annual report 2012 - canara robeco mutual fund the members : your directors present their nineteenth...

th19 AuditedAnnual Report2011 - 2012

Canara Robeco Asset Management Company Ltd.

Investment Manager to

CANARA ROBECO MUTUAL FUND

BOARD OF DIRECTORS

Mr. S. Raman (Chairman)

Mr. M. A. K. Prabhu

Ms. Hester W. D. G. Borrie

Mr. Deveshwar Kumar Kapila

Mr. V. H. Ramakrishnan

Mr. Shital Kumar Jain

Mr. Antony Edwards

Mr. Sambasivan Venkatachalam

EXECUTIVES

Rajnish Narula, Chief Executive Officer

Edwin Rietkerk, Chief Operating Officer

Y. Sambasiva Rao, Divisional Manager - Canara Bank (on deputation)

AUDITORS

M/s Khimji Kunverji & Co,

Chartered Accountants,

Suite no. 52, Bombay Mutual Bldg,

P. M. Road, Fort, Mumbai - 400 001

REGISTERED OFFICE

Construction House, 4th Floor, 5, Walchand Hirachand Marg, Ballard Estate, Mumbai 400 001

TO THE MEMBERS :

Your Directors present their Nineteenth Annual Report together with the Audited Statement of Accounts for the year ended 31st March, 2012.

Directors' Report

Canara Robeco Asset Management Company, the joint venture between Canara Bank and Robeco Groep N.V., completed 54 months of operations on 31st March 2012.

BUSINESS RESULTS & DIVIDEND:

For the year ended March 31, 2012 the revenue of the company by way of management fees and other income earned was at ` 4261.91 Lacs as

compared to ̀ 4700.04 Lacs earned in the year ended March 31, 2011. The average assets under management stood at ̀ 7446.28 Crores (previous

year: ̀ 7,553.15 Crores).

The company has incurred expenses over the past year to the tune of ̀ 3798.19 Lacs as compared to ̀ 3836.61 Lacs incurred in the last financial year. While expenditure under personnel costs were kept under tight control, one of the significant items under expenditure was the marketing and distribution expenses incurred although the same was the lower than the previous year (FY 2011-12: ̀ 265.86 lacs; FY 2010-11: ̀ 564.21).

In view of the need to conserve resources of the Company to meet planned expenditure, your Directors express their inability to recommend any dividend for the year ended 31st March, 2012.

KEY PERSONNEL:

Mr. Soumendra Nath Lahiri was appointed as Head - Equities with effect from 11th April 2011.

OPERATIONS:

In tune with the market demand, the following schemes were launched during the year:

1

Year ended 31.3.2012 31.3.2011 ( ` Lacs) ( ` Lacs)

Profit/(Loss) before depreciation 565.76 958.42

Depreciation 102.03 94.66

Profit/(Loss) before tax 463.73 863.76

Less: Prior period items 0.00 0.00

Profit /(Loss) for the year before impairment loss and taxation 463.73 863.76

Less : Impairment Loss 0.00 1.98

Provision for Income Tax 50.00 151.00

Provision for Wealth Tax 4.70 3.62

Less: (Charge)/Credit for deferred tax asset (17.47) 95.95

Tax Adjustment for prior periods 6.83 0.92

Profit/(Loss) for the year 419.67 610.29

Add : Balance brought forward 899.23 288.94

Balance carried to Balance-Sheet 1318.90 899.23

Year ended

Apart from capital appreciation under growth plans of various Schemes and daily/weekly dividends in Canara Robeco Liquid, Canara Robeco Treasury Advantage, Canara Robeco Floating Rate and Canara Robeco Interval Funds and Canara Robeco Fixed Maturity Plans, the following Schemes declared dividends during the year under dividend plans:


Name Type Initial Subscription

Canara Robeco Yield Advantage Fund Open Ended Debt Fund ` 12.9784 Crore

Canara Robeco Gold Exchange Traded Fund Open Ended Exchange Traded Fund ̀ 10.60 Crore

Canara Robeco Fixed Maturity Plan – Close Ended Fixed Maturity Series 7 (Plan A) Debt Scheme ` 206.92 Crore

2


nCanara Robeco Gilt Advantage Fund: 0.07 per unit (7%)

nCanara Robeco InDiGo Fund: ` 0.10 per unit (10%)(four times during the year)

nCanara Robeco Income: ` 0.30 per unit (30%) (four times during the year)

nCanara Robeco Monthly Income Plan: ` 0.30 per unit (30%) (four times the year)

nCanara Robeco Dynamic Bond: ̀ 0.20 per unit (2%)

nCanara Robeco Balance: ` 1.50 per unit (15%)

nCanara Robeco Equity Diversified: ` 1.00 per unit (10%)

nCanara Robeco Equity TaxSaver: ` 1.00 per unit (10%)

As on 31st March, 2012, the Company was managing 24 schemes of Canara Robeco Mutual Fund, of which 12 were debt oriented schemes, 7 were equity oriented schemes and 4 were hybrid schemes and 1 was an Exchange Traded Fund.

As on 31st March, 2012, the Average Assets under Management of Canara Robeco Mutual Fund stood at ̀ 7446.28 Crores (previous year: ̀ 7,553.15 Crores).

RECOGNITION AND AWARDS:

The Canara Robeco Investment Team delivered good performance throughout the year in the fixed income class. This performance has been recognized by the awards conferred upon us recently.

Canara Robeco Income Fund & Canara Robeco Floating Rate were awarded the Best Fund in Intermediate Bond category & Ultra short term Bond Category by Morning Star at the Morningstar India Awards 2012 ceremony held in February 2012. Also, Mr. Ritesh Jain (Head - Fixed Income) was accorded as the "Debt Fund Manager of the Year" at the CNBC TV 18 - CRISIL Mutual Fund Awards 2012.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS AND OUTGO:

Your Company, being a non-banking non-financial Company, no specific comments in terms of the provisions of Section 217 (1) (e) of the Companies Act, 1956 are called for on conservation of energy and technology absorption. Your Company has, however, used information technology relevant to its business in keeping with the size of its operations.

Earning in foreign currency aggregated to ̀ 246.49 Lacs (previous year: ̀ 198.39 lacs).

Expenditure in foreign currency aggregated to ̀ 45.25 Lacs (previous year: ̀ 55.44 lacs).

FIXED DEPOSITS:

The Company has not invited/accepted deposits from members/public. The Reserve Bank of India has classified the Company as a non-banking non- financial company.

PARTICULARS OF EMPLOYEES:

Information required to be provided under Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975, is given in a separate Annexure, which will be available to the members of the company on a written request.

DIRECTORS:

During the year, the following changes in the composition of the Board of Directors took place:

Appointment:

1. Mr. M A K Prabhu was appointed as a Nominee Director from Canara Bank on the Board of Directors w.e.f. 1st August 2011.

2. Mr. S. Venkatachalam was appointed as a, Independent Director on the Board of Directors w.e.f. 13th March, 2012.

3. Mr. Antony James Edwards was appointed as a Nominee Director from Robeco Groep on the Board of Directors w.e.f. 13th March, 2012.

