HDFC Asset Management Company Limited

Board of Directors
Mr. Deepak S. Parekh Chairman

Directors’ Report
TO THE MEMBERS Your directors have the pleasure in presenting the Thirteenth Annual Report together with the Audited Accounts of the Company for the year ended March 31, 2012.

Financial Results
For the year ended March 31, 2012 (` in Crores) For the year ended March 31, 2011 (` in Crores)

Directors Mr. Norman Keith Skeoch Mr. James Aird Mr. Hoshang Billimoria Mr. P. M. Thampi Dr. Deepak B. Phatak Mr. Humayun Dhanrajgir Ms. Renu Sud Karnad Mr. Rajeshwar R. Bajaaj Mr. Keki M. Mistry Mr. Vijay Merchant

Mr. Milind Barve Managing Director

Auditors Haribhakti & Co. Chartered Accountants

Profit before Tax Provision for Tax (Net Deferred Tax) Short provision of Income Tax for earlier years (net) Profit after Tax Balance brought forward from previous year Profit available for appropriation General Reserve Capital Redemption Reserve Transfer to Corporate Social Responsibility Fund Buy-back of Equity Shares Interim Equity Dividend Paid Tax on Interim Equity Dividend Paid Proposed Equity Dividend Tax on Proposed Equity Dividend Balance carried to Balance Sheet For the year ended March 31, 2012, the Company posted a net profit of ` 269.14 crores as against ` 242.11 crores in the previous year. Appropriations from the net profit have been effected as per the table given above. Dividend Your directors paid interim dividend of ` 33/- per equity share in the month of March 2012 and the same is confirmed as Final Dividend for the financial year ended March 31, 2012. Allotment of equity shares: During the financial year ended March 31, 2012, the Company

381.49 112.33 0.02 269.14 404.16 673.30 26.92 0.50 5.00 57.19 83.06 13.48 — — 487.15

355.78 113.60 0.07 242.11 281.32 523.43 24.22 0.49 — 9.45 72.99 12.12 — — 404.16

Bankers HDFC Bank Ltd.

allotted 505350 equity shares having a face value of ` 10/- each pursuant to the Employee Stock Options Schemes of the Company. Buy Back of equity shares: During the financial year, the shareholders of the Company at their meeting held on October 25, 2011 approved the buy back of equity shares of the Company from the shareholders of the Company through Tender offer. The buy-back offer was completed within the time limits as prescribed under the Companies Act, 1956 and 504200 equity shares of the Company were bought by the

Registered Office Ramon House, H. T. Parekh Marg, 169, Backbay Reclamation, Churchgate, Mumbai 400 020. Tel. No. : 022-6631 6333 Fax No. : 022-2204 4304

217

Thirteenth Annual Report 2011-12

Company under the buy-back offer. The present paid up capital post the buy-back offer is ` 25,17,01,500.

Review of Operations Your Directors are pleased to report that: The Average Assets under Management (AAuM) during the financial year 2011-12 were ` 90,589.71 crore as against AAuM of ` 89,482.52 crore in financial year 2010-2011, which is a marginal increase of 1.24% over previous financial year but still compares favorably with that of the industry which fell by 0.42% over the corresponding period. HDFC Mutual Fund (HDFCMF) improved its position during the current year to become the largest fund house and also improved its overall market share from 12.31% during the quarter ended March 31, 2011 to 13.52% during the quarter ended March 31, 2012. During the year, the total number of accounts managed by HDFCMF rose by around 10% to 51.26 lac as at March 31, 2012 from 46.55 lac as at March 31, 2011. The number of Investor Service Centres (ISCs) of the AMC as on March 31, 2012 was at 115. ISCs of Computer Age Management Services Pvt. Ltd. (CAMS), the Registrar and Transfer Agent of HDFCMF are Official Points of Acceptance for transactions of HDFCMF Schemes. These offices (212 as on March 31, 2012) supplement the investor-servicing network of your company. With these offices, your company services investors in over 200 cities pan India. During the financial year, the aggregate assets under investment management/advisory services under Portfolio Management Services were at ` 2,404.33 crore as on
218

March 31, 2012. Discretionary Portfolio Management is provided to High Networth Individuals and Corporate(s) on a segregated basis while advisory services are provided to Institutional Investors and Corporate(s). Your company under Portfolio Management Services had offered “HDFC AMC PMS-Real Estate Portfolio-1” to resident individuals and corporate (s) during 2007-2008. The company had received commitments of ` 3,831 Crores from 10,168 clients. Your company has successfully exited investments to the tune of ` 737.75 crores till March 31, 2012.

Fund House during the year under review: 1) Outlook Money Awards 2011# HDFC AMC won the “Best Fund House of the Year” award. HDFC AMC won the “Best Equity Fund House of the Year” award. 2) ICRA Mutual Fund Awards 2012# HDFC Mutual Fund was awarded as the ‘Star Fund House of the Year’ indicating Best Performance in the ‘Equity Category’ for the one year period ending December 31, 2011. 3) Bloomberg UTV Financial Leadership Awards, 2012# HDFC Mutual Fund won the ‘Best Mutual Fund - Equity’ award of the year. During the year under review, the following schemes of HDFC Mutual Fund also received awards: 1) ICRA Mutual Fund Awards 2012 – HDFC Mutual Fund# HDFC Top 200 Fund – Ranked as “7 Star Fund” has been awarded Gold Award for ‘Best Performance’ in the category of Open Ended Equity - Large Cap for three year period ending December 31, 2011. HDFC Equity Fund – Ranked as “7 Star Fund” has been awarded Gold Award for ‘Best Performance’ in the category of Open Ended Dynamic for one year period ending December 31, 2011. HDFC Prudence Fund – Ranked as “7 Star Fund” has been awarded Gold Award for ‘Best Performance’ in the categor y of Open Ended Balanced for three year period ending December 31, 2011. HDFC Multiple Yield Fund - Plan 2005 - Ranked as “7 Star Fund” has been awarded Gold Award for ‘Best

New Scheme launched under HDFC Mutual Fund
HDFC Mutual Fund had launched HDFC Gold Fund, an open-ended fund in October 2011 which invests in HDFC Gold Exchange Traded Fund. The Fund is beneficial for retail investors who cannot invest in a Gold ETF due to limited access to a secondary market broker or a demat account, HDFC Gold Fund Offers an avenue to invest in gold from the mutual fund. Further, it offers retail investors an option to invest in gold via SIPs and spread out their investment over a period of time in small lots. It provides an avenue to accumulate gold for use in future. HDFC Gold Fund is a convenient platform for investing in gold as it offers inherent advantages over buying gold in a physical form like no storage cost, no theft risk and convenience in buying/selling, etc.

Awards Your Directors are pleased to inform that HDFC Mutual Fund/HDFC AMC received the following awards as

HDFC Tax Saver . 2011. Necessary resolutions for the reappointment of the aforesaid Directors have been included in the notice convening the Annual General Meeting. Board Meetings The meetings of the Board of Directors are held at the Company’s registered office in Mumbai. # Please refer www.6% in the category of Open Ended Equity Linked Savings Scheme (ELSS) for three year period ending December 31. HDFC Equity Fund .6% in the category of Open Ended Balanced for one year period ending December 31.000.Dynamic for three year period ending December 31. Deepak S. 2011 and February 3. Rajeshwar Raj Bajaaj. 1956 and the Articles of Association of the Company. August 12. 2011. Deepak Phatak and 219 .Long Term Plan . Mr. 1956. They are eligible for re-appointment. Six Board meetings were held during the financial year under review – on April 28. 2) CNBC-TV18-CRISIL Mutual Fund Awards 2012# HDFC Mid-Cap Opportunities Fund won the Award under the “Small and Mid Cap Equity Funds” category for the calendar year ended December 31. December 9. Deepak B. Rajeshwar R. None of the Directors of the Company are disqualified for being appointed as Directors as specified in Section 274 of the Companies Act. 2011. HDFC Monthly Income Plan Long Term Plan won the Award under the “Monthly Income Plans” category for the calendar year ended December 31. etc. Parekh. sovereign wealth funds. 2012. HDFC Multiple Yield Fund – Ranked as “5 Star Fund” indicating performance among top 4. retire by rotation at the ensuing Annual General Meeting. insurance companies.Ranked as “5 Star Fund” indicating performance among top 4. HDFC Floating Rate Income Fund .Ranked as “7 Star Fund” and has been awarded Gold Award for ‘Best Performance’ in the category of Open Ended DebtIntermediate for one year period ending December 31.hdfcfund. 2011. P. 2008 for providing fund management and advisory services to financial institutions like pension funds. Ms. Keki M. HDFC Children’s Gift Fund – Ranked as “5 Star Fund” indicating performance among top 4. HDFC Mutual Fund won the “Equity Mutual Fund House of the Year” Award for the calendar year ended December 31. Mistry (xi) Mr. Vijay Merchant (xii) Mr. Phatak (viii) Ms. 2011. 2011. October 25. Prashant Jain won the “Equity Fund Manager of the Year” Award for the calendar year ended December 31. The AMC had incorporated a wholly owned subsidiary Company in Singapore on April 10..M. Hoshang Billimoria (vi) Mr.25. 2011. James Aird (iv) Mr. Directors. Mr. 2011. 2011. June 27. for the abovementioned Awards. The Company had made an application to the Monetary Authority of India (MAS) for Capital Markets Services License (CMS) for providing full fund management and advisory services. Bajaaj (x) Mr. HDFC Balanced Fund won the Award under the “Balanced Funds” category for the calendar year ended December 31. 2011.6% in the category of Open Ended Equity . Renu Sud Karnad (ix) Mr. Milind Barve (Managing Director) Directors In accordance with the Companies Act. Deepak S. Humayun Dhanrajgir (v) Mr. Review of the subsidiary company HDFC ASSET MANAGEMENT COMPANY (SINGAPORE) PTE. 2011. 2011. Dr. etc.Ranked as “5 Star Fund” indicating performance among top 4. Thampi (vii) Dr. Norman Keith Skeoch (iii) Mr. 2011.for one year period ending December 31. HDFC Cash Management Fund Treasury Advantage Plan won the Award under the “Ultra Short Term Funds – Retail” category for the calendar year ended December 31.com for further information on the Ranking Methodology/Disclaimers.6% in the category of Open Ended Marginal Equity .HDFC Asset Management Company Limited Performance’ in the category of Open Ended Marginal Equity for three year period ending December 31. 2011. 2011. The paid up capital of Company was Singapore $1. 2011. The attendance of each Director at the meetings of the Board of Directors is as under: Directors Number of Board Meetings Attended (i) Mr. Mr. 2011. Parekh (Chairman) 6 4 6 6 6 6 4 5 6 6 6 6 (ii) Mr. Renu Sud Karnad. LTD. venture capital funds. HDFC Mutual Fund won the “Mutual Fund House of the Year” Award for the calendar year ended December 31.

