AUDITED HALF - YEARLY PORTFOLIO STATEMENT OF THE SCHEMES OF FRANKLIN TEMPLETON MUTUAL FUND AS ON SEPTEMBER 30, 2005

Franklin India Tax Shield 97 FT India Balanced Fund Templeton India Pension Plan Company Name Industry Quantity Market Value % to Net Company Name Industry Quantity Market Value % to Net Company Name Industry Quantity Market Value % to Net classification (Rs. in Lakhs) Assets classification (Rs. in Lakhs) Assets classification (Rs. in Lakhs) Assets Equity & Equity Related Equity & Equity Related Goverment Securities (a) Listed/Awaiting listing on Stock Exchanges (a)Listed/Awaiting listing on Stock Exchanges GOI 07.55% 2010 SOV 500,000 517.50 5.39 Goodlass Nerolac Consumer Non Durables 12,001 85.54 8.78 Hindalco Industries Ltd. Non - Ferrous Metals 690,000 1,014.64 5.32 GOI 06.96% 2009 Oil Bonds SOV 400,000 403.12 4.20 Paints Ltd. Grasim Industries Ltd. Cement 70,000 924.69 4.85 GOI 12.00% 2008 SOV 80,000 90.68 0.94 Madras Cements Ltd. Cement 5,833 83.44 8.56 Kotak Mahindra Bank Ltd. Banks 427,677 852.57 4.47 Total 1,011.30 10.53 Pidilite Industries Ltd. Consumer Non Durables 73,860 61.89 6.35 ICICI Bank Ltd. Banks 140,000 840.49 4.41 Call,Cash & Other Assets 310.56 3.24 Infosys Technologies Ltd. Software 2,243 56.46 5.79 Pidilite Industries Ltd. Consumer Non Durables 832,170 697.36 3.65 Net Assets 9,597.45 100.00 Motor Industries Co. Ltd. Auto Ancillaries 28,000 681.05 3.57 Larsen & Toubro Ltd. Industrial Capital Goods 3,728 56.39 5.79 Note: Grasim Industries Ltd. Cement 3,995 52.77 5.42 Infosys Technologies Ltd. Software 25,911 652.18 3.42 a) NAV at the beginning and at the end of the Half-year ended September 30, 2005 Hindalco Industries Ltd. Non - Ferrous Metals 31,930 46.95 4.82 Tata Consultancy Services Ltd. Software 42,610 631.16 3.31 NAV as on 31-Mar-2005 Eicher Motors Ltd. Auto 16,364 45.82 4.70 Maruti Udyog Ltd. Auto 110,000 614.13 3.22 Exide Industries Ltd. Auto Ancillaries 230,901 490.78 2.57 Dividend Plan 15.61 Satyam Computer Services Ltd. Software 7,279 40.77 4.18 Growth Plan 32.25 Ucal Fuel Systems Ltd. Auto Ancillaries 13,338 33.49 3.44 Oil & Natural Gas Corporation Ltd. Oil 46,000 488.01 2.55 ICICI Bank Ltd. Banks 4,939 29.65 3.04 NDTV Ltd. Media & Entertainment 225,000 472.84 2.47 NAV as on 30-Sept-2005 Nestle India Ltd. Consumer Non Durables 3,120 26.69 2.74 Larsen & Toubro Ltd. Industrial Capital Goods 25,590 387.09 2.02 Dividend Plan 17.25 Kirloskar Brothers Ltd Industrial Products 17,022 25.27 2.59 Madras Cements Ltd. Cement 26,074 373.00 1.95 Growth Plan 35.65 Asian Paints (India) Ltd. Consumer Non Durables 5,000 25.02 2.57 KPIT Cummins Infosystem Ltd. Software 245,000 363.70 1.91 b) Dividends declared during the Half - year ended September 30, 2005 : Nil Asian Paints (India) Ltd. Consumer Non Durables 64,787 324.23 1.70 IDFC Ltd. Finance 33,440 23.71 2.43 Templeton India Children's Asset Plan - Education Plan Reliance Industries Ltd. Petroleum Products 2,980 23.65 2.43 Biocon Ltd. Pharmaceuticals 60,000 274.47 1.44 Company Name Industry Quantity Market Value % to Net State Bank of India Banks 2,513 23.59 2.42 State Bank of India Banks 29,239 274.44 1.44 classification (Rs. in Lakhs) Assets Eicher Ltd. Finance 21,546 22.82 2.34 IDFC Ltd. Finance 384,753 272.79 1.43 Equity & Equity Related Maruti Udyog Ltd. Auto 3,883 21.68 2.23 Kesoram Industries Ltd. Auto Ancillaries 150,000 245.32 1.29 Listed/Awaiting listing on Stock Exchanges TV Today Network Ltd. Media & Entertainment 19,863 19.10 1.96 Indian Oil Corporation Ltd. Petroleum Products 50,000 225.88 1.18 Bank of Punjab Ltd. Banks 500,000 219.00 1.15 Hindalco Industries Ltd. Non - Ferrous Metals 1,024 1.50 1.52 Pfizer Ltd. Pharmaceuticals 2,326 18.99 1.95 Infosys Technologies Ltd. Software 58 1.46 1.48 Bharat Petroleum Petroleum Products 4,354 17.60 1.81 Premier Instruments & Controls Ltd. Auto Ancillaries 350,000 186.03 0.98 Federal Bank Ltd. Banks 93,000 174.38 0.91 Essel Propack Ltd. Industrial Products 400 1.40 1.43 Corporation Ltd. Grasim Industries Ltd. Cement 102 1.35 1.37 Hindustan Petroleum Petroleum Products 5,020 15.87 1.63 Zee Telefilms Ltd. Media & Entertainment 100,000 172.75 0.91 Mangalam Cement Ltd. Cement 200,000 160.00 0.84 Kirloskar Brothers Ltd Industrial Products 800 1.19 1.20 Corporation Ltd. Goodlass Nerolac Consumer Non Durables 155 1.10 1.12 HCL Technologies Ltd. Software 3,004 13.72 1.41 Lupin Ltd. Pharmaceuticals 20,000 151.09 0.79 Ashok Leyland Ltd. Auto 527,432 149.53 0.78 Paints Ltd. Dr. Reddy’s Laboratories Ltd. Pharmaceuticals 1,455 12.40 1.27 Centurion Bank Ltd. Banks 5,000 1.00 1.02 Emami Ltd. Consumer Non Durables 5,917 6.59 0.68 TVS Motor Company Ltd. Auto 150,000 139.13 0.73 TV Today Network Ltd. Media & Entertainment 140,000 134.61 0.71 HCL Technologies Ltd. Software 200 0.91 0.93 NDTV Ltd. Media & Entertainment 2,900 6.09 0.63 Premier Instruments & Controls Ltd. Auto Ancillaries 1,536 0.82 0.84 Ranbaxy Laboratories Ltd. Pharmaceuticals 806 3.96 0.41 Eicher Motors Ltd. Auto 40,796 114.23 0.60 Housing Development Finance 10,000 103.97 0.55 Emami Ltd. Consumer Non Durables 628 0.70 0.71 HT Media Ltd. Media & Entertainment 825 3.48 0.36 Federal Bank Ltd. Banks 256 0.48 0.49 Gateway Distriparks Ltd. Transportation 1,221 2.63 0.27 Finance Corporation Ltd. Eicher Motors Ltd. Auto 61,194 64.80 0.34 State Bank of India Banks 51 0.48 0.49 Yes Bank Ltd. Banks 1,789 1.19 0.12 IDFC Ltd. Finance 459 0.33 0.34 Total 907.22 93.12 HT Media Ltd. Media & Entertainment 9,312 39.32 0.21 Total 907.22 93.12 HT Media Ltd. Media & Entertainment 9 0.04 0.04 (b)Unlisted IL & FS Investment Managers Ltd. Finance 10,062 23.16 0.12 (b)Unlisted Total 12.75 13.01 Quantum Info. 2,700 0.02 */** Total 12,932.82 67.79 Goverment Securities Total 0.02 -- (b)Unlisted Total 0.02 --- GOI Floating Rate Bond 2013 SOV 57,051 57.14 58.19 Call,Cash & Other Assets 67.08 6.88 Globsyn Technologies Ltd 270,000 0.03 */** Call,Cash & Other Assets 67.08 6.88 GOI 12.00% 2008 SOV 20,478 23.21 23.64 Net Assets 974.32 100.00 Numero Uno 27,500 * */** Total 0.03 - Total 80.35 81.83 * Less than 0.01% Call,Cash & Other Assets 5.10 5.16 Note: Debt Instruments Rating a)Listed / awaiting listing on Stock Exchanges Net Assets 98.20 100.00 a) NAV at the beginning and at the end of the Half-year ended September 30, 2005 Non-Traded / Thinly Traded Scrips Note: NAV as on 31-Mar-2005 Citifinancial Consumer Finance India Ltd. AAA 900 902.57 4.73 Growth Plan 65.38 Power Finance Corporation Ltd. AAA 250 695.40 3.65 a) NAV at the beginning and at the end of the Half-year ended September 30, 2005 NAV as on 30-Sept-2005 Housing Development Finance Corporation Ltd. AAA 50 484.75 2.54 NAV as on 31-Mar-2005 Growth Plan 82.02 Power Grid Corporation of India Ltd. AAA 16 182.53 0.96 Growth Plan 20.7300 b) Dividends declared during the Half - year ended September 30, 2005: Nil Indian Rayon & Industries Ltd AAA 1 102.03 0.53 NAV as on 30-Sept-2005 Total 2,367.28 12.41 Growth Plan 21.6779 c) Portfolio Turnover Ratio during the Half - year ended September 30, 2005 4.04% b)Privately Placed/ Unlisted b) Dividends declared during the Half - year ended September 30, 2005: Nil d) ** Total value and percentage of illiquid equity shares Rs. 0.02 lacs and 0.0021% Citicorp Finance Fleet Trust PTC Series A1 (Originator Citicorp Finance (India) Ltd. c) Average Maturity as on 30 September, 2005 6.02 years Franklin India Tax Shield 98 & Citibank N.A.) AAA (SO) 20 859.04 4.50 Templeton India Children's Asset Plan - Gift Plan Citibank SME Revolving Trust PTC A1 Company Name Industry Quantity Market Value % to Net Company Name Industry Quantity Market Value % to Net (Originator - Citibank N.A.) AAA (SO) 4 399.79 2.10 classification (Rs. in Lakhs) Assets classification (Rs. in Lakhs) Assets Fleet Trust PTC Series A2 Equity & Equity Related - Equity & Equity Related (Originator Citicorp Finance (I) Ltd.) AAA (SO) 6 117.53 0.62 Listed/Awaiting listing on Stock Exchanges Listed/Awaiting listing on Stock Exchanges Total 1,376.36 7.22 Marico Industries Ltd. Consumer Non Durables 4,000 11.65 9.50 Kirloskar Brothers Ltd Industrial Products 5,800 8.61 3.01 Goverment Securities Hindalco Industries Ltd. Non - Ferrous Metals 6,250 9.19 7.50 Madras Cements Ltd. Cement 600 8.58 3.00 GOI Floating Rate Bond 2013 SOV 1,000,000 1,001.50 5.25 Grasim Industries Ltd. Cement 679 8.97 7.32 State Bank of India Banks 900 8.45 2.94 GOI 12.00% 2008 SOV 500,000 566.75 2.97 Infosys Technologies Ltd. Software 354 8.91 7.26 Grasim Industries Ltd. Cement 600 7.93 2.77 GOI 11.99% 2009 SOV 200,000 234.39 1.23 Satyam Computer Services Ltd. Software 1,307 7.32 5.97 Hindalco Industries Ltd. Non - Ferrous Metals 5,000 7.35 2.57 GOI 06.96% 2009 Oil Bonds SOV 150,000 151.17 0.79 Sun Pharmaceutical Industries Ltd. Pharmaceuticals 1,075 7.15 5.84 Essel Propack Ltd. Industrial Products 2,000 7.00 2.44 Total 1,953.81 10.24 Bharat Petroleum Petroleum Products 1,392 5.63 4.60 HCL Technologies Ltd. Software 1,200 5.48 1.92 Money Market Instruments Corporation Ltd. Centurion Bank Ltd. Banks 25,000 4.97 1.74 Commercial Paper State Bank of India Banks 594 5.58 4.55 Infosys Technologies Ltd. Software 170 4.28 1.50 Export - Import Bank