kflexifofseries1-od

Please retain this Offer Document for future reference.

THE DATE OF THIS OFFER DOCUMENT IS FEBRUARY 16, 2006.

INVESTORS SHOULD NOTE THATl This Offer Document sets forth concisely the information about the Scheme that a prospective investor ought to know before investing. Investors

should carefully read the Offer Document before making an investment decision.l This Offer Document remains effective until a material change occurs. Material changes will be filed with SEBI and circulated to all Unitholders.l The Scheme particulars have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, as

amended till date and the Offer Document has been filed with SEBI. The Units offered for public subscription have neither been approved nor disapprovedby SEBI, nor has SEBI certified the accuracy or adequacy of this Offer Document.

OFFER DOCUMENT

Kotak Mahindra Mutual Fund5A, 5th Floor, Bakhtawar, 229, Nariman Point, Mumbai 400 021

THE AUDITORS TO THE SCHEMEPrice Waterhouse252, Veer Savarkar Marg, Shivaji Park,Dadar, Mumbai - 400 028.

THE REGISTRARComputer Age ManagementServices Private LimitedA&B Lakshmi Bhawan,609, Anna Salai,Chennai - 600 006

CUSTODIANSDeutsche Bank AG Standard Chartered BankKodak House, 222, Dr. D. N. Road, 23/25 M. G. Road,Fort, Mumbai - 400 001 Mumbai - 400 001

THE SPONSORKotak Mahindra Bank Ltd.36-38A, Nariman Bhavan,227, Nariman Point, Mumbai - 400 021

THE TRUSTEEKotak Mahindra Trustee Co. Ltd.5A, 5th Floor, Bakhtawar,229, Nariman Point, Mumbai - 400 021

THE ASSET MANAGEMENT COMPANYKotak Mahindra Asset Management Co. Ltd.5A, 5th Floor, Bakhtawar,229, Nariman Point, Mumbai - 400 021

KOTAK FLEXI FUND OF FUNDS - SERIES IA Close-Ended Fund of Funds Scheme

(Investments in Diversified Equity Schemes / Plans and Liquid / Short Term / Floating Rate Schemes / Plans)

NEW FUND OFFERUnits at Rs. 10 each plus applicable Entry Load

Offer Opens on : February 22, 2006

Offer Closes on : March 22, 2006

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KOTAK FOF-SERIES I OFFER DOCUMENT

Page No. Page No.

T A B L E O F C O N T E N T S

I. Highlights, Risk Factors and Due Diligence 2II. Definitions and Abbreviations 4III. Constitution of the Fund 6

A. The Fund 6B. Sponsor Company 6C. Trustee Company (The Trustee) 7

1. Directors 72. Rights, Obligations, Responsibilities

and Duties of the Trustee 73. Trustee’s Fee 9

D. Asset Management Company 91. Name and Address 92. Directors on the Board of the AMC 93. Powers, Functions and

Responsibilities of the AMC 104. Schemes launched by the Mutual Fund 125. Borrowing by the Mutual Fund 196. Key Personnel of AMC 19

E. The Registrar 21F. The Custodians 21G. Bankers 21

IV. Investment of the Fund 22A. Kotak Flexi Fund of Funds Series I 22

1. Type of Scheme 222. Investment Options 223. Investment Objective 224. Investment Strategy 225. The Risk Profile and Investment Pattern 23

B. Policies and RegulationsApplicable to the Scheme 231. Fundamental Attributes and

Changes Therein 232. Investment of Subscription Money 243. Borrowing Power 244. Depository 245. Policy on Inter-Scheme Transfers 246. Mode of Investment 247. Investment in Derivatives 248. Investments by the AMC in the Fund 249. Investment Limitation and Restrictions 2410. Computation of Net Asset Value 2511. Accounting Policies 2512. Recording of Investment Decisions 27

V. Units 28A. Units on Offer 28

1. Minimum Subscription Amount 282. New Fund Offer 283. New Fund Offer Price 284. Extension of New Fund Offer 285. Continuous Offer 286. Listing 287. Expenses of Initial Issue 28

8. Minimum Purchase and Redemption 289. Applicable NAV 2810. Facilities Offered to Investors

under the Scheme 28B. Purchase of Units 29

1. Who can invest? 292. Purchase Price 293. Mode of Payment 294. Where to submit Application Forms? 305. Joint Applicants 306. Allotment 307. Account Statement / Unit Certificate 308. Refund 30

C. Redemption of Units 311. Redemption Price 312. How to Redeem? 313. Maturity of the Scheme 324. Payment of Proceeds 325. Redemption by NRIs/FIIs 326. Effect of Redemptions 327. Right to Limit Redemption 338. Suspension of Redemption of Units 339. Unclaimed Redemption

and Dividend Amount 3310. Reissue of Repurchased units 34

VI. Loads and Recurring Expenses 35A. Load Structure of the Scheme 35B. Fees and Expenses of the Scheme 35

1. Expenses of Initial Issue 352. Expenses of Past Initial Issue 363. Initial Issue Expenses incurred

by the Schemes 374. Recurring Expenses of the Scheme 37

VII. Unitholders’ Rights and Services 39A. Unitholders’ Rights 39B. Voting Rights of the Unitholders 39C. Account Statement 39D. NAV Information 39E. Disclosure of Information

Under the Regulations 40F. Duration of the Scheme 44G. Procedure and Manner of Winding Up 44H. Services to Unitholders 44I. Tax Benefits of Investing in

the Mutual Fund 45VIII. Other Matters 47

A. Power to Make Rules 47B. Power to Remove Difficulties 47C. Transactions with Associate Companies 47D. Stock Lending by the Fund 52E. Penalties, Pending Litigation 52F. Omnibus Clause 52G. Documents Available for Inspection 53

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Features Kotak Flexi Fund of Funds - SERIES I

Structure A Close ended Fund of Funds Scheme(Investments in Diversified Equity Schemes/ Plans and Liquid/ Short Term/Floating Rate Schemes/Plans)

Investment in Up to 0% to 90% in diversified equity schemes/PlansUp to 10% to 100% in Liquid/ Short Term/ Floating Rate Schemes/PlansUp to 0% to 10% in Money Market Securities.

Suitable for Investors who seek capital appreciation associated with investment in diversifiedequity schemes/plans, while substantially taking lower risk on capital over a3-year period.

Investment Objective The investment objective of the scheme is to provide long-term capitalappreciation by investing in a portfolio of diversified equity schemes/plans andliquid / short term/ floating rate schemes/plans of mutual funds registered withSEBI.

Maturity of the Scheme Three (3) years from the date of allotment.

Liquidity Window Close-ended. Liquidity available only during a Liquidity Window, which willallow Redemptions during the last working day of every calendar month afterthe date of allotment of units, at prices related to Applicable NAV. However,subject to Regulations, the trustee reserves the right to re-issue the unitsrepurchased at applicable NAV during liquidity window, to the existingunitholders, as it may deem necessary.

Benchmark Index Crisil Balanced Fund Index

Options Growth, Dividend (Reinvestment Only)

Minimum Amount of Purchase Rs. 5,000 /- (Rs. Five Thousand Only)

Minimum Redemption Size Rs.1000/- (Rs. One Thousand only) or 100 Units

Cheques/Drafts to favour KOTAK FLEXI FOF - Series I

Load Structure Entry Load (During New Fund Offer):• For investments less than Rs. 10 crores – 2.25%• For investments equal to or greater than Rs. 10 crores – NIL.Exit Load (During Liquidity Window): Nil

Initial Issue Expenses Not exceeding 4.25% (i.e. upto 2.25% for Broker/Agents Commission [metout of entry load] and upto 2% for Marketing and Advertising, Printing andMailing, Additional Brokerage/Commission, Registrar Expenses, Bank chargesand Other Expenses)

I . H I G H L I G H T S , R I S K F A C T O R SA N D D U E D I L I G E N C E

Tax implications as per the provisions of Income TaxAct, 1961 and Wealth Tax Act, 1957, prevailing as onAugust 31, 2005 to February 13, 2006 :l No TDS on redemption irrespective of amount redeemed,

for Unit holders resident in India.

l Investments in the Scheme are exempt from Wealth Tax.

l Tax rate on units held for more than twelve months notto exceed 10% (plus applicable surcharge and cess)

l Dividends received under the Scheme are exempt fromincome tax in the hands of investors. However the Fundwill have to pay tax at the applicable rates on the amountdistributed as dividend under the Scheme.

RISK FACTORSl Mutual Funds and securities investments are subject to

market risks and there is no assurance or guarantee thatthe objectives of the Scheme will be achieved.

l As with any securities investment, the NAV of the Unitsissued under the Scheme can go up or down dependingon the factors and forces affecting the capital and moneymarkets.

l Past performance of the Sponsor/AMC/Fund or that ofany scheme of the Fund does not indicate the futureperformance of the Scheme of the Fund.

l Kotak Flexi Fund of Funds –Series I, is only the name ofthe Scheme and does not in any manner indicate thequality of the Scheme, future prospects or returns.

l The NAV of the Units issued under the Scheme may beaffected by changes in the NAV of the underlyingschemes, changes in the interest rates, and may also be

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affected inter-alia, by government policy, volatility andliquidity in the money markets.

l As per SEBI Circular No. SEBI/IMD/CIR No.10/22701/03dated December 12, 2003, the Scheme shall have aminimum of 20 investors and no single investor shallaccount for more than 25% of the corpus of theScheme(s). In case of non-fulfillment with either of theabove two conditions, the investor’s money would berefunded, in full, immediately after the close of the NewFund Offer of the Scheme.

l Tax laws may change, affecting the return on investmentin Units.

l In the event of receipt of a very large number ofredemption requests or very large value redemptionrequests or of restructuring of the Scheme’s portfolios orin case of limitation or suspension of redemption in theunderlying schemes, there may be delays in theredemption of Units. Please refer to the paragraph, ‘Rightto Limit Redemption’ in this Offer Document.

Note on some of the Risk Factors

KOTAK FLEXI FOF - Series I

a. The Scheme may invest predominantly in diversified equityschemes/plans of Mutual Fund registered with SEBI. Hencethe Scheme’s performance may depend upon theperformance of the underlying equity schemes. Anychange in the investment policies or the fundamentalattributes of the underlying schemes could affect theperformance of the Scheme.

b. Investments in underlying equity schemes will have allthe risks associated with the underlying equity schemesincluding performance of underlying stocks, derivativeinvestments, off shore investments, security lending etc.

c. Investments in underlying schemes, which investpredominantly in money market or floating rateinstruments, will have all the risks associated with suchunderlying schemes including changes in credit rating,trading volumes, settlement periods and transferprocedures; Price/Interest-Rate Risk and Credit Risk,volatility and liquidity in the money markets, pressure onthe exchange rate of the rupee, Basis Risk, Spread Riskand Reinvestment Risk, off shore investments, derivativeinvestments, security lending, etc.

d. The investors of the Scheme will bear dual recurringexpenses and possibly dual loads, those of the Schemeand those of the underlying Schemes. Hence the investorunder the Scheme may receive lower pre-tax returnsthan what they could have received if they had investeddirectly in the underlying Schemes in the sameproportions.

e. The Portfolio disclosure of the Scheme will be limited toproviding the particulars of the underlying schemes wherethe Scheme has invested and will not include theinvestments made by the underlying Schemes.

f. The dynamic asset allocation may result in highertransaction costs.

g. The Scheme is a close-ended scheme and the investorscan redeem the units held in the scheme only during thelast working day of every calendar month after the dateof allotment of units, at prices related to Applicable NAV.However, subject to Regulations, the trustee reserves theright to re-issue the units repurchased at applicable NAVduring liquidity window, to the existing unitholders, asit may deem necessary.

DUE DILIGENCE CERTIFICATEIt is confirmed that:

1. The draft Offer Document forwarded to SEBI is inaccordance with the Securities and Exchange Board ofIndia (Mutual Funds) Regulations, 1996 as amended upto date and the guidelines and directives issued by SEBIfrom time to time;

2. All legal requirements connected with the launching ofthe Scheme as also the guidelines, instructions, etc.,issued by the Government and any other competentauthority in this behalf, have been duly complied with;

3. The disclosures made in the Offer Document are true,fair and adequate to enable the investors to make a well-informed decision regarding investment in the Scheme;

4. According to the information given to us, Computer AgeManagement Services Private Limited, the Registrar andTransfer Agent, is registered with SEBI and till date suchregistration is valid; and

5. According to the information given to us, Deutsche BankAG and Standard Chartered Bank, the Custodians, areregistered with SEBI and till date such registration isvalid.

For Kotak Mahindra Asset ManagementCompany Limited

Investment Manager -Kotak Mahindra Mutual Fund

Place : Mumbai Sandeep KamathDate : February 16, 2006 Compliance Officer

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I I . D E F I N I T I O N S A N D A B B R E V I A T I O N S

In this Offer Document, the following words and expressions shall have the meaning specified below, unless the contextotherwise requires:

Applicable NAV For the Scheme, unless stated otherwise in this Offer Document, ‘ApplicableNAV’ is the Net Asset Value at the close of a Working Day as of which theredemption is sought by an investor and determined by the Fund.

Asset Management Company or Kotak Mahindra Asset Management Company Limited, the AssetAMC or Investment Manager Management Company incorporated under the Companies Act, 1956, and

authorised by SEBI to act as Investment Manager to the Schemes of KotakMahindra Mutual Fund.

Advisor The agency appointed by AMC to provide periodically the recommended listof schemes. Currently Kotak Securities has been appointed as the Advisor.

Collection Bank Branches of Bank authorised to receive Applications for the New Fund Offer,as mentioned elsewhere in this document or as appointed/changed fromtime to time.

Custodian Deutsche Bank A. G. and Standard Chartered Bank, acting as Custodiansto the Scheme, or any other Custodian appointed by the Trustee.

Diversified Equity Scheme / Plan A Mutual Fund scheme is a diversified equity scheme/plan:l Which invests predominantly in equity and equity related instruments.

Such scheme invests 65% or more of its portfolio into the equity andequity related instruments; and

l Which has, as per the investment strategy, the flexibility of investing instocks across sectors and market capitalisation.

Entry Load The charge that is paid by an Investor when he invests an amount in theScheme.

Exit Load The charge that is paid by a Unitholder when he redeems Units from theScheme.

Equity Related Instruments Equity related instruments shall include preference shares, warrants, bondsand debentures (which are partly or fully convertible into equity shares) orany other like instrument specified as such by SEBI or any regulatory authorityfrom time to time.

FII Foreign Institutional Investors, registered with SEBI under Securities andExchange Board of India (Foreign Institutional Investors) Regulations, 1995.

Gilts / Government Securities Securities created and issued by the Central Government and/or StateGovernment.

IMA Investment Management Agreement dated 20th May, 1996 entered intobetween the Fund (acting through the Trustee) and the AMC and as amendedup to date, or as may be amended from time to time.

Investor Service Centres or ISCs Designated branches of the AMC / other offices as may be designated bythe AMC from time to time.

Kotak Flexi Fund of Funds – Series I / A Close-Ended Fund of Funds SchemeKotak Flexi FOF – Series I (Investments in Diversified Equity Schemes/Plans and Liquid/ Short Term/

Floating Rate Schemes/Plans)

Kotak Bank / Sponsor Kotak Mahindra Bank Limited

KMMF / Fund / Mutual Fund Kotak Mahindra Mutual Fund, a trust set up under the provisions of TheIndian Trusts Act, 1882.

KMTCL / Trustee Kotak Mahindra Trustee Company Limited, a company set up under theCompanies Act, 1956, and approved by SEBI to act as the Trustee for theSchemes of Kotak Mahindra Mutual Fund.

Liquid Scheme Scheme predominantly investing in Money Market or Floating Rate Securitiesor Debt Securities having maturity less than 1 year and the Mark to MarketSecurities are less than 10% of the portfolio, as per SEBI Circulars datedMarch 19, and March 25, 2004.

Liquidity Window The period during which Unitholders can redeem their units at applicableNAV.

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MIBOR The Mumbai Interbank Offered Rate published once every day by theNational Stock Exchange and published twice every day by Reuters, asspecifically applied to each contract.

Mutual Fund Regulations / Regulations Securities and Exchange Board of India (Mutual Funds) Regulations, 1996,as amended up to date, and such other regulations as may be in force fromtime to time.

NAV Net Asset Value of the Units of the Scheme (including the option thereunder)as calculated in the manner provided in this Offer Document or as may beprescribed by Regulations from time to time. The NAV will be computed upto three decimal places.

NRI Non-Resident Indian and Person of Indian Origin as defined in ForeignExchange Management Act, 1999.

Offer Document This document issued by Kotak Mahindra Mutual Fund, offering forsubscription of Units of Kotak Flexi Fund of Funds.

Purchase Price Purchase Price, to an investor, of Units under the Scheme (including Optionsthereunder) computed in the manner indicated elsewhere in this OfferDocument.

Redemption Price Redemption Price to an investor of Units under the Scheme (includingOptions thereunder) computed in the manner indicated elsewhere in thisOffer Document.

Registrar Computer Age Management Services Private Limited (‘CAMS’), acting asRegistrar to the Scheme, or any other Registrar appointed by the AMC.

Repo Sale of securities with simultaneous agreement to repurchase them at a laterdate.

Reserve Bank of India / RBI Reserve Bank of India, established under the Reserve Bank of India Act,1934.

Reverse Repo Purchase of securities with a simultaneous agreement to sell them at a laterdate.

Scheme Kotak Flexi Fund of Funds – Series I

SEBI The Securities and Exchange Board of India.

Securities For the purpose of this Offer Document, Securities shall include units of theunderlying schemes.

Transaction Points Centres designated by the Registrar, to accept investor transactions and scanthem for handling by the nearest ISC.

Trust Deed The Trust Deed entered into on 20th May 1996 between the Sponsor andthe Trustee, as amended up to date, or as may be amended from time totime.

Trust Fund The corpus of the Trust, Unit Capital and all property belonging to and/orvested in the Trustee.

Underlying scheme(s) The open - ended schemes of Mutual Funds registered with SEBI in whichthe Scheme proposes to invest.

Unit The interest of the investors in the Scheme, which consists of each Unitrepresenting one undivided share in the assets of the Scheme.

Unitholder A person who holds Unit(s) under the Scheme.

Valuation Day Working Day of the Scheme.

Working Day A day other than any of the following: (i) Saturday or Sunday; (ii) a day onwhich both the National Stock Exchange and the Bombay Stock Exchangeare closed (iii) a day on which the Purchase and Redemption of Units issuspended.

Words and Expressions used in this Same meaning as in Trust Deed.Offer Document and not defined

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I I I . C O N S T I T U T I O N O F T H E F U N D

A. THE FUNDKotak Mahindra Mutual Fund (KMMF) has been establishedas a Trust under the Indian Trusts Act, 1882. The Trust Deedestablishing KMMF and the Deed of Amendment has beenregistered under the Registration Act, 1908 by the office ofthe Sub-Registrar of Assurances at Mumbai. KMMF has beenregistered with SEBI vide registration number MF/ 038/98/1dated 23rd June 1998.

B. SPONSOR COMPANYKotak Mahindra Bank LimitedThe erstwhile Sponsor company, Kotak Mahindra FinanceLimited (KMFL) was converted into Kotak Mahindra BankLimited (Kotak Bank) in March 2003 after being granted abanking license by the Reserve Bank of India. Thus, theSponsor of the Fund is Kotak Bank. KMFL promoted by Mr.Uday S. Kotak, Mr. S.A.A. Pinto and Kotak & Co., wasincorporated on November 21, 1985 under the name KotakCapital Management Finance Limited. In early 1986, thepromoters were joined by Late Mr. Harish Mahindra and Mr.Anand G. Mahindra and the Company’s name was changedto Kotak Mahindra Finance Limited.

Kotak & Co. (now Kotak & Co. Limited) is a highly respectedtrading company of Mumbai, with international business. Mr.Uday Kotak, a scion of the Kotak family, was an outstandingstudent through school, Sydenham College (BombayUniversity) and Jamnalal Bajaj Institute of Management Studies(Bombay University). Mr. S.A.A. Pinto, trained as a lawyer, hasheld senior positions in well-known organisations like ICI andGrindlays Bank. For instance, he was part of the team inGrindlays Bank, which started the first merchant banking unitin India in 1968. Mr. Harish Mahindra was an industrialist ofrepute and had played a prominent role in social service andpublic life, thereby earning him high esteem. Mr. AnandMahindra, an MBA from Harvard University, is the ManagingDirector of one of India’s most reputed industrial firms,Mahindra & Mahindra Limited.

KMFL started with a capital base of Rs. 30.88 lakh. Frombeing a provider of a single financial product, KMFL grewsubstantially during the seventeen years of its existence intoa highly diversified financial services company and has nowconverted into a Bank. As on December 31, 2005, the networth of Kotak Bank is Rs. 839 crore and combined with itssubsidiaries, the Group net worth (before minority interest)is Rs. 1,970 crore. There are over 48,000 shareholders ofKotak Bank. The Sponsor and its subsidiaries/associates offerwide ranging financial services such as loans, lease and hirepurchase, consumer finance, home loans, commercial vehiclesand car finance, investment banking, stock broking, primarymarket distribution of equity and debt products and lifeinsurance. The group has offices (including representativeoffices and franchise offices) in 216 Indian cities and alsopresent internationally in Mauritius, London, Dubai and NewYork. Kotak Mahindra (UK) Limited, an ultimate subsidiary ofKotak Bank, is the first company owned from India to be

registered with the Financial Services Authority in UK. KotakMahindra Capital Company Limited and Kotak SecuritiesLimited are joint ventures between Kotak Bank and GoldmanSachs, the latter being one of the largest global investmentbanks. Kotak Mahindra Old Mutual Life Insurance Limited isa joint venture between Kotak Bank and Old Mutual Plcbased in the UK and with large presence in the South Africaninsurance market. Some of the other subsidiaries of KotakBank are Kotak Mahindra Securities Limited, Kotak MahindraPrime Limited, Kotak Mahindra International Limited, KotakMahindra Private-Equity Trustee Limited, Kotak MahindraInvestments Limited, Kotak Mahindra Inc., and Kotak ForexBrokerage Limited.

The Sponsor has been consistently profitable and dividendpaying company since inception. All group companies areprofessionally run companies, employing over 6,000employees, including CAs, MBAs and Engineers.

The Sponsor has contributed Rupees One Lakh as the initialcontribution to the corpus for the setting up of the Trust. TheSponsor has also contributed Rupees One Lakh Fifty Thousandas additional corpus. The Sponsor has vested the trusteefunctions in the Trustee. The Sponsor is represented by directorson the boards of the Trustee and the AMC in accordance withthe Regulations.

Given below is a summary of the Sponsor's financials:

(Rs. in crore)

Description Nine Monthsended Year Ended March 31

December 31,2005* 2005 2004 2003

Total Income 643.51 552.38 383.91 253.32

Profit Before Tax 122.21 118.39 120.79 70.01

Profit After Tax 83.50 84.89 78.72 44.96

Free Reserves 529.88 627.55 546.13 482.24

Net Worth 839.00 750.87 605.67 541.45

Earnings perShare (Rs.) 2.71 7.08 6.63 7.59

Book Value perShare (Rs.) 27.14 60.89 101.74 91.44

Dividend % NIL 12.50 24 21

Paid up EquityCapital 309.09 123.32 59.53 59.21

*Un-auditedNote: Prior period EPS and Book Value are not adjusted forbonus issue.The Sponsor is neither responsible nor liable for any lossresulting from the operations of the Scheme.

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C. TRUSTEE COMPANY (THE TRUSTEE)Kotak Mahindra Trustee Company Limited (The Trustee), a company incorporated under the Companies Act, 1956, is theTrustee of the Fund, by virtue of the Trust Deed made between the Sponsor and the Trustee.

1. DirectorsThe Directors of the Trustee are:Names and Addresses Other Directorships

Mr. Amit Krishnakant Desai Minesota Finance Private LimitedAdvocate7, Shivtirth - 1,Bhulabhai Desai Road,Mumbai - 400 026Chairman

Mr. Girish Sharedalal The Ruby Mills LimitedChartered Accountant FDC Limited111, Landmark, Stovec Industries LimitedM. L. Dahanukar Marg, Stellar Asset Management Private LimitedMumbai - 400 026 Maulik & Kaji Financial Services Private Limited

Ratan Trading Private LimitedTrumac Engineering Company Pvt. Ltd.

Mr. Tushar A. Mavani –AdvocateAryan Mahal, 6th Floor,“C” Road, Churchgate, Mumbai - 400 020

Mr. Anirudha Barwe Jain Irrigation Systems LimitedDirector Sigma Laboratories LimitedB-1, Bageshree, IFCI Financial Services LimitedShankar Ghanekar Marg, ILFS Investsmart India LimitedPrabhadevi, Jayant Oils and Derivatives Ltd.Mumbai - 400 025 Zenith Birla (India) Ltd

Mr. Chandrashekhar Sathe Kotak Mahindra Securities LimitedService Kotak Forex Brokerage LimitedC-10, Shri Dattaguru Coop. Housing Society, Maharashtra Foundation IndiaDeonar, Mumbai - 400 089 Kotak Mahindra Private Equity Trustee Limited

Kotak Mahindra Prime Limited

Mr. Amit Desai is a graduate in Commerce and Law fromthe Bombay University. He is an advocate and has about 20years of experience in criminal, economic and revenue laws.

Mr. Desai is associated with the Sponsor.

Mr. Girish Sharedalal is a graduate in Commerce and Artsand also a Fellow of the Institute of Chartered Accountantsof India. Formerly a Senior Partner of Messrs Dalal, Desai andKumana, a firm of Chartered Accountants, he has about 44years of experience in the field of audit, taxation andmanagement consultancy.

Mr. Tushar Mavani is a graduate in Commerce and Lawfrom the Bombay University. He is a partner with Messrs Mulla& Mulla & Craigie Blunt & Caroe and has about 14 years ofexperience in the legal field.

Mr. Anirudha Barwe is a post graduate in Mathematics andalso a Certified Associate of Indian Institute of Bankers,Mumbai. Mr. Barwe has about 43 years of experience in thefield of banking and financial services. Mr. Barwe was activelyassociated with and responsible to a great extent for thesuccess of the Resurgent India Bond issue of SBI. Mr. Barweretired as the Managing Director of SBI Capital MarketsLimited in October 1998. After retirement, Mr. Barwe workedwith IDFC as Chief Financial Officer for 3 years.

Mr. Chandrashekhar Sathe is a graduate with B. Tech.(Chemical Engineering) from IIT, Mumbai. He has over 27years’ experience in Banking and Finance. He has been a partof the Senior Management team of the Kotak MahindraGroup since 1992 and was responsible for setting up theFixed Income Securities capability of Kotak Mahindra CapitalCompany. Prior to Kotak Mahindra, he was with the Bank ofNova Scotia and Bank of Maharashtra and has wide rangingexperience in Banking, Finance, Administration, Credit, ForeignExchange and Money Markets. Mr. Sathe is a widely consultedexpert on Foreign Exchange and Money Markets in India andis a frequent contributor to financial newspapers, magazinesand TV News channels. Mr. Sathe was the Chief ExecutiveOfficer of the AMC for the period, 1st April 1998 to 30thNovember 2001 and currently heads the Risk Managementfunction at Kotak Mahindra Bank Limited.Mr. Sathe is associated with the Sponsor.2. Rights, Obligations, Responsibilities and

Duties of the TrusteePursuant to the Trust Deed constituting the Fund and in termsof the Regulations, the rights and obligations of the Trusteeare as under:1. The Trustee has the legal ownership of the Trust Fund.

The general superintendence and management of the

8


Trust and all powers incidental to the purpose of the trustvest absolutely in the Trustee subject to the Trust Deed.

2. The Trustee shall take into its custody or under its controlall the capital and property of every Scheme of theMutual Fund and hold it in trust for the Unitholders ofthe Scheme.

3. The Trustee is entitled to delegate any power and/orresponsibility vested in it to the AMC, which is accountableto the Trustee and bound to carry out the functionsassigned to it from time to time. Notwithstanding anysuch delegation, the Trustee Company is at all timesresponsible for the acts of negligence or acts of omissionand commission of the AMC.

4. The Trustee shall ensure that the AMC and the Custodianduly fulfill the functions respectively assigned to themunder the Mutual Fund Regulations.

5. The Trustee shall ensure before the launch of any Schemethat the Asset Management Company has:-a) systems in place for its back office, dealing room

and accounting;b) appointed all key personnel including fund

manager(s) for the Scheme and submitted to theTrustee their resume containing particulars of theireducational qualifications and past experience inthe securities market within fifteen days of theirappointment;

c) appointed auditors to audit the accounts of theScheme;

d) appointed a compliance officer who shall beresponsible for monitoring the compliance of theSEBI Act, rules and regulations, notifications,guidelines, instructions etc. issued by SEBI or theCentral Government and for redressal of investors’grievances;

e) appointed registrars and laid down parameters fortheir supervision;

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

g) specified norms for empanelment of brokers andmarketing agents.

6. In carrying out responsibilities, the Trustee shall maintainarms’ length relationship with other companies, orinstitutions or financial intermediaries or any bodycorporate with which it may be associated.