Hoshang Billimoria (Chairman). Parekh Chairman . Mr. (ii) Accounting policies selected were applied consistently.. Association of Mutual Funds of India. 1975 are set out in the annexure to the Directors’ Report. Reserve Bank of India.Thirteenth Annual Report 2011-12 Board Committees To enable better and more focused attention on the affairs of the Company. 1956. The Directors wish to place on record their appreciation to employees at all levels for their dedication and commitment. 1956 read with the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules. the Directors’ Report is being sent to the shareholders of the Company excluding the annexure. 1956. The Audit Committee has been constituted and functions in accordance with the provisions of Section 292A of the Companies Act. bankers. earnings and expenditure during the year – • Foreign exchange (earnings): ` 1. (iii) Proper and sufficient care has been taken for maintenance of adequate accounting records in accordance with the provisions of the Companies Act. Auditors M/s. (iv) The annual accounts of the Company have been prepared on a going concern basis. On behalf of the Board of Directors MUMBAI April 25. Thampi. The Directors also acknowledge the faith reposed in HDFC Mutual Fund by its investors and look forward to their continued support. The Directors would like to convey their gratitude to Housing Development Finance Corporation Limited and Standard Life Investments Limited and look forward to their continued support. 220 (b) Foreign Exchange. Chartered Accountants. Humayun Dhanrajgir and Mr. 2012. Investor Service Centres and other service providers. your Directors state that: (i) In the preparation of accounts. the Company has not accepted any deposits from the public. 1956.61 crores) (including Equity Dividend). Mr. 1988 are not applicable. The Audit Committee met prior to the finalization of the accounts for the year ended March 31. Remuneration Committee. particulars required to be disclosed with respect to the conservation of energy and technology absorption in terms of Section 217(1)(e) of the Companies Act. key partners. 1956. the applicable accounting standards have been followed. Risk Management Committee and Customer Services Committee to which specific matters have been delegated from time to time. The Company has received a certificate from them to the effect that their re-appointment. P. Statutory Auditors of your Company holds office until the conclusion of the ensuing Annual General Meeting and is eligible for reappointment. James Aird. Haribhakti & Co. 1956 read with the Companies (Particulars of Employees) Rules. the Board has constituted Committees of the Board such as Audit Committee. The Committee met 7 times during the financial year under review. would be within the limits prescribed under Section 224(1B) of the Companies Act. 2012 Deepak S.12 crores (previous year: ` 30. support and guidance given by the Securities and Exchange Board of India. These Committees prepare the groundwork for decision-making and report at the subsequent Board meeting. Mr. The Company Secretary acts as the secretary to the Committee. • Foreign exchange (expenditure): ` 35. Keki Mistry. Technology Absorption and Foreign Exchange Earnings and Expenditure (a) Since the Company does not carry out any manufacturing activities. In terms of the provisions of Section 219(1)(b)(iv) of the Companies Act. 2012 and of the profit of the Company for year ended on that date. Particulars regarding Conservation of Energy. Any shareholder interested in obtaining a copy of the said annexure may write to the Company Secretary at the registered office of the Company. for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities. 1956 and based on the information provided by the management. Directors’ Responsibility Statement In accordance with the provisions of Section 217(2AA) of the Companies Act. Acknowledgements The directors acknowledge the valuable assistance. Particulars of Employees Particulars of employees as required under Section 217(2A) of the Companies Act. M. Reasonable and prudent judgments and estimates were made so as to give a true and fair view of the state of affairs of the Company at the end of March 31. if made.11 crores (previous year: ` 1. distributors. Audit Committee The members of the Audit Committee are Mr.23 crores). Public Deposits During the year under review.

and give a true and fair view in conformity with the accounting principles generally accepted in India: (i) in the case of the Balance Sheet. of the Profit of the Company for the year ended on that date and (iii) in the case of the Cash Flow Statement. We have audited the attached Balance Sheet of HDFC ASSET MANAGEMENT COMPANY LIMITED as at March 31.HDFC Asset Management Company Limited Auditors’ Report TO THE MEMBERS OF HDFC ASSET MANAGEMENT COMPANY LIMITED 1. For HARIBHAKTI AND CO. in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. 3. (ii) in the case of the Statement of Profit and Loss. Statement of Profit and Loss and Cash Flow Statement for the year ended on that date annexed thereto. 1956. 2012 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act. 2012 and taken on record by the Board of Directors of the Company. (d) in our opinion. Firm Registration No. we report that: (a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit. 1956 in the manner so required. 2012. (e) On the basis of the written representations received from the directors of the Company as on March 31. (b) in our opinion. (f) In our opinion and to the best of our information and according to the explanations given to us. An audit includes examining. 1956 to the extent they are applicable to the Company. the said Financial Statements give the information required by the Companies Act. the Balance Sheet. 2012. Statement of Profit and Loss and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of the section 211 of the Companies Act. we report that none of the director is disqualified as on March 31. These Financial Statements are the responsibility of the Company’s management. 2. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the Financial Statements are free of material misstatement. As required by the Companies (Auditors’ Report) Order. 103523W Rakesh Rathi MUMBAI April 25. evidence supporting the amounts and disclosures in the Financial Statements. (c) the Balance Sheet.. 1956’ of India (the ‘Act’) and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us. of the state of affairs of the Company as at March 31. of the cash flows for the year ended on that date. 2003 (as amended). Further to our comments in the paragraph 3 above. on a test basis. Statement of Profit and Loss and Cash Flow Statement dealt with by this report are in agreement with the books of account. we give. An audit also includes assessing the accounting principles used and significant estimates made by management. Our responsibility is to express an opinion on these Financial Statements based on our audit. Chartered Accountants. 4. proper books of account as required by law have been kept by the Company so far as appears from our examination of those books. 2012 Partner Membership No: 45228 221 . as well as evaluating the overall presentation of the Financial Statements. We conducted our audit in accordance with Auditing Standards generally accepted in India. issued by the Central Government of India in terms of subsection (4A) of Section 227 of ‘The Companies Act. We believe that our audit provides a reasonable basis for our opinion.

(a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund.27. income-tax. service tax and other statutory dues were outstanding. (c) In our opinion and according to the information and explanations given to us.035/- A. In our opinion and according to the information and explanations given to us. The clause (viii) of Para 4 of the Companies (Auditor’s Report) Order. Accordingly. the transactions made in pursuance of such contracts or arrangements exceeding value of ` Five lakhs have been entered into during the financial year at prices which are reasonable having regard to the prevailing market prices at the relevant time. 2003 (as amended) is not reported upon as it is not applicable to the Company.990/- 222 . In our opinion. (c) According to the records of the Company.312/Income Tax 7. (b) The fixed assets of the Company have been physically verified by the management during the year and no material discrepancies between the book records and the physical inventory have been noticed. 2003 (as amended) is not reported upon as it is not applicable to the Company. wealth tax. at the year end.Y. firms or other parties covered in the register maintained under section 301 of the Companies Act. for a period of more than six months from the date they became payable.29. 2012. iv. ix. we are of the opinion that the particulars of contracts or arrangements referred to in section 301 of the Companies Act. Accordingly. the frequency of verification is reasonable. the Company has not taken any loans. 1956. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. (a) According to the information and explanations given to us. the provisions stated in paragraph 4 (iii) (f) and (g) of the Order are not applicable to the Company. The clause (ii) of Para 4 of the Companies (Auditor’s Report) Order. vii. the provisions stated in paragraph 4 (iii) (b). 20082009 Commissioner of Income Tax (Appeals) Commissioner of Income Tax (Appeals) Commissioner of Income Tax (Appeals) Income Tax Appellate Tribunal Income Tax 43. viii. firms or other parties covered in the register maintained under section 301 of the Companies Act. (b) According to the information and explanations given to us.262/Income Tax 58. i. 1961 Income Tax Act. iii. 1961 Income Tax Act. In our opinion. the Company has not accepted any deposits from the public within the meaning of sections 58A and 58AA of the Act and the rules framed thereunder. 20032004 A. ii. In our opinion and according to the information and explanations Name of the Statute Nature of the Dues Amount ` given to us. are as follows: Period to which the amount relates Forum where dispute is pending Income Tax Act. a substantial part of fixed assets has not been disposed of by the Company during the year. no undisputed amounts payable in respect of provident fund.95.Y. 1956 that need to be entered into the register maintained under section 301 have been so entered.Y. (b) In our opinion and according to the information and explanations given to us. 20022003 A. During the course of our audit. the dues outstanding of income-tax on account of any dispute. 20062007 A. we have not observed any continuing failure to correct weakness in internal control system of the Company. the Company has not granted any loans. secured or unsecured from companies. income-tax. (c) and (d) of the Order are not applicable to the Company. (a) As informed. the Company has an internal audit system commensurate with the size and nature of its business. 1956. (e) As informed. 1961 Income Tax Act. 1961 Income Tax 63. there exists 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 with regard to the sale of services.Y.Thirteenth Annual Report 2011-12 Annexure to the Auditors’ Report ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF HDFC ASSET MANAGEMENT COMPANY LIMITED ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31. service tax and other statutory dues applicable to it.63. wealth-tax. v. secured or unsecured to companies. vi.

