Franklin Templeton MONTHLY FACT SHEET : March 2004

4 Contents

Market Update 4 Templeton India Income Builder Account (TIIBA) 23

Franklin India Bluechip Fund (FIBCF) 6 Templeton India Income Builder Account (TIIBA) -

Institutional Plan 24 Templeton India Growth Fund (TIGF) 7

Templeton Monthly Income Plan (TMIP) - Franklin India Prima Plus (FIPP) 8 Monthly & Quarterly Dividend Plan 25

Franklin India Prima Fund (FIPF) 9 Templeton Monthly Income Plan (TMIP) -

Franklin India Opportunities Fund (FIOF) 10 Half-Yearly Dividend & Growth Plan 26

Franklin India Taxshield (FIT) 11 FT India Monthly Income Plan (FTIMIP) 27

Franklin India Index Fund (FIIF) 12 Templeton India

Government Securities Fund (TGSF) 28 Franklin Infotech Fund (FIF) 13

FT India Gilt Fund (FTIGF) 29 Franklin FMCG Fund (FFF) 14

Franklin Pharma Fund (FPF) 15 Templeton Floating Rate Income Fund (TFIF) 30

FT India PE Ratio Fund (FTIPERF) 16 Templeton India Short-Term Income Plan (TISTIP) 31

FT India Asset Allocation Fund (FTIAAF) 17 Templeton India Treasury

Management Account (TITMA) 32 FT India Life Stage Fund of Funds (FTLF) 18

Templeton India Liquid Fund (TILF) 33 FT India Balanced Fund (FTIBF) 19

Templeton India Money Market Account (TIMMA) 34 Templeton India Pension Plan (TIPP) 20

Franklin India Balanced Fund (FIBF) 21 Franklin India International Fund (FINTF) 34

Templeton India Income Fund (TIIF) 22 Dividend/Bonus History 35 Market Update

Equity Market Snap Shot numbers, farm output grew by 16.9%. The other constituents of the economy viz. industry grew by 6.7% and services The first quarter of the New Year grew by 9%. However, one needs to keep in mind that these saw most markets across the globe numbers are off a weak base and we have to wait and see if close in positive territory despite the this double-digit growth is sustainable. weakness in Europe and US. For the quarter, the MSCI World Index We believe that the data is in line with our view that gained 2.20%, largely due to gains in capital formation is on the rise and the manufacturing sector Asian markets and select European could start witnessing capacity additions in the future as bourses. In Asia, Japanese markets in demand picks up. Overall, economic fundamentals are strong particular rose on expectations of last year’s export-led with various drivers such as infrastructure spending, retail recovery boosting employment and feeding an expansion in lending, positive demographics, outsourcing opportunities consumer spending, retailing and bank lending. The broad and a potential capex recovery, in place. The fly-in-the- MSCI Asia Pacific Index rose 6.38%. In Europe, latest data ointment has been the sharp rise in global crude oil prices. has raised concerns about the direction of the region’s largest Going ahead, the earnings season is likely to have an impact economies. Despite a fall in major indices in UK and on the markets. The recent issuances are likely to result in an Germany, the pan-European FTSE Eurotop 100 gained increase in India’s weigthage in the MSCI indices which 1.12%, boosted by a sharp fall in the Euro. After touching could lead to additional flows from global fund managers. new highs, major US markets fell in the month of March on Overall, the long term story remains strong with the the back of mixed economic data and profit booking at confluence of structural and cyclical factors making India an higher levels. This led to the Dow Jones and Nasdaq posting attractive investment destination. quarterly losses of 0.92% and 0.46% respectively, while the S&P managed a 1.3% gain. Investors will be closely Chetan Sehgal, Director - Research watching the high global crude oil prices and sifting through Templeton Equity View: economic data for pointers to the sustainability of the global April heralds a new year. economic recovery. As we enter the summer months, things have gotten a bit The quarter saw the domestic markets consolidate as warmer.... investors locked gains before the end of the fiscal year end. The INR rose very firmly to end the After touching historic highs at the start of the quarter, markets month with one of the sharpest seesawed before ending the period with losses. The period appreciations which we have seen for was marked with high volatility as heightened speculative a long time. Though there could be activity combined with concerns about the impact of the slew concern on some loss of of equity issuances on liquidity dampened sentiment. The competitiveness in many sectors technology sector in particular witnessed selling pressure on including the most written about IT account of the political backlash witnessed against sector, the value of a strong INR in outsourcing in countries like US. The FMCG and pharma benefiting large parts of the economy should not be sectors also came under pressure on account of the ongoing undermined. It is interesting to note that the ruling coalition is price war and legal setbacks in the US respectively. Stocks in also of the opinion that the INR should be stronger and we the Mid cap segment bore the brunt of selling as investors continue to estimate that the INR is undervalued on a booked profits, which was reflected in the 10.67% fall in the purchasing power basis. CNX Midcap 200. On the other hand, the BSE Sensex lost 4.25% India finally broke through the 10% growth rate market during the quarter. Amidst all the albeit for a quarter on the back of poor base comparisons. volatility, FII flows remained strong However, the headline was strong enough to make waves and were to the tune of $3.18 billion across international media. Finally, the attention and focus on during the quarter, with around $1.95 China and India rather than China Vs. India. billion coming in March largely due to Politically, we have seen dramatic developments in Korea, inflows for the IPO subscriptions. Taiwan and closer home in Sri Lanka which have had effects The positive news flow on the economic front continued in on market volatility. With Indian elections approaching earnest as the industrial production and infrastructure shortly, it is interesting to see debate being centered around numbers reflected robust activity. The icing on the cake was issues of economic importance. “Roads, electricity and the GDP numbers as the latest data showed that the GDP water” are now central pieces of both economics and politics. grew by 10.4% during the quarter ending December 03, well Employment generation is key. ahead of market estimates, reconfirming India’s place in the With most of the large IPOs behind us there was in large league of the fastest growing economies in the world. Aided part a relief in the markets. There is generally positive by a strong monsoon and a downward revision of last year’s sentiment going into the result reason. Some of this is already

4 in the prices of stocks, and therefore there is a chance that GOVERNMENT BORROWING á á disappointments could result in higher volatility. However, During the quarter, RBI lowered its projection for fiscal with increased data flow on a monthly basis on a large deficit and announced that the borrowings for the first half of section of the economy, chances are that the surprises could the next fiscal year would be Rs.59,000 crores which was be fewer. lower than expectations. The fiscal deficit at the end of February was Rs 110,470 crores, representing 83.6% of the Fixed Income Market Snap Shot revised budgeted estimate for FY 2003-04. The deficit till February works out to 4.0% of GDP and the government FACTORS Short Term Medium Term targets to rein in deficit to 4.8% of the GDP during the period. (1-3 months) (3-6 months) FOREIGN EXCHANGE MARKET â á INFLATION â á The rupee rose strongly towards the end of the quarter as Wholesale Inflation numbers exhibited a firm trend for a combination of continued foreign inflows and lack of RBI most of the quarter before easing in March to below 4.5% intervention aided its rise. The rupee closed the quarter at a due to a fall in food and edible oil prices and the higher base effect. Annual wholesale inflation (WPI) fall to 4.3% for the 47-month high of 43.65/70 per dollar with most of the gains week ended March 20. However the numbers of earlier coming in the last 9 trading sessions. It ended the fiscal year weeks were constantly revised upwards. We expect the 2003-04 with an 8.7% gain against the US dollar, and the inflation to inch up in the coming months due to the higher quarter with around 4.8% gain. Forex reserves continued base effect and oil price hike which is overdue. The less their upward movement and were at $ 110.317 billion on widely tracked consumer price index (CPI) fell to 4.13% in March 26th. The appreciating rupee will have a smoothing February from 4.35% in January. effect on the inflation.

MONEY SUPPLY â á RBI POLICY = = Robust forex inflows and increased government spending RBI has announced the issue of market stabilisation bonds resulted in excessively easy liquidity throughout the quarter. (MSB) to the tune of Rs.35,500 crores during the first quarter Excess liquidity was reflected in significant amounts received of next fiscal. It has also announced various measures at by the RBI in daily LAF repo auctions, which averaged streamlining the money markets including a cut in reverse around Rs.36,000 crores for the first two months of the repo rate and merging of the normal and back-stop facilities. quarter and increased to more than Rs.45,000 crores in It has also introduced a 7-day repo as part of the LAF. The March. Bids for the daily repos touched a new record high of government has issued new guidelines capping FII investment Rs.51,925 crores in the last fortnight of March. The at $1 billion in the debt markets. We believe this is unlikely government ran a surplus in the WMA account for most of the to have any major impact given that most of these investments quarter. The persistent intervention in the forex markets has are in treasury bills. RBI has postponed its annual credit resulted in money supply (M3) growth rising to 15.8% as on policy announcement (to be renamed as RBI’s Annual Policy March 19, well above RBI’s target of 14-14.50 % for the statement) to May keeping in mind the national elections. fiscal year. RBI will be in a better position to control the money supply growth with the market stabilization bonds MARKET SENTIMENT issuance. Liquidity in the system continues to remain easy and inflation is expected to move up in the coming months. The CREDIT DEMAND â á better-than-expected jobs data has pushed US yields higher The quarter witnessed a rise in non-food credit, which that could have an implication for global interest rates. The could be largely attributed to borrowings by investors to market sentiment will vary with the liquidity and the inflation subscribe to the spate of equity issuances. The credit deposit data. ratio continues to remain comfortable. While credit is expected to pick up further in the coming quarters on the We expect the interest rates to remain in a range bound back of economic growth, at present, the demand is not fashion oscillating in line with the inflationary and liquidity significant enough to impact the liquidity in system and the pressures. We recommend investors to be overweight in recent relaxation of ECB norms and ratings upgrades will hybrid funds like Monthly Income Funds and Balanced Funds result in companies raising funds through offshore to generate stable returns albeit at a higher volatility or borrowings to cash in on the lower global interest rates. Floating Rate Funds with lower volatility. Franklin India Bluechip Fund FIBCF

Portfolio As of March 31, 2004 Company Name No. of Market Value % of Company Name No. of Market Value % of shares Rs. Lakhs Assets shares Rs. Lakhs Assets Fund Category Aluminium Integrated Hindalco * 899633 10949.88 6.21 Telecommunication Automobile Services Manufacturers MTNL 2421112 3103.87 1.76 Maruti Udyog 867205 4309.58 2.44 IT Consulting 1465559 3716.66 2.11 Banks & Services SBI * 2381020 14421.84 8.17 * 250300 12360.19 7.00 HDFC Bank 1297733 4909.97 2.78 HCL Tech. 2735115 6778.98 3.84 Investment Style ICICI Bank 9328 27.60 0.02 Satyam Computer 1138538 3341.61 1.89 The fund manager seeks steady and Broadcasting consistent growth by focusing on well- & Cable TV Motorcycle established, large size companies TV Today Network 277000 369.80 0.21 Manufacturers Commodity Chemicals Hero Honda * 1683766 8258.03 4.68 Investment Objective 1168939 6289.48 3.56 Oil & Gas Exploration Aims to provide medium to long term 287676 873.96 0.50 & Production capital appreciation Computer Hardware ONGC 144620 1215.46 0.69 CMC 51982 256.38 0.15 Date of Allotment Oil & Gas Refining Construction & December 1, 1993 Engineering & Marketing L&T * 1400000 8040.90 4.56 BPCL * 3014020 14431.13 8.18 Fund Manager Construction Materials HPCL * 2300105 11675.33 6.62 K.N. Siva Subramanian ACC 1658804 4222.49 2.39 Pharmaceuticals Consumer Finance Latest NAV 102750 323.66 0.18 LIC Housing Finance 3122343 5701.40 3.23 Growth Plan Rs. 52.52 Electric Utilities 4003 26.02 0.01 Dividend Plan Rs. 21.26 * 1810500 6824.68 3.87 Tobacco Gas Utilities Fund Size ITC * 1177037 12257.66 6.95 GAIL 1054526 2247.19 1.27 Total equity holdings 159246.29 90.24 Rs. 1764.67 crores Industrial Conglomerates Other current assets 17220.64 9.76 Turnover Grasim * 1151296 12312.54 6.98 Total assets 176466.93 100.00 Portfolio Turnover 83.48% * Top 10 holdings

Volatility Measures (3 years)

Standard Deviation 7.30 Portfolio Composition and Performance R-squared 0.94 Beta 1.04 Fund Manager’s Commentary Sector Allocation - Total Assets Sharpe Ratio* 0.30 The equity exposure of the fund has come down on account of fresh inflows. The main additions to the portfolio * Risk-free rate assumed to be 6.25% (based on NAV Performance JP Morgan 3 month T-Bill Index) have been ACC, MTNL and Satyam Computers. We pared Expense Ratio exposure to stocks in the banking sector where our target prices were met. 2.00%

Minimum Investment/ Multiples for New Investors NAV Performance

Rs.5000/1000 Last Last Last Last Since 3 months 1 year 3 years* 5 years* inception* Additional Investment/ FIBCF (G) 2.14% 134.26% 37.31% 30.59% 27.78% Multiples for Existing Investors FIBCF (D) 2.15% 134.19% 37.31% 30.60% 27.78% Rs.1000/1000 BSE Sensex -4.25% 83.38% 15.72% 8.36% 5.26% Rs. 10000 invested at inception in FIBCF & BSE Sensex Load Structure Past performance may or may not be sustained in future. *Compounded and annualised Dividends/Bonus declared assumed to be reinvested Entry Load 2% Rs. 126,007 Exit Load NIL SIP in an equity fund can provide healthy returns over time If you had invested in FIBCF……. Monthly investment Rs.1,000 Number of investment periods (since Jan 1997)* 87 months Total investment Rs. 87,000 NAV Performance Rs. 16,982 Value of investment (As of March 31, 2004) Rs.338,055 Return on investment 36.86%

* The scheme became open end in January 1997. Load is not taken into consideration. In the same period, a SIP in BSE Sensex would have given ____ FIBCF ____ BSE Sensex a return of 11.16%. NAV is adjusted for dividend/bonus

6 Templeton India Growth Fund TIGF

Portfolio As of March 31, 2004 Company Name No. of Market Value % of Company Name No. of Market Value % of shares Rs. Lakhs Assets shares Rs. Lakhs Assets Fund Category Aluminium IT Consulting & Hindalco 110000 1338.87 3.20 Services Auto Parts & Equipment HCL Tech. 600000 1487.10 3.55 Satyam Computer 350000 1027.25 2.45 MICO * 27592 3714.35 8.87 NIIT 400000 719.60 1.72 Automobile Patni Computer 44250 95.12 0.23 Manufacturers Marine Ashok Leyland * 850000 2155.60 5.15 Shipping Corporation Maruti Udyog 78850 391.85 0.94 of India 1200000 1525.80 3.64 Motorcycle Banks Investment Style Manufacturers SBI * 700000 4239.90 10.13 Templeton Equity Portfolio Managers Hero Honda 230000 1128.04 2.69 adopt a long term disciplined approach ING Vysya Bank * 322966 1534.09 3.66 80000 729.64 1.74 to investing and use the widely known Commodity Chemicals Oil & Gas Exploration philosophy of ‘value investing’ Reliance Industries 160000 860.88 2.06 & Production ICI India 318154 582.06 1.39 ONGC 31810 267.35 0.64 Oil & Gas Refining Investment Objective IPCL 84000 152.88 0.37 & Marketing Seeks to provide long term capital growth Gas Utilities HPCL * 600000 3045.60 7.27 GAIL * 1052830 2243.58 5.36 BPCL * 350000 1675.80 4.00 Date of Allotment Heavy Electrical 45361 225.10 0.54 Packaged Foods September 10, 1996 Equipment Tata Tea * 600000 1986.00 4.74 BHEL 150000 906.75 2.17 GSK Consumer Healthcare 100000 247.55 0.59 Fund Manager Highways & Railtracks Pharmaceuticals Concor 136482 976.67 2.33 Dr. J. Mark Mobius Dr. Reddy’s * 175000 1704.41 4.07 Industrial Ranbaxy 50000 470.85 1.12 Latest NAV Conglomerates Biocon 25500 80.33 0.19 Tobacco Grasim * 207500 2219.11 5.30 Growth Plan Rs. 29.20 ITC 140000 1457.96 3.48 Industrial Machinery Dividend Plan Rs. 23.33 Trading Companies Cummins 580294 570.72 1.36 & Distributors Fund Size Integrated Power Trading Corporation 221006 35.36 0.08 Telecommunication Rs. 418.68 crores Total equity holdings 39853.84 95.19 Services Other current assets 2014.07 4.81 Turnover MTNL 45000 57.69 0.14 Total assets 41867.91 100.00

Portfolio Turnover 56.12% * Top 10 holdings

Volatility Measures (3 years)

Standard Deviation 6.93 Portfolio Composition and Performance Sharpe Ratio* 0.31 R-squared 0.94** 0.95# Fund Manager’s Commentary Sector Allocation - Total Assets Beta 0.99** 0.96# ** BSE Sensex # MSCI India Value The equity exposure of the scheme has decreased to * Risk-free rate assumed to be 6.25% (based on 95.19% from 97.62% during the quarter on account of fresh JP Morgan 3 month T-Bill Index) inflows. We have deployed the inflows into strong Expense Ratio companies across sectors such as Ashok Leyland and Tata 2.25% Tea. We also subscribed to equity issuances of ONGC, Power Trading Corporation, Patni Computers and Biocon. Minimum Investment/ Multiples for New Investors NAV Performance Rs.5000/1000 Last Last Last Last Since Additional Investment/ 3 months 1 year 3 years* 5 years* inception* Multiples for Existing Investors TIGF -5.78% 136.66% 36.95% 31.85% 16.80% Rs.1000/1000 BSE Sensex -4.25% 83.38% 15.72% 8.36% 6.62% Rs. 10000 invested at inception in TIGF & BSE Sensex MSCI India Value -2.45% 99.32% 21.34% 14.18% N.A Load Structure Rs. 32,560 Past performance may or may not be sustained in future. Entry Load 2% *Compounded and annualised Dividends declared assumed to be reinvested Exit Load NIL SIP in an equity fund can provide healthy returns over time *If you had invested in TIGF……. Monthly investment Rs.1,000 Number of investment periods (since inception) 90 months Rs. 16,276 TNAotal Vinvestment Performance Rs.90,000 Value of investment (As of March 31, 2004) Rs. 245,441 Return on investment 26.13% *Load is not taken into consideration. In the same period, a SIP in BSE ____ TIGF ____ BSE Sensex Sensex would have given a return of 10.96%. NAV is adjusted for dividend