7. The Trustee shall not be liable to the Mutual Fund or theUnitholders, if the Mutual Fund suffers a decline in itsnet asset value or if any share or other security comprisedin the Trust Fund depreciates in its market value or failsto achieve any increase therein, unless such decline,depreciation or failure is caused by the willful default orgross negligence of the Trustee.

8. The Trustee shall not be under any liability on accountof anything done or omitted to be done or suffered tobe done by the Trustee in good faith, bona fide and afterdue diligence and care, in accordance with or on theadvice of the AMC or any other professional person, firmor company.

9. For avoidance of doubt, it is hereby agreed and declared

that references to the Trustee in this clause shall bedeemed to include references to the officers, servantsand delegates of the Trustee.

10. The Trustee shall ensure that the AMC has been managingthe Scheme independently of other activities and hastaken adequate steps to ensure that the interest of theinvestors of no Scheme is being compromised with thatof the investors of other Schemes or of other activitiesof the AMC.

11. The Trustee shall ensure that the Trust Fund shall beapplied and be available absolutely for the purposes ofthe Trust and shall not be applied directly or indirectly forany purpose other than the purposes referred to underthe Trust Deed.

12. The Trustee shall call for a meeting of the Unitholdersa) whenever required to do so by SEBI in the interest

of the Unitholders; orb) whenever required to do so on the requisition made

by three-fourths of the Unitholders of any Scheme;or

c) when the majority of the Directors of the TrusteeCompany decide to wind up or prematurely redeemthe Units.

13. The Trustee shall ensure that no change in thefundamental attributes of any scheme or the trust orfees and expenses payable or any other change whichwould modify the scheme and affects the interest ofUnitholders, is carried out unless :-a) a written communication about the proposed

change is sent to each Unitholder and anadvertisement is given in one English daily newspaperhaving nationwide circulation as well as in anewspaper published in the language of the regionwhere the Head Office of the mutual fund is situated;and;

b) the Unitholders are given an option to exit at theprevailing Net Asset Value without any Exit Load.

14. Subject to the provisions of the Mutual Fund Regulationsas amended from time to time, the consent of theUnitholders shall be obtained, entirely at the option ofthe Trustee, either at a meeting of the Unitholders orthrough postal ballot. Only one Unitholder in respect ofeach folio or account representing a holding shall voteand he shall have one vote in respect of each resolutionto be passed. The procedure of voting shall be as per thedirectives issued by SEBI, from time to time.

15. The Trust Fund shall be held in trust and managed by theTrustee in accordance with the Trust Deed.

16. The Trustee shall be accountable for, and be the custodianof, the funds and property of the respective Scheme andshall hold the same in trust for the benefit of theUnitholders in accordance with the Mutual FundRegulations and the provisions of the Trust Deed.

17. The Trust Deed shall not be amended without obtainingthe prior approval of SEBI, and approval of the Unitholdersshall be obtained where it affects their interests.

18. The appointment of the AMC can be terminated by amajority of the Board of Directors of the Trustee or by75% of the Unitholders of the Scheme.

9


Modifications, if any, in the rights and/or obligations andduties of the Trustee are on account of amendments to theRegulations and the Regulations supercede/override theprovisions of the Trust Deed, wherever the two are in conflict.

The Compliance Officer reports directly to a director of theTrustee to carry out the supervisory role on behalf of theTrustee. In addition, the Trustee may seek any informationfrom time to time from the AMC. A reputed firm of CharteredAccountants has been appointed to carry out internal auditof the Fund on a periodic basis to facilitate monitoring theactivities of the AMC. On a quarterly basis, an activity reportprepared by the AMC is discussed at the Board Meetings ofthe Trustee. During the year 2004-05, twelve meetings of theBoard of Directors of the Trustee were held. During the periodApril 2005 till date seven meetings of the Board of Directorsof the Trustee were held. The Audit Committee, comprisingfour Directors of the Board of Directors of the Trustee, hasbeen constituted pursuant to the SEBI circular MFD/CIR/010/024/2000 dated 17.01.2000 chaired by an IndependentDirector. The Audit Committee has had three meetings duringthe year 2004-05. During the period April 2005 till date fivemeetings of the Audit Committee were held.

3. Trustee’s FeeThe Trustee shall, during the continuance of this Trust anduntil KMMF is finally wound up and whether or not KMMF

is in the course of administration by or under the order ordiscretion of any court, be entitled to receive, in addition tothe reimbursement of all costs, charges and expenses, a sumat the rate of 0.050% per annum of the Trust Fund as definedunder the Trust Deed, or a sum of Rs.15,00,000/-, whicheveris higher, payable monthly.

D. ASSET MANAGEMENT COMPANYKotak Mahindra Asset Management Company Limited, acompany registered under the Companies Act, 1956, wasappointed to act as the Investment Manager of KotakMahindra Mutual Fund vide Investment ManagementAgreement dated 20th May, 1996, as amended up to date.It is a wholly owned subsidiary of the Sponsor, Kotak Bank.

The Investment Manager is entitled to charge a managementfee as prescribed by the Regulations for the services renderedby it to the Fund.

An approval by the Division of Funds, Investment ManagementDepartment under the SEBI (Portfolio Manager) Regulations,1993 and Mutual Funds Division of SEBI under the SEBI(‘Mutual Funds’) Regulations, 1996, has been granted to theCompany for undertaking Portfolio Management Service(PMS). There is no conflict of interest between the MutualFund and the PMS activity.

1. Name and Address of the AMCKotak Mahindra Asset Management Company Limited5A, 5th Floor, Bakhtawar, 229, Nariman Point, Mumbai 400 021.

2. Directors on the Board of the AMCNames and Addresses Other Directorships

Mr. Uday S. Kotak Kotak Mahindra Bank Limited62, NCPA Apartments, - Executive Vice Chairman & Managing DirectorDorabjee Tata Marg, Kotak Mahindra Capital Company Limited – ChairmanNariman Point, Mumbai - 400 021. Kotak Mahindra Prime Limited - ChairmanChairman Kotak Securities Limited – Chairman

Kotak Mahindra Old Mutual Life InsuranceCompany Limited – ChairmanKotak Forex Brokerage LimitedThe Mahindra United World College of IndiaIndian Institute of Banking and Finance

Mr. R. C. Khanna Cooperheat India Private Limited304, Bakhtavar, Monsanto India LimitedOpp. Colaba Post Office, Tata Chemicals LimitedMumbai - 400 005. Schrader Duncan Limited

Mr. Sukant Sadashiv Kelkar Macrofill Investments LimitedNo. 1, Sindhula, P. T. Five Star Industries Limited, IndonesiaN. Gamadia Road, Naperol Investments LimitedMumbai - 400 026. Harvard Plantations Limited

Britannia Industries LimitedThe Bombay Dyeing & Mfg. Co. LimitedWadia BSN LimitedPlacid Plantations LimitedAssociated Biscuits International Limited, London –Alternate DirectorABI Holdings Limited, London – Alternate DirectorNowrosjee Wadia & Sons LimitedStandard Chartered Trustee Company LimitedGo Airlines (India) Private Limited

10


Mr. Chengalath Jayaram Kotak Mahindra Bank Limited’Satguru Simran’, Kotak Securities Limited7th Floor, 3rd Road, Kotak Mahindra Prime LimitedAlmeida Park, Bandra (West), Financial Planning StandardsMumbai - 400 050.

Mr. Bipin R. Shah Indus Venture Management Limited8 D, Ilpala, 220 Little Gibbs Road, Global Pharmatech Pvt. LimitedMalabar Hill, ITTI Pvt. LimitedMumbai 400 006. Marico Industries Limited

Dolphin Offshore Enterprises (India) Limited

Mr. Narayan S. A. Kotak Securities Limited1 Smruti, Pestom Sagar, Kotak Commodity Services LimitedPlot No. 27, Road No. 4, Kotak Mahindra Asset Reconstruction Company LimitedChembur, Mumbai 400 089.

Mr. Uday S. Kotak, 46, is a graduate in Commerce and apost-graduate in Business Administration from Jamnalal BajajInstitute of Management Studies of Mumbai University. Mr.Kotak has over 18 years of experience in the financial servicesindustry. Mr. Kotak is the Vice Chairman and ManagingDirector of the Promoter, and the chairman of various othercompanies.

Mr. R. C. Khanna, 79, is a graduate in Commerce fromLondon University, Fellow of the Institute of CharteredAccountants of England & Wales, Fellow of the Institute ofChartered Accountants of India, Associate of the CharteredInstitute of Management Accountants, London and Associateof the Institute of Cost and Works Accountants of India. Hewas a partner till 31st March 1998 in A. F. Ferguson & Co.,a firm of Chartered Accountants. Mr. Khanna has over 54years of experience in Audit, Taxation, Finance and otherrelated areas.

Mr. Sukant S. Kelkar, 66, is a post-graduate in commerce.He has about 40 years of experience in finance, capitalmarkets, and related areas. Mr. Kelkar has over 10 yearsexperience in the Bank of India, and has even been a foreignexchange dealer in London for 3 years during this tenure.Following this, Mr. Kelkar worked with Bombay DyeingManufacturing Company Limited for 31 years, finally retiringas Executive Director in July 2001.

Mr. Chengalath Jayaram, 48, holds a postgraduate diplomain Management from IIM, Calcutta, and has over 25 years’experience in the field of Finance. Mr. C. Jayaram began hiscareer nearly two decades ago in the Financial Services industry.He joined the Kotak Mahindra Group in 1990, before whichhe had worked with several renowned organizations such asICICI Limited and A. F. Fergusons. At Kotak Mahindra, besidesbeing instrumental in setting up the car finance business, hewas also responsible for the distribution business, which wasthen called FICOM. During the period 1990 to 1995, he wasresponsible for the businesses of financing against shares andproprietary investments. From 1995 to 1999, he was theManaging Director of Kotak Securities Limited and currentlyhe is the Executive Director of Kotak Bank.

Mr. Bipin R. Shah, 73, a member of the Institute of CharteredAccountants of India, holds a Bachelor’s Degree in Commercefrom Bombay University, and has 48 years of work experience.Mr. Shah began his career in 1956, with Hindustan LeverLimited, where he held various Senior CommercialAssignments, including the post of Commercial Manager at

its largest soaps, detergents and foods factory in Bombay,Chief Buyer, Raw Materials and Head of Foods Business. Hebecame a Director of the company in 1979, assumingresponsibility for Foods, Animal Feeds, Agri Products andExports Business, and managed a commendable turnaroundof the company’s dairy business.

In 1981, Mr. Shah also became Chairman of another Unileversubsidiary, Lipton India Limited, which was facing losses andfinancial crisis. Mr. Shah was responsible for turning thecompany around, and for reviving employee and investorconfidence. Mr. Shah was also Chairman of Export Businessof four Unilever Companies in India viz. Hindustan Lever Ltd.,Lipton India Ltd., Brooke Bond India Ltd and Ponds India Ltd.

On his retirement from the Lever Group of Companies in1992, Mr. Shah joined Indus Venture Management Ltd.,where he currently holds the post of Vice Chairman. Mr. Shahis also a non Executive Director on the Board of severalcompanies, including CRISIL, the premier credit rating agencyin India.

Mr. Narayan S. A., 44, is a member of the Institute ofChartered Accountants of India, holds a Bachelor’s Degree inCommerce from Bombay University, and has spent 13 yearsin the Kotak Group, handling various responsibilities andportfolios. He began his career as a consultant, handlingseveral statutory and internal audit assignments, besidesCompany law and taxation matters.

Mr. Narayan joined the Kotak Group in 1991, as an AssistantVice President in the Operations Department, where he wasresponsible for accounts, audit and systems. In 1993, hebecame Vice President, handling the Southern Region andInvestment Portfolio of the Group, before going on to becomeChief Operating Officer for Kotak Securities Limited in 1996.Mr. Narayan rose to become Executive Director of KotakSecurities Limited in May 1997, and then took over asManaging Director of the company in June 2003, a post hecurrently holds.

Mr. Uday Kotak, Mr. C. Jayaram and Mr. Narayan S.A. areassociated with the Sponsor.

3. Powers, Functions and Responsibilities of theAMC

Under the IMA, the AMC has been appointed as the AssetManagement Company to provide management andadministrative services to the Trust and to deploy the fundsraised by KMMF under its schemes. The Trustee has authorised

11


the AMC to do all such acts and things on behalf of the Trustas are necessary for the discharge of the responsibilities of theAMC. The duties and responsibilities of the AMC are asfollows:

1. The Trustee has granted the AMC certain powers andauthorities as stipulated under the Trust Deed and maygrant such other powers as may be deemed fit from timeto time, and communicate the same in writing to theAMC.

2. The following are, inter-alia, the specific powers:

a) to invest, acquire, hold, manage or dispose of all orany securities and to deal with, engage in and carryout all other functions and to transact all businesspertaining to KMMF;

b) to keep the moneys belonging to KMMF with banksand custodians, as the AMC may deem fit;

c) to determine the terms and conditions applicable tothe Scheme and to decide the category of personswho may participate in any Scheme and to formulate,introduce, make, announce or launch one or moreScheme;

d) to issue, sell or purchase Units under any Schemeof KMMF;

e) to ascertain, appropriate and distribute the surplusgenerally or under various schemes or under anyScheme, to carry forward, reinvest or otherwisedeal with any surplus and to transfer such sums asthe AMC may deem fit to one or more reserve fundswhich may be established at the discretion of theTrustee;

f) to sign, seal, execute, deliver and register accordingto law, all deeds, documents, and assurances inrespect of or in any manner relating to KMMF;

g) to do all acts, deeds, matters and things, which arenecessary for any object, purpose or in relation toKMMF in any manner or in relation to any Schemeof KMMF.

3. The AMC shall be responsible for making, floating andissuing Schemes for KMMF subject to prior approval ofthe Trustee and to the extent required in the MutualFund Regulations.

4. The AMC shall be responsible for investing and managingthe funds mobilised under various Schemes in accordancewith the provisions of the Trust Deed and Mutual FundRegulations.

5. The AMC shall make such disclosures or submit suchdocuments as may be required by the Trustee and /orSEBI.

6. The AMC shall provide management and administrativeservices for KMMF in accordance with the provisions ofIMA and any resolution passed by the Board of Directorsof the Trustee from time to time and communicated inwriting to the AMC.

7. The AMC shall be responsible for the day-to-daymanagement of KMMF.

8. The AMC shall provide the Trustee with all information

concerning the operation of the various Schemes ofKMMF at such intervals and in such manner as requiredby the Trustee.

9. The AMC shall maintain books and records of theoperation of various Schemes of KMMF to ensurecompliance with the Mutual Fund Regulations and shallsubmit a Scheme wise report on the functioning of theFund to the Trustee on a quarterly basis or at suchintervals and in such manner as may be required or calledfor by the Trustee or SEBI.

10. The AMC shall be responsible for its acts of negligence,commission and omission and those of its employeesand/or the persons whose services have been engagedby the AMC and the AMC shall indemnify the Trusteeand each and every one of the Directors of the TrusteeCompany against all damages, losses, costs andconsequences and any liabilities whatsoever that mayarise on account of such acts of negligence and acts ofcommission and omission by any of the above mentionedpersons.

11. No loss or damage or expenses incurred by the AMC orofficers of the AMC or any delegate of the AMC, shallbe met out of the Trust Fund.

12. The AMC is not exempted from or indemnified againstany liability for (i) negligence, dishonesty or fraud or (ii)failure to show the degree of care and diligence requiredof it while carrying out its duties. Notwithstandinganything contained in any contract or agreement or anytermination settlement, neither the AMC nor its directorsor other officers shall be absolved of liability to theMutual Fund for their acts of commission or omissionwhile holding such position or office.

13. The AMC hereby undertakes to hold harmless andindemnify the Trustee or procure the Trustee to be heldharmless and indemnified against all actions, proceedings,claims, and demands, cost and expenses incidentalthereto, including all legal, professional and otherexpenses incurred, which may be brought against,suffered or incurred by the Trustee by reason of theperformance or non-performance by the AMC of itsduties. Such indemnification shall be by the AMC andnot out of the Trust Fund.

14. The AMC shall not be liable to the Trustee for any errorof judgment or mistake of law or for any loss sufferedin connection with the subject matter of the IMA, unlesssuch error of judgment or mistake constitutes or suchloss is caused by any acts of commission or omission orby fraud or willful default or negligence of the AMC orany of its agents or delegates. Without prejudice to thegenerality of the foregoing, in particular (but withoutlimitation) the AMC shall not be liable to the MutualFund for any loss which may be sustained in the purchase,holding or sale of any investments or other assets by themutual fund or on any of its assets as a result of loss,delay, misdelivery or error in transmission of cabled,telexed, telecopied, facsimiled, telegraphic or othercommunication unless such loss arose by any acts ofcommission or omission or from fraud, bad faith, willfuldefault or negligence in the performance or non-performance of its duties as mentioned in the IMA.

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15. The AMC shall not be liable to the Trustee in the eventthat the Mutual Fund suffers a decline in its Net AssetValue or fails to achieve any increase therein unless suchdecline or failure is caused by any acts of commission oromission or by the default or negligence of the AMC,a bona fide error of judgment not being regarded asdefault or negligence nor as an act of commission oromission.

4. Schemes launched by the Mutual FundIn December 1998, the Fund launched Kotak Gilt SavingsPlan, Kotak Gilt Investment Plan and Kotak 30. Kotak GiltSavings Plan and Kotak Gilt Investment Plan opened forcontinuous offer from January 5, 1999 and Kotak 30, fromJanuary 21, 1999. It further launched Kotak Gilt Serial Planson September 27, 1999. In October 1999, two more Schemes,viz. Kotak Bond and Kotak Balance, were launched and thesebecame open-ended on November 29, 1999. The next additionhappened in February 2000 when the Fund further launchedtwo Schemes, viz., Kotak Tech and Kotak MNC. These becameopen-ended on May 2, 2000. In October 2000, the Fundlaunched Kotak Liquid, which became open-ended on October6, 2000. In November 2000, the Fund launched Serial Plansunder Kotak Bond. Then, on April 22, 2003, Kotak BondShort Term Plan was launched. In May 2002, Kotak FMP, aclose-ended Scheme comprising of several fixed maturityplans was launched. In July 2003, Kotak Floater was launched,which became open-ended on July 15, 2003. The name ofKotak Floater has been changed to Kotak Floater Short TermScheme with effect from August 23, 2004. In October 2003,Kotak Income Plus was launched and it became open-ended

on December 03, 2003. Kotak Dynamic Income and KotakGlobal India were launched on December 15, 2003 andDecember 22, 2003 respectively and these became open-ended on December 29, 2003 and February 3, 2004,respectively. Kotak FMP (8) was launched on March 15, 2004.Kotak Equity FOF, Kotak Opportunities and Kotak FloaterLong Term Scheme were launched on July 1, 2004, July 27,2004 and August 2, 2004 respectively and these becameopen-ended on August 10,2004, September 10, 2004 andAugust 16, 2004, respectively. Kotak Midcap was launchedon December 30, 2004 and it became open ended on February25, 2005. In February 2005, Kotak FMP Series VIII, a close-ended fixed maturity scheme with 30 days maturity andKotak Dynamic Fund of Funds were launched. In March2005, FMP Series I, FMP Series II and FMP Series IV, closeended schemes with 366 days, 90 days and 34 days fixedmaturities respectively were launched. In June 2005, KotakContra Scheme was launched and it became open-ended onJuly 27, 2005. In September 2005, Kotak Cash Plus Fund,Kotak ELSS Scheme and Kotak Flexi Fund of Funds werelaunched. Kotak Cash Plus Fund became open- ended onOctober 3, 2005. Kotak ELSS became open-ended onNovember 25, 2005. In November 2005, Kotak FMP SeriesXII, a close-ended fixed maturity scheme with 90 days maturitywas launched. In January 2006, Kotak FMP Series XIV close-ended fixed maturity scheme with maturity period of 15months and Kotak FMP Series XV and Kotak FMP Series XVIclose ended fixed maturity schemes with maturity period of90 days, respectively were launched. In February 2006, KotakFMP Series XVII, a close- ended fixed maturity Scheme with90 days maturity was launched.

Condensed Financial Information (for the last three fiscal years)Kotak Gilt Savings Plan Kotak Gilt Investment Kotak Gilt

- Regular Plan Investment -Provident Fund &

Trust Plan

Apr '02 - Apr '03 - Apr '04 - Apr '02 - Apr '03 - Apr '04 - Nov '03 - Apr '04 -Mar '03 Mar '04 Mar '05 Mar '03 Mar '04 Mar '05 Mar '04 Mar '05

Date of Allotment 29-Dec-98 29-Dec-98 29-Dec-98 29-Dec-98 29-Dec-98 29-Dec-98 11-Nov-03 11-Nov-03

Beginning of Year / Allotment Date 1-Apr-02 1-Apr-03 1-Apr-04 1-Apr-02 1-Apr-03 1-Apr-04 11-Nov-03 1-Apr-04

End of Year / Last Date 31-Mar-03 31-Mar-04 31-Mar-05 31-Mar-03 31-Mar-04 31-Mar-05 31-Mar-04 31-Mar-05

NAV at beginning of year / Allotment Date (Rs.) 13.95 (G) 14.92 (G) 15.61 (G) 17.00 (G) 19.43 (G) 21.91 (G) 21.60 (G)‡ 21.93 (G)10.44 (D) 10.52 (MD) 10.40 (MD) / 10.71 (D) 10.70 (D) 10.54 (D) 10.74 (D)‡ 10.79 (D)

10.44 (AD)

Net Income per unit (Rs) 1.47 0.72 0.73 2.17 2.63 (0.32) 0.09 0.37

Dividends (Rs. per unit) *$$ 0.61 0.53 (MD) / 0.07 ( MD) 1.48 1.29 Nil 0.08 0.064.50 (AD)

Dividends (Rs. per unit) *†† 0.34 (MD) Nil Nil

Dividends (Rs. per unit) * ^^ 0.32 (MD) Nil 0.03

Transfer to reserves (Rs. crores) (4.58) 2.13 3.17 10.32 0.60 (65.22) 15.89 4.01

Nav as on : At the end of the year / period (Rs.) 14.92 (G) / 15.61 (G) / 16.39 (G) / 19.43 (G) / 21.91 (G) / 21.96 (G) / 21.93 (G) / 22.07 (G) /10.52 (D) 10.40 (MD) / 10.45 (MD) / 10.70 (D) 10.54 (D) 10.56 (D) 10.79 (D) 10.75 (D)

10.44 (AD) 10.97 (AD)

Annualised return ** 9.85 8.84 5.04 16.89 16.09 0.26 15.89 0.66

Absolute return *** – – – – – – 1.38 –

Net Assets at end of the year / period (Rs. crores) 15.92 47.53 27.10 279.53 241.01 90.84 31.49 39.21

Ratio of Recurring Expenses to Average Assets 1.00% 1.59% 1.18% 1.64% 1.65% 1.65% 1.30% 1.25%

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Kotak Bond Kotak BondRegular Plan Deposit Plan

(formerly Kotak BondWholesale Plan)

Apr '02 - Apr '03 - Apr '04 - Apr '02 - Apr '03 - Apr '04 -Mar '03 Mar '04 Mar '05 Mar '03 Mar '04 Mar '05

Date of Allotment 25-Nov-99 25-Nov-99 25-Nov-99 25-Nov-99 25-Nov-99 25-Nov-99

Beginning of Year / Allotment Date 1-Apr-02 1-Apr-03 1-Apr-04 1-Apr-02 1-Apr-03 1-Apr-04

End of Year / Last Date 31-Mar-03 31-Mar-04 31-Mar-05 31-Mar-03 31-Mar-04 31-Mar-05

NAV at beginning of year /Allotment Date (Rs.) 14.00 (G) 15.67 (G) 17.25 (G) / 13.78 (G) 15.35 (G) 16.80(G)

10.20 (QD) / 10.58 (QD) / 10.49 (QD) / 10.28 (D) 10.77 (D) 10.70(D)10.66 (AD) 11.19 (AD) / 11.53 (AD) /

10.44 (B) 11.50 (B)

Net Income per unit (Rs.) 1.21 2.76 (0.31) 1.25 1.86 (0.07)

Dividends (Rs. per unit) *$$ 0.80 (QD) / 0.99 (QD) / 0.06 (QD) 0.63 0.93 0.060.75 (AD) 0.69 (AD)

Dividends (Rs. per unit) *†† 0.17 (QD) Nil

Dividends (Rs. per unit) * ^^ 0.25 (QD) Nil

Transfer to reserves (Rs. crores) 100.62 ¥ (89.81) (97.52) 18.94 (11.92) (13.54)

Nav as on : At the end of the year / 15.67 (G) / 17.25 (G) / 17.55 (G) / 15.35 (G) / 16.80 (G) / 16.98 (G) /period (Rs.) 10.58 (QD) / 10.49 (QD) / 10.30 (QD) / 10.77 (D) 10.70 (D) 10.75 (D)

11.19 (AD) / 11.53 (AD) / 11.73 (AD) /10.44 (B) 11.50 (B) 11.70 (B)

Annualised return ** 14.36 13.36 1.70 13.65 12.66 11.09

Absolute return *** – – – – – –

Net Assets at end of the year / period(Rs. crores) 887.54 428.84 54.32 119.33 74.09 22.72

Ratio of Recurring Expenses toAverage Assets 1.60% 1.65% 1.65% 2.14% 2.23% 2.25%

Kotak Bond Short Term Kotak Liquid Regular Plan

May '02 - Apr '03 - Apr '04 - Apr '02 - Apr '03 - Apr '04 -Mar '03 Mar '04 Mar '05 Mar '03 Mar '04 Mar '05

Date of Allotment 2-May-02 2-May-02 2-May-02 5-Oct-00 5-Oct-00 5-Oct-00

Beginning of Year / Allotment Date 2-May-02 1-Apr-03 1-Apr-04 1-Apr-02 1-Apr-03 1-Apr-04


NAV at beginning of year / Allotment Date (Rs.) 10.00 10.72 (G) 11.40(G) 11.33 (G) 12.09 (G) 12.67(G)10.16 (D) 10.08(D) 10.01 (D) 10.01 (D) 10.02(D)

Net Income per unit (Rs.) 1.33 0.96 2.36 0.89 0.52 0.51

Dividends (Rs. per unit) *$$ 0.54 0.62 0.09 0.66 0.41 0.10

Dividends (Rs. per unit) *†† 0.32 0.28

Dividends (Rs. per unit) * ^^ 0.30 0.26

Transfer to reserves (Rs. crores) 14.97 14.28 (26.15) 50.79 (41.32) 30.90

Nav as on : At the end of the year / period (Rs.) 10.72 (G) / 11.40 (G) / 11.93 (G) / 12.09 (G) / 12.67 (G) / 13.22 (G) /10.16 (D) 10.08 (D) 10.06 (D) 10.01 (D) 10.02 (D) 10.02 (D)

Annualised return ** – 7.08 4.61 7.93 7.02 4.33

Absolute return *** – – – – – –

Net Assets at end of the year / period (Rs. crores) 254.71 409.57 39.96 504.86 275.25 372.98

Ratio of Recurring Expenses to Average Assets 0.83% 0.86% 0.90% 0.89% 1.00% 1.00%

14


Kotak Liquid - Kotak Liquid - Kotak Kotak FloaterInstitutional Plan Institutional Liquid Short Term

Premium Plan SweepPlan

Mar '03 Apr '03 - Apr '04 - Nov '03 - Apr '04 - Aug'04 - Jul '03 - Apr '04 -Mar '04 Mar '05 Mar '04 Mar '05 Mar '05 Mar '04 Mar '05

Date of Allotment 12-Mar-03 12-Mar-03 12-Mar-03 4-Nov-03 4-Nov-03 3-Aug-04 14-Jul-03 14-Jul-03

Beginning of Year / Allotment Date 12-Mar-03 1-Apr-03 1-Apr-04 4-Nov-03 1-Apr-04 3-Aug-04 14-Jul-03 1-Apr-04


NAV at beginning of year / Allotment Date (Rs.) 12.05(G) ‡ 12.09(G) 12.71(G) / 12.48(G)‡ / 12.71(G) / 10.00(DD) 10.00 10.38(G) /10.01(D) ‡ 10.01(D) 10.02(WD) / 10.02(WD)‡ / 10.03(WD) / 10.00(WD) /

12.23(DD) 12.23(DD)‡ 12.23(DD) 10.02(MD)

Net Income per unit (Rs.) 0.02 1.05 0.60 0.15 0.56 0.14 0.09 0.36

Dividends (Rs. per unit) *$$ 0.01 0.43 (WD) / 0.10(WD) / 0.16 (WD) / 0.11(WD) / N.A 0.04 (WD) / 0.10(WD) /0.42 (DD) 0.13(DD) 0.20 (DD) 0.13(DD) 0.31 (MD) 0.10(MD)

Dividends (Rs. per unit) *†† 0.17(WD) / Nil 0.26 0.31(WD) /0.25(DD) 0.32(MD)

Dividends (Rs. per unit) * ^^ 0.28(WD) / 0.30(WD) / 0.20 0.29(WD) /0.35(DD) 0.36(DD) 0.30(MD)

Transfer to reserves (Rs. crores) 84.95 (38.33) (6.07) 281.69 80.23 0.52 6.93 24.91

Nav as on : At the end of the year / period (Rs.) 12.09 (G) / 12.71 (G) / 13.31 (G) / 12.71 (G) / 13.34 (G) / 10.01(DD) 10.38 (G) / 10.88 (G) /10.01 (D) 10.02 (WD) / 10.02 (WD) / 10.03 (WD) / 10.03 (WD) / 10.00 (WD) / 10.01 (WD) /

12.23 (DD) 12.23 (DD) 12.23 (DD) 12.23 (DD) 10.02 (MD) 10.03 (MD)

Annualised return** – 5.12 4.78 – 4.87 – – 4.90

Absolute return *** 0.31 – – 1.88 – 2.94 3.76 –

Net Assets at end of the year / period (Rs. crores) 535.51 416.22 268.84 1,812.21 2,291.77 16.47 337.76 958.83


Kotak 30 Kotak Balance Kotak Tech

Apr '02 - Apr '03 - Apr '04 - Apr '02 - Apr '03 - Apr '04 - Apr '02 - Apr '03 - Apr '04 -Mar '03 Mar '04 Mar '05 Mar '03 Mar '04 Mar '05 Mar '03 Mar '04 Mar '05

Date of Allotment 29-Dec-98 29-Dec-98 29-Dec-98 25-Nov-99 25-Nov-99 25-Nov-99 4-Apr-00 4-Apr-00 4-Apr-00

Beginning of Year / Allotment Date 1-Apr-02 1-Apr-03 1-Apr-04 1-Apr-02 1-Apr-03 1-Apr-04 1-Apr-02 1-Apr-03 1-Apr-04

End of Year / Last Date 31-Mar-03 31-Mar-04 31-Mar-05 31-Mar-03 31-Mar-04 31-Mar-05 31-Mar-03 31-Mar-04 31-Mar-05

NAV at beginning of year / 11.62 11.59 (G) § 25.19 (G) 9.84 10.10 13.15 3.06 2.85 3.97Allotment Date (Rs.) 11.59 (D) 17.01(D)

Net Income per unit (Rs.) 0.10 6.05 5.02 0.13 4.54 5.80 (0.20) 0.74 2.34

Dividends (Rs. per unit) *$$ Nil 7.00 1.50 Nil 2.75 0.50 Nil Nil Nil

Dividends (Rs. per unit) *†† Nil Nil Nil

Dividends (Rs. per unit) * ^^ Nil Nil Nil

Transfer to reserves (Rs. crores) 0.99 37.15 26.21 1.48 8.94 4.69 12.91 44.57 40.15

Nav as on : At the end of the year / 11.59 (G) § / 25.19 (G) / 32.12 (G) / 10.10 13.15 17.48 2.85 3.97 5.85period (Rs.) 11.59 (D) 17.01 (D) 19.90 (D)

Annualised return ** 11.20 24.73 27.52 2.66 13.33 37.15 (34.34) (20.65) 47.33

Absolute return *** – – – – – – – – –

Net Assets at end of the year /period (Rs crores) 39.30 125.81 154.38 30.67 37.52 30.33 46.00 48.07 49.80

Ratio of Recurring Expenses toAverage Assets 2.50% 2.50% 2.39% 2.44% 2.49% 2.50% 2.25% 2.25% 2.25%

15


Kotak Kotak Kotak KotakMNC Income Plus Global India Floater

LongTerm

Apr '02 - Apr '03 - Apr '04 - Dec '03 - Apr '04 - Jan '03 - Apr '04 - Aug'04 -Mar '03 Mar '04 Mar '05 Mar '04 Mar '05 Mar '04 Mar '05 Mar '05

Date of Allotment 4-Apr-00 4-Apr-00 4-Apr-00 2-Dec-03 2-Dec-03 30-Jan-04 30-Jan-04 13-Aug-04

Beginning of Year / Allotment Date 1-Apr-02 1-Apr-03 1-Apr-04 2-Dec-03 1-Apr-04 30-Jan-04 1-Apr-04 13-Aug-04


NAV at beginning of year / Allotment Date (Rs.) 8.00 7.00 14.24 10.00 10.25 (G) / 10.00 9.57 (G) 10 (G) /10.02 (MD) / 9.57 (D) 10 (MD) /

10.02 (QD) 10 (WD)

Net Income per unit (Rs.) (0.49) 4.35 7.63 0.11 0.61 (0.07) 5.37 0.23

Dividends (Rs. per unit) *$$ Nil Nil 4.50 0.20 (QD) / 0.05(MD) Nil 1.50 N.A0.20 (MD)

Dividends (Rs. per unit) *†† Nil 0.24(MD) / Nil 0.28(WD) /0.29(QD) 0.27(MD)

Dividends (Rs. per unit) * ^^ Nil 0.22(MD) / Nil 0.27(WD) /0.16(QD) 0.25(MD)

Transfer to reserves (Rs. crores) (2.66) 23.89 17.25 2.57 1.65 (13.51) 65.43 12.05

Nav as on : At the end of the year / period (Rs.) 7.00 14.24 15.99 10.25 (G) / 10.87 (G) / 9.57 (G) / 13.86 (G) / 10.33(G) /10.02 (MD) / 10.30 (MD) / 9.57 (D) 12.34 (D) 10.02(MD) /

10.02 (QD) 10.30 (QD) 10.01(WD)

Annualised return ** (11.23) 9.26 43.70 – 6.09 – 44.88 –

Absolute return *** – – – 3.56 – (4.35) – 3.34

Net Assets at end of the year / period (Rs. crores) 24.53 33.46 66.61 291.40 54.08 299.96 202.37 577.33


Kotak Kotak Kotak Kotak Kotak KotakOpportunities Equity Flexi Midcap FMP Dynamic

FOF Debt Series I FOF

Sep'04 - Aug'04- Dec'04- Feb '05 - Mar '05 - Mar '05 -Mar '05 Mar '05 Mar '05 Mar '05 Mar '05 Mar '05

Date of Allotment 9-Sep-04 9-Aug-04 6-Dec-04 24-Feb-05 31-Mar-05 31-Mar-05

Beginning of Year / Allotment Date 9-Sep-04 9-Aug-04 6-Dec-04 24-Feb-05 31-Mar-05 31-Mar-05


NAV at beginning of year / Allotment Date (Rs.) 10.00(G) 10.00(G) 10.00(G) 10.00(G) 10.00(G) 10.00(G)10.00(D) 10.00(D) 10.00(D) 10.00(D) 10.00(D)

Net Income per unit (Rs.) 3.39 5.23 0.20 0.11 0.01 0.01

Dividends (Rs. per unit) *$$ 0.75 N.A. N.A. Nil Nil N.A.

Dividends (Rs. per unit) *†† Nil Nil 0.16 Nil Nil N.A.

Dividends (Rs. per unit) * ^^ Nil Nil 0.15 Nil Nil N.A.

Transfer to reserves (Rs. crores) 10.77 30.61 0.55 5.80 0.28 0.05

Nav as on : At the end of the year / period (Rs.) 12.76 (G) / 13.17(G) / 10.21(G) / 10.10(G) / 10.01(G) / 10.00(G)12.02 (D) 13.17(D) 10.02(D) 10.10(D) 10.01(D)

Annualised return ** – – – – – –

Absolute return *** 27.64 31.70 2.05 (0.41) – –

Net Assets at end of the year / period (Rs. crores) 47.73 95.21 104.08 543.17 219.54 101.92

Ratio of Recurring Expenses to Average Assets 2.46% 0.74% 1.00% 2.19% 0.27% 0.75%

16


Latest NAV & Annualised ReturnsKotak Gilt Kotak Gilt Kotak Gilt Kotak Bond Kotak Bond -

Savings Plan Investment - Investment - Regular Plan DepositRegular Plan Provident (formerly Plan

Fund & Trust WholesalePlan Plan)

Date of allotment 29-Dec-98 29-Dec-98 11-Nov-03 25-Nov-99 25-Nov-99

Beginning of Year / Allotment date 01-Apr-05 01-Apr-05 01-Apr-05 01-Apr-05 01-Apr-05

End of Year / Last Date 27-Jan-06 27-Jan-06 27-Jan-06 27-Jan-06 27-Jan-06

NAV at beginning of year / Allotment date (Rs.) 16.39 (G) / 21.96 (G) / 22.07 (G) / 11.69 (B) / 16.98 (DG) /10.97 (AD) / 10.56 (D) 10.75 (D) 17.55 (G) / 10.75 (DD)10.45 (MD) 11.73 (AD) /

10.30 (QD)

Net Income per unit (Rs.) 0.32 0.49 0.89 0.70 0.61

Dividends (Rs. per unit) *† (Individuals) 0.37 (MD) Nil 0.32(D) 0.34 (QD) Nil

Dividends (Rs. per unit) *‡‡ (Others) 0.35 (MD) Nil 0.30(D) 0.32 (QD) Nil

Transfer to Reserves (Rs. Crores) @ @ @ @ @

NAV as on : At the end of the period (Rs.) 17.02 (G) / 22.44 (G) / 22.63 (G) / 12.13 (B) / 17.57 (DG) /11.38 (AD) / 10.80 (D) 10.66 (D) 18.20 (G) / 11.11 (DD)10.42 (MD) 12.16 (AD) /

10.29 (QD)

Annualised Returns**

27-Jan-2006 7.79 12.09 2.07 10.18 9.55

Absolute Return ***

27-Jan-2006 – – – – –

Benchmark Return

27-Jan-2006 – – 2.55 – –

Net Assets at end of the year / period (Rs. Crores) 31.25 102.27 14.04 38.31 14.91

Ratio of Recurring Expenses to Average Assets 1.00% 1.65% 1.25% 1.65% 2.25%

Kotak Bond Kotak Liquid Kotak Liquid - Kotak Liquid -Short Term Regular Plan Institutional Institutional

Plan Plan Premium Plan

Date of allotment 02-May-02 05-Oct-00 12-Mar-03 04-Nov-03Beginning of Year / Allotment date 01-Apr-05 01-Apr-05 01-Apr-05 01-Apr-05

End of Year / Last Date 27-Jan-06 27-Jan-06 27-Jan-06 27-Jan-06

NAV at beginning of year / Allotment date (Rs.) 11.93 (G) / 13.22 (G) / 13.31 (G) / 13.34 (G) /10.06 (D) 10.02(D) 12.23 (DD) / 12.23 (DD) /

10.02 (WD) 10.03 (WD)

Net Income per unit (Rs.) 0.41 0.51 0.87 0.62

Dividends (Rs. per unit) *† (Individuals) 0.40 (D) 0.35 (D) 0.48 (DD) / 0.49 (DD)0.39 (WD) 0.40 (WD)

Dividends (Rs. per unit) *‡‡ (Others) 0.37(D) 0.33 (D) 0.44 (DD) / 0.45 (DD) /0.36 (WD) 0.37 (WD)

Transfer to Reserves (Rs. Crores) @ @ @ @

NAV as on : At the end of 12.49 (G) / 13.76 (G) / 13.92 (G) / 13.96 (G) /the period (Rs.) 10.07 (D) 10.02 (D) 12.23 (DD) / 12.23 (DD) /

10.03 (WD) 10.03 (WD)


27-Jan-2006 6.12 6.19 5.11 5.15

Absolute Return ***

27-Jan-2006 – – – –

Benchmark Return

27-Jan-2006 5.14 – 4.40 4.35

Net Assets at end of the year / period (Rs. Crores) 254.35 421.48 266.38 2113.27

Ratio of Recurring Expenses to Average Assets 0.90% 1.00% 0.55% 0.40%

17


Kotak Floater Kotak Global Kotak 30 Kotak Kotak Kotak KotakShort Term India Balance Technology MNC Income

Plus

Date of allotment 14-Jul-03 30-Jan-04 29-Dec-98 25-Nov-99 04-Apr-00 04-Apr-00 02-Dec-03Beginning of Year / Allotment date 01-Apr-05 01-Apr-05 01-Apr-05 01-Apr-05 01-Apr-05 01-Apr-05 01-Apr-05End of Year / Last Date 27-Jan-06 27-Jan-06 27-Jan-06 27-Jan-06 27-Jan-06 27-Jan-06 27-Jan-06NAV at beginning of year / 10.88 (G) / 13.86 (G) / 32.12 (G) / 17.48 5.85 15.99 10.87 (G) /Allotment date (Rs.) 10.01 (WD) / 12.34 (D) 19.90 (D) 10.30 (MD) /

10.03 (MD) 10.30 (QD)Net Income per unit (Rs.) 1.02 8.80 13.06 7.04 2.17 10.46 0.96Dividends (Rs. per unit) (Common) – – 2.00 (D) 1.75 – –Dividends (Rs. per unit) *$$ (Individuals) 0.39 (WD) / – – – – – 0.51 (MD) /

0.40 (MD) 0.46 (QD)Dividends (Rs. per unit) *†† (Others) 0.36 (WD) / – – – – – 0.47 (MD) /

0.37 (MD) 0.43 (QD)Transfer to Reserves (Rs. Crores) @ @ @ @ @ @ @NAV as on : At the end of 11.38 (G) / 21.49 (G) / 51.29 (G) / 23.37 7.85 25.08 12.22 (G) /the period (Rs.) 10.01 (WD /) 19.14 (D) 29.11 (D) 10.97 (MD) /

10.02 (MD) 11.03 (QD)Annualised Returns**27-Jan-2006 5.23 46.76 31.46 22.21 -4.07 22.19 9.73Absolute return ***27-Jan-2006 – – – – – – –Benchmark Return27-Jan-2006 4.33 31.74 18.05 – -4.53 13.64 6.95Benchmark Return (S&P CNX Nifty)27-Jan-2006 – – 22.81 – – 18.00 –Net Assets at end of the year/period (Rs. Crores) 490.78 169.17 285.26 79.26 52.90 65.90 81.54Ratio of Recurring Expenses to Average Assets 0.72% 2.30% 2.37% 2.50% 2.25% 2.50% 2.18%

Kotak Midcap Kotak Kotak Kotak KotakDynamic FOF Equity FOF Flexi Debt Contra

Date of allotment 24-Feb-2005 31-Mar-2005 09-Aug-04 06-Dec-04 27-Jul-05

Beginning of Year/ Allotment date 01-Apr-2005 01-Apr-2005 01-Apr-2005 01-Apr-2005 27-July-05

End of Year / Last Date 27-Jan-06 27-jan-06 27-Jan-06 27-Jan-06 27-Jan-06

NAV at beginning of year/ Allotment date (Rs.) 10.10 (G) 10.00 (G) 13.17 (G) 10.21 (G) 10.00 (G) /10.10 (D) 10.00 (D) 13.17 (D) 10.02 (QD) 10.00 (D)

Net Income per unit (Rs.) 8.61 6.44 8.97 0.65 3.42

Dividends (Rs. per unit) (Common) 0.50 (D) – – – –

Dividends (Rs. per unit) *† (Individuals) – – – 0.37 (D) –

Dividends (Rs. per unit) *‡‡ (Others) – – – 0.34 (D) –

Transfer to Reserves (Rs. Crores) @ @ @ @ @

NAV as on : At the end of the period (Rs.) 16.36 (G) / 14.65 (G) 20.12 (G) / 10.70 (G) / 12.40 (G) /15.74 (D) 20.12 (D) 10.08 (QD) 12.40 (D)


27-Jan-2006 – – 60.99 6.08 –

Absolute return ***

27-Jan-2006 61.35 46.50 – – 19.81

Benchmark Return

27-Jan-2006 36.64 27.77 75.18 4.87 27.63

Benchmark Return (S&P CNX Nifty)

27-Jan-2006 – – – – –

Net Assets at end of the year/period (Rs. Crores) 336.87 73.18 85.61 145.56 396.43

Ratio of Recurring Expenses to Average Assets 2.25% 0.75% 0.73% 0.96% 2.19%

18


Kotak Kotak Kotak Floater Kotak KotakFMP Liquid Sweep Long Term Opportunities Cash Plus

Series I Plan Scheme Scheme

Date of allotment 31-Mar-05 03-Aug-05 13-Aug-05 09-Sep-05 29-Sep-05Beginning of Year/ Allotment date 01-Apr-05 01-Apr-05 01-Apr-05 01-Apr-05 29-Sep-05End of Year / Last Date 27-Jan-06 27-Jan-06 27-Jan-06 27-Jan-06 27-Jan-06NAV at beginning of year/ Allotment date (Rs.) 10.01(G) 10.01 (DD) 10.33 (G)/ 12.76 (G)/ 10.00 (G)

10.01 (D) 10.01 (WD)/ 12.02 (D) 10.00 (D)10.02 (MD)

Net Income per unit (Rs.) 0.48 0.27 1.12 6.69 0.28Dividends (Rs. per unit) (Common) – – – 1 (D) 0.16 (D)Dividends (Rs. per unit) *† (Individuals) – 0.37 (DD) 0.38 (WD) / – 0.15 (D)

0.39 (MD)Dividends (Rs. per unit) *‡‡ (Others) – 0.35 (DD) 0.35 (WD) / – –

0.37 (MD)Transfer to Reserves (Rs. Crores) @ @ @ @ @NAV as on: At the end of the period (Rs.) 10.49 (G) / 10.01 (DD) 10.80 (G) / 21.93 (G) / 10.21 (G) /

10.49 (D) 10.02 (WD) / 19.43 (D) 10.02 (D)10.02 (MD)

Annualised Returns**27-Jan-2006 – 6.44 5.42 76.41 –Absolute return ***27-Jan-2006 4.81 – – – 1.95Benchmark Return27-Jan-2006 3.91 – 4.56 56.02 1.54Net Assets at end of the year/period (Rs. Crores) 229.93 101.21 180.51 135.97 271.07Ratio of Recurring Expenses to Average Assets 0.26% 0.75% 0.77% 2.47% 1.00%

Kotak Kotak Kotak Kotak KotakFlexi FOF ELSS FMP Series XII FMP Series XIV FMP Series XV

Date of allotment 20-Oct-05 23-Nov-05 30-Nov-05 19-Jan-06 13-Jan-06Beginning of Year/ Allotment date 20-Oct-05 23-Nov-05 30-Nov-05 19-Jan-06 13-Jan-06End of Year / Last Date 27-Jan-06 27-Jan-06 27-Jan-06 27-Jan-06 27-Jan-06NAV at beginning of year/ Allotment date (Rs.) 10.00 (G) 10.00 (G) / 10.00 (G) / 10.00 (G) / 10.00 (G) /

10.00 (D) 10.00 (D) 10.00 (D) 10.00 (D) 10.00 (D)Net Income per unit (Rs.) 1.74 1.49 0.10 0.01 0.03Dividends (Rs. per unit) *† (Individuals) – – – – –Dividends (Rs. per unit) *‡‡ (Others) – – – – –Transfer to Reserves (Rs. Crores) @ @ @ @ @NAV as on: At the end of the period (Rs.) 11.67 (G) / 11.41 (G) / 10.10 (G) / 10.01 (G) / 10.03 (G) /

11.67 (D) 11.41 (D) 10.10 (D) 10.01 (D) 10.03 (D)Annualised Returns**27-Jan-2006 – – – – –Absolute return ***27-Jan-2006 16.49 13.79 0.94 0.14 0.24Benchmark Return27-Jan-2006 14.40 14.72 0.81 0.13 0.22Net Assets at end of the year/period (Rs. Crores) 371.74 107.51 301.19 183.94 223.77Ratio of Recurring Expenses to Average Assets 0.74% 2.41% 0.20% 1.00% 0.35%

Notes:

G stands for Growth Option, D stands for Dividend Option,MD stands for Monthly Dividend Option, QD stands forQuarterly Dividend Option, WD stands for Weekly DividendOption, DD stands for Daily Dividend Option, AD stands forAnnual Dividend Option B stands for Bonus Option.

* Applicable to the dividend option in case of Schemes,which have Growth and Dividend Options.

** Annualised Return (Compounded Annualised Growth

Rate) is calculated from the date of allotment of theUnits till the end of the period mentioned against it. Forthe last period in respect of the Scheme/Plan concerned,the annualised return is computed from the date ofallotment till March 31, 2005 and January 27, 2006respectively. In case of returns available for periods lessthan one year for the first accounting year, such returnshave been expressed in absolute terms only.

*** Absolute Return is calculated from the date of allotmentof the Units till the end of the period mentioned against

19


it for the Scheme where such period is less than one year.In case of Scheme / Plan launched after January 27,2006, the absolute return is also calculated from thedate of allotment till March 31, 2005 and January 27,2006 respectively. Annualised returns are computed forthe Growth Option of the Scheme. The Growth Optionis not available then the same has been computedassuming the declared dividend is re-invested on thenext available NAV.

~ Benchmarks (as developed by AMFI): Kotak Gilt Savings:I SEC SI-BEX, Kotak Gilt Investment- Regular and ProvidentFund and Trust Plans: I SEC COMPOSITE INDEX, KotakBond - Regular, Deposit Plans, Kotak Flexi Debt: CRISILCOMPOSITE BOND FUND INDEX, Kotak Bond Short Term:CRISIL SHORT TERM BOND FUND INDEX, Kotak Liquid,Kotak Liquid Institutional Plan, Kotak Liquid InstitutionalPremium Plan, Kotak Liquid Sweep Plan, Kotak MahindraFixed Maturity Plans, Kotak FMP (8), Kotak Floater ShortTerm Scheme, Kotak Floater Long Term Scheme, KotakCash Plus - CRISIL LIQUID FUND INDEX, Kotak Balance- CRISIL BALANCED FUND INDEX, Kotak Income Plus -CRISIL MIP Blended Index. Benchmark returns (asdeveloped by AMFI) for schemes except Kotak BondShort Term, Kotak Gilt Investment- Provident Fund andTrust Plan, Kotak Liquid Institutional Plan, Kotak LiquidInstitutional Premium Plan, Kotak Mahindra Fixed MaturityPlans, Kotak FMP (8), Kotak Floater Short Term Scheme,and Kotak Income Plus are not shown due tononavailability of the data.

Benchmarks (as per Offer Document) used are: Kotak 30and Kotak MNC - BSE SENSITIVE INDEX and S & P CNXNIFTY; Kotak Dynamic FOF - Crisil Balanced Fund Index;Kotak Global India - BSE SENSITIVE INDEX; Kotak Tech- BSE IT INDEX; Kotak Opportunities and Kotak Contra- S&P CNX 500 Equity Index; Kotak Equity FOF: S&P CNXNifty

# These figures are less than 0.01.

~~ No units outstanding as at the beginning/end of theyear/period.

‡ NAV at which Units were first allotted under the respectiveoptions.

¥ Reserves of Kotak Bond Regular Plan - Bonus optionadjusted for bonus of 1 Unit issued for every 2 units heldas on the record date January 09, 2003.

@ transfer to reserves will be done at the end of the year

$$ applicable for the period between record date April 01,2004 and July 20, 2004.

†† applicable for the period between record date July 21,2004 and March 31, 2005 for Individual / HUF unitholders.

^^ applicable for the period between record date July 21,2004 and March 31, 2005 for Other unit holders.

§ Growth Option introduced under Kotak 30, effectiveFebruary 03, 2003.

† applicable to current period indicates Dividend paid fromrecord date April 01, 2005 to January 27, 2006 forIndividual / HUF unit holders.

‡‡ applicable to current period indicates Dividend paid fromrecord date April 01, 2005 to January 27, 2006 for otherunit holders.

5. Borrowing by the Mutual FundNo borrowing was made by any of the Schemes of KMMFtill the year ended March 31, 2005 and period ended January31, 2006.

6. Key Personnel of AMCMr. Sandesh KirkireMr. Sandesh Kirkire, 42, is a Mechanical Engineer and holdsa Masters degree in Management Studies from Jamnalal BajajInstitute of Management Studies, Mumbai University. Mr.Kirkire has over 15 years of experience in the areas CorporateFinance and Treasury management among others. His priorassignments were with SBI Capital Markets Ltd and ITCBhadrachalam Finance & Investments Ltd. After joining theKotak Mahindra group in 1994, Mr. Kirkire has worked inseveral capacities across the group, in the fields of InvestmentBanking, Treasury and Sales and Trading in debt markets. Mr.Kirkire’s latest assignment was as Chief Investment Officer(Debt) overseeing the investment management function ofthe Fund in Fixed Income Securities.

Mr. Kirkire is Chief Executive Officer of the AMC.

Mr. Nilesh ShahMr. Nilesh Shah, 36, is a CFA and holds a PGDRM from theInstitute of Rural Management, Anand (IRMA). He has over13 years of experience and achievement in financial services.Following his post graduation from IRMA in 1992, Mr. Shahjoined Gruh Finance Ltd., working in their Corporate Financedivision for 2 years before joining the Kotak Group. In theKotak Group, he handled assignments in the CorporateFinance and Capital Markets division before moving intoequities. Prior to joining the AMC, Mr. Shah was ExecutiveDirector, Equity Strategy, at Kotak Securities Ltd.

Mr. Shah is President of the AMC, and guides its equitystrategy, among other responsibilities.

Mr. R. KrishnanMr. R. Krishnan, 37, is a Chartered Accountant and CostAccountant with over 11 years of experience in the fields ofOperations, Systems, Finance, MIS, Accounting, Audit andTaxation. Prior to joining the Kotak Group in August 1994,Mr. Krishnan was a practicing Chartered Accountant for twoyears, handling Accounting, Audit and Taxation matters forclients. Since joining the Kotak Group, Mr. Krishnan hashandled major assignments like the US GAAP implementationfor the erstwhile Kotak Mahindra Finance Limited (KMFL) andsubsidiary/group companies, Systems Development andImplementation, for the Retail Assets Group and KMFL’stransition to Kotak Bank. Mr. Krishnan’s latest assignmentwas as Head - Operations, Retail Assets, at Kotak Bank, fromwhere he joined Kotak Mutual in August 2004 as Senior VicePresident.

Mr. Krishnan is Chief Operations Officer, and oversees theOperations, Accounting and IT functions of the Fund.

Mr. Nitin JainMr. Nitin Jain, 34, who earned a Masters degree inManagement Studies after doing Mechanical Engineering,

20


joined the Kotak Mahindra Asset Management Co. Ltd. inDecember 2005. Mr. Jain started his career in the year 1995with Nucleus Securities Ltd., where he worked as an EquityAnalyst. After his short stint at Nucleus Securities Ltd., hemoved on to OFL Securities and pursued the same vocationfor 4 years. With his next move to Infinity.com, Mr. Jain gotinvolved in the equity dealing function and continued withthe same profession in his next stint at Fortis Securities Ltd.and IDBI Capital Market Services Ltd. Prior to joining KotakAMC, he was a Fund Manager-Equity, at SBI FundsManagement Private Ltd.

Mr. Jain has nearly 11 years of experience in the field offinancial services.

Mr. Jain is an Equity Fund Manager of the AMC.

Mr. Anand Shah

Mr. Anand Shah, 30, holds a B.E. (Electronics) degree fromREC, Surat, and a Post Graduate Diploma in BusinessManagement from IIM, Lucknow. Mr. Shah has a total of 7years of work experience. During the period 1996-1998,prior to his post-graduation, Mr. Shah worked with KirolskarOil Engines Ltd., Pune, as Senior Engineer, where he superviseda 16-member team, and was responsible for electrical andelectronics maintenance. Following completion of his post-graduation in 2000, Mr. Shah joined the Equity FundManagement team.

Mr. Shah is an Equity Fund Manager of the AMC.

Ms. Lakshmi Iyer

Ms. Lakshmi V. Iyer, 28, is a graduate in Commerce fromMumbai University, and holds a Diploma in BusinessManagement. Ms. Iyer has a total work experience of 6 yearsin the securities markets. Prior to joining the Kotak Mahindragroup, she worked at Credence Analytics, handling debtresearch and financial software development. In 1999, Ms.Iyer joined the AMC’s Fund Management team.

Ms. Iyer is a Debt Fund Manager of the AMC.

Mr. Ritesh Jain

Mr. Ritesh Jain, 29, is a graduate in Commerce from DelhiUniversity, and holds a post-graduation in Business Economicsfrom Indore University and a Diploma in Capital Markets fromI.C.F.A.I. Mr. Jain has 7 years of experience. Having begun hiscareer in foreign exchange banking at Corporation Bank, hethen moved to IDBI Bank Ltd., where he managed moneymarket treasury (trading and ALM management). Prior tojoining the Kotak Mahindra group, he also worked briefly atRanbaxy Laboratories Ltd., managing US$ 500 Million offoreign exchange treasury. Mr. Jain joined the AMC in 2003as part of the Fund Management team.

Mr. Jain is a Debt Fund Manager of the AMC.

Mr. Sajit Pisharodi

Mr. Sajit Pisharodi, who holds a Masters degree in BusinessAdministration, joined the AMC in February, 2004. Prior tothat, Mr. Pisharodi was involved in the equity dealing functionat SBI Funds Management Pvt. Ltd. He started his career withStock Holding Corporation of India Ltd., where he was involvedin objections clearance in the custodial services division andmoved on to IDBI Capital Markets Pvt. Ltd., where he was part

of the broking arm, and involved in equity sales and dealing.Mr. Pisharodi, at 34, has nearly 11 years of experience in thefield of financial services.

Mr. Pisharodi is an Equity Fund Manager of the AMC.

Mr. Sandeep Kamath

Mr. Sandeep Kamath, 28 years, is a graduate in Commercefrom Mumbai University and a Bachelor of General Law. Hehas an experience of almost 5 years in the field of Compliance.Prior to joining Kotak AMC in 2004, Mr. Kamath worked withPrincipal Mutual Fund, in the compliance department.

Mr. Kamath is the Compliance Officer for the AMC.

FUND MANAGERMr. Sajit Pisharodi will be the Fund Manager for the Scheme.

The Chief Executive Officer, the President and the FundManagement and Research Team of the Fund are based onthe registered office of the AMC on 5th Floor, Bakhtawar,Nariman Point, Mumbai – 400 021. The Chief OperationsOfficer and the Compliance Officer are based at 91/92, 9thFloor, Sakhar Bhawan, 230, Nariman Point, Mumbai – 400021.

Other members of the Fund Management / Research Teamare:

Mr. Deepak AgrawalA post-graduate in commerce, Mr. Deepak Agrawal, 25, is aqualified chartered accountant and company secretary. Hestarted his career with the AMC in September 2000, and hasbeen with the AMC since then.

Mr. Agrawal is the Dealer in the debt fund managementteam.

Mr. Manish K. LodhaMr. Manish Lodha, 29, is a Chartered Accountantand Company Secretary, with 5 years of experience in thefield of Financial Planning & Analysis, Investment Monitoringand Credit Research. Mr. Lodha began his career in 2000 inFinance function with BOC India Ltd, at their JamshedpurUnit, and later moved to Corporate Finance in Head Officeof the company. In 2004, he moved to UTI Bank,a leading new generation private sector bank in India. Priorto joining the Kotak Mahindra Group, Mr. Lodha spent 1 yearat UTI Bank where he was a part of investments monitoringteam and at the same time was involved in a number ofproject / credit appraisals. In 2005, Mr. Lodha joined KotakMahindra AMC as a Credit Analyst, and is a part of the FundManagement and Research team.

Mr. Pushpinder Singh

Mr. Pushpinder Singh, 32, holds a B. Tech. (Chemical) fromPTU, Jallandhar and an MBA from the College of MaterialsManagement (CMM), FMS, Jabalpur along with a diploma inElectronics and Communications Engineering. Prior to forayinginto equity markets, where he has had 4 years of experience,he worked as a trainee with BPCL, and customer supportengineer with Network Ltd. Mr. Singh moved into financialservices in June 2000, joining Asit C. Mehta InvestmentIntermediaries Ltd. as an equity analyst tracking the Telecomand Oil&Gas industries. From there, he joined Refco-SifySecurities (P) Ltd. in August 2001, analysing the Oil&Gas and

21


Petrochemical industries, and, later, the power sector. Mr.Singh joined the AMC in October 2004, as a part of the equityfund management team, and is responsible for evaluatinginvestment opportunities in equities.

Mr. Singh is the Equity Analyst of the AMC.

Mr. Anurag Jain

Mr. Anurag Jain, aged 28, is a Chemical Engineer from DCET,Punjab University, Chandigarh, post which he did his PostGraduate Diploma in Management from IIM Kolkatta. Anuragstarted his career with SBI Fund Management Pvt Ltd. andworked there as a senior manager in equity research team.Prior to taking up equity research at SSKI Institutional Securities,Anurag was managing corporate banking at ICICI Bank. Hejoined Kotak AMC in August 2005, as a part of the equityfund management team, and is responsible for evaluatinginvestment opportunities in equities. He comes with anexperience of 4 years in the equity markets.

Mr. Praveen Ayathan

Mr. Praveen Ayathan, 37, who is a Bachelors of Science inMathematics, joined the Kotak Mahindra Asset ManagementCo. Ltd. in September 2005. Mr. Ayathan started his careerwith Urja Investment Ltd., where he was involved in the retaildealing function and then moved on as a dealer- InstitutionalEquity to Pratinhuti Viniyog Ltd. Prior to joining Kotak AMC;he was heading the Institutional team- equity, at Dalal &Broacha Stock Broking Pvt. Ltd. Mr. Ayathan, has nearly 11years of experience in the field of financial services.

Mr. Ayathan is the Dealer in the equity fund managementteam.

Compliance Officer

Mr. Sandeep KamathKotak Mahindra Asset Management Company Limited91/92, 9th Floor, Sakhar Bhawan,230, Nariman Point, Mumbai 400 021

Auditors to the SchemePrice Waterhouse252, V. Savarkar Marg,Shivaji Park, Dadar,Mumbai 400 025

E. THE REGISTRARThe Mutual Fund has appointed Computer Age ManagementServices Private Limited (‘CAMS’) to act as Registrar andTransfer Agent (‘the Registrar’) to the Scheme. Registeredwith SEBI under Registration No. INR000002813, CAMS hasbeen performing the functions of Registrar for all the Schemesof the Fund and the Trustee and the AMC have satisfiedthemselves that CAMS can provide the services required andhas adequate facilities, including systems capabilities andback up, to do so. As Registrar to the Scheme, CAMS acceptsand processes investors’ applications and advises the MutualFund in respect of the amounts received/disbursed forsubscription/purchase/redemption. They also handle

communications with investors, perform data entry servicesand dispatch Account Statements to Unitholders.

CAMS is responsible for carrying out diligently the functionsof Registrar and Transfer Agent, as set out in the agreemententered into with them and as per any modification madethereto from time to time.

The AMC has the right to appoint additional Registrars orchange the Registrar, if it deems fit.

F. THE CUSTODIANSThe Trustee has appointed Deutsche Bank A G, Mumbai andStandard Chartered Bank , as the Custodians (the Custodians)for the Scheme. The Custodians are approved by SEBI underregistration nos. IN/CUS/003 and IN/CUS/006, respectively.

A Custodian keeps in safe custody all the securities and othersuch instruments belonging to the Fund, ensures smoothinflow/outflow of securities and such other instruments asand when necessary in the best interest of the investors; andensures that the benefits due to the holdings are recovered.

A Custodian charges the Mutual Fund fees in accordancewith the terms of the custodian agreement:l for all purchase transactions, including direct purchases

and rights/new issue applications.l for all sale transactions, including direct sale and rights

renunciation/sale.l for Corporate Actions, MIS, Monitoring, Annual Reports

etc.l for Custody of all assets held by them.

In addition, out-of-pocket expenses incurred by a Custodianmay also be charged to the Mutual Fund.

The Trustee has the right to appoint additional Custodian(s)or change the Custodian(s), if it deems fit.

To perform custodial services for securities of the Fund, aCustodian is bound to exercise the same degree of care asit exercises in respect of its own property. It is obligatory fora Custodian to ensure that all the services rendered to KMMFare professional, prompt, cost effective and efficient in nature.A Custodian agreement, which, inter-alia, sets out theresponsibilities and functions of the Custodian, has beenentered into with each of the Custodians.

G. BANKERSThe Bankers to the New Fund Offer will be as under:

Name of Kotak Mahindra HDFC Bankthe Bank Bank Limited Limited

SEBI Registration No. INBI00000927 INBI00000063

Applications for the New Fund Offer will be accepted at thedesignated collection centres of these Banks, as mentionedelsewhere in this Offer Document.

The AMC has the right to appoint additional Bankers to theNew Fund Offer and change the Banker or any of the Bankersappointed subsequently, if it deems fit.

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A. KOTAK FLEXI FUND OF FUNDS – SERIES I1. Type of SchemeA Close-Ended Fund of Funds Scheme(Investments in Diversified Equity Schemes / Plans and Liquid /Short Term / Floating Rate Schemes / Plans)

2. Investment OptionThe Scheme will be available under the Growth option andDividend Reinvestment Option.

Growth OptionUnder this option, there will be no distribution of income andthe return to investors will be only by way of capital gains,if any, through redemption at Applicable NAV of Units heldby them.

Dividend Reinvestment OptionUnder this option, the Trustee may decide to distribute byway of dividend, the surplus by way of realised profit andinterest, net of losses, expenses and taxes, if any, to Unitholdersin the Dividend Option, if, in the opinion of the Trustee, suchsurplus is available and adequate for distribution. Such dividendis proposed to be declared before the Maturity Date of theScheme. The Trustee’s decision with regard to such availabilityand adequacy of surplus, rate, timing and frequency ofdistribution shall be final. Only those Unitholders whosenames appear on the register of Unitholders of the Scheme/Option at the close of the business hours on the record date,will be eligible for dividend, which will be announced inadvance. The dividend amount will not be paid out, but willbe reinvested in the dividend option. Dividend amounts willbe reinvested in the Scheme at the Applicable NAV announcedimmediately after the record date.

3. Investment ObjectiveThe investment objective of the scheme is to provide long-term capital appreciation by investing in a portfolio ofdiversified equity schemes/plans and liquid/ short term/ floatingrate schemes /plans of mutual funds registered with SEBI.

Benchmark : The Scheme proposes to invest in a combinationof equity and liquid/ short term/ floating rate schemes /plans;hence the performance of the Scheme will be benchmarkedagainst Crisil Balanced Fund Index.

Portfolio TurnoverThe Scheme has no specific target relating to portfolio turnover.However, the Fund Manager may change the asset allocationsamong the underlying equity and liquid/ short term/ floatingrate schemes /plans, to remain consistent with the investmentobjective and investment strategy of the Scheme.

Portfolio turnover will exclude:

l The turnover caused on account of investing the initialcorpus;

l The turnover caused on account of investing in moneymarket securities; and

l The turnover caused on account of redemptions byUnitholders.

Turnover means simple average of the aggregate of purchasesand sales net of the above exclusions. These purchases andsales invite transaction costs viz. Securities Transaction Tax,custodian transaction charges etc.

There is no assurance that the investment objective of theScheme will be realised.

4. Investment StrategyThe Scheme will invest predominantly in open-endeddiversified equity schemes and/or liquid/ short term/ floatingrate schemes /plans of Mutual Funds, which are registeredwith SEBI. The scheme will allocate investments dynamicallybetween equity schemes and liquid/ short term/ floating rateschemes /plans as per the recommended list provided by theappointed Advisor.

Equity Allocation: The Fund Manager will normally invest20% to 25% of scheme’s equity allocation in a maximum oftwo equity scheme(s) of KMMF subject to SEBI regulations.The equity schemes of KMMF shall not be considered by theDesignated Agency for research and subsequent issue ofrecommended list.

Liquid / Short Term / Floating Rate Plans or SchemesThe scheme may invest the entire non-equity allocation inliquid / short term / floating rate plans / schemes of KMMF.

The Fund Manager may in exceptional circumstances (as perhis opinion) not invest as per the recommended list. The FundManager also reserves the right to invest on basis of in-houseresearch in such circumstances where the recommended listis not received from the Advisor.

The AMC shall appoint an Advisor to provide periodically therecommended list of diversified equity schemes, and liquid/short term/ floating rate schemes /plans. The Advisor maycharge fees in accordance with the terms of the agreemententered into with it, which shall be borne by the AMC. Theportfolio will be reviewed and rebalanced on the receipt ofthe recommended list from the Advisor, within10 workingdays

Currently, the AMC has appointed Kotak Securities Limited(Kotak Securities) as an Advisor to provide the recommendedlist. Kotak Securities established in 1994, is one of the largeststock broking houses in the country and a leading distributorof primary market offerings. It is a joint venture betweenKotak Mahindra Bank and Goldman Sachs, the internationalinvestment banking and brokerage firm. It is a subsidiary ofKotak Bank.

Kotak Securities has the business in the areas of InstitutionalStock Broking, Private Client Services, Client MoneyManagement, and Retail distribution, Depository Services.Private Client Services is a special investment division for highnetworth individuals, non-resident Indian investors, trusts,corporates and banks. Client Money Management divisionprovides portfolio management services to high net-worthindividuals and corporates. The expertise of Kotak Securitiesin research and stock broking gives it the right perspective toprovide investment advisory services. Kotak Securities is one

I V . I N V E S T M E N T O F T H E F U N D

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of the largest Portfolio Management Service (PMS) providerin the country. Under the PMS, Kotak Securities is currentlymanaging the corpus of more than Rs.2200 cr. Kotak Securitiesconducts extensive research for its Wealth Managementcustomers.

The AMC has the right to designate an additional Agency forobtaining the recommended list. The AMC may also changethe Advisor, if it deems fit.

The Research Methodology to be adopted by the Advisor forproviding the recommended list shall be reviewed by theboard of Directors of AMC and Trustees. The Boards of AMCand Trustees shall also review any change in the researchmethodology.

Kotak Securities will identify a universe of diversified equityschemes. This list will consist of schemes whose averageAUMs are higher than a pre defined limit. These schemes willbe analysed for making a recommended list.

Broadly, the following two parameters will be used todetermine the universe of diversified equity schemes andanalyse them.

a) Investment Style:Broadly, any equity scheme can be classified, as eitherdiversified or concentrated (eg., theme based, sector schemeetc.).

The diversified equity scheme is defined as a scheme, whichinvests or can invest (as per the Offer Document) acrosssectors. The Scheme proposes to invest its equity allocationin only diversified equity schemes.

b) Performance Analysis:This parameter is used for analysing such diversified equityschemes.

Performance Analysis of a scheme can be done in many ways.One way is comparing returns of schemes across differenttime frames. Another method would be to analyse the degreeof risks taken by different schemes to produce returns. Thisis essentially a return risk analysis.

The “Risk Return Analysis” method has been adopted inregards to this scheme.

Returns of a scheme are computed for a fixed time period.Say, weekly returns are computed over a one-year period. Allof these returns are then compared against a benchmark. Inour case, the benchmark is usually the market expectation ofreturns from equity investments arrived at by polling clients.Out performance or under performance of these returns overa benchmark and the frequency of this out / under performanceis calculated. This exercise is carried out for all the schemesin contention.

Risk is computed based on the degree of underperformanceof a scheme to a benchmark and frequency of all its underperformance compared to the benchmark.

This return to risk ratio gives the excess returns potential ofa particular scheme vis-à-vis a benchmark and can be usedas a measure of performance consistency. This analysis iscarried out for all schemes in contention.

The Advisor will recommend the schemes and allocateinvestments across categories of schemes, based on its outlook

On the underlying portfolio of such schemes. Advisor’srecommendations will also be guided by the service standards,Load structure, overall corpus size etc.

The Scheme may invest in liquid/ short term/ floating rateschemes / plans of the Mutual Fund, whose equity schemeis recommended based on the above Methodology.

Pending deployment of the Funds of the Scheme in accordancewith the Investment Objective, the Scheme may invest inshort term deposits of Scheduled Commercial Banks, subjectto the regulations.

5. The Risk Profile and Investment PatternThe asset allocation under the Scheme, under normalcircumstances, will be as follows:

Investments Indicative RiskProfile Allocation*

Diversified Equity 0% to 90% MediumSchemes / Plans to High

Liquid/ Short Term / 10% to 100% LowFloating RateSchemes / Plans

Money Market 0% to 10% LowSecurities**

* The asset allocation between equity and liquid / shortterm / floating rate schemes / plans will be guided bytrends in equity markets. If the equity market goes up,the scheme will normally increase its portfolio allocationto equity schemes. However, keeping in mind the needto minimise risk on the investment and outstandingmaturity of the scheme, there might be times when thescheme may not increase investment in equity schemesin an equity market, which is moving up. If the equitymarket goes down, the scheme will normally decreaseits portfolio allocation to equity schemes.

** The Fund Manager will invest in Money Market Securities,as per the prevailing Regulation from time to time, onlyfor the purpose of liquidity requirements.

B. POLICIES AND REGULATIONS APPLICABLE TOTHE SCHEME

1. Fundamental Attributes and Changes ThereinThe following constitute the fundamental attributes of theScheme

l The close-ended character and type of the Scheme,

l The investment objective, investment pattern andinvestment strategy as stated in this Offer Document

l Terms of issue of the Scheme restricted to liquidityprovisions and aggregate fees and expenses to be charged

In accordance with Regulation 18(15A), the Trustee shallensure that there are no changes carried out in thefundamental attributes of the Scheme or the trust or fees andexpenses payable or any other change, which would modifythe Scheme and affect the interest of Unitholders, unless:

(i) a written communication about the proposed change issent to each Unitholder and an advertisement is givenin one English daily newspaper having nationwide

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circulation as well as in a newspaper published in thelanguage of the region where the Head Office of theFund is situated and;

(ii) the Unitholders are given an option to exit at the prevailingNet Asset Value without any Exit Load.

The exercise of rights reserved by the Trustee under this OfferDocument vis-à-vis prospective investments in the Schemeshall not constitute change in the fundamental attributes ofthe Scheme (refer paragraph ‘B. Power To Remove Difficulties’,mentioned elsewhere in this Offer Document).

2. Investment of Subscription MoneyOn receiving the minimum subscription amount for theScheme during the New Fund Offer, the Fund may commenceinvestment in Kotak Mahindra Liquid Scheme and KotakFloater Short Term Scheme. On allotment of Units the incomeearned out of such investments will be merged into theinvestments of the Scheme.

3. Borrowing PowerTo meet the temporary liquidity needs of the Scheme for thepurpose of repurchase, redemption or payment of income toUnitholders, the Scheme may borrow upto 20% of its netassets for a period of upto six months or as may be permittedby the pertinent Rules and Regulations. The Fund may tie upwith various banks/institutions for the above-mentioned facility.The Scheme may bear the interest charged on borrowings.

4. DepositoryThe securities will be held in form of account statements orUnit Certificates. Investments in inter bank call and short-term fixed deposits will be held in form of receipts.

5. Policy on Inter-Scheme TransfersInvestments made in the underlying schemes by the Schemeshall not be transferred to any other scheme.

In case of any amendment in the Regulations, transfer ofInvestments from one scheme to another scheme, present orto be floated in future, may also be made, subject to theapplicable Regulations at the time of transfer, at the discretionof the Fund Manager.

6. Mode of InvestmentThe Investment Manager will invest, in units of underlyingschemes on an ongoing basis. The investments will be inconformity with the pertinent rules and regulations, applicableat the time of making the investment.

7. Investment in DerivativesThe Fund shall not use derivative instruments in the Scheme.

8. Investments by the AMC in the FundThe AMC reserves the right to invest its own funds in thescheme as may be decided by the AMC from time to timeand in accordance with SEBI circular no. SEBI/IMD/CIR No. 10/22701/03 dated December 12, 2003 regarding minimum No.of investors in the Scheme Plan. Under the Regulations, theAMC is not permitted to charge any investment managementand advisory services fee on its own investment in the Scheme.

9. Investment Limitation and RestrictionsThe following investment limitations and other restrictions,inter alia, as contained in the Trust Deed and the Regulationsapply to the Scheme:

1. No loans may be advanced by the Mutual Fund and theFund shall not borrow except to meet temporary liquidityneeds of the Fund for the purpose of repurchase,redemption of Units or payment of interest or dividendsto Unitholders, provided the Fund shall not borrow morethan 20% of the net assets of the Scheme and theduration of such borrowing shall not exceed a period ofsix months or as may be permitted by the Regulationsfrom time to time.

2. The Fund shall buy and sell securities only againstdeliveries. In no case shall the Fund engage in shortselling.

3. Pending deployment of the funds of the Scheme inaccordance with the investment objectives, the Fund caninvest in short term deposits of scheduled commercialbanks subject to the Regulations.

4. Wherever investments are intended to be of a long-termnature, the securities shall be purchased or transferredin the name of the Fund, on account of the Schemeconcerned.

5. The Scheme shall not invest in any other Fund of Fundsscheme.

6. The Scheme shall not invest its assets other than inschemes of mutual funds, except to the extent of fundsrequired for meeting the liquidity requirements for thepurpose of repurchases or redemptions, as disclosed inthe Offer Document.

Apart from the above investment restrictions, the Fund followscertain internal norms, as approved by the Board of AMC/Trustee and in accordance with the Mutual Fund Regulations,which are subject to change from time to time. Presently, thefollowing are some of the internal restrictions followed:

1. Kotak Flexi FOF – Series I will invest in a recommendedscheme only if such a scheme fulfils the following criteria:

l The recommended scheme is floated by a Mutual Fund,which has as on the immediate preceding month end,total ‘assets under management’ (AUM) of more thanRs. 5000 crs. and equity AUM of more than Rs. 500 crs.

l The recommended Scheme does not charge any entryor exit load to the Scheme at the time of investment.

2. The number of underlying schemes (including KMMFequity schemes and liquid/ short term/ floating rateschemes /plans) in the Scheme’s portfolio will at least bethree.

3. The investments in each underlying scheme will not bemore than 40% of the net assets of the Scheme’sportfolio. However, if investments in any underlyingscheme exceed 40% of the net assets of the Scheme,the Fund Manager will rebalance the same within 10(Ten) Working Days.

4. The Scheme will not invest in any Sector Specific EquityScheme(s).

Modifications, if any, in the Investment Restrictions on accountof amendments to the Regulations shall supercede/overridethe provisions of the Trust Deed.

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10. Computation of Net Asset ValueThe NAV of the Units of the Scheme will be computed bydividing the net assets of the Scheme by the number of Unitsoutstanding on the valuation date.

a) Valuation NormsThe Fund shall value its investments according to the valuationnorms, as specified in the Eighth Schedule of the Regulations,or such guidelines / recommendations as may be specified bySEBI/AMFI from time to time.

The investments in the underlying schemes shall be valuedbased on the Net Asset Value of the respective schemes onthe valuation date.

Investments in call money, bills purchased under rediscountingscheme and short term deposits with banks shall be valuedat cost plus accrual. Money market instruments other thancall money, bills purchased under rediscounting scheme andshort term deposits with banks, shall be valued at the lasttraded price on the National Stock Exchange (NSE), andwhere not traded, shall be valued at the last traded price plusamortization on the basis of the last traded price.

Traded and non- traded Government Securities shall be valuedas per the prices for Government Securities released by anagency suggested by AMFI for the sake of uniformity incalculation of NAVs across all mutual funds. Accordingly,traded and non-traded government securities are valued atprices obtained from The Credit Rating Information Servicesof India Limited

Where instruments have been bought on ‘repo’ basis, theinstrument shall be valued at the resale price after deductionof applicable interest up to the date of resale. Where aninstrument has been sold on a ‘repo’ basis, adjustment shallbe made for the difference between the repurchase price(after deduction of applicable interest up to the date ofrepurchase) and the value of the instrument. If the repurchaseprice exceeds the value, the depreciation shall be provided forand if the repurchase price is lower than the value, credit shallbe taken for the appreciation.

The valuation guidelines as outlined above are as perthe Regulations prevailing at present and are subject tochange from time to time, in conformity with changesmade by SEBI.

All other guidelines, not covered above and as specifiedin the Mutual Fund Regulations, as well as any additions/modifications thereto as may be specified by SEBI fromtime to time, shall be adhered to for the purpose ofvaluation

b) Accrual of expenses and incomesAll expenses and incomes accrued up to the valuation dateshall be considered for the computation of net asset value.For this purpose, while major expenses like management feesand other periodic expenses shall be accrued on a day to daybasis, other minor expenses and income need not be soaccrued, provided the non-accrual does not affect the NAVcalculations by more than 1%.

c) Recording of Securities and Units in the booksAny change in the portfolio of securities and in the numberof Units held shall be recorded in the books not later thanthe first valuation date following the date of transaction. If

this is not possible given the frequency of the Net Asset Valuedisclosure, the recording may be delayed up to a period ofseven days following the date of the transaction, providedthat as a result of the non-recording, the Net Asset Valuecalculations shall not be affected by more than 1%. In casethe Net Asset Value is affected by more than 1% due to suchnon-recording of transactions, the investors or the Scheme,as the case may be shall be paid the difference in the mannerprovided in the Regulations.

d) Calculation of NAVNAV of Units under the Scheme or Options thereunder canbe calculated as shown below:

Market or Current assets Current LiabilitiesFair Value + including – and provisions

of Scheme's Accrued including accruedinvestments Income expenses NAV =

No. of Units outstanding under the Scheme / Option

The NAV and the sale and repurchase prices of the Units willbe calculated and announced at the close of each WorkingDay. Computation of NAV will be done after taking intoaccount dividends declared, if any, and the distribution taxthereon, if applicable. Therefore, once dividends are declaredunder the Dividend Option, the NAV of the Units under theDividend Option would always remain lower than the NAVof the Units issued under the Growth Option.

The income earned and the profits realized in respect of theUnits issued under the Growth Option remain invested andare reflected in the NAV of the Units.

11. Accounting PoliciesIn accordance with the Mutual Fund Regulations, the Fundfollows the accounting policies and standards stated below:

1. For each Scheme, the AMC shall keep and maintainproper books of accounts, records and documents, forthe Scheme so as to explain its transactions and todisclose at any point of time the financial position of theScheme and in particular give a true and fair view of thestate of affairs of the Fund.

2. For the purposes of the financial statements, the MutualFund shall mark all investments to market and carryinvestments in the balance sheet at market value.However, since the unrealised gain arising out ofappreciation on investments cannot be distributed,provision shall be made for exclusion of this item whenarriving at distributable income.

3. For investments, which are not quoted on a stockexchange, dividend income shall be recognised on thedate of declaration.

4. In respect of all interest-bearing investments, incomeshall be accrued on a day-to-day basis as it is earned.Therefore, when such investments are purchased, interestpaid for the period from the last interest due date uptothe date of purchase shall not be treated as a cost ofpurchase but shall be debited to Interest RecoverableAccount. Similarly, interest received at the time of salefor the period from the last interest due date up to thedate of sale shall not be treated as an addition to salevalue but shall be credited to Interest RecoverableAccount.

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5. In determining the holding cost of investments and thegains or loss on sale of investments, the “average cost”method shall be followed.

6. Transactions for purchase or sale of investments shall berecognised as of the trade date and not as of thesettlement date, so that the effect of all investmentstraded during a financial year is recorded and reflectedin the financial statements for that year. Where investmenttransactions take place outside the stock market, forexample, acquisitions through private placement orpurchases or sales through private treaty, the transactionshall be recorded, in the event of a purchase, as of thedate on which the Scheme obtains an enforceableobligation to pay the price or, in the event of a sale, whenthe Scheme obtains an enforceable right to collect theproceeds of sale or an enforceable obligation to deliverthe instruments sold.

7. Where income receivable on investments has beenaccrued and has not been received for the period specifiedin the guidelines issued by SEBI, provision shall be madeby debiting to the revenue account the income so accruedin the manner specified by SEBI in this behalf.

8. When Units are sold, the difference between the saleprice and the face value of the Unit, if positive, shall becredited to reserves and if negative, debited to reserves,the face value being credited to Capital Account. Similarly,when Units are repurchased, the difference between thepurchase price and the face value of the Unit, if positiveshall be debited to reserves and, if negative, shall becredited to reserves, the face value being debited to thecapital account. Accordingly, upon issue and redemptionof units, the net premium or discount to the face valueof units is adjusted against the unit premium reserve ofthe Scheme / Options, after an appropriate portion ofthe issue proceeds and redemption payout is credited ordebited respectively to the income equalisation reserve.The unit premium reserve is available for dividenddistribution except to the extent it is represented byunrealised net appreciation in value of investments.

9. When Units are sold an appropriate part of the saleproceeds shall be credited to an Equalisation Accountand when Units are repurchased an appropriate amountdebited to the Equalisation Account. The net balance onthis account shall be credited or debited to the RevenueAccount. The balance on the Equalisation Accountdebited or credited to the Revenue Account shall notdecrease or increase the net income of the Fund but isonly an adjustment to the distributable surplus. It shall,therefore, be reflected in the Revenue Account only afterthe net income of the Fund is determined. Accordingly,Income equalisation reserve is maintained by crediting(or debiting) the income equalisation reserve account inrespect of purchase of units (or redemption of units) byan appropriate amount, which represents the distributableincome at the time of purchase (or redemption). Thebalance in the income equalisation reserve account istransferred to the revenue account at the end of theyear.

10. The cost of investments acquired or purchased shallinclude brokerage, stamp duty, applicable taxes and anycharge customarily included in the broker’s bought note.

In respect of privately placed debt instruments any front-end discount offered shall be reduced from the cost ofthe investment.

11. For the Scheme, Initial Issue Expenses comprise BrokerageAgents’ commission, advertising and marketing costs,registrar expenses, printing and dispatch costs, etc.. Incase the Initial Issue Expenses are borne by the Scheme,the extent of expenses not met out of the entry load, ifany, collected during the New Fund Offer may beamortised over a period not exceeding three years (orone year for certain identified initial issue expenses asapproved by the Trustees) for open ended schemes ofthe Fund and over the tenure of the scheme for closeended schemes.

12. Load Charges: For the Scheme:

a) Load collected, if any, during the NFO shall be utilisedto meet the Broker/Agents Commission incurredduring the New Fund Offer.

b) Load collected, if any, during the continuous offerof the Scheme shall be retained under a separateaccount in the Scheme and shall be used to meetthe selling and distribution expenses of the Scheme.

13. Following the issue of the Guidance Note on ‘Accountingfor Investments in the Financial Statements of MutualFunds’ by the Institute of Chartered Accountants of India(pursuant to the Eleventh Schedule of the SEBIRegulations) net unrealised appreciation/ depreciation invalue of investments is determined separately for eachcategory of investments. Further, the change in netunrealised appreciation / depreciation, if any, betweenthe two Balance Sheet dates/ date of determination isrecognised in the revenue account. Unrealisedappreciation is reduced from the distributable income atthe time of income distribution. At the end of the financialyear the balance in revenue account including net changein unrealised appreciation / depreciation in value ofinvestments is transferred to the revenue reserve.

