axis mutual fund - annual report 2009-10 - axismf from axis mutual fund trustee limited to the unit...

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Trustee Report

We have pleasure in presenting the First report on the schemes of Axis Mutual Fund forthe period ended March 31, 2010 alongwith audited financial statements for the schemesof the Axis Mutual Fund.The assets under management of the schemes of the Axis Mutual Fund as at March 31, 2010 were Rs. 2514.23 crores and the average asset under management duringthe said period was Rs. 3551.80 crores. The total number of investors under the schemesof Axis Mutual Fund as at March 31, 2010 were 152015, out of which 150976 was Retail

Scheme Name Inception/Allotment Date AUM (Rs. in crores) NAV (in Rs.) Performance (Since Inception)Scheme Returns^*$ Benchmark Returns@

Axis Liquid Fund October 9, 2009 342.44 Retail: 1003.3715 Retail: 0.34% Retail: 0.40%Institutional : 1019.3678 Institutional: 1.94% Institutional:1.54%

Axis Treasury Advantage Fund October 9, 2009 1,091.94 Retail: 003.2301 Retail: 0.32% Retail: 0.34%Institutional:1021.2399 Institutional: 2.12% Institutional:1.54%

Axis Tax Saver Fund December 29, 2009 22.13 10.8477 8.48% 1.17%Axis Equity Fund January 5, 2010 847.91 10.40 4% -0.55%Axis Short Term Fund January 22, 2010 141.39 Retail : 10.0652 Retail: 0.65% Retail: 0.61%

Institutional: 10.0840 Institutional: 0.84% Institutional:0.82%Axis Fixed Term Plan – Series 1 March 17, 2010 90.64 Retail: 10.0432 Retail : 0.43% 0.23%(384 days)

Comments on Scheme performance:Axis Liquid FundThe Scheme has delivered higher returns than its benchmark since inception while, at thesame time, adhering to various risk limits as mentioned in the Investment Policy. TheScheme has maintained judicious mix of cash equivalents and good quality money marketinstruments resulting in a higher accrual than the benchmark. The Scheme is rated mfA1+by ICRA. Axis Treasury Advantage FundThe Scheme has delivered higher returns than its benchmark since inception while, at thesame time, adhering to various risk limits as mentioned in the Investment Policy. TheScheme has maintained relatively higher duration than the benchmark as per its invest-ment objective, resulting in a higher accrual. The Scheme is rated mfA1+ by ICRA.Axis Tax Saver Fund and Axis Equity FundBoth the equity schemes have delivered higher returns than their respective benchmarkssince inception. This record has been consistently maintained while, at the same time, ad-hering to the equity process and various risk limits / targets as mentioned in the InvestmentPolicy. Axis Short Term FundThe Scheme has delivered higher returns than its benchmark since inception while, at thesame time, adhering to various risk limits as mentioned in the Investment Policy. Schemehas been maintaining a mix of money market and debt instruments across various seg-ments of yield curve. Scheme has been able to outperform its benchmark due to activemanagement with regards to entry-exit and identifying appropriate avenues for invest-ments amongst in available universe. The Scheme is rated mfAAA by ICRA.Axis Fixed Term Plan - Series I (384 days)The Scheme has delivered higher returns than its benchmark since inception while at thesame time adhering to risk limits mentioned in the Investment Policy. In line with its in-vestment objective, the scheme has invested in instruments maturing on or before thematurity date of the Scheme.

B. Future Outlook and Operations of the Schemes 1. Future OutlookEquity Market OutlookThe financial year 2009-10 has been one of the most fascinating years in the history of Indian capital markets. We started the year in the depths of wide ranging economic gloom, on the back of one of the severest global recessions the world has ever faced since the Great Depression. And we ended the year at the other extreme, on such an optimistic note, with the Sensex recording one of the best annual performances in its history.

The Indian government rolled out fiscal and monetary stimuli to counter balance the impact of the global recession on the economy. The various tax breaks and incentives coupled with government spending enabled India to withstand the global recession and record over 6.9% GDP growth, second only to China. With global economy stabilizing & currently at an inflection point, India is in a strong position to seize the growth opportunity.Another key event for India in the last financial year has been the decisive election victory of the UPA. This puts India on a strong footing in terms of its ability to have a potent government for the next 5 years which can take bold policy decisions. We are well poised to accelerate our growth rate, in FY 2010-11, to the last 5 years average of 9% p.a.During FY10, we recorded a credit growth of over 16%. We reckon that the ongoing infrastructure push by the government & the large capex plans of corporate India will accelerate in the next year further stepping up credit growth. This is expected to leadto an upward bias towards interest rates in FY11.The Reserve Bank of India, in order to combat inflation, hiked the Repo and Reverse Repo rate by 25 basis points. A higher than expected inflation figure of 9.89% in February 2010 along with a robust economic recovery mainly influenced the rate hikes.With an annual return of 80% in FY 2009-10, the Sensex posted one of its best performances ever. FIIs poured over 20 billion dollars into Indian markets in this fiscal making it one of the highest investments in any year.In FY10, Sensex companies are expected to report modest earnings growth. We expect earnings growth for corporate India to accelerate in FY11 with reported earnings growth of over 20%. We remain positive on the direction of the equity markets in the medium term and are fully invested in our equity funds.Debt Market OutlookInflation continued to shoot up in March with WPI inflation rising by 9.89% y-o-y in February, much higher than RBI’s target of 8.5%. This was led by higher fuel and manufactured products prices. Manufactured products prices outside of food continued to move up across the board, led by beverages, tobacco, textiles, rubber & plastic products, cement, iron & steel and aluminium. We expect WPI inflation to rise to double-digits in March as the full impact of the excise duty hikes, the increase in freight costs and adverse base effects are felt. Rising input costs and a closing output gap suggest that demand-pull core inflationary pressures are picking up fast. Therefore, even if food inflation tapers off, we expect non-food inflation to remain firm post March.The RBI surprised the market with an inter-meeting rate hike of Repo and Reverse Repo rates by 25 bps to 5% and 3.5%, respectively. Although the hike was expected, given the strong economic growth, and high inflation, the timing took the market bysurprise as RBI had repeatedly ruled out any mid-cycle actions unless conditions were

Investors and 1039 was Institutional Investors .As of March 31, 2010, Axis Asset Management Company Limited managed 6 schemes ofAxis Mutual Fund which includes 1 open ended liquid scheme, 2 open ended debtschemes and 1open ended equity linked savings scheme (ELSS), 1 open ended growthscheme and 1 close ended debt scheme.

REPORT FROM AXIS MUTUAL FUND TRUSTEE LIMITED TO THE UNIT HOLDERS OF THE SCHEMES OF AXISMUTUAL FUND

1. SCHEME PERFORMANCE, FUTURE OUTLOOK AND OPERATIONS OF THE SCHEMESA. Scheme Performance

The Assets Under Management (“AUM”), the net asset value (“NAV”) per unit and the performance of the schemes vis-à-vis their benchmark as on March 31, 2010 are as follows:

^ Past performance may or may not be sustained in future.@ Benchmark for the above schemesCRISIL Liquid Fund Index: Axis Liquid Fund, Axis Treasury Advantage Fund; S&P CNX Nifty: Axis Equity Fund; BSE 200: Axis Tax Saver Fund; CRISIL Short Term Bond Fund Index: AxisShort Term Fund, Axis Fixed Term Plan – Series I (384 days)* Returns and NAV of Growth Option$ Absolute Returns are shown as the Schemes have not completed one year since inceptionThe net asset value of the Scheme’s units are determined separately for units issued under the plans/options after including the respective unit capital and reserves and surplus.The net asset value disclosed above represents the computed NAV as on March 31, 2010, and not the last declared NAV.Returns for Retail Growth Option of Axis Liquid Fund, Axis Treasury Advantage Fund and Axis Short Term Fund are calculated from the date of introduction of plan i.e. March 2, 2010.

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Trustee Report

“unprecedented”. RBI cited rising inflationary pressures as the reason behind the move and that it wanted to anchor inflationary expectations. RBI noted that due to strong growth, rising commodity prices and rising capacity utilization, policy action was warranted to control any spillover of supply-side pressures into general inflation. Market reaction of yields across the curve was quite stable indicating that it seemed to have already priced in the hike.RBI announced its H1 borrowing calendar for FY11 on 28th March, much lower at Rs. 2.87 trillion (62.8% of the year’s total borrowing) versus Rs 2.95 trillion in H1 FY10 (65%) and below market expectations of Rs 3.0 trillion. The maturity profile of the calendar was much better than anticipated with 43% of the borrowing in H1 FY11, consisting of securities of less than 9-year maturity, versus 34% last year. The proportion of bonds with greater than 15-year maturity decreased from 23% last year to 20% this year. This should lower the average cost of financing for the government. Lower-than-expected borrowing led to a small pull back in G-sec yields.However, we believe that the current hike will not hamper the growth recovery process. RBI has said that the improvement in real economy gained momentum recently and expects the uptrend in production to be maintained. Given the lags in the policy impact, industrial growth is expected to remain strong. This move in fact was interpreted partially as RBI’s confidence in the robustness of growth recovery. Given the continuing high inflation & further monetary tightening, 10 year benchmark yield is expected to rise to above 8% in FY11. The demand for government paper will also depend on 1) the government’s execution of big ticket revenue items like disinvestment and 3G, which will define the market’s confidence in the budget gap target; 2) the trajectory of oil prices, and whether the government would allow the burden from oil under-recoveries to build up again; and 3) RBI’s management of the borrowing program.This is only an update on the markets in India. This update is as per the research and resultant outlook formed by Axis Mutual Fund and/or Axis Asset Management Company Limited and must not be construed as investment/financial advice. 2. Operations of the SchemesAxis AMC launched its operations with a strong emphasis on building its businesses on three strong pillars viz.:-1. Investor oriented communication2. Long term relationships that will help create and market products to the right client

with the need for the product3. Enduring wealth creation as opposed to just short term opportunistic wealth

creationIt launched its first schemes Axis Liquid Fund and Axis Treasury Advantage Fund in October 2009 and followed this up with the launch of its maiden equity scheme Axis Equity Fund. The scheme went on to collect Rs 9, crores from 139,335 investors in 620 Indian cities. It subsequently launched Axis Tax saver Fund, an Equity Linked Savings Scheme (ELSS). Axis AMC has 28 branches and uses 213 official points of acceptance of Karvy Computershare Pvt. Ltd, Fund’s Registrars, where transactions of investors are accepted. of its offices are official Points of Service (POS). At these centres Investors can get themselves certified as per prevalent “Know Your Customer” (KYC) guidelines.InitiativesThe website www.axismf.com was developed keeping in mind the need for investor oriented communication and thus presented product information in a simple and lucid manner easily understood by investors in various age groups. First time Investors could also further invest without having to remember PINs through the website. Axis Mutual Fund also launched its unique transaction facility over the Phone. ChristenedEasy Call it allows investors post registration to purchase, redeem or switch through the toll free number and that too without any PINs. The call centre does this also.The AMC today also offers the Any day SIP facility wherein investors can choose any day that is convenient for effecting monthly debits.