7 Franklin India Prima Plus FIPP

Portfolio As of March 31, 2004 Company Name No. of Market Value % of Company Name No. of Market Value % of shares Rs. Lakhs Assets shares Rs. Lakhs Assets Fund Category Aluminium Industrial Conglomerates Hindalco * 145362 1769.27 5.35 Grasim * 147203 1574.26 4.76 Auto Parts & Equipment Indian Rayon 406500 768.08 2.32 MICO 7677 1033.45 3.12 IT Consulting & Services Automobile Manufacturers Infosys * 41093 2029.23 6.13 Satyam Computer * 472270 1386.11 4.19 Maruti Udyog * 285000 1416.31 4.28 EServe 125596 760.55 2.30 Banks BFL 80462 437.15 1.32 SBI * 404815 2451.96 7.41 Movies & Entertainment HDFC Bank 324282 1226.92 3.71 Mukta Arts 6932 3.20 0.01 Oil & Gas Exploration Investment Style 201166 812.91 2.46 Centurion Bank 4803983 468.39 1.42 & Production The fund manager seeks capital Broadcasting & Cable TV ONGC 57290 481.49 1.45 Oil & Gas Refining appreciation over the long-term by Television Eighteen 353462 796.88 2.41 focusing on wealth creating & Marketing TV Today Network 567039 757.00 2.29 companies across all sectors and HPCL * 529466 2687.57 8.12 Commodity Chemicals market cap ranges. Packaged Foods Asian Paints 246951 750.24 2.27 Nestle * 345382 2184.54 6.60 Investment objective Reliance Industries 35000 188.32 0.57 Pharmaceuticals Goodlass Nerolac 9054 40.14 0.12 Sun Pharma 175545 1140.87 3.45 Aims to provide growth of capital Computer Hardware Wockhardt 46846 373.43 1.13 plus regular dividend CMC 10516 51.86 0.16 Dr Reddy’s 20000 194.79 0.59 Biocon 19800 62.37 0.19 Construction & Engineering Date of Allotment Sun Pharma (RPS) 257940 2.73 0.01 L&T * 382000 2194.02 6.63 Tobacco September 29, 1994 Construction Materials ITC * 126350 1315.81 3.98 ACC 150847 383.98 1.16 Trading Companies & Fund Manager Madras Cements 35434 274.42 0.83 Distributors Diversified Chemicals Power Trading Corporation 176729 28.28 0.09 R. Sukumar Pidilite 7544 22.39 0.07 Unlisted equity holdings Quantum Info. 0.39 0.00 Latest NAV Diversified Financial Services Debt holdings Rating Market Value % of Growth Plan Rs. 49.83 CRISIL 91663 458.32 1.38 Rs. Lakhs Assets Dividend Plan Rs. 21.75 Electrical Components Television Eighteen ZCB’s BBB- 9.53 0.03 & Equipments Total equity holdings 31355.26 94.75 Fund Size 75000 373.31 1.13 Debt holdings 9.53 0.03 Rs. 330.94 crores Gas Utilities Other current assets 1729.55 5.22 GAIL 213197 454.32 1.37 Total assets 33094.34 100.00

Turnover * Top 10 holdings Portfolio Turnover 179.40% Portfolio Composition and Performance Volatility Measures (3 years)

Standard Deviation 6.42 Fund Manager’s Commentary Sector Allocation - Total Assets R-squared 0.95 Beta 0.83 The equity exposure of the fund has decreased to 94.75% from 97.08% during the quarter as we reshuffled our portfolio Sharpe Ratio* 0.34 based on relative valuations. The main additions to the portfolio * Risk-free rate assumed to be 6.25% (based on have been Maruti Udyog, TV Today Network and Satyam JP Morgan 3 month T-Bill Index) Computers. We pared exposure to stocks in the banking and technology sectors where our target prices were met and Expense Ratio increased exposure to the FMCG and auto sectors. 2.31% NAV Performance Minimum Investment/ Multiples for New Investors Last Last Last Last Since 3 months 1 year 3 years* 5 years* inception* Rs.5000/1000 FIPP (G) 1.57% 121.47% 37.73% 27.95% 18.40% Additional Investment/ FIPP (D) 1.57% 121.60% 37.72% 27.96% 18.40% Multiples for Existing Investors S&P CNX 500 -4.82% 107.81% 24.51% 13.95% 3.12%

Rs.1000/1000 Past performance may or may not be sustained in future. Movement of Rs. 10000 invested in FIPP & S&P CNX 500 *Compounded and annualised Dividends declared assumed to be reinvested Load Structure Rs. 49,830 Entry Load 2% SIP in an equity fund can provide healthy returns over time Exit Load NIL *If you had invested in FIPP……. Monthly investment Rs.1,000 Number of investment periods (since inception) 113 months Total investment Rs. 113,000 Rs. 13,394 Value of investment (As of March 31, 2004) Rs. 461,101 Return on investment 28.34% * Load is not taken into consideration. In the same period, a SIP in S&P CNX 500 would have given a return of 12.89%. ____ FIPP ____ S&P CNX 500

8 Franklin India Prima Fund FIPF

Portfolio As of March 31, 2004 Company Name No. of Market Value % of Company Name No. of Market Value % of shares Rs. Lakhs Assets shares Rs. Lakhs Assets Fund Category Air Freight & Couriers Industrial Conglomerates Blue Dart 215063 262.38 0.40 Indian Rayon * 2575365 4866.15 7.42 Apparel & Accessories Industrial Machinery Raymond * 1352007 2430.91 3.71 Fag Bearings 673665 707.35 1.08 Auto Parts & Equipment Ingersoll Rand 191772 404.83 0.62 MICO * 27087 3646.37 5.56 Vesuvis India 213866 244.45 0.37 Ucal Fuel 530330 1416.78 2.16 Cummins India 231541 227.72 0.35 Denso India 964225 402.08 0.61 IT Consulting & Services Goetze India 20619 16.07 0.02 Mphasis BFL 74310 403.73 0.62 Automobile Manufacturers Aztec Software 147436 27.57 0.04 Ashok Leyland * 1460297 3703.31 5.65 Marine * 1385272 3209.68 4.90 GE Shipping * 1999479 2538.34 3.87 Investment Style Eicher 51586 46.48 0.07 Banks Shipping Corporation of India 793309 1008.69 1.54 The fund manager seeks aggressive UTI Bank * 2402037 3524.99 5.38 Oil & Gas Exploration & growth by focusing primarily on mid Kotak Mahindra Bank * 526367 2127.05 3.24 Production and small cap companies. Centurion Bank 5897292 574.99 0.88 ONGC 113370 952.82 1.45 Corporation Bank 398021 1115.25 1.70 Oil & Gas Refining & Marketing 287838 698.58 1.07 Kochi Refineries * 943688 1955.79 2.98 Investment Objective Andhra Bank 1012580 512.37 0.78 Chennai Petrochemicals 910672 1325.48 2.02 Aims to provide long term capital Broadcasting & Cable TV IBP Company 317200 1867.36 2.85 appreciation as primary objective TV Today Network 1270753 1696.46 2.59 Paper Packaging Building Products and income as secondary objective Max India 207677 272.78 0.42 Asahi India 168485 211.03 0.32 Personal Products Commodity Chemicals 126229 330.59 0.50 Date of Allotment Goodlass Nerolac 415389 1841.42 2.81 Pharmaceuticals Finolex 996519 502.25 0.77 IPCA Labs 276072 1810.48 2.76 December 1, 1993 Computer Hardware Wockhardt 67188 535.59 0.82 CMC 21438 105.73 0.16 Fund Manager Construction Materials Biocon 39500 124.43 0.19 Madras Cements 126182 977.22 1.49 Power Generation & Supply K. N. Siva Subramanian Consumer Finance Honda Siel 112938 124.23 0.19 LIC Housing Finance * 2408232 4397.43 6.71 Speciality Chemicals Latest NAV Diversified Chemicals Atul Ltd 594209 194.01 0.30 Aarti Industries 632624 1186.49 1.81 Clariant 44997 75.03 0.11 Growth Plan Rs. 72.43 Diversified Metals & Mining Steel Dividend Plan Rs. 28.90 Gujarat Mineral Maharashtra Seamless 171501 289.15 0.44 Development Corporation 251422 463.50 0.71 Textiles Electrical Components Mahavir Spinning 161299 220.58 0.34 Fund Size & Equipments Trading Companies & Distributors Rs. 655.70 crores Crompton Greaves 427615 658.74 1.00 Power Trading Corporation 353325 56.53 0.09 Fertilisers & Agricultural Tyres & Rubber Chemicals 293504 730.09 1.11 Turnover EID Parry 680499 1365.76 2.08 JK Industries 478602 215.37 0.33 Monsanto Chemicals 100000 1286.75 1.96 Portfolio Turnover 94.80% Unlisted equity holdings Bayer 203789 392.60 0.60 Coromandel Fertilisers 168623 182.20 0.28 Control & Switch Gears 21.50 0.03 Volatility Measures (3 years) Gas Utilities HIM Technoforge 0.02 0.00 Total equity holdings 62844.18 95.84 Standard Deviation 8.92 311058 1461.82 2.23 Hotels Other current assets 2725.55 4.16 R-squared 0.89 Indian Hotels 214067 896.83 1.37 Total assets 65569.73 100.00 Beta 1.08 Sharpe Ratio* 0.38 * Top 10 holdings

* Risk-free rate assumed to be 6.25% (based on Portfolio Composition and Performance JP Morgan 3 month T-Bill Index) Fund Manager’s Commentary Sector Allocation - Total Assets Expense Ratio 2.28% The equity exposure of the scheme increased to 95.84% from 93.09% during the quarter. The main additions to the Minimum Investment/ porNAtfolioV P haveerformance been Kotak Mahindra Bank, TV Today Network Multiples for New Investors and IBP. During the period, we also added oil refinery stocks to Rs.5000/1000 the portfolio as we expect the sector to benefit from robust economic expansion in the country. Additional Investment/ Multiples for Existing Investors Rs.1000/1000 NAV Performance Last Last Last Last Since Load Structure * * * 3 months 1 year 3 years 5 years inception Entry Load 2% FIPF (G) -10.13% 160.35% 58.48% 32.72% 21.11% Exit Load Nil FIPF (D) -10.13% 160.31% 58.46% 32.71% 21.11% S&P CNX 500 -4.82% 107.81% 24.51% 13.95% 5.43% Rs. 10000 invested at inception in FIPF & S&P CNX 500

Past performance may or may not be sustained in future. *Compounded and annualised Dividends declared assumed to be reinvested Rs. 72,430

SIP in an equity fund can provide healthy returns over time *If you had invested in FIPF……. Monthly investment Rs.1,000 Number of investment periods (since inception) 124 months Rs. 17,268 TNAotal Vinvestment Performance Rs.124,000 Value of investment (As of March 31, 2004) Rs.552,757 Return on investment 27.13% * Load is not taken into consideration. In the same period, a SIP in S&P CNX 500 would have given a return of 11.32%. ____ FIPF ____ S&P CNX 500

9 4 Franklin India Opportunities Fund FIOF

Portfolio As of March 31, 2004 Company Name No. of Market Value % of Company Name No. of Market Value % of shares Rs. Lakhs Assets shares Rs. Lakhs Assets Fund Category Air Freight & Couriers Oil & Gas Exploration Blue Dart 641918 783.14 3.56 & Production Aluminium ONGC 38090 320.13 1.46 NALCO 495155 916.78 4.17 Oil & Gas Refining Banks & Marketing HDFC Bank * 468025 1770.77 8.05 209245 778.60 3.54 HPCL * 200000 1015.20 4.62 SBI 75000 454.27 2.07 Indian Oil Corporation 150000 744.38 3.39 Bank of Baroda 158291 384.17 1.75 BPCL 100000 478.80 2.18 Investment Style Broadcasting & Cable TV The fund manager seeks long term Zee Telefilms * 1089759 1462.46 6.65 IBP Company 26740 157.42 0.72 capital appreciation by focusing on Television Eighteen * 441287 994.88 4.52 Pharmaceuticals companies that operate in the space where India has a strong competitive TV Today Network 236613 315.88 1.44 Biocon 13200 41.58 0.19 Commodity Chemicals advantage, companies that are Trading Companies globally competitive and those that Reliance Industries * 200000 1076.10 4.89 & Distributors are grossly undervalued or have high Computer Hardware growth potential CMC 14968 73.82 0.34 Power Trading Corporation 127580 20.41 0.09 Construction Materials Unlisted equity holdings Investment Objective ACC * 400000 1018.20 4.63 Seeks to provide long term capital India Infoline 12.36 0.06 Electric Utilities appreciation by capitalising on the Planetasia 1.37 0.01 long-term growth opportunities in Tata Power * 300000 1130.85 5.14 the Indian economy Gas Utilities Quantum Info. 0.80 0.00 GAIL 150155 319.98 1.46 Numero Uno 0.01 0.00 Date of Allotment Integrated Debt holdings Rating Market Value % of February 21, 2000 Telecommunication Services Rs. Lakhs Assets Fund Manager MTNL 700000 897.40 4.08 TV Eighteen ZCB’s BBB- 30.96 0.14 IT Consulting & Services K.N. Siva Subramanian Total equity holdings 21255.81 96.66 Infosys * 42579 2102.61 9.56 Debt holdings 30.96 0.14 Latest NAV * 149531 2032.65 9.24 Growth Plan Rs. 8.56 Mphasis BFL * 235008 1276.80 5.81 Other current assets 703.75 3.20 Dividend Plan Rs. 8.56 HCL Tech. 271934 673.99 3.06 Total assets 21990.52 100.00

Fund Size Portfolio Composition and Performance Rs. 219.91 crores

Turnover Fund Manager’s Commentary Sector Allocation - Total Assets Portfolio Turnover 104.99% The scheme was repositioned during the quarter in order Volatility Measures (3 years) to broad base its investment universe, to help investors benefit Standard Deviation 8.45 frNAom Vthe P erformancestrong potential of various sectors. Accordingly, we R-squared 0.94 have restructured the portfolio in March and added stocks in Beta 0.74 sectors that are likely to benefit from a growing Indian economy Sharpe Ratio* 0.12 and the outsourcing trend. * Risk-free rate assumed to be 6.25% (based on JP Morgan 3 month T-Bill Index) NAV Performance Expense Ratio Last Last Last Since 2.34% 3 months 1 year 3 years* inception* Minimum Investment/ FIOF -7.06% 90.22% 19.99% -3.71% Multiples for New Investors BSE 200# -12.75% 40.65% 2.31% -31.04% Rs.5000/1000 Rs. 10000 invested at inception in FIOF & BSE 200 Past performance may or may not be sustained in future. Additional Investment/ *Compounded and annualised. The scheme was launched as an open end Multiples for Existing Investors sector equity scheme and has been repositioned in its new form with effect from March 10, 2004 #Index adjusted for the period February 21, 2000 Rs.1000/1000 to March 10, 2004 with the performance of ET Mindex

Load Structure Entry Load 2% SIP in an equity fund can provide healthy returns over time *If you had invested in FIOF……. Exit Load Nil Monthly investment Rs.1,000 Number of investment periods (since inception) 49 months TNAotal Vinvestment Performance Rs. 49,000 Value of investment (As of March 31, 2004) Rs. 75,603 ______# Return on investment 21.61% FIOF Rs. 8560 BSE 200 Rs. 2171 * Load is not taken into consideration. In the same period, a SIP in BSE 200# would have given a return of 1.69%.

10 Franklin India Taxshield FIT

Portfolio As of March 31, 2004 Company Name No. of Market Value % of Company Name No. of Market Value % of shares Rs. Lakhs Assets shares Rs. Lakhs Assets Fund Category Aluminium Satyam Computer 105000 308.18 2.56 Hindalco * 56394 686.40 5.70 Mphasis BFL 51660 280.67 2.33 Auto Parts & Equipment EServe 22061 133.59 1.11 MICO 1028 138.39 1.15 Oil & Gas Exploration Automobile Manufacturers & Production Maruti Udyog * 95000 472.10 3.92 ONGC 21550 181.12 1.50 Eicher 97926 88.23 0.73 Hindustan Oil Exploration 164017 63.72 0.53 Eicher Motors 3371 7.81 0.06 Oil & Gas Refining Banks Investment Style & Marketing SBI * 141681 858.16 7.12 HPCL * 203817 1034.58 8.59 Kotak Mahindra Bank * 110037 444.66 3.69 The fund manager seeks steady Packaged Foods growth by maintaining a diversified HDFC Bank 108928 412.13 3.42 portfolio of equities across sectors Centurion Bank 2385318 232.57 1.93 Nestle * 90487 572.33 4.75 and market cap ranges. Broadcasting Personal Products & Cable TV Marico 99980 261.85 2.17 Investment Objective TV Today Network 260567 347.86 2.89 Pharmaceuticals Aims to provide medium to long term Television Eighteen 100000 225.45 1.87 Sun Pharma 48498 315.19 2.62 growth of capital along with income Commodity Chemicals Wockhardt 27614 220.13 1.83 tax rebate. Asian Paints 140833 427.85 3.55 Computer Hardware Pfizer 33640 153.68 1.28 Date of Allotment CMC 4452 21.96 0.18 Biocon 7450 23.47 0.19 April 10, 1999 Construction & Sun Pharma (RPS) 20000 0.21 0.00 Engineering Fund Manager Tobacco L&T * 154900 889.67 7.38 ITC * 86558 901.42 7.48 Fertilisers & R. Sukumar Trading Companies Agricultural Chemicals Latest NAV Monsanto Chemicals 28248 363.48 3.02 & Distributors Power Trading Corporation 75379 12.06 0.10 Growth Plan Rs. 51.58 Coromandel Fertilisers 29693 32.08 0.27 Dividend Plan Rs. 20.16 Gas Utilities Unlisted equity holdings GAIL 90934 193.78 1.61 Fund Size Globsyn Tech. 1.17 0.01 Industrial Conglomerates Quantum Info. 0.06 0.00 Rs. 120.48 crores Grasim * 41246 441.11 3.66 Indian Rayon 92773 175.29 1.45 Total equity holdings 11724.46 97.31 Turnover IT Consulting & Services Other current assets 323.52 2.69 Portfolio Turnover 136.72% Infosys * 16242 802.05 6.66 Total assets 12047.98 100.00

Volatility Measures (3 years) * Top 10 holdings Standard Deviation 6.81 R-squared 0.97 Portfolio Composition and Performance Beta 0.90 Sharpe Ratio* 0.28 Fund Manager’s Commentary Sector Allocation - Total Assets * Risk-free rate assumed to be 6.25% (based on JP Morgan 3 month T-Bill Index) The equity exposure of the scheme remained almost at Expense Ratio the same levels at 97.31% compared to the end of last NAV Performance 2.43% quarter. The exposure to banking and technology stocks has come down, while that to FMCG, media and auto sectors Minimum Investment/ has gone up . Multiples for New Investors

Rs.500/500

Additional Investment/ NAV Performance Multiples for Existing Investors Last Last Last Since Rs.500/500 3 months 1 year 3 years inception*

Load Structure FIT (G) 2.48% 118.56% 32.90% 39.03%

Entry Load 2% FIT (D) 2.46% 118.60% 32.90% 39.04% Exit Load NIL S&P CNX 500 -4.82% 107.81% 24.51% 16.06% Rs. 10000 invested at inception in FIT & S&P CNX 500 Tax Rebate Past performance may or may not be sustained in future. *Compounded and annualised Dividends declared assumed to be reinvested Investments upto Rs.10,000 in a Rs.51,580 financial year qualify for a tax rebate under Section 88 (2) (xiii b) of the Income Tax Act, 1961 SIP in an equity fund can provide healthy returns over time *If you had invested in FIT……. Monthly investment Rs.1,000 Rs.20,993 Number of investment periods (since inception) 60 months TNAotal Vinvestment Performance Rs. 60,000 Value of investment (As of March 31, 2004) Rs. 141,879 Return on investment 35.29% * Load is not taken into consideration. In the same period, a SIP in S&P CNX 500 would have given a return of 21.25%. ____ FIT ____ S&P CNX 500

