HDFC TOP 200 FUND - hdfcfund.com HDFC T… · 1 HDFC Top 200 Fund SPONSORS Housing Development Finance Corporation Limited Registered Office: Ramon House, H. T. Parekh Marg, ... Hopefully,

1 HDFC Top 200 Fund

SPONSORSHousing Development Finance Corporation LimitedRegistered Office:Ramon House, H. T. Parekh Marg,169, Backbay Reclamation,Churchgate, Mumbai - 400 020.

Standard Life Investments LimitedRegistered Office :1 George Street, Edinburgh, EH2 2LL, United Kingdom.

TRUSTEEHDFC Trustee Company LimitedRegistered Office :Ramon House, 3rd Floor, H. T. Parekh Marg,169, Backbay Reclamation,Churchgate, Mumbai - 400 020.

ASSET MANAgEMENT COMPANyHDFC Asset Management Company LimitedA Joint Venture with Standard Life Investments LimitedRegistered Office :Ramon House, 3rd Floor, H. T. Parekh Marg,169, Backbay Reclamation,Churchgate, Mumbai - 400 020.

CUSTODIANCitibank N.A.Securities & Fund Services,Citi India, 3rd Floor, Trent House,Plot No. G-60, Bandra Kurla Complex,Bandra East, Mumbai - 400 051.

STATUTORy AUDITORSDeloitte Haskins & SellsChartered Accountants12, Dr. Annie Besant Road, Opp. Shiv Sagar Estate,Worli, Mumbai - 400 018.

REgISTRAR AND TRANSFER AgENTComputer Age Management Services Pvt. LimitedNew No. 10, Old No. 178,M.G.R. Salai, Nungambakkam,Chennai - 600 034.

BOARD OF DIRECTORS(As at March 31, 2012)

HDFC Trustee Company LimitedMr. Anil Kumar Hirjee - ChairmanMr. Shishir K. DiwanjiMr. Vincent O’BrienMr. V. Srinivasa RanganMr. Ranjan Sanghi

BOARD OF DIRECTORS(As at March 31, 2012)

HDFC Asset Management Company LimitedMr. Deepak S. Parekh - ChairmanMr. N. Keith SkeochMr. Keki M. MistryMr. James AirdMr. P. M. ThampiMr. Humayun DhanrajgirDr. Deepak B. PhatakMr. Hoshang S. BillimoriaMr. Rajeshwar Raj BajaajMr. Vijay MerchantMs. Renu S. KarnadMr. Milind Barve - Managing Director

ABRIDgED ANNUAL REPORT FOR F.y. 2011-2012

HDFC TOP 200 FUNDAN OPEN-ENDED GROWTH SCHEME

TRUSTEE REPORT

HDFC MUTUAL FUNDRamon House, 3rd Floor, H. T. Parekh Marg, 169, Backbay Reclamation, Churchgate, Mumbai - 400 020.

TEL : (022) 6631 6333 l FAX : (022) 2282 1144 l WEBSITE : www.hdfcfund.com

HDFC Trustee Company Limited (the “Trustee”) presents its twelfth report and the audited financial statements of the Schemes of HDFC Mutual Fund (the “Fund”), for the year ended March 31, 2012.

The Fund continued to launch simple and innovative products / facilities for the investors during the year. It launched 1 open-ended fund of fund scheme and 4 closed-ended income schemes, as under:

The New Fund Offering of HDFC Gold Fund was launched in October 2011. The fund is a feeder fund which invests in HDFC Gold Exchange Traded Fund. For investors who cannot invest in HDFC Gold Exchange Traded Fund due to limited access to a secondary market broker or not having a demat account, HDFC Gold Fund Offers an avenue to invest in gold. Further, it offers retail investors an option to invest in gold through Systematic Investment Plan (SIP) and spread out their investment over a period of time in small lots. HDFC Gold Fund is a convenient platform for investing in gold as it offers inherent advantages over buying gold in a physical form like no storage cost, no theft risk etc.

The Fund also launched 4 close-ended income schemes viz., HDFC Fixed Maturity Plans – Series XVIII with 28 Fixed Maturity Plans (FMPs), HDFC Fixed Maturity Plans – Series XIX with 32 FMPs, HDFC Fixed Maturity Plans – Series XX with 19 FMPs and HDFC Fixed Maturity Plans – Series XXI with 19 FMPs. During the financial year, total of 72 FMPs were launched under the new/ existing FMP Schemes and listed on NSE / BSE, as applicable.

The Fund introduced HDFC Swing Systematic Transfer Plan (Swing STP) facility during the year. Swing STP is a systematic transfer plan which helps investors to transfer their money from select debt/liquid schemes to growth option of select equity schemes of HDFC Mutual Fund to arrive at the Target Market Value. The facility works on the principles of value cost averaging. The

objective is to take advantage of market fluctuations in a hassle free manner. Thus, the Plan automatically buys more when Net Asset Values (NAVs) are low and buys less when NAVs are high. It also redeems automatically once the value exceeds set targets. The target-linked approach enables investors to plan and reach their financial goals in a more stable and predictable manner.

In order to provide more options to the investors, transfers can be effected on any of the Business Days instead of only Fridays under the Weekly frequency of Systematic Transfer Plan (STP)/ Flex-STP facilities with effect from March 1, 2012.

During the year ending March 31, 2012, HDFC AMC managed 41 schemes of the Fund. The break-up being 10 open-ended equity schemes, 1 open-ended index linked scheme, 2 open-ended equity linked savings schemes, 3 open-ended balanced schemes, 9 open-ended income schemes, 1 interval income scheme, 1 open-ended gilt scheme, 2 open-ended liquid income schemes, 1 open-ended exchange traded fund, 1 open – ended Fund of Fund Scheme and 10 close-ended income schemes.

During the year ending March 31, 2012, HDFC Mutual Fund has recorded strong growth in Assets Under Management (AUM). The AUM as at March 31, 2012 was Rs.86,328.57 crore as against Rs.75,704.66 crore as at March 31, 2011, representing an increase of 14.03%.

The equity-oriented schemes’ assets constitute 36.90% of the total assets under management of the Fund as at March 31, 2012.

This year HDFC Mutual Fund became the largest Mutual Fund in India by Assets under Management.

The total number of investors has increased from 46,80,610 as at March 31, 2011 to 51,61,849 as at March 31, 2012, an increase of 10.28%.

2 HDFC Top 200 Fund

During the financial year, the Fund has witnessed 35.06% growth in the number of transactions through Systematic Investment Plans (SIP) and Systematic Transfer Plans (STP) from investors. The number of systematic transactions increased from 1,35,54,462 in. F.Y. 2010-11 to 1,83,07,006 in F.Y. 2011-12.

Dividends were declared under various schemes as per the provisions contained in the respective Scheme Information Documents, after considering the distributable surplus available under the respective Schemes. Details of dividends declared can be viewed on our website of the Fund viz. www.hdfcfund.com

1. SCHEME PERFORMANCE, FUTURE OUTLOOK AND OPERATIONS

SCHEME PERFORMANCE AND OPERATIONS

HDFC Top 200 Fund - An Open-ended growth Scheme

The performance of HDFC Top 200 Fund – Growth Option as at March 30, 2012 is presented below:

Period Returns (%) ^ $$

Benchmark Returns (%) #

Last 1 Year -6.12 -8.80Last 3 Years 30.34 24.38Last 5 Years 14.00 6.74Since Inception@ 22.98 13.27

^ Past performance may or may not be sustained in the future.

Above returns are compounded annualized (CAGR)

#Benchmark Index: BSE 200

$$ All dividends declared prior to the splitting of the Scheme into Dividend & Growth Options are assumed to be reinvested in the units of the Scheme at the then prevailing NAV (ex-dividend NAV).

@Date of Inception/Allotment: October 11, 1996

Face Value: Rs. 10 per unit

The Scheme outperformed the benchmark in FY 2011-12. Performance over 3, 5 years and since inception also continues to be healthy.

Since inception in October 1996, the Scheme has delivered 22.98% p.a. returns as compared to the benchmark returns of 13.27% p.a. over same period.

The net assets of the Scheme amounted to Rs.11,528.94 crore as at March 31, 2012 as against Rs.10,370.09 crore as at March 31, 2011.

As at March 31, 2012, 98.32% of the net assets were invested in equity and equity related instruments, 1.27% in Debt & money market instruments (including Fixed Deposits) and 0.41% in other current assets (including Reverse Repos’/ CBLO).

HDFC Top 200 Fund is a diversified equity fund. Its investment universe comprises of companies in BSE 200 Index. The Scheme may also invest in listed companies that would qualify to be in the Top 200 by market capitalization on the BSE even though they may not be listed on the BSE. The objective of the Scheme is to do better than BSE 200 Index with a high degree of consistency over medium to long term. The investment strategy of this Scheme is to keep nearly 60% matched positions with the benchmark. Matching is done on an aggregate basis and not on a stock-to-stock basis.

FUTURE OUTLOOK

Fund Outlook

India has been a nation of savers and savings as a percentage of GDP has historically always been high. However, the share of investments in the capital markets whether directly or through an intermediary has been low. One of the reasons for this is the low level of financial literacy. The potential for investments in mutual funds is very high and its share in the overall savings pie will increase with time. Mutual funds in India are in a nascent stage. We started operations in the year 2000 with limited number of branches and today have 116 branches. We have established leadership position in the mutual fund industry in terms of assets under management since the quarter ended September 2011 and maintained the same till date.

Our strength is the track record of the schemes that we manage, our brand

which has been established over the years and our capabilities in the fund management space. Going forward our aim is to continue to expand our geographical reach by opening new branches and conduct investor awareness programs with a view to focus on increasing our retail business in mutual funds. We offer a basket of products across asset categories like equity, debt and gold. In our suite of services we offer our investors the option to transact online, transact on mobile, receive account statements by email, multilingual account statement, etc. We intend to leverage on technology to offer convenience of transacting to our investors. We shall launch new products/ services, as and when the suitable opportunity is available and continue to offer superior investment solutions to our investors.

Equity Market Outlook

Investor sentiment has been hurt by weak global cues and a faltering domestic economic outlook.

Hopefully, some of the issues plaguing the Indian economy will get resolved during the course of the year. In India, policy makers are beginning to recognize the negative impact of their delayed decision making and hopefully this will result in a pick up in activity levels. With the global economy slowing, commodity prices have begun to correct. Any sustained correction in crude and gold prices would have a beneficial impact on the fiscal and current account deficit. It would give policy makers more flexibility and enable a more benign interest rate regime.

Sensex 1yr Rolling PE Chart

Source: CLSA

Despite reasonable economic growth and corporate performance in the last five years, the Sensex has hardly changed over that period. As a result valuations have come down sharply from a PE of 25x at the beginning of 2007 to 13x currently as compared to 10x at the bottom of early 2009. The 10-year average multiple for the Sensex is 15x. Thus, current valuations are below their long term average and for investors with a long term perspective and tolerance for volatility there lies an opportunity to capture not only earnings growth but also an improvement in valuations over time.

Debt Market Outlook

The global economy appears to be continuing in a phase of low growth. In 2012, the euro area is likely to enter into a mild recession, while growth and employment conditions in the US are improving. Growth in emerging markets, especially China and India, is slowing beyond what was anticipated but these two economies are still likely to provide some support for global recovery. Overall the world economy is unlikely to lapse into another recession even though growth may be marginally lower in 2012.

In the coming year FY2012-13, GDP growth for India is likely to be only slightly higher than in the previous year. Going forward the inflation scenario also remains challenging. Inflation is likely to remain within a narrow range with probability of further moderation being small. As per RBI, the non-inflationary growth rate for India has somewhat declined from the pre-crisis period and does not leave much room for monetary policy easing without aggravating inflation risks. High twin deficits (current account and fiscal deficit) has already prompted Standard & Poor’s to lower its outlook on India’s long term rating from stable to negative.

The outlook on interest rates in India is critically dependent upon credible and significant fiscal consolidation. The key determinant for this would be government’s ability to cap subsidies at 2% of GDP as envisaged in the Union Budget.

3 HDFC Top 200 Fund

2. BRIEF BACKgROUND OF SPONSORS, TRUST, TRUSTEE COMPANy AND ASSET MANAgEMENT COMPANy

a. SPONSORS

HDFC Mutual Fund is sponsored by Housing Development Finance Corporation Limited and Standard Life Investments Limited. The Sponsors are the Settlors of the Mutual Fund Trust. The Sponsors have entrusted a sum of Rs.1 lakh each to the Trustee as the initial contribution towards the corpus of the Mutual Fund.

HOUSINg DEVELOPMENT FINANCE CORPORATION LIMITED (HDFC)

HDFC Ltd. was incorporated in 1977 as the first specialised mortgage company in India. HDFC provides financial assistance to individuals, corporates and developers for the purchase or construction of residential housing. It also provides property related services (e.g. property identification, sales services and valuation), training and consultancy. Of these activities, housing finance remains the dominant activity. HDFC has a client base of around 13 lac borrowers, over 11 lac depositors, over 2.09 lac shareholders and over 25,000 deposit agents, as at March 31, 2012. The Company has a total asset size of Rs.1,67,250 crore as at March 31, 2012 and cumulative approvals and disbursements of housing loans of Rs.4,63,400 crore and Rs.3,73,646 crore respectively as at March 31, 2012.

HDFC had raised funds from international agencies such as the World Bank, IFC (Washington), USAID, DEG, ADB and KfW, international syndicated loans, domestic term loans from banks and insurance companies, bonds and deposits. HDFC has received the highest rating for its bonds and deposits program for the Seventeenth year in succession.

HDFC Life Insurance Company Limited, promoted by HDFC was the first life insurance company in the private sector to be granted a Certificate of Registration (on October 23, 2000) by the Insurance Regulatory and Development Authority to transact life insurance business in India.

For more information log on to www.hdfc.com.

STANDARD LIFE INVESTMENTS LIMITED

The Standard Life Assurance Company was established in 1825 and has considerable experience in global financial markets. The company was present in the Indian life insurance market from 1847 to 1938 when agencies were set up in Kolkata and Mumbai. The company re-entered the Indian market in 1995, when an agreement was signed with HDFC to launch an insurance joint venture.

On April 2006, the Board of The Standard Life Assurance Company recommended that it should demutualise and Standard Life plc float on the London Stock Exchange. At a Special General Meeting held in May voting members overwhelmingly voted in favour of this. The Court of Session in Scotland approved this in June and Standard Life plc floated on the London Stock Exchange on 10 July 2006.

Standard Life Investments was launched as an investment management company in 1998. It is the dedicated investment management company of the Standard Life group and is a wholly owned subsidiary of Standard Life Investments (Holdings) Limited, which in turn is a wholly owned subsidiary of Standard Life plc.

With global assets under management of approximately US$240.7 billion (£154.9 billion) as at December 31, 2011, Standard Life

Investments Limited is one of the world’s major investment companies, operating in the UK, Canada, Hong Kong, China, Korea, Ireland, Australia and the USA, and is responsible for investing money on behalf of five million retail and institutional clients worldwide.

In order to meet the different needs and risk profiles of its clients, Standard Life Investments Limited manages a diverse portfolio covering all of the major markets world-wide, which includes a range of private and public equities, government and company bonds, property investments and various derivative instruments. The company’s current holdings in UK equities account for approximately 1.8% of the market capitalisation of the London Stock Exchange.

For more information log on to the website www.standardlifeinvestments.com

b. HDFC MUTUAL FUND

HDFC Mutual Fund (the “Fund”) has been constituted as a trust in accordance with the provisions of the Indian Trusts Act, 1882, as per the terms of the trust deed dated June 8, 2000 with Housing Development Finance Corporation Limited (HDFC) and Standard Life Investments Limited as the Sponsors / Settlors and HDFC Trustee Company Limited, as the Trustee. The Trust Deed has been registered under the Indian Registration Act, 1908. The Trustee has entered into an Investment Management Agreement dated June 8, 2000 with HDFC Asset Management Company Ltd. to function as the Investment Manager for all the Schemes of the Fund. The Fund was registered with SEBI on June 30, 2000.

c. HDFC TRUSTEE COMPANy LIMITED

HDFC Trustee Company Limited (the “Trustee”) is the exclusive owner of the Trust Fund and holds the same in trust for the benefit of the Unit holders. The Trustee has been discharging its duties and carrying out the responsibilities as provided in the SEBI (Mutual Funds) Regulations, 1996 (the “Regulations”) and the Trust Deed. The Trustee seeks to ensure that the Fund and the Schemes floated thereunder are managed by HDFC Asset Management Company Limited in accordance with the Trust Deed, the Regulations, directions and guidelines issued by the SEBI, the Stock Exchanges, the Association of Mutual Funds in India and other regulatory agencies.

As at March 31, 2012, HDFC holds 100% of the paid-up equity share capital of HDFC Trustee Company Limited.

During the year under review, there has been no change in the composition of the Board of Directors of the Trustee.

d. HDFC ASSET MANAgEMENT COMPANy LIMITED

HDFC Asset Management Company Limited (“HDFC AMC”) is a public limited company incorporated under the Companies Act, 1956 on December 10, 1999. HDFC AMC has been appointed as the Asset Management Company of HDFC Mutual Fund by the Trustee vide Investment Management Agreement (IMA) dated June 8, 2000, and executed between HDFC Trustee Company Limited and HDFC AMC. HDFC AMC was approved to act as an Asset Management Company for HDFC Mutual Fund by SEBI vide its letter dated July 3, 2000. HDFC AMC is also registered with SEBI as a Portfolio Manager.

During the year under review, there has been no change in the composition of the Board of Directors of HDFC AMC.

4 HDFC Top 200 Fund

Shareholding Pattern

The equity shareholding pattern as at March 31, 2012 of HDFC AMC is as follows:

Name of the Equity Shareholders % of the paid up equity capital

Housing Development Finance Corporation Limited (HDFC)

59.98

Standard Life Investments Limited (SLI) 39.99

Other Shareholders (shares issued on exercise of stock options)

0.03

3. INVESTMENT OBJECTIVE OF THE SCHEME

Name of the Scheme Investment Objective

HDFC Top 200 Fund To generate long-term capital appreciation from a portfolio of equity and equity linked Instruments. The investment portfolio for equity and equity linked instruments will be primarily drawn from the companies in BSE 200 index.

4. SIgNIFICANT ACCOUNTINg POLICIES:

The Significant Accounting Policies form part of the Notes to the Accounts annexed to the Balance Sheet of the Schemes in the Full Annual Report. The Accounting Policies are in accordance with Securities Exchange Board of India (Mutual Funds) Regulations, 1996.

5 UNCLAIMED DIVIDENDS & REDEMPTIONS

Summary of No. of Investors & Corresponding amount as at March 31, 2012:

Name of the Scheme

Unclaimed Dividends Unclaimed Redemptions

Amount (Rs.)

No. of Investors

Amount (Rs.)

No. of Investors

HDFC Top 200 Fund 26,265,274 7,728 19,372,908 885

6. STATUTORy INFORMATION

a. Housing Development Finance Corporation Limited and Standard Life Investments Limited (the Sponsors) are not responsible or liable for any loss resulting from the operation of the Schemes of the Fund beyond their initial contribution of Rs.1 lakh each for setting up the Fund, and such other accretions / additions to the same.

b. The price and redemption value of the units, and income from them, can go up as well as down with fluctuations in the market value of its underlying investments.

c. Full Annual Report shall be disclosed on the website (www.hdfcfund.com) and shall be available for inspection at the Head Office of HDFC Mutual Fund. Present and prospective Unit holder can obtain copy of the trust deed, the full Annual Report of the Fund / HDFC AMC at a price.

7. ACKNOWLEDgEMENTS

The Trustee thanks SEBI, AMFI, the investors, Investor Service Centres, distributors, key partners, service providers, HDFC AMC and its employees for their commitment and looks forward to their continued support.

For HDFC Trustee Company Limited

Sd/-

Ranjan Sanghi

Director

Place : Mumbai

Date : June 8, 2012

5 HDFC Top 200 Fund

TO THE BOARD OF DIRECTORS OFHDFC TRUSTEE COMPANy LIMITEDHDFC MUTUAL FUND – HDFC TOP 200 FUND

We have audited the attached Balance Sheet of HDFC Mutual Fund – HDFC Top 200 Fund (the “Scheme”) as at March 31, 2012 and the related Revenue Account for the year ended on that date, annexed thereto. These financial statements are the responsibility of the Managements of the Trustee and the Asset Management companies. Our responsibility is to express an opinion on the financial statements. We report as follows:

a) Our audit was conducted in accordance with generally accepted auditing standards in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

b) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

c) The Balance Sheet and the Revenue Account dealt with by this report are in agreement with the books of account of the Scheme.

d) The Balance Sheet and the Revenue Account dealt with by this report have been prepared in accordance with accounting policies and standards as specified in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996.

e) Non - traded securities have been valued following the “Principles of Fair Valuation” approved by the Board of Directors of HDFC Trustee Company Limited and HDFC Asset Management Company Limited, at the yield as determined appropriate by the Valuation Committee. In our opinion, these valuations are fair and reasonable.

f) Without qualifying our opinion, we draw attention to note no. 2.2 in Schedule 8 of the financial statements wherein the Management of the HDFC Asset Management Company Limited has explained its rationale regarding Accounting Standards issued by the Institute of Chartered Accountants of India as not being applicable to mutual funds.

g) In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and give a true and fair view:

i. in the case of the Balance Sheet of the state of affairs of the Scheme as at March 31, 2012 and

ii. in the case of the Revenue Account, of the deficit of the Scheme for the year ended on that date.

For DELOITTE HASKINS & SELLS Chartered Accountants

(Registration No. 117365W)

Z. F. Billimoria Partner

(Membership No. 42791)Mumbai, June 8, 2012ZFB/PG/2012

AUDITORS’ REPORTRupees in Lacs

As atMar 31, 2012

As atMar 31, 2011

LIABILITIESUnit Capital 129,284.05 112,300.11 Reserves & Surplus

Unit Premium Reserves 180,302.01 121,332.41 Unrealised Appreciation Reserve - - Other Reserves 845,301.94 805,377.65

Loans & Borrowings - - Current Liabilities & Provisions

Provision for doubtful Income/Deposits - - Other Current Liabilities & Provisions 6,538.07 12,172.29

TOTAL 1,161,426.07 1,051,182.46 ASSETSInvestmentsListed Securities:

Equity Shares 1,133,580.84 1,010,127.70 Preference Shares - - Equity Linked Debentures - - Other Debentures & Bonds - - Securitised Debt securities - -

Securities Awaited Listing:Equity Shares - Preference Shares - - Equity Linked Debentures - - Other Debentures & Bonds - - Securitised Debt securities - -

Unlisted SecuritiesEquity Shares - - Preference Shares - - Equity Linked Debentures - - Other Debentures & Bonds - - Securitised Debt securities - -

Government Securities - - Treasury Bills - - Commercial Paper - - Certificate of Deposits 14,638.74 - Bill Rediscounting - - Units of Domestic Mutual Fund - 15,004.42 Foreign Securities - - Total Investments 1,148,219.58 1,025,132.12 Deposits 2,568.73 5,382.00 Other Current Assets

Cash & Bank Balance 911.56 6,846.78 CBLO/ Reverse Repo Lending 6,704.25 981.33 Others 3,021.95 12,840.23

Deferred Revenue Expenditure - - (to the extent not written off)

TOTAL 1,161,426.07 1,051,182.46

ABRIDgED BALANCE SHEET AS AT MARCH 31, 2012

6 HDFC Top 200 Fund

ABRIDgED REVENUE ACCOUNTFOR THE yEAR ENDED MARCH 31, 2012

Rupees in Lacs

Current year Previous year

INCOME

Dividend 16,910.01 12,060.10

Interest 1,859.55 1,474.00

Realised Gain / (Loss) on Foreign Exchange Transactions - -

Realised Gains / (Losses) on Interscheme sale of investments (28.39) 640.78

Realised Gains / (Losses) on External sale / redemption of investments 32,424.78 47,552.49

Realised Gains / (Losses) on Derivative Transactions 36.70 893.08

Other Income 14.59 133.69

( A ) 51,217.24 62,754.14

EXPENSES

Management fees 9,688.79 8,681.08

Service tax on Management fees 997.95 894.15

Transfer agents fees and expenses 1,377.18 1,335.67

Custodian fees 95.75 101.73

Trusteeship fees 118.89 96.51

Commission to Agents 5,842.57 3,747.21

Marketing & Distribution expenses 32.95 23.67

Audit fees 11.62 9.91

Interest on Borrowings - -

Other operating expenses 996.29 720.32

( B ) 19,161.99 15,610.25

NET REALISED gAINS / (LOSSES) FOR THE yEAR / PERIOD (A -B=C) 32,055.25 47,143.89

Change in Unrealised Depreciation in value of investments (D) 95,011.77 426.48

NET gAINS / (LOSSES) FOR THE yEAR / PERIOD (E=(C-D)) (62,956.52) 46,717.41

Change in unrealised appreciation in the value of investments (F) - 86,635.46

NET SURPLUS / (DEFICIT) FOR THE yEAR / PERIOD ( E + F = g ) (62,956.52) 133,352.87

Add: Balance transfer from Unrealised Appreciation Reserve ** - -

Less: Balance transfer to Unrealised Appreciation Reserve - -

Add / (Less): Equalisation 137,868.76 150,589.60

Total 74,912.24 283,942.47

Dividend appropriation

Income Distributed during the year / period 34,980.93 31,706.95

Tax on income distributed during the year / period - -

Retained Surplus / (Deficit) carried forward to Balance sheet 39,931.31 252,235.52 ** Amount transferred from Revenue Reserve

Notes to Accounts - Annexure I to the Abridged Balance Sheet and Revenue Account for the year ended March 31, 20121 Investments:- 1.1. All investments of the scheme except Government Securities and

Treasury Bills are registered in the name of the Trustees for the benefits of the Schemes Unitholders. All investments in Government Securities and Treasury Bills are held in an SGL account in the name of “HDFC Mutual Fund”.

1.2. Open Position of derivatives as at March 31, 2012 is Rs. Nil (as at March 31, 2011 was Rs. Nil).

1.3. Investments in Associates and Group Companies. Refer Annexure III 1.4. There are no open position of securities borrowed and / or lent by the

scheme as at March 31, 2012 and as at March 31, 2011. 1.5. Non Performing Assets as at March 31, 2012 is Rs. Nil (as at March 31,

2011 was Rs. Nil). 1.6. The Aggregate Unrealised Gain / (Loss) as at March 31, 2012 is Rs.

139,608.53 Lacs (as at March 31, 2011 was Rs. 234,673.79 Lacs) and as a percentage of net assets of the scheme as at March 31, 2012 is 12.11% (as at March 31, 2011 was 22.63%)

1.7. The Aggregate value of investments purchased and sold (including matured) during the financial year and as a percentage of average weekly net assets are as under:

Purchase Value (Rs. in Lacs)

% Sales Value (Rs. in Lacs)

%

Current Year 393,117.73 36.47 207,423.77 19.24 Previous Year 448,004.12 51.21 236,209.21 27.00

1.8. The aggregate fair value of non-traded investments, valued in ‘good faith’ by the Investment Manager on the basis of the valuation principles laid down by SEBI as at March 31, 2012 is Rs.14,638.74 Lacs (as at March 31, 2011 was Rs. Nil) and as a percentage of net assets of the scheme as at March 31, 2012 is 1.27% (as at March 31, 2011 was Nil).

2 Disclosure Under Regulation 25(8) of the SEBI Regulations and other applicable Regulations.

Refer Annexure IV3 There are no Unit Holders holding over 25% of the Net Asset Value of the

Scheme as at March 31, 2012 and as at March 31, 2011.4 Unit Capital movement during the year ended March 31, 2012. Refer Annexure II5 Previous year figures are regrouped wherever necessary.6 Expenses other than management fee are inclusive of service tax wherever

applicable.7 Contingent Liability as at March 31, 2012 is Nil (as at March 31, 2011 was

Rs. Nil). Annexure II - Unit Capital Movement

(Figures in Lacs)

Particulars March 31, 2012 March 31, 2011Units Rupees Units Rupees

(A) growth Option At the beginning of the year 3,046.236 30,462.35 2,062.325 20,623.24 Issued during the year 1,731.347 17,313.47 1,730.893 17,308.93

4,777.583 47,775.82 3,793.217 37,932.17 Repurchased during the year (811.528) (8,115.28) (746.982) (7,469.82)At the end of the year (A) 3,966.055 39,660.54 3,046.236 30,462.35 (B) Dividend Option At the beginning of the year 8,183.775 81,837.76 7,090.539 70,905.40 Issued during the year (including dividend reinvested) 2,608.677 26,086.77 3,409.473 34,094.74

10,792.452 107,924.53 10,500.013 105,000.14 Repurchased during the year (1,830.102) (18,301.02) (2,316.238) (23,162.38)At the end of the year (B) 8,962.350 89,623.51 8,183.775 81,837.76

TOTAL (A) + (B) 12,928.405 129,284.05 11,230.011 112,300.11

Face value of units is Rs. 10.

7 HDFC Top 200 Fund

Annexure III - Investments in Associates and group Companies (Rupees in Lacs)

Nature of instruments Bill Re-discounting Deep Discount Bonds Equity Shares Floating Rate Bonds/Notes

NCD/ Khokha

Name of the Issuer # Investment by the scheme

Aggregate Investment

by all schemes

Investment by the scheme


by all schemes



by all schemes



by all schemes



by all schemes

Bank of Baroda - - - - - 8,800.35 - - - -

Exide Industries Ltd. - - - - - 848.28 - - - -

GlaxoSmithkline Pharmaceuticals Ltd - - - - - - - - - -

Great Eastern Shipping Company Ltd. - - - - - - - - - -

HDFC Bank Ltd. - 631,393.14 - - 19,865.09 22,304.72 - - - -

Hindustan Unilever Ltd. - - - - 3,534.35 6,787.59 - - - -

Housing Development Fin. Corp. Ltd. - - - 110,793.26 - 1,701.37 - - - 54,876.14

Indian Hotels Company Ltd. - - - - - 1.56 - - - -

Mahindra & Mahindra Ltd. - - - - - 636.83 - - - -

Siemens Ltd. - - - - - 103.95 - - - -

Sun Pharmaceutical Industries Ltd. - - - - - 476.61 - - - -

Infrastructure Dev. Fin. Co. Ltd. - - - 11,841.27 - 217.33 - - - 19,415.08

Castrol India Ltd. - - - - - 98.95 - - - -

BOSCH LTD (Motor Industries Ltd.) - - - - 661.75 661.75 - - - -

Torrent Pharmaceuticals Ltd. - - - - - 4,127.52 - - - -

Brigade Enterprises Limited. - - - - - - - - - -

Zydus Wellness Ltd - - - - - 300.73 - - - -

Total - 631,393.14 - 122,634.53 24,061.19 47,067.54 - - - 74,291.22 # This disclosure has been made as Director(s) of the AMC is/are also a Director on the Board of the above Companies. The above investments were considered sound at the point of investment. Before making an investment, the same is evaluated on merits and on arm’s length basis and in accordance with the objective of the scheme. The investments under the respective Plans of HDFC Index Fund were made pursuant to their Investment Objectives.

Annexure IV - Disclosure under Regulation 25 (8) of the SEBI Regulations as amended

(i) Disclosure under Regulation 25(8) of the SEBI Regulation have been made in respect of amount paid to parties associated with sponsors in which the Asset Management Company or its major shareholders have a substantial interest as in accordance with the requirements given in SEBI’s Circular No. SEBI/IMD/CIR No 18 / 198647 /2010 dated 15th March, 2010.

(a) No brokerage on investments is paid to associates/related parties/group companies of sponsor/AMC during the current year and previous year.

(b) Commission on distribution of units paid to associates/related parties/group companies of sponsor/AMC

Current Year

Name of associate/related

parties/group companies of

Sponsor/AMC

Nature of Association/

Nature of relation

(% holding)

Business given Commission related to the scheme

Amount (Rs.in Lacs)

% of total business

received by the scheme

Amount (Rs.in Lacs)

% of total commission

related to the scheme

HDFC Bank Ltd.

Associate (23.15$)

45,680.25 10.05 - -

HDFC Sales Private Ltd.

Group company of sponsor (100 **) 24.44 @ - -

Housing Development Finance Corporation Ltd. Sponsor 0.69 @ - -

Previous Year

Name of associate/

related parties/group companies of

Sponsor/AMC

Nature of Association/

Nature of relation

(% holding)

Business given Commission related to the scheme

Amount (Rs.in Lacs)

% of total business

received by the scheme

Amount (Rs.in Lacs)

% of total commission

related to the scheme

HDFC Bank Ltd.

Associate (23.35$) 42,806.16 8.24 - -

HDFC Sales Private Ltd.

Group company of

sponsor (100 **) 45.37 @ - -

Housing Development Finance Corporation Ltd. Sponsor 0.09 @ - -

The commission includes commission on retained business of prior periods.

Pursuant to SEBI directives, no payment of commission has been made in respect of investments made by the Sponsor of the Mutual Fund.

The above commission amount represents payments made to associates and is netted for the amount borne by the AMC, if any.

@ less than 0.01 %

8 HDFC Top 200 Fund

KEy STATISTICS FOR THE yEAR ENDED MARCH 31, 2012

Current year

Previous year

1. NAV per unit (Rs.):OpenGrowth Option 215.228 183.728 Dividend Option 46.601 43.428 HighGrowth Option 218.732 236.075 Dividend Option 47.360 55.800 LowGrowth Option 168.052 175.860 Dividend Option 36.388 41.568 EndGrowth Option 201.373 215.228 Dividend Option 39.525 46.601

2. Closing Assets Under Management (Rs. in Lacs) End 1,152,894.02 1,037,009.16 Average (AAuM) 1,077,855.69 874,893.64

3. Gross income as % of AAuM1 4.75 7.17 4. Expense Ratio:

a. Total Expense as % of AAuM (plan wise)Growth Option 1.78 1.78 Dividend Option 1.78 1.78

b. Management Fee as % of AAuM (plan wise)Growth Option 0.90 0.99 Dividend Option 0.90 0.99

5. Net Income as a percentage of AAuM2 2.97 5.39 6. Portfolio turnover ratio (%) 3 19.24 27.00 7. Total Dividend per unit distributed during the year

Dividend OptionIndividual 4.000 4.000 Corporate 4.000 4.000

8. Returns (%) ^ $$: a. Last One Year

Growth Option (6.44)** 17.15**Benchmark # (9.28)** 8.15**

b. Since InceptionGrowth Option 22.97** 25.32** Benchmark # 13.27** 15.02**

** Compounded Annualised Returns# BSE 200$$ Adjusted for the dividends declared under the scheme prior to its splitting

into the Dividend and Growth Plans^ Past performance may or may not be sustained in the future1. Gross income = amount against (A) in the Revenue account i.e. Income.2. Net income = amount against (C) in the Revenue account i.e. NET

REALISED GAINS / (LOSSES) FOR THE YEAR / PERIOD3. Portfolio Turnover = Lower of sales or purchase divided by the Average

AuM for the year/period.4. AAuM=Average daily net assets

Auditors’ Report and Abridged Audited Results have been extracted from the Auditors’ Report, Audited Balance Sheet, Revenue Account and Notes to Accounts. Full Annual Report shall be disclosed on the website (www.hdfcfund.com) and shall be available for inspection at the Head Office of HDFC Mutual Fund. Unit holder can obtain a copy of the same at a price.

(ii) The Scheme has made payments to its associates, for services rendered by them, during the year as under: -

Entity Nature of Payment

Amount (Rs.in Lacs)

% of equity capital held by the sponsors

& its subsidiary/ associates as at

Current year

Previous year

March 31, 2012

March 31, 2011

HDFC Asset Management Company Ltd.

Investment Management and Advisory Fees 10,686.74 9,575.23 99.97# 99.97#

HDFC Trustee Company Ltd.

Trusteeship Fees 118.89 96.51 100** 100**

HDFC Bank Ltd.

Bank Charges 40.21 29.03 23.15$ 23.35$

HDFC Bank Ltd.

Professional Clearing Charges ~ 1.66 8.01 23.15$ 23.35$

Computer Age Management Services Pvt. Ltd.

Registrar and Transfer Agent Fees 1,377.18 1,335.67 ## ##

(iii) Amounts outstanding as at the Balance Sheet date :-

Entity Nature of Payment

Amount (Rs.in Lacs)

% of equity capital held by the sponsors & its subsidiary/ associates as at

March 31, 2012

March 31, 2011

March 31, 2012

March 31, 2011

Payable


Investment Management and Advisory Fees 83.63 25.35 99.97# 99.97#

HDFC Trustee Company Ltd.

Trusteeship Fees 0.93 23.48 100** 100**

HDFC Bank Ltd. Bank Charges 3.93 2.99 23.15$ 23.35$

HDFC Bank Ltd. Professional Clearing Charges ~ - 0.38 23.15$ 23.35$


Other Expenses

248.13 - 99.97# 99.97#

Computer Age Management Services Pvt. Ltd.

Registrar and Transfer Agent Fees 147.14 172.21 ## ##

The above commission amount represents payables to associates and is netted for the amount borne by the AMC, if any.

Receivable


Recovery of Expenses

- 0.16 99.97# 99.97#

# 59.98% by HDFC Ltd.; 39.99% by Standard Life Investments Ltd.

** Held by HDFC Ltd.

$ Held by HDFC Ltd. (including through HDFC Investments Ltd. and HDFC Holdings Ltd.)

## Held by HDFC Ltd. (15.09%), HDFC Bank Ltd. (10.17%), HDB Employees Welfare Trust (5.91%).

~ Professional Clearing Charges has been included in Custodian fees in the Abridged Revenue Account and in Other Current Liabilities & Provisions in Abridged Balance Sheet.

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLy.

9 HDFC Top 200 Fund

Have you…

Updated your Know Your Customer (KYC) information with us?

Provide us your latest KyC information

KYC is mandatory for all investments with effect from January 1, 2011. Unit holders have to keep their KYC information with HDFC Mutual Fund updated at all times. With effect from January 1, 2012, mutual funds have to conduct in-person verification (IPV) of their unit holders and collect additional information from all investors as part of the KYC process. Unit holders who have completed their KYC procedure on or before December 31, 2011 may visit an Investor Service Centre (ISC) of HDFC Mutual Fund / CAMS or their financial advisor*, if any, at the earliest for providing additional KYC information and undergoing IPV.

* AMFI / NISM certified distributor who has completed the process of “Know Your Distributor”

Done your bit towards the environment?

Provide us your latest contact information and opt for receiving documents by email

Update your email ID and mobile number in your folio(s) and experience the convenience of receiving transaction alerts and account statements promptly upon transacting. You can also request for scheduling an account statement regularly to your email ID. HDFC Mutual Fund offers eDocs facility which enables you to receive documents (account statements, annual reports etc.) by email. eDocs are convenient, easy to store / retrieve, free of cost as well as eco-friendly. After opting for the facility, if you need any document in the physical form, you may request for the same and we shall provide it to you.

Transact using HDFCMFOnline, HDFCMFInvestOnline and HDFCMFMobile

Our online transacting facility HDFCMFOnline enables unit holders to transact online on our website www.hdfcfund.com on a 24*7 basis. On HDFCMFOnline unit holders can purchase, redeem or switch units, register for systematic transactions, view their account details online, download account statements and view their account profile. Unit holders can login using their HDFCMF Personal Identification Number (HPIN) to access the wide array of information available online. The HPIN can be requested for by submitting a duly filled eServices form at any our ISCs.

HDFCMFInvestOnline is a facility that enables existing investors (KYC verified) to subscribe units of schemes of HDFC Mutual Fund or register for SIP online, without an HPIN.

Unit holders can effect payment for subscription of units using the net banking facility or debit cards issued by designated banks and they receive an instant email confirmation of their transaction.

HDFCMFMobile enables unit holders to transact using their mobile handsets. HDFC Mutual Fund was the first mutual fund in India to offer this facility. With HDFCMFMobile, investors can transact (subscribe* / redeem / switch) in our schemes, view folio holding summary, check NAV and request for account statement. This facility provides a novel platform for self-help to investors. This mode of transacting is convenient and provides investors the freedom to manage their investments on the go.

* transaction amount subject to limit, if any, set by the bank from where the unit holder invests

Experienced the convenience of receiving your dividend and redemption payout(s), if any, directly into your bank account?

Update your IFSC code for receiving payouts electronically vide NEFT

Save your time and experience the convenience of receiving your dividend and redemption payout(s), if any, directly into your bank account. Electronic payouts facilitate safer, faster, reliable and hassle-free credit of redemption / dividend into your bank account

Registered a nominee in your folio?

Submit the form for nomination

Nomination is highly recommended for all unit holders, especially those who hold units in a single name, so as to avoid any inconvenience, should there be an unforeseen event in future. By registering a nominee / nominees, the unit holding can get transmitted directly to the nominee with some simple procedures.

Checked if you have received the redemptions and dividends, if any, in your folio?

Check for any unclaimed redemptions / dividends

Unit holders should ensure that they have received all redemptions and dividends, if any, in their folio(s). If any payouts have not been received, our Investor Service Centres will assist unit holders in receiving any pending payouts.

Did you know?

Units of select schemes of HDFC Mutual Fund can be held in your demat account and are available for transactions on the stock exchanges.

For more information on the above and a suite of other facilities and services offered by HDFC Mutual Fund, visit your financial advisor, if any, our Investor Service Centre closest to you or log on to www.hdfcfund.com.

IMPORTANT!

10 HDFC Top 200 Fund



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Computer Age Management Services (P) Ltd.Unit : HDFC Mutual Fund“Rayala Towers”, Tower I, 6th Floor,158, Anna Salai, Chennai- 600 002.