In our opinion and according to the information and explanations given to us. Accordingly. In our opinion and according to the information and explanations given to us. The Company has not raised money by way of public issue during the year. the Company has not given any guarantee for loans taken by others from banks or financial institutions during the year. xiv. xiii. nor have we been informed of such case by the management. xii. xi. During the course of our examination of the books and records of the Company. xxi. In our opinion. carried out in accordance with the generally accepted auditing practices in India. debentures and other investments. According to the information and explanation given to us. Firm Registration No. the Company has not taken any loan from Financial Institution. debentures and other securities. 2003 (as amended) is not reported upon as it is not applicable to the Company. no debentures have been issued by the Company during the year. and according to the information and explanations given to us. noticed or reported during the year. Therefore. xx. According to the information and explanations given to us and based on the documents and records produced to us. According to the information and explanations given to us. The Company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current and immediately preceding financial year. we report that no funds raised on short-term basis have been used for long-term investment. 2012 Partner Membership No: 45228 223 . xv. the Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under Section 301 of the Companies Act. the Company has not granted loans and advances on the basis of security by way of pledge of shares.. 1956. securities. xvi. 2003 (as amended) are not applicable to the Company. the provisions of clause (xiii) of paragraph 4 of the Companies (Auditor’s Report) Order. In our opinion. For HARIBHAKTI AND CO. the Company is not dealing in or trading in shares.HDFC Asset Management Company Limited Annexure to the Auditors’ Report (Continued) x. Bank and the Company has not issued any Debentures. we have neither come across any instance of fraud on or by the Company. 103523W Rakesh Rathi MUMBAI April 25. xix. xvii. Chartered Accountants. According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company. The Company has not obtained any term loans. the provisions of clause (xiv) of paragraph 4 of the Companies (Auditor’s Report) Order. the Company is not a chit fund or a nidhi/mutual benefit fund/society. xviii.

960 1127.615 110.42.05.67.299 12 13 14 15 16 492.70.53.44.48.647 8 17.773 1060. Billimoria Deepak B.392 621.41.56. Chartered Accountants Firm Registration No.22. 2012 Milind Barve Managing Director 224 .24.800 1060.73.48. 2012 Particulars Note No.72.441 23.90.418 112.71.84.451 56.955 11.118 522.67.201 27.30.847 422.98.60.Thirteenth Annual Report 2011-12 Balance Sheet as at March 31. 103523W Rakesh Rathi Partner Membership No: 45228 For and on behalf of the Board Deepak S.78.774 9 10 11 26.983 44.6) Long-Term Loans and Advances CURRENT ASSETS Current Investments Trade Receivables Cash and Bank Balances Short-Term Loans and Advances Other Current Assets 1237. Phatak Vijay Merchant Renu Sud Karnad P.419 23.08.89.52.41.871 1. Thampi Rajeshwar Raj Bajaaj Humayun Dhanrajgir Rahul Bhandari Chief Financial Officer Sylvia Furtado Company Secretary Mumbai.628 948.054 17.72.38.595 38.01.851 15.76.31.61.88. Mistry Hoshang S.500 12.16.77.17.68.13.35.91.71.53.500 577.060 425.740 Directors Keki M.15.917 509.43.089 TOTAL ASSETS NON-CURRENT ASSETS Fixed Assets – Tangible Assets – Intangible Assets Non-Current Investments Deferred Tax Assets (net) (see note 21.13.469 39.42.34. April 25.66.83.19.108 39.545 536.41.740 25.02. Parekh Chairman 1237.500 13.M.16.533 14. ` ` March 31.03.075 617.16.01.53.455 58.43.57.09.35.12.91.67.13.71.14.370 15.76. 2011 ` EQUITY AND LIABILITIES SHAREHOLDERS’ FUNDS Share Capital Reserves and Surplus NON-CURRENT LIABILITIES Long-Term Provisions CURRENT LIABILITIES Trade Payables Other Current Liabilities Short-Term Provisions 2 3 4 5 6 7 41.95.98.06.647 TOTAL See accompanying notes to the financial statements As per our report attached For Haribhakti & Co.478 3.26.024 22.14.97.19.30.19.35.000 489.04.28.19.110 1.427 8.13.47.13.097 25.00.

88.766 16.939 108.39.85.HDFC Asset Management Company Limited Statement of Profit & Loss for the year ended March 31.19. Phatak Vijay Merchant Renu Sud Karnad P.77.525 111.13.55.78.05 93.92 96.49.71.734 19 8 20 91.176 35.5) – Basic – Diluted See accompanying notes to the financial statements 106.13.67.38.78.468 2.10.48.315 199.264 85.13. 103523W Rakesh Rathi Partner Membership No: 45228 For and on behalf of the Board Deepak S.901 690.48. 2012 Milind Barve Managing Director 225 .599 381.53.223 56.57.088 680.93. April 25.32. Parekh Chairman Directors Keki M.40.518 308.124 644.28.384 5.00.95. Chartered Accountants Firm Registration No.403 17.83.999 325.36.05.87.923 221.03.25.23. Billimoria Deepak B.M. ` Previous Year ` REVENUE Revenue from Operations Other Income TOTAL REVENUE EXPENSES Employee Benefits Expense Depreciation and Amortization Expense Other Expenses TOTAL EXPENSES PROFIT/(LOSS) BEFORE TAX Tax Expense: Current Tax Deferred Tax Previous Year’s Tax PROFIT/(LOSS) AFTER TAX 17 18 633.75.81.83. Thampi Rajeshwar Raj Bajaaj Humayun Dhanrajgir Rahul Bhandari Chief Financial Officer Sylvia Furtado Company Secretary Mumbai.16. 2012 Particulars Note No.86.45.070 242.751 7.69.696 269.78.89.030 Earnings Per Equity Share (Face Value `10) (see note 21.76 104.76. Mistry Hoshang S.48.14 As per our report attached For Haribhakti & Co.331 85.325 355.34.

Phatak Vijay Merchant Renu Sud Karnad P.147 (1.91.650 (107.910) (26.52. Chartered Accountants Firm Registration No.60.174) (26.11.94.57.93.88.49.767) (6.48.239) 238.91.10.953) 11.26.019) 3.83.21.60.67.510) (182.34. April 25.81.313 (29. CASH FLOW FROM INVESTING ACTIVITIES Purchase of Fixed Assets Proceeds from Sale of Fixed Assets Purchase of Investments Proceeds from Sale of Investments Dividend Received Interest Received Net cash from / (used in) investing activities C.000) 926.000) (12.92.15.18.545) (2.06.96.53.645 (4. CASH FLOW FROM FINANCING ACTIVITIES Proceeds from Issuance of Share Capital Buy Back of Equity Shares Utilisation of Corporate Social Responsibility Fund Dividend Paid Tax Paid on Dividend Net cash from / (used in) financing activities Net Increase / (Decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the Year Cash and cash equivalents at the end of the Year 381.500 3.026) 7.27.69. CASH FLOW FROM OPERATING ACTIVITIES Profit before taxation and extraordinary items Add / (Less) : Adjustment for Depreciation and Amortization Employee Stock Option Scheme Expenses Provision for / (Reversal of) Diminution in the Value of Current Investments Utilisation / Reversal of Provision for Contingencies Profit on Sale of Investments (net) (Profit) / Loss on Sale of Fixed Assets (net) Investment Income Provision for Wealth Tax Operating Profit before working capital changes (Increase) / Decrease in Loans and Advances (Increase) / Decrease in Other Current Assets (Increase) / Decrease in Trade Receivables Increase / (Decrease) in Current Liabilities Cash generated from / (used in) operations Income Tax Paid Net cash from / (used in) operating activities B.72.52.79.62.07.37.112 3.525 16.78.23.99.999 (34.99.27.50.757) (83.000) (83.469) 198.86.20.01.05. Billimoria Deepak B.57.315 83.074 Directors Keki M.70.200 344. 2012 Milind Barve Managing Director Rahul Bhandari Chief Financial Officer Sylvia Furtado Company Secretary 226 .000) 699.72.78.76.630 351.12. Thampi Rajeshwar Raj Bajaaj Humayun Dhanrajgir As per our report attached For Haribhakti & Co.939 17.03.73. 103523W Rakesh Rathi Partner Membership No: 45228 For and on behalf of the Board Deepak S.67.950 (109.357 (5.884 (113.23.836 (56.22.35.57.039 (98.40.823) 89.15.676) 23.41.58. 2012 ` Previous Year ` A.637 14.86.91.61.55.972 (730.94.964) 16.941) 355.17.14.95.59.846 1.905 (26.82.015 5.01.47.17.64.404 (10.40.88.26.846 24. Mistry Hoshang S.11.54.444) (20.432) (164.63.72.34.Thirteenth Annual Report 2011-12 Cash Flow Statement for the year ended March 31.780 2.57.10.83.50.379) 306.11.32.46.03.46.23. Parekh Chairman Mumbai.636 (982.59.01.704 32.01.332) 24.60.05.40.450 (101.67.M.34.775) 22.207) 18.01.350) — (72.167) (6.87.35.22.59.16.941) 1.77.358) (18.64.950) (13.761 (16.91.074 1.24.15.46.395) (22.772 1.923 2.642) 352.13.400) (48.00.19.181 (9.

Gains or Losses arising from disposal of fixed assets are measured as the difference between the net disposal proceeds and carrying amount of the asset and is recognized in the Statement of Profit and Loss. Subsequent expenditure incurred on assets put to use is capitalized only when it increases the future benefit / functioning capability from / of such assets. 1. including day to day repair and maintenance expenditure and cost of replacing parts are charged to Statement of Profit and Loss during the period in which they are incurred. 1956 to the extent applicable. The cost of acquisition is inclusive of taxes. 1. freight and other incidental expenses related to acquisition and installation of the assets. Interest income is recognized on a time proportion basis.4 Cash and Cash Equivalents Cash and cash equivalents represent cash and balance with scheduled banks in current account. In terms of the Investment Management Agreement. 2000. the Trustee has appointed the Company to manage the Mutual Fund.1 Basis of Preparation The financial statements have been prepared on accrual basis of accounting in accordance with historical cost convention. applicable Accounting Standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act. 1. 1993 and provides Portfolio Management Services.5 Fixed Assets Fixed assets are stated at cost less accumulated depreciation / amortization as adjusted for impairment. 2012 Note 1 A) COMPANY OVERVIEW HDFC Asset Management Company Limited (‘the Company’) was incorporated under the Companies Act. The Company is also registered under the SEBI (Portfolio Managers) Regulations. Future results could differ from these estimates.2 Use of Estimates The preparation of financial statements requires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses during the reporting period. 1956 on December 10. 1. Depreciation is charged over the estimated useful life of the fixed asset on a straight-line basis. 1999 and was approved to act as an Asset Management Company for the HDFC Mutual Fund by Securities and Exchange Board of India (SEBI) vide its letter dated July 3. if any. All expenses on existing fixed assets. 227 .3 Income Recognition Management fees and income from investments are accounted for on accrual basis. duties. Dividend income is recognized when the right to receive the same is established. B) SIGNIFICANT ACCOUNTING POLICIES 1.HDFC Asset Management Company Limited SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION (NOTES) FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable.