11 Franklin India Index Fund FIIF

Portfolio As of March 31, 2004 Company Name No. of Market Value % of Company Name No. of Market Value % of shares Rs. Lakhs Assets shares Rs. Lakhs Assets Fund Category NSE Nifty Plan BSE Sensex Plan Reliance Industries 76632 412.32 11.47 Reliance Industries 7632 41.06 13.43 Hindustan Lever 120865 186.62 5.19 Infosys 496 24.49 8.01 Infosys 3650 180.24 5.02 ICICI Bank 6125 18.12 5.93 ITC 1724 17.95 5.87 SBI 28858 174.84 4.87 Hindustan Lever 10936 16.87 5.52 Wipro 12779 173.95 4.84 SBI 2351 14.24 4.66 Bharti Televentures 101708 158.46 4.41 L&T 2225 12.78 4.18 Investment Style ITC 13596 141.82 3.95 HDFC 1949 12.55 4.11 The fund manager follows a passive ICICI Bank 33777 100.08 2.78 Ranbaxy 1290 12.15 3.97 style of equity investing GAIL 46420 98.97 2.75 2237 10.87 3.55 Ranbaxy 10193 95.79 2.67 TISCO 2747 10.53 3.45 Investment objective Hindalco 734 8.93 2.92 HPCL 18616 94.41 2.63 Aims to provide returns that, before HDFC Bank 2265 8.57 2.80 Tata Motors 19077 92.69 2.58 expenses, closely correspond to the HPCL 1688 8.57 2.80 total return of common stocks as HDFC 13503 86.86 2.42 Satyam Computer 2827 8.30 2.71 represented by the S&P CNX Nifty BHEL 13480 81.47 2.27 Index under the ‘Nifty’ Plan and BSE Grasim 730 7.81 2.55 Sensex under the ‘BSE Sensex’ Plan. Maruti Udyog 15836 78.78 2.19 Bajaj Auto 704 6.42 2.10 BPCL 16459 78.88 2.19 Wipro 463 6.29 2.06 Date of Allotment L&T 13636 78.32 2.18 ONGC 710 5.97 1.95 Reliance Energy 761 5.84 1.91 NSE Nifty Plan August 4, 2000 Tisco 20252 77.70 2.16 BSE Sensex Plan August 27, 2001 Bharti Televentures 3685 5.70 1.86 SAIL 227468 73.36 2.04 Dr Reddy’s 569 5.54 1.81 Fund Manager NALCO 35335 65.56 1.82 Tata Power 1417 5.34 1.75 R. Sukumar / Anil Prabhudas Reliance Energy 8355 63.83 1.78 BHEL 850 5.14 1.68 Hindalco 5069 61.86 1.72 Hero Honda 990 4.86 1.59 Latest NAV HDFC Bank 15610 59.12 1.65 358 4.19 1.37 BSE Sensex Plan Grasim 5045 53.88 1.50 ACC 1530 3.89 1.27 MTNL 2813 3.61 1.18 Growth Plan Rs. 16.1727 Hero Honda 10964 53.79 1.50 Dividend Plan Rs. 16.1727 Gujarat Ambuja Cement 1101 3.25 1.06 Satyam Computer 17331 50.89 1.42 Zee Telefilms 2253 3.02 0.99 NSE Nifty Plan Bajaj Auto 5536 50.42 1.40 Growth Plan Rs. 13.4372 Total equity holdings 302.85 99.05 MTNL 34668 44.46 1.24 Other current assets 2.91 0.95 Dividend Plan Rs. 13.4372 Tata Power 10844 40.90 1.14 Total assets 305.76 100.00 Fund Size Dr Reddy’s 4195 40.87 1.14 BSE Sensex Plan Rs. 3.06 crs HCL Tech. 16211 40.15 1.12 Performance NSE Nifty Plan Rs 35.94 crs Cipla 3299 38.73 1.08 Sun Pharma 5105 33.26 0.93 NAV Performance Expense Ratio VSNL 15633 32.06 0.89 Last Last Last Since Tracking BSE Sensex Plan 1.50% Oriental Bank 10501 31.64 0.88 3 months 1 year 3 years* inception* Error NSE Nifty Plan 1.00% Zee Telefilms 22620 30.30 0.84 FIIFNA - NiftyV P Planerformance-6.04% 80.04% 15.87% 8.30% 1.88% Mahindra & Mahindra 6325 29.39 0.82 Minimum Investment/ S&P CNX Nifty -5.74% 81.14% 15.53% 4.98% - Gujarat Ambuja Cement 8912 26.33 0.73 Multiples for New Investors FIIF - BSE Plan** -3.74% 75.99% N.A 20.36% 2.00% Rs.5000/1000 IPCL 13775 25.07 0.70 BSE Sensex -4.25% 83.38% N.A 22.27% - Glaxo 4073 24.71 0.69 Past performance may or may not be sustained in future. Additional Investment/ ACC 9343 23.79 0.66 *Compounded and annualised ** The existing BSE Sensex Plan in Multiples for Existing Investors Shipping Corporation FT India Index Fund, launched on 27.8.01 has been merged as it is into Rs.1000/1000 FIIF - BSE Sensex Plan on 26.3.2004. of India 15532 19.76 0.55 ABB 2331 18.58 0.52 Rs. 10000 invested at inception in FIIF - NSE Nifty Plan Load Structure Digital Global 1824 15.34 0.43 Entry Load NIL 9873 12.53 0.35 Exit Load 1% (if redeemed within 1 month from 15453 12.37 0.34 Rs.13,437 date of allotment) Indian Hotels 2502 10.53 0.29 Tata Tea 3103 10.29 0.29 Colgate Palmolive 7258 9.47 0.26 Britannia 1402 8.85 0.25 Total equity holdings 3504.29 97.51 Other current assets 89.54 2.49 Total assets 3593.83 100.00

12 Franklin Infotech Fund FIF

Portfolio As of March 31, 2004 Company Name No. of shares Market Value (Rs. Lakhs) % of Assets Fund Category Infosys 86757 4284.19 34.55

Wipro 101480 1379.47 11.12

Mphasis BFL 238761 1297.19 10.46

Satyam Computer 429295 1259.98 10.16

EServe 180998 1096.03 8.84

Investment Style Hughes Software 200229 1035.18 8.35

The fund manager seeks growth of HCL Tech. 322868 800.23 6.45 capital by focusing on companies in the information technology sector Bharat Electronics 92350 459.67 3.71

Investment Objective CMC 61885 305.22 2.46

Seeks to provide long term capital Infotech Enterprises 256000 284.67 2.30 appreciation by investing primarily in Information Technology industry. IGATE Global Software 20000 40.80 0.33

Date of Allotment Danlaw Tech. 15000 3.46 0.03

August 22, 1998 Unlisted equity holdings

Fund Manager Planetasia.Com 2.72 0.02

R. Sukumar Total equity holdings 12248.81 98.77

Latest NAV Other current assets 152.08 1.23

Growth Plan Rs. 17.58 Total assets 12400.89 100.00 Dividend Plan Rs. 10.15

Fund Size Portfolio Composition and Performance Rs.124.01 crores NAV Performance Turnover Technology stocks in US witnessed constant selling pressure during the quarter as investors shifted assets into other 3 months 1 year 3 years* 5 years* Inception* Portfolio Turnover 67.57% sectors and the Nasdaq fell below the 2000 mark. The sector FIF (G) -15.11% 40.53% 6.69% 10.60% 25.12% started the quarter on a good note with gains in January. But Volatility Measures (3 years) despite largely good results from bellwether stocks, investors FIF (D) -15.19% 40.39% 6.66% 10.58% 25.10% preferred to lock gains on the view that prices have run sharply BSE IT Index -18.28% 29.21% 1.87% 5.11% N.A Standard Deviation 11.89 and the Nasdaq registered losses in February and March. R-squared 0.97 Past performance may or may not be sustained in future. The weak global sentiment was reflected back home as *Compounded and annualised Dividends/Bonus declared assumed to be reinvested Beta 0.89 well with domestic technology stocks coming under pressure. Sharpe Ratio* 0.002 The growing political rhetoric in US over outsourcing combined * Risk-free rate assumed to be 6.25% (based on with the sharp rise in the rupee, dampened sentiment further. Rs. 10000 invested at inception in FIF JP Morgan 3 month T-Bill Index) We believe both these events are likely to have an impact only Expense Ratio over the short term. Once the presidential race is over, the focus on offshoring is likely to reduce and in any case, increasing 2.39% number of studies done by US think-tanks and trade bodies are highlighting the benefits of outsourcing to the US economy and Minimum Investment/ corporate America. With regard to the appreciation of the Multiples for New Investors rNAupee,V especiallyPerformance towards the end of the quarter, we feel that Rs. 35,165 Rs.5000/1000 this sharp momentum is unlikely to be sustained. A strong domestic economy and weakness in the US dollar which have Additional Investment/ resulted in a secular appreciation in the rupee, have been a Multiples for Existing Investors reality for a while and Indian companies are adopting various Rs.1000/1000 strategies including hedging and improving the geographical mix of their clientele to mitigate the impact on earnings. The NAV is adjusted for Bonus Load Structure coming quarterly results should give us further indications as to how tech majors are tackling this issue. Entry Load 2% We believe that such short term hiccups are part and SIP in an equity fund can provide healthy returns over time Exit Load Nil parcel of any industry that is growing and looking to acquire a *If you had invested in FIF……. global scale. India is likely to maintain its status as a favoured Monthly investment Rs.1,000 destination for IT and IT enabled services because of its large Number of investment periods (since inception) 68 months skilled & English speaking labor pool, cost and project TNAotal Vinvestment Performance Rs. 68,000 management advantages, quality standards and process Value of investment (As of March 31, 2004) Rs. 93,593 expertise. These advantages, along with a favorable time Return on investment 11.18% difference with North America and Europe, reinforce the long * Load is not taken into consideration. term potential of the sector.

13 4 Franklin FMCG Fund FFF

Portfolio As of March 31, 2004 Company Name No. of Shares Market Value (Rs. Lakhs) % of Assets Fund Category ITC 40000 416.56 19.69 Hindustan Lever 203390 313.73 14.83 Nestle 35000 221.38 10.46 Asian Paints 60000 182.28 8.62 Godrej Consumer 80000 130.92 6.19 Marico 47879 125.40 5.93 Tata Tea 28700 95.00 4.49 Investment Style Dabur 108810 85.58 4.05 The fund manager seeks long term capital appreciation by focusing on Pidilite 27815 82.55 3.90 Fast Moving Consumer Goods (FMCG) companies Colgate Palmolive 60000 78.15 3.69 Britannia 12000 74.99 3.54 Investment Objective Nirma 22865 69.51 3.29 Seeks to provide long term capital appreciation by investing primarily Procter & Gamble 15000 61.49 2.91 in shares of companies operating in Smithkline Consumer 24053 59.54 2.81 the FMCG industry Ind Shaving 9340 48.96 2.31 Date of Allotment Zee Telefilms 25400 34.09 1.61 March 31, 1999 TV Today Network 4700 6.27 0.30 Fund Manager Total equity holdings 2086.40 98.62 K.N. Siva Subramanian Other current assets 29.16 1.38

Latest NAV Total assets 2115.56 100.00 Growth Plan Rs. 14.57 Dividend Plan Rs. 12.15

Fund Size Portfolio Composition and Performance Rs.21.16 crores NAV Performance Turnover The FMCG sector which has been impacted by various Last Last Last Since Portfolio Turnover 48.67% factors such as weak demand, down trading, increased 3 months 1 year 3 years* inception* competition from regional players, got a new jolt during the Volatility Measures (3 years) FFF -8.88% 50.52% 10.61% 7.81% Standard Deviation 5.22 quarter in the form of a price war between established players ET Brandex -14.65% 26.52% -2.73% -4.97% R-squared 0.92 such as P&G and HLL. P&G started off with strong price cuts in Beta 0.81 Past performance may or may not be sustained in future. Sharpe Ratio* 0.06 the detergents, which forced HLL to follow suit in order to protect *Compounded and annualised

* Risk-free rate assumed to be 6.25% (based on market share. This later got extended to personal care products JP Morgan 3 month T-Bill Index) like shampoos. Rs. 10000 invested at inception in FFF & ET Brandex Expense Ratio Nestle was the latest FMCG major to announce results for 2.50% Rs. 14,570 the year ending December 2003 that were largely in line with Minimum Investment/ expectations. The company has registered a 17% topline and Multiples for New Investors around 21% bottomline growth led by strong performance in Rs. 7,747 Rs.5000/1000 bothNA Vdomestic Performance and export markets. The bottomline performance Additional Investment/ has come despite a 36% dip in other income during the Multiples for Existing Investors December ending quarter. Rs.1000/1000 While the ongoing price war is likely to hit margins over Load Structure ____ FFF ____ ET Brandex the short term, we believe it is a positive development from a Entry Load 2% Exit Load Nil long term perspective, given that drivers such as improvement in disposable incomes and agricultural incomes are in place. The SIP in an equity fund can provide healthy returns over time cut in prices will help the established players in improving their *If you had invested in FFF……. penetration as branded products become affordable and this Monthly investment Rs.1,000 Number of investment periods (since inception) 60 months combined with the introduction of low unit size packs for TNAotal Vinvestment Performance Rs. 60,000 premium products is likely to drive potential uptrading in the Value of investment (As of March 31, 2004) Rs. 75,806 Return on investment 9.29% sector. This could also help the majors meet the regional players * Load is not taken into consideration. In the same period, a SIP in head on leading to consolidation in the sector. ET Brandex would have given a return of -2.07%.

14 4 Franklin Pharma Fund FPF

Portfolio As of March 31, 2004 Company Name No. of shares Market Value (Rs. Lakhs) % of Assets Fund Category Ranbaxy 210492 1982.20 21.70

Wockhardt 116741 930.60 10.19

Dr Reddy’s 93356 909.24 9.95

Cipla 71737 839.29 9.19

Sun Pharma 126349 821.14 8.99

Glaxo 118346 718.30 7.86 Investment Style Pfizer 134098 612.63 6.71 The fund manager seeks to achieve Aventis Pharma 76260 550.60 6.03 long term capital appreciation by focusing on companies in IPCA Labs 83004 544.34 5.96 Pharmaceutical / Life Sciences sector Cadila 116577 529.49 5.80 Investment objective Burroughs Wellcome 19350 155.80 1.71 Seeks to provide long term capital appreciation by investing primarily in Lupin 20000 130.00 1.42 shares of companies operating in Jubilant Organosys 14587 107.08 1.17 Pharmaceutical/ Life Sciences industry Monsanto Chemicals 8220 105.77 1.16 Date of Allotment Biocon 5950 18.74 0.21 March 31, 1999 Sun Pharma (RPS) 122340 1.30 0.01

Fund Manager Total equity holdings 8956.52 98.06 R. Sukumar Other current assets 177.58 1.94

Latest NAV Total assets 9134.10 100.00 Growth Plan Rs. 16.10 Dividend Plan Rs. 13.68

Fund Size Portfolio Composition and Performance

Rs.91.34 crores

The last quarter witnessed a reinforcement of India’s NAV Performance Turnover potential to become a significant outsourcing partner for both Last Last Last Since Portfolio turnover 93.94% global pharma majors and generic manufacturers given the 3 months 1 year 3 years* inception* changing dynamics of the global pharmaceutical industry. On FPF -5.85% 101.50% 21.98% 9.98% Volatility Measures (3 years) one hand, falling R&D productivity, looming patent expiries and ET Lifex -10.05% 83.57% 22.55% 9.64% Standard Deviation 6.01 an unprecedented number of patent challenges have underlined R-squared 0.93 the need of collaborative and contract research and Past performance may or may not be sustained in future. Beta 0.93 manufacturing for pharma majors with Indian companies which *Compounded and annualised Sharpe Ratio* 0.19 enjoy the advantages of scientific manpower and low cost of * Risk-free rate assumed to be 6.25% (based on innovation. On the other hand, the quarter saw structural risks Rs. 10000 invested at inception in FPF & ET Lifex JP Morgan 3 month T-Bill Index) emerge like aggressive defense of IPRS by patent holders, advent of authorised generics and prescription to over-the- Expense Ratio counter shifts. This means global generic companies have to 2.46% partner with countries like India in order to lower costs, reduce Minimum Investment/ turnaround times and increase their product baskets. Multiples for New Investors Indian pharmaceutical sector is poised to take advantage NAV Performance Rs.5000/1000 of the growing need for outsourcing due to - (i) a vast pool of scientists particularly strong in chemistry based skills (ii) globally Additional Investment/ Multiples for Existing Investors approved manufacturing plants and (iii) growing knowledge base of intellectual capital within many companies. Rs.1000/1000 These advantages help Indian companies in positioning ______Load Structure themselves as key partners at each stage of the sector life cycle. FPF Rs. 16,100 ET Lifex Rs. 15,854 On the pre-clinical and discovery stages, the chemistry based Entry Load 2% skills as well as development of novel targets can be leveraged. Exit Load Nil During clinical development, the large patient population SIP in an equity fund can provide healthy returns over time *If you had invested in FPF……. enables faster results, which lowers overall R&D costs and ensures quicker reach to the markets. The growing number of Monthly investment Rs.1,000 skilled clinical investigators in Indian companies can ensure that Number of investment periods (since inception) 60 months TNAotal Vinvestment Performance Rs. 60,000 global protocols are adhered to in the clinical development Value of investment (As of March 31, 2004) Rs. 96,201 program. On commercial launch, the large number of FDA Return on investment 18.96% approved plants provides the capability to undertake contract * Load is not taken into consideration. In the same period, a SIP in manufacturing. ET Lifex would have given a return of 18.22%.