2. BRIEF BACKGROUND OF SPONSORS, FUND, THE TRUSTEE COMPANY AND AMCa. Axis Mutual FundAxis Mutual Fund (‘the Mutual Fund’) was set up as a Trust by the Settlors, Axis Bank Limited (‘Axis Bank’) on June 27, 2009 with Axis Mutual Fund Trustee Limited (‘the Trustee Company’)as a Trustee in accordance with the provisions of the Indian Trust Act, 1882 and is duly registered under the Indian Registration Act, 1908. The Trustee has entered into an Investment Management Agreement dated June 27, 2009 with Axis Asset Management Company Limited (‘Axis AMC’) to function as the Investment Manager for all the Schemes of the Mutual Fund. The Mutual Fund was registered with SEBI on September 4, 2009 vide Registration No. MF/061/09/02.b. Axis Mutual Fund Trustee LimitedThe Trustee is the exclusive owner of the Fund and holds the same in trust for the benefit of the unitholders. The Trustee has been discharging its duties and carrying out the responsibilities as provided in the Regulations and the Deed of Trust. The Trustee seeks to ensure that the Fund and the Schemes floated there under are managed by the AMC in accordance with the Deed of Trust, the Regulations, directions and guidelines issued by the SEBI, the Stock Exchanges, the Association of Mutual Funds in India and other regulatory agencies. c. SponsorAxis Mutual Fund is sponsored by Axis Bank Limited (“Axis Bank”). The Sponsor is the Settlor of the Mutual Fund Trust. The Sponsor has entrusted a sum of Rs. 1,00,000/-(Rs. One Lakh only) to Axis Mutual Fund Trustee Limited as the initial contribution towards the corpus of the Mutual Fund.

Axis Bank was the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established. The business of the Bank is divided into four segments: 1. Treasury, 2. Retail Banking, 3. Corporate/Wholesale Banking and 4. Other Banking Business. Axis Bank has strengths across these segments and is committed to adopting the best industry practices internationally in order to achieve excellence.Axis Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and other four PSU insurance companies, i.e. National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd. Axis Bank is focused on fueling its organic growth strategy through enlarging its geographical coverage of centres. It has aggressively forayed deeper into India covering district headquarters and other Tier II cities/ towns across the country. Axis Bank has a paid up capital of Rs. 405.17 crores as at 31 March 2010. The Bank has a robust balance sheet size of Rs 180647 crores (31 March 2010). The Bank is well capitalized, with a capital adequacy ratio of 15.80% (as at 31 March 2010), of which the Tier I capital adequacy ratio was 11.18%, while the Tier II Capital Adequacy Ratio was 4.62% . Axis Bank believes that widening geographical reach is critical for extending service delivery and for tapping growth opportunities in newer markets, especially in the areas of low-cost CASA deposits, lending to retail, agriculture and SME segments and the sale of third party products. Its distribution network now covers 643 centres in India and 4 centres in overseas (as at 31 March 2010) and today has over 1035 branches (including extension counters). The Bank is now present in all states and Union Territories (except Lakshadweep) and is present in 401 of the 626 district headquarters in the country. The Bank has a strong ATM network too with 4,293 ATMs (as at 31 March 2010).d. Axis Asset Management Company LimitedAxis Asset Management Company Limited (AMC) is a public limited company incorporated under the Companies Act, 1956 on January 13, 2009, having its Registered Office at 11th Floor, Nariman Bhavan, Vinay K. Shah Marg, Nariman Point, Mumbai – 400021. AMC has been appointed as the Investment Manager of the Mutual Fund by the Trustee vide Investment Management Agreement (IMA) dated June 27, 2009, and executed between the Trustee and the AMC.The AMC has obtained Certificate of Registration as Portfolio Manager under the SEBI (Portfolio Managers) Regulations, 1993 vide registration no. INP000003534 with effect from January 04, 2010(valid up to January 03, 2013). There is no conflict of interest between the Mutual Fund and the PMS activity.

3. INVESTMENT OBJECTIVES OF THE SCHEMESName of the Scheme Investment ObjectiveAxis Liquid Fund, To provide a high level of liquidity with reasonableAn Open ended Liquid Scheme returns commensurating with low risk through a

portfolio of money market and debt securities. However, there can be no assurance that the investment objective of the scheme will be achieved.

Axis Treasury Advantage Fund, To provide optimal returns and liquidity to theAn Open ended Debt Scheme Investors by investing primarily in a mix of money

market and short term debt instruments which results in a portfolio having marginally higher maturity as compared to a liquid fund at the same time maintaining a balance between safety and liquidity. However, there can be no assurance that the investment objective of the scheme will be achieved.

Axis Tax Saver Fund, To generate income and long-term capital An Open ended equity linked appreciation from a diversified portfolio ofsavings scheme with a lock-in predominantly equity and equity-related Securities.period of 3 years However, there can be no assurance that the

investment objective of the scheme will be achieved.

Axis Equity Fund, To achieve long term capital appreciation byAn Open ended growth scheme investing in a diversified portfolio predominantly

consisting of equity and equity related securities including derivatives. However, there can be no assurance that the investment objective of the scheme will be achieved.

Axis Short Term Fund, To generate stable returns with a low risk strategyAn Open ended Debt Scheme while maintaining liquidity through a portfolio

comprising of debt and money market instruments. However, there can be no assurance that the investment objective of the scheme will be achieved.

Axis Fixed Term Plan – Series 1 To generate returns through a portfolio of debt & (384 days), money market instruments that are maturing on or A Close ended debt scheme before the maturity of the respective plan(s).

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Trustee Report

4. Significant Accounting PoliciesAccounting policies are in accordance with Securities Exchange Board of India (Mutual Fund) Regulations 1996.

5. Unclaimed Dividends and Redemptions There are no unclaimed dividends and redemptions which are pending for more than 6 months as on March 31, 2010

6. Redressal of Complaints received against Axis Mutual Funds during 2009-10 Please refer ‘Annexure’ for the details on Redressal of Complaints received against Axis Mutual Fund during the F.Y. 2009-2010.

7. Statutory Informationa. The Sponsor is not responsible or liable for any loss resulting from the operation of

the Schemes of the Fund beyond their initial contribution (to the extent contributed) of Rs. 1,00,000/- 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.axismf.com) and shall be available for inspection at the Head Office of the mutual fund. Present and prospective unit holder can obtain copy of the trust deed, the full Annual Report of the Fund / AMC at a price.

ACKNOWLEDGEMENTSThe Trustee expresses its thanks to the unitholders of the Schemes for their overwhelmingresponse and also thanks the Government of India, the Securities and Exchange Board ofIndia (SEBI), the Reserve Bank of India (RBI) and the Association of Mutual Funds in India(AMFI) for the guidance provided by them. The Trustee also appreciates the service pro-

vided by the Registrar and Transfer Agent, Fund Accountant, Custodian, Bankers, Distrib-utors and Brokers. The guidance and services provided by the Auditors and legal advisors,sincerity and dedication of the employees of Axis AMC is also appreciated.

For Axis Mutual Fund Trustee Limited

Dr. T. C. Nair Kedar Desai B. GopalakrishnanDirector Director Director

Place: MumbaiDate : July 02, 2010

Rating Details ( Axis Liquid Fund and Axis Treasury Advantage Fund)This rating is the highest -credit-quality short-term rating assigned by ICRA to debt funds.Debt funds rated in this category carry the lowest credit risk in the short term and are sim-ilar to that of fixed income obligations of highest-credit-quality category with maturity ofup to one year. This rating should however, not be construed as an indication of the per-formance of the Mutual Fund scheme or of volatility in its returns. The rating should notbe treated as a recommendation to buy, sell or hold units issued by the Mutual Fund.

Rating Details (Axis Short Term Fund)Debt funds rated in this category carry the lowest credit risk, similar to that associatedwith long term-term debt obligations rated in the highest-credit-quality category. This rat-ing should however, not be construed as an indication of the performance of the MutualFund scheme or of volatility in its returns. The rating should not be treated as a recom-mendation to buy, sell or hold units issued by the Mutual Fund.

ANNEXURE - Disclosure of Investor Complaints

Complaint Type of complaint# (a) No. of (b) No of Action on (a) and (b)Code complaints complaints Resolved Non Pending

pending at the received Actionable*beginning during the Within 30-60 60-18 Beyond 0-3 3-6 6-9 9-12 of the year year 30 days days days 100 days months months months months

I A Non receipt of Dividend on Units 0 0 0 0 0 0 0 0 0 0 0I B Interest on delayed payment of Dividend 0 2 2 0 0 0 0 0 0 0 0I C Non receipt of Redemption Proceeds 0 1 1 0 0 0 0 0 0 0 0I D Interest on delayed payment of Redemption 0 0 0 0 0 0 0 0 0 0 0II A Non receipt of Statement of Account/ 0 714 714 0 0 0 0 0 0 0 0

Unit CertificateII B Discrepancy in Statement of Account 0 8 8 0 0 0 0 0 0 0 0II C Non receipt of Annual Report/Abridged 0 0 0 0 0 0 0 0 0 0 0

SummaryIII A Wrong switch between Schemes 0 0 0 0 0 0 0 0 0 0 0III B Unauthorized switch between Schemes 0 0 0 0 0 0 0 0 0 0 0III C Deviation from Scheme attributes 0 0 0 0 0 0 0 0 0 0 0III D Wrong or excess charges/load 0 0 0 0 0 0 0 0 0 0 0III E Non updation of changes viz. address, 0 2977 2977 0 0 0 0 0 0 0 0

PAN, bank details, nomination, etcIV Others 0 0 0 0 0 0 0 0 0 0 0

TOTAL 0 3702 3702 0 0 0 0 0 0 0 0

Redressal of Complaints received against Mutual Funds (MFs) during 2009-10

Total number of folios : 152015

# including against its authorized persons / distributors / employees, etc.* Non actionable means the complaints that are incomplete / outside the scope of the mutual fund

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Balance Sheet

Axis Axis Axis Axis Axis AxisEquity Tax Saver Liquid Treasury Short Fixed TermFund Fund Fund Advantage Term Plan - Series 1

Fund Fund Fund (384 days)Schedule March 31, 2010 March 31, 2010 March 31, 2010 March 31, 2010 March 31, 2010 March 31, 2010

SOURCES OF FUNDSUnit capital 2(b) & 3 8,152,460 203,995 3,378,818 10,839,337 1,406,645 902,481 Reserves and surplus 2(b) & 4 326,656 17,283 45,536 80,111 7,247 3,897 Current liabilities 5 103,394 14,052 361,420 11,845 1,419 89 TOTAL 8,582,510 235,330 3,785,774 10,931,293 1,415,311 906,467APPLICATION OF FUNDSInvestments 2(c), 6 & 18 7,491,962 166,196 3,458,457 10,503,037 1,375,900 906,055 Deposits 7 400,000 - - - - - Other current assets 8 690,548 69,134 327,317 428,256 39,411 412 TOTAL 8,582,510 235,330 3,785,774 10,931,293 1,415,311 906,467

The accompanying schedules are an integral part of this balance sheet. As per our report of even date.

