abridged schemewise annual reports 2015 - 2016 - …...control, declining interest rates but weak...

HSBC CASH FUND 8

Abridged SchemewiseAnnual Reports 2015 - 2016

► INDEX HSBC Equity Fund 1 HSBC India Opportunities Fund 30 HSBC Midcap Equity Fund 60 HSBC Infrastructure Equity Fund 90 HSBC Tax Saver Equity Fund 120 HSBC Dynamic Fund 150 HSBC Dividend Yield Fund 180 HSBC Emerging Markets Fund 210 HSBC Asia Pacific (Ex Japan) Dividend Yield Fund 239 HSBC Brazil Fund 268 HSBC Managed Solutions 297 HSBC Global Consumer Opportunities Fund 345 HSBC MIP 374 HSBC Income Fund 414 HSBC Floating Rate Fund 451 HSBC Ultra Short Term Bond Fund 476 HSBC Cash Fund 502 HSBC Flexi Debt Fund 527 HSBC Capital Protection Oriented Fund 552 HSBC Fixed Term Series 584

HSBC Equity Fund 1

HSBC Equity FundAn Open-ended Diversifi ed Equity Scheme

Abridged Annual Report 2015 - 2016

1

HSBC Equity Fund 1

Dear Investor,

Greetings from HSBC Global Asset Management, India.

This is my fi rst offi cial communication with you since taking over as Chief Executive Offi cer. It gives me immense pleasure to connect with you through this letter.

Whoever coined the phrase, “may we live in interesting times”, must have had 2016 in mind. The recent RBI Financial Stability Report states that with an array of continuing global problems, global recovery remains fragile amidst weak and uneven growth, a slowdown in world trade and prevailing uncertainties in fi nancial and commodities markets. The Indian economy however, stands out at this juncture in terms of growth and investment potential. The prediction of a normal monsoon augurs well for 2016-17.

While globally the growth prospects seem challenging, India appears to be on the threshold of significant economic growth. Key reforms have been undertaken by the government and some important bills have been passed. Large allocations to roads, railways and power have increased the pace of industrial activity. Banks continue to grapple with errant borrowers and large overdues but structural reform and incentives for foreclosure provides hope for an economic turnaround.

The times are exciting, so also, challenging. As investors - be it as individuals or as businesses - we aspire to realise our dreams and carve out a better future. That’s why, we at HSBC Global Asset Management, India believe that it is your dreams we are caring for, not just your investments. As we focus on delivering your goals through our comprehensive range of investment solutions our proprietary fund management framework helps us take consistent investment decisions while mitigating risks.

Led by our long-term vision to be your preferred asset manager and guided by our values, we continue to focus on giving our best to our investors. As a part of our strategy to treat customers fairly, we continue to keep away the exit loads from all our mutual fund schemes. We believe investors should stay invested in our schemes due to the benefi ts they see, not due to penal levies.

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1 HSBC Equity Fund

Last year, HSBC Global Asset Management, India was awarded a mandate to manage provident fund monies over 3 years by The Employees’ Provident Fund Organisation, India (EPFO) for a third term. EPFO is one of the largest provident fund institutions in the world. We are the only foreign asset manager to the Employees’ Provident Fund Organisation. This effectively means that our funds under management/sub-advisory cumulatively account for close to USD 18.69 billion of assets making us one of the largest managers/sub-advisors of Indian assets (Data as on 31 March 2016, Source: HSBC Global Asset Management, India). The mandate confi rms our position as one of India’s leading asset managers.

I hope you share our excitement and the shared opportunity we have, together, to build a brighter future. In closing may I add that just like those little drops of water that make the mighty ocean, mutual fund SIPs can help you create an ocean of wealth over a period of time and help you make your dreams fl y.

Best Regards,

Ravi Menon

Chief Executive Offi cer

HSBC Global Asset Management, India

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HSBC Equity Fund 1

SPONSORHSBC Securities and Capital Markets (India) Private LimitedRegd. Offi ce: 52/60, Mahatma Gandhi Road, Fort, Mumbai - 400 001.

TRUSTEEBoard of TrusteesOffi ce: 16, Veer Nariman Road, Fort, Mumbai 400 001.

ASSET MANAGEMENT COMPANYHSBC Asset Management (India) Private LimitedCorp. & Regd. Offi ce: 16, Veer Nariman Road, Fort, Mumbai 400 001.

CUSTODIANStandard Chartered Bank (SCB)Corp. & Regd. Offi ce: Crescenzo, Securities Services, 3rd Floor, C-38/39, G-Block, Bandra Kurla Complex, Bandra East, Mumbai – 400051.

AUDITORS TO THE SCHEMEBSR & Co. LLPChartered AccountantsLodha Excelus, Apollo Mills Compound, N.M. Joshi Marg, Mahalaxmi, Mumbai 400 011.

LEGAL ADVISORSBharucha & PartnersBharucha & Partners, Hague Building, Sprott Road, Ballard Estate, Mumbai - 400 001.

REGISTRAR & TRANSFER AGENTSComputer Age Management Services (P) Ltd. (CAMS)No. 4. Nehru Nagar West, Kalapatti Main Road, Civil Aerodrome Post, Coimbatore - 641 014.

BOARD OF TRUSTEESMr. N. P. Gidwani - ChairmanMr. Nasser MunjeeMr. Manu TandonMr. Mehli MistriMr. Dilip J. ThakkarMs. Glenn Berry

BOARD OF DIRECTORSMs. Kishori J. Udeshi - ChairpersonMr. S. P. MustafaMr. Dinesh MittalMr. Ravi Menon - Chief Executive Offi cer

Note – Mr. Puneet Chaddha resigned as Chief Executive Offi cer with effect from October 31, 2015 and Mr. Ravi Menon was appointed as the Chief Executive Offi cer with effect from February 1, 2016.

Mr. Punnet Chaddha resigned from the Board of Directors with effect from May 24, 2016.

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1 HSBC Equity Fund

Trustees’ ReportFor the year ended March 31, 2016

The Trustees of HSBC Mutual Fund (“Fund”) present the fourteenth Annual Report and the audited abridged fi nancial statements of the schemes of the Fund for the year ended March 31, 2016.

1. SCHEME PERFORMANCE, FUTURE OUTLOOK AND OPERATIONS OF THE SCHEMES

a) Operations and Performance of the Schemes

HSBC Equity Fund (HEF) - an open-ended diversifi ed Equity SchemeHEF seeks to generate long-term capital growth from an actively managed portfolio of equity and equity related securities.