15 4 FT India PE Ratio Fund FTIPERF

Portfolio As of March 31, 2004 Company Name No. of Market Value % of Company Name No. of Market Value % of shares Rs. Lakhs Assets shares Rs. Lakhs Assets Fund Category Equity holdings VSNL 6342 13.01 0.67 Reliance Industries 30929 166.41 8.62 Zee Telefilms 9153 12.26 0.63 Hindustan Lever 48740 75.25 3.90 Infosys 1473 72.74 3.77 Mahindra & Mahindra 2567 11.93 0.62 SBI 11652 70.59 3.66 Gujarat Ambuja Cement 3500 10.34 0.54 Wipro 5157 70.20 3.64 IPCL 5502 10.01 0.52 Bharti Televentures 41197 64.18 3.32 ITC 5484 57.20 2.96 Glaxo 1647 9.99 0.52 ICICI Bank 13632 40.39 2.09 ACC 3774 9.61 0.50 Investment Style GAIL 18761 40.00 2.07 Ranbaxy 4117 38.69 2.00 Shipping Corporation The fund manager follows a passive HPCL 7505 38.06 1.97 of India 6239 7.94 0.41 investment style for the equity Tata Motors 7683 37.33 1.93 component, and seeks steady income ABB 947 7.55 0.39 HDFC 5444 35.02 1.81 with low volatility from the fixed BHEL 5431 32.82 1.70 Digital Global 739 6.21 0.32 income component of the portfolio Maruti Udyog 6428 31.98 1.66 Dabur 6388 5.11 0.26 BPCL 6650 31.87 1.65 Investment Objective Tata Chemicals 3984 5.06 0.26 L&T 5516 31.68 1.64 Seeks to provide superior risk-adjusted Tisco 8170 31.34 1.62 Indian Hotels 1006 4.23 0.22 returns through a dynamically SAIL 91445 29.49 1.53 Tata Tea 1249 4.14 0.21 balanced portfolio of equities and debt NALCO 14306 26.54 1.37 / money market instruments. Reliance Energy 3385 25.86 1.34 Colgate Palmolive 3010 3.93 0.20 Hindalco 2051 25.03 1.30 Britannia 562 3.55 0.18 Date of Allotment HDFC Bank 6292 23.83 1.23 Sun Pharma (RPS) 20860 0.22 0.01 Hero Honda 4432 21.74 1.13 February 25, 2002 Grasim 2029 21.67 1.12 Debt holdings Rating Market Value % of Satyam Computer 6979 20.49 1.06 Rs. Lakhs Assets Fund Manager Bajaj Auto 2238 20.38 1.06 Bharti Televentures - CP P1+ 429.86 22.26 Anil Prabhudas MTNL 13981 17.93 0.93 Tata Power 4389 16.55 0.86 Power Grid Corporation AAA 73.25 3.79 Latest NAV Dr Reddy’s 1691 16.48 0.85 Total equtiy holdings 1414.96 73.27 HCL Tech. 6560 16.25 0.84 Growth Plan Rs. 15.05 Total debt holdings 503.11 26.05 Cipla 1331 15.62 0.81 Dividend Plan Rs. 12.50 Sun Pharma 2055 13.39 0.69 Other current asets 13.13 0.68 Fund Size Oriental Bank 4270 12.87 0.67 Total assets 1931.20 100.00

Rs.19.31 crores

Turnover Portfolio Composition and Performance Portfolio Turnover 144.61% Fund Manager’s Commentary How does the scheme work? Expense Ratio The equity component of the scheme replicates 2.50% The equity exposure of the fund varied in line the NSE Nifty Index and the cash component is Minimum Investment/ with the PE ratio of the NSE Nifty Index. Multiples for New Investors invested in quality debt and money market instruments. The allocation to equities is determined Rs.5000/1000 based on the month-end weighted average PE ratio Additional Investment/ of the 50 stocks that constitute the NSE Nifty Index Multiples for Existing Investors and adjustment (if any) are made during the first NAV Performance Rs.1000/1000 week of the following month. Last Last Last Since Load Structure 3 months 6 months 1 year inception* Entry Load 1.5% PE Ratio Fund -3.71% 21.37% 71.80% 21.54% Exit Load NIL PE Ratio Fund’s Investment Strategy Past performance may or may not be sustained in future. If PE ratio of NSE Nifty ... the allocation to *Compounded and annualised falls in this band... NSE Nifty Index stocks is..%

Upto 12 90-100 NAV Performance Asset Allocation for April 2004 12-16 70-90 The weighted average PE ratio of NSE Nifty as on 16-20 50-70 31.3.2004 was 16.46. Hence, the asset allocation 20-24 30-50 for the fund in April 2004 will be... Equities - 50% to 70% 24-28 10-30 Debt/Money Market Insturments - 30% to 50% Above 28 0-10

16 4 FT India Asset Allocation Fund FTIAAF

Portfolio* As of March 31, 2004 Company Name % of Company Name Rating % of Assets Assets Fund Category Equity holdings HDFC Bank 1.75

Reliance Industries 9.49 ONGC 1.53

Satyam Computer 6.60 GAIL 1.47

ITC 5.94 TV Today Network 0.22

Tata Power 5.51 Biocon 0.20 Investment Style Nestle 5.45 CMC 0.16 The fund manager maintains the steady state asset allocation under Hero Honda 5.28 Power Trading Corporation 0.09 each of the five plans with monthly Total equity holdings Rs.1008.09 lakhs 86.77 rebalancing and seeks steady capital NALCO 5.26 appreciation from a diversified Other current assets Rs.153.71 lakhs 13.23 portfolio of equities and regular HPCL 5.24 income from the fixed income Total assets Rs.1161.80 lakhs 100.00 component by managing interest rate SBI 5.17 movements and credit risk. Debt holdings Rating % of Infosys 5.10 Investment objective Assets Ranbaxy 5.08 Seeks to provide investors a portfolio Bharti Telventures - CP P1+ 39.40 of equities and debt/money market instruments, in line with their ACC 4.38 Lakshmi General Finance AAA 5.35 chosen asset allocation plan. BPCL 4.12 IDBI AA+ 2.15 Date of Allotment Ashok Leyland 3.51 February 25, 2002 Total debt holdings Rs.908.89 lakhs 46.90

Fund Manager HCL Tech. 2.64 Other current assets Rs.1028.92 lakhs 53.10

K.N. Siva Subramanian & Asian Paints 2.57 Total assets Rs.1937.81 lakhs 100.00 Rahul Goswami * All plans have the same portfolio with the weightage of each scrip depending on the equity/debt ratio of each plan Fund Size Rs.31.00 crores

Turnover Portfolio Composition and Performance Portfolio Turnover 181.21%

Expense Ratio Fund Manager’s Commentary NAV Performance 2.25% The cash component of the equity portfolio has increased Last Last Last Since 3 months 6 months 1 year inception* duringNAV Ptheerformance quarter on account of fresh inflows. The main Minimum Investment/ additions to the portfolio have been Tata Power, Nestle and Pure Growth 0.20% 27.40% 82.28% 30.03% Multiples for New Investors NALCO. Steady Growth 0.42% 23.58% 65.47% 25.74% Rs.5000/1000 Balanced Growth 2.17% 18.83% 48.84% 20.75% Conservative Growth 0.75% 11.50% 33.17% 15.69% Additional Investment/ How does the scheme work? Inflation Hedge -0.15% 5.97% 16.23% 9.85% Multiples for Existing Investors FT India Asset Allocation Fund offers a choice of five Past performance may or may not be sustained in future. There is Rs.1000/1000 no appropriate benchmark index for the scheme. *Compounded and asset allocation plans, from the most conservative to the most annualised Load Structure aggressive, and maintains your chosen asset allocation Latest NAV Entry Load 1.5% through all market conditions through monthly rebalancing. Exit Load NIL Growth Dividend Pure Growth Rs. 17.3393 Rs. 13.7395 Rs. 10000 invested at inception in FTIAAF Steady Growth Rs. 16.1613 Rs. 13.0849 Balanced Growth Rs. 14.8478 Rs. 12.2996 Conservative Growth Rs. 13.5729 Rs. 11.2988 Inflation Hedge Rs. 12.1764 Rs. 10.4810

A choice of five plans Plans Steady State Asset Allocation Equity Debt / Money (%) market instruments (%) Pure Growth Plan 90 10 Steady Growth Plan 70 30

––– Pure Growth Rs.17339 ––– Conservative Balanced Growth Plan 50 50 ––– Steady Growth Rs.16161 Growth Rs.13573 Conservative Growth Plan 30 70 ––– Balanced Growth Rs.14848 ––– Inflation Hedge Rs.12176 Inflation Hedge Plan 10 90

17 4 FT India Life Stage Fund of Funds FTLF

Portfolio Composition and Performance As of March 31, 2004 How does the scheme work? NAV Performance Fund Category The scheme invests in a combination of Franklin Last Last Since 1 month 3 months inception Templeton India’s equity and income schemes. The debt and equity allocation is automatically rebalanced every The 20s Plan -0.11% -1.49% 9.29% 6 months to revert to the steady state levels. The 30s Plan 0.28% -0.62% 7.12% The 40s Plan 0.57% -0.14% 5.44% The 50s Plus Plan 0.73% 0.46% 4.02%

Past performance may or may not be sustained in future. There is no appropriate benchmark index for the scheme.

Investment Style The fund managers maintain the FTLF’s Investment Strategy Latest NAV allocation to the underlying schemes by rebalancing the portfolio once in 6 Steady State Asset Allocation Growth Dividend months to the steady state levels. Plans Equity Debt The 20s Plan Rs.10.9294 Rs.10.9294 Moreover, based on market conditions, the portfolio managers The 20s Plan 80% 20% The 30s Plan Rs.10.7121 Rs.10.7121 can make a tactical allocation of 10% The 30s Plan 55% 45% The 40s Plan Rs.10.5444 Rs.10.5444 on either side of the steady state The 50s Plus Plan Rs.10.4021 Rs.10.4021 asset allocation. The 40s Plan 35% 65% The 50s Plus Plan 20% 80% Investment objective Seeks to generate superior risk Steady State Asset Allocation to the underlying schemes adjusted returns to investors in line with their chosen asset allocation. FIBCF FIPF TIGF TIIF TIIBA Fund Manager’s Commentary

The 20s Plan 50% 15% 15% 10% 10% Date of Allotment The allocation to the underlying schemes will The 30s Plan 35% 10% 10% 25% 20% NAV Performance December 1, 2003 be rebalaned to the steady state asset allocation The 40s Plan 15% 10% 10% 35% 30% levels in the month of April 2004. Fund Manager The 50s Plus Plan 10% 0% 10% 40% 40% R. Sukumar & Nilesh Shah

Fund Size Rs.204.43 crores

Expense Ratio The 20s Plan: 0.75% The 30s Plan: 0.75% The 40s Plan: 0.50% The 50s Plus Plan: 0.25%

Minimum Investment/ Multiples for New Investors Rs.5000/1

Additional Investment/ Multiples for Existing Investors Rs.1000/1 Rs. 10000 invested at inception in FTLF Minimum Investment for Systematic Investment Plan Minimum of 12 cheques of Rs. 2000 or more each Minimum of 6 cheques of Rs. 4000 or more each

Load Structure Entry Exit Load: Load Rs. 10,929 The 20s Plan: 2.00% Nil The 30s Plan: 1.50% Nil Rs.10,712 The 40s Plan: 1.00% Nil Rs.10,544 The 50s Plus Plan: 0.50% Nil Rs.10,402

— The 20s Plan — The 30s Plan — The 40s Plan — The 50s Plus Plan

Past performance may or may not be sustained in future. There is no appropriate benchmark index for the scheme.

18 4 FT India Balanced Fund FTIBF

Portfolio As of March 31, 2004 Company Name No. of Market Value % of Company Name No. of Market Value % of shares Rs. Lakhs Assets shares Rs. Lakhs Assets Fund Category Equity holdings Packaged Foods Aluminium Britannia * 83594 522.42 4.85 Hindalco * 43431 528.62 4.90 Pharmaceuticals Auto Parts & Equipment MICO * 5277 710.37 6.59 Biocon 4100 12.91 0.12 Exide 227893 293.07 2.72 Sun Pharma (RPS) 100000 1.06 0.01 Automobile Manufacturers Tobacco Maruti Udyog * 110000 546.64 5.07 Banks ITC 21500 223.90 2.08 Investment Style SBI * 116000 702.61 6.52 Trading Companies The fund manager seeks to strike an Corporation Bank 79600 223.04 2.07 optimum balance between growth & Distributors and stability, by maintaining a Construction & Engineering diversified portfolio of equities and L&T32180 184.83 1.71 Power Trading Corporation 37304 5.97 0.06 managing interest rate movements Diversified Chemicals Unlisted equity holdings and credit risk on the fixed income Pidilite 38805 115.17 1.07 component Globsyn Tech. 10.53 0.10 Electrical Components & Equipments Debt holdings Rating Market Value % of Investment Objective Bharat Electronics 76135 378.96 3.52 Rs.Lakhs Assets Seeks to provide long term growth of Heavy Electrical Equipment capital and current income Thermax 104390 389.01 3.61 Lakshmi General Finance * AAA 518.88 4.81 BHEL 50000 302.25 2.80 Citicorp Finance Fleet Trust – PTC * AAA (SO) 489.22 4.54 Date of Allotment Industrial Conglomerates Power Grid Corporation AAA 449.52 4.17 December 10, 1999 Grasim * 55000 588.20 5.46 IT Consulting & Services Madras Cements AA 326.55 3.03 Fund Manager Satyam Computer * 205000 601.67 5.58 IOC PTC Loan Trust AAA 306.61 2.84 Infosys 5000 246.91 2.29 R. Sukumar, Chellappa & Rahul Panatone AAA (SO) 152.21 1.41 Goswami Oil & Gas Exploration & Production Total equity holdings 7411.61 68.76 Latest NAV ONGC 15830 133.04 1.23 Total debt holdings 2242.99 20.81 Growth Plan Rs. 16.48 Oil & Gas Refining & Marketing Other current assets 1124.29 10.43 Dividend Plan Rs. 14.75 HPCL * 136019 690.43 6.41 Total assets 10778.89 100.00

Fund Size * Top 10 holdings Rs.107.79 crores Portfolio Composition and Performance Bond Portfolio

Average maturity 2.50 years Fund Manager’s Commentary Sector Allocation - Equity Holdings Yield to maturity 5.78% The equity allocation of the scheme fell marginally to Expense Ratio 68.76% from 69.10% during the quarter. On the equity 2.46% side, the main additions have been Exide, BHEL, Infosys and Corporation Bank. On the debt side, we added the Minimum Investment/ Multiples for New Investors pass through certificates of Panatone.

Rs.5000/1000

Additional Investment/ NAV Performance Multiples for Existing Investors Last Last Last Since 3 months 1 year 3 years* inception* Rs.1000/1000 FTIBF (G) 0.86% 79.91% 28.42% 12.29% Load Structure FTIBF (D) 0.82% 79.85% 28.41% 12.28% Entry Load 1.5% Crisil Balanced Composition by Assets Exit Load NIL Fund Index -0.57% 52.18% N.A N.A Past performance may or may not be sustained in future. *Compounded and annualised Dividends declared assumed to be reinvested.

SIP can provide healthy returns over time *If you had invested in FTIBF……. Monthly investment Rs.1,000 Number of investment periods (since inception) 51 months NAV Performance Total investment Rs. 51,000 ■ Equity 68.76% Value of investment (As of March 31, 2004) Rs. 89,733 ■ Debt 20.81% Return on investment 27.59% ■ Other current assets 10.43% * Load is not taken into consideration.

19 4 Templeton India Pension Plan TIPP

Portfolio As of March 31, 2004 Company Name No. of Market Value % of Company Name Rating Market Value % of shares Rs. Lakhs Assets Rs. Lakhs Assets Fund Category Equity holdings Pharmaceuticals Aluminium Wockhardt 10000 79.72 1.41 Hindalco 10316 125.56 2.23 Biocon 1200 3.78 0.07 Auto Parts & Equipment Tobacco MICO 900 121.16 2.15 Banks ITC 11900 123.93 2.20 HDFC Bank * 39500 149.45 2.65 Trading Companies SBI 20000 121.14 2.15 & Distributors Investment Style Broadcasting & Cable TV Power Trading Corporation 11551 1.85 0.03 TV Today Network 50000 66.75 1.18 The fund manager seeks steady capital Debt Holdings Rating Market Value % of appreciation by maintaining a Commodity Chemicals Rs. Lakhs Assets diversified portfolio of equities and Reliance Industries 6000 32.28 0.57 seeks to earn regular income on the Lakshmi General Finance* AAA 415.10 7.36 Construction & fixed income component by managing Engineering interest rate movements and credit risk. Panatone * AAA (SO) 355.14 6.30 L&T * 26000 149.33 2.65 Indian Rayon * AAA 329.64 5.84 Investment Objective Gas Utilities IDBI * AA+ 297.91 5.28 Seeks to provide regular income under GAIL 14137 30.13 0.53 the Dividend Plan and capital Industrial Conglomerates GE Shipping * AAA 224.87 3.99 appreciation under the Growth Plan Grasim 12975 138.76 2.46 Power Grid Corporation * AAA 223.09 3.95 Date of Allotment IT Consulting & Services Indian Railways Infosys * 4236 209.18 3.71 March 31, 1997 Financial Corporation * AAA 216.08 3.83 Satyam Computer 30000 88.05 1.56 Grasim * AAA 157.25 2.79 Fund Manager EServe 8518 51.58 0.91 IDBI Home Finance - CP A1+ 95.32 1.69 R. Sukumar & Rahul Goswami Oil & Gas Exploration & Production Hongkong Bank N.R 65.45 1.16 Latest NAV ONGC 6450 54.21 0.96 NALCO AAA 8.31 0.15 Growth Plan Rs. 28.09 Oil & Gas Refining Total equity holdings 1711.63 30.34 Dividend Plan Rs. 14.84 & Marketing Total debt holdings 2388.16 42.34 Fund Size HPCL 20000 101.52 1.80 Other current assets 1541.01 27.32 Rs.56.41 crores Packaged Foods Nestle 10000 63.25 1.12 Total assets 5640.80 100.00 Bond Portfolio N.R. Non Rated * Top 10 holdings Average maturity 2.60 years Yield to maturity 5.70% Portfolio Composition and Performance Expense Ratio 2.25% Fund Manager’s Commentary Sector Allocation - Equity Holdings Minimum Investment/ Multiples for New Investors The equity exposure of the scheme decreased to 30.34% as we reshuffled our holdings and the debt exposure reduced to Rs.500/500 40.65%. The cash exposure has gone up due to fresh inflows Additional Investment/ into the scheme. On the equity side, the main additions have Multiples for Existing Investors been TV Today Network, Satyam Computer and ONGC. Rs.500/500

Load Structure NAV Performance

Entry Load 1.00% Last Last Last Last Since Exit Load 3%, if redeemed before 3 months 1 year 3 years* 5 years* inception* the age of 58 years (subject to a 3 year Pension Plan (G) 0.29% 43.83% 19.71% 16.02% 15.89% lock-in period) Pension Plan (D) 0.34% 43.91% 19.73% 16.02% 15.89% NIL, if redeemed after the age of 58 years Past performance may or may not be sustained in future.There is Composition by Assets Tax Rebate no appropriate benchmark index for the scheme. *Compounded and annualised Dividends declared assumed to be reinvested. Investments upto Rs. 70,000 in a financial year qualify for a tax rebate under Section 88 (2) (xiii c) of the SIP can provide healthy returns over time Income Tax Act, 1961 *If you had invested in TIPP…….

Monthly investment Rs.1,000 Number of investment periods (since inception) 84 months TNAotal Vinvestment Performance Rs. 84,000 Value of investment (As of March 31, 2004) Rs.155,009 ■ Equity 30.34% Return on investment 17.20% ■ Debt 42.34% ■ * Load is not taken into consideration. Other current assets 27.32%

20 4 Franklin India Balanced Fund FIBF

Portfolio As of March 31, 2004 Company Name No. of Market Value % of Company Name No. of Market Value % of shares Rs. Lakhs Assets shares Rs. Lakhs Assets Fund Category Aluminium Oil & Gas Exploration Hindalco * 15300 186.22 4.01 & Production Auto Parts & Equipment ONGC 6320 53.12 1.14 MICO * 1835 247.02 5.32 Oil & Gas Refining Exide 78008 100.32 2.16 Automobile & Marketing Manufacturers HPCL * 60000 304.56 6.56 Maruti Udyog * 40000 198.78 4.28 Packaged Foods Eicher 101991 91.89 1.98 Britannia * 29752 185.94 4.01 Investment Style Banks Pharmaceuticals The Fund Managers follow a conser- SBI * 52120 315.69 6.80 vative and prudent exposure to Corporation Bank 40000 112.08 2.42 Biocon 1650 5.20 0.11 equity and debt UTI Bank 20000 29.35 0.63 Trading Companies Commodity Chemicals & Distributors Investment Objective Reliance Industries 6500 34.97 0.75 Power Trading Corporation 14841 2.37 0.05 Seeks to generate long-term capital Construction & appreciation and current income Engineering Debt holdings Rating Market Value % of L&T 19000 109.13 2.35 Rs. Lakhs Assets Date of Allotment Construction Materials Power Grid Corporation * AAA 289.98 6.25 Madras Cements 17337 134.27 2.89 August 4, 2000 Indian Rayon & Industries*. AAA 219.76 4.74 Diversified Chemicals IDBI Home Finance * A1+ 188.34 4.06 Pidilite 34667 102.89 2.22 Fund Manager Electrical Components Reliance Industries AAA 107.30 2.31 R. Sukumar & Chellappa & Equipment IL&FS AAA 52.01 1.12 Bharat Electronics 25000 124.44 2.68 PFSL PTC - Citibank AAA(SO) 39.99 0.86 Latest NAV Heavy Electrical Government Securities Growth Plan Rs. 17.58 Equipment GOI 11.98% 2004 * SOV 258.23 5.57 Dividend Plan Rs. 15.20 Thermax 44340 165.23 3.56 IT Consulting & Services Total equity holdings 2784.71 60.02 Fund Size Satyam Computer 62400 183.14 3.95 Motorcycle Total debt holdings 1155.61 24.91 Rs. 46.40 crores Manufacturers Other current assets 699.24 15.07 Hero Honda 20000 98.09 2.11 Total assets 4639.56 100.00 Bond Portfolio

Average maturity 2.56 years * Top 10 holdings Yield to maturity 5.59% Portfolio Composition and Performance Expense Ratio

2.21% Fund Manager’s Commentary Sector Allocation - Equity Holdings Minimum Investment/ Multiples for New Investors The equity allocation of the scheme fell marginally

Rs.5000/1000 to 60.02% from 60.93% during the quarter. On the equity side, the main additions have been Exide, Hero Additional Investment/ Multiples for Existing Investors Honda, ONGC and Corporation Bank. On the debt

Rs.1000/1000 side, we added GOI 11.98% 2004.

Load Structure Entry Load 1.50% NAV Performance

Exit Load NIL Last Last Last Since 3 months 1 year 3 years* inception* Composition by Assets FIBF (G) -0.23% 71.85% 27.96% 16.44% FIBF (D) -0.13% 71.92% 27.01% 15.17% Crisil Balanced Fund Index -0.57% 52.18% N.A. N.A. Past performance may or may not be sustained in future. *Compounded and annualised Dividends declared assumed to be reinvested

SIP can provide healthy returns over time *If you had invested in FIBF…….

Monthly investment Rs.1,000 NumberNAV Poferformance investment periods (since inception) 44 months Total investment Rs. 44,000 ■ Equity 60.02% Value of investment (As of March 31, 2004) Rs. 75,536 ■ Debt 24.91% Return on investment 30.67% ■ Call, Cash & other current assets 15.07% * Load is not taken into consideration.

21 4 Templeton India Income Fund TIIF

Portfolio As of March 31, 2004 Company Name Rating Market Value % of Company Name Rating Market Value % of Rs. Lakhs Assets Rs. Lakhs Assets Fund Category Reliance Industries * AAA 10632.65 7.69 BHEL AAA 3251.10 2.35 Loan Securitisation SBI AAA 2914.07 2.11 Trust - Bajaj Auto (PTC) AAA (SO) 3539.46 2.56 Citicorp Finance AAA 3125.70 2.26 Neyveli Lignite Corporation AAA 2726.75 1.97

Hindalco Industries # AAA 2557.93 1.85 Power Grid Corporation AAA 2186.40 1.58 HDFC AAA 2520.25 1.82 BPCL AAA 1254.60 0.91 Loan Securitisation Trust - Investment Style Reliance Industries - PTC AAA (SO) 2046.45 1.48 Indian Oil Corporation LAAA 1049.10 0.76 The Fund Manager strives to earn Cholamandalam Investments steady returns in the fixed income & Finance Company MAAA 1558.80 1.13 Total PSU/PFI Bonds 32827.92 23.74 market by actively managing the funds portfolio on interest rate Panatone Finvest AAA (SO) 1522.05 1.10 movements and credit risks GOI 07.40% 2012 * SOV 17277.00 12.50 Citifinancial Retail Services AAA 1301.53 0.94 Investment Objective GOI 09.39% 2011 * SOV 12830.68 9.28 Tata Power AA+ 1237.14 0.89 Seeks to generate a steady stream of income through investment in fixed ICICI Bank LAAA 1108.70 0.80 GOI 11.30% 2010 * SOV 10699.20 7.74 income securities Citicorp Maruti Finance AAA 1044.90 0.76 GOI 06.85% 2012 * SOV 6396.88 4.63 Date of Allotment Rabo India Finance AAA 1033.50 0.75 GOI 07.55% 2010 * SOV 5236.52 3.79 March 5, 1997 IIDL AA (SO) 884.76 0.64 Fund Manager Citibank AAA 650.74 0.47 GOI 08.07% 2017 * SOV 3731.10 2.70 Nilesh Shah PFSL PTC - Citibank (MBS) AAA (SO) 232.67 0.17 GOI 07.46% 2017 SOV 2386.00 1.73 Latest NAV PFSL PTC - HDFC (MBS) AAA (SO) 95.17 0.07 Growth Plan Rs. 23.8062 GOI 07.49% 2017 SOV 593.65 0.43 Total Corporate Debt 35092.39 25.38 Dividend Plan Rs. 11.1311 GOI 06.25% 2018 SOV 536.25 0.39 IDBI * AA+ 8198.25 5.93 Fund Size Total Gilts 59687.27 43.17 Rs. 1382.64 crores IDFC * AAA 4104.59 2.97 Call, Cash and Other Assets 10656.65 7.71 Maturity & Yield Power Finance Corporation * AAA 3715.25 2.69 NTPC AAA 3427.80 2.48 Net Assets 138264.22 100.00 Avg Maturity YTM Bond 2.89 years 5.61% # Including erstwhile Indo Gulf Corporation’s debenture * Top 10 holdings Portfolio Composition and Performance Fund 4.85 years 5.28%* * Pre fund expenses

Modified Duration Fund Manager’s Commentary Composition by Assets 3.82 years The maturity period of the scheme was reduced during the quarter to 4.85 years from 5.55 years based on market Expense Ratio conditions.NAV Performance The exposure to gilts has been reduced to 43.17% 1.55% of the portfolio, while the exposure to corporate debt increased to 23.74%. We added debentures of Citibank Retail services Minimum Investment/ and on the gilt side, the main additions were GOI 8.07% 2017 Multiples for New Investors and GOI 7.46% 2017. Rs.10000/1000

Additional Investment/ NAV Performance Multiples for Existing Investors ■ Corporate Debt 25.38% Last Last Last Last Since ■ Gilts 43.17% Rs.1000/1000 3 months 1 year 3 years* 5 years* inception* ■ PSU/PFI Bonds 23.74% Load Structure TIIF(G) 0.97% 9.24% 12.50% 12.66% 13.02% ■ Call, Cash & Other Assets 7.71% Entry Load NIL TIIF (D) 0.97% 9.22% 12.70% 12.58% 13.23% Exit Load Rs.10 lakhs & Crisil Composite below - 0.5%, Bond Fund Index 0.92% 8.83% N.A N.A N.A if redeemed within 6 months of allotment Past performance may or may not be sustained in future. NAV Movement (since inception) *Compounded and annualised Dividends declared assumed to be reinvested Above Rs.10 lakhs - 0.25%, if redeemed Composition by Rating within 3 months of allotment

■ AAA/P1+/PR1+/A1+/SOV 92.54% ■ AA/AA+/AA- 7.46%

22 4 Templeton India Income Builder Account TIIBA

Portfolio As of March 31, 2004 Company Name Rating Market Value % of Company Name Rating Market Value % of Rs. Lakhs Assets Rs. Lakhs Assets Fund Category Reliance Industries * AAA 9830.15 7.40 Indian Railways Financial Corporation AAA 1880.83 1.42 HDFC * AAA 8772.85 6.60

Power Grid Corporation AAA 1665.07 1.25 # * AAA 4258.46 3.21

Loan Securitisation Trust - Total PSU/PFI Bonds 32188.98 24.23 Bajaj Auto PTC AAA (SO) 3669.78 2.76 GOI 09.39% 2011 * SOV 18095.35 13.62 Investment Style ICICI Bank AAA 2451.01 1.85 The fund manager strives to deliver GOI 07.40% 2012 * SOV 10711.74 8.06 superior risk-adjusted returns by Hongkong Bank N.R 1178.19 0.89 actively managing a portfolio of high quality fixed income securities. GOI 06.85% 2012 * SOV 7898.75 5.95 Bharti Mobile AAA (SO) 1176.20 0.89 Investment objective Seeks to provide regular returns to PFSL - Tata Motors PTC AAA (SO) 1025.20 0.77 GOI 07.46% 2017 * SOV 4831.65 3.64 investors primarily through investments in quality fixed income instruments Reliance Industries - PTC AAA (SO) 860.57 0.65 GOI 07.49% 2017 SOV 2671.43 2.01 Date of Allotment June 23, 1997 The Lakshmi Vilas Bank N.R 425.89 0.32 GOI 06.25% 2018 SOV 2145.00 1.61 Fund Manager Rahul Goswami Total Corporate Debt 33648.30 25.33 GOI 08.07% 2017 SOV 1741.18 1.31 Latest NAV Neyveli Lignite Corporation * AAA 8616.53 6.49 Growth Plan Rs. 23.4744 GOI 06.35% 2020 SOV 1602.75 1.21 Dividend Plan Rs. 10.7531 Monthly Plan Rs. 14.9597 IDBI * AA+ 8130.60 6.12 Quarterly Plan Rs. 14.7854 GOI 12.25% 2008 SOV 647.15 0.49 Half-yearly Plan Rs. 14.8006 Nuclear Power Corporation * AAA 4548.15 3.42 Bonus Rs. 20.0751 Total Gilts 50345.00 37.90 Fund Size Rs. 1328.45 crores IDFC AAA 2695.25 2.03 Maturity & Yield Power Finance Corporation AAA 2653.75 2.00 Call, Cash & Other Assets 16662.28 12.54 Avg Maturity YTM Bond 4.15 years 5.72% Hudco AA- 1998.80 1.50 Net Assets 132844.56 100.00 Fund 5.53 years 5.01%* * Pre fund expenses # Including erstwhile Indo Gulf Corporation’s debentures * Top 10 holdings N.R. Non Rated Modified Duration 4.01 years Portfolio Composition and Performance

Expense Ratio Fund Manager’s Commentary Composition by Assets 1.64% We have decreased the maturity period of the scheme Minimum Investment/Multiples for New Investors to 5.53 years from 6.88 years during the quarter, as we NAV Performance Plan A Rs.40,000/1000 (MD & QD) reduced exposure to gilts (down to 37.90% from 53.93%). Rs.20,000/1000 On the other hand, the exposure to corporate debt has (HD, AD, BP & GP) increased to 25.33% as spreads turned attractive in the Plan B Rs.25,000/1000 (MD & QD) segment. We added debentures of Nuclear Power Corp. Rs.10,000/1000 (HD, AD, BP & GP) Additional Investment/Multiples for NAV Performance Existing Investors ■ Corporate Debt 25.33% Rs. 1000/1000 (for all plans) Last Last Last Last Since 3 months 1 year 3 years* 5 years* inception* ■ PSU/PFI Bonds 24.23% Load Structure ■ Gilts 37.90% TIIBA (G) 0.99% 9.94% 13.49% 13.06% 13.42% Entry Load Plan A & Plan B: NIL ■ Call, Cash & Other Assets 12.54% Exit Load TIIBA (D) 0.99% 9.94% 13.46% 13.02% 13.40% Plan A Plan B NIL Rs.10 lakhs & Crisil Composite below - 0.5%, if redeemed Bond Fund Index 0.92% 8.83% N.A N.A N.A NAV Movement (since inception) within 6 months of allotment Past performance may or may not be sustained in future. Above Rs.10 lakhs - 0.25%, *Compounded and annualised Dividends declared assumed to be reinvested if redeemed within 3 months of allotment Composition by Rating MD- Monthly Dividend Plan, QD- Quarterly Dividend Plan, HD- Half-yearly Dividend Plan, AD- Annual Dividend Plan, BP- Bonus Plan, GP- Growth Plan.

■ AAA/P1+/SOV 91.17% ■ AA/AA+/AA- 7.63% ■ N.R. 1.21%

23 4 Templeton India Income Builder Account - Institutional Plan TIIBA

Portfolio As of March 31, 2004 Company Name Rating Market Value (Rs. Lakhs) % of Assets Fund Category Reliance Industries * AAA 2682.41 6.14 Tata Power * AA+ 1962.36 4.49 LIC Housing Finance AAA 1002.60 2.30 ACC LAA 539.00 1.23 Hindalco Industries# MAAA 503.80 1.15 BHPC - Tata Motors PTC AAA (SO) 487.58 1.12 Total Corporate Debt 7177.75 16.43 Investment Style The fund manager strives to deliver IDBI * AA+ 2103.55 4.82 superior risk-adjusted returns by Nuclear Power Corporation * AAA 2021.40 4.63 actively managing a portfolio of high quality fixed income securities. Neyveli Lignite Corporation * AAA 1636.05 3.75 BPCL AAA 1091.30 2.50 Investment objective Total PSU/PFI Bonds 6852.30 15.69 Seeks to provide regular returns to investors primarily through GOI 06.85% 2012 * SOV 7298.00 16.71 investments in quality fixed income instruments GOI 09.39% 2011 * SOV 6683.30 15.30 GOI 08.07% 2017 * SOV 5721.02 13.10 Date of Allotment GOI 07.46% 2017 * SOV 3936.90 9.01 September 23, 2002 GOI 07.49% 2017 * SOV 2077.78 4.76 Fund Manager GOI 06.35% 2020 SOV 587.67 1.35 Rahul Goswami GOI 07.40% 2012 SOV 575.90 1.32 Latest NAV GOI 06.25% 2018 SOV 536.25 1.23 Growth Plan Rs. 11.9429 GOI 07.55% 2010 SOV 113.83 0.26 Dividend Plan Rs. 10.5351 Total Gilts 27530.65 63.03 Fund Size Call, Cash & Other Assets 2119.75 4.85 Rs. 436.80 crores Net Assets 43680.45 100.00

Maturity & Yield # Including erstwhile Indo Gulf Corporation’s debentures * Top 10 holdings

Avg Maturity YTM Portfolio Composition and Performance Bond 3.92 years 5.70% Fund 7.72 years 5.14%* * Pre fund expenses Fund Manager’s Commentary NAV Performance

Modified duration We have decreased the maturity period of the scheme Last Last Last Since 3 months 6 months 1 year inception* 5.45 years toNA 7.72V P yearserformance from 8.08 years during the quarter. The gilt TIIBA - I Plan 1.30% 2.26% 11.27% 12.39% allocation of the scheme has come down and the allocation Expense Ratio Crisil Composite to corporate and PSU papers has been increased. Bond Fund Index 0.92% 1.96% 8.83% 9.42% 1.00% Past performance may or may not be sustained in future. Minimum Investment/Multiples for *Compounded and annualised New Investors Rs. 1 crore/1000

Additional Investment/Multiples for Existing Investors Composition by Rating Ageing Analysis Rs. 25 lakhs/1000

Load Structure Entry Load NIL Exit Load NIL

■ > 8 years 34.54% ■ < 6 months 4.70% ■ AAA/P1+/SOV 89.46% ■ AA/AA+/AA- 10.54% ■ 3 years - 8 years 39.93% 6 months - 1 year 0.00% ■ 1 year - 3 years 20.83%

24 Templeton Monthly Income Plan @ 4 An open end income scheme. Income is not assured, and is subject to the availability of distributable surplus TMIP

Portfolio - Monthly & Quarterly Dividend Plan Pure Debt Portfolio As of March 31, 2004 Company Name Rating Market Value (Rs. Lakhs) % of Assets Fund Category Bharti Televentures – PTC * A1+ (SO) 1726.89 13.01

ICICI Bank * AAA 760.97 5.73

Reliance Industries * AAA 759.49 5.72

Basf India * AAA 514.05 3.87

Tata Chemicals * AA 507.85 3.83

Panatone Finvest AAA (SO) 507.35 3.82

Investment Style Oscar Investments LAA (SO) 505.85 3.81 The fund manager maintains a pure debt portfolio and strives to earn Citicorp Finance Fleet Trust - PTC AAA (SO) 487.51 3.67 steady returns in the fixed income Loan Receivable Trust - IPCL AA (SO) 290.96 2.19 market by actively managing the funds portfolio on interest rate Citifinancial Retail Services AAA 254.41 1.92 movements and credit risks JUS Trust PTC - Jet Airways AAA (SO) 242.28 1.82 Investment Objective Total Corporate Debt 6557.61 49.39 Seeks to earn regular income through investment in fixed income securities GOI 09.39% 2011 * SOV 945.75 7.12

Date of Allotment GOI 11.30% 2010 * SOV 668.70 5.04 February 7, 2000 GOI 07.49% 2017 * SOV 593.65 4.47

Fund Manager GOI 07.40% 2012 * SOV 575.90 4.34 R. Sukumar/Chellappa & Total Gilts 2784.00 20.97 Rahul Goswami Nuclear Power Corporation * AAA 548.50 4.13 Latest NAV Monthly Plan Rs. 10.2728 SBI AAA 122.42 0.92 Quarterly Plan Rs. 10.1558 Power Grid Corporation AAA 58.60 0.44 Fund Size Total PSU/PFI Bonds 729.52 5.50 Rs. 132.76 crores Call, Cash and Other Assets 3204.91 24.14 Maturity & Yield Net Assets 13276.04 100.00 Average Yield to Maturity Maturity * Top 10 holdings Bond 1.76 years 5.97% Portfolio Composition and Performance Fund 3.02 years 5.67%* * Pre-fund expenses Fund Manager’s Commentary Composition by Assets Modified Duration The maturity period of the fund was at 3.02 years 2.08 years compared to 3.08 years during the last quarter. Given the improving market conditions, the maturity period was Expense Ratio increased in the month of March. We added GOI 7.40% 1.90% 2012 and GOI 7.49% 2012 to the gilt portfolio, and the Minimum Investment/Multiples for debentures of Citifinancial Retail Services. New Investors Rs.25000/1000 NAV Performance Last Last Last Since ■ Corporate Debt 49.39% Additional Investment/Multiples for 3 months 1 year 3 years* inception* Existing Investors ■ Gilts 20.97% Rs.5000/1000 TMIP - Monthly 0.91% 6.36% 9.36% 9.48% ■ PSU/PFI Bonds 5.50% TMIP - Quarterly 0.91% 6.34% 9.43% 9.53% ■ Call, Cash & Other Assets 24.14% Load Structure Entry Load NIL Crisil MIP Blended Index 0.62% 18.56% N.A N.A CDSC Rs.10 lakhs & Past performance may or may not be sustained in future. below - 0.5%, *Compounded and annualised Dividends declared assumed to be reinvested Composition by Rating if redeemed within 6 months of allotment NAV Movement (since inception) Above Rs.10 lakhs - Quarterly Dividend Plan 0.25%, if redeemed within 3 months of allotment

■ AAA/P1+/PR1+/A1+/SOV 90.17% ■ AA/AA+/AA- 9.83% Dividends assumed reinvested at ex-dividend NAV

25 Templeton Monthly Income Plan @ 4 An open end income scheme. Income is not assured, and is subject to the availability of distributable surplus TMIP

Portfolio - Half-Yearly Dividend & Growth Plan Marginal Equity Allocation As of March 31, 2004 Company Name Market Value % of Company Name Rating Market Value % of Rs. Lakhs Assets Rs. Lakhs Assets Fund Category Equity holdings Debt holdings HPCL 573.59 1.34 Reliance Industries * AAA 3612.80 8.41 HDFC * AAA 3024.30 7.04 SBI 454.88 1.06 Bharti Televentures - PTC * A1+ (SO) 2110.64 4.91 Maruti Udyog 454.21 1.06 Citicorp Finance Fleet Trust - PTC * AAA (SO) 1363.19 3.17 Satyam Computer 443.77 1.03 Hindalco Industries # * AAA 1032.23 2.40 M&M Financial Services AA 1013.20 2.36 Britannia 362.48 0.84 Citibank - SME Revolving Trust AAA (SO) 1000.00 2.33 ONGC 344.84 0.80 Indian Rayon AAA 549.40 1.28 Bharat Electronics 299.11 0.70 SBI Capital Markets LAAA 531.25 1.24 Investment Stzyle Tata Chemicals AA 507.85 1.18 Thermax 287.15 0.67 The fund managers strive to earn Panatone Finvest AAA (SO) 507.35 1.18 steady returns in the fixed income Grasim 286.08 0.67 Oscar Investments LAA (SO) 505.85 1.18 market by actively managing the Corporation Bank 274.60 0.64 Loan Receivable Trust - IPCL AA (SO) 387.94 0.90 funds portfolio on interest rate HDFC Bank AAA 296.10 0.69 movements and credit risks, and MICO 270.58 0.63 JUS Trust PTC - Jet Airways AAA (SO) 242.28 0.56 seeks to enhance overall portfolio Hero Honda 269.75 0.63 PFSL PTC - Citibank AAA (SO) 159.98 0.37 returns with a marginal equity Hindalco 265.61 0.62 GESCO Corporation AAA 103.79 0.24 allocation Total Corporate Debt 16948.15 39.46 MTNL 256.40 0.60 IDBI * AA+ 2786.72 6.49 Investment Objective BHEL 227.16 0.53 Nuclear Power Corporation * AAA 1097.00 2.55 Seeks to earn regular income through Nestle 217.64 0.51 SBI AAA 526.41 1.23 investment in fixed income securities Indian Railways Financial L&T 195.28 0.45 Corporation AAA 510.30 1.19 Date of Allotment UTI Bank 168.61 0.39 Indian Oil Corporation - PTC AAA (SO) 508.97 1.18 February 7, 2000 ITC 156.21 0.36 NALCO AAA 27.23 0.06 Power Grid Corporation AAA 146.50 0.34 Fund Manager Exide 153.75 0.36 Total PSU/PFI Bonds 5603.13 13.05 R. Sukumar/Chellappa & Reliance Industries 93.62 0.22 GOI 6.00% UTI Special Rahul Goswami Bonds 2010 * SOV 4152.40 9.67 GSK Consumer Healthcare 88.52 0.21 GOI 09.39% 2011 * SOV 3215.55 7.49 Latest NAV GAIL 87.12 0.20 GOI 11.30% 2010 * SOV 1337.40 3.11 Growth Plan Rs. 15.8514 Concor 23.26 0.05 GOI 07.55% 2010 SOV 341.49 0.80 Half-Yearly Plan Rs. 11.3899 GOI 06.85% 2012 SOV 100.13 0.23 Biocon 11.50 0.03 Fund Size Total Gilts 9146.97 21.30 Punjab Tractors 2.19 0.01 Call, Cash and Other Assets 4985.64 11.61 Rs. 429.52 crores Total equity holdings 6267.88 14.59 Net Assets 42951.77 100.00 Maturity & Yield** # Including erstwhile Indo Gulf Corporation’s debentures * Top 10 holdings Avg Maturity YTM Portfolio Composition and Performance Bond 2.31 years 5.74% Fund 3.12 years 5.48%* Fund Manager’s Commentary Composition by Assets * Pre-fund expenses The equity allocation of the portfolio was at 14.59%, Modified Duration** while the allocation to current assets stood at 11.61% at the 2.50 years endNA ofV thePerformance quarter as the scheme witnessed fresh inflows. On ** based on debt portfolios only the equity side, the main additions were Corporation Bank Expense Ratio & Exide and on the debt side we added debentures of GESCO , pass through certificates of Citibank and IRFC. 1.90% Minimum Investment/Multiples for New Investors NAV Performance ■ Corporate Debt 39.46% Last Last Last Since Rs.10000/1000 ■ Equity 14.59% 3 months 1 year 3 years* inception* Additional Investment/Multiples for ■ Gilts 21.30% TMIP - Growth 1.31% 19.40% 13.48% 11.75% Existing Investors ■ PSU/PFI Bonds 13.05% TMIP - Halfyearly 1.31% 19.34% 13.70% 11.61% Rs.1000/1000 ■ Call, Cash & Other Assets 11.61% Crisil MIP Blended Index 0.62% 18.56% N.A N.A Load Structure Past performance may or may not be sustained in future. Entry Load NIL *Compounded and annualised Dividends declared assumed to be reinvested CDSC Rs.10 lakhs & Composition by Rating - Debt Portfolio below - 0.5%, NAV Movement (since inception) if redeemed within 6 months of allotment Growth Plan Above Rs.10 lakhs - 0.25%, if redeemed within 3 months of allotment

■ AAA/P1+/PR1+/A1+/SOV 85.82% ■ AA/AA+/AA- 14.18%

26 FT India Monthly Income Plan @ 4 An open end income scheme. Income is not assured, and is subject to the availability of distributable surplus FTIMIP

Portfolio As of March 31, 2004 Company Name No. of Market Value % of Company Name Rating Market Value % of Shares Rs. Lakhs Assets Rs. Lakhs Assets Fund Category Equity holdings Indian Retail - PTC AAA (SO) 2511.92 1.58 HPCL 431053 2188.03 1.37 Bharti Televentures - PTC A1+ (SO) 1924.20 1.21 SBI 353100 2138.73 1.34 Citicorp Finance Fleet Trust - Satyam Computer 680804 1998.16 1.25 PTC (Series A1) AAA (SO) 1754.24 1.10 Maruti Udyog 348712 1732.92 1.09 Citicorp Maruti Finance P1+ 1499.85 0.94 Hero Honda 348271 1708.10 1.07 JUS Trust Jet Airways - PTC AAA (SO) 1453.65 0.91 Infosys 30000 1481.44 0.93 IPCL - PTC AA 1211.87 0.76 Britannia 227811 1423.70 0.89 GE Capital Transportation BHEL 220125 1330.66 0.84 Financial Services - PTC AAA (SO) 1111.22 0.70 ONGC 157380 1322.70 0.83 TISCO AAA 1101.50 0.69 Bharat Electronics 248624 1237.53 0.78 M&M Financial Services - PTC AAA (SO) 1063.88 0.67 Investment Style Corporation Bank 415000 1162.83 0.73 PFSL - Cholamandalam PTC MAAA (SO) 1008.98 0.63 Grasim 99500 1064.10 0.67 Mumbai Auto Receivables The fund manager strives to earn regular ITC 102000 1062.23 0.67 Trust - PTC AAA 896.61 0.56 income (with no assured returns) in the fixed Nestle 135920 859.69 0.54 Ford India AA- (SO) 504.95 0.32 income market by actively managing the funds MICO 5410 728.28 0.46 Citicorp Finance Fleet Trust - portfolio on interest rate movements and Thermax 183651 684.38 0.43 PTC (Series A2) AAA (SO) 489.22 0.31 credit risks, while seeking to enhance the Exide 507931 653.20 0.41 LIC Housing Finance - PTC AAA (SO) 470.68 0.30 returns with a marginal equity allocation. MTNL 500000 641.00 0.40 Sterlite Industries AA- 101.83 0.06 Hindalco 48025 584.54 0.37 Hongkong Bank N.R 65.45 0.04 Investment objective Wockhardt 71334 568.64 0.36 PFSL PTC - Orix AAA (SO) 0.72 0.00 UTI Bank 369520 542.27 0.34 Seeks to provide regular income through a Total Corporate Debt 43656.81 27.41 EServe 90116 545.70 0.34 IDBI * AA+ 14440.08 9.07 portfolio of predominantly high quality fixed Kotak Mahindra Bank 114194 461.46 0.29 Indian Railways Financial income securities with a maximum exposure Indian Rayon 227626 430.10 0.27 Corporation * AAA 6484.70 4.07 of 20% to equities. Smithkline Consumer 173964 430.65 0.27 IDFC * AAA 4524.30 2.84 L&T 69500 399.17 0.25 SBI AAA 1114.50 0.70 Date of Allotment Siemens 39370 386.12 0.24 Neyveli Lignite Corporation AAA 1090.70 0.68 Mphasis BFL 65357 355.08 0.22 September 28, 2000 Nuclear Power Corporation AAA 1010.70 0.63 Asian Paints 84336 256.21 0.16 Power Grid Corporation AAA 341.85 0.21 Fund Manager ACC 50000 127.28 0.08 Indian Oil Corporation - PTC AAA 204.41 0.13 Crompton Greaves 63805 98.29 0.06 Total PSU/PFI Bonds 29211.24 18.34 R. Sukumar/Chellappa & Rahul Goswami Biocon 18050 56.86 0.04 Total equity holdings 28660.05 17.99 GOI 07.46% 2017 * SOV 4056.20 2.55 Latest NAV GOI 11.30% 2010 * SOV 3943.99 2.48 Debt holdings Rating Market Value % of Growth Plan Rs. 15.8785 GOI 07.40% 2012 * SOV 2533.96 1.59 Rs. Lakhs Assets Monthly Plan Rs. 11.5571 GOI 08.07% 2017 SOV 1865.55 1.17 Quarterly Plan Rs. 11.5462 Reliance Industries * AAA 13471.45 8.46 GOI 09.39% 2011 SOV 1733.88 1.09 Bonus Rs. 13.5899 ICICI Bank * AAA 4314.65 2.71 GOI 07.55% 2010 SOV 569.15 0.36 Citicorp Finance Fleet GOI 06.85% 2012 SOV 556.25 0.35 Fund Size Rs. 1592.74 crores Trust - PTC (Series A3) * AAA (SO) 3642.94 2.29 Total Gilts 15258.98 9.58 Panatone Finvest * AAA (SO) 2536.75 1.59 Call, Cash & Other Assets 42486.52 26.68 Modified Duration# HDFC AAA 2520.25 1.58 Net Assets 159273.60 100.00

2.01 years # based on debt portfolios only N.R. Non Rated * Top 10 holdings Expense Ratio 1.95% Portfolio Composition and Performance Minimum Investment/Multiples for New Investors Plan A Rs.40,000/1000 (MD&QD) Fund Manager’s Commentary NAV Performance Rs.20,000/1000 (BP & GP) Plan B Rs.25,000/1000 (MD & QD) The scheme continued to witness inflows, as a result of Last Last Last Since Rs.10,000/1000 (BP & GP) which the cash exposure stood at 26.68% pending 3 months 1 year 3 years* inception* Additional Investment/Multiples for Existing deployment.NAV Performance Cash includes money invested in bank fixed FTIMIP 1.10% 19.85% 14.32% 14.09% Investors deposits pending final deployment. The equity allocation Crisil MIP Rs. 1000/1000 (for all plans) was at around 18% and the main additions were Infosys, Blended Index 0.62% 18.56% N.A N.A BHEL and ONGC. On the debt side, the main additions Load Structure were Indian Retail, IRFC and GOI 7.46% 2017. Entry Load Past performance may or may not be sustained in future. Plan A Plan B *Compounded and annualised NIL Above Rs.10 lakhs - 0.5%, NAV Movement (since inception) Upto Rs.10 lakhs - NIL Exit Load Plan A Plan B NIL Rs.10 lakhs & Composition by Rating - Debt Portfolio below - 1.00%*, if redeemed within 1 year of allotment Above Rs.10 lakhs - NIL * w.e.f. January 1, 2004 MD- Monthly Dividend Plan, QD- Quarterly Dividend Plan, BP- Bonus Plan, GP- Growth Plan.

Average maturity# Yield to maturity# ■ AAA/P1+/SOV 87.50% Bond 2.49 years 5.80% ■ AA/AA+/AA- 12.45% Fund 2.31 years 5.24%* ■ N.R. 0.05%

# based on debt portfolios only * Pre fund expenses

27 4 Templeton India Government Securities Fund TGSF

Portfolio - TGSF As of March 31, 2004 Company Name Rating Market Value (Rs.Lakhs) % of Assets Fund Category GOI 07.49% 2017 SOV 12466.65 22.36

GOI 06.25% 2018 SOV 11261.25 20.20

GOI 07.46% 2017 SOV 11035.25 19.79

GOI 08.07% 2017 SOV 10758.01 19.30

GOI 06.35% 2020 SOV 4594.55 8.24 Investment Style The Fund Managers strive to enhance GOI 06.05% 2019 SOV 2620.00 4.70 portfolio returns by actively managing the portfolio duration and GOI 07.40% 2012 SOV 1727.70 3.10 market volatility Total Gilts 54463.41 97.69 Investment Objective Seeks to generate credit risk-free Call, Cash and Other Assets 1286.40 2.31 return through investments in sovereign secutiries Net Assets 55749.80 100.00 Date of Allotment TGSF June 21, 1999 Portfolio - TGSF (Treasury Plan) TGSF (TP) February 11, 2002 Fund Manager: Sameer Kulkarni Company Name Rating Market Value (Rs.Lakhs) % of Assets Latest NAV TGSF GOI 09.39% 2011 SOV 1261.00 59.99 Growth Plan Rs. 22.6005 GOI 11.98% 2004 SOV 258.03 12.28 Dividend Plan Rs. 11.6781 Total Gilts 1519.03 72.26 TGSF (TP) Growth Plan Rs. 12.1661 364 days Treasury Bills SOV 82.76 3.94 Dividend Plan Rs. 10.6312 Money Market Instruments 82.76 3.94 Fund Size Call, Cash and Other Assets 500.24 23.80 Net Assets 2102.03 100.00 TGSF Rs. 557.50 crores TGSF (TP) Rs. 21.02 crores Modified Duration TGSF 8.54 years Portfolio Composition and Performance TGSF-TP 3.32 years Expense Ratio Fund Manager’s Commentary NAV Movement - TGSF (since inception) TGSF 1.25% TGSF-TP 1.13% (Apr to Mar 2004) The maturity period of the scheme has decreased to 0.90% (Nov. 24, 2003 onwards) 13.09 years from 13.56 years as we reduced exposure Minimum Investment for New / to long-dated securities. The maturity period of the Existing Investors Treasury Plan increased to 4.42 years from 4.38 years TGSF Rs.10,000/1000 (G) during the quarter. Rs.25,000/1000 (D) TGSF (TP) Rs.1 lakh /1000 Additional Investment/multiples for Existing Investors NAV Performance TGSF Rs.1000/1000 (for all plans) Last Last Last Since TGSF (TP) Rs. 1 lakh /1000 3 months 1 year 3 year* inception* Load Structure TGSF (G) 1.69% 13.49% 19.90% 18.60% TGSF (TP) TGSF TGSF (D) 1.69% 13.46% 19.27% 17.96% Entry Load NIL NIL I-Sec Composite Index 1.54% 12.03% N.A N.A Exit Load NIL Rs.10 lakhs & TGSF - TP (G) 1.00% 7.19% N.A 9.62% below - 0.5%, if TGSF - TP (D) 1.00% 7.16% N.A 9.67% redemption is NAV Movement-TGSF (TP) (since inception) made within I-Sec Si-BEX 1.41% 7.85% N.A N.A 6 months of Past performance may or may not be sustained in future. allotment *Compounded and annualised Dividends declared assumed to be reinvested Above Rs.10 lakhs - Nil Average maturity Yield to maturity

TGSF G-Sec 13.40 years 5.46% Fund 13.09 years 5.36%* TGSF-TP G-Sec 6.10 years 4.94% Fund 4.42 years 4.10%* * Pre fund expenses

28 4 FT India Gilt Fund FTIGF

Portfolio As of March 31, 2004 Company Name Rating Market Value (Rs. Lakhs) % of Assets Fund Category Investment Plan GOI 07.46% 2017 SOV 2982.50 28.91 GOI 08.07% 2017 SOV 2922.70 28.33 GOI 06.25% 2018 SOV 2681.25 25.99 GOI 07.49% 2017 SOV 1187.30 11.51 GOI 06.35% 2020 SOV 160.28 1.55 Total Gilts 9934.03 96.30 Call, Cash & Other Assets 381.18 3.70 Investment Style The fund manager strives to enhance Net Assets 10315.21 100.00 portfolio returns by actively managing the portfolio duration and market volatility Company Name Rating Market Value (Rs. Lakhs) % of Assets Investment objective Seeks to provide steady returns by Liquid Plan investing in securities issued by the Central/State Government and/or 364 Days Treasury Bills SOV 194.02 60.89 securities unconditionally guaranteed Money Market Instruments 194.02 60.89 by the Central/State Government for repayment of principal and interest. Call, Cash & Other Assets 124.63 39.11

Date of Allotment Net Assets 318.65 100.00 December 7, 2001

Fund Manager Sameer Kulkarni

Latest NAV Investment Plan Growth Plan Rs. 14.9452 Quarterly Plan Rs. 11.6857 Bonus Rs. 12.9405 Liquid Plan Growth Plan Rs. 11.7309 Monthly Plan Rs. 10.2102

Fund Size Investment Plan Rs.103.15 crores Portfolio Composition and Performance Liquid Plan Rs.3.19 crores

Modified Duration Fund Manager’s Commentary NAV Movement - Investment Plan (since Inception) Investment Plan 8.41 years Liquid Plan 0.32 years The maturity period of the investment plan decreased to 12.82 years from 13.48 years at the end of the last quarter. Expense Ratio WNAe Vadded Performance GOI 6.25% 2018 to the Investment Plan’s Investment Plan1.25% Liquid Plan 0.95% (Apr to Mar 2004) portfolio. The portfolio of Liquid Plan was largely invested in 0.90% (Nov. 24, 2003 treasury bills at the end of the quarter and the maturity onwards) period was 0.35 years.

Minimum Investment/Multiples for New Investors NAV Performance Investment Plan & Last Last Last Since Liquid Plan - 3 months 6 months 1 year inception* Growth/Bonus Rs.10,000/1000 Investment Plan - Investment Plan 2.54% 4.99% 18.45% 18.95% Quarterly Dividend Liquid Plan 0.88% 1.86% 5.26% 7.14% & Liquid Plan - Monthly Dividend Rs.25,000/1000 I Sec Libex 1.66% 2.87% 14.98% N.A

Additional Investment/Multiples for Past performance may or may not be sustained in future. *Compounded and annualised Existing Investors NAV Movement - Liquid Plan (since Inception) Rs.1000/1000 (for all plans) Investment Plan Load Structure Entry Load NIL Average maturity Yield to maturity Exit Load NIL Govt. Securities 13.31 years 5.44% Investment Plan 12.82 years 5.49%*

Liquid Plan

Average maturity Yield to maturity Liquid Plan 0.35 years 4.49%*

* Pre fund expenses

29 4 Templeton Floating Rate Income Fund TFIF

Portfolio As of March 31, 2004 Company Name Rating Market Value % of Company Name Rating Market Value % of Rs. Lakhs Assets Rs. Lakhs Assets Fund Category Long Term PFSL PTC - Ashok Leyland Finance AAA (SO) 585.31 0.46 GE Capital Services @ AAA 2000.00 9.71 Rabo India Finance P1+ 500.05 0.39 Reliance Industries @ AAA 1500.00 7.28 MMFSL VE Trust - PTC AAA (SO) 424.60 0.34 Bharti Televentures - PTC @ A1+ (SO) 1129.36 5.48 Kotak Mahindra Bank - PTC AAA (SO) 380.50 0.30 M&M Financial Services - PTC @ AAA (SO) 1046.83 5.08 BOOTS PIRAMAL N.R 350.00 0.28 Citicorp Finance - PTC @ AAA (SO) 583.90 2.83 Citicorp Finance - PTC AAA (SO) 291.95 0.23 Fleet Trust PTC (Series A6) @ AAA (SO) 523.10 2.54 Total Corporate Debt 22761.89 17.97 Tata Motors AA 500.00 2.43 IDBI * AA+ 12426.44 9.81 PFSL PTC - Ashok Leyland Finance AAA (SO) 257.25 1.25 Total PSU/PFI Bonds 12426.44 9.81 Investment Style Madras Cements AA- 217.70 1.06 HUDCO * PR1+ 6500.00 5.13 The primary objective of the scheme Cholamandalam Investment & Kotak Mahindra Bank AAA 1500.00 1.18 is to provide income consistent with Finance Corporation - PTC MAAA (SO) 212.20 1.03 the prudent risk from a portfolio Citifinancial Retail Services AAA 1500.00 1.18 PFSL PTC- Citibank NA AAA (SO) 207.95 1.01 comprising primarily of floating rate IDBI AA+ 1000.00 0.79 debt instruments Total Corporate Debt 8178.29 39.70 Sundaram Finance P1+ 1000.00 0.79 IDBI @ AA+ 1001.70 4.86 Investment Objective Kotak Mahindra Primus P1+ 1000.00 0.79 Total PSU/PFI Bonds 1001.70 4.86 The fund managers strive to Rabo India Finance P1+ 1000.00 0.79 Citicorp Finance @ AAA 1200.00 5.83 minimise the risk arising from L&T AA+ 1000.00 0.79 interest rate fluctuations Kotak Mahindra Bank @ AAA 1000.00 4.85 Citicorp Maruti Finance @ AAA 500.00 2.43 Kotak Mahindra Primus MAA+ 1000.00 0.79 Date of Allotment Citifinancial Retail Services @ MAAA 500.00 2.43 Fleet Trust PTC (Series A2) AAA (SO) 939.82 0.74 February 11, 2002 Citifinancial Retail Services @ AAA 500.00 2.43 Fleet Trust PTC (Series A1) AAA (SO) 921.89 0.73 Fund Manager Total Mibor Linked Instruments 3700.00 17.96 Citicorp Maruti Finance AAA 500.00 0.39 Short term : Nilesh Shah Call,Cash and Other Assets 7718.79 37.47 Total Mibor Linked Instruments 17861.71 14.10 HDFC * P1+ 3901.40 3.08 Long term : Rahul Goswami Net Assets 20598.78 100.00 Short Term Kotak Mahindra Bank * P1+ 1964.72 1.55 Latest NAV Indian Retail ABS Trust * AAA (SO) 5865.47 4.63 ICICI Bank * PR1+ 1930.06 1.52 Short-Term Reliance Industries * AAA 4350.55 3.44 UTI Bank A1+ 991.56 0.78 Growth Plan Rs. 11.4060 HDFC * P1+ 2529.25 2.00 ICICI Bank A1+ 983.57 0.78 Dividend Plan Rs. 10.0069 Kotak Mahindra Primus * P1+ 2435.00 1.92 IDBI P1+ 982.45 0.78 Long-Term Fleet Trust PTC (Series A6) * AAA (SO) 1569.29 1.24 IDBI Home Finance A1+ 964.21 0.76 Growth Plan Rs. 11.4327 GE Capital Services P1+ 1500.00 1.18 Total Money Market Instruments 11717.97 9.25 Dividend Plan Rs. 10.1392 GE Countrywide P1+ 1000.70 0.79 Call, Cash and Other Assets 61884.94 48.86 Fund Size Bharti Televentures A1+(SO) 979.22 0.77 Net Assets 126652.94 100.00 Short-Term Rs. 1266.53 crores @ Top 10 holdings # Including erstwhile Indo Gulf Corporation’s debentures * Top 10 holdings Long-Term Rs. 205.99 crores Portfolio Composition and Performance Expense Ratio Short-Term 1.00% Long-Term 1.42% (Apr to Mar 2004) Fund Manager’s Commentary NAV Movement - TFIF (since inception) 1.25% (Nov. 24, 2003 The maturity period for the long-term plan decreased to onwards) Short-Term 0.98 years from 1.14 years and that of the short-term plan Minimum Investment/Multiples for New Investors decrNAeasedV Performance marginally to 0.58 years during the quarter. The cash position in both the plans was high due to continued Short-Term Rs.1 lakh/1000 Long-Term Rs.10,000/1000 inflows. The corporate bond allocation decreased in both the long-term plan (39.70%) and the short-term plan Additional Investment/Multiples for (17.97%). Existing Investors Short-Term Rs.1 lakh/1000 NAV Performance Long-Term Rs.1000/1000 Load Structure Last Last Last Last Since 1 month 3 months 6 months 1 yearinception* Short-Term Long-Term Entry Load NIL NIL Short-Term Plan 0.42% 1.12% 2.35% 5.29% 6.28% Exit Load NIL Rs.10 lakhs & Long-Term Plan 0.47% 1.21% 2.47% 5.45% 6.40% below - 0.5%, if redeemed Crisil Liquid Fund Index 0.36% 0.99% 1.98% 4.35% N.A within 6 months Past performance may or may not be sustained in future. of allotment NAV Movement - TFIF (since inception) Above *Compounded and annualised Rs.10 lakhs - * 0.25%, if Modified Duration Yield to Maturity Long-Term redeemed within 30 day Short-Term Plan 0.51 years 5.55% of allotment w.e.f. March 1, 2004 Long-Term Plan 0.87 years 5.73%

* Pre-fund expenses Average Maturity

Bond Fund Short-Term Plan 1.27 years 0.58 years Long-Term Plan 1.57 years 0.98 years

30 4 Templeton India Short-Term Income Plan TISTIP

Portfolio As of March 31, 2004 Company Name Rating Market Value % of Company Name Rating Market Value % of Rs. Lakhs Assets Rs. Lakhs Assets Fund Category Reliance Industries * AAA 5361.20 7.84 Citicorp Maruti Finance LAAA 1005.40 1.47

Hindalco Industries *# AAA 4362.50 6.38 M&M Financial Services P1+ 1001.00 1.46

M&M Financial Services * AA 3073.70 4.49 Mumbai Auto Receivables Trust - PTC AAA (SO) 550.51 0.80 Panatone Finvest * AAA (SO) 3051.00 4.46 GE Capital Transportation LIC Housing Finance - PTC * AAA (SO) 2517.50 3.68 Financial Services - PTC MAAA (SO) 224.74 0.33 Investment Style Indian Retail - PTC * AAA (SO) 2511.92 3.67 Total Corporate Debt 43445.04 63.49 The fund manager strives to provide a steady stream of income while ICICI Bank * AAA 2229.00 3.26 Indian Railways avoiding interest rate volatility. Financial Corporation * AAA 4254.00 6.22 AAA 2166.60 3.17 Investment objective IDBI * AA+ 4166.30 6.09 Hindustan Lever AAA 2145.40 3.14 Seeks to provide stable returns by investing in shorter term fixed NTPC * AAA 2614.49 3.82 GE Capital Services P1+ 2000.00 2.92 income securities. Indian Retail - PTC MAAA (SO) 1982.97 2.90 HPCL AAA 2056.51 3.01 Date of Allotment SBI AAA 1114.50 1.63 January 31, 2002 Maruti Udyog LAAA 1608.45 2.35

HDFC AAA 1515.50 2.21 Total PSU/PFI Bonds 14205.80 20.76 Fund Manager

Nilesh Shah MAAA 1513.80 2.21 GOI 11.30% 2010 SOV 1404.27 2.05

Latest NAV HDFC Bank - PTC AAA (SO) 1419.67 2.07 GOI 06.00% UTI Special Bonds 2010 SOV 519.05 0.76 Growth Plan Rs. 1167.5766 GE Capital Transportation Weekly Plan Rs. 1090.9852 Financial Services - PTC A1+SO 1168.88 1.71 Total Gilts 1923.32 2.81 Monthly Plan Rs. 1021.1029 Call, Cash & Other Assets 8849.48 12.93 Quarterly Plan Rs. 1013.2624 Sundaram Finance MAAA 1024.10 1.50 Bonus Rs. 1040.8668 Tata Industries AA 1011.20 1.48 Net Assets 68423.64 100.00 Fund Size # Including erstwhile Indo Gulf Corporation’s debentures * Top 10 holdings Rs.684.24 crores Portfolio Composition and Performance Modified Duration 1.46 years Fund Manager’s Commentary NAV Performance Last Last Last Last Since Expense Ratio The maturity period of the scheme was increased 1 month 3 months 6 months 1 year inception* to 1.68 years from 1.16 years during the last quarter. 0.90% We have increased our exposure to corporate debt TISTIP 0.75% 1.20% 2.39% 6.47% 7.42% Crisil Short-Term Minimum Investment/Muliples for and PSU bonds. We added GOI 6.00% UTI Special Bond Fund Index 0.88% 1.04% 2.09% 5.79% N.A New Investors Bonds 2010 to the gilt portfolio. Past performance may or may not be sustained in future. Rs.1 lakh /1000 *Compounded and annualised

Additional Investment/Multiples for NAV Movement (since inception) Existing Investors

Rs.1 lakh /1000 Composition by assets Load Structure

Entry Load NIL Exit Load NIL

Average maturity Yield to maturity

■ Corporate Debt 63.49% ■ PSU/PFI Bonds 20.76% Bond 1.78 years 5.57% ■ Gilts 2.81% Fund 1.68 years 5.30%* ■ Call, Cash & Other Assets 12.94%

* Pre-fund expenses

31 4 Templeton India Treasury Management Account TITMA

Portfolio As of March 31, 2004 Company Name Rating Market Value % of Company Name Rating Market Value % of Rs. Lakhs Assets Rs. Lakhs Assets Fund Category Bharti Televentures – PTC * A1+ (SO) 7438.59 3.85 IDBI AA+ 2000.00 1.03

Kotak Mahindra Primus * P1+ 5000.00 2.59 Citicorp Finance P1+ 1500.00 0.78

Reliance Industries * AAA 3610.16 1.87 Total Mibor Linked Instruments 3500.00 1.81 GE Capital Services P1+ 1500.00 0.78 HDFC * P1+ 7220.26 3.73 Ashok Leyland Finance P1+ 1499.85 0.78

Investment Style ICICI Bank * A1+ 7190.72 3.72 Indian Retail - PTC A1+ (SO) 1459.21 0.75 The fund manager strives to strike an optimum balance between steady Citicorp Maruti Finance AAA 1011.10 0.52 UTI Bank * A1+ 6691.29 3.46 income and high liquidity through a judicious mix of fixed and floating Hindalco Industries# AAA 1007.60 0.52 Kotak Mahindra Bank * P1+ 3327.44 1.72 rate debt instruments.

Investment objective TISCO AAA 503.78 0.26 Tata Sons * P1+ 2850.17 1.47

Seeks to provide current income Mumbai Auto Ashok Leyland Finance * P1+ 2411.48 1.25 along with high liquidity. Receivables Trust - PTC P1+ (SO) 424.05 0.22 Date of Allotment IDBI P1+ 2389.93 1.24 GE Capital Transportation April 29, 1998 Financial Services - PTC P1+ (SO) 407.11 0.21 Bharti Televentures P1+ 1300.05 0.67 Fund Manager PFSL - Cholamandalam PTC AAA (SO) 214.49 0.11 Cholamandalam P1+ 948.68 0.49 Nilesh Shah Tata Motors - PTC AAA (SO) 54.02 0.03 IDBI Home Finance A1+ 853.28 0.44 Latest NAV Kotak Mahindra Bank - PTC AAA (SO) 35.33 0.02 Growth Plan Rs. 1581.6061 Money Market Annual Plan Rs. 1202.2722 Instruments 35183.30 18.19 Weekly Plan Rs. 1244.7644 Total Corporate Debt 24165.29 12.49 Daily Dividend Rs. 1511.9627 Bonus Plan Rs. 1403.1722 IDBI * AA+ 2508.55 1.30 Call, Cash & Other Assets 128046.09 66.21

Fund Size Total PSU/PFI Bonds 2508.55 1.30 Net Assets 193403.23 100.00 Rs. 1934.03 crores * Top 10 holdings Maturity & Yield Portfolio Composition and Performance Avg Maturity YTM Bond 0.30 years 5.25% NAV Performance Fund 0.15 years 5.11%* Fund Manager’s Commentary Last Last Last Last Since * Pre fund expenses The maturity period of the scheme decreased to 0.15 7 days 15 days 1 month** 3 months**inception* Modified Duration years from 0.20 years at the end of the last quarter and the cash exposure has gone up to 66.21% as we have TITMA 0.09% 0.19% 4.68% 4.48% 8.04% 0.14 years deployed money in bank fixed deposits pending Crisil Liquid Fund Index 0.10% 0.15% 4.09% 3.98% N.A Expense Ratio deployment. We added debentures of Citicorp Maruti Finance and Hindalco to the portfolio. 0.75% Past performance may or may not be sustained in future. **Annualised *Compounded and annualised Minimum Investment/Multiples for New Investors

Rs.1 lakh /1000

Additional Investment/Multiples for Composition by Assets NAV Movement (since inception) Existing Investors

Rs.1 lakh /1000

Load Structure

Entry Load Nil Exit Load Nil

■ Corporate Debt 12.49% ■ PSU/PFI Bonds 1.30% ■ Mibor Linked Instruments 1.81% ■ Money Market Instruments 18.19% ■ Call, Cash & Other Assets 66.21%

32 4 Templeton India Liquid Fund TILF

Portfolio As of March 31, 2004 Company Name Rating Market Value % of Company Name Rating Market Value % of Rs. Lakhs Assets Rs. Lakhs Assets Fund Category Kotak Mahindra Investment* A1+ 2500.00 5.32 IDBI * AA+ 2000.00 4.25

Kotak Mahindra Primus * P1+ 2494.06 5.30 Sundaram Finance * P1+ 1000.00 2.13

Total Mibor GE Countrywide * P1+ 1000.53 2.13 Linked Instruments 5500.00 11.70 Investment Style The Fund Managers strive to provide optimum returns with prudent Ashok Leyland Finance P1+ 996.35 2.12 HDFC * P1+ 2910.61 6.19 exposure to money market instruments while maintaining focus on capital preservation Hindalco Industries # MAAA 503.77 1.07 Tata Industries * P1+ 2899.14 6.17 Investment Objective Seeks to provide income and liquidity through investments in high quality money market and debt instruments Bharti Televentures - PTC A1+ (SO) 497.02 1.06 Bharti Televentures * P1+ 1459.02 3.10

Date of Allotment June 17, 1998

Fund Manager Total Corporate Debt 7991.72 17.00 IPCL P1+ 976.00 2.08 Nilesh Shah

Latest NAV Total Money IDBI * AA+ 1020.20 2.17 Growth Plan Rs. 15.7157 Market Instruments 8244.76 17.53 Dividend Plan Rs. 10.0047 Daily Dividend Rs. 10.0000

Fund Size Total PSU/PFI Bonds 1020.20 2.17 Call, Cash & Other Assets 24266.59 51.61 Rs. 470.23 crores

Average Maturity HUDCO * PR1+ 2500.00 5.32 Net Assets 47023.27 100.00 Bond 0.19 years Fund 0.17 years # Including erstwhile Indo Gulf Corporation’s debenture * Top 10 holdings Portfolio Composition and Performance Yield to Maturity 4.92% (Pre-fund expenses) Fund Manager’s Commentary Composition by Assets Modified Duration 0.16 years The cash component has gone up to 51.61% as we deployedNAV Performance money in fixed deposits pending final Expense Ratio deployment. We added debentures of Indo Gulf and 1.00% MIBOR linked instruments of HUDCO to the portfolio. Minimum Investment/Multiples for New Investors Growth Plan & NAV Performance Dividend Plan Rs.25,000/1000 ■ Corporate Debt 17.00% Last Last Last Last Since ■ Mibor Linked Instruments 11.70% Daily Dividend 7 days 15 days 1 month** 3 months**inception* Reinvestment Plan Rs. 1 lakh/1000 ■ Money Market Instruments 17.53% TILF (G) 0.09% 0.18% 4.29% 4.17% 8.12% ■ Call, Cash & Other Assets 51.61% Additional Investment/Multiples for TILF (D) 0.09% 0.18% 4.27% 4.16% 7.92% ■ PSU/PFI Bonds 2.17% Existing Investors Crisil Liquid Growth Plan & Fund Index 0.10% 0.15% 4.09% 3.98% N.A Dividend Plan Rs.5000/1000 Past performance may or may not be sustained in future. Daily Dividend *Annualised **Compounded and annualised Reinvestment Plan Rs. 1 lakh/1000 Dividends declared assumed to be reinvested NAV Movement (since inception) Composition by Rating Load Structure Entry Load NIL Exit Load NIL

■ AAA/P1+/P1+(SO)/PR1+/A1+ 93.58% ■ AA/AA+/AA- 6.42%

33 Templeton India Money Market Account TIMMA

Portfolio

As of March 31, 2004 Company Name Rating Market Value (Rs.Lakhs) % of Assets Fund Category IDBI Home Finance A1+ 263.77 8.65

Money Market Instruments 263.77 8.65

Call, Cash & Other Assets 2787.30 91.35

Net Assets 3051.07 100.00 Investment Style The fund manager seeks to achieve capital Portfolio Composition and Performance preservation alongwith current income through a portfolio of money market instruments Fund Manager’s Commentary NAV Performance Investment Objective Last Last Last Last Since The exposure to cash has gone up to 91.35% Seeks to provide investors with high safety, a high 15 days 1 month** 3 months** 1 year** inception* degree of liquidity and current income through due to inflows pending deployment. investment in high quality money market instruments. TIMMA 0.22% 4.72% 5.08% 5.78% 8.84% Date of Allotment: March 17, 1997 Crisil Liquid Fund Manager: Nilesh Shah Fund Index 0.15% 4.09% 3.98% 4.34% N.A NAV: Re. 1 (Constant) Fund Size: Rs. 30.51 crores Past performance may or may not be sustained in future. ** * Expense Ratio: 1.00% Composition by assets Annualised Compounded and annualised Minimum Investment/Multiples for New Investors Rs. 10000 invested at inception in TIMMA Regular Account Rs.5000/1000 Cheque Writing Rs.10,000/1000 Additional Investment/Multiples for Existing Investors Rs. 18,158 Rs.1000/1000 (for all plans) Load Structure Entry Load NIL Exit Load NIL Lock-in Period 15 days from the date of allotment ■ Money market instruments 8.65% ■ Call, Cash & Other Assets 91.35%

Franklin India International Fund FINTF

Portfolio As of March 31, 2004 Company Name Rating Market Value (Rs Lakhs) Market Value ($) % of Assets Fund Category Investment in Foreign Mutual Fund

Franklin US Government Fund AAA 148.01 341119 88.33

Call, Cash and Other Assets 19.55 45067 11.67

Net Assets 167.57 386186 100.00 Investment objective Seeks to provide returns by investing predominantly in overseas mutual fund, which primarily invest in Portfolio Composition and Performance securities issued or backed by the US Government. The scheme invests in units of Franklin US Government Fund, that invests predominantly in Ginnie Maes Fund Manager’s Commentary Values as on 31.3.2004 securities (backed by the US Government). NAV Performance Date of allotment: Dec 20, 2002 The fund has remained invested in the US Govy Fund. NAV of FINTF Rs. 9.3611 Fund Manager: Nilesh Shah NAV of Franklin US Govt. Fund US $ 9.99 Fund Size: Rs. 1.68 crores 1 US $ Rs. 43.39 Expense Ratio: 0.90% NAV Performance Minimum investment/Multiples for Performance New investors: Rs.1 lakh/ 5000 Last Last Last Last Since * Additional investment/Multiples for 1 month 3 months 6 months 1 year 20.12.2002 Last Last Last Last Since existing investors: Rs.1 lakh/ 5000 1 month 3 months 6 months 1 year 20.12.2002* FINTF -3.26% -2.68% -3.01% -6.19% -5.03% Load Structure Franklin US Entry Load NIL Past performance may or may not be sustained in future. Government Fund 0.45% 1.97% 2.17% 2.62% 2.88% * Exit Load Rs.10 lakhs & below - 0.5%, Compounded and annualised Lehman if redeemed within 6 months Intermediate of allotment. Govt (US) Index -3.46% -2.77% -3.47% -5.38% -3.96% Above Rs.10 lakhs - Rupee vis-a-vis US $ 4.13% 4.87% 5.37% 8.65% 7.66% 0.25%, if redeemed within 3 months of allotment Past performance may or may not be sustained in future. *Compounded and annualised

34 ∞ DIVIDEND /BONUS HISTORY

Record Date Dividend Rate Rate per NAV* Record Date Dividend Rate Rate per NAV* Record Date Dividend Rate Rate per NAV* /Bonus Ratio unit (Rs.) (Rs.) /Bonus Ratio unit (Rs.) (Rs.) /Bonus Ratio unit (Rs.) (Rs.) • FIBCF** TIIF (Quarterly Dividend) Jan 01, 1997 20% 2.00 12.03 (Quarterly Dividend) Mar 26, 2004 1.50% 0.150 10.3177 Jul 30, 1999 35% 3.50 30.17 Mar 26, 2004 2.00% 0.200 11.3466 Dec 26, 2003 1.25% 0.125 10.3692 Mar 14, 2000 65% /1:1 bonus 6.50 50.38 Dec 26, 2003 2.00% 0.200 11.4700 Sep 26, 2003 1.50% 0.150 10.4359 Nov 10, 2000 25% 2.50 16.85 Sep 26, 2003 2.00% 0.200 11.5277 Jun 25, 2003 1.50% 0.150 10.3932 Mar 09, 2001 22.50% 2.25 14.08 Jun 13, 2003 1.775% 0.1775 11.3812 Mar 25, 2003 2.00% 0.200 10.3395 Mar 18, 2002 10% 1.00 12.93 Dec 24, 2002 2.75%¶ 0.275 10.5456 Jul 30, 2003 20% 2.00 15.45 Feb 3, 2004 20% 2.00 22.43 TIIBA Sep 25, 2002 2.25% 0.225 10.5194 • Jun 25, 2002 2.25% 0.225 10.43 (Annual Dividend) Mar 20, 2002 3.50% 0.350 10.62 TIGF** Mar 26, 2004 10% 1.00 11.8620 Dec 24, 2001 3.75%$ 0.375 10.75 Apr 28, 2000 15% 1.50 14.45 • (Half Yearly Dividend) ¶ Sep 16, 2003 20% 2.00 20.48 (Regular dividend @2.25% & Bonus dividend @0.50%) Mar 26, 2004 4.50% 0.45 15.2827 $ Feb 24, 2004 30% 3.00 27.16 (Regular dividend @2.25% & Bonus dividend @1.50%) Sep 26, 2003 4.50% 0.45 15.4362 (Monthly Dividend)# Sep 25, 2001 2.25% 0.225 10.58 FIPP** Mar 26, 2004 0.79% 0.079 15.0232 Jun 25, 2001 2.25% 0.225 10.61 Sep 10, 1999 20% 2.00 18.83 Feb 27, 2004 0.79% 0.079 14.9482 Mar 23, 2001 2.00% 0.200 10.45 Oct 13, 2000 30% 3.00 17.41 Jan 30, 2004 0.79% 0.079 15.0510 Dec 22, 2000 2.00% 0.200 10.38 Jan 19, 2001 25% 2.50 16.79 • Sep 25, 2000 0.65% 0.065 10.11 Mar 18, 2002 20% 2.00 15.36 (Quarterly Plan) Jun 23, 2000 2.50% 0.250 10.33 Aug 19, 2003 20% 2.00 18.10 Mar 26, 2004 2.25% 0.225 15.0138 Mar 23, 2004 25% 2.50 23.63 Dec 26, 2003 2.25% 0.225 15.1475 (Half-yearly Dividend) Sep 26, 2003 2.25% 0.225 15.1700 Mar 26, 2004 4.00% 0.400 11.8091 FIPF** Jun 27, 2003 2.20% 0.220 14.9768 Sep 26, 2003 3.50% 0.350 11.4354 Mar 25, 2003 4.00% 0.400 10.6781 Nov 03, 1999 30% 3.00 26.34 Sep 25, 2002 5.00% 0.500 10.7446 Sep 22, 2000 30% 3.00 18.93 TIIBA - Institutional Plan Mar 20, 2002 7.00% 0.700 11.12 Jan 17, 2001 25% 2.50 15.27 Mar 26, 2004 2.25% 0.225 10.7717 Sep 25, 2001 2.50% 0.250 10.44 Mar 18, 2002 30% 3.00 16.78 Dec 26, 2003 2.25% 0.225 10.9076 Jun 27, 2003 25% 2.50 20.73 Mar 23, 2001 2.50% 0.250 10.34 Sep 26, 2003 2.25% 0.225 10.9862 Jan 20, 2004 40% 4.00 35.64 Sep 25, 2000 3.00% 0.300 10.39

• FIT** TMIP ** FTIMIP (Monthly Dividend) Mar 31, 2000 80% 8.00 31.02 (Monthly Dividend) Mar 26, 2004 0.44% 0.044 10.3149 May 24, 2000 60% 6.00 19.82 Mar 26, 2004 1.00% 0.100 11.6414 Feb 27, 2004 0.44% 0.044 10.2969 Mar 30, 2001 12.50% 1.25 11.57 Feb 27, 2004 1.00% 0.100 11.6961 Feb 24, 2004 40% 4.00 24.01 Jan 30, 2004 0.44% 0.044 10.3377 Jan 30, 2004 1.00% 0.100 11.7614 Dec 26, 2003 0.44% 0.044 10.3739 Dec 26, 2003 1.00% 0.100 11.8365 Nov 28, 2003 0.44% 0.044 10.3776 FIF Nov 28, 2003 0.79% 0.079 11.5527 Oct 31, 2003 0.44% 0.044 10.4242 Oct 08, 1999 40% 4.00 39.59 Sep 26, 2003 0.44% 0.044 10.4196 Oct 31, 2003 0.79% 0.079 11.5303 Jan 12, 2000 60%/1:1 bonus 6.00 64.00 Aug 25, 2003 0.44% 0.044 10.3836 Sep 26, 2003 0.79% 0.079 11.3525 Mar 24, 2000 60% 6.25 37.57 Jul 25, 2003 0.44% 0.044 10.3622 Aug 29, 2003 0.89% 0.089 11.3855 Mar 16, 2004 20% 2.00 12.67 Jun 25, 2003 0.44% 0.044 10.3564 Jul 25, 2003 0.70% 0.070 11.0606 May 23, 2003 0.44% 0.044 10.3611 Jun 27, 2003 0.70% 0.070 10.9749 FFF** Apr 25, 2003 0.53% 0.053 10.3388 May 30, 2003 0.53% 0.053 10.8187 Apr 25, 2003 0.58% 0.058 10.6973 Mar 09, 2004 25.00% 2.50 15.26 Mar 25, 2003 0.60% 0.060 10.2712 Feb 25, 2003 0.60% 0.060 10.2508 (Quarterly Dividend) Jan 24, 2003 0.75% 0.075 10.4259 ** Mar 26, 2004 3.00% 0.300 11.8558 FPF Dec 24, 2002 1.25%$ 0.125 10.4621 Dec 26, 2003 3.00% 0.300 12.0485 Mar 09, 2004 25.00% 2.50 16.60 Nov 25, 2002 0.75% 0.075 10.4743 Sep 26, 2003 2.25% 0.225 11.5426 Oct 25, 2002 0.80% 0.080 10.4426 Jun 27, 2003 2.20% 0.220 11.1507 Sep 25, 2002 0.80% 0.080 10.4462 FTIBF** Aug 23, 2002 0.80% 0.080 10.44 Mar 28, 2003 2.25% 0.225 10.8746 Nov 25, 2003 15% 1.50 13.99 Jul 25, 2002 0.80% 0.080 10.44 Jun 25, 2002 0.80% 0.080 10.39 TGSF • TIPP** May 24, 2002 0.80% 0.080 10.39 Apr 24, 2002 0.80% 0.080 10.45 (Quarterly Dividend) Dec 31, 1997 12% 1.20 11.31 Mar 20, 2002 0.80% 0.080 10.43 Mar 26, 2004 2.50% 0.250 11.9379 Dec 14, 1998 12% 1.20 11.46 Feb 25, 2002 0.80% 0.080 10.50 Dec 26, 2003 2.50% 0.250 12.0888 Mar 16, 2000 12% 1.20 12.41 Jan 25, 2002 0.80% 0.080 10.46 Sep 26, 2003 2.50% 0.250 12.1397 Jul 13, 2001 12% 1.20 12.09 Dec 24, 2001 1.30% 0.130 10.48 Jun 13, 2003 2.22% 0.222 11.8381 Mar 22, 2002 10% 1.00 11.72 Dec 23, 2003 12% 1.20 15.81 Nov 23, 2001 0.80% 0.080 10.51 Oct 25, 2001 0.80% 0.080 10.41 TGSF (TP)• Sep 25, 2001 0.80% 0.080 10.34 ** FIBF Aug 24, 2001 0.80% 0.080 10.45 Mar 26, 2004 1.25% 0.125 10.7653 Nov 25, 2003 15% 1.50 14.76 Jul 25, 2001 0.80% 0.080 10.44 Dec 26, 2003 1.25% 0.125 10.8174 Jun 25, 2001 0.80% 0.080 10.40 Sep 26, 2003 1.25% 0.125 10.7993 May 25, 2001 0.75% 0.075 10.35 Jun 13, 2003 1.33% 0.133 10.6227 FTIPERF** Apr 25, 2001 0.75% 0.075 10.30 Mar 16, 2004 25.00% 2.50 14.90 Mar 23, 2001 0.75% 0.075 10.25 FTIGF Feb 23, 2001 0.75% 0.075 10.27 FTIAAF** Jan 25, 2001 0.60% 0.060 10.23 Liquid Plan (Monthly Dividend)# Dec 22, 2000 0.60% 0.060 10.19 Mar 26, 2004 0.40% 0.040 10.2505 Pure Growth Plan Nov 24, 2000 0.60% 0.060 10.16 Feb 27, 2004 0.40% 0.040 10.2694 Mar 16, 2004 35.00% 3.50 16.9796 Oct 25, 2000 0.60% 0.060 10.12 Steady Growth Plan Jan 30, 2004 0.40% 0.040 10.2864 Sep 25, 2000 0.60% 0.060 10.10 Mar 16, 2004 30.00% 3.00 15.8136 Dec 26, 2003 0.40% 0.040 10.2963 Aug 25, 2000 0.60% 0.060 10.08 Balanced Growth Plan Investment Plan (Quarterly Dividend)• Mar 16, 2004 25.00% 2.50 14.6055 Jun 23, 2000 0.60% 0.060 10.09 Mar 26, 2004 2.50% 0.250 11.9481 Conservative Growth Plan May 25, 2000 0.70% 0.070 10.10 Mar 16, 2004 20.00% 2.00 13.4871 Apr 25, 2000 0.85% 0.085 10.12 Dec 26, 2003 2.50% 0.250 11.9963 Inflation Hedge Mar 25, 2000 0.85% 0.085 10.05 Sep 26, 2003 2.50% 0.250 11.8245 Mar 16, 2004 15.00% 1.50 12.1490 $ (Regular dividend @ 0.75% & Bonus dividend @ 0.50%) Jun 27, 2003 2.70% 0.270 11.6304 ∞ Past performance may or may not be sustained in future. • Past 12 months dividend history * Cum-dividend NAV # Past 3 months dividend history ** Since inception Please note that after the payment of dividend, the NAV falls to the extent of dividend. 35 Dividend distribution tax is taken into consideration wherever applicable while calculating the NAV performance For more information please contact:

✓ Ahmedabad Banashree (079) 6470056, 6401947 ✓ Lucknow Manish (0522) 2285301, 2285172

✓ Bangalore Deepthi (080) 238 5612/14 Ludhiana Sanjeev (0161) 2406191, 2406198

Baroda Nisarg (0265) 2356036/37 Madurai Thiru (0452) 2343008, 98942 63298

Bhubaneswar Sujata (0674) 2535141, 2531745 Mangalore Poornima (0824) 2492796, 98456 82135 ✓ Chandigarh Ranjan (0172) 2662136, 2622341 Mumbai Sameera (022) 56325820-36, 22886706 Nagpur Bhawani (0712) 2555074, 2553794 ✓ Chennai Nandini (044) 24679203, 24679204 Nashik Evellyn (0253) 2574327/2574329 Cochin Bertram (0484) 2335096/2334865 Patna Alok Trivedi (0612) 2212277/2213170 Coimbatore Sheshadri (0422) 2474616, 2470277 ✓ Pune Nilima (020) 5533140/1, 5513660/1 Dehradun Ajeet (0135) 2743268, 2748306 Raipur Sharique (0771) 5033614/5033244 ✓ Delhi Anuranjani (011) 23738670 (D), 23752017 Rajkot Alpa (0281) 2294204/2471395 ✓ Hyderabad Pooja (040) 55665915, 55665916 Salem Balaji (0427) 2446854/9894246854 Indore Bhavna (0731) 2526710, 2526711 Surat Nimesh (0261) 2473766 Jaipur Heera (0141) 2377904, 2377905 Trichy Senthi Kumar (0431) 2464022, 98942 14691 Jalandhar Anu Jindal (0181) 5080783, 5080784 Varanasi Pradeep (0542) 2226684 ✓ Kanpur Vineet (0512) 2303131, 2330767 Vijayawada Srinivas (0866) 2472594/5561301 ✓ Kolkata Sujata (033) 22824171 / 22826517 Visakhapatnam Sujatha (0891) 5565351/2704705

✓ Round the clock NAV on 96274 96274 in these cities.

Registered Office: Templeton Asset Management (India) Pvt. Ltd., Sakhar Bhavan, 1st floor, 230 Backbay Reclamation, Nariman Point, Mumbai - 400 021. www. franklintempletonindia.com

For further information you can mail us at [email protected]

Risk Factors: All investments in mutual funds and securities are subject to market risks and the NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates. There can be no assurance that schemes’ investment objectives will be achieved. The past performance of the mutual funds managed by the Franklin Templeton Group and its affiliates is not necessarily indicative of future performance of the schemes. Templeton India Growth Fund, Franklin India Index Fund, Franklin India Balanced Fund, Franklin India Index Tax Fund, Templeton India Income Fund, Templeton Monthly Income Plan@, Templeton India Government Securities Fund, Templeton Floating Rate Income Fund and Templeton India Liquid Fund, Franklin India Bluechip Fund, Franklin India Prima Plus, Franklin India Prima Fund, Franklin India Taxshield, Franklin Infotech Fund, Franklin FMCG Fund, Franklin Pharma Fund, Franklin India Opportunities Fund, Franklin India Balanced Fund, FT India LIfe Stage Fund of Funds, Templeton India Pension Plan, Franklin India International Fund, Templeton India Income Builder Account, FT India Monthly Income Plan@, FT India Gilt Fund, Templeton India Short- Term Income Plan, Templeton India Treasury Management Account, Templeton India Money Market Account, FT India PE Ratio Fund, FT India Asset Allocation Fund, are only the names of the schemes and do not in any manner indicate the quality of the schemes, their future prospects or returns. In Franklin India International Fund, the investments made by the scheme in the US Fund are subject to external risks including currency risk, downgrade risk of US Government debt. The investment in the US fund will be restricted to the statutory limits. In Franklin Infotech Fund, Franklin FMCG Fund, Franklin Pharma Fund, the diversification is restricted to the respective sectors as a result of which, the movement in the NAV may be more volatile compared to schemes with a more diversified portfolio. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes. The Mutual Fund is also not assuring that it will make any dividend/bonus distributions under the dividend/bonus plans of the schemes though it has every intention of doing so. All dividend/bonus distributions are subject to the investment performance of the schemes. The investments made by the schemes are subject to external risks on transferring, pricing, trading volumes, settlement risks etc. of securities and hence redemptions may be delayed inordinately. The schemes may invest in various derivative instruments including Index futures, which are untested instruments in Indian Markets and may carry high risk return ratio and may also invest in overseas instruments which is subject to forex fluctuation risks. FTLF: FTLF being a fund of funds, investors are bearing the recurring expenses of the scheme in addition to the expenses of the underlying schemes. In the cases of Franklin India Index Fund, the existence, accuracy and performance of the S&P CNX Nifty Index will directly affect the schemes performance and tracking errors are inherent in any Index Fund. All subscriptions in Franklin India Taxshield and Templeton India Pension Plan are subject to a lock-in-period of 3 years and the unitholder cannot redeem, transfer, assign or pledge the units from the date of allotment. The Trustee, AMC, their directors or their employees shall not be liable for any of the tax consequences that may arise, in the event that the Scheme is wound up before the completion of the lock-in period. In the case of hybrid funds, in the event that the investible funds of more than 50% of the total proceeds of the scheme are not invested in equity shares, then tax exemption on income distribution may not be available to the fund. Investors are requested to consult tax professionals for specific tax, legal and financial implications of the investment/participation/disinvestment in the schemes. All returns are computed without considering sales charge. Please call the Templeton Investor Service Centre numbers to obtain a copy of the offer document and go through the same before investing. Statutory Details: Templeton Mutual Fund in India has been set up as a trust by Templeton International Inc. (liability restricted to the seed corpus of Rs.1 lac) with Templeton Trust Services Pvt. Ltd. as the Trustee (Trustee under the Indian Trust Act 1882) and with Franklin Templeton Asset Management (India) Pvt. Ltd. as the Investment Manager. The Fund offers NAV’s, purchases and redemptions on all business days except during the period when there is a book closure.

(This document is meant for use by the receipient and not for circulation. This document is not to be copied or made available to others.)