For S. R. Batliboi & Co. For and on behalf of For and on behalf ofFirm Registration No. 301003E Axis Mutual Fund Trustee Limited Axis Asset Management Company LimitedChartered Accountants

per Surekha Gracias Dr. T. C. Nair Kedar Desai Rajiv Anand U. R. BhatPartner Director Director Managing Director & CEO Director Membership No. 105488

Mumbai B. Gopalakrishnan Ninad Deshpande Chandresh NigamDate: July 02, 2010 Director Fund Manager-Fixed Income Head-Investments

(All amounts in thousands of Rupees)

Consolidated Auditors’ Report

To the Trustee ofAXIS MUTUAL FUND:

1. We have audited the attached balance sheets of the schemes mentioned below (collectively ‘the Schemes’) as at 31 March 2010 and also the revenue accounts and cash flow statement, where applicable, for the period ended on that date annexed thereto. These financial statements are the responsibility of the management of Axis Asset Management Company Limited, the Schemes’ asset manager. Our responsibility is to express an opinion on these financial statements based on our audit. Presentation of these separate balance sheets and revenue accounts in a columnar form is not intended to indicate that they bear any relation to each other, or are interdependent or comparable in any way.

• Axis Mutual Fund - Axis Equity Fund• Axis Mutual Fund - Axis Tax Saver Fund• Axis Mutual Fund - Axis Liquid Fund• Axis Mutual Fund - Axis Treasury Advantage Fund• Axis Mutual Fund - Axis Short Term Fund• Axis Mutual Fund - Axis Fixed Term Plan – Series 1 (384 Days)

2. We conducted our audit in accordance with auditing standards generally accepted 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 misstatement. 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 management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. We report that:i. 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.ii. The balance sheets, revenue accounts and cash flow statement, where applicable,

dealt with by this report are in agreement with the books of account.iii. In our opinion, the balance sheets and revenue accounts dealt with by this report

have been prepared in conformity with the accounting policies and standards specified in the Ninth Schedule to the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 (‘the SEBI Regulations’).

iv. In our opinion, and on the basis of information and explanations given to us, the methods used to value non traded securities, where applicable, as at 31 March 2010 are in accordance with the SEBI Regulations and other guidelines issued by the Securities and Exchange Board of India as applicable and approved by the Board of Directors of Axis Mutual Fund Trustee Limited, and are fair and reasonable.

v. In our opinion, and to the best of our information and according to the explanations given to us, the said financial statements give the information required by the SEBI Regulations as applicable, and give a true and fair view in conformity with the accounting principles generally accepted in India:a) in the case of the balance sheets, of the state of affairs of the Schemes as at

31 March 2010;b) in the case of the revenue accounts, of the surplus for the period ended on

that date; andc) in the case of the cash flow statement, where applicable, of the cash flows

for the period ended on that date.

For S. R. Batliboi & Co.Firm Registration No. 301003EChartered Accountants

per Surekha GraciasPartner Membership No: 105488

Mumbai,

Date: July 02, 2010

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Cash FlowAXIS MUTUAL FUND - AXIS FIXED TERM PLAN - SERIES 1 (384 DAYS)Cash Flow Statement for the period 17 March 2010 to 31 March 2010

17 March, 2010 to 31 March, 2010A. Cashflow from operating activity

Net Surplus for the period 3,897 Adjustments for:-Increase in investments at cost (906,055)Increase in other current assets (359)Increase in current liabilities 89

Net cash used in operations ( A ) (902,428)B Cashflow from Financing Activities

Increase in unit capital 902,481 Net cash generated from financing activities ( B ) 902,481 Cash and Cash Equivalents as at the close of the period (A+B) 53 Component of cash and cash equivalents 31 March, 2010Collateralised lending 53


As per our report of even date.


per Surekha Gracias Dr. T. C. Nair Kedar Desai Rajiv Anand U. R. BhatPartner Director Director Managing Director & CEO Director

Membership No. 105488Mumbai B. Gopalakrishnan Ninad Deshpande Chandresh NigamDate: July 02, 2010 Director Fund Manager-Fixed Income Head-Investments

Revenue Account


Fund Fund Fund (384 days)Schedule November 16, 2009 December 29, 2009 October 09, 2009 October 09, 2009 January 22, 2010 March 17, 2010

to March 31, 2010 to March 31, 2010 to March 31, 2010 to March 31, 2010 to March 31, 2010 to March 31, 2010INCOMEDividend 2(d) 1,539 2 - - - - Interest 2(d) & 9 37,105 165 53,763 486,485 28,201 3,973 Profit on sale/redemption of 2(d) 23,277 2,248 - - - - investments, netTotal 61,921 2,415 53,763 486,485 28,201 3,973 EXPENSES AND LOSSES"Provision for net unrealised loss 2(c) & 6(ii) - - - - 59 - in value of investments"Loss on sale/redemption of 2(d) - - 1,765 13,969 8,098 - investments, netLoss on inter-scheme transfer/sale 2(d) 1,585 - 1,331 7,526 - - of investments, netManagement fee 10 26,082 104 1,294 11,340 1,594 56 Trusteeship fee 10 226 2 137 1,105 50 4 Custodian service charges 964 4 206 1,573 75 3 Registrar service charges 1,894 20 415 3,411 242 8 Commission to distributors 8,860 490 794 9,674 1,503 - Audit fee 209 3 52 536 45 11 Marketing expenses 7,136 - - - - - Other operating expenses 3,044 14 289 1,434 173 18 Less: Expenses reimbursed/to be (471) (153) (408) (1,925) (32) (24)reimbursed by AMCTotal 49,529 484 5,875 48,643 11,807 76 Surplus for the period 12,392 1,931 47,888 437,842 16,394 3,897 Equalisation (debit) / credit 2(e) 2,143 552 13,473 (185,869) (4,699) - Income distribution on capital account - - 12,332 140,835 3,649 - Income-tax on distributed income - - 3,493 31,027 800 - Surplus transferred to the balance sheet 4 14,535 2,483 45,536 80,111 7,246 3,897

The accompanying schedules are an integral part of this revenue account. As per our report of even date.


per Surekha Gracias Dr. T. C. Nair Kedar Desai Rajiv Anand U. R. BhatPartner Director Director Managing Director & CEO Director

Membership No. 105488Mumbai B. Gopalakrishnan Ninad Deshpande Chandresh NigamDate: July 02, 2010 Director Fund Manager-Fixed Income Head-Investments


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Schedule 1 & 2

1. BACKGROUNDAxis Bank Limited is the sponsor of Axis Mutual Fund ('The Fund').In accordance with the Securities and Exchange Board of India ('SEBI') (Mutual Funds)

Scheme Name Type of Scheme Investment objective of the scheme NFO Open to NFO Close Plans / optionsAxis Equity Fund Open ended growth scheme To achieve long term capital appreciation by November 11, 2009 Growth

investing in a diversified portfolio predominantly to Dividendconsisting of equity and equity related securities December 08, 2009including derivatives.

Axis Tax Saver Fund Open ended equity linked To generate income and long-term capital December 17, 2009 Growthsaving scheme appreciation from a diversified portfolio of to Dividend

predominantly equity and equity-related securities. December 21, 2009

Axis Liquid Fund Open ended liquid scheme To provide a high level of liquidity with reasonable October 08, 2009 Retail Growth returns commensurate with low risk through a to Retail Daily Dividendportfolio of money market and debt securities. October 08, 2009 Retail Weekly Dividend

Retail Monthly DividendInstitutional GrowthInstitutional Daily DividendInstitutional Weekly DividendInstitutional Monthly Dividend

Axis Treasury Advantage Fund Open ended debt scheme To provide optimal returns and liquidity to the October 08, 2009 Retail Growth investors by investing primarily in a mix of to Retail Daily Dividendmoney market and short term debt instruments October 08, 2009 Retail Weekly Dividendwhich results in a porfolio having marginally Retail Monthly Dividendhigher maturity as compared to a liquid fund Institutional Growthat the same time maintaining a balance between Institutional Daily Dividendsafety and liquidity. Institutional Weekly Dividend

Institutional Monthly DividendAxis Short Term Fund Open ended debt scheme To generate stable returns with a low risk January 19, 2010 Retail Growth

strategy while maintaining liquidity through a to Retail Regular Dividendportfolio comprising of debt and money market January 20, 2010 Retail Monthly Dividendinstruments. Institutional Growth

Institutional Regular DividendInstitutional Monthly Dividend

Axis Fixed Term Plan - Series 1 Close ended debt scheme To generate returns through a portfolio of debt February 25, 2010 Retail Growth(384 Days) & money market instruments that are maturing to Retail Dividend

on or before the maturity of the respective plan(s). March 08, 2010 Retail Quarterly DividendInstitutional GrowthInstitutional DividendInstitutional Quarterly Dividend

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe financial statements are prepared on the accrual basis of accounting, under the his-torical cost convention, as modified for investments, which are ‘marked-to-market’. Thesignificant accounting policies, which are in accordance with the SEBI Regulations andhave been approved by the Boards of Directors of the AMC and the Trustee, are statedbelow.(a) Determination of net asset value ('NAV')

The net asset value of the units of the schemes is determined separately for the units issued under the plans/options.For reporting the net asset values within the portfolio, the Scheme's daily income earned, including realised profit or loss and unrealised gain or loss in the value of investments, and expenses incurred, are allocated to the related plans/options in proportion to their respective daily net assets arrived at by multiplying day end outstainding units to previous day's closing net asset value

(b) Unit capitalUnit capital represents the net outstanding units at the balance sheet date, thereby reflecting all transactions relating to the period ended on that date.Upon issue and redemption of units, the net premium or discount to the face value of units is adjusted against the unit premium reserve of each plan/option, after an appropriate portion of the issue proceeds and redemption payouts is credited/debited to the equalisation account, a mandatory requirement for open ended mutual fund schemes.

(c) InvestmentsAccounting for investment and derivativesPurchase and sale of investments are recorded on the date of the transaction, at cost and sale price respectively, after considering brokerage, commission, and fees payable or receivable, if any.Right entitlements are recognised as investments on the ex-rights date.Bonus entitlements are recognised as investments on the ex-bonus date.Valuation of investmentsInvestments in equity shares which have traded during a period of thirty days (prior to the balance sheet date) are stated at the closing prices on the balance sheet date or the last trading day before the balance sheet date, as may be applicable, on The National Stock Exchange of India Limited (principal stock exchange). When on a particular valuation day, a security has not been traded on the principal stock exchange, the value at which it is traded on The Bombay Stock Exchange Limited is used.Market value of traded futures and options contracts shall be determined with respect to the exchange on which contracted originally, i.e. futures and options positions

contracted on the NSE would be valued at the closing price on NSE. The price of the same futures/options contract on BSE cannot be considered for the purpose of valuation unless the futures/options contract itself has been contracted on the BSEInvestments in Central Government securities (excluding treasury bills) are stated at their traded prices on the balance sheet date, as released by an independent agency suggested by the Association of Mutual Funds in India (‘AMFI’).Investments in fixed income securities are valued as follows:- Securities (including money market instruments and floating rate bonds) traded

on the balance sheet date (on the stock exchange where a majority (in terms of value) of these securities are principally traded), are stated at the last traded price.

- Money market instruments, floating rate bonds and debt securities less than 182 days from maturity not traded on the balance sheet date are valued at amortised cost based on purchase price or last quoted market price, which include discount /premium accrued on a straight line basis over the period to maturity/next reset date.

