CHHAJED & DOSHI CHARTERED ACCOUNTANTS INDEPENDENT AUDITORS’ REPORT To The Members of UTI Asset Management Company Limited Report on the Standalone Financial Statements We have audited the accompanying standalone financial statements of UTI Asset Management Company Limited (“the Company”), which comprise the Balance Sheet as at March 31,2015 and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information, Management's Responsibility for the Financial Statements The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Read Office: 107, Habiown Solaris, Noar East Wost Fyovor, N'S Phadke Marg Anaherl (6), Muimbal 400 069 Phone: 022-61037878 Fax: 022-61037879 E-mail: info@endingia.com Branches: Ahmedabad:Phone: 079-26464418 Delhi: Phonei0T1-46113960 Dombivik: Phone! 02ST. 256086CHHAJED & DOSHI CHARTERED ACCOUNTANTS. Auditor's Responsibility Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. ‘An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company's preparation of thé financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company's Directors, as well as evaluating the overall presentation of the financial statements, We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements, Opinion In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2015 and its profit and its cash flows for the year ended on that date. es OBL, Han roar EA Wad FIN SP Wy Ba) AIO RT ECE E enn tas sioarare poe oats eee Branches: Ahmedabad:Phone: 07026464419 Delhi; Phoni011 46113060 Dombluil Phone: 0267-20006CHHAJED & DOSHI CHARTERED ACCOUNTANTS Report on Other Legal and Regulatory Requirements 1, As required by the Companies (Auditor's Report) Order, 2015 (“the Order”) issued by the Central Government of India in terms of section 143 of the Companies Act, 2013, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order. 2. As required by section 143 (3) of the Act, we report that: a. we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit; b. in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books; c. the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account; d. in our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. e. on the basis of written representations received from the directors as on March 31, 2015 and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2015, from being appointed as a director in terms of Section 164 (2) of the Act. f. With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us; i) The Company did not have any pending litigation which may have material impact on its financial position, Head Office: 107, Hubtown Solas, Near Baal west Fyaver, N'S Phadko Marg Andhen (@), Mumbai 400 060 Phone: 022-61037878, Fax: 022-61037879 E-mail: info@endinl Branches: Ahmedabad:Phone: 073-26464413 Delhi: Phone:011-40110960 Dombivik: Phone: 0257-28086CHHAJED & DOSHI CHARTERED ACCOUNTANTS ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses. ili) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company. EE As required by section 143(5) of the Act and in pursuance of directions and sub-directions, issued by the Office of the C & A.G of India for the year ended 31st March 2015, we report that: i. According to the information and explanations given to us, the Company has not been selected for disinvestment. |. According to the information & explanation given to us, there are no cases of waiver/write off of debts/loans/interest etc. during the financial year 2014-15. i . According to the information & explanation given to us, neither the Company requires any inventories for carrying out its activities nor the Company has received any assets as gift from Government or other authorities. z iv. According to the information & explanation given to us, there are no other pending legal / arbitration cases on the Company, except as stated in Note No. 27 to accounts for the year 2014-15. There is an effective monitoring mechanism for expenditure on all legal cases. For CHHAJED & DOSHI Chartered Accountants FRN 101794W one (CA. Kiran K Daftary) MUMBAI PARTNER Date: 28" April, 2015. M. N. 010279 Head Office: 707, Hubtown Solaris, Near East West Flyover, N'S Phadke Marg Andheri (E), Mumbai 400 068 Phone: 022-61037878 Fax: 022-61037879 E-mail info@endindia.com yhone: 0261-286036 Branches: Ahmedabad:Phone: 079-26464413 Delhi: Phone:011-46113960 DombiCHHAJED & DOSHI CHARTERED ACCOUNTANTS UTI ASSET MANAGEMENT COMPANY LIMITED 2014-15. Annexure to the Independent Auditors’ Report (Referred to in our report of even date) We report that: 10} ii) Git) (vy) ™ (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. (b) The Company has a regular programme of physical verification of its fixed assets by which all fixed assets are verified on a yearly basis. In ‘our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification. ‘The Company is a service company primarily rendering asset management services and portfolio management services. Accordingly, it does not hold any physical inventories. Thus reporting requirement under paragraph 3 (i) of the Order is not applicable. The Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly, reporting requirement of clause (ii) of paragraph 3 of the Order is not applicable. In our opinion, and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business, with regard to purchase of fixed assets and sale of services. The activities of the Company do not involve purchase of inventory and the sale of goods. We have not observed any major weaknesses in internal control system during the course of our audit, The Company has not accepted deposits from public hence directives issued by the Reserve Bank of India and the provisions of section 73 to 76 or any other relevant provisions of the Companies Act, 2013, and the rules framed there under are not applicable for the year under audit, ie 101, Hubiown Solaris, Near East Wasi Fyover, N'S Phadke Warg Andhon (E), Mumbal 400 065 Phone: 022-61037878 Fax: 022-61037879 E-mal:nlo@endindia.com ae ‘Ahmedabad:Phone: 078-26464418 Delhi: Phone:OT1 40116360 Dombilk: Phone: 02S1-266006CHHAJED & DOSHI CHARTERED ACCOUNTANTS (vi) (vii) (vit) ‘The Central Government has not prescribed the maintenance of cost records under sub section (1) of Section 148 of the Companies Act, 2013 for any of the services rendered by the Company. (@) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted / accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Employees’ State Insurance, Income-tax, Service tax, Wealth Tax, Cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities, As explained to us, the Company did not have any dues on account of Investor Education and Protection Fund, Employees’ State Insurance, Sales- tax, Wealth tax, Customs duty and Excise duty. (b) According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Employees’ State Insurance, Income tax, Sales tax, Wealth tax, Service tax, Customs duty, Excise duty, Cess and other material statutory dues were in arrears as at 31 March, 2015 for a period of more than six months from the date they became payable. (c) The particulars of dues of Income Tax as at 31% March 2015, which have hot been deposited on account of a dispute are as under: Name of the | Nature of Dues | Amount Forum where Statute Rs.In Crores | the dispute is pending. Income Tax Act, 1964. AY. 2009-10 Income Tax 5.25 CIT Appeals AY. 2009-10 Penalty 1.18 CIT Appeals AY. 