The identification and provisioning of Non PerformingAssets (Debt Securities) shall be in accordance with circularno. MFD/CIR/8/92/2000 dated September 18, 2000 andmodifications thereto vide circular no. MFD/CIR/14/088/2001 dated March 28, 2001, issued by SEBI. The circulardated September 18, 2000 also contains provisions forthe treatment of income accrued on Non PerformingAssets (NPA), treatment of assets on reclassification asperforming assets, receipt of past dues, disclosures ofNPAs on a half yearly basis along with the half yearlyportfolio of the relevant Scheme, etc.

The accounting policies and standards as outlinedabove are in accordance with the present MutualFund Regulations and are subject to change inaccordance with changes in the Mutual FundRegulations.

All other policies and standards as specified in theMutual Fund Regulations, as well as any additions/ modifications thereto as may be specified by SEBIfrom time to time shall be adhered to whilepreparing the books of accounts and financialstatements of the Fund.

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The Trustee may, at its discretion, require the Fundto follow more conservative accounting norms thanas required by the Regulations in respect of non-performing assets or assets in default.

12. Recording of Investment DecisionsWith regard to investments in underlying schemes, individualscheme-wise reasons will be maintained in respect of dailytransactions. Such reasons will be recorded at the time ofplacing orders. As per Mutual Fund Regulations, a detailedresearch report must be prepared for each investment decisiontaken for the first time. However since investments inunderlying equity schemes other than KMMF schemes will bebased on the recommended list provided periodically by theAdvisor, the recommended list shall be construed as theresearch report. The recommended list will be accompaniedby a report stating the methodology for choosing underlyingschemes. The broad parameters which shall be considered bythe Advisor while generating the recommended list shall beapproved by the Boards of AMC and Trustees.

The decision of making investments in Inter bank call and/orreverse repo and/or short-term fixed deposits and/or Schemes,which invest predominantly in the money market, or floatingrate securities will be exercised by the Fund Manager in orderto meet the liquidity requirements. The role of Mr. SandeshKirkire, CEO of the AMC is to ensure that due diligence isexercised while making investment decisions, that processesand procedures are followed, and review is undertaken vis-à-vis norms, policies, mechanisms, etc. laid down by theBoard of the AMC. Performance of the Scheme will periodicallybe tabled before the Boards of the AMC and the Trusteerespectively. Performance of the Scheme vis-à-vis benchmarkindices would be monitored by the Boards of the Trustee andthe AMC periodically. Further, the Boards of the Trustee andthe AMC will also review the performance of the Scheme inthe light of performance of similar fund of funds schemeswhen launched, as published from time to time by independentresearch agencies and financial newspapers and journals.

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V . U N I T S

Broker/Agent’s commission, advertising, publicity, marketing,registrar expenses, etc., charged to the Scheme, shall notexceed 6% of the amount collected under the Scheme.

In respect of the Scheme, Initial Issue Expenses not exceeding4.25% may be incurred by the Fund as under:

a. Expenses relating to Broker / Agent’s commission incurredduring the New Fund Offer (NFO) shall be met out of theEntry Load (2.25% for investments equal to or less thanRs 10 crores) collected during the NFO. No part of theseexpenses met out of the entry load will be amortised.

b. Initial Issue Expenses comprising of Marketing andAdvertising, Printing and Mailing, Additional Brokerage /Commission, Registrar Expenses, Bank charges and OtherExpenses, subject to a maximum of 2% of the amountcollected (net of Entry load) by the Scheme, will beamortised over the tenure of the scheme. Theproportionate unamortised initial issue expenses of theinitial investments will be recovered from the redemptionproceeds.

Actual expenses incurred in excess of 4.25% of the amountcollected shall be borne by the AMC.

For amount available to the Scheme for investment, pleaserefer to the illustration explained elsewhere in this offerdocument.

8. Minimum Purchase and RedemptionThe minimum purchase and redemption amount under theScheme is as follows:

PurchaseFor Opening Unit Accountl During New Fund Offer Rs. 5000

Redemption(only during liquidity window)*Redemption from existing Rs. 1000 orUnit Accounts 100 Units

* If the holding is less than Rs. 1000 or 100 Units, theentire balance will be redeemed as and when redemptionrequest is received from the investor.

9. Applicable NAVRedemption (only during Liquidity Window)

l For Valid Applications accepted upto 3 p.m. on a WorkingDay, the NAV of such Working Day.

Further, where the AMC or the Registrar has provided afacility to the investors to redeem/switch-out of the Schemethrough the medium of Internet by logging onto specificweb-sites or telephone and where investors have signed upfor using these facilities, the Applicable NAVs will be asprovided above.

10. Facilities Offered to Investors under the Schemea) Nomination FacilityIf an application for purchase of Units is made in the name

A. UNITS ON OFFER1. Minimum Subscription AmountThe Fund seeks to collect a minimum subscription amount ofRs. 50,00,000/- (Rs. Fifty Lakhs only) in the New Fund Offerof the Scheme. In the event this amount is not raised duringthe New Fund Offer, the amount collected will be refundedto the applicants as mentioned elsewhere in this OfferDocument.

There is no upper limit on the total amount that may becollected in the Scheme. After the minimum subscriptionamount has been collected, all valid applications are assuredof full allotment in the Scheme.

2. New Fund OfferThe New Fund Offer for the Scheme will be from February22, 2006 to March 22, 2006.

3. New Fund Offer PriceThe New Fund Offer price of Units under each Option of theScheme will be as follows:

For purchase attracting Entry Load during the New FundOffer = Rs. 10.225/- per Unit for Cash (Face Value - Rs.10/-and Entry Load - Rs. 0.225)

For purchase not attracting Entry Load during New FundOffer = Rs. 10/- per unit for Cash

4. Extension of New Fund OfferThe Trustee reserves the right to extend the closing date,subject to the condition that the New Fund Offer shall notbe kept open for more than 30 days. Any such extension shallbe announced by way of a notice in one national newspaper.

5. Continuous OfferThis being a close-ended Scheme, the Units will not beoffered for Purchase by investors after the New Fund Offerof the Scheme, however, the Unitholders can redeem theirunits at the redemption price as mentioned under sub-paragraph ‘Redemption Price’ under paragraph ‘Redemptionof Units’ mentioned elsewhere in this Offer Document.

6. ListingThe Scheme, after the New Fund Offer, on a continuous basiswill offer for Redemption of Units at NAV related price duringthe last working day of every calendar month from the dateof allotment of units. It is, therefore, not necessary to list theUnits of the Scheme on any exchange even though theScheme is a close - ended Scheme. The Trustee, however, hasthe right to list the Units under the Scheme on any stockexchange/s for better distribution and additional convenienceto existing/prospective Unitholders. Even if the Units are listed,the Fund may continue to offer redemption facility as specifiedin this Offer Document. Any listing will come only as anadditional facility to investors who wish to use the servicesof a stock exchange for the purpose of transacting businessin the Units of the Scheme.

7. Expenses of Initial IssueAs per the Regulations, the Initial Issue expenses comprising

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of a single holder, the eligible Unitholder may nominate asuccessor to receive the Units upon his/her death, subject tothe prescribed formalities.

Where the Units are held by more than one person jointly,the jointholders may together nominate a person in whomall the rights in the Units shall vest in the event of the deathof all the joint Unitholders.

This facility is subject to the law applicable to such succession.

b) TransmissionIn case of death of the Unitholder (individual), Units shall betransmitted in favour of the second-named joint holder ornominee or legal heir/successor, as the case may be, onproduction of a death certificate or any other document tothe satisfaction of the AMC/Registrar.

This facility is subject to the law applicable to such succession.

c) Fractional UnitsPurchases, redemptions and account balances of Units arecalculated upto three decimal places. Fractional Units in noway affect the investor’s ability to redeem the Units, eitherin part or in full, standing to the credit of the Unitholder.

d) SwitchingUnitholders of the Scheme have the option of switching outall or part of their investment in the Scheme/ Plan/ Option toany other Option of the Scheme or to any other Scheme /Plan/ Option of the Fund, during the liquidity window.However, no switch in is allowed in the scheme.

A switch has the effect of redemption from a Scheme/Plan/Option and a purchase in the other Scheme/Plan/Option towhich the switching has been done and all the terms andconditions pertaining to redemption and purchase of theUnits of the respective Scheme shall apply to a switch, unlessotherwise specified.

Switch is effected by redeeming Units from the Scheme/Plan/Option and investing the net proceeds in the other Scheme/Plan/Option.

e) How to SwitchThe request for a switch out can be either in terms of amountor in terms of the number of Units. Instructions for switchingmay be provided by completing a Switch Request form,which would be available at any of the Investor ServiceCentres or at the office of the Registrar at Chennai. The dulycompleted form must be submitted at any of the InvestorServices Centres or at the office of the Registrar at Chennai,on any Working Day.

Systematic Investment Plan (SIP), Systematic WithdrawalPlan (SWP) and Systematic Transfer Plan (STP) are notavailable under this Scheme.

B. PURCHASE OF UNITS1. Who can invest?The following are eligible to apply for purchase of the Units:

l Resident Indian Adult Individuals, either singly or jointly(not exceeding three).

l Parents/Lawful guardians on behalf of Minors.

l Companies, corporate bodies, registered in India.

l Registered Societies and Co-operative Societies authorisedto invest in such Units.

l Religious and Charitable Trusts under the provisions ofSection 11(5) of the Income Tax Act, 1961 read with Rule17C of the Income Tax Rules, 1962.

l Trustees of private trusts authorised to invest in mutualfund schemes under their trust deeds.

l Partner(s) of Partnership Firms.

l Association of Persons or Body of Individuals, whetherincorporated or not.

l Hindu Undivided Families (HUFs), in the sole name of theKarta.

l Banks (including Co-operative Banks and Regional RuralBanks) and Financial Institutions and InvestmentInstitutions.

l Non-Resident Indians/Persons of Indian Origin residentabroad (NRIs) on full repatriation or non-repatriationbasis.

l Foreign Institutional Investors (FIIs) registered with SEBI.

l International Multilateral Agencies approved by theGovernment of India.

l Army/Navy/Air Force/Para-Military Units and other eligibleinstitutions.

l Scientific and Industrial Research Organizations.

l Provident/Pension/Gratuity and such other Funds as andwhen permitted to invest.

l Universities and Educational Institutions.

The list given above is indicative and the applicable law, if any,shall supercede the list.

2. Purchase PriceNew Fund Offer Rs. 10/- per UnitThe Purchase Price will be calculated on the basis of theapplicable NAV and entry loads, if any, for example:

Purchase Price = Applicable NAV$ x(1 + Entry Load)*

eg: If the Applicable NAV is Rs. 10/-; Entry Load is 2.25%,

then Purchase Price = 10 x (1+2.25%)

= Rs. 10.225/-

* For Entry Load, please refer paragraph ‘Load Structureof the Scheme’ mentioned elsewhere in this OfferDocument.

$ For Applicable NAV, please refer paragraph ‘ApplicableNAV’ mentioned elsewhere in this Offer Document.

3. Mode of Paymenta) Resident InvestorsResident investors may make payment for the Units by anyof the following means:

l By local Cheques payable in the city in which theApplication Form is submitted.

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l By a Demand Draft (‘DD’) payable in the city in whichthe Application Form is submitted and drawn on a bankwhich is a member of the Bankers Clearing House of thatcity.

l Bank Charges for issue of DDs / Fund Transfer shall beborne by the Fund only in respect of investors who investfrom locations where there are no ISCs / TransactionPoints. The ceiling on Bank Charges would be restrictedto SBI DD Charges. Where Demand Drafts, as statedabove are issued, the investor must, in the ApplicationForm clearly indicate the Investment Amount, DD Chargesand Net Amount. In the absence of this indication, unitswill be allotted for the amount appearing on the face ofthe instrument. The AMC / Fund would not accept anyrequests for refund of DD Charges.

l In any other manner that may be, from time to time,accepted by the AMC for the smooth and efficientfunctioning of the Scheme.

PLEASE NOTE THAT THE FOLLOWING ARE NOT ACCEPTED

l Stockinvests

l Outstation Cheques

l Post-dated Cheques

All cheques and drafts should be crossed “Account PayeeOnly” and drawn in favour of “KOTAK FLEXI FOF - SERIES I“.

b) NRIsRepatriation BasisRBI has granted a general permission to Mutual Funds, whichare referred to in clause (23D) of Section 10 of the IncomeTax Act, 1961, to issue and repurchase Units of the Schemethat are approved by SEBI, to NRIs. Further, general permissionhas also been granted to send such Units to NRIs at theirplaces of residence or location as the case may be. NRIapplications on a repatriation basis will be accepted, if theamount representing the investment is received by inwardremittance through normal banking channels or by debit toNRE/FCNR account of the non-resident investor maintainedwith an authorised dealer in India.

Non-Repatriation BasisIn the case of NRIs/Persons of Indian Origin seeking to applyfor Units on a non-repatriation basis, the applications will beaccepted, if the amount representing the investment is receivedby inward remittance through normal banking channels or bydebit to the NRE/FCNR/NRO account of the non-residentinvestor maintained with an authorised dealer in India.

Payment whether on a repatriation or a non-repatriationbasis, shall be made by Cheques/Demand Drafts crossed“Account Payee Only”, in a similar fashion as in the caseof resident investors.

c) FIIsRBI has granted a general permission to Mutual Funds, whichare referred to in clause (23D) of Section 10 of the IncomeTax Act, 1961, to issue and repurchase Units of the Schemethat are approved by SEBI to and from FIIs. Further, a generalpermission has also been granted to send such Units /instruments out of India to their global custodians. Applicationsof FIIs on a repatriation basis will be accepted if the amount

representing the investment is received by inward remittancethrough normal banking channels or out of funds held inForeign Currency Account or Non-resident Rupee Accountmaintained by the FIIs with a designated branch of anauthorised dealer with the approval of RBI.

d) Applicants under Power of Attorney, Companies/Corporate Bodies / Registered Societies/ Trusts/Partnerships

In the case of an application under a Power of Attorney orby a limited company, body corporate, registered society,trust or partnership, the relevant Power of Attorney or therelevant resolution or authority to make the application or theTrust Deed or the Partnership Deed as the case may be, orduly certified copy thereof, along with a certified copy of theMemorandum and Articles of Association and/or bye-lawsmust be lodged at the office of the Registrar at Chennai,within 7 (Seven) days from the date of the application underthe New Fund Offer, failing which the application is liable tobe rejected or a request for redemption may not be processed.

Note: The Trustee, at its discretion, may alter or addother modes of payment.

4. Where to submit Application Forms?Investors may submit completed Application Forms as under:

During the New Fund Offer

1. Designated Collection Banks.

2. KMAMC Authorised Collection Centres

The addresses of the ISCs, Transaction Points, Registrarand Collection Banks respectively are given elsewherein this Offer Document.

Application Forms, if sent by post, must be accompanied byCheques or Demand Drafts payable at the place where theapplication is being sent, and sent to any of the placesmentioned above.

As per the directives issued by SEBI, it is mandatory for aninvestor to declare his/her bank account number. To safeguardthe interest of Unitholders from loss or theft of their refundorders/redemption cheques, investors are requested to providetheir bank details in the Application Form. Wherever anapplication is for a total value of Rs. 50,000 or more, theapplicant or in the case of application in joint names, eachof the applicants, should mention his/her Permanent AccountNumber (PAN) allotted under the Income Tax Act, 1961,along with a proof of the PAN. In case where the investordoes not have a PAN, the investor has to submit to the mutualfund, Form 60/61 along with a proof of address, as prescribedunder Income Tax Act, 1961, along with application form.Any Application Form without these details will not beaccepted by the mutual fund.

Any application may be accepted or rejected at the sole andabsolute discretion of the Trustee.

5. Joint ApplicantsIf an Account has more than one holder, only the first-namedholder (as determined by the records of the Registrar) willreceive all notices and correspondence with respect to theAccount. Such Unitholder will receive the proceeds of anyredemption requests or dividends or other distributions. In

31


addition, such holder will have the voting rights, as permitted,associated with such Units.

In the case of holdings specified as ‘jointly’, all requests haveto be signed by all the joint holders. However, in the case ofholdings specified as ‘anyone or survivor’, anyone of the jointholders may sign such requests.

6. AllotmentSubject to the receipt of the specified Minimum SubscriptionAmount for the Scheme, full allotment will be made to allvalid applications received during the New Fund Offer. TheTrustee reserves the right, at their discretion without assigningany reason thereof, to reject any application. Allotment willbe completed within 30 (Thirty) days after the closure of theNew Fund Offer.

7. Account Statement / Unit CertificateAn Account Statement, stating the number of Units allotted,will be sent to each Unitholder within 30 (Thirty) days fromthe date of the closure of the New Fund Offer. The AccountStatement will be non-transferable.

Non-transferable Unit Certificates will be sent, if an applicantso desires, within 30 (Thirty) days after the receipt of a requestfor the certificate.

Any discrepancy in the Account Statement / Unit Certificateshould be brought to the notice of the Fund/AMC immediately.Contents of the Account Statement / Unit Certificate will bedeemed to be correct if no error is reported within 30 (Thirty)days from the date of Account Statement / Unit Certificate.

Units held, either in the form of Account Statements or UnitCertificates, are non-transferable. The Trustee reserves theright to make the Units transferable at a later date subjectto the Regulations issued from time to time.

All Units rank pari passu amongst Units within the Scheme /Option as to assets and earnings.

8. RefundRefund of subscription money to applicants in the case ofminimum subscription amount not being raised or applicationsrejected for any other reason whatsoever, will be made within30 (Thirty) days from the end of the New Fund Offer. Nointerest will be payable on any subscription money so refundedwithin the said 30 (Thirty) days. If the Mutual Fund refundsthe amount after the said 30 (Thirty) days, interest at the rateof 15% p.a. will be paid to the applicant and borne by theAMC for the period from the day following the date of expiryof the said 30 (Thirty) days until the actual date of the refund.Refund orders will be marked “Account Payee only” anddrawn in the name of the applicant in the case of a soleapplicant and in the name of the first applicant in all othercases. In both cases, the bank name and bank accountnumber, as specified in the application, will be mentioned inthe refund order. The bank and/or collection charges, if any,will be borne by the applicant.

All refund cheques will be mailed by Registered Post or as perthe Regulations.

C. REDEMPTION OF UNITSThe Units can be redeemed, during the liquidity window, atthe Redemption Price (mentioned elsewhere in this OfferDocument).

Units purchased by cheque may not be redeemed until afterrealisation of the cheque.A Unitholder has the option to request for redemption eitherin amount in Rupees or in number of Units. If the redemptionrequest indicates both amount in Rupees and number ofUnits, the latter will be considered as being requested. Wherea Rupee amount is specified or deemed to be specified forredemption, the number of Units redeemed will be computedas the amount redeemed divided by the Redemption Price.Alternatively, a Unitholder can request closure of his account,in which case, the entire Unit balance lying to the credit ofhis account will be redeemed.The Fund reserves the right to redeem the entire amount lyingto the credit of the Unitholder’s account in that Scheme/Option if the Redemption request amount exceeds the balancelying to the credit of the Unitholder’s said account.The number of Units redeemed is subtracted from theUnitholder’s account and a statement to this effect is issuedto the Unitholder.If an investor has purchased Units on more than one WorkingDay, the Units purchased prior in time (i.e. those Units whichhave been held for the longest period of time), will be deemedto have been redeemed first, i.e. on a First In First Out Basisexcept when the Unitholder specifically requests redemptionof Units purchased on specific date(s).1. Redemption PriceThe Redemption Price per unit is calculated as follows.

Redemption Price = Applicable NAV$ x (1 - Exit Load)*– Proportionate Unamortised InitialIssue expenses (till the redemptiondate)

Eg: If Applicable NAV = Rs. 10/-;

Exit Load = 1%;Proportionate Unamortised

Initial Issue Expenses = Rs. 0.150, then

Redemption Price = 10 x (1-1%) – 0.150= Rs. 9.75/-$ For Applicable NAV, please refer paragraph ‘Applicable

NAV’ mentioned elsewhere in this Offer Document.* For Exit Load, please refer paragraph ‘Load Structure of

the Scheme’ mentioned elsewhere in this OfferDocument.

The Redemption Price for every Working Day will be publishedatleast in two daily newspapers.The Redemption Price, however, will not be lower than 95%of the Applicable NAV minus the proportionate unamortizedInitial Issue Expenses till the redemption date (during theliquidity window), if any.

2. How to Redeem?Pre-printed redemption request form will be sent to theUnitholders along with the Account Statement. These formswill also be available at any of the Investor Service Centresand at the office of the Registrar at Chennai.The fully completed form, can be submitted at any of theInvestor Service Centres listed in this Offer Document or canbe sent to the office of the Registrar at Chennai, in personor by post.Where the Unitholder has opted to transact through theInternet, he may redeem his Units through the website of the

32


Registrar, i.e. www.camsonline.com and/or through any otherwebsite, through which redemption may be facilitated infuture.

The Unitholder may either request mailing of the redemptionproceeds to his/her address or to be retained at the ISC forcollection by him/her. If the Unitholder opts for the “D-Kredit” facility, he can receive the amount by a direct creditto his bank account.

3. Maturity of the SchemeAll units of the Scheme will compulsorily and without anyfurther act by the Unitholder(s) be redeemed on the expiryof three years from the date of allotment, and the Units ofthe Scheme will be redeemed at the Applicable NAV on thatdate. If the maturity falls on a holiday, the maturity of theScheme will be the immediately following working day.

For eg: If the date of allotment of units under the Schemeis done on January 1, 2006, the date of maturity of theScheme will be December 31, 2008. In case December 31,2008, is a holiday, the date of maturity will be the immediatelynext working day.

4. Payment of ProceedsRedemption proceeds will be paid by cheques, marked“Account Payee only” and drawn in the name of the soleholder/first-named holder (as determined by the records ofthe Registrar). The Bank Name and No, as specified in theRegistrar’s records, will be mentioned in the cheque, whichwill be payable at par at all the cities designated by the Fundfrom time to time. If the Unitholder resides in any othercity, he will be paid by a Demand Draft payable at thecity of his residence.

Redemption cheques will generally be sent to the Unitholder’saddress, (or, if there is more than one joint holder, the addressof the first-named holder) as per the Registrar’s records, bycourier within 4 Working Days from the day when the validrequest is accepted at the Official Acceptance Point, but inany case, not later than 10 Working Days from the date ofredemption. (Please refer to paragraph ‘Applicable NAV’ asmentioned elsewhere in this Offer Document for cut-offtimes for receiving the redemption request).

Redemption proceeds may also be paid to the Unitholder inany other manner that the Unitholder may request or theTrustee may, from time to time, decide, for the smooth andefficient functioning of the Scheme.

5. Redemption by NRIs/FIIsCredit balances in the account of NRIs may be redeemed bysuch investor in accordance with the procedure describedabove in paragraph 2. Such redemption proceeds (afterpayment of taxes) may be,(a) credited at the NRI investor’s option, to his NRO account,

where the payment for the purchase of the Units soldwas made out of funds held in NRO account, or

(b) remitted abroad or at the NRI investor’s option, creditedto his NRE/FCNR/NRO account, where the Units werepurchased on repatriation basis and the payment forpurchase of the Units sold was made by inward remittancethrough normal banking channels or out of the fundsheld in NRE/FCNR account.

In case of an FII, the designated branch of an authoriseddealer may allow remittance of net redemption proceeds(after payment of taxes) or the same may be credited to itsNon Resident Rupee Account or the Foreign Currency Account.6. Effect of Redemptionsa) On the FundAfter every redemption, the Unit capital and Reserves of theScheme stand reduced by an amount equivalent to the productof the number of Units redeemed and the Applicable NAVas on the date of redemption, duly adjusted for proportionateunamortized balance of initial issue expenses till the date ofredemption. Units once repurchased can be re-issued duringthe liquidity window at applicable NAV to existing unit holdersof the scheme, as it may deem necessary

b) On the Unitholder’s accountThe balances in the Unitholder’s account stand reduced bythe number of Units redeemed. The following table illustratesa typical redemption case, assuming the initial issue expensesof 2% of the subscribed amount which is amortised till thematurity of the scheme, i.e., for a period of three years fromthe allotment date.

Particulars Amount

Unit initial issue Expenses A Rs. 0.20(Rs. 10.000 X 2%)

No. of days, in which the initial issue expenses is to be amortised B 1096

Daily Unit initial issue expenses amortisation C = A / B Rs. 0.20 /1096 days

Assuming, the investments are redeemed by the investor D 274 days(during the liquidity window) on 274th day from the allotment date

The initial issue expenses amortised till the redemption date E=A x D/B Rs. 0.050(Rs. 0.20 x 274 / 1096)

Unamortised Unit initial issue expenses, which will be recovered F = A-E Rs. 0.150from the investor redeeming the units (0.20 - 0.050)

Thus, the total Unit initial issue expenses borne by :- Investor who redeems the units during the liquidity window G = E + F Rs. 0.20

(0.050 + 0.150)Amortised + Unamortised

- Investor who gets the proceeds at the time of H = A Rs. 0.20maturity of the scheme (amortised)

Thus, it is clear from the above table, that the Unit initial issue expenses which is amortised are being completely borne bythe respective investors only.

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6. Right to Limit RedemptionThe Board of Directors of the Trustee and the AMC may, inthe general interest of the Unitholders of the Scheme offeredunder this Offer Document and keeping in view the unforeseencircumstances/unusual market conditions, limit the totalnumber of Units which may be redeemed during the LiquidityWindow to 5% of the total number of Units then issued andoutstanding under the Scheme or to such other percentageas the said Boards may determine. In such a case, the approvalof both the Boards, giving details of circumstances andjustification for the proposed action shall be informed to SEBIin advance.

Any Units, which, by virtue of these limitations, are notredeemed on a particular day, are carried forward forredemption to the next day for which NAV is declared, in theorder in which the requests for redemption were received.Redemptions so carried forward are priced on the basis of theRedemption Price of the day on which redemption is made.Under such circumstances, to the extent multiple redemptionrequests are received at the same time on a single WorkingDay, redemptions will be made on pro-rata basis, based onthe size of each redemption request, the balance amountbeing carried forward for redemption to the next day(s) forwhich NAV is declared.

7. Suspension of Redemption of UnitsThe redemption of Units may be suspended temporarily orindefinitely when any of the following conditions exist:

1. There is a natural calamity, civil strife, complete breakdownof law and order, war, Act of God or force majeure; andor

2. There is suspension of redemption of units in any of theunderlying scheme.

3. SEBI, by order, so directs.

In case of suspension of redemption, the approval of theBoards of Directors of the Trustee and the AMC, giving detailsof circumstances and justification for the proposed actionshall be informed to SEBI in advance.

8. Unclaimed Redemption and Dividend AmountAs per circular no. MFD/CIR/9/120/2000, dated November24, 2000 issued by SEBI, the unclaimed redemption anddividend amounts shall be deployed by the Fund in callmoney market or money market instruments only. Theinvestment management fee charged by the AMC formanaging such unclaimed amounts shall not exceed 50 basispoints. The circular also specifies that investors who claimthese amounts during a period of three years from the duedate shall be paid at the prevailing Net Asset Value. Thus,after a period of three years, this amount can be transferredto a pool account and the investors can claim the said amountsat the NAV prevailing at the end of the third year.

In terms of the circular, the onus is on the AMC to make acontinuous effort to remind investors through letters to taketheir unclaimed amounts.

Calculation of Redeemed Units explained: If Exit Load of1% is chargeable

Unit Balance before Redemption A 2,305.235

NAV on date of redemption B Rs. 10.412

Exit Load Chargeable C Rs. 0.104(10.412 x 1%)

Redemption Price (Net of Load) D = B-C Rs. 10.308(10.412-0.104)

Proportionate Unamortized Initial per unit E Rs. 345.79 or Rs. 0.150Issue Expenses per unit(at the time of redemption offered during liquidity window) (Rs. 345.79/2305.235

units)

Unit Net Redemption Price F = D-E Rs. 10.158(Net of Load & proportionate unamortised initial issue expenses) Rs. (10.412-0.104-0.150)

If Redemption request is in Rs. G Rs. 3,500

No. of units Redeemed H = G / F 344.5560 unitsRs. (3500 /10.158)

No. of Units left I= A-H 1960.679 units(2,305.235 -344.556)

If Redemption request is in Units J 350 Units

Net redemption Amount K = J x F Rs. 3,555.30(after recovery of proportionate unamortized initial issue expenses) (350 units x Rs. 10.158)

No. of Units left L = A-J 1955.235 units(2,305.235-350.000)

Note: Situation, load and NAV figures are hypothetical and assumed for the sole purpose of the illustration.

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The information on amount unclaimed and number of suchinvestors for each Scheme shall be disclosed in the annualreport sent to the Unitholders.

The AMC will invest the unclaimed redemption/dividendamounts under the Scheme in bank fixed deposits. In caseof a request from the investor claiming the unpaid redemption/dividend amounts due to him; the investor will be paid thesame along with the interest on such investment. Also theinvestors will be reminded through periodic communicationsto claim their unclaimed amounts. The AMC may charge fees

for managing these unclaimed redemption/dividend amountsas permitted under the Regulations.

9. Re-issue of Repurchased UnitsUnitholders will have the option to redeem the units duringliquidity window, only during the last working day of everycalendar month after the date of allotment of units, at pricesrelated to Applicable NAV. Subject to Regulations, the trusteereserves the right to re-issue the units repurchased at applicableNAV during liquidity window, to the existing unitholders, asit may deem necessary.

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A. NEW FUND OFFEREntry Load (During New Fund Offer) and Exit Load(During Liquidity Window) :

Entry Load (During New Fund Offer):l For investments less than Rs. 10 crores – 2.25%l For investments equal to or greater than Rs. 10 crores

– NIL.Exit Load (During Liquidity Window) : NILThe Trustee reserves the right to change the load structureof the Scheme or introduce contingent deferred sales charge(CDSC) on a prospective basis. Should the Trustee, on anydate, decide to change the load structure or introduce/modifyCDSC, it will be on a prospective basis and investments madeby Unitholders prior to such date will continue to attract theloads/CDSC applicable prior to such change. Any change/introduction in the load structure/CDSC alongwith the detailswill be stamped in the acknowledgement slip issued to theinvestors on submission of the application form and will alsobe disclosed in the statement of accounts issued after theintroduction of the same.

Any Load or CDSC of the Scheme will be maintained in aseparate account to meet the selling and distribution expensesof the Fund and any excess over such expenses will becredited to the Scheme, whenever felt appropriate by theAMC.

B. FEES AND EXPENSES OF THE SCHEMEAs per the provisions of the Regulations, as amended up todate, the following fees and expenses are applicable to theScheme:

1. Expenses of Initial IssueIn respect of the Scheme, Initial Issue Expenses not exceeding4.25% may be incurred by the Fund as under:a. Expenses relating to Broker / Agent’s commission incurred

during the New Fund Offer (NFO) shall be met out of theEntry Load collected during the NFO. No part of theseexpenses met out of the entry load will be amortised.

b. Initial Issue Expenses comprising of Marketing andAdvertising, Printing and Mailing, Additional Brokerage/ Commission, Registrar Expenses, Bank charges andOther Expenses, subject to a maximum of 2% of theamount collected (net of Entry load) by the Scheme, willbe amortised over the tenure of the scheme. For theScheme, the aforesaid initial issue expenses are estimatedas under:

Expenses other than EstimatedBroker/Agent’s % of Amountcommission Collected

Marketing and Advertising 0.50Printing and Mailing 0.20Additional Broker/Agent’s Commission 1.00Registrar Expenses 0.15Bank charges and Other Expenses 0.15

Total 2.00

These estimates are made in good faith by the AMC and theactual expenses may be different from these estimates, interse.

Actual expenses incurred in respect of Initial Issue Expensesin excess of 4.25% as indicated above shall be borne by theAMC.

Illustration of Amount available to Scheme forInvestment

Assumptions made for the purpose of the illustration:

l The impact has been explained for both categories ofinvestors, i.e.

A. Investment of less than Rs. 10 crores and

B. Investment of equal to or greater than Rs. 10 crores

l The calculations are made for every Rs. 100 invested byA and B.

l The Entry Load amount collected is utilised for paymentof Broker/Agent commission.

V I . L O A D S A N D R E C U R R I N G E X P E N S E S

A B

Unitholders Investment (Rs.) 100 100

Purchase Price at which Units are allotted (Rs.) 10.225 10.000

No. of Units allotted 9.780 10.000

Load Amount utilised for payment of Broker/Agent comm. (Rs.) 9.780 * 10 * 2.25% = 2.2005 0.00

Balance Amount (Rs.) 97.7995 100.00

Initial Issue Expenses (comprising of Marketing and Advertising,Printing and Mailing, Additional Brokerage / Commission,Registrar Expenses, Bank charges and Other Expenses) 97.7995 x 2%=1.9560 100 X 2% = 2.00

Amount available to Scheme for investment 95.8435 98.000

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The impact of initial issue expenses, which are to be amortisedover a period of time, on the NAV is explained below.

Illustration of Impact of Initial Issue Expenses onNAV :Continuing the illustration further, if the total amount collectedby the Scheme is Rs. 200 (as stated A and B above), furtherassumptions made for the purpose of the illustration:

l For illustrating the impact on NAV, no accruals,appreciation or depreciation on Investments has beenassumed from the time of New Fund Offer till the dateof computation of NAV.

l The impact of entry / exit load during the ContinuousOffer has not been considered for calculation of Purchase/Redemption Price on first date of NAV computation.

l All Initial Issue Expenses specified in the table above areamortised over a period of exactly three years (i.e tenureof the Scheme).

l Amortisation of Initial Issue Expenses starts from thedate of computation of NAV, which could be earlier thanthe first day of declaration of NAV.

Total Amount available for Investment to the Scheme (Rs.) 193.8435

Total No. of Units allotted 19.78

Total Initial Issue Expenses amortised over 3 years (1096 days) (Rs.) 3.9560

Maximum period for amortization 3 years i.e. 1096 days

Per day amortisation of Initial Issue Expenses (Rs.) 3.9560 ÷ 1096 = 0.0036

Balance Initial Issue Expenses which will be included in Net Assets (Rs.) 3.9560 - 0.0036 = 3.9524

NAV on first date of computation (Rs.) (193.8435+3.9524) ÷ 19.78 = 9.9998

Redemption Price (assuming that the liquidity window is available)after adjusting for the proportionate unamortised initial issue expenseson first date of NAV computation (Rs.) Rs. 9.7998 (Rs. 9.9998 – 0.2000)

2. Expenses of Past Initial IssueAs per the Regulations, for each Scheme, the Initial IssueExpenses comprising Broker/Agent’s commission, advertising,publicity, marketing, registrar expenses, etc. shall not exceed6% of the amount collected under the Scheme. For noScheme launched by the Fund did the initial issue expenseexceed the said limit. In the case of Kotak Gilt Investment,Kotak Gilt Savings, Kotak Gilt Serial, Kotak Bond, Kotak BondSerial, Kotak Bond Short Term, Kotak Liquid, Kotak FloaterShort Term Scheme, all Plans under Kotak Mahindra FixedMaturity Plans, Kotak FMP (8), Kotak Dynamic Income, Kotak30, Kotak Floater Long Term Scheme, Kotak Flexi Debt Scheme,Kotak FMP Series VIII, Kotak FMP Series I, Kotak FMP SeriesII, Kotak FMP Series IV, Kotak Cash Plus, Kotak FMP Series XII,Kotak FMP Series XIV, Kotak FMP Series XV and Kotak FMPSeries XVI the entire Initial Issue Expense was borne by theAMC. As such, for every Rs. 100 contributed by the investor,the entire Rs. 100 was available for investment. In the caseof Kotak Balance, Kotak MNC and Kotak Tech, the Schemeswere respectively charged initial issue expenses of 1.5% ofthe amount collected during the New Fund Offer and theexpenses so charged to the said Schemes are being amortisedover a period of 5 years, as required under Regulation 52(5)read with the Tenth Schedule. Amounts in excess of 1.5% ofthe amount collected were borne by the AMC and notcharged to the said Schemes. Thus, for every Rs. 100contributed by the investor, Rs. 98.50 was available to theSchemes for investment. In case of Kotak Income Plus, InitialIssue Expenses of upto 2% of the amount collected duringthe New Fund Offer Period was charged to the Scheme.Amount in excess of 2% were borne by the AMC. As such,

for every Rs.100 contributed by the investor, atleast Rs.98was available to Kotak Income Plus for investment. In caseof Global India Initial Issue Expenses of upto 2.83% wascharged to the Scheme and thus for every Rs.100 contributedby the investor, atleast Rs.97.17 was available to the Schemefor investment. In case of Kotak Equity FOF Initial Issue Expensesof upto 3.75% was charged to the Scheme and thus for everyRs.100 contributed by the investor, atleast Rs.96.25wasavailable to the Scheme for investment. In case of KotakOpportunities Initial Issue Expenses of upto 2.82% wascharged to the Scheme and thus for every Rs.100 contributedby the investor, atleast Rs.97.18 was available to the Schemefor investment. In case of Kotak Midcap Initial Issue Expensesof upto 3.41% was charged to the Scheme and thus for everyRs.100 contributed by the investor, atleast Rs.96.59 wasavailable to the Scheme for investment. In case of KotakDynamic Fund of Funds, initial issue expenses of upto 2.25%were charged to the scheme. Thus, for every Rs. 100contributed by the investor, atleast Rs. 97.75 was availableto the scheme for investment. In case of Kotak Contra Scheme,initial issue expenses of upto 3.42% were charged to thescheme. Thus, for every Rs. 100 contributed by the investor,atleast Rs. 96.58 was available to the scheme for investment.In case of Kotak Flexi Fund of Funds, initial issue expenses ofupto 3.18% were charged to the scheme. Thus, for every Rs.100 contributed by the investor, atleast Rs. 96.82 was availableto the scheme for investment. In case of Kotak ELSS, initialissue expenses of upto 6% were borne by the Scheme. Thus,for every Rs. 100 contributed by the investor, atleast Rs. 94.00was available to the scheme for investment.

37


3. Initial Issue Expenses incurred by the SchemesThe initial issue expenses for all the schemes are summarisedbelow :

Scheme Launched Initial Issue Borne by Borne by thein Expenses AMC Scheme**

(Rs. Lakhs) (Rs. Lakhs) (Rs. Lakhs)

Kotak Gilt December Combined In full –Investment, 1998 116Kotak GiltSavings,Kotak 30

Kotak Bond, October 58 In full –Kotak Balance 1999 133 48 85

Kotak Tech February 556 234 322Kotak MNC 2000 115 49 66

Kotak Liquid October 7.62 In full –2000

Kotak Bond April 2002 2.77 In full –Short Term

Kotak FMP (1) May 2002 2.90 In full –

Kotak FMP (2) June 2002 7.93 In full –

Kotak FMP (3) June 2002 – – –

Kotak FMP (4) July 2002 – – –

Kotak FMP (5) July 2002 – – –

Kotak FMP (6) March 2003 4.52 In full –


Kotak Floater July 1.11 In full –Short Term 2003Scheme

Kotak Income October 259.82 1.50 258.31Plus 2003

Kotak Dynamic December 2.77 In full –Income 2003

Kotak Global December 1014.57 1.09 1013.48India 2003


Kotak Equity July 2004 695.46 0.21 695.25FOF

Kotak July 2004 187.27 0.06 187.21Opportunities

Kotak Floater August 4.68 In full –Long Term 2004Scheme

Kotak Flexi November 1.94 In full –Debt Scheme 2004

Kotak Midcap December 1932.08 – In full2004

Kotak FMP February 0.98 In full –Series VIII 2005

Kotak FMP March 2005 4.38 In full –Series I

Kotak FMP March 2005 0.53 In full –Series II

Kotak FMP March 2005 0.61 In full –Series IV

Kotak Dynamic March 2005 235.53 0.023 235.51Fund of Funds

Kotak Contra June 2005 2154.14 – In fullScheme

Kotak Cash September 6.26 In full –Plus 2005

Kotak Flexi September 11.21 – In fullFund of Funds 2005

Kotak ELSS September 802.97 275.41 527.552005

Kotak FMP November 0.98 In full –Series XII 2005

Kotak FMP January 0.01 In full –Series XV 2006

Kotak FMP January 0.13 In full –Series XIV 2006

Kotak FMP February 0.01 In full –Series XVI 2006

** The initial issue expenses borne by the schemes arebeing amortised as per the Regulations.

The Initial Issue Expenses of the schemes did not vary adverselyfrom the estimated expenses of the respective schemes.

4. Recurring Expenses of the Scheme

As per SEBI Circular No. MFD/CIR No. 04/11488/2003 datedJune 12, 2003, in case of Fund of Funds Scheme, the totalexpenses of the scheme including management fees shall notexceed 0.75% of the daily average net assets. These expensesare over and above the expenses charged by the respectiveUnderlying schemes.

The estimate of the ongoing fees and expenses of operatingthe Scheme on an annual basis, expressed as a percentageof the amount of the Scheme’s daily average net assets isgiven in the table below. The purpose of the tables is to assistthe investor in understanding the various heads of costs andexpenses that an investor in a Scheme will bear directly orindirectly.

Scheme Launched Initial Issue Borne by Borne by thein Expenses AMC Scheme**

(Rs. Lakhs) (Rs. Lakhs) (Rs. Lakhs)

38


Recurring Expenses Description(% per annum

of daily averagenet assets)

Investment Management andAdvisory Services Fees payable to AMC 0.60

Trustee Fees 0.05

Custodian Fees 0.02

Marketing and Selling Expense(incl. Agents commission) 0.01

Registrar and Transfer Agent Fees 0.02

Other Operational Expenses attributableto the scheme (including service taxon management fee & trustee fee) 0.05

Total Annual Recurring Expenses(Estimated) 0.75

These estimates are made in good faith by the InvestmentManager and are subject to change, both inter se and as anincrease or decrease in the estimated total annual recurringexpenses. Though the Investment Manager will make effortsto keep the recurring expenses to the minimum, actualexpenses under any head and / or the total expenses may bemore or less than the estimates. The Investment Managerretains the right to charge the actual expenses to the Fund,however the expenses charged will not exceed the statutorylimit prescribed by the Regulations.

The above estimates are based on an amount of Rs. 100crores for the Scheme and will change to the extent assetsare lower or higher.

The recurring expenses under the Scheme (includinginvestment and advisory fees) will be subject to the followingmaximum limits (as a percentage of Weekly Average NetAssets of the Scheme), as per Regulation 52.

The total recurring expenses of the Scheme including themanagement fees shall not exceed 0.75% of the daily averagenet assets. Expenses over and above the permitted limit underthe applicable Regulations will be borne by the AMC.

39


A. UNITHOLDERS’ RIGHTS1. Unitholders under the Scheme have a proportionate

right in the beneficial ownership of the assets of theScheme and to the dividend declared, if any, by the Fundunder the Scheme.

2. The Trustee shall be bound to make such disclosures tothe Unitholders as are essential in order to keep theminformed about any relevant information, especially whichmay have an adverse bearing on their investments.

3. If the Fund declares a dividend under the Scheme, it isrequired to dispatch dividend warrants within 30 daysfrom the date of declaration of the dividend.

4. The Fund is required to dispatch redemption chequeswithin 10 Working Days from the date of redemption.If the Fund fails to send the redemption cheques afterthe said 10 Working days, interest at the rate of 15%p.a. will be paid to the applicant and borne by the AMCfor the period from the day following the date of expiryof the said 10 Working days until the actual date of therefund.

5. The appointment of an AMC for the Fund may, with theprior approval of SEBI, be terminated by 75% of theUnitholders or by a majority of the Board of Directors ofthe Trustee.

6. Unitholders have the right to inspect all the documentslisted under the heading “Documents Available forInspection”.

7. 75% of the Unitholders of the Scheme can pass aresolution to wind up the Scheme.

8. The Trustee is obliged to convene a meeting of theUnitholders of the Scheme on the requisition of 75% ofthe Unitholders of the Scheme.

9. The Trustee is obliged to obtain the consent of theUnitholders -

a) whenever required to do so by SEBI in the interestof the Unitholders; or

b) whenever required to do so on a requisition madeby three-fourths of the Unitholders of any Scheme;or

c) when the majority of the Board of Directors of theTrustee decides to wind up or prematurely redeemthe Units.

10. The Trustee shall ensure that no change in thefundamental attributes of any scheme or the trust orfees and expenses payable or any other change whichwould modify the scheme and affects the interest ofUnitholders, is carried out unless,

i. a written communication about the proposedchange is sent to each Unitholder and anadvertisement is given in one English daily newspaperhaving nationwide circulation as well as in a

newspaper published in the language of the regionwhere the Head Office of the Fund is situated; and

ii. the Unitholders are given an option to exit at theprevailing Net Asset Value without any Exit Load.

11. For any change in the scheme features, the addendumdetailing such changes will be attached to the offerdocuments and abridged offer documents. Theaddendum will be circulated to all the distributors/brokersso that the same can be attached to all offer documentsand abridged offer documents already in stock. Theaddendum will also be sent alongwith the newslettersent to the Unitholders after the changes. Arrangementswill be made to display the changes/modifications in theoffer document in the form of a notice in all the investorservice centres and distributors/brokers office.

B. VOTING RIGHTS OF THE UNITHOLDERSSubject to the provisions of the Regulations as amended fromtime to time, the consent of the Unitholders shall be obtained,entirely at the option of the Trustee, either at a meeting ofthe Unitholders or through postal ballot. Only one Unitholderin respect of each folio or account representing a holdingshall vote and he shall have one vote in respect of eachresolution to be passed.

C. ACCOUNT STATEMENTAn Account Statement, stating the number of Units allotted/redeemed, will be sent to each Unitholder within 30 (Thirty)days from the date of the transaction. An Account Statementmay be sent to a Unitholder using e-mail with the consentof the Unitholder. Account Statements to be issued in lieu ofUnit Certificates under the Scheme are non-transferable.These Account Statements shall not be construed as proof oftitle and are only computer printed statements, indicating thedetails of transactions under the Scheme concerned duringthe relevant financial year and giving the closing balance ofUnits for the information of Unitholders. The Trustee mayissue a Unit Certificate in lieu of Account Statement in respectof Units held, to those Unitholders who request for the same,after receipt of a specific request from the Unitholderconcerned, at the cost and expense of the Unitholder orotherwise, as may be decided from time to time. Anydiscrepancy in the Account Statement / Unit Certificate shouldbe brought to the notice of the Fund/AMC immediately.Contents of the Account Statement / Unit Certificate will bedeemed to be correct if no error is reported within 30 daysfrom the date of Account Statement / Unit Certificate. Further,the Trustee also reserves the right to issue, on an ongoingbasis, in lieu of Account Statements, Transaction ConfirmationSlips, therein indicating the price and the Units debited orcredited to the Account of the Investor/Unitholder, alongwith the closing balance of his Account. Under this system,a periodical statement of holdings of the Investor in therelevant Scheme of KMMF will be given.

D. NAV INFORMATIONThe NAVs of the Scheme will be calculated and announcedby the Fund on each Working Day in at least two daily

V I I . U N I T H O L D E R S ’ R I G H T S A N D S E R V I C E S

40


newspapers. NAV information will also be posted, on a dailybasis, on the Fund’s website - www.kotakmutual.com and onthe AMFI website - www.amfiindia.com by 8.00 p.m. In caseof any delay, which may normally be due to non-receipt ofNAVs in time from the underlying schemes, in posting theNAVs of the Scheme, the reasons for such delay would beexplained to AMFI and SEBI by the next Working Day. If theNAVs are not available before commencement of businesshours on the following day due to any reason, Mutual Fundshall issue a press release providing reasons and explainingwhen the Mutual Fund would be able to publish the NAVs.

Investors may obtain information on loads on any WorkingDay by calling the office of the AMC or any of the InvestorService Centres. Information on applicability of loads will alsobe provided in the Account Statements.

E. DISCLOSURE OF INFORMATIONUNDER THE REGULATIONS

1. The Schemewise Annual Report / an abridged summarythereof, will be prepared and mailed to all Unitholders;as soon as may be but not later than six months fromthe date of closure of the relevant financial year. Wheneverthe report is sent in summary form, the full AnnualReport will be made available for inspection at theRegistered Office of the Trustee and a copy, made availableon request to the Unitholders on payment of a nominalfee.

2. The unaudited financial results will be published through

an advertisement in one English daily newspapercirculating in the whole of India and in a newspaperpublished in the language of the region where theRegistered Office of the Trustee is situated, before theexpiry of one month from the close of each half year, thatis the 31st of March and the 30th of September. Thesame will also be posted on the website of the Fund andthat of AMFI.

3. A complete statement of the portfolio of the Scheme willeither be sent to all Unitholders, or published by way ofan advertisement, before the expiry of one month fromthe close of each half year, that is the 31st of March andthe 30th of September, in one English daily newspapercirculating in the whole of India and in a newspaperpublished in the language of the region where the headoffice of the Trustee is situated. The same will also beposted on the website of the Fund.

4. In case any company has invested more than 5% of theNet Asset Value of any scheme of the Fund, investmentmade by that scheme or any other scheme of the Fundin that company or its subsidiaries will be disclosed, asrequired by the Regulations, to the Trustee and in thehalf-yearly and annual accounts, with justification forsuch investments. As on September 30, 2005, thefollowing companies have made investments in theschemes of the Fund in excess of 5% of the net assetvalue and during this period, other schemes of the Fundinvested in these companies.

(Rupees in Lakhs)

Company Schemes Investing Aggregate investmentsinvested Scheme(s) / Plan(s) made by the Scheme/(s)in by the in the Company for theCompany period under Regulation

Ashok Leyland Ltd. Kotak FMP Series II Kotak Midcap 226.71

Bajaj Auto Ltd. Kotak Cash Plus Kotak Balance 59.00

Bharti Tele-Ventures Ltd. Kotak Floater Kotak 30 4,024.45Short Term Kotak Liquid 7,417.75

Kotak MNC 1,063.56Kotak Income Plus 105.67

Britannia Industries Ltd. Kotak FMP Series I Kotak 30 742.78Kotak Midcap 1,191.95Kotak Opportunities 266.57

Finolex Cables Ltd. Kotak Balance Kotak Liquid 9,514.88Kotak Midcap 758.64

Finolex Industries Ltd. Kotak Balance Kotak Balance 31.73Kotak Liquid 2,000.00Kotak Income Plus 30.00

Grasim Industries Ltd. Kotak Flexi Debt Kotak 30 1,016.36Kotak Balance 197.83Kotak Bond 505.58Kotak Contra 1,051.51Kotak Flexi Debt 518.51Kotak Opportunities 228.54

Gujarat Gas Company Ltd. Kotak Bond Kotak 30 351.14Short Term Plan Kotak Balance 273.74

Kotak Income Plus 39.73Kotak Midcap 1,275.66

HCL Technologies Ltd. Kotak Bond Kotak 30 82.21Short Term Plan Kotak Technology 221.56

41


HDFC Bank Ltd. Kotak Floater Kotak Bond Short Term 2,495.58Short Term Kotak Floater Long Term 5,333.56

Kotak FMP- Series I 2,613.57Kotak Liquid 110,129.00Kotak Floater Short Term 5,544.46Kotak Income Plus 3,992.90

HDFC Ltd. Kotak MNC Kotak 30 400.32Kotak Bond 9,136.63Kotak Bond Short Term 8,311.95Kotak Floater Long Term 8,471.33Kotak Liquid 94,175.71Kotak Cash Plus 1,483.30Kotak Dynamic Income 1,525.65Kotak Flexi Debt 1,012.44Kotak Floater Short Term 45,886.99

Hero Honda Motors Ltd. Kotak Floater Kotak 30 995.53Short Term Kotak MNC 257.70

Kotak Income Plus 115.91

Hindalco Industries Ltd. Kotak Dynamic Kotak 30 635.90Income Kotak Bond Short Term 551.49

ICICI Bank Ltd. Kotak Liquid Kotak 30 916.43Kotak Bond 536.66Kotak Bond Short Term 2,561.63Kotak Floater Long Term 12,919.77Kotak Liquid 92,122.89Kotak Flexi Debt 4,547.86Kotak Floater Short Term 15,354.38Kotak Income Plus 942.49Kotak Opportunities 513.72

ICICI Securities Ltd. Kotak Floater Kotak Floater Long Term 500.00Short Term Kotak Liquid 7,418.70

Kotak Contra 3,000.00Kotak Floater Short Term 3,000.00

Indian Aluminium Company Ltd. Kotak Floater Kotak Bond 1,500.00Short Term Kotak Liquid 1,000.00

Indo Gulf Fertiliser Ltd. Kotak Flexi Debt Kotak 30 42.27Kotak Contra 1,265.75

Indusind Bank Kotak Floater Kotak Bond Short Term 483.59Long Term Kotak Liquid 1,188.09

Industrial Development Bank of India Kotak Bond Kotak 30 81.29Short Term Plan Kotak Bond 15,058.56

Kotak Bond Short Term 15,186.33Kotak Floater Long Term 10,236.16Kotak Liquid 41,780.05Kotak MNC 101.70Kotak Flexi Debt 528.45Kotak Floater Short Term 20,796.73Kotak Income Plus 2,743.54

Infrastructure Development Kotak Floater Kotak Bond 4,975.29Finance Co. Ltd Short Term Kotak Floater Long Term 3,523.97

Kotak Liquid 11,104.25Kotak Flexi Debt 508.72Kotak Floater Short Term 17,292.77

Infrastructure Leasing Financial Kotak Liquid Kotak Bond Short Term 500.00Services Ltd. Kotak FMP- ( 8) 1,000.00

Kotak Liquid 72,773.92Kotak Cash Plus 2,488.05Kotak Contra 500.00

(Rupees in Lakhs)


42


Kotak Floater Short Term 14,080.55Kotak Income Plus 500.00Kotak Midcap 1,500.00

ITC Ltd. Kotak Bond Kotak 30 2,153.00Short Term Plan Kotak Balance 21.05

Kotak MNC 1,854.06Kotak Income Plus 436.41Kotak Opportunities 248.87

Jammu & Kashmir Bank Kotak Cash Plus Kotak Bond Short Term 1,427.38Kotak Floater Long Term 3,811.60Kotak FMP- Series I 2,360.60Kotak Liquid 24,100.26Kotak Flexi Debt 1,906.58Kotak Floater Short Term 11,833.55Kotak Income Plus 29.64

Jet Airways (India) Ltd. Kotak Floater Kotak 30 363.77Long Term

Kotak Mahindra Bank Ltd. Kotak Liquid Kotak Liquid 4,979.82

Maruti Udyog Ltd. Kotak Floater Kotak 30 879.65Short Term Kotak Balance 82.90

Kotak MNC 1,395.30Kotak Global India 1,184.19Kotak Income Plus 358.63

National Housing Bank Kotak Floater Kotak Floater Long Term 6,493.46Short Term Kotak Liquid 45,439.89

Kotak Flexi Debt 1,511.86Kotak Floater Short Term 13,515.51Kotak Midcap 1,486.83

Navneet Publications (India) Ltd. Kotak Bond Kotak Contra 500.00Short Term Plan Kotak Floater Short Term 500.00

Punjab National Bank Kotak Bond Kotak 30 849.85Short Term Plan Kotak Balance 264.17

Kotak Bond Short Term 1,061.45Kotak Liquid 4,716.23Kotak Cash Plus 350.67Kotak Contra 2,123.27Kotak Income Plus 5.49Kotak Midcap 507.00Kotak Opportunities 405.56

Raymond Ltd. Kotak Dynamic Kotak Balance 78.78Income Kotak Floater Long Term 1,000.00

Kotak Liquid 7,500.00Kotak Global India 768.26

Reliance Industries Ltd. Kotak Floater Kotak 30 657.88Short Term Kotak Bond 1,097.94

Kotak Bond Short Term 1,537.75Kotak Floater Long Term 1,082.13Kotak Cash Plus 999.25Kotak Contra 683.35Kotak Flexi Debt 547.97Kotak Floater Short Term 1,573.41Kotak Opportunities 64.82

State Bank of India Kotak Global India Kotak 30 4,078.61Kotak Balance 736.28Kotak Bond 2,303.11Kotak Bond Short Term 2,868.50Kotak Floater Long Term 1,087.63Kotak Liquid 1,087.63

(Rupees in Lakhs)


43


Kotak Flexi Debt 543.67Kotak Floater Short Term 1,087.63Kotak Income Plus 887.87

Sterlite Industries (India) Ltd Kotak Bond Kotak 30 886.78Short Term Plan Kotak Bond 1,000.00

Kotak Bond Short Term 300.00Kotak Floater Long Term 4,100.00Kotak Liquid 9,900.00Kotak Contra 2,100.00Kotak Floater Short Term 5,100.00Kotak Income Plus 500.00Kotak Midcap 7,830.70

Tata Chemicals Ltd. Kotak Flexi Debt Kotak Cash Plus 15.82Kotak Contra 714.88Kotak Midcap 705.82

Tata Consultancy Services Ltd. Kotak Bond Kotak 30 2,218.09Short Term Plan Kotak Balance 61.38

Kotak Technology 855.98Kotak Cash Plus 218.80Kotak Contra 1,277.33Kotak Global India 1,567.94Kotak Income Plus 304.16

Tata Motors Ltd. Kotak Floater Kotak 30 1,241.79Short Term Kotak Bond Short Term 1,487.84

Kotak Liquid 1,039.78Kotak Global India 1,039.32Kotak Income Plus 115.25

Tata Steel Limited Kotak Liquid Kotak 30 1,951.05Kotak Balance 1,051.57Kotak Contra 1,746.05Kotak Global India 304.04Kotak Income Plus 511.26

TVS Motor Company Ltd. Kotak Dynamic Kotak 30 330.12Income

UCO Bank Kotak Floater Kotak Bond Short Term 472.53Long Term Kotak Floater Long Term 2,832.68

Kotak Liquid 16,129.63Kotak Flexi Debt 470.89Kotak Floater Short Term 5,183.06

UTI Bank Ltd. Kotak Liquid Kotak Bond 555.85Kotak Floater Long Term 1,943.76Kotak FMP- Series VIII 2,493.48Kotak Liquid 53,478.38Kotak Floater Short Term 6,953.85Kotak Income Plus 37.59Kotak Opportunities 128.20

Videsh Sanchar Nigam Ltd. Kotak Liquid Kotak 30 932.33Kotak Opportunities 198.77

Vijaya Bank Kotak Opportunities Kotak Balance 378.76Kotak Income Plus 26.12Kotak Midcap 868.88Kotak Opportunities 188.77

Wipro Ltd. Kotak Bond Kotak 30 1,870.96Short Term Plan Kotak Balance 177.09

Kotak Technology 843.82Kotak Global India 1,164.90Kotak Income Plus 55.74

These investments comprise debt and equity instruments and were made solely on the basis of sound fundamentals ofthese companies.

(Rupees in Lakhs)


44


F. DURATION OF THE SCHEMEThe duration of the Scheme is valid upto three years from thedate of allotment. However, the Scheme may be wound upif:-

i. There are changes in the capital markets, fiscal laws orlegal system, or any event or series of event occurs,which, in the opinion of the Trustee, requires the Schemeto be wound up; or

ii. 75% of the Unitholders of the Scheme pass a resolutionthat the Scheme be wound up; or

iii. SEBI directs the Scheme to be wound up in the interestsof the Unitholders.

iv. As per SEBI Circular No. SEBI/IMD/CIR No.10/22701/03dated December 12, 2003, the Scheme shall have aminimum of 20 investors and no single investor shallaccount for more than 25% of the corpus of theScheme(s). In case of non-fulfillment with either of theabove two conditions, the investor’s money would berefunded, in full, immediately after the close of the NewFund Offer of the Scheme.

Where the Scheme is to be wound up pursuant to the aboveRegulations, the Trustee shall give notice of the circumstancesleading to the winding up of the Scheme:-

i. to SEBI; and

ii. in two daily newspapers having circulation all over Indiaand also in a vernacular newspaper circulating in theplace where the Mutual Fund is established.

G. PROCEDURE AND MANNER OF WINDING UPi. The Trustee shall call a meeting of the Unitholders to

consider and pass necessary resolutions by simple majorityof the Unitholders present and voting at the meeting forauthorising the Trustee or any other person to take stepsfor winding up the Scheme concerned.

ii. a) The Trustee or the person authorised as above, shalldispose off the assets of the Scheme concerned inthe best interest of the Unitholders of that Scheme.

b) The proceeds of the sale made in pursuance of theabove, shall, in the first instance, be utilised towardsdischarge of such liabilities as are properly due underthe Scheme and after making appropriate provisionfor meeting the expenses connected with suchwinding up, the balance shall be paid to theUnitholders in proportion to their respective interestsin the assets of the Scheme as on the date whenthe decision for the winding up was taken.

iii. On completion of the winding up, the Trustee shallforward to the Board and the Unitholders, a report onthe winding up containing particulars such ascircumstances leading to the winding up, steps taken forthe disposal of the assets of the Fund before winding up,expenses of the Fund for winding up, net assets availablefor distribution to the Unitholders and a certificate fromthe Auditors of the Scheme concerned.

iv. Notwithstanding anything contained herein, theprovisions of the Regulations in respect of disclosure ofhalf-yearly reports and annual reports shall continue toapply.

After the receipt of the report referred to above under‘Procedure and Manner of Winding Up’, if SEBI is satisfiedthat all measures for winding up of the Scheme concernedhave been completed, the Scheme shall cease to exist.

H. SERVICES TO UNITHOLDERS1. Investor ServicesIt is the endeavour of the Fund to provide consistently highquality service to its investors. This encompasses all interactionby the clients with the Fund. The Fund strives to upgrade thequality of services through implementation of technologyand through ensuring quality consciousness amongst its servicepersonnel and agencies associated with it. The AMC hasintroduced Systematic Transfer Plan as well as a facility underSystematic Withdrawal Plan to withdraw automatically theamount of appreciation, if any, on a monthly or a quarterlybasis for various schemes launched by Kotak Mahindra MutualFund. However, no such facility is currently offered under thescheme.

The Fund strives to provide a high degree of convenience forthe investors’ dealings with itself and it is the constantendeavour of the Fund to increase this level of convenience.

2. Facilitating Enquiries and Transactionsa. Investor Service Centres in important citiesCAMS, which is the Registrar to the Fund, provides InvestorServices through its ISCs. Unitholders’ enquiries andtransactions during business hours are entertained at the ISCsat the addresses listed elsewhere in this Offer Document.

b. Master AccountUnless otherwise requested by the Unitholder, one MasterAccount Number is assigned for one entity investing in differentSchemes of the Fund, provided while investing for a secondtime or any time thereafter, the Unitholder quotes his existingAccount Number. In such a case one consolidated AccountStatement is provided.

c. Meeting in PersonA responsible official of the Asset Management Company willbe available every business day between 3.00 p.m. and 4.00p.m. for a personal meeting with any Unitholder at theRegistered Office of the AMC. The purpose of this facility isto discuss the investment needs of the client, address anyqueries on the Mutual Fund and to provide other services.

d. Finding Solutions to ProblemsThe Fund will follow up with the Investor Service Centres andthe Registrar on complaints and enquiries received frominvestors. The Fund will strive to speedily resolve investorcomplaints.

e. Unitholder Grievances Redressal MechanismInvestor grievances will normally be received at the AMCoffice or at any of the Investor Services Centres or directly bythe Registrar. All grievances will then be forwarded to theRegistrar, if required, for necessary action. The complaints willclosely be followed up with the Registrar to ensure timelyredressal and prompt investor service.

Mr. Vinod Venkateswaran has been appointed as the InvestorRelations Officer for the Fund. All related queries should beaddressed to:

45


Mr. Vinod VenkateswaranKotak Mahindra Asset Management Company Limited91/92, 9th Floor, Sakhar Bhavan230, Nariman Point, Mumbai - 400 021Tel: 5638 4444Fax: 5638 4455e-mail: [email protected]

f) History of Investor Complaints for the periodApril 01, 2002 to January 27, 2006 :

These were mostly in the nature of queries and requests, andwere attended to as follows:

Description No. of Resolved within Pendingqueriesreceived

1 day 2 days 3 days > 3days

Change ofAddress 36657 34578 870 689 519 1Change ofBank Mandate 41128 38714 945 810 657 2Non-receipt ofAccountStatement 95 77 11 3 4 0Others Queries 98585 87113 4891 2335 4130 116Total 176465 160482 6717 3837 5310 119ServiceStandard 100.00 90.94 3.81 2.17 3.01 0.07

I. TAX BENEFITS OF INVESTING IN THEMUTUAL FUND

The information set out below outlines the tax implicationswith respect to the Unitholders of the Scheme and withrespect to the Mutual Fund and is based on relevant provisionsof the Indian Income Tax Act, 1961 and Wealth Tax Act, 1957prevailing as on February 13, 2006. Since the Informationbelow is based on the relevant provisions as on February 13,2006 any subsequent changes in the relevant provisionscould affect the tax implications. Further, except for theabove procedure, Price Waterhouse has not performed anyother services in connection with any other data or informationincluded in the Offer Document.

THE FOLLOWING INFORMATION IS PROVIDED FORGENERAL INFORMATION PURPOSES ONLY. IN VIEW OFTHE INDIVIDUAL NATURE OF TAX IMPLICATIONS, EACHINVESTOR IS ADVISED TO CONSULT HIS OR HER OWNTAX ADVISER WITH RESPECT TO THE SPECIFIC TAXIMPLICATIONS ARISING OUT OF HIS OR HERPARTICIPATION IN THE SCHEME.

A. For the Unitholders1. Income from the Mutual Fund received by Unitholders

would be tax free in the hands of the Unitholders as perthe provisions of section 10(35) of the Income-taxAct, 1961 (‘Act’).

2. Under Section 2(29A) of the Act, read with section 2(42A)of the Act, a unit of a Mutual Fund is treated as a longterm capital asset if the same is held for more than 12months. If the unit is held for 12 months or less, the sameis treated as a short term capital asset.

Long term capital gains on sale of units, will be taxedunder section 112 of the Act. Under Section 112 of theAct, capital gains arising on the transfer of long termcapital assets are subject to tax at the rate of 20%. Thecapital gains will be computed by deducting theexpenditure incurred wholly and exclusively in connectionwith such transfer and the cost as inflated indexed costof acquisition of the unit from the sale consideration.However, the maximum tax payable on long term capitalgains on units is restricted to 10% of capital gainscalculated without indexation of the cost of acquisition.

In case of an individual or HUF, being a resident, wherethe total income as reduced by the long term capitalgains is below the maximum amount not chargeable totax (Rs.100,000 in case of all individuals, Rs. 135,000 incase of women and Rs.185,000 in case of senior citizens),the long term capital gains shall be reduced to the extentof the shortfall and only the balance long term capitalgains will be subject to the flat rate of taxation.

In addition to the aforesaid tax, in the case of anindividuals, HUFs or Association of Persons (AOP), wherethe income exceeds Rs. 10,00,000 a surcharge of 10%,in the case of companies and artificial juridical personsa surcharge of 10%, and in case of foreign companiesa surcharge of 2.5% of such tax liability is also payable.A 2% education cess on total income tax (includingsurcharge) is payable by all categories of taxpayers.

3. The capital loss resulting from sale of units would beavailable for setting off against other capital gains madeby the investor and would reduce the tax liability of theinvestor to that extent. However, losses on transfer oflong term capital assets would be allowed to be set-offonly against gains from transfer of long-term capitalassets and the balance long-term capital loss shall becarried forward separately for a period of eight assessmentyears to be set off only against long-term capital gains.

4. Where a person buys any units within a period of threemonths before the record date and sells such units withinnine months after such date, the dividend income onsuch units being exempt from tax, then the capital loss,if any, on such sale to the extent of dividend incomecannot be set off against other gains.

5. Where a person buys units (original units) within a periodof three months before the record date, receives bonusunits on such original units, and then sells the originalunits within a period of nine months from the recorddate and continues to hold the bonus units, then the lossincurred on the original units shall not be allowed to beset off against other profits but shall be deemed to bethe cost of the bonus units.

6. The long term capital gains on transfer of units wouldnot be subject to tax in terms of section 54EC of the Actif the entire capital gain realized in respect of such unitsis invested within six months of the date of transfer, inbonds which are redeemable after three years issued onor after April 1, 2000 by National Bank of Agriculturaland Rural Development, National Highways Authority ofIndia, Rural Electrification Corporation Limited, NationalHousing Bank or Small Industries Development Bank of

46


India. However, if the amount invested in bonds is lessthan the capital gains realized then only proportionatecapital gains would be exempt from tax. If the bonds soacquired are transferred or converted into money or anyloan or advance is taken on security of such bond, withinthree years from the date of its acquisition, the amountof capital gains arising from transfer of original assetwhich was not charged to tax, will be deemed to be theincome by way of long term capital gains of the previousyear in which bonds are transferred or otherwiseconverted into money.

7. The long term capital gains on transfer of units wouldnot be subject to tax in terms of section 54ED of the Actif the entire capital gain realized in respect of such unitsis invested within six months of the date of transfer inequity shares forming part of eligible issue of capital asdefined in the said section. However, if the amountinvested is less than the capital gains realized, onlyproportionate capital gains would be exempt from tax.If the equity shares so acquired are sold or otherwisetransferred within one year from the date of theiracquisition, the amount of capital gains arising fromtransfer of original asset which was not charged to tax,will be deemed to be the income by way of long-termcapital gains of the previous year in which such equityshares are sold or otherwise transferred.

8. Short term capital gains arising to a unitholder will betaxed at the normal rate applicable to that unitholder asper the provisions of the Act.

9. As per the provisions of Section 194K and 196A of theAct, no deduction of tax at source shall be made fromincome credited or paid by a mutual fund to a Unitholder.

10. As per circular no. 715 dated August 8, 1995 issued bythe CBDT in case of resident Unitholders, no tax isrequired to be deducted at source from capital gainsarising at the time of repurchase or redemption of theunits.

11. Under Section 195 of the Act, the Mutual Fund is required

to deduct tax at source at the rate of 20% on any longterm capital gains chargeable to tax if the payeeUnitholder is a non resident. In respect to short-termcapital gains, tax is required to be deducted at source atthe rate of 30% if the payee Unitholder is a non-residentnon-corporate and at the rate of 40% if the payeeUnitholder is a foreign company. Further, the aforesaidtax to be deducted is required to be increased by asurcharge in case of an individual, HUF or AOP, wherethe sum payable exceeds Rs. 10 lakhs by 10%, in caseof companies by 2.5% and in case of an artificial juridicalperson by 10% of such tax liability. The above rates,including surcharge, are to be increased by a 2%education cess for deductions from all categories oftaxpayers.

As per circular no. 728 dated October 30, 1995 issuedby the CBDT, in the case of a remittance to a country withwhich a Double Tax Avoidance Agreement (DTAA) is inforce, the tax should be deducted at the rate providedin the Finance Act of the relevant year or at the rateprovided in the DTAA, whichever is more beneficial tothe assessee. In order for the Unitholder to obtain thebenefit of a lower rate available under a DTAA, theUnitholder will be required to provide the Mutual Fundwith a certificate obtained from his Assessing Officerstating his eligibility for the lower rate.

12. Mutual Fund units are exempt from wealth tax.

B. For the Mutual Fund

1. Kotak Mahindra Mutual Fund is a Mutual Fund registeredwith SEBI and as such is eligible for benefits underSection 10(23D) of the Act. Accordingly, its entire incomeis exempt from tax.

2. Mutual Funds are required to pay distribution tax onincome distributed by it at the rate of 14.025% in thecase of distributions to individuals and HUFs. An increasedrate of 22.44% is applicable for distributions made topersons other than an individual or a HUF.

47


A. POWER TO MAKE RULESSubject to the Regulations, the Trustee may, from time totime, prescribe such terms and make such rules as may benecessary for the purpose of giving effect to the Scheme,with power to the AMC to add to, alter or amend all or anyof the terms and rules that may be framed from time to time.

B. POWER TO REMOVE DIFFICULTIESIf any difficulty arises in giving effect to the provisions of theScheme, the Trustee may, subject to the Regulations, doanything not inconsistent with such provisions, which appearsto it to be necessary, desirable or expedient, for the purposeof removing such difficulty. Without diluting in any way thepowers granted to the Trustee as aforesaid, the Trustee hasthe following powers:

1. Right to change the load structure;

2. Right to change cut-off times for purchase andredemption of Units;

3. Right to change minimum amounts of purchase andredemption;

4. Right to determine frequency and amount of dividend;and the right not to declare dividend, where distributablesurplus is inadequate; and

5. Right to add to or alter the modes of payment by theinvestor for purchase of Units.

The exercise of these powers, reserved by the Trustee underthis Offer Document vis-a-vis prospective investments in any

of the schemes, shall not constitute change in the fundamentalattributes of the Scheme.

C. TRANSACTIONS WITH ASSOCIATECOMPANIES

The Fund may from time to time, for the purpose of conductingits normal business, use the services of Kotak Securities Limited,which is a stock-broking company (an associate company),the Sponsor and various subsidiaries of the Sponsor. Thesesubsidiaries of the Sponsor, as on the date of this OfferDocument, include Kotak Mahindra Investments Limited(formerly known as Hamko Financial Services Limited) aninvestment company; Kotak Mahindra Trustee CompanyLimited (Trustee to the Fund); Kotak Mahindra Prime Limited,an auto finance company; Kotak Mahindra Securities Limited,a broker on NSE in the Regular debt market segment; KotakMahindra Capital Company Limited, a Category 1 MerchantBanker registered with SEBI and a Primary Dealer appointedby RBI; Kotak Mahindra (International) Limited; KotakMahindra (UK) Limited; Global Investment Opportunities FundLimited, an investment company, the subsidiary companies ofKotak Mahindra Capital Company Limited; Kotak MahindraOld Mutual Life Insurance Company Limited, the life insurancejoint venture of Kotak Mahindra Bank Limited; Kotak MahindraPrivate - Equity Trustee Company Limited, a private venturefund and Kotak Forex Brokerage Limited, a company dealingin foreign exchange and Kotak Mahindra Inc.

The Fund has neither invested in Group Companies, nortaken any underwriting obligations with respect to issues ofassociate companies.

V I I I . O T H E R M A T T E R S

Following subscriptions have been made in issues lead managed, arranged or book-running lead managed by Kotak MahindraCapital Company Limited during the period from April 01, 2002 to September 30, 2005.

Period Scheme Security Instrument Nature of AmountSubscribed (Rs. in Lakhs)

2002-2003 Kotak Balance Punjab National Bank Equity 93.00Kotak MNC I - Flex Solutions Limited Equity 79.50Kotak Tech I - Flex Solutions Limited Equity 492.50Kotak 30 I - Flex Solutions Limited Equity 79.50Kotak Balance Union Bank of India Equity 96.00Kotak Balance Divi's Laboratories Limited Equity 10.36Kotak 30 Divi's Laboratories Limited Equity 13.44Kotak Bond 7.30% LIC Housing Finance Limited NCD Option II Bond / NCD 500.00Kotak Bond Short Term Pass Through Certificates issued by India MBS 2002,

Series I Trust -27, India MBS 2002Certificates Series 'I-A' Bond / NCD 499.22

2003-2004 Kotak Balance UCO Bank Limited Equity 36.00Kotak 30 UCO Bank Limited Equity 36.00Kotak MNC Maruti Udyog Limited Equity 231.25Kotak Bond Short Term Pass Through Certificate - BHPC Auto Securitisation

Trust (Series A1) June 2003 Bond / NCD 1,487.84Kotak Income Plus Bank of Maharashtra Equity 460.00Kotak 30 Biocon Limited Equity 850.19Kotak Balance Biocon Limited Equity 327.29Kotak Income Plus Biocon Limited Equity 2,104.20Kotak Global India Biocon Limited Equity 2,496.06

48


Kotak 30 Dredging Corporation of India Limited Equity 799.98Kotak Balance Dredging Corporation of India Limited Equity 219.96Kotak Income Plus Dredging Corporation of India Limited Equity 2,100.00Kotak Balance Hindustan Inks and Resins Limited Equity 15.28Kotak 30 IBP Company Limited Equity 93.00Kotak Balance IBP Company Limited Equity 155.00Kotak Income Plus IBP Company Limited Equity 62.00Kotak 30 Indian Petrochemicals Corporation Limited Equity 736.07Kotak Balance Indian Petrochemicals Corporation Limited Equity 332.96Kotak Income Plus Indian Petrochemicals Corporation Limited Equity 2,138.61Kotak 30 Indraprastha Gas Limited Equity 720.00Kotak Balance Indraprastha Gas Limited Equity 216.00Kotak Income Plus Indraprastha Gas Limited Equity 1,272.00Kotak 30 Oil and Natural Gas Corporation Limited Equity 1,063.80Kotak Balance Oil and Natural Gas Corporation Limited Equity 422.63Kotak Income Plus Oil and Natural Gas Corporation Limited Equity 2,716.95Kotak Global India Oil and Natural Gas Corporation Limited Equity 3,210.08Kotak 30 Patni Computer Systems Limited Equity 805.00Kotak Balance Patni Computer Systems Limited Equity 322.00Kotak Tech Patni Computer Systems Limited Equity 414.00Kotak Income Plus Patni Computer Systems Limited Equity 2,024.00Kotak Global India Patni Computer Systems Limited Equity 2,530.00Kotak 30 T.V. Today Network Limited Equity 912.00Kotak Balance T.V. Today Network Limited Equity 458.38Kotak Income Plus T.V. Today Network Limited Equity 2,148.90Kotak Liquid Corporate Loan Securitisation Series II Trust 2004 Bond / NCD 1,499.17Kotak FMP (8) Corporate Loan Securitisation Series II Trust 2004 Bond / NCD 1,499.17Kotak Liquid Corporate Loan Securitisation Series IV Trust 2004 Bond / NCD 1,011.90

2004-2005 Kotak 30 Gateway Distriparks Ltd. Equity 1238.59Kotak 30 ICICI Bank Ltd. Equity 369.60Kotak 30 National Thermal Power Corporation Ltd. Equity 1329.03Kotak 30 New Delhi Television Limited Equity 600.60Kotak 30 Punjab National Bank Equity 1474.20Kotak Balance Gateway Distriparks Ltd. Equity 232.63Kotak Balance ICICI Bank Ltd. Equity 113.40Kotak Balance National Thermal Power Corporation Ltd. Equity 258.97Kotak Balance New Delhi Television Limited Equity 309.40Kotak Balance Punjab National Bank Equity 275.89Kotak Income Plus Dena Bank Equity 251.10Kotak Income Plus Gateway Distriparks Ltd. Equity 469.54Kotak Income Plus ICICI Bank Ltd. Equity 861.00Kotak Income Plus National Thermal Power Corporation Ltd. Equity 1156.98Kotak Income Plus New Delhi Television Limited Equity 1190.00Kotak Income Plus Punjab National Bank Equity 562.77Kotak Opportunities Gateway Distriparks Ltd. Equity 374.35Kotak Opportunities National Thermal Power Corporation Ltd. Equity 472.32Kotak Opportunities Punjab National Bank Equity 445.07Kotak Opportunities Dena Bank Equity 216.00Kotak Midcap Dena Bank Equity 747.90Kotak Midcap Gateway Distriparks Ltd. Equity 2879.97Kotak Midcap Jet Airways (India) Ltd. Equity 2499.50Kotak Midcap Punjab National Bank Equity 5090.14Kotak Liquid LIC Housing Finance Ltd. Debt 2500.00Kotak Liquid Pass Through Certificate - VE Trust VIII Series A Senior Debt 2500.00

Half Year Kotak 30 HT Media Limited Equity 1313.85Ended Kotak 30 IL&FS Investsmart Limited Equity 437.50September Kotak 30 Infrastructure Development Finance Company Limited Equity 1474.8530, 2005 Kotak 30 Allahabad Bank Equity 575.63

Kotak Balance HT Media Limited Equity 575.77


49


Kotak Balance IL&FS Investsmart Limited Equity 125.00Kotak Balance Infrastructure Development Finance Company Limited Equity 325.04Kotak Balance Allahabad Bank Equity 153.46Kotak Contra Infrastructure Development Finance Company Limited Equity 5946.94Kotak Income Plus HT Media Limited Equity 305.79Kotak Income Plus IL&FS Investsmart Limited Equity 125.00Kotak Income Plus Infrastructure Development Finance Company Limited Equity 390.73Kotak Income Plus Allahabad Bank Equity 153.46Kotak Midcap Allsec Technologies Ltd. Equity 249.96Kotak Midcap HT Media Limited Equity 2655.87Kotak Midcap IL&FS Investsmart Limited Equity 1125.00Kotak Midcap Infrastructure Development Finance Company Limited Equity 3388.24Kotak Midcap Allahabad Bank Equity 959.33Kotak Opportunities HT Media Limited Equity 590.72Kotak Opportunities IL&FS Investsmart Limited Equity 187.50Kotak Opportunities Infrastructure Development Finance Company Limited Equity 633.35Kotak Opportunities Allahabad Bank Equity 230.25Kotak Tech Allsec Technologies Ltd. Equity 249.96Kotak Floater Long Term BHPC BHPC Auto Securitisation Trust Aug. 05

Ser-A 15/06/2007 Debt 1493.52Kotak Flexi Debt BHPC BHPC Auto Securitisation Trust Aug. 05

Ser-A 15/06/2007 Debt 995.68Kotak Bond BHPC BHPC Auto Securitisation Trust Sept. 05 Ser Debt 496.40Kotak Bond Short Term BHPC BHPC Auto Securitisation Trust Sept. 05 Ser Debt 496.40Kotak Cash Plus BHPC BHPC Auto Securitisation Trust Sept. 05 Ser Debt 992.80Kotak Floater Long Term BHPC BHPC Auto Securitisation Trust Sept. 05 Ser Debt 496.40Kotak Flexi Debt BHPC BHPC Auto Securitisation Trust Sept. 05 Ser Debt 893.52

During the last three fiscal years, the Fund has had the following transactions with associate companies:(Rs. in Lakhs)

Nature of Period Kotak Gilt Kotak Gilt Kotak Gilt Kotak 30 Kotak Kotak Kotak Kotak Kotak Kotak Paid toTransaction Savings Investment Serial Plans Balance Bond Bond Bond Tech MNC

Plan Plan Serial Plan Short TermPlan

Commission / 2002-03 1.64 74.58 0.01 9.65 5.65 129.47 – 19.43 3.18 1.16 KotakPromotional 2003-04 5.03 51.31 0.01 15.9 7.79 90.32 – 22.83 3.92 2.55 Securitiesexpenses for 2004-05 0.21 15.00 # 47.26 2.65 18.56 7.73 2.77 4.00 LimitedDistribution ofUnits

Half Year 0.04 1.90 5.89 2.32 1.36 0.32 0.68 0.34endedSeptember30, 2005

Brokerage 2002-03 – – – 3.22 1.5 – – – 1.72 0.23 Kotaktowards 2003-04 – – – 5.62 1.08 – 1.07 0.47 SecuritiesPurchase and 2004-05 – – – 8.65 0.57 – – 0.07 3.51 LimitedSale ofInvestments

Half Year – – 2.03 – – – – 2.61endedSeptember30, 2005

Brokerage 2002-03 – – – – – – – 0.01 – – Kotaktowards 2003-04 MahindraPurchase and 2004-05 – – – – – – – – – – SecuritiesSale of LimitedInvestments


50


Commission / 2002-03 0.3 0.19 – – – 3.8 – 7.05 – – KotakPromotional 2003-04 0.84 0.02 # 0.05 – 0.7 – – Mahindraexpenses for 2004-05 0.07 0.01 – – # 0.01 – 0.06 – – CapitalDistribution of CompanyUnits Limited

Half Year 0.02 # – – – # – –endedSeptember30, 2005

Commission / 2003-04 1.16 0.83 10.82 0.72 4.84 5.43 0.01 0.48 KotakPromotional 2004-05 0.02 12.84 – 49.03 0.33 0.55 4.68 0.52 12.62 Mahindraexpenses for BankDistribution Limitedof Units

Half Year # 0.28 10.78 12.77 0.03 0.44 0.05 1.80endedSeptember30, 2005

Charges on 2003-04 0.35 0.26 0.03 0.03 Kotakbanking 2004-05 0.02 # – 1.61 0.20 0.26 – – – MahindraServices Bank

Half Year # # 1.04 0.22 # # # #Limited

endedSeptember30, 2005

Nature of Period Kotak Kotak Kotak Kotak Kotak Kotak Kotak Kotak Kotak Kotak Paid toTransaction Income Global Liquid Mahindra Floater Dynamic FMP (8) Equity Opportu- Floater

Plus India Fixed Short Income FOF nities LongMaturity Term Term

Plans

Commission / 2002-03 39.66 0.15 – – – – – KotakPromotional 2003-04 3.53 341.53 51.06 1.24 0.46 0.21 – – – – Securitiesexpenses for 2004-05 2.48 56.01 110.43 8.66 0.70 0.01 235.78 43.05 1.71 LimitedDistributionof Units

Half year 0.19 4.61 30.36 2.40 1.30 10.42 1.09endedSeptember30, 2005

Brokerage 2002-03 – – – Kotaktowards 2003-04 1.18 2.6 SecuritiesPurchase and 2004-05 0.89 4.15 – – – – 2.26 – LimitedSale ofInvestments

Half year 0.12 2.04 – – – 0.90 –endedSeptember30, 2005

Brokerage 2002-03 – – – Kotaktowards 2003-04 MahindraPurchase and 2004-05 – – – – – – – – – – SecuritiesSale of LimitedInvestments

(Rs. in Lakhs)

Nature of Period Kotak Gilt Kotak Gilt Kotak Gilt Kotak 30 Kotak Kotak Kotak Kotak Kotak Kotak Paid toTransaction Savings Investment Serial Plans Balance Bond Bond Bond Tech MNC

Plan Plan Serial Plan Short TermPlan

51


Commission / 2002-03 9.5 - - KotakPromotional 2003-04 0.54 Mahindraexpenses for 2004-05 - - 0.04 # - - - # CapitalDistribution Companyof Units Limited

Half year - - 0.12 - - - - -endedSeptember30, 2005

Commission / 2003-04 7.30 77.78 10.65 3.42 5.25 KotakPromotional 2004-05 6.89 42.13 29.39 16.99 1.58 3.02 52.87 29.84 7.50 Mahindraexpenses for BankDistribution Limitedof Units

Half year 0.27 5.62 12.66 3.32 6.67 39.21 2.21endedSeptember30, 2005

Charges on 2003-04 1.17 0.83 # 0.10 Kotakbanking 2004-05 0.46 - - - - - 0.43 0.40 - MahindraServices Bank

Half year 0.64 # 0.02 # # # #Limited

endedSeptember30, 2005

Nature of Period Kotak Kotak Kotak Kotak Kotak Kotak Kotak Kotak Kotak Paid toTransaction Midcap Dynamic Flexi FMP FMP FMP FMP Contra Cash

FOF Debt Series VIII Series II Series IV Series I Plus

Commission / 2004-05 46.47 1.11 0.07 - - # # KotakPromotional Securitiesexpenses for LimitedDistributionof Units

Half year ended 49.47 0.75 0.06 - # # 113.54 -September 30, 2005

Brokerage 2004-05 5.75 - - - - - - Kotaktowards SecuritiesPurchase and LimitedSale ofInvestments

Half year ended 6.57 - - - - - 5.35 1.04September 30, 2005

Commission / 2004-05 - - # - - - - KotakPromotional Mahindraexpenses for CapitalDistribution Companyof Units Limited

Half year ended - - - - - - - -September 30, 2005

Commission / 2004-05 323.83 224.83 1.79 0.18 0.01 0.04 0.01 KotakPromotional Mahindraexpenses for BankDistribution Limitedof Units

Half year endedSeptember 30, 2005 250.78 - 1.33 0.06 0.03 0.63 619.59 -

Nature of Period Kotak Kotak Kotak Kotak Kotak Kotak Kotak Kotak Kotak Kotak Paid toTransaction Income Global Liquid Mahindra Floater Dynamic FMP (8) Equity Opportu- Floater

Plus India Fixed Short Income FOF nities LongMaturity Term Term

Plans

52


Nature of Period Kotak Kotak Kotak Kotak Kotak Kotak Kotak Kotak Kotak Paid toTransaction Midcap Dynamic Flexi FMP FMP FMP FMP Contra Cash

FOF Debt Series VIII Series II Series IV Series I Plus

Charges on 2004-05 1.20 - # - - - - Kotakbanking Services Mahindra

BankLimited

Half year ended # - # # - # - 0.92September 30, 2005

# Less than Rs. 0.01 Lakhs

These transactions were made at arms length and within the limits set by the Regulations, wherever applicable. Commissionand brokerage were paid at the same rates as were applied to other distributors and brokers

D. STOCK LENDING BY THE FUNDThe Scheme will not engage in stock lending.

E. PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPECTIONS OR INVESTIGATIONSFOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THE PROCESS OF BEING TAKEN BY ANYREGULATORY AUTHORITY

a. All cases of penalties (indicating nature of penalty)awarded by SEBI under the SEBI Act or any of itsregulations against the Sponsor of the Mutual Fund orany company associated with the Sponsor in any capacityincluding the Asset Management Company, TrusteeCompany/Board of Trustees, or any of the directors orkey personnel (specifically the fund managers) of theAsset Management Company and Trustee Company.

For Sponsor and its associates, other than the penaltiesas mentioned above, the penalties awarded by anyfinancial regulatory body, including stock exchanges, fordefaults in respect of shareholders, debenture holdersand depositors shall also be disclosed. Additionally,penalties awarded for any economic offence and violationof any securities laws.

Details of all cases of suspensions and cancellation ofcertificate of registration (for irregularities / violations infinancial services sector or for defaults in respect of shareholders, debenture holders and depositors) of the AMC,Trustee Company and sponsor or any associate of thesponsor shall be disclosed for the last 10 years.

b. Any pending material litigation proceedings incidentalto the business of the Mutual Fund to which the Sponsorof the Mutual Fund or any company associated with theSponsor in any capacity including the AMC, Board ofTrustees /Trustee Company or any of the directors or keypersonnel is a party.

None other than the following:

A notice under Rule 4 of SEBI (Procedure for holding inquiryand imposing penalties by Adjudication Officer), Rule 1995was issued by SEBI to the Fund and the AMC for allegedviolation of the SEBI’s Circular MFD/CIR No.12/175/01 datedFebruary 15, 2001, while launching a close-ended FixedMaturity Plan. The Fund and the AMC had submitted theirexplanations in writing to SEBI and also gave the explanationsat the time of the personal hearing on September 27, 2002by the Adjudicating and Enquiry Officer of SEBI. A penaltyof Rs. 50, 000 each has been imposed against the Fund andthe AMC vide order dated February 26, 2003 of theAdjudicating Officer under SEBI (Procedure for holding inquiryand imposing penalties by Adjudication Officer) Rule, 1995.The AMC and the Fund had filed an appeal to Securities andAppellate Tribunal against the above-mentioned order.Securities Appellate Tribunal has vide its order dated February21, 2005, has directed to deposit Rs. 25000/- with SEBI,pending final hearing. The AMC has deposited Rs. 25000/-with SEBI.

None

None

An investor has filed a case against Kotak Mahindra AssetManagement Company Limited, Kotak Mahindra TrusteeCompany Limited, Kotak Mahindra Bank Limited andComputer Age Management Services Limited (Registrar &Transfer Agents) alleging that the redemption of units heldby it in a Scheme was not based on its instruction. The factsof the case is that there was a lien created on the units andthe lien was invoked by the lien holder. A written statementis being filed by the company denying the allegation made.

53


Any pending criminal cases against the Sponsor or anycompany associated with the Sponsor in any capacityincluding the AMC, Board of Trustees/Trustee Companyor any of the directors or key personnel.

c. Any deficiency in the systems and operations of theSponsor of the Mutual Fund or any company associatedwith the sponsor in any capacity including the AMC orthe Trustee Company which SEBI has specifically advisedto be disclosed in the offer document, or which has beennotified by any other regulatory agency None

d. Any enquiry/adjudication proceedings under the SEBI Actand the Regulations made thereunder, that are in progressagainst the Sponsor of the Mutual Fund or any companyassociated with the Sponsor in any capacity such as theAMC, Board of Trustees/Trustee Company or any of theDirectors or key personnel of the Asset ManagementCompany.

The above information has been disclosed in good faith as per the information available to the AMC.

None

None

None

F. OMNIBUS CLAUSESubject to SEBI Regulation permitting:

Besides the AMC, the Trustee/Sponsor may also absorbexpenditures in addition to the limits laid down underRegulation 52 of SEBI Regulations.

Further, any amendment/clarification and guidelines in theform of notes or circulars issued from time to time by SEBIfor the operation and management of mutual fund shall beapplicable.

G. DOCUMENTS AVAILABLE FOR INSPECTIONFollowing documents are available for inspection by theprospective investors between 11.00 a.m. and 1.00 p.m. onany day (excluding Saturdays, Sundays and public holidays),at the office of the Mutual Fund -

1. Copy of the Registration Certificate from SEBI.

2. Copy of the Trust Deed and the Deed of Amendment.

3. Copy of the Investment Management Agreement andthe supplemental agreement.

4. Copy of the Memorandum and Articles of Associationof the Trustee.

5. Copy of the Memorandum and Articles of Associationof the AMC.

6. Copy of the Custodian agreement.

7. Copy of the Registrar agreement.

8. Consent of Auditors, Custodian, Bankers, and Registrarto act in the said capacity.

9. A copy of this Offer Document.

10. Copy of the SEBI (Mutual Funds) Regulations, 1996.

11. Copy of the Indian Trusts Act, 1882.

12. Copy of the Agreement between AMC and the Advisor.

All points mentioned in the Standard Observations issuedby SEBI vide their ‘Instructions for filing Offer Documentwith SEBI dated December 26, 2003 have beenincorporated in this Offer Document.

Notwithstanding anything contained in this OfferDocument, the provisions of the SEBI (Mutual Funds)Regulations, 1996 and the Guidelines thereunder shallbe applicable.

Investors may ascertain about any further change afterthe date of this Offer Document from the ISCs, as givenelsewhere in this document, or the registered office ofAMC or from distributors/brokers.

Note: The Scheme under this Offer Document wasapproved by the Trustee at their meeting held onNovember 21, 2005.

For and on behalf of the Board of Directors ofKOTAK MAHINDRA ASSET MANAGEMENT COMPANY LIMITED

[Asset Management Company for Kotak Mahindra Mutual Fund]

Place : Mumbai Sandesh KirkireDate : February 16, 2006 Chief Executive Officer

54


The following short names have been used in this Offer Document:

Short Name Used Scheme / Plan Name

Kotak Gilt Savings ................................................................. Kotak Mahindra Gilt Unit Scheme ’98 - Savings Plan

Kotak Gilt Investment ........................................................... Kotak Mahindra Gilt Unit Scheme ’98 - Investment Plan

Kotak 30 ................................................................................ Kotak Mahindra 30 Unit Scheme

Kotak Bond ........................................................................... Kotak Mahindra Bond Unit Scheme 99

Kotak Bond Short Term ........................................................ Kotak Mahindra Bond Unit Scheme 99 - Short Term Plan

Kotak Balance ........................................................................ Kotak Mahindra Balance Unit Scheme 99

Kotak Tech ............................................................................ Kotak Mahindra Technology Scheme

Kotak MNC............................................................................ Kotak Mahindra MNC Scheme

Kotak Liquid .......................................................................... Kotak Mahindra Liquid Scheme

Kotak Income Plus ................................................................. Kotak Mahindra Income Plus Scheme

Kotak Dynamic Income ......................................................... Kotak Mahindra Dynamic Income Scheme

Kotak Midcap ........................................................................ Kotak Midcap Scheme

Kotak Global India ................................................................. Kotak Mahindra Global India Scheme

Kotak Flexi Debt .................................................................... Kotak Mahindra Flexi Debt Scheme

Kotak Contra ......................................................................... Kotak Contra Scheme

Kotak Dynamic FOF .............................................................. Kotak Dynamic Fund of Funds Scheme

Kotak Cash Plus ..................................................................... Kotak Cash Plus Fund

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OFFICIAL ACCEPTANCE POINTS (For Redemption)KOTAK MAHINDRA ASSET MANAGEMENT COMPANY LIMITEDMumbai : 91/92, 9th Floor, Sakhar Bhavan, 230 Nariman Point, Mumbai - 400 021. • Ahmedabad : 713-714, 7th Floor, Sakar-2,Opp. Town Hall, Ellisbridge, Ahmedabad - 380 006. • Bangalore : No. 305, Infantry Court, 130, Infantry Road, Bangalore -560 001. • Chennai : 1st Floor, Ceebros Centre, MD 45, Monthieth Road, Egmore, Chennai - 600 008. • Hyderabad : JewelPavani Towers, IInd Floor, 6-3-1109/1, Somajiguda, Hyderabad - 500 082. • Kolkata : Appejay House, Block C, 7th Floor, 15 ParkStreet, Kolkata - 700 016. • New Delhi : 12-14, Upper Ground Floor, Ambadeep Building, 14, Kasturba Gandhi Marg, New Delhi- 110 001. • Pune : 201-202, 2nd Floor, Sohrab Hall, 21, Sasoon Road, Pune - 411 001

COMPUTER AGE MANAGEMENT SERVICES PRIVATE LIMITED (CAMS) – INVESTOR SERVICE CENTRESAhmedabad : 402-406, 4th Floor, Devpath Building, Off C. G. Road, Behind Lal Bungalow, Ellis Bridge, Ahmedabad - 380 006.• Bangalore : Trade Centre, 1st Floor, 45, Dickenson Road, (next to Manipal Centre), Bangalore - 560 042. • Bhubaneswar : 101/7, Janpath, Unit - III, Bhubaneswar - 751 001. • Chandigarh : SCO 154-155,1st Floor, Sector 17-C, Chandigarh - 160 017.• Chennai : Ground Floor, 178/10, Kodambakkam High Road, Opposite Hotel Palmgrove, Nungambakkam, Chennai - 600 034.• Coimbatore : 66, Lokmanya Street (W), Ground Floor, R. S. Puram, Coimbatore - 641 002. • Indore : Dalal Chambers, 101,Sagarmatha Apartments, 1st Floor, 18/7, M. G. Road, Indore - 452 003. • Jaipur : G-III, Park Saroj, Behind Ashok Nagar PoliceStation, C-Scheme, R-7, Yudhisthir Marg, Jaipur - 302 001. • Kanpur : G-27/28, Ground Floor, Citi Centre, 63/2, The Mall, Kanpur- 208 001. • Kochi : 40/9633 D, Veekshanam Road, Near International Hotel, Kochi - 682 035. • Kolkata : Lords Buildings, 7/1,Lord Sinha Road, Ground Floor, Kolkata - 700 071. • Lucknow : No. 3, 1st Floor, Saran Chambers 1, 5, Park Road, Lucknow - 226001. • Ludhiana : Shop No. 20-21, (Ground Floor), Prince Market, Near Traffic Lights, Sarabha Nagar Pulli, Pakhowal Road, P.O.Model Town, Ludhiana - 141 002. • Madurai : 86/71 - A, Tamil Sangam Road (Opp. Bell Hotel), First Floor, Madurai - 625 001.• Mangalore : No. G 4 & G 5, Inland Monarch, Opp. Karnataka Bank Kadri Main Road, Kadri, Mangalore - 575 003. • Mumbai :Rajabahadur Compound, Opp. Allahabad Bank, Behind ICICI Bank, 30, Mumbai Samachar Marg, Fort, Mumbai - 400 023. • Nagpur :145, Lendra Park, Behind Shabari, New Ramdaspeth, Nagpur - 440 010. • New Delhi : 304-305, Third Floor, KanchenjungaBuilding, 18, Barakhamba Road, New Delhi - 110 001. • Panaji : 108, 1st Floor, Gurudutta Bldg., Above Weekender, M G Road,Panaji - Goa - 403 001. • Patna : Kamlalaye Shobha Plaza, (1st Floor), Behind RBI, Near Ashiana Tower, Exhibition Road, Patna -800 001. • Pune : Nirmiti Eminence, Office No. 6, 1st Floor, Opp. Abhishek Hotel, Mehandale Garage Road, Erandawane, Pune -411 004. • Secunderabad : 102, 1st Floor, Jade Arcade, Paradise Circle, Secunderabad - 500 003. • Surat : Office No. 2, Ahura -Mazda Complex, 1st Floor, Sadak Street, Timalyawad, Nanpura, Surat - 395 001. • Vadodara : 109, Silver Line, Besides World TradeCentre, Sayajigunj, Vadodara - 390 005. • Visakhapatnam : 47/9/17, 1st Floor, 3rd Lane, Dwaraka Nagar, Visakhapatnam -530 016. • Vijayawada : 40-1-68, Rao & Ratnam Complex, Near Chennupati Petrol Pump, M. G. Road, Labbipet, Vijayawada -520 010.

COMPUTER AGE MANAGEMENT SERVICES PRIVATE LIMITED (CAMS) – TRANSACTION POINTSAgra : F-39/203, Sky Tower, Sanjay Place, Agra - 282 002. • Ajmer : Shop No. S-5, Second Floor, Swami Complex, Ajmer - 305 001.• Allahabad : 1st Floor, Chandra Shekhar Azad Complex, (near Indira Bhavan) 5, S.P. Marg, Civil Lines, Allahabad - 211 001.• Amaravati : 81, Gulsham Tower, Near Panchsheel, Amaravati - 444 601. • Asansol : G.T. Road, Beside George Telegraph Office,Asansol - 713 301. • Aurangabad : Office No. 1, 1st Floor, Amodi Complex, Juna Bazar, Aurangabad - 431 001. • Belgaum : No.21, Ground Floor, Arvind Complex, 1552, Maruti Galli, Belgaum - 590 002. • Bhilai : 209, Khichariya Complex, Opp. IDBI Bank,Nehru Nagar Square, Bhilai - 490 020. • Bhopal : C-12, 1st Floor, Above Life Line Hospital, Zone-I, M. P. Nagar, Bhopal -462 011. • Calicut : 17/28 H, 1st Floor, Manama Building, Mavoor Road, Calicut - 673 001. • Cuttack : Cantonment Road, Cuttack- 753 001. • Dehradun : 81, Chakrata Road, Dehradun - 248 001. • Dhanbad : Urmila Towers, Room No. 111, (First Floor) BankMore, Dhanbad - 826 001. • Durgapur : SN-10, Ambedkar Sarani, City Centre, Durgapur - 713 216. • Gorakhpur : Shop No. 3,Second Floor, Cross Road, A.D. Chowk, Bank Road, Gorakhpur - 273 001. • Guntur : Shyamsunder Golden Towers, Ground Floor,Third Lane, Brodipet, Adj. to Overbridge, Guntur - 522 002. • Gurgaon : 2319, 1st Floor, Block No. 3, Opp. Air Force Golden JubileeSchool, Delhi Road, Sector 14, Gurgaon - 122 001. • Guwahati : A.K. Azad Road, Rehabari, Guwahati -781 008.• Hubli : 208, A Block, 1st Floor, Kundagol Complex, Opp. Court, Club Road, Hubli - 580 029. • Jabalpur : 975, ChoukseyChambers, Near Gitanjali School, 4th Bridge Napier Town, Jabalpur - 482 001. • Jalandhar : 367/8, Central Town, Opp. GurudwaraDiwan Asthan, Jalandhar - 144 001. • Jamnagar : 207/209, K P. Shah House I, K. V. Road Jamnagar - 361 001. • Jamshedpur :Panch Bhawan, ‘R’ Road, Bistupur, Ground Floor (Near Rajasthan Bhawan), Jamshedpur - 831 001. • Jodhpur : 1/5, Nirmal Tower,Ist Chopasani Road, Jodhpur - 342 003. • Manipal : Academy Annex, First Floor, Opposite Corporation Bank, Upendra Nagar,Manipal - 576 104. • Meerut : 108, 1st Floor, Shivam Plaza, Opp. Eves Cinema, Hapur Road, Meerut - 250 002. • Moradabad :B-612 'Sudhakar', Lajpat Nagar, Moradabad - 244 001. • Mysore : No. 3, 1st Floor, CH-26, 7th Main, 5th Cross, Above TrishakthiMedicals, Saraswathy Puram, Mysore - 570 009. • Nasik : "Varsha Bungalow", 1st Floor, Near Rungtha High School, 493, AshokStambh, Nasik - 422 001. • Nellore : Shop No. 13, 1st Floor, KAC Plaza, R. R. Street, Nellore - 524 001. • Panipat : 13, First Floor,Gaushala Mandi Market, G. T. Road, Panipat - 132 103. • Patiala : 35, New Lal Bagh Colony, Patiala - 147 001. • Pondicherry :25, 1st Floor, Jawaharlal Nehru Street, Pondicherry - 605 001. • Raipur : C-23, Sector 1, Devendra Nagar, Raipur - 492 004.• Rajahmundry : D 7-27-4, Krishna Complex, Baruvari Street, T Nagar, Rajahmundry - 533 101. • Rajkot : 111, Pooja Complex,Harihar Chowk, Near GPO, Rajkot - 360 001. • Ranchi : 223, Tirath Mansion (Near Over Bridge), 1st Floor, Main Road, Ranchi - 834 001.• Rourkela : 1st Floor, Mangal Bhawan, Phase II, Power house Road, Rourkela - 769 001. • Salem : 28, 1st Floor, Advytha AshramRoad, Salem - 636 004. • Sambalpur : Opp. Town High School, Sansarak, Sambalpur - 768 001. • Siliguri : 8, Swamiji Sarani,Ground Floor, Hakimpara, Siliguri - 734 401.• Trichur : Adam Bazar, Room No. 49, Ground Floor, Rice Bazar (East), Trichur - 680 001.• Trichy : 8, 1st Floor, 8th Cross West Extension, Thillainagar, Trichy - 620 018. • Trivandrum : TC 15/2012, Sheelatha Building,Women's College Lane, Vazuthacadu, Trivandrum - 695 014. • Udaipur : 32, Ahinsapuri, Fatehpura Circle, Udaipur - 313 004.• Valsad : C/o. CAD House, Siddhivinayak Complex, F-1, 1st Floor, Avenue Building, Near R.J.J. School, Tithal Road, Valsad -396 001. • Varanasi : C 27/249 - 22A, Vivekanand Nagar Colony, Maldhaiya, Varanasi - 221 002.

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I. KMAMC AUTHORISED COLLECTION CENTRES• Ahmedabad : Ms. Nirali Shah - 713-714, 7th Floor, Sakar-2, Opp. Town Hall, Ellisbridge, Ahmedabad - 380 006. Tel.:91-79-2657 4992 • Bangalore : Ms. Manju Sheshadri - No. 305, Infantry Court, 130, Infantry Road, Bangalore - 560 001.Tel.: 91-80-2286 3524 / 5 • Bhavnagar : Mr. Ashish Joshi - Tel.: 91-9824402507 • Bhubaneswar : Mr. Arunkumar Mohanty- Plot No. 501 / 1741, Centre Point, Unit No. 3, Kharabela Nagar, Bhubaneshwar - 751 001 Tel.: 91-9861126118• Chandigarh : Mr. Gopal Sood - 1st Floor, Deepak Towers, S.C.O. 154-155, Sector 17C, Chandigarh - 160 017.Tel.: 91-172-272 7598 • Chennai : Mr. Kannan J - 1st Floor, Ceebros Centre, 45, Montieth Road, Egmore, Chennai - 600008. Tel.: 91-44-5214 6753, 2851 7686 • Coimbatore : Mr. C . Loganathan - Krisan Business Centre, Old No. 41, NewNo. 81, Government Arts College Road, Coimbatore - 641 018. Tel.: 91-9843111281 • Guntur : Mr. Srinivasa Rao Chintan- 91-9247160465 • Guwahati : Mr. Mangalesh Thakur - 2nd Floor, Jain Complex, G. S. Road, Guwahati - 781 005 Tel.:91-9864144002 • Hubli : Mr. Roshan D'Souza - Ground Floor, V. A. Kalburgi Square, Desai Cross, Deshpande Nagar, Hubli- 580 029 Tel.: 91-9886642994 • Hyderabad : Ms. Chandra Vadali Kiran - Jewel Pavani Towers, 2 Floor, 6-3-1109/1, SomajiGuda, Hyderabad - 500 082. Tel.: 91-40-5568 2308 / 9 • Indore : Mr. Pratik Kaushik - 2nd Floor, Indraprastha Tower, M.G. Road, Indore - 452 001. Tel.: 91-9826901004 • Jaipur : Mr. Madan Bafna, Ground Floor, Krishna Tower, 57, Sardar PatelMarg, 'C' Scheme, Jaipur - 302 001. Tel. : 9829210369 • Kanpur : Mr. Sachin Chauhan - 111, 1st Floor, Kan Chambers,14/113, Civil Lines, Kanpur - 208 001. Tel.: 91-512-394 1238, 9839900378 • Kochi : Mr. Rajesh Kumar - 4th Floor,Thadikkaran Centre, Palarivattom, Kochi - 682 025. Tel.: 91-484-553 3110 • Kolkata : Ms. Tripti Khaitan - Apeejay House,Block C, 7th Floor, 15 Park Street, Kolkata - 700 016. Tel.: 91-33-2209 3043 • Lucknow : Mr. Saurabh Singh - Tel.: 91-9839874428 • Ludhiana : Mr. Rohit Aggarwal - Tel.: 91-9814818980 • Mangalore : Ms. Vidya D'Souza, Sequeira Jewels,Opp. Infosys Technologies Ltd., Kottara, Mangalore - 575 006. Tel.: 91-9886738530 • Mumbai : Ms. Lavita Pinto - 91/92, 9th Floor, Sakhar Bhavan, 230 Nariman Point, Mumbai - 400 021. Tel.: 91-22-5638 4444 • Nagpur : Mr. Ninad Sutaone- 101 / 102, Usha Complex, Sardar Vallabhai Patel Road, Kingsway, Nagpur - 440 001. Tel.: 91-9822747585 • New Delhi :Ms. Namrata Sachdev - 12-14, Upper Ground Floor, Ambadeep Bldg., 14, Kasturba Gandhi Marg, New Delhi - 110 001.Tel.: 91-11-5530 6900 /1/2 • Pune : Ms. Sucheta K. - 201-202, 2nd Floor, Sohrab Hall, 21, Sasoon Road, Pune - 411 001.Tel.: 91-20-2605 3338 / 9053 • Rajkot : Mr. Nayan Maniar - 1st Floor, 124, Star Plaza, Phulchhab Chowk, Rajkot 360 001Tel.: 91-9825100339, 02815 520735 • Surat : Mr. Ashwani Wadhwa - 2nd Floor, Megh Mayur Plaza, Surat Dumas Road,Parle Point, Surat - 395 007. Tel.: 221 0596 • Trichy : Mr. P. Senthil Kumar - Tel.: 91-9842995983 • Vadodara : Mr. VishalAdhikari - 108, 1st Floor, Avanti Chambers, Anand Society, Behind Express Hotel, R. C. Dutt Road, Vadodara - 390 005.Tel.: 91-9825404531.

II. COLLECTION BANKSKotak Mahindra BankAhmedabad : 213/214, Sakar II, Ellis Bridge Corner, Ashram Road, Ahmedabad, Gujarat-380 006 • Anand : P.M.ChambersMota Bazar,Vallabh Vidyanagar,Gujrat-388120 • Bangalore : West Wing, 26 / 27, Raheja Towers, 2nd Floor, M. G. Road,Bangalore - 560 001 • Chandigarh : SCO 153-154-155 Sector 9-C, Madhya Marg, Chandigarh-160017 • Chennai : 5thFloor, Ceebros Centre, New No. 39, Old No. 45, Montieth Road, Egmore, Chennai - 600 008 • Coimbatore : Skanda Square727, Avinashi Road, Coimbatore - 641 018 • Himmatnagar : Gr. Floor, Jagubhai Dodia Complex, Opp. GovernmentGodown, Nr. Civil Circle, Station Road, Himmatnagar - 383 001 • Hyderabad : Pavani Jewel Tower, Ground Floor,Somajiguda, Hyderabad - 500 089 • Indore : 580, M. G. Road, Indore (M.P.) - 452 001 • Jaipur : Krishna Tower, 57, SardarPatel Marg, C - Scheme, Jaipur - 302 001 • Kadi : Kunal Complex Opp. J. K. Petrol Pump,Highway Cross Roads, Kadi.• Kapurthala : Ground Floor, Simi Plaza Plot No 51, Mall Road, Kapurthala,Punbaj-144601 • Kanpur : 17/3 B, The Mall,Meghdoot Hotel Building, Kanpur, UP - 208 001 • Kochi : Kumar Pillai Estate, M.G. Road, Kochi - 682 031 • Kolkata :Apeejay House, 15, Park Street Kolkata -700 016 • Lucknow : 17 Ground Floor Speed Building 3rd Shahjanaf Road,OppositeNarayan,Lucknow-226001 • Ludhiana : SCO 120, Ground Floor, Feroze Gandhi Market, Ludhiana - 141 001 • Mehsana :Rajendra Estate, Opp. Gayatri Temple, State Highway, Mehsana - 384 002 Gujarat • Mumbai : 5 C/ II, Mittal Court, 224,Nariman Point, Mumbai -400 021 • Nagpur : Ground Floor, 345, Shri Mohini Complex, Kingsway, Nagpur - 440 001• Namakkal : SKK Complex, 9-1, - A & B Mohanur Road, Namakkal - 637 001 • New Delhi : Ground Floor, Ambadeep,14, K.G. Marg, New Delhi-110 001 • Phagwara : UGF Milap Tower, G T Road,Punjab-144401 • Pune : M-4, VirwaniPlaza,11, East Street, Pune • Rajkot : Shree Nath Complex, Race Course Chowk Nath Vihar, Dr. Yagnik Road Opp JillaPanchayat, Rajkot - 360 001 • Sankari : 17-New Edappadi Road, Sankari, Salem District, Tamil Nadu - 637 301 • Surat :Megh Mayur Plaza, Parle Point, Surat Dumas Road, Athwa Lines, Surat - 395 007 • Unjha : 2nd Floor, Old APMC Building,Above Bhojnalaya, Ganj Bazar, Unjha - 384 170 Gujarat • Vadodara : Panorama Building, Ground Floor, R.C.Dutta Road,Alkapuri, Vadodara-390 005 • Vapi : Plot No.5 & 6, Mahalaxmi Society, Vapi-Daman Road, Chala 396-191, Dist Valsad,Gujarat

HDFC BankAhmedabad : 5th Floor, Broadway Business Centre, Law Garden, Navrangpura, Ahmedabad - 380 009 • Bangalore : 25/1,Shankarnarayana Building, Next Rajeha Towers, M. G. Road, Bangalore - 560 001 • Chandigarh : SCO 371/372, Sector35-b, Chandigarh • Chennai : 751 - B, Anna Salai, Mariam Centre, Chennai - 600 002 • Coimbatore : 1635 Classic Towers,Trichy Road, Coimbatore - 641 018 • Hyderabad : 6-1-73 3rd Floor, Saeed Plaza, Lakdikapul, Hyderabad - 500004 • Jaipur :1st Floor, O-10, Ashok Marg, Ahimsa Circle, C-Scheme Jaipur • Kochi : 2nd Floor, Elmar Square, M.G. Road, Ravipuram,Kochi - 682 016 • Kolkata : CMS, Abhilasha II, 6 Royd Street,1st Floor, Kolkata - 700 016 • Lucknow : 31/31, M.G. Marg,Hazratganj, Lucknow - 226 001 • Ludhiana : 5th Floor, The Mall, Mall Road, Ludhiana • Mumbai : Maneckji Wadia Bldg.,Nanik Motwani Marg, Mumbai 400 023 • New Delhi : Fig-ops,1st Floor, Kailash Bldg., 26, K G Marg, New Delhi 110001• Pune : 5th floor, Millennium Tower, Bhandarkar Road, Shivajinagar, Pune - 411 004 • Vadodara : 5th Floor,'MidwayHeights' Next to Panchmukhi Hanuman Temple,Lokmanya Tilak Rd, Kirti Mandir,Near Kala Ghoda, Raopura, Vadodara -390 001.

OFFICIAL COLLECTION CENTRES (For New Fund Offer)


5A, 5th Floor, Bakhtawar, 229, Nariman Point, Mumbai 400 021Tel.: (022) 5638 4444 l Fax : (022) 5638 4455

E-mail : [email protected] l Website : www.kotakmutual.com

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