00 33.00 25.9 Brokerage Brokerage paid on investment in Equity Linked Saving Schemes and Closed Ended Schemes is amortised over a period of 36 months and over the tenure of the scheme respectively.33 33.29 20. Current investments are valued at lower of cost and fair value.00 Over the primary period of the lease term or 5 years. Brokerage paid in advance in respect of Portfolio Management Business is amortised over the contractual period. in the value of Non-Current investments. 1956 except for certain assets.Thirteenth Annual Report 2011-12 1.7 Investments Non-Current investments are stated at cost of acquisition.6 Depreciation / Amortization A) Depreciation on Fixed Assets is provided on straight-line basis at the rates and in the manner prescribed in Schedule XIV of the Companies Act.33 14. Provision for diminution is made to recognize a decline. 1. 1. 1. B) Goodwill Goodwill generated on amalgamation of erstwhile HDFC AMC Services Company Private Limited and HDFC AMC Mauritius Limited. 1. higher depreciation has been provided at the following rates: CLASS OF FIXED ASSET Building Computer Equipment Computer Software Furniture & Fixtures Electrical Installations Office Equipment Vehicles Improvement of Rented Premises RATE OF DEPRECIATION (%) 2. with the Company is being depreciated equally over a period of 10 years. The Company’s contributions are charged to the Statement of Profit and Loss every year. Current assets and liabilities are translated at the ruling rate of exchange at the Balance Sheet date and the resultant exchange gains or losses are reflected in the Statement of Profit and Loss.29 14. other than temporary.10 Employee Benefits A) Provident Fund The Company contributes to the Recognized Provident Fund for its employees.8 Transaction in Foreign Currency Transactions in foreign currency are accounted for at the rates prevailing at the date of the transaction. where based on the Management’s estimate of the useful lives of the assets. whichever is less Assets individually costing less than ` Five Thousand are fully depreciated in the year of purchase/ acquisition. 228 .

In accordance with Securities and Exchange Board of India (Mutual Funds) Regulations. the current tax and the deferred tax.15 Provision for Contingencies In accordance with Accounting Standard on “Provisions.14 Impairment of Assets The Company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired. A contingent asset is neither recognized nor disclosed. 1. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. 1996. Actuarial gains and losses are immediately recognized in the Statement of Profit and Loss. 1. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future. New Fund Offer (NFO) expenses on the launch of schemes is borne by the Company.HDFC Asset Management Company Limited B) Gratuity Company’s contribution in the case of gratuity is funded annually with a life insurance company. The major components of the respective balances of deferred tax assets and liabilities are disclosed in the Financial Statements. Contingent Liabilities and Contingent Assets” (AS-29). arising on account of timing differences. 1. Contingent liabilities are not recognized. The Company’s policy is to carry adequate amounts in the Provision for Contingencies account to meet all contingencies in the business. in respect of which reliable estimate can be made. 229 .11 Operating Leases Leases where the lessor effectively retains substantially all the risks and benefits of ownership over the lease term are classified as Operating Leases. Impairment loss. The provision made for Income Tax in the Financial Statements comprises both. Deferred tax assets and liabilities are measured using the enacted or substantively enacted tax rates at the balance sheet date. 1. The deferred tax assets and liabilities for the year.13 Scheme Expenses Recurring expenses of schemes of HDFC Mutual Fund in excess of limits prescribed by the Securities and Exchange Board of India are accounted under the respective expense heads in the Statement of Profit and Loss. if any. a provision is recognized when the Company has a present legal or constructive obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation.12 Income Tax The accounting treatment for Income Tax in respect of the Company’s income is based on the Accounting Standard on “Accounting for Taxes on Income” (AS-22) issued by the Institute of Chartered Accountants of India. The net present value of the Company’s obligation towards gratuity to employees is actuarially determined by an independent actuary based on the projected unit credit method. 1. are recognized in the Statement of Profit and Loss and the cumulative effect thereof is reflected in the Balance Sheet. is provided in the Statement of Profit and Loss to the extent the carrying amount of assets exceeds their estimated recoverable amount. Operating lease rentals are recognized as an expense on straight line basis over the lease period.

the holders of equity shares will be entitled to receive any of the remaining assets of the Company.200 2.00.800 (Previous Year 3.50.90.00.000 5.98 39.42. 9.00.14.Thirteenth Annual Report 2011-12 Notes Forming part of the financial statements for the year ended March 31.000 5.51.00.500 50.90.69.900) equity shares of ` 10 each are reserved for issuance towards outstanding employee stock options (see note 21.000) Equity Shares of ` 10 each.99 1. In the event of liquidation of the Company.000 25.400 59.500 25. of Equity Shares Share Capital (`) 30.000 80.17.69.500 49.17.00.16.70. no such preferential amount exists currently.00.16.51.51.500 25. 2011 ` AUTHORISED 3.850 2.00.00.64.150 25.16. Total Movement in Share Capital during the year : Current Year Particulars No.00.90.000 25.16.50. after distribution of preferential amount.51. fully paid up.96.51. if any. The distribution will be in proportion to the number of equity shares held by the shareholders.97.600 1.98 39.00.500 30.000) Redeemable.000 50. 230 .400 59. of Equity Shares % of Share Capital Previous Year No.61.00.96.000 80.000 Previous Year No.10.99 6.17.70.28.01.90.01.150 (Previous Year 2. The holders of equity shares are entitled to dividends.000 (Previous Year 5.53.00. proposed by the board of directors and approved by the shareholders at the Annual General Meeting.10).04.000 (Previous Year 3. SUBSCRIBED AND PAID-UP 2.92.51.000) Equity Shares of ` 10 each 5. of Equity Shares Share Capital (`) Shares outstanding at the beginning of the year Add : Shares issued during the year Less : Shares bought back during the year Shares outstanding at the end of the year 2.850 4. of Equity Shares % of Share Capital Housing Development Finance Corporation Limited (Holding Company) & its nominees Standard Life Investments Limited 1.000 The Company has issued only one class of shares referred to as equity share having Face Value of ` 10 each.00.00.05.00.00.00.69. However.000 25.08.000 50.00.64.000 50.050 equity shares of ` 10 each were bought back during last five years.00.000 50.00. 2012 Note 2 SHARE CAPITAL As at March 31.000 25. each holder of equity shares is entitled to one vote per share.500 2. Details of Holding Company and Shareholders holding more than 5 percent Share Capital of the Company : Current Year Name of the Shareholder No. Cumulative Non-Convertible Preference Shares of ` 10 each Total ISSUED.000 25.00.16.01.13. 2012 ` As at March 31.00.350 5.600 1.00.

00.72.08. 231 .64.15.42.000 404.68.054 Pursuant to the approval of the shareholders at the Extraordinary General Meetings and in accordance with the provisions of the Companies Act.00.64.751 577.28. the Company bought back 5.985 83.17.850) at an aggregate value of ` 109.85.78.000 49.91.950 13.02.030 26.76.61.13.00.055 24.13.734 24.180 26.79.950 27.34.01.500) has been transferred to Capital Redemption Reserve in terms of Section 77AA of the Act.12.18.450 — 10.54.91.12.32.00.15.450 27.015 4.56. 1999. 1956 (Act) and Private Limited Company and Unlisted Public Limited Company (Buy-back of Securities) Rules.770 5.46.92.200 equity shares during the year (Previous Year 4.35.10.000 7.01.79.000 12.92.54.55.180 — — — — 281.47.51.00.039 6.35.180 26.000 48.500 — 27. The Company has utilised the Securities Premium Account & Free Reserves for this purpose.000 10.055 24.28.000 50.99.803 50.34.946 2.16.754 489.17.79.000 57.21.500 50.32.88.845 — 72.432 404.754 269.977 242.400 (Previous Year ` 101.419 — 5.510 487. A sum of ` 50.91.48.34.000 4.14.11.00.81.62.26.500 9.000 24.55.21.28.000 83. 2011 ` Capital Redemption Reserve Opening Balance Add : Transfer from Surplus in Statement of Profit and Loss Securities Premium Account Opening Balance Add : Additions during the Year Less : Utilised during the Year Share Options Outstanding Account Opening Balance Add : Additions during the Year Less : Transfer to Securities Premium Account General Reserve Opening Balance Add : Transfer from Surplus in Statement of Profit and Loss Less : Utilised during the Year Corporate Social Responsibility Fund (for social/philanthropic causes & investor centric initiatives) Opening Balance Add : Transfer from Surplus in Statement of Profit and Loss Less : Utilised during the Year Surplus in Statement of Profit and Loss Opening Balance Add : Profit/(Loss) for the Year Less : Appropriations : General Reserve Capital Redemption Reserve Buy Back of Equity Shares Corporate Social Responsibility Fund Interim Equity Dividend Paid Tax on Interim Equity Dividend Paid Total 50. 2012 ` As at March 31.46.21.180 49.803 24.71.28.21.49.28.04.000 (Previous Year ` 49.33.03.08.17.06.42.42.70.00.950 —14.00.85.20.45.06.49.180 63.15.350).79.27.985 63.500 50.21.500 — 27.99.79.HDFC Asset Management Company Limited Note 3 RESERVES AND SURPLUS As at March 31.68.61.803 50.08.

35.14.53.455 As at March 31.7) Total Note 5 TRADE PAYABLES 17. 2011 ` Statutory Dues Employee Benefits Other Dues Total Note 7 SHORT-TERM PROVISIONS 1.545 2.35.Thirteenth Annual Report 2011-12 Note 4 LONG-TERM PROVISIONS As at March 31.118 232 .469 58. 2011 ` For Contingencies (see note 21.07.356 39.27.71.53.455 23.595 58.52. 2011 ` For Taxation Total 536.15.01.060 As at March 31.092 38.95.865 36.13.13.595 As at March 31.89. 2011 ` Sundry Creditors (see note 21.097 23. 2012 ` As at March 31.84.65.565 1.52.49.118 425.01.71.95.57.27.097 17.94.01. 2012 ` As at March 31.43.84.13.324 1. 2012 ` As at March 31.89.47.469 41.14.97.9) Total Note 6 OTHER CURRENT LIABILITIES 41.075 536.79.15.90. 2012 ` As at March 31.97.403 34.075 425.35.14.43.