- Other fixed income investments are stated at their fair value as determined by the AMC in accordance with the SEBI Regulations and related circulars, based on the average of the comparative yields released by CRISIL and ICRA, as suggested by the Association of Mutual Funds in India (‘AMFI’).

(d) Revenue recognitionDividend income is recognised on the ex-dividend date.Interest income is recognised on an accrual basis.Profit or loss on sale/redemption of investments is determined on the basis of the weighted average cost method.

(e) Equalisation accountFor open ended schemes, when units are issued / redeemed, an appropriate amount which represents distributable surplus (excluding unit premium reserve) at the time of issue/redemption of units is credited / debited to equalisation account.The balance in equalization account is transferred to revenue account at the year end without affecting the net income of the Scheme.

(f) LoadExit load collected in excess of 1% of the redemption proceeds is credited to the scheme as income. Load other than the above is utilized to pay commission to distributors and other marketing and selling expenses. Any surplus is treated as income as and when considered appropriate.

(g) Cash and cash equivalentCash and cash equivalent includes balance with banks and collateralised lending.

Regulations, 1996 ('the SEBI Regulations'), the Board of Directors of Axis Mutual FundTrustee Limited ('the Trustee') has appointed Axis Asset Managenent Company Limited('the AMC') to manage the Fund's affairs and operate its Schemes.

SCHEDULES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED MARCH 31, 2010

The key features of the schemes of Axis Mutual Fund are as below:

Axi

s Eq

uity

Fun

d A

xis

Tax

Save

r Fu

nd

Axi

s Li

quid

Fun

d A

xis

Trea

sury

A

xis

Shor

t Te

rm

Axi

s Fi

xed

Term

A

dvan

tage

Fun

d **

Plan

- Se

ries

13.

Uni

t Ca

pita

l(3

84 D

ays)

Mar

ch 3

1, 2

010

Mar

ch 3

1, 2

010

Mar

ch 3

1, 2

010

Mar

ch 3

1, 2

010

Mar

ch 3

1, 2

010

Mar

ch 3

1, 2

010

Face

Val

ue R

s. 1

0Fa

ce V

alue

Rs.

10

Face

Val

ue R

s. 1

000

Face

Val

ue R

s. 1

000

Face

Val

ue R

s. 1

0Fa

ce V

alue

Rs.

10

Qua

ntit

y A

mou

nt

Qua

ntit

y A

mou

nt

Qua

ntit

y A

mou

nt

Qua

ntit

y A

mou

nt

Qua

ntit

y A

mou

nt

Qua

ntit

y A

mou

nt

Gro

wth

Opt

ion

Issu

ed - new

fund

offe

r71

0,27

7,40

8.82

0 7,

102,

774

617,

350.

000

6,17

4 - d

urin

g th

e pe

riod

21,2

91,0

16.9

15

212,

910

10,9

83,8

75.5

66

109,

839

Rede

emed

dur

ing

the

perio

d10

5,02

8,97

0.72

4 1,

050,

290

-

-

Out

stan

ding

, end

of p

erio

d62

6,53

9,45

5.01

1 6,

265,

394

11,6

01,2

25.5

66

116,

013

Div

iden

d O

ptio

nIs

sued - new

fund

offe

r19

8,77

8,10

3.63

3 1,

987,

781

779,

950.

000

7,80

0 - d

urin

g th

e pe

riod

10,0

48,7

74.7

62

100,

488

8,01

8,18

3.06

1 80

,182

Re

deem

ed d

urin

g th

e pe

riod

20,1

20,2

73.8

12

201,

203

-

-

Out

stan

ding

, end

of p

erio

d18

8,70

6,60

4.58

3 1,

887,

066

8,79

8,13

3.06

1 87

,982

Re

tail

Gro

wth

Opt

ion

Issu

edz

- new

fund

offe

r-

-

-

-

-

-

82,

220,

255.

000

822,

203

- dur

ing

the

perio

d92

,514

.758

92

,515

56

,365

.924

56

,366

74

6,35

4.46

6 7,

464

-

-

Rede

emed

dur

ing

the

perio

d78

,114

.595

78

,115

16

,343

.755

16

,344

39

9.31

0 4

-

-

Out

stan

ding

, end

of p

erio

d14

,400

.163

14

,400

40

,022

.169

40

,022

74

5,95

5.15

6 7,

460

82,2

20,2

55.0

00

822,

203

Reta

il D

ivid

end

Opt

ion

Issu

ed - new

fund

offe

r2,

083,

200.

000

20,8

32

- dur

ing

the

perio

d-

-

Re

deem

ed d

urin

g th

e pe

riod

-

-

Out

stan

ding

, end

of p

erio

d2,

083,

200.

000

20,8

32

Reta

il Re

gula

r D

ivid

end

Issu

ed - new

fund

offe

r-

-

- d

urin

g th

e pe

riod

874,

815.

974

8,74

8 Re

deem

ed d

urin

g th

e pe

riod

-

-

Out

stan

ding

, end

of p

erio

d87

4,81

5.97

4 8,

748

Reta

il D

aily

Div

iden

d O

ptio

nIs

sued -new

fund

offe

r-

-

-

-

-d

urin

g th

e pe

riod

52,9

68.5

87

52,9

69

141,

407.

862

141,

408

Rede

emed

dur

ing

the

perio

d44

,740

.303

44

,740

52

,153

.690

52

,154

O

utst

andi

ng, e

nd o

f per

iod

8,22

8.28

4 8,

229

89,2

54.1

72

89,2

54

Reta

il W

eekl

y D

ivid

end

Opt

ion

Issu

ed - new

fund

offe

r-

-

-

-

- d

urin

g th

e pe

riod

1,01

2.29

0 1,

012

3,57

2.42

9 3,

572

Rede

emed

dur

ing

the

perio

d1,

002.

287

1,00

2 7.

498

7 O

utst

andi

ng, e

nd o

f per

iod

10.0

03

10

3,56

4.93

1 3,

565

Reta

il M

onth

ly D

ivid

end

Opt

ion

Issu

ed - new

fund

offe

r-

-

-

-

-

-

- d

urin

g th

e pe

riod

825.

014

825

1,25

4.67

7 1,

255

1,37

5,66

3.39

8 13

,757

Re

deem

ed d

urin

g th

e pe

riod

509.

996

510

417.

000

417

-

-

Out

stan

ding

, end

of p

erio

d31

5.01

8 31

5 83

7.67

7 83

8 1,

375,

663.

398

13,7

57

Reta

il Q

uart

erly

Div

iden

d O

ptio

nIs

sued - new

fund

offe

r5,

944,

600.

000

59,4

46

- dur

ing

the

perio

d-

-

Re

deem

ed d

urin

g th

e pe

riod

-

-

Out

stan

ding

, end

of p

erio

d5,

944,

600.

000

59,4

46

7

Schedule 3(A

ll am

ou

nts

in t

ho

usa

nd

s o

f R

up

ees)

Axi

s Eq

uity

Fun

d A

xis

Tax

Save

r Fu

nd

Axi

s Li

quid

Fun

d A

xis

Trea

sury

A

xis

Shor

t Te

rm

Axi

s Fi

xed

Term

A

dvan

tage

Fun

d **

Plan

- Se

ries

13.

Uni

t Ca

pita

l(3

84 D

ays)

Mar

ch 3

1, 2

010

Mar

ch 3

1, 2

010

Mar

ch 3

1, 2

010

Mar

ch 3

1, 2

010

Mar

ch 3

1, 2

010

Mar

ch 3

1, 2

010

Face

Val

ue R

s. 1

0Fa

ce V

alue

Rs.

10

Face

Val

ue R

s. 1

000

Face

Val

ue R

s. 1

000

Face

Val

ue R

s. 1

0Fa

ce V

alue

Rs.

10

Qua

ntit

y A

mou

nt

Qua

ntit

y A

mou

nt

Qua

ntit

y A

mou

nt

Qua

ntit

y A

mou

nt

Qua

ntit

y A

mou

nt

Qua

ntit

y A

mou

nt

Inst

itut

iona

l Gro

wth

Opt

ion

Issu

ed - new

fund

offe

r4,

349,

910.

000

4,34

9,91

0 9,

146,

067.

000

9,14

6,06

7 22

2,46

3,09

5.93

6 2,

224,

631

- dur

ing

the

perio

d92

,656

,541

.392

92

,656

,541

81

,259

,512

.535

81

,259

,513

12

,106

,661

.875

12

1,06

7 Re

deem

ed d

urin

g th

e pe

riod

94,6

57,9

54.9

00

94,6

57,9

55

86,6

78,8

25.0

92

86,6

78,8

25

176,

988,

128.

887

1,76

9,88

1 O

utst

andi

ng, e

nd o

f per

iod

2,34

8,49

6.49

2 2,

348,

496

3,72

6,75

4.44

3 3,

726,

755

57,5

81,6

28.9

24

575,

817

Inst

itut

iona

l Reg

ular

Div

iden

dIs

sued - new

fund

offe

r-

-

- d

urin

g th

e pe

riod

28,6

96,9

36.4

31

286,

969

Rede

emed

dur

ing

the

perio

d-

-

O

utst

andi

ng, e

nd o

f per

iod

28,6

96,9

36.4

31

286,

969

Inst

itut

iona

l Dai

ly D

ivid

end

Issu

ed - new

fund

offe

r94

2,85

8.00

0 94

2,85

8 3,

205,

911.

075

3,20

5,91

1 - d

urin

g th

e pe

riod

64,7

89,8

69.7

30

64,7

89,8

70

30,6

67,7

06.5

09

30,6

67,7

07

Rede

emed

dur

ing

the

perio

d64

,727

,640

.421

64

,727

,640

27

,932

,790

.299

27

,932

,790

O

utst

andi

ng, e

nd o

f per

iod

1,00

5,08

7.30

9 1,

005,

088

5,94

0,82

7.28

5 5,

940,

828

Inst

itut

iona

l Wee

kly

Div

iden

d O

ptio

nIs

sued - new

fund

offe

r-

-

76

,910

.000

76

,910

- d

urin

g th

e pe

riod

12,5

54.0

06

12,5

54

1,42

0,95

0.33

0 1,

420,

950

Rede

emed

dur

ing

the

perio

d12

,370

.325

12

,370

47

0,31

4.99

4 47

0,31

5 O

utst

andi

ng, e

nd o

f per

iod

183.

681

184

1,02

7,54

5.33

6 1,

027,

545

Inst

itut

iona

l Mon

thly

Div

iden

d O

ptio

nIs

sued - new

fund

offe

r-

-

13

,281

.000

13

,281

63

,972

,260

.116

63

9,72

3 - d

urin

g th

e pe

riod

2,22

2.31

5 2,

222

35,3

15.3

45

35,3

15

4,94

0,86

6.62

7 49

,409

Re

deem

ed d

urin

g th

e pe

riod

125.

524

126

38,0

65.9

39

38,0

66

17,5

23,8

21.8

07

175,

238

Out

stan

ding

, end

of p

erio

d2,

096.