Resignation:

1. Mr. M. Ramkumar resigned from the Board and ceased to be a Director with effect from 22nd July 2011

2. Mr. Arvind Sethi resigned from the Board and ceased to be a Director with effect from 8th December 2011.

Your Directors place on record their deep appreciation of the services rendered by Mr. M. Ramkumar and Mr. Arvind Sethi during his tenure on the Board.

Mr. M A K Prabhu & Mr. S. K. Jain hold the office of Director liable to retirement by rotation and accordingly retire by rotation at the Annual General Meeting and are eligible for re-appointment.

DIRECTORS' RESPONSIBILITY STATEMENT:

Pursuant to Section 217 (2AA) of the Companies Act, 1956, your Directors, based on the representation received from the Management Team, confirm that:

(a) in the preparation of the Annual Accounts, the applicable accounting standards have been followed alongwith proper explanation relating to material departures ;

(b) they have, in the selection of accounting policies, consulted the statutory auditors and have applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit/(loss) for that period ;

(c) they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the

`

3


Companies Act, 1956, as amended, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities ;

(d) they have prepared the Annual Accounts on a going concern basis.

AUDIT COMMITTEE:

The Audit Committee of the Board comprises of Mr. D. K. Kapila, Mr. M. A. K. Prabhu and Ms. Hester W D G Borrie & Mr. S K Jain.

The Committee reviews the financials of the Company, the financials of schemes, regulatory inspection reports of the Company, reports of the internal and statutory auditors placed before them, from time to time.

AUDITORS:

Under Section 619 of the Companies Act, the Auditor of the Company shall be appointed by the Comptroller of Auditor General of India, New Delhi. Under Section 224(8) (aa) of the Companies Act, 1956, the remuneration of Auditors appointed under Section 619 by the Comptroller and Auditor General of India, shall be fixed by the Company in the General Meeting. Accordingly, notice of the Annual General Meeting will include an item pertaining to remuneration of the Auditors for the year 2012-2013.

ACKNOWLEDGEMENTS:

Your Directors wish to place on record their gratitude for the support and guidance received from SEBI, Board of Trustees of Canara Robeco Mutual Fund, joint venture partners, Canara Bank and Robeco Groep N.V., confidence reposed by the investor community and the dedicated work put in by the staff at all levels in the Company.

For and on behalf of the Board of Directors

Sd/-Place: Bangalore S. RAMANDate : 26th April 2012 CHAIRMAN

Auditors’ Report

The Members

CANARA ROBECO ASSET MANAGEMENT COMPANY LIMITED

1 We have audited the attached Balance Sheet of CANARA ROBECO ASSET MANAGEMENT COMPANY LIMITED (hereinafter referred to as 'the

Company') as at March 31, 2012, Profit and Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto. These

financial statements are the responsibility of the Company's Management. Our responsibility is to express an opinion on these financial

statements based on our audit

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 As required by the Companies (Auditor's Report) Order, 2003 (hereinafter referred to as 'the Order') issued by the Central Government of

India in terms of Section 227 (4A) of the Companies Act, 1956, (hereinafter referred to as 'the Act') we enclose in the Annexure a statement on

the matters specified in paragraphs 4 and 5 of the said Order

4 Further to our comments in the Annexure referred to above, we report that:

4.1 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;

4.2 In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those

books;

4.3 The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the aforesaid books of

account;

4.4 In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the applicable

accounting standards referred to in Section 211 (3C) of the Act;

4.5 On the basis of written representation received from directors as on March 31, 2012 and taken on record by the Board of Directors, we report

that none of the directors is disqualified as on March 31, 2012 from being appointed as a director in terms of section 274 (1)(g) of the Act.

4.6 In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with

significant accounting policies and notes thereon give the information required by the Act, in the manner so required and give a true and fair

view in conformity with the accounting principles generally accepted in India;

4.6.1 In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2012;

4.6.2 In the case of the Profit and Loss Account, of the 'Profit' of the Company for the year ended on that date; and

4.6.3 In the case of Cash Flow Statement, of the cash flows of the Company for the year ended on that date

For and on behalf ofKHIMJI KUNVERJI & COChartered AccountantsFirm Registration No: 105146W

Sd/-

HASMUKH B DEDHIAPartner (F–33494)

Place: MumbaiDated: April 30, 2012

4


Annexure to the Auditors’ Report

5


Annexure referred to in paragraph 3 of our Auditors' Report of even date of CANARA ROBECO ASSET MANAGEMENT COMPANY LIMITED as at March 31, 2012

i. a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

b) The fixed assets have been physically verified by management at reasonable intervals. As informed, no material discrepancies were noticed on such verification.

c) The Company has not disposed off substantial part of its fixed assets during the year.

ii As the Company does not have inventory, Clause 4 (ii) (a), (b) and (c) of paragraph 4 of the Order relating to inventories is not applicable

iii The Company has not granted/taken any unsecured loans to/from companies or parties listed in the register maintained under Section 301 of the Act. Accordingly, clause 4(iii)(b) to (g) of the order are not applicable

iv In our opinion and according to the information and explanations given, there is adequate internal control system commensurate with the size of the Company and the nature of its business, for the purchase of fixed assets and for sale of services. Further, on the basis of examination of books and records of the Company and according to the information and explanations given, and as per the checking carried out in accordance with the auditing standards generally accepted in India, neither we have observed nor we have been reported for any continuing failure to correct major weaknesses in the internal control system

v According to the information and explanations provided by management, we are of the opinion that there were no transactions made in pursuance of contract or arrangements that need to be entered in the register maintained under Section 301 of the Companies Act, 1956

vi In our opinion and according to the information and explanations given, the Company has not accepted any deposit from the public, within the meaning of the provisions of Sections 58A and 58AA of the Act and the Rules framed there under. As informed, no order has been passed by the Company Law Board or National Company Law Tribunal or the reserve Bank of India or any court or any other Tribunal during the year to the company in this regard

vii In our opinion, the Company has an internal audit system commensurate with the size and the nature of its business

viii As informed, the Company is not required to maintain any cost records prescribed by the Central Government under clause (d) of sub–section (1) of Section 209 of the Act

ix. a) According to the information and explanation given, the Company is generally regular in depositing with appropriate authorities undisputed statutory dues including Income-Tax, Wealth Tax, Employee state Insurance, Investors Education and Protection Fund, Service Tax, Provident fund and other material Statutory Dues applicable to it. Further, since the Central Government has till date not prescribed the amount of cess payable under section 441 A of the Act, we are not in a position to comment upon the regularity or otherwise of the Company in depositing the same. There are no arrears of such statutory dues as at March 31, 2012 for a period of more than six months from the date they become payable. As informed, statutory dues in the nature of Sales Tax, Custom Duty and Excise Duty are currently not applicable to the Company

b) According to the information and explanations given, there are no dues of Income–tax, Wealth Tax, Service Tax, and Cess which have not been deposited on account of any dispute. As informed, statutory dues in the nature of Sales Tax, Custom Duty and Excise Duty are currently not applicable to the Company.

x The Company does not have accumulated losses at the end of financial year and has not incurred cash losses during the financial year and in the immediately preceding financial year

xi In our opinion and according to the information and explanations given, the Company does not have any dues payable to financial institutions or bank or debenture holders and hence clause 4(xiii) of the Order is not applicable to the Company

xii According to the information and explanations given and based on the documents and records produced, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities

xiii Since the Company is not a chit fund, nidhi, mutual benefit fund or a society, clause 4(xiii) of the Order is not applicable to the Company

xiv According to the information and explanations given and in our opinion, the Company is not dealing or trading in shares, securities, debentures, and other investments, hence clause 4(xiv) of the Order is not applicable to the Company

xv According to the information and explanations given, the Company has not given any guarantee for loans taken by others from banks or financial institutions

xvi According to the information and explanations given, the Company has not obtained/availed any term loans, accordingly clause 4 (xvi) of the order is not applicable to the Company

xvii According to the information and explanations given and on an overall examination of the balance sheet of the Company, we report that no funds raised on short term basis have been used for long term investment

xviii The Company has not made any preferential allotment of shares during the year to parties and companies covered in the register maintained under Section 301 of the Act

xix Since the Company has not issued any debentures, clause 4(xix) of paragraph 4 of the Order is not applicable to the Company

xx Since the Company has not raised any money through a public issue during the year, clause 4(xx) of paragraph 4 of the Order is not applicable to the Company

xxi During the course of our examination of the books and records of the Company, carried out in accordance with the auditing standards generally accepted in India, we have neither come across any instance of fraud on or by the Company noticed or reported during the course of our audit nor have we been informed of such case by the management

For and on behalf ofKHIMJI KUNVERJI & COChartered AccountantsFirm Registration No: 105146W

Sd/-

HASMUKH B DEDHIAPartner (F–33494)

Place: MumbaiDated: 30th April 2012

6


COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 619(4) OF THE COMPANIES ACT, 1956 ON THE ACCOUNTS OF

CANARA ROBECO ASSET MANAGEMENT COMPANY LIMITED FOR THE YEAR ENDED 31 MARCH 2012

The preparation of financial statements of Canara Robeco Asset Management Company Limited for the year ended 31 March 2012 in accordance

with the financial reporting framework prescribed under the Companies Act 1956 is the responsibility of the management of the company. The

statutory auditor appointed by the Comptroller and Auditor General of India under Section 619(2) of the Companies Act, 1956 is responsible for

expressing opinion on these financial statements under Section 227 of the Companies Act, 1956 based on independent audit in accordance with the

auditing and assurance standards prescribed by their professional body, the Institute of Chartered Accountants of India. This is stated to have been

done by them vide their Audit Report dated 30 April 2012.

I, on behalf of the Comptroller and Auditor General of India have conducted a supplementary audit under Section 619(3)(b) of the Companies Act,

1956 of the financial statements of Canara Robeco Asset Management Company Limited for the year ended 31 March 2012. This supplementary audit

has been carried out independently without access to the working paper of the statutory auditor and is limited primarily to the inquiries of the

statutory auditor and company personnel and a selective examination of some of the accounting records. On the basis of my audit nothing

significant has come to my knowledge which would give rise to any comment upon or supplement to statutory Auditors report under Section 619(4)

of the Companies Act, 1956

For and on the behalf of theComptroller and Auditor General of India

Sd/-(Alka R.Bhardwaj)

Principal Director of Commercial Audit& Ex-Officio Member, Audit Board-I, Mumbai

Place : MumbaiDate : 21 June 2012

7


Balance Sheet as at 31st March, 2012

Note As at As at No 31st March 2012 31st March 2011 (`)

I. EQUITY AND LIABILITIES

( 1 ) Shareholders’ funds

(a) Share capital B.1 201,043,570 201,043,570

(b) Reserves and surplus B.2 249,999,813 208,033,433

(2) Non-current liabilities

(a) Deferred tax liabilities (Net) B.3 7,848,433 9,595,326

(b ) Other Long Term Liabilities B.4 9,768,086 7,229,484

(3) Current liabilities

(a) Other current Liabilities B.5 70,138,263 68,682,576

(b) Short Term provisions B.6 2,421,909 4,025,360

TOTAL 541,220,074 498,609,749

II. ASSETS

(1) Non-current assets

(a) Fixed assets B.7 59,144,228 64,076,770

(b) Long-term loans and advances B.8 56,639,853 60,110,795

(2) Current assets

(a) Current investments B.9 346,383,403 283,106,834

(b) Trade receivables B.10 43,130,894 39,901,695

(c) Cash and cash equivalents B.11 2,771,346 9,968,862

(d) Short-term loans and advances B.12 33,150,350 41,444,793

TOTAL 541,220,074 498,609,749

(`)

8


As per our report of even date S. Raman D.K.Kapila Edwin Rietkerk For Khimji Kunverji & Co., Chairman Director Chief Operating Officer Chartered Accountants

Sd/- Sd/- Sd/-Hashmukh B. Dedhia Rajnish Narula Jignesh ModiPartner (F-33494) Chief Executive Officer Company Secretary

Place : Bangalore Date : 26th April, 2012

Place : Mumbai Date : 30th April, 2012

Sd/- Sd/- Sd/-

Significant Accounting Policies & other Notes to Accounts form an integral part of Financial Statements.

Statement of Profit and loss for the year ended 31st March 2012

Note As at As at No 31st March 2012 31st March 2011 (`)

I. Revenue from operations B.13 399,260,934 402,814,536

II. Other Income B.14 26,930,609 67,223,485

III. Total Revenue ( I+II) 426,191,543 470,038,021

IV. Expenses:

Employee benefits expense B.15 221,291,953 190,117,642

Depreciation and amortization expense B.7 10,202,648 9,466,802

Other expenses B.16 148,324,267 184,076,868

TOTAL 379,818,868 383,661,312

V. Profit before extraordinary items and tax (III-IV) 46,372,675 86,376,709

VI. Extraordinary Items 198,459

VII. Profit before tax (V-VII) 46,372,675 86,178,250

VIII. Tax expense:

(1) Current tax 5,000,000 15,100,000

(2) Deferred Tax (1,746,893) 9,595,326

(3) Wealth Tax 470,000 362,050

(4) Tax Adjustment for Prior Year 683,188 92,120

IX Profit after Tax 41,966,380 61,028,754

XIII Earnings per equity share: B.23

(1) Basic and diluted 2.09 3.04

(`)

9


Significant Accounting Policies & other Notes to Accounts form an integral part of Financial Statements.

As per our report of even date S. Raman D.K.Kapila Edwin Rietkerk For Khimji Kunverji & Co., Chairman Director Chief Operating Officer Chartered Accountants

Sd/- Sd/- Sd/-Hashmukh B. Dedhia Rajnish Narula Jignesh ModiPartner (F-33494) Chief Executive Officer Company Secretary

Place : Bangalore Date : 26th April, 2012

Place : Mumbai Date : 30th April, 2012

Sd/- Sd/- Sd/-

10

A SIGNIFICANT ACCOUNTING POLICIES FOR THE YEAR ENDED 31st MARCH 2012

The following accounting policies have been applied in dealing with items which are considered material in relation to the Company’s Accounts:

A.1 Basis of preparation of Accounts

The financial statements have been prepared and presented under the historical cost convention on an accrual basis of accounting and comply with the applicable Accounting Standards prescribed in the Companies (Accounting Standard) Rules, 2006 and the relevant provisions of the Companies Act, 1956(the Act). Except otherwise mentioned, the accounting policies have been consistently applied by the Company and are consistent with those used in the previous year. The preparation of the financial statements in conformity with generally accepted accounting principles (‘GAAP’) requires that the Company’s management make estimates and assumptions that affect the reported amounts of income and expenses for the year, reported balances of assets and liabilities and disclosures relating to contingent liabilities as of the date of the financial statements. Actual results could differ from these estimates/assumptions.

A.2 Revenue Recognition

Revenue is recognized when there is certainty of ultimate collection. Management fee is recognized at specified rates provided in the offer document of the relevant schemes applied on the average daily net assets of each scheme on accrual basis as per SEBI regulations. Dividend income is recognized when the right to receive payment is established. All income to the extent ascertainable with reasonable certainty are accounted on accrual basis.

A.3 Fixed Assets

Fixed Assets are stated at cost of acquisition or construction including incidental costs related to their acquisition /installation less accumulated depreciation /amortization.

A.4 Depreciation

Depreciation on various assets is provided on written down value method at the rates provided in Schedule XIV of the Act or Management estimate whichever is higher except in the case of Electrical Fittings which is based on management’s estimates of useful life of the asset on which depreciation is charged @20%. Expenditure on fixtures in leased premises is depreciated over the lease period. Depreciation on the Fixed Assets added/disposed off/discarded during the year is provided on pro rata basis.

Leasehold improvements are amortized over a period equivalent to the initial period of lease from date of capitalization.

Intangible assets comprising of software purchased / developed and licensing costs are depreciated on straight line basis over the useful life of the software up to a maximum of three years commencing from the date on which such software is first utilized.

A.5 Foreign Exchange Transactions

Transactions in foreign currency are recorded at a rate that approximates the exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currency are translated at the rate of exchange prevailing on the Balance Sheet date. Exchange differences arising on foreign currency transactions are recognized in the Profit and Loss Account.

A.6 Investments

Long-term investments are stated at cost. The excess of cost over face value is amortized over the period of holding of investment up to redemption. The provision for diminution in value of investments is made, if such diminution in the opinion of the management is other than temporary.Current investments are stated at lower of cost and fair market value.

A.7 Operating Leases

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased Assets are classified as operating leases. Operating lease payments/receipts are recognized as an expense/income in the profit and loss Account.

A.8 Employee and Retirement Benefits

(i) Provident Fund is a defined contribution scheme and the contributions are charged to the Profit & Loss Account of the year when the contributions to the respective funds are due.

(ii) The Company contributes to an approved Group Gratuity Policy with the Life Insurance Corporation of India. Gratuity liability are defined benefit obligations and are provided for on the basis of an actuarial valuation as per AS 15 (Revised) made at the end of each financial year based on the projected unit cost method.

(iii) Short term compensated absences are provided for based on estimates.

(iv) Actuarial gains/losses are immediately taken to the profit and loss account and are not deferred.

(v) Gratuity and Leave encashment in respect of deputed employees is calculated as per the terms of deputation and provided in the accounts on accrual basis.

A.9 Earnings Per Share

In determining earnings per share, the Company considers the net profit after tax and includes the post tax effect of any extra ordinary items. Basic earning per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earning per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all potential dilutive equity shares.

A.10 Taxes on Income

Tax expense comprises of current and deferred tax. Provision for current tax is made on the basis of estimated taxable income for the current


Schedules forming part of the Balance Sheet as at 31st March, 2012

11

accounting year in accordance with the Income Tax Act, 1961.The deferred tax for timing differences between the book and tax profits for the year is accounted for, using the tax rates and laws that have been substantively enacted as of the Balance Sheet Date. Deferred tax assets arising from timing differences are recognised to the extent there is reasonable certainty that these would be realised in future.Deferred tax assets, in case of unabsorbed losses and unabsorbed depreciation, are recognised only if there is virtual certainty that such deferred tax asset can be realised against future taxable profits.

A.11 Impairment of Fixed Assets

The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factor. An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss if any, is charged to Profit and Loss Account in the year in which an asset is identified as impaired. Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the assets no longer exist or have decreased.

A.12 Contingent Liabilities and Provisions

Contingent liabilities where outflow is possible but not probable to the extent not provided are disclosed by the way of note. Provisions are recognized when there is a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.

A.13 Software Expenses

Expenses on subscription, license fees and costs towards right to use/access of application software are charged to revenue account in the year in which they are incurred.

A 14 Scheme Expenses

Recurring expenses of the schemes of Canara Robeco Mutual Fund in excess of limits prescribed under the SEBI Mutual Fund Regulation, 1996 are charged to Statement of Profit & Loss in the year end in which they are incurred.

Upfront brokerage/ commission paid to distributors for Equity Linked Saving Schemes of Canara Robeco Mutual Fund are treated as prepaid expenses incurred for the year and such brokerage and commission are expensed out over a period of three year. Any other brokerage/commission is expensed in the year in which they are incurred.

B. NOTES TO ACCOUNTS AS AT AND FOR THE YEAR ENDED 31st MARCH 2012

B.1 SHARE CAPITAL


Particulars As at As at 31st March 2012 31st March 2011 (`) (`)

EQUITY SHARES AUTHORISED CAPITAL Equity Shares of ` 10/- Par Value 50,000,000 (50,000,000) equity shares fully paid-up 500,000,000 500,000,000

ISSUED, SUBSCRIBED AND PAID UP CAPITAL Equity Shares of ` 10 par value Shares held by Canara Bank and its nominees 102,532,220 102,532,220 10,253,222 (10,253,222) equity shares fully paid up

Shares held by Robeco India Holding B.V. 98,511,350 98,511,350 9,851,135 (9,851,135) equity shares fully paid up

TOTAL 201,043,570 201,043,570

The Company has only one class of shares referred to as equity shares. Each holder of equity shares is entitled to one vote per share.

The details of shareholder holding more than 5 % shares as at March 31, 2012 are set out below:

Name of the shareholder As at 31st As at31st March 2012 March 2011

No. of shares % held No. of shares % held

Canara Bank 10,252,022 51 10,252,022 51

Robeco India Holding B V 9,851,130 49 9,851,130 49

The reconciliation of the number of shares outstanding and the amount of share capital as at March 31, 2012 is set out below:

Particulars As at As at 31st March 2012 31st March 2011

Number of shares at the beginning 20,104,357 20,104,357

Add : During the year NIL NIL

Closing at the year end 20,104,357 20,104,357

12

B.2 RESERVES AND SURPLUS



Share Premium Account 21,351,442 21,351,442

TOTAL (A) 21,351,442 21,351,442

General Reserve 96,758,788 96,758,788

TOTAL (B) 96,758,788 96,758,788

Surplus

Opening Balance 89,923,203 28,894,449

Add: Net Profit after tax transferred from statement of Profit & Loss 41,966,380 61,028,754

TOTAL (C) 131,889,583 89,923,203

TOTAL (A+B+C) 249,999,813 208,033,433

B.3 DEFERRED TAXATION

The components of Deferred tax Liabilities and Deferred Assets are under:


Deferred Tax Liabilities (DTL) on account of :

Depreciation 11,055,633 12,559,346

Deferred Tax Liabilities 11,055,633 12,559,346

Deferred Tax Asset on Account of :

Gratuity 47,678 182,386

Bonus U/S 43B To The Extent of DTL 3,159,522 2,781,634

Total Deferred Tax Asset 3,207,200 2,964,020

Net Deferred Tax Liability 7,848,433 9,595,326

As a measure of prudence, no deferred tax asset for carried forward losses of earlier years has been recognized during the year.

B.4 OTHER LONG TERM LIABILITIES


Deposits 30,000 30,000

Employee Benefits 9,738,086 7,199,484

TOTAL 9,768,086 7,229,484

B.5 OTHER CURRENT LIABILITIES


Creditors for expenses 9,312,414 16,036,723

Other Liabilities 6,843,588 7,938,612

Employee benefits 53,982,261 44,707,241

TOTAL 70,138,263 68,682,576

B.6 SHORT TERM PROVISIONS


Compensated Absences 2,421,909 3,573,971

Provision for Gratuity - 451,389

TOTAL 2,421,909 4,025,360

B.7

FI

XED

ASS

ETS

13


GR

OSS

BLO

CKD

EPR

ECIA

TIO

N /

AM

OR

TISA

TIO

N

NET

BLO

CK

Des

crip

tio

nA

s at

A

ddit

ion

D

elet

ion

A

s at

U

pto

F

or

the

Year

Adj

ust

men

ts

Upt

o

As

at

As

at

01.

04

.20

11Fo

r th

e Ye

arFo

r th

e Ye

ar31

.03.

2012

31.0

3.20

11Fo

r th

e Ye

ar31

.03.

2012

31.0

3.20

120

1.0

4.2

011

``

``

``

``

``

A. T

angi

ble

Ass

ets

Res

iden

tial

Fla

ts

82,

88

9,4

92

-

29,6

02,

00

8

53,2

87,

48

4

43,

671

,99

4

1,27

3,4

28

15,8

53,0

78

29,0

92,

344

24

,19

5,14

0

39,2

17,4

98

(see

no

te

(see

no

te

belo

w)

belo

w)

Leas

eho

ld Im

pro

vem

ents

6,2

39,2

35

98

6,7

51

-

7,22

5,9

86

1,

832

,028

3,

123,

229

-

4

,955

,257

2,

270

,729

4

,40

7,20

7

Off

ice

Equi

pmen

t8

,020

,878

4

95,

90

2 6

2,50

0

8,4

54,2

80

3,

229

,99

5 75

8,5

34

36,0

18

3,9

52,5

11

4,5

01,

769

4

,79

0,8

81

Com

pute

rs &

Per

iphe

rals

24,2

20,0

65

2,73

0,6

46

2,

580

,88

5 24

,36

9,8

26

17,5

95,

818

3,

171,

46

3 2,

413

,40

9

18,3

53,8

72

6,0

15,9

53

6,6

24,2

47

Air

cond

itio

ners

3,16

9,0

56

129

,915

24

,00

0

3,27

4,9

71

1,29

2,0

51

270

,00

7 7,

826

1,

554

,232

1,

720

,739

1,

877

,00

5

Furn

itur

e &

Fix

ture

s9

,125

,326

10

6,6

77

49

,331

9

,18

2,6

72

5,32

7,6

88

72

2,8

29

35,8

86

6

,014

,631

3,

168

,04

1 3,

797,

639

Elec

tric

al It

ems

1,79

5,0

19

-

-

1,79

5,0

19

1,4

09

,479

77

,10

3

-

1,

48

6,5

82

308

,437

38

5,54

1

Mo

tor

Veh

icle

2,9

07,

676

-

54

0,6

25

2,36

7,0

51

2,0

27,9

91

223,

369

4

84

,324

1,

767,

035

6

00

,016

8

79,6

85

Sub

Tota

l13

8,3

66

,74

7 4

,44

9,8

91

32,8

59,3

49

10

9,9

57,2

89

76

,38

7,0

44

9

,619

,96

3 18

,830

,54

2 6

7,17

6,4

66

4

2,78

0,8

23

61,

979

,70

4

Ass

ets

hel

d fo

r di

spo

sal

Res

iden

tial

Fla

ts4

,08

5,13

0

29,6

02,

00

8

-

33,6

87,

138

1,

98

8,0

61

548

,86

5 15

,853

,078

18

,39

0,0

04

15

,29

7,13

4

2,0

97,

06

9

(see

no

te

(see

no

te

belo

w)

belo

w)

Sub

Tota

l4

,08

5,13

0

2

9,6

02,

00

8

-

33,6

87,

138

1,

98

8,0

61

548

,86

5 15

,853

,078

18

,39

0,0

04

15

,29

7,13

4

2,0

97,

06

9

B. I

nta

ngi

ble

Ass

ets

Com

pute

r So

ftw

are

-

1,

100

,09

1

-

1,

100

,09

1

-

33,8

20

-

33,8

20

1,0

66

,271

Sub

Tota

l1,

100

,09

1 1,

100

,09

1 33

,820

33

,820

1,

06

6,2

71

Tota

l

14

2,4

51,8

77

35,

151,

98

9

3

2,8

59,3

49

144

,74

4,5

17

78,3

75,1

05

10

,20

2,6

48

2

,977

,46

4

85,

60

0,2

90

59

,14

4,2

28

6

4,0

76,7

70

Pre

vio

us

Year

19

2,6

37,1

48

8

,78

2,77

4

58,9

68

,04

8

142,

451

,875

9

8,4

08

,151

9

,66

5,26

1 29

,69

8,3

05

78,3

75,1

05

64

,076

,770

No

te :

Ass

ets

reti

red

fro

m a

ctiv

e u

se a

nd

iden

tifi

ed fo

r di

spo

sal d

uri

ng

the

year

are

sh

ow

n s

epar

atel

y at

co

st o

r re

alis

able

val

ue

wh

ich

ever

is le

ss.

14



Security Deposits 14,149,382 12,671,314

Advance Tax Net of Provision for Taxes 25,432,323 35,052,018

Prepaid expenses 1,732,988 2,058,049

Other Advances 15,279,271 10,195,214

Staff Loans(Unsecured) 45,889 134,200

TOTAL 56,639,853 60,110,795

B.8 LONG TERM LOANS & ADVANCES

Other advance includes an amount of 14,805,068/- (Previous year 6,123,628/-) towards unamortized brokerage paid for equity linked saving scheme.

B.9 CURRENT INVESTMENTS

` `


Investments in Mutual Fund (Unquoted)

- Canara Robeco Treasury Advantage Fund (Associate enterprise) 279181.60 units of face value `. 1000/- per unit (Previous year 22818131 units of face value ` 10/- per unit) 346,383,403 283,106,834

NAV ` 1,240.71 (Previous year `. 12.4071)

TOTAL 346,383,403 283,106,834

B.10 TRADE RECEIVABLES


Unsecured & Considered Good Debts outstanding for a period exceeding six months - -

Others 43,130,894 39,901,695

TOTAL 43,130,894 39,901,695

B.11 CASH & CASH EQUIVALENTS


Cash on hand 69,071 63,849

Balance with Banks in Current Accounts 2,702,275 9,905,013

TOTAL 2,771,346 9,968,862

B.12 SHORT TERM LOANS & ADVANCES


Security Deposits 789,420 49,500

Prepaid expenses 5,722,371 4,897,486

Staff Loans & Advances 84,095 157,290

Other Advances 26,554,464 36,340,518

TOTAL 33,150,350 41,444,793

15


Other advance includes an amount of 15,208,802/- (Previous year 6,939,225/-) towards unamortized brokerage paid for equity linked saving scheme.

B.13 REVENUE FROM OPERATIONS

` `

Particulars For the year ended For the year ended 31st March 2012 31st March 2011 (`) (`)

Sale of Services

- Management fee (refer note below) 374,611,799 382,975,940

- Advisory fee 21,514,685 10,435,246

Other Operating Income 3,134,450 9,403,350

TOTAL 399,260,934 402,814,536

Income from Management Fee includes 1,05,23,568/- (previous year 1,04,66,854/-) from Canara Robeco Mutual Fund - General Administration Dept. (CRMF - GAD) & Erstwhile Unit holders Account for the year 2011-2012. The accounts of CRMF - GAD & Erstwhile Unit holders Account for the year 2011-2012 are not yet audited and hence the amount of ̀ 1,05,23,568/- has been taken as income on the basis of certificate obtained from the statutory auditors of CRMF - GAD.

B.14 OTHER INCOME

` `


Interest Income 3,233,665 3,459,320

Dividend Income 22,476,569 11,574,179

Other Non operating Income 1,039,444 1,662,064

Profit on Sale of Fixed Assets - 50,494,336

Foreign Exchange Gain 180,931 33,586

TOTAL 26,930,609 67,223,485

B.15 EMPLOYEE BENEFIT EXPENSES


Salaries, Bonus and other allowances 194,736,851 160,473,163

Contribution to PF, Group Gratuity and other Funds 12,196,374 12,516,171

Other Welfare expenses 14,358,728 17,128,308

TOTAL 221,291,953 190,117,642

Defined Contribution Plan

An amount of 64,31,647/-(Previous year 66,34,863/-) has been recognized as an expense towards contribution to Employees Provident fund. This includes an amount of ` NIL (Previous year ` 970,372) being shortfall on account of mandatory interest which is considered as defined benefit plan. The future shortfall if any, being actuarially not ascertained has not been provided.

Contribution to PF, Group Gratuity and other Funds includes an amount of ̀ 1,60,033/- paid to ESIC for delayed payment pertaining to year 1992 to 1994, 1997 to 1998 and March 2000 to March 2001.

` `

Details of remuneration paid to CEO:

Remuneration payable to the CEO (Manager) re-appointed with effect from September 26, 2010, in term of provisions of scheme 198, 269 and Schedule XIII to the Act is as under :


Salary and Allowances 3,000,000 3,000,000

16


B.16 OTHER EXPENSES


Advertisement & Publicity 2,138,392 2,924,622

Business Development Expenses 2,982,326 4,394,125

Computer software & development 8,562,473 8,694,927

Directors Sitting Fees 380,000 480,000

Distribution & Marketing Expenses 26,586,354 56,420,543

Donations 130,000 154,701

Electricity & Water Charges 4,697,079 5,418,077

Fund Accounting 7,653,995 8,203,183

Insurance 115,788 181,418

Legal and Professional Charges 6,166,266 5,908,955

Lease Rental 25,194,735 20,856,051

Loss on Sale of Fixed Assets 112,800 -

Miscellaneous Expenses 1,344,022 1,492,744

Outsourced Manpower expenses 10,938,011 13,005,507Payment to Statutory Auditors

— Audit Fees 375,000 375,000

— Tax Audit Fees 135,000 100,000

— Others 20,000 -

— Reimbursement of expenses 2,500 2,200

Postage , Telegrams & Telephone 7,506,652 9,346,481

Printing & Stationery 2,797,109 5,159,169

Rates & Taxes 192,701 229,694

Recruitment, Seminar & Training 2,390,521 1,818,233 Repairs & Maintenance

- Building 2,531,920 3,776,340

- Others 6,424,088 6,553,554

Scheme Expenses 219,030 23,600

Subscription 13,104,949 13,473,506

Travelling & Conveyance 15,622,557 15,084,240

TOTAL 148,324,267 184,076,868

B.17 Leases

The Company has taken various office premises under operating or leave & license agreements. These are generally not non cancelable and range between 11 months and 5 years under leave and license, or longer for other leases and are renewable by mutual consent on mutually agreeable terms. The Company has given refundable interest free security deposits under certain agreements.

Lease payments are recognized in the Statement of Profit & Loss Account under note no.B.16.

The future minimum lease payments under not non-cancelable operating lease

Lease obligation Payable As at As at 31st March 2012 31st March 2011 (`) (`)

Not later than 1 year 27,989,480 20,284,753

Later than 1 year & not later than 5 years 54,133,705 16,725,997

Later than five years 40,841 NIL

17


B.18 Contingent Liability

Contingent Liability to Canara Bank on receipt of Claim/Settlement of dispute towards property tax & other charges pertaining to the building occupied by the Company till 30th September, 2003. The sum involved is not quantified.

B.19 Activity in Foreign Currency

a) Earnings in foreign currency (on accrual basis)


Advisory Fees, Consultancy Fees 24,649,135 19,838,596

b) Expenditure in foreign currency (on accrual basis)


Travel 754,770 1,442,805

Salary / Reimbursement 3,000,000 3,102,060

Subscription & Gifts 770,263 999,520

b) Foreign currency exposures which are not hedged as at the Balance Sheet date

Currency Payable As at As at Payable As at

31st March 2012 31st March 2012 31st March 2012

USD NIL 164,942 (164,942)

Euro NIL 6,404 (6,404)

Receivables Net (Receivable) /

B.20 Segment Reporting:

Based on guiding principles given in Accounting Standard – 17 “Segment Reporting” ,the Company’s primary business segment is administering Mutual Fund Schemes. As the Company has a single primary business segment, the disclosure requirements of AS – 17 in this regard are not applicable. The company’s operations being confined to India only, there is no reportable secondary segment.

B.21 Related party transactions:

Related party disclosure as required by the Accounting Standard 18, “Related party Disclosures”, are given below :

Holding Company Canara Bank

Entity having significant Influence over the Robeco Groep N.V. (49% J.V. Partner)Company Robeco India Holding B.V.

Fellow Subsidiaries Canbank Computer Services Ltd. (CCSL)Canbank Financial Services Ltd. (CFSL)Canbank Factors Ltd. (CFL)Canbank Venture Capital Fund Ltd. (CVCFL)Canara Bank Securities Limited (CBSL)Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd (CHOBCI)

Under Common Control of HoldingCompany Canfin Homes Ltd. (CHL)

Under the common control of entity having Robeco Hongkong Ltdsignificant Influence over the company Robeco Institutional Asset Management B.V.

Please refer annexure 1 for name of other entities

Overseas Joint Venture Commercial Bank of India LLC

Key Management Personnel Members of the Management Team Comprising of : Mr. Rajnish Narula (Chief Executive Officer)Mr. Edwin Rietkerk (Chief Operating Officer)

Mutual Fund managed by the company Canara Robeco Mutual Fund (Schemes)

18


Sr. Nature of Transactions Relationship Company/ Expenditure Income Assets LiabilitiesNo. Person Name

1 Rent Holding company Canara Bank 757,478 267,175 NIL 120,000

(417,937) (230,400) (19,200) (NIL)

Fellow Subsidiary Canbank Factors Ltd. NIL NIL

(56,047) (NIL)

2 Bank Charges Holding company Canara Bank 27,945

(23,062)

3 Salary & other benefits Key Management Personnel 12,418,382 851,251 851,251 55,663

(13,349,111) (NIL) (NIL) (58,135)

Entity having significant Robeco Groep N.V. (NIL)

influence over the Co. (3,000)

4 Reimbursement of Salary Holding company Canara Bank 930,573 269,055

& Other Benefits (1,071,596) (205,315)

5 Reimbursement Entity having significant Robeco Groep N.V. 141,784 102,284

of expenses influence over the Co. (NIL) (NIL)

Under common control of Robeco Institutional 312,163 312,163

entity having significant Asset Mgmt B.V. (1,443,964) (682,671)

influence

6 R & T charges for Scheme Fellow Subsidiary Canbank Computer 12,000 NIL

& ARN holders Services Ltd. (22,000) (NIL)

7 Reimbursement of Holding company Canara Bank 125,000 125,000

Maintenance charges (437,500) (437,500)

Fellow Subsidiary Canbank Factors Ltd. NIL

(5,341)

8 Rates and taxes Fellow Subsidiary Canbank Factors Ltd. NIL

(11,810)

9 Scheme Exp Holding company Canara Bank NIL

(4,130,335)

Mutual Fund managed by Canara Robeco Mutual 419,030 419,030

company Fund (Schemes) (23,600) (NIL)

10 Bank Balance Holding company Canara Bank 1,126,137

(6,124,745)

11 Security Deposit Fellow Subsidiary Canbank Factors Ltd. NIL

(52,650)

12 Sale of Fixed Asset Holding company Canara Bank NIL

(38,100,000)

13 Advisory fees Under common control entity Robeco Hongkong Ltd 21,514,685 8,461,904

having significant influence (10,435,246) (3,655,287)

14 Management fees Mutual Fund managed by Canara Robeco Mutual 374,611,799 34,548,992

company Fund (Schemes) (382,975,940) (36,057,241)

15 Brokerage Mutual Fund managed by Canara Robeco Mutual 1,299,798 77,318,000 9,343,000 1,299,798

company Fund (Schemes) (NIL) (39,177,093) (28,277,093) (NIL)

16 Investments Mutual Fund managed Canara Robeco Mutual 346,383,403

by company Fund (Schemes) (283,106,834)

17 Dividend Income Mutual Fund managed Canara Robeco Mutual 22,476,569

by company Fund (Schemes) (11,574,179)

` ` ` `

( ` in '000)

- Figures in brackets represent corresponding amount of Previous year

- Related party relationship have been identified by the management and relied upon by the auditor.

B.22 Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service.

The following tables summarize the components of net benefit expense recognized in the profit and loss account and the funded status and amounts recognized in the balance sheet.

19


Particular Gratuity Gratuity31st March 2012 31st March 2011

(`) (`)

Current service cost 1,583,320 844,609

Interest cost on benefit obligation 813,306 522,740

Expected return on plan assets (666,274) (427,929)

Net actuarial( gain) / loss recognized in the year 857,658 (426,430)

Past Service Cost - 2,717,445

Net benefit expense 2,588,010 3,230,435

Actual return on plan assets 730,748 536,993

Profit and Loss account

Net employee benefit expense (recognized in Employee Cost)

Balance sheet

Details of Provision for gratuity


(`) (`)

Defined benefit obligation 11,509,182 8,734,301

Fair value of plan assets (11,988,214) (8,282,912)

Plan (asset)/ liability (479,032) 451,389

Changes in the present value of the defined benefit obligation are as follows:


(`) (`)

Opening defined benefit obligation 8,734,301 5,769,613

Interest cost 813,306 522,740

Current service cost 1,583,320 844,609

Benefits paid (543,877) (802,740)

Actuarial (gains)/ losses on obligation 922,132 (317,366)

Closing defined benefit obligation 11,509,182 8,734,301

Changes in the fair value of plan assets are as follows:


(`) (`)

Opening fair value of plan assets 8,282,912 5,333,700

Expected return 666,274 427,929

Contributions by employer 3,518,431 3,214,959

Benefits paid (54,387) (802,740)

Actuarial gains / (losses) 64,474 109,064

Closing fair value of plan assets 11,988,214 8,282,912

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled.

The principal assumptions used in determining gratuity and post-employment benefit obligations for the Company's plans are shown below:


% %

Discount rate 8.65 8.20

Expected rate of return on Plan assets 7.50 7.50

Salary Escalation Rate 10% for first 5 years 10% for first year

& 7% thereafter & 7% thereafter


20

B.23 Earning per share is calculated by dividing the profit attributable to the equity shareholders by the average number of equity shares outstanding during the year. The numbers used in calculating basic and diluted earnings per equity shares are as follows:

As per our report of even date S. Raman D.K.KapilaFor Khimji Kunverji & Co., Chairman Director Chartered Accountants Firm Registration No. 105146W

Sd/- Sd/- Sd/- Sd/-Hasmukh B. Dedhia Edwin Rietkerk Rajnish Narula Jignesh Modi Partner - (F-33494) Chief Operating Officer Chief Executive Officer Company SecretaryPlace : Mumbai Place : Bangalore Date : 26 April 2012 Date : 30 April 2012

Sd/- Sd/-


A. Before Exceptional Items

Net Profit as disclosed under Profit & Loss Account 41,966,380 61,028,754

Weighted Average no. of equity shares during the year 20,104,357 20,104,357

Basic & Diluted EPS (`) 2.09 3.04

B. After Exceptional Items

Net Profit as disclosed under Profit & Loss Account 41,966,380 61,028,754

Weighted Average no. of equity shares during the year 20,104,357 20,104,357

Basic & Diluted EPS (`) 2.09 3.04

B. 24 Employee benefit under other long term liabilities and other current liabilities includes bonus amounting to 53,542,813 /- (Previous Year ` 40,896,195 /-) payable to employees based on estimates/judgment of the Management.

B.25 Based on the information available with the Company, there are no amounts due to Micro Small and Medium Enterprises as defined in Micro Small and Medium Enterprises Development Act, 2006 on account of principal and/or interest as at the close of the year

B.26 Previous Years figures are regrouped and rearranged wherever necessary, to confirm to Current year classification.

`


21

ANNEXURE - 1

Name of entities under the common control of entity having significant Influence over the company

Sr. Company Name Sr. Company NameNo. No.

1. Robeco International Holding B.V. 23. Robeco Institutional Asset Management B.V.

2. Robeco US Holding, Inc. 24. SAM Group Holding AG

3. Harbor Capital Advisors, Inc. 25. SAM Indexes GbmH

4. Harbor Funds Distributors Inc. 26. SAM Private Equity AG

5. Harbor Services Group Inc. 27. Robeco AG

6. Robeco Investment Management, Inc. 28. SAM Research AG

7. Robeco Investment Management, Inc. 29. Sustainable Asset Management USA, Inc.

8. Robeco Securities L.L.C. 30. SAM Sustainable Asset Management AG

9. Robeco Trust Company 31. Robeco Luxembourg S.A.

10. Robeco Institutional Asset Management 32. Robeco Securities Lending B.V.US, Inc.

11. Robeco India Holding B.V. 33. Robeco Manager Clean Tech II B.V.

12. Robeco Gestions S.A. 34. Robeco General Partner Funds B.V.

13. Ro-Boetie S.A.S. 35. Robeco Bestuurder Bewaarder B.V.

14. Robeco Hong Kong Ltd. 36. Robeco General Partner European II B.V.

15. Robeco Taiwan Ltd. 37. Robeco General Partner Sustainable B.V.

16. Robeco Teda (Tianjin) Investment 38. Robeco General Partner Global IIB.V.

Management Co. Ltd.

17. Robeco Teda (Tianjin) Equity Investment 39. Robeco Manager Responsible II B.V.Management Co. Ltd.

18. Corestone Investment Managers AG 40. SET Venture Partner, powered by Chrysalix and Robeco B.V.

19. Robeco Direct N.V. 41. Robeco Manager European III B.V.

20. Robeco Nederland B.V. 42. Robeco Manager BSR B.V.

21. Transtrend B.V. 43. Robeco Manager Global III B.V.

22. Kentyde B.V.

Cash Flow Statement for the year ended 31st March, 2012

22

2011-2012 2010-2011 ` `

CASH FLOWS FROM OPERATING ACTIVITIES

Net Profit/(Loss) before impairment loss and taxation 46,372,675 86,376,709

Adjustments for :

Depreciation 10,202,648 9,466,802

Loss/(Profit) on sale of Fixed assets (Net) 112,800 (50,494,336)

Loss/(Profit) on sale of Investments (Net) -

Dividend received (22,476,569) (11,574,179)

Interest on Income Tax Refund Accrued (3,223,943) (3,433,086)

Provision for leave encashment (1,152,062) 779,946

Provision for gratuity (451,389) (16,988,515) 98,686 (55,156,167)

OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES 29,384,160 31,220,541

Adjustment for:

(Increase)/Decrease in current assets (3,229,199) (40,215,182)

Increase/(Decrease) in current liabilities 3,994,289 (10,226,948)

(Increase)/Decrease in loans and advances 2,145,691 2,910,780 3,342,878 (47,099,251)

CASH GENERATED FROM/(USED IN) OPERATIONS 32,294,940 (15,878,710)

Taxes paid (6,690,448) (15,044,275)

NET CASH (USED IN)/FROM OPERATING ACTIVITIES (A) 38,985,388 (834,435)

CASH FLOW FROM INVESTING ACTIVITIES

Purchase of fixed assets (5,549,981) (8,782,774)

Proceeds from sale of fixed assets 167,077 79,764,077

Purchase of investments (343,276,569) (286,074,179)

Proceeds from sale of investments 280,000,000 205,000,000

Dividend received 22,476,569 (46,182,904) 11,574,179

NET CASH (USED IN)/FROM INVESTING ACTIVITIES (B) (46,182,904) 1,481,303

CASH FLOW FROM FINANCING ACTIVITIES

Issue of share capital - -

NET CASH (USED IN)/FROM FINANCING ACTIVITIES (C) - -

NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS(A+B+C) (7,197,516) 646,869

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 9,968,862 9,321,993

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 2,771,346 9,968,862

Note: Previous year's figures have been regrouped / rearranged to confirm the current year's presentation, whenever necessary.


As per our report of even date S. Raman D.K.KapilaFor Khimji Kunverji & Co., Chairman Director Chartered Accountants Firm Registration No. 105146W

Sd/- Sd/- Sd/- Sd/-Hasmukh B. Dedhia Edwin Rietkerk Rajnish Narula Jignesh Modi Partner - (F-33494) Chief Operating Officer Chief Executive Officer Company SecretaryPlace : Mumbai Place : Bangalore Date : 26 April 2012 Date : 30 April 2012

Sd/- Sd/-

23


KOLKATA CHANDIGARHHorizon, Block B, 5thFloor, 57, Chowringhee Road Canara Bank, Circle Office,Kolkata - 700 071. 3rd Floor, Sector 34-A,Phone: +91 33 30584716 / 17 / 18 Chandigargh - 160 [email protected] Phone: +91 172 2648007

[email protected] MANGALORE227/2A, Essel Towers, Bunts Hostel Circle DELHIMangalore - 575 003. 306, Kanchen Junga Bldg.,Phone: +91 824 2448804 18, Barakambha Road,[email protected] New Delhi - 110 001.

Phone: +91 11 23326417 / 23314175AHMEDABAD [email protected] Unit No.104, Onyx Building, Near Raj Hans Society,IDBI Cross Roads, Off. C.G. Road BANGALOREAhmedabad 380 006. # 4&5, Ground Floor, Business Point,Phone: +91 079-40278936 Next to Brigade Towers,137, Brigade Road,Fax : +91 079-40264254 Bangalore - 560 [email protected] Phone: +91 80 39871400 / 01

Fax: +91 80 30901092GOA [email protected] Shop No 3, Kamat Chamber,Opp. Hotel Neptune,Panajim, CHENNAIGoa - 403 001. 770-A, 1st Floor,Spencer Annexe,Phone: +91 832 2422415 / 6450631 Anna Salai,[email protected] Chennai - 600 002.

Phone: +91 44 28492598MUMBAI [email protected] Construction House, 4th Floor,5, Walchand Hirachand Marg, HYDERABADMumbai - 400 001. V. V. Vintage Boulevard, 1st Floor, Phone: +91 22 22621371/66585000/10 Municipal H. No.6-3-1093,[email protected] Somajiguda, Raj Bhavan Road,

Hyderabad - 500 082.PUNE Phone: +91 40 39132301 / 39132302Deccan Mall, Office 1 & 2, 2nd Floor, Fax: +91 40 39132300Deccan Gymkhana [email protected] Pune - 411 004.Phone: +91 20 30923820/21/22/23/24 KOCHIFax: +91 20 25661454 Door No. XL/6030,1st Floor, Al-Falah [email protected] (Opp. Oriental Bank of Commerce)

Broadway North End,SURAT Kochi - 682 031.M - 8/9, Jolly Plaza, Athwagate, Phone: +91 484 2364846Surat - 395 001. [email protected] Phone: +91 261 [email protected]

INDORE211, City Centre, M. G. Road, Indore - 452 003.Phone: +91 731 [email protected]

Sales Offices

annual report 2012 - canara robeco mutual fund the members : your directors present their nineteenth...

Documents