797 — 73.479 1.775 15.549 66.154 — 15.45.41.712 Furniture & Fixtures 2.952 20.687 32.34.91.49. 2011 For the Year As at As at As at Deductions March 31.99.33.75.700 — — 2.11.78.08.56.050 53.30.502 4.66.43.70.300 8.82.28.789 2.45.248 1.691 Improvement of Rented Premises 29.57.88.60.479 67.464 — 74.69.22.45.96.146 — 66.89.94.925 10.023 Total 73.41.65.60.095 9.70.566 4.115 1.33.57.76.08.77.46.79.843 1.700 2.32.71.60.57.781 28.932 5.66.66.96.886 47.38.62.80.62.384 5.27.70.53.41.74.99.349 Previous Year 55.300 10.549 3.850 Computer Equipment 9.80.90.700 2.666 1.459 1.90.04.90.600 48.83.164 47.19.757 9.14.67.92.41.284 1.35.84.44.03.08.968 7.62.06.039 17.965 8.62.813 — 7.31.486 — 4.83.57. 2012 March 31.54.73.43.70.79.28.61.83.508 10.06.510 3.93.44.37.61.308 41.06.66.01.19.17.39.28.774 15.693 1.50.801 62.17.245 49.624 INTANGIBLE ASSETS — 67.877 1.53.25.667 — — — — 60.717 6.56.30.28.54.57.16.92.78.073 49.77.31.31.276 HDFC Asset Management Company Limited 233 .33.156 — 1.76.33.42.74.70.349 33.16.38.35.75.21.818 70.778 57.48.552 57.99.13.663 4.590 12.82.374 1.691 5.56.370 Buildings 4.44.968 — 65.894 76.19.06.26.370 5.83.90.957 1.466 6.517 Total 65.502 2.38.83.85.881 41.35.41.780 5.102 16.13.64.728 23.77.89.851 — 1.702 Electrical Installations Vehicles 2.65.29.054 1.96.47.851 21.14.10.28.603 4.49.96.Note 8 FIXED ASSETS ` GROSS BLOCK Additions As at Deductions March 31.75.48.934 9.843 2.75.53.46.63.83.575 2. 2012 March 31.154 23.333 2.75.591 29.77.501 8.66.088 4.566 — 2.44.74.66.27.62.594 1.394 65.05.050 Computer Software 6.74.07.72.57.15.713 2.979 38.108 Goodwill 66.07.88.108 8.11.67. 2011 TANGIBLE ASSETS — 1. 2011 DEPRECIATION / AMORTIZATION NET BLOCK As at March 31.53.23.108 13.43.177 Office Equipment 16.979 8.07.40.72.45. 2012 As at March 31.66.700 4.13.427 23.073 Previous Year 72.27.60.556 12.152 65.965 6.82.06.713 2.

Investment in Venture Capital Fund 48.656 (16.931 (5.30.60.592 42.000) of ` 1.000 Units (Previous Year 30.000 each in Fearing Capital India Evolving Fund (Class A) Investment in Bonds 61. 2011 ` Deferred Tax Asset Deferred Tax Liability Total Note 11 LONG-TERM LOANS AND ADVANCES (Unsecured.451 11.24.500 22.80. 2012 ` As at March 31.000 — 27.09.879 5. At Cost) As at March 31. 2011 ` Capital Advances Security Deposits Prepaid Expenses Total 64.09.25.33. Considered good) 12.131 (Previous Year NIL) Tax-Free Secured Redeemable Non-Convertible Bonds of ` 1.60.000 3.70.500 41. Ltd.28.00.809 (Previous Year NIL) Tax-Free Secured Redeemable Non-Convertible Bonds of ` 1.451 As at March 31.41.353 56.500 4.480) 13.00.60.38.15.21.615 8.673) 12.12.16.00.66.34.239 44.31.52.02.000 6.500 3.000 each of Indian Railways Finance Corporation (IRFC) Total Aggregate of Quoted Investments Book Value Market Value Aggregate of Unquoted Investments Book Value Note 10 DEFERRED TAX 41.500 — — 3.95. 2011 ` Investment in Subsidiary Company 1.473 13.925 32.43.31.71.000 22. 2012 ` As at March 31.41.59. 2012 ` As at March 31.15.000 (Previous Year 1.49.63.983 13.80.418 234 .000 — 16.000 each of National Highway Authority of India (NHAI) 1.500 As at March 31.40.60.12.Thirteenth Annual Report 2011-12 Note 9 NON-CURRENT INVESTMENTS (Non Trade.18.38.94.76.23.25.000) fully paid-up Equity Shares of SGD 1 each in HDFC Asset Management Company (Singapore) Pte.60.00.08.87.

379 7.00.06.142 7.21.00.00.68.519 9.399) of `10 each in HDFC Liquid Fund (Growth Plan) 9.64.000 30.69.00.58.00.905) of `10 each in HDFC Capital Builder Fund (Dividend Plan) 50.000 20.92.91.000 50.18.50.00.49.HDFC Asset Management Company Limited Note 12 CURRENT INVESTMENTS (Non Trade) As at March 31.Treasury Advantage Plan (Growth Plan) 1.58.00.00.466 Units (Previous Year 15.508) of `10 each in HDFC Top 200 Fund (Dividend Plan) 29.02.00.40.000) of `10 each in HDFC FMP 13M March 10 (Growth Plan) NIL Units (Previous Year 5.399) of `10 each in HDFC Prudence Fund (Dividend Plan) 6.29.61.00.00.34.987 8.293 175.00.95.74.40.395 7.964 5.00.28.51.17.00. 2011 ` Investment in Schemes of Mutual Fund (Valued at Cost and Fair Value.61.446 Units (Previous Year 1.706 12.000 235 .000) of `10 each in HDFC FMP 370D February 11 (1) (Growth Plan) NIL Units (Previous Year 50.821 Units (Previous Year 26.188 Units (Previous Year 25.785 36.000) of `10 each in HDFC FMP 367D March 10 (1) (Growth Plan) NIL Units (Previous Year 2.000 25.00.000 20.435 7. whichever is lower) 28.69.59.019 6.00.453 7.00.000) of `10 each in HDFC Quarterly Interval Fund-Plan C (Dividend Plan) NIL Units (Previous Year 1.26.51.19.84.11.00.493) of `10 each in HDFC Premier Multicap Fund (Dividend Plan) 35.692 7.11.00.17.22. 2012 ` As at March 31.00.872 105.000) of `10 each in HDFC FMP 14M March 10 (Growth Plan) NIL Units (Previous Year 3.000 10.65.43.603 67.000) of `10 each in HDFC FMP 370D March 11 (3) (Growth Plan) 8.82.64.414 Units (Previous Year 15.00.15.35.344) of `10 each in HDFC Equity Fund (Dividend Plan) 16.90.809) of `10 each in HDFC Arbitrage Fund (Dividend Plan) 16.00.504 Units (Previous Year 4.000) of `10 each in HDFC FMP 370D March 11 (1) (Growth Plan) NIL Units (Previous Year 2.195 6.00.668 Units (Previous Year 44.01.90.503 6.28.61.045 Units (Previous Year 31.53.50.00.00.96.000) of `10 each in HDFC FMP 370D March 11 (2) (Growth Plan) NIL Units (Previous Year 2.00.00.818) of `10 each in HDFC Core & Satellite Fund (Dividend Plan) 8.450) of `10 each in HDFC Cash Management Fund .00.99.727 Units (Previous Year 29.00.00.34.69.992 Units (Previous Year 27.000 — — — — — — — — 7.000 25.59.00.60.27.00.00.177) of `10 each in HDFC Growth Fund (Dividend Plan) 33.Long Term Plan (Growth Plan) NIL Units (Previous Year 1.493) of `10 each in HDFC Floating Rate Income Fund .92.00.48.507 195.56.00.00.38.000 5.95.53.16.48.063 Units (Previous Year 1.000 10.56.486 7.08.81.52.

77.00.60.00.60.51.44.76.00.85. 2011 ` NIL Units (Previous Year 5.00.752 4.00.00.871 236 .00.990 11.66.883 13.00. 2012 ` As at March 31.238 4.000 35.955 422.808 10.000 456.00.00.00.85.69.62.000 50.44.46.857 6.Thirteenth Annual Report 2011-12 Note 12 (Continued) CURRENT INVESTMENTS (Non Trade) As at March 31.85.955 225.83.000 498.48.90.000 30.000) of `10 each in HDFC FMP 370D March 11 (4) (Growth Plan) 6.83.00.000 — — 5.000 225.10.39.02.000 Units (Previous Year NIL) of `10 each in HDFC FMP 182D February 12 (1) (Dividend Plan) 3.05.71.19.42.29.078 1.000 197.88.533 35.49.00.00.35.902 423.988 14.000 Units (Previous Year 50.19.110 1.533 As at March 31.545 492. 2011 ` Investment Management Fee Receivable (less than six months) Portfolio Management Fee Receivable – Over six months – Others Total 6.180 10.000 5.000) of `10 each in HDFC Debt Fund for Cancer Cure (Dividend Plan) Total Current Investments Less: Provision for Diminution in the value of Investments in Schemes of Mutual Fund Net Current Investments Aggregate of Investments in Quoted Mutual Funds Book Value Market Value Aggregate of Investments in Unquoted Mutual Funds Book Value Note 13 TRADE RECEIVABLES (Unsecured.72.00.37.00.00.120 4.00. Considered good) ` — 60.000 Units (Previous Year NIL) of `10 each in HDFC FMP 370D March 12 (1) (Growth Plan) 50.91.00.00.47.35.00.00. 2012 ` As at March 31.