2010-11 Income Tax. 2.27 CIT Appeals The Company does not have any accumulated losses at the end of the financial year and has not incurred cash losses during the year, as well as, in the immediately preceding financial year. 707, Hublown Solas, Near East West Fyaver, N'S Phadke Marg Andheri (6), Mumial 400 069 Phone: 022-61097878 Fax: 022-61037879 E-mail: info@cndind: Branches: Ahmedabad:Phone: 079-26464418 Delhi: Phone.0i1 4611650 Dombivik Phono: 0251 286066CHHAJED & DOSHI CHARTERED ACCOUNTANTS. (i) The company did not have any dues outstanding to any financial institutions / banks during the year. (x) According to information and explanations given to us, the Company has not given any guarantees for loans taken by others from banks and financial institutions. (x) In our opinion and according to the information and explanation provided to Us, no term loans have been availed by the Company, during the year. (xii) According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the course of our audit. For CHHAJED & DOSHI Chartered Accountants FRN 101794W © i (CA. Kiran K. Daftary) MUMBAI ~ PARTNER Date: 28" April, 2015. M,N, 010279 Head Office: 107, Hubtown Salas, Near East West Fiyover, N'S Phaake Marg Anahen (E), Mumbal 400 058 Phone: 022-61037878 Fax: 022-61037879 E-mail nfo@endindla.com Branches: “Ahmedabad:Phone: 079-26464419 Delhi: PhoneiO11-401 19960 Dombivll Phone: 0251-266006CHHAJED & DOSHI CHARTERED ACCOUNTANTS COMPLIANCE CERTIFICATE TO THE MEMBERS OF UTI ASSET MANAGEMENT COMPANY LIMITED We have examined the compliance of conditions of Corporate Governance of UTI ASSET MANAGEMENT COMPANY LIMITED, for the year ended March 31, 2015 as stipulated in clause 49 of the Listing Agreement, to the extent applicable. The compliance of conditions of Corporate Governance is the responsibility of the management. Our examination was limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of Corporate Governance. tt is neither an audit nor an expression of opinion on the financial statements of the Company. In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company has complied with the applicable conditions of Corporate Governance. We state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the Company. For CHHAJED & DOSHI Chartered Accountants FRN 101794W Rrra (CA, Kiran K, Daftary) MUMBAL PARTNER Date: 28” April, 2015. M,N. 010279 Head Office: 707, Hublown Solaris, Near East Waat Flyover, N'S Phadke Marg Anghor! (E), Mumbai 400 065 Phone: 022-81037878 Fax: 022-61087879 E-mail info@endindia.com Branches: Ahmedabad: Phone: 079-26464413 Delhi: Phonei011-46110050 Domibivik Phone: 0251 206086CEO and CFO Certification in respect of the Finan: March 31, 2015 is for the year ended Board of Directors UTI Asset Management Company Limited We, to the best of our knowledge and belief, certify that: 1. We have reviewed financial statements and the cash flow statement for the year ended on March 31, 2015 and that to the best of our knowledge and belief: (1) these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading; (ii) these statements together present a true and fair view of the company's affairs and are in compliance with existing accounting standards, applicable laws and regulations. 2. There are, to the best of our knowledge and belief, no transactions entered into by the ‘company during the year which are fraudulent, illegal or violative of the company’s code of conduct. 3. We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated the effectiveness of internal control systems of the company pertaining to financial reporting and we have disclosed to the auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which we are aware and the steps we have taken or propose to take to rectify these deficiencies. 4. We have indicated to the auditors and the Audit Committe (i) _ significant changes, if any, in internal control over financial reporting during the year; ignificant changes, if any, In accounting policies during the year and that the same have been disclosed in the notes to the financial statements; and (ii) instances of significant fraud of which they have become aware and the involvement therein, if any, of the management or an employee having a significant role in the company's internal control system over financial reporting. ) : “eh (a fy hme Leo Puri Imfaiyazur Rehman Managing Director Chibt Financial officer Mumbai, dated the 28" April, 2015Uil Asset Management Company Limited Balance Sheet as at 31 March 2015 EE artes Note pg akan 208 anata e204 1 EQUITY AND LABS shard! ands Shar Cot 2 was ‘2su0 Fema an Supa ‘ ies eee asst eas encurent tn Deore octets 5 an un tore wnt é ia ae oem woven ' a08 cae wis Tt curate Tse nee ‘ iss oss her cet bes : a an stot pomnone ® ‘a3 38 itear ine rors. — Fa wi asers once ts Novas Trg ass " tagse vow mgeb es " om tis wee wa sen-cmitnesints i mae Cong emoarenramcos 8 thas tae Gourmaneonct i 038 338 rae ae caren sts Sorensen ‘8 soot can Toon emanee t i ae Caonanccamh ets " S oo Sotiomnne se ates " vase a Shatconanes " om a30 we wa TOTAL Summary of sipnteant account polices ‘Te seromanyng notes re an integral pat fhe sna statemens spor ou Repo ven és For CHHAJED & BOSH! (Charred Accountants RN 10370400 ee Coa Keon Katty £2 Partner ai Placesthenbat 2 Date: The 2a Api For and on behalf of the Board of Directors of LUTTAssot Managomont Company Limited a Managing Director es pv onkatachatam Director feed we irda Vota Company Secretary aesUTI Asset Management Company Limited ‘Statement of Profit and Loss for the yoar ended 31 March 2015, COMISE Year ended arch Year enced Particuare Note No. ‘312096 march 31 2014 income a 7 Revenue rom operations (02) 20 572.03 498.2 Othe neo a vase won Total Revenue Expenses Employ bores expenses 2 a820 tra France costo 2 ‘ Depracaton and emerson expense 2 1088 781 [Admiotonve and other exgensen 28 ass e022 Tota Expenses (1) Hers Pre pid tems te of ox Ra, NA (Previous yea Re NIL) 8 082 028 Proft Before Tax Baer mae Tax expense Curent to 028 Tox Adusiment er et: years Detered ine 610 ose Tota tax oxponses aa Prot tor Tax ie Taw Eaming per equity share nominal value of share Rs.40 (34 farch 2044: Ret) Basi (Ra) (Refer Note 24) 1.06 1200 Diutes Gm Rs.) (Reler Note 32) 18.08 1380 ‘Summay of significant accounting potas 2 ‘ne socompanying notes ae an ntogel pao he nancial atemants “As par Ox Repor of even date For and on behat ofthe Board of Biecios at For CHHAJED & DOSHI UUTIAssot Management Company Limtee ‘cnanterea Accountants FRM: sor7aaw a Leo P Managing Director ee Antal carn ont tye ba as iach oo — Date The 28m Ap 2015 corr Cle fam Ai ventatackalam af a Siector eo yn Kiran Votrs Company Secretary ER « Ly NeatUTTAssot Management Company Limited {Caah Flow Statoment for the year endod 31 March 2015. Raoaal ‘ROIREGT Wen Cash FG ROW OPERATING RETITIES et proft& Lose Sfore Taxation must see Adjutmant fo ‘erence am en ‘engine 65, os (Pr Lae on te nese e138 eon, (Pre Lasso snact a a 605 o2 ‘parting Prat sore Working Capa Chars amas ‘mae Aapatrantor changes inweting cpl (res Dosmseia Lona ar asd aoe a on (ross ncaa n Sot tm an an eo (00s42) cy (htosoy Decree in Cet ie esti 12 (028) (wereseyazevencinr az sats 65 65 (eres oaceanen hae Capt 2 AhraseyDacease neers sn Suplie 266 Inet! Ost) Shot rove 408 (060) Inter Deane) erent aie 19235 om trast (Oeste n Curertasepeyas a6 100 Ince (eces) m oer ron bites mare ost e709 sn esas Pes Ta a ef pin ran 2) on [NEF CASH FLOM FROM OPERATING ACTHTIES sna sas ‘CASH FLOW FROM RESTING ACTER {Puts Sale ofc on «0 o20) (Paces ale Nock mstnest en vor (acre) ee of Cate esc vet e028) Pras an ot reine ass on et eash gnectindtominesting Aces 396) way CASH FLOW FROM FRANC RCTITIES Dnt pl prev ea ars 069) Ccapaale Ohi itn Tan pe reuse 3) at eash guezeted wom Finance Action 8 Net hneene! Goren} an ane can opuvalnt ‘pang Coen an oas egivatns ‘Components fash and esh oanaar Casha cash evans ‘parm Rap cov Goe For CHRAJED & 009 un acon Q a watehon an ay (Gute en Date Th hs Ap 2018UTI Asset Management Company Limited nificant Accounting Policies and Notes to accounts annexed to statements for the year ended 31st March 2016 4. Corporate Information i) The UTI Asset Management Company Limited was incorporated on 14th November 2002 under the Companies Act, 1956 with the object to carry on activites of raising funds for and to render investment management services to schemes of UTI Mutual Fund. UTI Asset Management Company Limited is also undertaking portfolio management services to clients under Securities and Exchange Board of India (SEBI) (Portfolio Managers) Regulations, 1993 pursuant to 2 certificate granted by the SEBI. The Company is Registered with SEBI under the SEBI (Mutual Funds) Regulations, 1996, The Company has received a certificate from SEBI to act as Portfolio Manager. The said certificate is valid upto 31° January, 2016 and to be renewed thereafter. UTI Asset Management Company Limited has four wholly owned subsidiaries viz. UTI Venture Funds Management Company Private Limited, UTI Intemational Limited, UTI Retirement Solutions Limited and UTI Capital Private Limited. ii) Basis of preparation The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below. The Financial ‘Statements are presented in Indian Rupees, rounded off to nearest crore with two decimals. 2, SIGNIFICANT ACCOUNTING POLICIES 2.4 Presentation and disclosure of financial statements The financial statements of the company have been prepared in accordance with generally accepted accounting principles in india (Indian GAAP). The company hes prepared these financial statements to comply in all material respects with the accounting standards refer to in Section 133 of the Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules, 2074. The financial statements have been prepared on an accrual basis and under the historical cost convention ‘The company has also reclassified/regrouped the previous period figure in accordance with the requirements applicable in the current period.2.2 Uso of estimates ‘The preparation of financial statements require the management of the company to make estimation and assumptions that effect the reported balances of assets and labilties and cisclosures relating to the contingent liabilties as at the date of the financial statements and reported amounts of income and expenses during the period. Examples of such estimates include provision for loans & advances, provision for accrued benefits to employees, provision for income tax, provision for write back of diminution in the value of investment and the useful fe of fixed assets, The estimates and assumptions used in the accompanying financial statements are based pon management's evaluation of the relevant facts and circumstances as of the date of financial statements, Actual results may differ from those estimates. Any revision to accounting estimate is. recognized prospectively in the current and future periods. 2.3 Revenue Recognition Revenue is recognized when there is @ reasonable certainty of its ultimate realization / collection 2) Management fees are accounted for on accrual basis in accordance with the Investment Management and Advisory Agreement with the UTI Trustee Company Private Limited, Services Agreement with the Aciinistrator of the Specified Undertaking of Unit Trust of india (SUUTI) and the agreements with the clients of the Wealth Management Division of UTI Asset Management Company Limited, Itis based on the audited net asset value as recorded by the Schemes of UTI Mutual Fund, Fees from SUUTI is charged based on mutual agreement. Management Fees from Portfolio Management Services Is charged on the basis of agreements with the clients based on the aucited portfolio values recorded by the Wealth Management Division of UTI Asset Management Company Limited. Management fees recognized are in ine with the SEBI (Mutual Fund) Regulation, 1996.(SEBI Regulations) as amencled from time to time, based on daily net asset value, b) Interest income is recognised on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head "Other Income' in the statement of Profit end Loss. ©) Dividend income is recognised when the company's right to receive dividend is established by the reporting date, )_ Profit / loss on sale of investments is accounted on trade date basis. The profit / oss on sale of investments is calculated on weighted average basis,e) NPA Management fees are charged for the services rendered towards recoveries of NPA assets transferred from erstwhile UTI to schemes as per rate approved for the AMC fee on the basis of appropriation of recoveries made in the NPA Accounts. 24 Fixed Assets Fixed Assets are stated at cost less accumulated depreciation. Cost includes all expenses incidental to the acquisition of the fixed asset. 25 © Depreci ‘The company provides depreciation on fixed assets in the manner prescribed in schedule I! to ‘Companies Act, 2013 on straight line method (SLM) on pro-rata basis, based on prescribed useful life of assets which are as under ion ‘Tangible Assets Building 60 years Server & Network 6 years Computer & Laptop 3 years Office Equipment Byears Furniture 10 years Vehicle 8 years Intangible Assets Software 3 years Assets costing individually Rs.5000 or less are depreciated at the rate of 100% on pro-rata basis. Considering the materiality aspect residual value 5 % of the cost has taken only for buildings and motor cars, 2.6 Investments Purchase and sale of Investments are recorded on trade date. Investments are clessified into current investments and non-current investments, based on intention of the Management at the time of purchase for the holding period for which such investments are made. Investments that are readily realizable and intended to be held for not more than a year are Classified as current investments. All other investments are classified as non-curtent investments. Current investments are carried at lower of cost and market / fair value. The comparison of cost and net realizable value is done separately in respect of each individual investments, Non-current investments (including current portion thereof) are stated at cost, Provision for diminution is made to recognize a decline, other than that of temporary nature, in the value of such investments,27 28 Transaction in Foreign Currency Transactions in foreign currency are accounted for at the rate of exchange prevailing at the date of the transaction, Exchange differences, if any, arising out of transactions settled during the year are recognized in the Profit and Loss Account Monetary Assets and Liabilities denominated in foreign currencies as at the Balance Sheet date are translated at the closing exchenge rate. The exchange differences, if