 2008 upto October 23, 2008 HSBC Fixed Term Series 52 with effect from April 24, 2008 HSBC Fixed Term Series 53 with effect from May 23, 2008
HSBC MUTUAL FUND - HSBC MIP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
HSBC Fixed Term Series 54 with effect from May 27, 2008 HSBC Fixed Term Series 55 with effect from June 26, 2008 upto December 29, 2008 HSBC Fixed Term Series 56 with effect from July 25, 2008 HSBC Fixed Term Series 57 with effect from August 13, 2008 HSBC Fixed Term Series 58 with effect from July 22, 2008 upto November 05, 2008 HSBC Fixed Term Series 59 with effect from July 07, 2008 HSBC Fixed Term Series 60 with effect from July 10, 2008 upto October 13, 2008 HSBC Fixed Term Series 61 with effect from July 17, 2008 HSBC Fixed Term Series 62 with effect from August 22, 2008 HSBC Fixed Term Series 63 with effect from September 04, 2008 HSBC Fixed Term Series 66 with effect from September 18, 2008 HSBC Fixed Term Series 68 with effect from October 06, 2008 to January 14, 2009 HSBC Flexi Debt Fund HSBC Floating Rate Fund Long Term Plan HSBC Floating Rate Fund Short Term Plan HSBC Gilt Fund (Formerly, HSBC Gilt Fund – Short Term Plan) HSBC Income Fund Investment Plan HSBC Income Fund Short Term Plan HSBC India Opportunities Fund HSBC Interval Fund - Plan I upto November 20, 2008 HSBC Interval Fund - Plan II upto December 10, 2008 HSBC Interval Fund - Plan III upto December 17, 2008 HSBC Ultra Short Term Bond Fund (Formerly , HSBC Liquid Plus Fund) HSBC Midcap Fund HSBC Small Cap Fund HSBC Tax Saver Equity Fund HSBC Unique Opportunities Fund
(v) Key Management Personnel and their relatives:
Nelum Pahlaj Gidwani – Associate Trustee Naina Lal Kidwai – Chairman of the Investment Manager Vikramaditya – Director and the Chief Executive Officer of the Investment Manager with effect from July 16, 2008 Dr. Rudolf Apenbrink – Associate Tustee Ayaz Ebrahim – Director with effect from April 11, 2008 Sanjay Prakash – Director and the Chief Executive Officer upto July 16, 2008 Avan Nelum Gidwani* – Relative of a Key Management Personnel Rashid K Kidwai* – Relative of a Key Management Personnel Rumaan Kidwai* – Relative of a Key Management Personnel Kemaya Lal Kidwai* – Relative of a Key Management Personnel Amrita Vikramaaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Raaghav Aaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Rhea Aaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Gabriele A Apenbrink* – Relative of a Key Management Personnel Christian R Apenbrink* – Relative of a Key Management Personnel Katharina S Apenbrink* – Relative of a Key Management Personnel Yasmin Ebrahim* – Relative of a Key Management Personnel with effect from April 11, 2008 Daanyal Ebrahim* – Relative of a Key Management Personnel with effect from April 11, 2008 Nilufer Prakash* – Relative of a Key Management Personnel upto July 16, 2008 Tara Prakash* – Relative of a Key Management Personnel upto July 16, 2008 Anahita Prakash* – Relative of a Key Management Personnel upto July 16, 2008
HSBC MUTUAL FUND - HSBC MIP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
* There were no transactions during the year.
II The following transactions occurred with the related parties during the year in the ordinary course of
business: Refer Annexure I
III During the year, HSBC Securities and Capital Markets (India) Private Limited, the Sponsor, was paid brokerage amounting to Rs. 25,017 and Rs. 68,515 on purchase and sale of investments for the Regular Plan and Savings Plan respectively. The Hongkong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid Collection/Bank charges amounting to Rs. 169,266 and Rs. 170,403 for the Regular Plan and Savings Plan respectively, brokerage amounting to Rs 559,017 and Rs 1,141,499 for procuring unit subscriptions for the Regular Plan and Savings Plan respectively and clearing member charges on derivative transactions amounting to Rs. 33,705 and Rs. 95,235 for the Regular Plan and Savings Plan respectively. The brokerage paid was at rates similar to those offered to other distributors.
Further, The Hongkong and Shanghai Banking Corporation Limited, an associate of the Sponsor, is
on the panel of bankers with whom HSBC Mutual Fund places money on fixed deposits and enters
into reverse repo transactions from time to time at competitive rates.
13 Disclosure under Regulation 25(11) of the Securities and Exchange Board of India (Mutual
Funds) Regulations, 1996 as amended
HSBC Mutual Fund has made investments in companies, which hold/ have held units in excess of 5% of the net asset value of any Scheme of HSBC Mutual Fund which have been listed in Annexure II.
The investments comprise equity shares, debentures/ bonds, commercial paper, fixed deposits and
other debt instruments and were made solely on the basis of sound fundamentals of these companies 14 Unclaimed Redemptions:
Details of unclaimed redemptions as at March 31, 2009 are as follows:-
Plan Amount (Rupees)
Number of Investors
Regular Plan 44,427 2 Saving Plan 10,000 1
15 Unclaimed Dividends:
As at March 31, 2009, unclaimed dividends payable to investors are:-
Plan Amount (Rupees)
Number of Investors
Regular Plan 138,003 205 Saving Plan 313,190 277
16 Prior Year’s Figures
HSBC MUTUAL FUND - HSBC MIP FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
Previous year’s figures have been regrouped/re-arranged where appropriate.
Signatures to the Schedules 1 to 8 forming part of the Balance Sheet and the Revenue Account
PARTHA GHOSH Partner Membership No. F-55913 For and on behalf of PRICE WATERHOUSE Chartered Accountants
For Board of Trustees of HSBC Mutual Fund
For HSBC Asset Management (India) Private Limited
Trustee
Vikramaaditya Director and Chief Executive Officer
Trustee
Director
Place: Mumbai Date :
Fund Manager(s)
Auditors' Report
To the Board of Trustees of
HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Income Fund ("The Scheme") as at March 31, 2009 and
the related Revenue Account for the year ended on that date, both of which we have signed under reference to this report.
These financial statements are the responsibility of the Board of Trustees of HSBC Mutual Fund and the Management of
HSBC Asset Management (India) 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. Our procedures included confirmation of securities owned and unit capital balances as at March 31,
2009 by correspondence with the custodian/others and registrar and transfer agent respectively. 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,
(i) 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 also give respectively, a true and fair view of the state of affairs of HSBC Mutual Fund – HSBC Income Fund as
at March 31, 2009 and its net surplus for the year ended on that date.
(ii) The Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended on that date, together with
the notes thereon have been prepared in all material respects 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.
(iii) The methods used to value:
(a) non traded debt securities in accordance with the guidelines for valuation of securities for mutual funds
dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange
Board of India and
(b) privately placed securities in good faith
as at March 31, 2009 as determined in good faith by HSBC Asset Management (India) Private Limited
under procedures approved by the Board of Trustees of HSBC Mutual Fund are fair and reasonable.
PARTHA GHOSH
Partner Membership No. F/55913
For and on behalf of
PRICE WATERHOUSE
Chartered Accountants
Place: Mumbai Date: July 06, 2009
March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008 Schedule Rupees Rupees Rupees Rupees
ASSETS
Investments 1 1,443,729,315 54,809,641 1,074,537,136 180,665,196
Deposits 2 404,000 404,000 205,000 205,000
Other Current Assets 3 76,713,392 65,728,361 93,375,860 180,223,709
TOTAL 1,520,846,707 120,942,002 1,168,117,996 361,093,905
LIABILITIES
Unit Capital 4 1,370,032,284 98,052,989 948,899,682 273,771,835
Reserves and Surplus 5 145,418,259 22,592,424 200,099,981 84,981,686
Current Liabilities and Provisions 6 5,396,164 296,589 19,118,332 2,340,384
TOTAL -0.61 1,520,846,707 120,942,002 -1.10 1,168,117,995 361,093,905
RECONCILIATION OF NET ASSET VALUE PER UNIT
Growth Sub Option
Dividend Sub Option
Weekly Dividend Sub Option Total
Growth Sub Option
Weekly Dividend Sub Option
Monthly Dividend Sub-Option Total
Growth Sub Option
Dividend Sub Option
Weekly Dividend Sub Option Total Total
Growth Sub Option
Dividend Sub Option Total
Growth Sub Option
Dividend Sub Option Total Total
Net Assets as per Balance Sheet (Total Assets less Current Liabilities and Provisions ) (Note 2.5) 103,384,245 50,525,358 256,304,498 410,214,101 144,024,969 - 10,036,162 154,061,131 229,757,383 575,714,802 145,703,126 951,175,311 1,515,450,543 4,973,234 106,825,169 111,798,403 381,520,828 655,680,432 1,037,201,260 1,148,999,663
(5,315,491) (-) (-) (5,315,491) (-) (-) (-) (-) (63,207,369) (47,017,284) (5,105,269) (115,329,922) (120,645,413) (130,939,416) (-) (130,939,416) (158,841,287) (68,972,818) (227,814,105) (358,753,521)
Number of Units in Issue 8,845,986.502 4,837,013.350 24,995,115.818 14,250,000.000 - 1,000,000.000 15,450,409.839 53,157,406.512 14,467,296.399 519,254.435 10,013,416.171 25,707,313.077 58,649,984.489 (500,000.000) (-) (-) (-) (-) (-) (4,652,173.505) (4,147,785.788) (505,339.613) (9,264,262.136) (-) (11,671,564.647) (6,441,356.823)
Net Asset Value per Unit 11.6871 10.4456 10.2542 10.1070 - 10.0362 14.8706 10.8304 10.0712 9.5776 10.6682 14.8409 11.1795 (10.6310) (-) (-) (-) (-) (-) (13.5866) (11.3355) (10.1026) (14.1338) (-) (13.6093) (10.7078)
Notes to the Financial Statements. 8
The schedules referred to herein form an integral part of the Financial Statements.
This is the Balance Sheet referred to in our report of even date.
PARTHA GHOSH For Board of Trustees of For HSBC Asset Management (India)
Partner HSBC Mutual Fund Private Limited
Membership No. F-55913 For and on behalf of PRICE WATERHOUSE Chartered Accountants Vikramaaditya
Trustee Director and Chief Executive Officer
TrusteeDirector
Place: Mumbai
Date : 06 July 2009 Fund Manager(s)
March 31, 2009 Short Term Plan March 31, 2009
HSBC MUTUAL FUND - HSBC INCOME FUND
Investment PlanShort Term Plan
Balance Sheet as at March 31, 2009
Institutional Plus Option
Investment Plan
RupeesInstitutional Option Institutional OptionRegular Option Regular Option
(March 31, 2008) Rupees
(March 31, 2008)
0
April 01, 2008 to April 01, 2007 to April 01, 2008 to April 01, 2007 to Schedule March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008
Rupees Rupees Rupees Rupees
INCOME AND GAINS
Interest and Discount 7 45,988,592 15,748,351 33,885,223 19,910,987
3,179,409 - - 2,188,886
49,168,001 15,748,351 33,885,223 22,099,873
EXPENSES AND LOSSES
Net Loss on Sale of Investments - 4,442,144 9,538,376 -
(Including Net Loss on Inter - Scheme Sale of Investments Rs. 3,367,120 for Investment Plan (Previous year : Net Loss Rs. 6,00,263) (Note 2.3)
Investment Management and Advisory Fees (Note 3) 1,747,698 853,111 1,838,001 2,088,768
Transfer Agent Fees and Expenses 308,457 70,537 341,991 170,202
Trusteeship Fees and Expenses (Note 4) 2,206 401 1,679 1,293
Custodian Fees and Expenses (Note 5) 95,655 35,598 49,694 44,417
Audit Fees 50,000 50,000 50,000 50,000
Selling and Distribution Expenses 3,846,582 576,006 10,142,755 1,017,499
Other Operating Expenses 41,082 49,915 182,363 181,871
TOTAL 6,091,680 6,077,712 22,144,859 3,554,050
Less: Expenses to be Reimbursed by the Investment Manager 1,441,465 - 5,880,374 -
TOTAL 4,650,215 - 16,264,485 -
Net Realised Gains for the Year 44,517,786 9,670,639 17,620,738 18,545,823
Net Change in Unrealised Depreciation in Value of Investments - 6,632,778 (15,113,237) 5,041,554
Net Gains for the Year 44,517,786 16,303,417 2,507,501 23,587,377
Net Change in Unrealised Appreciation in Value of Investments 4,886,296 51,791 2,562,654 343,981
Net Surplus including Net change in Unrealised Appreciation/Depreciation in Value of Investments 49,404,082 16,355,208 5,070,156 23,931,358
Transferred to Unrealised Appreciation Reserve (4,886,296) (51,791) (2,562,654) (343,981)
Net Surplus for the Year 0.25 44,517,786 16,303,417 0.63 2,507,501 23,587,377
0.05 0.63
Short Term Plan Short Term Plan Investment Plan Investment Plan
April 01, 2008 to March 31, 2009April 01, 2008 to March
31, 2009 April 01, 2008 to March 31, 2009April 01, 2008 to March
31, 2009
(April 01, 2007 to March 31, 2008)(April 01, 2007 to March
31, 2008) (April 01, 2007 to March 31, 2008)(April 01, 2007 to March
31, 2008)Rupees Rupees Rupees Rupees
Net Surplus for the Year 904,177 8,272,889 10,955,427 1,151,576 9,998,871 10,724 11,161,171 8,783,710 10,952,950 2,664,528 22,401,188 44,517,786 13,888 2,119,749 2,133,637 8,029,216 (7,655,352) 373,864 2,507,501
(343,937) (1,186,865) (2,905,779) (-) (-) (-) (-) (7,685,303) (5,134,843) (577,492) (13,397,638) (16,303,417) (2,941,551) (-) (2,941,551) (13,786,605) (6,859,221) (20,645,826) (23,587,377)
Transfer from Income Equalisation Reserve (Note 2.7) 13,464,971 816,996 14,295,568 - (929,979) - (929,979) 39,073,053 4,526,769 399,256 43,999,078 57,364,667 - 2,423,974 2,423,974 57,165,502 53,521,859 110,687,361 113,111,335
(-) (-58,578) (-188,008) (-) (-) (-) (-) (-7,462,906) (273,019) (22,170) (-7,167,717) (-7,355,725) (29,015,318) (-) (29,015,318) (-2,687,289) (-68,162) (-2,755,451) (26,259,867)
Transferred from Unit Premium Reserve (Note 2.6) - - - - - - - - - - - - - - - - - - -
(-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-)
Transfer from Reserve Fund - - - - - - - - 4,824,003 38,861 4,862,864 4,862,864 - - - - 1,778,927 1,778,927 1,778,927
(-) (-) (8,867,609) (-) (-) (-) (-) (-) (-) (-) (-) (8,867,609) (-) (-) (-) (-) (2,799,688) (2,799,688) (2,799,688)
Dividend / Distribution - (6,513,773) (7,984,257) - (6,792,233) - (6,792,233) - (17,075,370) (2,530,993) (19,606,363) (34,382,853) - (2,028,301) (2,028,301) - (8,344,919) (8,344,919) (10,373,220)
(-) (-929,517) (-1,928,185) (-) (-) (-) (-) (-) (-) (-452,383) (-452,383) (-2,380,568) (-) (-) (-) (-) (-3,737,236) (-3,737,236) (-3,737,236)
Dividend / Distribution Tax thereon - (1,328,072) (1,594,846) - (1,539,120) - (1,539,120) - (2,673,723) (431,501) (3,105,224) (6,239,190) - (325,410) (325,410) - (1,230,570) (1,230,570) (1,555,980)
(-) (-192,604) (-368,261) (-) (-) (-) (-) (-) (-) (-101,236) (-101,236) (-469,497) (-) (-) (-) (-) (-532,962) (-532,962) (-532,962)
Balance Transferred to Reserve Fund 14,369,148 1,248,040 15,671,892 1,151,576 737,539 10,724 1,899,839 47,856,763 554,629 140,151 48,551,543 66,123,274 13,888 2,190,012 2,203,900 65,194,718 38,069,945 103,264,663 105,468,563 (343,937) (6,166) (9,288,934) (-) (-) (-) (-) (222,397) (5,407,862) (46,043) (5,676,302) (14,965,236) (31,956,869) (-) (31,956,869) (11,099,316) (5,320,549) (16,419,865) (48,376,734)
Notes to the Financial Statements. 8
This is the Revenue Account referred to in our report of even date.
PARTHA GHOSH For Board of Trustees of For HSBC Asset Management (India)
Partner HSBC Mutual Fund Private Limited
Membership No. F-55913 For and on behalf of PRICE WATERHOUSE Chartered Accountants Vikramaaditya
Trustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai
Date : 06 July 2009 Fund Manager(s)
The schedules referred to herein form an integral part of the Financial Statements.
TOTAL
HSBC MUTUAL FUND - HSBC INCOME FUND
Revenue Account for the year ended March 31, 2009
Net Profit on Sale of Investments (Net of net loss on Inter-Scheme Sale of Investments Rs 2,75,414 for Short Term Plan (Previous year : Net Loss Rs. 3,951,883) (Note 2.3)
Short Term Plan Investment Plan
1
SCHEDULE 1 Investments
(Notes 2.2, 2.3, 7, 8, 9 ,10 and 13) Market/Fair Value Cost Market/Fair Value Cost Market/Fair Value Cost Market/Fair Value Cost Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees
(Refer to the attached Statement of Portfolio Holding as at March 31, 2009)
Non Convertible Debentures and Bonds Listed / Awaiting Listing 841,576,025 836,637,938 26,083,881 26,065,236 613,929,710 611,023,075 154,884,661 154,540,680
Privately Placed Non Convertible Debentures / Bonds - - 20,837,942 20,804,796 - - - -
Asset Backed Securities - - - - 7,266,992 8,048,220 25,746,269 27,253,761
Commercial Paper / Certificate of Deposit 602,153,290 602,153,290 7,887,818 7,887,818 - - - -
Government of India Securities - - - - 453,340,434 469,185,683 34,266 40,016
TOTAL 1,443,729,315 1,438,791,228 54,809,641 54,757,850 1,074,537,136 1,088,256,978 180,665,196 181,834,457
SCHEDULE 2 Deposits March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008
Rupees Rupees Rupees Rupees
Margin Deposit with the Clearing Corporation of India Limited towards Collateralized Borrowing and Lending Obligations. 404,000 404,000 205,000 205,000
TOTAL 404,000 404,000 205,000 205,000
SCHEDULE 3 Other Current Assets March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008
Rupees Rupees Rupees Rupees
Balances with Banks - in Current Account 9,363,021 1,630,230 4,418,475 4,062,200 - in Dividend Account 905 897 61,486 78,184
Reverse Repos 7,965,248 63,190,549 16,912,468 169,612,209
Collateralised Borrowing and Lending Obligation 8,333,671 - 17,694,592 -
Sales Contracts Awaiting Completion - Government Securities - - 25,939,291 -
Unit Subscription Receivable 5,351,000 - 15,000 -
Inter-Scheme Receivable - For Switch-In 14,785,792 - 92,695 - - For Others 299,000 - - -
Interest Receivable on : -Debentures and Bonds 29,117,449 784,024 16,075,152 6,110,974 -Government of India Securities - - 5,932,588 720 -Reverse Repos 1,025 13,913 2,176 37,344 -Collateralised Borrowing and Lending Obligation 1,021 - 2,168 - -Margin Deposit with Clearing Corporation of India Limited 1,146 - 582 -
Investment Towards Unclaimed Redemption in 19,668.706 Units of HSBC Cash Fund - Growth Option for Investment Plan (Previous Year : 12,479.233 Units) Market Value Rs. 286,660 (Previous Year Rs. 169,602)) (Note 14) - - 239,310 140,767
Investment Towards Unclaimed Dividend in 4,643.099 Units of HSBC Cash Fund - Growth Option for Short Term Plan (market value Rs.67,670)(Previous Year : Rs.63,103) and 15,560.526 Units (Previous Year : in 15,378.241 Units) of HSBC Cash Fund - Growth Option for Investment Plan (Market Value Rs. 2,26,785) (Previous year Rs. 209,001) (Note 15) 52,508 52,508 101,710 181,311
Receivable from Investment Manager 1,441,587 - 5,880,588 -
Miscellaneous Receivables 19 56,240 7,578 -
TOTAL 76,713,392 65,728,361 93,375,860 180,223,709
#
HSBC MUTUAL FUND - HSBC INCOME FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
Short Term Plan March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008
Investment Plan
Short Term Plan Investment Plan
Short Term Plan Investment Plan
2
SCHEDULE 4 Unit Capital
March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008Rupees Units Rupees Units Rupees Units Rupees Units
Institutional Option Growth Sub Option Issued and Subscribed: - - - - - - - - Units of Rs. 10 each fully paid up Outstanding: At the beginning of the year 5,000,000 500,000.000 - - 92,642,621 9,264,262.136 17,859,694 1,785,969.425 Issued during the year 114,118,405 11,411,840.508 125,000,000 12,500,000.000 10,192,544 1,019,254.435 74,782,927 7,478,292.711
119,118,405 11,911,840.508 125,000,000 12,500,000.000 102,835,165 10,283,516.571 92,642,621 9,264,262.136 Redeemed during the year 30,658,540 3,065,854.006 120,000,000 12,000,000.000 97,642,621 9,764,262.136 - - At the end of the year 88,459,865 8,845,986.502 5,000,000 500,000.000 5,192,544 519,254.435 92,642,621 9,264,262.136
Dividend Sub Option Issued and Subscribed: Units of Rs. 10 each fully paid up - - - - - - - - Outstanding: At the beginning of the year / period - - 31,133,708 3,113,370.838 - - - - Issued during the year / period 175,327,626 17,532,762.612 10,915,172 1,091,517.166 199,989,822 19,998,982.155 - -
175,327,626 17,532,762.612 42,048,880 4,204,888.004 199,989,822 19,998,982.155 - - Redeemed during the year / period 126,957,492 12,695,749.262 42,048,880 4,204,888.004 99,855,660 9,985,565.984 - - At the end of the year / period 48,370,134 4,837,013.350 - - 100,134,162 10,013,416.171 - -
Weekly Dividend Sub Option Issued and Subscribed: Units of Rs. 10 each fully paid up - - - - - - - - Outstanding: At the beginning of the year / period - - - - - - - - Issued during the year / period 830,214,028 83,021,402.762 45,535,812 4,553,581.232 - - - -
830,214,028 83,021,402.762 45,535,812 4,553,581.232 - - - - Redeemed during the year / period 580,262,869 58,026,286.944 45,535,812 4,553,581.232 - - - - At the end of the year / period 249,951,158 24,995,115.818 - - - - - -
- - - - TOTAL 386,781,157 38,678,115.670 5,000,000 500,000.000 105,326,706 10,532,670.606 92,642,621 9,264,262.136
Institutional Plus Option Growth Sub Option Issued and Subscribed: Units of Rs. 10 each fully paid up - - - - - - - - Outstanding: Issued during the period 142,500,000 14,250,000.000 - - - - - -
142,500,000 14,250,000.000 - - - - - - Redeemed during the period - - - - - - - - At the end of the period 142,500,000 14,250,000.000 - - - - - -
Weekly Dividend Sub Option Issued and Subscribed: Units of Rs. 10 each fully paid up - - - - - - - - Outstanding: Issued during the period 758,047,021 75,804,702.056 - - - - - -
758,047,021 75,804,702.056 - - - - - - Redeemed during the period 758,047,021 75,804,702.056 - - - - - - At the end of the period - - - - - - - -
Monthly Dividend Sub Option Issued and Subscribed: Units of Rs. 10 each fully paid up - - - - - - - - Outstanding: Issued during the period 10,000,000 1,000,000.000 - - - - - -
10,000,000 1,000,000.000 - - - - - - Redeemed during the period - - - - - - - - At the end of the period 10,000,000 1,000,000.000 - - - - - -
TOTAL 152,500,000 15,250,000.000 - - - - - -
Regular Option Growth Sub Option Issued and Subscribed:
Units of Rs. 10 each fully paid up 1,368,130,625 136,813,062.500 1,368,130,625 136,813,062.500 1,964,242,544 196,424,254.400 1,964,242,544 196,424,254.400 Outstanding: At the beginning of the year 46,521,735 4,652,173.505 82,666,880 8,266,687.991 116,715,646 11,671,564.647 137,597,102 13,759,710.196 Issued during the year / period 196,032,470 19,603,247.004 51,795,133 5,179,513.274 244,822,721 24,482,272.058 75,428,113 7,542,811.349
242,554,205 24,255,420.509 134,462,013 13,446,201.265 361,538,367 36,153,836.705 213,025,215 21,302,521.545
Redeemed during the year / period 88,050,107 8,805,010.670 87,940,278 8,794,027.760 104,465,236 10,446,523.628 96,309,569 9,630,956.898
At the end of the year 154,504,098 15,450,409.839 46,521,735 4,652,173.505 257,073,131 25,707,313.077 116,715,646 11,671,564.647
Short Term Plan Investment Plan
HSBC MUTUAL FUND - HSBC INCOME FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
SCHEDULE 4 Unit Capital
March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008Rupees Units Rupees Units Rupees Units Rupees Units
Short Term Plan Investment Plan
HSBC MUTUAL FUND - HSBC INCOME FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
Dividend Sub Option Issued and Subscribed:
Units of Rs. 10 each fully paid up 53,896,150 5,389,615.000 53,896,150 5,389,615.000 108,128,820 10,812,882.000 108,128,820 10,812,882.000
Outstanding: At the beginning of the year 41,477,858 4,147,785.788 65,185,167 6,518,516.669 64,413,568 6,441,356.823 64,975,491 6,497,549.082 Issued during the year / period 635,631,889 63,563,188.891 29,557,387 2,955,738.745 595,715,032 59,571,503.172 31,158,403 3,115,840.309
677,109,747 67,710,974.679 94,742,554 9,474,255.414 660,128,600 66,012,859.995 96,133,894 9,613,389.391 Redeemed during the year / period 145,535,682 14,553,568.167 53,264,696 5,326,469.626 73,628,755 7,362,875.506 31,720,326 3,172,032.568 At the end of the year 531,574,065 53,157,406.512 41,477,858 4,147,785.788 586,499,845 58,649,984.489 64,413,568 6,441,356.823
Weekly Dividend Sub Option Issued and Subscribed:
Units of Rs. 10 each fully paid up 704,627 70,462.722 704,627 70,462.722 - - - -
Outstanding: At the beginning of the year 5,053,396 505,339.613 - - - - - - Issued during the year 178,835,452 17,883,545.155 24,769,905 2,476,990.544 - - - -
183,888,848 18,388,884.768 24,769,905 2,476,990.544 - - - - Redeemed during the year 39,215,884 3,921,588.369 19,716,509 1,971,650.931 - - - - At the end of the year 144,672,964 14,467,296.399 5,053,396 505,339.613 - - - -
TOTAL 830,751,127 83,075,112.750 93,052,989 9,305,298.906 843,572,976 84,357,297.566 181,129,214 18,112,921.470
TOTAL 1,370,032,284 137,003,228.420 98,052,989 9,805,298.906 948,899,682 94,889,968.172 273,771,835 27,377,183.606
Note: HSBC Asset Management (India) Private Limited, the investment manager holds 500,000 units (Previous year : 500,000 units) in the HSBC Income Fund - Short Term Plan Institutional Option Growth Sub Option as at March 31,2009.
SCHEDULE 5 Reserves and Surplus
Total Total
Unit Premium Reserve (Note 2.6 )
At the beginning of the year (11,580,047) (18,822,040)
(-6,085,445) (-18,945,104)
Added during the year 56,679,130 8,866,005
(-5,494,600) (123,064)
At the end of the year 45,099,083 (9,956,035)
(-11,580,046) (-18,822,040)
Income Equalisation Reserve (Note 2.7)
Added during the year 58,294,646 113,111,335
(-7,355,725) (26,259,866)
Transferred to Revenue Account (58,294,646) (113,111,335)
7,355,725 (-26,259,866)
At the end of the year - -
(-) (-)
Unrealised Appreciation Reserve
At the beginning of the year 51,791 343,981
(-) (-) Net change in Unrealised Appreciation in Value of Investments Transferred from Revenue Account 4,886,296 2,562,654
(51,791) (343,981)
At the end of the year 4,938,087 2,906,635
(51,791) (343,981)
Reserve Fund
At the beginning of the year 34,120,679 103,459,745
(28,023,052) (57,882,699)
Transfer to Revenue Account (4,862,864) (1,778,927)
(-8,867,609) (-2,799,688)
Balance Transferred from Revenue Account 66,123,274 105,468,563
(14,965,236) (48,376,734) At the end of the year 95,381,089 207,149,381
(34,120,679) (103,459,745)
TOTAL 145,418,259 * 200,099,981 * (22,592,424) * (84,981,686) *
* The share of the Plans / Options of the Reserves and Surplus is as follows : March 31, 2009 March 31, 2009
(March 31, 2008) (March 31, 2008)
Regular OptionGrowth Sub Option : Rs. 75,253,285 124,447,697
(16,685,634) (42,125,641)Dividend Sub Option : Rs. 44,140,737 69,180,587
(5,539,426) (4,559,250)
Weekly Dividend Sub Option : Rs. 1,030,162 -
(51,873) -
Total (A) 120,424,184 193,628,284
(22,276,933) (46,684,891)
Institutional Option
Growth Sub Option : Rs. 14,924,380 (219,310)
(315,491) (38,296,795)
Dividend Sub Option : Rs. 2,155,224 6,691,007
(-) (-)
Weekly Dividend Sub Option : Rs. 6,353,340 -
(-) - Total (B) 23,432,944 6,471,697
(315,491) (38,296,795)
Institutional Plus OptionGrowth Sub Option : Rs. 1,524,969 -
(-) -
Weekly Dividend Sub Option : Rs. - -
(-) -
Monthly Dividend Sub Option : Rs. 36,162 -
(-) - Total (C) 1,561,131 -
(-) -
Total (A+B+C) : Rs. 145,418,259 200,099,981
(22,592,424) (84,981,686)
HSBC MUTUAL FUND - HSBC INCOME FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
Rupees
March 31, 2009Short Term Plan Investment PlanMarch 31, 2009
(March 31, 2008) (March 31, 2008)Rupees
3
SCHEDULE 6Current Liabilities and Provisions March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008
Rupees Rupees Rupees RupeesCurrent Liabilities
Investment Management and Advisory Fees 416,509 108,728 304,050 638,535
Transfer Agent Fees and Expenses 58,420 4,706 71,051 20,286
Custodian Fees and Expenses 35,450 2,929 14,173 7,578
Audit Fees 50,000 50,000 50,000 50,000
Selling and Distribution Expenses 1,597,899 38,030 2,434,277 135,710
Purchase Contracts Awaiting Completion - - 14,161,250 -
Unit Redemption Payable 2,151,630 - 28,088 -
Inter Scheme Payable - For Switch Out - - 1,272,632 1,003,301 - For Others - - 299,000 -
Units Pending Allotment - - - 24
Dividend Payable 930,882 - - -
Dividend Tax Payable - 848 - -
Unclaimed Redemption (Note 14) - - 239,310 202,786
Unclaimed Dividend (Note 15) 53,399 53,399 104,058 201,510
Load Payable - - - 26,605
Temporary Book Overdraft 78 - - -
Sundry Payables 101,897 37,949 140,443 54,049
TOTAL 5,396,164 296,589 19,118,332 2,340,384
SCHEDULE 7 Interest and Discount (Note 2.4) April 01, 2008 to April 01, 2007 to April 01, 2008 to April 01, 2007 to
March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008Rupees Rupees Rupees Rupees
Debentures / Bonds 15,659,194 4,930,740 18,138,317 9,245,990
Asset Backed Securities - - 587,348 3,900,418
Commercial Paper / Certificate of Deposit 26,611,387 9,059,476 1,184,936 331,018
Government of India Securities - 16,646 9,571,632 3,468,497
Reverse Repos 2,911,033 1,719,807 3,826,439 2,851,935
Collateralised Borrowing and Lending Obligations 801,821 14,705 573,951 109,641
Margin Deposit with the Clearing Corporation of India Limited 5,157 6,977 2,600 3,488
TOTAL 45,988,592 15,748,351 33,885,223 19,910,987
Short Term Plan Investment Plan
HSBC MUTUAL FUND - HSBC INCOME FUND Schedules forming part of the Balance Sheet as at March 31, 2009 and the
Revenue Account for the year ended March 31, 2009
Short Term Plan Investment Plan
4
Description Quantity Market / Fair Value Rupees
HSBC INCOME FUND - SHORT TERM PLANNon-Convertible Debentures / Bonds Listed / Awaiting listing (58.29 %)Banks (21.27 %)
9.25% Exim Bank Limited 2013 $ @ 84 86,514,876 11.10% Exim Bank Limited 2011 $ @ 50 51,456,750 9.25% Exim Bank Limited 2012 $ @ 40 41,066,328
179,037,954 Finance (67.60 %)
8.70% Power Finance Corporation Limited 2010 90 91,444,230 8.46% Indian Railway Finance Corporation Limited 2014 68 68,225,828 9.68% Indian Railway Finance Corporation Limited 2010 $ 50 51,216,915 8.75% Indian Railway Finance Corporation Limited 2013 $ 50 50,908,428 8.65% National Housing Bank Limited 2012 $ 50 50,588,848 8.49% Power Finance Corporation Limited 2011 50 50,499,250 10.95% Rural Electrification Corporation Limited 2011 $ 46 49,032,803 11.50% Rural Electrification Corporation Limited 2013 39 43,220,268 11.45% Rural Electrification Corporation Limited 2010 $ 39 41,256,535 10.75% Power Finance Corporation 2011 25 26,341,025 9.45% Rural Electrification Corporation Limited 2013 25 25,737,600 9.01% Power Finance Corporation Limited 2011 $ 20 20,418,551
568,890,281 Finance & Term Lending (11.13 %)
9.50% National Bank For Agricultural and Rural Development Limited 2012 $ 50 51,799,181 9.15% National Bank For Agricultural and Rural Development Limited 2010 $ 41 41,848,608
93,647,789 Total (Cost Rs. 836,637,938) 841,576,024 Commercial Papers/Certificate of Deposits (41.71 %)Certificate of Deposits (100 %)
Allahabad Bank $ @ 1,000 94,008,429 Corporation Bank $ @ 950 89,406,226 Canara Bank $ 900 84,900,534 Corporation Bank $ @ 500 48,839,563 State Bank of Indore $ @ 500 47,344,429 Punjab National Bank $ 500 47,213,136 Canara Bank $ 500 47,195,835 Punjab National Bank $ 500 46,572,624 IDBI Bank Limited $ @ 450 42,276,010 Oriental Bank of Commerce $ 300 28,403,714 Oriental Bank of Commerce $ 200 19,051,402 Exim Bank Limited $ @ 70 6,941,389
602,153,291 Total (Cost Rs. 602,153,290) 602,153,291 TOTAL INVESTMENTS (Cost Rs. 1,438,791,228) 1,443,729,315
HSBC INCOME FUND - INVESTMENT PLANNon-Convertible Debentures / Bonds Listed / Awaiting listing (57.13 %)Banks (28.02 %)
9.50% Exim Bank Limited 2013 @ 80 82,458,480 8.40% State Bank of India 2018 $ @ 50 48,767,892 9.25% Exim Bank Limited 2013 $ @ 16 16,479,024 8.90% State Bank of India 2023 $ @ 14 14,071,220 9.25% Exim Bank Limited 2012 $ @ 10 10,266,582
172,043,198 Finance (67.67 %)
11.25% Power Finance Corporation Limited 2018 106 119,729,120 8.65% Rural Electrification Corporation Limited 2019 117 113,643,855 8.46% Indian Railway Finance Corporation Limited 2014 52 52,172,692 8.55% Indian Railway Finance Corporation Limited 2019 50 48,735,650 10.60% Indian Railway Finance Corporation Limited 2018 $ 27 30,145,191 9.22% Power Finance Corporation Limited 2012 $ 25 25,621,051 9.45% Rural Electrification Corporation Limited 2013 15 15,442,560 9.07% Rural Electrification Corporation Limited 2018 $ 10 9,961,522
415,451,641 Finance & Term Lending (4.31 %)
9.80% National Bank For Agricultural and Rural Development Limited 2012 $ 25 26,434,871 26,434,871
Total (Cost Rs. 611,023,075) 613,929,710
Government of India Securities (42.19 %)6.05% GOI Bonds 2019 2,725,000 254,079,000 7.46% GOI Bonds 2017 850,000 86,360,000 8.35% GOI Bonds 2022 400,000 42,200,000 7.56% GOI Bonds 2014 350,000 36,330,000 7.95% GOI Bonds 2032 290,000 29,406,000 7.95% GOI Bonds 2025 50,000 4,929,000 5.59% GOI Bonds 2016 400 36,434
453,340,434 Total (Cost Rs. 469,185,683) 453,340,434
Asset Backed Securities (0.68 %)Finance & Term Lending (100 %)
India MBS 2002 Series I-D (LIC Housing Finance) PTC 2017 * 5 7,266,992 7,266,992
Total (Cost Rs. 8,048,220) 7,266,992 TOTAL INVESTMENTS (Cost Rs. 1,088,256,978) 1,074,537,136
HSBC MUTUAL FUND - HSBC INCOME FUNDStatement of Portfolio Holding as at March 31, 2009
(Referred to in Schedule 1 to the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009)
Confirmation has been received from JP Morgan Chase Bank, Mumbai Branch at the end of the financial year for the investments held by them and from The Hongkongand Shanghai Banking Corporation Limited for the securities held by them in the constituent subsidiary general ledger (CSGL) account.
* Fair value of privately placed securities as determined in good faith by HSBC Asset Management (India) Private Limited under procedures approved by the Board ofTrustees.
$ Fair value of non traded and thinly traded debt securities as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board ofTrustees in accordance with the guidelines for valuation of securities for Mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by theSecurities and Exchange Board of India.@ Investment in companies which have invested more than five percent of the net asset value of any schemes of HSBC Mutual Fund.
5
HSBC MUTUAL FUND - HSBC INCOME FUND - INVESTMENT PLAN
Schedules forming part of the Balance Sheet as at March 31, 2009 and theRevenue Account for the year ended March 31, 2009.
Annexure 1
(i) Transactions during the Year
Nature of Transaction Investment Manager
Associate of Investment
Manager
Schemes under Common Control of
Sponsor Total
Purchase of Investments - - 285,228,959 285,228,959Previous Year - - 74,988,166 74,988,166
Sale of Investments - - 301,433,033 301,433,033Previous Year - - 112,600,801 112,600,801
Investment Management and Advisory Fees 1,838,001 - - 1,838,001Previous Year 2,088,768 - - 2,088,768
Brokerage/ Commission on Distribution of Units - 5,263,325 - 5,263,325Previous Year - 582,379 - 582,379
Charges for Services Provided by Bank - 41,395 - 41,395Previous Year - 102,302 - 102,302
Reimbursement of Expenses 5,880,374 5,880,374Previous Year - -
(ii) Outstanding As At Year End
Nature of Transaction Investment Manager
Associate of Investment
Manager
Schemes under Common Control of
Sponsor Total
Investment Management and Advisory Fees Payable 304,050 - - 304,050Previous Year 638,535 - - 638,535
Commission Payable for Distribution of Units - 1,588,037 - 1,588,037Previous Year - 42,084 - 42,084
Other Payables - - 299,000 299,000Previous Year - - - -
Other Receivables 5,580,588 - - 5,580,588Previous Year - - - -
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control ofthe Sponsor.
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Purchase of InvestmentsHSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 64,042,434 - HSBC Fixed Term Series 49 50,555,600 - HSBC Fixed Term Series 61 39,364,723 - HSBC Dynamic Fund 32,182,656 - HSBC MIP Fund Regular Plan 9,991,836 48,352,674HSBC Income Fund Short Term Plan - 1,951,510HSBC Interval Fund - Plan II - 24,683,982
Sale of InvestmentsHSBC Cash Fund 107,343,911 - HSBC MIP Fund Savings Plan 81,573,833 - HSBC Flexi Debt Fund 40,071,537 - HSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) - 76,843,639 HSBC MIP Fund Regular Plan 27,810,155 24,107,608 HSBC Fixed Term Series 24 - 11,649,554
Other PayablesHSBC Income Fund Short term Plan 299,000 -
0
HSBC MUTUAL FUND - HSBC INCOME FUND - SHORT TERM PLAN
Schedules forming part of the Balance Sheet as at March 31, 2009 and theRevenue Account for the year ended March 31, 2009.
Annexure 1
(i) Transactions during the Year
Nature of Transaction Investment Manager
Associate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Purchase of Investments - - 1,195,459,978 - 1,195,459,978 Previous Year - - 272,441,376 - 272,441,376
Sale of Investments - - 614,136,281 - 614,136,281 Previous Year - - 250,629,083 - 250,629,083
Subscription of Units (including switch in and dividend reinvestment) - - - - - Previous Year 5,000,000 - - - 5,000,000
Redemption of Units (including switch out) - - - - - Previous Year - - - 305,261 305,261
Investment Management and Advisory Fees 1,747,698 - - - 1,747,698 Previous Year 853,111 - - - 853,111
Brokerage/ Commission on Distribution of Units - 1,678,765 - - 1,678,765 Previous Year - 251,473 - - 251,473
Reimbursement of Expenses 1,441,465 - - - 1,441,465 Previous Year - - - - -
Charges for Services Provided by Bank - 3,854 - - 3,854 Previous Year - 3,937 - - 3,937
(ii) Outstanding As At Year End
Nature of Transaction Investment Manager
Associate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Investment Management and Advisory Fees Payable 416,509 - - - 416,509 Previous Year 108,728 - - - 108,728
Brokerage/ Commission Payable on Distribution of Units - 1,194,539 - - 1,194,539 Previous Year - 14,067 - - 14,067
Units Outstanding As At Year End 5,843,550 - - - 5,843,550 Previous Year 5,315,500 - - 304,078 5,619,578
Other Receivables 1,441,587 - 299,000 - 1,740,587 Previous Year - - - - -
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control ofthe Sponsor.
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Purchase of InvestmentsHSBC Cash Fund 234,790,337 89,947,569 HSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 508,322,846 73,588,898 HSBC Floating Rate Fund Long Term Plan 19,576,239 38,188,023 HSBC Fixed Term Series 15 - 19,561,839 HSBC Flexi Debt Fund 177,803,163 -
Sale of InvestmentsHSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 46,547,344 76,990,006 HSBC Cash Fund 123,985,965 - HSBC Flexi Debt Fund 180,636,003 - HSBC MIP Fund Savings Plan 108,721,964 68,722,146 HSBC Floating Rate Fund Long Term Plan - 62,951,413 HSBC Fixed Term Series 59 94,235,109 - HSBC MIP Fund Regular Plan - 27,318,663
Other ReceivablesHSBC Income Fund Investment Plan 299,000 -
(iv) Disclosures in respect of material transactions with persons referred to in Note 13 (I)(v) for key management personneland their relatives
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Redemption of Units (including switch out)Sanjay Prakash - 305,261
1
HSBC MUTUAL FUND - HSBC INCOME FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
SCHEDULE 8
0Notes to the Financial Statements
1 Organisation
HSBC Income Fund (the “Scheme”) is an open-ended income scheme of HSBC Mutual Fund (the “Fund”) and was launched on November 14, 2002. HSBC Mutual Fund has been sponsored by HSBC Securities and Capital Markets (India) Private Limited. HSBC Asset Management (India) Private Limited incorporated under the Companies Act, 1956, has been appointed as the asset management company. The duration of the Scheme is perpetual. The Scheme closed for initial subscription on December 3, 2002 and reopened for issue and redemption of units on December 27, 2002. The investment objective of the Scheme is to provide a reasonable income whilst maintaining a prudent policy of capital conservation. The Scheme has two Plans – Short Term Plan and Investment Plan, each with a separate portfolio each offering Institutional and Regular Option. Both the Institutional and Regular Options under the Short Term Plan offer Growth, Dividend and Weekly Dividend Sub-options. Both the Institutional and Regular Options under the Investment Plan offer Growth and Dividend Sub-Options. The Weekly Dividend Sub-option under the Institutional and Regular Options of the Short Term Plan was introduced in accordance with the addendum dated October 31, 2006 made to the common offer document dated November 29, 2004 and units were allotted on November 7, 2006 and November 17, 2006 respectively at Rs. 10 per unit. The Institutional Option under the Short Term Plan and Investment Plan was introduced during the year ended March 31, 2004 and units were allotted on September 15, 2003 under the Growth and Dividend Sub-options at the net asset value of the Growth Sub-option of the Regular Option, while the terms of the addendum to the offer document dated August 29, 2003 stated that unit holders opting for the Growth or Dividend Sub-options in Institutional Option would be allotted units at the existing net asset values of the Growth and Dividend Sub-options respectively, of the Regular Option. However, this has not resulted in any loss or gain to the unit holders opting for the Sub-options under the Institutional Option nor has it had any impact on the ongoing net asset values of the respective Sub-options of the Institutional Option. In accordance with the addendum to the offer document dated April 29, 2008, Institutional Plus Option was introduced with Monthly Dividend, Quarterly Dividend, Weekly Dividend Re-investment and Growth sub-options with effect from May 05, 2008 under Short Term Plan and units were allotted on May 05, 2008, February 18, 2009 and March 26, 2009 in Weekly Dividend Re-investment, Growth and Monthly Dividend sub-options respectively. The Scheme will not declare dividend under the Growth Sub-Option of both the Plans in normal circumstances. The income earned on such units will remain invested within the Scheme and will be reflected in the net asset value of these Plans.
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 Portfolio Valuation
Investments are stated at market/fair value at the Balance Sheet date/date of determination. In valuing the Scheme’s investments:
HSBC MUTUAL FUND - HSBC INCOME FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
i. Debt securities listed on a recognized stock exchange are valued at the last quoted closing price on the National Stock Exchange of India Limited (NSE). If no sale is reported at that time, such securities are valued at fair value as determined in good faith by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund.
ii. Non-traded and thinly traded debt securities, are valued at fair value as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India (SEBI).
iii. Privately placed debt securities are valued at fair value as determined in good faith by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund.
iv. Asset backed securities are valued at fair value as determined in good faith by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund.
v. Government securities are valued at prices obtained from The Credit Rating Information Services of India Limited in accordance with the guidelines for valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by SEBI.
vi. Instruments bought on ‘repo’ basis are valued at the resale price after deduction of applicable interest up to the date of resale.
vii. Traded money market securities are valued at the yield at which they were traded on the valuation date. If no sale is reported at that time, such security is valued at the last traded price plus accretion of the difference between the face value and the last traded price. Non traded money market instruments are valued at cost plus accrued interest.
Following the issue of guidance note on accounting for investments in the financial statements of the mutual funds by the Institute of Chartered Accountants of India (pursuant to the Eleventh Schedule of the Regulations) net unrealised appreciation / depreciation in the value of investments is determined separately for each category of investments. In respect of each category of investments, the net change in the unrealised appreciation if any, between two balance sheet dates / valuation dates is accounted through the Revenue Account and thereafter the net unrealised appreciation is transferred from the Revenue Account to the Unrealised Appreciation Reserve. The net depreciation if any, is accounted through the Revenue Account. Net unrealised appreciation is reduced from the distributable income at the time of income distribution.
The loss on investments sold/transferred during the year/period is charged to the Revenue Account instead of being first being adjusted against the provision for depreciation, if already created in the previous year/period as recommended in the Guidance Note. However the departure from the Guidance Note does not have any net impact on the net asset value of the options of the Scheme.
2.3 Securities Transaction
HSBC MUTUAL FUND - HSBC INCOME FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
Investment securities transactions are accounted for on a trade date basis. The Scheme uses the average cost method for determining the realized gain or loss on sale of investments.
2.4 Investment Income
Interest income is recorded on an accrual basis.
2.5 Net Asset Value for Growth / Dividend Sub-Option of Institutional Plus, Institutional and Regular
Option
The net asset value of the units of the Scheme is determined separately for units issued under the Growth and Dividend Sub-options of the Institutional Plus, Institutional and Regular Options for the Short Term Plan and Institutional and Regular Options for the Investment Plan. For reporting the net asset value for the Sub-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 Sub-options in proportion to the value of the units outstanding.
2.6 Unit Premium Reserve
Upon issue and redemption of units, the net premium or discount to the face value of units is adjusted against the unit premium reserve of the Plans after an appropriate portion of the issue proceeds and redemption payout is credited or debited respectively to the income equalization reserve. The unit premium reserve is available for dividend distribution except to the extent it is represented by unrealized net appreciation in value of investments.
2.7 Income Equalization Reserve The net distributable income relating to units issued / repurchased is transferred to / from income equalization reserve for determining the net surplus / deficit, transferred from / to unit premium reserve.
2.8 Load Charges Load collected is retained under a separate account in the Scheme and is used to meet the selling and distribution expenses.
3 Investment Management and Advisory Fees
The Scheme has paid or provided for investment management and advisory fees payable to HSBC
Asset Management (India) Private Limited for managing the Scheme at an average annual rate 0.32%
and 0.70% of the average daily net asset values of the Short Term Plan and Investment Plan
respectively recorded by the Scheme. All costs, charges and expenses incurred by HSBC Asset
Management (India) Private Limited in the administration and execution of the activities of the
Scheme, except costs allowed to be charged to the Scheme under the Securities and Exchange Board of
India (Mutual Funds) Regulations, 1996 and amendments thereto as applicable, are on their own
account for which they receive investment management and advisory fees.
HSBC MUTUAL FUND - HSBC INCOME FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
4 Trusteeship Fees
In accordance with the Deed of Trust dated February 7, 2002 between HSBC Securities and Capital
Markets (India) Private Limited (“The Settlor”) and the Board of Trustees of HSBC Mutual Fund, the
Fund has paid or provided for a fee not exceeding Rs.20,000 for each meeting of the Board of Trustees
attended by such Trustee not affiliated with the Settlor.
5 Custodian Fees
JPMorgan Chase Bank provides custodial services to the Scheme for which it receives custody fees.
6 Income Taxes
No provision for income tax is made as the Scheme qualifies as a recognized mutual fund under Section 10(23D) of the Income Tax Act, 1961.
7 Aggregate Appreciation and Depreciation In Value of Investments Aggregate appreciation and depreciation in value of investments are as follows:
March 31 ,2009
(Rupees) March 31 ,2008
(Rupees)
Short Term
Plan Investment
Plan Short Term
Plan Investment
Plan
Non Convertible Debentures and Bonds Listed / Awaiting Listing
- Appreciation 5,080,372 6,317,746 58,671 899,178
- Depreciation 142,285 3,411,111 40,026 555,197 Privately Placed Non Convertible Debentures / Bonds
-Appreciation - - 49,012 -
- Depreciation - - 15,866 -
Asset Backed Securities
- Appreciation - - - -
- Depreciation - 781,228 - 1,507,492
Government of India Securities
- Appreciation - - - -
- Depreciation - 15,845,249 - 5,749 8 Registered Securities
HSBC MUTUAL FUND - HSBC INCOME FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
In accordance with Regulation 44(1) of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, securities purchased should be held in the name of the Scheme. As at March 31, 2009 Government securities aggregating to Rs. 453,340,434 (market value) of the Investment Plan are held in the name of HSBC Mutual Fund.
9 Aggregate Fair Value of Non-Traded Investments Aggregate fair value of non traded investments as determined by HSBC Asset Management (India)
Private Limited under the procedures approved by the Board of Trustees as at March 31, 2009 is Rs. 1,138,261,114 for the Short Term Plan and Rs. 189,014,346 for the Investment Plan.
10 Aggregate Value of Purchase and Sale of Investments
The aggregate value of investments purchased and sold (including matured) during the year (excluding accretion of discount of Rs. 26,773,795 and Rs. 1,815,499 for Short Term Plan and Investment Plan respectively) is :
Plan Aggregate Purchases Aggregate Sales
Rupees Percentage of Average
Daily Net Assets (Annualized)
Rupees Percentage of Average
Daily Net Assets (Annualized)
Short Term Plan 3,827,871,811 710.63% 2,473,791,637 459.25%
Investment Plan 3,159,143,552 762.83% 2,244,998,154 542.10%
11 Income and Expenses
The total income (including net profit/loss on sale of investments and net change in the unrealized
appreciation/depreciation in the value of investments) and expenditure during the year is:
Plan Total Income Total Expenditure
Rupees Percentage of Average
Daily Net Assets (Annualized)
Rupees Percentage of Average
Daily Net Assets(Annualized)
Short Term Plan 49,168,001 8.93% 4,650,215 0.84%
Investment Plan 9,233,610 2.23% 6,726,109 1.62%
12 Disclosure Under Regulation 25(8) of the Securities and Exchange Board of India (Mutual Funds)Regulation, 1996 as amended and in accordance with Accounting Standard 18 on ‘Related Party Disclosures’ issued by the Institute of Chartered Accountants of India (ICAI)
The Scheme has entered into transactions with certain related parties. The information required in this regard in accordance with Accounting Standard 18 on ‘Related Party Disclosures’ issued by the Institute of Chartered Accountants of India and regulation 25(8) of SEBI Regulation, is provided below:
I Related Party Relationships
HSBC MUTUAL FUND - HSBC INCOME FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
Name Description of relationship
(i) HSBC Securities and Capital Markets (India) Private Limited Sponsor of the Fund (ii) HSBC Asset Management (India) Private Limited Investment Manager to the
Schemes of HSBC Mutual Fund
(iii) The Hong Kong and Shanghai Banking Corporation Limited Associate of the Investment Manager (iv) Schemes of the Fund, Under Common Control of the Sponsor
HSBC Advantage India Fund HSBC Cash Fund HSBC Dynamic Fund HSBC Emerging Market Fund HSBC Equity Fund HSBC Fixed Term Series 21 upto April 02, 2008 HSBC Fixed Term Series 22 upto April 22, 2008 HSBC Fixed Term Series 23 upto April 02, 2008 HSBC Fixed Term Series 24 upto December 15, 2008 HSBC Fixed Term Series 25 upto April 23, 2008 HSBC Fixed Term Series 27 upto April 02, 2008 HSBC Fixed Term Series 28 upto May 26, 2008 HSBC Fixed Term Series 30 HSBC Fixed Term Series 32 upto July 10, 2008 HSBC Fixed Term Series 33 upto September 08, 2008 HSBC Fixed Term Series 35 upto September 18, 2008 HSBC Fixed Term Series 36 upto October 07, 2008 HSBC Fixed Term Series 37 upto October 22, 2008 HSBC Fixed Term Series 41 HSBC Fixed Term Series 42 HSBC Fixed Term Series 44 HSBC Fixed Term Series 45 HSBC Fixed Term Series 46 HSBC Fixed Term Series 47 upto June 26, 2008 HSBC Fixed Term Series 48 with effect from March 28, 2008 upto October 07, 2008 HSBC Fixed Term Series 49 HSBC Fixed Term Series 50 with effect from April 17, 2008 HSBC Fixed Term Series 51 with effect from April 23, 2008 upto October 23, 2008 HSBC Fixed Term Series 52 with effect from April 24, 2008 HSBC Fixed Term Series 53 with effect from May 23, 2008 HSBC Fixed Term Series 54 with effect from May 27, 2008 HSBC Fixed Term Series 55 with effect from June 26, 2008 upto December 29, 2008 HSBC Fixed Term Series 56 with effect from July 25, 2008 HSBC Fixed Term Series 57 with effect from August 13, 2008 HSBC Fixed Term Series 58 with effect from July 22, 2008 upto November 05, 2008 HSBC Fixed Term Series 59 with effect from July 07, 2008 HSBC Fixed Term Series 60 with effect from July 10, 2008 upto October 13, 2008 HSBC Fixed Term Series 61 with effect from July 17, 2008 HSBC Fixed Term Series 62 with effect from August 22, 2008 HSBC Fixed Term Series 63 with effect from September 04, 2008 HSBC Fixed Term Series 66 with effect from September 18, 2008 HSBC Fixed Term Series 68 with effect from October 06, 2008 to January 14, 2009 HSBC Flexi Debt Fund HSBC Gilt Fund (Formerly, HSBC Gilt Fund – Short Term Plan)
HSBC MUTUAL FUND - HSBC INCOME FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
HSBC Income Fund Investment Plan HSBC Income Fund Short Term Plan HSBC India Opportunities Fund HSBC Interval Fund - Plan I upto November 20, 2008 HSBC Interval Fund - Plan II upto December 10, 2008 HSBC Interval Fund - Plan III upto December 17, 2008 HSBC Ultra Short Term Bond Fund (Formerly , HSBC Liquid Plus Fund) HSBC Midcap Fund HSBC MIP Fund Regular Plan HSBC MIP Fund Savings Plan HSBC Small Cap Fund HSBC Tax Saver Equity Fund HSBC Unique Opportunities Fund
(v) Key Management Personnel and their relatives:
Nelum Pahlaj Gidwani – Associate Trustee Naina Lal Kidwai – Chairman of the Investment Manager Vikramaditya – Director and the Chief Executive Officer of the Investment Manager with effect from July 16, 2008 Dr. Rudolf Apenbrink – Associate Tustee Ayaz Ebrahim – Director with effect from April 11, 2008 Sanjay Prakash – Director and the Chief Executive Officer upto July 16, 2008 Avan Nelum Gidwani* – Relative of a Key Management Personnel Rashid K Kidwai* – Relative of a Key Management Personnel Rumaan Kidwai* – Relative of a Key Management Personnel Kemaya Lal Kidwai* – Relative of a Key Management Personnel Amrita Vikramaaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Raaghav Aaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Rhea Aaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Gabriele A Apenbrink* – Relative of a Key Management Personnel Christian R Apenbrink* – Relative of a Key Management Personnel Katharina S Apenbrink* – Relative of a Key Management Personnel Yasmin Ebrahim* – Relative of a Key Management Personnel with effect from April 11, 2008 Daanyal Ebrahim* – Relative of a Key Management Personnel with effect from April 11, 2008 Nilufer Prakash* – Relative of a Key Management Personnel upto July 16, 2008 Tara Prakash* – Relative of a Key Management Personnel upto July 16, 2008 Anahita Prakash* – Relative of a Key Management Personnel upto July 16, 2008 * There were no transactions during the year.
II The following transactions occurred with the related parties during the year in the ordinary course of
business: Refer Annexure I III During the year, The Hong Kong and Shanghai Banking Corporation Limited, an associate entity of
HSBC Asset Management (India) Private Limited was paid collection/bank charges amounting to Rs. 3,854 for the Short Term Plan and Rs. 41,395 for the Investment Plan and brokerage amounting to Rs. 1,678,765 for the Short Term Plan and Rs. 5,263,325 for the Investment Plan for procuring unit subscriptions for the Scheme. The brokerage paid was at rates similar to those offered to other distributors. Further, The Hong Kong and Shanghai Banking Corporation Limited, an associate of the Sponsor, is on the panel of bankers with whom HSBC Mutual Fund places money on fixed deposits and enters into reverse repo transactions from time to time at competitive rates.
HSBC MUTUAL FUND - HSBC INCOME FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
13 Disclosure under Regulation 25(11) of the Securities and Exchange Board of India (Mutual
Funds) Regulations, 1996 as amended
HSBC Mutual Fund has made investments in companies, which hold/ have held units in excess of 5% of the net asset value of any Scheme of HSBC Mutual Fund which have been listed in Annexure II.
The investments comprise equity shares, debentures/ bonds, commercial paper, fixed deposits and other
debt instruments and were made solely on the basis of sound fundamentals of these companies
14 Unclaimed Redemptions
As at March 31, 2009, unclaimed redemptions aggregate Rs. 239,310 payable to 12 investors of Investment Plan.
15 Unclaimed Dividends
As at March 31, 2009, unclaimed dividends payable to investors are:
Plan Amount (Rupees)
Number of Investors
Short Term Plan 53,399 21 Investment Plan 104,058 251
HSBC MUTUAL FUND - HSBC INCOME FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
16 Prior Year’s Figures
Previous year’s figures have been re-grouped/re-arranged where appropriate.
Signatures to the Schedules 1 to 8 forming part of the Balance Sheet and the Revenue Account
PARTHA GHOSH Partner Membership No. F-55913 For and on behalf of PRICE WATERHOUSE Chartered Accountants
For Board of Trustees of HSBC Mutual Fund
For HSBC Asset Management (India) Private Limited
Trustee
Vikramaaditya Director and Chief Executive Officer
Trustee
Director
Place: Mumbai Date :
Fund Manager(s)
Auditors' Report To the Board of Trustees of HSBC MUTUAL FUND 1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Gilt Fund (Formerly HSBC Gilt Fund –
Short Term Plan) ("The Scheme") as at March 31, 2009, the related Revenue Account for the year ended on that date and the Cash Flow Statement for the year ended on that date, which we have signed under reference to this report. These financial statements are the responsibility of the Board of Trustees of HSBC Mutual Fund and the Management of HSBC Asset Management (India) 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. Our procedures included confirmation of securities owned and unit capital balances as at March 31, 2009 by correspondence with the custodian/others and registrar and transfer agent respectively. 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, the Revenue Account and the Cash Flow Statement 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,
(i) The Balance Sheet, 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 also give respectively, a true and fair view of the state of affairs of HSBC Mutual Fund – HSBC Gilt Fund as at March 31, 2009, its net deficit and its Cash Flow for the year on that date.
(ii) The Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended on that
date, together with the notes thereon have been prepared in all material respects 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.
PARTHA GHOSH Partner Membership No. F / 55913 For and on behalf of PRICE WATERHOUSE Chartered Accountants Place: Mumbai Date: July 22, 2009
Year ended March 31, 2009
Rupees
A. Cashflow from Operating ActivitiesNet Realised Loss for the year (17,663,274)
Adjustments for:- (Increase)/Decrease in Investments at Cost (136,493,583)
(Increase)/Decrease in Other Current Assets (1,553,504)
Increase/(Decrease) in Current Liabilities 546,539
Net cash (used in) Operations ( A ) (155,163,822)
B Cashflow from Financing Activities Increase/(Decrease) in Unit Capital 186,519,360
Increase/(Decrease) in Unit Premium 37,319,183
Adjustments for:- Increase/(Decrease) in Redemption Payable for Units Redeemed by Investors 1,000,000
(Increase)/Decrease in Subscription Receivable for Units Issued to Investors (28,948)
Dividend / Distribution during the year (26,769,054)
Dividend / Distribution Tax paid during the year (4,785,406)
Net cash generated from financing activities ( B ) 193,255,135
Net Increase in Cash and Cash Equivalents (A+B) 38,091,313
Cash and Cash Equivalents at the Beginning of the Year 9,830,596
Cash and Cash Equivalents at the End of the Year 47,921,909
Notes :March 31, 2009
Rupees
1 Cash and Cash Equivalents include the following :
Balances with Banks :- In Current Account 222,993 - In Dividend Account 7,372
Temporary Book Overdraft (13)
Other Collaterised Lending- Reverse Repos 23,306,994
- Collateralised Borrowing and Lending Obligation 24,384,563
47,921,909
2 The above Cash Flow Statement has been prepared under the "Indirect Method" set out in Accounting Standard - 3 on Cash Flow Statements,issued by The Institute of Chartered Accountants of India.
3 This is the first year of applicability of Accounting Standard 3 on 'Cash Flow Statement' to the Scheme.
This is the Cash Flow Statement referred to in our report of even date.
PARTHA GHOSH For HSBC Asset Management (India)
Partner HSBC Mutual Fund Private Limited
Membership No. F-55913For and on behalf of
PRICE WATERHOUSE
Chartered Accountants Vikramaaditya
Trustee Officer
Trustee Director
Place: Mumbai
Date : , 22 July 2009 Fund Manager(s)
HSBC MUTUAL FUND - HSBC GILT FUND (FORMERLY, HSBC GILT FUND - SHORT TERM PLAN)
For Board of Trustees of
Cash Flow Statement for the year ended March 31, 2009
0
March 31, 2009 March 31, 2008Schedule Rupees Rupees
ASSETS
Investments 1 126,930,000 -
Other Current Assets 2 54,221,811 9,832,616
TOTAL 181,151,811 9,832,616
LIABILITIES
Unit Capital 3 195,268,050 8,748,690
Reserves and Surplus 4 (15,703,508) 1,043,209
Current Liabilities and Provisions 5 1,587,269 40,717
TOTAL -0.29 181,151,811 9,832,616
RECONCILIATION OF NET ASSET VALUE PER UNIT
Growth Option Dividend Option Weekly Dividend Option
Total Growth Option Dividend Option Total
Net Assets as per Balance Sheet (Total Assets less Current Liabilities and Provisions) (Note 2.5) 27,518,748 28,853,884 123,191,910 179,564,542 4,962,232 4,829,667 9,791,899
Number of Units in Issue 2,554,537.361 3,037,397.103 13,934,870.718 425,297.259 449,571.839
Net Asset Value per Unit 10.7725 9.4995 8.8405 11.6677 10.7428
Notes to the Financial Statements. 7
This is the Balance Sheet referred to in our report of even date.
PARTHA GHOSH For Board of Trustees For HSBC Asset Management (India)Partner HSBC Mutual Fund Private LimitedMembership No. F-55913For and on behalf of PRICE WATERHOUSE Chartered Accountants Vikramaaditya
Trustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai Date : , 22 July 2009 Fund Manager(s)
Rupees
HSBC MUTUAL FUND - HSBC GILT FUND (FORMERLY, HSBC GILT FUND - SHORT TERM PLAN)
Balance Sheet as at March 31, 2009
March 31, 2008
The schedules referred to herein form an integral part of the Financial Statements.
March 31, 2009Rupees
1
April 01, 2008 to April 01, 2007 toMarch 31, 2009 March 31, 2008
Schedule Rupees RupeesINCOME AND GAINS
Interest and Discount 6 45,899,256 430,156
TOTAL 45,899,256 430,156
EXPENSES AND LOSSES
Net Loss on Sale of Investments (Note 2.3) 58,067,649 2,978
Investment Management and Advisory Fees (Note 3) 2,283,007 47,858
Transfer Agent Fees and Expenses 607,139 5,934
Trusteeship Fees and Expenses (Note 4) 3,053 20
Custodian Fees and Expenses 57,128 1,218
Audit Fees 5,000 5,000
Selling and Distribution Expenses 2,484,826 21,838
Other Operating Expenses 54,728 4,209
TOTAL 63,562,530 89,055
Net Realised (Losses)/Gains for the Year (17,663,274) 341,101
Net change in Unrealised Depreciation in Value of Investments (4,848,166) -
Net (Losses)/Gains for the Year 0.40 (22,511,440) 341,101
April 01, 2008 to March 31, 2009 April 01, 2007 to March 31, 2008
April 01, 2007 to March 31, 2008
Rupees Rupees Rupees
Net (Deficit)/Surplus for the Year (22,511,440) 215,472 125,629 341,101
Transfer from Income Equalisation Reserve (Note 2.7) 35,428,165 (577,853) 12,684 (565,169)
Transfer from Reserve Fund 2,466 - 3,724 3,724
Dividend / Distribution (26,769,054) - (118,914) (118,914)
Dividend / Distribution Tax thereon (4,785,406) - (16,841) (16,841)
Balance Transferred to Reserve Fund (18,635,269) (362,381) 6,282 (356,099)
Notes to the Financial Statements. 7
This is the Revenue Account referred to in our report of even date.
PARTHA GHOSH For Board of For HSBC Asset Management (India)Partner HSBC Mutual Fund Private LimitedMembership No. F-55913For and on behalf of PRICE WATERHOUSE Chartered Accountants Vikramaaditya
Trustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai Date : , 22 July 2009 Fund Manager(s)
HSBC MUTUAL FUND - HSBC GILT FUND (FORMERLY, HSBC GILT FUND - SHORT TERM PLAN)
Revenue Account for the year ended March 31, 2009
The schedules referred to herein form an integral part of the Financial Statements.
2
SCHEDULE 1
Investments March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008(Notes 2.2, 2.3, 6 and 7) Market Value Cost Market Value Cost
Rupees Rupees Rupees Rupees
Government of India Securities 126,930,000 131,778,166 - -
TOTAL 126,930,000 131,778,166 - -
SCHEDULE 2 March 31, 2009 March 31, 2008Other Current Assets Rupees Rupees
Balances with Banks - in Current Account 222,993 650,390 - in Dividend Account 7,372 7,363
Sales Contracts Awaiting Completion - Government of India Securities 4,715,417 -
Collateralised Borrowing and Lending Obligation 24,384,563 -
Reverse Repos 23,306,994 9,172,843
Unit Subscription Receivable 10,000 -
Inter Scheme Receivable for 'Switch-In' 18,948 -
Receivable from Investment Manager 169 -
Interest Receivable on :- Government of India Securities 1,549,369 -
- Reverse Repos 2,999 2,020
- Collateralised Borrowing and Lending Obligation 2,987 -
TOTAL 54,221,811 9,832,616
HSBC MUTUAL FUND - HSBC GILT FUND (FORMERLY, HSBC GILT FUND - SHORT TERM PLAN)
Schedules forming part of the Balance Sheet as at March 31, 2009 and
Revenue Account for the year ended March 31, 2009
3
SCHEDULE 3Unit Capital
March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008Rupees Units Rupees Units
Growth OptionIssued and Subscribed :
Units of Rs. 10 each fully paid up 16,493,000 1,649,300.000 16,493,000 1,649,300.000
Outstanding :At the beginning of the year 4,252,972 425,297.259 8,855,812 885,581.249 Issued during the year 305,879,686 30,587,968.620 7,296,576 729,657.626
310,132,658 31,013,265.879 16,152,388 1,615,238.875 Redeemed during the year 284,587,285 28,458,728.518 11,899,416 1,189,941.616 At the end of the year 25,545,373 2,554,537.361 4,252,972 425,297.259
Dividend OptionIssued and Subscribed :Units of Rs. 10 each fully paid up 5,326,243 532,624.299 5,326,243 532,624.299
Outstanding :At the beginning of the year 4,495,718 449,571.839 398,157 39,815.723 Issued during the year 1,333,764,295 133,376,429.531 7,918,157 791,815.674
1,338,260,013 133,826,001.370 8,316,314 831,631.397 Redeemed during the year 1,307,886,043 130,788,604.267 3,820,596 382,059.558 At the end of the year 30,373,970 3,037,397.103 4,495,718 449,571.839
Weekly Dividend OptionIssued and Subscribed :Units of Rs. 10 each fully paid up - - - -
Outstanding :Issued during the year 4,554,683,008 455,468,300.800 - -
4,554,683,008 455,468,300.800 - - Redeemed during the year 4,415,334,301 441,533,430.082 - - At the end of the year 139,348,707 13,934,870.718 - -
TOTAL 195,268,050 19,526,805.182 8,748,690 874,869.098
HSBC MUTUAL FUND - HSBC GILT FUND (FORMERLY, HSBC GILT FUND - SHORT TERM PLAN)Schedules forming part of the Balance Sheet as at March 31, 2009 and
Revenue Account for the year ended March 31, 2009
4
SCHEDULE 4
Reserves and Surplus March 31, 2009
Rupees
Reserves and Surplus Unit Premium Reserve (Note 2.6 )At the beginning of the year 333,328 22,779 Added during the year 1,891,018 310,549
At the end of the year 2,224,346 333,328
Income Equalisation Reserve (Note 2.7)Added during the year 35,428,165 (565,169) Transfer to Revenue Account (35,428,165) 565,169
At the end of the year - -
Reserve FundAt the beginning of the year 709,881 1,069,704 Balance Transferred to Revenue Account (2,466) (3,724) Balance Transferred from Revenue Account (18,635,269) (356,099)
At the end of the year (17,927,854) 709,881
TOTAL (15,703,508) * 1,043,209 *
* The share of the Options of the Reserves and Surplus is as follows : March 31, 2009 March 31, 2008
Growth Option : Rs. 1,973,375 709,260
Dividend Option : Rs. (1,520,086) 333,949
Institutional Weekly Dividend Option : Rs. (16,156,797) -
Total : Rs. (15,703,508) 1,043,209
March 31, 2008
Rupees
HSBC MUTUAL FUND - HSBC GILT FUND (FORMERLY, HSBC GILT FUND - SHORT TERM PLAN)
Schedules forming part of the Balance Sheet as at March 31, 2009 and
Revenue Account for the year ended March 31, 2009
5
SCHEDULE 5Current Liabilities and Provisions
March 31, 2009 March 31, 2008Current Liabilites Rupees Rupees
Investment Management and Advisory Fees 479,653 13,780
Transfer Agent Fees and Expenses 18,496 577
Audit Fees 5,000 5,000
Selling and Distribution Expenses 54,943 2,262
Inter Scheme Payable for Switch Out 1,000,000 -
Unclaimed Dividend (Note 10) 7,358 7,356
Dividend Payable - 6,491
Dividend Tax Payable - 1,952
Bank Overdraft 13 -
Sundry Payables 21,806 3,299
TOTAL 1,587,269 40,717
SCHEDULE 6 April 01, 2008 to April 01, 2007 toInterest and Discount (Note 2.4) March 31, 2009 March 31, 2008
Rupees Rupees
Government of India Securities 5,556,169 -
Collateralised Borrowing and Lending Obligation 15,278,348 -
Reverse Repos 25,103,853 430,156
Others (Refer Note 11) (39,114) -
TOTAL 45,899,256 430,156
HSBC MUTUAL FUND - HSBC GILT FUND (FORMERLY, HSBC GILT FUND - SHORT TERM PLAN)
Schedules forming part of the Balance Sheet as at March 31, 2009 and
Revenue Account for the year ended March 31, 2009
6
Annexure 1
(i) Transactions during the Year
Nature of Transaction Sponsor Investment ManagerAssociate of
Investment Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Investment Management and Advisory Fees - 2,283,007 - - - 2,283,007 Previous Year - 47,858 - - - 47,858
Brokerage/ Commission on Distribution of Units - - 131,578 - - 131,578 Previous Year - - 1,641 - - 1,641
Charges for Services Provided by Bank - - - - - - Previous Year - - 23 - - 23
Borrowings taken and repaid - - 124,800,000 - - 124,800,000 Previous Year - - - - - -
Interest Expense on Borrowings - - 39,114 - - 39,114 Previous Year - - - - - -
(ii) Outstanding As At Year End
Nature of Transaction Sponsor Investment ManagerAssociate of
Investment Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Investment Management and Advisory Fees Payable - 479,653 - - - 479,653 Previous Year - 13,780 - - - 13,780
Brokerage/ Commission Payable on Distribution of Units - - 3,522 - - 3,522 Previous Year - - - - - -
Other Receivables - 169 - - - 169 Previous Year - - - - -
7
Description Quantity Market ValueRupees
Government of India Securities (100 %)6.05% GOI Bonds 2019 1,250,000 116,550,000 7.56% GOI Bonds 2014 100,000 10,380,000
Total (Cost Rs. 131,778,166) 126,930,000 TOTAL INVESTMENTS (Cost Rs. 131,778,166) 126,930,000
HSBC MUTUAL FUND - HSBC GILT FUND (FORMERLY, HSBC GILT FUND - SHORT TERM PLAN)
Statement of Portfolio Holding as at March 31,2009
Confirmation has been received from JP Morgan Chase Bank, Mumbai Branch at the end of the financialyear for the investments held by them.
(Referred to in Schedule 1 to the Balance Sheet as at March 31,2009 and the Revenue Account for the year ended March 31, 2009 )
8
HSBC MUTUAL FUND - HSBC GILT FUND (FORMERLY, HSBC GILT FUND – SHORT TERM PLAN)
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
SCHEDULE 7
1Notes to the Financial Statements
1 Organisation
HSBC Gilt Fund (the “Scheme”) is an open-ended gilt scheme of HSBC Mutual Fund (the “Fund”) and was launched on November 28, 2003. HSBC Mutual Fund has been sponsored by HSBC Securities and Capital Markets (India) Private Limited. HSBC Asset Management (India) Private Limited incorporated under the Companies Act, 1956 has been appointed as the asset management company. The duration of the Scheme is perpetual. The Scheme closed for initial subscription on December 2, 2003 and reopened for issue and redemption of units on December 8, 2003. In accordance with the addendum dated October 06, 2008 a Weekly Dividend Sub-option was introduced during the year and units were allotted on October 10, 2008 at Rs. 10 per unit. The investment objective of the Scheme is to generate reasonable returns through investments in Government securities of various maturities. The Scheme has a Short Term Plan having three options – Growth Option, Dividend Option and Weekly Dividend Option. In accordance with the notice-cum-addendum dated March 02, 2009 the nomenclature of the Scheme has been changed from HSBC Gilt Fund – Short Term Plan to HSBC Gilt Fund.
The Scheme will not declare dividend under the Growth Option in normal circumstances. The income earned on such units will remain invested within the Scheme and will be reflected in the net asset value of the options.
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 (SEBI) (Mutual Funds) Regulations, 1996 (the “Regulations”) and amendments thereto, as applicable.
2.2 Portfolio Valuation
Investments are stated at market/fair value at the Balance Sheet date/date of determination. In valuing the Scheme’s investments:
i. Instruments bought on ‘repo’ basis are valued at the resale price after deduction of applicable
interest up to the date of resale. ii Government securities are valued at prices obtained from The Credit Rating Information Services of India Limited in accordance with the guidelines for valuation of securities for
mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by SEBI.
iii Traded money market securities are valued at the yield at which they are traded on the valuation date. If no sale is reported at that time, such security is valued at the last traded price plus accretion of the difference between the face value and the last traded price. Non traded money market instruments are valued at cost plus accrued interest.
HSBC MUTUAL FUND - HSBC GILT FUND (FORMERLY, HSBC GILT FUND – SHORT TERM PLAN)
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
Following the issue of guidance note on accounting for investments in the financial statements of the mutual funds by the Institute of Chartered Accountants of India (pursuant to the Eleventh Schedule of the Regulations) net unrealised appreciation / depreciation in the value of investments is determined separately for each category of investments. In respect of each category of investments, the net change in the unrealised appreciation if any, between two balance sheet dates / valuation dates is accounted through the Revenue Account and thereafter the net unrealised appreciation is transferred from the Revenue Account to the Unrealised Appreciation Reserve. The net depreciation if any, is accounted through the Revenue Account. Net unrealised appreciation is reduced from the distributable income at the time of income distribution. The loss on investments sold/transferred during the year is charged to the Revenue Account instead of being first adjusted against the provision for depreciation, if already created in the previous year as recommended in the Guidance Note. However the departure from the Guidance Note does not have any net impact on the net asset value of the options of the Scheme.
2.3 Securities Transaction
Investment securities transactions are accounted for on a trade date basis. The Scheme uses the average cost method for determining the realized gain or loss on sale of investments.
2.4 Investment Income
Interest income is recorded on an accrual basis.
2.5 Net Asset Value for Growth/Dividend Options
The net asset value of the units of the Scheme is determined separately for the units issued under the Growth Option, Dividend Option and Weekly Dividend Option. For reporting the net asset value for the 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 units outstanding.
2.6 Unit Premium Reserve
Upon issue and redemption of units, the net premium or discount to the face value of units is adjusted against the unit premium reserve of the Plan after an appropriate portion of the issue proceeds and redemption payout is credited or debited respectively to the income equalization reserve. The unit premium reserve is available for dividend distribution except to the extent it is represented by unrealized net appreciation in value of investments.
2.7 Income Equalization Reserve
The net distributable income relating to units issued/repurchased is transferred to/from income equalization reserve for determining the net surplus/deficit, transferred from/to unit premium reserve.
HSBC MUTUAL FUND - HSBC GILT FUND (FORMERLY, HSBC GILT FUND – SHORT TERM PLAN)
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
3 Investment Management and Advisory Fees
The Scheme has paid or provided for investment management and advisory fees payable to HSBC
Asset Management (India) Private Limited for managing the Scheme at an average annual rate of
0.31% of the average daily net asset value of the options recorded by the Scheme. All costs, charges
and expenses incurred by HSBC Asset Management (India) Private Limited in the administration and
execution of the activities of the Scheme, except costs allowed to be charged to the Scheme under the
Regulations and amendments thereto as applicable, are on their own account for which they receive
investment management and advisory fees.
4 Trusteeship Fees
In accordance with the Deed of Trust dated February 7, 2002 between HSBC Securities and Capital
Markets (India) Private Limited (“The Settlor”) and the Board of Trustees of HSBC Mutual Fund, the
Fund has paid or provided for a fee not exceeding Rs.20,000 for each meeting of the Board of
Trustees attended by such Trustee not affiliated with the Settlor.
5 Income Taxes
No provision for income tax is made as the Scheme qualifies as a recognized mutual fund under Section 10 (23D) of the Income Tax Act, 1961 of India.
6 Aggregate Appreciation and Depreciation In Value of Investments
0Aggregate appreciation and depreciation in value of investments are as follows:
March 31, 2009
(Rupees) March 31, 2008
(Rupees) Government of India Securities -Appreciation - - -Depreciation 4,848,166 -
7 Aggregate Value of Purchase and Sale of Investments
The aggregate value of investments purchased and sold during the financial year is Rs. 1,184,011,556 and Rs. 994,165,715 respectively being 161.74 % and 135.80 % of the average daily net assets.
8 Income and Expenses
The total income (including net loss on sale of investments and net change in unrealized depreciation
in value of investments) and expenditure during the year is Rs. (17,016,559) and Rs. 5,494,881
respectively being (2.32) % and 0.75 % of the average daily net assets.
9 Disclosure Under Regulation 25(8) of the Securities and Exchange Board of India (Mutual
Funds ) Regulation, 1996 as amended and in accordance with Accounting Standard 18 on ‘Related Party Disclosures’ issued by the Institute of Chartered Accountants of India (ICAI)
HSBC MUTUAL FUND - HSBC GILT FUND (FORMERLY, HSBC GILT FUND – SHORT TERM PLAN)
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
The Scheme has entered into transactions with certain related parties. The information required in this regard in accordance with Accounting Standard 18 on ‘Related Party Disclosures’ issued by the Institute of Chartered Accountants of India and regulation 25(8) of SEBI Regulation, is provided below :
I Related Party Relationships
Name Description of relationship (i) HSBC Securities and Capital Markets (India) Private Limited Sponsor of the Fund
(ii) HSBC Asset Management (India) Private Limited Investment Manager to the Schemes of HSBC Mutual Fund
(iii) The Hong Kong and Shanghai Banking Corporation Limited Associate of the Investment Manager (iv) Schemes of the Fund, Under Common Control of the Sponsor
HSBC Advantage India Fund HSBC Cash Fund HSBC Dynamic Fund HSBC Emerging Market Fund HSBC Equity Fund HSBC Fixed Term Series 21 upto April 02, 2008 HSBC Fixed Term Series 22 upto April 22, 2008 HSBC Fixed Term Series 23 upto April 02, 2008 HSBC Fixed Term Series 24 upto December 15, 2008 HSBC Fixed Term Series 25 upto April 23, 2008 HSBC Fixed Term Series 27 upto April 02, 2008 HSBC Fixed Term Series 28 upto May 26, 2008 HSBC Fixed Term Series 30 HSBC Fixed Term Series 32 upto July 10, 2008 HSBC Fixed Term Series 33 upto September 08, 2008 HSBC Fixed Term Series 35 upto September 18, 2008 HSBC Fixed Term Series 36 upto October 07, 2008 HSBC Fixed Term Series 37 upto October 22, 2008 HSBC Fixed Term Series 41 HSBC Fixed Term Series 42 HSBC Fixed Term Series 44 HSBC Fixed Term Series 45 HSBC Fixed Term Series 46 HSBC Fixed Term Series 47 upto June 26, 2008 HSBC Fixed Term Series 48 with effect from March 28, 2008 upto October 07, 2008 HSBC Fixed Term Series 49 HSBC Fixed Term Series 50 with effect from April 17, 2008 HSBC Fixed Term Series 51 with effect from April 23, 2008 upto October 23, 2008 HSBC Fixed Term Series 52 with effect from April 24, 2008 HSBC Fixed Term Series 53 with effect from May 23, 2008 HSBC Fixed Term Series 54 with effect from May 27, 2008 HSBC Fixed Term Series 55 with effect from June 26, 2008 upto December 29, 2008 HSBC Fixed Term Series 56 with effect from July 25, 2008 HSBC Fixed Term Series 57 with effect from August 13, 2008 HSBC Fixed Term Series 58 with effect from July 22, 2008 upto November 05, 2008 HSBC Fixed Term Series 59 with effect from July 07, 2008 HSBC Fixed Term Series 60 with effect from July 10, 2008 upto October 13, 2008 HSBC Fixed Term Series 61 with effect from July 17, 2008
HSBC MUTUAL FUND - HSBC GILT FUND (FORMERLY, HSBC GILT FUND – SHORT TERM PLAN)
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
HSBC Fixed Term Series 62 with effect from August 22, 2008 HSBC Fixed Term Series 63 with effect from September 04, 2008 HSBC Fixed Term Series 66 with effect from September 18, 2008 HSBC Fixed Term Series 68 with effect from October 06, 2008 to January 14, 2009 HSBC Flexi Debt Fund HSBC Floating Rate Fund Long Term Plan HSBC Floating Rate Fund Short Term Plan HSBC Income Fund Investment Plan HSBC Income Fund Short Term Plan HSBC India Opportunities Fund HSBC Interval Fund - Plan I upto November 20, 2008 HSBC Interval Fund - Plan II upto December 10, 2008 HSBC Interval Fund - Plan III upto December 17, 2008 HSBC Ultra Short Term Bond Fund (Formerly , HSBC Liquid Plus Fund) HSBC Midcap Fund HSBC MIP Fund Regular Plan HSBC MIP Fund Savings Plan HSBC Small Cap Fund HSBC Tax Saver Equity Fund HSBC Unique Opportunities Fund
(v) Key Management Personnel and their relatives:
Nelum Pahlaj Gidwani – Associate Trustee Naina Lal Kidwai – Chairman of the Investment Manager Vikramaditya – Director and the Chief Executive Officer of the Investment Manager with effect from July 16, 2008 Dr. Rudolf Apenbrink – Associate Tustee Ayaz Ebrahim – Director with effect from April 11, 2008 Sanjay Prakash – Director and the Chief Executive Officer upto July 16, 2008 Avan Nelum Gidwani* – Relative of a Key Management Personnel Rashid K Kidwai* – Relative of a Key Management Personnel Rumaan Kidwai *– Relative of a Key Management Personnel Kemaya Lal Kidwai* – Relative of a Key Management Personnel Amrita Vikramaaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Raaghav Aaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Rhea Aaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Gabriele A Apenbrink* – Relative of a Key Management Personnel Christian R Apenbrink* – Relative of a Key Management Personnel Katharina S Apenbrink* – Relative of a Key Management Personnel Yasmin Ebrahim* – Relative of a Key Management Personnel with effect from April 11, 2008 Daanyal Ebrahim* – Relative of a Key Management Personnel with effect from April 11, 2008 Nilufer Prakash* – Relative of a Key Management Personnel upto July 16, 2008 Tara Prakash* – Relative of a Key Management Personnel upto July 16, 2008 Anahita Prakash* – Relative of a Key Management Personnel upto July 16, 2008 * There were no transactions during the year.
II The following transactions occurred with the related parties during the year in the ordinary course of
business: Refer Annexure I
III During the year, The Hong Kong and Shanghai Banking Corporation Limited, an associate entity of
HSBC Asset Management (India) Private Limited was paid collection/bank charges amounting to Rs
HSBC MUTUAL FUND - HSBC GILT FUND (FORMERLY, HSBC GILT FUND – SHORT TERM PLAN)
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
23 and brokerage amounting to Rs. 131,578 for procuring unit subscriptions. The brokerage paid was
at rates similar to those offered to other distributors. Further, The Hong Kong and Shanghai Banking
Corporation Limited, an associate of the Sponsor, is on the panel of bankers with whom HSBC
Mutual Fund places money on fixed deposits and enters into reverse repo transactions from time to
time at competitive rates.
10 Unclaimed Dividend
As at March 31, 2009, unclaimed dividend aggregate to Rs. 7,358 payable to 1 investor.
11 Interest
Interest expense aggregating Rs.39,114 on borrowings made by the Scheme to meet temporary liquidity needs for the purpose of redemption of units has been netted off from interest income as disclosed in Schedule 6.
12 Prior Year’s Figures Previous year’s figures have been re-grouped/re-arranged where necessary.
Signatures to the Schedules 1 to 7 forming part of the Balance Sheet and the Revenue Account
PARTHA GHOSH Partner Membership No. F-55913 For and on behalf of PRICE WATERHOUSE Chartered Accountants
For Board of Trustees of HSBC Mutual Fund
For HSBC Asset Management (India) Private Limited
Trustee
Vikramaaditya Director and Chief Executive Officer
Trustee
Director
Place: Mumbai Date : July 22, 2009
Fund Manager(s)
0Auditors’ Report 1To the Board of Trustees of 2HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Cash Fund (The “Scheme”) as at March 31, 2009, the related Revenue Account for the year ended on that date annexed thereto and the Cash Flow Statement for the year ended on that date which we have signed under reference to this report. These financial statements are the responsibility of the Board of Trustees of HSBC Mutual Fund and the Management of HSBC Asset Management (India) 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. Our procedures included confirmation of securities owned and unit capital balances as at March 31, 2009 by correspondence with the custodian/others and registrar and transfer agent respectively. An audit also includes assessing the accounting principles used and significant estimates made by the Management as well as evaluating the overall financial statements 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 purposes of our audit. The Balance Sheet, the Revenue Account and the Cash Flow Statement 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 ;
(i) The Balance Sheet, the Revenue Account and the Cash Flow Statement together with the notes thereon give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and the amendments thereto, as applicable, and also give respectively a true and fair view of the state of affairs of HSBC Mutual Fund – Cash Fund as at March 31, 2009, its net surplus and its cash flows for the year ended on that date.
(ii) The Balance Sheet as at March 31, 2009, and the Revenue Account for the year ended on that date, together with the notes thereon, have been prepared in all material respects 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.
(iii) The method used to value: (a) non traded debt securities in accordance with the guidelines for valuation of securities for
mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India and
(b) privately placed securities in good faith as at March 31, 2009 as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund are fair and reasonable.
PARTHA GHOSH Partner M. No. F/55913 For and on behalf of PRICEWATERHOUSE Chartered Accountants Place: Mumbai Date: July 06, 2009
March 31, 2009 March 31, 2008Schedule Rupees Rupees
ASSETS
Investments 1 499,774,250 13,045,459,110
Deposits 2 282,638,000 30,538,000
Other Current Assets 3 4,272,958,069 251,687,873
TOTAL 5,055,370,319 13,327,684,983
LIABILITIES
Unit Capital 4 4,600,896,332 12,268,155,038
Reserves and Surplus 5 325,574,756 822,161,050
Current Liabilities and Provisions 6 128,899,231 237,368,895
TOTAL 5,055,370,319 13,327,684,983
RECONCILIATION OF NET ASSET VALUE PER UNIT
Growth Sub Option
Dividend Sub Option
Weekly DividendSub Option Total
Growth Sub Option
Daily Dividend Sub Option
Weekly DividendSub Option
Monthly Dividend Sub Option Total
Growth Sub Option
Daily DividendSub Option
Weekly DividendSub Option
Monthly DividendSub Option Total Total
Net Assets as per Balance Sheet
(Total Assets less Current Liabilities and Provisions) (Note 2.6) 283,508,670 1,202,295,068 172,231,968 1,658,035,706 23,867,214 551,021,885 114,438,497 5,840,590 695,168,186 619,337,752 1,623,262,740 269,729,148 60,937,556 2,573,267,196 4,926,471,088
(319,967,251) (1,720,386,314) (314,916,114) (2,355,269,679) (235,226,848) (1,451,765,621) (74,348,098) (22,882,808) (1,784,223,375) (2,637,303,450) (6,091,674,442) (183,114,415) (38,730,727) (8,950,823,034) (13,090,316,088)
Number of Units in Issue 19,452,526.536 117,952,996.359 17,184,208.603 1,626,747.666 52,779,357.682 10,930,233.795 554,781.289 44,991,905.273 162,235,389.474 26,337,844.437 6,043,642.284
(23,543,346.007) (168,782,960.991) (31,459,108.549) (17,227,982.504) (139,058,165.422) (7,110,328.509) (2,187,696.477) (206,514,921.534) (608,832,365.711) (18,231,462.834) (3,867,165.460)
Net Asset Value per Unit 14.5744 10.1930 10.0227 14.6717 10.4401 10.4699 10.5277 13.7655 10.0056 10.2411 10.0829 (13.5906) (10.1929) (10.0103) (13.6538) (10.4400) (10.4564) (10.4598) (12.7705) (10.0055) (10.0439) (10.0153)
Notes to the Financial Statements. 8
This is the Balance Sheet referred to in our report of even date.
PARTHA GHOSH For Board of Trustees of For HSBC Asset Management (India)Partner HSBC Mutual Fund Private LimitedMembership No. F-55913For and on behalf of
PRICE WATERHOUSE Chartered Accountants
Vikramaaditya
Trustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai Date : 06 July 2009 Fund Manager(s)
The schedules referred to herein form an integral part of the Financial Statements.
Balance Sheet as at March 31, 2009
HSBC MUTUAL FUND - HSBC CASH FUND
Institutional OptionRegular Option Institutional Plus Option
March 31, 2009(March 31, 2008)
Rupees
0
Year ended March 31, 2009
Rs.
Year ended March 31, 2008
Rupees
A. Cashflow from Operating ActivitieSurplus for the year 1,171,493,160 1,821,495,422
Adjustments for:- (Increase)/Decrease in Investments at cost 12,545,547,060 4,371,614,374 (Increase)/Decrease in Other current assets (1) 153,410,810 Increase/(Decrease) in Current liabilities 4,984,930 (8,286,635)
Net cash generated from operations ( A ) 13,722,025,149 6,338,233,971
B Cashflow from Financing Activitie Increase/(Decrease) in Unit capital (7,667,258,706) (5,240,074,482) Increase/(Decrease) in Unit premium (956,483,776) (1,297,432,586)
Adjustments for:- Increase/(Decrease) in Sundry creditors for units redeemed by investors (113,309,573) 24,000,648 (Increase)/Decrease in Sundry debtors for units issued to investors 4,768 2,909,101
Dividend paid during the year (554,531,773) (780,748,774) Dividend Tax paid during the year (157,071,123) (221,145,255)
Net cash (used in) financing activitie ( B ) (9,448,650,183) (7,512,491,348)
Net Increase/(Decrease) in Cash and cash equivalent (A+B) 4,273,374,966 (1,174,257,377)
Cash and Cash Equivalents at the beginning of the year 230,139,572 1,404,396,948 Cash and Cash Equivalents at the end of the year 4,503,514,538 230,139,572
Notes :March 31, 2009
Rupees March 31, 2008
Rupees
1 Cash and Cash Equivalents include the following :
Balances with Scheduled Banks : - In Current Account 16,772,748 149,924,637 - In Dividend Account 33 2,186 - In Deposit Account
Margin Deposit for National Depository Service 100,000 - Margin Deposit with the Clearing Corporation of India Towards Collateralized Borrowing and Lending Obligation 42,538,000 30,538,000 Margin Deposit with the Clearing Corporation of India Limited towards Reverse Repos and Governement Securities 240,000,000 - Other Collateralised LendingReverse Repo 2,075,137,335 49,674,749 Collateralised Borrowing and Lending Obligation 2,171,094,275 -
4,545,642,391 230,139,572
2 The above Cash Flow Statement has been prepared under the "Indirect Method" set out in Accounting Standard - 3 on Cash Flow Statements, issued by The Institute of Chartered Accountants of India.
This is the Cash Flow Statement referred to in our report of even date.
PARTHA GHOSH For Board of Trustees of For HSBC Asset Management (India)Partner HSBC Mutual Fund Private Limited
Membership No. F-55913
For and on behalf of
PRICE WATERHOUSE
Chartered AccountantsVikramaaditya
Trustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai Date : 06 July 2009 Fund Manager(s)
Cash Flow Statement for the year ended March 31, 2009
HSBC MUTUAL FUND - HSBC CASH FUND1
April 01, 2008 to April 01, 2007 toMarch 31, 2009 March 31, 2008
Schedule Rupees Rupees
INCOME AND GAINS
Interest and Discount 7 1,221,211,006 1,873,594,163 Net Profit on Sale of Investments
(Including Net Profit on Inter-Scheme Sale of Investments Rs. 4,367,930 (Previous year: Rs 214,464)) (Note 2.4) 10,818,302 40,577,232
Miscellaneous Income (Note 11) 39,384 1,030,766
TOTAL 1,232,068,692 1,915,202,161
EXPENSES AND LOSSES
Investment Management and Advisory Fees (Note 3) 36,050,168 56,516,538
Transfer Agent Fees and Expenses 7,326,891 9,789,410
Trusteeship Fees and Expenses (Note 4) 63,192 55,019
Custodian Fees and Expenses (Note 5) 1,684,726 2,715,399
Audit Fees 300,000 400,000
Selling and Distribution Expenses 13,901,907 22,937,383
Other Operating Expenses 1,248,648 1,819,055
TOTAL 60,575,532 94,232,804
Less: Expenses to be Reimbursed by the Investment Manager - 526,065
TOTAL 60,575,532 93,706,739
Net Realised Gains for the Year 1,171,493,160 1,821,495,422
Net Change in Unrealised Depreciation in Value of Investments 7,220 710,186
Net Surplus for the Year 1,171,500,380 1,822,205,608
April 01, 2008 to March 31, 2009April 01, 2008 to March
31, 2009Rupees Rupees Rupees
Net Surplus for the Year 24,334,926 1,171,500,380 1,822,205,608
(56,659,979)
Transfer from Income Equalisation Reserve (Note 2.8) (19,847,748) (963,276,421) (1,301,373,003)
(-217,607,061)
Transfer from Reserve Fund - 62,374,628 44,134,132
(-)
Transferred from Unit Premium Reserve (Note 2.7) - - 544,652
(-)
Dividend / Distribution - (554,531,773) (780,748,774)
(-)
Dividend / Distribution Tax thereon - (157,071,123) (221,145,255)
(-)
Balance Transferred to Reserve Fund 4,487,178 (441,004,309) (436,382,639)
Notes to the Financial Statements. 8
This is the Revenue Account referred to in our report of even date.
(4,487,178) (-441,004,309)
PARTHA GHOSH For Board of Trustees of For HSBC Asset Management (India)Partner HSBC Mutual Fund Private LimitedMembership No. F-55913For and on behalf of PRICE WATERHOUSE Chartered Accountants
VikramaadityaTrustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai Date : 06 July 2009 Fund Manager(s)
HSBC MUTUAL FUND - HSBC CASH FUND
Revenue Account for the year ended March 31, 2009
The Schedules referred to herein form an integral part of the Financial Statements.
April 01, 2007 to March 31, 2008
2
SCHEDULE 1
Investments Market /Fair Value Cost Market /Fair Value Cost(Notes 2.2, 2.4, 7, 8, 9 and 13) Rupees Rupees Rupees Rupees(Refer to the attached Statement of Portfolio Holding as at March 31, 2009)
Non Convertible Debentures and Bonds Listed / Awaiting Listing 148,333,096 148,333,096 2,100,548,297 2,100,555,518
Privately Placed Non Convertible Debentures / Bonds 106,195,000 106,195,000 - -
Asset Backed Securities - - 659,848,511 659,848,511
Commercial Paper / Certificate of Deposit 245,246,154 245,246,154 10,285,062,302 10,285,062,302
TOTAL 499,774,250 499,774,250 13,045,459,110 13,045,466,331
SCHEDULE 2 March 31, 2009 March 31, 2008Deposits Rupees Rupees
Margin Deposit for National Depository Service 100,000 -
Margin Deposit with Clearing Corporation of India Limited towards Collateralised Borrowing and Lending Obligation 42,538,000 30,538,000
Margin Deposit with Clearing Corporation of India Limited towards Reverse Repos and Governement Securities 240,000,000 -
TOTAL 282,638,000 30,538,000
SCHEDULE 3 March 31, 2009 March 31, 2008Other Current Assets Rupees Rupees
Balances with Banks - in Current Account 16,772,748 149,924,637 - in Dividend Account 33 2,186
Unit Subscription Receivable - 250,000
Reverse Repos 2,075,137,335 49,674,749
Collateralised Borrowing and Lending Obligation 2,171,094,275 -
Inter-Scheme Receivable :- For 'Switch-In' 1,148,963 903,731 - For 'Others' 21,786 -
Interest Receivable on :- Debentures / Bonds 4,806,509 45,064,163 - Asset Backed Securities - 5,306,179 - Deposits 24,660 24,660 - Reverse Repos 267,044 10,937 - Collateralised Borrowing and Lending Obligation 265,984 - - Margin Deposit with Clearing Corporation of India Limited 3,262,115 -
Receivable from Investment Manager 56,617 526,517
Miscellaneous Receivables 100,000 114
TOTAL 4,272,958,069 251,687,873
Schedules forming part of the Balance Sheet as at March 31, 2009and the Revenue Account for the year ended March 31, 2009
HSBC MUTUAL FUND - HSBC CASH FUND
March 31, 2009 March 31, 2008
3
SCHEDULE 4 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008Unit Capital Rupees Units Rupees Units
Growth Sub Option
Issued and SubscribedUnits of Rs. 10 each fully paid up 1,087,475,000 108,747,500.000 1,087,475,000 108,747,500.000
Outstanding:
At the beginning of the year 235,433,461 23,543,346.007 939,053,758 93,905,375.744
Issued during the year 697,456,171 69,745,617.114 2,870,128,022 287,012,802.208
932,889,632 93,288,963.121 3,809,181,780 380,918,177.952
Redeemed during the year 738,364,366 73,836,436.585 3,573,748,319 357,374,831.945
At the end of the year 194,525,266 19,452,526.536 235,433,461 23,543,346.007
Dividend Sub Option
Issued and SubscribedUnits of Rs. 10 each fully paid up - - - -
Outstanding:
At the beginning of the year 1,687,829,610 168,782,960.991 2,723,792,972 272,379,297.214
Issued during the year 3,085,190,109 308,519,010.875 5,472,862,568 547,286,256.767
4,773,019,719 477,301,971.866 8,196,655,540 819,665,553.981
Redeemed during the year 3,593,489,755 359,348,975.507 6,508,825,930 650,882,592.990
At the end of the year 1,179,529,964 117,952,996.359 1,687,829,610 168,782,960.991
Weekly Dividend Sub Option
Issued and SubscribedUnits of Rs. 10 each fully paid up 450,000 45,000.000 450,000 45,000.000
Outstanding:
At the beginning of the year 314,591,085 31,459,108.549 460,164,354 46,016,435.448
Issued during the year 643,877,734 64,387,773.406 852,976,025 85,297,602.522
958,468,819 95,846,881.955 1,313,140,379 131,314,037.970
Redeemed during the year 786,626,734 78,662,673.352 998,549,294 99,854,929.421
At the end of the year 171,842,085 17,184,208.603 314,591,085 31,459,108.549
TOTAL 1,545,897,315 154,589,731.498 2,237,854,156 223,785,415.547
Institutional Option
Growth Sub Option
Issued and SubscribedUnits of Rs. 10 each fully paid up 47,916,128 4,791,612.761 47,916,128 4,791,612.761
Outstanding:
At the beginning of the year 172,279,825 17,227,982.504 184,107,740 18,410,774.007
Issued during the year 3,220,602,750 322,060,275.008 5,016,248,632 501,624,863.237
3,392,882,575 339,288,257.512 5,200,356,372 520,035,637.244
Redeemed during the year 3,376,615,098 337,661,509.846 5,028,076,547 502,807,654.740
At the end of the year 16,267,477 1,626,747.666 172,279,825 17,227,982.504
Daily Dividend Sub Option
Issued and SubscribedUnits of Rs. 10 each fully paid up 257,272,623 25,727,262.274 257,272,623 25,727,262.274
Outstanding:
At the beginning of the year 1,390,581,654 139,058,165.422 828,639,837 82,863,983.736
Issued during the year 8,456,793,479 845,679,347.939 15,008,442,124 1,500,844,212.345
9,847,375,133 984,737,513.361 15,837,081,961 1,583,708,196.081
Redeemed during the year 9,319,581,557 931,958,155.679 14,446,500,307 1,444,650,030.659
At the end of the year 527,793,576 52,779,357.682 1,390,581,654 139,058,165.422
Weekly Dividend Sub Option
Issued and SubscribedUnits of Rs. 10 each fully paid up 9,581,848 958,184.815 9,581,848 958,184.815
Outstanding:
At the beginning of the year 71,103,285 7,110,328.509 224,307,645 22,430,764.491
Issued during the year 359,070,800 35,907,080.000 301,171,885 30,117,188.538
430,174,085 43,017,408.509 525,479,530 52,547,953.029
Redeemed during the year 320,871,747 32,087,174.714 454,376,245 45,437,624.520
At the end of the year 109,302,338 10,930,233.795 71,103,285 7,110,328.509
Monthly Dividend Sub Option
Issued and SubscribedUnits of Rs. 10 each fully paid up 239,580,638 23,958,063.805 239,580,638 23,958,063.805
Outstanding:
At the beginning of the year 21,876,964 2,187,696.477 27,787,847 2,778,784.776
Issued during the year 58,711,860 5,871,186.049 8,400,504 840,050.367
80,588,824 8,058,882.526 36,188,351 3,618,835.143
Redeemed during the year 75,041,012 7,504,101.237 14,311,387 1,431,138.666
At the end of the year 5,547,812 554,781.289 21,876,964 2,187,696.477
TOTAL 658,911,203 65,891,120.432 1,655,841,728 165,584,172.912
HSBC MUTUAL FUND - HSBC CASH FUND
Regular Option
Schedules forming part of the Balance Sheet as at March 31, 2009and the Revenue Account for the year ended March 31, 2009
4
SCHEDULE 4 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008Unit Capital Rupees Units Rupees Units
HSBC MUTUAL FUND - HSBC CASH FUNDSchedules forming part of the Balance Sheet as at March 31, 2009
and the Revenue Account for the year ended March 31, 2009
4
Institutional Plus Option
Growth Sub Option
Issued and SubscribedUnits of Rs. 10 each fully paid up 2,144,728,860 214,472,885.980 2,144,728,860 214,472,885.980
Outstanding:
At the beginning of the year 2,065,149,215 206,514,921.534 4,955,198,023 495,519,802.283
Issued during the year 144,407,177,822 14,440,717,782.241 272,313,081,380 27,231,308,138.029
146,472,327,037 14,647,232,703.775 277,268,279,403 27,726,827,940.312
Redeemed during the year 146,022,407,985 14,602,240,798.502 275,203,130,188 27,520,313,018.778
At the end of the year 449,919,052 44,991,905.273 2,065,149,215 206,514,921.534
Daily Dividend Sub Option
Issued and SubscribedUnits of Rs. 10 each fully paid up 1,925,006,580 192,500,657.950 1,925,006,580 192,500,657.950
Outstanding:
At the beginning of the year 6,088,323,656 608,832,365.711 6,302,699,701 630,269,970.184
Issued during the year 464,260,547,339 46,426,054,733.863 398,964,831,959 39,896,483,195.877
470,348,870,995 47,034,887,099.574 405,267,531,660 40,526,753,166.061
Redeemed during the year 468,726,517,101 46,872,651,710.100 399,179,208,004 39,917,920,800.350
At the end of the year 1,622,353,894 162,235,389.474 6,088,323,656 608,832,365.711
Weekly Dividend Sub Option
Issued and SubscribedUnits of Rs. 10 each fully paid up 1,202,494,851 120,249,485.090 1,202,494,851 120,249,485.090
Outstanding:
At the beginning of the year 182,314,629 18,231,462.834 826,077,986 82,607,798.519
Issued during the year 11,327,652,704 1,132,765,270.417 21,215,205,175 2,121,520,517.495
11,509,967,333 1,150,996,733.251 22,041,283,161 2,204,128,316.014
Redeemed during the year 11,246,588,888 1,124,658,888.814 21,858,968,532 2,185,896,853.180
At the end of the year 263,378,445 26,337,844.437 182,314,629 18,231,462.834
Monthly Dividend Sub Option
Issued and SubscribedUnits of Rs. 10 each fully paid up 854,214,106 85,421,410.558 854,214,106 85,421,410.558
Outstanding:
At the beginning of the year 38,671,654 3,867,165.460 36,399,657 3,639,965.758
Issued during the year 72,431,892 7,243,189.171 103,737,583 10,373,758.344
111,103,546 11,110,354.631 140,137,240 14,013,724.102
Redeemed during the year 50,667,123 5,066,712.347 101,465,586 10,146,558.642
At the end of the year 60,436,423 6,043,642.284 38,671,654 3,867,165.460
TOTAL 2,396,087,814 239,608,781.468 8,374,459,154 837,445,915.539
GRAND TOTAL 4,600,896,332 460,089,633.398 12,268,155,038 1,226,815,503.998
Note: HSBC Asset Management (India) Private Limited, the investment manager holds 5,069,436.298 units (Previous year : 38,138,23.129 units) in the Institutional Plus Option - Daily Dividend Sub - Option and 905,388.851 units (Previous year : 3,866,534.078 units) in the Institutional Plus Option Monthly Dividend Sub -Option as at March 31,2009.
HSBC Securities and Capital Markets (India) Private Limited, the sponsor holds 111,154,513.048 units (Previous year : 23,041,295.822 units) in the Institutional Plus Option - Daily Dividend Sub Option as at March 31,2009.
SCHEDULE 5Reserves and Surplus
Unit Premium Reserve (Note 2.7)
At the beginning of the year 2,088,119
(-1,307,646)
Added during the year 6,792,643
(3,940,417)
Transferred to Revenue Account -
(-544,652)
At the end of the year 8,880,762
(2,088,119)
Income Equalisation Reserve (Note 2.8)
Added during the year (963,276,421)
(-1,301,373,003)
Transferred to Revenue Account 963,276,421
(1,301,373,003)
At the end of the year -
Reserve Fund
At the beginning of the year 820,072,931
(1,300,589,703)
Transferred to Revenue Account (62,374,628)
(-44,134,132)
Balance Transferred from Revenue Account (441,004,309)
(-436,382,639)
At the end of the year 316,693,994
(820,072,931)
TOTAL 325,574,756 *
(822,161,050) *
* The share of the Options of the Reserves and Surplus is as follows : March 31, 2009(March 31, 2008)
Regular Option RupeesGrowth Sub-Option 88,983,404
(84,533,790)Daily Dividend Sub-Option 22,765,104
(32,556,704)Weekly Dividend Sub-Option 389,883
(325,029)Total (A) 112,138,391
(117,415,524)
Institutional OptionGrowth Sub-Option 7,599,737
(62,947,023)Daily Dividend Sub-Option 23,228,309
(61,183,967)Weekly Dividend Sub-Option 5,136,159
(3,244,813)Monthly Dividend Sub-Option 292,778
(1,005,844)Total (B) 36,256,983
(128,381,648)
Institutional Plus OptionGrowth Sub-Option 169,418,700
(572,154,235)Daily Dividend Sub-Option 908,846
(3,350,786)s 6,350,703
(799,786)Monthly Dividend Sub-Option 501,133
(59,073)Total (C) 177,179,382
(576,363,880)
Total (A+B+C) 325,574,756(822,161,052)
and the Revenue Account for the year ended March 31, 2009
HSBC MUTUAL FUND - HSBC CASH FUND
March 31, 2009(March 31, 2008)
Rupees
Schedules forming part of the Balance Sheet as at March 31, 2009
5
SCHEDULE 6 March 31, 2009 March 31, 2008Current Liabilities and Provisions Rupees RupeesCurrent Liabilities
Investment Management and Advisory Fees 3,238,804 1,180,817
Transfer Agent Fees and Expenses 272,834 762,580
Custodian Fees and Expenses 27,784 389,324
Audit Fees 300,000 400,000
Selling and Distribution Expenses 820,638 1,560,589
Unit Redemption Payable 398,693 -
Inter Scheme Payable
- For 'Switch-Out' 118,351,291 232,059,557
- For 'Others' 108,000 -
Units Pending Allotment 3,890,270 -
Dividend Payable 159,253 108,197
Dividend Tax Payable 237,254 468,982
Interest Rate Swaps (Note 2.3) - 145,021
Sundry Payables 1,094,410 293,828
TOTAL 128,899,231 237,368,895
SCHEDULE 7 April 01, 2008 to April 01, 2007 toInterest and Discount (Note 2.5) March 31, 2009 March 31, 2008
Rupees Rupees
Debentures / Bonds 159,121,996 365,528,662
Asset Backed Securities 75,862,467 95,510,761
Treasury Bills - 10,006,003
Commercial Paper / Certificate of Deposit 747,514,935 1,079,700,083
Reverse Repos 103,872,960 102,247,270
Collateralised Borrowing and Lending Obligation 73,081,807 7,766,482
Deposits 57,926,275 203,130,505
Margin Deposit with Clearing Corporation of India Limited 3,606,285 901,315
Interest Rate Swaps (Net) (Note 2.3 ) 224,281 8,803,082
TOTAL 1,221,211,006 1,873,594,163
HSBC MUTUAL FUND - HSBC CASH FUND
Schedules forming part of the Balance Sheet as at March 31, 2009and the Revenue Account for the year ended March 31, 2009
6
Description Quantity Market / Fair Value Rupees
Non-Convertible Debentures / Bonds Listed / Awaiting listing (29.68 %Chemicals (100 %)
Floating Finolex Industries Ltd 2009 $ 150 148,333,096 148,333,096
Total (Cost Rs. 148,333,096) 148,333,096
Privately Placed / Unlisted Non-Convertible Debentures / Bonds (21.25 %Construction (100 %)
19.00% Unitech Limited 2009 * 1,585 106,195,000 106,195,000
Total (Cost Rs. 106,195,000) 106,195,000
Commercial Papers/Certificate of Deposits (49.07 %)Certificate of Deposits (7.88 %)
Exim Bank Limited $ @ 200 19,327,524 19,327,524
Commercial Papers (92.12 %)Exim Bank Limited 2009 $ @ 460 225,918,630
225,918,630 Total (Cost Rs. 245,246,154) 245,246,154 TOTAL INVESTMENTS (Cost Rs. 499,774,250) 499,774,250
@ Investment in companies which have invested more than five percent of the net asset value of any schemes of HSBC Mutual Fund.
HSBC MUTUAL FUND - HSBC CASH FUND
Statement of Portfolio Holding as at March 31, 2009
(Referred to in Schedule 1 to the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009)
Confirmation has been received from JP Morgan Chase Bank, Mumbai Branch at the end of the financial year for investments held by them.
* Fair value of privately placed securities as determined in good faith by HSBC Asset Management (India) Private Limited under procedures approved by theBoard of Trustees.
$ Fair value of non traded debt securities as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board ofTrustees in accordance with guidelines for valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issuedby the Securities and Exchange Board of India.
7
HSBC MUTUAL FUND - HSBC CASH FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and theRevenue Account for the year ended March 31, 2009.
Annexure 1
(i) Transactions during the Year
Nature of Transaction Sponsor Investment Manager
Associate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel & their
Relatives Total
Purchase of Investments - - - 35,347,123,947 - 35,347,123,947 Previous Year - - - 49,645,639,463 - 49,645,639,463
Sale of Investments - - - 29,361,608,102 - 29,361,608,102 Previous Year - - - 47,801,653,794 - 47,801,653,794
Subscription of Units (including switch in and dividend reinvestment) 287,529,184,635 740,168,608 - - 3,677,678 288,273,030,921 Previous Year 113,095,582,553 1,332,470,572 - - 19,736,122 114,447,789,248
Redemption of Units (including switch out) 286,647,559,029 1,100,875,040 - - 6,942,693 287,755,376,762 Previous Year 112,885,054,000 1,166,805,322 - 3,154,023,254 24,665,395 117,230,547,970
Dividend Distribution (Including dividend reinvested) 70,484,635 14,768,608 - - 103,678 85,356,921 Previous Year 26,782,553 26,749,326 - - 289,099 53,820,978
Investment Management and Advisory Fees - 36,050,168 - - - 36,050,168 Previous Year - 56,516,538 - - - 56,516,538
Brokerage/ Commission on Distribution of Units - - 5,558,917 - - 5,558,917 Previous Year - - 8,336,258 - - 8,336,258
Reimbursement of Expenses - - - - - - Previous Year - 526,065 - - - 526,065
Fixed Deposits Matured - - - - - - Previous Year - - 50,000,000 - - 50,000,000
Interest Rate Swaps Matured - - - - - - Previous Year - - 1,000,000,000 - - 1,000,000,000
Charges for Services Provided by Bank - - 56,595 - - 56,595 Previous Year - - 68,500 - - 68,500
(ii) Outstanding As At Year End
Nature of Transaction Sponsor Investment Manager
Associate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel & their
Relatives Total
Investment Management and Advisory Fees Payable - 3,238,804 - - - 3,238,804 Previous Year - 1,180,817 - - - 1,180,817
Brokerage/ Commission Payable for Distribution of Units - - 376,381 - - 376,381 Previous Year - - 466,842 - - 466,842
Units Outstanding As At Year End 1,112,167,596 59,851,697 - - 65,930 1,172,085,223 Previous Year 230,541,989 420,321,191 - - 6,396,382 657,259,562
Other Payables - - - 108,000 - 108,000 Previous Year - - - - - -
Other Receivables - 56,617 - 21,786 - 78,403 Previous Year - 526,517 - - - 526,517
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control ofthe Sponsor.
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Purchase of InvestmentsHSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 23,172,428,278 32,269,886,734
Sale of InvestmentsHSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 19,479,325,593 33,242,041,782
Redemption of Units (including switch out)HSBC Equity Fund - 901,866,152HSBC India Opportunities Fund - 500,817,400HSBC Advantage India Fund - 1,002,078,759HSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) - 450,735,661
Other PayablesHSBC Equity Fund 95,000 - HSBC Floating Rate Fund - Long Term Plan 3,000 - HSBC MIP - Saving Plan 10,000 -
Other ReceivablesHSBC Advantage India Fund 21,786 -
(iv) Disclosures in respect of material transactions with persons referred to in Note 13 (I)(v) for key management personneland their relatives
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Subscription of Units (including switch in and dividend reinvestment)Sanjay Prakash 3,341,596 16,944,817Naina Lal Kidwai - 529,099Nelum P Gidwani - 2,003,402
Redemption of Units (including switch out)Sanjay Prakash 6,690,693 21,351,079Naina Lal Kidwai - 1,310,914
Dividend Distribution (Including dividend reinvested)Naina Lal Kidwai - 29,099Sanjay Prakash 91,596 244,793
Units Outstanding As At Year EndSanjay Prakash - 5,945,076Naina Lal Kidwai 65,930 192,616
0
HSBC MUTUAL FUND - HSBC CASH FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
SCHEDULE 8
0Notes to the Financial Statements
1 Organisation
HSBC Cash Fund (the “Scheme”) is an open-ended liquid scheme of HSBC Mutual Fund (the “Fund”) and was launched
on November 14, 2002. HSBC Mutual Fund has been sponsored by HSBC Securities and Capital Markets (India) Private
Limited. HSBC Asset Management (India) Private Limited incorporated under the Companies Act, 1956 has been
appointed as the asset management company. The duration of the Scheme is perpetual. The Scheme closed for initial
subscription on December 3, 2002 and reopened for issue and redemption of units on December 11, 2002. The
investment objective of the Scheme is to provide reasonable returns, commensurate with low risk while providing a high
level of liquidity, through a portfolio of money market and debt securities.
The Scheme has three Options – Regular Option, Institutional Option and Institutional Plus Option. The Regular Option
offers Growth, Daily Dividend and Weekly Dividend sub options. Weekly Dividend sub option was introduced during
the year ended March 31, 2006 and units were allotted on April 19, 2005 at the net asset value of Rs.10 per unit in
accordance with the addendum dated April 8, 2005 made to the common offer document dated November 29, 2004. The
Institutional Option was introduced during the year ended March 31, 2004 offering Growth, Daily Dividend, Weekly
Dividend and Monthly Dividend Sub-Options. Units were allotted on September 14, 2003 under the Growth and
Monthly Dividend Sub-Options and on September 15, 2003 under the Daily and Weekly Dividend Sub-Options at the
net asset value of the Growth Sub-Option of the Regular Option, while the terms of the addendum to the offer document
dated August 29, 2003 stated that unit holders opting for the Growth and Dividend Sub-Options in the Institutional
Option would be allotted units at the existing net asset values of the Growth and Dividend Sub-Options respectively, of
the Regular Option. However, this has not resulted in any loss or gain to the unit holders opting for the Sub – Options
under the Institutional Option nor has it had any impact on the ongoing net asset values of the respective Sub-Options of
the Institutional Option. An Institutional Plus Option was introduced during the year ended March 31, 2005 offering
Growth, Daily Dividend, Weekly Dividend and Monthly Dividend Sub-Options. Units were allotted on June 02, 2004
under the Growth, Daily Dividend, Weekly Dividend and Monthly Dividend Sub-Options at the net asset value of Rs.10
per unit in accordance with the addendum dated May 10, 2004 made to the offer document dated October 17, 2002.
The Scheme will not declare dividend under the Growth Sub - Options in normal circumstances. The income earned on
such units will remain invested within the Scheme and will be reflected in the net asset value.
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 “Regulations”) and amendments thereto, as applicable.
2.2 Portfolio Valuation
Investments are stated at market/fair value at the Balance Sheet date/date of determination. In valuing the Scheme’s
investments:
i. Debt securities listed on a recognised stock exchange are valued at the last quoted closing price on the National
Stock Exchange of India Limited (NSE). If no sale is reported at that time, such securities are valued at fair value
as determined in good faith by HSBC Asset Management (India) Private Limited under procedures approved by
the Board of Trustees of HSBC Mutual Fund.
HSBC MUTUAL FUND - HSBC CASH FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
ii. Non-traded and thinly traded debt securities are valued at fair value as determined by HSBC Asset Management
(India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund in accordance
with the guidelines for valuation of securities for mutual funds dated September 18, 2000 and amendments
thereto, as applicable, issued by the Securities and Exchange Board of India (SEBI).
iii. Privately placed debt securities are valued at fair value as determined in good faith by HSBC Asset Management
(India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund.
iv. Asset backed securities are valued at fair value as determined in good faith by HSBC Asset Management (India)
Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund .
v. Instruments bought on ‘repo’ basis are valued at the resale price after deduction of applicable interest up to the
date of resale.
vi. Traded money market securities are valued at the yield at which they are traded on the valuation date. If no sale is
reported at that time, such security is valued at the last traded price plus accretion of the difference between the
face value and the last traded price. Non traded money market instruments and bills purchased under
rediscounting schemes are valued at cost plus accrued interest.
Following the issue of guidance note on accounting for investments in the financial statements of the mutual funds by the Institute of Chartered Accountants of India (pursuant to the Eleventh Schedule of the Regulations) net unrealised appreciation / depreciation in the value of investments is determined separately for each category of investments. In respect of each category of investments, the net change in the unrealised appreciation if any, between two balance sheet dates / valuation dates is accounted through the Revenue Account and thereafter the net unrealised appreciation is transferred from the Revenue Account to the Unrealised Appreciation Reserve. The net depreciation if any, is accounted through the Revenue Account.
Net unrealised appreciation is reduced from the distributable income at the time of income distribution.
The loss on investments sold/transferred during the year/period is charged to the Revenue Account instead of being first adjusted against the provision for depreciation, if already created in the previous year/period as recommended in the Guidance Note. However the departure from the Guidance Note does not have any net impact on the net asset value of the options of the Scheme.
2.3 Interest Rate Swaps
Interest expense and income are accrued on a net basis daily in respect of interest rate swaps with maturity less than 182
days.
2.4 Securities Transactions
Investment securities transactions are accounted for on a trade date basis. The Scheme uses the average cost method for
determining the realized gain or loss on sale of investments.
2.5 Investment Income
Interest income is recorded on an accrual basis.
HSBC MUTUAL FUND - HSBC CASH FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
2.6 Net Asset Value for Growth/Dividend Sub- Options
The net asset value of the units of the Scheme is determined separately for the units issued under the Growth and
Dividend Sub-Options for the Regular, Institutional and Institutional Plus Options.
For reporting the net asset value for the Sub - Option, 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 Sub - Options in proportion to the
value of the units outstanding.
2.7 Unit Premium Reserve
Upon issue and redemption of units, the net premium or discount to the face value of units is adjusted against the unit
premium reserve of the Scheme, after an appropriate portion of the issue proceeds and redemption payout is credited or
debited respectively to the income equalization reserve.
The unit premium reserve is available for dividend distribution except to the extent it is represented by unrealised net
appreciation in value of investments.
2.8 Income Equalization Reserve
The net distributable income relating to units issued/repurchased is transferred to/from income equalization reserve for
determining the net surplus/deficit, transferred from/to unit premium reserve. 3 Investment Management and Advisory Fees
The Scheme has paid or provided for investment management and advisory fees payable to HSBC Asset Management
(India) Private Limited for managing the Scheme at an average annual rate of 0.24% of the average daily net asset
value recorded by the Scheme. All costs, charges and expenses incurred by HSBC Asset Management (India) Private
Limited in the administration and execution of the activities of the Scheme, except costs allowed to be charged to the
Scheme under the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto as
applicable, are on their own account for which they receive investment management and advisory fees. 4 Trusteeship Fees
In accordance with the Deed of Trust dated February 7, 2002 between HSBC Securities and Capital Markets (India)
Private Limited (“The Settlor”) and the Board of Trustees of HSBC Mutual Fund, the Fund has paid or provided for a
fee not exceeding Rs.20,000 for each meeting of the Board of Trustees attended by such Trustee not affiliated with the
Settlor. 5 Custodian Fees
JP Morgan Chase Bank provides custodial services to the Scheme for which it receives custody fees. 6 Income Taxes
No provision for income tax is made as the Scheme qualifies as a recognized mutual fund under Section 10(23D) of the
Income Tax Act, 1961.
HSBC MUTUAL FUND - HSBC CASH FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
7 Aggregate Appreciation /(Depreciation) In Value of Investments
Aggregate appreciation /(depreciation) in value of investments is as follows:
March 31, 2009
(Rupees) March 31, 2008
(Rupees)
Non Convertible Debentures and Bonds Listed / Awaiting Listing
- Appreciation - -
- Depreciation - 7,220
8 Aggregate Fair Value of Non-Traded / Privately Placed Investments
Aggregate fair value of non-traded (including private placement) investments as determined by HSBC Asset
Management (India) Private Limited under the procedures approved by the Board of Trustees as at March 31, 2009 is
Rs. 499,774,250.
9 Aggregate Value of Purchases and Sale of Investments
The aggregate value of investment securities purchased (excluding accretion of discount of Rs. 765,499,693) and sold
(including matured) during the financial year are Rs. 113,034,775,451 and Rs. 126,356,785,527 respectively being
745.22 % and 833.05% of the average daily net assets.
10 Income and Expenses
The total income (including net profit on sale of investments and net change in unrealized depreciation in the value of
investments) and expenditure during the year is Rs. 1,232,075,912 and Rs. 60,575,532 respectively being 8.12 % and
0.40 % of average daily net assets.
11 Miscellaneous Income
Miscellaneous income of Rs.39,384 represents amount compensated by HSBC Asset Management (India) Private
Limited, the investment adviser towards delayed recording of unit capital transactions.
12 Disclosure Under Regulation 25(8) of the Securities and Exchange Board of India (Mutual Funds ) Regulation,
1996 as amended and in accordance with Accounting Standard 18 on ‘Related Party Disclosures’ issued by the
Institute of Chartered Accountants of India (ICAI)
The Scheme has entered into transactions with certain related parties. The information required in this regard in
accordance with Accounting Standard 18 on ‘Related Party Disclosures’ issued by the Institute of Chartered
Accountants of India and regulation 25(8) of SEBI Regulation, is provided below :
HSBC MUTUAL FUND - HSBC CASH FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
I Related party relationships
Name Description of relationship
(i) HSBC Securities and Capital Markets (India) Private Limited Sponsor of the Fund (ii) HSBC Asset Management (India) Private Limited Investment Manager to the
Schemes of HSBC Mutual Fund (iii) The Hong Kong and Shanghai Banking Corporation Limited Associate of the Investment Manager (iv) Schemes of the Fund, Under Common Control of the Sponsor
HSBC Advantage India Fund HSBC Dynamic Fund HSBC Emerging Market Fund HSBC Equity Fund HSBC Fixed Term Series 21 upto April 02, 2008 HSBC Fixed Term Series 22 upto April 22, 2008 HSBC Fixed Term Series 23 upto April 02, 2008 HSBC Fixed Term Series 24 upto December 15, 2008 HSBC Fixed Term Series 25 upto April 23, 2008 HSBC Fixed Term Series 27 upto April 02, 2008 HSBC Fixed Term Series 28 upto May 26, 2008 HSBC Fixed Term Series 30 HSBC Fixed Term Series 32 upto July 10, 2008 HSBC Fixed Term Series 33 upto September 08, 2008 HSBC Fixed Term Series 35 upto September 18, 2008 HSBC Fixed Term Series 36 upto October 07, 2008 HSBC Fixed Term Series 37 upto October 22, 2008 HSBC Fixed Term Series 41 HSBC Fixed Term Series 42 HSBC Fixed Term Series 44 HSBC Fixed Term Series 45 HSBC Fixed Term Series 46 HSBC Fixed Term Series 47 upto June 26, 2008 HSBC Fixed Term Series 48 with effect from March 28, 2008 upto October 07, 2008 HSBC Fixed Term Series 49 HSBC Fixed Term Series 50 with effect from April 17, 2008 HSBC Fixed Term Series 51 with effect from April 23, 2008 upto October 23, 2008 HSBC Fixed Term Series 52 with effect from April 24, 2008 HSBC Fixed Term Series 53 with effect from May 23, 2008 HSBC Fixed Term Series 54 with effect from May 27, 2008 HSBC Fixed Term Series 55 with effect from June 26, 2008 upto December 29, 2008 HSBC Fixed Term Series 56 with effect from July 25, 2008 HSBC Fixed Term Series 57 with effect from August 13, 2008 HSBC Fixed Term Series 58 with effect from July 22, 2008 upto November 05, 2008 HSBC Fixed Term Series 59 with effect from July 07, 2008 HSBC Fixed Term Series 60 with effect from July 10, 2008 upto October 13, 2008 HSBC Fixed Term Series 61 with effect from July 17, 2008 HSBC Fixed Term Series 62 with effect from August 22, 2008 HSBC Fixed Term Series 63 with effect from September 04, 2008 HSBC Fixed Term Series 66 with effect from September 18, 2008 HSBC Fixed Term Series 68 with effect from October 06, 2008 to January 14, 2009 HSBC Flexi Debt Fund
HSBC MUTUAL FUND - HSBC CASH FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
HSBC Floating Rate Fund Long Term Plan HSBC Floating Rate Fund Short Term Plan HSBC Gilt Fund (Formerly, HSBC Gilt Fund – Short Term Plan) HSBC Income Fund Investment Plan HSBC Income Fund Short Term Plan HSBC India Opportunities Fund HSBC Interval Fund - Plan I upto November 20, 2008 HSBC Interval Fund - Plan II upto December 10, 2008 HSBC Interval Fund - Plan III upto December 17, 2008 HSBC Ultra Short Term Bond Fund (Formerly , HSBC Liquid Plus Fund) HSBC Midcap Fund HSBC MIP Fund Regular Plan HSBC MIP Fund Savings Plan HSBC Small Cap Fund HSBC Tax Saver Equity Fund HSBC Unique Opportunities Fund
(v) Key Management Personnel and their relatives:
Nelum Pahlaj Gidwani – Associate Trustee Naina Lal Kidwai – Chairman of the Investment Manager Vikramaditya – Director and the Chief Executive Officer of the Investment Manager with effect from July 16, 2008 Dr. Rudolf Apenbrink – Associate Tustee Ayaz Ebrahim – Director with effect from April 11, 2008 Sanjay Prakash – Director and the Chief Executive Officer upto July 16, 2008 Avan Nelum Gidwani* – Relative of a Key Management Personnel Rashid K Kidwai* – Relative of a Key Management Personnel Rumaan Kidwai* – Relative of a Key Management Personnel Kemaya Lal Kidwai* – Relative of a Key Management Personnel Amrita Vikramaaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Raaghav Aaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Rhea Aaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Gabriele A Apenbrink* – Relative of a Key Management Personnel Christian R Apenbrink* – Relative of a Key Management Personnel Katharina S Apenbrink* – Relative of a Key Management Personnel Yasmin Ebrahim* – Relative of a Key Management Personnel with effect from April 11, 2008 Daanyal Ebrahim* – Relative of a Key Management Personnel with effect from April 11, 2008 Nilufer Prakash – Relative of a Key Management Personnel upto July 16, 2008 Tara Prakash* – Relative of a Key Management Personnel upto July 16, 2008 Anahita Prakash* – Relative of a Key Management Personnel upto July 16, 2008 * There were no transactions during the year.
`II The following transactions occurred with the related parties during the year in the ordinary course of business: Refer Annexure I
HSBC MUTUAL FUND - HSBC CASH FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
III During the year, The Hongkong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset
Management (India) Private Limited was paid collection/bank charges Rs. 56,595 and brokerage amounting to Rs.
5,558,917 for procuring unit subscriptions for the Scheme. The brokerage paid was at rates similar to those offered to
other distributors.
Further, The Hong Kong and Shanghai Banking Corporation Limited, an associate of the Sponsor, is on the
panel of bankers with whom HSBC Mutual Fund places money on fixed deposits and enters into reverse repo
transactions from time to time at competitive rates.
13 Disclosure under Regulation 25(11) of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 as amended
HSBC Mutual Fund has made investments in companies, which holds/ has held units in excess of 5% of the net asset
value of any Scheme of HSBC Mutual Fund which have been listed in Annexure II.
The investments comprise equity shares, debentures/ bonds, commercial paper, fixed deposits and other debt instruments
and were made solely on the basis of sound fundamentals of these companies.
14 Segment Reporting
The Scheme operates in one segment only viz. to primarily generate attractive returns from a diversified and actively
managed portfolio of debt and money market instruments.
15 Investment in Unitech Limited
As at March 31, 2009, HSBC Cash Fund had investments in secured redeemable debentures of Unitech Limited
aggregating Rs. 10.62 crores which were rescheduled for payment on April 18, 2009. Subsequent, to the year end the
terms and conditions of the said debentures were mutually extended in the interest of the unit holders, such that 50% of
the principal amount of the debentures would be payable in two equal installments before April 30, 2009 and June 30,
2009 and the balance 50% payable in April 2010. The Scheme has received Rs. 2.61 crores in April 2009. The interest on
the debentures has been serviced till March 31, 2009. The debenture holders are secured against immovable property
mortgaged by the company. In view of the above, in the opinion of the management, no provision is considered
necessary as at March 31, 2009.
HSBC MUTUAL FUND - HSBC CASH FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
16 Prior Year’s Figures
Previous year’s figures have been re-grouped/re-arranged where appropriate.
Signatures to the Schedules 1 to 8 forming part of the Balance Sheet and the Revenue Account.
PARTHA GHOSH Partner Membership No. F-55913 For and on behalf of PRICE WATERHOUSE Chartered Accountants
For Board of Trustees of HSBC Mutual Fund
For HSBC Asset Management (India) Private Limited
Trustee
Vikramaaditya Director and Chief Executive Officer
Trustee
Director
Place: Mumbai Date :
Fund Manager(s)
Auditors' Report To the Board of Trustees of HSBC MUTUAL FUND 1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Flexi Debt Fund ("The Scheme") as
at March 31, 2009 and the related Revenue Account for the year ended on that date, both of which we have signed under reference to this report. These financial statements are the responsibility of the Board of Trustees of HSBC Mutual Fund and the Management of HSBC Asset Management (India) 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. Our procedures included confirmation of securities owned and unit capital balances as at March 31, 2009 by correspondence with the custodian/others and registrar and transfer agent respectively. 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, (i) 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 also give respectively, a true and fair view of the state of affairs of HSBC Mutual Fund – HSBC Flexi Debt Fund as at March 31, 2009 and its net surplus for the year ended March 31, 2009.
(ii) The Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009, together with the notes thereon have been prepared in all material respects 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.
(iii) The method used to value: (a) non traded debt securities in accordance with the guidelines for valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India and
(b) privately placed securities and government securities in good faith as at March 31, 2009 as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund are fair and reasonable.
PARTHA GHOSH Partner Membership No. F-55913 For and on behalf of PRICE WATERHOUSE Chartered Accountants Place: Mumbai Date: July 06, 2009
March 31, 2009 March 31, 2008Schedule Rupees Rupees
ASSETS
Investments 1 2,922,421,151 1,891,685,521
Other Current Assets 2 288,835,955 464,525,808
TOTAL 3,211,257,106 2,356,211,329
LIABILITIES
Unit Capital 3 2,986,843,230 2,317,959,342
Reserves and Surplus 4 181,546,508 35,291,598
Current Liabilities and Provisions 5 42,867,368 2,960,389
TOTAL 0.70 3,211,257,106 2,356,211,329
RECONCILIATION OF NET ASSET VALUE PER UNIT
Growth Sub Option
Monthly Dividend Sub Option
Fortnightly Dividend
Sub OptionQuarterly Dividend
Sub Option
Half Yearly Dividend
Sub Option TotalGrowth
Sub Option Monthly Dividend
Sub Option
Fortnightly Dividend
Sub Option Quarterly Dividend
Sub Option Total TotalGrowth
Sub Option Monthly Dividend
Sub Option
Fortnightly Dividend
Sub Option Total Growth
Sub Option Fortnightly Dividend
Sub Option Monthly Dividend
Sub Option Total Total
Net Assets as per Balance Sheet (Total Assets less Current Liabilities and Provisions ) (Note 2.5) 131,859,184 229,491,741 29,563,162 71,717,007 1,934,452 464,565,546 907,194,754 649,109,621 973,614,215 173,905,602 2,703,824,192 3,168,389,738 6,623,605 66,586,064 39,852,318 113,061,987 721,714,098 1,439,235,123 79,239,732 2,240,188,953 2,353,250,940
Number of Units in Issue 11,320,074.613 22,377,892.041 2,851,879.905 6,647,539.396 197,382.137 77,479,560.708 61,694,176.890 99,822,416.031 16,293,401.195 635,935.451 6,654,260.050 3,972,727.223 69,174,404.939 143,490,168.848 7,868,437.619
Net Asset Value per Unit 11.6483 10.2553 10.3662 10.7885 9.8005 11.7088 10.5214 9.7535 10.6734 10.4155 10.0065 10.0315 10.4333 10.0302 10.0706
131,859,184 229,491,741 29,563,162 71,717,007 1,934,452 464,565,546 907,194,754 649,109,621 973,614,215 173,905,602 2,703,824,192 3,168,389,738 Notes to the Financial Statements. 7
PARTHA GHOSH For Board of Trustees of For HSBC Asset Management (India)
Partner HSBC Mutual Fund Private Limited
Membership No. F-55913For and on behalf of PRICE WATERHOUSE Chartered Accountants Vikramaaditya
Trustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai Date : 06 July 2009 Fund Manager(s)
RupeesInstitutional Option
March 31, 2009
HSBC MUTUAL FUND - HSBC FLEXI DEBT FUND
Balance Sheet as at March 31, 2009
March 31, 2008Rupees
Regular Option Institutional Option
This is the Balance Sheet referred to in our report of even date.
The schedules referred to herein form an integral part of the Financial Statements.
Regular Option
0
Schedule Rupees Rupees
INCOME AND GAINS
Interest and Discount 6 137,817,674 88,266,981
Net Profit on Sale of Investments (Previous year Net Profit Rs. 1,663,038) (Note 2.3) - 12,534,578
TOTAL 137,817,674 100,801,559
EXPENSES AND LOSSES
Net Loss on Sale of investments (Including Net Loss on Inter-Scheme Sale of Investments Rs. 2,830,646(Previous period: Rs. Nil)) (Note 2.3) 27,041,105 -
Investment Management and Advisory Fees (Note 3) 10,323,027 5,960,550
Transfer Agent Fees and Expenses 958,077 447,162
Trusteeship Fees and Expenses (Note 4) 6,864 2,920
Custodian Fees and Expenses (Note 5) 213,734 201,696
Audit Fees 100,000 100,000
Selling and Distribution Expenses 14,035,714 1,698,633
Other Operating Expenses 162,097 103,810
TOTAL 52,840,618 8,514,771
Net Realised Gains for the Year/Period 84,977,056 92,286,788
Net Change in Unrealised Depreciation in Value of Investments (30,180,533) (8,965,270)
Net Gains for the Year/Period 54,796,523 83,321,518
Net Change in Unrealised Appreciation in Value of Investments 12,881,525 (1,268,168)
Net Surplus including Net change in Unrealised Appreciation/Depreciation in Value of Investments
67,678,048 82,053,350
Transferred to Unrealised Appreciation Reserve (12,881,525) 1,268,168
Net Surplus for the Year/Period 54,796,523 83,321,518
April 01, 2008to March 31, 2009
October 03, 2007 to March 31, 2008
Rupees Rupees
Net Surplus for the Year / Period 54,796,523 83,321,519
Transfer from Income Equalisation Reserve (Note 2.7) 82,196,992 22,031,836
Transfer from Unit Premium Reserve (Note 2.6) 662,064 223,020
Transfer from Reserve Fund 10,828,217 -
Dividend / Distribution (87,678,606) (59,638,385)
Dividend / Distribution Tax thereon (17,082,507) (12,917,342)
Balance Transferred to Reserve Fund 43,722,683 33,020,647
Notes to the Financial Statements. 7
This is the Revenue Account referred to in our report of even date.
PARTHA GHOSH For Board of Trustees of For HSBC Asset Management (India)
Partner HSBC Mutual Fund Private Limited
Membership No. F-55913For and on behalf of PRICE WATERHOUSE Chartered Accountants Vikramaaditya
Trustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai Date : 06 July 2009 Fund Manager(s)
HSBC MUTUAL FUND - HSBC FLEXI DEBT FUND
Revenue Account for the year ended March 31, 2009
October 03, 2007 to March 31, 2008
The schedules referred to herein form an integral part of the Revenue Account
April 01, 2008 to March 31, 2009
April 01, 2008to March 31, 2009
October 03, 2007 to March 31, 2008
Institutional Option
1
SCHEDULE 1
Investments Market/Fair Value Cost Market/Fair Value Cost(Notes 2.2, 2.3, 7, 8, 9 and 12) Rupees Rupees Rupees Rupees
(Refer to the attached Statement of Portfolio Holding as at March 31, 2009)
Non Convertible Debentures and Bonds Listed / Awaiting Listing 1,739,136,506 1,725,365,366 1,071,992,014 1,080,957,284
Privately Placed Non Convertible Debentures / Bonds 20,693,775 20,315,222 316,202,448 314,934,279
Certificate of Deposit - - 503,491,059 503,491,059
Government of India Securities 1,162,590,870 1,201,736,673 - -
TOTAL 2,922,421,151 2,947,417,261 1,891,685,521 1,899,382,622
SCHEDULE 2 March 31, 2009 March 31, 2008Other Current Assets Rupees Rupees
Balance with Banks- in Current Account 800,238 10,616,585 - in Dividend Account 9 -
Reverse Repos 72,747,433 417,241,885
Collateralised Borrowing and Lending Obligation 76,111,568 -
Sales Contracts Awaiting Completion - Government of India Securities 63,668,625 -
Unit Subscription Receivable 1,530,000 6,900,002
Inter-Scheme Receivable for Switch In 207,481 -
Interest Receivable on :- Debentures and Bonds 60,426,134 29,675,470 - Government of India Securities 13,313,253 - - Reverse Repos 9,362 91,866 - Collateralised Borrowing and Lending Obligation 9,325 -
Receivable from Investment Manager 403 -
Miscellaneous Receivables 12,124 -
TOTAL 288,835,955 464,525,808
HSBC MUTUAL FUND - HSBC FLEXI DEBT FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
Rupees March 31, 2009
Rupees March 31, 2008
2
SCHEDULE 3Unit Capital March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008
Rupees Units Rupees Units
Regular Option
Growth Sub Option
Issued and Subscribed :
Units of Rs.10 each fully paid up 25,001 2,500.100 25,001 2,500.100
Outstanding:
Initial Issue and Subscription - - 25,001 2,500.100
At the beginning of the year / period 6,359,354 635,935.451 - -
Issued during the year / period 125,912,608 12,591,260.792 13,256,635 1,325,663.531
132,271,962 13,227,196.243 13,281,636 1,328,163.631
Redeemed during the year / period 19,071,216 1,907,121.630 6,922,282 692,228.180
At the end of the year / period 113,200,746 11,320,074.613 6,359,354 635,935.451
Monthly Dividend Sub Option
Issued and Subscribed :
Units of Rs.10 each fully paid up 7,941,351 794,135.124 7,941,351 794,135.124
Outstanding: - -
Initial Issue and Subscription - - 7,941,351 794,135.124
At the beginning of the year / period 66,542,600 6,654,260.050 - -
Issued during the year / period 231,174,403 23,117,440.320 115,868,508 11,586,850.842
297,717,003 29,771,700.370 123,809,859 12,380,985.966
Redeemed during the year / period 73,938,083 7,393,808.329 57,267,259 5,726,725.916
At the end of the year / period 223,778,920 22,377,892.041 66,542,600 6,654,260.050
Fortnightly Dividend Sub Option
Issued and Subscribed :
Units of Rs.10 each fully paid up 1,469,757 146,975.683 1,469,757 146,975.683
Outstanding: - -
Initial Issue and Subscription - - 1,469,757 146,975.683
At the beginning of the year / period 39,727,273 3,972,727.223 - -
Issued during the year / period 38,945,177 3,894,517.663 42,662,735 4,266,273.485
78,672,450 7,867,244.886 44,132,492 4,413,249.168
Redeemed during the year / period 50,153,650 5,015,364.981 4,405,219 440,521.945
At the end of the year / period 28,518,800 2,851,879.905 39,727,273 3,972,727.223
Quarterly Dividend Sub Option
Issued and Subscribed :
Units of Rs.10 each fully paid up - - - -
Outstanding:
Issued during the year / period 71,808,103 7,180,810.305 - -
71,808,103 7,180,810.305
Redeemed during the year / period 5,332,709 533,270.909 - -
At the end of the year / period 66,475,394 6,647,539.396 - -
Half Yearly Dividend Sub Option
Issued and Subscribed :
Units of Rs.10 each fully paid up - - - -
Outstanding:
Issued during the year / period 1,973,821 197,382.137 - -
1,973,821 197,382.137
Redeemed during the year / period - - - -
At the end of the year / period 1,973,821 197,382.137 - -
Institutional Option
Growth Option
Issued and Subscribed :
Units of Rs.10 each fully paid up 20,000,000 2,000,000.000 20,000,000 2,000,000.000
Outstanding:
Initial Issue and Subscription - - 20,000,000 2,000,000.000
At the beginning of the year / period 691,744,050 69,174,404.939 - -
Issued during the year / period 1,462,346,620 146,234,661.989 1,000,142,151 100,014,215.087
2,154,090,670 215,409,066.928 1,020,142,151 102,014,215.087
Redeemed during the year / period 1,379,295,062 137,929,506.220 328,398,101 32,839,810.148
At the end of the year / period 774,795,608 77,479,560.708 691,744,050 69,174,404.939
Monthly Dividend Sub Option
Issued and Subscribed :
Units of Rs.10 each fully paid up 752,458,640 75,245,864.000 752,458,640 75,245,864.000
Outstanding:
Initial Issue and Subscription - - 752,458,640 75,245,864.000
At the beginning of the year / period 78,684,376 7,868,437.619 - -
Issued during the year / period 1,164,783,863 116,478,386.310 84,870,867 8,487,086.689
1,243,468,239 124,346,823.929 837,329,507 83,732,950.689
Redeemed during the year / period 626,526,470 62,652,647.039 758,645,131 75,864,513.070
At the end of the year / period 616,941,769 61,694,176.890 78,684,376 7,868,437.619
Fortnightly Dividend Sub Option
Issued and Subscribed :
Units of Rs.10 each fully paid up 513,896,416 51,389,641.560 513,896,416 51,389,641.560
Outstanding:
Initial Issue and Subscription - - 513,896,416 51,389,641.560
At the beginning of the year / period 1,434,901,689 143,490,168.848 - -
Issued during the year / period 2,298,280,005 229,828,000.535 2,057,140,548 205,714,054.776
3,733,181,694 373,318,169.383 2,571,036,964 257,103,696.336
Redeemed during the year / period 2,734,957,534 273,495,753.352 1,136,135,275 113,613,527.488
At the end of the year / period 998,224,160 99,822,416.031 1,434,901,689 143,490,168.848
Quarterly Dividend Sub Option
Issued and Subscribed :
Units of Rs.10 each fully paid up - - - -
Outstanding:
Issued during the year / period 214,432,560 21,443,255.956 - -
214,432,560 21,443,255.956 - -
Redeemed during the year / period 51,498,548 5,149,854.761 - -
At the end of the year / period 162,934,012 16,293,401.195 - -
Half Yearly Dividend Sub Option
Issued and Subscribed :
Units of Rs.10 each fully paid up - - - -
Outstanding:
Issued during the year / period 28,194,751 2,819,475.063 - -
28,194,751 2,819,475.063 - -
Redeemed during the year / period 28,194,751 2,819,475.063 - -
At the end of the year / period - - - -
TOTAL 2,986,843,230 298,684,322.916 2,317,959,342 231,795,934.130
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
HSBC MUTUAL FUND - HSBC FLEXI DEBT FUND3
SCHEDULE 4Reserves and Surplus
Unit Premium Reserve (Note 2.6)
At the beginning of the year / period 1,002,783 -
Added during the year / period 101,140,983 1,225,803
Transferred to Revenue Account (662,064) (223,020)
At the end of the year / period 101,481,702 1,002,783
Unrealised Appreciation Reserve
At the beginning of the year / period 1,268,168 -
Net change in Unrealised Appreciation in Value of Investments Transferred from Revenue Account (Note 7) 12,881,525 (1,268,168)
At the end of the year / period 14,149,693 1,268,168
Income Equalisation Reserve (Note 2.7)
Added during the year / period 82,196,992 22,031,836
Transferred to Revenue Account (82,196,992) (22,031,836)
At the end of the year / period - -
Reserve Fund
At the beginning of the year / period 33,020,647 -
Transferred to Revenue Account (10,828,217) -
Balance Transferred from Revenue Account 43,722,683 33,020,647
At the end of the year / period 65,915,113 33,020,647
TOTAL 181,546,508 *. 35,291,598 *
* The share of the Options of the Reserves and Surplus is as follows : March 31, 2009 March 31, 2008
Regular Option
Growth Sub Option : Rs. 18,658,438 264,251
Monthly Dividend Sub Option : Rs. 5,712,821 43,464
Fortnightly Dividend Sub Option : Rs. 1,044,362 125,045
Quarterly Dividend Sub Option : Rs. 5,241,613 N.A.
Half Yearly Dividend Sub Option : Rs. (39,369) N.A.Total (A) 30,617,865 432,760
Institutional Option
Growth Sub Option : Rs. 132,399,146 29,970,048
Monthly Dividend Sub Option : Rs. 32,167,852 555,356
Fortnightly Dividend Sub Option : Rs. (24,609,945) 4,333,434
Quarterly Dividend Sub Option : Rs. 10,971,590 N.A.
Half Yearly Dividend Sub Option : Rs. - N.A.Total (B) 150,928,643 34,858,838
Total (A+B) 181,546,508 35,291,598
Rupees
HSBC MUTUAL FUND - HSBC FLEXI DEBT FUND
March 31, 2009
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
March 31, 2008
Rupees
4
SCHEDULE 5Current Liabilities and Provisions March 31, 2009 March 31, 2008
Rupees RupeesCurrent Liabilities
Investment Management and Advisory Fees 6,060,409 1,569,716 Transfer Agent Fees and Expenses 140,479 103,900 Custodian Fees and Expenses 43,759 72,148 Audit Fees 100,000 100,000 Purchase Contracts Awaiting Completion - Government of India Securities 33,042,917 - Selling and Distribution Expenses 3,242,038 469,564 Unit Redemption Payable 24,472 499,367 Dividend Payable - 809 Sundry Payables 213,294 144,885
TOTAL 42,867,368 2,960,389
SCHEDULE 6Interest and Discount (Note 2.4) April 01, 2008
to March 31, 2009October 03, 2007 to
March 31, 2008Rupees Rupees
Debentures / Bonds 81,238,163 49,598,688
Commercial Paper / Certificate of Deposit 5,253,288 18,801,059
Government of India Securities 41,113,448 7,836,687
Reverse Repos 8,046,750 11,392,505
Collateralised Borrowing and Lending Obligation 2,166,025 638,042
TOTAL 137,817,674 88,266,981
0 0
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
HSBC MUTUAL FUND - HSBC FLEXI DEBT FUND5
Annexure 1
(i) Transactions during the Year
Nature of Transaction Sponsor Investment ManagerAssociate of
Investment Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Purchase of Investments - - - 1,179,716,860 - 1,179,716,860 Previous Year - - - 4,537,908,548 - 4,537,908,548
Sale of Investments - - - 1,814,345,614 - 1,814,345,614 Previous Year - - - 3,056,465,703 - 3,056,465,703
Subscription of Units (including switch in and dividend reinvestment) - - 329,926,684 - 8,106,755 338,033,439 Previous Year - - - - - -
Redemption of Units (including switch out - - 274,827,489 - - 274,827,489 Previous Year - - - - - -
Dividend Distribution (Including dividend reinvested - - 5,343,204 - 6,755 5,349,959 Previous Year - - - - -
Investment Management and Advisory Fees - 10,323,027 - - - 10,323,027 Previous Year - 5,960,550 - - - 5,960,550
Brokerage/ Commission on Distribution of Units - - 3,796,113 - - 3,796,113 Previous Year - - 180,163 - - 180,163
(ii) Outstanding As At Year End
Nature of Transaction Sponsor Investment ManagerAssociate of
Investment Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Investment Management and Advisory Fees - 6,060,409 - - - 6,060,409 Previous Year - 1,569,716 - - - 1,569,716
Brokerage/ Commission Payable on Distribution of Units - - 935,851 - - 935,851 Previous Year - - 113,904 - - 113,904
Units Outstanding As At Year End 322,563,745 - 8,085,971 330,649,716 Previous Year - - - -
Other Receivables - 403 - - - 403 Previous Year - - - - -
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control ofthe Sponsor.
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Purchase of InvestmentsHSBC Floating Rate Fund Long Term Plan 288,517,316 461,033,605 HSBC Fixed Term Series 46 229,242,575 - HSBC Income Fund Short Term Plan 180,636,003 8,086,040 HSBC Cash Fund - 2,090,831,849 HSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 112,018,162 1,609,898,922
Sale of InvestmentsHSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 425,775,781 686,889,717HSBC Cash Fund 258,246,595 1,621,275,367HSBC Advantage India Fund 203,438,659 -
(iv) Disclosures in respect of material transactions with persons referred to in Note 13 (I)(v) for key management personneland their relatives
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Subscription of Units (including switch in and dividend reinvestment)Kemaya Lall Kidwai 5,600,000 - Naina Lal Kidwai 2,006,755 -
Dividend Distribution (Including dividend reinvestedNaina Lal Kidwai 6,755 -
Units Outstanding As At Year EndKemaya Lall Kidwai 5,606,080 - Naina Lal Kidwai 1,973,766 -
6
Description Quantity Market / Fair Value Rupees
Non-Convertible Debentures / Bonds Listed / Awaiting listing (59.51 %)Banks (32.38 %)
8.90% State Bank of India 2023 $ @ 386 387,963,638 9.25% Exim Bank Limited 2013 $ @ 100 102,993,900 9.50% Exim Bank Limited 2013 @ 70 72,151,170
563,108,708 Finance (53.12 %)
11.25% Power Finance Corporation Limited 2018 194 219,126,880 8.65% Rural Electrification Corporation Limited 2019 213 206,890,095 10.90% Rural Electrification Corporation Limited 2013 $ 150 162,634,250 8.55% Indian Railway Finance Corporation Limited 2019 100 97,471,300 8.46% Indian Railway Finance Corporation Limited 2014 80 80,265,680 10.60% Indian Railway Finance Corporation Limited 2018 $ 50 55,824,428 9.07% Rural Electrification Corporation Limited 2018 $ 40 39,846,090 10.75% Power Finance Corporation 2011 25 26,341,025 9.22% Power Finance Corporation Limited 2012 $ 25 25,621,051 9.65% Deutsche Postbank Home Finance Limited 2012 $ 10 9,842,392
923,863,191 Finance & Term Lending (1.58 %)
9.83% Kotak Mahindra Prime Limited 2009 $ 20 19,724,240 0.00% Kotak Mahindra Prime Limited 2010 $ 9 7,718,054
27,442,294 Petroleum Products (12.92 %)
11.00% Indian Oil Corporation Limited 2018 $ 200 224,722,313 224,722,313
Total (Cost Rs. 1,725,365,366) 1,739,136,506 Privately Placed / Unlisted Non-Convertible Debentures / Bonds (0.71 %)Finance (100 %)
10.40% SREI Equipments Finance Private Limited 2009 * 200 19,828,524 0.00% GE Capital Services India Limited 2010 * 1 865,251
20,693,775 Total (Cost Rs. 20,315,222) 20,693,775 Government of India Securities (39.78 %)
6.05% GOI Bonds 2019 7,525,000 701,631,000 7.46% GOI Bonds 2017 2,500,000 254,000,000 7.95% GOI Bonds 2032 700,000 70,980,000 8.35% GOI Bonds 2022 600,000 63,300,000 7.56% GOI Bonds 2014 550,000 57,090,000 8.30% Maharashtra SDL 2019 # 157,500 15,589,870
Total (Cost Rs. 1,201,736,673) 1,162,590,870 TOTAL INVESTMENTS (Cost Rs. 2,947,417,261) 2,922,421,151
@ Investment in companies which have invested more than five percent of the net asset value of any schemes of HSBC Mutual Fund.
HSBC MUTUAL FUND - HSBC FLEXI DEBT FUND
Statement of Portfolio Holding as at March 31, 2009
(Referred to in Schedule 1 to the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009)
# Fair value of Government securities as determined in good faith by HSBC Asset Management (India) Private Limited under procedures approved by the
$ Fair value of non traded debt securities and partly placed securities as determined by HSBC Asset Management (India) Private Limited underprocedures approved by the Board of Trustees in accordance with the guidelines for valuation of securities for Mutual funds dated September 18, 2000and amendments thereto, as applicable, issued by the Securities and Exchange Board of India.
* Fair value of privately placed securities as determined in good faith by HSBC Asset Management (India) Private Limited under procedures approved bythe Board of Trustees.
Confirmation has been received from JP Morgan Chase Bank, Mumbai Branch at the end of the financial year for the investments held by them.
7
HSBC MUTUAL FUND - HSBC FLEXI DEBT FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
SCHEDULE 7
0Notes to the Financial Statements
1 Organisation
HSBC Flexi Debt Fund (the “Scheme”) is an open-ended debt scheme of HSBC Mutual Fund (the “Fund”) and was launched on October 03, 2007. HSBC Mutual Fund has been sponsored by HSBC Securities and Capital Markets (India) Private Limited. HSBC Asset Management (India) Private Limited incorporated under the Companies Act, 1956 has been appointed as the asset management company. The duration of the Scheme is perpetual. The Scheme closed for initial subscription on October 3, 2007 and reopened for issue and redemption of units on October 8, 2007. The investment objective of the Scheme is to deliver returns in the form of interest income and capital gains along with high liquidity commensurate with the current view on the market and the interest rate cycle through active investment in debt and money market instruments. The Scheme was launched with two Options – Regular Option and Institutional Option; each offering Growth and Monthly Dividend sub Options. During the previous year, the Scheme introduced fortnightly dividend sub Options in both the Regular and Institutional Options with effect from 8th October 2007 and 15th October 2007 respectively. In accordance with the addendum to the Offer Document dated October 5, 2007 and February 22, 2008 respectively the Scheme has introduced quarterly dividend sub Options in both the Regular and Institutional Options with effect from April 09, 2008 and October 01, 2008 and half yearly dividend sub Options in Regular Option with effect from December 16, 2008. The Scheme will not declare dividend under the Growth Sub - Options in normal circumstances. The income earned on such units will remain invested within the Scheme and will be reflected in the net asset value.
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 “Regulations”) and amendments thereto, as applicable.
2.2 Portfolio Valuation
Investments are stated at market/fair value at the Balance Sheet date/date of determination. In valuing the Scheme’s investments:
i. Debt securities listed on a recognised stock exchange are valued at the last quoted closing price on the
National Stock Exchange of India Limited (NSE). If no sale is reported at that time, such securities are valued at fair value as determined in good faith by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund.
ii. Non-traded and thinly traded debt securities are valued at fair value as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India (SEBI).
HSBC MUTUAL FUND - HSBC FLEXI DEBT FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
iii. Privately placed debt securities are valued at fair value as determined in good faith by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund.
iv. Instruments bought on ‘repo’ basis are valued at the resale price after deduction of applicable interest
up to the date of resale.
v. Government securities are valued at prices obtained from The Credit Rating Information Services of India Limited in accordance with the guidelines for valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by SEBI. If no sale is reported at that time, such security is valued at fair value as determined in good faith by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund.
vi. Traded money market securities are valued at the yield at which they are traded on the valuation date. If
no sale is reported at that time, such security is valued at the last traded price plus accretion of the difference between the face value and the last traded price. Non traded money market instruments are valued at cost plus accrued interest.
Following the issue of guidance note on accounting for investments in the financial statements of the mutual funds by the Institute of Chartered Accountants of India (pursuant to the Eleventh Schedule of the Regulations) net unrealised appreciation / depreciation in the value of investments is determined separately for each category of investments. In respect of each category of investments, the net change in the unrealised appreciation if any, between two balance sheet dates / valuation dates is accounted through the Revenue Account and thereafter the net unrealised appreciation is transferred from the Revenue Account to the Unrealised Appreciation Reserve. The net depreciation if any, is accounted through the Revenue Account. Net unrealised appreciation is reduced from the distributable income at the time of income distribution. The loss on investments sold/transferred during the year/period is charged to the Revenue Account instead of being first adjusted against the provision for depreciation, if already created in the previous year/period as recommended in the Guidance Note. However the departure from the Guidance Note does not have any net impact on the net asset value of the options of the Scheme.
2.3 Securities Transactions
Investment securities transactions are accounted for on a trade date basis. The Scheme uses the average cost method for determining the realized gain or loss on sale of investments.
2.4 Investment Income
Interest income is recorded on an accrual basis.
2.5 Net Asset Value for Growth/Dividend Sub- Options
The net asset value of the units of the Scheme is determined separately for the units issued under the Growth and Dividend Sub-Options for the Regular and Institutional Options. For reporting the net asset value for the Sub - Option, 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 Sub - Options in proportion to the value of the units outstanding.
HSBC MUTUAL FUND - HSBC FLEXI DEBT FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
2.6 Unit Premium Reserve Upon issue and redemption of units, the net premium or discount to the face value of units is adjusted against the unit premium reserve of the Scheme, after an appropriate portion of the issue proceeds and redemption payout is credited or debited respectively to the income equalization reserve. The unit premium reserve is available for dividend distribution except to the extent it is represented by unrealised net appreciation in value of investments.
2.7 Income Equalization Reserve
The net distributable income relating to units issued/repurchased is transferred to/from income equalization reserve for determining the net surplus/deficit, transferred from/to unit premium reserve.
2.8 Load Charges
Load collected is retained under a separate account in the Scheme and is utilized to meet the selling and distribution expenses of the Scheme.
3 Investment Management and Advisory Fees
The Scheme has paid or provided for investment management and advisory fees payable to HSBC Asset
Management (India) Private Limited for managing the Scheme at an average annual rate of 0.61% of the
average daily net asset values of the Regular and Institutional Option recorded by the Scheme. All costs,
charges and expenses incurred by HSBC Asset Management (India) Private Limited in the administration and
execution of the activities of the Scheme, except costs allowed to be charged to the Scheme under the
Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereto as
applicable, are on their own account for which they receive investment management and advisory fees. 4 Trusteeship Fees
In accordance with the Deed of Trust dated February 7, 2002 between HSBC Securities and Capital Markets
(India) Private Limited (“The Settlor”) and the Board of Trustees of HSBC Mutual Fund, the Fund has paid
or provided for a fee not exceeding Rs.20,000 for each meeting of the Board of Trustees attended by such
Trustee not affiliated with the Settlor. 5 Custodian Fees
JP Morgan Chase Bank provides custodial services to the Scheme for which it receives custody fees. 6 Income Taxes
No provision for income tax is made as the Scheme qualifies as a recognized mutual fund under Section 10(23D) of the Income Tax Act, 1961.
HSBC MUTUAL FUND - HSBC FLEXI DEBT FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
7 Aggregate Appreciation and Depreciation In Value of Investments Aggregate appreciation and depreciation in value of investments is as follows:
March 31, 2009 (Rupees)
March 31, 2008 (Rupees)
Non Convertible Debentures and Bonds Listed / Awaiting Listing
- Appreciation 19,512,641 762,733
- Depreciation 5,741,501 9,728,003
Privately Placed Non Convertible Debentures / Bonds
- Appreciation 403,039 1,268,169
- Depreciation 24,486 -
March 31, 2009 (Rupees)
March 31, 2008 (Rupees)
Government of India Securities
- Appreciation - -
- Depreciation 39,145,803 - 8 Aggregate Fair Value of Non-Traded / Privately Placed Investments
Aggregate fair value of non-traded (including private placement)/ as determined by HSBC Asset
Management (India) Private Limited under the procedures approved by the Board of Trustees as at March 31,
2009 is Rs.1,057,584,131. 9 Aggregate Value of Purchase and Sale of Investments
The aggregate value of investment securities purchased (excluding accretion of discount of Rs. 7,919,570)
and sold (including matured) during the financial year are Rs. 15,365,196,103 and Rs. 14,298,039,929
respectively being 869.38 % and 809.00 % of the average daily net assets respectively.
10 Income and Expenses
The total income (including net loss on sale of investments and net unrealized depreciation in the value of
investments) and expenditure during the year is Rs. 80,596,036 and Rs. 25,799,513 respectively being 4.79 %
and 1.50 % of average daily net assets. 11 Disclosure Under Regulation 25(8) of the Securities and Exchange Board of India (Mutual Funds)
Regulation, 1996 as amended and in accordance with Accounting Standard 18 on ‘Related Party Disclosures’ issued by the Institute of Chartered Accountants of India (ICAI)
The Scheme has entered into transactions with certain related parties. The information required in this regard in accordance with Accounting Standard 18 on ‘Related Party Disclosures’ issued by the Institute of Chartered Accountants of India and regulation 25(8) of SEBI Regulation, is provided below :
HSBC MUTUAL FUND - HSBC FLEXI DEBT FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
I Related party relationships
Name Description of relationship (i) HSBC Securities and Capital Markets (India) Private Limited Sponsor of the Fund
(ii) HSBC Asset Management (India) Private Limited Investment Manager to the Schemes of HSBC Mutual Fund
(iii) The Hong Kong and Shanghai Banking Corporation Limited Associate of the Investment Manager (iv) HSBC Software Development India Private Limited Associate Company (v) Schemes of the Fund, Under Common Control of the Sponsor
HSBC Advantage India Fund HSBC Cash Fund HSBC Dynamic Fund HSBC Emerging Market Fund HSBC Equity Fund HSBC Fixed Term Series 21 upto April 02, 2008 HSBC Fixed Term Series 22 upto April 22, 2008 HSBC Fixed Term Series 23 upto April 02, 2008 HSBC Fixed Term Series 24 upto December 15, 2008 HSBC Fixed Term Series 25 upto April 23, 2008 HSBC Fixed Term Series 27 upto April 02, 2008 HSBC Fixed Term Series 28 upto May 26, 2008 HSBC Fixed Term Series 30 HSBC Fixed Term Series 32 upto July 10, 2008 HSBC Fixed Term Series 33 upto September 08, 2008 HSBC Fixed Term Series 35 upto September 18, 2008 HSBC Fixed Term Series 36 upto October 07, 2008 HSBC Fixed Term Series 37 upto October 22, 2008 HSBC Fixed Term Series 41 HSBC Fixed Term Series 42 HSBC Fixed Term Series 44 HSBC Fixed Term Series 45 HSBC Fixed Term Series 46 HSBC Fixed Term Series 47 upto June 26, 2008 HSBC Fixed Term Series 48 with effect from March 28, 2008 upto October 07, 2008 HSBC Fixed Term Series 49 HSBC Fixed Term Series 50 with effect from April 17, 2008 HSBC Fixed Term Series 51 with effect from April 23, 2008 upto October 23, 2008 HSBC Fixed Term Series 52 with effect from April 24, 2008 HSBC Fixed Term Series 53 with effect from May 23, 2008 HSBC Fixed Term Series 54 with effect from May 27, 2008 HSBC Fixed Term Series 55 with effect from June 26, 2008 upto December 29, 2008 HSBC Fixed Term Series 56 with effect from July 25, 2008 HSBC Fixed Term Series 57 with effect from August 13, 2008 HSBC Fixed Term Series 58 with effect from July 22, 2008 upto November 05, 2008 HSBC Fixed Term Series 59 with effect from July 07, 2008 HSBC Fixed Term Series 60 with effect from July 10, 2008 upto October 13, 2008 HSBC Fixed Term Series 61 with effect from July 17, 2008 HSBC Fixed Term Series 62 with effect from August 22, 2008 HSBC Fixed Term Series 63 with effect from September 04, 2008 HSBC Fixed Term Series 66 with effect from September 18, 2008 HSBC Fixed Term Series 68 with effect from October 06, 2008 to January 14, 2009 HSBC Floating Rate Fund Long Term Plan HSBC Floating Rate Fund Short Term Plan
HSBC MUTUAL FUND - HSBC FLEXI DEBT FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
HSBC Gilt Fund (Formerly, HSBC Gilt Fund – Short Term Plan) HSBC Income Fund Investment Plan HSBC Income Fund Short Term Plan HSBC India Opportunities Fund HSBC Interval Fund - Plan I upto November 20, 2008 HSBC Interval Fund - Plan II upto December 10, 2008 HSBC Interval Fund - Plan III upto December 17, 2008 HSBC Ultra Short Term Bond Fund (Formerly , HSBC Liquid Plus Fund) HSBC Midcap Fund HSBC MIP Fund Regular Plan HSBC MIP Fund Savings Plan HSBC Small Cap Fund HSBC Tax Saver Equity Fund HSBC Unique Opportunities Fund
(vi) Key Management Personnel and their relatives:
Nelum Pahlaj Gidwani – Associate Trustee Naina Lal Kidwai – Chairman of the Investment Manager Vikramaditya – Director and the Chief Executive Officer of the Investment Manager with effect from July 16, 2008 Dr. Rudolf Apenbrink – Associate Tustee Ayaz Ebrahim – Director with effect from April 11, 2008 Sanjay Prakash – Director and the Chief Executive Officer upto July 16, 2008 Avan Nelum Gidwani* – Relative of a Key Management Personnel Rashid K Kidwai* – Relative of a Key Management Personnel Rumaan Kidwai* – Relative of a Key Management Personnel Kemaya Lal Kidwai* – Relative of a Key Management Personnel Amrita Vikramaaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Raaghav Aaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Rhea Aaditya*– Relative of a Key Management Personnel with effect from July 16, 2008 Gabriele A Apenbrink*– Relative of a Key Management Personnel Christian R Apenbrink* – Relative of a Key Management Personnel Katharina S Apenbrink* – Relative of a Key Management Personnel Yasmin Ebrahim* – Relative of a Key Management Personnel with effect from April 11, 2008 Daanyal Ebrahim* – Relative of a Key Management Personnel with effect from April 11, 2008 Nilufer Prakash* – Relative of a Key Management Personnel upto July 16, 2008 Tara Prakash* – Relative of a Key Management Personnel upto July 16, 2008 Anahita Prakash* – Relative of a Key Management Personnel upto July 16, 2008 * There were no transactions during the year.
II The following transactions occurred with the related parties during the year in the ordinary course of
business: Refer Annexure I
III During the year, The Hong Kong and Shanghai Banking Corporation Limited, an associate entity of HSBC
Asset Management (India) Private Limited was paid brokerage amounting to Rs. 3,796,113 for procuring unit
subscriptions for the Scheme. The brokerage paid was at rates similar to those offered to other distributors.
Further, The Hong Kong and Shanghai Banking Corporation Limited, an associate of the Sponsor, is on the
panel of bankers with whom HSBC Mutual Fund places money on fixed deposits and enters into reverse repo
transactions from time to time at competitive rates.
HSBC MUTUAL FUND - HSBC FLEXI DEBT FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
12 Disclosure under Regulation 25(11) of the Securities and Exchange Board of India (Mutual Funds)
Regulations, 1996 as amended
HSBC Mutual Fund has made investments in companies, which holds/ has held units in excess of 5% of the net asset value of any Scheme of HSBC Mutual Fund which have been listed in Annexure II.
The investments comprise equity shares, debentures/ bonds, commercial paper, fixed deposits and other debt instruments and were made solely on the basis of sound fundamentals of these companies.
13 Prior Period’s Figures
Previous period’s figures which are for the period October 03, 2007 to March 31, 2008 have been re-grouped /re-arranged where appropriate. Signatures to the Schedules 1 to 7 forming part of the Balance Sheet and the Revenue Account
PARTHA GHOSH Partner Membership No. F-55913 For and on behalf of PRICE WATERHOUSE Chartered Accountants
For Board of Trustees of HSBC Mutual Fund
For HSBC Asset Management (India) Private Limited
Trustee
Vikramaaditya Director and Chief Executive Officer
Trustee
Director
Place: Mumbai Date :
Fund Manager(s)
Auditors' Report To the Board of Trustees of HSBC MUTUAL FUND 1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Floating Rate Fund ("The Scheme")
as at March 31, 2009, the related Revenue Account for the year ended on that date and the cash Flow Statement for HSBC Floating Rate Fund Long Term Plan for the year ended on that date, which we have signed under reference to this report. These financial statements are the responsibility of the Board of Trustees of HSBC Mutual Fund and the Management of HSBC Asset Management (India) 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. Our procedures included confirmation of securities owned and unit capital balances as at March 31, 2009 by correspondence with the custodian/others and registrar and transfer agent respectively. 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, the Revenue Account and the Cash Flow Statement 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,
(i) 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 also give respectively, a true and fair view of the state of affairs of HSBC Mutual Fund – HSBC Floating Rate Fund as at March 31, 2009, its net surplus and cash flow of HSBC Floating Rate Fund Long Term Plan for the year ended on that date.
(ii) The Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended on that date, together with the notes thereon have been prepared in all material respects 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.
(iii) The method used to value: (a) non traded debt securities in accordance with the guidelines for valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India and (b) privately placed debt securities in good faith as at March 31, 2009 as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund are fair and reasonable.
PARTHA GHOSH Partner Membership No. F-55913 For and on behalf of PRICE WATERHOUSE Chartered Accountants Place: Mumbai Date: July 22, 2009
Year ended March 31, 2009
Rupees
A. Cashflow from Operating ActivitiesNet Realised Gains for the Year 223,587,251
Adjustments for:- (Increase)/Decrease in Investments at Cost (3,706,614,121) (Increase)/Decrease in Other Current Assets (6,588,797) Increase/(Decrease) in Current Liabilities 3,615,096
Net cash (used in) Operations ( A ) (3,486,000,571)
B Cashflow from Financing Activities Increase/(Decrease) in Unit Capital 3,295,936,922 Increase/(Decrease) in Unit Premium 507,539,692
Adjustments for:- Increase/(Decrease) in Sundry Creditors for Units Redeemed by Investors 1,041,943 (Increase)/Decrease in Sundry Debtors for Units Issued to Investors (1,068,864)
Dividend / Distribution paid during the year (149,342,433) Dividend / Distribution Tax paid during the year (29,966,630)
Net cash generated from financing activities ( B ) 3,624,140,630
Net Increase/(Decrease) in Cash and Cash Equivalents (A+B) 138,140,059
Cash and Cash Equivalents at the beginning of the year 16,957,962 Cash and Cash Equivalents at the end of the year 155,098,021
Notes :
March 31, 2009Rupees
1 Cash and Cash Equivalents include the following :
Balances with Banks : - In Current Account 542,660 - In Dividend Account 42,877 Margin Deposit with the Clearing Corporation of India Towards Collateralised Borrowing and Lending Obligation 2,510,000 Temporary Book Overdraft (110) Other Collateralised LendingReverse Repo 74,283,717 Collateralised Borrowing and Lending Obligation 77,718,877
155,098,021
2 The above Cash Flow Statement has been prepared under the "Indirect Method" set out in AccountingStandard - 3 on Cash Flow Statements, issued by The Institute of Chartered Accountants of India.
3 This is the first year of applicability of Accounting Standard 3 on 'Cash Flow Statement' to the Scheme.
This is the Cash Flow Statement referred to in our report of even date.
PARTHA GHOSH For Board of Trustees of For HSBC Asset Management (India)Partner HSBC Mutual Fund Private Limited
Membership No. F-55913
For and on behalf of
PRICE WATERHOUSE
Chartered Accountants
Vikramaaditya
Trustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai Date : July 22, 2009 Fund Manager(s)
HSBC MUTUAL FUND - HSBC FLOATING RATE FUND LONG TERM PLAN
Cash Flow Statement for the year ended March 31, 2009
0
March 31, 2009 March 31, 2008Schedule Rupees Rupees
ASSETS
Investments 1 4,719,906,538 677,788,896
Deposits 2 2,510,000 2,510,000
Other Current Assets 3 161,551,579 15,753,749
TOTAL 4,883,968,117 696,052,645
LIABILITIES
Unit Capital 4 3,916,019,949 620,083,027
Reserves and Surplus 5 628,412,683 74,331,931
Current Liabilities and Provisions 6 339,535,485 1,637,688
TOTAL 4,883,968,117 696,052,645
RECONCILIATION OF NET ASSET VALUE PER UNIT
Growth Sub Option
Monthly Dividend Sub Option
Daily Dividend Sub Option
Weekly Dividend Sub Option Total Growth Sub Option
Weekly DividendSub Option
Fortnightly Dividend Sub Option
Monthly Dividend Sub Option
Institutional Daily Dividend Sub Option Total Total
Growth Sub Option
Daily DividendSub Option
Weekly DividendSub Option Total Su
Net Assets as per Balance Sheet(Total Assets less Current Liabilities and Provisions ) (Note 2.6) 99,953,268 431,643,699 47,243,892 58,737,752 637,578,611 1,215,972,561 2,447,687,110 5,575,792 111,778,767 125,839,791 3,906,854,021 4,544,432,632 106,504,887 258,499,809 269,557,042 634,561,738 1,3
(93,348,717) (163,834,255) (257,182,972) (212,967,017) (104,286,667) (8,844,798) (111,133,504) (437,231,986) (694,414,958) (140,590,665) (466,127,174) (213,469,349) (820,187,188) (32,0
Number of Units in Issue 7,361,353.037 43,136,652.841 4,719,009.792 5,869,893.642 88,532,331.128 217,865,967.972 545,333.900 11,109,646.396 12,461,806.332 7,967,470.081 25,849,979.215 26,900,500.774 97,05
(7,471,705.625) (16,372,183.719) (16,920,635.005) (9,287,147.224) (881,553.972) (11,075,077.247) (11,316,444.277) (46,612,712.234) (21,330,117.806) (2,558,8
Net Asset Value per Unit 13.5781 10.0064 10.0114 10.0066 13.7348 11.2348 10.2245 10.0614 10.0980 13.3675 10.0000 10.0205 13
(12.4936) (10.0069) (12.5862) (11.2291) (10.0332) (10.0346) (12.4236) (10.0000) (10.0079) (12
Notes to the Financial Statements. 8
PARTHA GHOSH For Board of Trustees of Partner HSBC Mutual FundMembership No. F-55913For and on behalf of PRICE WATERHOUSE Chartered Accountants
Trustee
Trustee
Place: Mumbai Date : 22 July 2009
Long Term Plan
Long Term Plan
March 31, 2009(March 31, 2008)
This is the Balance Sheet referred to in our report of even date.
The schedules referred to herein form an integral part of the Financial Statements.
Regular Option
HSBC MUTUAL FUND - HSBC FLOATING RATE FUND
Regular OptionInstitutional OptionRupees
Balance Sheet as at March 31, 2009
1
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
April 01, 2008 to March 31, 2009
A
Schedule Rupees Rupees Rupees
INCOME AND GAINS
Interest and Discount 7 222,375,584 95,560,192 109,107,654 Net Profit on Sale of Investments 16,175,615 2,630,232 1,231,489
(Including Net Profit on Inter Scheme Sale of Investment Rs. 589,092 (Previous year: Rs. 225,518)and Rs. 1,207,840 (Previous year: Rs. 506,151) for Long Term Plan and Short Term Planrespectively) (Note 2.4)
Miscellaneous Income (73,429) - (615)
TOTAL 238,477,770 98,190,424 110,338,528
EXPENSES AND LOSSES
Investment Management and Advisory Fees (Note 3) 8,065,890 3,416,630 4,244,575
Transfer Agent Fees and Expenses 1,692,031 528,228 620,322
Trusteeship Fees and Expenses (Note 4) 11,376 2,421 5,524
Custodian Fees and Expenses (Note 5) 454,531 230,860 153,208
Audit Fees 25,000 25,000 150,000
Selling and Distribution Expenses 5,497,649 2,877,869 2,629,838
Other Operating Expenses 207,324 82,013 167,657
TOTAL 15,953,801 7,163,021 7,971,124
Less: Expenses to be Reimbursed by the Investment Manager 1,063,282 454,630 -
TOTAL 14,890,519 6,708,391 7,971,124
Net Realised Gains for the Year 223,587,251 91,482,033 102,367,404
Net Change in Unrealised Depreciation in Value of Investments (642,490) (21,310) -
Net Gains for the Year 222,944,761 91,460,723 102,367,404
Net Change in Unrealised Appreciation in Value of Investments 2,905,361 (547,920) -
Net Surplus including Net change in Unrealised Appreciation/Depreciation in Value of Investments
225,850,122 90,912,803 102,367,404
Transferred to Unrealised Appreciation Reserve (2,905,361) 547,920 -
Net Surplus for the Year 222,944,761 91,460,723 102,367,404
Long Term Plan Short Te
April 01, 2008 to March 31, 2009
April 01,March 31
(April 01, 2007 to March 31, 2008)
(April 01March 31
Rupees
Net Surplus for the Year 192,235,462 222,944,761 23,107,124
(60,389,375) (91,460,723) (76,095,122)
Transfer from Income Equalisation Reserve (Note 2.8) 245,651,884 245,075,183 (4,538,285)
(1,633,515) (-8,941,156) (-17,768,401)
- - -
Transfer from Reserve Fund 613,294 2,312,954 1,755,274
(1,765,079) (3,197,470) (2,004,710)
Dividend / Distribution (129,949,311) (149,342,433) (12,086,049)
(-24,047,930) (-40,542,347) (-42,628,427)
Dividend / Distribution Tax thereon (27,005,711) (29,966,630) (3,423,373)
(-5,275,392) (-7,819,384) (-12,074,502)
Balance Transferred to Reserve Fund 281,545,617 291,023,835 4,814,690
(34,464,647) (37,355,306) (5,628,502)
Notes to the Financial Statements. 8
The schedules referred to herein form an integral part of the Revenue Account
This is the Revenue Account referred to in our report of even date.
PARTHA GHOSH For Board of Trustees of For HSBC Asset Management (India)Partner HSBC Mutual Fund Private LimitedMembership No. F-55913For and on behalf of
HSBC MUTUAL FUND - HSBC FLOATING RATE FUND
Revenue Account for the year ended March 31, 2009
Long Term Plan Short Term Plan
RupeesRupees
2
SCHEDULE 1Investments (Notes 2.2, 2.4, 7, 8, 9, and 12) Market/Fair Value Cost Market/Fair Value Cost
Rupees Rupees Rupees Rupees
(Refer to the attached Statement of Portfolio Holding as at March 31, 2009)
Non Convertible Debentures and Bonds Listed / Awaiting Listing 53,285,900 53,949,700 - -
Privately Placed Non Convertible Debentures / Bonds 34,816,277 33,979,200 - -
Asset Backed Securities 133,157,343 131,089,059 149,797,118 149,818,428
Commercial Paper / Certificate of Deposit 4,498,647,018 4,498,647,018 527,991,778 527,991,778
TOTAL 4,719,906,538 4,717,664,977 677,788,896 677,810,206
SCHEDULE 2Deposits March 31, 2009 March 31, 2008
Rupees Rupees
Margin Deposit with Clearing Corporation of India Limited towards Collateralised Borrowing and Lending Obligation 2,510,000 2,510,000
TOTAL 2,510,000 2,510,000
SCHEDULE 3Other Current Assets March 31, 2009 March 31, 2008
Rupees Rupees
Balance with Banks- in Current Account 542,660 1,504,026 - in Dividend Account 42,877 42,721
Reverse Repos 74,283,717 12,901,215
Collateralised Borrowing and Lending Obligation 77,718,877 -
Unit Subscription Receivable 235,000 500,000
Inter-Scheme Receivable - For 'Switch In' 1,337,662 3,798 - For 'Others' 3,000 -
Interest Receivable on :
- Debentures and Bonds 5,816,192 -
- Asset Backed Securities - 344,518
- Reverse Repos 9,559 -
- Collateralised Borrowing and Lending Obligation 9,521 2,841
- Margin Deposit for Repo and Government of India Securities 481,480 - - Margin Deposit with Clearing Corporation of India Limited towards Collateralised Borrowing and Lending Obligation 7,118 -
Receivable from Investment Manager 1,063,916 454,630
Miscellaneous Receivables - - TOTAL 161,551,579 15,753,749
Long Term Plan
Long Term Plan
HSBC MUTUAL FUND - HSBC FLOATING RATE FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March
Long Term Plan March 31, 2009 March 31, 2008
3
SCHEDULE 4Unit Capital March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008 March 31, 2009 March 31, 2009
Rupees Units Rupees Units Rupees Units
Regular Option
Growth Sub Option
Issued and Subscribed :Units of Rs. 10 each fully paid up 90,733,362 9,073,336.230 90,733,362 9,073,336.230 309,034,416 30,903,441.632
Outstanding:
At the beginning of the year/ period 74,717,056 7,471,705.625 119,799,725 11,979,972.490 113,164,442 11,316,444.277 Issued during the period / year 146,833,860 14,683,385.964 120,202,747 12,020,274.704 205,626,874 20,562,687.385
221,550,916 22,155,091.589 240,002,472 24,000,247.194 318,791,316 31,879,131.662 Redeemed during the period / year 147,937,386 14,793,738.552 165,285,416 16,528,541.569 239,116,616 23,911,661.581 At the end of the period / year 73,613,530 7,361,353.037 74,717,056 7,471,705.625 79,674,700 7,967,470.081
Daily Dividend Sub Option
Issued and Subscribed :Units of Rs. 10 each fully paid up - - - - 629,390,645 62,939,064.483
Outstanding:
At the beginning of the period / year - - - - 466,127,122 46,612,712.234 Issued during the period / year 135,748,548 13,574,854.752 - - 575,644,523 57,564,452.273
135,748,548 13,574,854.752 - - 1,041,771,645 104,177,164.507 Redeemed during the period / year 88,558,450 8,855,844.960 - - 783,271,853 78,327,185.292 At the end of the period / year 47,190,098 4,719,009.792 - - 258,499,792 25,849,979.215
Monthly Dividend Sub Option
Issued and Subscribed :Units of Rs. 10 each fully paid up 300,945,647 30,094,564.714 300,945,647 30,094,564.714 - -
Outstanding:
At the beginning of the year 163,721,838 16,372,183.719 272,611,281 27,261,128.013 - - Issued during the year 458,485,585 45,848,558.548 394,174,795 39,417,479.522 - -
622,207,423 62,220,742.267 666,786,076 66,678,607.535 - - Redeemed during the year 190,840,894 19,084,089.426 503,064,238 50,306,423.816 - - At the end of the year 431,366,529 43,136,652.841 163,721,838 16,372,183.719 - -
Weekly Dividend Sub Option
Issued and Subscribed :Units of Rs. 10 each fully paid up - - - - 5,240,627 524,062.745
Outstanding:
At the beginning of the period / year - - - - 213,301,177 21,330,117.806 Issued during the period / year 58,799,125 5,879,912.477 - - 452,962,454 45,296,245.444
58,799,125 5,879,912.477 - - 666,263,631 66,626,363.250 Redeemed during the period / year 100,188 10,018.835 - - 397,258,625 39,725,862.476 At the end of the period / year 58,698,937 5,869,893.642 - - 269,005,006 26,900,500.774
Institutional Option
Growth Sub Option
Issued and Subscribed :Units of Rs. 10 each fully paid up 722,808,862 72,280,886.195 722,808,862 72,280,886.195 2,848,706,983 284,870,698.304
Outstanding:
At the beginning of the year 169,206,349 16,920,635.005 33,947,595 3,394,759.592 25,588,194 2,558,819.389 Issued during the year 4,596,579,832 459,657,983.206 2,477,594,979 247,759,497.924 229,314,588 22,931,458.891
4,765,786,181 476,578,618.211 2,511,542,574 251,154,257.516 254,902,782 25,490,278.280 Redeemed during the year 3,880,462,871 388,046,287.083 2,342,336,225 234,233,622.511 253,932,228 25,393,222.835 At the end of the year 885,323,310 88,532,331.128 169,206,349 16,920,635.005 970,554 97,055.445
Daily Dividend Sub Option
Issued and Subscribed :Units of Rs. 10 each fully paid up - - - - 710,530,691 71,053,069.065
Outstanding:
At the beginning of the period / year - - - - 38,299,510 3,829,950.745 Issued during the period / year 11,132,384,271 1,113,238,427.088 - - 310,519,445 31,051,944.545
11,132,384,271 1,113,238,427.088 - - 348,818,955 34,881,895.290 Redeemed during the period / year 11,007,766,208 1,100,776,620.756 - - 279,869,194 27,986,919.437 At the end of the period / year 124,618,063 12,461,806.332 - - 68,949,761 6,894,975.853
Weekly Dividend Sub Option
Issued and Subscribed:Units of Rs. 10 each fully paid up 153,001,670 15,300,166.976 153,001,670 15,300,166.976 737,101,461 73,710,146.095
Outstanding:
At the beginning of the year 92,871,473 9,287,147.224 5,811,952 581,195.178 100,115,188 10,011,518.785 Issued during the year 6,826,364,842 682,636,484.183 1,002,715,366 100,271,536.552 37,334,947 3,733,494.717
6,919,236,315 691,923,631.407 1,008,527,318 100,852,731.730 137,450,135 13,745,013.502 Redeemed during the year 4,740,576,634 474,057,663.435 915,655,845 91,565,584.506 103,040,181 10,304,018.067 At the end of the year 2,178,659,681 217,865,967.972 92,871,473 9,287,147.224 34,409,954 3,440,995.435
Monthly Dividend Sub Option
Issued and Subscribed :Units of Rs. 10 each fully paid up 82,500,000 8,250,000.000 82,500,000 8,250,000.000 272,425,380 27,242,537.996
Outstanding:
At the beginning of the year 110,750,772 11,075,077.247 149,242,170 14,924,217.043 40,943,653 4,094,365.416
HSBC MUTUAL FUND - HSBC FLOATING RATE FUNDSchedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
Long Term Plan Short Term
4
HSBC MUTUAL FUND - HSBC FLOATING RATE FUNDSchedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
4
Institutional Plus Option
Growth Sub Option
Issued and Subscribed :Units of Rs. 10 each fully paid up - - - - 472,171,231 47,217,123.087
Outstanding:
At the beginning of the year - - - - 64,003,470 6,400,346.993 Issued during the year - - - - 1,177,175,725 117,717,572.514
- - - - 1,241,179,195 124,117,919.507 Redeemed during the year - - - - 1,191,305,873 119,130,587.323 At the end of the year - - - - 49,873,322 4,987,332.184
Daily Dividend Sub Option
Issued and Subscribed :Units of Rs. 10 each fully paid up - - - - 440,058,353 44,005,835.313
Outstanding:
At the beginning of the year - - - - 119,184,385 11,918,438.460 Issued during the year - - - - 4,744,780,924 474,478,092.435
- - - - 4,863,965,309 486,396,530.895 Redeemed during the year - - - - 4,863,965,309 486,396,530.895 At the end of the year - - - - - -
Monthly Dividend Sub Option
Issued and Subscribed :Units of Rs. 10 each fully paid up - - - - 103,234,867 10,323,486.737
Outstanding:
At the beginning of the year - - - - - - Issued during the year - - - - - -
- - - - - - Redeemed during the year - - - - - - At the end of the year - - - - - -
Weekly Dividend Sub Option
Issued and Subscribed :Units of Rs. 10 each fully paid up - - - - - -
Outstanding:
At the beginning of the year - - - - 179,205,139 17,920,513.941 Issued during the year - - - - 5,310,436 531,043.585
- - - - 184,515,575 18,451,557.526 Redeemed during the year - - - - 148,710,103 14,871,010.335 At the end of the year - - - - 35,805,472 3,580,547.191
TOTAL 3,916,019,949 391,601,995.040 620,083,027 62,008,302.792 840,583,520 84,058,352.231
Note : HSBC Asset Management (India) Private Limited, the investment manager holds 1,032,306.247 units in the Long Term Plan - Institutional Option - Daily Dividend Sub Option and 545,333.91 units
(Previous Year : 515,731.786 units) in the Long Term Plan - Institutional Option - Fortnightly Dividend Sub Option and 4,987,332.176 units (Previous Year : 4,987,332.176 units) in the Short Term Plan - Institutional Plus Option - Growth Sub Option as a
Reserve Fund
At the beginning of the year 45,430,989 64,509,949 4,452,
(12,940,966) (30,900,031) (1,001,9
Transferred to Revenue Account (613,294) (2,312,954) (1,755,2
(-1,765,079) (-3,197,470) (-2,004,7
Transferred to Unrealised Appreciation Reserve - -
(-209,547) (-547,920) (-173,2
Balance Transferred from Revenue Account 281,545,617 291,023,835 4,814,
(34,464,648) (37,355,306) (5,628,5
At the end of the year 326,363,312 353,220,830 7,511,
(45,430,988) (64,509,947) (4,452,4
TOTAL 601,703,164 628,412,683 * 7,411, (74,331,931) * (4,443,8
* The share of the Plans / Options of the Reserves and Surplus is as follows : March 31, 2009(March 31, 2008)
Regular OptionGrowth Sub Option 26,339,738
(18,631,661)Monthly Dividend Sub Option 277,170
(112,417)Daily Dividend Sub Option 53,794
(-)Weekly Dividend Sub Option 38,815
(-)Total (A) 26,709,517
(18,744,078)Institutional OptionGrowth Sub Option 330,649,251
(43,760,668)Weekly Dividend Sub Option 269,027,429
(11,415,194)Fortnightly Dividend Sub Option 122,454
(29,259)Monthly Dividend Sub Option 682,304
(382,732)Daily Dividend Sub Option 1,221,728
0 Total (B) 601,703,166
(55,587,853)Institutional Plus OptionGrowth Sub Option -
- Daily Dividend Sub Option -
- Weekly Dividend Sub Option -
- Monthly Dividend Sub Option -
- Total (C) -
-
Total (A+B+C) 628,412,683
(74,331,931)
SCHEDULE 6Current Liabilities and Provisions March 31, 2009 March 31, 2008 March 31, 20
Rupees Rupees RupeesCurrent Liabilities
Investment Management and Advisory Fees 2,236,155 282,624 690,8
Transfer Agent Fees and Expenses 294,562 45,354 37,5
Custodian Fees and Expenses 150,334 35,912 3
Audit Fees 25,000 25,000 150,0
Selling and Distribution Expenses 1,421,429 230,348 213,3
Purchase Contracts Awaiting Completion - Certificate of Deposits 333,240,650 -
Unit Redemption Payable 1,195,327 113,543
Units Pending Allotment - - 2,775,0
Inter Scheme Payable :
- for Switch-Out - 39,842 449,9
- for Others 29,604 -
Dividend Payable 688,205 472,800
Unclaimed Dividend (Note 15) 41,564 41,585
Temporary Book Overdraft 110 -
Dividend Distribution Tax Payable to be reclassed 14,170 16,8
Sundry Payables 198,375 350,679 148,9
TOTAL 339,535,485 1,637,688 4,482,8
S Long Term Plan
SCHEDULE 7Interest and Discount (Note 2.5) April 01, 2008 to
March 31, 2009April 01, 2007 toMarch 31, 2008
Rupees Rupees
Debentures / Bonds 38,028,954 12,678,634
Asset Backed Securities 17,184,293 5,899,841
Commercial Paper / Certificate of Deposit 137,169,085 74,008,620
Deposits - 38,323
Reverse Repos 19,885,138 2,507,705
Collateralised Borrowing and Lending Obligation 9,594,510 383,457
Margin Deposit with The Clearing Corporation of India Limited 513,604 43,612
TOTAL 222,375,584 95,560,192
HSBC MUTUAL FUND - HSBC FLOATING RATE FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ende
Long Term Plan
6
( , , )
Commercial Papers/Certificate of Deposits (95.31 %)Certificate of Deposits (99.56 %)
Allahabad Bank $ @ 4 Oriental Bank of Commerce $ 2 State Bank of Indore $ @ 2 Punjab National Bank $ 2 Union Bank of India $ 2 Bank of Baroda $ @ 2 Oriental Bank of Commerce $ 2 Allahabad Bank $ @ 2 Bank of India $ @ 2 Vijaya Bank $ 2 Canara Bank $ 2 State Bank of Bikaner and Jaipur $ @ 2 National Housing Bank Limited $ 2 Canara Bank $ 2 Canara Bank $ 1 Allahabad Bank $ @ 1 IDBI Bank Limited $ @ 1 Corporation Bank $ @ 1 Punjab National Bank $ 1 IDBI Bank Limited $ @ 1 Punjab National Bank $ Bank of Baroda $ @ Oriental Bank of Commerce $ Oriental Bank of Commerce $ Allahabad Bank $ @ State Bank of Indore $ @ IDBI Bank Limited $ @ State Bank of Bikaner and Jaipur $ @
Commercial Papers (0.44 %)Exim Bank Limited 2009 $ @
Total (Cost Rs. 4,498,647,018)TOTAL INVESTMENTS (Cost Rs. 4,717,664,977)
@ Investment in companies which have invested more than five percent of the net asset value of any schemes of HSBC Mutual F
$ Fair value of non traded and thinly traded debt securities as determined by HSBC Asset Management (India) Private Limited undBoard of Trustees in accordance with the guidelines for valuation of securities for Mutual funds dated September 18, 2000applicable, issued by the Securities and Exchange Board of India.
* Fair value of privately placed securities as determined in good faith by HSBC Asset Management (India) Private Limited undeBoard of Trustees.
Confirmation has been received from JP Morgan Chase Bank, Mumbai Branch at the end of the financial year for the investments
HSBC MUTUAL FUND - HSBC FLOATING RATE FUND - LONG TERM PLAN
Schedules forming part of the Balance Sheet as at March 31, 2009 and theRevenue Account for the year ended March 31, 2009.
Annexure 1
(i) Transactions during the Year
Nature of Transaction Sponsor Investment Manager
Associate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Purchase of Investments - - - 7,807,574,255 - 7,807,574,255 Previous Year - - - 3,295,514,667 - 3,295,514,667
Sale of Investments - - - 5,736,528,123 - 5,736,528,123 Previous Year - - - 2,831,557,349 - 2,831,557,349
Subscription of Units (including switch in and dividendreinvestment) - 10,620,606 331,667,878 - 18,848,546 361,137,030 Previous Year - 6,428,611 - - - 6,428,611
Redemption of Units (including switch out) - - 100,000,000 - 5,414,442 105,414,442 Previous Year - 113,780,922 - - - 113,780,922
Dividend Distribution (Including dividend reinvested) - - 5,519,120 - 138,546 5,657,666 Previous Year - 1,428,611 - - - 1,428,611
Investment Management and Advisory Fees - 8,065,890 - - - 8,065,890 Previous Year - 3,416,630 - - - 3,416,630
Brokerage/ Commission on Distribution of Units - - 955,380 - - 955,380 Previous Year - - 906,455 - - 906,455
Reimbursement of Expenses - 1,063,282 - - - 1,063,282 Previous Year - 454,630 - - - 454,630
Charges for Services Provided by Bank - - 12 - - 12 Previous Year - - 2,028 - - 2,028
(ii) Outstanding As At Year End
Nature of Transaction Sponsor Investment Manager
Associate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Investment Management and Advisory Fees Payable - 2,236,155 - - - 2,236,155 Previous Year - 282,624 - - - 282,624
Brokerage/ Commission Payable for Distribution of Units - - 357,500 - - 357,500 Previous Year - - 38,912 - - 38,912
Units Outstanding As At Year End - 15,999,995 231,479,342 - 13,385,946 260,865,283 Previous Year - 5,174,440 - - - 5,174,440
Other Payables - - - 29,604 - 29,604 Previous Year - - - 3,643 - 3,643
Other Receivables - 1,063,917 - 3,000 - 1,066,917 Previous Year - 454,630 - - - 454,630
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control ofthe Sponsor.
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Purchase of InvestmentsHSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 3,343,392,374 785,037,921 HSBC Cash Fund 2,883,366,678 1,023,240,446 HSBC Floating Rate Fund Short Term Plan 9,380,689 1,016,149,617 HSBC Income Fund Short Term Plan - 62,951,413
Sale of InvestmentsHSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 2,045,579,782 738,104,064 HSBC Cash Fund 814,371,527 928,421,790 HSBC Floating Rate Fund Short Term Plan 135,287,342 645,167,219
0
HSBC MUTUAL FUND - HSBC FLOATING RATE FUND - LONG TERM PLAN
Schedules forming part of the Balance Sheet as at March 31, 2009 and theRevenue Account for the year ended March 31, 2009.
Other PayablesHSBC Equity Fund 29,604 - HSBC Cash Fund - 3,643
Other ReceivablesHSBC Cash Fund 3,000 - HSBC Floating Rate Fund Short Term Plan - 40,000
(iv) Disclosures in respect of material transactions with persons referred to in Note 13 (I)(v) for key management personneland their relatives
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Subscription of Units (including switch in and dividendreinvestment)Naina Lal Kidwai 15,617,440 -
Redemption of Units (including switch out)Naina Lal Kidwai 3,900,000 - Rashid K Kidwai 1,514,442
Dividend Distribution (Including dividend reinvested)Naina Lal Kidwai 117,440 - Kemaya Lall Kidwai 13,745 - Nelum Pahlaj Gidwani 7,361 -
Units Outstanding As At Year EndNaina Lal Kidwai 11,679,349 - Kemaya Lall Kidwai 1,706,569 -
HSBC MUTUAL FUND - HSBC FLOATING RATE FUND - SHORT TERM PLAN
Schedules forming part of the Balance Sheet as at March 31, 2009 and theRevenue Account for the year ended March 31, 2009.
Annexure 1
(i) Transactions during the Year
Nature of Transaction Sponsor Investment Manager
Associate of Investment Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Purchase of Investments - - - 1,047,328,212 - 1,047,328,212 Previous Year - - - 6,521,060,663 - 6,521,060,663
Sale of Investments - - - 1,145,088,238 - 1,145,088,238 Previous Year - - - 7,699,756,464 - 7,699,756,464
Subscription of Units (including switch in and dividend reinvestment) - - - - 286,373 286,373 Previous Year - 50,950,606 - - 23,851 50,974,456
Redemption of Units (including switch out - - - - 431,752 431,752 Previous Year - 57,399,003 - - 853,485 58,252,487
Dividend Distribution (Including dividend reinvested - - - - 6,373 6,373 Previous Year - 950,606 - - 23,851 974,456
Investment Management and Advisory Fees - 4,244,575 - - - 4,244,575 Previous Year - 7,634,923 - - - 7,634,923
Brokerage/ Commission on Distribution of Units - - 1,557,875 - - 1,557,875 Previous Year - - 2,395,738 - - 2,395,738
Charges for Services Provided by Bank - - 1,385 - - 1,385 Previous Year - - 5,324 - - 5,324
(ii) Outstanding As At Year End
Nature of Transaction Sponsor Investment Manager
Associate of Investment Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Investment Management and Advisory Fees Payabl - 690,888 - - - 690,888 Previous Year - 1,835,742 - - - 1,835,742
Brokerage/ Commission Payable for Distribution of Units - - 124,723 - - 124,723 Previous Year - - 130,463 - - 130,463
Units Outstanding As At Year End - 57,407,186 - - - 57,407,186 Previous Year - 52,956,491 - - 67,617 53,024,107
Other Receivables - 359 - - - 359 Previous Year - 48,316 - - - 48,316
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control ofthe Sponsor.
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Purchase of InvestmentsHSBC Cash Fund 394,510,683 2,869,950,426 HSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 214,414,582 1,969,774,505 HSBC Floating Rate Fund Long Term Plan 135,287,342 645,167,219 HSBC Flexi Debt Fund 162,191,422 -
Sale of InvestmentsHSBC Cash Fund 482,263,578 2,628,617,388 HSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 429,944,276 3,212,036,479 HSBC Dynamic Fund 119,425,372 - HSBC Floating Rate Fund Long Term Plan 9,380,689 1,016,149,617
(iv) Disclosures in respect of material transactions with persons referred to in Note 13 (I)(v) for key management personneland their relatives
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Subscription of Units (including switch in and dividend reinvestment)Sanjay Prakash - 1,800 Naina Lal Kidwai 196 22,051 Rashid K Kidwai 280,000 -
Redemption of Units (including switch outSanjay Prakash - 241,485 Naina Lal Kidwai 67,813 612,000 Rashid K Kidwai 363,939 -
Dividend Distribution( Including dividend reinvestedSanjay Prakash - 1,800 Naina Lal Kidwai 196 22,051 Rashid K Kidwai 6,177 -
Units Outstanding As At Year EndSanjay Prakash - - Naina Lal Kidwai - 67,617
1
HSBC MUTUAL FUND - HSBC FLOATING RATE FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
SCHEDULE 8
Notes to the Financial Statements
1 Organisation
HSBC Floating Rate Fund (the “Scheme”) is an open-ended income scheme of HSBC Mutual Fund (the “Fund”) and was launched on November 01, 2004. HSBC Mutual Fund has been sponsored by HSBC Securities and Capital Markets (India) Private Limited. HSBC Asset Management (India) Private Limited incorporated under the Companies Act, 1956 has been appointed as the asset management company. The duration of the Scheme is perpetual. The Scheme closed for initial subscription on November 8, 2004 and reopened for issue and redemption of units on November 17, 2004. The investment objective of the Scheme is to generate reasonable return with commensurate risk from a portfolio comprising of floating rate debt instruments, fixed rate debt instruments swapped for floating rate returns, fixed rate money market instruments and debt instruments. The Scheme has two Plans – Long Term Plan and Short Term Plan, each with a separate portfolio. Both the Long Term Plan and Short Term Plan offers Regular and Institutional Options. The Regular Option under both the plans offers Growth and Dividend Sub-Options - Monthly Dividend for Long Term Plan and Daily Dividend and Weekly Dividend for Short Term Plan. The Weekly Dividend Sub- Option under the Regular Option of the Short Term Plan was introduced during the year ended March 31, 2006 and units were allotted on April 19, 2005 at the net asset value of Rs. 10 per unit in accordance with the addendum dated April 8, 2005 to the common offer document dated November 29, 2004. The Institutional Option under both the Plans offer Growth, Weekly Dividend and Monthly Dividend Sub – Options. The Institutional Option under Short Term Plan further offers a Daily Dividend Sub-Option. Institutional Plus Option under Short Term Plan was introduced during the year ended March 31, 2006 offering Growth, Daily Dividend, Weekly Dividend and Monthly Dividend Sub-Options. Units were allotted on November 21, 2005 at the net asset value of Rs. 10 per unit under the Growth, Daily Dividend and Monthly Dividend Sub-Options in accordance with the addendum dated October 25, 2005 to the common offer document dated November 29, 2004. A fortnightly dividend sub option and Institutional Option of the Long Term Plan was launched during the year ended March 31, 2008 in accordance with the addendum dated September 18, 2007 to the common offer document dated November 29, 2004. In accordance with the addendum to the offer document dated August 29, 2008, Daily Dividend Reinvestment sub-options were introduced in the Regular and the Institutional option respectively in Long Term Plan. Further, In accordance with the addendum to the offer document dated February 12, 2009, Weekly Dividend Reinvestment sub-option was introduced in the Regular Option with effect from February 20, 2009 in Long Term Plan. The Scheme will not declare dividend under the Growth Sub-option of both the Plans in normal circumstances. The income earned on such units will remain invested within the Scheme and will be reflected in the net asset value of these Plans.
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 Portfolio Valuation
HSBC MUTUAL FUND - HSBC FLOATING RATE FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
Investments are stated at market/fair value at the Balance Sheet date/date of determination. In valuing the Scheme’s investments:
i. Debt securities listed on a recognised stock exchange are valued at the last quoted closing price on
the National Stock Exchange of India Limited. If no sale is reported at that time such securities are valued at fair value as determined in good faith by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund.
ii. Non-traded and thinly traded debt securities, are valued at fair value as determined by HSBC Asset
Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India (SEBI).
iii. Privately placed debt securities are valued at fair value as determined in good faith by HSBC Asset
Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund.
iv. Asset backed securities are valued at fair value as determined in good faith by HSBC Asset
Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund .
v. Traded money market securities are valued at the yield at which they are traded on the valuation date. If no sale is reported at that time, such security is valued at the last traded price plus accretion of the difference between the face value and the last traded price. Non traded money market instruments are valued at cost plus accrued interest.
vi. Instruments bought on ‘repo’ basis are valued at the resale price after deduction of applicable interest up to the date of resale.
Following the issue of guidance note on accounting for investments in the financial statements of the mutual funds by the Institute of Chartered Accountants of India (pursuant to the Eleventh Schedule of the Regulations) net unrealised appreciation / depreciation in the value of investments is determined separately for each category of investments. In respect of each category of investments, the net change in the unrealised appreciation if any, between two balance sheet dates / valuation dates is accounted through the Revenue Account and thereafter the net unrealised appreciation is transferred from the Revenue Account to the Unrealised Appreciation Reserve. The net depreciation if any, is accounted through the Revenue Account. Net unrealised appreciation is reduced from the distributable income at the time of income distribution.
The loss on investments sold/transferred during the year/period is charged to the Revenue Account instead of being first being adjusted against the provision for depreciation, if already created in the previous year/period as recommended in the Guidance Note. However the departure from the Guidance Note does not have any net impact on the net asset value of the options of the Scheme.
2.3 Interest Rate Swaps
HSBC MUTUAL FUND - HSBC FLOATING RATE FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
Interest expense and income are accrued on a net basis daily in respect of interest rate swaps with maturity less than 182 days.
2.4 Securities Transaction
Investment securities transactions are accounted for on a trade date basis. The Scheme uses the average cost method for determining the realized gain or loss on sale of investments.
2.5 Investment Income
Interest income is recorded on an accrual basis.
2.6 Net Asset Value for Growth / Dividend Sub-Options of Regular, Institutional and Institutional Plus
Options
The net asset value of the units of the Scheme is determined separately for units issued under the Growth and Dividend Sub-options of the Regular, Institutional and Institutional Plus Options for the Long Term Plan and Short Term Plan. For reporting the net asset value for the Sub-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 Sub-options in proportion to the value of the units outstanding.
2.7 Unit Premium Reserve
Upon issue and redemption of units, the net premium or discount to the face value of units is adjusted against the unit premium reserve of the Plans after an appropriate portion of the issue proceeds and redemption payout is credited or debited respectively to the income equalization reserve. The unit premium reserve is available for dividend distribution except to the extent it is represented by unrealized net appreciation in value of investments.
2.8 Income Equalization Reserve The net distributable income relating to units issued / repurchased is transferred to / from income equalization reserve for determining the net surplus / deficit, transferred from / to unit premium reserve.
2.9 Load Charges Load collected is retained under a separate account in the Scheme and is used to meet the selling and distribution expenses.
3 Investment Management and Advisory Fees
The Scheme has paid or provided for investment management and advisory fees payable to HSBC
Asset Management (India) Private Limited for managing the Scheme at an average annual rate of
HSBC MUTUAL FUND - HSBC FLOATING RATE FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
0.26% and 0.23% of the average daily net asset values of Reguler Plan and Institutional Plan
respectively of the Long Term Plan and 0.33%,0.33% and 0.27% of the average daily net asset value of
Regular, Institutional and Institutional Plus Plan respectively of the Short Term Plan respectively
recorded by the Scheme. All costs, charges and expenses incurred by HSBC Asset Management (India)
Private Limited in the administration and execution of the activities of the Scheme, except costs
allowed to be charged to the Scheme under the Securities and Exchange Board of India (Mutual Funds)
Regulations, 1996 and amendments thereto as applicable, are on their own account for which they
receive investment management and advisory fees.
4 Trusteeship Fees
In accordance with the Deed of Trust dated February 7, 2002 between HSBC Securities and Capital
Markets (India) Private Limited (“The Settlor”) and the Board of Trustees of HSBC Mutual Fund, the
Fund has paid or provided for a fee not exceeding Rs. 20,000 for each meeting of the Board of Trustees
attended by such Trustee not affiliated with the Settlor.
5 Custodian Fees
JP Morgan Chase Bank provides custodial services to the Scheme for which it receives custody fees.
6 Income Taxes
No provision for income tax is made as the Scheme qualifies as a recognized mutual fund under Section 10(23D) of the Income Tax Act, 1961 of India.
7 Aggregate Appreciation and Depreciation In Value of Investments Aggregate appreciation and depreciation in value of investments are as follows:
Long Term Plan Short Term Plan
March 31,
2009 March 31,
2008 March 31,
2009 March 31,
2008 Non Convertible Debentures and Bonds Listed / Awaiting Listing - Appreciation - - - - - Depreciation 663,800 - - - Privately Placed Non Convertible Debentures / Bonds - Appreciation 837,077 - - - - Depreciation - - - Asset Backed Securities - - Appreciation 2,068,284 - - - - Depreciation - 21,310 - -
HSBC MUTUAL FUND - HSBC FLOATING RATE FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
8 Aggregate Fair Value of Non-Traded/ Privately Placed Investments Aggregate fair values of non traded (including private placement) investments as determined by HSBC
Asset Management (India) Private Limited under the procedures approved by the Board of Trustees as at March 31, 2009 are Rs. 4,666,620,638 and Nil for Long Term Plan and Short Term Plan respectively.
9 Aggregate Value of Purchase and Sale of Investments
The aggregate value of investments purchased and sold (including matured) during the year (excluding accretion of discount of Rs. 135,102,262 and Rs. 81,656,313 for Long Term and Short Term Plan respectively) are :
Aggregate Purchases Aggregate Sales
Plan Rupees Percentage of Average
Daily Net Assets Rupees
Percentage of Average Daily Net
Assets
Long Term Plan 27,141,086,721 794.97 % 23,252,509,827 681.08 %
Short Term Plan 2,241,718,740 167.79 % 3,687,513,072 276.00 % 10 Income and Expenses
The total income (including net profit on sale of investments and net change in unrealized depreciation
in the value of investments) and expenditure during the year are:
Total Income Total Expenditure
Plan Rupees Percentage of
Average Daily Net Assets
Rupees Percentage of
Average Daily Net Assets
Long Term Plan 237,835,280 6.97 % 14,890,519 0.44 %
Short Term Plan 110,338,528 8.26 % 7,971,124 0.60 %
11 Disclosure Under Regulation 25(8) of the Securities and Exchange Board of India (Mutual
Funds) Regulation, 1996 as amended and in accordance with Accounting Standard 18 on ‘Related Party Disclosures’ issued by the Institute of Chartered Accountants of India (ICAI)
The Scheme has entered into transactions with certain related parties. The information required in this regard in accordance with Accounting Standard 18 on ‘Related Party Disclosures’ issued by the Institute of Chartered Accountants of India and regulation 25(8) of SEBI Regulation, is provided below :
I Related party relationships
Name Description of relationship (i) HSBC Securities and Capital Markets (India) Private Limited Sponsor of the Fund
HSBC MUTUAL FUND - HSBC FLOATING RATE FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
(ii) HSBC Asset Management (India) Private Limited Investment Manager to the
Schemes of HSBC Mutual Fund
(iii) The Hong Kong and Shanghai Banking Corporation Limited Associate of the Investment Manager (iv) HSBC Software Development India Private Limited Associate Company (v) Schemes of the Fund, Under Common Control of the Sponsor of the Fund
HSBC Advantage India Fund HSBC Cash Fund HSBC Dynamic Fund HSBC Emerging Market Fund HSBC Equity Fund HSBC Fixed Term Series 21 upto April 02, 2008 HSBC Fixed Term Series 22 upto April 22, 2008 HSBC Fixed Term Series 23 upto April 02, 2008 HSBC Fixed Term Series 24 upto December 15, 2008 HSBC Fixed Term Series 25 upto April 23, 2008 HSBC Fixed Term Series 27 upto April 02, 2008 HSBC Fixed Term Series 28 upto May 26, 2008 HSBC Fixed Term Series 30 HSBC Fixed Term Series 32 upto July 10, 2008 HSBC Fixed Term Series 33 upto September 08, 2008 HSBC Fixed Term Series 35 upto September 18, 2008 HSBC Fixed Term Series 36 upto October 07, 2008 HSBC Fixed Term Series 37 upto October 22, 2008 HSBC Fixed Term Series 41 HSBC Fixed Term Series 42 HSBC Fixed Term Series 44 HSBC Fixed Term Series 45 HSBC Fixed Term Series 46 HSBC Fixed Term Series 47 upto June 26, 2008 HSBC Fixed Term Series 48 with effect from March 28, 2008 upto October 07, 2008 HSBC Fixed Term Series 49 HSBC Fixed Term Series 50 with effect from April 17, 2008 HSBC Fixed Term Series 51 with effect from April 23, 2008 upto October 23, 2008 HSBC Fixed Term Series 52 with effect from April 24, 2008 HSBC Fixed Term Series 53 with effect from May 23, 2008 HSBC Fixed Term Series 54 with effect from May 27, 2008 HSBC Fixed Term Series 55 with effect from June 26, 2008 upto December 29, 2008 HSBC Fixed Term Series 56 with effect from July 25, 2008 HSBC Fixed Term Series 57 with effect from August 13, 2008 HSBC Fixed Term Series 58 with effect from July 22, 2008 upto November 05, 2008 HSBC Fixed Term Series 59 with effect from July 07, 2008 HSBC Fixed Term Series 60 with effect from July 10, 2008 upto October 13, 2008 HSBC Fixed Term Series 61 with effect from July 17, 2008 HSBC Fixed Term Series 62 with effect from August 22, 2008 HSBC Fixed Term Series 63 with effect from September 04, 2008 HSBC Fixed Term Series 66 with effect from September 18, 2008 HSBC Fixed Term Series 68 with effect from October 06, 2008 to January 14, 2009 HSBC Flexi Debt Fund HSBC Gilt Fund (Formerly, HSBC Gilt Fund – Short Term Plan)
HSBC MUTUAL FUND - HSBC FLOATING RATE FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
HSBC Income Fund Investment Plan HSBC Income Fund Short Term Plan HSBC India Opportunities Fund HSBC Interval Fund - Plan I upto November 20, 2008 HSBC Interval Fund - Plan II upto December 10, 2008 HSBC Interval Fund - Plan III upto December 17, 2008 HSBC Ultra Short Term Bond Fund (Formerly , HSBC Liquid Plus Fund) HSBC Midcap Fund HSBC MIP Fund Regular Plan HSBC MIP Fund Savings Plan HSBC Small Cap Fund HSBC Tax Saver Equity Fund HSBC Unique Opportunities Fund
(vi) Key Management Personnel and their relatives:
Nelum Pahlaj Gidwani – Associate Trustee Naina Lal Kidwai – Chairman of the Investment Manager Vikramaditya – Director and the Chief Executive Officer of the Investment Manager with effect from July 16, 2008 Dr. Rudolf Apenbrink – Associate Tustee Ayaz Ebrahim – Director with effect from April 11, 2008 Sanjay Prakash – Director and the Chief Executive Officer upto July 16, 2008 Avan Nelum Gidwani* – Relative of a Key Management Personnel Rashid K Kidwai* – Relative of a Key Management Personnel Rumaan Kidwai* – Relative of a Key Management Personnel Kemaya Lal Kidwai* – Relative of a Key Management Personnel Amrita Vikramaaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Raaghav Aaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Rhea Aaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Gabriele A Apenbrink* – Relative of a Key Management Personnel Christian R Apenbrink* – Relative of a Key Management Personnel Katharina S Apenbrink* – Relative of a Key Management Personnel Yasmin Ebrahim* – Relative of a Key Management Personnel with effect from April 11, 2008 Daanyal Ebrahim* – Relative of a Key Management Personnel with effect from April 11, 2008 Nilufer Prakash* – Relative of a Key Management Personnel upto July 16, 2008 Tara Prakash* – Relative of a Key Management Personnel upto July 16, 2008 Anahita Prakash* – Relative of a Key Management Personnel upto July 16, 2008 * There were no transactions during the year.
II The following transactions occurred with the related parties during the year in the ordinary course of
business: Refer Annexure I III During the year, The Hong Kong and Shanghai Banking Corporation Limited, an associate entity of
HSBC Asset Management (India) Private Limited was paid collection/bank charges amounting to Rs. 12 and Rs. 1,385 and brokerage amounting to Rs 955,380 and Rs. 1,557,875 for procuring unit subscriptions for the Long Term and Short Term Plan respectively. The brokerage paid was at rates similar to those offered to other distributors. Further, The Hong Kong and Shanghai Banking Corporation Limited, an associate of the Sponsor, is on the panel of bankers with whom HSBC Mutual Fund places money on fixed deposits and enters into reverse repo transactions from time to time at competitive rates.
HSBC MUTUAL FUND - HSBC FLOATING RATE FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009.
12 Disclosure under Regulation 25(11) of the Securities and Exchange Board of India (Mutual
Funds) Regulations, 1996 as amended
HSBC Mutual Fund has made investments in companies, which hold/ have held units in excess of 5% of the net asset value of any Scheme of HSBC Mutual Fund which have been listed in Annexure II.
The investments comprise equity shares, debentures/ bonds, commercial paper, fixed deposits and other debt instruments and were made solely on the basis of sound fundamentals of these companies.
13 Unclaimed Dividend
As at March 31, 2009, unclaimed dividend aggregates Rs. 41,564 payable to 56 investors of Long
Term Plan. 14 Prior Year’s Figures
Previous year’s figures have been re-grouped/re-arranged where appropriate. Signatures to the Schedules 1 to 8 forming part of the Balance Sheet and the Revenue Account.
PARTHA GHOSH Partner Membership No. F-55913 For and on behalf of PRICE WATERHOUSE Chartered Accountants
For Board of Trustees of HSBC Mutual Fund
For HSBC Asset Management (India) Private Limited
Trustee
Vikramaaditya Director and Chief Executive Officer
Trustee
Director
Place: Mumbai Date :
Fund Manager(s)
0Auditors’ Report 1To the Board of Trustees of 2HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Ultra Short Term Bond Fund (Formerly HSBC Liquid Plus Fund) (The “Scheme”) as at March 31, 2009, the related Revenue Account for the year ended on that date annexed thereto and the Cash Flow Statement for the year ended on that date which we have signed under reference to this report. These financial statements are the responsibility of the Board of Trustees of HSBC Mutual Fund and the Management of HSBC Investment Management (India) 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. Our procedures included confirmation of securities owned and unit capital balances as at March 31, 2009 by correspondence with the custodian / others and registrar and transfer agent respectively. An audit also includes assessing the accounting principles used and significant estimates made by the Management as well as evaluating the overall financial statements 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 purposes of our audit. The Balance Sheet, the Revenue Account and the Cash Flow Statement 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 ;
(i) The Balance Sheet, the Revenue Account and the Cash Flow Statement together with the notes
thereon give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and the amendments thereto, as applicable, and also give respectively a true and fair view of the state of affairs of HSBC Mutual Fund – Ultra Short Term Bond Fund as at March 31, 2009, its net surplus and its cash flows for the year ended on that date.
(ii) The Balance Sheet as at March 31, 2009, and the Revenue Account for the year ended on that date,
together with the notes thereon, have been prepared in all material respects 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.
(iii) The method used to value:
(a) non traded debt securities in accordance with the guidelines for valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India and
(b) privately placed securities in good faith as at March 31, 2009 as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund are fair and reasonable.
PARTHA GHOSH Partner M. No. F/55913 For and on behalf of PRICEWATERHOUSE Chartered Accountants Place: Mumbai Date: July 06, 2009
Year ended March 31, 2009
Rupees
Year ended March 31, 2008
Rupees
A. Cashflow from Operating ActivitiesSurplus for the year 2,539,982,580 4,168,274,307
Adjustments for:- (Increase)/Decrease in Investments at cost 19,694,056,754 (16,251,531,740) (Increase)/Decrease in Other current assets 86,088,341 (165,363,207) Increase/(Decrease) in Current liabilities 13,157,218 9,932,963
Net cash generated from/(used in) operations ( A ) 22,333,284,893 (12,238,687,677)
B Cashflow from Financing Activities Increase/(Decrease) in Unit capital (17,501,561,170) 14,579,003,517 Increase/(Decrease) in Unit premium (642,500,866) (590,523,965)
Adjustments for:- Increase/(Decrease) in Sundry creditors for units redeemed by investors (158,619,844) 176,263,263 (Increase)/Decrease in Sundry debtors for units issued to investors 271,178,718 322,383,673
Dividend paid during the year (1,663,214,211) (2,680,607,985) Dividend Tax paid during the year (321,867,398) (560,911,474)
Net cash (used in)/generated from financing activities ( B ) (20,016,584,771) 11,245,607,029
Net Increase/(Decrease) in Cash and cash equivalents (A+B) 2,316,700,122 (993,080,648)
Cash and Cash Equivalents as at the beginning of the year 78,483,291 1,071,563,939 Cash and Cash Equivalents as at the close of the year 2,395,183,413 78,483,291
Notes :March 31, 2009
Rupees March 31, 2008
Rupees
1 Cash and Cash Equivalents include the following :
Balances with Scheduled Banks : - In Current Account 45,859,266 21,956,318 - In Dividend Account 23 11 - Margin Deposit with Clearing Corporation of India Limited towards Collateralised Borrowing and Lending Obligation 1,000,000 1,000,000 - Margin Deposit with Clearing Corporation of India Limited towards Reverse Repos and Governement Securities 100,000,000 - Bank Overdraft (68,367) - Other Collateralised LendingCollateralised Borrowing and Lending Obligation 1,149,601,991 - Reverse Repos 1,098,790,499 55,526,961
2,395,183,412 78,483,291
2. The above Cash Flow Statement has been prepared under the "Indirect Method" set out in Accounting Standard - 3 on Cash Flow Statements,issued by The Institute of Chartered Accountants of India.
This is the Cash Flow Statement referred to in our report of even date.
PARTHA GHOSH For Board of Trustees of For HSBC Asset Management (India)Partner HSBC Mutual Fund Private Limited
Membership No. F-55913
For and on behalf of
PRICE WATERHOUSE
Chartered Accountants
VikramaadityaTrustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai Date : 06 July 2009 Fund Manager(s)
HSBC MUTUAL FUND - HSBC ULTRA SHORT TERM BOND FUND (FORMERLY, HSBC LIQUID PLUS FUND)
CashFlow Statement for the year ended March 31, 2009
0
March 31, 2009 March 31, 2008Schedule Rupees Rupees
ASSETS
Investments 1 7,211,438,115 26,902,192,518
Deposits 2 101,000,000 1,000,000
Other Current Assets 3 2,609,082,230 749,580,798
TOTAL 9,921,520,345 27,652,773,316
LIABILITIES
Unit Capital 4 9,484,826,174 26,986,387,344
Reserves and Surplus 5 357,112,772 441,361,970
Current Liabilities and Provisions 6 79,581,399 225,024,002
TOTAL 0.41 9,921,520,345 27,652,773,316
RECONCILIATION OF NET ASSET VALUE PER UNIT
Growth Sub-Option
Daily Dividend Sub-Option
Weekly Dividend Sub-Option Total
Growth Sub-Option
Daily Dividend Sub-Option
Weekly Dividend Sub-Option
Monthly Dividend Sub-Option Total
Growth Sub-Option
Daily DividendSub-Option
Weekly Dividend Sub-Option
Monthly Dividend Sub-Option Total Total
B A K C D E F G H I J
Net Assets as per Balance Sheet
(Total Assets less Current Liabilities and Provisions) (Note 2.6) 372,084,675 3,261,196,189 849,300,045 4,482,580,909 231,378,288 1,494,087,382 393,863,254 125,778,751 2,245,107,675 1,240,618,472 1,385,505,887 396,483,324 91,642,679 3,114,250,362 9,841,938,946
(145,367,107) (3,430,256,957) (805,997,948) (4,381,622,012) (484,104,860) (3,515,300,451) (749,590,906) (152,283,254) (4,901,279,471) (2,913,946,662) (12,755,019,987) (2,363,479,385) (112,401,797) (18,144,847,831) (27,427,749,314)
Number of Units in Issue 30,701,774.121 325,722,386.273 84,576,307.762 19,011,827.930 149,222,257.022 39,216,714.706 12,394,879.767 101,445,807.318 137,853,200.124 39,471,878.513 8,865,584.027
(12,947,562.502) (342,608,641.233) (80,326,610.335) (43,024,316.645) (351,092,342.074) (74,699,504.743) (15,102,418.972) (258,473,165.696) (1,273,900,193.819) (235,516,908.995) (10,947,069.442)
Net Asset Value per Unit 12.1193 10.0122 10.0418 12.1702 10.0125 10.0432 10.1476 12.2294 10.0506 10.0447 10.3369
(11.2274) (10.0122) (10.0340) (11.2519) (10.0125) (10.0348) (10.0834) (11.2737) (10.0126) (10.0353) (10.2678)
Notes to the Financial Statements. 8 372,084,675 3,261,196,189 849,300,045 4,482,580,909 231,378,288 1,494,087,382 393,863,254 125,778,751 2,245,107,675 1,240,618,472 1,385,505,887 396,483,324 91,642,679 3,114,250,362 9,841,938,946
This is the Balance Sheet referred to in our report of even date.
PARTHA GHOSH For Board of Trustees of Partner HSBC Mutual Fund For HSBC Asset Management (India)Membership No. F-55913 Private LimitedFor and on behalf of
PRICE WATERHOUSE Chartered Accountants Vikramaaditya
Trustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai Fund Manager(s)Date : 06 July 2009
The schedules referred to herein form an integral part of the Financial Statements.
March 31, 2009
HSBC MUTUAL FUND - HSBC ULTRA SHORT TERM BOND FUND (FORMERLY, HSBC LIQUID PLUS FUND)
Balance Sheet as at March 31, 2009
Institutional Plus Option
(March 31, 2008)
RupeesInstitutional OptionRegular Option
1
April 01, 2008 to April 01, 2007 toMarch 31, 2009 March 31, 2008
Schedule Rupees Rupees
INCOME AND GAINS
Interest and Discount 7 2,699,741,906 4,234,032,832 Net Profit on Sale of Investments(Including Net Profit on Inter-SchemeSale of Investments Previous YearRs. 195,894,487) (Note 2.4) - 138,180,018
Miscellaneous Income (Note 11) 258,197 578,123
TOTAL 2,700,000,103 4,372,790,973
EXPENSES AND LOSSES
Net Loss on Sale of Investments (Net of Net Profit on Inter - Scheme Sale of Investments Rs. 1,486,483 Previous Year Rs. Nil) (Note 2.4) 17,365,149 -
Investment Management and Advisory Fees (Note 3) 88,511,191 129,251,376
Transfer Agent Fees and Expenses 14,767,207 22,391,443
Trusteeship Fees and Expenses (Note 4) 128,509 117,549
Custodian Fees and Expenses (Note 5) 3,562,294 6,693,518
Audit Fees 150,000 200,000
Selling and Distribution Expenses 32,930,548 46,279,338
Other Operating Expenses 2,602,625 2,320,579
TOTAL 160,017,523 207,253,803
Less: Expenses Reimbursed by the Investment Manager - 2,737,137
TOTAL 160,017,523 204,516,666
Net Realised Gains for the Year 2,539,982,580 4,168,274,307
Net change in Unrealised Depreciation in Value of Investments - 197,837
Net Gains for the Year 0.02 2,539,982,580 4,168,472,144
Net Change in Unrealised Appreciation in Value of Investments 3,350,695 540,144
Net Surplus including Net change in Unrealised Appreciation/Depreciation in Value of Investments 2,543,333,275 4,169,012,288
Transferred to Unrealised Appreciation Reserve (3,350,695) (540,144)
Net Surplus for the Year -0.58 2,539,982,580 4,168,472,144
April 01, 2008 to April 01, 2007 toMarch 31, 2009 March 31, 2008
Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees
Net Surplus for the Year 28,426,777 359,375,400 95,411,284 483,213,461 40,002,938 282,182,408 63,609,600 15,735,000 401,529,946 476,871,906 972,138,582 194,651,575 11,577,110 1,655,239,173 2,539,982,580 4,168,472,144
(16,907,030) (236,144,964) (76,662,685) (329,714,679) (68,255,959) (304,384,199) (69,914,370) (17,720,536) (460,275,064) (841,021,812) (2,146,135,356) (371,796,580) (19,528,653) (3,378,482,401) (4,168,472,144)
Transfer from Income Equalisation Reserve (Note 2.8) 20,168,606 45,582 234,438 20,448,626 (52,547,000) (1,995,666) (1,238,281) (966,086) (56,747,033) (579,764,005) (5,975,224) (8,312,092) (311,367) (594,362,687) (630,661,094) (591,860,409)
(-3,564,412) (2,793,149) (2,417,841) (1,646,578) (-20,440,646) (1,928,096) (2,363,616) (2,599,888) (-13,549,046) (-593,178,542) (11,061,672) (5,158,165) (-2,999,236) (-579,957,941) (-591,860,409)
Transfer from Reserve Fund - 1,880,680 645,272 2,525,952 - 3,261,484 1,790,384 92,679 5,144,547 - 13,513,889 7,737,675 - 21,251,564 28,922,063 1,555,346
(-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (801,768) (-) (753,578) (1,555,346) (1,555,346)
Transferred from Unit Premium Reserve (Note 2.7) - - - - - - - - - - - - 73,216 73,216 73,216 (-)
(-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-)
Dividend / Distribution - (312,424,420) (82,311,713) (394,736,133) - (240,178,652) (54,159,835) (12,291,636) (306,630,123) - (795,494,910) (157,665,168) (8,687,877) (961,847,954) (1,663,214,211) (2,680,607,985)
(-) (-204,001,999) (-66,632,431) (-270,634,430) (-) (-257,731,260) (-59,515,642) (-15,735,171) (-332,982,073) (-) (-1,760,779,584) (-302,238,136) (-13,973,762) (-2,076,991,482) (-2,680,607,985)
Dividend / Distribution Tax thereon - (47,396,914) (12,494,518) (59,891,432) - (42,475,607) (9,013,313) (1,914,018) (53,402,938) - (171,512,161) (35,092,194) (1,968,673) (208,573,028) (321,867,398) (560,911,474)
(-) (-31,440,627) (-10,180,554) (-41,621,181) (-) (-46,102,999) (-10,703,009) (-3,284,692) (-60,090,700) (-) (-387,833,310) (-68,199,828) (-3,166,455) (-459,199,593) (-560,911,474)
Balance Transferred to Reserve Fund 48,595,383 1,480,329 1,484,763 51,560,475 (12,544,063) 793,967 988,556 655,939 (10,105,601) (102,892,100) 12,670,176 1,319,796 682,410 (88,219,717) (46,764,844) 336,647,622
Notes to the Financial Statements 8
This is the Revenue Account referred to in our report of even dat
PARTHA GHOSH For Board of Trustees of For HSBC Asset Management (India)Partner HSBC Mutual Fund Private LimitedMembership No. F-55913For and on behalf of PRICE WATERHOUSE Chartered Accountants
Trustee VikramaadityaDirector and Chief Executive Officer
TrusteeDirector
Place: Mumbai Fund Manager(s)Date : 06 July 2009
HSBC MUTUAL FUND - HSBC ULTRA SHORT TERM BOND FUND (FORMERLY, HSBC LIQUID PLUS FUND)
Revenue Account for the year ended March 31, 2009
The Schedules referred to herein form an integral part of the Financial Statement
2
SCHEDULE 1
Investments Market / Fair ValueCost
Market /Fair ValueCost
(Notes 2.2, 2.4, 7, 8 , 9, and 13) Rupees Rupees Rupees Rupees(Refer to the attached Statement of Portfolio Holding as at March 31, 2009)
Non Convertible Debentures and Bonds Listed / Awaiting Listing 3,413,631,765 3,413,078,926 4,054,965,779 4,053,889,775
Privately Placed Non Convertible Debentures / Bonds 1,830,888,145 1,830,888,145 1,970,292,466 1,970,191,796
Asset Backed Securities 1,808,112,794 1,803,671,197 4,323,075,446 4,322,608,375
Commercial Paper / Certificate of Deposit 158,805,411 158,805,411 16,553,858,827 16,553,858,827
TOTAL 7,211,438,115 7,206,443,679 26,902,192,518 26,900,548,773
SCHEDULE 2 March 31, 2009 March 31, 2008Deposits Rupees Rupees
Margin Deposit with Clearing Corporation of India Limited towards Collateralised Borrowing and Lending Obligation 1,000,000 1,000,000
Margin Deposit with Clearing Corporation of India Limited towards Reverse Repos and Governement Securities 100,000,000 -
TOTAL 101,000,000 1,000,000
SCHEDULE 3 March 31, 2009 March 31, 2008Other Current Assets Rupees Rupees
Balances with Banks - in Current Account 45,859,266 21,956,318 - in Dividend Account 23 11
Unit Subscription Receivable 10,898,500 166,904,900
Reverse Repos 1,098,790,499 55,526,961
Collateralised Borrowing and Lending Obligation 1,149,601,991 -
Inter-Scheme Receivable for Switch-In 120,266,655 235,438,973
Interest Receivable on :- Debentures/Bonds 162,643,308 183,203,916 - Asset Backed Securities 19,353,973 83,753,558 - Deposits 41,923 41,923 - Reverse Repos 141,400 12,226 - Collateralised Borrowing and Lending Obligation 140,840 - - Margin Deposit with Clearing Corporation of India Limited 1,329,804 -
Receivable from Investment Manager 14,048 2,742,012
TOTAL 2,609,082,230 749,580,798
March 31, 2008March 31, 2009
HSBC MUTUAL FUND - HSBC ULTRA SHORT TERM BOND FUND (FORMERLY, HSBC LIQUID PLUS FUND)
Schedules forming part of the Balance Sheet as at March 31, 2009and the Revenue Account for the year ended March 31, 2009
3
SCHEDULE 4 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008Unit Capital Rupees Units Rupees Units
Regular OptionGrowth Sub-OptionIssued and SubscribedUnits of Rs.10 each fully paid up 14,685,000 1,468,500.000 14,685,000 1,468,500.000 Outstanding:At the beginning of the year 129,475,625 12,947,562.502 59,277,813 5,927,781.325 Issued during the year 994,695,166 99,469,516.553 864,899,097 86,489,909.687
1,124,170,791 112,417,079.055 924,176,910 92,417,691.012 Redeemed during the year 817,153,049 81,715,304.934 794,701,285 79,470,128.510 At the end of the year 307,017,742 30,701,774.121 129,475,625 12,947,562.502
Daily Dividend Sub-OptionIssued and SubscribedUnits of Rs.10 each fully paid up 42,018,439 4,201,843.898 42,018,439 4,201,843.898 Outstanding:At the beginning of the year 3,426,086,412 342,608,641.233 372,473,571 37,247,357.112 Issued during the year 11,851,448,710 1,185,144,871.026 14,081,152,057 1,408,115,205.692
15,277,535,122 1,527,753,512.259 14,453,625,628 1,445,362,562.804 Redeemed during the year 12,020,311,260 1,202,031,125.986 11,027,539,216 1,102,753,921.571 At the end of the year 3,257,223,862 325,722,386.273 3,426,086,412 342,608,641.233
Weekly Dividend Sub-OptionIssued and SubscribedUnits of Rs.10 each fully paid up 18,656,079 1,865,607.901 18,656,079 1,865,607.901 Outstanding:At the beginning of the year 803,266,104 80,326,610.335 166,752,141 16,675,214.106 Issued during the year 3,153,435,321 315,343,532.080 3,653,052,357 365,305,235.663
3,956,701,425 395,670,142.415 3,819,804,498 381,980,449.769 Redeemed during the year 3,110,938,347 311,093,834.653 3,016,538,394 301,653,839.434 At the end of the year 845,763,078 84,576,307.762 803,266,104 80,326,610.335
TOTAL 4,410,004,682 441,000,468.156 4,358,828,141 435,882,814.070
Institutional OptionGrowth Sub-OptionIssued and SubscribedUnits of Rs.10 each fully paid up 30,000,000 3,000,000.000 30,000,000 3,000,000.000 Outstanding:At the beginning of the year 430,243,167 43,024,316.645 159,855,024 15,985,502.362 Issued during the year 1,305,345,144 130,534,514.385 4,401,299,752 440,129,975.164
1,735,588,311 173,558,831.030 4,561,154,776 456,115,477.526 Redeemed during the year 1,545,470,031 154,547,003.100 4,130,911,609 413,091,160.881 At the end of the year 190,118,280 19,011,827.930 430,243,167 43,024,316.645
Daily Dividend Sub-OptionIssued and SubscribedUnits of Rs.10 each fully paid up 198,200,000 19,820,000.000 198,200,000 19,820,000.000 Outstanding:At the beginning of the year 3,510,923,421 351,092,342.074 1,387,492,069 138,749,206.903 Issued during the year 12,420,883,272 1,242,088,327.212 18,359,586,374 1,835,958,637.371
15,931,806,693 1,593,180,669.286 19,747,078,443 1,974,707,844.274 Redeemed during the year 14,439,584,123 1,443,958,412.264 16,236,155,022 1,623,615,502.200 At the end of the year 1,492,222,570 149,222,257.022 3,510,923,421 351,092,342.074
Weekly Dividend Sub-OptionIssued and SubscribedUnits of Rs.10 each fully paid up 40,000,000 4,000,000.000 40,000,000 4,000,000.000 Outstanding:At the beginning of the year 746,995,047 74,699,504.743 203,024,117 20,302,411.727 Issued during the year 1,957,301,742 195,730,174.224 3,040,613,807 304,061,380.731
2,704,296,789 270,429,678.967 3,243,637,924 324,363,792.458 Redeemed during the year 2,312,129,643 231,212,964.261 2,496,642,877 249,664,287.715 At the end of the year 392,167,146 39,216,714.706 746,995,047 74,699,504.743
Monthly Dividend Sub-OptionIssued and SubscribedUnits of Rs.10 each fully paid up - - - - Outstanding:At the beginning of the year 151,024,190 15,102,418.972 10,070,767 1,007,076.666 Issued during the year 445,634,888 44,563,488.833 961,614,112 96,161,411.208
596,659,078 59,665,907.805 971,684,879 97,168,487.874 Redeemed during the year 472,710,280 47,271,028.038 820,660,689 82,066,068.902 At the end of the year 123,948,798 12,394,879.767 151,024,190 15,102,418.972
TOTAL 2,198,456,794 219,845,679.425 4,839,185,825 483,918,582.434
Institutional Plus OptionGrowth Sub-Option Issued and SubscribedUnits of Rs.10 each fully paid up 920,000,000 92,000,000.000 920,000,000 92,000,000.000 Outstanding:At the beginning of the year 2,584,731,657 258,473,165.696 2,166,074,121 216,607,412.104 Issued during the year 37,338,802,716 3,733,880,271.611 92,445,673,527 9,244,567,352.676
39,923,534,373 3,992,353,437.307 94,611,747,648 9,461,174,764.780 Redeemed during the year 38,909,076,300 3,890,907,629.989 92,027,015,991 9,202,701,599.084 At the end of the year 1,014,458,073 101,445,807.318 2,584,731,657 258,473,165.696
Daily Dividend Sub-Option Issued and SubscribedUnits of Rs.10 each fully paid up 400,038,954 40,003,895.444 400,038,954 40,003,895.444 Outstanding:At the beginning of the year 12,739,001,938 1,273,900,193.819 7,259,033,705 725,903,370.527 Issued during the year 76,531,584,559 7,653,158,455.898 167,548,798,438 16,754,879,843.763
89,270,586,497 8,927,058,649.717 174,807,832,143 17,480,783,214.290 Redeemed during the year 87,892,054,496 8,789,205,449.593 162,068,830,205 16,206,883,020.471 At the end of the year 1,378,532,001 137,853,200.124 12,739,001,938 1,273,900,193.819
Weekly Dividend Sub-Option Issued and SubscribedUnits of Rs.10 each fully paid up 50,000,000 5,000,000.000 50,000,000 5,000,000.000 Outstanding:At the beginning of the year 2,355,169,090 235,516,908.995 530,872,405 53,087,240.496 Issued during the year 12,620,138,952 1,262,013,895.241 17,234,973,468 1,723,497,346.835
14,975,308,042 1,497,530,804.236 17,765,845,873 1,776,584,587.331 Redeemed during the year 14,580,589,257 1,458,058,925.723 15,410,676,783 1,541,067,678.336 At the end of the year 394,718,785 39,471,878.513 2,355,169,090 235,516,908.995
Monthly Dividend Sub-Option Issued and SubscribedUnits of Rs.10 each fully paid up 50,000,000 5,000,000.000 50,000,000 5,000,000.000 Outstanding:At the beginning of the year 109,470,693 10,947,069.442 92,458,095 9,245,809.572 Issued during the year 227,151,646 22,715,164.623 1,338,998,275 133,899,827.537
336,622,339 33,662,234.065 1,431,456,370 143,145,637.109 Redeemed during the year 247,966,500 24,796,650.038 1,321,985,677 132,198,567.667 At the end of the year 88,655,839 8,865,584.027 109,470,693 10,947,069.442
TOTAL 2,876,364,698 287,636,469.982 17,788,373,378 1,778,837,337.952
GRAND TOTAL 9,484,826,174 948,482,617.563 26,986,387,344 2,698,638,734.456
HSBC MUTUAL FUND - HSBC ULTRA SHORT TERM BOND FUND (FORMERLY, HSBC LIQUID PLUS FUND)
Schedules forming part of the Balance Sheet as at March 31, 2009and the Revenue Account for the year ended March 31, 2009
Note: HSBC Asset Management (India) Private Limited, the investment manager holds 17,264,359.780 units in the HSBC Ultra Short Term Bond Fund Institutional Plus Daily Dividend Sub Option as at March 31,2009.
4
SCHEDULE 5Reserves and Surplus
Total
Unit Premium Reserve (Note 2.7)At the beginning of the year 19,829
(-1,316,616)
Added during the year (11,839,770) (1,336,445)
Transferred to Revenue Account (73,216) (-)
At the end of the year (11,893,157) (19,829)
Income Equalisation Reserve (Note 2.8)Added during the year (630,661,094)
(-591,860,410)
Transferred to Revenue Account 630,661,094 (591,860,410)
At the end of the year - (-)
Unrealised Appreciation ReserveAt the beginning of the year 1,643,743
(-)
Transferred from Reserve Fund - (1,103,599)
Net change in Unrealised Appreciation in Value of Investments Transferred from Revenue Account 3,350,695
(540,144)
At the end of the year 4,994,438 (1,643,743)
Reserve FundAt the beginning of the year 439,698,398
(105,709,721)
Transferred to Revenue Account (28,922,063) (-1,555,346)
Transferred to Unrealised Appreciation Reserve - (-1,103,599)
Balance Transferred from Revenue Account (46,764,844) (336,647,622)
At the end of the year 364,011,491 (439,698,398)
TOTAL 357,112,772 *
(441,361,970) *
* The share of the Plans / Options of the Reserves and Surplus is as follows : March 31, 2009
(March 31, 2008)
Regular Option
Growth Sub-Option : Rs. 65,066,933
(15,891,482)
Daily Dividend Sub-Option : Rs. 3,972,327
(4,170,545)
Weekly Dividend Sub-Option : Rs. 3,536,967
(2,731,844)
Total (A) 72,576,227
(22,793,871)
Institutional Option
Growth Sub-Option : Rs. 41,260,008
(53,861,693)
Daily Dividend Sub-Option : Rs. 1,864,812
(4,377,030)
Weekly Dividend Sub-Option : Rs. 1,696,108
(2,595,859)
Monthly Dividend Sub-Option : Rs. 1,829,953
(1,259,064)
Total (B) 46,650,881
(62,093,646)
Institutional Plus Option
Growth Sub-Option : Rs. 226,160,399
(329,215,005)
Daily Dividend Sub-Option : Rs. 6,973,886
(16,018,049)
Weekly Dividend Sub-Option : Rs. 1,764,539
(8,310,295)
Monthly Dividend Sub-Option : Rs. 2,986,840
(2,931,104)
Total (C) 237,885,664
(356,474,453)
Total (A+B+C) : Rs. 357,112,772
(441,361,970)
March 31, 2009
Rupees(March 31, 2008)
HSBC MUTUAL FUND - HSBC ULTRA SHORT TERM BOND FUND (FORMERLY, HSBC LIQUID PLUS
Schedules forming part of the Balance Sheet as at March 31, 2009and the Revenue Account for the year ended March 31, 2009
5
SCHEDULE 6 March 31, 2009 March 31, 2008Current Liabilities and Provisions Rupees Rupees
Current Liabilities
Investment Management and Advisory Fees 29,904,375 6,747,366
Transfer Agent Fees and Expenses 408,955 1,391,121
Custodian Fees and Expenses 146,211 909,497
Audit Fees 150,000 200,000
Selling and Distribution Expenses 1,427,951 3,056,375
Unit Redemption Payable 28,787,287 200,940,269
Inter Scheme Payable: - For Switch Out 16,006,877 2,473,739 - For Others - 2,231,686
Dividend Payable 715,071 890,500
Dividend Tax Payable 819,507 4,073,773
Temporary Book Overdraft 68,367 -
Interest Rate Swaps - 48,340
Sundry Payables 1,146,798 2,061,336
TOTAL 79,581,399 225,024,002
SCHEDULE 7 April 01, 2008 to April 01, 2007 toInterest and Discount (Note 2.5) March 31, 2009 March 31, 2008
Rupees Rupees
Debentures / Bonds 792,236,537 1,282,710,833
Asset Backed Securities 524,058,883 354,545,124
Treasury Bills - 18,983,761
Commercial Paper / Certificate of Deposit 1,313,347,174 2,000,940,461
Reverse Repos 36,907,629 92,787,465
Collateralised Borrowing and Lending Obligation 21,425,665 4,008,649
Deposits 47,247,580 480,680,477
Margin Deposit with the Clearing Corporation of India Limited 1,249,020 482,827
Interest Rate Swaps (Net) (Note 2.3) (16,075,543) (1,106,765)
Others (Refer Note 15) (20,655,039) - TOTAL 2,699,741,906 4,234,032,832
HSBC MUTUAL FUND - HSBC ULTRA SHORT TERM BOND FUND (FORMERLY, HSBC LIQUID PLUS FUND)
Schedules forming part of the Balance Sheet as at March 31, 2009and the Revenue Account for the year ended March 31, 2009
6
Description Quantity Market / Fair Value Rupees
Non-Convertible Debentures / Bonds Listed / Awaiting listing (48.01 %)Banks (27.86 %)
Floating ICICI Bank Ltd 2010 $ @ 500 501,281,871 Floating Axis Bank Ltd 2012 $ 450 449,896,971
951,178,842 Ferrous Metals (4.39 %)
Floating Tata Steel Limited 2011 $ @ 150 150,000,000 150,000,000
Finance (53.09 %)Floating Housing Development Finance Corporation Limited 2011 $ 500 502,249,299 Floating Indian Railway Finance Corporation Limited 2010 $ 500 500,057,294 Floating Housing Development Finance Corporation Limited 2009 $ 500 500,000,000 Floating Power Finance Corporation Limited 2010 $ 300 300,054,590 8.80% Sundaram Finance Limited 2009 $ @ 10 9,989,824
1,812,351,007 Finance & Investments (14.66 %)
Floating Citicorp Finance India Limited 2009 $ 500 500,101,916 500,101,916
Total (Cost Rs. 3,413,078,926) 3,413,631,765
Privately Placed / Unlisted Non-Convertible Debentures / Bonds (25.75 %)Construction (18.07 %)
19.00% Unitech Limited 2009 * 4,937 330,779,000 330,779,000
Finance (81.93 %)Floating Tata Sons Limited 2010 * @ 1,500 1,500,109,145
1,500,109,145 Total (Cost Rs. 1,830,888,145) 1,830,888,145
Asset Backed Securities (24.00 %)Finance & Investments (97.36 %)
BHPC Auto Securitisation Sr A1 (Tata Motors Services) PTC2010 * 208 784,981,233 KUL Loan Trust Series A1 (Unitech) PTC2009 * 50 602,632,312 Corporate Debt Trust Series 15- Sereis A1 (National Housing Bank) PTC2010 * 13 119,955,405 Indian Loans Receivables Trust May 2008 Series A2 (DLF ) PTC2009 * @ 50 50,092,304 Corporate Loan Securitisation Series XXXIII Trust 2006 (Shriram Transport Finance Company ) PTC2009 * 5 49,955,404 Corporate Debt Trust Series 15- Sereis A2 (National Housing Bank) PTC2010 * 25 30,356,081 Loans Receivable Trust July 2008 Series A2 (Shriram Transport Finance Company )PTC2009 * 3 29,170,569 Loans Receivable Trust July 2008 Series A1 (Shriram Transport Finance Company )PTC2009 * 50 23,521,236 Indian Loans Receivables Trust Series T1 (Tata Motors Finance) PTC2009 * 80 20,838,679 Corporate Loan Securitisation Series XXIX Trust 2006 (Shriram Transport Finance Company ) PTC2009 * 2 20,680,691 Corporate Loan Securitisation Series XXIX Trust 2006 (L&T Finance) PTC2009 * @ 25 13,009,065 Corporate Loan Securitisation Series 7 Trust 2009 Series A1 (DLF ) PTC2009 * @ 10 10,706,986 Corporate Loan Securitisation Trust Series 15 Trust 2008 - A1 (L&T Finance ) PTC2010 * @ 1 5,657,115 Corporate Loan Securitisation Series 8 Trust 2009 Series A1 (DLF ) PTC2009 * @ 1 1,537,035
1,763,094,115 Finance & Term Lending (2.64 %)
Corporate Debt Trust 2008-09 Series 5 A1 (LIC Housing Finance) PTC2009 * 3 27,320,921 Corporate Debt Trust 2008-09 Series 5 A2 (LIC Housing Finance ) PTC2009 * 50 11,533,775 ISH Loan Trust Series A1 (Simplex Infrastructure) PTC2009 * 5 6,163,983
45,018,679 Total (Cost Rs. 1,803,671,197) 1,808,112,794
Commercial Papers/Certificate of Deposits (2.23 %)Certificate of Deposits (100 %)
Kotak Mahindra Bank Limited $ 750 74,469,260 ICICI Bank Limited $ @ 300 29,787,652 National Bank For Agricultural and Rural Development Limited $ 300 29,757,824 Exim Bank Limited $ @ 250 24,790,675
158,805,411 Total (Cost Rs. 158,805,412) 158,805,411 TOTAL INVESTMENTS (Cost Rs. 7,206,443,680) 7,211,438,115
HSBC MUTUAL FUND - HSBC ULTRA SHORT TERM BOND FUND (FORMERLY, HSBC LIQUID PLUS FUND)
Statement of Portfolio Holding as at March 31, 2009
(Referred to in Schedule 1 to the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009)
Confirmation has been received from JP Morgan Chase Bank, Mumbai Branch at the end of the financial year for investments held by them.
* Fair value of privately placed securities as determined in good faith by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees.
$ Fair value of non traded debt securities as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees in accordancewith guidelines for valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board ofIndia.
@ Investment in companies which have invested more than five percent of the net asset value of any schemes of HSBC Mutual Fund.
7
HSBC MUTUAL FUND - HSBC ULTRA SHORT TERM BOND FUND (FORMERLY, HSBC LIQUID PLUS FUND)
Schedules forming part of the Balance Sheet as at March 31, 2009 and theRevenue Account for the year ended March 31, 2009.
Annexure 1
(i) Transactions during the Year
Nature of Transaction Sponsor Investment Manager
Associate of Investment Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Purchase of Investments - - - 41,138,103,439 - 41,138,103,439 Previous Year - - - 47,196,670,473 - 47,196,670,473
Sale of Investments - - - 45,303,677,976 - 45,303,677,976 Previous Year - - - 52,463,917,054 - 52,463,917,054
Subscription of Units (including switch in and dividendreinvestment) 496,098,463 529,579,294 - - 39,700,060 1,065,377,816 Previous Year - - - - 42,452,446 42,452,446
Redemption of Units (including switch out 496,098,463 357,900,000 - - 35,672,163 889,670,626 Previous Year - - - - 46,227,617 46,227,617
Dividend Paid/Payable( Including dividend reinvested 98,463 10,617,568 - - 615,100 11,331,130 Previous Year - - - - 747,035 747,035
Investment Management and Advisory Fees - 88,511,191 - - - 88,511,191 Previous Year - 129,251,376 - - - 129,251,376
Brokerage/ Commission on Distribution of Units - - 12,864,725 - - 12,864,725 Previous Year - - 12,231,290 - - 12,231,290
Fixed Deposits Placed - - - - - - Previous Year - - 1,400,000,000 - - 1,400,000,000
Fixed Deposits Matured - - - - - - Previous Year - - 1,485,000,000 - - 1,485,000,000
Interest Rate Swaps placed - - - - - - Previous Year - - - 500,000,000 - 500,000,000
Charges for Services Provided by Bank - - 3,131 - - 3,131 Previous Year - - 17,006 - - 17,006
Borrowings taken and repaid - - 41,150,700,000 - - 41,150,700,000 Previous Year - - - - - -
Interest Expense on Borrowings - - 6,328,829 - - 6,328,829 Previous Year - - - - - -
(ii) Outstanding As At Year End
Nature of Transaction Sponsor Investment Manager
Associate of Investment Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Investment Management and Advisory Fees Payable - 29,904,375 - - - 29,904,375 Previous Year - 6,747,366 - - - 6,747,366
Brokerage/ Commission Payable on Distribution of Units - - 738,064 - - 738,064 Previous Year - - 801,666 - - 801,666
Units Outstanding As At Year End - 173,517,174 - - 2,061,798 175,578,972 Previous Year - - - - 9,436,104 9,436,104
Other Payables - - - - - - Previous Year - - - 2,231,686 - 2,231,686
Other Receivables - 14,048 - - - 14,048 Previous Year - 2,742,012 - - - 2,742,012
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control ofthe Sponsor.
April 01, 2008 to March 31, 2009
April 01, 2007 to March31, 2008
Purchase of InvestmentsHSBC Cash Fund 19,479,325,593 33,242,041,782 HSBC Income Fund Short Term Plan - 76,990,006
Sale of InvestmentsHSBC Cash Fund 23,172,428,278 32,269,886,734 HSBC Fixed Term Series 55 - 20,089,349
Other PayablesHSBC Fixed Term Series 49 - 2,231,686
(iv) Disclosures in respect of material transactions with persons referred to in Note 13 (I)(v) for key management personneland their relatives
April 01, 2008 to March 31, 2009
April 01, 2007 to March31, 2008
Subscription of Units (including switch in and dividendreinvestment)Sanjay Prakash 7,196,336 26,237,427 Naina Lal Kidwai 10,344,788 14,154,989 Kemaya Lal Kidwai (relative) 21,338,525
Redemption of Units (including switch outNaina Lal Kidwai 13,688,796 20,017,313 Kemaya Lal Kidwai (relative) 21,407,575 - Sanjay Prakash - 26,210,304
Dividend Paid/Payable( Including dividend reinvestedSanjay Prakash 190,376 439,594 Naina Lal Kidwai 204,788 247,411 Nelum P Gidwani - 60,030 Kemaya Lal Kidwai (relative) 208,525 -
Units Outstanding As At Year EndSanjay Prakash - 4,031,904 Naina Lal Kidwai - 3,344,008 Nelum P Gidwani 2,061,798 2,060,192
0
HSBC MUTUAL FUND - HSBC ULTRA SHORT TERM BOND FUND (FORMERLY, HSBC LIQUID PLUS FUND)
Schedules forming part of the Balance Sheet as at March 31, 2009 and the
Revenue Account for the year ended March 31, 2009
SCHEDULE 8
0Notes to the Financial Statements
1 Organisation
HSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) (the “Scheme”) is an open-ended debt scheme of HSBC Mutual Fund (the “Fund”) and was launched on October 11, 2006. HSBC Mutual Fund has been sponsored by HSBC Securities and Capital Markets (India) Private Limited. HSBC Asset Management (India) Private Limited incorporated under the Companies Act, 1956 has been appointed as the asset management company. The duration of the Scheme is perpetual. The Scheme closed for initial subscription on October 12, 2006 and reopened for issue and redemption of units on October 18, 2006. The investment objective of the Scheme is to provide liquidity and reasonable returns by investing primarily in a mix of short term debt and money market instruments.