791

2,09

6 10

,530

.406

10

,530

51

,389

,304

.936

51

3,89

4 To

tal

Issu

ed - new

fund

offe

r90

9,05

5,51

2.45

3 9,

090,

555

1,39

7,30

0.00

0 13

,974

5,

292,

768.

000

5,29

2,76

8 12

,442

,169

.075

12

,442

,169

28

6,43

5,35

6.05

2 2,

864,

354

90,2

48,0

55.0

00

902,

481

- dur

ing

the

perio

d31

,339

,791

.677

31

3,39

8 19

,002

,058

.627

19

0,02

1 15

7,60

8,50

8.09

2 15

7,60

8,50

8 11

3,58

6,08

5.61

1 11

3,58

6,08

6 48

,741

,298

.771

48

7,41

4 -

-

Re

deem

ed d

urin

g th

e pe

riod

125,

149,

244.

536

1,25

1,49

3 -

-

15

9,52

2,45

8.35

1 15

9,52

2,45

8 11

5,18

8,91

8.26

7 11

5,18

8,91

8 19

4,51

2,35

0.00

4 1,

945,

123

-

-

Out

stan

ding

, end

of p

erio

d81

5,24

6,05

9.59

4 8,

152,

460

20,3

99,3

58.6

27

203,

995

3,37

8,81

7.74

1 3,

378,

818

10,8

39,3

36.4

19

10,8

39,3

37

140,

664,

304.

819

1,40

6,64

5 90

,248

,055

.000

90

2,48

1

8

Schedule 3(A

ll am

ou

nts

in t

ho

usa

nd

s o

f R

up

ees)

** D

etai

ls o

f la

rge

ho

ldin

gs

(ove

r 25

% o

f th

e N

et A

sset

s o

f th

e Sc

hem

e) a

s o

n M

arch

31,

201

0:

Sch

eme

Nam

eN

o. o

f In

vest

ors

Ho

ldin

g a

s %

to

Net

Ass

ets

Axi

s Tr

easu

ry A

dvan

tage

Fun

d -

Inst

itutio

nal D

aily

Div

iden

d O

ptio

n1

34.1

2%

9

Schedule 4 to 6


Fund Fund Fund (384 days)March 31, 2010 March 31, 2010 March 31, 2010 March 31, 2010 March 31, 2010 March 31, 2010

4. RESERVES AND SURPLUSUnit premium reserveNet premium/discount on issue/redemption of units (18,156) 7,437 13,473 (185,869) (4,698) - Transferred (to) / from equalisation account (2,143) (552) (13,473) 185,869 4,699 - Balance, end of period (20,299) 6,885 - - 1 - Unrealised appreciation reserveUnrealised appreciation in value of investments 332,420 7,915 - - - - Balance, end of period 332,420 7,915 - - - - Retained surplusSurplus transferred from revenue account 14,535 2,483 45,536 80,111 7,246 3,897 Balance, end of period 14,535 2,483 45,536 80,111 7,246 3,897Total reserves 326,656 17,283 45,536 80,111 7,247 3,897 The share of the plans in the reserves and surplus is as follows:Growth Option 251,066 9,834 - - - - Dividend Option 75,590 7,449 - - - - Retail Growth Option - - 49 130 49 3,550 Retail Regular Dividend - - - - 6 90 Retail Weekly Dividend Option - - - 1 - - Retail Monthly Dividend Option - - - 1 48 - Retail Quarterly Dividend Option - - - - - 257 Institutional Growth Option - - 45,485 79,156 4,835 - Institutional Regular Option - - - - 420 - Institutional Weekly Dividend Option - - - 809 - - Institutional Monthly Dividend Option - - 2 14 1,889 -

326,656 17,283 45,536 80,111 7,247 3,897 5. CURRENT LIABILITIES

Amount due to AMC for management fees 7518 10 181 2484 492 55Sundry creditors for units redeemed by investors:- Lateral shift payable 1,903 - 360,642 19 - - - Others 45,333 - 25 2,451 - -

Interscheme payable 18,435 - - - - - Contract for purchase of investments - 13,957 - - - - Dividend payable on units - - - 77 82 - Dividend tax payable - - 47 331 - - Commission to distributors payable 9,422 - 307 4,367 587 - Load pending utilisation 12,541 - - - 3 - Other current liabilities 8,242 85 218 2,116 255 34

103,394 14,052 361,420 11,845 1,419 89 6. INVESTMENTS

Equity shares 7,033,273 166,196 - - - - Privately placed / unlisted debentures and bonds - - 70,000 500,000 - 80,000 Listed debentures and bonds - - - - 407,317 - Certificates of deposit 456,291 - 3,089,135 8,038,772 968,583 196,168 Commercial paper - - 299,322 1,964,265 - 629,887 Futures and options 2,398 - - - - -

7,491,962 166,196 3,458,457 10,503,037 1,375,900 906,055




Equity shares- appreciation 368,685 8,933 - - - - - depreciation 40,220 1,018 - - - - Listed debentures and bonds- appreciation - - - - 252 - - depreciation - - - - 311 - Futures and options- appreciation 3,955 - - - - - - depreciation - - - - - -


(i) All the investments are held in the name of the Scheme, as per clause 7 of the Seventh Schedule under Regulation 44(1) of SEBI (Mutual Funds) Regulations, 1996.

(ii) Aggregate appreciation and depreciation in the value of investments are as follows:

10

Schedule 6 to 9



7. DEPOSITSDeposit with scheduled bank (Margin deposit for derivatives) 400,000 - - - - -

400,000 - - - - - 8. OTHER CURRENT ASSETS

Balances with banks in current accounts 25,424 5,310 89 661 190 - Sundry debtors for units issued to investors:- Lateral shift receivable - 144 - 360,663 14 - - Others 19,067 30,111 - 14,713 14,978 - Interscheme receivable - 2,753 23 10,412 5,248 - Contracts for sale of investments 224,463 3,701 - - - - Margin deposit with Clearing Corporation of India Limited 20,000 - 50 30,050 - - Outstanding and accrued income - - 12 87 15,551 335 Application money pending allotment 19,691 1,669 - - - - Amount due from AMC 482 159 416 1,925 32 24 Cash margin money placed for derivatives 50,000 - - - - - Collateralised lending 331,421 25,287 326,727 9,745 3,398 53

690,548 69,134 327,317 428,256 39,411 412 16-Nov-09 29-Dec-09 9-Oct-09 9-Oct-09 22-Jan-10 17-Mar-10

to to to to to to31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10 31-Mar-10

9. INTERESTMoney market instruments 2,661 - 35,650 372,666 14,535 3,639 Debentures and bonds 4,994 - 12,743 93,154 13,135 334 Deposits 4,658 - - - - - Government securities (including treasury bills) 1,292 - 620 4,386 - - Collateralised lending 23,500 165 4,750 16,204 531 - Others - - - 75 - -

37,105 165 53,763 486,485 28,201 3,973




Purchases (excluding collateralised lending, fixed deposits, futures and options)- amount 26,158,385 209,307 31,875,613 119,196,313 6,328,349 1,753,253 - as a percentage of average daily net assets 363.24% 275.15% 1220.96% 566.96% 263.97% 193.70%Purchases (index / stock futures at notional value)- amount 9,041,868 - - - - - - as a percentage of average daily net assets 125.56% - - - - - Purchases (index / stock options)- amount 144,435 - - - - - - as a percentage of average daily net assets 2.01% - - - - - Sales (excluding collateralised lending, fixed deposits, futures and options)- amount 19,099,675 53,916 28,449,743 109,046,088 4,959,873 850,838 - as a percentage of average daily net assets 265.22% 70.88% 1089.73% 518.68% 206.89% 94.00%Sales (index / stock futures at notional value)- amount 8,269,915 - - - - - - as a percentage of average daily net assets 114.84% - - - - - Sales (index / stock options)- amount 112,962 - - - - - - as a percentage of average daily net assets 1.57% - - - - -


(iii) The aggregate value of investments acquired and sold/redeemed/expired during the period and these amounts as a percentage of average daily net assets are as follows:



(v) Aggregate fair value of non traded investments - - 70,000 500,000 407,317 80,000(excluding certificates of deposit and commercial paper) as on March 31, 2010 valued in good faith


(iv) The aggregate purchases made by the schemes during the current period and the fair value of such investments as at 31st March, 2010 in companies which have invested in any scheme of the Fund in excess of five per cent of that scheme's net assets are provided in Annexure.

11

Schedule 10 to 13


Fund Fund Fund (384 days)November 16, December 29, October 09, October 09, January 22, March 17,

2009 to 2009 to 2009 to 2009 to 2010 to 2010 toMarch 31, 2010 March 31, 2010 March 31, 2010 March 31, 2010 March 31, 2010 March 31, 2010

Income - amount 61,921 2,415 53,763 486,485 28,201 3,973 - as a percentage of average daily net assets 2.31% 12.46% 4.32% 4.85% 6.22% 10.68%Expenditure (excluding provision for net unrealised lossand realised loss on sale of investments)- amount 47,944 484 2,779 27,148 3,650 76 - as a percentage of average daily net assets 1.79% 2.50% 0.22% 0.27% 0.81% 0.20%


10. MANAGEMENT AND TRUSTEESHIP FEEAxis Equity Fund pays fees for investment management services (excluding of service tax) under an agreement with the AMC, which provides for computation of such fee at an annual rate of 1.25 per cent of the Scheme’s average daily net assets up to Rs 1 billion and at an annual rate of 1 per cent of the average daily net assets in excess of that amount after excluding the net asset value of the AMC’s investment, the net asset value of the investments made in other schemes and fixed deposits as applicable.Axis Tax Saver Fund, Axis Liquid Fund, Axis Treasury Advantage Fund, Axis Short Term Fund and Axis Fixed Term Plan - Series 1 (384 Days) pay fees for investment management services (excluding service tax) under an agreement with the AMC, which provides for computation of such fee as a percentage of Scheme's average daily net assets, after excluding the net asset value of the investments by the AMC in the scheme, the net asset value of the investments made in other schemes and fixed deposits as applicable. During the period ended March 31, 2010, Axis Tax Saver Fund, Axis Liquid Fund, Axis Treasury Advantage Fund, Axis Short Term Fund and Axis Fixed Term Plan - Series 1 (384 Days) have paid management fee (excluding of service tax) at an average annualised rate of 0.54 percent, 0.10 percent, 0.11 percent, 0.35 percent and 0.15 percent respectivelyThe Scheme pays fees for Trusteeship services under agreement with the Trustee, which provides for computation of such fee at 0.01 per cent of the Scheme's average daily net assets.