646 32.630 24. 2012 ` As at March 31.953 39.929 67.72.729 22. 2011 ` Advance Payment of Taxes Prepaid Expenses – Related Parties – Others Service Tax Credit Receivable Other Receivables – Related Parties – Others Total Note 16 OTHER CURRENT ASSETS (Unsecured.49.024 431.00. Considered good) 545.28.53.16.79.60.91. 2012 ` As at March 31.628 — 15.96.629 509. 2011 ` Cash and Cash Equivalents – Balances with Banks Other Bank Balances – In Deposit Account (security against bank guarantee) Total Note 15 SHORT-TERM LOANS AND ADVANCES (Unsecured.071 1.69.828 42.98.97.905 8.82.917 As at March 31.92. 2011 ` Interest accrued on Fixed Deposit Interest accrued on Bonds Total 17.231 22. 2012 ` As at March 31.47.65.960 15.101 42.89.72.96.728 52.06.628 237 .562 52.83.87.73.78.023 52.70.68.246 7.851 As at March 31.846 621.37.HDFC Asset Management Company Limited Note 14 CASH AND BANK BALANCES As at March 31.82.83.00.92.200 27.55.487 1.901 44.64.31. Considered good) ` 1.846 6.05.687 5.05.323 24.32.392 1.36.22.29.98.65.82.

727 22.95.23.52.01.58.403 238 .40.015 1.674 85. 2012 ` For the Year ended March 31.46.150 633.01.266 4.766 77.69.24.81.23.223 562.63.008 4.50.73.77.38.34.10.94.48.387 18.81.38.32.11.167 6.440 3.358 — 12.43.39.32.70.207 5.804 2.176 Note 18 OTHER INCOME For the Year ended March 31.05.424 2.826 83.63.29.485 91.63.60. 2011 ` Investment Management Fee Portfolio Management Fee Total 547.83.956 644.039 1.Thirteenth Annual Report 2011-12 Note 17 REVENUE FROM OPERATIONS For the Year ended March 31.220 82.66. 2011 ` Salaries.69.29.05.60.348 56.83.75. Allowances and Bonus Contribution to Provident and Other Funds Employee Stock Option Scheme Expenses Staff Welfare and Training Expenses Total 85.12. 2012 ` For the Year ended March 31.51.753 2.545 98.85.901 — 3.09.35.767 1.070 35. 2011 ` Dividend Income from Current Investments Interest Income: – – From Non-Current Investments From Others 28.119 18.79.86.729 32.55.22.25.61.073 85. 2012 ` For the Year ended March 31.46.088 Profit on Sale of Current Investments (net) Utilisation / Reversal of Provision for Contingencies Reversal of Diminution in the Value of Current Investments Profit on Foreign Exchange Translation Miscellaneous Income Total Note 19 EMPLOYEE BENEFITS EXPENSE For the Year ended March 31.54.77.43.95.

36.840 8.31.451 1.39.110 10.631 4.206 50.21.999 239 .299 1.43.000 3.76.513 221.000 5.000 5.46.26.32.74. 2011 ` Brokerage / Incentives / Fees Business Promotion Rent Printing and Courier Travel and Conveyance Communication Expenses Subscription and Membership Fees Professional and Legal Fees Repair and Maintenance Electricity Charges Outsourced Services Cost Insurance Expenses Rates and Taxes Auditors Remuneration: Audit Fee Audit Fee .93.03.584 30.245 2.000 — 2.29.606 50.00.845 114.699 1.000 23.24.04.83.00.421 8.303 4.65.74.884 199.46.47.000 45.000 30.539 2.18.59.01.99.09.58.279 25.00.HDFC Asset Management Company Limited Note 20 OTHER EXPENSES ` For the Year ended March 31.231 2.614 12.06.10.21.90.03.493 34.548 148.46.51.507 3.28.PMS Business Tax Audit Fee Taxation Matters Reimbursement of Expenses Other Services Directors Sitting Fee Donations Provision for Diminution in the Value of Current Investments Miscellaneous Expenses Total 10.52.518 40.325 2.08.00.304 3.769 1.74.82.10.000 36.02.000 12.889 4.00.533 3.37.54.32.23.60.000 4.793 10.88.96.90.70.36.13.00.34.465 3.00.03.102 13.44.32.294 21.97.18.02.956 22.43.84.86.357 2. 2012 ` For the Year ended March 31.376 31.887 8.58.722 12.766 2.74.84.96.88.71.

35.780 5.90.227 1.800) 28.227 Previous Year 27.13.07.83.39.90.64.490 (7.616 Current Year 3.570 6.48.48.616 99.23.83. the Company has classified the various benefits provided to the employees as under: A) Defined Contribution Plan Provident Fund The Company has recognized the following amounts in the Statement of Profit and Loss.738 28.245 4.23.98.227 27.771 23.88.32.35.59.053 (21.Thirteenth Annual Report 2011-12 Note 21 21.1 Employee Benefits In accordance with the Accounting Standard on “Employee Benefits” (AS–15) (Revised 2005) issued by the Institute of Chartered Accountants of India.981 37.02.280 62.10.39.25.56.053 38.13.518 Current Year 25.371 5.898 Previous Year 3.13.98.780 56.84.08.800) 37.74.738 1.84.39.12.83.23.15. (Amount in `) Current Year Previous Year Particulars Change in the Defined Benefit Obligations: Liability at the beginning of the Year Current Service Cost Interest Cost Benefits Paid Actuarial (Gain) / Loss Liability at the end of the Year Fair Value of Plan Assets: Fair Value of Plan Assets at the beginning of the Year Expected Return on Plan Assets Contributions Benefits Paid Actuarial Gain / (Loss) on Plan Assets Fair Value of Plan Assets at the end of the Year Actual Return on Plan Assets: Expected Return on Plan Assets Actuarial Gain / (Loss) on Plan Assets Actual Return on Plan Assets Amount Recognized in the Balance Sheet: Liability at the end of the Year Fair Value of Plan Assets at the end of the Year Amount recognized in the Balance Sheet as Liability 4.59.84.50.902 (7.61.300) 85.664 25.671 240 .03.671 (12.994 Defined Benefit Plan Contribution to Gratuity Fund (Funded Scheme) The details of the Company’s post-retirement benefit plan for its employees are given below and certified by an independent actuary.371 Current Year 2.75.48.93.32.373 Previous Year 6.13.722 (12.84.03.300) (21.49.02.898 3.10.84. which are included under Contributions to Provident Fund: (Amount in `) Particulars Current Year Previous Year Employer’s contribution to Provident Fund B) 2.898 80.680) 3.08.59.95.680) 3.247 2.755 4.

These are as set out in the note on Significant Accounting Policies.99. Accordingly.39.987 Experience adjustment details for financials years earlier than 2010-11 are not disclosed as it was not made available to the Company by the erstwhile insurance company. The accounting principles used in the preparation of the financial statements are also consistently applied to record income and expenditure of individual segments.85.13.170 70.13.790 Current Year 21. 5.a.780) 37.00 Years 8.738) 8. Secondary segment reporting does not require separate disclosure as most of the activities of the Company are within India. 8.10.HDFC Asset Management Company Limited Note 21 (Continued) Expense Recognized in the Statement of Profit and Loss: Current Service Cost Interest Cost Expected Return on Plan Assets Net Actuarial (Gain) / Loss to be Recognized Expense recognized in the Statement of Profit and Loss under ‘Employee Benefits Expenses’ Reconciliation of the Liability Recognized in the Balance Sheet: Opening Net Liability Expense recognized Contribution by the Company Amount recognized in the Balance Sheet as Liability Net Actuarial (Gain) / Loss Recognized Actuarial (Gain) / Loss on Plan Assets Actuarial (Gain) / Loss on Defined Benefit Obligation Net Actuarial (Gain) / Loss Recognized Experience Adjustment (Gains) / Losses on Plan Liabilities (Gains) / Losses on Plan Assets Estimated Contribution for next year Current Year (Amount in `) Previous Year 80. 33.15.07.90.67.22. As the gratuity fund is managed by a life insurance company.22.490) 1.a.755 Current Year 62. It also provides Portfolio Management Services (PMS) to Corporates and High Net Worth Individuals. details of investment are not available with the Company.32.25.780) 1.671 99.a.a.88.08.00 Years 21.32.981 37.00% p. the Company has recognized ‘Mutual Fund’ and ‘Portfolio Management’ as Primary business segments. It acts as an Investment Manager to schemes launched by HDFC Mutual Fund.925 Previous Year 56.10.722 (27. 8.902 (25.83.053) 1.384) 1.14.13. Actuarial Assumptions: Actuarial valuation was performed in respect of the aforesaid defined benefit plan based on the following assumptions: Particulars Current Year Previous Year Discount Rate Return on Plan Assets Compensation Escalation Rate Average Age 8.83.a.06.00% p.60% p.89.96.245 1.25% p. 32.464 (28.925 1. 5.a.755 (1.64.00% p.99.570 8.2 Segmental Reporting In accordance with the Accounting Standard on “Segment Reporting” (AS-17) issued by the Institute of Chartered Accountants of India.66.93.545 Previous Year 1.39.06.545 (38.39.755 21.67.790 99. the Company has determined business segments as under: The Company’s operations predominantly relate to providing Asset Management Services.755 Current Year (17.96.39.50% p.83.771 23.680 85.671 Previous Year (28.680 73.671) 99.39. 241 .10.

176 270.70.32.53.624 56.609 635.86.859 562.220 85.150 82.58.Thirteenth Annual Report 2011-12 Note 21 (Continued) The basis of reporting is as follows: 1.740 1060.41.331 85.51.81.93.95.57.43.33.79. 2.10.859 54.78.69.782 324.25.468 2.15. 5.073 200.32.570 29.030 Previous Year 644.788 1237.442 6.315 242 . 3.69.956 45.647 6.317 374.03.987 16.61.17.52.38.65.46.37.32.75.83.390 — — 562. Hence it is not practical to provide segment disclosures relating to such items and accordingly they are separately disclosed as “unallocable expenses”.487 39.42.072 Previous Year Portfolio Management Current Year Previous Year Total Current Year 633.176 — 644.43.851 35. others have been shown as “Unallocable assets/liabilities”.289 111.45.216 563.34.03.98.91.27.008 319.98.05.216 933.63.38. Assets and liabilities to the extent directly identifiable to a business segment have been categorized as “Allocable assets/liabilities”.001 347.66.384 5. Fixed assets used in the Company’s business have not been identified to any of the reportable segments.223 — 633.830 333.50.923 — — — — 4.13.87.625 43.11.15.012 546.50.816 41.23.19. Accordingly depreciation/amortization has been treated as an unallocable expense.77.98.406 62.747 1126.32.99.06.37.088 355.67.63.56. Other balance sheet items such as investments and deferred tax asset are similarly not allocated to business segments.19.51.40.70. Revenue and expenses distinctly identifiable to a segment are recognized in that segment.25.00.86.52.31.524 65.150 82.36.899 547.734 127.63.94.36.525 111.28.35.07.78.073 — 547.817 387.55.52.577 87.72.901 381.29.25.20.06. (Amount in `) Mutual Fund Current Year Segment Revenue Management Fees Inter Segment Revenue Total Segment Revenue Identifiable Operating Expenses Segmental Operating Income Unallocable Expenses Operating Income Other Income Net Profit Before Tax Provision for Income Tax Deferred Tax Expense Previous Year’s Tax Net Profit After Tax Segment Assets and Liabilities Segment Assets Unallocated Assets Total Assets Segment Liabilities Unallocated Liabilities Total Liabilities Capital Expenditure Depreciation — — — — 82.89.28.956 — 229.16.830 80.25.69.33.40.24.44.220 85.47.09.97.35.83.751 7.11.32.48.186 458.23.774 72.00.07.95.37.696 269.69. 4.11.13.469 84.75.939 108.02.334 41.17.223 246.34.87.49.84.57.674 17.79.48.070 242. Certain expenses are not specifically allocable to specific segments as the underlying services are used interchangeably. as the fixed assets and services are used interchangeably between the segments.19.48.03.71.228 12.

083 (12.101 (52. Milind Barve.90.75.00.05.86.44.293) — — — — 2.408 (11.3 Related Party Transactions As per the Accounting Standard on “Related Party Disclosures” (AS-18) issued by the Institute of Chartered Accountants of India.000) — — — — — — — — 62.93.93.09.500) — — — — — — — — 243 .60.96.393) — — — — — — — — — — 1.HDFC Asset Management Company Limited Note 21 (Continued) 21.47.249) 1.60.609 (35.28.82.323) — — — — — — — — — — — — — — 41.901) 52.540 (2.82.288 (55.018 (2.625 (68.99.60.60.59. Mr.72.000 (3. Managing Director (Amount in `) Particulars Holding Company Investing Party Fellow Subsidiaries* Subsidiary Company Fellow Subsidiaries where : Company has transactions : during the year : Subsidiary Company : Key Management Personnel : D) E) The nature and volume of transactions of the Company with the above related parties were as follows: INCOME Management Fees EXPENDITURE Rent Advisory Fee Technology Support Cost Administrative & Other Expenses Insurance Premium ASSETS Investment Deposit Account Receivable Prepaid Insurance Premium Administrative & Other Expenses — — 2.39.143) 53.16. Ltd.797) 15. the related parties of the Company are as follows: A) B) C) Holding Company Investing Party : : Housing Development Finance Corporation Limited Standard Life Investments Limited HDFC Trustee Company Limited HDFC Standard Life Insurance Company Limited HDFC ERGO General Insurance Company Limited HDFC Asset Management Company (Singapore) Pte.82.916 (46.500 (41.65.969) 5.495) — — 8.60.521 (1.43.60.484) 31.200 (7.413) — — — — — — — — — — — — — — 11.30.70.

Thirteenth Annual Report 2011-12 Note 21 (Continued) (Amount in `) Particulars Holding Company Investing Party Fellow Subsidiaries* Subsidiary Company LIABILITIES Account Payable OTHER TRANSACTIONS Purchase of Fixed Assets Interim Equity Dividend Paid — (37.200 (Previous Year ` 2. The total lease payments recognized in the Statement of Profit and Loss towards the said leases amounts to ` 1.01.969) — — 8.37.600) — — — — — — — — — — — — Remuneration to Key Management Personnel ` 5.00.200 (7.81.298 (7.48.000) 49.21.09.618 (39.38.200 (29.70. *Details of transactions with fellow subsidiaries are as follows: (Amount in `) Particulars HDFC Trustee Company Limited HDFC Standard Life Insurance Company Limited HDFC ERGO General Insurance Company Limited Management Fees Insurance Premium Deposit Account Receivable* Prepaid Insurance Premium — — — — — — 5.590) * Includes an amount of ` 2.60.08.25.160 1.400) — — — — 33.23.60.05.304) 8.85.87.24.00.973 (52.05.191) — — — — 52.00.70.13.74.48.13.000 (7.73. Figures in bracket pertain to the Previous Year.733) 2.11).893).031 (Previous Year ` 1.128 (7.96.18.01.528) to the Holding Company is not considered above.011 (Previous Year ` 1.164 (Previous Year ` 5.211) paid to HDFC Trustee Company Limited (see note 21.901) — — — — 7.81.827).67. 21. Reimbursement of Expenses amounting to ` 2.17.120 4.000) 55.800 (43. The future lease payments in respect of the above are as follows: (Amount in `) Particulars Current Year Previous Year Not later than one year Later than one year but not later than five years 2.78.562 244 .53.00.54.58.62.54.40.4 Operating Leases The company has entered into non-cancelable leasing arrangements for certain premises.000 (3.625 (68.43.99.488 1.988) 10.25.

6 Deferred Tax In compliance with the Accounting Standard on “Accounting for Taxes on Income” (AS-22) issued by the Institute of Chartered Accountants of India.05 (2.656 245 .94.073 2.661 21.92.63.33.89.770) — (74.396 4.983 5.264 2.5 Earnings Per Equity Share In accordance with the Accounting Standard on “Earnings Per Share” (AS-20) issued by the Institute of Chartered Accountants of India: (i) The basic earnings per equity share has been calculated based on the net profit after tax of ` 269.03.868 2.448 4.480 13.84) 104.571 5.734) and weighted average number of equity shares outstanding during the year amounting to 2.10.78.678 4.43.52.28.53.407 12. (Amount in `) Description As on March 31.193 (85.23.75.468 (Previous Year ` 5.52.56.42.673 12. the Company has made net deferred tax adjustment of ` 85.396 (Previous Year 2.06.HDFC Asset Management Company Limited Note 21 (Continued) 21.24.72.55.14 Basic earnings per equity share has been computed by dividing net profit after tax by the weighted average number of equity shares outstanding for the year.52.16.275) 6.18.08.451 10.72.73.91) 93. The amount has been debited to the Statement of Profit and Loss.02.48.09. 2012 Assets Depreciation Provision for Contingencies Others Total Liabilities Others Net Deferred Tax Asset 5. (ii) Following is the reconciliation between basic and diluted earnings per equity share: (Amount in `) Particulars Current Year Previous Year Nominal value per share Basic earnings per share Effect of potential equity shares for stock options (per share) Diluted earnings per share (iii) 10.52.88.03.94.751) as per details given below.588 7.00 106. 2011 For the Year As on March 31.36.59.09.407 13.92 10. The relevant details as described above are as follows: (Amount in `) Current Year Previous Year Particulars Weighted average number of equity shares used in computing basic earnings per equity share Effect of potential equity shares for stock options outstanding Weighted average number of equity shares used in computing diluted earnings per equity share 2.076 7.82. Diluted earnings per equity share has been computed by dividing net profit after tax by the weighted average number of equity shares and dilutive potential equity shares outstanding during the year.13.468) 16.030 (Previous Year ` 242.588).19.76 (1.28.59.23.09.15.931 1.52.06.00 96.495 (1.12.

2006.000 stock options at an exercise price of ` 527/.358 — 17. (Amount in `) Particulars Current Year Previous Year Principal amount remaining unpaid to any supplier as at the year end Interest due thereon Amount of interest paid by the company in terms of section 16 of the MSMEDA.097 represents provision against all contingencies in the business. Movement in Provision for Contingencies account during the year is as under: (Amount in `) Carrying Amount as at April 1.54.455 — 5. Small and Medium Enterprises.10 Accounting for Employee Share Based Payments Under Employees Stock Option Scheme 2009 – Series I (ESOS 2009 – Series I).per option.each to few employees and directors of the Company. 21.e. along with the amount of the payment made to the supplier beyond the appointed day during the accounting year Amount of interest due and payable for the year of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under the MSMEDA Amount of interest accrued and remaining unpaid at the end of the accounting year NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL 21. representing 1. the following disclosures are made for the amounts due to the Micro.52.43.53. Small and Medium enterprises.95. balance under Provision for Contingencies amounting to ` 17. Small and Medium enterprises.42. 246 . Under the Micro. 2006 (MSMEDA).097 21.41. On the basis of the information and records available with the management. Contingent Liabilities and Contingent Assets” (AS-29) issued by the Institute of Chartered Accountants of India. based on the Profit Earning Capacity Valuation (PECV) method and the Assets Under Management (AUM) method. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) is ` 16.94.52.980).01.343 (Previous Year ` 17.9 Sundry Creditors Sundry Creditors do not include any amount payable to Small Scale Industrial Undertakings and Micro. 2012 23. certain disclosures are required to be made relating to Micro. the Company had on August 25.54.025).89.95. which have registered with the competent authorities.7 Provisions In compliance with the Accounting Standard on “Provisions.8 Contingent Liabilities and Commitments Disputed Income Tax demand ` 1. 2009 granted 1.Thirteenth Annual Report 2011-12 Note 21 (Continued) 21.07. The fair value of the Company’s underlying equity shares was determined in accordance with the pricing formula approved by the Remuneration Committee of the Board of Directors of the Company (‘Remuneration Committee’) i.15.599 (Previous Year ` 50. which came into force from October 02. Small and Medium Enterprises Development Act.73.000 equity shares of ` 10/.91. 2011 Additions during the year Amounts used during the year Amounts reversed during the year Carrying Amount as at March 31.

76.000 equity shares of ` 10/. Accordingly.24. as approved by the Remuneration Committee are disclosed separately.04.08. representing 5.HDFC Asset Management Company Limited Note 21 (Continued) In terms of ESOS 2009 – Series I.000 Nil 50. the options vest over a period of 1-2 years from the date of grant.each and 10.300 3.46.150 Nil 3. the options vest over a period of 3-4 years from the date of grant.000 Since all the options were granted at the same exercise price per option under the respective Series.76.83.000 2.93. Method used for accounting for share based payment plan: The Company has used intrinsic value method to account for the compensation cost of stock options granted to the employees and directors of the Company. representing 10.500 4.150 2.000 10.500 96. Accordingly. based on the Profit Earning Capacity Valuation (PECV) method and the Assets Under Management (AUM) method.000) vested.83.000 Nil 7. if any made to the terms and conditions of Employees Stock Option Schemes (ESOSs). Since options under ESOS 2008 – Series I were granted at an exercise price less than the fair value of the underlying equity shares of the Company.500 Nil 2. The options can be exercised over a period of five years from the date of respective vesting.e.93.000 Nil 1. The fair value of the Company’s underlying equity shares was determined in accordance with the pricing formula approved by the Remuneration Committee i.per option under ESOS 2008 – Series I.each to few employees and directors of the Company.84.67.500 Nil 1. of Options Current Year ESOS 2008 Series I Series II ESOS 2009 Series I Previous Year ESOS 2008 Series I Series II ESOS 2009 Series I Outstanding at the beginning of the year Granted during the year Exercised during the year Lapsed during the year Outstanding at the end of the year Exercisable at the end of the year 3.500 3.000 6.000 stock options at an exercise price of ` 390/.750 options under ESOS 2008 – Series II (Previous Year 4.350 35. during the year 77.000 6.10. the Company had on 10th March 2008 granted 5.04.08. Options under ESOS 2008 – Series II and ESOS 2009 – Series I were granted at the fair value of the underlying equity shares of the Company.10. 247 .08.per option under ESOS 2008 – Series II.000 stock options at an exercise price of ` 750/.500 Nil 3. In terms of ESOS 2008 – Series I and ESOS 2008 – Series II. Modifications. The options can be exercised over a period of five years from the date of respective vesting.000 27.500) vested and lapsed].24. Movement in the options under ESOS 2008 & ESOS 2009: No.500 Nil 2.500 Nil 1.46. 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.300 1.54.92.24.000 options (Previous Year 77.250) vested [including 1.500 options under ESOS 2008 – Series II (Previous Year 1.93. during the year 2.000) vested and 4. the intrinsic value of each option under ESOS 2008 – Series I is ` 360/-.000 options under ESOS 2008 – Series I (Previous Year 2. the weighted average exercise price per option under the respective Series is the same.14.24.500 Nil 96.400 1.500 78.350 1. Under Employees Stock Option Scheme 2008 – Series I (ESOS 2008 – Series I) and Employees Stock Option Scheme 2008 – Series II (ESOS 2008 – Series II).11.000 equity shares of ` 10/.

56% p.a.a.e. The key assumptions used in Black-Scholes model for calculating fair value under ESOS 2008 – Series I.6. ` 261/- 5.73% p. ` 407/- 10th March 2008 7.73% p.73% p.22% p. 3 .a. based on the Profit Earning Capacity Valuation (PECV) method and the Assets Under Management (AUM) method.per option under ESOS 2008 – Series II.73% p. ` 166/3 – 5 years 0% 2. ` 66/- 248 .a.03% .97% p. Options under ESOS 2008 – Series II were granted at the fair value of the underlying equity shares of the Company.per option under ESOS 2008 – Series I and to ` 527/.22% p.24% .per option under ESOS 2008 – Series I and exercise price of ` 750/. 6.6 years 0% 1.85%-6. 2 – 5 years 0% 2. 2 – 5 years 0% 2.a.a.5 years 0% 2.a.56% p. Based on an independent valuation of the fair value of the underlying equity shares of the Company.a.56% p.7.a.a.5 years 0% 2.7. The key assumptions considered in the pricing model for calculating fair value under ESOS 2008 – Series I and ESOS 2008 – Series II as on the date of modification were: Particulars ESOS 2008 – Series I Original Terms Modified Terms ESOS 2008 – Series II Original Terms Modified Terms Risk-free interest rate Expected life Expected volatility Dividend yield Fair value of the option 5. The options granted under ESOS 2008 – Series I and ESOS 2008 – Series II vest over a period of 3-4 years from the date of grant and can be exercised over a period of five years from the date of respective vesting.Thirteenth Annual Report 2011-12 Note 21 (Continued) Fair value methodology: The fair value of options used to compute pro forma net income and earnings per equity share has been estimated on the date of grant using Black-Scholes model. the intrinsic value of each option under ESOS 2008 – Series I stands revised to ` 253/-.97% p. 4 . the exercise price of ` 390/.per option under ESOS 2008 – Series II was revised to ` 274/. ` 155/- 25th August 2009 6. Since options under ESOS 2008 – Series I were granted at an exercise price less than the fair value of the underlying equity shares of the Company. The options thus modified have been fair valued as at 25th August 2009.56% p.a. ` Nil 6. ESOS 2008 – Series II and ESOS 2009 – Series I as on the date of grant were: Particulars ESOS 2008–Series I ESOS 2008–Series II ESOS 2009–Series I Date of grant Risk-free interest rate Expected life Expected volatility Dividend yield Fair value of the option 10th March 2008 7.a.56% p.6 years 0% 1.24%-6.24%-6.85%-6. 2009 had approved few modifications in exercise price and vesting schedule of the options granted under ESOS 2008 – Series I and ESOS 2008 – Series II. The Remuneration Committee at its meeting held on August 25. 4 .a.03% .a. The fair value of the Company’s underlying equity shares was determined in accordance with the pricing formula approved by the Remuneration Committee i.73% p. ` 66/- Details of modifications in terms and conditions of ESOSs: No modifications were made in the terms and conditions of ESOSs during the current year. being the modification date. 3 .

This amount is held by HDFC Trustee Company Limited in an account segregated for this purpose. Previous Year ` 10.17. Previous Year ` 2.32.03.030 56.200 with HDFC Trustee Company Limited representing estimated losses incurred by the schemes of HDFC Mutual Fund/clients of the Company on suspected “front running” of the orders of HDFC Mutual Fund by a dealer of the Company.283 1.506 242.07.06.278 2.224 19.206 7. the Company’s net profit and earning per share would have been as per the pro forma amounts indicated below: (Amount in `) Particulars Current Year Previous Year Net Profit (as reported) Add: Stock-based employee compensation expense included in the net income (Gross ` 83.58.31.10.92 104. Impact of fair value method on net profit and earning per share: Had compensation cost for the Company’s stock options outstanding been determined based on the fair value approach.92 93.HDFC Asset Management Company Limited Note 21 (Continued) The incremental share based compensation determined under fair value method amounts to ` 95/. The said amount has been included under Short-Term Loans and Advances (note 15).46.25.14 91.76 106.81.62.628.23.87.015.734 1.59. if any on the Company in connection with the aforesaid matter cannot be determined at this stage. The incremental fair value granted is taken into consideration for the purpose of computing the pro forma net income and earnings per equity share.13.per option under ESOS 2008 – Series II.46.78.33 96.475 18.87.318 (Amount in `) Particulars Current Year Previous Year Basic earning per share (as reported) Basic earning per share (pro forma) Diluted earning per share (as reported) Diluted earning per share (pro forma) 21. (Amount in `) Current Year Previous Year (b) 21.62.708 249 .12 Income in Foreign Currency Investment Advisory Fee Interest Income 1.330 267.05 93. till further orders by SEBI are received in this matter.07 In terms of interim order dated 17 June 2010 and letter dated July 5.35.11.694 236.16 104.11 (a) 106.73.039) Less: Stock-based employee compensation expense determined under fair value based method (Gross ` 3.19.per option under ESOS 2008 – Series I and ` 66/. the Company has deposited ` 2.86.14.11.294) (pro forma) Net Profit (pro forma) 269.48. 2011 received from Securities and Exchange Board of India (SEBI). The exact liability.

483 15.37. For and on behalf of the Board Deepak S.617 25.08.14 Comparatives Figures The Revised Schedule VI has become effective from 1 April 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements.21. Parekh Chairman Directors Keki M.13 Payments in Foreign Currency A) Expenditure (Amount in `) Current Year Previous Year i) ii) iii) iv) B) Staff Training Expenses Travelling Expenses Overseas Representative Office Expenses Professional Fees Dividend 29.Thirteenth Annual Report 2011-12 Note 21 (Continued) 21.772 3. Thampi Rajeshwar Raj Bajaaj Humayun Dhanrajgir Rahul Bhandari Chief Financial Officer Sylvia Furtado Company Secretary Mumbai. Phatak Vijay Merchant Renu Sud Karnad P.156 5.400 33.25.600 21. Billimoria Deepak B.190 1.11. April 25.64.18. 2012 Milind Barve Managing Director 250 .00.67.183 1. Previous year’s figures have been regrouped / reclassified wherever necessary to correspond with the current year’s classification / disclosure.398 (Amount in `) Current Year Previous Year Interim Dividend on Equity Shares (a) Year to which the dividend relates (b) Number of non-resident shareholders (c) Number of Shares held (d) Amount Remitted (Gross) 2011-12 1 1.69. Mistry Hoshang S. M.14.64.400 29.192 49.54.61.00.25.46.200 2010-11 1 1.

285 ` 31. The financial year of the subsidiary company ended on Number of shares of the subsidiary company held by HDFC Asset Management Company Limited The net aggregate of profits of the subsidiary company so far as these concern the members of HDFC Asset Management Company Limited (I) Dealt with in the accounts of HDFC Asset Management Company Limited amounted to: (a) (b) (II) For subsidiary’s financial year ended on March 31. 1956 RELATING TO SUBSIDIARY COMPANIES Name of the Subsidiary HDFC Asset Management Company (Singapore) Pte. Billimoria Deepak B.54. Mistry Hoshang S. 2012 — Loss (b) For previous financial years of the subsidiary since it became subsidiary of HDFC Asset Management Company Limited .HDFC Asset Management Company Limited STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT.645 For and on behalf of the Board Deepak S.000 ` Nil ` Nil Not dealt with in the accounts of HDFC Asset Management Company Limited amounted to: (a) For subsidiary’s financial year ended on March 31.Loss ` 6.25.39. Phatak Vijay Merchant Renu Sud Karnad P. Thampi Rajeshwar Raj Bajaaj Humayun Dhanrajgir Rahul Bhandari Chief Financial Officer Sylvia Furtado Company Secretary Mumbai. M. April 25. Ltd. 2012 1. Parekh Chairman Directors Keki M. 2012 Milind Barve Managing Director 251 . 2012 For previous financial years of the subsidiary since it became subsidiary of HDFC Asset Management Company Limited March 31.