The Scheme has three Options – Regular Option, Institutional Option and Institutional Plus Option. The Regular Option offers Growth, Daily Dividend and Weekly Dividend sub options. The Institutional Option and the Institutional Plus Option offer Growth, Daily Dividend, Weekly Dividend and Monthly Dividend Sub-Options. In accordance with the notice-cum-addendum dated February 16, 2009 the nomenclature of the Scheme has been changed from HSBC Liquid Plus Fund to HSBC Ultra Short Term Bond Fund.
The Scheme will not declare dividend under the Growth Sub - Options in normal circumstances. The income earned on such units will remain invested within the Scheme and will be reflected in the net asset value.
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 “Regulations”) and amendments thereto, as applicable.
2.2 Portfolio Valuation
Investments are stated at market/fair value at the Balance Sheet date/date of determination. In valuing the Scheme’s investments:
i. Debt securities listed on a recognised stock exchange are valued at the last quoted closing price on the
National Stock Exchange of India Limited (NSE). If no sale is reported at that time, such securities are valued at fair value as determined in good faith by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund.
ii. Non-traded and thinly traded debt securities are valued at fair value as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India (SEBI).
HSBC MUTUAL FUND - HSBC ULTRA SHORT TERM BOND FUND (FORMERLY, HSBC LIQUID PLUS FUND)
Schedules forming part of the Balance Sheet as at March 31, 2009 and the
Revenue Account for the year ended March 31, 2009
iii. Privately placed debt securities are valued at fair value as determined in good faith by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund.
iv. Asset backed securities are valued at fair value as determined in good faith by HSBC Asset
Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund .
v. Instruments bought on ‘repo’ basis are valued at the resale price after deduction of applicable interest
up to the date of resale.
vi. Traded money market securities are valued at the yield at which they are traded on the valuation date. If no sale is reported at that time, such security is valued at the last traded price plus accretion of the difference between the face value and the last traded price. Non traded money market instruments are valued at cost plus accrued interest.
Following the issue of guidance note on accounting for investments in the financial statements of the mutual funds by the Institute of Chartered Accountants of India (pursuant to the Eleventh Schedule of the Regulations) net unrealised appreciation / depreciation in the value of investments is determined separately for each category of investments. In respect of each category of investments, the net change in the unrealised appreciation if any, between two balance sheet dates / valuation dates is accounted through the Revenue Account and thereafter the net unrealised appreciation is transferred from the Revenue Account to the Unrealised Appreciation Reserve. The net depreciation if any, is accounted through the Revenue Account. Net unrealised appreciation is reduced from the distributable income at the time of income distribution.
The loss on investments sold/transferred during the year/period is charged to the Revenue Account instead of
being first adjusted against the provision for depreciation, if already created in the previous year/period as recommended in the Guidance Note. However the departure from the Guidance Note does not have any net impact on the net asset value of the options of the Scheme.
2.3 Interest Rate Swaps Interest expense and income are accrued on a net daily basis in respect of interest rate swaps with maturity
less than 182 days. 2.4 Securities Transactions
Investment securities transactions are accounted for on a trade date basis. The Scheme uses the average cost method for determining the realized gain or loss on sale of investments.
2.5 Investment Income
Interest income is recorded on an accrual basis.
2.6 Net Asset Value for Growth/Dividend Sub- Options
HSBC MUTUAL FUND - HSBC ULTRA SHORT TERM BOND FUND (FORMERLY, HSBC LIQUID PLUS FUND)
Schedules forming part of the Balance Sheet as at March 31, 2009 and the
Revenue Account for the year ended March 31, 2009
The net asset value of the units of the Scheme is determined separately for the units issued under the Growth and Dividend Sub-Options for the Regular, Institutional and Institutional Plus Options. For reporting the net asset value for the Sub - Option, 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 Sub - Options in proportion to the value of the units outstanding.
2.7 Unit Premium Reserve Upon issue and redemption of units, the net premium or discount to the face value of units is adjusted against the unit premium reserve of the Scheme, after an appropriate portion of the issue proceeds and redemption payout is credited or debited respectively to the income equalization reserve. The unit premium reserve is available for dividend distribution except to the extent it is represented by unrealised net appreciation in value of investments.
2.8 Income Equalization Reserve
The net distributable income relating to units issued/repurchased is transferred to/from income equalization reserve for determining the net surplus/deficit, transferred from/to unit premium reserve.
2.9 Load Charges
Load collected is retained under a separate account in the Scheme and is utilized to meet the selling and distribution expenses of the Scheme.
3 Investment Management and Advisory Fees
The Scheme has paid or provided for investment management and advisory fees payable to HSBC Asset
Management (India) Private Limited for managing the Scheme at an average annual rate of 0.31%, 0.29% and
0.28% of the average daily net asset value of Regular Plan, Institutional Plan and Institutional Plus Plans
respectively recorded by the Scheme. All costs, charges and expenses incurred by HSBC Asset Management
(India) Private Limited in the administration and execution of the activities of the Scheme, except costs
allowed to be charged to the Scheme under the Securities and Exchange Board of India (Mutual Funds)
Regulations, 1996 and amendments thereto as applicable, are on their own account for which they receive
investment management and advisory fees. 4 Trusteeship Fees
In accordance with the Deed of Trust dated February 7, 2002 between HSBC Securities and Capital Markets
(India) Private Limited (“The Settlor”) and the Board of Trustees of HSBC Mutual Fund, the Fund has paid
or provided for a fee not exceeding Rs.20,000 for each meeting of the Board of Trustees attended by such
Trustee not affiliated with the Settlor. 5 Custodian Fees
HSBC MUTUAL FUND - HSBC ULTRA SHORT TERM BOND FUND (FORMERLY, HSBC LIQUID PLUS FUND)
Schedules forming part of the Balance Sheet as at March 31, 2009 and the
Revenue Account for the year ended March 31, 2009
JP Morgan Chase Bank provides custodial services to the Scheme for which it receives custody fees. 6 Income Taxes
No provision for income tax is made as the Scheme qualifies as a recognized mutual fund under Section 10(23D) of the Income Tax Act, 1961.
7 Aggregate Appreciation and Depreciation In Value of Investments Aggregate appreciation and depreciation in value of investments is as follows:
March 31, 2009
(Rupees) March 31, 2008
(Rupees) Non Convertible Debentures and Bonds Listed / Awaiting Listing
- Appreciation 552,846 1,080,798
- Depreciation 7 4,794
Privately Placed Non Convertible Debentures / Bonds
- Appreciation - 100,670
- Depreciation - -
Asset Backed Securities
- Appreciation 4,506,181 510,068
- Depreciation 64,584 42,997
8 Aggregate Fair Value of Non-Traded / Privately Placed Investments Aggregate fair value of non traded (including private placement) investments as determined by HSBC Asset
Management (India) Private Limited under the procedures approved by the Board of Trustees as at March 31, 2009 is Rs. 7,211,438,117.
9 Aggregate Value of Purchase and Sale of Investments
The aggregate value of investment securities purchased (excluding accretion of discount of Rs. 1,434,575,544) and sold (including matured) during the financial year are Rs. 215,473,358,101 and Rs. 236,584,673,590 respectively being 699.27% and 767.78% of the average daily net assets.
10 Income and Expenses
The total income (net of net loss on sale of investments) and expenditure during the year is Rs. 2,682,634,954
and Rs. 142,652,374 respectively being 8.71 % and 0.46 % of average daily net assets.
11 Miscellaneous Income
HSBC MUTUAL FUND - HSBC ULTRA SHORT TERM BOND FUND (FORMERLY, HSBC LIQUID PLUS FUND)
Schedules forming part of the Balance Sheet as at March 31, 2009 and the
Revenue Account for the year ended March 31, 2009
Miscellaneous income of Rs.258,197 represents compensation received from HSBC Asset Management
(India) Private Limited, the investment advisor for non utilization of investible funds.
12 Related party Disclosures
Disclosure Under Regulation 25(8) of the Securities and Exchange Board of India (Mutual Funds ) Regulation, 1996 as amended and in accordance with Accounting Standard 18 on ‘Related Party Disclosures’ issued by the Institute of Chartered Accountants of India (ICAI)
The Scheme has entered into transactions with certain related parties. The information required in this regard in accordance with Accounting Standard 18 on ‘Related Party Disclosures’ issued by the Institute of Chartered Accountants of India and regulation 25(8) of SEBI Regulation, is provided below
I Related party relationships Name Description of relationship (i) HSBC Securities and Capital Markets (India) Private Limited Sponsor of the Fund
(ii) HSBC Asset Management (India) Private Limited Investment Manager to the Schemes of HSBC Mutual Fund
(iii) The Hong Kong and Shanghai Banking Corporation Limited Associate of the Investment Manager (iv) Schemes of the Fund, Under Common Control of the Sponsor
HSBC Advantage India Fund HSBC Cash Fund HSBC Dynamic Fund HSBC Emerging Market Fund HSBC Equity Fund HSBC Fixed Term Series 21 upto April 02, 2008 HSBC Fixed Term Series 22 upto April 22, 2008 HSBC Fixed Term Series 23 upto April 02, 2008 HSBC Fixed Term Series 24 upto December 15, 2008 HSBC Fixed Term Series 25 upto April 23, 2008 HSBC Fixed Term Series 27 upto April 02, 2008 HSBC Fixed Term Series 28 upto May 26, 2008 HSBC Fixed Term Series 30 HSBC Fixed Term Series 32 upto July 10, 2008 HSBC Fixed Term Series 33 upto September 08, 2008 HSBC Fixed Term Series 35 upto September 18, 2008 HSBC Fixed Term Series 36 upto October 07, 2008 HSBC Fixed Term Series 37 upto October 22, 2008 HSBC Fixed Term Series 41 HSBC Fixed Term Series 42 HSBC Fixed Term Series 44 HSBC Fixed Term Series 45 HSBC Fixed Term Series 46 HSBC Fixed Term Series 47 upto June 26, 2008 HSBC Fixed Term Series 48 with effect from March 28, 2008 upto October 07, 2008 HSBC Fixed Term Series 49 HSBC Fixed Term Series 50 with effect from April 17, 2008 HSBC Fixed Term Series 51 with effect from April 23, 2008 upto October 23, 2008 HSBC Fixed Term Series 52 with effect from April 24, 2008
HSBC MUTUAL FUND - HSBC ULTRA SHORT TERM BOND FUND (FORMERLY, HSBC LIQUID PLUS FUND)
Schedules forming part of the Balance Sheet as at March 31, 2009 and the
Revenue Account for the year ended March 31, 2009
HSBC Fixed Term Series 53 with effect from May 23, 2008 HSBC Fixed Term Series 54 with effect from May 27, 2008 HSBC Fixed Term Series 55 with effect from June 26, 2008 upto December 29, 2008 HSBC Fixed Term Series 56 with effect from July 25, 2008 HSBC Fixed Term Series 57 with effect from August 13, 2008 HSBC Fixed Term Series 58 with effect from July 22, 2008 upto November 05, 2008 HSBC Fixed Term Series 59 with effect from July 07, 2008 HSBC Fixed Term Series 60 with effect from July 10, 2008 upto October 13, 2008 HSBC Fixed Term Series 61 with effect from July 17, 2008 HSBC Fixed Term Series 62 with effect from August 22, 2008 HSBC Fixed Term Series 63 with effect from September 04, 2008 HSBC Fixed Term Series 66 with effect from September 18, 2008 HSBC Fixed Term Series 68 with effect from October 06, 2008 to January 14, 2009 HSBC Flexi Debt Fund HSBC Floating Rate Fund Long Term Plan HSBC Floating Rate Fund Short Term Plan HSBC Gilt Fund (Formerly, HSBC Gilt Fund – Short Term Plan) HSBC Income Fund Investment Plan HSBC Income Fund Short Term Plan HSBC India Opportunities Fund HSBC Interval Fund - Plan I upto November 20, 2008 HSBC Interval Fund - Plan II upto December 10, 2008 HSBC Interval Fund - Plan III upto December 17, 2008 HSBC Midcap Fund HSBC MIP Fund Regular Plan HSBC MIP Fund Savings Plan HSBC Small Cap Fund HSBC Tax Saver Equity Fund HSBC Unique Opportunities Fund
(v) Key Management Personnel and their relatives:
Nelum Pahlaj Gidwani – Associate Trustee Naina Lal Kidwai – Chairman of the Investment Manager Vikramaditya – Director and the Chief Executive Officer of the Investment Manager with effect from July 16, 2008 Dr. Rudolf Apenbrink – Associate Tustee Ayaz Ebrahim – Director with effect from April 11, 2008 Sanjay Prakash – Director and the Chief Executive Officer upto July 16, 2008 Avan Nelum Gidwani* – Relative of a Key Management Personnel Rashid K Kidwai* – Relative of a Key Management Personnel Rumaan Kidwai* – Relative of a Key Management Personnel Kemaya Lal Kidwai – Relative of a Key Management Personnel Amrita Vikramaaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Raaghav Aaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Rhea Aaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Gabriele A Apenbrink* – Relative of a Key Management Personnel Christian R Apenbrink* – Relative of a Key Management Personnel Katharina S Apenbrink* – Relative of a Key Management Personnel Yasmin Ebrahim* – Relative of a Key Management Personnel with effect from April 11, 2008 Daanyal Ebrahim* – Relative of a Key Management Personnel with effect from April 11, 2008 Nilufer Prakash – Relative of a Key Management Personnel upto July 16, 2008 Tara Prakash – Relative of a Key Management Personnel upto July 16, 2008 Anahita Prakash* – Relative of a Key Management Personnel upto July 16, 2008
HSBC MUTUAL FUND - HSBC ULTRA SHORT TERM BOND FUND (FORMERLY, HSBC LIQUID PLUS FUND)
Schedules forming part of the Balance Sheet as at March 31, 2009 and the
Revenue Account for the year ended March 31, 2009
* There were no transactions during the year.
II The following transactions occurred with the related parties during the year in the ordinary course of
business: Refer Annexure I
III During the year, The Hongkong & Shanghai Banking Corporation Limited, an associate entity of HSBC
Asset Management (India) Private Limited was paid collection/bank charges amounting to Rs. 3,131 and
brokerage amounting to Rs. 12,864,725 for procuring unit subscriptions for the Scheme. The brokerage paid
was at rates similar to those offered to other distributors. Further, The Hongkong and Shanghai Banking
Corporation Limited, an associate of the Sponsor, is on the panel of bankers with whom HSBC Mutual Fund
places money on fixed deposits and enters into reverse repo transactions from time to time at competitive
rates.
13 Disclosure under Regulation 25(11) of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 as amended
HSBC Mutual Fund has made investments in companies, which holds/ has held units in excess of 5% of the net asset value of any Scheme of HSBC Mutual Fund which have been listed in Annexure II.
The investments comprise equity shares, debentures/ bonds, commercial paper, fixed deposits and other debt instruments and were made solely on the basis of sound fundamentals of these companies.
14 Segment Reporting
The Scheme operates in one segment only viz. to primarily generate attractive returns from a diversified and actively managed portfolio of debt and money market instruments.
15 Interest
Interest expense aggregating Rs. 20,655,039 on borrowings made by the Scheme to meet temporary liquidity needs for the purpose of redemption of units has been netted off from interest income as disclosed in Schedule 7.
16 Investment in Unitech Limited
As at March 31, 2009, HSBC Ultra Short Term Bond Fund had investments in;
Secured redeemable debentures of Unitech Limited aggregating Rs. 33.08 crores which were rescheduled for payment on April 18, 2009. Subsequent, to the year end the terms and conditions of the said debentures were mutually extended in the interest of the unit holders, such that 50% of the principal amount of the debentures would be payable in two equal installments before April 30th 2009 and June 30th 2009 and the balance 50% payable in April 2010. The Scheme has received Rs. 8.14 crores in April 2009. The interest on the debentures has been serviced till March 31, 2009. The debenture holders are secured against immovable property mortgaged by the company.
Secured redeemable asset backed security of Unitech Limited aggregating Rs. 60.26 crores (including interest of Rs. 10.16 crores) which were rescheduled for payment on or before 31st July, 2009. Subsequent, to the year end the terms and conditions of the said asset backed security were mutually extended in the interest of
HSBC MUTUAL FUND - HSBC ULTRA SHORT TERM BOND FUND (FORMERLY, HSBC LIQUID PLUS FUND)
Schedules forming part of the Balance Sheet as at March 31, 2009 and the
Revenue Account for the year ended March 31, 2009
the unit holders, such that Rs. 12 crores would be payable on or before 31st March, 2009, Rs. 20 crores on or before 31st May, 2009 and balance Principal and Interest on or before 31st July, 2009. The Scheme has received Rs. 31.48 crores till May 2009. The interest on the asset backed securities has been serviced till March 31, 2009. This is secured against land mortgaged by the Company with IL&FS for the benefit of KUL Loan Trust and post dated cheques.
In view of the above, in the opinion of the management, no provision is considered necessary as at March 31, 2009.
17 Prior Year’s Figures
Prior year’s figures have been regrouped/ rearranged where appropriate. Signatures to the Schedules 1 to 8 forming part of the Balance Sheet and the Revenue Account.
PARTHA GHOSH Partner Membership No. F-55913 For and on behalf of PRICE WATERHOUSE Chartered Accountants
For Board of
Trustees of HSBC
Mutual Fund
For HSBC Asset Management (India) Private
Limited
Trustee
Vikramaaditya
Director and Chief Executive Officer
Trustee
Director
Place: Mumbai
Date :
Fund Manager(s)
Auditors' Report To the Board of Trustees of
HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Fixed Term Series 30 ("The Scheme") as at March
31, 2009 and the related Revenue Account for the year ended on that date, both of which we have signed under
reference to this report. These financial statements are the responsibility of the Board of Trustees of HSBC Mutual
Fund and the Management of HSBC Asset Management (India) 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. Our procedures included confirmation of securities owned and unit capital
balances as at March 31, 2009 by correspondence with the custodian/others and registrar and transfer agent
respectively. 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,
(i) 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 also give respectively, a true and fair view of the state of affairs of HSBC Mutual Fund –
HSBC Fixed Term Series 30 as at March 31, 2009 and its net surplus for the year ended on that date.
(ii) The Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended on that date,
together with the notes thereon have been prepared in all material respects 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.
(iii) The method used to value: i. non traded debt securities in accordance with the guidelines for valuation of securities for
mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India and
ii. privately placed securities in good faith as at March 31, 2009 as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund are fair and reasonable.
PARTHA GHOSH Partner M. No. F-55913 For and on behalf of PRICEWATERHOUSE Chartered Accountants Place: Mumbai Date: July 06, 2009
Auditors' Report To the Board of Trustees of
HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Fixed Term Series 41 ("The Scheme") as at March
31, 2009 and the related Revenue Account for the year ended on that date, both of which we have signed under
reference to this report. These financial statements are the responsibility of the Board of Trustees of HSBC Mutual
Fund and the Management of HSBC Asset Management (India) 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. Our procedures included confirmation of securities owned and unit capital
balances as at March 31, 2009 by correspondence with the custodian/others and registrar and transfer agent
respectively. 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,
(i) 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 also give respectively, a true and fair view of the state of affairs of HSBC Mutual Fund –
HSBC Fixed Term Series 41 as at March 31, 2009 and its net surplus for the year ended on that date.
(ii) The Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended on that date,
together with the notes thereon have been prepared in all material respects 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.
(iii) The method used to value: i. non traded debt securities in accordance with the guidelines for valuation of securities for
mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India and
ii. Privately placed securities in good faith as at March 31, 2009 as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund are fair and reasonable.
PARTHA GHOSH Partner M. No. F-55913 For and on behalf of PRICEWATERHOUSE Chartered Accountants Place: Mumbai Date: July 06, 2009
Auditors' Report To the Board of Trustees of
HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Fixed Term Series 42 ("The Scheme") as at March
31, 2009 and the related Revenue Account for the year ended on that date, both of which we have signed under
reference to this report. These financial statements are the responsibility of the Board of Trustees of HSBC Mutual
Fund and the Management of HSBC Asset Management (India) 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. Our procedures included confirmation of securities owned and unit capital
balances as at March 31, 2009 by correspondence with the custodian/others and registrar and transfer agent
respectively. 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,
(i) 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 also give respectively, a true and fair view of the state of affairs of HSBC Mutual Fund –
HSBC Fixed Term Series 42 as at March 31, 2009 and its net surplus for the year ended on that date.
(ii) The Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended on that date,
together with the notes thereon have been prepared in all material respects 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.
(iii) The method used to value: i. non traded debt securities in accordance with the guidelines for valuation of securities for
mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India and
ii. Privately placed securities in good faith as at March 31, 2009 as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund are fair and reasonable.
PARTHA GHOSH Partner M. No. F-55913 For and on behalf of PRICEWATERHOUSE Chartered Accountants Place: Mumbai Date: July 06, 2009
Auditors' Report To the Board of Trustees of
HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Fixed Term Series 44 ("The Scheme") as at March
31, 2009 and the related Revenue Account for the year ended on that date, both of which we have signed under
reference to this report. These financial statements are the responsibility of the Board of Trustees of HSBC Mutual
Fund and the Management of HSBC Asset Management (India) 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. Our procedures included confirmation of securities owned and unit capital
balances as at March 31, 2009 by correspondence with the custodian/others and registrar and transfer agent
respectively. 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,
(i) 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 also give respectively, a true and fair view of the state of affairs of HSBC Mutual Fund –
HSBC Fixed Term Series 44 as at March 31, 2009 and its net surplus for the year ended on that date.
(ii) The Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended on that date,
together with the notes thereon have been prepared in all material respects 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.
(iii) The method used to value non traded debt securities in accordance with the guidelines for
valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India as at March 31, 2009 as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund are fair and reasonable.
PARTHA GHOSH Partner M. No. F-55913 For and on behalf of PRICEWATERHOUSE Chartered Accountants Place: Mumbai Date: July 06, 2009
Auditors' Report To the Board of Trustees of
HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Fixed Term Series 45 ("The Scheme") as at March
31, 2009 and the related Revenue Account for the year ended on that date, both of which we have signed under
reference to this report. These financial statements are the responsibility of the Board of Trustees of HSBC Mutual
Fund and the Management of HSBC Asset Management (India) 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. Our procedures included confirmation of securities owned and unit capital
balances as at March 31, 2009 by correspondence with the custodian/others and registrar and transfer agent
respectively. 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,
(i) 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 also give respectively, a true and fair view of the state of affairs of HSBC Mutual Fund –
HSBC Fixed Term Series 45 as at March 31, 2009 and its net surplus for the year ended on that date.
(ii) The Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended on that date,
together with the notes thereon have been prepared in all material respects 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. PARTHA GHOSH Partner M. No. F-55913 For and on behalf of PRICEWATERHOUSE Chartered Accountants Place: Mumbai Date: July 06, 2009
Auditors' Report To the Board of Trustees of
HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Fixed Term Series 46 ("The Scheme") as at March
31, 2009, the related Revenue Account for the period July 07, 2008 to March 31, 2009 and the Cash Flow Statement
for the period July 07, 2008 to March 31, 2009 which we have signed under reference to this report. These financial
statements are the responsibility of the Board of Trustees of HSBC Mutual Fund and the Management of HSBC Asset
Management (India) 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. Our procedures included confirmation of securities owned and unit capital
balances as at March 31, 2009 by correspondence with the custodian/others and registrar and transfer agent
respectively. 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, the Revenue Account and Cash Flow Statement 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,
(i) 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 also give respectively, a true and fair view of the state of affairs of HSBC Mutual Fund –
HSBC Fixed Term Series 46 as at March 31, 2009 and its net surplus for the year ended on that date.
(ii) The Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended on that date,
together with the notes thereon have been prepared in all material respects 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.
(iii) The method used to value non traded debt securities in accordance with the guidelines for
valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India as at March 31, 2009 as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund are fair and reasonable.
PARTHA GHOSH Partner M. No. F-55913 For and on behalf of PRICEWATERHOUSE Chartered Accountants Place: Mumbai Date: July 22, 2009
Auditors' Report To the Board of Trustees of
HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Fixed Term Series 49 ("The Scheme") as at March
31, 2009 and the related Revenue Account for the year ended on that date, both of which we have signed under
reference to this report. These financial statements are the responsibility of the Board of Trustees of HSBC Mutual
Fund and the Management of HSBC Asset Management (India) 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. Our procedures included confirmation of securities owned and unit capital
balances as at March 31, 2009 by correspondence with the custodian/others and registrar and transfer agent
respectively. 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,
(i) 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 also give respectively, a true and fair view of the state of affairs of HSBC Mutual Fund –
HSBC Fixed Term Series 49 as at March 31, 2009 and its net surplus for the year ended on that date.
(ii) The Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended on that date,
together with the notes thereon have been prepared in all material respects 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.
(iii) The method used to value non traded debt securities in accordance with the guidelines for
valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India as at March 31, 2009 as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund are fair and reasonable.
PARTHA GHOSH Partner M. No. F-55913 For and on behalf of PRICEWATERHOUSE Chartered Accountants Place: Mumbai Date: July 06, 2009
Auditors' Report To the Board of Trustees of HSBC MUTUAL FUND 1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Fixed Term Series 50 ("The Scheme") as at March
31, 2009 and the related Revenue Account for the period April 17, 2008 to March 31, 2009, both of which we have signed under reference to this report. These financial statements are the responsibility of the Board of Trustees of HSBC Mutual Fund and the Management of HSBC Asset Management (India) 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. Our procedures included confirmation of securities owned and unit capital balances as at March 31, 2009 by correspondence with the custodian/others and registrar and transfer agent respectively. 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,
(i) 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 also give respectively, a true and fair view of the state of affairs of HSBC Mutual Fund – HSBC Fixed Term Series 50 as at March 31, 2009 and its net deficit for the period April 17, 2008 to March 31, 2009.
(ii) The Balance Sheet as at March 31, 2009 and the Revenue Account for the period April 17, 2008 to March
31, 2009, together with the notes thereon have been prepared in all material respects 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.
(iii) The method used to value:
i. non traded debt securities in accordance with the guidelines for valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India and
ii. Privately placed securities in good faith as at March 31, 2009 as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund are fair and reasonable.
PARTHA GHOSH Partner M. No. F-55913 For and on behalf of PRICEWATERHOUSE Chartered Accountants Place: Mumbai Date: July 06, 2009
Auditors' Report To the Board of Trustees of
HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Fixed Term Series 52 ("The Scheme") as at March
31, 2009, the related Revenue Account for the period July 07, 2008 to March 31, 2009 and the Cash Flow Statement
for the period July 07, 2008 to March 31, 2009 which we have signed under reference to this report. These financial
statements are the responsibility of the Board of Trustees of HSBC Mutual Fund and the Management of HSBC Asset
Management (India) 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. Our procedures included confirmation of securities owned and unit capital
balances as at March 31, 2009 by correspondence with the custodian/others and registrar and transfer agent
respectively. 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, the Revenue Account and the Cash Flow Statement 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,
(i) 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 also give respectively, a true and fair view of the state of affairs of HSBC Mutual Fund –
HSBC Fixed Term Series 52 as at March 31, 2009 and its net surplus for the period April 24, 2008 to March
31, 2009.
(ii) The Balance Sheet as at March 31, 2009 and the Revenue Account for the period April 24, 2008 to March 31, 2009, together with the notes thereon have been prepared in all material respects 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.
(iii) The method used to value:
i. non traded debt securities in accordance with the guidelines for valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India and
ii. Privately placed securities in good faith as at March 31, 2009 as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund are fair and reasonable.
PARTHA GHOSH Partner M. No. F-55913 For and on behalf of PRICEWATERHOUSE Chartered Accountants Place: Mumbai
Date: July 22, 2009
Auditors' Report To the Board of Trustees of
HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Fixed Term Series 53 ("The Scheme") as at March
31, 2009, the related Revenue Account for the period July 07, 2008 to March 31, 2009 and the Cash Flow Statement
for the period July 07, 2008 to March 31, 2009 which we have signed under reference to this report. These financial
statements are the responsibility of the Board of Trustees of HSBC Mutual Fund and the Management of HSBC Asset
Management (India) 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. Our procedures included confirmation of securities owned and unit capital
balances as at March 31, 2009 by correspondence with the custodian/others and registrar and transfer agent
respectively. 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, the Revenue Account and the Cash Flow Statement 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,
(i) 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 also give respectively, a true and fair view of the state of affairs of HSBC Mutual Fund –
HSBC Fixed Term Series 53 as at March 31, 2009 and its net surplus for the period May 23, 2008 to March
31, 2009.
(ii) The Balance Sheet as at March 31, 2009 and the Revenue Account for the period May 23, 2008 to March
31, 2009, together with the notes thereon have been prepared in all material respects 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.
(iii) The method used to value: i. non traded debt securities in accordance with the guidelines for valuation of securities for
mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India and
ii. Privately placed securities in good faith as at March 31, 2009 as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund are fair and reasonable.
PARTHA GHOSH Partner M. No. F-55913 For and on behalf of PRICEWATERHOUSE Chartered Accountants Place: Mumbai Date: July 22, 2009
Auditors' Report To the Board of Trustees of
HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Fixed Term Series 54 ("The Scheme") as at March
31, 2009, the related Revenue Account for the period July 07, 2008 to March 31, 2009 and the Cash Flow Statement
for the period July 07, 2008 to March 31, 2009 which we have signed under reference to this report. These financial
statements are the responsibility of the Board of Trustees of HSBC Mutual Fund and the Management of HSBC Asset
Management (India) 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. Our procedures included confirmation of securities owned and unit capital
balances as at March 31, 2009 by correspondence with the custodian/others and registrar and transfer agent
respectively. 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, the Revenue Account and the Cash Flow Statement 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,
(i) 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 also give respectively, a true and fair view of the state of affairs of HSBC Mutual Fund –
HSBC Fixed Term Series 54 as at March 31, 2009 and its net surplus for the period May 27, 2008 to March
31, 2009.
(ii) The Balance Sheet as at March 31, 2009 and the Revenue Account for the period May 27, 2008 to March
31, 2009, together with the notes thereon have been prepared in all material respects 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.
(iii) The method used to value: i. non traded debt securities in accordance with the guidelines for valuation of securities for
mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India and
ii. Privately placed securities in good faith as at March 31, 2009 as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund are fair and reasonable.
PARTHA GHOSH Partner M. No. F-55913 For and on behalf of PRICEWATERHOUSE Chartered Accountants Place: Mumbai
Date: July 22, 2009
Auditors' Report To the Board of Trustees of
HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Fixed Term Series 56 ("The Scheme") as at March
31, 2009, the related Revenue Account for the period July 07, 2008 to March 31, 2009 and the Cash Flow Statement
for the period July 07, 2008 to March 31, 2009 which we have signed under reference to this report. These financial
statements are the responsibility of the Board of Trustees of HSBC Mutual Fund and the Management of HSBC Asset
Management (India) 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. Our procedures included confirmation of securities owned and unit capital
balances as at March 31, 2009 by correspondence with the custodian/others and registrar and transfer agent
respectively. 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, the Revenue Account and the Cash Flow Statement 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,
(i) 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 also give respectively, a true and fair view of the state of affairs of HSBC Mutual Fund –
HSBC Fixed Term Series 56 as at March 31, 2009 and its net surplus for the period July 25, 2008 to March
31, 2009.
(ii) The Balance Sheet as at March 31, 2009 and the Revenue Account for the period July 25, 2008 to March 31,
2009, together with the notes thereon have been prepared in all material respects 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.
(iii) The method used to value: i. non traded debt securities in accordance with the guidelines for valuation of securities for
mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India and
ii. Privately placed securities in good faith as at March 31, 2009 as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund are fair and reasonable.
PARTHA GHOSH Partner M. No. F-55913 For and on behalf of PRICEWATERHOUSE Chartered Accountants Place: Mumbai
Date: July 22, 2009
Auditors' Report To the Board of Trustees of
HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Fixed Term Series 57 ("The Scheme") as at March 31, 2009 and the related Revenue Account for the period August 13, 2008 to March 31, 2009, both of which we have signed under reference to this report. These financial statements are the responsibility of the Board of Trustees of HSBC Mutual Fund and the Management of HSBC Asset Management (India) 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. Our procedures included confirmation of securities owned and unit capital balances as at March 31, 2009 by correspondence with the custodian/others and registrar and transfer agent respectively. 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, i. 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 also give respectively, a true and fair view of the state of affairs of HSBC Mutual Fund – HSBC Fixed Term Series 57 as at March 31, 2009 and its net surplus for the period August 13, 2008 to March 31, 2009.
ii. The Balance Sheet as at March 31, 2009 and the Revenue Account for the period August 13, 2008
to March 31, 2009, together with the notes thereon have been prepared in all material respects 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.
iii. The method used to value non traded debt securities in accordance with the guidelines for valuation
of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India as at March 31, 2009 as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund are fair and reasonable.
PARTHA GHOSH Partner M. No. F-55913 For and on behalf of PRICEWATERHOUSE Chartered Accountants Place: Mumbai Date: July 06, 2009
Auditors' Report To the Board of Trustees of
HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Fixed Term Series 59 ("The Scheme") as at March
31, 2009, the related Revenue Account for the period July 07, 2008 to March 31, 2009 and the Cash Flow Statement
for the period July 07, 2008 to March 31, 2009 which we have signed under reference to this report. These financial
statements are the responsibility of the Board of Trustees of HSBC Mutual Fund and the Management of HSBC Asset
Management (India) 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. Our procedures included confirmation of securities owned and unit capital
balances as at March 31, 2009 by correspondence with the custodian/others and registrar and transfer agent
respectively. 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, the Revenue Account and the Cash Flow Statement 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,
(i) 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 also give respectively, a true and fair view of the state of affairs of HSBC Mutual Fund –
HSBC Fixed Term Series 59 as at March 31, 2009 and its net surplus for the period July 07, 2008 to March
31, 2009.
(ii) The Balance Sheet as at March 31, 2009 and the Revenue Account for the period July 07, 2008 to March 31,
2009, together with the notes thereon have been prepared in all material respects 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.
(iii) The method used to value: i. non traded debt securities in accordance with the guidelines for valuation of securities for
mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India and
ii. Privately placed securities in good faith as at March 31, 2009 as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund are fair and reasonable.
PARTHA GHOSH Partner M. No. F-55913 For and on behalf of PRICEWATERHOUSE Chartered Accountants Place: Mumbai
Date: July 22, 2009
Auditors' Report To the Board of Trustees of
HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Fixed Term Series 61 ("The Scheme") as at March
31, 2009 and the related Revenue Account for the period July 17, 2008 to March 31, 2009, both of which we have
signed under reference to this report. These financial statements are the responsibility of the Board of Trustees of
HSBC Mutual Fund and the Management of HSBC Asset Management (India) 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. Our procedures included confirmation of securities owned and unit capital
balances as at March 31, 2009 by correspondence with the custodian/others and registrar and transfer agent
respectively. 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,
(i) 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 also give respectively, a true and fair view of the state of affairs of HSBC Mutual Fund –
HSBC Fixed Term Series 61 as at March 31, 2009 and its net surplus for the period July 17, 2008 to March
31, 2009.
(ii) The Balance Sheet as at March 31, 2009 and the Revenue Account for the period July 17, 2008 to March 31,
2009, together with the notes thereon have been prepared in all material respects 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.
(iii) The method used to value: i. non traded debt securities in accordance with the guidelines for valuation of securities for
mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India and
ii. Privately placed securities in good faith as at March 31, 2009 as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund are fair and reasonable.
PARTHA GHOSH Partner M. No. F-55913 For and on behalf of PRICEWATERHOUSE Chartered Accountants Place: Mumbai Date: July 06, 2009
Auditors' Report To the Board of Trustees of
HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Fixed Term Series 62 ("The Scheme") as at March
31, 2009 and the related Revenue Account for the period August 22, 2008 to March 31, 2009, both of which we have
signed under reference to this report. These financial statements are the responsibility of the Board of Trustees of
HSBC Mutual Fund and the Management of HSBC Asset Management (India) 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. Our procedures included confirmation of securities owned and unit capital
balances as at March 31, 2009 by correspondence with the custodian/others and registrar and transfer agent
respectively. 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,
(i) 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 also give respectively, a true and fair view of the state of affairs of HSBC Mutual Fund –
HSBC Fixed Term Series 62 as at March 31, 2009 and its net surplus for the period August 22, 2008 to
March 31, 2009.
(ii) The Balance Sheet as at March 31, 2009 and the Revenue Account for the period August 22, 2008 to March
31, 2009, together with the notes thereon have been prepared in all material respects 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.
(iii) The method used to value:
i. non traded debt securities in accordance with the guidelines for valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India and
ii. Privately placed securities in good faith as at March 31, 2009 as determined by HSBC Asset Management (India) Private Limited
under procedures approved by the Board of Trustees of HSBC Mutual Fund are fair and reasonable
PARTHA GHOSH Partner M. No. F-55913 For and on behalf of PRICEWATERHOUSE Chartered Accountants Place: Mumbai Date: July 06, 2009
Auditors' Report To the Board of Trustees of
HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – HSBC Fixed Term Series 63 ("The Scheme") as at March
31, 2009 and the related Revenue Account for the period September 04, 2008 to March 31, 2009, both of which we
have signed under reference to this report. These financial statements are the responsibility of the Board of Trustees
of HSBC Mutual Fund and the Management of HSBC Asset Management (India) 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. Our procedures included confirmation of securities owned and unit capital
balances as at March 31, 2009 by correspondence with the custodian/others and registrar and transfer agent
respectively. 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,
(i) 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 also give respectively, a true and fair view of the state of affairs of HSBC Mutual Fund –
HSBC Fixed Term Series 63 as at March 31, 2009 and its net surplus for the period September 04, 2008 to
March 31, 2009.
(ii) The Balance Sheet as at March 31, 2009 and the Revenue Account for the period September 04, 2008 to
March 31, 2009, together with the notes thereon have been prepared in all material respects 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.
(iii) The method used to value: i. non traded debt securities in accordance with the guidelines for valuation of securities for
mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India and
ii. Privately placed securities in good faith as at March 31, 2009 as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund are fair and reasonable.
PARTHA GHOSH Partner M. No. F-55913 For and on behalf of PRICEWATERHOUSE Chartered Accountants Place: Mumbai Date: July 06, 2009
Auditors' Report To the Board of Trustees of
HSBC MUTUAL FUND
1. We have audited the Balance Sheet of HSBC Mutual Fund – Fixed Term Series 66 ("The Scheme") as at March 31,
2009 and the related Revenue Account for the period September 18, 2008 to March 31, 2009, both of which we have
signed under reference to this report. These financial statements are the responsibility of the Board of Trustees of
HSBC Mutual Fund and the Management of HSBC Asset Management (India) 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. Our procedures included confirmation of securities owned and unit capital
balances as at March 31, 2009 by correspondence with the custodian/others and registrar and transfer agent
respectively. 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,
(i) 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 also give respectively, a true and fair view of the state of affairs of HSBC Mutual Fund –
Fixed Term Series 66 as at March 31, 2009 and its net surplus for the period September 18, 2008 to March
31, 2009.
(ii) The Balance Sheet as at March 31, 2009 and the Revenue Account for the period September 18, 2008 to
March 31, 2009, together with the notes thereon have been prepared in all material respects 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.
(iii) The method used to value: i. non traded debt securities in accordance with the guidelines for valuation of securities for
mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India and
ii. Privately placed securities in good faith as at March 31, 2009 as determined by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund are fair and reasonable.
PARTHA GHOSH Partner M. No. F-55913 For and on behalf of PRICEWATERHOUSE Chartered Accountants Place: Mumbai Date: July 06, 2009
Fixed Term Series 50 Fixed Term Series 52
March 31, 2009 March 31, 2009
Schedule Rupees RupeesASSETS
Investments 1 4,718,524,615 2,120,473,920
Other Current Assets 2 63,358,975 108,822,396
TOTAL 0.58 4,781,883,590 0.29 2,229,296,316
LIABILITIES
Unit Capital 4 4,412,481,467 2,055,499,232
Reserves and Surplus 5 367,661,460 155,969,467
Current Liabilities and Provisions 6 1,740,662 17,827,617
TOTAL -0.58 4,781,883,589 -0.29 2,229,296,316
RECONCILIATION OF NET ASSET VALUE PER UNITRegular Option
Growth Sub OptionInstitutional Option Growth
Sub Option TotalRegular Option
Growth Sub OptionRegular Option
Dividend Sub OptionInstitutional Option Growth
Sub OptionInstitutional Option Dividend
Sub Option Total
Net Assets as per Balance Sheet (Total Assets less Current Liabilities and Provisions ) (Note 2.5) 227,703,618 4,552,439,310 4,780,142,928 891,564,975 24,275,424 1,268,453,586 27,174,714 2,211,468,699
Number of Units in Issue 21,018,994.800 420,229,151.872 82,908,810.639 2,411,220.616 117,531,222.044 2,698,669.974
Net Asset Value per Unit 10.8332 10.8332 10.7536 10.0677 10.7925 10.0697
Notes to the Financial Statements. 8
The schedules referred to herein form an integral part of the Financial Statements.
This is the Balance Sheet referred to in our report of even date.
PARTHA GHOSH For Board of Trustees of For HSBC Asset Management (India)Partner HSBC Mutual Fund Private LimitedMembership No. F-55913For and on behalf of PRICE WATERHOUSE Chartered Accountants
Vikramaaditya
Trustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai
Date : 22 July 2009 Fund Manager(s)
Fixed Term Series 50
March 31, 2009
Rupees Rupees
Fixed Term Series 52
March 31, 2009
HSBC FIXED TERM SERIES 50, HSBC FIXED TERM SERIES 52, HSBC FIXED TERM SERIES 53, HSBC FIXED TERM SERIES 54, HSBC FIXED TERM SERIES 56, HSBC FIXED TERM SERIES 57, HSBC FIXED TERM SERIES 59, HSBC FIXED TERM SERIES 61, HSBC FIXED TERM SERIES 62, HSBC FIXED TERM SERIES 63, HSBC FIXED TERM SERIES 66
Balance Sheet as at March 31, 2009
0
ScheduleASSETS
Investments 1
Other Current Assets 2
TOTAL
LIABILITIES
Unit Capital 4
Reserves and Surplus 5
Current Liabilities and Provisions 6
TOTAL
RECONCILIATION OF NET ASSET VALUE PER UNIT
Net Assets as per Balance Sheet (Total Assets less Current Liabilities and Provisions ) (Note 2.5)
Number of Units in Issue
Net Asset Value per Unit
Notes to the Financial Statements. 8
The schedules referred to herein form an integral part of the Financial Statements.
This is the Balance Sheet referred to in our report of even date.
PARTHA GHOSHPartnerMembership No. F-55913For and on behalf of PRICE WATERHOUSE Chartered Accountants
Place: Mumbai
Date : 22 July 2009
0
Fixed Term Series 53 Fixed Term Series 54 Fixed Term Series 56
March 31, 2009 March 31, 2009 March 31, 2009
Rupees Rupees Rupees
1,265,233,113 1,625,891,785 1,139,421,007
142,335,356 141,317,820 81,361,793
0.90 1,407,568,469 -0.30 1,767,209,605 -0.50 1,220,782,800
1,295,162,350 1,644,656,490 1,143,802,751
91,064,660 102,586,497 70,201,752
21,341,459 19,966,618 6,778,297
-0.90 1,407,568,469 0.30 1,767,209,605 0.50 1,220,782,800
Regular OptionGrowth Sub Option
Regular OptionDividend Sub Option
Institutional Option GrowthSub Option Total
Regular OptionGrowth Sub Option
Regular OptionDividend Sub Option
Institutional Option GrowthSub Option
Institutional Option DividendSub Option Total
Regular OptionGrowth Sub Option
Regular OptionDividend Sub Option
Institutional Option GrowthSub Option
Institutional Option DividendSub Option Total
582,783,949 75,547,153 727,895,908 1,386,227,010 1,041,624,594 71,251,818 459,790,932 174,575,643 1,747,242,987 324,923,507 43,779,935 681,291,600 164,009,461 1,214,004,503
54,364,719.496 7,478,257.861 67,673,257.564 97,312,275.008 7,087,939.668 42,714,525.882 17,350,908.374 30,440,734.449 4,322,700.253 63,455,612.351 16,161,228.002
10.7199 10.1022 10.7560 10.7039 10.0525 10.7643 10.0615 10.6740 10.1279 10.7365 10.1483
For Board of Trustees of For HSBC Asset Management (India)HSBC Mutual Fund Private Limited
Vikramaaditya
Trustee Director and Chief Executive Officer
Trustee Director
Fund Manager(s)
Fixed Term Series 56
Rupees
March 31, 2009
Rupees
Fixed Term Series 54
March 31, 2009
Rupees
Fixed Term Series 53
March 31, 2009
HSBC FIXED TERM SERIES 50, HSBC FIXED TERM SERIES 52, HSBC FIXED TERM SERIES 53, HSBC FIXED TERM SERIES 54, HSBC FIXED TERM SERIES 56, HSBC FIXED TERM SERIES 57, HSBC FIXED TERM SERIES 59, HSBC FIXED TERM SERIES 61, HSBC FIXED TERM SERIES 62, HSBC FIXED TERM SERIES 63, HSBC FIXED TERM SERIES 66
Balance Sheet as at March 31, 2009
ScheduleASSETS
Investments 1
Other Current Assets 2
TOTAL
LIABILITIES
Unit Capital 4
Reserves and Surplus 5
Current Liabilities and Provisions 6
TOTAL
RECONCILIATION OF NET ASSET VALUE PER UNIT
Net Assets as per Balance Sheet (Total Assets less Current Liabilities and Provisions ) (Note 2.5)
Number of Units in Issue
Net Asset Value per Unit
Notes to the Financial Statements. 8
The schedules referred to herein form an integral part of the Financial Statements.
This is the Balance Sheet referred to in our report of even date.
PARTHA GHOSHPartnerMembership No. F-55913For and on behalf of PRICE WATERHOUSE Chartered Accountants
Place: Mumbai
Date : 22 July 2009
0
Fixed Term Series 57 Fixed Term Series 59 Fixed Term Series 61
March 31, 2009 March 31, 2009 March 31, 2009
Rupees Rupees Rupees
587,472,629 3,206,563,895 839,761,005
3,403,612 197,495,136 83,121,505
0.20 590,876,241 0.15 3,404,059,031 -0.05 922,882,510
554,735,824 3,161,781,651 855,013,075
35,314,939 231,868,589 60,238,513
825,478 10,408,791 7,630,922
-0.20 590,876,241 -0.15 3,404,059,031 -0.05 922,882,510
Regular OptionGrowth Sub Option
Regular OptionDividend Sub Option
Institutional Option GrowthSub Option Total
Regular OptionGrowth Sub Option
Regular OptionDividend Sub Option
Institutional Option GrowthSub Option
Institutional Option DividendSub Option Total
Regular OptionGrowth Sub Option
Regular OptionDividend Sub Option
Institutional Option GrowthSub Option
Institutional Option DividendSub Option Total
104,907,761 12,548,322 472,594,680 590,050,763 511,779,924 38,886,098 2,757,536,770 85,447,448 3,393,650,240 229,067,368 32,123,950 643,434,765 10,625,505 915,251,588
9,887,151.531 1,248,815.860 44,337,614.974 47,776,020.134 3,863,711.673 256,051,526.035 8,486,907.255 21,408,119.591 3,188,393.733 59,851,112.810 1,053,681.411
10.6105 10.0482 10.6590 10.7121 10.0644 10.7695 10.0681 10.7000 10.0753 10.7506 10.0842
For Board of Trustees of For HSBC Asset Management (India)HSBC Mutual Fund Private Limited
Vikramaaditya
Trustee Director and Chief Executive Officer
Trustee Director
Fund Manager(s)
Fixed Term Series 61
March 31, 2009
Rupees
Fixed Term Series 57
March 31, 2009
Rupees
Fixed Term Series 59
March 31, 2009
Rupees
HSBC FIXED TERM SERIES 50, HSBC FIXED TERM SERIES 52, HSBC FIXED TERM SERIES 53, HSBC FIXED TERM SERIES 54, HSBC FIXED TERM SERIES 56, HSBC FIXED TERM SERIES 57, HSBC FIXED TERM SERIES 59, HSBC FIXED TERM SERIES 61, HSBC FIXED TERM SERIES 62, HSBC FIXED TERM SERIES 63, HSBC FIXED TERM SERIES 66
Balance Sheet as at March 31, 2009
ScheduleASSETS
Investments 1
Other Current Assets 2
TOTAL
LIABILITIES
Unit Capital 4
Reserves and Surplus 5
Current Liabilities and Provisions 6
TOTAL
RECONCILIATION OF NET ASSET VALUE PER UNIT
Net Assets as per Balance Sheet (Total Assets less Current Liabilities and Provisions ) (Note 2.5)
Number of Units in Issue
Net Asset Value per Unit
Notes to the Financial Statements. 8
The schedules referred to herein form an integral part of the Financial Statements.
This is the Balance Sheet referred to in our report of even date.
PARTHA GHOSHPartnerMembership No. F-55913For and on behalf of PRICE WATERHOUSE Chartered Accountants
Place: Mumbai
Date : 22 July 2009
0
Fixed Term Series 62 Fixed Term Series 63 Fixed Term Series 66
March 31, 2009 March 31, 2009 March 31, 2009
Rupees Rupees Rupees
4,335,630,893 933,840,736 628,322,625
89,839,826 19,103,086 30,802,260
-0.72 4,425,470,719 -0.90 952,943,822 659,124,885
4,156,201,950 899,448,145 625,957,075
265,437,973 50,882,959 31,996,223
3,830,796 2,612,719 1,171,587
-0.72 4,425,470,719 0.90 952,943,823 659,124,885
Regular OptionGrowth Sub Option
Regular OptionDividend Sub Option
Institutional Option GrowthSub Option Total
Regular OptionGrowth Sub Option
Regular OptionDividend Sub Option
Institutional Option GrowthSub Option Total
Regular OptionGrowth Sub Option
Regular OptionDividend Sub Option
Institutional Option GrowthSub Option Total
4,288,102,952 5,611,867 127,925,104 4,421,639,923 263,676,457 11,017,179 675,637,468 950,331,104 431,549,543 56,011,468 170,392,287 657,953,298
403,062,100.032 558,094.931 12,000,000.000 25,007,241.395 1,092,018.996 63,845,554.072 40,902,819.241 5,542,888.156 16,150,000.000
10.6388 10.0554 10.6604 10.5440 10.0888 10.5824 10.5506 10.1051 10.5506
For Board of Trustees of For HSBC Asset Management (India)HSBC Mutual Fund Private Limited
Vikramaaditya
Trustee Director and Chief Executive Officer
Trustee Director
Fund Manager(s)
Fixed Term Series 63
March 31, 2009
Rupees
Fixed Term Series 66
March 31, 2009
Rupees
Fixed Term Series 62
March 31, 2009
Rupees
HSBC FIXED TERM SERIES 50, HSBC FIXED TERM SERIES 52, HSBC FIXED TERM SERIES 53, HSBC FIXED TERM SERIES 54, HSBC FIXED TERM SERIES 56, HSBC FIXED TERM SERIES 57, HSBC FIXED TERM SERIES 59, HSBC FIXED TERM SERIES 61, HSBC FIXED TERM SERIES 62, HSBC FIXED TERM SERIES 63, HSBC FIXED TERM SERIES 66
Balance Sheet as at March 31, 2009
Fixed Term Series 50 Fixed Term Series 52 Fixed Term Series 53 Fixed Term Series 54 Fixed Term Series 56 Fixed Term Series 57 Fixed Term Series 59 Fixed Term Series 61 Fixed Term Series 62 Fixed Term Series 63 Fixed Term Series 66
April 17, 2008 to April 24, 2008 to May 23, 2008 to May 27, 2008 to July 25, 2008 to August 13, 2008 to July 07, 2008 to July 17, 2008 to August 22, 2008 to September 04, 2008 to September 18, 2008 to
March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009Schedule Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees
INCOME AND GAINS
Interest and Discount 7 383,398,645 226,343,312 151,924,615 164,903,761 94,858,243 37,595,121 276,437,848 75,148,355 291,218,361 56,880,651 32,163,851 Net Profit on Sale of Investments (Note 2.3) - - - - - 95,214 - - 625,592 - 1,190,628
Other Income (Note 17) - - - - - - - - 1,386,957 718,497
TOTAL 383,398,645 226,343,312 151,924,615 164,903,761 94,858,243 37,690,335 276,437,848 75,148,355 291,843,953 58,267,608 34,072,976
EXPENSES AND LOSSES
Net Loss on Sale of Investments (Net of Net loss on Inter- Scheme sale of investments Rs. 15,810 for Fixed Term Series 50, Rs. 2,585,654 for Fixed Term Series 52, Rs. 548,154 for Fixed Term Series 53, Rs. 1,665,760 for Fixed Term Series 54 and Rs. 3,358,025 for Fixed Term Series 61) (Note 2.3) 23,586 27,555,684 25,828,904 14,488,000 6,321,284 - 6,277,548 5,357,654 - 7,466,560 -
Investment Management and Advisory Fees (Note 3) 9,295,622 9,657,908 7,227,464 10,167,088 4,075,993 1,460,131 8,425,354 2,702,643 6,078,300 330,353 514,044
Transfer Agent Fees and Expenses 779,467 398,005 252,727 272,966 134,997 64,705 412,576 105,010 482,674 104,977 72,118
Trusteeship Fees and Expenses (Note 4) 18,918 10,271 7,399 8,283 5,118 2,370 14,100 4,056 17,682 3,904 2,684
Custodian Fees and Expenses (Note 5) 470,461 250,501 170,798 179,075 91,597 40,819 273,635 73,883 294,813 59,698 35,672
Audit Fees 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Selling and Distribution Expenses - 2,040 2,040 2,040 - - - - 11,785,458 1,844,303 2,629,512
Other Operating Expenses 4,483 27,839 8,863 21,378 8,178 4,965 16,537 8,826 4,983 6,047 11,501
TOTAL 10,597,537 37,907,248 33,503,195 25,143,830 10,642,167 1,577,990 15,424,750 8,257,072 18,668,910 9,820,842 3,270,531
Less: Expenses to be Reimbursed by the Investment Manager (Note 7) - - - - - - - - - 305,845 -
TOTAL 10,597,537 37,907,248 33,503,195 25,143,830 10,642,167 1,577,990 15,424,750 8,257,072 18,668,910 9,514,997 3,270,531
Net Gains for the Period 372,801,108 188,436,064 118,421,420 139,759,931 84,216,076 36,112,345 261,013,098 66,891,283 273,175,043 48,752,611 30,802,445
Net Change in Unrealised Depreciation in Value of Investments (5,139,648) (18,726,611) (1,893,577) (7,664,269) (4,136,264) - (17,323,268) (2,327,068) (7,117,648) - -
Net Gains for the Period 367,661,460 169,709,453 116,527,843 132,095,662 80,079,812 36,112,345 243,689,830 64,564,215 266,057,395 48,752,611 30,802,445
Net Change in Unrealised Appreciation in Value of Investments - - - - 2,854,618 - - 1,744,148 - 3,274,784 4,036,618
Net Surplus including Net change in Unrealised Appreciation/Depreciation in Value of Investments 367,661,460 169,709,453 116,527,843 132,095,662 82,934,430 36,112,345 243,689,830 66,308,363 266,057,395 52,027,395 34,839,063
Transferred to Unrealised Appreciation Reserve - - - - (2,854,618) - - (1,744,148) - (3,274,784) (4,036,618)
Net Surplus for the Period 367,661,460 169,709,453 116,527,843 132,095,662 80,079,812 36,112,345 243,689,830 64,564,215 266,057,395 48,752,611 30,802,445
Net Surplus for the Period 367,661,460 169,709,453 116,527,843 132,095,662 80,079,812 36,112,345 243,689,830 64,564,215 266,057,395 48,752,611 30,802,445
Transfer from Reserve Fund - - - - - - - - - - -
Dividend / Distribution - (3,313,101) (3,852,159) (13,333,629) (9,029,261) (583,359) (6,978,174) (2,168,045) (357,595) (419,237) (2,241,183)
Dividend / Distribution Tax thereon - (606,702) (587,426) (2,679,946) (1,633,965) (90,349) (1,003,933) (385,736) (60,643) (59,374) (325,742)
Balance Transferred to Reserve Fund 367,661,460 165,789,650 112,088,258 116,082,087 69,416,586 35,438,637 235,707,723 62,010,434 265,639,157 48,274,000 28,235,520
Notes to the Financial Statements. 8
The Schedules referred to herein form an integral part of the Financial Statements.
This is the Revenue Account referred to in our report of even date.
PARTHA GHOSH For HSBC Asset Management (IndiPartner HSBC Mutual Fund Private LimitedMembership No. F-55913For and on behalf of PRICE WATERHOUSE Chartered Accountants
VikramaadityaTrustee Director and Chief Executive Officer
Place: Mumbai DirectorDate : 22 July 2009 Trustee
Fund Manager(s)
Fixed Term Series 59
July 07, 2008 to to March 31, 2009
RupeesRupeesRupees RupeesRupees
Fixed Term Series 56 Fixed Term Series 57
For Board of Trustees of
Fixed Term Series 54
May 27, 2008 to to March 31, 2009
RupeesRupees
May 23, 2008 to to March 31, 2009
April 24, 2008 to to March 31, 2009
Rupees
July 25, 2008 to to March 31, 2009
August 13, 2008 to to March 31, 2009
Fixed Term Series 63
Rupees
Fixed Term Series 62
August 22, 2008 to to March 31, 2009
Rupees
Fixed Term Series 66
September 18, 2008 to to March 31, 2009Rupees
HSBC FIXED TERM SERIES 50, HSBC FIXED TERM SERIES 52, HSBC FIXED TERM SERIES 53, HSBC FIXED TERM SERIES 54, HSBC FIXED TERM SERIES 56, HSBC FIXED TERM SERIES 57, HSBC FIXED TERM SERIES 59, HSBC FIXED TERM SERIES 61, HSBC FIXED TERM SERIES 62, HSBC FIXED TERM SERIES 63, HSBC FIXED TERM SERIES 66
Revenue account for the period ended March 31, 2009
July 17, 2008 to to March 31, 2009
September 04, 2008 to to March 31, 2009
April 17, 2008 to to March 31, 2009
Fixed Term Series 50 Fixed Term Series 52 Fixed Term Series 53 Fixed Term Series 61
1
Fixed Term Series 52 Fixed Term Series 53 Fixed Term Series 54 Fixed Term Series 56 Fixed Term Series 59
Period ended March 31, 2009
Rupees
Period ended March 31, 2009
Rupees
Period ended March 31, 2009
Rupees
Period ended March 31, 2009
Rupees
Period ended March 31, 2009
Rupees
A. Cashflow from Operating ActivitiesNet Realised Gains for the period 188,436,064 118,421,420 139,759,931 84,216,076 261,013,098
Adjustments for:- (Increase)/Decrease in Investments at Cost (2,139,200,530) (1,267,126,690) (1,633,556,053) (1,140,702,653) (3,223,887,162)
(Increase)/Decrease in Other Current Assets (69,245,140) (71,211,938) (100,373,167) (44,372,625) (180,888,141)
Increase/(Decrease) in Current Liabilities 17,827,617 21,341,459 19,966,618 6,778,297 10,408,791
Net cash (used in) Operations ( A ) (2,002,181,989) (1,198,575,749) (1,574,202,671) (1,094,080,905) (3,133,353,414)
B Cashflow from Financing Activities Increase/(Decrease) in Unit Capital 2,055,499,232 1,295,162,350 1,644,656,490 1,143,802,751 3,161,781,651
Increase/(Decrease) in Unit Premium (9,820,183) (21,023,598) (13,495,590) (2,069,452) (3,839,134)
Adjustments for:-Increase/(Decrease) in Sundry Creditors for Units Redeemed by Investors - - - - -
(Increase)/Decrease in Sundry Debtors for Units Issued to Investors - - - - -
Dividend / Distribution during the period (3,313,101) (3,852,159) (13,333,629) (9,029,261) (6,978,174)
Dividend / Distribution Tax paid during the period (606,702) (587,426) (2,679,946) (1,633,965) (1,003,933)
Net cash generated from financing activities ( B ) 2,041,759,246 1,269,699,167 1,615,147,325 1,131,070,073 3,149,960,410
Net Increase/(Decrease) in Cash and Cash Equivalents (A+B) 39,577,257 71,123,418 40,944,654 36,989,168 16,606,996
Cash and Cash Equivalents at the Beginning of the Period - - - - -
Cash and Cash Equivalents at the Close of the Period 39,577,257 71,123,418 40,944,654 36,989,168 16,606,996
Notes :March 31, 2009
Rupees March 31, 2009
Rupees March 31, 2009
Rupees March 31, 2009
Rupees March 31, 2009
Rupees
1 Cash and Cash Equivalents include the following :
Balances with Banks : - In Current Account 91,606 160,922 92,471 83,072 98,505
Other Collateralised LendingReverse Repos 19,296,667 34,679,530 19,964,469 18,035,791 8,067,746
Collateralised Borrowing and Lending Obligation 20,188,984 36,282,966 20,887,714 18,870,305 8,440,745
39,577,257 71,123,418 40,944,654 36,989,168 16,606,996
- - - - -
2
3 This is the first year of applicability of Accounting Standard 3 on 'Cash Flow Statement' to the Scheme.
This is the Cash Flow Statement referred to in our report of even date.
PARTHA GHOSH For HSBC Asset Management (India)Partner HSBC Mutual Fund Private LimitedMembership No. F-55913For and on behalf of PRICE WATERHOUSE Chartered Accountants
VikramaadityaTrustee Director and Chief Executive Officer
Director
Place: Mumbai Trustee Fund Manager(s)Date : 22 July 2009
For Board of Trustees of
The above Cash Flow Statement has been prepared under the "Indirect Method" set out in Accounting Standard - 3 on Cash FlowStatements, issued by The Institute of Chartered Accountants of India.
HSBC MUTUAL FUND
Cash Flow Statement for the period ended March 31, 2009
2
SCHEDULE 1
Investments
Market/Fair Value Cost Market/Fair Value Cost Market/Fair Value Cost Market/Fair Value Cost(Notes 2.2, 2.3, 8 , 9, 10, and 13) Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees(Refer to the attached Statement of Portfolio Holding as at March 31, 2009)
Equities
Non Convertible Debentures and Bonds Listed / Awaiting Listing 935,930,420 938,240,522 433,558,450 440,000,000 198,106,423 200,000,000 395,045,615 399,451,845
Privately Placed Non Convertible Debentures / Bonds - - 246,014,133 250,000,000 - - 376,741,962 380,000,000
Commercial Paper / Certificate of Deposit 3,306,432,297 3,306,432,297 - - 5,992,705 5,992,705 - -
Asset Backed Securities 476,161,898 478,991,444 1,440,901,337 1,449,200,530 1,061,133,985 1,061,133,985 854,104,208 854,104,208
TOTAL 4,718,524,615 4,723,664,262 2,120,473,920 2,139,200,530 1,265,233,113 1,267,126,690 1,625,891,785 1,633,556,053
0.00 2.00 0.00 0.00
SCHEDULE 2 March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009Other Current Assets Rupees Rupees Rupees Rupees
Balances with Banks - in Current Account 46,991 91,606 160,922 92,471
Reverse Repos 9,182,530 19,296,667 34,679,530 19,964,469
Collateralised Borrowing and Lending Obligation 9,606,661 20,188,984 36,282,966 20,887,714
Unit Subscription Receivable - - - -
Application Money Pending Allotment - - - -
Inter-Scheme Receivable for 'Switch-In' - - - -
Interest Receivable on :
- Debentures / Bonds 44,519,388 60,919,357 16,060,876 63,743,697
- Asset Backed Securities - 8,320,258 55,141,745 36,623,883
- Reverse Repos 1,182 2,483 4,463 2,569
- Collateralised Borrowing and Lending Obligation 1,177 2,473 4,445 2,559
Receivable from Investment Manager 1,046 568 409 458
Miscellaneous Receivables - - - -
TOTAL 63,358,975 108,822,396 142,335,356 141,317,820
SCHEDULE 3
Deferred Revenue Expenditure (Note 2.8)
Issue and Organisational Costs - - - -
Less : Amortised during the period - - - -
At the end of the period - - - -
March 31, 2009Rupees
March 31, 2009 March 31, 2009March 31, 2009Rupees Rupees Rupees
Fixed Term Series 50 Fixed Term Series 52 Fixed Term Series 53 Fixed Term Series 54
HSBC FIXED TERM SERIES 50, HSBC FIXED TERM SERIES 52, HSBC FIXED TERM SERIES 53, HSBC FIXED TERM SERIES 54, HSBC FIXED TERM SERIES 56, HSBC FIXED TERM SERIES 57, HSBC FIXED TERM SERIES 59, HSBC FIXED TERM SERIES 61, HSBC FIXED TERM SERIES 62, HSBC FIXED TERM SERIES 63, HSBC FIXED TERM SERIES 66
Schedules forming part of the Balance Sheet as at March 31, 2009and the Revenue account for the period ended March 31, 2009
3
SCHEDULE 1
Investments
(Notes 2.2, 2.3, 8 , 9, 10, and 13)(Refer to the attached Statement of Portfolio Holding as at March 31, 2009)
Equities
Non Convertible Debentures and Bonds Listed / Awaiting Listing
Privately Placed Non Convertible Debentures / Bonds
Commercial Paper / Certificate of Deposit
Asset Backed Securities
TOTAL
SCHEDULE 2Other Current Assets
Balances with Banks - in Current Account
Reverse Repos
Collateralised Borrowing and Lending Obligation
Unit Subscription Receivable
Application Money Pending Allotment
Inter-Scheme Receivable for 'Switch-In'
Interest Receivable on :
- Debentures / Bonds
- Asset Backed Securities
- Reverse Repos
- Collateralised Borrowing and Lending Obligation
Receivable from Investment Manager
Miscellaneous Receivables
TOTAL
SCHEDULE 3
Deferred Revenue Expenditure (Note 2.8)
Issue and Organisational Costs
Less : Amortised during the period
At the end of the period
3
Market/Fair Value Cost Market/Fair Value Cost Market/Fair Value Cost Market/Fair Value CostRupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees
407,154,291 410,000,000 - - 1,627,361,861 1,636,383,901 363,130,249 364,000,000
198,709,446 200,000,000 - - 586,902,957 591,212,721 233,542,683 235,000,000
28,725,383 28,725,383 587,472,629 587,472,629 - - - -
504,831,887 501,977,269 - - 992,299,077 996,290,540 243,088,073 241,343,925
1,139,421,007 1,140,702,652 587,472,629 587,472,629 3,206,563,895 3,223,887,162 839,761,005 840,343,925
0.00 0.00 0.00 0.00
March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009Rupees Rupees Rupees Rupees
83,072 44,440 98,505 89,115
18,035,791 1,641,037 8,067,746 19,040,584
18,870,305 1,717,582 8,440,745 19,920,950
- - - -
- - - -
- - - -
44,367,709 - 180,801,753 44,065,741
- - - -
2,321 211 1,038 2,450
2,312 211 1,034 2,441
283 131 2,606 224
- - 81,709 -
81,361,793 3,403,612 197,495,136 83,121,505
- - - -
- - - -
- - - -
March 31, 2009Rupees
Fixed Term Series 57March 31, 2009 March 31, 2009
Rupees Rupees
Fixed Term Series 59Fixed Term Series 56 Fixed Term Series 61March 31, 2009
Rupees
HSBC FIXED TERM SERIES 50, HSBC FIXED TERM SERIES 52, HSBC FIXED TERM SERIES 53, HSBC FIXED TERM SERIES 54, HSBC FIXED TERM SERIES 56, HSBC FIXED TERM SERIES 57, HSBC FIXED TERM SERIES59, HSBC FIXED TERM SERIES 61, HSBC FIXED TERM SERIES 62, HSBC FIXED TERM SERIES 63, HSBC FIXED TERM SERIES 66
Schedules forming part of the Balance Sheet as at March 31, 2009and the Revenue account for the period ended March 31, 2009
SCHEDULE 1
Investments
(Notes 2.2, 2.3, 8 , 9, 10, and 13)(Refer to the attached Statement of Portfolio Holding as at March 31, 2009)
Equities
Non Convertible Debentures and Bonds Listed / Awaiting Listing
Privately Placed Non Convertible Debentures / Bonds
Commercial Paper / Certificate of Deposit
Asset Backed Securities
TOTAL
SCHEDULE 2Other Current Assets
Balances with Banks - in Current Account
Reverse Repos
Collateralised Borrowing and Lending Obligation
Unit Subscription Receivable
Application Money Pending Allotment
Inter-Scheme Receivable for 'Switch-In'
Interest Receivable on :
- Debentures / Bonds
- Asset Backed Securities
- Reverse Repos
- Collateralised Borrowing and Lending Obligation
Receivable from Investment Manager
Miscellaneous Receivables
TOTAL
SCHEDULE 3
Deferred Revenue Expenditure (Note 2.8)
Issue and Organisational Costs
Less : Amortised during the period
At the end of the period
3
Market/Fair Value Cost Market/Fair Value Cost Market/Fair Value CostRupees Rupees Rupees Rupees Rupees Rupees
531,546,970 535,865,753 195,284,722 195,284,722 202,707,639 201,932,100
547,201,134 550,000,000 - - - -
3,256,882,789 3,256,882,789 527,723,554 527,723,554 314,886,920 314,886,920
- - 210,832,460 207,557,677 110,728,066 107,466,986
4,335,630,893 4,342,748,542 933,840,736 930,565,953 628,322,625 624,286,006
0.00 0.00 0.00
March 31, 2009 March 31, 2009 March 31, 2009Rupees Rupees Rupees
116,241 30,268 57,089
25,004,675 6,495,170 11,920,782
26,161,030 6,795,945 12,471,863
- - -
- - -
- - -
38,550,479 5,473,973 6,349,316
- - -
3,218 836 1,534
3,205 833 1,528
978 306,061 148
- - -
89,839,826 19,103,086 30,802,260
- - -
- - -
- - -
Fixed Term Series 62
Rupees Rupees Rupees
and the Revenue account for the period ended March 31, 2009
Fixed Term Series 66March 31, 2009March 31, 2009
Fixed Term Series 63
HSBC FIXED TERM SERIES 50, HSBC FIXED TERM SERIES 52, HSBC FIXED TERM SERIES 53, HSBC FIXED TERM SERIES 54, HSBC FIXED TERM SERIES 56, HSBC FIXED TERM SERIES 57, HSBC FIXED TERM SERIES 59, HSBC FIXED TERM SERIES 61, HSBC FIXED TERM SERIES 62, HSBC FIXED TERM SERIES 63, HSBC FIXED
TERM SERIES 66
Schedules forming part of the Balance Sheet as at March 31, 2009
March 31, 2009
March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009
SCHEDULE 4 Rupees Units Rupees Units Rupees Units Rupees Units
Unit Capital
Regular Plan
Growth Option
Issued and Subscribed
Units of Rs. 10 each fully paid up 210,189,948 21,018,994.800 1,056,151,207 105,615,120.708 694,681,327 69,468,132.732 1,183,140,774 118,314,077.412
Outstanding
Initial Issue and Subscription 210,189,948 21,018,994.800 1,056,151,207 105,615,120.708 694,681,327 69,468,132.732 1,183,140,774 118,314,077.412
Issued during the period - - 12,417,907 1,241,790.745 8,700,000 870,000.000 3,000,000 300,000.000
210,189,948 21,018,994.800 1,068,569,114 106,856,911.453 703,381,327 70,338,132.732 1,186,140,774 118,614,077.412
Redeemed during the period - - 239,481,008 23,948,100.814 159,734,132 15,973,413.236 213,018,024 21,301,802.404
At the end of the period 210,189,948 21,018,994.800 829,088,106 82,908,810.639 543,647,195 54,364,719.496 973,122,750 97,312,275.008
Dividend Option
Issued and Subscribed
Units of Rs. 10 each fully paid up 31,965,000 3,196,500.000 75,775,940 7,577,593.998 78,904,000 7,890,400.000
Outstanding
Initial Issue and Subscription 31,965,000 3,196,500.000 75,775,940 7,577,593.998 78,904,000 7,890,400.000
Issued during the period 3,150,948 315,094.780 4,048,423 404,842.256 4,018,291 401,829.051
35,115,948 3,511,594.780 79,824,363 7,982,436.254 82,922,291 8,292,229.051
Redeemed during the period 11,003,742 1,100,374.164 5,041,784 504,178.393 12,042,894 1,204,289.383
At the end of the period 24,112,206 2,411,220.616 74,782,579 7,478,257.861 70,879,397 7,087,939.668
Institutional Plan
Growth Option
Issued and Subscribed
Units of Rs. 10 each fully paid up 4,202,291,519 420,229,151.872 1,608,665,019 160,866,501.944 1,411,588,099 141,158,809.866 857,781,326 85,778,132.620
Outstanding
Initial Issue and Subscription 4,202,291,519 420,229,151.872 1,608,665,019 160,866,501.944 1,411,588,099 141,158,809.866 857,781,326 85,778,132.620
Issued during the period - - 46,200,000 4,620,000.000 - - - -
4,202,291,519 420,229,151.872 1,654,865,019 165,486,501.944 1,411,588,099 141,158,809.866 857,781,326 85,778,132.620
Redeemed during the period - - 479,552,799 47,955,279.900 734,855,523 73,485,552.302 430,636,067 43,063,606.738
At the end of the period 4,202,291,519 420,229,151.872 1,175,312,220 117,531,222.044 676,732,576 67,673,257.564 427,145,259 42,714,525.882
Dividend Option
Issued and Subscribed
Units of Rs. 10 each fully paid up 395,000,000 39,500,000.000 164,196,113 16,419,611.304
Outstanding
Initial Issue and Subscription 39,500,000 3,950,000 164,196,113 16,419,611.304
Issued during the period 1,762,132 176,213.169 9,312,971 931,297.070
41,262,132 4,126,213.169 173,509,084 17,350,908.374
Redeemed during the period 14,275,432 1,427,543.195 - -
At the end of the period 26,986,700 2,698,669.974 173,509,084 17,350,908.374
TOTAL 4,412,481,467 441,248,146.672 2,055,499,232 205,549,923.273 1,295,162,350 129,516,234.921 1,644,656,490 164,465,648.932
HSBC FIXED TERM SERIES 50, HSBC FIXED TERM SERIES 52, HSBC FIXED TERM SERIES 53, HSBC FIXED TERM SERIES 54, HSBC FIXED TERM SERIES 56, HSBC FIXED TERM SERIES 57, HSBC FIXED TERM SERIES 59, HSBC FIXED TERM SERIES 61, HSBC FIXED TERM SERIES 62, HSBC FIXED TERM SERIES 63, HSBC FIXED TERM SERIES 66
Schedule forming part of the Balance Sheet as at March 31, 2009
Fixed Term Series 50 Fixed Term Series 52 Fixed Term Series 53 Fixed Term Series 54
4
SCHEDULE 4
Unit Capital
Regular Plan
Growth Option
Issued and Subscribed
Units of Rs. 10 each fully paid up
Outstanding
Initial Issue and Subscription
Issued during the period
Redeemed during the period
At the end of the period
Dividend Option
Issued and Subscribed
Units of Rs. 10 each fully paid up
Outstanding
Initial Issue and Subscription
Issued during the period
Redeemed during the period
At the end of the period
Institutional Plan
Growth Option
Issued and Subscribed
Units of Rs. 10 each fully paid up
Outstanding
Initial Issue and Subscription
Issued during the period
Redeemed during the period
At the end of the period
Dividend Option
Issued and Subscribed
Units of Rs. 10 each fully paid up
Outstanding
Initial Issue and Subscription
Issued during the period
Redeemed during the period
At the end of the period
TOTAL
4
March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009
Rupees Units Rupees Units Rupees Units Rupees Units
375,493,598 37,549,359.829 103,072,467 10,307,246.746 569,582,355 56,958,235.528 241,723,588 24,172,358.802
375,493,598 37,549,359.829 103,072,467 10,307,246.746 569,582,355 56,958,235.528 241,723,588 24,172,358.802
6,086,361 608,636.080 - - 9,786,000 978,600.000 1,800,000 180,000.000
381,579,959 38,157,995.909 103,072,467 10,307,246.746 579,368,355 57,936,835.528 243,523,588 24,352,358.802
77,172,615 7,717,261.460 4,200,952 420,095.215 101,608,154 10,160,815.394 29,442,392 2,944,239.211
304,407,344 30,440,734.449 98,871,515 9,887,151.531 477,760,201 47,776,020.134 214,081,196 21,408,119.591
42,729,929 4,272,992.870 13,412,208 1,341,220.848 42,121,000 4,212,100.000 31,772,676 3,177,267.580
42,729,929 4,272,992.870 13,412,208 1,341,220.848 42,121,000 4,212,100.000 31,772,676 3,177,267.580
1,907,269 190,726.875 583,358 58,335.752 2,210,442 221,044.178 1,628,562 162,856.243
44,637,198 4,463,719.745 13,995,566 1,399,556.600 44,331,442 4,433,144.178 33,401,238 3,340,123.823
1,410,195 141,019.492 1,507,407 150,740.740 5,694,325 569,432.505 1,517,301 151,730.090
43,227,003 4,322,700.253 12,488,159 1,248,815.860 38,637,117 3,863,711.673 31,883,937 3,188,393.733
760,056,124 76,005,612.351 443,376,150 44,337,614.974 2,816,567,257 281,656,725.736 853,511,128 85,351,112.810
760,056,124 76,005,612.351 443,376,150 44,337,614.974 2,816,567,257 281,656,725.736 853,511,128 85,351,112.810
54,000,000 5,400,000.000 - - - - - -
814,056,124 81,405,612.351 443,376,150 44,337,614.974 2,816,567,257 281,656,725.736 853,511,128 85,351,112.810
179,500,000 17,950,000.000 - - 256,051,997 25,605,199.701 255,000,000 25,500,000.000
634,556,124 63,455,612.351 443,376,150 44,337,614.974 2,560,515,260 256,051,526.035 598,511,128 59,851,112.810
160,908,882 16,090,888.223 80,000,000 8,000,000.000 10,000,000 1,000,000.000
160,908,882 16,090,888.223 80,000,000 8,000,000.000 10,000,000 1,000,000.000
61,686,279 6,168,627.946 4,869,073 486,907.255 536,814 53,681.411
222,595,161 22,259,516.169 84,869,073 8,486,907.255 10,536,814 1,053,681.411
60,982,881 6,098,288.167 - - - -
161,612,280 16,161,228.002 84,869,073 8,486,907.255 10,536,814 1,053,681.411
1,143,802,751 114,380,275.055 554,735,824 55,473,582.365 3,161,781,651 316,178,165.097 855,013,075 85,501,307.545
Schedule forming part of the Balance Sheet as at March 31, 2009
Fixed Term Series 59 Fixed Term Series 61
HSBC FIXED TERM SERIES 50, HSBC FIXED TERM SERIES 52, HSBC FIXED TERM SERIES 53, HSBC FIXED TERM SERIES 54, HSBC FIXED TERM SERIES 56, HSBC FIXED TERM SERIES 57, HSBC FIXED TERM SERIES 59, HSBC FIXED TERM SERIES 61, HSBC FIXED TERM SERIES 62, HSBC FIXED TERM SERIES 63, HSBC FIXED TERM SERIES 66
Fixed Term Series 57Fixed Term Series 56
SCHEDULE 4
Unit Capital
Regular Plan
Growth Option
Issued and Subscribed
Units of Rs. 10 each fully paid up
Outstanding
Initial Issue and Subscription
Issued during the period
Redeemed during the period
At the end of the period
Dividend Option
Issued and Subscribed
Units of Rs. 10 each fully paid up
Outstanding
Initial Issue and Subscription
Issued during the period
Redeemed during the period
At the end of the period
Institutional Plan
Growth Option
Issued and Subscribed
Units of Rs. 10 each fully paid up
Outstanding
Initial Issue and Subscription
Issued during the period
Redeemed during the period
At the end of the period
Dividend Option
Issued and Subscribed
Units of Rs. 10 each fully paid up
Outstanding
Initial Issue and Subscription
Issued during the period
Redeemed during the period
At the end of the period
TOTAL
4
March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009
Rupees Units Rupees Units Rupees Units
4,031,121,000 403,112,100.032 270,946,765 27,094,676.541 418,275,321 41,827,532.076
4,031,121,000 403,112,100.032 270,946,765 27,094,676.541 418,275,321 41,827,532.076
- - - - 17,200,000 1,720,000.000
4,031,121,000 403,112,100.032 270,946,765 27,094,676.541 435,475,321 43,547,532.076
500,000 50,000.000 20,874,351 2,087,435.146 26,447,128 2,644,712.835
4,030,621,000 403,062,100.032 250,072,414 25,007,241.395 409,028,193 40,902,819.241
9,320,000 932,000.000 13,205,531 1,320,553.126 65,176,697 6,517,669.671
9,320,000 932,000.000 13,205,531 1,320,553.126 65,176,697 6,517,669.671
357,587 35,758.678 1,417,707 141,770.681 17,456,888 1,745,688.784
9,677,587 967,758.678 14,623,238 1,462,323.807 82,633,585 8,263,358.455
4,096,637 409,663.747 3,703,048 370,304.811 27,204,703 2,720,470.299
5,580,950 558,094.931 10,920,190 1,092,018.996 55,428,882 5,542,888.156
130,100,000 13,010,000.000 728,455,541 72,845,554.072 151,500,000 15,150,000.000
130,100,000 13,010,000.000 728,455,541 72,845,554.072 151,500,000 15,150,000.000
- - - - 10,000,000 1,000,000.000
130,100,000 13,010,000.000 728,455,541 72,845,554.072 161,500,000 16,150,000.000
10,100,000 1,010,000.000 90,000,000 9,000,000.000 - -
120,000,000 12,000,000.000 638,455,541 63,845,554.072 161,500,000 16,150,000.000
10,000,000 1,000,000.000
10,000,000 1,000,000.000
- -
10,000,000 1,000,000.000
10,000,000 1,000,000.000
- -
4,156,201,950 415,620,194.963 899,448,145 89,944,814.463 625,957,075 62,595,707.397
Fixed Term Series 62
Schedule forming part of the Balance Sheet as at March 31, 2009
HSBC FIXED TERM SERIES 50, HSBC FIXED TERM SERIES 52, HSBC FIXED TERM SERIES 53, HSBC FIXED TERM SERIES 54, HSBC FIXED TERM SERIES 56, HSBC FIXED TERM SERIES 57, HSBC FIXED TERM SERIES 59, HSBC FIXED TERM SERIES 61, HSBC FIXED TERM SERIES 62, HSBC FIXED TERM SERIES 63, HSBC FIXED TERM SERIES 66
Fixed Term Series 63 Fixed Term Series 66
SCHEDULE 5
Reserves and Surplus Total Total Total Total Total Total Total Total Total Total Total
Unit Premium Reserve (Note 2.6 )
Added during the period - (9,820,183) (21,023,598) (13,495,590) (2,069,452) (123,698) (3,839,134) (3,516,069) (201,184) (665,825) (275,915)
At the end of the period - (9,820,183) (21,023,598) (13,495,590) (2,069,452) (123,698) (3,839,134) (3,516,069) (201,184) (665,825) (275,915)
Unrealised Appreciation Reserve
Net change in Unrealised Appreciation in Value of Investments Transferred from Revenue Account (Note 12) - - - - 2,854,618 - - 1,744,148 - 3,274,784 4,036,618
At the end of the period - - - - 2,854,618 - - 1,744,148 - 3,274,784 4,036,618
Reserve Fund
Balance Transferred from Revenue Account 367,661,460 165,789,650 112,088,258 116,082,087 69,416,586 35,438,637 235,707,723 62,010,434 265,639,157 48,274,000 28,235,520
At the end of the period 367,661,460 165,789,650 112,088,258 116,082,087 69,416,586 35,438,637 235,707,723 62,010,434 265,639,157 48,274,000 28,235,520
TOTAL 367,661,460
* 155,969,467
* 91,064,660
* 102,586,497
* 70,201,752 * 35,314,939 * 231,868,589 * 60,238,513 * 265,437,973 * 50,882,959
* 31,996,223
*
* The share of the Plans / Options of the Reserves and Surplus is as follows : March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009Regular Option Growth Option : Rs. 17,513,670 62,476,869 39,136,754 68,501,844 20,516,163 6,036,246 34,019,723 14,986,172 257,481,952 13,604,043 22,521,350 Dividend Option : Rs. - 163,218 764,574 372,421 552,932 60,163 248,981 240,013 30,917 96,989 582,586 Total (A) 17,513,670 62,640,087 39,901,328 68,874,265 21,069,095 6,096,409 34,268,704 15,226,185 257,512,869 13,701,032 23,103,936
Institutional Option Growth Option : Rs. 350,147,791 93,141,366 51,163,332 32,645,673 46,735,476 29,218,530 197,021,510 44,923,637 7,925,104 37,181,927 8,892,287 Dividend Option : Rs. - 188,014 - 1,066,559 2,397,181 - 578,375 88,691 - - - Total (B) 350,147,791 93,329,380 51,163,332 33,712,232 49,132,657 29,218,530 197,599,885 45,012,328 7,925,104 37,181,927 8,892,287
Total (A+B) : Rs. 367,661,461 155,969,467 91,064,660 102,586,497 70,201,752 35,314,939 231,868,589 60,238,513 265,437,973 50,882,959 31,996,223
Fixed Term Series 61
March 31, 2009
Fixed Term Series 59
March 31, 2009
Fixed Term Series 57
March 31, 2009
Fixed Term Series 56
March 31, 2009
Rupees
March 31, 2009
Rupees
March 31, 2009
Rupees
Fixed Term Series 50
March 31, 2009
Rupees RupeesRupees RupeesRupees
Fixed Term Series 54Fixed Term Series 52 Fixed Term Series 53
March 31, 2009
Fixed Term Series 62
March 31, 2009 March 31, 2009
Rupees
HSBC FIXED TERM SERIES 50, HSBC FIXED TERM SERIES 52, HSBC FIXED TERM SERIES 53, HSBC FIXED TERM SERIES 54, HSBC FIXED TERM SERIES 56, HSBC FIXED TERM SERIES 57, HSBC FIXED TERM SERIES 59, HSBC FIXED TERM SERIES 61, HSBC FIXED TERM SERIES 62, HSBC FIXED TERM SERIES 63, HSBC FIXED TERM SERIES 66
Schedules forming part of the Balance Sheet as at March 31, 2009
and the Revenue account for the period ended March 31, 2009
Rupees
Fixed Term Series 66
March 31, 2009
Rupees
Fixed Term Series 63
5
SCHEDULE 6
Current Liabilities and Provisions
Fixed Term Series 50 Fixed Term Series 52 Fixed Term Series 53 Fixed Term Series 54 Fixed Term Series 56 Fixed Term Series 57
March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009Current Liabilities Rupees Rupees Rupees Rupees Rupees Rupees
Investment Management and Advisory Fees 1,556,366 4,466,971 3,043,613 6,532,414 2,593,270 678,875
Transfer Agent Fees and Expenses 87,709 40,521 25,439 32,086 22,353 10,825
Trusteeship Fees and Expenses - - - - - -
Custodian Fees and Expenses 87,091 39,285 23,925 30,509 21,468 10,836
Audit Fees 5,000 5,000 5,000 5,000 5,000 5,000
Selling and Distribution Expenses - - - - - -
Load Payable - 13,220,696 18,232,567 13,319,592 4,129,556 116,489
Sundry Payables 4,496 55,144 10,915 47,017 6,650 3,453
TOTAL 1,740,662 17,827,617 21,341,459 19,966,618 6,778,297 825,478
SCHEDULE 7 Fixed Term Series 50 Fixed Term Series 52 Fixed Term Series 53 Fixed Term Series 54 Fixed Term Series 56 Fixed Term Series 57
Interest and Discount (Note 2.4) April 17, 2008 to April 24, 2008 to May 23, 2008 to May 27, 2008 to July 25, 2008 to August 13, 2008 to
March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009Rupees Rupees Rupees Rupees Rupees Rupees
Debentures / Bonds 80,919,024 69,782,968 50,004,999 90,340,801 47,628,818 38,341
Asset Backed Securities 42,441,171 126,060,325 91,761,275 73,891,721 34,091,626 -
Commercial Paper / Certificate of Deposit 257,804,436 30,516,909 13,530,839 613,045 12,282,051 36,407,297
Reverse Repos 523,810 1,076,171 978,563 927,129 754,477 1,004,138
Collateralised Borrowing and Lending Obligation 1,713,399 99,011 267,999 1,977,668 101,271 147,124
Others (Refer note 15) (3,195) (1,192,072) (4,619,060) (2,846,603) - (1,779)
383,398,645 226,343,312 151,924,615 164,903,761 94,858,243 37,595,121
HSBC FIXED TERM SERIES 50, HSBC FIXED TERM SERIES 52, HSBC FIXED TERM SERIES 53, HSBC FIXED TERM SERIES 54, HSBC FIXED TERM SERIES 56, HSBC FIXED TERM SERIES 57, HSBC FIXED TERM SERIES 59, HSBC FIXED TERM SERIES 61, HSBC FIXED TERM SERIES 62, HSBC FIXED TERM SERIES 63, HSBC FIXED TERM SERIES 66
Schedules forming part of the Balance Sheet as at March 31, 2009
and the Revenue Account for the period ended March 31, 2009
6
SCHEDULE 6
Current Liabilities and Provisions
Current Liabilities
Investment Management and Advisory Fees
Transfer Agent Fees and Expenses
Trusteeship Fees and Expenses
Custodian Fees and Expenses
Audit Fees
Selling and Distribution Expenses
Load Payable
Sundry Payables
TOTAL
SCHEDULE 7
Interest and Discount (Note 2.4)
Debentures / Bonds
Asset Backed Securities
Commercial Paper / Certificate of Deposit
Reverse Repos
Collateralised Borrowing and Lending Obligation
Others (Refer note 15)
6
Fixed Term Series 59 Fixed Term Series 61 Fixed Term Series 62 Fixed Term Series 63 Fixed Term Series 66
March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009Rupees Rupees Rupees Rupees Rupees
3,095,513 1,832,175 1,680,187 52,084 119,744
62,785 16,918 81,093 17,448 12,094
- - - - -
59,734 15,958 80,425 17,240 11,777
5,000 5,000 5,000 5,000 5,000
- - 1,683,793 230,007 374,383
7,144,960 5,752,862 295,969 2,285,112 640,027
40,799 8,009 4,329 5,828 8,562
10,408,791 7,630,922 3,830,796 2,612,719 1,171,587
Fixed Term Series 59 Fixed Term Series 61 Fixed Term Series 62 Fixed Term Series 63 Fixed Term Series 66
July 07, 2008 to July 17, 2008 to August 22, 2008 to September 04, 2008 to September 18, 2008 to
March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009Rupees Rupees Rupees Rupees Rupees
193,377,872 55,747,718 78,134,350 2,026,136 9,484,377
68,930,659 15,529,004 - 13,230,650 6,196,490
14,350,455 3,784,543 210,911,697 41,114,986 15,948,728
1,329,333 364,501 1,022,451 343,423 288,846
1,797,920 114,610 1,149,863 165,456 245,410
(3,348,391) (392,021) - - -
276,437,848 75,148,355 291,218,361 56,880,651 32,163,851
HSBC FIXED TERM SERIES 50, HSBC FIXED TERM SERIES 52, HSBC FIXED TERM SERIES 53, HSBC FIXED TERM SERIES 54, HSBC FIXED TERM SERIES 56, HSBC FIXED TERM SERIES 57, HSBC FIXED TERM SERIES 59, HSBC FIXED TERM SERIES 61, HSBC FIXED TERM SERIES 62, HSBC FIXED TERM SERIES 63, HSBC FIXED TERM SERIES 66
Schedules forming part of the Balance Sheet as at March 31, 2009
and the Revenue Account for the period ended March 31, 2009
Description Quantity Market / Fair Value
Rupees
HSBC FIXED TERM SERIES 50
Non-Convertible Debentures / Bonds Listed / Awaiting listing (19.84 %)Finance (100 %)
9.05% Infrastructure Development Finance Company Limited 2009 $ @ 499 497,229,163 9.70% GE Capital Services India Limited 2009 $ 440 438,701,257
935,930,420 Total (Cost Rs. 938,240,522) 935,930,420
Asset Backed Securities (10.09 %)Finance & Investments (100 %)
Corporate Loan Securitisation Series 7 Trust 2009 Series A2 (DLF ) PTC 2009 * @ 43 476,161,898 476,161,898
Total (Cost Rs. 478,991,444) 476,161,898
Commercial Papers/Certificate of Deposits (70.07 %)Certificate of Deposits (86.49 %)
ICICI Bank Limited 2009 $ @ 7,200 714,903,651 National Bank For Agricultural and Rural Development Limited 2009 $ 7,200 714,192,828 ABN Amro Bank 2009 $ 7,000 695,142,948 Kotak Mahindra Bank Limited 2009 $ 5,000 496,461,736 Exim Bank Limited 2009 $ @ 2,180 216,174,687 State Bank of Hyderabad 2009 $ @ 230 22,908,858
2,859,784,709 Commercial Papers (13.51 %)
ICICI Securities Limited 2009 $ @ 600 297,942,236 ICICI Securities Limited 2009 $ @ 300 148,705,351
446,647,587 Total (Cost Rs. 3,306,432,298) 3,306,432,297 TOTAL INVESTMENTS (Cost Rs. 4,723,664,262) 4,718,524,615
HSBC FIXED TERM SERIES 52
Non-Convertible Debentures / Bonds Listed / Awaiting listing (20.45 %)Finance (43.13 %)
9.65% Deutsche Postbank Home Finance Limited 2012 $ 190 187,005,451 187,005,451
Finance & Term Lending (56.87 %)9.83% Kotak Mahindra Prime Limited 2009 $ 250 246,552,999
246,552,999 Total (Cost Rs. 440,000,000) 433,558,450
Privately Placed / Unlisted Non-Convertible Debentures / Bonds (11.60 %)Engineering (100 %)
9.90% SREI Equipment Finance Private Limited 2009 * 2,500 246,014,133 246,014,133
Total (Cost Rs. 250,000,000) 246,014,133
Asset Backed Securities (67.95 %)
Finance & Investments (82.95 %)IWH Loan Trust Series A1 (Indiabulls Financial Services) PTC 2009 * 54 591,224,249 Corporate Loan Securitisation Series 7 Trust 2009 Series A2 (DLF ) PTC 2009 * @ 37 409,720,703 Corporate Loan Securitisation Series XXXIII Trust 2006 (Shriram Transport Finance Company ) PTC 2009 * 10 99,910,808 Corporate Loan Securitisation Series 8 Trust 2009 Series A2 (DLF ) PTC 2009 * @ 8 94,376,271
1,195,232,031 Finance & Term Lending (17.05 %)
ISH Loan Trust Series A2 (Simplex Infrastructure) PTC 2009 * 25 245,669,306 245,669,306
Total (Cost Rs. 1,449,200,530) 1,440,901,337 TOTAL INVESTMENTS (Cost Rs. 2,139,200,530) 2,120,473,920
HSBC FIXED TERM SERIES 53
Non-Convertible Debentures / Bonds Listed / Awaiting listing (15.66 %)Finance (100 %)
9.63% Deutsche Postbank Home Finance Limited 2009 $ 150 148,209,986 9.55% GRUH Finance Limited 2009 $ 50 49,896,437
198,106,423
Total (Cost Rs. 200,000,000) 198,106,423
Asset Backed Securities (83.87 %)Finance & Investments (59.66 %)
Indian Loans Receivables Trust May 2008 Series A2 (DLF ) PTC 2009 * @ 429 429,791,964 Corporate Loan Securitisation Series XXIX Trust 2006 (Shriram Transport Finance Company ) PTC 2009 * 10 103,403,455 Corporate Loan Securitisation Series XXXIII Trust 2006 (Shriram Transport Finance Company ) PTC 2009 * 10 99,910,808
633,106,227 Finance & Term Lending (40.34 %)
Corporate Debt Trust 2008-09 Series 5 A1 (LIC Housing Finance) PTC 2009 * 47 428,027,758 428,027,758
Total (Cost Rs. 1,061,133,984) 1,061,133,985
Commercial Papers/Certificate of Deposits (0.47 %)Certificate of Deposits (100 %)
State Bank of Bikaner and Jaipur $ @ 60 5,992,705 5,992,705
Total (Cost Rs. 5,992,705) 5,992,705 TOTAL INVESTMENTS (Cost Rs. 1,267,126,690) 1,265,233,113
Statement of Portfolio Holdings as at March 31, 2009
HSBC FIXED TERM SERIES 50,HSBC FIXED TERM SERIES 52,HSBC FIXED TERM SERIES 53,HSBC FIXED TERM SERIES 54,HSBC FIXED TERM SERIES 56,HSBC FIXED TERM SERIES 57,HSBC FIXED TERM SERIES 59,HSBC FIXED TERM SERIES 61,HSBC FIXED TERM SERIES 62,HSBC FIXED TERM SERIES
63,HSBC FIXED TERM SERIES 66
HSBC MUTUAL FUND
for the year ended March 31, 2009)
(Referred to in Schedule 1 to the Balance Sheet as at March 31, 2009 and the Revenue Account
7
Description Quantity Market / Fair Value
Rupees
Statement of Portfolio Holdings as at March 31, 2009
HSBC FIXED TERM SERIES 50,HSBC FIXED TERM SERIES 52,HSBC FIXED TERM SERIES 53,HSBC FIXED TERM SERIES 54,HSBC FIXED TERM SERIES 56,HSBC FIXED TERM SERIES 57,HSBC FIXED TERM SERIES 59,HSBC FIXED TERM SERIES 61,HSBC FIXED TERM SERIES 62,HSBC FIXED TERM SERIES
63,HSBC FIXED TERM SERIES 66
for the year ended March 31, 2009)
(Referred to in Schedule 1 to the Balance Sheet as at March 31, 2009 and the Revenue Account
HSBC FIXED TERM SERIES 54
Non-Convertible Debentures / Bonds Listed / Awaiting listing (24.30 %)Consumer Finance (50.03 %)
10.40% CitiFinancial Consumer Finance India Limited 2009 $ 200 197,653,993 197,653,993
Finance (25.01 %)9.63% Deutsche Postbank Home Finance Limited 2009 $ 100 98,806,658
98,806,658 Finance & Term Lending (24.96 %)
10.33% Kotak Mahindra Prime Limited 2009 $ 100 98,584,964 98,584,964
Total (Cost Rs. 399,451,845) 395,045,615
Privately Placed / Unlisted Non-Convertible Debentures / Bonds (23.17 %)Finance (100.00 %)
10.40% SREI Infrastructure Finance Limited 2009 * 3,800 376,741,962 376,741,962
Total (Cost Rs. 380,000,000) 376,741,962
Asset Backed Securities (52.53 %)Finance & Investments (100 %)
Indian Loans Receivables Trust May 2008 Series A2 (DLF ) PTC 2009 * @ 450 450,830,732 Corporate Loan Securitisation Series XXIX Trust 2006 (Shriram Transport Finance Company ) PTC 2009 * 39 403,273,476
854,104,208 Total (Cost Rs. 854,104,208) 854,104,208 TOTAL INVESTMENTS (Cost Rs. 2,487,660,260) 1,625,891,785
HSBC FIXED TERM SERIES 56
Non-Convertible Debentures / Bonds Listed / Awaiting listing (35.73 %)
Finance (51.25 %)11.76% Sundaram Finance Limited 2009 $ @ 210 208,686,676
208,686,676 Finance & Term Lending (48.75 %)
11.85% Kotak Mahindra Prime Limited 2009 $ 100 99,408,743 12.15% Kotak Mahindra Prime Limited 2009 $ 100 99,058,872
198,467,615 Total (Cost Rs. 410,000,000) 407,154,291
Privately Placed / Unlisted Non-Convertible Debentures / Bonds (17.44 %)Finance (100 %)
11.90% GE Capital Services India Limited 2009 * 200 198,709,446 198,709,446
Total (Cost Rs. 200,000,000) 198,709,446
Asset Backed Securities (44.31 %)Finance & Investments (100 %)
Corporate Loan Securitisation Series XXXVII Trust 2006 (Shriram Transport Finance Company) PTC 2009 * 24 266,314,687 Indian Corporate Loan Securitisation Trust 2008 Series 33 (L&T Finance) PTC 2009 * @ 25 238,517,200
504,831,887 Total (Cost Rs. 501,977,269) 504,831,887
Commercial Papers/Certificate of Deposits (2.52 %)Certificate of Deposits (100.00 %)
State Bank of Bikaner and Jaipur 2009 $ @ 300 28,725,383 28,725,383
Total (Cost Rs. 28,725,383) 28,725,383 TOTAL INVESTMENTS (Cost Rs. 1,140,702,652) 1,139,421,007
HSBC FIXED TERM SERIES 57
Commercial Papers/Certificate of Deposits (100 %)Certificate of Deposits (100 %)
State Bank of Bikaner and Jaipur $ @ 1,190 113,944,021 IDBI Bank Limited $ @ 1,000 95,685,053 The Jammu And Kashmir Bank Limited $ @ 1,000 95,663,557 ICICI Bank Limited $ @ 1,000 95,647,380 State Bank of Hyderabad $ @ 1,000 95,577,890 Oriental Bank of Commerce $ 950 90,954,728
587,472,629
Total (Cost Rs. 587,472,629) 587,472,629 TOTAL INVESTMENTS (Cost Rs. 587,472,629) 587,472,629
HSBC FIXED TERM SERIES 59
Privately Placed / Unlisted Non-Convertible Debentures / Bonds (18.30 %)
Finance (100 %)11.60% GE Capital Services India Limited 2009 * 590 586,902,957
586,902,957 Total (Cost Rs. 591,212,721) 586,902,957
Non-Convertible Debentures / Bonds Listed / Awaiting listing (50.75 %)Consumer Non Durables (30.53 %)
11.75% Barclays Investments and Loans India Limited 2009 $ 500 496,759,835 496,759,835
Finance (15.22 %)11.65% Deutsche Postbank Home Finance Limited 2013 $ 250 247,715,819
247,715,819 Finance & Term Lending (54.25 %)
12.15% Kotak Mahindra Prime Limited 2009 $ 250 247,933,422 11.65% IL & FS Limited 2009 $ 236,000 238,007,034 11.70% Kotak Mahindra Prime Limited 2009 $ 200 198,549,149 11.70% Kotak Mahindra Prime Limited 2009 $ 100 99,293,232 12.05% Kotak Mahindra Prime Limited 2009 $ 100 99,103,370
882,886,207 Total (Cost Rs. 1,636,383,901) 1,627,361,861
Asset Backed Securities (30.95 %)Finance & Investments (100 %)
Corporate Loan Securitisation Series 24 Trust 2009 (Shriram Transport Finance Company) PTC 2009 * 50 538,848,153 Corporate Debt Trust 2008 -09 Series 9 (Bajaj Auto Finance) PTC 2009 * 25 239,533,419 Loans Receivable Trust July 2008 Series A2 (Shriram Transport Finance Company )PTC 2009 * 22 213,917,505
992,299,077 Total (Cost Rs. 996,290,540) 992,299,077 TOTAL INVESTMENTS (Cost Rs. 3,223,887,162) 3,206,563,895
Description Quantity Market / Fair Value
Rupees
Statement of Portfolio Holdings as at March 31, 2009
HSBC FIXED TERM SERIES 50,HSBC FIXED TERM SERIES 52,HSBC FIXED TERM SERIES 53,HSBC FIXED TERM SERIES 54,HSBC FIXED TERM SERIES 56,HSBC FIXED TERM SERIES 57,HSBC FIXED TERM SERIES 59,HSBC FIXED TERM SERIES 61,HSBC FIXED TERM SERIES 62,HSBC FIXED TERM SERIES
63,HSBC FIXED TERM SERIES 66
for the year ended March 31, 2009)
(Referred to in Schedule 1 to the Balance Sheet as at March 31, 2009 and the Revenue Account
HSBC FIXED TERM SERIES 61
Privately Placed / Unlisted Non-Convertible Debentures / Bonds (27.81 %)Finance (53.24 %)
11.60% GE Capital Services India Limited 2009 * 125 124,343,847 124,343,847
Finance & Term Lending (46.76 %)11.50% Kotak Mahindra Prime Limited 2009 * 110 109,198,836
109,198,836 Total (Cost Rs. 235,000,000) 233,542,683
Non-Convertible Debentures / Bonds Listed / Awaiting listing (43.24 %)Finance (52.00 %)
11.76% Sundaram Finance Limited 2009 $ @ 190 188,811,755 188,811,755
Finance & Term Lending (48.00 %)11.65% IL & FS Limited 2009 $ 114,000 114,969,499 11.80% Kotak Mahindra Prime Limited 2009 $ 60 59,348,995
174,318,494 Total (Cost Rs. 364,000,000) 363,130,249
Asset Backed Securities (28.95 %)Finance & Investments (100 %)
Loans Receivable Trust July 2008 Series A2 (Shriram Transport Finance Company) PTC 2009 * 25 243,088,073 243,088,073
Total (Cost Rs. 241,343,925) 243,088,073 TOTAL INVESTMENTS (Cost Rs. 840,343,925) 839,761,005
HSBC FIXED TERM SERIES 62
Privately Placed / Unlisted Non-Convertible Debentures / Bonds (12.62 %)Finance & Investments (54.51 %)
12.15% GE Money Financial Services Limited 2009 * 300 298,260,728 298,260,728
Finance & Term Lending (45.49 %)12.35% Kotak Mahindra Prime Limited 2009 * 250 248,940,406
248,940,406
Total (Cost Rs. 550,000,000) 547,201,134
Non-Convertible Debentures / Bonds Listed / Awaiting listing (12.26 %)Finance & Term Lending (100 %)
12.35% Tata Capital Limited 2009 $ @ 500 531,546,970 531,546,970
Total (Cost Rs. 535,865,753) 531,546,970
Commercial Papers/Certificate of Deposits (75.12 %)Certificate of Deposits (66.26 %)
IDBI Bank Limited 2009 $ @ 9,000 861,165,477 Oriental Bank of Commerce 2009 $ 8,550 818,623,160 ICICI Bank Limited 2009 $ @ 5,000 478,236,902
2,158,025,539 Commercial Papers (33.74 %)
GE Capital Services India Limited 2009 $ 1,000 477,705,933 GE Capital Services India Limited 2009 $ 800 382,280,732 Deutsche Postbank Home Finance Limited 2009 $ 500 238,870,585
1,098,857,250 Total (Cost Rs. 3,256,882,789) 3,256,882,789
TOTAL INVESTMENTS (Cost Rs. 4,342,748,542) 4,335,630,893
HSBC FIXED TERM SERIES 63
Non-Convertible Debentures / Bonds Listed / Awaiting listing (20.91 %)Finance (50.84 %)
9.00% Sundaram Finance Limited 2009 $ @ 100 99,285,431 99,285,431
Finance & Term Lending (49.16 %)0.00% Kotak Mahindra Prime Limited 2009 $ 100 95,999,291
95,999,291 Total (Cost Rs. 195,284,722) 195,284,722
Asset Backed Securities (22.58 %)Finance & Investments (100 %)
Corporate Loan Securitisation Series XXXVII Trust 2006 (Shriram Transport Finance Company) PTC 2009 * 19 210,832,460 210,832,460
Total (Cost Rs. 207,557,676) 210,832,460
Commercial Papers/Certificate of Deposits (56.51 %)Certificate of Deposits (59.46 %)
Oriental Bank of Commerce 2009 $ 2,000 188,083,833 Exim Bank Limited 2009 $ @ 1,300 125,691,491
313,775,324 Commercial Papers (40.54 %)
Power Finance Corporation Limited 2009 $ 248 117,014,714 Reliance Capital Limited 2009 $ 100 48,734,295 Reliance Capital Limited 2009 $ 100 48,199,221
213,948,230 Total (Cost Rs. 527,723,554) 527,723,554 TOTAL INVESTMENTS (Cost Rs. 930,565,953) 933,840,736
HSBC FIXED TERM SERIES 66
Non-Convertible Debentures / Bonds Listed / Awaiting listing (32.26 %)Finance (100 %)
10.00% Housing Development Finance Corporation Limited 2010 100 102,216,600 12.50% ICICI Home Finance Company Limited 2010 $ @ 100 100,491,039
202,707,639 Total (Cost Rs. 201,932,100) 202,707,639
Asset Backed Securities (17.62 %)Finance & Investments (100 %)
Corporate Debt Trust Series 15- Sereis A1 (National Housing Bank) PTC 2010 * 12 110,728,066 110,728,066
Total (Cost Rs. 107,466,986) 110,728,066
Commercial Papers/Certificate of Deposits (50.12 %)Certificate of Deposits (62.51 %)
Vijaya Bank $ 1,000 93,080,703 State Bank of Indore $ @ 375 35,508,322 Allahabad Bank $ @ 370 35,128,106 Oriental Bank of Commerce $ 200 18,952,526 Punjab National Bank $ 150 14,152,406
196,822,063 Commercial Papers (37.49 %)
Aditya Birla Nuvo Limited 2009 $ 200 93,529,514 Power Finance Corporation Limited 2009 $ 52 24,535,343
118,064,857 Total (Cost Rs. 314,886,920) 314,886,920 TOTAL INVESTMENTS (Cost Rs. 624,286,006) 628,322,625
@ Investment in companies which have invested more than five percent of the net asset value of any scheme of HSBC Mutual Fund
Confirmation has been received from J P Morgan Chase Bank, Mumbai Branch at the end of the financial year / period for investments held by them.
* Fair value of non-traded (privately placed) securities as determined in good faith by HSBC Asset Management (India) Private Limited under procedures approvedby the Board of Trustees in accordance with the Regulations.
$ Fair Value of non traded and thinly traded debt securities as determined by HSBC Asset Management (India) Private Limited under procedures approved by theTrustee in accordance with guidelines for valuation of securities for mutual funds dated September
Fixed Term Series 30 Fixed Term Series 30 Fixed Term Series 41 Fixed Term Series 41 Fixed Term Series 42 Fixed Term Series 42
March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008
Schedule Rupees Rupees Rupees Rupees Rupees RupeesASSETS
Investments 1 870,636,238 1,040,976,126 305,582,876 555,094,366 6,746,080,680 6,263,385,458
Other Current Assets 2 3,806,446 2,014,610 60,898,563 32,873,432 106,059,304 40,456,259
Deferred Revenue Expenditure 3 5,098,329 12,489,078 12,747 562,322 787,022 5,011,485
TOTAL 879,541,013 1,055,479,814 366,494,186 588,530,120 6,852,927,006 6,308,853,202
LIABILITIES
Unit Capital 4 769,337,349 971,878,184 324,164,565 573,469,559 6,249,889,006 6,249,889,006
Reserves and Surplus 5 101,438,897 81,173,981 36,662,758 14,896,981 601,099,402 57,939,147
Current Liabilities and Provisions 6 8,764,767 2,427,649 5,666,863 163,580 1,938,598 1,025,049
TOTAL (0.00) 879,541,013 1,055,479,814 0.41 366,494,186 588,530,120 0.39 6,852,927,006 6,308,853,202
RECONCILIATION OF NET ASSET VALUE PER UNITRegular Option
Growth Sub OptionRegular Option
Dividend Sub OptionInstitutional OptionGrowth Sub Option
Institutional OptionDividend Sub Option Total
Regular OptionGrowth Sub Option
Regular OptionDividend Sub Option
Institutional OptionGrowth Sub Option
Institutional OptionDividend Sub Option Total
Regular OptionGrowth Sub Option
Institutional OptionGrowth Sub Option Total
Net Assets as per Balance Sheet (Total Assets less Current Liabilities and Provisions ) (Note 2.5) 616,803,190 144,619,474 109,353,582 - 870,776,246 87,164,479 14,322,066 248,327,992 11,012,786 360,827,323 131,360,772 6,719,627,636 6,850,988,408
(728,661,226) (178,906,999) (124,614,820) (20,869,122) (1,053,052,167) (110,529,097) (14,367,289) (453,208,117) (10,262,037) (588,366,540) (120,946,225) (6,186,881,928) (6,307,828,153)
Number of Units in Issue 53,156,931.064 14,352,566.066 9,424,237.930 - 7,793,526.628 1,422,983.668 22,106,119.643 1,093,826.354 11,983,530.000 613,005,370.600
(66,659,279.315) (17,128,539.151) (11,400,000.000) (2,000,000.000) (10,781,890.753) (1,401,500.000) (44,163,565.052) (1,000,000.000) (11,983,530.000) (613,005,370.624)
Net Asset Value per Unit 11.6034 10.0762 11.6034 - 11.1842 10.0648 11.2335 10.0681 10.9618 10.9618 (10.9311) (10.4450) (10.9311) (10.4346) (10.2514) (10.2514) (10.2620) (10.2620) (10.0927) (10.0927)
Notes to the Financial Statements. 8
The schedules referred to herein form an integral part of the Financial Statements.
This is the Balance Sheet referred to in our report of even date.
For Board of Trustees of For HSBC Asset Management (India)PARTHA GHOSH HSBC Mutual Fund Private LimitedPartnerMembership No. F-55913For and on behalf of PRICE WATERHOUSE Chartered Accountants
VikramaadityaTrustee Director and Chief Executive Officer
Trustee Director
Place: Mumbai Fund Manager(s)Date : 22 July 2009
Fixed Term Series 30 Fixed Term Series 42Fixed Term Series 41
Rupees
(March 31, 2008)
March 31, 2009
(March 31, 2008)
HSBC FIXED TERM SERIES 30, HSBC FIXED TERM SERIES 41, HSBC FIXED TERM SERIES 42, HSBC FIXED TERM SERIES 44, HSBC FIXED TERM SERIES 45, HSBC FIXED TERM SERIES 46, HSBC FIXED TERM SERIES 49
Balance Sheet as at March 31, 2009
Rupees
March 31, 2009
(March 31, 2008)
Rupees
March 31, 2009
0
ScheduleASSETS
Investments 1
Other Current Assets 2
Deferred Revenue Expenditure 3
TOTAL
LIABILITIES
Unit Capital 4
Reserves and Surplus 5
Current Liabilities and Provisions 6
TOTAL
RECONCILIATION OF NET ASSET VALUE PER UNIT
Net Assets as per Balance Sheet (Total Assets less Current Liabilities and Provisions ) (Note 2.5)
Number of Units in Issue
Net Asset Value per Unit
Notes to the Financial Statements. 8
The schedules referred to herein form an integral part of the Financial Statements.
This is the Balance Sheet referred to in our report of even date.
PARTHA GHOSHPartnerMembership No. F-55913For and on behalf of PRICE WATERHOUSE Chartered Accountants
Place: Mumbai
Date : 22 July 2009
0
Fixed Term Series 44 Fixed Term Series 44 Fixed Term Series 45 Fixed Term Series 45 Fixed Term Series 46 Fixed Term Series 46 Fixed Term Series 49 Fixed Term Series 49
March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008
Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees
910,418,282 1,329,557,250 - 182,942,973 351,950,777 2,454,545,214 499,917,890 3,284,795,768
95,138,238 7,679,409 202,131,943 99,753,612 2,144,460,320 115,796,746 3,116,447,366 20,446,066
- - - - - - - -
1,005,556,520 1,337,236,659 202,131,943 282,696,585 2,496,411,097 2,570,341,960 3,616,365,256 3,305,241,834
905,508,399 1,331,008,952 183,925,716 281,848,872 2,280,453,826 2,567,547,071 3,301,539,245 3,301,839,245
89,643,599 6,110,092 15,827,839 819,680 206,688,654 2,676,227 313,439,140 3,305,225
10,404,522 117,615 2,378,388 28,033 9,268,617 118,662 1,386,871 97,364
0.00 1,005,556,520 1,337,236,659 -0.30 202,131,943 282,696,585 0.30 2,496,411,097 2,570,341,960 -0.51 3,616,365,256 3,305,241,834
Regular OptionGrowth Sub Option
Regular OptionDividend Sub Option
Institutional OptionGrowth Sub Option Total
Regular OptionGrowth Sub Option
Regular OptionDividend Sub Option
Institutional OptionGrowth Sub Option Total
Regular OptionGrowth Sub Option
Regular OptionDividend Sub Option
Institutional OptionGrowth Sub Option
Institutional OptionDividend Sub Option Total
Regular OptionGrowth Sub Option
Regular OptionDividend Sub Option
Institutional OptionGrowth Sub Option Total
220,892,427 5,417,203 768,842,368 995,151,998 54,980,455 2,845,872 141,927,228 199,753,555 89,774,601 8,020,529 2,378,597,555 10,749,795 2,487,142,480 207,284,876 547,468 3,407,146,041 3,614,978,385
(234,579,480) (5,022,210) (1,097,517,354) (1,337,119,044) (58,970,764) (2,657,616) (221,040,172) (282,668,552) (116,523,333) (7,457,355) (2,436,232,165) (10,010,445) (2,570,223,298) (189,801,911) (500,501) (3,114,842,058) (3,305,144,470)
20,169,814.556 540,194.981 69,840,830.283 5,071,075.089 283,752.905 13,037,743.665 8,257,668.926 798,973.690 217,918,028.939 1,070,711.061 18,931,210.400 50,000.000 311,172,714.100
(23,354,214.556) (500,000.000) (109,246,680.608) (5,880,176.978) (265,000.000) (22,039,710.250) (11,640,684.365) (744,990.000) (243,369,032.680) (1,000,000.000) (18,961,210.400) (50,000.000) (311,172,714.112)
10.9516 10.0282 11.0085 10.8420 10.0294 10.8859 10.8717 10.0385 10.9151 10.0399 10.9494 10.9494 10.9494 (10.0444) (10.0444) (10.0462) (10.0287) (10.0287) (10.0292) (10.0100) (10.0100) (10.0104) (10.0104) (10.0100) (10.0100) (10.0100)
For Board of Trustees of For HSBC Asset Management (India)HSBC Mutual Fund Private Limited
VikramaadityaTrustee Director and Chief Executive Officer
Trustee Director
Fund Manager(s)
Rupees
Fixed Term Series 49
Rupees
March 31, 2009 March 31, 2009
(March 31, 2008)(March 31, 2008)
Rupees
March 31, 2009
(March 31, 2008)
HSBC FIXED TERM SERIES 30, HSBC FIXED TERM SERIES 41, HSBC FIXED TERM SERIES 42, HSBC FIXED TERM SERIES 44, HSBC FIXED TERM SERIES 45, HSBC FIXED TERM SERIES 46, HSBC FIXED TERM SERIES 49
Balance Sheet as at March 31, 2009
Fixed Term Series 45 Fixed Term Series 46Fixed Term Series 44
Rupees
March 31, 2009
(March 31, 2008)
April 01, 2008 to May 03, 2007 to April 01, 2008 to December 17, 2007 to April 01, 2008 to January 29, 2008 toMarch 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008
Schedule Rupees Rupees Rupees Rupees Rupees Rupees
INCOME AND GAINS
Interest and Discount 7 101,080,493 87,850,983 47,482,214 15,228,678 599,961,803 89,114,373
Net Profit on Sale of Investments (Note 2.3)(Including Net of Net Loss on Inter-Scheme Sale of Investments Rs. 1,908,328 for Fixed Term Series 30, Rs. 121,495 for Fixed Term Series 41, Rs. 39,389 for Fixed Term Series 42 and Rs. 1,091,733 for Fixed term Series 42 (Previous year: Rs. 2,291,031 for Fixed Term Series 30)) (Note 2.3) - 2,280,947 - 54,251 - -
TOTAL 101,080,493 90,131,930 47,482,214 15,282,929 599,961,803 89,114,373
EXPENSES AND LOSSES
Net Loss on Sale of Investments including Net Loss on Inter-Scheme Sale of Investments ofRs.1,091,733 for Fixed Term Series 46 (Previous year is Nil )(Note 2.3) 9,044,455 - 2,854,840 - 38,712 8,357
Investment Management and Advisory Fees (Note 3) 4,573,322 3,978,447 482,641 162,820 8,357,467 1,246,570
Transfer Agent Fees and Expenses 197,040 153,881 99,533 25,948 1,310,668 117,377
Trusteeship Fees and Expenses (Note 4) 3,985 6,121 2,048 4,878 26,917 2,610
Custodian Fees and Expenses (Note 5) 117,733 90,101 58,856 14,546 719,218 110,491
Audit Fees 10,000 6,000 5,000 6,000 5,000 6,000
Selling and Distribution Expenses 1,001,240 1,229,040 2,040 - - -
Initial Issue Expenses Amortised 5,447,599 4,919,107 464,767 150,831 4,224,463 613,415
Other Operating Expenses 4,734 25,124 20,576 5,515 2,180 5,116
TOTAL 20,400,108 10,407,821 3,990,301 370,538 14,684,625 2,109,936
Less: Expenses to be Reimbursed by the Investment Manager - 91,853 - - - -
TOTAL 20,400,108 10,315,968 3,990,301 370,538 14,684,625 2,109,936
Net Realised Gains for the Year/Period 80,680,385 79,815,962 43,491,913 14,912,391 585,277,178 87,004,437
Net change in Unrealised Depreciation in Value of Investments (16,666,465) - 324,815 (346,160) (42,116,923) (29,065,290)
Net Gains for the Year/Period 0.69 64,013,920 79,815,962 0.80 43,816,728 14,566,231 0.01 543,160,255 57,939,147
Net change in Unrealised Appreciation in Value of Investments (14,447,597) 15,193,470 (330,750) 330,750 - -
Net Surplus including Net change in Unrealised Appreciation/Depreciation in Value of Investments 49,566,323 95,009,432 43,485,978 14,896,981 543,160,255 57,939,147
Transferred to Unrealised Appreciation Reserve 14,447,597 (15,193,470) 330,750 (330,750) - -
Net Surplus for the Year/Period 64,013,920 79,815,962 43,816,728 14,566,231 543,160,255 57,939,147
Fixed Term Series 30 Fixed Term Series 30 Fixed Term Series 41 Fixed Term Series 41 Fixed Term Series 42 Fixed Term Series 42
April 01, 2008 to March 31, 2009April 01, 2008 to March
31, 2009 April 01, 2008 to March 31, 2009April 01, 2008 to March 31,
2009 April 01, 2008 to March 31, 2009April 01, 2008 to March 31,
2009
(May 03, 2007 to March 31, 2008)(May 03, 2007 to March
31, 2008) (December 17, 2007 to March 31, 2008)(December 17, 2007 to March
31, 2008) (January 29, 2008 to March 31, 2008)(January 29, 2008 to March
31, 2008)Rupees Rupees Rupees Rupees Rupees Rupees
Regular Option Growth Sub Option
Regular Option Dividend Sub Option
Institutional Option Growth Sub Option
Institutional Option Dividend Sub Option Total
Regular Option Growth Sub Option
Regular Option Dividend Sub Option
Institutional Option Growth Sub Option
Institutional Option Dividend Sub Option Total
Regular Option Growth Sub Option
Institutional Option Growth Sub Option Total
Net Surplus for the Year / Period 45,164,219 11,036,724 7,558,852 254,119 64,013,919 8,826,236 1,250,178 32,771,079 969,235 43,816,728 10,414,547 532,745,709 543,160,255
(54,824,321) (13,904,282) (9,534,093) (1,553,266) (79,815,962) (2,648,229) (344,235) (11,317,505) (256,262) (14,566,231) (1,110,925) (56,828,222) (57,939,147)
Transfer from Reserve Fund - 5,207,263 - 397,576 5,604,839 - 347,845 - 258,408 606,253 - - -
(-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-)
Dividend / Distribution - (13,628,576) - (964,244) (14,592,820) - (1,215,365) - (938,710) (2,154,076) - - -
(-) (-7,339,143) (-) (-852,119) (-8,191,262) (-) (-) (-) (-) (-) (-) (-) (-)
Dividend / Distribution Tax thereon - (1,988,590) - (136,562) (2,125,152) - (225,778) - (212,712) (438,489) - - -
(-) (-1,072,390) (-) (-120,681) (-1,193,071) (-) (-) (-) (-) (-) (-) (-) (-)
Balance Transferred to Reserve Fund 45,164,219 626,821 7,558,852 (449,110) 52,900,786 8,826,236 156,881 32,771,079 76,221 41,830,416 10,414,547 532,745,709 543,160,255
(54,824,321) (5,492,749) (9,534,093) (580,466) (70,431,629) (2,648,229) (344,235) (11,317,505) (256,262) (14,566,231) (1,110,925) (56,828,222) (57,939,147)
Notes to the Financial Statements. 8
PARTHA GHOSH For HSBC Asset Management (India)
Partner HSBC Mutual Fund Private LimitedMembership No. F-55913For and on behalf of PRICE WATERHOUSE Chartered Accountants
VikramaadityaTrustee Director and Chief Executive Officer
Director
Place: Mumbai
Date : 22 July 2009 Trustee Fund Manager(s)
The Schedules referred to herein form an integral part of the Financial Statements.
This is the Revenue Account referred to in our report of even date.
For Board of Trustees of
Fixed Term Series 42
HSBC FIXED TERM SERIES 30, HSBC FIXED TERM SERIES 41, HSBC FIXED TERM SERIES 42, HSBC FIXED TERM SERIES 44, HSBC FIXED TERM SERIES 45, HSBC FIXED TERM SERIES 46, HSBC FIXED TERM SERIES 49
Revenue Account for the year ended March 31, 2009
Fixed Term Series 30 Fixed Term Series 41
1
Schedule
INCOME AND GAINS
Interest and Discount 7
Net Profit on Sale of Investments (Note 2.3)(Including Net of Net Loss on Inter-Scheme Sale of Investments Rs. 1,908,328 for Fixed Term Series 30, Rs. 121,495 for Fixed Term Series 41, Rs. 39,389 for Fixed Term Series 42 and Rs. 1,091,733 for Fixed term Series 42 (Previous year: Rs. 2,291,031 for Fixed Term Series 30)) (Note 2.3)
TOTAL
EXPENSES AND LOSSES
Net Loss on Sale of Investments including Net Loss on Inter-Scheme Sale of Investments ofRs.1,091,733 for Fixed Term Series 46 (Previous year is Nil )(Note 2.3)
Investment Management and Advisory Fees (Note 3)
Transfer Agent Fees and Expenses
Trusteeship Fees and Expenses (Note 4)
Custodian Fees and Expenses (Note 5)
Audit Fees
Selling and Distribution Expenses
Initial Issue Expenses Amortised
Other Operating Expenses
TOTAL
Less: Expenses to be Reimbursed by the Investment Manager
TOTAL
Net Realised Gains for the Year/Period
Net change in Unrealised Depreciation in Value of Investments
Net Gains for the Year/Period
Net change in Unrealised Appreciation in Value of Investments
Net Surplus including Net change in Unrealised Appreciation/Depreciation in Value of Investments
Transferred to Unrealised Appreciation Reserve
Net Surplus for the Year/Period
Net Surplus for the Year / Period
Transfer from Reserve Fund
Dividend / Distribution
Dividend / Distribution Tax thereon
Balance Transferred to Reserve Fund
Notes to the Financial Statements. 8
PARTHA GHOSH
PartnerMembership No. F-55913For and on behalf of PRICE WATERHOUSE Chartered Accountants
Place: Mumbai
Date : 22 July 2009
The Schedules referred to herein form an integral part of the Financial Statements.
This is the Revenue Account referred to in our report of even date.
1
April 01, 2008 to March 04, 2008 to April 01, 2008 to March 18, 2008 to April 01, 2008 to March 24, 2008 to April 01, 2008 to March 28, 2008 toMarch 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008
Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees
107,759,948 6,229,436 22,921,587 841,300 245,007,168 2,673,704 318,804,874 3,272,120
183,717 - - - - - 108,713 -
107,943,665 6,229,436 22,921,587 841,300 245,007,168 2,673,704 318,913,587 3,272,120
- 6,306 1,545,537 2,561 14,934,389 441 - 2,547
1,976,109 83,042 647,051 14,916 10,410,719 99,072 7,592,639 73,267
213,482 10,476 45,019 682 475,116 6,206 648,023 7,980
4,807 448 1,036 - 10,607 - 14,273 -
129,203 8,533 27,418 1,178 261,038 3,051 358,499 4,299
5,000 6,000 5,000 6,000 5,000 6,000 5,000 6,000
10,838 - 2,040 - 2,040 - - -
- - - - - - - -
2,525 4,539 15,728 2,873 93,791 4,355 20,609 4,089
2,341,964 119,344 2,288,829 28,210 26,192,700 119,125 8,639,043 98,182
- - - 6,590 - 1,006 - 5,406
2,341,964 119,344 2,288,829 21,620 26,192,700 118,119 8,639,043 92,776
105,601,701 6,110,092 20,632,758 819,680 218,814,468 2,555,585 310,274,544 3,179,344
- - - - - - - -
0.00 105,601,701 6,110,092 0.90 20,632,758 819,680 0.30 218,814,468 2,555,585 -0.09 310,274,544 3,179,344
- - - - (120,642) 120,642 (125,881) 125,881
105,601,701 6,110,092 20,632,758 819,680 218,693,826 2,676,227 310,148,664 3,305,224
- - - - 120,642 (120,642) 125,881 (125,881)
105,601,701 6,110,092 20,632,758 819,680 218,814,468 2,555,585 310,274,544 3,179,344
Fixed Term Series 44 Fixed Term Series 44 Fixed Term Series 45 Fixed Term Series 45 Fixed Term Series 46 Fixed Term Series 46 Fixed Term Series 49 Fixed Term Series 49
April 01, 2008 to March 31, 2009April 01, 2008 to March 31,
2009 April 01, 2008 to March 31, 2009April 01, 2008 to March 31,
2009 April 01, 2008 to March 31, 2009April 01, 2008 to March 31,
2009 April 01, 2008 to March 31, 2009April 01, 2008 to March 31,
2009
(March 04, 2008 to March 31, 2008)(March 04, 2008 to March 31,
2008) (March 18, 2008 to March 31, 2008)(March 18, 2008 to March 31,
2008) (March 24, 2008 to March 31, 2008)(March 24, 2008 to March 31,
2008) (March 28, 2008 to March 31, 2008)(March 28, 2008 to March 31,
2008)Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees
Regular Option Growth Sub Option
Regular Option Dividend Sub Option
Institutional Option Growth Sub Option Total
Regular Option Growth Sub Option
Regular Option Dividend Sub Option
Institutional Option Growth Sub Option Total
Regular Option Growth Sub Option
Regular Option Dividend Sub Option
Institutional Option Growth Sub Option
Institutional Option Dividend Sub Option Total
Regular Option Growth Sub Option
Regular Option Dividend Sub Option
Institutional Option Growth Sub Option Total
19,967,314 452,095 85,182,292 105,601,701 4,489,136 214,814 15,928,806 20,632,758 8,326,819 639,986 208,947,596 900,067 218,814,468 17,804,942 46,987 292,422,615 310,274,544
(1,037,335) (22,210) (5,050,547) (6,110,092) (168,994) (7,616) (643,070) (819,680) (111,019) (7,105) (2,427,486) (9,975) (2,555,585) (182,578) (482) (2,996,284) (3,179,344)
- 19,972 - 19,972 - 7,193 - 7,193 - 4,396 - 6,240 10,636 - - -
(-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-)
- (401,950) - (401,950) - (187,529) - (187,529) - (539,892) - (707,179) (1,247,070) - - -
(-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-)
- (56,926) - (56,926) - (26,559) - (26,559) - (76,462) - (160,247) (236,709) - - -
(-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-)
19,967,314 13,191 85,182,292 105,162,797 4,489,136 7,919 15,928,806 20,425,863 8,326,819 28,028 208,947,596 38,881 217,341,325 17,804,942 46,987 292,422,615 310,274,544
(1,037,335) (22,210) (5,050,547) (6,110,092) (168,994) (7,616) (643,070) (819,680) (111,019) (7,105) (2,427,486) (9,975) (2,555,585) (182,578) (482) (2,996,284) (3,179,344)
For HSBC Asset Management (India)
HSBC Mutual Fund Private Limited
VikramaadityaTrustee Director and Chief Executive Officer
Director
Trustee Fund Manager(s)
For Board of Trustees of
Fixed Term Series 46Fixed Term Series 44 Fixed Term Series 45
HSBC FIXED TERM SERIES 30, HSBC FIXED TERM SERIES 41, HSBC FIXED TERM SERIES 42, HSBC FIXED TERM SERIES 44, HSBC FIXED TERM SERIES 45, HSBC FIXED TERM SERIES 46, HSBC FIXED TERM SERIES 49
Revenue Account for the year ended March 31, 2009
Fixed Term Series 49
SCHEDULE 1
Investments
Market/Fair Value Cost Market/Fair Value Cost Market/Fair Value Cost Market/Fair Value Cost Market/Fair Value Cost Market/Fair Value Cost(Notes 2.2, 2.3, 8, 9, 10, and 13) Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees
(Refer to the attached Statement of Portfolio Holding as at March 31, 2009)
Non Convertible Debentures and Bonds Listed / Awaiting Listing 255,425,223 262,012,616 427,546,348 418,753,779 9,970,483 9,991,827 - - 2,282,411,876 2,310,391,106 1,193,600,626 1,200,000,000
Privately Placed Non Convertible Debentures / Bonds 427,433,850 437,512,922 444,380,229 439,225,974 26,532,000 26,532,000 220,330,750 220,000,000 2,036,545,436 2,060,333,044 3,005,685,116 3,021,904,940
Commercial Paper / Certificate of Deposit - - - - 104,886,212 104,886,212 164,462,977 164,462,977 1,019,787,020 1,019,787,020 - -
Asset Backed Securities 187,777,165 187,031,293 169,049,549 167,802,904 164,194,181 164,194,181 170,300,639 170,646,798 1,407,336,348 1,426,751,723 2,064,099,716 2,070,545,809
TOTAL 870,636,238 886,556,831 1,040,976,126 1,025,782,657 305,582,876 305,604,220 555,094,366 555,109,775 6,746,080,680 6,817,262,893 6,263,385,458 6,292,450,749
SCHEDULE 2 March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008Other Current Assets Rupees Rupees Rupees Rupees Rupees Rupees
Balances with Banks - in Current Account 1,262,299 65,494 115,168 419,068 50,102 68,600 - in Dividend Account 124,704 6 - - - -
Sales Contracts Awaiting Completion - Non Convertible Debentures - - - - - -
Reverse Repos 1,181,820 1,851,022 25,065,536 26,737,572 10,313,979 4,441,817
Collateralised Borrowing and Lending Obligation 1,237,099 - 26,224,815 - 10,790,673 -
Inter-Scheme Receivable for 'Others' - - - - - -
Interest Receivable on :- Debentures / Bonds - - 9,486,492 5,610,904 84,900,412 35,944,864 - Reverse Repos 152 408 3,226 5,888 1,327 978 - Collateralised Borrowing and Lending Obligation 152 - 3,213 - 1,322 -
Receivable from Investment Manager 220 97,680 113 100,000 1,489 - TOTAL 3,806,446 2,014,610 60,898,563 32,873,432 106,059,304 40,456,259
SCHEDULE 3Deferred Revenue Expenditure (Note 2.8)
Issue and Organisational Costs - 17,408,185 - 713,153 - 5,624,900
At the beginning of the year / period 12,489,078 - 562,322 - 5,011,485 -
Less : Amortised during the year / period (7,390,749) (4,919,107) (549,575) (150,831) (4,224,463) (613,415)
At the end of the year / period 5,098,329 12,489,078 12,747 562,322 787,022 5,011,485
Fixed Term Series 30 Fixed Term Series 41 Fixed Term Series 42
RupeesMarch 31, 2008March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008
Rupees Rupees
HSBC FIXED TERM SERIES 30, HSBC FIXED TERM SERIES 41, HSBC FIXED TERM SERIES 42, HSBC FIXED TERM SERIES 44, HSBC FIXED TERM SERIES 45, HSBC FIXED TERM SERIES 46, HSBC FIXED TERM SERIES 49
Schedules forming part of the Balance Sheet as at March 31, 2009
and the Revenue account for the year ended March 31, 2009
2
SCHEDULE 1
Investments
(Notes 2.2, 2.3, 8, 9, 10, and 13)
(Refer to the attached Statement of Portfolio Holding as at March 31, 2009)
Non Convertible Debentures and Bonds Listed / Awaiting Listing
Privately Placed Non Convertible Debentures / Bonds
Commercial Paper / Certificate of Deposit
Asset Backed Securities
TOTAL
SCHEDULE 2Other Current Assets
Balances with Banks - in Current Account- in Dividend Account
Sales Contracts Awaiting Completion - Non Convertible Debentures
Reverse Repos
Collateralised Borrowing and Lending Obligation
Inter-Scheme Receivable for 'Others'
Interest Receivable on :- Debentures / Bonds- Reverse Repos- Collateralised Borrowing and Lending Obligation
Receivable from Investment ManagerTOTAL
SCHEDULE 3Deferred Revenue Expenditure (Note 2.8)
Issue and Organisational Costs
At the beginning of the year / period
Less : Amortised during the year / period
At the end of the year / period
2
Market/Fair Value Cost Market/Fair Value Cost Market/Fair Value Cost Market/Fair Value Cost Market/Fair Value Cost Market/Fair Value Cost Market/Fair Value Cost Market/Fair Value CostRupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees
- - - - - - - - - - - - - - - -
- - - - - - - - - - 800,120,642 800,000,000 - - 450,125,880 450,000,000
910,418,282 910,418,282 1,329,557,250 1,329,557,250 - - 182,942,973 182,942,973 351,950,777 351,950,777 1,654,424,572 1,654,424,572 499,917,890 499,917,890 2,834,669,888 2,834,669,888
- - - - - - - - - - - - - - - -
910,418,282 910,418,282 1,329,557,250 1,329,557,250 - - 182,942,973 182,942,973 351,950,777 351,950,777 2,454,545,214 2,454,424,572 499,917,890 499,917,890 3,284,795,768 3,284,669,888
March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees
214,686 122,343 454,593 3,434,378 4,821,412 38,851,714 5,991,692 4,924,388 - - - - - - - -
- - - - - - 450,682,495 -
46,383,088 7,555,402 98,547,183 96,291,443 1,045,511,103 76,019,641 1,299,669,332 4,505,129
48,528,284 - 103,104,796 - 1,093,858,664 - 1,359,769,219 -
- - - - - - - 10,549,055
- - - - - 907,647 - 461,096 5,969 1,664 12,682 21,201 134,544 16,738 167,251 992 5,945 - 12,632 - 134,010 - 166,588 -
266 - 57 6,590 587 1,006 789 5,406 95,138,238 7,679,409 202,131,943 99,753,612 2,144,460,320 115,796,746 3,116,447,366 20,446,066
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
Fixed Term Series 46 Fixed Term Series 49Fixed Term Series 44March 31, 2009March 31, 2008March 31, 2009
Rupees Rupees RupeesMarch 31, 2009March 31, 2008
RupeesMarch 31, 2009 March 31, 2008
HSBC FIXED TERM SERIES 30, HSBC FIXED TERM SERIES 41, HSBC FIXED TERM SERIES 42, HSBC FIXED TERM SERIES 44, HSBC FIXED TERM SERIES 45, HSBC FIXED TERM SERIES 46, HSBC FIXED TERM SERIES 49
Schedules forming part of the Balance Sheet as at March 31, 2009
and the Revenue account for the year ended March 31, 2009
March 31, 2008Fixed Term Series 45
March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008
SCHEDULE 4 Rupees Units Rupees Units Rupees Units Rupees Units Rupees Units Rupees Units
Unit Capital
Regular Plan
Growth Option
Issued and Subscribed
Units of Rs. 10 each fully paid up 709,293,717 70,929,371.725 709,293,717 70,929,371.725 107,818,908 10,781,890.753 107,818,908 10,781,890.753 119,835,300 11,983,530.000 119,835,300 11,983,530.000
Outstanding
Initial Issue and Subscription - - 709,293,717 70,929,371.725 - - 107,818,908 10,781,890.753 - - 119,835,300 11,983,530.000
At the Beginning of the year / period 666,592,793 66,659,279.315 - - 107,818,908 10,781,890.753 - - 119,835,300 11,983,530.000 - -
Issued during the year / period 5,130,000 513,000.000 3,765,000 376,500.000 185,000 18,500.000 - - - - - -
671,722,793 67,172,279.315 713,058,717 71,305,871.725 108,003,908 10,800,390.753 107,818,908 10,781,890.753 119,835,300 11,983,530.000 119,835,300 11,983,530.000
Redeemed during the year / period 140,153,483 14,015,348.251 46,465,924 4,646,592.410 30,068,641 3,006,864.125 - - - - - -
At the end of the year / period 531,569,310 53,156,931.064 666,592,793 66,659,279.315 77,935,267 7,793,526.628 107,818,908 10,781,890.753 119,835,300 11,983,530.000 119,835,300 11,983,530.000
Dividend Option
Issued and Subscribed
Units of Rs. 10 each fully paid up 183,538,658 18,353,865.762 183,538,658 18,353,865.762 14,015,000 1,401,500.000 14,015,000 1,401,500.000
Outstanding
Initial Issue and Subscription - - 183,538,658 18,353,865.762 - - 14,015,000 1,401,500.000
At the Beginning of the year / period 171,285,391 17,128,539.151 - - 14,015,000 1,401,500.000 - -
Issued during the year / period 10,130,523 1,013,052.321 1,181,078 118,107.845 1,214,837 121,483.668 - -
181,415,914 18,141,591.472 184,719,736 18,471,973.607 15,229,837 1,522,983.668 14,015,000 1,401,500.000
Redeemed during the year / period 37,890,254 3,789,025.406 13,434,345 1,343,434.456 1,000,000 100,000.000 - -
At the end of the year / period 143,525,660 14,352,566.066 171,285,391 17,128,539.151 14,229,837 1,422,983.668 14,015,000 1,401,500.000
Institutional Plan
Institutional Growth Option
Issued and Subscribed
Units of Rs. 10 each fully paid up 124,000,000 12,400,000.000 124,000,000 12,400,000.000 441,635,651 44,163,565.052 441,635,651 44,163,565.052 6,130,053,706 613,005,370.600 6,130,053,706 613,005,370.600
Outstanding
Initial Issue and Subscription - - 124,000,000 12,400,000.000 - - 441,635,651 44,163,565.052 - - 6,130,053,706 613,005,370.600
At the Beginning of the year / period 114,000,000 11,400,000.000 - - 441,635,651 44,163,565.052 - - 6,130,053,706 613,005,370.600 - -
Issued during the year / period - - - - 10,050,000 1,005,000.000 - - - - - -
114,000,000 11,400,000.000 124,000,000 12,400,000.000 451,685,651 45,168,565.052 441,635,651 44,163,565.052 6,130,053,706 613,005,370.600 6,130,053,706 613,005,370.600
Redeemed during the year / period 19,757,621 1,975,762.070 10,000,000 1,000,000.000 230,624,454 23,062,445.409 - - - - - -
At the end of the year / period 94,242,379 9,424,237.930 114,000,000 11,400,000.000 221,061,197 22,106,119.643 441,635,651 44,163,565.052 6,130,053,706 613,005,370.600 6,130,053,706 613,005,370.600
Institutional Dividend Option
Issued and Subscribed
Units of Rs. 10 each fully paid up 20,000,000 2,000,000.000 20,000,000 2,000,000.000 10,000,000 1,000,000.000 10,000,000 1,000,000.000
Outstanding
Initial Issue and Subscription - - 20,000,000 2,000,000.000 - - 10,000,000 1,000,000.000
At the Beginning of the year / period 20,000,000 2,000,000.000 - - 10,000,000 1,000,000.000 - -
Issued during the year / period - - - - 938,264 93,826.354 - -
20,000,000 2,000,000.000 20,000,000 2,000,000.000 10,938,264 1,093,826.354 10,000,000 1,000,000.000
Redeemed during the year / period 20,000,000 2,000,000.000 - - - - - -
At the end of the year / period - - 20,000,000 2,000,000.000 10,938,264 1,093,826.354 10,000,000 1,000,000.000
TOTAL 769,337,349 76,933,735.060 971,878,184 97,187,818.466 324,164,565 32,416,456.293 573,469,559 57,346,955.805 6,249,889,006 624,988,900.600 6,249,889,006 624,988,900.600
Schedules forming part of the Balance Sheet as at March 31, 2009
HSBC FIXED TERM SERIES 30, HSBC FIXED TERM SERIES 41, HSBC FIXED TERM SERIES 42, HSBC FIXED TERM SERIES 44, HSBC FIXED TERM SERIES 45, HSBC FIXED TERM SERIES 46, HSBC FIXED TERM SERIES 49
Fixed Term Series 30 Fixed Term Series 41 Fixed Term Series 42
3
SCHEDULE 4
Unit Capital
Regular Plan
Growth Option
Issued and Subscribed
Units of Rs. 10 each fully paid up
Outstanding
Initial Issue and Subscription
At the Beginning of the year / period
Issued during the year / period
Redeemed during the year / period
At the end of the year / period
Dividend Option
Issued and Subscribed
Units of Rs. 10 each fully paid up
Outstanding
Initial Issue and Subscription
At the Beginning of the year / period
Issued during the year / period
Redeemed during the year / period
At the end of the year / period
Institutional Plan
Institutional Growth Option
Issued and Subscribed
Units of Rs. 10 each fully paid up
Outstanding
Initial Issue and Subscription
At the Beginning of the year / period
Issued during the year / period
Redeemed during the year / period
At the end of the year / period
Institutional Dividend Option
Issued and Subscribed
Units of Rs. 10 each fully paid up
Outstanding
Initial Issue and Subscription
At the Beginning of the year / period
Issued during the year / period
Redeemed during the year / period
At the end of the year / period
TOTAL
3
March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008 March 31, 2009 March 31, 2009 March 31, 2008 March 31, 2008
Rupees Units Rupees Units Rupees Units Rupees Units Rupees Units Rupees Units Rupees Units Rupees Units
233,542,146 23,354,214.556 233,542,146 23,354,214.556 58,801,770 5,880,176.978 58,801,770 5,880,176.978 116,406,844 11,640,684.365 116,406,844 11,640,684.365 189,612,104 18,961,210.400 189,612,104 18,961,210.400
- - 233,542,146 23,354,214.556 - - 58,801,770 5,880,176.978 - - 116,406,844 11,640,684.365 - - 189,612,104 18,961,210.400
233,542,146 23,354,214.556 - - 58,801,770 5,880,176.978 - - 116,406,844 11,640,684.365 - - 189,612,104 18,961,210.400 - -
- - - - - - - - - - - - 700,000 70,000.000 - -
233,542,146 23,354,214.556 233,542,146 23,354,214.556 58,801,770 5,880,176.978 58,801,770 5,880,176.978 116,406,844 11,640,684.365 116,406,844 11,640,684.365 190,312,104 19,031,210.400 189,612,104 18,961,210.400
31,844,000 3,184,400.000 - - 8,091,019 809,101.889 - - 33,830,156 3,383,015.439 - - 1,000,000 100,000.000 - -
201,698,146 20,169,814.556 233,542,146 23,354,214.556 50,710,751 5,071,075.089 58,801,770 5,880,176.978 82,576,686 8,257,668.926 116,406,844 11,640,684.365 189,312,104 18,931,210.400 189,612,104 18,961,210.400
5,000,000 500,000.000 5,000,000 500,000.000 2,650,000 265,000.000 2,650,000 265,000.000 7,449,900 744,990.000 7,449,900 744,990.000 500,000 50,000.000 500,000 50,000.000
- - 5,000,000 500,000.000 - - 2,650,000 265,000.000 - - 7,449,900 744,990.000 - - 500,000 50,000.000
5,000,000 500,000.000 - - 2,650,000 265,000.000 - - 7,449,900 744,990.000 - - 500,000 50,000.000 - -
452,231 45,223.130 - - 187,529 18,752.905 - - 539,837 53,983.690 - - - - - -
5,452,231 545,223.130 5,000,000 500,000.000 2,837,529 283,752.905 2,650,000 265,000.000 7,989,737 798,973.690 7,449,900 744,990.000 500,000 50,000.000 500,000 50,000.000
50,281 5,028.149 - - - - - - - - - - - - - -
5,401,950 540,194.981 5,000,000 500,000.000 2,837,529 283,752.905 2,650,000 265,000.000 7,989,737 798,973.690 7,449,900 744,990.000 500,000 50,000.000 500,000 50,000.000
1,092,466,806 109,246,680.609 1,092,466,806 109,246,680.609 220,397,102 22,039,710.249 220,397,102 22,039,710.249 2,433,690,327 243,369,032.680 2,433,690,327 243,369,032.680 3,111,727,141 311,172,714.100 3,111,727,141 311,172,714.100
- - 1,092,466,806 109,246,680.609 - - 220,397,102 22,039,710.249 - - 2,433,690,327 243,369,032.680 - - 3,111,727,141 311,172,714.100
1,092,466,806 109,246,680.609 - - 220,397,102 22,039,710.249 - - 2,433,690,327 243,369,032.680 - - 3,111,727,141 311,172,714.100 - -
20,000,000 2,000,000.000 - - - - - - 60,546,765 6,054,676.489 - - - - - -
1,112,466,806 111,246,680.609 1,092,466,806 109,246,680.609 220,397,102 22,039,710.249 220,397,102 22,039,710.249 2,494,237,092 249,423,709.169 2,433,690,327 243,369,032.680 3,111,727,141 311,172,714.100 3,111,727,141 311,172,714.100
414,058,503 41,405,850.326 - - 90,019,666 9,001,966.584 - - 315,056,802 31,505,680.230 - - - - - -
698,408,303 69,840,830.283 1,092,466,806 109,246,680.609 130,377,436 13,037,743.665 220,397,102 22,039,710.249 2,179,180,290 217,918,028.939 2,433,690,327 243,369,032.680 3,111,727,141 311,172,714.100 3,111,727,141 311,172,714.100
10,000,000 1,000,000.000 10,000,000 1,000,000.000
- - 10,000,000 1,000,000.000
10,000,000 1,000,000.000 - -
707,111 70,711.061 - -
10,707,111 1,070,711.061 10,000,000 1,000,000.000
- - - -
10,707,111 1,070,711.061 10,000,000 1,000,000.000
905,508,399 90,550,839.820 1,331,008,952 133,100,895.165 183,925,716 18,392,571.659 281,848,872 28,184,887.227 2,280,453,826 228,045,382.616 2,567,547,071 256,754,707.045 3,301,539,245 330,153,924.500 3,301,839,245 330,183,924.500
HSBC FIXED TERM SERIES 30, HSBC FIXED TERM SERIES 41, HSBC FIXED TERM SERIES 42, HSBC FIXED TERM SERIES 44, HSBC FIXED TERM SERIES 45, HSBC FIXED TERM SERIES 46, HSBC FIXED TERM SERIES 49
Schedules forming part of the Balance Sheet as at March 31, 2009
Fixed Term Series 45 Fixed Term Series 46 Fixed Term Series 49Fixed Term Series 44
SCHEDULE 5
Reserves and Surplus Total Total Total
Unit Premium Reserve (Note 2.6 )
At the beginning of the year / period (4,451,118) - -
(-) (-) (-)
Added during the year / period (12,583,434) (19,127,636) -
(-4,451,118) (-) (-)
At the end of the year / period (17,034,552) (19,127,636) -
(-4,451,118) (-) (-)
Unrealised Appreciation Reserve
At the beginning of the year / period 15,193,469 330,750 -
(-) (-) (-)
Net change in Unrealised Appreciation in Value of Investments Transferred from Revenue Account (Note 8) (14,447,597) (330,750) -
(15,193,470) (330,750) (-)
At the end of the year / period 745,873 - -
(15,193,470) (330,750) (-)
Reserve Fund
At the beginning of the year / period 70,431,629 14,566,231 57,939,147
(-) (-) (-)
Transfer to Revenue Account (5,604,839) (606,253) -
(-) (-) (-)
Balance Transferred from Revenue Account 52,900,786 41,830,416 543,160,255
(70,431,629) (14,566,231) (57,939,147)
At the end of the year / period 117,727,576 55,790,394 601,099,402
(70,431,629) (14,566,231) (57,939,147)
TOTAL 101,438,897 * 36,662,758 * 601,099,402 *
(81,173,981) * (14,896,981) * (57,939,147) *
* The share of the Plans / Options of the Reserves and Surplus is as follows : March 31, 2009 March 31, 2009 March 31, 2009
(March 31, 2008) (March 31, 2008) (March 31, 2008)Regular Option Growth Option : Rs. 85,233,880 9,229,212 11,525,472
(62,068,434) (2,710,190) (1,110,925) Dividend Option : Rs. 1,093,814 92,229 -
(7,621,606) (352,289) - Total (A) 86,327,694 9,321,441 11,525,472
(69,690,040) (3,062,478) (1,110,925) Institutional Option Growth Option : Rs. 15,111,203 27,266,795 589,573,930
(10,614,820) (11,572,467) (56,828,222) Dividend Option : Rs. - 74,522 -
(869,121) (262,035) - Total (B) 15,111,203 27,341,317 589,573,930
(11,483,941) (11,834,502) (56,828,222)
Total (A+B) 101,438,897 36,662,758 601,099,402
(81,173,981) (14,896,981) (57,939,147)
and the Revenue account for the year ended March 31, 2009
Rupees
March 31, 2009
(March 31, 2008)
Rupees
Fixed Term Series 30March 31, 2009
(March 31, 2008)
Rupees
March 31, 2009
(March 31, 2008)
Fixed Term Series 41 Fixed Term Series 42
HSBC FIXED TERM SERIES 30, HSBC FIXED TERM SERIES 41, HSBC FIXED TERM SERIES 42, HSBC FIXED TERM SERIES 44, HSBC FIXED TERM SERIES 45, HSBC FIXED
TERM SERIES 46, HSBC FIXED TERM SERIES 49
Schedules forming part of the Balance Sheet as at March 31, 2009
4
SCHEDULE 5
Reserves and Surplus
Unit Premium Reserve (Note 2.6 )
At the beginning of the year / period
Added during the year / period
At the end of the year / period
Unrealised Appreciation Reserve
At the beginning of the year / period
Net change in Unrealised Appreciation in Value of Investments Transferred from Revenue Account (Note 8)
At the end of the year / period
Reserve Fund
At the beginning of the year / period
Transfer to Revenue Account
Balance Transferred from Revenue Account
At the end of the year / period
TOTAL
* The share of the Plans / Options of the Reserves and Surplus is as follows :
Regular Option Growth Option : Rs.
Dividend Option : Rs.
Total (A)
Institutional Option Growth Option : Rs.
Dividend Option : Rs.
Total (B)
Total (A+B)
4
Total Total Total Total
- - - -
(-) (-) (-) (-)
(21,609,318) (5,410,511) (13,197,620) (14,748)
(-) (-) (-) (-)
(21,609,318) (5,410,511) (13,197,620) (14,748)
(-) (-) (-) (-)
- - 120,642 125,881
(-) (-) (-) (-)
- - (120,642) (125,881)
(-) (-) (120,642) (125,881)
- - - -
(-) (-) (120,642) (125,881)
6,110,092 819,680 2,555,585 3,179,344
(-) (-) (-) (-)
(19,972) (7,193) (10,636) -
(-) (-) (-) (-)
105,162,797 20,425,863 217,341,325 310,274,544
(6,110,092) (819,680) (2,555,585) (3,179,344)
111,252,917 21,238,350 219,886,274 313,453,888
(6,110,092) (819,680) (2,555,585) (3,179,344)
89,643,599 * 15,827,839 * 206,688,654 * 313,439,140 *
(6,110,092) * (819,680) * (2,676,227) * (3,305,225) *
March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009
(March 31, 2008) (March 31, 2008) (March 31, 2008) (March 31, 2008)
19,194,281 4,269,704 7,197,913 17,972,772 (1,037,335) (168,994) (116,489) (189,807)
15,253 8,343 30,792 47,468 (22,210) (7,616) (7,455) (501)
19,209,534 4,278,047 7,228,705 18,020,240
(1,059,544) (176,610) (123,944) (190,308)
70,434,065 11,549,792 199,417,265 295,418,900 (5,050,547) (643,070) (2,541,838) (3,114,917)
- - 42,684 - - - (10,445) -
70,434,065 11,549,792 199,459,949 295,418,900
(5,050,547) (643,070) (2,552,283) (3,114,917)
89,643,599 15,827,839 206,688,654 313,439,140
(6,110,092) (819,680) (2,676,227) (3,305,225)
and the Revenue account for the year ended March 31, 2009
Fixed Term Series 49March 31, 2009
Fixed Term Series 46March 31, 2009 March 31, 2009
(March 31, 2008)
RupeesRupees RupeesRupees
(March 31, 2008)
Fixed Term Series 44 Fixed Term Series 45
(March 31, 2008)
March 31, 2009
(March 31, 2008)
HSBC FIXED TERM SERIES 30, HSBC FIXED TERM SERIES 41, HSBC FIXED TERM SERIES 42, HSBC FIXED TERM SERIES 44, HSBC FIXED TERM SERIES 45, HSBC FIXED TERM SERIES 46, HSBC FIXED TERM SERIES 49
Schedules forming part of the Balance Sheet as at March 31, 2009
SCHEDULE 6
Current Liabilities and Provisions
March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008
Current Liabilities Rupees Rupees Rupees Rupees Rupees Rupees
Investment Management and Advisory Fees 600,286 396,148 191,247 89,098 1,671,655 783,565
Transfer Agent Fees and Expenses 16,055 19,643 6,624 10,958 125,567 117,377
Custodian Fees and Expenses 16,121 19,446 5,903 10,468 124,468 106,949
Audit Fees 10,000 6,000 5,000 6,000 5,000 6,000
Selling and Distribution Expenses 554,241 559,943 41,937 41,937 7,380 7,380
Redemption of Units 452,032 - - - - -
Load Payable 5,746,188 1,410,376 5,411,873 - - -
Dividend Payable 124,704 - - - - -
Bank Overdraft 1,229,574 - - - - -
Dividend Tax Payable - - - - - -
Sundry Payables 15,566 16,093 4,279 5,119 4,528 3,778
TOTAL 8,764,767 2,427,649 5,666,863 163,580 1,938,598 1,025,049
SCHEDULE 7
Interest and Discount (Note 2.4) April 1, 2008 to May 03, 2007 to April 1, 2008 to December 17, 2007 to April 1, 2008 to January 29, 2008 to
March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008
Rupees Rupees Rupees Rupees Rupees Rupees
Debentures / Bonds 81,890,269 71,915,628 18,806,521 6,387,117 399,033,726 59,964,365
Asset Backed Securities 19,228,390 15,491,015 18,114,596 3,865,677 192,756,844 28,419,817
Government Securities - - - - - -
Commercial Paper / Certificate of Deposit 51,399 - 9,719,959 4,182,652 7,876,463 -
Reverse Repos (Net) 171,542 439,669 772,912 793,232 199,493 730,191
Collateralised Borrowing and Lending Obligation 51,934 4,606 150,284 - 95,277 -
Margin Money with The Clearing Corporation of India Limited - 65 - - - -
Others (Refer note 15) (313,041) (82,058)
TOTAL 101,080,493 87,850,983 47,482,214 15,228,678 599,961,803 89,114,373
Fixed Term Series 30 Fixed Term Series 41 Fixed Term Series 42
HSBC FIXED TERM SERIES 30, HSBC FIXED TERM SERIES 41, HSBC FIXED TERM SERIES 42, HSBC FIXED TERM SERIES 44, HSBC FIXED TERM SERIES 45, HSBC FIXED TERM SERIES 46, HSBC FIXED TERM SERIES 49
Schedules forming part of the Balance Sheet as at March 31, 2009
and the Revenue account for the year ended March 31, 2009
Fixed Term Series 30 Fixed Term Series 41 Fixed Term Series 42
5
SCHEDULE 6
Current Liabilities and Provisions
Current Liabilities
Investment Management and Advisory Fees
Transfer Agent Fees and Expenses
Custodian Fees and Expenses
Audit Fees
Selling and Distribution Expenses
Redemption of Units
Load Payable
Dividend Payable
Bank Overdraft
Dividend Tax Payable
Sundry Payables
TOTAL
SCHEDULE 7
Interest and Discount (Note 2.4)
Debentures / Bonds
Asset Backed Securities
Government Securities
Commercial Paper / Certificate of Deposit
Reverse Repos (Net)
Collateralised Borrowing and Lending Obligation
Margin Money with The Clearing Corporation of India Limited
Others (Refer note 15)
TOTAL
5
March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008
Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees
1,406,275 83,042 290,903 14,916 2,117,909 99,072 1,218,942 73,267
18,288 10,476 3,671 682 45,671 6,206 66,413 7,980
17,595 7,630 2,106 718 24,352 2,966 37,622 3,969
5,000 6,000 5,000 6,000 5,000 6,000 5,000 6,000
- - - - - - - -
- - - - - - - -
8,949,794 - 2,070,588 - 7,030,403 - 4,722 -
- - - - - - - -
- - - - - - - -
- - - - - - - -
7,570 10,467 6,120 5,717 45,282 4,418 54,172 6,148
10,404,522 117,615 2,378,388 28,033 9,268,617 118,662 1,386,871 97,364
April 1, 2008 to March 04, 2008 to April 1, 2008 to March 18, 2008 to March 28, 2008 to March 28, 2008 to March 28, 2008 to March 28, 2008 to
March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008 March 31, 2009 March 31, 2008
Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees
- - - - 107,608,753 1,331,466 42,075,000 461,096
- - - - 103,874,404 - 33,110,753 -
- - 69,600 - 1,670,400 - 196,389 -
106,961,146 5,652,484 22,378,038 510,918 29,140,336 1,258,722 240,280,830 2,371,482
513,565 576,952 358,747 330,382 1,529,370 83,516 1,861,709 439,542
285,237 - 120,535 - 1,190,517 - 1,280,193 -
- - - - - - - -
(5,333) (6,612)
107,759,948 6,229,436 22,921,587 841,300 245,007,168 2,673,704 318,804,874 3,272,120
Fixed Term Series 45 Fixed Term Series 46 Fixed Term Series 49Fixed Term Series 44
HSBC FIXED TERM SERIES 30, HSBC FIXED TERM SERIES 41, HSBC FIXED TERM SERIES 42, HSBC FIXED TERM SERIES 44, HSBC FIXED TERM SERIES 45, HSBC FIXED TERM SERIES 46, HSBC FIXED TERM SERIES 49
Schedules forming part of the Balance Sheet as at March 31, 2009
and the Revenue account for the year ended March 31, 2009
Fixed Term Series 45 Fixed Term Series 46 Fixed Term Series 49Fixed Term Series 44
Main Cat Quantity M Val.
Description Quantity Market / Fair Value
Rupees
HSBC FIXED TERM SERIES 30
Non-Convertible Debentures / Bonds Listed / Awaiting listing (29.34 %)
Consumer Finance (94.28 %)
0.00% CitiFinancial Consumer Finance India Limited 2010 $ 280 240,815,618 240,815,618
Finance (5.72 %)
0.00% Sundaram Finance Limited 2010 $ @ 17 14,609,605
14,609,605 Total (Cost Rs. 262,012,616) 255,425,223
Privately Placed / Unlisted Non-Convertible Debentures / Bonds (49.09 %)Finance (44.33 %)
0.00% GE Capital Services India Limited 2010 * 195 168,723,888 0.00% GE Capital Services India Limited 2010 * 24 20,766,017
189,489,905 Finance & Investments (55.67 %)
0.00% GE Money Financial Services Limited 2010 * 250 216,312,677 0.00% GE Money Financial Services Limited 2010 * 25 21,631,268
237,943,945 427,433,850
Total (Cost Rs. 437,512,922) 427,433,850
Asset Backed Securities (21.57 %)Finance & Investments (100 %)
Corporate Loan Securitisation Series 15 Trust 2008 - A2 (L&T Finance) PTC 2010 * @ 15 187,777,165
187,777,165
Total (Cost Rs. 187,031,293) 187,777,165 TOTAL INVESTMENTS (Cost Rs. 886,556,831) 870,636,238
HSBC FIXED TERM SERIES 41
Privately Placed / Unlisted Non-Convertible Debentures / Bonds (8.68 %)Construction (100 %)
19.00% Unitech Limited 2009 * 396 26,532,000 26,532,000
Total (Cost Rs. 26,532,000) 26,532,000
Non-Convertible Debentures / Bonds Listed / Awaiting listing (3.26 %)Finance (100 %)
9.70% GE Capital Services India Limited 2009 $ 10 9,970,483 9,970,483
Total (Cost Rs. 9,991,828) 9,970,483
Asset Backed Securities (53.73 %)Finance & Investments (100 %)
Corporate Loan Securitisation Series XXIX Trust 2006 (Shriram Transport Finance Company ) PTC 2009 * 9 93,063,110 Indian Loans Receivables Trust May 2008 Series A2 (DLF ) PTC 2009 * @ 71 71,131,071
164,194,181 Total (Cost Rs. 164,194,180) 164,194,181
Commercial Papers/Certificate of Deposits (34.32 %)Certificate of Deposits (100 %)
State Bank of Patiala $ @ 600 59,940,921 State Bank of Bikaner and Jaipur $ @ 450 44,945,291
104,886,212 Total (Cost Rs. 104,886,212) 104,886,212 TOTAL INVESTMENTS (Cost Rs. 305,604,220) 305,582,876
for the year ended March 31, 2009)
HSBC MUTUAL FUNDHSBC FIXED TERM SERIES 30, HSBC FIXED TERM SERIES 41, HSBC FIXED TERM SERIES 42, HSBC FIXED TERM SERIES 44, HSBC FIXED TERM
SERIES 45, HSBC FIXED TERM SERIES 46, HSBC FIXED TERM SERIES 49
(Referred to in Schedule 1 to the Balance Sheet as at March 31, 2009 and the Revenue Account
6
Main Cat Quantity M Val.
Description Quantity Market / Fair Value
Rupees
for the year ended March 31, 2009)
HSBC FIXED TERM SERIES 30, HSBC FIXED TERM SERIES 41, HSBC FIXED TERM SERIES 42, HSBC FIXED TERM SERIES 44, HSBC FIXED TERM SERIES 45, HSBC FIXED TERM SERIES 46, HSBC FIXED TERM SERIES 49
(Referred to in Schedule 1 to the Balance Sheet as at March 31, 2009 and the Revenue Account
HSBC FIXED TERM SERIES 42
Privately Placed / Unlisted Non-Convertible Debentures / Bonds (30.19 %)Finance (24.13 %)
9.90% SREI Infrastructure Finance Limited 2010 * 5,000 491,353,994 491,353,994
Finance & Investments (56.42 %)8.85% GE Money Financial Services Limited 2009 * 1,048 1,149,082,526
1,149,082,526 Finance & Term Lending (19.45 %)
9.95% Kotak Securities Limited 2009 * 40 396,108,916 396,108,916
Total (Cost Rs. 2,060,333,044) 2,036,545,436
Non-Convertible Debentures / Bonds Listed / Awaiting listing (33.83 %)Finance (17.28 %)
9.30% Citicorp Maruti Finance Limited 2009 $ 400 394,444,834 394,444,834
Finance & Investments (61.04 %)9.20% Citicorp Finance India Limited 2009 $ 800 788,683,311 9.45% Cholamandalam DBS Finance Limited 2009 $ 550 604,428,253
1,393,111,564 Finance & Term Lending (21.68 %)
9.63% Kotak Mahindra Prime Limited 2009 $ 500 494,855,478 494,855,478
Total (Cost Rs. 2,310,391,106) 2,282,411,876
Asset Backed Securities (20.86 %)Finance & Investments (100 %)
IL&FS Trust (Deutsche Postbank Home Finance) PTC 2009 * 70 765,886,054 Indian Loans Receivables Trust Series T2 (Tata Motors Finance ) PTC 2009 * 66 641,450,294
1,407,336,348 Total (Cost Rs. 1,426,751,723) 1,407,336,348
Commercial Papers/Certificate of Deposits (15.12 %)Certificate of Deposits (100 %)
Union Bank of India $ 10,000 992,894,012 State Bank of Hyderabad $ @ 270 26,893,008
1,019,787,020 Total (Cost Rs. 1,019,787,019) 1,019,787,020 TOTAL INVESTMENTS (Cost Rs. 6,817,262,893) 6,746,080,680
HSBC FIXED TERM SERIES 44
Commercial Papers/Certificate of Deposits (100 %)Certificate of Deposits (100 %)
State Bank of Bikaner and Jaipur $ @ 1,990 198,757,852 Punjab National Bank $ 1,980 197,973,739 ICICI Bank Limited $ @ 1,500 149,681,206 Allahabad Bank $ @ 1,500 149,670,306 State Bank of Patiala $ @ 1,400 139,865,919 Kotak Mahindra Bank Limited $ 750 74,469,260
910,418,282 Total (Cost Rs. 910,418,282) 910,418,282 TOTAL INVESTMENTS (Cost Rs. 910,418,282) 910,418,282
HSBC FIXED TERM SERIES 46
Commercial Papers/Certificate of Deposits (100 %)Certificate of Deposits (100 %)
Punjab National Bank $ 3,520 351,950,777 351,950,777
Total (Cost Rs. 351,950,777) 351,950,777 TOTAL INVESTMENTS (Cost Rs. 351,950,777) 351,950,777
HSBC FIXED TERM SERIES 49
Commercial Papers/Certificate of Deposits (100 %)Certificate of Deposits (100 %)
Punjab National Bank $ 5,000 499,917,890 499,917,890
Total (Cost Rs. 499,917,890) 499,917,890 TOTAL INVESTMENTS (Cost Rs. 499,917,890) 499,917,890
Year ended March 31, 2009
Rupees
A. Cashflow from Operating ActivitiesNet Realised Gains for the year 218,814,468
Adjustments for:- (Increase)/Decrease in Investments at Cost 2,102,473,795
(Increase)/Decrease in Other Current Assets 656,250
Increase/(Decrease) in Current Liabilities 9,149,955
Net cash generated from Operations ( A ) 2,331,094,468
B Cashflow from Financing Activities Increase/(Decrease) in Unit Capital (287,093,245)
Increase/(Decrease) in Unit Premium (13,197,620)
Adjustments for:-Increase/(Decrease) in Sundry Creditors for Units Redeemed by Investors -
(Increase)/Decrease in Sundry Debtors for Units Issued to Investors -
Dividend / Distribution during the year (1,247,070)
Dividend / Distribution Tax paid during the year (236,709)
Net cash (used in) financing activities ( B ) (301,774,644)
Net Increase in Cash and Cash Equivalents (A+B) 2,029,319,824
Cash and Cash Equivalents at the Beginning of the Year 114,871,355
Cash and Cash Equivalents at the Close of the Year 2,144,191,179
March 31, 2009Rupees
1 Cash and Cash Equivalents include the following :
Balances with Banks : - In Current Account 4,821,412
Other Collateralised lendingReverse Repos 1,045,511,103
Collateralised Borrowing and Lending Obligation 1,093,858,664
2,144,191,179
2
3 This is the first year of applicability of Accounting Standard 3 on 'Cash Flow Statement' to the Scheme.
This is the Cash Flow Statement referred to in our report of even date.
PARTHA GHOSH For HSBC Asset Management (India)Partner HSBC Mutual Fund Private LimitedMembership No. F-55913For and on behalf of PRICE WATERHOUSE Chartered Accountants
VikramaadityaTrustee Director and Chief Executive Officer
Director
Place: Mumbai Trustee Fund Manager(s)Date : 22 July 2009
HSBC MUTUAL FUND
Cash Flow Statement for the year ended March 31, 2009
For Board of Trustees of
The above Cash Flow Statement has been prepared under the "Indirect Method" set out in Accounting Standard - 3 on Cash FlowStatements, issued by The Institute of Chartered Accountants of India.
HSBC FIXED TERM SERIES 46
7
HSBC MUTUAL FUND - HSBC FIXED TERM SERIES 30 FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and theRevenue Account for the year ended March 31, 2009.
Annexure 1
(i) Transactions during the Year
Nature of Transaction Sponsor Investment Manager
Associate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Sale of Investments - - - 111,603,734 - 111,603,734 Previous Year - - - 81,484,608 - 81,484,608
Investment Management and Advisory Fees - 4,573,322 - - - 4,573,322 Previous Year - 3,978,447 - - - 3,978,447
Brokerage/ Commission on Distribution of Units - - 54,938 - - 54,938 Previous Year - - 692,848 - - 692,848
Borrowings taken and repaid - - 839,700,000 - - 839,700,000 Previous Year - - - - - -
Interest Expense on Borrowings - - 313,041 - - 313,041 Previous Year - - - - - -
(ii) Outstanding As At Year End
Nature of Transaction Sponsor Investment Manager
Associate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Investment Management and Advisory Fees Payable - 600,286 - - - 600,286 Previous Year - 396,148 - - - 396,148
Brokerage/ Commission Payable on Distribution of Units - - 4,798 - - 4,798 Previous Year - - 5,183 - - 5,183
Other Receivables - 220 - - - 220 Previous Year - 97,680 - - - 97,680
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control ofthe Sponsor.
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Sale of InvestmentsHSBC MIP Fund Savings Plan 66,762,439 27,966,324 HSBC Flexi Debt Fund 28,629,992 - HSBC MIP Fund Regular Plan 12,242,186 45,451,328
0
HSBC MUTUAL FUND - HSBC FIXED TERM SERIES 41 FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and theRevenue Account for the year ended March 31, 2009.
Annexure 1
(i) Transactions during the Year
Nature of Transaction SponsorInvestment
ManagerAssociate of
Investment ManagerSchemes under Common
Control of Sponsor
Key Management Personnel and their
Relatives Total
Purchase of Investments - - - 215,816,843 - 215,816,843 Previous Year - - - 517,231,115 - 517,231,115
Sale of Investments - - - 322,435,888 - 322,435,888 Previous Year - - - 106,445,306 - 106,445,306
Investment Management and Advisory Fees - 482,641 - - - 482,641 Previous Year - 162,820 - - - 162,820
Borrowings taken and repaid - - 367,300,000 - - 367,300,000 Previous Year - - - - - -
Interest Expense on Borrowings - - 82,058 - - 82,058 Previous Year - - - - - -
(ii) Outstanding As At Year End
Nature of Transaction SponsorInvestment
ManagerAssociate of
Investment ManagerSchemes under Common
Control of Sponsor
Key Management Personnel and their
Relatives Total
Investment Management and Advisory Fees Payable - 191,247 - - - 191,247 Previous Year - 89,098 - - - 89,098
Brokerage/ Commission Payable on Distribution of Units - - - - - - Previous Year - - 234,084 - - 234,084
Other Receivables - 113 - - - 113 Previous Year - 100,000 - - - 100,000
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control ofthe Sponsor.
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Purchase of InvestmentsHSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 109,910,105 299,997,444 HSBC Cash Fund 37,547,211 156,341,755 HSBC Fixed Term Series 52 28,485,048 - HSBC Floating Rate Fund Long Term Plan - 59,911,597
Sale of InvestmentsHSBC Dynamic Fund 119,861,699 - HSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 95,301,261 59,560,331 HSBC Cash Fund 67,879,558 - HSBC Floating Rate Fund Short Term Plan - 46,884,975
1
HSBC MUTUAL FUND - HSBC FIXED TERM SERIES 42 FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and theRevenue Account for the year ended March 31, 2009.
Annexure 1
(i) Transactions during the Year
Nature of Transaction Sponsor Investment ManagerAssociate of Investment
ManagerSchemes under Common
Control of SponsorKey Management Personnel
and their Relatives Total
Sale of Investments - - - 2,081,978 - 2,081,978 Previous Year
Investment Management and Advisory Fees - 8,357,467 - - - 8,357,467 Previous Year - 1,246,570 - - - 1,246,570
Brokerage/ Commission on Purchase/Sale of Investments - - - - - - Previous Year - - 5,617,520 - - 5,617,520
(ii) Outstanding As At Year End
Nature of Transaction Sponsor Investment ManagerAssociate of Investment
ManagerSchemes under Common
Control of SponsorKey Management Personnel
and their Relatives Total
Investment Management and Advisory Fees Payable - 1,671,655 - - - 1,671,655 Previous Year - 783,565 - - - 783,565
Other Receivables 1,489 1,489 Previous Year - -
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control othe Sponsor.
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Sale of InvestmentsHSBC MIP Fund Savings Plan 2,081,978 -
2
HSBC MUTUAL FUND - HSBC FIXED TERM SERIES 44 FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and theRevenue Account for the year ended March 31, 2009.
Annexure 1
(i) Transactions during the Year
Nature of Transaction Sponsor Investment ManagerAssociate of
Investment Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Purchase of Investments - - - 100,621,260 - 100,621,260 Previous Year - - - 456,982,666 - 456,982,666
Sale of Investments - - - 56,793,369 - 56,793,369 Previous Year - - - - - -
Subscription of Units (including switch in and dividend reinvestment) - - - - - - Previous Year - - - - 2,000,000 2,000,000
Investment Management and Advisory Fees - 1,976,109 - - - 1,976,109 Previous Year - 83,042 - - - 83,042
Borrowings taken and repaid - - 90,000,000 - - 90,000,000 Previous Year - - - - - -
(ii) Outstanding As At Year End
Nature of Transaction Sponsor Investment ManagerAssociate of
Investment Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Investment Management and Advisory Fees Payable - 1,406,275 - - - 1,406,275 Previous Year 83,042 - - - 83,042
Units Outstanding As At Year End - - - - 1,095,163 1,095,163 Previous Year - - - - 2,008,880 2,008,880
Other Receivables 266 266 Previous Year - -
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control of the Sponsor.
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Purchase of InvestmentsHSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 52,435,323 227,969,674 HSBC Unique Opportunities Fund 48,185,937 - HSBC Cash Fund - 229,012,992
Sale of InvestmentsHSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 25,480,433 - HSBC Cash Fund 18,943,508 - HSBC Unique Opportunities Fund 9,526,658 -
(iv) Disclosures in respect of material transactions with persons referred to in Note 13 (I)(v) for key management personnel and their relatives
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Subscription of Units (including switch in and dividend reinvestment)Sanjay Prakash - 1,000,000Naina Lal Kidwai - 1,000,000
Units Outstanding As At Year EndSanjay Prakash - 1,004,440Naina Lal Kidwai 1,095,163 1,004,440
3
HSBC MUTUAL FUND - HSBC FIXED TERM SERIES 45 FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and theRevenue Account for the year ended March 31, 2009.
Annexure 1
(i) Transactions during the Year
Nature of Transaction SponsorInvestment
Manager
Associate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Purchase of Investments - - - 91,750,063 - 91,750,063 Previous Year - - - 182,432,055 - 182,432,055
Sale of Investments 38,186,143 38,186,143 Previous Year - -
Investment Management and Advisory Fees - 647,051 - - - 647,051 Previous Year - 14,916 - - - 14,916
Borrowings taken and repaid - - 13,100,000 - - 13,100,000 Previous Year - - - - - -
Interest Expense on Borrowings - - 5,333 - - 5,333 Previous Year - - - - - -
(ii) Outstanding As At Year End
Nature of Transaction SponsorInvestment
Manager
Associate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Investment Management and Advisory Fees Payable - 290,903 - - - 290,903 Previous Year - 14,916 - - - 14,916
Other Receivables - 57 - - - 57 Previous Year - 6,590 - - - 6,590
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control ofthe Sponsor.
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Purchase of InvestmentsHSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 82,523,280 182,432,055 HSBC Cash Fund 9,226,783
Sale of InvestmentsHSBC Fixed Term Series 46 19,161,234 - HSBC Income Short Term Plan 19,024,909 -
4
HSBC MUTUAL FUND - HSBC FIXED TERM SERIES 46 FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and theRevenue Account for the year ended March 31, 2009.
Annexure 1
(i) Transactions during the Year
Nature of Transaction SponsorInvestment
ManagerAssociate of
Investment Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Purchase of Investments - - - 650,127,830 - 650,127,830 Previous Year - - - - - -
Sale of Investments - - - 3,043,810,910 - 3,043,810,910 Previous Year - - - - - -
Subscription of Units (including switch in and dividend reinvestment) - - - - - - Previous Year - - - - 2,000,000 2,000,000
Investment Management and Advisory Fees - 10,410,719 - - - 10,410,719 Previous Year - 99,072 - - - 99,072
Borrowings taken and repaid - - 504,500,000 - - 504,500,000 Previous Year - - - - - -
Interest Expense on Borrowings - - 6,612 - - 6,612 Previous Year - - - - - -
(ii) Outstanding As At Year End
Nature of Transaction SponsorInvestment
ManagerAssociate of
Investment Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Investment Management and Advisory Fees Payable - 2,117,909 - - - 2,117,909 Previous Year - 99,072 - - - 99,072
Units Outstanding As At Year End - - - - 2,174,333 2,174,333 Previous Year - - - - 2,002,000 2,002,000
Other Receivables - 587 - - - 587 Previous Year - 1,006 - - - 1,006
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control ofthe Sponsor.
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Purchase of InvestmentsHSBC Cash Fund 467,727,890 - 467,727,890 HSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 108,872,580 - 108,872,580
Sale of InvestmentsHSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 1,932,343,961 - 1,932,343,961 HSBC Fixed Term Series 53 404,073,532 - 404,073,532
(iv) Disclosures in respect of material transactions with persons referred to in Note 13 (I)(v) for key management personneland their relatives
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Subscription of Units (including switch in and dividend reinvestment)Naina Lal Kidwai - 2,000,000
Units Outstanding As At Year EndNaina Lal Kidwai 2,174,333 2,002,000
5
HSBC MUTUAL FUND - HSBC FIXED TERM SERIES 49 FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and theRevenue Account for the year ended March 31, 2009.
Annexure 1
(i) Transactions during the Year
Nature of Transaction Sponsor Investment ManagerAssociate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Purchase of Investments - - - 13,882,629 - 13,882,629 Previous Year - - - 1,460,869,706 - 1,460,869,706
Sale of Investments - - - 295,254,877 - 295,254,877 Previous Year - - - - - -
Subscription of Units (including switch in and dividend reinvestment) - - - - - - Previous Year - - - - 1,500,000 1,500,000
Investment Management and Advisory Fees - 7,592,639 - - - 7,592,639 Previous Year - 73,267 - - - 73,267
(ii) Outstanding As At Year End
Nature of Transaction Sponsor Investment ManagerAssociate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Investment Management and Advisory Fees Payable - 1,218,942 - - - 1,218,942 Previous Year - 73,267 - - - 73,267
Units Outstanding As At Year End - - - - - - Previous Year - - - - 1,501,500 1,501,500
Other Receivables - 789 - - - 789 Previous Year - 5,406 - 10,549,055 - 10,554,461
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control ofthe Sponsor.
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Purchase of InvestmentsHSBC Midcap Fund 13,882,629 - HSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) - 1,324,400,894
Sale of InvestmentsHSBC Cash Fund 229,940,974 - HSBC Income Fund Investment Plan 50,555,600 -
Other ReceivablesHSBC Emerging Market Fund 8,317,370 HSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 2,231,685
(iv) Disclosures in respect of material transactions with persons referred to in Note 13 (I)(v) for key management personneland their relatives
April 01, 2008 to March 31, 2009
April 01, 2007 to March 31, 2008
Subscription of Units (including switch in and dividend reinvestment)Sanjay Prakash - 1,500,000
Units Outstanding As At Year EndSanjay Prakash - 1,501,500
6
HSBC MUTUAL FUND - HSBC FIXED TERM SERIES 50 FUND
Schedules forming part of the Balance Sheet as at March 31, 2008 and theRevenue Account for the period April 17, 2008 to March 31, 2009.
Annexure 1
(i) Transactions during the Year
Nature of Transaction Sponsor Investment ManagerAssociate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Sale of Investments - - - 12,041,071 - 12,041,071
Investment Management and Advisory Fees - 9,295,622 - - - 9,295,622
Borrowings taken and repaid - - 8,200,000 - - 8,200,000
Interest Expense on Borrowings - - 3,194 - - 3,194
(ii) Outstanding As At Year End
Nature of Transaction Sponsor Investment ManagerAssociate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Investment Management and Advisory Fees Payable - 1,556,366 - - - 1,556,366
Other Receivables - 1,046 - - - 1,046
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control ofthe Sponsor.
April 17, 2008 to March 31, 2009
Sale of InvestmentsHSBC Fixed Term Series 52 9,182,825 HSBC Fixed Term Series 53 1,875,579
7
HSBC MUTUAL FUND - HSBC FIXED TERM SERIES 52 FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and theRevenue Account for the period April 24, 2008 to March 31, 2009.
Annexure 1
(i) Transactions during the Year
Nature of Transaction Sponsor Investment ManagerAssociate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Purchase of Investments - - - 239,811,337 - 239,811,337
Sale of Investments - - - 540,226,314 - 540,226,314
Subscription of Units (including switch in and dividend reinvestment) - - - - 500,000 500,000
Investment Management and Advisory Fees - 9,657,908 - - - 9,657,908
Borrowings taken and repaid - - 4,756,100,000 - - 4,756,100,000
Interest Expense on Borrowings - - 1,192,072 - - 1,192,072
(ii) Outstanding As At Year End
Nature of Transaction Sponsor Investment ManagerAssociate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Investment Management Fees Payable - 4,466,971 - - - 4,466,971
Other Receivables - 568 - - - 568
Units Outstanding As At Year End - - - - 537,678 537,678
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control ofthe Sponsor.
April 24, 2008 to March 31, 2009
Purchase of InvestmentsHSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 230,628,512
Sale of InvestmentsHSBC Dynamic Fund 138,149,556 HSBC Fixed Term Series 54 93,653,611 HSBC Fixed Term Series 63 82,084,463 HSBC Flexi Debt Fund 67,899,080
(iv) Disclosures in respect of material transactions with persons referred to in Note 13 (I)(v) for key management personneland their relatives
April 24, 2008 to March 31, 2009
Subscription of Units (including switch in and dividend reinvestment)Rashid K Kidwai (relative) 500,000
Units Outstanding As At Year EndRashid K Kidwai (relative) 537,678
8
HSBC MUTUAL FUND - HSBC FIXED TERM SERIES 53 FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and theRevenue Account for the period May 23, 2008 to March 31, 2009.
Annexure 1
(i) Transactions during the Year
Nature of Transaction Sponsor Investment ManagerAssociate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Purchase of Investments - - - 510,481,376 - 510,481,376
Sale of Investments 406,723,407 406,723,407
Investment Management and Advisory Fees - 7,227,464 - - - 7,227,464
Borrowings taken and repaid - - 13,117,700,000 - - 13,117,700,000
Interest Expense on Borrowings - - 4,619,060 - - 4,619,060
(ii) Outstanding As At Year End
Nature of Transaction Sponsor Investment ManagerAssociate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Investment Management and Advisory Fees Payable - 3,043,613 - - - 3,043,613
Other Receivables - 409 - - - 409
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control ofthe Sponsor.
May 23, 2008 to March 31, 2009
Purchase of InvestmentsHSBC Fixed Term Series 46 404,073,532 HSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 99,918,277
Sale of InvestmentsHSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 172,137,057 HSBC Fixed Term Series 54 99,451,845 HSBC Dynamic Fund 68,773,949
9
HSBC MUTUAL FUND - HSBC FIXED TERM SERIES 54 FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and theRevenue Account for the period May 27, 2008 to March 31, 2009.
Annexure 1
(i) Transactions during the Year
Nature of Transaction Sponsor Investment ManagerAssociate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Purchase of Investments - - - 1,053,944,240 - 1,053,944,240
Sale of Investments - - - 251,592,842 - 251,592,842
Investment Management and Advisory Fees - 10,167,088 - - - 10,167,088
Borrowings taken and repaid - - 8,801,200,000 - - 8,801,200,000
Interest Expense on Borrowings - - 2,846,603 - - 2,846,603
(ii) Outstanding As At Year End
Nature of Transaction Sponsor Investment ManagerAssociate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Investment Management and Advisory Fees Payable - 6,532,414 - - - 6,532,414
Other Receivables - 458 - - - 458
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control ofthe Sponsor.
May 27, 2008 to March 31, 2009
Purchase of InvestmentsHSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 452,519,186 HSBC Fixed Term Series 46 248,908,268
Sale of InvestmentsHSBC Unique Opportunities Fund 88,656,850 HSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 49,955,404 HSBC Flexi Debt Fund 48,829,814 HSBC Floating Rate Fund Long Term Plan 39,364,987
10
HSBC MUTUAL FUND - HSBC FIXED TERM SERIES 56 FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and theRevenue Account for the period July 25, 2008 to March 31, 2009.
Annexure 1
(i) Transactions during the Year
Nature of Transaction Sponsor Investment ManagerAssociate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Purchase of Investments - - - 724,614,385 - 724,614,385
Sale of Investments 618,658,508 - 618,658,508
Subscription of Units (including switch in and dividend reinvestment) - - 150,000,000 - - 150,000,000
Investment Management and Advisory Fees - 4,075,993 - - - 4,075,993
Borrowings taken and repaid - - 980,000,000 - - 980,000,000
(ii) Outstanding As At Year End
Nature of Transaction Sponsor Investment ManagerAssociate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Investment Management and Advisory Fees Payable - 2,593,270 - - - 2,593,270
Other Receivables - 283 - - - 283
Units Outstanding As At Year End - - 161,047,500 - - 161,047,500
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control ofthe Sponsor.
July 25, 2008 to March 31, 2009
Purchase of InvestmentsHSBC Fixed Term Series 58 247,730,332 HSBC Floating Rate Fund Long Term Plan 217,016,351 HSBC Fixed Term Series 55 144,183,318
Sale of InvestmentsHSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 446,184,716 HSBC Cash Fund 144,758,997
11
HSBC MUTUAL FUND - HSBC FIXED TERM SERIES 57 FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and theRevenue Account for the peiord August 13, 2008 to March 31, 2009.
Annexure 1
(i) Transactions during the Year
Nature of Transaction SponsorInvestment
ManagerAssociate of
Investment Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Subscription of Units (including switch in and dividend reinvestment) - - - - - -
Investment Management and Advisory Fees - 1,460,131 - - - 1,460,131
Borrowings taken and repaid - - 3,000,000 - - 3,000,000
Interest Expense on Borrowings - - 1,779 - - 1,779
(ii) Outstanding As At Year End
Nature of Transaction SponsorInvestment
ManagerAssociate of
Investment Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Investment Management and Advisory Fees Payable - 678,875 - - - 678,875
Other Receivables - 131 - - - 131
12
HSBC MUTUAL FUND - HSBC FIXED TERM SERIES 59 FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and theRevenue Account for the period July 04, 2008 to March 31, 2009.
Annexure 1
(i) Transactions during the Year
Nature of Transaction SponsorInvestment
ManagerAssociate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Purchase of Investments - - - 4,152,054,068 - 4,152,054,068
Sale of Investments - - - 1,570,293,813 - 1,570,293,813
Investment Management and Advisory Fees - 8,425,354 - - - 8,425,354
Borrowings taken and repaid - - 9,071,700,000 - - 9,071,700,000
Interest Expense on Borrowings - - 3,348,391 - - 3,348,391
(ii) Outstanding As At Year End
Nature of Transaction SponsorInvestment
ManagerAssociate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Investment Management and Advisory Fees Payable - 3,095,513 - - - 3,095,513
Other Receivables - 2,606 - - - 2,606
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control ofthe Sponsor.
July 04, 2008 to March 31, 2009
Purchase of InvestmentsHSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 3,348,632,684
Sale of InvestmentsHSBC Cash Fund 1,439,371,332
13
HSBC MUTUAL FUND - HSBC FIXED TERM SERIES 61 FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and theRevenue Account for the period July 17, 2008 to March 31, 2009.
Annexure 1
(i) Transactions during the Year
Nature of Transaction Sponsor Investment ManagerAssociate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Purchase of Investments - - - 1,154,088,488 - 1,154,088,488
Sale of Investments - - - 974,086,588 - 974,086,588
Investment Management and Advisory Fees - 2,702,643 - - - 2,702,643
Borrowings taken and repaid - - 872,600,000 - - 872,600,000
Interest Expense on Borrowings - - 392,021 - - 392,021
(ii) Outstanding As At Year End
Nature of Transaction Sponsor Investment ManagerAssociate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Investment Management and Advisory Fees Payable - 1,832,175 - - - 1,832,175 Previous Year -
Other Receivables - 224 - - - 224
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control ofthe Sponsor.
July 17, 2008 to March 31, 2009
Purchase of InvestmentsHSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 995,468,941
Sale of InvestmentsHSBC Cash Fund 663,188,077 HSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 177,833,040
14
HSBC MUTUAL FUND - HSBC FIXED TERM SERIES 62 FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and theRevenue Account for the period August 22, 2008 to March 31, 2009.
Annexure 1
(i) Transactions during the Year
Nature of Transaction Sponsor Investment ManagerAssociate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Purchase of Investments - - - 932,120,670 - 932,120,670
Sale of Investments - - - 902,330,892 - 902,330,892
Investment Management and Advisory Fees - 6,078,300 - - - 6,078,300
Brokerage/ Commission on Distribution of Units - - 87,518 - - 87,518
(ii) Outstanding As At Year End
Nature of Transaction Sponsor Investment ManagerAssociate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Investment Management and Advisory Fees Payable - 1,680,187 - - - 1,680,187
Brokerage/ Commission Payable for Distribution of Units - - 16,396 - - 16,396
Other Receivables - 978 - - - 978
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control ofthe Sponsor.
August 22, 2008 to March 31, 2009
Purchase of InvestmentsHSBC Cash Fund 895,795,642
Sale of InvestmentsHSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 902,330,892
15
HSBC MUTUAL FUND - HSBC FIXED TERM SERIES 63 FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and theRevenue Account for the period September 04, 2008 to March 31, 2009.
Annexure 1
(i) Transactions during the Year
Nature of Transaction Sponsor Investment ManagerAssociate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Purchase of Investments - - - 1,610,608,232 - 1,610,608,232
Sale of Investments - - - 770,732,138 - 770,732,138
Investment Management and Advisory Fees - 330,353 - - - 330,353
Reimbursement of Expenses - - 305,845 - - 305,845
(ii) Outstanding As At Year End
Nature of Transaction Sponsor Investment ManagerAssociate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Investment Management and Advisory Fees Payable - 52,084 - - - 52,084
Other Receivables - 306,061 - - - 306,061
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control ofthe Sponsor.
September 04, 2008 to March 31, 2009
Purchase of InvestmentsHSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 1,241,166,555 HSBC Cash Fund 228,321,432
Sale of InvestmentsHSBC Cash Fund 369,433,851 HSBC Fixed Term Series 66 158,098,442 HSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 95,298,632
16
HSBC MUTUAL FUND - HSBC FIXED TERM SERIES 66 FUND
Schedules forming part of the Balance Sheet as at March 31, 2009 and theRevenue Account for the period September 18, 2008 to March 31, 2009.
Annexure 1
(i) Transactions during the Year
Nature of Transaction Sponsor Investment ManagerAssociate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Purchase of Investments - - - 647,484,185 - 647,484,185
Subscription of Units (including switch in and dividend reinvestment) - - - - 2,400,000 2,400,000
Investment Management and Advisory Fees - 514,044 - - - 514,044
(ii) Outstanding As At Year End
Nature of Transaction Sponsor Investment ManagerAssociate of Investment
Manager
Schemes under Common Control of
Sponsor
Key Management Personnel and their
Relatives Total
Investment Management and Advisory Fees Payable - 119,744 - - - 119,744
Other Receivables - 148 - - - 148
(iii) Details of material transactions with respect to parties referred to in Note 13 (I)(iv) for Schemes under common control ofthe Sponsor.
September 18, 2008 to March 31, 2009
Purchase of InvestmentsHSBC Ultra Short Term Bond Fund (Formerly, HSBC Liquid Plus Fund) 240,758,392 HSBC Fixed Term Series 63 158,098,442 HSBC Floating Rate Fund Long Term Plan 121,469,231 HSBC Equity Fund 78,703,374
(iv) Disclosures in respect of material transactions with persons referred to in Note 13 (I)(v) for key management personneland their relatives
September 18, 2008 to March 31, 2009
Subscription of Units (including switch in and dividend reinvestment)Manu Tandon 2,400,000
Units Outstanding As At Year EndManu Tandon - 2,532,144
17
HSBC MUTUAL FUND - HSBC FIXED TERM SERIES 30, HSBC FIXED TERM SERIES 41, HSBC FIXED TERM SERIES 42, HSBC FIXED TERM SERIES 44, HSBC FIXED TERM SERIES 45, HSBC FIXED TERM SERIES 46, HSBC FIXED TERM SERIES 49, HSBC FIXED TERM SERIES 50, HSBC FIXED TERM SERIES 52, HSBC FIXED TERM SERIES 53, HSBC FIXED TERM SERIES 54, HSBC FIXED TERM SERIES 56, HSBC FIXED TERM SERIES 57, HSBC FIXED TERM SERIES 59, HSBC FIXED TERM SERIES 61, HSBC FIXED TERM SERIES 62, HSBC FIXED TERM SERIES 63, HSBC FIXED TERM SERIES 66.
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
SCHEDULE 8
0Notes to the Financial Statements
1 Organisation HSBC Fixed Term Series (the “Scheme”) is a closed-ended income scheme of HSBC Mutual Fund (the “Fund”) offering a series of fixed maturity plans. HSBC Mutual Fund has been sponsored by HSBC Securities and Capital Markets (India) Private Limited. HSBC Asset Management (India) Private Limited incorporated under the Companies Act, 1956 has been appointed as the asset management company. The Scheme has a series of close ended plans (the “plan”) having fixed maturity. The investment objective of the Scheme and the plans launched thereunder is to seek generation of reasonable returns by investing in a portfolio of fixed income instruments normally maturing in line with the time profile of the respective Scheme(s). The key features of the fixed term series presented in these financial statements are mentioned below.
Scheme Name
New Fund Offering (NFO)
Open Date
NFO Close Date
Date of Allotment
Tenure of the Scheme
Options Offered
Fixed Term Series 30
May 03, 2007
May 31, 2007
June 11, 20073 years from the date of allotment
Regular and Institutional Options - Growth and Dividend Sub Options
Fixed Term Series 41
December 17, 2007
December 17, 2007
December 20, 2007
487 days from the date of allotment
Regular and Institutional Options - Growth and Dividend Sub Options
Fixed Term Series 42
January 29, 2008
February 05, 2008
February 08, 2008
16 months from the date of allotment
Regular and Institutional Options - Growth and Dividend Sub Options
Fixed Term Series 44
March 04, 2008
March 11, 2008
March 19, 2008
13 months from the date of allotment
Regular and Institutional Options - Growth and Dividend Sub Options
Fixed Term Series 45
March 18, 2008
March 18, 2008
March 28, 2008
370 days from the date of allotment
Regular and Institutional Options - Growth and Dividend Sub Options
Fixed Term Series 46
March 24, 2008
March 27, 2008
March 28, 2008
370 days from the date of allotment
Regular and Institutional Options - Growth and Dividend Sub Options
HSBC MUTUAL FUND - HSBC FIXED TERM SERIES 30, HSBC FIXED TERM SERIES 41, HSBC FIXED TERM SERIES 42, HSBC FIXED TERM SERIES 44, HSBC FIXED TERM SERIES 45, HSBC FIXED TERM SERIES 46, HSBC FIXED TERM SERIES 49, HSBC FIXED TERM SERIES 50, HSBC FIXED TERM SERIES 52, HSBC FIXED TERM SERIES 53, HSBC FIXED TERM SERIES 54, HSBC FIXED TERM SERIES 56, HSBC FIXED TERM SERIES 57, HSBC FIXED TERM SERIES 59, HSBC FIXED TERM SERIES 61, HSBC FIXED TERM SERIES 62, HSBC FIXED TERM SERIES 63, HSBC FIXED TERM SERIES 66.
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
Scheme Name
New Fund Offering (NFO)
Open Date
NFO Close Date
Date of Allotment
Tenure of the Scheme
Options Offered
Fixed Term Series 49
March 28, 2008
March 28, 2008
March 28, 2008
370 days from the date of allotment
Regular and Institutional Options - Growth and Dividend Sub Options
Fixed Term Series 50
April 17, 2008
April 28, 2008
April 29, 2008
370 days from the date of allotment
Regular and Institutional Options - Growth and Dividend Sub Options
Fixed Term Series 52
April 24, 2008
May 05, 2008
May 06, 20081 year from the date of allotment
Regular and Institutional Options - Growth and Dividend Sub Options
Fixed Term Series 53
May 23, 2008
May 26, 2008
May 29, 2008
370 days from the date of allotment
Regular and Institutional Options - Growth and Dividend Sub Options
Fixed Term Series 54
May 27, 2008
June 09, 2008
June 12, 2008
370 days from the date of allotment
Regular and Institutional Options - Growth and Dividend Sub Options
Fixed Term Series 56
July 25, 2008
August 04, 2008
August 07, 2008
370 days from the date of allotment
Regular and Institutional Options - Growth and Dividend Sub Options
Fixed Term Series 57
August 13, 2008
August 18, 2008
August 22, 2008
370 days from the date of allotment
Regular and Institutional Options - Growth and Dividend Sub Options
Fixed Term Series 59
July 07, 2008
July 10, 2008
July 15, 2008 1 year from the date of allotment
Regular and Institutional Options - Growth and Dividend Sub Options
Fixed Term Series 61
July 17, 2008
July 23, 2008
July 29, 2008 1 year from the date of allotment
Regular and Institutional Options - Growth and Dividend Sub Options
HSBC MUTUAL FUND - HSBC FIXED TERM SERIES 30, HSBC FIXED TERM SERIES 41, HSBC FIXED TERM SERIES 42, HSBC FIXED TERM SERIES 44, HSBC FIXED TERM SERIES 45, HSBC FIXED TERM SERIES 46, HSBC FIXED TERM SERIES 49, HSBC FIXED TERM SERIES 50, HSBC FIXED TERM SERIES 52, HSBC FIXED TERM SERIES 53, HSBC FIXED TERM SERIES 54, HSBC FIXED TERM SERIES 56, HSBC FIXED TERM SERIES 57, HSBC FIXED TERM SERIES 59, HSBC FIXED TERM SERIES 61, HSBC FIXED TERM SERIES 62, HSBC FIXED TERM SERIES 63, HSBC FIXED TERM SERIES 66.
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
Scheme Name
New Fund Offering (NFO)
Open Date
NFO Close Date
Date of Allotment
Tenure of the Scheme
Options Offered
Fixed Term Series 62
August 22, 2008
August 22, 2008
August 26, 2008
1 year from the date of allotment
Regular and Institutional Options - Growth and Dividend Sub Options
Fixed Term Series 63
September 04, 2008
September 08, 2008
September 09, 2008
1 year from the date of allotment
Regular and Institutional Options - Growth and Dividend Sub Options
Fixed Term Series 66
September 18, 2008
September 25, 2008
October 03, 2008
18 months from the date of allotment
Regular and Institutional Options - Growth and Dividend Sub Options
The Scheme will not declare dividend under the Growth Option\ Sub- Option of any of the Plans in normal circumstance. The income earned on such units will remain invested within the Scheme and will be reflected in the net asset value of these Plans.
2 Significant Accounting Policies
2.1 Basis of Accounting
The Schemes maintain their 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 “Regulations”) and amendments thereto, as applicable.
2.2 Portfolio Valuation
Investments are stated at market/fair value at the Balance Sheet date/date of determination. In valuing the Schemes investments:
i. Debt securities listed on a recognised stock exchange are valued at the last quoted closing price on
the National Stock Exchange of India Limited (NSE). If no sale is reported at that time, such securities are valued at fair value as determined in good faith by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund.
ii. Non-traded and thinly traded debt securities, are valued at fair value as determined by HSBC Asset
Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund in accordance with the guidelines for valuation of securities for mutual funds dated September 18, 2000 and amendments thereto, as applicable, issued by the Securities and Exchange Board of India (SEBI).
HSBC MUTUAL FUND - HSBC FIXED TERM SERIES 30, HSBC FIXED TERM SERIES 41, HSBC FIXED TERM SERIES 42, HSBC FIXED TERM SERIES 44, HSBC FIXED TERM SERIES 45, HSBC FIXED TERM SERIES 46, HSBC FIXED TERM SERIES 49, HSBC FIXED TERM SERIES 50, HSBC FIXED TERM SERIES 52, HSBC FIXED TERM SERIES 53, HSBC FIXED TERM SERIES 54, HSBC FIXED TERM SERIES 56, HSBC FIXED TERM SERIES 57, HSBC FIXED TERM SERIES 59, HSBC FIXED TERM SERIES 61, HSBC FIXED TERM SERIES 62, HSBC FIXED TERM SERIES 63, HSBC FIXED TERM SERIES 66.
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
iii. Privately placed debt securities are valued at fair value as determined in good faith by HSBC Asset Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund.
iv. Asset backed securities are valued at fair value as determined in good faith by HSBC Asset
Management (India) Private Limited under procedures approved by the Board of Trustees of HSBC Mutual Fund .
v. Instruments bought on ‘repo’ basis are valued at the resale price after deduction of applicable
interest up to the date of resale.
vi. Traded money market securities are valued at the yield at which they are traded on the valuation date. If no sale is reported at that time, such security is valued at the last traded price plus accretion of the difference between the face value and the last traded price. Non traded money market instruments are valued at cost plus accrued interest.
Following the issue of guidance note on accounting for investments in the financial statements of the mutual funds by the Institute of Chartered Accountants of India (pursuant to the Eleventh Schedule of the Regulations) net unrealised appreciation / depreciation in the value of investments is determined separately for each category of investments. In respect of each category of investments, the net change in the unrealised appreciation if any, between two balance sheet dates / valuation dates is accounted through the Revenue Account and thereafter the net unrealised appreciation is transferred from the Revenue Account to the Unrealised Appreciation Reserve. The net depreciation if any, is accounted through the Revenue Account. Net unrealised appreciation is reduced from the distributable income at the time of income distribution. The loss on investments sold/transferred during the year/period is charged to the Revenue Account instead of being first being adjusted against the provision for depreciation, if already created in the previous year/period as recommended in the Guidance Note. However the departure from the Guidance Note does not have any net impact on the net asset value of the options of the Scheme.
2.3 Securities Transactions
Investment securities transactions are accounted for on a trade date basis. The Scheme uses the average cost method for determining the realized gain or loss on sale of investments.
2.4 Investment Income
Interest income is recorded on an accrual basis.
2.5 Net Asset Value
The net asset value of the units of the Scheme is determined separately for the units issued under the Growth and Dividend Options/ Sub-Options.
HSBC MUTUAL FUND - HSBC FIXED TERM SERIES 30, HSBC FIXED TERM SERIES 41, HSBC FIXED TERM SERIES 42, HSBC FIXED TERM SERIES 44, HSBC FIXED TERM SERIES 45, HSBC FIXED TERM SERIES 46, HSBC FIXED TERM SERIES 49, HSBC FIXED TERM SERIES 50, HSBC FIXED TERM SERIES 52, HSBC FIXED TERM SERIES 53, HSBC FIXED TERM SERIES 54, HSBC FIXED TERM SERIES 56, HSBC FIXED TERM SERIES 57, HSBC FIXED TERM SERIES 59, HSBC FIXED TERM SERIES 61, HSBC FIXED TERM SERIES 62, HSBC FIXED TERM SERIES 63, HSBC FIXED TERM SERIES 66.
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
For reporting the net asset value for the Options/ Sub-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 / Sub - Options in proportion to the value of the units outstanding.
2.6 Unit Premium Reserve Upon issue and redemption of units, the net premium or discount to the face value of units is adjusted against the unit premium reserve of the Scheme, after an appropriate portion of the issue proceeds and redemption payout is credited or debited respectively to the income equalization reserve. The unit premium reserve is available for dividend distribution except to the extent it is represented by unrealised net appreciation in value of investments.
2.7 Load Charges
Load collected is retained under a separate account in the Scheme and is used to meet the selling and distribution expenses.
2.8 Initial Issue Expenses
Initial issue expenses comprise those costs directly associated with the issue of units of the Scheme and include brokerage, advertising, business promotion, marketing, printing, distribution and other miscellaneous expenses. Initial issue expenses upto 6% of the amount collected from the investors during the initial offer period have been charged to the Scheme and are being amortized over tenure of the Scheme from the date of allotment of units.
3 Investment Management and Advisory Fees
The Schemes have paid or provided for investment management and advisory fees payable to HSBC
Asset Management (India) Private Limited for managing the Schemes at an average annual rate of the
average daily net asset values recorded by the respective Scheme as follows.
Name of the Scheme
Investment Management and Advisory fees as a
percentage of the average daily net asset
value Fixed Term Series – 30 0.47% Fixed Term Series – 41 0.10% Fixed Term Series – 42 0.13% Fixed Term Series – 44 0.17% Fixed Term Series – 45 0.26% Fixed Term Series – 46 0.41% Fixed Term Series – 49 0.22% Fixed Term Series – 50 * 0.22% Fixed Term Series – 52 * 0.43% Fixed Term Series – 53 * 0.48% Fixed Term Series – 54 * 0.63%
HSBC MUTUAL FUND - HSBC FIXED TERM SERIES 30, HSBC FIXED TERM SERIES 41, HSBC FIXED TERM SERIES 42, HSBC FIXED TERM SERIES 44, HSBC FIXED TERM SERIES 45, HSBC FIXED TERM SERIES 46, HSBC FIXED TERM SERIES 49, HSBC FIXED TERM SERIES 50, HSBC FIXED TERM SERIES 52, HSBC FIXED TERM SERIES 53, HSBC FIXED TERM SERIES 54, HSBC FIXED TERM SERIES 56, HSBC FIXED TERM SERIES 57, HSBC FIXED TERM SERIES 59, HSBC FIXED TERM SERIES 61, HSBC FIXED TERM SERIES 62, HSBC FIXED TERM SERIES 63, HSBC FIXED TERM SERIES 66.
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
Name of the Scheme
Investment Management and Advisory fees as a
percentage of the average daily net asset
value Fixed Term Series – 56 * 0.51% Fixed Term Series – 57 * 0.42% Fixed Term Series – 59 * 0.35% Fixed Term Series – 61 * 0.41% Fixed Term Series – 62 * 0.24% Fixed Term Series – 63 * 0.06% Fixed Term Series – 66 * 0.16%
* Annualised
All costs, charges and expenses incurred by HSBC Asset Management (India) Private Limited in the
administration and execution of the activities of the Scheme, except costs allowed to be charged to the
Scheme under the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and
amendments thereto as applicable, are on their own account for which they receive investment
management and advisory fees. 4 Trusteeship Fees
In accordance with the Deed of Trust dated February 7, 2002 between HSBC Securities and Capital
Markets (India) Private Limited (“The Settlor”) and the Board of Trustees of HSBC Mutual Fund, the
Fund has paid or provided for a fee not exceeding Rs.20,000 for each meeting of the Board of Trustees
attended by such Trustee not affiliated with the Settlor. 5 Custodian Fees
JP Morgan Chase Bank provides custodial services to the Schemes for which it receives custody fees. 6 Income Taxes
No provision for income tax is made as the Schemes qualify as a recognized mutual fund under Section 10(23D) of the Income Tax Act, 1961.
7 Limitation on Expenses
The total expenses chargeable to the Scheme HSBC Fixed Term Series 63 are limited to 0.12% of the average daily net assets of the Scheme. HSBC Asset Management (India) Private Limited has borne Rs. 305,845 in respect of the Scheme in excess of the above mentioned percentage of the average daily net assets to be charged to the Scheme as total expenses for the period.
HSBC MUTUAL FUND - HSBC FIXED TERM SERIES 30, HSBC FIXED TERM SERIES 41, HSBC FIXED TERM SERIES 42, HSBC FIXED TERM SERIES 44, HSBC FIXED TERM SERIES 45, HSBC FIXED TERM SERIES 46, HSBC FIXED TERM SERIES 49, HSBC FIXED TERM SERIES 50, HSBC FIXED TERM SERIES 52, HSBC FIXED TERM SERIES 53, HSBC FIXED TERM SERIES 54, HSBC FIXED TERM SERIES 56, HSBC FIXED TERM SERIES 57, HSBC FIXED TERM SERIES 59, HSBC FIXED TERM SERIES 61, HSBC FIXED TERM SERIES 62, HSBC FIXED TERM SERIES 63, HSBC FIXED TERM SERIES 66.
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
8 Aggregate Appreciation and Depreciation In Value of Investments Aggregate appreciation and depreciation in value of investments is as follows:
March 31, 2009
March 31, 2008
Non Convertible Debentures and Bonds
Listed / Awaiting Listing
Privately Placed Non Convertible Debentures /
Bonds
Asset Backed Securities
Non Convertible Debentures and Bonds
Listed / Awaiting Listing
Privately Placed Non Convertible Debentures /
Bonds
Asset Backed Securities
Fixed Term Series 30
- Appreciation - - 745,872 8,792,569 5,154,255 1,246,645
- Depreciation 6,587,393 10,079,072 - - - -
Fixed Term Series 41
- Appreciation - - - - 330,750 -
- Depreciation 21,345 - - - - 346,160
Fixed Term Series 42
- Appreciation - - - - - 1,142,480
- Depreciation 27,979,231 23,787,608 19,415,374 6,399,374 16,219,823 7,588,573
Fixed Term Series 46
- Appreciation - - - - 139,867 -
- Depreciation - - - - 19,226 -
Fixed Term Series 49
- Appreciation - - - - 125,881 -
- Depreciation - - - - - -
Fixed Term Series 50
- Appreciation - - - - - -
- Depreciation 2,310,102 - 2,829,546 - - -
Fixed Term Series 52
- Appreciation - - - - - -
- Depreciation 6,441,550 3,985,867 8,299,194 - - -
Fixed Term Series 53
- Appreciation - - - - - -
- Depreciation 1,893,577 - - - - -
Fixed Term Series 54
- Appreciation - - - - - -
- Depreciation 4,406,230 3,258,038 - - - -
HSBC MUTUAL FUND - HSBC FIXED TERM SERIES 30, HSBC FIXED TERM SERIES 41, HSBC FIXED TERM SERIES 42, HSBC FIXED TERM SERIES 44, HSBC FIXED TERM SERIES 45, HSBC FIXED TERM SERIES 46, HSBC FIXED TERM SERIES 49, HSBC FIXED TERM SERIES 50, HSBC FIXED TERM SERIES 52, HSBC FIXED TERM SERIES 53, HSBC FIXED TERM SERIES 54, HSBC FIXED TERM SERIES 56, HSBC FIXED TERM SERIES 57, HSBC FIXED TERM SERIES 59, HSBC FIXED TERM SERIES 61, HSBC FIXED TERM SERIES 62, HSBC FIXED TERM SERIES 63, HSBC FIXED TERM SERIES 66.
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
March 31, 2009
March 31, 2008
Non Convertible Debentures and Bonds
Listed / Awaiting Listing
Privately Placed Non Convertible Debentures /
Bonds
Asset Backed Securities
Non Convertible Debentures and Bonds
Listed / Awaiting Listing
Privately Placed Non Convertible Debentures /
Bonds
Asset Backed Securities
Fixed Term Series 56
- Appreciation - - 4,136,569 - - -
- Depreciation 2,845,709 1,290,554 1,281,951 - - -
Fixed Term Series 59
- Appreciation 1,623,132 - 1,534,851 - - -
- Depreciation 10,645,173 4,309,763 5,526,314 - - -
Fixed Term Series 61
- Appreciation 969,499 - 1,744,148 - - -
- Depreciation 1,839,250 1,457,317 - - - -
Fixed Term Series 62
- Appreciation - - - - - -
- Depreciation 4,318,783 2,798,866 - - - -
Fixed Term Series 63
- Appreciation - - 3,274,784 - - -
- Depreciation - - - - - -
Fixed Term Series 66
- Appreciation 775,539 - 3,261,080 - - -
- Depreciation - - - - - -
9 Aggregate Fair Value of Non-Traded / Thinly Traded Investments
Aggregate fair value of non traded (including private placement)/ thinly traded investments as determined by HSBC Asset Management (India) Private Limited under the procedures approved by the Board of Trustees as at March 31, 2009 is as follows:
Name of the Scheme Fair value (Rupees) Fixed Term Series 30 870,636,238 Fixed Term Series 41 200,696,664 Fixed Term Series 42 5,726,293,660 Fixed Term Series 50 1,412,092,318 Fixed Term Series 52 2,120,473,920 Fixed Term Series 53 1,259,240,408 Fixed Term Series 54 1,625,891,784
HSBC MUTUAL FUND - HSBC FIXED TERM SERIES 30, HSBC FIXED TERM SERIES 41, HSBC FIXED TERM SERIES 42, HSBC FIXED TERM SERIES 44, HSBC FIXED TERM SERIES 45, HSBC FIXED TERM SERIES 46, HSBC FIXED TERM SERIES 49, HSBC FIXED TERM SERIES 50, HSBC FIXED TERM SERIES 52, HSBC FIXED TERM SERIES 53, HSBC FIXED TERM SERIES 54, HSBC FIXED TERM SERIES 56, HSBC FIXED TERM SERIES 57, HSBC FIXED TERM SERIES 59, HSBC FIXED TERM SERIES 61, HSBC FIXED TERM SERIES 62, HSBC FIXED TERM SERIES 63, HSBC FIXED TERM SERIES 66.
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
Fixed Term Series 56 1,110,695,623 Fixed Term Series 59 3,206,563,894 Fixed Term Series 61 839,761,005 Fixed Term Series 62 1,078,748,105 Fixed Term Series 63 406,117,183 Fixed Term Series 66 211,219,104
10 Aggregate Value of Purchase and Sale of Investments
The aggregate value of investment securities purchased and sold (including matured) during the period (excluding accretion of discount) are as follows:
Name of the Scheme Accretion of
Discount
Aggregate Purchase Aggregate Sale
Rupees Rupees
Percentage of Average Daily Net
Assets Rupees
Percentage of Average Daily Net
Assets Fixed Term Series 30 101,170,058 11,907,733 1.24% 243,259,449 25.26%Fixed Term Series 41 13,611,763 678,603,855 137.44% 938,785,330 190.13%Fixed Term Series 42 351,573,882 1,031,733,156 15.83% 858,457,108 13.17%Fixed Term Series 44 106,961,146 1,368,975,111 117.89% 1,895,260,845 163.21%Fixed Term Series 45 22,378,038 215,442,237 86.13% 419,218,541 167.60%Fixed Term Series 46 114,209,187 5,525,056,026 215.30% 7,726,807,558 301.09%Fixed Term Series 49 273,391,583 1,309,350,956 37.88% 4,367,613,757 126.36%Fixed Term Series 50* 300,245,607 4,451,334,896 105.22% 27,892,660 0.66%Fixed Term Series 52* 148,256,976 4,819,409,655 214.87% 2,799,719,317 124.82%Fixed Term Series 53* 13,530,839 3,060,723,206 204.10% 1,779,689,319 118.68%Fixed Term Series 54* 613,045 2,979,450,294 185.64% 1,329,172,678 82.82%Fixed Term Series 56* 46,373,677 3,266,348,832 406.41% 2,165,699,243 269.46%Fixed Term Series 57* 36,407,297 706,660,939 202.38% 155,691,522 44.59%Fixed Term Series 59* 83,281,114 11,650,148,373 479.29% 8,499,917,134 349.69%Fixed Term Series 61* 19,313,547 2,378,804,484 360.27% 1,552,025,100 235.06%Fixed Term Series 62* 246,777,450 10,102,035,398 394.88% 6,006,692,554 234.80%Fixed Term Series 63* 55,508,759 2,973,025,958 563.02% 2,090,502,207 395.89%Fixed Term Series 66* 22,172,816 1,552,743,929 484.59% 951,822,774 297.05%
* Annualized
HSBC MUTUAL FUND - HSBC FIXED TERM SERIES 30, HSBC FIXED TERM SERIES 41, HSBC FIXED TERM SERIES 42, HSBC FIXED TERM SERIES 44, HSBC FIXED TERM SERIES 45, HSBC FIXED TERM SERIES 46, HSBC FIXED TERM SERIES 49, HSBC FIXED TERM SERIES 50, HSBC FIXED TERM SERIES 52, HSBC FIXED TERM SERIES 53, HSBC FIXED TERM SERIES 54, HSBC FIXED TERM SERIES 56, HSBC FIXED TERM SERIES 57, HSBC FIXED TERM SERIES 59, HSBC FIXED TERM SERIES 61, HSBC FIXED TERM SERIES 62, HSBC FIXED TERM SERIES 63, HSBC FIXED TERM SERIES 66.
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
11 Income and Expenses
The total income (including net loss on sale of investments and net change in unrealized depreciation in
the value of investments) and expenditure during the year/ period are as follows:
Total Income Total Expenses Name of the Scheme
Rupees Percentage of Average Daily
Net Assets
Rupees Percentage of Average Daily
Net Assets Fixed Term Series 30 75,369,573 7.83 5,908,055 0.61Fixed Term Series 41 44,952,189 9.1 670,694 0.14Fixed Term Series 42 557,806,168 8.56 10,421,450 0.16Fixed Term Series 44 107,943,665 9.30 2,341,964 0.20Fixed Term Series 45 21,376,050 8.55 743,292 0.30Fixed Term Series 46 230,072,779 8.97 11,258,311 0.44Fixed Term Series 49 318,913,586 9.23 8,639,042 0.25Fixed Term Series 50* 378,235,410 8.94 10,573,950 0.25Fixed Term Series 52* 180,061,018 8.03 10,351,563 0.46Fixed Term Series 53* 124,202,133 8.28 7,674,291 0.51Fixed Term Series 54* 142,751,493 8.89 10,655,830 0.66Fixed Term Series 56* 84,400,695 10.50 4,320,884 0.54Fixed Term Series 57* 37,690,335 10.79 1,577,991 0.45Fixed Term Series 59* 252,837,033 10.40 9,147,202 0.38Fixed Term Series 61* 67,463,633 10.22 2,899,418 0.44Fixed Term Series 62* 284,726,306 11.13 18,668,908 0.73Fixed Term Series 63* 50,801,048 9.62 2,048,438 0.39Fixed Term Series 66* 34,072,976 10.63 3,270,530 1.02
* Annualized 12 Disclosure Under Regulation 25(8) of the Securities and Exchange Board of India (Mutual Funds )
Regulation, 1996 as amended and in accordance with Accounting Standard 18 on ‘Related Party Disclosures’ issued by the Institute of Chartered Accountants of India (ICAI)
The Scheme has entered into transactions with certain related parties. The information required in this regard in accordance with Accounting Standard 18 on ‘Related Party Disclosures’ issued by the Institute of Chartered Accountants of India and regulation 25(8) of SEBI Regulation, is provided below :
I Related party relationships
Name Description of relationship (i) HSBC Securities and Capital Markets (India) Private Limited Sponsor of the Fund
(ii) HSBC Asset Management (India) Private Limited Investment Manager to the Schemes of HSBC Mutual Fund
(iii) The Hong Kong and Shanghai Banking Corporation Limited Associate of the Investment Manager (iv) HSBC Software Development India Private Limited Associate Company (v) Schemes of the Fund, Under Common Control of the Sponsor
HSBC Advantage India Fund
HSBC MUTUAL FUND - HSBC FIXED TERM SERIES 30, HSBC FIXED TERM SERIES 41, HSBC FIXED TERM SERIES 42, HSBC FIXED TERM SERIES 44, HSBC FIXED TERM SERIES 45, HSBC FIXED TERM SERIES 46, HSBC FIXED TERM SERIES 49, HSBC FIXED TERM SERIES 50, HSBC FIXED TERM SERIES 52, HSBC FIXED TERM SERIES 53, HSBC FIXED TERM SERIES 54, HSBC FIXED TERM SERIES 56, HSBC FIXED TERM SERIES 57, HSBC FIXED TERM SERIES 59, HSBC FIXED TERM SERIES 61, HSBC FIXED TERM SERIES 62, HSBC FIXED TERM SERIES 63, HSBC FIXED TERM SERIES 66.
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
HSBC Cash Fund
HSBC Dynamic Fund
HSBC Emerging Market Fund
HSBC Equity Fund
HSBC Flexi Debt Fund
HSBC Floating Rate Fund Long Term Plan
HSBC Floating Rate Fund Short Term Plan
HSBC Gilt Fund (Formerly, HSBC Gilt Fund – Short Term Plan)
HSBC Income Fund Investment Plan
HSBC Income Fund Short Term Plan
HSBC India Opportunities Fund
HSBC Interval Fund - Plan I upto November 20, 2008
HSBC Interval Fund - Plan II upto December 10, 2008
HSBC Interval Fund - Plan III upto December 17, 2008
HSBC Ultra Short Term Bond Fund (Formerly , HSBC Liquid Plus Fund)
HSBC Midcap Fund
HSBC MIP Fund Regular Plan
HSBC MIP Fund Savings Plan
HSBC Small Cap Fund
HSBC Tax Saver Equity Fund
HSBC Unique Opportunities Fund
(vi) Key Management Personnel and their relatives: Nelum Pahlaj Gidwani – Associate Trustee Naina Lal Kidwai – Chairman of the Investment Manager Vikramaditya – Director and the Chief Executive Officer of the Investment Manager with effect from July 16, 2008 Dr. Rudolf Apenbrink – Associate Tustee Ayaz Ebrahim – Director with effect from April 11, 2008 Sanjay Prakash – Director and the Chief Executive Officer upto July 16, 2008 Avan Nelum Gidwani* – Relative of a Key Management Personnel Rashid K Kidwai – Relative of a Key Management Personnel Rumaan Kidwai* – Relative of a Key Management Personnel Kemaya Lal Kidwai* – Relative of a Key Management Personnel Amrita Vikramaaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Raaghav Aaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Rhea Aaditya* – Relative of a Key Management Personnel with effect from July 16, 2008 Gabriele A Apenbrink* – Relative of a Key Management Personnel Christian R Apenbrink* – Relative of a Key Management Personnel Katharina S Apenbrink* – Relative of a Key Management Personnel Yasmin Ebrahim* – Relative of a Key Management Personnel with effect from April 11, 2008 Daanyal Ebrahim* – Relative of a Key Management Personnel with effect from April 11, 2008 Nilufer Prakash* – Relative of a Key Management Personnel upto July 16, 2008 Tara Prakash* – Relative of a Key Management Personnel upto July 16, 2008 Anahita Prakash* – Relative of a Key Management Personnel upto July 16, 2008 * There were no transactions during the year.
HSBC MUTUAL FUND - HSBC FIXED TERM SERIES 30, HSBC FIXED TERM SERIES 41, HSBC FIXED TERM SERIES 42, HSBC FIXED TERM SERIES 44, HSBC FIXED TERM SERIES 45, HSBC FIXED TERM SERIES 46, HSBC FIXED TERM SERIES 49, HSBC FIXED TERM SERIES 50, HSBC FIXED TERM SERIES 52, HSBC FIXED TERM SERIES 53, HSBC FIXED TERM SERIES 54, HSBC FIXED TERM SERIES 56, HSBC FIXED TERM SERIES 57, HSBC FIXED TERM SERIES 59, HSBC FIXED TERM SERIES 61, HSBC FIXED TERM SERIES 62, HSBC FIXED TERM SERIES 63, HSBC FIXED TERM SERIES 66.
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
II The transactions with the related parties during the period in the ordinary course of business have been listed
in Annexure I
III During the year, The Hongkong and Shanghai Banking Corporation Limited, an associate entity of HSBC
Asset Management (India) Private Limited was paid brokerage for procuring unit subscriptions for the
Schemes as follows:
Name of the Scheme
Brokerage for procuring unit Subscriptions
(Rupees) Fixed Term Series 30 54,938 Fixed Term Series 62 87,518
The brokerage paid was at rates similar to those offered to other brokers/distributors.
13 Disclosure under Regulation 25(11) of the Securities and Exchange Board of India (Mutual Funds)
Regulations, 1996 as amended
HSBC Mutual Fund has made investments in companies, which holds/ has held units in excess of 5% of the net asset value of any Scheme of HSBC Mutual Fund which have been listed in Annexure II.
The investments comprise equity shares, debentures/ bonds, commercial paper, fixed deposits and other debt instruments and were made solely on the basis of sound fundamentals of these companies.
14 Segment Reporting
The Scheme operates in one segment only viz. to primarily generate attractive returns from a diversified and actively managed portfolio of fixed income instruments.
15 Interest
Interest expense aggregating Rs. 12,417,143 on borrowings made by the Scheme to meet temporary liquidity needs for the purpose of redemption of units has been netted off from interest income as disclosed in Schedule 7 .
16 Investment in Unitech Limited
As at March 31, 2009, HSBC Fixed Term Series 41 had investments in secured redeemable debentures of Unitech Limited aggregating Rs. 2.65 crores which were rescheduled for payment on April 18, 2009. Subsequent, to the year end the terms and conditions of the said debentures were mutually extended in the interest of the unit holders, such that 50% of the principal amount of the debentures would be payable in two equal installments before April 30th 2009 and June 30th 2009 and the balance 50% payable in April 2010. The Scheme has sold these debentures to HSBC Asset Management India Private Limited in April 2009. The interest on the debentures has been serviced for all the schemes till March 31, 2009. The debenture holders are secured against immovable property mortgaged by the company. In view of the above, in the opinion of the management, no provision is considered necessary as at March 31, 2009.
HSBC MUTUAL FUND - HSBC FIXED TERM SERIES 30, HSBC FIXED TERM SERIES 41, HSBC FIXED TERM SERIES 42, HSBC FIXED TERM SERIES 44, HSBC FIXED TERM SERIES 45, HSBC FIXED TERM SERIES 46, HSBC FIXED TERM SERIES 49, HSBC FIXED TERM SERIES 50, HSBC FIXED TERM SERIES 52, HSBC FIXED TERM SERIES 53, HSBC FIXED TERM SERIES 54, HSBC FIXED TERM SERIES 56, HSBC FIXED TERM SERIES 57, HSBC FIXED TERM SERIES 59, HSBC FIXED TERM SERIES 61, HSBC FIXED TERM SERIES 62, HSBC FIXED TERM SERIES 63, HSBC FIXED TERM SERIES 66.
Schedules forming part of the Balance Sheet as at March 31, 2009 and the Revenue Account for the year ended March 31, 2009
17 Miscellaneous Income
Miscellaneous income includes Rs. 1,386,957 for HSBC Fixed Term Series 63 and Rs. 718,497 for HSBC Fixed Term Series 66 received from HSBC Asset Management India Private Limited towards compensation for loss incurred on transfers of investments to the other Schemes of the HSBC Mutual Fund.
18 Prior Year’s Figures
Previous period’s figures have been re-grouped/re-arranged where necessary.
Signatures to the Schedules 1 to 8 forming part of the Balance Sheet and the Revenue Account
PARTHA GHOSH Partner Membership No. F-55913 For and on behalf of PRICE WATERHOUSE Chartered Accountants
For Board of Trustees of HSBC Mutual Fund
For HSBC Asset Management (India) Private Limited
Trustee
Vikramaaditya Director and Chief Executive Officer
Trustee
Director
Place: Mumbai Date :
Fund Manager(s)
Annexure II
HSBC Mutual Fund has made the following investments in companies, which hold units in excess of 5% of the net asset value of any Scheme of HSBC Mutual Fund.
Company NameSchemes
invested in by the Company
Investment made by schemes of HSBC
Mutual Fund in the company/subsidiary
Aggregate cost of acquisition during the year ended March 31,
2009
Outstanding as at March 31, 2009
( At Market / Fair Value)
(Rupees in Lakhs) (Rupees in Lakhs)
Allahabad Bank HCF HAIF 675.66 - HCF 27,697.92 - HDF 198.91 - HEF 3,225.32 - HFDF 3,101.61 - HFRF 15,999.99 7,791.76 HFTS21 2,985.84 - HFTS27 1,990.56 - HFTS41 99.18 - HFTS44 1,492.94 1,496.70 HFTS48 496.71 - HFTS49 138.83 - HFTS58 6,511.65 - HFTS60 757.58 - HFTS63 1,486.41 - HFTS66 1,978.47 351.28 HFTS68 3,977.51 - HIF 1,293.32 940.08 HINF 1,979.18 - HMEF 1,387.63 - HTSEF 1,071.51 - HUOF 1,251.06 - HUSBF 28,994.09 -
Bank of Baroda HCF HFRF 7,128.22 2,915.45 HFTS62 288.31 - HFTS66 192.21 - HIF 945.27 - HMEF 855.98 189.82 HMIP 21.94 - HTSEF 1,049.18 410.11 HUOF 786.24 468.70
Bank of India HCF HAIF 2,094.26 - HDF 194.45 - HEF 1,518.46 - HFRF 2,421.13 2,427.68 HMEF 1,142.12 - HMIP 124.53 - HTSEF 159.20 - HUOF 541.97 -
Bharti Airtel Limited HAIF 4,201.30 1,545.60 (Holding company of Bharti Infratel Limited) HDF 4,173.14 1,192.05
HEF 8,483.97 5,300.10 HIOF 3,336.42 869.79 HMIP 194.01 - HTSEF 2,913.27 603.85 HUOF 2,353.55 -
Bharti Infratel Limited HCF - - (Subsidiary company of Bharti Airtel Limited)
Birla Corporation Limited HFTS51 HDF 707.05 -
Cairn India Limited HCF HAIF 4,812.04 840.17 HUSBF HDF 5,521.35 556.42
HEF 10,868.55 2,423.41 HIOF 2,257.94 620.62 HMEF 630.47 - HMIP 340.80 - HTSEF 1,726.20 243.48 HUOF 2,779.93 331.38
Corporation Bank HCF HCF 22,529.91 - HDF 1,194.25 - HEF 6,191.24 - HFRF 5,488.40 1,458.73 HFTS55 999.04 - HFTS56 2,477.30 - HFTS58 4,457.01 - HFTS59 2,465.25 - HFTS62 2,985.31 - HIF 1,651.03 1,382.46 HINF 1,997.64 - HMIP 893.83 - HUSBF 20,050.65 -
DLF Limited HCF HCF 4,666.87 - HFRF 938.85 - HIOF 195.91 - HMIP 102.01 - HTSEF 212.28 - HUSBF 7,027.78 -
Disclosure under Regulation 25(11) of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 as amended
0
Company NameSchemes
invested in by the Company
Investment made by schemes of HSBC
Mutual Fund in the company/subsidiary
Aggregate cost of acquisition during the year ended March 31,
2009
Outstanding as at March 31, 2009
( At Market / Fair Value)
(Rupees in Lakhs) (Rupees in Lakhs)DSP Merrill Lynch Capital Limited HCF HCF 40,786.84 -
HFRF 4,500.00 - HFTS32 2,276.98 - HUSBF 163,027.72 -
Export Import Bank of India HFRF HCF 13,046.43 2,452.46 HUSBF HFDF 3,212.53 1,751.45 HCF HFRF 5,838.93 196.45
HFTS50 2,111.56 2,161.75 HFTS52 1,456.51 HFTS53 64.90 HFTS63 1,204.11 1,256.91 HIF 3,752.01 2,951.83 HUSBF 16,206.72 247.91
Global Trade Finance Limited HFRF HCF 54,600.00 - HFRF 15,200.00 - HFTS57 1,000.00 - HFTS59 9,500.00 - HFTS60 7,200.00 - HFTS62 5,000.00 - HINF 7,900.00 - HUSBF 225,600.00 -
Grasim Industries Limited HFTS47 HAIF 1,571.51 - (Holding company of Ultratech Cement Limited) HDF 2,040.14 -
HEF 2,369.29 - HIOF 915.14 - HMIP 104.94 - HTSEF 896.74 308.52 HUOF 299.17 -
Ultratech Cement Limited HMEF 147.47 192.97 (Subsidiary company of Grasim Industries Limited) HUOF 263.82 347.35
HDFC Bank Limited HCF HAIF 3,625.62 1,168.08 HUSBF HCF 60,487.15 -
HDF 3,458.53 846.86 HEF 6,496.34 4,555.51 HFDF 2,100.00 - HFRF 10,932.29 - HFTS31 2,701.00 - HFTS34 1,907.96 - HFTS41 599.12 - HFTS60 3,898.12 - HIF 400.00 - HINF 7,837.09 - HIOF 899.44 963.67 HMEF 1,316.02 204.41 HMIP 907.61 66.19 HTSEF 2,802.01 1,051.27 HUOF 2,057.29 - HUSBF 68,092.37 -
Hero Honda Motors Limited HCF HDF 832.16 771.23 (Holding company of Hero Honda Finlease Limited) HFRF HEF 2,767.41 2,602.89
HFTS51 HIOF 1,051.26 867.63 HFTS60 HMIP 71.73 67.48 HINF HTSEF 472.03 385.61
HUOF 739.98 674.82
Hero Honda Finlease Limited HCF 3,000.00 - (Subsidiary company of Hero Honda Motors Limited) HUSBF 3,000.00 -
Hindalco Industries Limited HFDF HEF 1,672.47 - HFTS33 HIOF 451.17 - HFTS44 HMIP 39.91 - HFTS47 HTSEF 339.50 - HFTS51 - - HFTS58 - - HFTS60 - - HINF - -
Hindustan Unilever Limited HFTS21 HAIF 965.51 961.88 HFTS22 HDF 853.42 855.00 HFTS25 HEF 3,433.27 2,992.50
HIOF 696.79 726.75 HMEF 150.08 - HTSEF 801.96 356.25 HUOF 504.71 427.50
Company NameSchemes
invested in by the Company
Investment made by schemes of HSBC
Mutual Fund in the company/subsidiary
Aggregate cost of acquisition during the year ended March 31,
2009
Outstanding as at March 31, 2009
( At Market / Fair Value)
(Rupees in Lakhs) (Rupees in Lakhs)ICICI Bank Limited HCF HAIF 7,408.57 449.28
HCF 157,435.91 - HDF 12,139.24 509.18 HEF 14,181.63 1,886.98 HFDF 13,124.04 - HFRF 16,913.32 - HFTS21 693.62 - HFTS22 72.65 - HFTS23 5,403.23 - HFTS25 48.06 - HFTS28 4,521.99 - HFTS29 6,660.04 - HFTS31 2,474.32 - HFTS33 19.19 - HFTS35 3,301.30 - HFTS36 5,664.20 - HFTS37 3,988.02 - HFTS41 9.80 - HFTS44 3,760.14 1,496.81 HFTS45 943.65 - HFTS46 5,185.99 - HFTS47 2,431.39 - HFTS48 1,012.04 - HFTS49 4,548.96 - HFTS50 6,587.45 7,149.04 HFTS51 823.89 - HFTS52 927.13 - HFTS53 927.13 - HFTS54 439.81 - HFTS55 2,355.84 - HFTS57 896.06 956.47 HFTS58 7,677.51 - HFTS59 2,900.51 - HFTS60 5,827.47 - HFTS62 4,480.29 4,782.37 HFTS63 2,758.26 - HFTS66 695.33 - HFTS68 6,286.91 - HFTSIX 2,470.06 - HIF 1,969.80 - HINF 20,233.48 - HIOF 5,587.54 494.21 HMIP 2,210.59 - HTSEF 1,368.45 - HUOF 4,404.39 382.72 HUSBF 334,877.56 5,310.70
ICICI Home Finance Company Limited HCF 9,863.68 - (Subsidiary company of ICICI Bank Limited) HFDF 916.88 -
HFRF 3,735.44 - HFTS32 2,351.28 - HFTS36 3,206.74 - HFTS51 770.50 - HFTS66 1,000.00 1,004.91 HIF 483.81 - HUSBF 13,798.69 -
ICICI Securities Primary Dealership Limited HCF 47,900.00 - (Subsidiary company of ICICI Bank Limited) HDF 7,500.00 -
HEF 5,000.00 - HFDF 400.00 - HFRF 900.00 - HFTS29 1,473.30 - HFTS62 2,500.00 - HFTS66 600.00 - HIF 200.00 - HINF 16,798.21 - HMIP 1,000.00 - HTSEF 1,500.00 - HUSBF 130,447.78 -
ICICI Securities Limited HCF HFTS50 4,101.56 4,466.48 (Subsidiary company of ICICI Bank Limited) HUSBF 1,118.53 -
ICRA Limited HFTS41 HMEF 6.29 - HMIP 26.14 - HTSEF 23.48 -
IDEA Cellular Limited HCF HAIF 524.56 580.28 HDF 422.88 469.79 HEF 3,696.23 1,442.30 HIOF 1,375.28 471.22 HUOF 2,167.87 495.99
(Holding company for ICICI Home Finance Company Limited, ICICI Securities Primary Dealership Limited, ICICI Securities Limited)
Company NameSchemes
invested in by the Company
Investment made by schemes of HSBC
Mutual Fund in the company/subsidiary
Aggregate cost of acquisition during the year ended March 31,
2009
Outstanding as at March 31, 2009
( At Market / Fair Value)
(Rupees in Lakhs) (Rupees in Lakhs)IDBI Bank Limited HCF HCF 60,464.56 - (Holding company of IDBI Home Finance Limited) HDF 7,767.48 -
HEF 1,657.71 - HFDF 4,208.34 - HFRF 12,432.42 2,485.38 HFTS29 1,984.53 - HFTS30 69.83 - HFTS32 19.53 - HFTS41 706.10 - HFTS44 2,279.70 - HFTS45 549.18 - HFTS46 191.61 - HFTS47 9.90 - HFTS52 219.48 - HFTS57 897.20 956.85 HFTS58 3,023.78 - HFTS61 28.43 - HFTS62 8,074.76 8,611.65 HFTS63 1,851.60 - HFTS66 685.29 - HFTS68 4,045.67 - HIF 1,415.32 422.76 HINF 4,696.98 - HIOF 96.75 - HMIP 970.00 - HTSEF 2,286.27 - HUSBF 102,912.95 -
IDBI Home Finance Limited HUSBF 4,957.41 - (Subsidiary company of IDBI Bank Limited)
Indiabulls Financial Services Limited HCF HAIF 2,450.77 - HCF 14,865.60 - HDF 1,589.61 - HINF 1,700.00 - HIOF 1,359.87 - HMEF 1,022.86 - HMIP 169.33 - HTSEF 1,341.62 - HUOF 2,253.25 -
India Infoline Investment Services Limited HFDF HUSBF 10,000.00 -
Info Edge (India) Limited HFTS44 HMIP 160.24 - HGF HTSEF 142.73 - HFTS21
Infrastructure Development Finance Company Limited HFTS22 HAIF 1,178.15 - HCF 4,875.47 - HEF 2,196.32 - HFDF 5,406.37 - HFRF 245.13 - HFTS14 2,491.16 - HFTS46 5,000.00 - HFTS49 4,500.00 - HFTS50 4,992.39 4,972.29 HFTS54 1,200.20 - HFTS66 699.55 - HIF 906.14 - HIOF 1,430.64 - HMIP 520.38 9.96 HTSEF 285.14 - HUOF 800.61 - HUSBF 29,612.13 -
ITC Limited HFTS47 HAIF 4,024.86 2,495.48 HFTS58 HDF 2,978.79 1,746.83 HFTS60 HEF 8,266.70 6,820.97 HFTS68 HIOF 1,856.73 1,580.47 HINF HMIP 233.16 179.30
HTSEF 1,181.42 924.25 HUOF 976.56 592.07
Jammu and Kashmir Bank Limited HCF HCF 28,693.06 - HDF 1,468.67 - HFDF 3,934.96 - HFRF 4,331.01 - HFTS34 2,880.92 - HFTS37 686.84 - HFTS55 1,423.38 - HFTS57 896.97 956.64 HFTS58 4,350.84 - HFTS68 483.85 - HIF 391.67 - HINF 13,025.55 - HMEF 46.84 - HMIP 64.76 - HUSBF 33,072.54 -
Kolte Patil Developers Limited HFDF HMIP 11.57 - HFRF HTSEF 60.32 -
Company NameSchemes
invested in by the Company
Investment made by schemes of HSBC
Mutual Fund in the company/subsidiary
Aggregate cost of acquisition during the year ended March 31,
2009
Outstanding as at March 31, 2009
( At Market / Fair Value)
(Rupees in Lakhs) (Rupees in Lakhs)
Larsen & Toubro Limited HCF HAIF 4,010.57 832.54 (Holding company of L & T Finance Limited) HFTS60 HDF 3,121.00 483.41
HEF 5,528.54 2,719.17 HIOF 2,799.10 725.11 HMEF 218.53 - HMIP 575.68 - HTSEF 2,659.92 443.12 HUOF 2,532.64 483.41
L & T Finance Limited HCF HCF 30,723.13 - (Subsidiary company of Larsen & Toubro Limited) HFDF 200.00 -
HFRF 15,012.89 - HFTS21 112.67 - HFTS27 24.41 - HFTS29 4,749.79 - HFTS31 5,000.00 - HFTS33 23.74 - HFTS59 2,496.06 - HFTS60 2,491.48 - HIF 93.96 - HINF 6,463.53 - HUSBF 88,983.78 -
Mahindra & Mahindra Limited HCF - - HFRF - -
Mahindra Lifespace Developers Limited HINF - - (Subsidiary company of Mahindra & Mahindra Limited)
Mahindra & Mahindra Financial Services Limited HCF 22,199.53 (Subsidiary company of Mahindra & Mahindra Limited) HFRF 5,000.00
HFTS59 1,600.00 HMIP - 990.39 HUSBF 59,130.87
Mahindra Finance Limited HCF 88,000.00 - (Subsidiary company of Mahindra & Mahindra Limited) HFRF 2,900.00 -
HFTS56 2,000.00 - HFTS57 500.00 - HFTS58 4,500.00 - HFTS59 7,000.00 - HFTS62 12,500.00 - HINF 2,000.00 - HMIP 500.00 - HUSBF 89,400.00 -
Tech Mahindra Limited HFRF - - (Subsidiary company of Mahindra & Mahindra Limited)
Punjab Tractors Limited HFRF - - (Subsidiary company of Mahindra & Mahindra Limited) HFTS47 - -
HFTS54 - - HFTS55 - -
Maruti Suzuki India Limited HCF HAIF 2,785.36 - HFTS21 HDF 1,086.00 - HFTS23 HEF 6,447.84 - HUSBF HIOF 574.66 -
HMIP 58.37 - HTSEF 1,197.62 397.72 HUOF 1,268.70 233.96
Praj Industries Limited HFTS41 HAIF 1,496.25 - HFTS57 HIOF 732.16 -
HMEF 87.56 -
PTC India Limited HFTS47 HAIF 29.75 - HSCF 105.60 105.52
Reliance Industries Limited HCF HAIF 8,589.56 2,447.22 (Holding company of Reliance Petroleum Limited) HDF 10,608.91 1,235.05
HEF 10,428.65 7,204.44 HIOF 501.52 2,058.41 HMEF 206.52 228.71 HMIP 427.31 79.29 HTSEF 2,282.86 1,372.28 HUOF 2,308.09 1,235.05
Reliance Petroleum Limited(Subsidiary company of Reliance Industries Limited) HFTS33 HAIF 3,620.14 -
HFTS36 HDF 4,256.41 - HEF 6,307.27 - HIOF 702.63 - HMIP 185.79 - HTSEF 859.73 - HUOF 1,266.86 -
(Holding company of Mahindra Lifespace Developers Limited, Mahindra & Mahindra Financial Services Limited, Mahindra Finance Limited, Tech Mahindra Limited, Punjab Tractors Limited)
Company NameSchemes
invested in by the Company
Investment made by schemes of HSBC
Mutual Fund in the company/subsidiary
Aggregate cost of acquisition during the year ended March 31,
2009
Outstanding as at March 31, 2009
( At Market / Fair Value)
(Rupees in Lakhs) (Rupees in Lakhs)
State Bank of India HUSBF HAIF 7,920.50 1,067.10 HCF 52,742.58 - HDF 6,085.51 533.55 HEF 15,007.92 3,841.56 HFDF 11,520.07 3,879.64 HFRF 2,080.96 - HFTS30 49.23 - HFTS52 819.89 - HFTS54 393.86 - HFTS56 189.69 - HFTS61 443.09 - HFTS63 820.84 - HFTS66 96.55 - HIF 2,401.17 628.39 HIOF 7,457.17 885.69 HMIP 2,523.99 - HTSEF 1,967.78 - HUOF 5,037.93 490.87 HUSBF 100,361.08 -
State Bank of Bikaner and Jaipur HAIF 98.04 - (Subsidiary company of State Bank of India) HCF 22,656.71 -
HEF 294.13 - HFDF 1,510.82 - HFRF 27,062.02 2,369.70 HFTS36 990.27 - HFTS41 448.06 449.45 HFTS44 3,837.13 1,987.58 HFTS46 7,545.88 - HFTS49 4,129.92 - HFTS53 59.74 59.93 HFTS55 1,418.50 - HFTS56 4,883.33 287.25 HFTS57 1,078.47 1,139.44 HFTS58 4,347.91 - HFTS59 396.22 - HFTS63 1,788.79 - HFTS66 294.34 - HFTS68 3,473.01 - HIF 979.42 - HINF 4,568.91 - HTSEF 148.66 - HUOF 9.62 - HUSBF 57,053.07 -
State Bank of Hyderabad HCF 45,185.22 - (Subsidiary company of State Bank of India) HDF 2,482.16 -
HEF 977.60 - HFRF 7,081.08 - HFTS21 887.40 - HFTS25 4,535.61 - HFTS27 493.00 - HFTS35 976.72 - HFTS36 3,667.78 - HFTS42 465.32 268.93 HFTS44 99.01 - HFTS49 39.60 - HFTS50 386.12 229.09 HFTS55 2,925.39 - HFTS57 900.28 955.78 HFTS58 296.44 - HFTS63 2,347.61 - HFTS66 492.69 - HFTS68 3,248.08 - HINF 4,585.36 - HUSBF 72,520.42 -
State Bank of Indore HCF 6,824.62 - (Subsidiary company of State Bank of India) HFRF 3,063.53 2,597.06
HFTS66 349.43 355.08 HFTS68 3,093.04 - HIF 465.91 473.44 HINF 892.13 - HUSBF 4,163.57 -
State Bank of Mysore HAIF 197.99 - (Subsidiary company of State Bank of India) HCF 66,433.53 -
HEF 891.19 - HFDF 2,995.93 - HFRF 6,664.64 - HFTS31 2,700.00 - HFTS36 1,187.67 - HFTS37 1,389.85 - HFTS41 228.16 - HFTS44 277.77 - HFTS46 745.30 - HFTS48 99.46 - HFTS53 198.40 - HFTS54 39.68 - HFTS58 1,091.00 - HFTS59 6,885.38 - HFTS61 2,146.47 - HINF 4,769.54 - HIOF 1,583.62 - HUSBF 117,044.87 -
(Holding company of State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Indore, State Bank of Mysore, State Bank of Patiala, State Bank of Saurashtra, State Bank of Travancore, SBI Cards & Payment Services Private Limited, SBI Factors & Commercial Services Private Limited)
Company NameSchemes
invested in by the Company
Investment made by schemes of HSBC
Mutual Fund in the company/subsidiary
Aggregate cost of acquisition during the year ended March 31,
2009
Outstanding as at March 31, 2009
( At Market / Fair Value)
(Rupees in Lakhs) (Rupees in Lakhs)State Bank of Patiala HCF 43,785.65 - (Subsidiary company of State Bank of India) HFDF 1,945.00 -
HFRF 6,498.88 - HFTS41 598.62 599.41 HFTS44 1,396.95 1,398.66 HFTS48 1,734.65 - HFTS52 3,394.00 - HFTS55 999.04 - HFTS58 4,433.20 - HFTS68 1,387.92 - HINF 21,630.40 - HUSBF 87,137.65 -
State Bank of Saurashtra HCF 20,945.31 - (Subsidiary company of State Bank of India) HFRF 3,482.79 -
HFTS23 982.10 - HFTS46 694.23 - HINF 6,783.99 - HUSBF 16,522.29 -
State Bank of Travancore HCF 52,939.32 - (Subsidiary company of State Bank of India) HFDF 2,433.56 -
HFRF 15,861.88 - HFTS31 2,987.28 - HFTS44 2,290.13 - HFTS45 550.52 - HFTS46 4,607.87 - HFTS49 2,757.89 - HFTS53 19.03 - HFTS54 902.60 - HFTS55 1,415.75 - HFTSIX 3,481.64 - HIF 1,750.20 - HUSBF 60,809.64 -
SBI Cards & Payment Services Private Limited HCF 7,295.49 - (Subsidiary company of State Bank of India) HDF 4,994.27 -
HFTS32 2,001.98 - HUSBF 3,992.49 -
SBI Factors & Commercial Services Private Limited HCF 63,500.00 - (Subsidiary company of State Bank of India) HFTS59 7,500.00 -
HFTS60 11,500.00 - HFTS62 4,000.00 - HINF 4,300.00 - HUSBF 121,700.00 -
Sterlite Industries (India) Limited HFTS58 HAIF 1,871.64 - (Holding company of Hindustan Zinc Limited) HDF 986.22 -
HEF 5,633.19 1,287.36 HIOF 838.23 482.76 HMIP 128.37 - HTSEF 871.50 - HUSBF 36,100.00 -
Hindustan Zinc Limited HFTS21 HEF 1,548.06 - (Subsidiary company of Sterlite Industries (India) Limited) HFTS25 HUOF 705.71 -
HFTS27 - - HFTS32 - - HFTS36 - - HFTS44 - - HFTS58 - - HINF - -
Vedanta Aluminium Limited HFRF - - (Subsidiary company of Sterlite Industries (India) Limited)
Sundaram Finance Limited HFRF HCF 3,858.08 - HFTS41 HFDF 765.09 -
HFRF 2,910.59 - HFTS25 4,000.00 - HFTS30 1,531.80 146.10 HFTS34 1,929.27 - HFTS52 1,486.39 - HFTS54 936.54 - HFTS56 2,100.00 2,086.87 HFTS59 650.00 - HFTS61 2,250.00 1,888.12 HFTS63 991.04 992.85 HIF 735.88 - HMIP 912.59 769.13 HUSBF 8,010.64 99.90
Tata Communications Limited HFTS21 HAIF 1,142.18 - HIOF 308.38 - HTSEF 192.74 - HUOF 364.88 -
Tata Sons Limited HCF 480.15 - (Holding company of Tata Consultancy Services Limited) HFRF 463.52 -
HUSBF 15,485.87 15,001.09
Tata Consultancy Services Limited HFDF HAIF 464.63 - (Subsidiary company of Tata Sons Limited) HFTS44 HDF 636.30 -
HEF 4,170.21 - HIOF 2,048.04 - HTSEF 617.22 - HUOF 1,931.00 -
Company NameSchemes
invested in by the Company
Investment made by schemes of HSBC
Mutual Fund in the company/subsidiary
Aggregate cost of acquisition during the year ended March 31,
2009
Outstanding as at March 31, 2009
( At Market / Fair Value)
(Rupees in Lakhs) (Rupees in Lakhs)Tata Power Limited HCF HAIF 2,164.21 -
HDF 2,325.94 - HEF 4,612.70 - HIOF 2,809.14 - HTSEF 539.53 - HUOF 1,018.86 -
Tata Steel Limited HCF HEF 758.38 - HUSBF HIOF 2,201.31 -
HUOF 758.38 - HUSBF 1,500.00 1,500.00
The Great Eastern Shipping Company Limited HFDF HDF 2,068.80 - HFRF HEF 2,619.95 - HIF HIOF 2,562.00 -
HMEF 1,962.88 - HMIP 170.01 - HTSEF 1,214.27 - HUOF 4,904.96 -
The Indian Hotels Company Limited HFTS60 HUOF 451.27 -
Wipro Limited HFRF HTSEF 112.70 - HFTS27 - - HFTS32 - - HFTS33 - - HFTS36 - - HFTS61 - - HINF - -
Yes Bank Limited HCF HCF 19,321.73 - HFRF 3,701.04 - HFTS25 6,029.70 - HFTS27 2,524.54 - HFTS28 901.97 - HFTS41 839.15 - HFTS56 2,224.20 2,385.17 HIF 643.80 - HINF 18,938.91 - HMIP 321.28 - HUSBF 41,686.17 130.09
The above investments comprise equity shares, debentures / bonds, commercial paper, fixed deposits and other debt instruments. These investments have been made on account of their high credit quality and competitive yield for the investment in fixed income/ moneymarket instruments and in case of equity shares because of attractive valuations of these companies.
HEF - HSBC Equity FundHIOF - HSBC India Opportunities FundHIF - HSBC Income FundHCF - HSBC Cash FundHMIP - HSBC Monthly Income PlanHFRF - HSBC Floating Rate FundHMEF - HSBC Midcap Equity FundHAIF - HSBC Advantage India FundHFTSI - HSBC Fixed Term Series IHFTSIV - HSBC Fixed Term Series IVHFTSV - HSBC Fixed Term Series VHFTSVI - HSBC Fixed Term Series VIHFTSIX - HSBC Fixed Term Series IXHFTS13 - HSBC Fixed Term Series 13HFTS14 - HSBC Fixed Term Series 14HFTS15 - HSBC Fixed Term Series 15HFTS21 - HSBC Fixed Term Series 21HUSBF - HSBC Ultra Short Term Bond Fund *HTSEF - HSBC Tax Saver Equity FundHFTS22 - HSBC Fixed Term Series 22HFTS23 - HSBC Fixed Term Series 23HFTS24 - HSBC Fixed Term Series 24HFTS25 - HSBC Fixed Term Series 25HFTS26 - HSBC Fixed Term Series 26HFTS27 - HSBC Fixed Term Series 27HFTS29 - HSBC Fixed Term Series 29HUOF - HSBC Unique Opportunities FundHFTS28 - HSBC Fixed Term Series 28HFTS30 - HSBC Fixed Term Series 30HFTS31 - HSBC Fixed Term Series 31HFTS32 - HSBC Fixed Term Series 32HFTS33 - HSBC Fixed Term Series 33HFTS34 - HSBC Fixed Term Series 34HFTS35 - HSBC Fixed Term Series 35HDF - HSBC Dynamic FundHFDF - HSBC Flexi Debt FundHINF - HSBC Interval FundHFTS41 - HSBC Fixed Term Series 41HFTS42 - HSBC Fixed Term Series 42HFTS44 - HSBC Fixed Term Series 44HFTS46 - HSBC Fixed Term Series 46HFTS36 - HSBC Fixed Term Series 36HFTS37 - HSBC Fixed Term Series 37HFTS45 - HSBC Fixed Term Series 45HFTS47 - HSBC Fixed Term Series 47HFTS49 - HSBC Fixed Term Series 49HFTS48 - HSBC Fixed Term Series 48HFTS50 - HSBC Fixed Term Series 50HFTS51 - HSBC Fixed Term Series 51HFTS52 - HSBC Fixed Term Series 52HFTS53 - HSBC Fixed Term Series 53HFTS54 - HSBC Fixed Term Series 54HFTS55 - HSBC Fixed Term Series 55HFTS56 - HSBC Fixed Term Series 56HFTS57 - HSBC Fixed Term Series 57HFTS58 - HSBC Fixed Term Series 58HFTS59 - HSBC Fixed Term Series 59HFTS60 - HSBC Fixed Term Series 60HFTS61 - HSBC Fixed Term Series 61HFTS62 - HSBC Fixed Term Series 62HFTS63 - HSBC Fixed Term Series 63HFTS66 - HSBC Fixed Term Series 66HFTS68 - HSBC Fixed Term Series 68HSCF - HSBC Small Cap FundHGF - HSBC Gilt Fund **
Company NameSchemes
invested in by the Company
Investment made by schemes of HSBC
Mutual Fund in the company/subsidiary
Aggregate cost of acquisition during the year ended March 31,
2009
Outstanding as at March 31, 2009
( At Market / Fair Value)
(Rupees in Lakhs) (Rupees in Lakhs)
* Formerly known as HSBC Liquid Plus Fund** Formerly known as HSBC Gilt Fund - Short Term Plan