11. INCOME AND EXPENDITUREThe total income and expenditure and these amounts as a percentage of the scheme’s average daily net assets on an annualised basis are provided below:

12. RELATED PARTY TRANSACTIONS(i) Axis Fixed Term Plan - Series 1 (384 Days) has entered into transactions with certain parties. The information required in this regard is in accordance with Accounting Standard

18 on 'Related Party Disclosures' issued by the ICAI.(a) Related party relationships

Name Description of relationship Schemes of the Fund, under common control of the SponsorAxis Bank Limited Sponsor of the Fund Axis Equity FundAxis Mutual Fund Trustee Limited Trustee of the Fund Axis Tax Saver FundAxis Asset Management Company Limited The Scheme's asset manager Axis Liquid Fund

Axis Treasury Advantage FundAxis Short Term Fund

(b) Transactions covered by Accounting Standard-18 Axis Fixed Term Plan - Series 1 (384 Days)

Name of Related Party Nature of transactions Period ended March 31, 2010 Balance as at March 31, 2010Axis Mutual Fund Trustee Limited Fees for trusteeship services 4 4 Axis Asset Management Company Limited Fees for investment management services 56 55 Axis Asset Management Company Limited Receivable for other expenses 24 24 Axis Bank Limited Bank charges $0 -


(ii) Transactions covered by Regulation 25(8) of the SEBI Regulation with the sponsor or associate of the sponsor:


Fund Fund Fund (384 days)Axis Bank Limited

Professional clearing member charges 347 - - - - - Bank charges 65 1 36 63 2 $0 Commission paid on distribution of units 5,336 - 116 1,518 66 -


$ Amount less than Rs. 0.5 thousand

$ Amount less than Rs. 0.5 thousand

13. Investments made during the period in the sponsor company and its group companies at cost


Fund Fund Fund (384 days)Investments made by the Scheme in Axis Bank Limited 733,396 4,160 - - - -


12

Schedule 14 to 15

14. OPEN POSITION OF DERIVATIVES

(i) Outstanding futures contract positions as at March 31, 2010

Scheme name Scrip name Number of contracts outstanding Number of units outstandingLong Short

Axis Equity Fund Century Textiles & Industries Ltd. 300 254,400 - Axis Equity Fund HDFC Bank Ltd. 145 - 29,000 Axis Equity Fund ICICI Bank Ltd. 857 299,950 - Axis Equity Fund Infosys Technologies Ltd. 207 41,400 - Axis Equity Fund Larsen & Toubro Ltd. 75 15,000 - Axis Equity Fund Mahindra & Mahindra Ltd. 51 31,824 - Axis Equity Fund Oil & Natural Gas Corporation Ltd. 222 - 49,950 Axis Equity Fund Sterlite Industries Ltd. 114 49,932 - Axis Equity Fund Tata Motors Ltd. 416 353,600 - Axis Equity Fund Tata Steel Ltd. 130 99,320 -


(ii) Outstanding options contract positions as at March 31, 2010

Scheme name Scrip name Number of units Total premium Gain/(loss) on Net option premiumoutstanding (Short) paid/(received) option outstanding paid/(received)

Axis Equity Fund ICICI Bank Ltd. 50,050 (1,557) 163 (1,394)

15. NET ASSET VALUE

Plans Axis Axis Axis Axis Axis AxisEquity Tax Saver Liquid Treasury Short Fixed TermFund Fund Fund Advantage Term Plan - Series 1


Face Value Face Value Face Value Face Value Face Value Face ValueRs. 10 Rs. 10 Rs. 10 Rs. 10 Rs. 10 Rs. 10

Growth Option 10.40 10.8477 - - - - Dividend Option 10.40 10.8467 - - - - Retail Growth Option - - 1,003.3715 1,003.2301 10.0652 10.0432Retail Dividend Option - - - - - 10.0432Retail Regular Dividend Option - - - - 10.0063 - Retail Daily Dividend Option - - 1,000.0000 1,000.0000 - - Retail Weekly Dividend Option - - 1,000.1507 1,000.2692 - - Retail Monthly Dividend Option - - 1,000.7156 1,000.7828 10.0349 - Retail Quarterly Dividend Option - - - - - 10.0432Institutional Growth Option - - 1,019.3678 1,021.2399 10.0840 - Institutional Dividend Option - - - - - - Institutional Regular Dividend Option - - - - 10.0147 - Institutional Daily Dividend Option - - 1,000.0000 1,000.0000 - - Institutional Weekly Dividend Option - - 1,002.3240 1,000.7874 - - Institutional Monthly Dividend Option - - 1,000.7518 1,001.3265 10.0368 -

(Rupees)

The net asset value of the Scheme’s units are determined separately for units issued under the plans/options after including the respective unit capital and reserves and surplus.

The net asset value disclosed above represents the computed NAV as on March 31, 2010, and not the last declared NAV.

16. CONTINGENT LIABILITYContingent liabilities as on March 31, 2010: Nil.

17. SEGMENT REPORTINGThe scheme Axis Fixed Term Plan - Series 1 (384 Days) operates in one segment only viz. to primarily generate attractive returns from a diverse and actively managed portfoilio of debt and money market instruments.

18. PRIOR PERIOD COMPARATIVESAs these are the first financial statements of the schemes since the date of launch, there are no prior period comparatives.

For and on behalf of For and on behalf ofAxis Mutual Fund Trustee Limited Axis Asset Management Company Limited

Dr. T. C. Nair Kedar Desai B. Gopalakrishnan Rajiv Anand U. R. BhatDirector Director Director Managing Director & CEO Director

Ninad Deshpande Chandresh NigamFund Manager-Fixed Income Head-Investments

MumbaiDate: July 02, 2010

13

Axis Equity Fund

SUPPLEMENTARY INVESTMENT PORTFOLIO INFORMATION AND INDUSTRY WISE CLASSIFICATIONDetails of investment portfolio and industry wise classification of the Scheme’s investments in each category of investments at March 31, 2010 are presentedbelow. The industry and company exposures are stated as a percentage of the Scheme’s net assets.

Industry and Quantity Amount Percentage PercentageCompany (Rs.in to toParticulars '000) Net Assets Investment

categoryEQUITY SHARESBANKS 658,932 1,041,706 12.29 14.81 HDFC Bank Ltd. 228,932 442,640 5.22 6.29 State Bank of India 130,000 270,166 3.19 3.84 Axis Bank Ltd. 200,000 233,650 2.76 3.32 ICICI Bank Ltd. 100,000 95,250 1.12 1.35 SOFTWARE 776,428 920,277 10.85 13.08Infosys Technologies Ltd. 190,000 497,031 5.86 7.07 Wipro Ltd. 300,000 212,084 2.50 3.02 Tata Consultancy Services Ltd. 260,000 202,969 2.39 2.89 Persistent Systems Ltd. ** 26,428 8,193 0.10 0.12FINANCE 1,613,846 728,338 8.60 10.36 Housing Development 140,000 380,407 4.49 5.41 Finance Cor LtdRural Electrification Corp Ltd 1,000,000 250,650 2.96 3.56 Dewan Housing Finance Corpn Ltd 473,846 97,281 1.15 1.38CONSUMER NON DURABLES 3,389,637 723,051 8.53 10.28 ITC Ltd. 1,454,250 382,540 4.51 5.44 United Spirits Ltd. 105,991 140,056 1.65 1.99 KS Oil Ltd. 1,800,000 121,950 1.44 1.73 Nestle India Ltd. 29,396 78,505 0.93 1.12PETROLEUM PRODUCTS 600,000 644,550 7.60 9.16 Reliance Industries Ltd. 600,000 644,550 7.60 9.16 CONSTRUCTION PROJECT 498,938 445,394 5.25 6.33 Larsen & Toubro Ltd. 235,000 383,250 4.52 5.45 Gammon India Ltd. 263,938 62,144 0.73 0.88 CONSTRUCTION 1,050,000 437,807 5.16 6.22 Man Infraconstruction Ltd 650,000 233,187 2.75 3.32 Godrej Properties Ltd. 400,000 204,620 2.41 2.91PHARMACEUTICALS 488,703 375,989 4.44 5.35 Dr. Reddys Laboratories Ltd. 150,000 191,243 2.26 2.72 Torrent Pharmaceuticals Ltd. 338,703 184,746 2.18 2.63POWER 1,894,000 308,009 3.63 4.39 Adani Power Ltd. 1,794,000 208,104 2.45 2.97 Reliance Infrastructure Ltd. 100,000 99,905 1.18 1.43FERROUS METALS 350,000 231,875 2.73 3.30 Tata Steel Ltd. 200,000 126,410 1.49 1.80 Jindal Steel & Power Ltd. 150,000 105,465 1.24 1.50MEDIA & ENTERTAINMENT 1,790,508 202,004 2.38 2.87 DQ Entertainment International Ltd 1,600,000 179,600 2.12 2.55 Jagran Prakashan Ltd 190,508 22,404 0.26 0.32CEMENT 70,000 197,040 2.32 2.80 Grasim Industries Ltd. 70,000 197,040 2.32 2.80 NON - FERROUS METALS 200,000 169,990 2.00 2.42 Sterlite Industries Ltd. 200,000 169,990 2.00 2.42OIL 307,844 160,457 1.89 2.28 Great Offshore Ltd. 257,844 105,523 1.24 1.50 Oil & Natural Gas Corporation Ltd. 50,000 54,934 0.65 0.78 AUTO 309,126 158,911 1.88 2.26 Mahindra & Mahindra Ltd. 208,176 112,696 1.33 1.60 Tata Motors Ltd. 100,950 46,215 0.55 0.66 RETAILING 360,000 141,930 1.67 2.02 Pantaloon Retail (India) Ltd. 360,000 141,930 1.67 2.02TRANSPORTATION 293,612 81,727 0.96 1.16 IL&FS Transportation Networks Ltd. 293,612 81,727 0.96 1.16 INDUSTRIAL CAPITAL GOODS 914,783 64,218 0.76 0.91 Pipavav Shipyard Ltd. 914,783 64,218 0.76 0.91TOTAL 15,566,357 7,033,273 82.94 100.00


categoryDERIVATIVESIndex / Stock OptionsBANKS (50,050) (1,394) (0.02) (58.12)ICICI Bank Ltd. 960 Call (50,050) (1,394) (0.02) (58.12)April 2010 OptionIndex / Stock FuturesAUTO 385,424 6,387 0.09 266.34 Tata Motors Ltd. April 2010 Future 353,600 5,595 0.08 233.31 Mahindra & Mahindra Ltd. 31,824 792 0.01 33.03April 2010 FutureBANKS 270,950 4,070 0.05 169.71 ICICI Bank Ltd. April 2010 Future 299,950 4,598 0.06 191.73 HDFC Bank Ltd. April 2010 Future (29,000) (528) (0.01) (22.02)NON - FERROUS METALS 49,932 854 0.02 35.61 Sterlite Industries Ltd. 49,932 854 0.02 35.61April 2010 FutureCONSTRUCTION PROJECT 15,000 285 0.00 11.88 Larsen & Toubro Ltd. 15,000 285 0.00 11.88 April 2010 FutureOIL (49,950) 6 0.00 0.25 Oil & Natural Gas Corporation Ltd. (49,950) 6 0.00 0.25 April 2010 FutureCEMENT 254,400 (456) (0.01) (19.01)Century Textiles & Industries Ltd. 254,400 (456) (0.01) (19.01)April 2010 FutureFERROUS METALS 99,320 (501) (0.01) (20.89)Tata Steel Ltd. April 2010 Future 99,320 (501) (0.01) (20.89)SOFTWARE 41,400 (6,853) (0.08) (285.77)Infosys Technologies Ltd. 41,400 (6,853) (0.08) (285.77)April 2010 FutureTOTAL 1,016,426 2,398 0.04 100.00 CERTIFICATE OF DEPOSITSBANKS 4,600 456,291 5.39 100.00 State Bank of Hyderabad 2,600 256,762 3.03 56.27 Central Bank of India 1,000 99,827 1.18 21.88 Bank of India 500 49,965 0.59 10.95 IDBI Bank Ltd 500 49,737 0.59 10.90TOTAL 4,600 456,291 5.38 100.00FIXED DEPOSITS 400,000,000 400,000 4.72 100.00 5.00% Axis Bank Ltd. 200,000,000 200,000 2.36 50.00 (05/07/2010) 5.00% Axis Bank Ltd. 200,000,000 200,000 2.36 50.00(07/07/2010)TOTAL 400,000,000 400,000 4.72 100.00 OTHER CURRENT ASSETS 690,548 8.14 TOTAL ASSETS 8,582,510 101.22 LESS: CURRENT LIABILITIES 103,394 1.22 NET ASSETS 8,479,116 100.00