The net assets of HEF amounted to Rs. 567.22 crores as at March 31, 2016 as against Rs. 660.85 crores as at March 31, 2015. Around 97.98% of the net assets were invested in equities, 2.06% of the net assets were invested in reverse repos/CBLO and (-0.04%) in net current assets as at March 31, 2016.

HEF remained invested in a diversifi ed portfolio across large capitalization stocks. It has outperformed its benchmark over the FY 2015-16 due to superior stock selection. Selections in sectors like Financials, Healthcare and Industrials contributed to the outperformance during this period. Given that HEF is a true large cap fund, we believe that Nifty 50 is a more aligned and representative index for the scheme. Hence, we are considering to change the scheme benchmark to Nifty 50 which in turn will provide more appropriate performance comparison to investors.

Date of Inception : 10 December 2002 Absolute Returns (%) Compounded Annualized Returns (%)

Scheme Name & Benchmarks April 15 - March 16

April 14 - March 15

April 13 - March 14

Since Inception

HEF - Growth -6.34 27.89 16.82 22.00

S&P BSE 200 (Scheme Benchmark) -7.86 31.72 16.65 17.40

Nifty 50 (Standard Benchmark) -8.86 26.33 17.53 16.07

Rs. 10,000, if invested in HEF, would have become 9,366 12,789 11,682 142,040

Rs. 10,000, if invested in S&P BSE 200, would have become 9,214 13,172 11,665 85,036

Rs. 10,000, if invested in Nifty 50, would have become 9,114 12,633 11,753 73,047

Past performance may or may not be sustained in future. Returns data as on March 31, 2016. Data for the period April to March has been considered in all cases, except for Since Inception. ‘Since Inception’ returns are calculated on Rs. 10 invested at inception. Standard benchmark is prescribed by SEBI and is used for comparison purposes. Returns on Rs. 10,000 are point-to-point returns for the specifi c time period, invested at the start of the period. The returns provided above have been rounded off and hence there may be a minor difference between point-to-point returns vis-à-vis returns indicated above. Calculations are based on Growth NAVs.

b) Market Overview & Outlook(as furnished by HSBC Asset Management (India) Private Limited)

EQUITY OUTLOOKAfter a strong performance in the preceding fi nancial year, the fi nancial year 2015 - 2016 saw equity markets shedding part of these gains, tracking some of the global cues. From a domestic market perspective, there were headwinds in the form of second consecutive year of below normal monsoons, stagnation in the private investment cycle and impact of the clean-up of the banking system. This resulted in weak earnings momentum throughout the fi nancial year leading to downgrades. The tepid corporate performance coupled with the slow pace of crucial legislative reforms during the year disappointed market participants. The midcap index managed to outperform the large cap indices and recorded a marginal gain during the fi nancial year. On the fl ows side, the FII net fl ows moved into the negative territory (-USD 1.51 bn) as against strong net

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HSBC Equity Fund 1

Trustees’ ReportFor the year ended March 31, 2016 (Contd...)

infl ows of USD 18.08 bn seen in the previous fi scal. The domestic institutional investors however turned strong net buyers led by MFs (USD 12.10 bn of DII net infl ows) during the year as against net outfl ows of USD 3.71 bn seen in the previous fi scal.

Indices Returns (April 1, 2015 to March 31, 2016) 1 Year (%)

S&P BSE Sensex -9.4%

NSE CNX Nifty -8.9%

S&P BSE 100 -9.0%

S&P BSE 200 -7.9%

S&P BSE 500 -7.8%

S&P BSE Midcap 0.3%

Source: Bloomberg

Our view on the key aspects related to equity markets are presented below -

The macro narrative over fi nancial year 2015 -2016 was one of softening infl ation, twin defi cits coming under control, declining interest rates but weak growth. India is one of the very few Emerging Markets to have weathered the currency crisis well and it is now on the path of recovery. The macro adjustment process along with a weaker external environment and lacklustre agriculture / rural growth has meant that recovery of growth during the year was weaker than expected. From a domestic point of view, we have seen improvements in the macro data points over the past 2 years and the budget policy document has laid out a fi scal roadmap reaffi rming government’s focus on the fi scal consolidation front. We continue to believe that India is on a relatively better footing macro-wise vis-à-vis other emerging markets. However, the pace of this macro improvement translating to results on the ground has lagged expectations due to a sluggish pick up in the private capex given the domestic and global over capacities. Growth has faced headwinds from the slower than expected pace of corporate de-leveraging, and unforeseeable external factors, such as two years of bad monsoon and lack of global aggregate demand, delaying the expected economic recovery process in India.

In fi nancial year 2016 -2017, we expect a recovery, driven early by better margins - aided by lower input and interest costs and subsequently a volume recovery. Government led investment spending and urban consumption are likely to lead with private sector investments and rural consumption contributing later. On the policy front, Government has done its fair bit to improve the investment environment but has remained constrained on reforms requiring legislative action, as they lacked numbers in the Upper House of the Parliament. But this scenario is expected to improve going forward, on the back of recent state assembly election adjustments and we may see more policy reform announcements ahead. An above normal monsoon season should help in reviving the rural demand and that rounds up an optimistic year ahead from a domestic perspective.

Key factors to look out for in the short to medium term are the monsoon rainfall trends and the policy roadmap of the Government. Risks to this view are in the form of weak global cues led by ‘Brexit’ related concerns and soft global growth.

DEBT OUTLOOKFixed Income in Financial Year 2015-16 has seen volatility on various counts starting from INR depreciation, lower FII fl ows Fed rate hike fears, global events such as European Central Bank (ECB) rate cuts and china devaluation and supply of power distribution company bonds in large quantum by Government of India.

Infl ation has remained around target levels throughout the year. Infl ation print varied between 3.7% to 5.7% whereas the target for January 2016 was 6%. The lower infl ation numbers can be attributed to lower oil prices and control of food price infl ation through lower Minimum Support Price and supply side management.

RBI took pragmatic view and cut rates gradually by about 150 bps during this period. The last cut of 50 bps (for the fi nancial year) was in Sept. 2015. The rate cuts were not fully passed through in lending rates by similar quantum. The RBI on its part announced implementation of Marginal cost based Lending rate (MCLR) guidelines during the period.

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1 HSBC Equity Fund


Deposit and credit growth remained subdued throughout the period due to limited liquidity in the system. RBI continued to support stance of negative liquidity throughout the year. This combined with currency outfl ow in the intermittent period created headwinds for deposit growth. Credit growth remained subdued due to lower commodity prices, lower trade activity and slower economic growth in the country. Moreover, due to weaker economic outlook, stalled project pipeline and lower than capacity utilization project borrowing was very low. With government initiatives some road and rail projects started to pick up. However, this did not translate into demand for credit yet.

Currency (INR) depreciated during the period from about Rs. 62.50 to a USD to about Rs. 68.50 in Feb. 2016. Large part of the depreciation was attributable to low and volatile FII fl ows, devaluation of currency by China in the middle of the year and fear of Chines market collapse, which was extended to other emerging markets. Expectation of Fed hike in 2015 also contributed to risk off trade, which led to higher volatility.

Indian government decided to fund part of the distribution company debt through state government debt. The scheme is called UDAY and thus the bonds are also called UDAY bonds. These bonds presented opportunity for banks to convert their lower rated debt into sovereign rated tradable bonds. RBI also allowed these bonds status of HTM (held to maturity), if they are bought in primary markets. This provided respite for the banks holding larger amount of debt. However, huge supply of these bonds is expected put pressure on overall bond yields.

During month of December to February 2016, the supply overhang of UDAY bonds, Fed hike in December, expectation of higher than committed fi scal defi cit put pressure on yield curve, which moved higher by about 20-40 bps in matter of two months. The curve normalized immediately after the budget as the Government stuck to 3.5% fi scal defi cit target.

Market pre-empted most of the rate cuts by RBI and thus on actual instance reactions remained muted. Spreads for corporate bonds remained low as the enthusiasm from FPI for this segment is pretty low.

Prospects of the rate hike in US may create volatility in fi xed income market though the yield differential route and withdrawal of funds from emerging markets by global funds route. Britain exit from Euro may affect the markets again through risk off measures in market leading to withdrawal from emerging market.

In the coming year apart from the global factors, following domestic factors will play a key role in fi xed income markets:

� Liquidity: Liquidity will drive short end rates and eventually drive decisions leading to market interventions and CRR cuts. RBI has focused now on neutral liquidity stance and providing liquidity to system, which will bode well short end rates

� Infl ation: Infl ation numbers will determine future course of action for RBI and remains a critical variable for policy. We expect infl ation to ease in second quarter of FY 2016-2017

� Growth: GDP growth numbers as well as industrial activity will also determine the decision on policy.

� Fiscal Defi cit: Fiscal defi cit and government spending will determine the government borrowing and crowding out in interest rate curve. We expect prudence in government spending and prospect of spending on infrastructure to pick up which will crowd in private investment as well.

� Current Account Defi cit: Current Account Defi cit determines how the pressure on currency works and effective management of forex reserves.

� Currency levels: Level of INR will determine how the central bank reacts to the situation on the global crisis etc.

2. BRIEF BACKGROUND OF SPONSORS, BOARD OF TRUSTEES AND ASSET MANAGEMENT COMPANY

a) Sponsor HSBC Mutual Fund is sponsored by HSBC Securities and Capital Markets (India) Private Limited (HSCI).

The Sponsor is the Settler of the Mutual Fund Trust. The Sponsor has entrusted a sum of Rs. 1,00,000

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HSBC Equity Fund 1


(Rupees One Lakh only) to the Trustee as the initial contribution towards the corpus of the Mutual Fund.

HSCI offers integrated investment banking services, securities and corporate fi nance & advisory. HSCI is a member of the Bombay Stock Exchange Limited and National Stock Exchange (capital and derivative market segments). HSCI holds 100% of the paid up equity share capital of HSBC Asset Management (India) Private Limited.

b) HSBC Mutual Fund HSBC Mutual Fund (“the Mutual Fund” or “the Fund”) has been constituted as a Trust in accordance with

the provisions of the Indian Trusts Act, 1882 (2 of 1882) vide a Trust Deed dated February 7, 2002 with HSBC Securities and Capital Markets (India) Private Limited, as the Sponsor and the Board of Individual Trustees. The Trustee has entered into an Investment Management Agreement dated February 7, 2002 with HSBC Asset Management (India) Private Limited (AMC) to function as the Investment Manager for all the schemes of the Fund. The Fund was registered with SEBI vide registration number MF/046/02/5 dated May 27, 2002.

The Trust has been formed for the purpose of pooling of capital from the public for collective investment in securities/any other property for the purpose of providing facilities for participation by persons as benefi ciaries in such properties/investments and in the profi ts/income arising therefrom.

c) Board of Trustees (the Trustees) The Board of Trustees is the exclusive owner of the Trust Fund and holds the same in trust for the benefi t

of the unit holders. The Trustees have been discharging their duties and carrying out the responsibilities as provided in the SEBI (Mutual Funds) Regulations, 1996 and the Trust Deed. The Trustees seek to ensure that the Fund and the schemes fl oated there under are managed by the AMC in accordance with the Trust Deed, the said Regulations, directions and guidelines issued by the SEBI, the Stock Exchanges, the Association of Mutual Funds in India and other regulatory agencies.

d) Asset Management Company (the AMC) HSBC Asset Management (India) Private Limited (the Investment Manager or the AMC) is a private limited

company incorporated under the Companies Act, 1956 on December 12, 2001 having its Registered Offi ce at 16, V. N. Road, Fort, Mumbai 400 001. HSBC Asset Management (India) Private Limited has been appointed as the Asset Management Company of HSBC Mutual Fund by the Trustee vide Investment Management Agreement (IMA) dated February 7, 2002 and executed between the Trustees and the AMC. SEBI approved the AMC to act as the Investment Manager of the Fund vide its letter No. MFD/BC/163/2002 dated May 27, 2002. The paid-up equity share capital of the AMC is Rs. 61.59 crores. HSBC Securities and Capital Markets (India) Private Limited holds 100% of the paid up equity share capital of the AMC.

3. INVESTMENT OBJECTIVE OF THE SCHEMESThe investment objective of the respective schemes has been provided above under the heading “Scheme Performance, Future Outlook and Operation of the Scheme” (Refer Section 1).

4. SIGNIFICANT ACCOUNTING POLICIESThe accounting policies are in accordance with Securities Exchange Board of India (Mutual Funds) Regulations 1996.

5. UNCLAIMED DIVIDENDS & REDEMPTIONSSummary of number of investors & corresponding amount Scheme-wise as on March 31, 2016

SchemeUnclaimed Dividend Unclaimed Redemption

Amount (Rs.) No. of Investors

Amount (Rs.) No. of Investors

HSBC Equity Fund 8,626,167.97 1905 5,886,846.13 206

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1 HSBC Equity Fund


6. INVESTOR SERVICESThe number of offi cial points of acceptance of transactions is 197 locations. In addition to the offi ces of the Registrar & Transfer agents, the AMC has Investor Service Centres in 8 locations at its own offi ces - namely Mumbai, New Delhi, Kolkata, Bangalure, Pune, Ahmedabad, Hyderabad and Chennai. With a view to enhance customer convenience, the AMC has the facility of priority based servicing to key distributors through the enhancement of the Interactive Voice Reponses. AMC has a single Toll Free number which can be dialed from anywhere in India. The call centre service is being managed by the Registrar and Transfer Agents. The AMC continues to retain the outsourced back offi ce services with HSBC Electronic Data Processing India Private Limited.

On the distribution front, the number of empanelled distributors was 442 as on March 31, 2016. During the year, the AMC initiated tie-ups for online distribution of the Mutual Fund’s schemes with several channel partners taking the total number of such tie-ups to 42.

7. DETAILS OF INVESTOR GRIEVANCE REDRESSALThe details of the redressal of investor complaints received against HSBC Mutual Fund during April 2015- March 2016 are as follows:

Total Number of Folios: 1,71,939 #

Com-plaintCode

Type of complaint$ (a) No. of complaints pending at the

beginning of the year

(b) No. of com-plaints

receivedduring

theyear

Action on (a) and (b)

Resolved Non Actiona-

ble*

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months

I A Non receipt of Dividend on Units

1 1 2 0 0 0 0 0 0 0 0

I B Interest on delayed payment of Dividend

0 0 0 0 0 0 0 0 0 0 0

I C Non receipt of Redemption Proceeds

1 9 9 1 0 0 0 0 0 0 0

I D Interest on delayed payment of Redemption

0 0 0 0 0 0 0 0 0 0 0

II A Non receipt of Statement of Account/Unit Certifi cate

0 2 2 0 0 0 0 0 0 0 0

II B Discrepancy in Statement of Account

0 0 0 0 0 0 0 0 0 0 0

II C Data corrections in Investor details**

1 62 62 0 0 0 0 1 0 0 0

II D Non receipt of Annual Report/Abridged Summary

0 0 0 0 0 0 0 0 0 0

III A Wrong switch between Schemes

0 1 1 0 0 0 0 0 0 0 0

III B Unauthorized switch between Schemes

0 0 0 0 0 0 0 0 0 0 0

III C Deviation from Scheme attributes

0 0 0 0 0 0 0 0 0 0 0

III D Wrong or excess charges/load

0 0 0 0 0 0 0 0 0 0 0

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HSBC Equity Fund 1


Com-plaintCode

Type of complaint$ (a) No. of complaints pending at the

beginning of the year

(b) No. of com-plaints

receivedduring

theyear

Action on (a) and (b)

Resolved Non Actiona-

ble*

Pending

Within 30

days

30 - 60 days

60 - 180 days

Beyond 180 days

0 - 3 months

3 - 6 months

6 - 9 months

9 - 12 months

III E Non updation of changes viz. address, PAN, bank details, nomination, etc

0 4 4 0 0 0 0 0 0 0 0

IV Others 0 11 11 0 0 0 0 0 0 0 0

Total 3 90 91 1 0 0 0 1 0 0 0

Note:

# active folios$ including against its authorized persons / distributors / employees etc.** As per AMFI Best Practice Guidelines Circular No.25/2011-12 for Revisions in the Guidelines on

Standardization of Complaints/Grievances Reporting Procedure, If “Others” include a type of complaint which is more than 10% of overall complaints, then such a reason should be provided separately. Hence data corrections in Investor Details is included as a separate category

* Non actionable means the complaint is incomplete / outside the scope of the mutual fund

8. STATUTORY DETAILSa) The Sponsors are not responsible or liable for any loss resulting from the operation of the Schemes of

the Fund beyond initial contribution of Rs. 1 lakh for setting up the Fund.

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

c) Full Annual Report shall be disclosed on the website at www.assetmanagement.hsbc.com/in and shall be available for inspection at the Head Offi ce of the Mutual Fund. Present and prospective unit holders can obtain copy of the Trust Deed, the full Annual Report of the Scheme(s), the Annual Report of HSBC Asset Management (India) Private Limited and the text of the relevant Scheme(s) at a price.

9. ACKNOWLEDGEMENTSThe Trustees wish to thank the Unit holders of the Schemes for their support throughout the year and also thank the Government of India, the Securities and Exchange Board of India (SEBI), the Reserve Bank of India (RBI) and the Association of Mutual Funds in India (AMFI) for the guidance provided by them. The Trustees also appreciate the service provided by the Registrar and Transfer Agent, Fund Accountant, Custodian, Bankers, Distributors and Brokers. The guidance and services provided by the Auditors and advocates and the ebullience, sincerity and dedication of the employees of HSBC Asset Management (India) Private Limited is also appreciated.

The Trustees look forward to the continued support of everyone.

For and on behalf of the Board of Trustees of HSBC Mutual Fund

Sd/-

N. P. Gidwani

Chairman

MumbaiJuly 18, 2016.

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1 HSBC Equity Fund

To the Board of Trustees of

HSBC Mutual Fund - HSBC Equity Fund

Report on the Financial StatementsWe have audited the accompanying fi nancial statements of HSBC Equity Fund (the ‘Scheme’), which comprise the Balance Sheet as at 31 March 2016, the related Revenue Account and the Cash Flow Statement for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, annexed thereto.

Management’s Responsibility for the Financial StatementsThe Board of Trustees to the HSBC Mutual Fund (the ‘Board of Trustees’) and HSBC Asset Management (India) Private Limited (the ‘AMC’), being the investment manager to HSBC Mutual Fund (the ‘Fund’) (collectively referred as ‘Management’), are responsible for the preparation of these fi nancial statements that give a true and fair view of the fi nancial position and fi nancial performance of the Scheme in accordance with the accounting policies and standards specifi ed in the Ninth Schedule of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, as amended (the ‘Regulations’) and the accounting standards issued by the Institute of Chartered Accountants of India (the ‘ICAI’), to the extent applicable. This responsibility includes maintenance of adequate accounting records for safeguarding of the assets of the Scheme and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal fi nancial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the fi nancial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor’s ResponsibilityOur responsibility is to express an opinion on these fi nancial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the ICAI. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the fi nancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fi nancial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the fi nancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to preparation and fair presentation of the fi nancial statements, of the Scheme, in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Scheme’s internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Management, as well as evaluating the overall presentation of the fi nancial statements.

We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, and to the best of our information and according to the explanations given to us, the aforesaid fi nancial statements give the information required by the Regulations in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(i) in the case of the Balance Sheet, of the state of affairs of the Scheme as at 31 March 2016;

(ii) in the case of the Revenue Account, of the net surplus for the year ended on that date; and

(iii) in the case of the Cash Flow Statement, of the cash fl ows of the Scheme for the year ended on that date.

Independent Auditors’ Report

11

HSBC Equity Fund 1

Independent Auditors’ Report (Contd...)

Other MattersThe fi nancial statements of the Scheme for the year ended 31 March 2015, were audited by another auditor who expressed an unmodifi ed opinion on those statements on 16 July 2015.

Report on other Legal and Regulatory Requirements1 As required by Regulation 55(4) to the Regulations, we report that:

(a) We have obtained all information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of the audit;

(b) The Balance Sheet and Revenue Account have been prepared in accordance with the accounting policies and standards specifi ed in the Ninth Schedule of the Regulations.

2 As required by Clause 5(ii)(2) of the Eleventh Schedule of the Regulations, we report that the Balance Sheet, Revenue Account and Cash Flow Statement are in agreement with the books of account of the Scheme.

For B S R & Co. LLPChartered AccountantsFirm’s Registration No: 101248W/W-100022

Sd/-

Milind RanadePartnerMembership No: 100564

Place : MumbaiDate : July 18, 2016.

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1 HSBC Equity Fund

Rs. in Lakhs

HSBC EQUITY FUNDAs at

March 31, 2016As at

March 31, 2015

LIABILITIES1 Unit Capital 9,085.47 9,718.26 2 Reserves & Surplus2.1 Unit Premium Reserves (10,382.19) (11,663.88)2.2 Unrealised Appreciation Reserve 8,498.63 19,234.00 2.3 Other Reserves 49,509.44 48,780.52 3 Loans & Borrowings – – 4 Current Liabilities & Provisions4.1 Provision for doubtful Income / Deposits – – 4.2 Other Current Liabilities & Provisions 416.69 766.34

TOTAL 57,128.04 66,835.24

ASSETS1 Investments1.1 Listed Securities:1.1.1 Equity Shares 55,571.88 65,223.48 1.1.2 Preference Shares – – 1.1.3 Equity Linked Debentures – – 1.1.4 Other Debentures & Bonds – 50.88 1.1.5 Securitised Debt securities – – 1.2 Securities Awaited Listing:1.2.1 Equity Shares – – 1.2.2 Preference Shares – – 1.2.3 Equity Linked Debentures – – 1.2.4 Other Debentures & Bonds – – 1.2.5 Securitised Debt securities – – 1.3 Unlisted Securities1.3.1 Equity Shares – – 1.3.2 Preference Shares – – 1.3.3 Equity Linked Debentures – – 1.3.4 Other Debentures & Bonds – – 1.3.5 Securitised Debt securities – – 1.4 Government Securities – – 1.5 Treasury Bills – – 1.6 Commercial Paper – – 1.7 Certifi cate of Deposits – – 1.8 Bill Rediscounting – – 1.9 Units of Domestic Mutual Fund – – 1.10 Foreign Securities – –

Total Investments 55,571.88 65,274.36

2 Deposits 9.80 2.88 3 Other Current Assets3.1 Cash & Bank Balance 10.37 38.48 3.2 CBLO / Reverse Repo Lending 1,169.00 954.55 3.3 Others 366.99 564.97 4 Deferred Revenue Expenditure – –

(to the extent not written off)

TOTAL 57,128.04 66,835.24

Notes to Accounts – Annexure I

Abridged Balance Sheet as at March 31, 2016

13

HSBC Equity Fund 1

Abridged Revenue Account for the year ended March 31, 2016

Rs. in Lakhs

HSBC EQUITY FUNDCurrent

Year ended March 31, 2016

Previous Year ended

March 31, 2015

1 INCOME1.1 Dividend 792.42 844.53

1.2 Interest 112.61 87.70

1.3 Realised Gain / (Loss) on Foreign Exchange Transactions – –

1.4 Realised Gains / (Losses) on Interscheme sale of investments – –

1.5 Realised Gains / (Losses) on External sale / redemption of investments

7,095.46 7,371.19

1.6 Realised Gains / (Losses) on Derivative Transactions – –

1.7 Other Income 0.51 1.91

(A) 8,001.00 8,305.33

2 EXPENSES2.1 Management fees 971.22 847.10 2.2 Service tax on Management fees 135.46 104.68 2.3 Transfer agents fees and expenses 77.90 89.97 2.4 Custodian fees 8.15 7.24 2.5 Trusteeship fees 1.35 2.05 2.6 Commission to Agents 314.83 288.79 2.7 Marketing & Distribution expenses – 113.42 2.8 Audit fees 2.23 4.45 2.9 Investor Education Expenses 12.93 12.37 2.10 Other operating expenses 21.66 20.70 2.11 Less: Expenses to be Reimbursed by the Investment Manager – –

(B) 1,545.73 1,490.77

3 NET REALISED GAINS / (LOSSES)FOR THE YEAR (A – B = C) 6,455.27 6,814.56

4 Change in Unrealised Depreciation in value of investments and derivatives (D) – –

5 NET GAINS / (LOSSES) FOR THE YEAR [E = (C + D)] 6,455.27 6,814.56

6 Change in unrealised appreciation in the value of investments and derivatives (F)

(10,735.37) 8,002.32

7 NET SURPLUS / (DEFICIT) FOR THE YEAR (E + F = G) (4,280.10) 14,816.88

7.1 Add: Balance transfer from Unrealised Appreciation Reserve 10,735.37 –

7.2 Less: Balance transfer to Unrealised Appreciation Reserve – 8,002.32

7.3 Add / (Less): Equalisation (2,162.44) 4,375.82

7.4 Transfer from Reserve Fund 48,780.52 39,395.00

8 Total 53,073.35 50,585.37

9 Dividend Appropriation

9.1 Income Distributed during the year 3,563.91 1,804.85

9.2 Tax on income distributed during the year – –

10 Retained Surplus / (Defi cit) carried forward to Balance sheet

49,509.44 48,780.52

Notes to Accounts – Annexure I

14

1 HSBC Equity Fund

Key Statistics for the year ended March 31, 2016

HSBC EQUITY FUND Current


Previous Year ended

March 31, 2015

1. NAV per unit (Rs.):

Open

Regular Plan Growth Option 150.8367 117.5732

Regular Plan Dividend Option 31.5714 26.7521

Direct Plan - Growth Option 153.4636 118.7803

Direct Plan - Dividend Option 32.1591 27.0305

High





Low





End





2. Closing Assets Under Management (Rs. in Lakhs)

End 56,722 66,085

Average (AAuM)1 64,633 61,851

3. Gross income as % of AAuM2 12.38% 13.43%

4. Expense Ratio:

a. Total Expense as % of AAuM (Including service tax on Management fees) (planwise)

Regular Plan 2.61% 2.58%

Regular Plan Dividend Option 2.61% 2.58%

Direct Plan 1.90% 1.86%

Direct Plan - Dividend Option 1.90% 1.86%

b. Management Fee as % of AAuM (planwise)

Regular Plan 1.50% 1.37%

Regular Plan Dividend Option 1.50% 1.37%

Direct Plan 1.50% 1.37%

Direct Plan - Dividend Option 1.50% 1.37%

5. Net Income as a percentage of AAuM3 9.99% 11.02%

15

HSBC Equity Fund 1

HSBC EQUITY FUND Current


Previous Year ended

March 31, 2015

6. Portfolio turnover ratio4 1.03 0.48

7. Total Dividend per unit distributed during the year (planwise)

Retail



Corporate



8. Returns (%):

a. Last One Year

Scheme

Regular Plan Growth Option (6.3268) 28.2917

Direct Plan - Growth Option (5.6600) 29.1995

Benchmark

S&P BSE200 (7.8430) 31.7200

b. Since Inception

Scheme



Benchmark

S&P BSE200 17.4012 19.7400

1. AAuM=Average daily net assets

2. Gross income = amount against (A) in the Revenue Account i.e. Income

3. Net income = amount against (C) in the Revenue Account i.e. Net Realised Gains / (Losses) for the year

4. Portfolio Turnover = Lower of sales or purchase divided by the Average AuM for the year

Key Statistics for the year ended March 31, 2016 (Contd...)

16

1 HSBC Equity Fund

Notes to Accounts – Annexure ITo the Abridged Balance Sheet and Revenue Account for the Year ended March 31, 2016

HSBC EQUITY FUND

1 Investments: 1.1. It is confi rmed that investments of the Schemes are registered in the name of the Trustees for the

benefi t of the Scheme’s unitholders.

1.2. Open Positions of derivatives as of years ended March 31, 2016 and March 31, 2015 are NIL

1.3. Investments in Associates and Group Companies:(Rupees)

Issuer Instrument Type

Amount Aggregate Investments

by all schemes

Amount Aggregate Investments

by all schemes

2016 2015

Shriram Transport Finance Company Ltd.

Corporate Bonds / Debentures

– 402,773,900 – 1,607,345,350

Equities – 47,680,367 109,901,590 215,829,290

Bharti Airtel Ltd. Equities 272,462,600 421,271,947 12,741,680

1.4. Open positions of Securities Borrowed and / or Lent by the Scheme as of the years ended March 31, 2016 and March 31, 2015 are NIL.

1.5. NPAs as at years ended March 31, 2016 and March 31, 2015 are NIL.

1.6. Aggregate Unrealised Gain / Loss as at the end of the Financial Years March 31, 2016 and March 31, 2015 and percentage to net assets are as under :

Company Name Amount (Rs.) Percentage to Net Assets

Amount (Rs.) Percentage to Net Assets

2016 2015

Equity Shares

– Appreciation 933,315,831 16.45 2,070,137,793 31.33

– Depreciation 83,452,629 1.47 151,825,247 2.30

Non Convertible Debentures and Bonds Listed / Awaiting Listing

– Appreciation – 0.00 5,087,705 0.08

– Depreciation – 0.00 – –

1.7. The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2015-2016 (excluding accretion of discount) is Rs. 6,640,530,266 and Rs. 7,262,948,262 respectively being 102.74% and 112.37% of the average daily net assets.

The aggregate value of investment securities (excluding CBLO and Reverse Repos) purchased and sold (including matured) during the fi nancial year 2014-2015 (excluding accretion of discount) is Rs. 3,518,821,198 and Rs. 2,960,565,771 respectively being 56.89% and 47.87% of the average daily net assets.

1.8. Non-Traded securities in the portfolio of the Scheme as of the Years ended March 31, 2016 and March 31, 2015 are NIL.

2 Disclosure Under Regulation 25(8) of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 as amended

During the year 2015-16, The Hongkong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid collection / bank charges amounting to Rs. Nil and clearing member charges on derivative transactions amounting to Rs. Nil.

17

HSBC Equity Fund 1

During the year 2014-15, The Hongkong and Shanghai Banking Corporation Limited, an associate entity of HSBC Asset Management (India) Private Limited was paid collection / bank charges amounting to Rs. Nil and clearing member charges on derivative transactions amounting to Rs. Nil.

Commission paid to Sponsor / AMC and its associates / related parties / group companies

Name of Sponsor / AMC and its associates / related parties / group companies

Nature of Association / Nature of

Relation

Period Covered

Business Given [Rs. In Crores]

% of Total Business

received by the Fund

Commission paid [Rs.]

% of Total commission paid by the

Fund

The Hongkong and Shanghai Banking Corporation Limited

Associate of Investment Manager

2015-2016 13.16 6.52 4,961,813 16.50



Relation

Period Covered

Business Given [Rs. In Crores]

% of Total Business

received by the Fund

Commission paid [Rs.]

% of Total commission paid by the

Fund

The Hongkong and Shanghai Banking Corporation Limited

Associate of Investment Manager

2014-2015 19.22 8.02 4,456,257 16.75

Brokerage paid to Sponsor / AMC and its associates / related parties / group companies



relation

Period Covered

Value of Transactions

[Rs. In Crores]

% of total value of

transactions of the fund

Brokerage paid [Rs.]

% of total brokerage

paid by the fund

HSBC Securities and Capital Market (India) Private Limited

Sponsor 2015-2016 53.37 3.84 640,335 4.03



relation

Period Covered

Value of Transactions

[Rs. In Crores]

% of total value of

transactions of the fund

Brokerage paid [Rs.]

% of total brokerage

paid by the fund

HSBC Securities and Capital Market (India) Private Limited

Sponsor 2014-2015 23.62 3.64 283,236 3.68

The brokerage paid was at rates similar to those offered to other brokers / distributors

Further, The Hongkong and Shanghai Banking Corporation Limited, an associate of the Sponsor, is on the panel of bankers with whom HSBC Mutual Fund places money on fi xed deposits and enters into reverse repo transactions from time to time at competitive rates.

(i) Any underwriting obligations undertaken by the schemes of the mutual funds with respect to issue of securities associate companies - Nil. (Previous year also Nil)

(ii) Devolvement - Nil. (Previous year also Nil)

(iii) Subscription by the schemes in the issues lead managed by associate companies - Nil. (Previous year also Nil)

(iv) Subscription to any issue of equity or debt on private placement basis where the sponsor or its associate companies have acted as arranger or manager - Nil. (Previous year also Nil)

3 None of the Investors held more than 25% of the total net assets of the Scheme at the years ended March 31, 2016 and March 31, 2015.

Notes to Accounts - Annexure I (Contd...)To the Abridged Balance Sheet and Revenue Account for the Year ended March 31, 2016

18

1 HSBC Equity Fund

4 Unit Capital movement during the years ended March 31, 2016 and March 31, 2015**:

Description 2015-2016Opening Units Subscription Redemption Closing Units Face Value

per unit (Rupees)

Regular Plan Growth Option

16,585,344.452 1,047,143.153 3,578,340.214 14,054,147.391 10

Regular Plan Dividend Option

67,296,181.727 40,274,879.752 45,674,853.683 61,896,207.796 10

Direct Plan - Growth Option

12,801,065.001 4,328,936.741 2,831,945.152 14,298,056.590 10

Direct Plan - Dividend Option

499,987.238 162,287.394 55,998.048 606,276.584 10

Description 2014–2015Opening Units Subscription Redemption Closing Units Face Value

per unit (Rupees)

Regular Plan Growth Option

20,594,385.613 1,571,513.394 5,580,554.555 16,585,344.452 10

Regular Plan Dividend Option

77,351,789.447 7,219,550.779 17,275,158.499 67,296,181.727 10

Direct Plan - Growth Option

226,295.680 14,381,524.674 1,806,755.353 12,801,065.001 10

Direct Plan - Dividend Option

379,982.738 184,519.023 64,514.523 499,987.238 10

**Units held by the AMC (Seed Capital) in Direct Plan Growth Option as on 31/03/2016 is 33,261.112 & as on 31/03/2015 is NIL

5 Previous year fi gures have been re-grouped / re-arranged where necessary.

6 No contingent liabilities for the years ended March 31, 2016 and March 31, 2015.

7 Expenses other than Management Fees are Inclusive of Service Tax where applicable.

8 Other income of Rs. 51,153 represents Exit load (net of service tax) credited to the scheme and an Old Balance in Redemption Recon written off. (2015: Rs. 191,719 represents Exit load (net of service tax) credited to the scheme).

9 Investor Education Awareness In view of the AMFI Best Practices Guidelines Circular No. 56/2015-16, the IEF (Investor Education Fund)

accrual is set aside in a separate bank account and the consolidated balance across all schemes as on March 31, 2016. The break-up of which is as under:

Particulars Amount (Rs. in Lakhs)Opening Balance as on April 1, 2015 197Add: Accrual during the year / period 167Add: Investment Income FY 2015-16 16Less: Spent during FY 2015-16 380Closing Balance as on March 31, 2016 –

10 The Annual Accounts of the Schemes prepared in accordance with the accounting policies and standards specifi ed in the Ninth Schedule of The Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 has been approved by the Board of Directors of HSBC Asset Management (India) Private Limited and The Board of Trustees of HSBC Mutual Fund at their meetings held on July 14, 2015 and July 18, 2015 respectively. The audit report attached herewith refers to the said Annual Accounts. The aforesaid abridged accounts are an extract of the Annual Accounts and are prepared in accordance with SEBI Circular No. IMD/Cir8/132968/2008 dated July 24, 2008.

Notes to Accounts – Annexure I (Contd...)To the Abridged Balance Sheet and Revenue Account for the Year ended March 31, 2016

19

HSBC Equity Fund 1

INTRODUCTION The purpose of this document is to state the voting policy and procedures of HSBC Asset Management (India) Private Limited (“AMIN”), in connection with various company proposals on behalf of all the schemes of HSBC Mutual Fund (“the Fund”).

The power to vote on proposals presented to shareholders is considered by AMIN to be important, recognizing that certain material proposals, if implemented, may have a substantial impact on the market valuation of portfolio stocks. Further, we believe that high standards of corporate governance help companies to deliver sustainable returns to shareholders.

PROXY VOTING POLICIESa) Corporate governance matters including changes in the state of incorporation, merger and

other corporate restructuring and anti-takeover provisions

For all such material proposals, a careful review is undertaken by AMIN’s Investment team wherein the fund manager may be of the opinion that the proposal is not likely to enhance the economic value or cause indeterminate and unnecessary expense to shareholders. Based on the review, AMIN exercises a vote either in favour or against the management’s recommendation.

b) Changes to the capital structure, including preferred stock issuances

Such proposals relate to the approval of change in the capital structure of the company i.e. approval of increase or decrease in the authorized share capital of the company. Shareholders are the principal providers of the capital which companies need to grow and fl ourish. Companies should focus on the interests of existing shareholders as they contemplate changes to their capital structure. Existing shareholders should have a preemptive right to participate in signifi cant capital increases. AMIN will generally support the proposals where it believes that such proposal will enhance the rights of the common shareholders or will oppose such proposals where it believes that such proposal will adversely affect the rights of the common shareholders.

c) Stock option plans and other management compensation plans

Proposals relating to the stock option plans, performance share plans or other compensation plans are evaluated on case by case basis but AMIN generally votes against such proposals if the plan provides unreasonable or excessive compensation or the management of the company can materially alter the plan without shareholder’s approval.

d) Social and corporate responsibility issues

In case of proposals addressing social and corporate responsibility issues or other similar issues, AMIN will generally vote in a manner which is most likely to protect and promote the economic value of the underlying securities held under the schemes of the Fund. Such issues are evaluated on case by case basis.

e) Board of Directors

AMIN generally supports the management’s recommendation with respect to appointment of directors of the company that strengthens the independence of the board of directors. AMIN believes the Board should provide clear leadership and oversight to companies. AMIN favor’s separation of the roles of Chairman and Chief Executive and companies which comply with the requirements of Clause 49 of the Listing Agreement on corporate governance with respect to composition of Board. Discharge of directors is considered as a routine matter unless there are signifi cant concerns about the conduct of an individual director or the protection of shareholder interests. AMIN believes that Boards should establish committees to consider remuneration and audit issues.

f) Other matters

i) Confl ict of interest including investments in Group companies In the event, a proposal giving rise to a material confl ict of interest such as investments in group

companies of AMIN or matters pertaining to the investments in the companies that have subscribed to the schemes of HSBC Mutual Fund or any other similar matters, the fund manager will consult AMIN Chief Executive Offi cer (“CEO”) and Local Compliance Offi cer (“LCO”) and, if deemed necessary by the AMIN CEO or LCO, an advise of the Chairman of the Board of Trustees will be obtained with respect to voting.

Voting Policy and Procedures

20

1 HSBC Equity Fund

ii) Board remuneration

AMIN believes that ideally Executive remuneration should be determined by a remuneration committee comprising of majority of non-executive directors and the Chairman of the committee being an independent director. Remuneration should be set at the level required to reward and motivate company management and at the same time, incentives should be linked to challenging performance criteria. Companies should avoid excessive payments to departing directors.

iii) Shareholders Rights

Shareholders need suffi cient information to exercise their votes. This should be provided in a timely manner. AMIN may vote against resolutions where insuffi cient information has been provided to allow an informed vote. Resolutions for shareholder approval should not ‘bundle’ together separate matters.

iv) Audit and accounts

AMIN will generally support the re-election of external or statutory auditors unless there are concerns about their independence or commitment to protecting shareholder interests. Approval of the annual accounts is normally a routine matter, unless concerns have been raised about the accounts presented. It is sometimes an opportunity to express broader concerns about the company’s governance or information available to shareholders.

v) Voting in banking stocks

AMIN will not exercise voting rights in the stocks of the banking companies in India in accordance with the RBI approval letter dated May 23, 2008. However, in case of any changes/amendments to the RBI regulations applicable for foreign banks, the voting policy shall be reviewed and notifi ed to the Board of Directors and Board of Trustees.

vi) Non-contentious matters

AMIN generally supports the management’s recommendation for general non-contentious matters such as resolutions relating to the administrative arrangements of a company unless these would be detrimental to the rights of minority shareholders.

VOTING PROCESSAMIN will use the services of the leading voting research & platform provider Institutional Shareholder Services (ISS) to assist with the application of the internal voting policies & guidelines. ISS reviews company meeting resolutions and provides recommendations highlighting resolutions which contravene the internal guidelines & policies. So essentially, each of the voting recommendations will have HSBC voting guidelines & policies embedded in them.

These recommendations are reviewed by the investment team ahead of the voting deadline. Any amendments to the ISS recommendations will be notifi ed and voted accordingly through the ISS Proxy Exchange platform. In the absence of amendments from investment team personnel, votes will be automatically cast through the Proxy Exchange platform as per the ISS recommendations under the ‘implied consent’ model, with the consent of the respective Fund Manager / Analyst recorded internally through email. Thus, the voting process incorporates the element of a prior consent from the investment team for each voting proposal. Further, there will also be an option to abstain from voting in case of certain proposals where suffi cient information is not provided by the company management or any other similar reasons.

As the above voting process is based on AMIN’s internal voting guidelines & policies, it bypasses the need to have any additional internal authorization layer. Also, ISS recommendations are sent to the investments team before the voting deadline and amendments (if any) are notifi ed and voted through the Proxy Exchange platform, after due approvals from the Head of Equities or the Chief Investment Offi cer (CIO).

ADMINISTRATION AND RECORD KEEPINGRecord of actual exercise of votes in the meeting i.e. For / Against / Abstain on the management’s proposals along with the fund manager’s recommendation, will be maintained by the AMIN’s Operations department, with the output retrieved from the Proxy Exchange platform or those provided by ISS. The details of the votes in the prescribed format will be disclosed periodically in accordance with the requirements of SEBI (Mutual Fund) Regulations and guidelines issued from time to time.

21

HSBC Equity Fund 1

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56

78

10

Shar

ehol

ders

Pro

posa

ls

NIL

Cate

gory

:

1 A

ltera

tion

in M

emor

andu

m o

f Ass

ocia

tion

of th

e co

mpa

ny c

onta

inin

g M

ain,

Anc

illar

y an

d O

ther

obj

ects

of t

he c

ompa

ny

2 “R

ecei

ve, c

onsid

er a

nd a

dopt

the

Aud

ited

Bala

nce

Shee

t as

at y

ear e

nd th

e Pr

ofit

and

Loss

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for t

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ear e

nded

on

that

dat

e an

d th

e Re

port

s of

the

Dire

ctor

s an

d th

e A

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rs th

ereo

n”

3 D

ecla

ratio

n of

div

iden

d on

Ord

inar

y (E

quity

) Sha

res

and

/ or P

refe

renc

e sh

ares

4 A

ppoi

ntm

ent,

Re-a

ppoi

ntm

ent a

nd R

emov

al o

f Dire

ctor

s / A

dditi

onal

Dire

ctor

s an

d pr

omot

er re

late

d ac

tiviti

es.

5 A

ppoi

ntm

ent,

Re-a

ppoi

ntm

ent a

nd R

emov

al o

f Aud

itors

and

thei

r fix

ing

thei

r Rem

uner

atio

n

6 St

ock

Opt

ion

plan

s an

d ot

her m

anag

emen

t com

pens

atio

n m

atte

rs

7 Re

stru

ctur

ing

of S

hare

cap

ital (

incl

udin

g st

ock

split

s, c

onso

lidat

ion,

redu

ctio

n, e

tc o

f sha

re c

apita

l)

8 C

hang

es in

cap

ital s

truc

ture

incl

udin

g in

crea

ses

and

decr

ease

s of

Equ

ity &

pre

abridged schemewise annual reports 2015 - 2016 - …...control, declining interest rates but weak...

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