of India P1+ 20 96.66 0.51 Asian Paints (India) Ltd. Consumer Non Durables 1,000 5.00 4.08 Goodlass Nerolac Consumer Non Durables 452 3.22 1.13 Total 96.66 0.51 Cipla Ltd. Pharmaceuticals 1,308 4.97 4.06 Paints Ltd. Call,Cash & Other Assets 349.66 1.83 Eicher Ltd. Finance 3,500 3.71 3.02 Premier Instruments & Controls Ltd. Auto Ancillaries 4,464 2.37 0.83 Net Assets 19,076.65 100.00 Kirloskar Brothers Ltd Industrial Products 2,335 3.47 2.83 Emami Ltd. Consumer Non Durables 1,827 2.03 0.71 * Less than 0.01% Larsen & Toubro Ltd. Industrial Capital Goods 227 3.43 2.80 Federal Bank Ltd. Banks 744 1.40 0.49 Note: Reliance Industries Ltd. Petroleum Products 421 3.34 2.73 IDFC Ltd. Finance 1,334 0.95 0.33 IDFC Ltd. Finance 4,470 3.17 2.59 a) NAV at the beginning and at the end of the Half-year ended September 30, 2005 HT Media Ltd. Media & Entertainment 26 0.11 0.04 ICICI Bank Ltd. Banks 500 3.00 2.45 NAV as on 31-Mar-2005 Total 72.73 25.42 Hindustan Petroleum Petroleum Products 800 2.53 2.07 Dividend Plan 17.08 Goverment Securities Corporation Ltd. Growth Plan 19.08 GOI Floating Rate Bond 2013 SOV 142,949 143.16 50.04 Punjab National Bank Ltd. Banks 538 2.42 1.98 NAV as on 30-Sept-2005 GOI 12.00% 2008 SOV 59,522 67.47 23.58 TV Today Network Ltd. Media & Entertainment 2,329 2.24 1.83 Dividend Plan 18.46 Total 210.63 73.62 Ucal Fuel Systems Ltd. Auto Ancillaries 878 2.20 1.80 Growth Plan 23.26 Call,Cash & Other Assets 2.74 0.96 Associated Cement Companies Ltd. Cement 439 2.14 1.75 Net Assets 286.10 100.00 b) Dividends declared during the Half - year ended September 30, 2005 Pidilite Industries Ltd. Consumer Non Durables 1,840 1.54 1.26 Note: Emami Ltd. Consumer Non Durables 803 0.89 0.73 Record date Dividend Dividend %age a) NAV at the beginning and at the end of the Half-year ended September 30, 2005 HT Media Ltd. Media & Entertainment 111 0.47 0.38 per unit to Face Value Gateway Distriparks Ltd. Transportation 163 0.35 0.29 15-Jun-05 2.0000 20.00% NAV as on 31-Mar-2005 Dividend Plan Yes Bank Ltd. Banks 239 0.16 0.13 c) ** Total value and percentage of illiquid equity shares Rs. 0.03 lacs and 0.0002% Total 109.43 89.32 Growth Plan Call,Cash & Other Assets 13.08 10.68 Templeton India Pension Plan NAV as on 30-Sept-2005 Net Assets 122.51 100.00 Company Name Industry Quantity Market Value % to Net Dividend Plan 21.6541 classification (Rs. in Lakhs) Assets Growth Plan 21.6541 Note: Equity & Equity Related b) Dividends declared during the Half - year ended September 30, 2005: Nil a) NAV at the beginning and at the end of the Half-year ended September 30, 2005 (a) Listed/Awaiting listing on Stock Exchanges c) Average Maturity as on 30 September, 2005 6.15 years NAV as on 31-Mar-2005 Infosys Technologies Ltd. Software 12,781 321.70 3.36 Growth Plan 63.64 Hindalco Industries Ltd. Non - Ferrous Metals 153,160 225.22 2.35 Templeton India Income Builder Account Motor Industries Co. Ltd. Auto Ancillaries 9,000 218.91 2.28 NAV as on 30-Sept-2005 Company Name Rating Quantity Market Value % to Net ICICI Bank Ltd. Banks 36,000 216.13 2.26 Growth Plan 78.53 (Rs. in Lakhs) Assets Grasim Industries Ltd. Cement 15,000 198.15 2.06 Debt Instruments b) Dividends declared during the Half - year ended September 30, 2005: Nil Larsen & Toubro Ltd. Industrial Capital Goods 13,000 196.64 2.05 (a) Listed/Awaiting listing on Stock Exchanges c) Portfolio Turnover Ratio during the Half - year ended September 30, 2005 3.34% Kotak Mahindra Bank Ltd. Banks 90,235 179.88 1.87 Non - Traded / Thinly Traded Scrips Pidilite Industries Ltd. Consumer Non Durables 213,920 179.26 1.88 Power Finance Corporation Ltd. AAA 150 1,497.44 9.17 Tata Consultancy Services Ltd. Software 12,000 177.75 1.85 Franklin India Tax Shield 99 IRFC Ltd. AAA 100 984.10 6.03 Asian Paints (India) Ltd. Consumer Non Durables 30,000 150.13 1.56 Ultra Tech Cemco Ltd. AA+ 100 974.73 5.97 Company Name Industry Quantity Market Value % to Net Dredging Corporation of India Ltd. Dredging 24,000 137.56 1.43 Housing Development Finance Corporation Ltd. AAA 60 602.82 3.69 classification (Rs. in Lakhs) Assets NDTV Ltd. Media & Entertainment 63,521 133.49 1.39 Mahindra and Mahindra Financial Services Ltd. AA+ 50 506.13 3.10 Equity & Equity Related - I-Flex Solutions Ltd. Software 12,000 117.76 1.23 Export - Import Bank of India AAA 50 499.45 3.06 Listed/Awaiting listing on Stock Exchanges Housing Development Finance 11,000 114.36 1.19 Hindalco Industries Ltd. AAA 5 488.00 2.99 Infosys Technologies Ltd. Software 3,289 82.78 19.53 Finance Corporation Ltd. Total 5,552.67 34.00 Satyam Computer Services Ltd. Software 8,140 45.59 10.76 Kirloskar Brothers Ltd Industrial Products 75,000 111.34 1.16 b) Privately Placed / Unlisted ICICI Bank Ltd. Banks 5,395 32.39 7.64 J K Paper Ltd. Paper 146,500 97.06 1.01 Hongkong Bank N.R 9 1,060.56 6.49 Tata Consultancy Services Ltd. Software 2,000 29.63 6.99 IDFC Ltd. Finance 131,966 93.56 0.97 Finolex Industries Ltd AA+ 100 1,019.05 6.25 I-Flex Solutions Ltd. Software 2,700 26.50 6.25 Premier Instruments & Controls Ltd. Auto Ancillaries 160,000 85.04 0.89 Loan Securitisation Trust - AAA (SO) 10 639.28 3.91 State Bank of India Banks 2,772 26.02 6.14 HDFC Bank Ltd. Banks 12,000 82.51 0.86 Reliance Industries PTC Wipro Ltd. Software 6,768 25.16 5.94 Biocon Ltd. Pharmaceuticals 15,000 68.62 0.71 (Originator - ICICI Bank) Asian Paints (India) Ltd. Consumer Non Durables 4,075 20.39 4.81 State Bank of India Banks 7,310 68.61 0.71 Loan Securitisation Trust - LAAA (SO) 15 568.66 3.48 Marico Industries Ltd. Consumer Non Durables 6,000 17.46 4.12 Eicher Motors Ltd. Auto 23,896 66.91 0.70 PTC Series - IX A Bharat Petroleum Petroleum Products 4,213 17.03 4.02 TV Today Network Ltd. Media & Entertainment 60,649 58.31 0.61 (Originator - ICICI Bank) Corporation Ltd. Emami Ltd. Consumer Non Durables 51,193 57.00 0.59 RPS Securitisation Trust LAAA (SO) 7,000,000 536.90 3.29 Hindalco Industries Ltd. Non - Ferrous Metals 8,500 12.50 2.95 Oil & Natural Gas Corporation Ltd. Oil 5,000 53.05 0.55 (Originator - First HNS Mauritius Ltd. Larsen & Toubro Ltd. Industrial Capital Goods 768 11.62 2.74 Bank of Punjab Ltd. Banks 100,000 43.80 0.46 and Goldman Agent Pvt. Ltd.) IDFC Ltd. Finance 14,737 10.45 2.47 Eicher Ltd. Finance 35,844 37.96 0.40 Loan Securitisation Trust - LAAA (SO) 10 327.62 2.01 Reliance Industries Ltd. Petroleum Products 1,281 10.16 2.40 Essel Propack Ltd. Industrial Products 10,000 34.99 0.36 PTC Series - IX B Hindustan Petroleum Petroleum Products 3,050 9.64 2.28 Federal Bank Ltd. Banks 18,000 33.75 0.35 (Originator - ICICI Bank) Corporation Ltd. HT Media Ltd. Media & Entertainment 3,265 13.78 0.14 Loan Securitisation Trust - AAA (SO) 3 209.93 1.29 Punjab National Bank Ltd. Banks 1,810 8.15 1.92 IL & FS Investment Managers Ltd. Finance 3,392 7.81 0.08 Bajaj Auto PTC Dr. Reddy’s Laboratories Ltd. Pharmaceuticals 949 8.09 1.91 Total 3,581.05 37.31 (Originator - ICICI Bank) TV Today Network Ltd. Media & Entertainment 7,482 7.19 1.70 Debt Instruments Rating Power Grid Corporation Ltd. AAA 25 26.72 0.16 Maruti Udyog Ltd. Auto 1,191 6.65 1.57 a)Listed / awaiting listing on Stock Exchanges Total 4,388.72 26.88 Emami Ltd. Consumer Non Durables 2,688 2.99 0.71 Non-Traded / Thinly Traded Scrips Government Securities HT Media Ltd. Media & Entertainment 372 1.57 0.37 Reliance Industries Ltd. AAA 6 616.58 6.42 GOI 07.37% 2014 SOV 2,000,000 2,041.00 12.50 Yes Bank Ltd. Banks 800 0.53 0.13 Mahindra and Mahindra Financial Services Ltd. AA+ 6 603.96 6.29 GOI 06.96% 2009 Oil Bonds SOV 2,000,000 2,015.60 12.34 Datamatics Technologies Ltd. Software 440 0.45 0.11 State Bank of India AAA 50 560.45 5.84 GOI 06.85% 2012 SOV 1,000,000 999.20 6.12 Gokaldas Exports Limited. Textile Products 53 0.30 0.07 Neyveli Lignite Corporation Ltd. AAA 50 516.90 5.39 GOI 06.20% 2010 UTI SPL Bonds SOV 1,000,000 975.50 5.97 Total 413.24 97.53 Indian Oil Corporation Ltd. AAA 50 500.41 5.21 Total 6,031.30 36.93 Call,Cash & Other Assets 10.48 2.47 Export - Import Bank of India AAA 50 499.83 5.21 Call, Cash and other Assets 356.85 2.19 Net Assets 423.72 100.00 Power Finance Corporation AAA 50 499.15 5.20 Net Assets 16,329.54 100.00 I R F C Ltd AAA 20 205.24 2.14 Note: Note: Indian Rayon & Industries Ltd. AAA 2 204.06 2.13 Note: a) NAV at the beginning and at the end of the Half-year ended September 30, 2005 a) NAV at the beginning and at the end of the Half-year ended September 30, 2005 Great Eastern Shipping Co. Ltd. AAA 1 106.08 1.11 a) NAV at the beginning and at the end of the Half-year ended September 30, 2005 NAV as on 31-Mar-2005 NAV as on 31-Mar-2005 IDBI AA+ 970 67.80 0.71 NAV as on 31-Mar-2005 Growth Plan 38.54 Power Grid Corporation AAA 5 57.04 0.59 Dividend Plan 10.2661 Quarterly Plan 14.1516 NAV as on 30-Sept-2005 Total 4,437.50 46.24 Half-Yearly Plan 14.2212 Growth Plan 47.45 b)Privately Placed/ Unlisted Monthly Plan 14.3193 b) Dividends declared during the Half-year ended September 30, 2005: Nil Finolex Industries Ltd. AA+ 20 203.81 2.13 IDBI AA+ 1,000 53.23 0.55 Monthly Bonus Plan 19.4351 Growth Plan 23.3938 c) Portfolio Turnover Ratio during the Half-year ended September 30, 2005 8.33% Total 257.04 2.68