** Security valued at cost as the same is awaiting listing on stock exchange.

14

Axis Tax Saver Fund



categoryEQUITY SHARESSOFTWARE 18,425 24,753 11.19 14.89 Infosys Technologies Ltd. 6,000 15,696 7.09 9.44 Tata Consultancy Services Ltd. 6,000 4,683 2.12 2.82 Wipro Ltd. 6,000 4,242 1.92 2.55 Persistent Systems Ltd. ** 425 132 0.06 0.08 BANKS 17,443 23,222 10.49 13.97 ICICI Bank Ltd. 8,000 7,620 3.44 4.58 HDFC Bank Ltd. 3,000 5,801 2.62 3.49 State Bank of India 2,500 5,195 2.35 3.13 Axis Bank Ltd. 3,943 4,606 2.08 2.77FINANCE 45,000 17,591 7.95 10.58 Housing Development Finance 3,000 8,152 3.68 4.91 Corporation Ltd.Dewan Housing Finance 24,000 4,927 2.23 2.96 Corporation Ltd.Rural Electrification Corporation Ltd. 18,000 4,512 2.04 2.71CONSUMER NON DURABLES 59,000 14,872 6.73 8.95 ITC Ltd. 30,000 7,892 3.57 4.76 United Spirits Ltd. 4,000 5,286 2.39 3.18 KS Oil Ltd. 25,000 1,694 0.77 1.02PETROLEUM PRODUCTS 10,000 10,743 4.85 6.46 Reliance Industries Ltd. 10,000 10,743 4.85 6.46 CEMENT 12,000 10,718 4.84 6.45 Grasim Industries Ltd. 2,000 5,630 2.54 3.39 Century Textiles & Industries Ltd. 10,000 5,088 2.30 3.06 MEDIA & ENTERTAINMENT 80,000 8,980 4.06 5.40 DQ Entertainment International Ltd. 80,000 8,980 4.06 5.40


categoryCONSTRUCTION PROJECT 5,000 8,154 3.68 4.91 Larsen & Toubro Ltd. 5,000 8,154 3.68 4.90AUTO 9,500 8,073 3.65 4.87 Tata Motors Ltd. 8,000 5,157 2.33 3.11 Hero Honda Motors Ltd. 1,500 2,916 1.32 1.76 CONSTRUCTION 19,844 7,119 3.22 4.28 Man Infraconstruction Ltd. 19,844 7,119 3.22 4.28 TRANSPORTATION 23,332 6,494 2.93 3.91 IL&FS Transportation Networks Ltd. 23,332 6,494 2.93 3.91 POWER 50,000 5,800 2.62 3.49 Adani Power Ltd. 50,000 5,800 2.62 3.49PHARMACEUTICALS 10,000 5,455 2.47 3.28 Torrent Pharmaceuticals Ltd. 10,000 5,455 2.47 3.28 NON - FERROUS METALS 6,000 5,100 2.30 3.07 Sterlite Industries Ltd. 6,000 5,100 2.30 3.07 OIL 12,000 4,910 2.22 2.95 Great Offshore Ltd. 12,000 4,910 2.22 2.95INDUSTRIAL CAPITAL GOODS 60,000 4,212 1.90 2.53 Pipavav Shipyard Ltd. 60,000 4,212 1.90 2.53TOTAL 437,544 166,196 75.10 99.99 OTHER CURRENT ASSETS 69,134 31.24 TOTAL ASSETS 235,330 106.35 LESS: CURRENT LIABILITIES 14,052 6.35 NET ASSETS 221,278 100.00

** Security valued at cost as the same is awaiting listing on stock exchange.

Axis Liquid Fund



categoryDEBENTURES AND BONDSPrivately placed debentures and bondsNON BANKING FINANCE COMPANY 700 70,000 2.04 100.00 Religare Finvest Ltd.* 700 70,000 2.04 100.00TOTAL 700 70,000 2.04 100.00 CERTIFICATES OF DEPOSITBANKS 31,000 3,089,135 90.23 100.00 ICICI Bank Ltd. 4,500 449,172 13.12 14.54 IDBI Bank Ltd 4,500 448,168 13.09 14.51 Punjab National Bank 4,500 448,163 13.09 14.51 State Bank Of Bikaner & Jaipur 3,000 299,211 8.74 9.69 Allahabad Bank 2,500 249,571 7.29 8.08 ING Vysya Bank Ltd. 2,500 249,556 7.29 8.08 Bank of Maharashtra. 2,500 249,545 7.29 8.08


categoryState Bank Of Patiala 2,500 248,644 7.26 8.04 Oriental Bank of Commerce 2,500 247,588 7.23 8.01 Central Bank of India 1,000 99,936 2.92 3.24 State Bank Of Mysore 1,000 99,581 2.91 3.22TOTAL 31,000 3,089,135 90.23 100.00 COMMERCIAL PAPERFINANCE 600 299,322 8.74 100.00 Kotak Mahindra Prime Ltd. 600 299,322 8.74 100.00 TOTAL 600 299,322 8.74 100.00 OTHER CURRENT ASSETS 327,317 9.56TOTAL ASSETS 3,785,774 110.55 LESS: CURRENT LIABILITIES 361,420 10.55 NET ASSETS 3,424,354 100.00

* Non traded / thinly traded investments.

15

Axis Treasury Advantage Fund



categoryDEBENTURES AND BONDSPrivately placed debentures and bondsNON BANKING FINANCE COMPANY 5,000 500,000 4.58 100.00 6.35% Religare Finvest Ltd. * 5,000 500,000 4.58 100.00TOTAL 5,000 500,000 4.58 100.00 CERTIFICATES OF DEPOSITSBANKS 82,111 8,038,772 73.63 100.00 State Bank of Hyderabad 12,400 1,218,972 11.16 15.16 State Bank Of Mysore 10,500 1,032,220 9.45 12.84 State Bank Of Bikaner & Jaipur 10,000 979,308 8.97 12.18 IDBI Bank Ltd 7,500 734,541 6.73 9.14 Andhra Bank Ltd 5,000 487,744 4.47 6.07 Oriental Bank of Commerce 5,000 482,951 4.42 6.01 Bank of India 4,500 436,646 4.00 5.43 ICICI Bank Ltd. 4,000 399,138 3.66 4.97 Kotak Mahindra Bank Ltd. 4,000 390,491 3.58 4.86 State Bank Of Travancore 3,500 338,869 3.10 4.22 Punjab National Bank 3,000 296,787 2.72 3.68 Central Bank of India 2,500 246,727 2.26 3.07 Allahabad Bank 2,500 246,467 2.26 3.07 State Bank Of Patiala 2,500 245,166 2.25 3.05


categoryCorporation Bank 2,500 243,736 2.23 3.03 Bank of Baroda 1,300 125,043 1.15 1.56 Federal Bank Ltd. 911 85,575 0.78 1.06 Indian Bank 500 48,391 0.44 0.60 TOTAL 82,111 8,038,772 73.63 100.00 COMMERCIAL PAPERPETROLEUM PRODUCTS 1,500 732,295 6.71 37.28 Indian Oil Corporation Ltd. 1,500 732,295 6.71 37.28 NON BANKING FINANCE COMPANY 1,000 492,834 4.51 25.09 Religare Finvest Ltd. 1,000 492,834 4.51 25.09 FINANCE 1,513 739,136 6.78 37.63 ECL Finance Ltd. 1,000 493,329 4.52 25.12 Kotak Mahindra Prime Ltd. 500 239,720 2.20 12.20 Tata Capital Ltd. 13 6,087 0.06 0.31TOTAL 4,013 1,964,265 18.00 100.00 OTHER CURRENT ASSETS 428,256 3.92 TOTAL ASSETS 10,931,293 100.11 LESS: CURRENT LIABILITIES 11,845 0.11 NET ASSETS 10,919,448 100.00


Axis Short Term Fund



categoryDEBENTURES AND BONDSListed debentures and bondsFINANCE 4,000 407,317 28.81 100.00 9.50% National Bank for Agriculture 1,500 156,765 11.09 38.49 & Rural Development *

7.90% Rural Electrification 1,000 100,705 7.12 24.72 Corporation Ltd. *6.55% National Housing Bank * 1,000 99,499 7.04 24.43 8.60% Power Finance 500 50,348 3.56 12.36Corporation Ltd.*TOTAL 4,000 407,317 28.81 100.00 CERTIFICATES OF DEPOSITBANKS 10,200 968,583 68.51 100.00 HDFC Bank Ltd. 2,500 240,005 16.97 24.78


categoryCanara Bank 2,000 188,708 13.35 19.48 Bank of Baroda 1,700 160,879 11.38 16.61 Bank of India 1,500 143,476 10.15 14.81 State Bank Of Bikaner & Jaipur 1,500 141,495 10.01 14.61 Kotak Mahindra Bank Ltd. 1,000 94,020 6.65 9.71 TOTAL 10,200 968,583 68.51 100.00 OTHER CURRENT ASSETS 39,411 2.79 TOTAL ASSETS 1,415,311 100.10 LESS: CURRENT LIABILITIES 1,419 0.10 NET ASSETS 1,413,892 100.00


Axis Fixed Term Plan - Series 1 (384 Days)



categoryDEBENTURES AND BONDSPrivately placed debentures and bondsNON BANKING FINANCE COMPANY 800 80,000 8.83 100.00 7.25% Kotak Mah Investment Ltd * 800 80,000 8.83 100.00TOTAL 800 80,000 8.83 100.00 COMMERCIAL PAPERFINANCE 1,327 629,887 69.49 100.00 Tata Capital Ltd. 387 181,205 19.99 28.77 Kotak Mahindra Prime Ltd. 320 159,680 17.62 25.35 India Infoline Ltd. 320 148,953 16.43 23.65 ECL Finance Ltd 300 140,049 15.45 22.23TOTAL 1,327 629,887 69.49 100.00


categoryCERTIFICATES OF DEPOSITBANKS 2,089 196,168 21.64 100.00 Yes Bank Ltd. 1,500 140,840 15.54 71.80 Federal Bank Ltd. 589 55,328 6.10 28.20TOTAL 2,089 196,168 21.64 100.00 OTHER CURRENT ASSETS 412 0.05 TOTAL ASSETS 906,467 100.01 LESS: CURRENT LIABILITIES 89 0.01 NET ASSETS 906,378 100.00