any, are recognized in the statement of Profit and Loss and related Assets and Liabilties are accordingly restated in the Balance Sheet. The company has a 100% owned subsidiary UTI International Limited, Guernsey, UTI Investment Management Company (Mauritius) Limited (subsidiary of UTI Intemational Limited, Guernsey), UTI Private Equity Advisors (UPEA) Mauritius (P) Limited (Subsidiary of UTI Venture Funds Management Company (P) Limited) and UTI Intemational (Singapore) Private Limited (subsidiary of UTI Intemational Limited, Guernsey). These are treated as Non-Integral Foreign Operations as per definition under Accounting Standard 14 ‘The Effect Of Changes In Foreign Exchange Rates’. The amount payable as marketing fees to the subsidiary in respect of offshore funds is converted into INR for the period itis payable at the periodic average rate. Employee Benefits Employee benefits payable wholly within twelve months of receiving employee services are classified as short-term employee benefits. These benefits include salaries and wages, bonus and ex-gratia payments, Provident Fund for eligible employees is managed by the Company through trust “UTI AMC Employees Provident Fund’. UTI AMC EPF is covered under “The Provident Funds Act, 1925". Provident Fund set up by the Company meets any future obligation arising due to interest shortfall, any, (Le. interest rate prescribed by the government from time to time to be paid on provident fund scheme exceeds rate of interest earned on investments), will be borne by ‘Company. ‘The Company expenses its contribution to the statutory provident fund @ 10% of the basic salary and additional pay, wherever applicable, for each employee. ‘The pension policy of the company for its employees is governed by UTI Asset Management Company Pension Regulations 2003 and as per the provisions of Accounting Standard - 15 ‘Employee Benefits’2.9 2.10 244 Pension is funded with the Life Insurance Corporation of India Provisions on account of Gratuily and Leave Encashment of eligible employees are made based on the actuarial valuation done at the year end, Company's contribution in case of Gratuity and Leave Encashment are funded annually with the Life Insurance Corporation of India under the respective schemes, based on the actuarial valuation as per Accounting Standard ~15 (Revised 2005) ‘Employee Benefits issue by the CA Earning per Share Basic and Diluted earnings per share are calculated and reported in accordance with ‘Accounting Standard 20 ‘Earnings Per Share’. Basic and Diluted earnings per equity share has been computed by dividing net profit after tax by weighted average number of equity shares outstanding for the period Scheme Expenses Expenses relating to new fund offer of mutual fund schemes are charged in the statement of Profit & loss in the year in which such expenses are incurred except for closed ended schemes which are recognised over the duration of schemes. Expenses incurred on behalf of schemes of UT! Mutual Fund are recognised in the statement Of profit & loss unless considered recoverable from the schemes in accordance with the provision of SEB! (Mutual Fund ) Regulation , 1996. All other expenses like rating fees, inital issue expenses, license fees etc, charged to Profit & Loss Account as per the approval of the board of directors and norms of the industry. Taxes on Income Income tax is accrued in accordance with Accounting Standard 22 ‘Accounting for Taxes on Income, which includes current and deferred taxes. Current tax is determined as the amount of tax payable in respect of taxable income for the period in accordance with the provisions of the Income Tax Act, 1964 Defetred income taxes reflect the impact of current period timing differences between taxable income and accounting income for the period and reversel of timing differences of earlier periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws thet have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognized for all deductible timing differences, carry forward of unused tax assets and unused tax losses only if there Is reasonable virtual certainty that such deferred tax assets can be realized against future liabilities. spite Sy \The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to aliow all or part of the deferred tax asset to be utilised 242 Lease Leases are recognized as per Accounting Standard 19 ‘Leases’ Operating lease (a) Where the lessor retains substantially all risks and benefits of ownership over the lease term, are classified as Operating Leases. Operating lease rentals are recognized as an incomelexpense over the lease period. (b) Finance Lease Leases, where substantial risk and rewards are transferred to the lessee though the asset may not be actually transferred to lessee are classified as finance leases. Depreciation on asset acquired under financial lease is provided on a systematic basis consistent with the depreciation policy adopted by the company for depreciable assets owned. If there is reasonable certainty that the lessee will obtain ownership by the end of lease term, the period of expected use is the useful life of the asset, otherwise the asset is depreci per the lease term or its useful lfe, whichever is earlier. 243 Contingencies and Provisions led as A. contingent liability exists when there is a possible but not probable obligation, or @ present obligation that may, but probably wil not, require an outflow of resources, or a present obligation whose amount cannot be estimated reliably. Contingent liabilities do not warrant provisions, but are disclosed unless the possibilty of outflow of resources is remote. Contingent assets are neither recognised nor disclosed in the financial statements. However, contingent assets are assessed continually and ff it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognised in the period in which the change occurs. ‘The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation The provisions are measured on an undiscounted basis. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent liabiities where an estimate of its financiel effect is measurable and indication of the uncertainties relating to any outflow and the possibilty of any reimbursement are disclosed by way of Notes in the Balance Sheet as per Accounting Standard 29, ‘Provisions, Contingent Liabilities and Contingent Assets’. Provision is made in accounts for those2.44 liabilities, which are likely to meterialize after the period end and having effect on the position stated in Balance Sheet as at the end of the period. Impairment of assets At each Balance Sheet date, the management reviews the carrying amounts of assets to determine whether there is any indication that those assets were impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss, Recoverable amount is higher of an asset's net selling price and the velue in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their present value using a pre-tax discount rate thet reflects the current market assessments of time value of money and the risks specific to the asset. The reduction is treated as an impairment fos and is recognized in the Statement of Profit and Loss. Reversal of impairment loss is recognized immediately as income in the Statement Profit and Loss,UTI Asset Management Company Limited Notes to accounts annexed to and forming part of the financial statements for the year ended 31 March 2015 — (Rs. in Crore) gat 31 March As at 31 March 2015, 2014 3 Share Capital Authorised 20,00 crore (31 March 2014: 20.00 crore) equity shares of Rs 10/- each 200,00 200.00 ‘ssuod, subscribed and fully paid up 42.682 exore (21 March 2014: 12.60 crore) equly shares of Rs. 10 each 12852 125.00 2 Reconciliation of the equity shares outstanding atthe beginning and at the end of the reporting period [ee ___ No.of shares No.of shares Crow Rs.in crore Grore__ Rs in Crore ‘tie being of he year 77500 "2600 728002600 ‘Adi: Snare lesued on exercise of Employee Stock Options during the etiod ‘tthe clave of the year 4.92 136.32 12.500 126.00, ‘The Company had introduced an Employee Stock Option Scheme called "UTI AMC Employee Stock Option Scheme 2007" ESOP Scheme), the excerive poiod of al the option has ended during the year. »b Teemsirignts attached to equity shares ‘The Company has only one class of equ shares having a pr value of Rs.10 por share Each holier of oquity shares is entitled to ‘one vote per shareTha Company dedares and pay dividends in indian rupees. The dividend proposed by the Board of Directors ks Subject othe approval ofthe sharehelersin the ensuing Annual General Nesting. During the year ended 31 2015, the amount of per share dividend recognized as cistibuilons to equly shareholders was Rs.3.60, (Gt Mareh 2014-7.3.50) In the event of liquidation of te company, the holders of equity shares wil be ened to receive remaining assets ofthe company, ater dsuibuton of all preferential amounts. The dstibuton wil be in proportion to the number of eauily shares hela by the sharehaloer. ‘© Aggregate numbor of bonus shares Iesuod, sharos Issued for consideration othor than cash and shares bought back ‘during the period of five years immediately preceding the porting date: NIL « Detais of shareholders holding more than 5% shares inthe company: Feat Si March 20S ‘a ak gH March BOE No. of shares No. of shares Crore ___% Hola Grove __% Holain Equity tharos of Re.40 each fully paid Stete Bank of Inia 2.3125 1831 23125 18.50 Life insurance Corporation of nia 23125 1831 23128 1850 Bank of Baroda 23125 1831 23125 15.50 Pun National Sank 23125 ia3t 23125 1850 T. Rowe Price international Limited 3.2500 25.72 3.2500 26.00 TE,5000 B56 725000 700.05, [As per records ofthe company, ncuding Hs register of sharehokersimembers and oer declarations received ftom shareholders regarding beneficial interest, he above shareholding represents both fogal and beneficial ownership of shares.e. Accounting for Employee Stock Options Employee Stock Option Scheme ‘The Company had instituted ESOPs to enable its employees, to participate in its future growth. The same had been approved by the sharcholders in the annual general meeting held on September 18, 2007. The Company has since granted stock options to its employees pursuant to a resolution passed by the HR and compensation committee at the meeting held on December 22, 2007 which was granted on December 24, 2007. As per the ESOP as amended till date, the aggregate of all such options is limited to such options convertible into equivalent number of Equity shares on the date of grant and presently the number of Equity Shares which can be granted under ESOP are 90,00,000. The fair value of the Company's underiying equity shares was determined as per Independent valuation report. Options under ESOP 2007 were granted at the fair value of the underlying equity shares of the ‘company. Employee Stock Option Plan (ESOP) The Terms of ESOPs plan granted shall be vested & exercised are detailed herein below: There has been one grant under the existing scheme, namely Employee Stock Option Plan, 2007(“ESOP"). Options granted under the scheme are as follow: Particulars Employee Stock Option Plan, 2007 Grant Date December 24,2007 Vesting Schedule (from the grant date) At expiry of one calendar year 10% At expiry of two calendar year 20% [At expiry of three calendar year 30% | ‘At expiry of four calendar year a0% Exercise period for the options would be 3 years from the date of vest™, ~~ Exercise period for the first, second and third tranches of options was extended upto 11.7.2014 and exercise period for the fourth tranche of option was extended upto 5.1.2015. The following table sets forth, the particulars of options granted under ESOP 2007 as at 31* March, 2018: [Particulars No. of Options Scheme Detail FY 2014-15 | FY 2013-14 | Exercise Price (In Rs)" 260 260 Options Granted 48,18,390 |_48,17,360 Options Vested & Exercisable | _Nit__| 36,56,647 Options Unvested NiL Nit Options Exercised 1,322,568 Nit Options Cancelled 1,079,175 | 11,64,743 Options Lapsed 2,416,647 | _Nil* Exercise price of the Second Tranche of vesting of 20%, Tranche of vesting of 40% is Rs. 200. ird Tranche of vesting of 30% and Fourth Weighted average exercise price per option is Rs.206. The vesting period and Exercise period of the final Tranche of the ESOP scheme has been completed rendering the conclusion of the ESOP scheme in this Financial Year. Hence, Incremental cost on account of Fair Value method would be also Nil. Accounting for Employee Stock Options The options were accounted on Intrinsic Value basis. Intrinsic value is the amount by which the fair value of the underlying equity share of the Company exceeds the exercise price of the option. The Intrinsic value of each option under ESOPs 2007 is Nil. Hence, there was no ESOPs cost amortization that had to be done over the vesting period. Further, as aforementioned, vesting period and exercise period of the final tranche of the ESOP scheme has been completed rendering the conclusion of the ESOP scheme in this Financial Year. Hence, Incremental cost on account of Fair Value method would be also Nil. Impact of fair value meth« Earning Per Share Had compensation cost for the Company's stock options outstanding been determined based on the fair value approach the Company's net profit and earnings per share would have been as per the pro forma amounts indicated betow: Rs, in Crore Previous Vear "Adjusted Net Profit (as reported) .. @ 169.99 ‘Add: Stock-based employee compensation expense included in the net income... b Less: Stock-based employee compensation expense determined S| | under fair value based method... ¢ om | Net Profit (pro forma) =a +b-c 201.26 19.22 Amount in 85. Particulars Current Year | Previous Year [ Basic and Diluted earnings per share (as reported) | 16.05 | 13.60 Basic. and Diluted eamings per share (as Pro forma) 16.05 13.54UTI Asset Management Company Limited statements forthe ae Reincror) ‘sat 34 March 2015 Ag. at 1 aren 2016 Notes fo accounts annexed to and forming part ofthe finant year ended 31 March 2016 4 Reserves and Surplus General Reserve Balance 25 perthe ast financial statements tana vaea ‘kd mount antec Hom surive balance the statamant of oft anc oss 048 700 Ctosing Balance ae ‘Secury Premium Resorve on issuo of ESOP 235 2535 ‘Surplus in Statement of Prot & Loss Balance 2 pr the as teancial statements 09.81 eor70 Les. ausinent or Daeecition on Fie Assos 02 : Pro forthe yo pies 10999 Less: Appropitions Proposed Final equty dvdond Rs 3.0 per share 45.48 4975 {@1 Mate 2014: R550 per share)) ‘Taxon proposed Equly dividend 1790 ra Corporte Social Responsoityexpensos oer 7 ‘Trantor General esos m9 700 “etl speciation — a Net balance == oe Total Reservas and surplus a= ee “ MES. ( KEK ore SAGEUTI Asset Management Company Limited Notes to accounts annexed to and forming part of the financial statements for the year endod 31 March 2015 (Rs. in Croce) ‘eatSi March Asat31 Maren 2018 2016 & Deferred Tax Liability (Net) 1) Dotorre tax abity: ') On account of depreciation on fod assets 2072 Total 27 1 Doforrod tax asset: ’) On account of expenditure Total Not Deferred tax ability 6 Other Long Term Liabilities a) Trade Payables 7 8) Others ‘VSS Liabity Fund 200 924 Investor Esueaton & Protection Fund 178 im Business Promotion Fund wi 88.00 Offtoce Development Fund 1422 142 Payabo to SUUTI towards securty deposi 0.06 33.25 7 Long Term Provisions 8) Other provisions Provision foriigations 0.6. oes 0.86 2.66 Provision for tigations: 2) Te canteen services were discontinued from 25 February 2004 against vhich a case was fled by The Contract Labour Udyog Kamgar Union in 2006. The company has made a provision of Rs. 0.39 crore (Previous year Rs.0:39 crore) in case the verdicts agarst the company. ) The company has fled a wit petition before High Court of Delhi challenging the award ofthe Tribunal or reinsiatement wih back wages of an employee ofthe erstwhile UTI The Herble Delhi High Court stayed ‘the award of itunal il futher orders. Afer hearing both the partes, Horble Deli High Court remanded ‘the matter to Labour Cout for rehearing and re-determination of he disputes between the partes. The matters pending with Labour court for further proceedings, Inthe event the company loses the case, he company has estimated te francial labity at Rs. 0.27 erore (Previous year RS.0.27 core).UTI Asset Management Company Limited Notes to accounts annexed to and forming part of the financial statements for the year ended 31 March 2015 (Rs. incre) ‘Ae at March 2015 Ae at34 March 2014 8 Trade Payables (Current) 9 Others 1138 245, 3s “rade payables donot incude any amount payable to Small and Medium Enterprises as defined in Micro, Small and Medium Enterpises Deveopment Act 2008, The balance of trade payables. payable to subsites is svblect to recancilaton and contmation fom respecive partes. Inthe ‘opinion of the management, te Dalances of trade payables ae slated at Oook value and are payante 9 Other Current Liabilities ‘thor payables: ‘Renton benehis to employees 436 24.98 Payable to UTE Mutual Fund 3423 1278 Retention money om 028 Sarvice Tax pyetle 9.08 TDS payabe 3.10, 240 ter payables 090 513 Income received in advance 10 Short Term Provisions 8) Provision for employee benefits Provan er gratiy (Note 38) 165 Proven forlaveencashment (Note 35) 738 40 399, to ) Otter provisions Provion for Wealth Tax 0.00 9.00 Proposed equity avidend 4548 4375 Provision for axon proposed equty dvdend 790. 743 33.38 Sii0. 8231 (0.00 indicates amecunt less than R.0.008 ere)S124 Z 0A0GE 40} $,-bLOZ eek jeloUEUY 405 panieoed Used seU 10:0 09'0's4 JO jUeL esBAY / 21009 F184 30 voeeidag payenuinoay pue e1oio 6z'8'Sy JO snfen uoRIsinbay Buiney ase0| ejge}jeoue9 Suyesedo sepun siey z saphyoul Buipjing SS” ‘payndexs 9q 0} JOM LM JO peep oles eu “sueeK gg $1 BulUJewes ese] Jo poled eoUEIEd U2 PE VOX 0} S6ud|eq payee s! 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Mul Fun oor oor ° 007 a7 ‘Aesvancesresoverbie in cash or kind Ureecued, considered goo9) aot ns o 00F tae ‘other loans & aevances (Secured, considered good) Loans to empyees soor 2059 Poison frloans& advancas (0.06) (0.08) Unsecured, considered good "Advance income Net of provision fr tae) 526 643 Loan (9 UT! Emesoyees Creat Co-peratve Sect Lik 270 150 ‘Advance o Pension Fur a2 0.16 ‘shore Development Fund waz 1432 Investor Edverton& Protection Fund 178 wi Business Promotion Fund sat6 68.0 "¥88 Lebily Fund 299 028 ©. Tota (AsBsCs0sE} 497.38 44 Other Non Current Assets ‘Non Current Bank balances Depesits ledge wih bank 2038 2035, otal 26 2035 ‘Deposits pledged with bank against Bank overdraft and Bank guarantee, ‘Short tx depos wth #caying amount of R20 cote (revs etd & yea Rs 20 He) ae Ned as pledge or ‘reff accourtand of Rs. 0.85 cove (previous pod & yet Re.0.85 cee) are hates peromance ben paanice to Pasion Fun Regulatory and Dovecprantautotty(PFROA)UTI Aesot Management Company Limited Notas to accounts annexe to and forming part ofthe fancil ststments fo the yer endad 31 March 2018 36 Careentinvesinants aan of rp nit ole oe) ‘iid ef maka soe ce se Ea ns et a nd a PT TSS we woe 7 Fiat am Ras a RE TS SSG RNY Ta —8 OTF Ta Re SO TPR WT RE or co Tra Ton ane Soa VPN HT PR OT OT 7 Bw a Fa a TAT RT 7 oe STF To PE RE PRT OS TTR = 3S RST aS RT ST ST SRS OR a - 7 7 9 OF Ta eS To DN Pan OO TF a@ TTF To Fa BORE OR Be a we Ea aR a AT EP Tie TE 7 co TO aT FO CA TTA v= 3 FT a a Fal Ba Ra TT co 5 TER RS FT PT OTS oo > 7 BU Fa a aaa Fs PAN aS 7 ae SO aT NST OP a DOT 79 = ATT TTR FET OT a oF Fa aS a a 7 ET TSR or HTS eR TRE TT a — TT Ta RS FS TT WT OO RST a Bir “SE a FE RTS ROB RETO 7 Bor = TS Ta FST Be a Be TITAN TY 1 ar : TF Ta SS PERT PATS CO BTR TCS oo 50 FR i Fa aa Ba SE as OH NT RST 8 Be "ET TS BST PR ETC SES a 338 ST RTS PS TST SO TT 708 SURES RTS OKT SS OH TAT a BE TSE RT Bs PTT a BT TOSI a 7 a Ta Ha aT Pn ESS TT AS TT 3 —air 7 OSE SS Fc BI PT ap DRA OT TOT 1 oo : RRS Ta RI PR I ST TESS a a 7 OS Ta FSS OS SST T5r 8 art inst ee tna ast na hn, Maeda ance a a as aa Ra Ro ea a TR ay ae ed SRS OSA TT PE a we ig i nT Ba AR ART Tar ar Paes vnc a vera i eS Ry ia ESUTI Asset Management Company Limited Notes to accounts annoxed to and forming part of the financial statements for the year ended 31 March 2015 (Fs. Grow) ‘Reat34March As at 4 March 2018 204 46 Trade Receivables (Current) Peet Outstanding fora period exceeding six months from the date toy re due for payment ‘Unsecured, considered good) 003 4.08 «6 5 7.08 other {Unsecured considred good) 20 8) ase Totakass) 7s ae 47 Cash and Cash Equivalents Batanos wth banks: (On ervont accounts ast 3.00 ‘cath on hand ai 004 332 aeUTI Asset Management Company Limited Notes to accounts annexed to and forming part of the financial statements for the year ended 31 March 2015 R.n Co Beata Wareh Ts at 4 tare 206 2044 48 Short Term Loans and Advances ‘Loans and advances Unsecured, considered good ‘ReceNebse fom UTI Mull Fund e020 210 Reselvetietom UT! Intemational Lies 901 oot Receivable fom UTI Gap Private Listed : 20% Receive fom UTI Reterne Salas Limted 00 023 “ sean 236 ‘Aavances recoverable ncash or kind {Unsseured,consiseed good) est sr ey teat ‘047 ‘tno loans & advan (Secured, considered good) oane te empioyees ast 40 (Unsecured, considered good) ropa xponeos si aee Sona ay ead rotate 7 035 3H oar oor Total av8+6); ise Tos (0.00;ndoates amountaes han Re 0.008 core) 19 Other Current Assets Irerest accrued on ed deposits ‘Appcton money UT Ligue Gash FundUTI Asset Management Company Limited Notes to accounts annexed to and forming part of the financial statements for the yyoar ondod 81 March 2016 Cee oa Yearondes —_Yearened orch942018 mayen 3t 2014 20 Revenue from Operations Revonuo fom operator ‘Selec aeracee 5790 asst ‘ter operating ovenses Foes ring pit of presence under New Pension Shere ons oor Revonus om operations — a Data of services rendered Manaperartoes| sree co ivory fe D8 020 sor ae 21 Other income Intrest income on Log teem vsetmonts ost ‘arent motmonte a8 Loans to orpyees tse 18 Bans sepoats| tse 498 hvesertinswsdares esr : (Curertinvesinenis - oor of curont investments 2128 otTong tem investments ‘ont Exchange dferness (ve). 7 Provision ne longer ruled withdrawn ne) ‘thar non operting come 22. Employee Benefit Expenses Sanson and wage sns7 Contrbaton'o ponent ané oer nds 518 ‘ray expense 170 Leave eneasorent expe 730 Ponsen expense ooo ‘Sta wata expenses 280 25.23 {0.00 ndctesameurt eas than R005 rr) 23. Finance Costs vores expense : 24 Depreciation and Amortization: Depreikeneftangble assets 265 _Amorizaten of tangle assets ss1 705UTI Asset Management Company Limited Notes to accounts annexed to and forming part of the financial statements for the year ended 31 March 2015 fs ince) Yearonded yearend tMarch24 2018 ya taehendad 25 Administrative and Other Expenses Power endo an aa ont azo 1278 Rate and tact 188 178 Innanoe os 078 Reais and mantenance "Compute nd Ofes Easpment 220 ultras oz bere on [Advotiang and business pomaten Seo 32 {Traveling and conveyance or Sea Comminioton ones a2 397 ning and sasonery sat 102 ga ar proesioa feos 2383 ass Dect sting oes 073 019 eye o aos (Refer) baw) 023 036 change aeerces et) pot Ded detislavances walen a 000 sae on sao ed aot (ot) 005) oat Maaateg fees and Common 428 42 amber Fees & Subserpion 57 535, Schame epentes sn e208 Computer consuratles 07 ar thr expenses 205 269 HO ass (0 Paymentto auators ‘As austen: ‘udttoa om ox Conseoton ai = O04 os Tax aut O04 ce Lmtd eventos bos 003 Inet eapacty ‘the serve contain fe) 208 02 Reinbrserent of expenses 0 oot oe om (c0bingoates anourtles thon R8.0.005 coe) 26 Prior Period Items Pieper Income Poe Pid Expensas os ozs 28 a20UTI Asset Management Company Limited te to aezourts annxed to and foming pat ofthe anal stabments for the year nde 31 March 2015 27 Contingent Lisbties apt aie: aie ay ete Corre Digan Roan oe tg not dg Pang seen Urine tase Pear eee ‘as se nu ve I pone Tra omouy apn fase oacane noe tah NN cise iivier taba etary (0 teen cancer tes Reco oe Ps er aoe per Yen xe Tena Paar a cenpy tat spane tbe spens anyone enc mascara opera eet Sep race Solent saan be cnpay servos cpt (0 14ers ste ata a a tate Ma 207 F205 Tang a Shen desonszart’posseae pes has tsa aeons) Cay (Asuna et eth 2 ty TEA ope te ches ane Ma oe Sead pron oc raga or Bon Soa 1 A ec arPin oy ta ea a Cf ai pt lg ne {3 ton Sonor coat ptm wong oh aun hab Pon a 88 ‘hate rena Sromuet st sent Sao ea (canner ting Ut ed nd YE pgs Stan pan tm Coa nae tl nbn ‘Seatierhty ets psasny ar pen on apy moat 23] an gesen wr mes ort me Shocae pene ortega ("emu afdawese omer puree ore ve ha potwon "ale cs bn at ocscage heave na coy sessolngecsn cats a el east UT Maa Fad ey en tal open UH, eraser esi Yn a-ha ten sed ga ing 2500, AHR 8 ‘Soe Scuoa ba none spn tre eso ci saan om ee nsimeanen tna conarycet at none senate Mo iy 28 Capital and Other Commitments puneont Se * Maen capac cai us ow 2 ea tem {0 DWidend Remited in Foreign Exchange ‘arora ang SR Cynon nn ee cm) 2 atUTI Asset Management Company Limited [Notes tosecoant senate oan forming part tthe nancial atten fr the year onde 3 March 2048 {31 Eamings in Forelgn Currency (accrual bsis) wear Salina en seie ean ae oa os ex. aa 432 Expense in Foreign Curconey (oceral basis} eainem ~~ yea Seer sorascibie mcs. 35 Relate Party Transaction ‘Bim tcesrn ne 0 eat nnn cake Cpe ni a) ah 08 cong te ae ih ‘etsnwasomas mart Saou outs na ames late paues were cera exe respoct of water transactions hve aca nt Siisbenc Onan seth swears Enmcor asec es) Ps har ee 83%) ade Pe ota Les 7 itera xtc my ie teas se on \itnmaieal enon rae Les 1 ts of par Unb Cee, \tieert ansuron Candy uth) og 0% vy eon Lined eri ut a Ea cin ue ya jute Soseco} Pi Unibd ‘01 fous Foenrzene [urease aap rr ind ‘as Fem eam [otra (Saeco) Pe ine hain Oe [or varatna (Snap) a Unies Jenin Pe [sagen Oro of ANCES ene ‘eoticete enix ban 2) {4 Earnings Per Sharo Serine rs cepa arctan Ast Ss 0 aay CA faa tesco, sore — aa ee Aer Tanke wy [star some cacy EPS lear : ou 120) [coal aD i 1 [soem ouubd eS) ccd 1 ase Eamnpe Pr Saat Dlaea Ean er srr iroUTI Asset Management Company Limited Notes to accounts annexed to and forming part of the financial statements for the year ended 31 March 2015 35. (a) In accordance with the requirements of the Accounting Standard 15 b) ated to Employee Benefits, in regard to any future obligation related to Provident Fund, arising due to interest shortfall (.e. interest rate prescribed by the government from time to time to be paid on provident fund scheme exceeds rate of interest earned on investment), the amount of shortfall, if any, be borne by UTI Asset Management Company Limited, the same is treated as defined benefit plan. However, at present the fund does not have any existing deficit or interest shortfall... In accordance with Accounting Standard 15, notified in The Companies (Accounting Standards) Rules, 2006, the details of Company's following benefit plans as certified by Life Insurance Corporation (LIC) of India. with whom Insurance policies have been taken are given here below. Employees Leave Employees Group Trevenment Employees Group Sheraton scheme atalty, scheme 2015 201420152014 2018014 Discount’ rate (oer i an 8% BB aH a 6% So te mk team eCeeote 7% ™% ™% 7% ‘compensation levels, The expected retum on pian assets is based on market expectation, at the beginning of the year, for returns over the entire life of the related obligation. The Gratuity scheme is invested in a Group Gratuity - Cum Life Assurance cash accumulation policy issued by Life Insurance Corporation (LIC) of india The investment retum earned on the policy comprises bonuses declared by LIC having regard fo LIC’s investment earning. The information on the allocation of the fund into major asset classes and expected return on each major class are not readily available. (©) The following table sets out the status of the different employee welfare plans, reconciliation of opening and closing balances of the present value of the defined benefit obligation1) Changes in the Present value of obligations (Rs, crore Group Leave | _Employac's | Employee's Encashment Gratuity Fund ‘Annuation Fund 2015 (2014 2015 2014 2015 2014 Present Value of obligation as at beginning ae zisz| 2010) 4867] 4aea| 7028] 0421 Current Service cost 4.78 1.57 4.44 0.93 3.57 3.39 intrest Cost 176[ 161] 300] as7] sez] 513 Curtaiiment Goat (Grea NiL[ NIL NL wie Ne [Ni Settlement Cost/ (Credit) NIL NIL NIL Nit[ NIL NIL Benefits Paid (4.32) (3.65) | (1.02) (1.00) | (0.97) (4.58) Actuarial (gain)/loss on obligations 4.95 2.29 1,33 0.53 5.06 (0.87) Present value of obligation as at March 31 26.08 21.92 | 54.02 48.67 | 83.56 70.28 11) Changes inthe Fair value of Plan Assets (Rs. crore) Group Leave | Employee's | Emplayoo's Encashment Gratuity Fund ‘Annuation Fund 201s | a0ia | 2016 | 21a | 2018 | 2014 faa ‘Value of Plan Assets as at beginning of 19.59 4688| 49.51 46.38 | 104.64 97.44 year Expect return on Pan Assote qea[ ter[ aa] ara] ear] aan ‘Actuarial gain and losses on Plan Assote SD Contributions 4.10 4.79 0.00 Nit NIL NIL Benefits Paid (4.32) (3,85) | _ (1.02) (1.00) | (0.97) |_(1.58) Unpaid Amount NIL NIL NIL NIL NIL NIL Fair value of Plan Assets at March 31(Net of unpaid amount) 21.20 19.59] 52.98 49.61 | 113.23 | 104.64 iii, ) Amount to be recognised in the Balance Shee (Rs.Crore) GroupLeave | _Emproyests | Emplovee's Eneashment Gratuity Fund | a nnustion Fund 2015 2014 2015 2014 2015 2014 Present Valve offended /unfonded reser vate oes 2608 | 2192] s4c2| 4a07| e350] 7028 Fa vale of Plan Asses as atthe end of ey 2120| 1960] s2e8] 4ost| 11223] soaee Funded status (4.88) (2.32) | (1.04) 0.84 | 29.67 34.36 Unfunded net Asset (lability Uoheied es 488] 232] 0a | 02] 2067/2436 és S)iv) Components of total Expenses: (Rs. Crore) Group Leave | Employee's | Pmpeyens Encashment Gratuity Fund | annuation Fund 2015 2014 2015 2014 2015 2014 Current Service cost 1.78 4.57 1.14 0.93 3.57 3.39 Interest cost 175| 16t| a0] 367] sez] 5.13 Expected Retum on Plan Assets (1.83) (1.57) | (4.49) (4.13) | (8.37) |_ (8.81) ‘Curtailment Gost (Creait) NiL NIL NIL Nit] NIL NIL Settlement Cost/ (Credit) NIL NIL NIL NIL NIL NIL Nat Actuarial (gains) / losses recognized in poperr) 495] 228] 133| 082] 387] (087) Total Expenses 6.65 3.89 1.88 0.89 4.69) (1.16) ) Experience Adjustment for the years ended: a) Group Leave Encashment: (Rs. Crore) [Particulars 2018 | 2014 2013 2012[ 201 Plan Assets 21.20 19.60 16.88 | 12.76 14.58 Defined Benefit Obligation 2608/ 24.92 17.58 1.67 Surplus / (Deficit) (2.32) (4.81) 12.90 Experience Adjustment Gain / (Loss) on Z HE ot a Plan Assets | | | Expenditure Adjustment (Gain) / Loss on ‘Doerr sos] 226] a18| save] 1008] b) Employee's Gratuity Fund: (Rs. Crore) Particulars 2015 2014 2013 2012 2011 | Pian Assets s2.93| 4951| 46.38| 4002] 21.74 Defined Benefit Obligation 5402} 4es7| 4464] 4189) 9725 Surplus / (Deficit) (1.04) 0.84 174] o97)| 4851) Experience Adjustment Gain / (Loss) on : : - : Pian Assets i Expenditure Adjustment (Gain) / Loss on | Plan Liabiitios (1.33)] 053] (.05)) 145] 28.18c) Employee's Super Annuation Fund (Rs. Crore) Particulars 2015| —2014| 2013, 2012 2011 Plan Assets 113.23 | 104.64 974t g9s2| 62.40 Defined Benefit Obligation 83.56, 70.28] 6421 52.58| 40.96 Surplus / Deficit) 2067) 34.36 33.20| 36.94] 42.04 Experience Adjustment Gain / (Loss) on f ef . Plan Assets : : Expenditure Adjustment (Gain) / Loss on Pian Liabilities 6.07) | (0.86) 5.24 737 1.84 The company commenced operations from 01/02/2003 and formed a Pension Trust which inherited the Employees Group Superannuation Fund from the erstwhile Unit Trust of India. The company is making 10% of basic salary and additional pay, wherever applicable, as employer contribution to this trust and any shortfall in the fund size as per the scheme. However gain / asset arising out of actuarial valuation by the LIC of India is not recognized in the books of the company in absence of certification from LIC of India as required under Accounting Standard -15- ‘Employee Benefits’ read with Actuaries Act 2006. The company has recognised the contributions of Rs. 12.17 crore (Previous Year 10.16 crore ) paid to the UTI Asset Management Company Limited — Pension Trust as Advance to Pension Trust under Loans and Advances... The Employees Superannuation Fund has an excess fund of Rs 29.67 crore (Previous year Rs. 34.36 crore) and accordingly no further contribution has been made. There is an unfunded liability Rs. 7.28 crore (Previous year Rs. 4.10 crore) in respect of Employees Leave Encashment scheme. Life Insurance Corporation of India (LIC) vide their valuation for Leave encashment dated 18" April 2015 have advised liability of Rs 7.28 crore which includes Rs. 5.03 crore in respect of additional fund and service cost of Rs. 2.25 crore. Accordingly, employee cost includes Rs. 7.28 crore provided for Leave encashment shorfall and premium of Rs.0.02 crore has been charged to Statement of Profit & Loss for the Financial Year 2014-15. There is an unfunded liability Rs. 1.65 crore (Previous year Rs. NIL) in respect of Group Gratuity Scheme (GGS) for employees. Life Insurance Corporation of India (LIC) vide their valuation for GGS dated 18" April 2015 have advised liability of Rs 1.65 crore which includes Rs, 1.20 crore in respect of additional fund and service cost of Rs. 0.45 erore. Accordingly, employee cost includes Rs. 1.65 crore provided for GGS shortfall and premium of Rs.0.04 crote has been charged to Statement of Profit & Loss for the Financial Year 2014-16.36. Segmental Reporting ‘The company is primarily engaged in the invesiment management business and providing wealth management services. The wealth management services is not a ‘reportable segment’ as per the definition contained in Accounting Standard 17 on ‘Segment Reporting”!. Hence there is no separate reportable segment. 37. Managerial Remuneration 38, 39. a. a) The particulars of the remuneration of the Managing Director for the current period are as under: ___Rsin Crore Particulars F Year Ended | Year Ended 31.03.2015 _| 31.03.2014 Salary & Allowance (including perquisite) 5.44 3.22, Contribution fo Retirement Benefits 0.07 0.05 Total 7 a 5.1 3.27 b) Mr, Leo Puri has been appointed as a Managing Director from 14th August 2013. ¢) The Computation of profits under Section 198 of the Companies Act, 2013 has not been given as no commission is payable to the Managing Director. Pending negotiation for wage revision for non- managerial staff, a provision has been made in the accounts. ‘Amount of expenditure incurred on Corporate Social Responsibility activities during the year Rs.0.67 crore( Previous year NIL) ‘The company has taken office and residential premises under operating lease. These are generally cancelable at the option of the company. The lease payments are recognized in the profit and loss account is Rs.13.84 crore (Previous Year 12.35 crore). The Schemes of UTI Mutual fund had invested in the ‘Pass Through Certificate” (PTC) issued by various securitization trusts setup by IL&FS Trust Company Limited. The income Tax Department treated the interest income from the PTC as taxable in the hands of such securitization Trusts. The entire income of Mutual Fund schemes are exempt from income tax as per the provisions of Section 10(23D) of the Income Tax Act. The department has also issued the demand notices to the various Mutual Funds who are the beneficiaries in such Trusts. The UTI Mutual Fund has also received the demand notice for AY 2009-10 and AY 2010-11. The Fund had filed Writ Petition for both the years before the Honorable High Court and the Honorable High Court has stayed all action by Income Tax Department (including recovery of demand) till the disposal of the appeal by the CIT(A). Based on the expert's42, 43. advise the management does not expect the liability to orystallize hence no provision is made in the books of accounts. Information with regard to the additional information specified in paragraph 5 (ii), 5(ii), 5(iv), 5(¥), S(viil) (2) and S(vii) (c ) of part Il of Schedule Ill to the Companies Act, 2013 are either nil or not applicable to the company for the year ended 31st March 2015. Previous year's figures have been regroupedireclassified wherever necessary, to conform to current year's classification. For and on behalf of the Board of Directors of ‘As per our report of even date For CHHAJED & DOSHI Chartered Accountants Q.. ee FRN : 101794W- Leo Puri Managing Director —~ ae pee CA Kiran K pene =: \intalyazur Rahman Partner f hiof Financial Officer WRN: o1027e | Place: Mumba! Date: The 28% April, 2015 UTI Asset Management Company Limited frwer@ lola PN Venkatachalam Director ce Kiran Vohra ‘Company Secretary