16

Annexure I

AXIS MUTUAL FUNDDisclosure under Regulation 25 (11) of SEBI (Mutual Fund) Regulations, 1996Investments made by the schemes of Axis Mutual Fund in Companies or their subsidiaries that have invested more than 5% of the net assets of any scheme

Company invested in the scheme Investment made by the scheme in the company

Name of the Company Name of the scheme invested by Investments made by the Schemes of Aggregate cost Outstandingthe Company Axis Mutual Fund in the Company of acquisition as on

or its subsidiary during the March 31,period ended 2010

March 31, 2010 (Rupees in(Rupees in Lakhs) Lakhs)

ALKEM LABORATORIES LTD. AXIS LIQUID FUND AXIS LIQUID FUND 7,000.00 - AXIS TREASURY ADVANTAGE FUND 9,500.23 -

AXIS BANK LIMITED AXIS LIQUID FUND AXIS EQUITY FUND 7,333.96 6,336.50 AXIS TREASURY ADVANTAGE FUND AXIS TAX SAVER FUND 41.60 46.06 AXIS SHORT TERM FUND

BANK OF BARODA AXIS LIQUID FUND AXIS EQUITY FUND 1,494.73 - AXIS LIQUID FUND 1,983.91 - AXIS SHORT TERM FUND 3,966.12 1,608.79 AXIS TREASURY ADVANTAGE FUND 12,733.13 1,250.43

BANK OF INDIA AXIS LIQUID FUND AXIS EQUITY FUND 993.85 499.65 AXIS TREASURY ADVANTAGE FUND AXIS FIXED TERM PLAN - SERIES 1(384 DAYS) 938.61 -

AXIS LIQUID FUND 2,969.25 - AXIS SHORT TERM FUND 2,364.37 1,434.76 AXIS TREASURY ADVANTAGE FUND 15,161.07 4,366.46

BANK OF MAHARASHTRA. AXIS LIQUID FUND AXIS EQUITY FUND 2,469.97 - AXIS FIXED TERM PLAN - SERIES 1(384 DAYS) 1,492.78 - AXIS LIQUID FUND 4,971.70 2,495.45 AXIS TREASURY ADVANTAGE FUND 8,909.55 -

BHARTI AIRTEL LTD. AXIS LIQUID FUND AXIS EQUITY FUND 1,771.04 - AXIS TREASURY ADVANTAGE FUND AXIS TAX SAVER FUND 9.94 -

CENTRAL BANK OF INDIA AXIS LIQUID FUND AXIS EQUITY FUND 1,985.20 998.27 AXIS TREASURY ADVANTAGE FUND AXIS FIXED TERM PLAN - SERIES 1(384 DAYS) 100.64 -

AXIS LIQUID FUND 999.23 999.36 AXIS TREASURY ADVANTAGE FUND 12,342.05 2,467.27

CORPORATION BANK AXIS LIQUID FUND AXIS EQUITY FUND 2,980.68 - AXIS TREASURY ADVANTAGE FUND AXIS LIQUID FUND 1,986.20 -

AXIS SHORT TERM FUND 2,412.53 - AXIS TREASURY ADVANTAGE FUND 7,849.47 2,437.36

DENA BANK AXIS LIQUID FUND AXIS LIQUID FUND 990.87 - AXIS TREASURY ADVANTAGE FUND AXIS TREASURY ADVANTAGE FUND 1,982.84 -

HDFC BANK LTD. AXIS LIQUID FUND AXIS EQUITY FUND 4,646.96 4,426.40 AXIS TREASURY ADVANTAGE FUND AXIS LIQUID FUND 999.45 -

AXIS SHORT TERM FUND 2,374.48 2,400.05 AXIS TAX SAVER FUND 68.07 58.01 AXIS TREASURY ADVANTAGE FUND 12,398.12 -

HERO HONDA MOTORS LTD. AXIS FIXED TERM PLAN - SERIES 1(384 DAYS) AXIS EQUITY FUND 319.82 - AXIS LIQUID FUND AXIS TAX SAVER FUND 29.44 29.17 AXIS SHORT TERM FUNDAXIS TREASURY ADVANTAGE FUND

HOUSING DEVELOPMENT FINANCE COR LTD AXIS LIQUID FUND AXIS EQUITY FUND 11,941.63 3,804.08 AXIS SHORT TERM FUND 1,552.81 - AXIS TAX SAVER FUND 76.70 81.52 AXIS TREASURY ADVANTAGE FUND 13,551.48 -

I L & F S LTD. AXIS LIQUID FUND AXIS LIQUID FUND 2,500.00 - IDBI BANK LTD AXIS LIQUID FUND AXIS EQUITY FUND 4,009.31 497.37

AXIS TREASURY ADVANTAGE FUND AXIS LIQUID FUND 8,546.08 4,481.68 AXIS TREASURY ADVANTAGE FUND 21,014.30 7,345.41

INDIABULLS FINANCIAL SERVICES LTD AXIS TREASURY ADVANTAGE FUND AXIS TREASURY ADVANTAGE FUND 10,000.00 - MAHINDRA & MAHINDRA FIN SER LTD. AXIS LIQUID FUND AXIS TREASURY ADVANTAGE FUND 3,500.00 - MARUTI SUZUKI INDIA LTD. AXIS FIXED TERM PLAN - SERIES 1(384 DAYS) AXIS EQUITY FUND 1,756.72 -

AXIS LIQUID FUND AXIS TAX SAVER FUND 23.58 - AXIS TREASURY ADVANTAGE FUND

MOTILAL OSWAL SECURITIES LTD AXIS LIQUID FUND AXIS TREASURY ADVANTAGE FUND 2,500.00 -ORIENTAL BANK OF COMMERCE AXIS LIQUID FUND AXIS LIQUID FUND 3,958.61 2,475.88

AXIS TREASURY ADVANTAGE FUND AXIS SHORT TERM FUND 2,479.70 - AXIS TREASURY ADVANTAGE FUND 16,040.17 4,829.50

PUNJAB NATIONAL BANK AXIS LIQUID FUND AXIS EQUITY FUND 5,444.47 - AXIS FIXED TERM PLAN - SERIES 1(384 DAYS) 1,492.88 - AXIS LIQUID FUND 16,924.12 4,481.63 AXIS SHORT TERM FUND 1,454.05 - AXIS TREASURY ADVANTAGE FUND 24,607.60 2,967.87

RELIANCE INDUSTRIES LTD. AXIS LIQUID FUND AXIS EQUITY FUND 6,303.81 6,445.50 AXIS SHORT TERM FUND AXIS LIQUID FUND 2,499.08 - AXIS TREASURY ADVANTAGE FUND AXIS TAX SAVER FUND 104.98 107.43

AXIS TREASURY ADVANTAGE FUND 7,415.96 - RELIGARE FINVEST LIMITED AXIS LIQUID FUND AXIS LIQUID FUND 5,600.00 700.00

AXIS TREASURY ADVANTAGE FUND 20,023.29 9,928.34STATE BANK OF HYDERABAD AXIS LIQUID FUND AXIS EQUITY FUND 8,616.85 2,567.62

AXIS TREASURY ADVANTAGE FUND 39,292.89 12,189.72 STATE BANK OF INDIA AXIS LIQUID FUND AXIS EQUITY FUND 4,160.91 2,701.66

AXIS TREASURY ADVANTAGE FUND AXIS TAX SAVER FUND 91.74 51.96SYNDICATE BANK LTD. AXIS LIQUID FUND AXIS LIQUID FUND 999.34 -

AXIS TREASURY ADVANTAGE FUND 1,499.01 - TATA STEEL LTD. AXIS LIQUID FUND AXIS EQUITY FUND 1,755.54 1,264.10

AXIS TREASURY ADVANTAGE FUND AXIS TAX SAVER FUND 19.00 - UNITED BANK OF INDIA LTD. AXIS LIQUID FUND AXIS EQUITY FUND 5,023.16 -

AXIS TREASURY ADVANTAGE FUND AXIS LIQUID FUND 26,481.80 - AXIS TREASURY ADVANTAGE FUND 19,563.09 -

VIJAYA BANK AXIS LIQUID FUND AXIS LIQUID FUND 999.34 - AXIS TREASURY ADVANTAGE FUND 4,938.79 -

YES BANK LTD. AXIS LIQUID FUND AXIS FIXED TERM PLAN - SERIES 1(384 DAYS) 1,402.52 1,408.40 AXIS TREASURY ADVANTAGE FUND AXIS LIQUID FUND 8,046.26 -

AXIS TREASURY ADVANTAGE FUND 6,080.19 -

17

Risk Factors: All Mutual funds and securities investments are subject to market risks and there is no guarantee that the investment objectiveof the schemes will be achieved. The NAV of the units issued by the Mutual Fund under the schemes can go up or down depending on variousfactors and forces affecting securities markets. Past performance of the Sponsor, its affiliates/the AMC/the mutual fund or its schemes does not indicatethe future performance of the schemes. The sponsor is not liable or responsible for any loss or shortfall resulting from the operation of the schemes. Investmentsin the schemes are subject to interest rate risk, re-investment risk, basis risk, credit risk, liquidity risk, spread risk, prepayment risk, risk of possible loss ofprincipal, etc. Equity and Equity Related Instruments are volatile by nature. Axis Liquid Fund (An Open ended Liquid Scheme; the objective of the scheme isto provide a high level of liquidity with reasonable returns commensurating with low risk through a portfolio of money market and debt securities. However,there can be no assurance that the investment objective of the scheme will be achieved), Axis Treasury Advantage Fund (An Open ended Debt Scheme;the objective of the scheme is to provide optimal returns and liquidity to the Investors by investing primarily in a mix of money market and short term debtinstruments which results in a portfolio having marginally higher maturity as compared to a liquid fund at the same time maintaining a balance betweensafety and liquidity. However, there can be no assurance that the investment objective of the scheme will be achieved), Axis Tax Saver Fund (An Open endedequity linked savings scheme with a lock-in period of 3 years; the objective of the scheme is to generate income and long-term capital appreciation from a di-versified portfolio of predominantly equity and equity-related Securities. However, there can be no assurance that the investment objective of the scheme willbe achieved), Axis Equity Fund (An Open ended growth scheme; the Objective of the scheme is to achieve long term capital appreciation by investing in adiversified portfolio predominantly consisting of equity and equity related securities including derivatives. However, there can be no assurance that the invest-ment objective of the scheme will be achieved), Axis Short Term Fund (An Open ended Debt Scheme; the objective of the scheme is to generate stablereturns with a low risk strategy while maintaining liquidity through a portfolio comprising of debt and money market instruments. However, there can be noassurance that the investment objective of the scheme will be achieved), Axis Fixed Term Plan – Series 1 (384 days) (A Close ended debt scheme; the ob-jective of the scheme is to generate returns through a portfolio of debt & money market instruments that are maturing on or before the maturity of the re-spective plan(s)) are only the names of the Scheme(s) and do not in any manner indicate either the quality of the Scheme(s), their future prospectsand returns. Mutual Fund Investments are subject to market risks. Please read the Scheme Information Documents and Statement of AdditionalInformation (SID & SAI) carefully before investing. For detailed risk factors, please refer to the SID.

Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability restricted to Rs.1 Lakh). Trustee: Axis Mutual Fund Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC).