baroda pioneer - equity 150710 · poland. in 2002, it acquired the momentum group, which, in...

2009 - 2010

Baroda Pioneer Balance Fund(An Open Ended Balance Scheme)

Baroda Pioneer Growth Fund(An Open Ended Growth Scheme)

Baroda Pioneer ELSS’96 Fund(An Open Ended Equity Linked Saving Schemes)

#Baroda Pioneer Global Fund(An Open Ended Equity Scheme)

#Baroda Pioneer Diversified Fund(An open Ended Equity Scheme)

#Schemes were mergerd with Baroda Pioneer Growth Fund

w.e.f. October 30, 2009.

ANNUAL REPORT 2009 - 2010

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ANNUAL REPORT OF THE BOARD OF TRUTEES FOR THE YEAR ENDED 31.03.2010The Board of Trustees of Baroda Pioneer Mutual Fund has great pleasure in presenting the seventeenth Annual Reportand the Audited Accounts of the Schemes of Baroda Pioneer Mutual Fund for the year ended March 31, 2010.1. Scheme Performance, Future outlook and operations of the Schemes,

Baroda Pioneer Asset Management Company Limited (“AMC”), the investment manager to Baroda PioneerMutual Fund (“Fund”), has, since June 2008, when Pioneer Global Asset Management SpA (“Pioneer”)acquired a 51% stake in the AMC, been focussed in strengthening its operations - right from buildinginfrastructure, to increasing team strength across functions, introducing policies and procedures, andleveraging technology. The AMC’s endeavours are, thus, headed in a direction that clearly spells out growth,through strengthening the operational platform, widening the umbrella of products on offer, setting consistentstandards in servicing investors and building on the investment management and business developmentpillars.And these endeavours have begun to bear fruit, as reflected in the rise in Average Assets under Management(“AAUM”) of the Fund, which have more than trebled during the year, from Rs. 1,132 crore in March 2009 toRs. 3,552 crore in March 2010. This rise in corpus can be attributed to the trust and confidence reposed byinvestors in the Fund on the back of the successful launch of two schemes, viz. Baroda Pioneer TreasuryAdvantage Fund and Baroda Pioneer Public Sector Undertaking (PSU) Bond Fund.Adding to this story of continuing growth is the fact that select schemes of Baroda Pioneer Mutual Fund havebeen favourably rated by the Economic Times - Quarterly MF Tracker during the quarter ended March 31,2010. Baroda Pioneer Growth Fund has been rated in the Gold category and Baroda Pioneer Balance Fundand Baroda Pioneer ELSS ’96 Fund have been rated in the Silver category.During the current financial year, Baroda Pioneer Mutual Fund plans to introduce some more new mutual fundschemes to cater to the varying needs of the investing community.

Scheme Performance

Scheme Net Asset Net Assets One year Since Inception BenchmarkName Value as on as on March Compounded Compounded

March 31, 31, 2010 Annualised Annualised2010 (Rs.) (In Rs. Returns (%) (Rs.) Returns (%)

Crores)

Scheme Benchmark Scheme Benchmark

Baroda RD-13.6845 785.35 G-4.22 G-5.94 4.17 CRISILPioneer RG-15.9710 IG-4.39 3.69 IG-4.67 Liquid FundLiquid IDD-10.0063 (Inception IndexFund IG-10.5381 Date -

February05, 2009)

Baroda D-27.83 57.10 G-85.20 83.09 G-27.61 N.A. CNX 100Pioneer G-49.41 (InceptionGrowth Date -Fund October

12, 2003)

Baroda D-26.07 0.92 G-50.41 47.31 G-15.57 17.04 CRISILPioneer G-25.81 (Inception BalanceBalance Date FundFund - October Index

12, 2003)

Baroda 24.23 18.61 87.39 80.54 14.58 16.78 BSE SensexPioneer (InceptionELSS’96 Date -Fund March 31,

1996)Baroda D-14.3073 0.14 G-2.98 5.41 G-4.56 5.31 CRISILPioneer G-14.3047 (Inception CompositeIncome Date - Bond FundFund February Index

14, 2002)

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BARODA PIONEER MUTUAL FUND

Scheme Performance (Contd.)

Scheme Net Asset Net Assets One year Since Inception BenchmarkName Value as on as on Compounded Compounded

March 31, March Annualised Annualised2010 (Rs.) 31, 2010 Returns (%) (Rs.) Returns (%)

(In Rs. Crs)Scheme Benchmark Scheme Benchmark

Baroda D-13.6684 0.07 G-12.26 5.14 G-3.97 6.94 I-Sec MiBEXPioneer G-13.6679 (InceptionGilt Fund Date -

February14, 2002)

Baroda MD-12.5760 2.18 G-2.94 14.25 G-4.21 8.18 CRISILPioneer QD-12.2214 (Inception MIPMonthly G-12.5754 Date - BlendedIncome July 28, IndexPlan (MIP) 2004)FundBaroda G-10.1735 136.01 - - - - CRISILPioneer MD-10.0286 CompositePublic QD-10.0532 BondSector IndexUndertaking(PSU)Bond FundBaroda IDD-10.0091 1076.19 - - - - CRISILPioneer IG-10.3729 Liquid FundTreasury IWD-10.0017 IndexAdvantage RDD-10.0095Fund RMD-10.0390

RWD-10.0017RG-10.3601

Past Performance may or may not be sustained in future.

Notes :

1. Baroda Pioneer Treasury Advantage Fund (Inception Date: June 29, 2009) and Baroda Pioneer PSUBond Fund (Inception Date: December 24, 2009) were launched during the year ended March 31, 2010,and hence one year and since inception compounded annualised returns are not available.

2. During the year, (i) Baroda Pioneer Children Fund - Gift Plan & Baroda Pioneer Children Fund - StudyPlan were wound up and (ii) Baroda Pioneer Diversified Fund and Baroda Pioneer Global Fund mergedinto Baroda Pioneer Growth Fund.

3. I stands for “Institutional” Plan and R, for “Regular”/“Retail” Plan. D stands for “Dividend” and G, for“Growth”. MD, WD and DD stand for “Monthly Dividend”, “Weekly Dividend” and “Daily Dividend”respectively.

4. Since Inception Returns are computed from the Inception Date, viz., Date of Allotment of the schemes.

5. Since Inception Returns for CNX 100 (with respect to Baroda Pioneer Growth Fund) cannot be computedas CNX 100 was introduced in August 2006.

FUTURE OUTLOOK

After a rather difficult 2008-09, where assets under management of the mutual fund industry shrank significantly,the financial year 2009-10 saw an upward swing in the mutual fund industry.

While the industry did witness a surge in redemption with gross redemptions of Rs. 99,35,942 crore,representing an 82% increase over the previous year figure of Rs. 54,54,650 crore, gross mobilizations alsoregistered a growth of 45.84%, shooting up to Rs. 100,19,023 crore from Rs. 54,26,353 crore in the previousyear. On a net basis, there was an inflow of Rs. 83,081 crore as against a net outflow of Rs. 28,297 crorein the last year. The AAUM of the industry as on March 31, 2010 stood at Rs. 7,48,997.16 crore, as against


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Rs. 4,93,285 crore on March 31, 2009. Also, as on March 31, 2010, there were 38 SEBI registered AssetManagement Companies, as against 35 on March 31, 2009. The new Asset Management Companies whoentered the industry in 2009-2010 were Axis Asset Management Company Ltd., Peerless Funds ManagementCo. Ltd. and Shinsei Asset Management (India) Pvt. Ltd.

The Indian mutual fund industry is in the midst of a transition. The industry in the last one year has seen anumber of changes implemented by the regulator. These changes have been brought about, keeping in mindthe best interests of investors. However, like all changes, these will take some time to settle-in, requiring theindustry, distributors and investors to go through a period of transition. However, the year 2009-10 did showsignificant growth in assets, as detailed above.

The industry has evolved significantly over the past few years; however, it still has a long way to go. Indiaoffers vast potential for growth, backed by a resilient economy with a growth rate of about 7.5% and a highrate of household savings. The focus of the Industry and Baroda Pioneer Mutual Fund specifically, would beto harness these latent opportunities to build a sustainable business franchise.

Through 2010-11, we intend to launch innovative products aimed at getting more retail investors into the fold.We intend to grow our presence in the Bank of Baroda network by increasing our geographical coverage.The other critical aspect we will be focussing on is to build awareness for our products and services. We arehopeful that these initiatives will help us grow at a rate faster than industry standards, thereby deliveringvalue to both our shareholders and our investors.

2. Brief Background of the Sponsors, Trust, Board of Trustees and AMC

Sponsors:

Pioneer Global Asset Management S.p.A.

With over 80 years’ experience in fund management, Pioneer Investments* (the “Group”) has a history whichfew asset management companies can match. Pioneer Investments flagship fund, Pioneer Fund™, is thethird oldest mutual fund in the United States. It has not only weathered volatile market conditions, but hasoutperformed common stocks, long term bonds, US Treasury Bills and inflation since its foundation in 1928.

Innovation is part of the Pioneer heritage. At the forefront of the establishment of the modern US mutual fundindustry, Pioneer Investments is an industry leader in the development of this market in Europe. The Groupwas the first asset management company to launch investment funds in Italy, first in Germany to register USmutual funds under the Foreign Investments Act, and first to distribute open-ended investment funds inPoland. In 2002, it acquired the Momentum Group, which, in keeping with Pioneer Investments’ tradition ofinnovation, is one of the founders of the funds of the hedge funds industry.

In October 2000, UniCredito Italiano S.p.A. (“UCI”) completed its acquisition of the Pioneer Group, Inc.,further bolstering the capabilities of its asset management operations in Milan and Dublin. Through theconsolidation of these powerful investment houses, Pioneer Investments is ideally positioned to expand itsglobal reach and penetrate deeper into each market.

The main activity of Pioneer Investments is the management and distribution of over 180 investment fundsand alternative investments. With investment centres in Boston, Dublin, Milan and Singapore, it managesassets worth 176 billion (Approx.) as on December 31, 2009. Headquartered in Milan, Pioneer Investmentshas a presence in over 31 countries around the world.

The investment process is active, bottom-up and research-driven, based upon the principles of fundamentalinvesting that Pioneer Investments has used since 1928. The approach enables Pioneer Investments tomake informed judgements about how industries and companies have operated in the past, about theirfuture behaviour and about the effects of these variables on stock prices. We add a strong quantitativediscipline to this process, which supports the work of fundamental analysts and keeps a close check on theinvestment risks for its funds.

* Pioneer Investments is a trading name of the Pioneer Global Asset Management S.p.A. group of companies(“PGAM”). PGAM is a wholly owned subsidiary of UniCredit S.p.A.

Bank of Baroda

In the Indian banking universe, Bank of Baroda occupies a distinct position. Bank of Baroda is a state-ownedbank with more than 100 years of successful existence.

The name inspires confidence among its customers. The track record in the market, the sound financials, itscontribution to social sectors and even to policy-making has given the Bank a unique place in the marketplace.The Bank has uninterrupted profit performance and consistent record in dividend payments.

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Bank of Baroda’s vast distribution channel of domestic branches (at 3100 on 31st March, 2010), extensioncounters and ATMs (at 1,315 on 31st March, 2010), and a strong international presence in 25 countries(excluding India) covering regions like U.S.A., U.K., Africa, Middle East and Asia-Pacific zones, through 78offices as on March 31, 2010, has ensured a wide global client base.

During the financial year 2009-10, the total business of the Bank increased to Rs. 4,16,080 crore, reflectinga growth of 24%. The level of net profit at Rs. 3,058 crore reflected a robust year-on-year growth of 37.3%.On the front of asset quality management, the gross NPA declined from 1.27% in 2008-09 to 1.23% in 2009-10. Bank of Baroda enjoyed a CRAR of 14.36% (as per the Basel II) and the ROAA stood at 1.21% as at end-March 2010.

Baroda Pioneer Mutual Fund

Baroda Pioneer Mutual Fund (“the Mutual Fund” or “the Fund”), earlier known as BOB Mutual Fund, hasbeen constituted as a Trust in accordance with the provisions of the Indian Trusts Act, 1882 (2 of 1882).Thetrust deed has been registered under the Indian Registration Act, 1908. The Mutual Fund is registered withSEBI under Registration No. MF/018/94/2, dated November 24, 1994.

Baroda Pioneer Mutual Fund was established by Bank of Baroda by the execution of a Trust Deed datedOctober 30, 1992. Pioneer Global Asset Management SpA acquired 51% of the shareholding of BarodaPioneer Asset Management Co. Ltd. (earlier known as BOB Asset Management Company Limited) andbecome the co-sponsor of Baroda Pioneer Mutual Fund. SEBI approved the name of the fund to be changedto Baroda Pioneer Mutual Fund vide their letter IMD/RB/134922/08 dated August 12, 2008.

The Sponsors are not responsible for any loss resulting from the operation of the Schemes beyond the initialcontribution of Rupees Ten lakh towards the establishment of the Mutual Fund.

The registered office of the Baroda Pioneer Mutual Fund is 501, Titanium, 5th Floor, Western Express Highway,Goregaon (E), Mumbai - 400 063.

BOARD OF TRUSTEES

Name Occupation Residential/office Address Other Directorships

Mr. R. L. Baxi Retired Director & C – 23/24, Modinagar, ESS DEE Aluminium Ltd., and(Chairman and General Manager, Adarsh Co-op Society, GIC Asset Management Co. Ltd.

Independent The New India Off Mathuradas Road,Trustee) Assurance Co. Ltd. Kandivli (West),

Mumbai - 400 067

Mr. V. H. Bhatia Retired General 101, Cypress Woods, Nil(Independent Manager, 1st Floor, 16 Road,Trustee) Bank of Baroda Near Shivsagar,

Bandra (W)Mumbai 400 050

Mr. Shrinivas Retd. DGM, A 904, Shagun Tower, NilSuvarna Bank of Baroda Gen. A. K. Vaidya Marg,(Independent Goregaon (E)Trustee) Mumbai- 400063

Mr. A. D. M. General Manager Bank of Baroda Clearing Corporation of India Ltd.,Chavali Bank of Baroda, Kalpataru Heritage Building, Central Depository Services (India)(Associate 6th Floor, Naik Motwani Marg, Limited, India Ideas.com Ltd.Trustee) Fort, Mumbai - 400001.

The Trustees of Baroda Pioneer Mutual Fund seek to supervise the role of the AMC through the reportingmechanism, calling for compliance of the SEBI (MF) Regulations 1996, and the investment policy of BarodaPioneer Mutual Fund. The investment policy also incorporates guidelines and restrictions to be followed bythe AMC. The compliance of SEBI Regulations is reported by the AMC to the Trustees on a bi-monthly basis,as required by the compliance manual of Baroda Pioneer Mutual Fund. The AMC also files a quarterly reporton its activities with the Trustees. As per the Trust Deed and the SEBI (Mutual Funds) Regulations, 1996, theTrustees have several rights, duties and responsibilities, all of which are directed at ensuring that the unitholders’ interests are protected at all times.

The Trustees have formed an Audit Committee to review the internal audit system of Baroda Pioneer MutualFund and the recommendations of the internal and statutory auditors. The Committee is chaired by anIndependent Trustee.


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BARODA PIONEER ASSET MANAGEMENT COMPANY LIMITED

Baroda Pioneer Asset Management Company Limited, formerly known as BOB Asset Management CompanyLtd, has been incorporated under the provisions of the Companies Act, 1956. The company was a whollyowned subsidiary of Bank of Baroda. On 27th June 2008, Pioneer Global Asset Management SpA acquired a51% shareholding of BOB Asset Management Company Limited. Subsequently, the name of the AMC waschanged to Baroda Pioneer Asset Management Company Limited. As per the SEBI (Mutual Funds) Regulations,1996, at least 50% of the Board of Directors is composed of independent members and the remainder isnominated for appointment by the Sponsors of the AMC. The net worth of BPAMC as on 31st March 2010 isRs. 64.72 Crore.

BOARD OF DIRECTORS

The Investment Manager has at present the following nine Directors, out of whom five Directors are Non-Executive Independent Directors.

Name Brief Particulars

Dr. Anil K. Khandelwal Dr. Anil K Khandelwal is Ex-Chairman & Managing Director, Bank of Baroda.Chairman andAssociate Director

Mr. M. D. Mallya Mr. M. D. Mallya is the Chairman and Managing Director of Bank of Baroda. PriorAssociate Director to joining the Bank, he was the Chairman & Managing Director of Bank of

Maharashtra. In a career spanning over 31 years, he has acquired a richexperience in banking at various positions and assignments.

Mr. Angus Stening Mr. Angus Stening has been the CEO, Asia & Emerging Markets, at PioneerAssociate Director Investments since early 2007, and prior to that, was Head of Central & Eastern

Europe (2004-07). He is also a director of various companies of the PioneerGroup.

Mrs. Minal Bhagat Mrs. Minal Bhagat is General Manager (IBO & SUBs), Bank of Baroda, responsibleAssociate Director for monitoring performance of the Bank’s domestic subsidiaries, associate banks,

joint ventures and Inter Branch Operations.

Prof. B. B. Bhattacharya Dr. B. B. Bhattacharya is currently the Vice-Chancellor of Jawaharlal NehruIndependent Director University. Prior to that, he was Director (2001-2005) and Professor (1981 onwards)

at the Institute of Economic Growth, Delhi.

Dr. P. N. Khandwalla Dr. P. N. Khandwalla taught at McGill University, Canada, for several yearsIndependent Director before returning to India in 1975. Since then he was a professor at the Indian

Institute of Management, Ahmedabad, until his retirement in 2002. He was L&TChair Professor of Organizational Behaviour at IIMA from 1985 to 1991 and theDirector of IIMA up to 1996.

Mr. G. P. Gupta Mr. G. P. Gupta is Ex-Chairman & Managing Director, Industrial Development BankIndependent Director of India (July 1998 - January 2001). Mr. Gupta was also Chairman, Unit Trust of

India (January 1997 - June 1998).

Mr. Shiv Dayal Mr. Shiv Dayal is a founder and the Managing Director of Langham Capital, andIndependent Director is responsible for managing all aspects of the firm’s activities, including origination

and executing transactions, client relationship management and financialmanagement. He is also the Chairman of F1F9 (India) Private Ltd. Immediatelyprior to founding Langham Capital, Mr Dayal managed two technology venturesin Europe, worked in the Mergers & Acquisitions groups at JPMorgan and DresdnerKleinwort Benson in London and New York.

Mr. Rohit Arora Mr. Rohit Arora is a founder and the Chairman of EMR Technology Ventures (P)Independent Director Ltd. Mr. Arora has over two decades of experience in business process

outsourcing, investment banking and management consulting. Mr. Arora is alsothe founder director of AR Credit, a transaction processing company focused onthe domestic BPO market. He was earlier the Managing Director of AIA CapitalIndia Pvt. Ltd., the Investment Banking arm of AIG - American InternationalGroup.

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3. Investment Objectives of and Basis and policy of Investment underlying the Schemes:Baroda Pioneer Growth Fund

The Scheme aims to generate long term Capital appreciation from an actively managed portfolio of equityrelated instruments.

Investments are made in primary as well as secondary markets. The portfolio is sufficiently diversified as toreduce the risk of underperformance due to unexpected security specific factors. The key factors forming thebasis of investment by the scheme are (i) indentifying attractive opportunities on the basis of Governmentpolicies, research report and overall economic conditions, (ii) factors like fundamentals of the business,market capitalisation industry structure, quality of management etc. and (iii) sector weightage and stockselection within the sector.

Baroda Pioneer Gilt Fund

The Scheme aims to invest in Government of India dated securities, State Government dated securities andGovernment of India Treasury Bills.

The scheme invests in Government Securities only, with the exception of investments in money marketinstruments, repos, reverse repos, etc.

Baroda Pioneer Monthly Income Plan (MIP) Fund

The Scheme aims to generate regular income through investment in debt and money market instrumentsand also to generate long-term capital appreciation by investing a portion in equity and equity relatedinstruments.

The key factors forming the basis of investment by the scheme are (i) indentifying attractive opportunities onthe basis of Government policies, economic development, monetary policy, research report and overalleconomic conditions and development, (ii) issuers/companies selection for investment exposure is based onfinancial parameters such as fundamentals of business, quality of management, turnover, financial strengthof the company and the key earnings drivers, net worth, Interest coverage ratio, profitability track record andthe liquidity of the securities/instruments, (iii) The scheme emphasises on well managed companies, withabove average growth prospects, whose debt securities can be purchased at a good yield and are listed asinvestment grade by a recognised credit rating agency like CRISIL, ICRA, CARE etc., (ivi) Investment insovereign papers is based on the interest rate expectations arising out of macroeconomic analysis, and (v)The scheme has the flexibility to invest in the entire range of debt instruments and seeks to minimize interestrate risk while aiming to avoid credit risk.

Baroda Pioneer Income Fund

The Scheme aims to generate regular income by investing in a portfolio of good quality Fixed IncomeSecurities by maintaining a balance between Risk & Return.

The key factors forming the basis of investment by the scheme are (i) issuers/companies selection forinvestment exposure is based on financial parameters such as fundamentals of business, quality ofmanagement, turnover, financial strength of the company and the key earnings drivers, net worth, Interestcoverage ratio, profitability track record and the liquidity of the securities/instruments, (ii) Issuer/Companies,which meet the initial selection norms, are then evaluated on the financial norms for consideration in theinvestments. The scheme’s investments universe is built based on the spread and liquidity, such that theaverage maturity of the instruments in the scheme is in between one and two years. (iii) The schemeemphasises on well managed companies, with above average growth prospects, whose debt securities canbe purchased at a good yield and are listed as investment grade by a recognised credit rating agency likeCRISIL, ICRA, CARE etc. and (iv) Investment in sovereign papers is based on the interest rate expectationsarising out of macroeconomic analysis.

Baroda Pioneer Liquid FundThe Scheme aims to generate income with a high level of liquidity by investing in a portfolio of moneymarket and debt securities.The key factors forming the basis of investment by the scheme are (i) issuers/companies selection forinvestment exposure is based on financial parameters such as fundamentals of business, quality ofmanagement, turnover, financial strength of the company and the key earnings drivers, net worth, Interestcoverage ratio, profitability track record and the liquidity of the securities/instruments, (ii) Issuer/Companies,which meet the initial selection norms, are then evaluated on the financial norms for consideration in theinvestments. The scheme’s investments universe is built based on the spread and liquidity, such that theaverage maturity of the instruments in the scheme is in between one and two years. (iii) The schemeemphasises on well managed companies, with above average growth prospects, whose debt securities can


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be purchased at a good yield and are listed as investment grade by a recognised credit rating agency likeCRISIL, ICRA, CARE etc. and (iv) Investment in sovereign papers is based on the interest rate expectationsarising out of macroeconomic analysis.

Baroda Pioneer Treasury Advantage Fund

The Scheme aims to generate income with a high level of liquidity by investing in a portfolio of money marketand debt securities.The portfolio is constructed and actively managed to generate returns to match the investment objective andto maintain adequate liquidity to accommodate funds movement. As the interest rate risk of the portfolio islikely to be similar to that of the shorter end of the maturity spectrum, in line with the investment objective,a significant proportion of the total returns are likely to be in the form of income yield or accrual. Selectivecapital appreciation opportunities are explored by extending credit and duration exposure above that offeredby a cash fund.The fund management team takes an active view of the interest rate movement supported by quantitativeresearch, to include various parameters of the Indian economy, as well as developments in global markets.Investment views/decisions will be a combination of credit analysis of individual exposures and analysis ofmacro economic factors to estimate the direction of interest rates and level of liquidity and will be taken,inter alia, on the basis of the following parameters:

i. Prevailing interest rate scenario

ii. Returns offered relative to alternative investment opportunities.

iii. Quality of the security / instrument (including the financial health of the issuer)

iv. Maturity profile of the instrument

v. Liquidity of the security

vi. Any other factors considered relevant in the opinion of the fund management team.

The fund management team, supported by research group, generally adopts a bottom-up approach forsecurities identification to optimise the risk adjusted returns on the diversified portfolio.

Baroda Pioneer Balance FundThe Scheme is targeted for long-term capital appreciation along with stability through a well balanced portfoliocomprising of equity and debt.

Investments are made in primary as well as secondary markets. The portfolio is sufficiently diversified asto reduce the risk of underperformance due to unexpected security specific factors. The key factorsforming the basis of investment by the scheme are (i) indentifying attractive opportunities on the basis ofGovernment policies, research report and overall economic conditions, (ii) factors like fundamentals of thebusiness, market capitalisation industry structure, quality of management etc. and (iii) sector weightage andstock selection within the sector. The scheme also invests in debt and money market instruments of aboveaverage growth prospects, whose securities can be purchased at a good yield and are listed as investmentgrade by a recognised credit rating agency like CRISIL, ICRA, CARE etc.

Baroda Pioneer ELSS ’96 FundThe main objective of the scheme is to provide the investor long term capital growth as also tax benefit undersection 88C of the income Tax Act, 1961.

Investments are made in primary as well as secondary markets. The portfolio is sufficiently diversified asto reduce the risk of underperformance due to unexpected security specific factors. The key factorsforming the basis of investment by the scheme are (i) indentifying attractive opportunities on the basis ofGovernment policies, research report and overall economic conditions, (ii) factors like fundamentals of thebusiness, market capitalisation industry structure, quality of management etc. and (iii) sector weightage andstock selection within the sector.

Baroda Pioneer Public Sector Undertaking (PSU) Bond FundThe investment objective is to generate stable returns with lower risk by investing in Fixed Income instrumentsof Public Sector Undertakings (PSUs) - banks, financial institutions & companies.The Primary investment strategy for the scheme is to invest predominantly in debt securities issued bydomestic public sector undertakings. The rational for investment in such debt securities is to minimize thecredit risk or counterparty default risk as debt instruments issued by public sector undertakings aregenerally considered to be of the better credit quality and safety for timely servicing of debt obligations.Apart from the above, the Scheme invests in companies based on various criteria including sound professional

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management, track record, industry scenario, growth prospects, liquidity of the securities, etc. The schemeemphasises on well managed companies, with above average growth prospects, whose debt securities canbe purchased at a good yield and are listed as investment grade by a recognised credit rating agency like TheCredit Rating and Information Services of India Limited (CRISIL), ICRA Limited (formerly, InvestmentInformation and Credit Rating Agency of India Limited), Credit Analysis and Research Limited (CARE); etc.During the year, (i) Baroda Pioneer Children Fund - Gift Plan & Baroda Pioneer Children Fund - Study Planwere wound up and (ii) Baroda Pioneer Diversified Fund and Baroda Pioneer Global Fund merged into BarodaPioneer Growth Fund.

4. Significant Accounting PoliciesAccounting Policies are in accordance with the SEBI (Mutual Fund) Regulations, 1996.

5. Unclaimed Dividend & RedemptionsSummary of Unclaimed Dividend & Redemptions data scheme wise is as under:

Scheme Name Unclaimed Redemptions (Rs.) Unclaimed Dividends (Rs.)

Baroda Pioneer Diversified Fund 191,676/- 36,31,907/-

Baroda Pioneer ELSS’ 96 Fund 38,370/- 27,34,660/-

Baroda Pioneer Growth Fund 2,994,823/- 525,518/-

Baroda Pioneer Children Fund - Study Plan 8,523/- -

6. Investor ComplaintsDetails of investor complaints received during 2009-2010 in respect of the Fund are laid out in Annexure A.

7. Statutory Information:a) The Sponsors are 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. Ten lacs for setting up theFund, 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 withfluctuations in the market value of its underlying investments.

c) The Annual Report shall be disclosed on the website (www.barodapioneer.in) and shall be available forinspection at the Head Office of the Mutual Fund. Present and prospective unit holders can obtain acopy of the trust deed and the Annual Report of the Fund / AMC upon request.

ACKNOWLEDGEMENTBaroda Pioneer Mutual Fund is grateful to its unit holders for reposing faith and confidence in it. The Fundexpresses its deep gratitude to the Securities and Exchange Board of India, Association of Mutual Funds in India,Reserve Bank of India, Auditors, Registrars, Custodians, Bankers, Agents and Brokers for their continuedsupport, advice and co-operation.Last but not the least, the Fund places on record its appreciation for the services rendered by the Directors andstaff of Baroda Pioneer Asset Management Company Limited in managing the affairs of the Fund.

For and on behalf of the Board of Trustees

Sd/-Place : Mumbai R. L. BaxiDate : July 19, 2010 Chairman

RANKING METHODOLOGY & DISCLAIMER FOR THE AWARDS / RATINGET Quarterly MF Tracker lists MF schemes using Sortino ratio, a superior risk adjusted measure, to assess fund performance. They took threeyears as the yardstick for the five broad categories of funds equity diversified, equity-linked savings scheme (ELSS), balanced, monthly incomeplan (MIP) and debt. Schemes with similar risk-return profiles were clubbed. The return score was arrived at by allotting 60% weight to pastthree-year absolute returns and 40% weight to past one-year return. These weighted returns were compared vis-à-vis the average return forthe category under consideration. To measure risk, we looked at downside risk. Downside risk is any return below the minimum acceptable rateof return (MAR). Average category returns have been taken as MAR. We looked at monthly returns for the past three years. The monthly returnsof each fund were analysed vis-à-vis the average fund returns for that particular month and the category under consideration. Any underperformanceswere added. Overall, total underperformance figures were compared with average category underperformances. The top 10% funds in eachcategory were classified as ‘Platinum’ funds; the next 20% got a ‘Gold’, while the next 40% got a ‘Silver’ rating. More information is availableon http://economictimes.indiatimes.com.

For Risk Factors, please refer page no. 62


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10


AUDITORS’ REPORT

The Board of Trustees,Baroda Pioneer Mutual Fund,Mumbai.

Dear Sirs,

We have audited the attached Balance Sheet of BARODA PIONEER GROWTH FUND of BARODA PIONEERMUTUAL FUND, as at 31st March, 2010 and also the Revenue Account for the year ended on that date annexedthereto. These financial statements are the responsibility of the Management of the Asset Management Companyand the Trustees. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards requirethat we plan and perform the audit to obtain reasonable assurance about whether the financial statements are freeof material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financial statement presentation. We believe thatour audit provides a reasonable basis for our opinion.

Based on the above, we report that:

1. We have obtained all the information and explanations, which to the best of our knowledge and belief werenecessary for the purpose of our audit.

2. In our opinion, proper books of account as required by law have been kept by the Scheme so far as appearsfrom our examination of those books.

3. The Balance Sheet and the Revenue Account are in agreement with the books of account.

4. The statement of accounts has been prepared in accordance with accounting policies and standards as specifiedin the Ninth Schedule to the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996.

5. In our opinion, the methods adopted to value non-traded securities are fair and reasonable.

6. In our opinion and to the best of our information and according to the explanations given to us, the accountsread with the Statement on Significant Accounting Policies and Notes on Accounts attached thereto give a trueand fair view in conformity with the accounting principles generally accepted in India:

a) in the case of the Balance Sheet of the statement of affairs of BARODA PIONEER GROWTH FUND asat 31st March, 2010 and

b) in the case of the Revenue Account of the surplus of the Scheme for the year ended on that date.

For and on behalf of

BORKAR & MUZUMDARChartered Accountants

Sd/-Devang Vaghani

Place : Mumbai PartnerDate : July 19, 2010 (M. No. 109386)


11

BARODA PIONEER GROWTH FUND

BALANCE SHEET AS ON 31ST MARCH, 2010

(RS.IN LAKH)

Schedule 31.03.2010 31.03.2009

LIABILITIES :-

Unit Capital A 1,715.01 268.12

Reserves & Surplus B 3,891.73 209.72

Current Liabilities & Provisions C 245.21 19.80————— —————

TOTAL 5,851.95 497.64————— —————

ASSETS :-

Investments D 5,618.60 471.16

Other Current Assets E 233.35 26.48————— —————

TOTAL 5,851.95 497.64————— —————

SIGNIFICANT ACCOUNTING POLICIES F

NOTES TO ACCOUNTS G

The Schedules referred to above form an integral part of the Balance Sheet.

As per our report of even date


BORKAR & MUZUMDAR For Baroda Pioneer Asset For Baroda PioneerChartered Accountants Management Co. Ltd. Mutual Fund

Sd/- Sd/- Sd/-Devang Vaghani Rajan Krishnan R. L. BaxiPartner Chief Executive Officer Chairman(M. No. 109386)

Sd/- Sd/-Dipak Acharya V. H. BhatiaFund Manager Trustee

Sd/-A. D. M. ChavaliTrustee

Sd/-Place : Mumbai S. K. SuvarnaDate : July 19, 2010 Trustee

12


BARODA PIONEER GROWTH FUNDREVENUE ACCOUNT FOR THE YEAR ENDED ON 31ST MARCH, 2010

(RS. IN LAKH)Schedule 31.03.2010 31.03.2009

INCOME :-Dividend 22.16 6.81Interest 2.67 3.56Profit on Sale of Investments 361.01 54.65

(Other than inter-scheme transfer/Sale)Other Income 1.62 0.18

————— —————TOTAL 387.46 65.20

————— —————EXPENSES & LOSSES :-Depreciation in value of investments (Net) 0.00 214.48Loss on Sale of Investments 47.97 63.64Management Fees 37.69 6.70Service tax on Management fees 3.88 0.82Trusteeship Fees 0.03 0.36Office and Administrative Expenses 8.09 1.42Registration Fees 0.03 0.23Commission to Agents 12.60 7.33Audit Fees 0.75 0.00Advertisement Expenses 0.75 0.55Other Operating Expenses 4.13 0.00Custodian Charges 1.30 0.14Registrar Charges 6.85 1.61

————— —————124.07 297.28

Less: Expenses reimbursed/ to be reimbursed by the Investment 0.69 5.52Manager (For details refer to Notes to Accounts point no 18.b.) ————— —————

TOTAL 123.38 291.76————— —————

Surplus / (Deficit) for the year 264.08 (226.58)Add / (Less) : Equalisation Account 2,385.01 (6.04)Add : Appreciation in value of Investments (Net) 599.35 0.00

————— —————Amount Available for Appropriation 3,248.44 (232.62)

APPROPRIATIONS :Dividend Distributed to the Unit holder 115.68 0.00

————— —————Surplus/(Deficit) carried to Balance Sheet 3,132.76 (232.62)

————— —————SIGNIFICANT ACCOUNTING POLICIES FNOTES TO ACCOUNTS G

The Schedules referred to above form an integral part of the Revenue Account.As per our report of even dateFor and on behalf ofBORKAR & MUZUMDAR For Baroda Pioneer Asset For Baroda PioneerChartered Accountants Management Co. Ltd. Mutual Fund






13

BARODA PIONEER GROWTH FUND

SCHEDULES FORMING PART OF THE BALANCE SHEET AS ON 31ST MARCH, 2010(RS.IN LAKH)

31.03.2010 31.03.2009

Schedule ‘A’UNIT CAPITALUnit Capital 1,715.01 268.12

————— —————Total 1,715.01 268.12

————— —————

No. of units of face value Rs. 10/- each 17,150,131.82 2,681,189.16

Schedule ‘B’RESERVES AND SURPLUSRevenue ReserveOpening Balance (94.88) 137.74Add: Additions / (Deductions) during the year 3,132.76 (232.62)

————— —————3,037.88 (94.88)

Unit Premium ReserveOpening Balance 304.60 273.05Add: Additions / (Deductions) during the year 549.25 31.55

————— —————853.85 304.60

————— —————Total 3,891.73 209.72

————— —————

Schedule ‘C’CURRENT LIABILITIES & PROVISIONSCurrent LiabilitiesSundry Creditors 16.95 1.69Unclaimed Dividend 5.26 0.73Unclaimed Redemption 29.95 0.00Payable for units switch out 171.99 0.00Unit redemption payable 6.34 0.00Others 14.72 17.38

————— —————Total 245.21 19.80

————— —————

Schedule ‘D’INVESTMENTSEquity Shares 5,543.65 402.08Reverse Repos 74.95 69.08

————— —————Total 5,618.60 471.16

————— —————Schedule ‘E’OTHER CURRENT ASSETSBalance with Banks 53.62 1.55Contracts for sale of Investments 73.94 0.00Outstanding and accrued Income 0.31 0.02Unit subscription receivable 104.11 19.36Recoverable from AMC 1.37 5.52Others 0.00 0.03

————— —————Total 233.35 26.48

————— —————

14


SCHEDULE F:COMMON ACCOUNTING POLICY (REFER TO PAGE NO. 51)

SCHEDULE G:

NOTES FORMING PART OF THE ACCOUNTS OF BARODA PIONEER GROWTH FUND FOR THE YEARENDED 31st MARCH, 2010

1. Details of Assets as at 31st March 2010 are as under :

Name of the Instrument Quantity / Market Value % to NetRating (Rs. in Lakh) Assets

EQUITY & EQUITY RELATED INSTRUMENTSListed / Awaiting listing on Stock ExchangesReliance Industries Ltd. 51,798 556.44 9.75

Infosys Technologies Ltd. 16,750 438.17 7.67ICICI Bank 42,000 400.05 7.01Larsen & Toubro Ltd. 18,850 307.42 5.38ITC Ltd. 88,050 231.62 4.06Tata Steel Ltd. 33,500 211.74 3.71Bharat Heavy Electricals Ltd. 8,000 191.25 3.35

HDFC Bank Ltd. 9,150 176.92 3.10Oil & Natural Gas Corporation Ltd. 14,000 153.82 2.69Mahindra & Mahindra Ltd. 25,600 138.59 2.43Sterlite Industries (India) Ltd. 16,300 138.54 2.43Tata Motors Ltd. 17,300 131.08 2.30State Bank of India 6,000 124.69 2.18Bharti Airtel Ltd. 39,700 124.08 2.17

Bank Of India 33,000 112.28 1.97Maruti Suzuki India Ltd. 7,400 104.93 1.84Punjab National Bank 9,000 91.15 1.60Rolta India Ltd. 47,300 84.64 1.48Piramal Healthcare Ltd. 19,250 81.76 1.43Exide Industries Ltd. 65,000 80.08 1.40

Adani Enterprises Ltd. 17,000 79.85 1.40IDBI Bank Ltd. 69,000 79.35 1.39Union Bank Of India 26,000 76.00 1.33Tata Tea Ltd. 7,700 75.37 1.32Divi’s Laboratories Ltd. 10,500 71.22 1.25Aditya Birla Nuvo Ltd. 7,500 67.97 1.19

Reliance Infrastructure Ltd. 6,800 67.94 1.19Biocon Ltd. 23,200 65.99 1.16Jindal Saw Ltd. 28,000 59.47 1.04Tata Power Co. Ltd. 4,300 59.07 1.03Dr. Reddy’s Laboratories Ltd. 4,400 56.10 0.98Crompton Greaves Ltd. 21,000 54.80 0.96

NTPC Ltd. 26,300 54.51 0.95Patel Engineering Ltd. 11,800 53.73 0.94Hindustan Unilever Ltd. 21,000 50.31 0.88HCL Technologies Ltd. 14,000 50.18 0.88Petronet LNG Ltd. 64,300 48.90 0.86Tech Mahindra Ltd. 5,700 48.63 0.85


15

1. Details of Assets as at 31st March 2010 are as under : (Contd.)


Mphasis Ltd. 7,000 43.43 0.76

LIC Housing Finance Ltd. 4,800 41.83 0.73

Glenmark Pharmaceuticals Ltd. 15,000 40.28 0.71

GAIL (India) Ltd. 9,700 39.83 0.70

Unitech Ltd. 54,000 39.74 0.70

DLF Ltd. 12,800 39.54 0.69

Tata Chemicals Ltd. 12,004 39.39 0.69

Bharat Electronics Ltd. 1,600 35.24 0.62

United Phosphorus Ltd. 20,000 29.84 0.52

Suzlon Energy Ltd. 41,500 29.82 0.52

Hindustan Zinc Ltd. 2,400 28.90 0.51

Jubilant Organosys Ltd. 8,500 28.84 0.51

ACC Ltd. 3,000 28.53 0.50

The Federal Bank Ltd. 10,000 26.69 0.47

Opto Circuits (India) Ltd. 12,000 26.08 0.46

Ambuja Cements Ltd. 16,000 19.18 0.34

United Bank of India 11,336 7.80 0.14

Kansal Fibres Ltd.** 200,000 0.02 0.00

Amex Carb. & Chem. Ltd. ** 149,000 0.01 0.00

Suncity Synthetics Ltd.** 100,000 0.01 0.00

Gowri Polymers Ltd. ** 70,000 0.01 0.00

Soni Medicare Ltd. ** 25,000 0.00 0.00

Accord Cotsyn Ltd. ** 25,000 0.00 0.00

SIV Industries Ltd. ** 14,750 0.00 0.00

Royal Industries Ltd. ** 10,000 0.00 0.00

DSQ Software Ltd. ** 8,000 0.00 0.00

Western Paques (India) Ltd. ** 6,650 0.00 0.00

Adani Enterprises - Rights Shares 1,062 - 0.00

Sub Total (A) 1,787,550 5,543.65 97.12

Cash & Cash Equivalent

CBLO / Reverse Repo Investments 74.95 1.31

Net Receivables/(Payables) 91.04 1.57

Sub Total (B) 165.99 2.88

Total (A+B) 1,787,550 5,709.64 100.00

Net value of unit capital transaction, value dated March 31, 2010 (102.90)

Total Net Assets as per Balance Sheet 5,606.74

** Fair value of thinly traded/non-traded securities is determined by Baroda Pioneer Asset ManagementCompany Limited in accordance with Guidelines on valuation of securities for mutual funds, issued by theSecurities and Exchange Board of India and approved by the Board.

Total exposure to illiquid securities is 0.00% of the portfolio, i.e. Rs. 0.00 Lakh.

16


2. The particulars of industry group which constitute not less than 5% of the total assets in the majorclassification are as under :

Equity Shares:

Industry % age Industry % age

Banks 19.19 Software 11.64

Petroleum Products 9.75 Auto 6.57

Pharmaceuticals 6.50 Industrial Capital Goods 5.45

Construction Project 5.38 Consumer Non Durables 5.38

3. The Management Fees have been calculated on a daily basis @ 1.25% per annum on the daily average netassets. Daily Average Net Asset Value as at 31st March 2010 are Rs.30,16,80,024. (Previous yearRs. 5,56,03,218).

Management Fees for the year ended 31st March 2010 is Rs.37,69,353 (Previous year Rs.6,69,580).

4. The aggregate value of purchases and sales of investments during the year are as under:

2009-10 2008-09

Amount % of Daily Amount % of Daily(Rs.) Avg. NAV (Rs.) Avg. NAV

Value of purchases 40,32,14,561 133.66 49,48,44,183 889.96

Value of sales 22,58,46,513 74.86 49,51,65,846 890.53

5. Movement in unit capital:

Current Year: 2009-10:

Growth Plan Dividend Plan Total Unit CapitalNo. of units No. of units No. of units (Rs. in Lakhs)

Balance as on 31st March, 2009 2,74,505.093 24,06,684.068 26,81,189.161 268.12

Add : Subscriptions 50,92,688.140 35,54,211.591 86,46,899.731 864.69

Add : Subscription on account 88,452.536 99,35,363.528 1,00,23,816.064 1,002.38 of Merger

Less : Redemptions 15,91,050.994 26,10,722.143 42,01,773.137 420.18

Balance as on 31st March, 2010 38,64,594.775 1,32,85,537.044 1,71,50,131.819 1,715.01

Previous Year: 2008-09:



Add : Subscriptions 1,95,110.842 1,25,615.087 3,20,725.929 32.07

Less : Redemptions 1,01,816.445 1,08,244.652 2,10,061.097 21.00


6. During the year there were no transactions pertaining to derivatives and foreign securities.

7. No provision for taxation is required as Baroda Pioneer Mutual Fund is a recognised Mutual Fund underSection 10 (23D) of the Income Tax Act, 1961.

8. a) The Scheme has not undertaken any underwriting obligations with respect to issue of securities ofassociate companies.

b) The Scheme has not subscribed to any issues where any of its associate companies is a lead manager.

c) The Scheme has not subscribed to any issue of equity or debt on private placement basis where thesponsor or associate companies have acted as arranger or manager.


17

9. Details of Unclaimed Dividends as at 31st March, 2010:

Amount (Rs.)

Unclaimed Dividends 525,518

10. Details of Unclaimed Redemptions as at 31st March, 2009

Amount (Rs.)

Unclaimed Redemptions 29,94,823

11. Details of each item of expenditure accounting for more than 10% of total expenditure are as under:


Nature of Expenditure Percentage#

Management Fees 49.98 %

Commission to Agents 16.71 %

Office and Administrative Expenses 10.73 %

# Net of expenses reimbursed/ to be reimbursed by the Investment Manager


Nature of Expenditure Percentage

Management Fees 34.97 %

Commission to Agents 38.29 %

12. Details of Non-Performing Investments are as under :


Cost of Investment (Rs.) Market Value (Rs.) Type of Investment Written-off duringthe year (Rs.)

6,084.00* 6,084.00 Equity Shares Nil

*Non-traded, amount written off

Previous Year: 2008-09: Nil

13. Details of large holding (over 25% of NAV of the schemes) are as under:

a) No. of investors : Nil (Previous year Nil)

b) Total holdings by such investors as % of the NAV : Nil (Previous year Nil)

14. Disclosure under Regulation 25(11) of the Securities and Exchange Board of India (Mutual Funds)Regulations, 1996 as amended:

Investment made by Baroda Pioneer Mutual Fund in companies which hold units in excess of 5% of the netasset value of any of the schemes of Baroda Pioneer Mutual Fund for the period ended March 31, 2010.(Please refer Annexure I)

15. Details of transactions in Associates in terms of regulation 25(8)

a) Brokerage paid to associates/related parties/group companies of Sponsor/AMC(Please refer Annexure I)

b) Commission paid to associates/related parties/group companies of sponsor/AMC(Please refer Annexure I)

16. All investments in Government Securities and Treasury bills are held in SGL account in the name of “BarodaPioneer Mutual Fund”.

18


17. Perspective Historical Per Unit Statistics(Please refer Annexure II)

18. a) Annualised total income (net of loss on sale & appreciation/depreciation on investments) and expenditure(excluding loss on sale of investments) as a percentage of the average daily net assets during the yearare given below :

Current Year % Previous Year %

Income 31.12% -38.29%

Expenditure 2.50% 2.45%

b) Details of expenses reimbursed/ to be reimbursed by the Investment Manager are as follows:

Amount in Rs. Lacs

Registrar Charges 0.69

Total 0.69

19. Exit Load :

In terms of SEBI circular No: SEBI/IMD/CIR No. 4/ 168230/09 dated June 30, 2009, with effect from August1, 2009, the exit load collected from the investors is utilized upto a maximum of 1% of the redemptionproceeds for payment to distributors and meeting other marketing and selling expenses. This is maintainedin a separate account and of the exit load or Contingent Deferred Sales Charge (CDSC) charged to theinvestor, amount in excess of 1% of the redemption proceeds is credited to the scheme immediately.

20. Merger of Baroda Pioneer Diversified Fund and Baroda Pioneer Global Fund into Baroda Pioneer GrowthFund :

During the current year in order to benefit from better economies of scale that will allow efficient managementof these schemes, Baroda Pioneer Diversified Fund and Baroda Pioneer Global Fund were merged withBaroda Pioneer Growth Fund, on a going concern basis with effect from October 30, 2009 (‘the merger’).The resolution for the approval of the merger by the Board of Trustee’s was passed on December 26, 2008.SEBI has accorded its no objection for the merger, vide its letter No. IMD/RB/175186/2009 dated September1, 2009. The investment objective, asset allocation pattern, annual recurring expenses and all other provisionsas contained in the Scheme Information Document of Baroda Pioneer Growth Fund remain unchanged postthe merger. As required by the SEBI Regulations, the AMC had sent letters to unit-holders of both theschemes seeking their approval for the merger with an option to redeem their units at the prevailing NAV attheir discretion. Unit holders who consented to the merger were allotted Units in Baroda Pioneer GrowthFund based on October 30, 2009 closing NAV of Baroda Pioneer Growth Fund.

Transferor Scheme : Baroda Pioneer Diversified Fund :

Net asset value of unit holders opted to switch over to Baroda Pioneer Growth Fund as on merger date.

Plan Name No. of units NAV Per Unit Amount

Baroda Pioneer Diversified Fund - Dividend Plan 67,17,448.800 36.7747 24,70,32,178

Baroda Pioneer Diversified Fund - Dividend Plan 2,690.823 36.7747 98,954

Total 67,20,139.623 24,71,31,132

Transferee Scheme Name: Baroda Pioneer Growth Fund:

Net asset value of units allotted in lieu of holdings in Baroda Pioneer Diversified Fund.

Plan Name No. of Units Allotted NAV Per Unit Amount

Baroda Pioneer Growth Fund - Dividend Plan 96,50,938.531 25.5967 24,70,32,178

Baroda Pioneer Growth Fund - Growth Plan 2,177.752 45.4387 98,954

Total 96,53,116.283 24,71,31,132


19

Transferor Scheme: Baroda Pioneer Global Fund:


Plan Name No. of units NAV Per Unit Amount

Baroda Pioneer Global Fund - Dividend Plan 5,24,576.959 13.8785 72,80,341

Baroda Pioneer Global Fund - Growth Plan 2,81,954.498 13.9047 39,20,214

Total 8,06,531.457 1,12,00,555


Net asset value of units allotted in lieu of holdings in Baroda Pioneer Global Fund.

Plan Name No. of Units Allotted NAV Per Unit Amount

Baroda Pioneer Growth Fund - Dividend Plan 2,84,424.997 25.5967 72,80,341

Baroda Pioneer Growth Fund - Growth Plan 86,274.784 45.4387 39,20,214

Total 3,70,699.781 1,12,00,555

21. Previous year figures have been reclassified/restated wherever necessary to conform to the current year’spresentation.








20


AUDITORS’ REPORT


Dear Sirs,

We have audited the attached Balance Sheet of BARODA PIONEER ELSS '96 FUND of BARODA PIONEERMUTUAL FUND, as at 31st March, 2010 and also the Revenue Account for the year ended on that date annexedthereto. These financial statements are the responsibility of the Management of the Asset Management Companyand the Trustees. Our responsibility is to express an opinion on these financial statements based on our audit.









a) in the case of the Balance Sheet of the statement of affairs of BARODA PIONEER ELSS ‘96 FUND asat 31st March, 2010 and




Sd/-Devang Vaghani



21

BARODA PIONEER ELSS '96 FUND


(RS. IN LAKH)

Schedule 31.03.2010 31.03.2009

LIABILITIES :-

Unit Capital A 809.36 636.61

Reserves & Surplus B 1,151.92 191.56


TOTAL 1,999.84 865.75————— —————

ASSETS :-

Investments D 1,760.21 702.75


TOTAL 1,999.84 865.75————— —————


NOTES TO ACCOUNTS G









22



REVENUE ACCOUNT FOR THE YEAR ENDED ON 31ST MARCH, 2010

(RS. IN LAKH)

Schedule 31.03.2010 31.03.2009INCOME :-Dividend 15.28 10.02Interest 0.89 5.05Profit on Sale of Investments 345.76 108.60


————— —————TOTAL 363.87 124.01

————— —————EXPENSES & LOSSES :-Loss on Sale of Investments 48.31 242.29Depreciation in value of investments (Net) 0.00 332.79Management Fees 16.97 10.41Service tax on Management fees 1.75 1.27Trusteeship Fees 0.01 0.53Office and Administrative Expenses 2.89 2.29Registration Fees 0.04 0.43Commission to Agents 11.25 2.29Audit Fees 0.09 0.05Advertisement Expenses 0.00 2.05Other Operating Expenses 4.67 0.06Custodian Charges 0.55 0.16Registrar Charges 4.09 1.35

————— —————90.62 595.97


TOTAL 82.24 595.91————— —————

Surplus/(Deficit) for the year 281.63 (471.90)Add / (Less) : Equalisation Account 84.41 (0.39)Add : Appreciation in value of Investments (Net) 434.61 0.00

————— —————Surplus/(Deficit) carried to Balance Sheet 800.65 (472.29)

————— —————SIGNIFICANT ACCOUNTING POLICIES FNOTES TO ACCOUNTS GThe Schedules referred to above form an integral part of the Revenue Account.

As per our report of even dateFor and on behalf ofBORKAR & MUZUMDAR For Baroda Pioneer Asset For Baroda PioneerChartered Accountants Management Co. Ltd. Mutual Fund






23


SCHEDULES FORMING PART OF THE BALANCE SHEET AS ON 31ST MARCH, 2010

(RS.IN LAKH)

31.03.2010 31.03.2009

Schedule ‘A’UNIT CAPITALInitial CapitalUnit Capital 809.36 636.61

————— —————Total 809.36 636.61

————— —————

No. of units of face value Rs. 10/- each 8,093,601.17 6,366,082.56

Schedule ‘B’RESERVES AND SURPLUSRevenue ReserveOpening Balance (232.01) 240.28Add: Additions / (Deductions) during the year 800.65 (472.29)

————— —————568.64 (232.01)

Unit Premium Reserve AccountOpening Balance 423.57 384.96Add: Additions during the year 159.71 38.61

————— —————583.28 423.57

————— —————Total 1,151.92 191.56

————— —————

Schedule ‘C’CURRENT LIABILITIES & PROVISIONSCurrent LiabilitiesSundry Creditors 7.88 2.11Unclaimed Dividend 27.35 27.35Unclaimed Redemption 0.38 0.00Unit redemption payable 2.63 0.69Others 0.32 7.43

————— —————Total 38.56 37.58

————— —————

Schedule ‘D’INVESTMENTSEquity Shares 1,650.28 627.27Reverse Repos 109.93 75.48

————— —————Total 1,760.21 702.75

————— —————

Schedule ‘E’OTHER CURRENT ASSETSBalance with Banks 45.17 45.54Contracts for sale of Investments 9.45 0.00Outstanding and accrued Income 0.09 0.16Unit subscription receivable 176.62 116.74Recoverable from AMC 8.03 0.06Others 0.27 0.50

————— —————Total 239.63 163.00

————— —————

24



SCHEDULE G:

NOTES FORMING PART OF THE ACCOUNTS OF BARODA PIONEER ELSS ’96 FUND FOR THE YEAR ENDED31st MARCH, 2010



EQUITY & EQUITY RELATED INSTRUMENTS

Listed / Awaiting listing on Stock Exchanges

Reliance Industries Ltd. 15,000 161.14 8.66

Larsen & Toubro Ltd. 7,750 126.39 6.79

ICICI Bank 12,700 120.97 6.50

Infosys Technologies Ltd. 4,050 105.94 5.69

ITC Ltd. 24,100 63.39 3.40

State Bank of India 2,800 58.19 3.13

Oil & Natural Gas Corporation Ltd. 5,100 56.03 3.01

HDFC Bank Ltd. 2,800 54.14 2.91

Mahindra & Mahindra Ltd. 9,140 49.48 2.66

Bharat Heavy Electricals Ltd. 2,000 47.81 2.57

Mphasis Ltd. 7,000 43.43 2.33

Bharti Airtel Ltd. 13,700 42.82 2.30

Tata Steel Ltd. 6,700 42.35 2.27

Sterlite Industries (India) Ltd. 4,900 41.65 2.24

Tata Motors Ltd. 5,400 40.92 2.20

Bank Of India 11,000 37.43 2.01

Aditya Birla Nuvo Ltd. 3,000 27.19 1.46

Piramal Healthcare Ltd. 5,880 24.98 1.34

Tata Power Co. Ltd. 1,800 24.73 1.33

Hindustan Unilever Ltd. 10,100 24.19 1.30

Union Bank Of India 7,500 21.92 1.18

Tata Tea Ltd. 2,200 21.53 1.16

Exide Industries Ltd. 17,000 20.94 1.12

Crompton Greaves Ltd. 7,875 20.55 1.10

Reliance Infrastructure Ltd. 2,000 19.98 1.07

Rolta India Ltd. 11,000 19.68 1.06

Dr. Reddy’s Laboratories Ltd. 1,500 19.12 1.03

Adani Enterprises Ltd. 4,000 18.79 1.01

Biocon Ltd. 6,000 17.07 0.92

The Federal Bank Ltd. 6,200 16.54 0.89


25

1. Details of Assets as at 31st March 2010 are as under : (Contd.)


EQUITY & EQUITY RELATED INSTRUMENTS

Listed / Awaiting listing on Stock Exchanges

Maruti Suzuki India Ltd. 1,100 15.60 0.84

Punjab National Bank 1,500 15.19 0.82

Petronet LNG Ltd. 19,500 14.83 0.80

Patel Engineering Ltd. 3,200 14.57 0.78

NTPC Ltd. 7,000 14.51 0.78

HCL Technologies Ltd. 4,000 14.34 0.77

Tech Mahindra Ltd. 1,600 13.65 0.73

Divi’s Laboratories Ltd. 2,000 13.57 0.73

Glenmark Pharmaceuticals Ltd. 5,000 13.43 0.72

Unitech Ltd. 17,000 12.51 0.67

GAIL (India) Ltd. 3,000 12.32 0.66

DLF Ltd. 3,900 12.05 0.65

IDBI Bank Ltd. 10,000 11.50 0.62

LIC Housing Finance Ltd. 1,300 11.33 0.61

Hindustan Zinc Ltd. 900 10.84 0.58

Jubilant Organosys Ltd. 3,000 10.18 0.55

ACC Ltd. 1,000 9.51 0.51

Jindal Saw Ltd. 4,000 8.50 0.46


Suzlon Energy Ltd. 10,000 7.19 0.39

Tata Chemicals Ltd. 2,000 6.56 0.35

Ambuja Cements Ltd. 5,000 5.99 0.32

Opto Circuits (India) Ltd. 1,500 3.26 0.18

United Bank of India 3,052 2.10 0.11

DSQ Software Ltd. ** 2,500 0.00 0.00

Transtream India Com Ltd.** 1,000 0.00 0.00

Adani Enterprises - Rights Shares 250 - 0.00

Sub Total (A) 339,497 1,650.28 88.67

Cash & Cash Equivalent

CBLO / Reverse Repo Investments 109.93 5.91


Sub Total (B) 210.91 11.33

Total (A+B) 339,497 1,861.19 100.00

Net value of capital transaction value dated March 31, 2010 100.09

Total Net Assets as per Balance Sheet 1,961.28

** Fair value of thinly traded/non-traded securities is determined by Baroda Pioneer Asset ManagementCompany Limited in accordance with Guidelines on valuation of securities for mutual funds, issued by theSecurities and Exchange Board of India and approved by the Board.

Total exposure to illiquid securities is 0.00% of the portfolio, i.e. Rs. 0.00 Lakh

26


2. The particulars of industry group which constitute not less than 5% of the total assets in the majorclassification are as under :

Equity Shares:



Petroleum Products 8.66 Construction Project 6.79

Auto 5.70 Pharmaceuticals 5.47

3. The Management Fees have been calculated on a daily basis @ 1.25% per annum on the daily average netassets. Daily Average Net Asset Value as at 31st March 2010 is Rs.13,57,06,877 (Previous yearRs. 8,33,46,236).

Management Fees for the year ended 31st March 2010 is Rs.16,96,573 (Previous year Rs.10,40,762).

4. The aggregate value of purchases and sales of investments during the year are as under :

2009-10 2008-09



Value of sales 11,48,75,378 84.65 54,65,96,648 655.81

5. Movement in unit capital :

Current Year: 2009-10 (Rs. in Lakhs)

No. of units Unit Capital

Balance as on 31st March, 2009 63,66,082.559 636.61

Add: Subscriptions 27,60,531.177 276.05

Less: Redemptions 10,33,012.565 103.30


Previous Year: 2008-09: (Rs. in Lakhs)

No. of units Unit Capital


Add: Subscriptions 16,93,857.802 169.39

Less: Redemptions 1,85,769.331 18.58







9. Details of Non-Performing Investments are as under :


27


Cost of Investment (Rs.) Market Value (Rs.) Type of Investment Written-off during the year (Rs.)

20,63,825.00* 35.00 Equity Shares Nil



Cost of Investment (Rs.) Market Value (Rs.) Type of Investment Written-off duringthe year (Rs.)

20,63,825.00* 35.00 Equity Shares Nil


10. Details of Unclaimed Dividends as at March 31, 2010:

Amount (Rs.)

Unclaimed Dividends 27,34,660

11. Details of Unclaimed Redemptions as at March 31, 2010:

Amount (Rs.)

Unclaimed Redemptions 38,370



Nature of Expenditure Percentage (%)#

Management Fees 50.00

Commission to Agents 12.43

Other Operating Expenses 13.77# Net of expenses reimbursed/ to be reimbursed by the Investment Manager


Nature of Expenditure Percentage (%)


Office and Admin Expenses 10.98



a) No. of investors : Nil (previous year Nil)

b) Total holdings by such investors as % of the NAV : Nil (previous year Nil)


Investment made by Baroda Pioneer Mutual Fund in companies which hold units in excess of 5% of the netasset value of any of the schemes of Baroda Pioneer Mutual Fund for the period ended March 31, 2010.

(Please refer Annexure I)

28






17. Perspective Historical Per Unit Statistics

(Please refer Annexure II)

18. a) Annualised total income (net of loss on sale & appreciation/depreciation on investments) and expenditure(excluding loss on sale of investments) as a percentage of the average daily net assets during the yearare given below:

Current Year % Previous Year %

Income 55.28 -54.11

Expenditure 2.50 2.50


Amount in Rs. Lakhs



Total 8.38

19. Exit Load :

In terms of SEBI circular No: SEBI/IMD/CIR No. 4/ 168230/09dated June 30, 2009, with effect from August1, 2009, the exit load collected from the investors is utilized upto a maximum of 1% of the redemptionproceeds for payment to distributors and meeting other marketing and selling expenses. This is maintainedin a separate account and of the exit load or Contingent Deferred Sales Charge (CDSC) charged to theinvestor, amount in excess of 1% of the redemption proceeds is credited to the scheme immediately.

20. Previous year figures have been reclassified/restated wherever necessary to conform with the current year’spresentation.









29

AUDITORS’ REPORT


Dear Sirs,

We have audited the attached Balance Sheet of BARODA PIONEER BALANCE FUND of BARODA PIONEERMUTUAL FUND, as at 31st March, 2010 and also the Revenue Account for the year ended on that date annexedthereto. These financial statements are the responsibility of the Management of the Asset Management Companyand the Trustees. Our responsibility is to express an opinion on these financial statements based on our audit.









a) in the case of the Balance Sheet of the statement of affairs of BARODA PIONEER BALANCE FUND as at31st March, 2010 and




Sd/-Devang Vaghani


30


BARODA PIONEER BALANCE FUND


(RS. IN LAKH)

Schedule 31.03.2010 31.03.2009

LIABILITIES :-


Reserves & Surplus B 58.49 21.04


TOTAL 95.64 50.27————— —————

ASSETS :-

Investments D 82.15 41.68


TOTAL 95.64 50.27————— —————


NOTES TO ACCOUNTS G










31


REVENUE ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2010

(RS.IN LAKH)

Schedule 31.03.2010 31.03.2009INCOME :-Dividend 0.54 0.51Interest 0.41 1.04Profit on Sale of Investments 15.98 10.74


————— —————TOTAL 17.02 12.31

————— —————EXPENSES & LOSSES :-Depreciation in value of investments (Net) 0.00 26.88Loss on Sale of Investments 3.07 11.95Management Fees 0.84 0.58Service tax on Management fees 0.09 0.07Trusteeship Fees 0.00 0.04Office and Administrative Expenses 0.96 0.12Registration Fees 0.01 0.03Commission to Agents 0.43 0.29Publicity Expenses 0.00 0.00Audit Fees 0.01 0.00Advertisement Expenses 0.00 0.03Other Operating Expenses 0.60 0.01Custodian Charges 0.03 0.01Registrar Charges 1.16 1.35

————— —————7.20 41.36


TOTAL 4.85 40.19————— —————

Surplus / (Deficit) for the year 12.17 (27.88)Add/(Less) : Equalisation Account 8.97 0.25Add : Appreciation in value of investments (Net) 13.75 0.00


————— —————SIGNIFICANT ACCOUNTING POLICIES FNOTES TO ACCOUNTS GThe Schedules referred to above form an integral part of the Revenue AccountAs per our report of even date







32




(RS.IN LAKH)31.03.2010 31.03.2009

Schedule ‘A’UNIT CAPITALInitial CapitalUnit Capital 36.72 28.93

————— —————Total 36.72 28.93

————— —————

No. of units of face value Rs. 10/- each 367,243.05 289,305.97

Schedule ‘B’RESERVES AND SURPLUSRevenue ReserveOpening Balance 568.51 596.14Add: Additions / (Deductions) during the year 34.89 (27.63)

————— —————603.40 568.51

Unit Premium ReserveOpening Balance (547.47) (546.52)Add: Additions / (Deductions) during the year 2.56 (0.95)

————— —————(544.91) (547.47)

————— —————Total 58.49 21.04

————— —————

Schedule ‘C’CURRENT LIABILITIES & PROVISIONSCurrent LiabilitiesSundry Creditors 0.36 0.14Others 0.07 0.16

————— —————Total 0.43 0.30

————— —————

Schedule ‘D’INVESTMENTSEquity Shares 64.16 34.08Reverse Repos 17.99 7.60

————— —————Total 82.15 41.68

————— —————

Schedule ‘E’OTHER CURRENT ASSETSBalance with Banks 4.04 5.24Contracts for sale of Investments 5.37 2.08Outstanding and accrued Income 0.00 0.00Unit subscription receivable 3.17 0.10Recoverable from AMC 0.91 1.17

————— —————Total 13.49 8.59

————— —————


33


SCHEDULE G:

NOTES FORMING PART OF THE ACCOUNTS OF BARODA PIONEER BALANCE FUND FOR THE YEARENDED 31st MARCH, 2010



EQUITY & EQUITY RELATED INSTRUMENTSListed / Awaiting listing on Stock ExchangesInfosys Technologies Ltd. 250 6.54 7.09

Reliance Industries Ltd. 600 6.45 6.99

Bharat Heavy Electricals Ltd. 200 4.78 5.18

ITC Ltd. 1,700 4.47 4.85

Larsen & Toubro Ltd. 250 4.08 4.42

ICICI Bank 400 3.81 4.13

State Bank of India 150 3.12 3.38

Tata Motors Ltd. 400 3.03 3.29

Bharti Airtel Ltd. 700 2.19 2.37

Mahindra & Mahindra Ltd. 400 2.17 2.35

Piramal Healthcare Ltd. 500 2.12 2.30

Bank Of India 600 2.04 2.21

Tata Steel Ltd. 300 1.90 2.06

Adani Enterprises Ltd. 400 1.88 2.04

HCL Technologies Ltd. 500 1.79 1.94

LIC Housing Finance Ltd. 200 1.74 1.89

Rolta India Ltd. 900 1.61 1.75

The Federal Bank Ltd. 600 1.60 1.74


Sterlite Industries (India) Ltd. 175 1.49 1.61

Punjab National Bank 110 1.11 1.21

Tata Chemicals Ltd. 300 0.98 1.07

Biocon Ltd. 300 0.85 0.92

Maruti Suzuki India Ltd. 60 0.85 0.92

Suzlon Energy Ltd. 900 0.65 0.70

IDBI Bank Ltd. 500 0.58 0.63

DLF Ltd. 150 0.46 0.50

Petronet LNG Ltd. 500 0.38 0.41

Adani Enterprises - Rights Shares 25 - 0.00

Sub Total (A) 13,070 64.16 69.57

Cash & Cash EquivalentCBLO / Reverse Repo Investments 17.99 19.51


Sub Total (B) 28.06 30.43

Total (A+B) 13,070 92.22 100.00Net value of unit capital transaction, value dated March 31, 2010 2.99

Total Net Assets as per Balance Sheet 95.21

34


2. The particulars of industry group which constitute not less than 5% of the assets in the major classificationare as under:

Equity Shares:



Petroleum Products 6.99 Auto 6.56

Industrial Capital Goods 5.88

3. The Management Fees have been calculated on a daily basis @ 1.13% per annum on the daily average netassets. Daily Average Net Asset Value as at 31st March 2010 is Rs.74,67,966 (Previous year Rs.62,24,311).

Management Fees for the year ended 31st March 2010 is Rs.84,044 (Previous year Rs.58,040).


2009-10 2008-09


Value of purchases 65,69,518 87.97 8,31,30,083 1335.57

Value of sales 62,27,592 83.39 8,34,89,040 1341.34





Add :- Subscriptions 1,82,943.508 27,177.718 2,10,121.226 21.01

Less :- Redemptions 87,481.084 44,703.065 1,32,184.149 13.22




Balance as on 31st March, 2008 99,064.033 1,92,439.250 2,91,503.283 29.15

Add :- Subscriptions 9,261.582 2,450.469 11,712.051 1.17

Less :- Redemptions 5,320.932 8,588.431 13,909.363 1.39









35


Nature of Expenditure Percentage (%)#


Other Operating Expenses 33.56# Net of expenses reimbursed/ to be reimbursed by the Investment Manager


Nature of Expenditure Percentage (%)





a) No. of investors : Nil (Previous year : Nil)

b) Total holdings by such investors as % of the NAV : Nil (Previous year : Nil)







14. Perspective Historical Per Unit Statistics(Please refer Annexure II)

15. a) Annualised total income (net of loss on sale & appreciation/depreciation on investments) and expenditure(excluding loss on sale of investments) as a percentage of the average daily net assets during the yearare given below:

Current Year Previous Year

Income 37.08% -42.61%

Expenditure 2.38% 2.18%


Amount in Rs. Lakhs



Office and Administrative Expenses 0.91

Total 2.35

36


16. Exit Load :

In terms of SEBI circular No: SEBI/IMD/CIR No. 4/ 168230/09dated June 30, 2009, with effect from August1, 2009, the exit load collected from the investors is utilized upto a maximum of 1% of the redemptionproceeds for payment to distributors and meeting other marketing and selling expenses. This is maintainedin a separate account and of the exit load or Contingent Deferred Sales Charge (CDSC) charged to theinvestor, amount in excess of 1% of the redemption proceeds is credited to the scheme immediately.

17. Previous year figures have been reclassified/restated wherever necessary to conform to the current year’spresentation.









37

AUDITORS’ REPORT


Dear Sirs,

We have audited the attached Balance Sheet of BARODA PIONEER GLOBAL FUND of BARODA PIONEERMUTUAL FUND, as at 31st March, 2010 and also the Revenue Account for the period ended on 30th October, 2009annexed thereto. These financial statements are the responsibility of the Management of the Asset ManagementCompany and the Trustees. Our responsibility is to express an opinion on these financial statements based on ouraudit.

We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards requirethat we plan and perform the audit to obtain reasonable assurance about whether the financial statements are freeof material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overall financial statement presentation. Webelieve that our audit provides a reasonable basis for our opinion.








a) in the case of the Balance Sheet of the statement of affairs of BARODA PIONEER GLOBAL FUND asat 31st March, 2010 and

b) in the case of the Revenue Account of the surplus of the Scheme for the period ended 30th October,2009.



Sd/-Devang Vaghani


38


BARODA PIONEER GLOBAL FUND


(RS.IN LAKH)

Schedule 31.03.2010 31.03.2009

LIABILITIES :-


Reserves & Surplus B 0.00 (47.28)


TOTAL 0.00 175.82————— —————

ASSETS :-

Investments D 0.00 165.99


TOTAL 0.00 175.82————— —————


NOTES TO ACCOUNTS G










39

BARODA PIONEER GLOBAL FUNDREVENUE ACCOUNT FOR THE PERIOD 1ST APRIL 2009 TO 30TH OCTOBER, 2009

(RS.IN LAKH)Schedule 31.10.2009 31.03.2009

INCOME :-Interest 0.13 1.71Dividend 2.79 3.89Profit on Sale of Investments 118.45 45.01Other Income 0.83 0.05

————— —————TOTAL 122.20 50.66

————— —————EXPENSES & LOSSES :-Loss on Sale of Investments 17.90 75.41Depreciation in value of investments (Net) 0.00 84.92Management Fees 1.24 2.12Service tax on Management fees 0.13 0.26Trusteeship Fees 0.00 0.15Office and Administrative Expenses 0.06 0.32Commission to Agents 0.26 1.30Audit Fees 0.00 0.00Advertisement Expenses 0.00 0.22Registration Fees 0.01 0.25Other Operating Expenses 0.71 0.03Custodian Charges 0.05 0.06Registrar Charges 0.39 0.33

————— —————TOTAL 20.75 165.37

————— —————Surplus / (Deficit) for the year 101.45 (114.71)Add/(Less) : Equalisation Account 0.00 22.53Add : Appreciation in value of Investments (Net) 36.04 0.00


————— —————SIGNIFICANT ACCOUNTING POLICIES FNOTES TO ACCOUNTS GThe Schedules referred to above form an integral part of the Revenue Account.As per our report of even date







40


BARODA PIONEER GLOBAL FUND


(RS.IN LAKH)31.03.2010 31.03.2009

Schedule ‘A’UNIT CAPITALUnit Capital 0.00 206.62

————— —————Total 0.00 206.62

————— —————No. of units of face value Rs. 10/- each 0.00 2,066,245.34Schedule ‘B’RESERVES AND SURPLUSRevenue ReserveOpening Balance (54.24) 37.94Add: Additions / (Deductions) during the year 137.49 (92.18)

————— —————83.25 (54.24)

Unit Premium ReserveOpening Balance 6.96 39.57Add: Additions / (Deductions) during the year (90.21) (32.61)

————— —————(83.25) 6.96

————— —————Total 0.00 (47.28)

————— —————Schedule ‘C’CURRENT LIABILITIES & PROVISIONSCurrent LiabilitiesSundry Creditors 0.00 0.93Others 0.00 15.55

————— —————Total 0.00 16.48

————— —————Schedule ‘D’INVESTMENTSEquity Shares 0.00 150.64Reverse Repos 0.00 15.35

————— —————Total 0.00 165.99

————— —————Schedule ‘E’OTHER CURRENT ASSETSBalance with Banks 0.00 9.67Outstanding and accrued Income 0.00 0.12Others 0.00 0.04

————— —————Total 0.00 9.83

————— —————


41

SCHEDULE F:

COMMON ACCOUNTING POLICY (REFER TO PAGE NO. 51)

SCHEDULE G:


1. Details of Assets as at 31st March 2010 are Nil

2. The particulars of industry group which constitute not less than 5% of the total assets in the major classificationare Nil.

3. The Management Fees have been calculated on a daily basis @ 0.97% per annum on the daily average netassets. Daily Average Net Asset Value as at 30th October 2009 is Rs 2,20,06,989 (Previous year Rs.2,33,42,594).

Management Fees for the year ended 31st March 2010 is Rs.1,24,156. (Previous year Rs.2,11,665).


2009-10 2008-09



Value of sales 2,83,94,163 129.02 18,11,19,744 775.92





Add :- Subscriptions 56,258.590 -548.238 55,710.352 5.57

Less :- Redemptions 11,92,551.008 1,22,873.222 13,15,424.230 131.54

Less:- Redemptions on account 2,81,954.498 5,24,576.959 8,06,531.457 80.65 of Merger

Balance as on 31st March, 2010 Nil Nil Nil Nil




Add :- Subscriptions 19,089.704 9,571.627 28,661.331 2.86

Less :- Redemptions 4,77,261.652 26,986.400 5,04,248.052 50.42


6. During the period there were no transactions pertaining to derivatives and foreign securities.





42





Management Fees 43.55%

Other Operating Expenses 24.93%

Registrar Charges 13.61%




Commission to Agents 25.81%


a) No. of investors : Nil (Previous year 2)

b) Total holdings by such investors as % of the NAV : Nil (Previous year : 51.26%)



12. Details of transactions with Associates in terms of regulation 25(8)

a) Brokerage paid to associates/related parties/group companies of Sponsor/AMC


b) Commission paid to associates/related parties/group companies of sponsor/AMC




During the current year in order to benefit from better economies of scale that will allow efficient managementof these schemes, Baroda Pioneer Diversified Fund and Baroda Pioneer Global Fund were merged withBaroda Pioneer Growth Fund, on a going concern basis with effect from October 30, 2009 (‘the merger’).The resolution for the approval of the merger by the Board of Trustees was passed on December 26, 2008.SEBI has accorded its no objection for the merger, vide its letter No. IMD/RB/175186/2009 dated September1, 2009. The investment objective, asset allocation pattern, annual recurring expenses and all other provisionsas contained in the Scheme Information Document of Baroda Pioneer Growth Fund remains unchangedpost the merger. As required by the SEBI Regulations, the AMC had sent letters to unit-holders of both theschemes seeking their approval for the merger with an option to redeem their units at the prevailing NAV attheir discretion. The Unit holders who consented to the merger were allotted Units in Baroda Pioneer GrowthFund based on closing NAV of Baroda Pioneer Growth Fund as on October 30, 2009.

Transferor Scheme : Baroda Pioneer Global Fund :


Plan Name No. of units NAV AmountPer Unit (Rs.) (Rs.)

Baroda Pioneer Global Fund - Dividend Plan 5,24,576.959 13.8785 72,80,341

Baroda Pioneer Global Fund - Growth Plan 2,81,954.498 13.9047 39,20,214

Total 8,06,531.457 1,12,00,555


43


Net asset value of units allotted in lieu of holdings in Baroda Pioneer Global Fund.

Plan Name No. of Units Allotted NAV Per Unit (Rs.) Amount (Rs.)

Baroda Pioneer Growth Fund - Dividend Plan 2,84,424.997 25.5967 72,80,341

Baroda Pioneer Growth Fund - Growth Plan 86,274.784 45.4387 39,20,214

Total 3,70,699.781 1,12,00,555

15. Exit Load :

In terms of SEBI Circular No. SEBI/IMD/CIR No. 4/168230/09 dated June 30, 2009, with effect fromAugust 1, 2009, the exit load collected from the investors is utilized upto a maximum of 1% of theredemption proceeds for payment to distributors and meeting other marketing and selling expenses. This ismaintained in a separate account and of the exit load or Contingent Deferred Sales Charge (CDSC) chargedto the investor, amount in excess of 1% of the redemption proceeds is credited to the scheme immediately.

16. All previous year figures mentioned above are as on 31st March 2009.

17. Previous year figures have been reclassified/ restated wherever necessary to conform with the currentyear’s presentation.








44


AUDITORS’ REPORT


Dear Sirs,

We have audited the attached Balance Sheet of BARODA PIONEER DIVERSIFIED FUND of BARODA PIONEERMUTUAL FUND, as at 31st March, 2010 and also the Revenue Account for the period ended 30th October, 2009annexed thereto. These financial statements are the responsibility of the Management of the Asset ManagementCompany and the Trustees. Our responsibility is to express an opinion on these financial statements based on ouraudit.









a) in the case of the Balance Sheet of the statement of affairs of BARODA PIONEER DIVERSIFIEDFUND as at 31st March, 2010 and

b) in the case of the Revenue Account of the surplus of the Scheme for the period ended 30th October,2009.



Sd/-Devang Vaghani



45

BARODA PIONEER DIVERSIFIED FUND


(RS.IN LAKH)

Schedule 31.03.2010 31.03.2009

LIABILITIES :-


Reserves & Surplus B 0.00 1,093.90


TOTAL 38.24 2,096.05————— —————

ASSETS :-

Investments D 0.00 1,892.81


TOTAL 38.24 2,096.05————— —————


NOTES TO ACCOUNTS G









46


BARODA PIONEER DIVERSIFIED FUNDREVENUE ACCOUNT FOR THE PERIOD 1ST APRIL 2009 TO 30TH OCTOBER, 2009

(RS.IN LAKH)Schedule 30.10.2009 31.03.2009

INCOME :-Dividend 26.00 33.77Interest 1.61 11.77Profit on Sale of Investments 1,253.15 971.36(Other than inter-scheme transfer/Sale)Other Income 4.11 0.71

————— —————TOTAL 1,284.87 1,017.61

————— —————EXPENSES & LOSSES :-Depreciation in value of investments (Net) 0.00 1,898.40Loss on Sale of Investments 299.67 543.78 (Other than inter-scheme transfer/Sale)Management Fees 16.78 31.05Service tax on Management fees 1.73 3.81Trusteeship Fees 0.02 1.74Office and Administrative Expenses 1.26 2.93Registration Fees 0.12 0.88Commission to Agents 0.05 3.49Audit Fees 0.00 0.11Advertisement Expenses 0.00 2.75Other Operating Expenses 9.56 2.65Custodian Charges 0.50 0.68Registrar Charges 4.94 2.09

————— —————TOTAL 334.63 2,494.36

————— —————Surplus / (Deficit) for the year 950.24 (1,476.75)Add/(Less) Equalisation Account 0.00 (33.84)Add : Appreciation in value of Investments (Net) 390.98 0.00

————— —————Surplus/(Deficit) carried to Balance Sheet 1,341.22 (1,510.59)

————— —————SIGNIFICANT ACCOUNTING POLICIES FNOTES TO ACCOUNTS GThe Schedules referred to above form an integral part of the Revenue Account.As per our report of even date








47

BARODA PIONEER DIVERSIFIED FUND


(RS.IN LAKH)31.03.2010 31.03.2009

Schedule ‘A’UNIT CAPITALUnit Capital 0.00 949.96

————— —————Total 0.00 949.96

————— —————No. of units of face value Rs. 10/- each 0.00 9,499,595.62Schedule ‘B’RESERVES AND SURPLUSRevenue ReserveOpening Balance 1,493.30 3,003.89Add: Additions / (Deductions) during the year 1,341.22 (1,510.59)

————— —————2,834.52 1,493.30

Unit Premium ReserveOpening Balance (399.40) (361.62)Add: Additions/ (Deductions) during the year (2,435.12) (37.78)

————— —————(2,834.52) (399.40)

————— —————Total 0.00 1,093.90

————— —————Schedule ‘C’CURRENT LIABILITIES & PROVISIONSCurrent LiabilitiesSundry Creditors 0.00 10.83Contracts for purchase of investments 0.00 0.00Unclaimed Dividend 36.32 36.32Unclaimed Redemption 1.92 0.00Unit redemption payable 0.00 0.13Others 0.00 4.91

————— —————Total 38.24 52.19

————— —————Schedule ‘D’INVESTMENTSEquity Shares 0.00 1,751.74Reverse Repos 0.00 141.07

————— —————Total 0.00 1,892.81

————— —————Schedule ‘E’OTHER CURRENT ASSETSBalance with Banks 38.24 68.07Receivable from sale of Investments 0.00 25.10Outstanding and accrued Income 0.00 0.81Collateralized Borrowing and Lending Obligations (CBLO) 0.00 105.00Others 0.00 4.26

————— —————Total 38.24 203.24

————— —————

48


SCHEDULE F:

COMMON ACCOUNTING POLICY (REFER TO PAGE NO. 51)

SCHEDULE G:


1. Details of assets as at 31st March 2010 are Nil.

2. The particulars of industry group which constitute not less than 5% of the total assets in the major classificationare Nil.

3. The Management Fees have been calculated and paid on a quarterly basis @ 1.15% of the daily average netassets outstanding in each quarter excluding the deferred revenue expenditure capitalised. Daily Average NetAsset Value as at 30th October 2009 is Rs. 24,91,12,046 (Previous year Rs.26,63,97,614).

Management Fee for the year ended 31 March 2010 is Rs.16,78,351 (Previous year Rs.31,04,906).


2009-10 2008-09


Value of purchases 10,38,76,526 41.70 1,72,02,88,466 645.76Value of sales 17,89,48,271 71.83 1,76,55,39,635 662.75

5. Movement in unit capital:


Dividend Plan Total Unit CapitalNo. of units No. of units (Rs. in Lakhs)

Balance as on 31st March, 2009 94,99,595.620 94,99,595.620 949.96

Add: Subscriptions 5,319.060 5,319.060 0.53

Less:- Redemptions 27,84,775.057 27,84,775.057 278.48

Less:- Redemptions on account of Merger 67,20,139.623 67,20,139.623 672.01

Balance as on 31st March, 2010 Nil Nil Nil


Dividend Plan Total Unit CapitalNo. of units No. of units (Rs. in Lakhs)


Add: Subscriptions 1,582.293 1,582.293 0.16

Less:- Redemptions 3,34,743.412 3,34,743.412 33.47



7. No provision for taxation is required as Baroda Pioneer Mutual Fund is a recognised Mutual Fund under Section10 (23D) of the Income Tax Act, 1961.


b) The Scheme has not subscribed to any issue of equity or debt on private placement basis where thesponsor or associate companies have acted as arranger or manager.


49

9. Details of Unclaimed Dividends as at March 31, 2010:

Amount (Rs.)

Unclaimed Dividends 36,31,907

10. Details of Unclaimed Redemptions as at March 31, 2010:

Amount (Rs.)

Unclaimed Redemptions 1,91,676

11. Details of Non – Performing Investments are as under:

Current Year : 2009-10:


Nil Nil Equity Shares Nil

Previous Year : 2008-09:


1,36,44,891.57* 6084.00 Equity Shares Nil






Other Operating Expenses 27.36%

Registrar Charges 14.13%





a) No. of investors : Nil (Previous year Nil)

b) Total holdings by such investors as % of the NAV : Nil (Previous year Nil)



15. Details of transactions with Associates in terms of regulation 25(8)

a) Brokerage paid to associates/related parties/group companies of Sponsor/AMC


b) Commission paid to associates/related parties/group companies of sponsor/AMC


50




During the current year in order to benefit from better economies of scale that will allow efficient managementof these schemes, Baroda Pioneer Diversified Fund and Baroda Pioneer Global Fund were merged with BarodaPioneer Growth Fund, on a going concern basis with effect from October 30, 2009 (‘the merger’). The resolutionfor the approval of the merger by the Board of Trustees was passed on December 26, 2008. SEBI hasaccorded its no objection for the merger, vide its letter No. IMD/RB/175186/2009 dated September 1, 2009.The investment objective, asset allocation pattern, annual recurring expenses and all other provisions ascontained in the Scheme Information Document of Baroda Pioneer Growth Fund remains unchanged post themerger. As required by the SEBI Regulations, the AMC had sent letters to unit-holders of both the schemesseeking their approval for the merger with an option to redeem their units at the prevailing NAV at theirdiscretion. The Unit holders who consented to the merger were allotted Units in Baroda Pioneer Growth Fundbased on closing NAV of Baroda Pioneer Growth Fund as on October 30, 2009.

Transferor Scheme : Baroda Pioneer Diversified Fund :


Plan Name No. of units NAV Per Unit (Rs.) Amount (Rs.)

Baroda Pioneer Diversified Fund - Dividend Plan 67,17,448.800 36.7747 24,70,32,178

Baroda Pioneer Diversified Fund - Dividend Plan 2,690.823 36.7747 98,954

Total 67,20,139.623 24,71,31,132

Transferee Scheme Name: Baroda Pioneer Growth Fund :

Net asset value of units allotted in lieu of holdings in Baroda Pioneer Diversified Fund.

Plan Name No. of units NAV Per Unit (Rs.) Amount (Rs.)

Baroda Pioneer Growth Fund - Dividend Plan 96,50,938.531 25.5967 24,70,32,178

Baroda Pioneer Growth Fund - Growth Plan 2,177.752 45.4387 98,954

Total 96,53,116.283 24,71,31,132

18. Exit Load :In terms of SEBI Circular No. SEBI/IMD/CIR No. 4/168230/09 dated June 30, 2009, with effect from August1, 2009, the exit load collected from the investors is utilized upto a maximum of 1% of the redemption proceedsfor payment to distributors and meeting other marketing and selling expenses. This is maintained in a separateaccount and of the exit load or Contingent Deferred Sales Charge (CDSC) charged to the investor, amount inexcess of 1% of the redemption proceeds is credited to the scheme immediately.

19. All previous year figures mentioned above are as on 31st March 2009.20. Previous year figures have been reclassified/restated wherever necessary to conform to the current year’s

presentation.As per our report of even dateFor and on behalf of

BORKAR & MUZUMDAR For Baroda Pioneer Asset For Baroda PioneerChartered Accountants Management Co. Ltd. Mutual FundSd/- Sd/- Sd/-Devang Vaghani Rajan Krishnan R. L. BaxiPartner (M. No. 109386) Chief Executive Officer Chairman


Sd/-A. D. M. ChavaliTrusteeSd/-

Place : Mumbai S. K. SuvarnaDate : July 19, 2010 Trustee


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SCHEDULE F : COMMON ACCOUNTING POLICY

SIGNIFICANT ACCOUNTING POLICIES FORMING PART OF THE ACCOUNTS OF BARODA PIONEERGROWTH FUND, BARODA PIONEER ELSS ’96 FUND, BARODA PIONEER BALANCE FUND, BARODAPIONEER GLOBAL FUND & BARODA PIONEER DIVERSIFIED FUND FOR THE YEAR ENDED 31st MARCH,2010

1. BACKGROUND

a) Baroda Pioneer Mutual Fund (“the Mutual Fund”), formerly known as BOB Mutual Fund, has beenconstituted as a Trust in accordance with the provisions of the Indian Trusts Act, 1882 (2 of 1882) on30th October 1992. The trust deed has been registered under the Indian Registration Act, 1908. TheMutual Fund is registered with SEBI under Registration No. MF/018/94/2, dated November 24, 1994.

b) BOB Mutual Fund was established by Bank of Baroda by the execution of a Trust Deed dated October30, 1992. Pioneer Global Asset Management SpA acquired 51% stake in BOB Asset ManagementCompany Limited in 2008 and became co-sponsor for BOB Mutual Fund. The name of BOB MutualFund was then changed to Baroda Pioneer Mutual Fund, for which SEBI approval was received videtheir letter IMD/RB/134922/08 dated August 12, 2008.

c) (i) Baroda Pioneer Growth Fund (“the Scheme”) is an open ended Growth Scheme. InvestmentObjective of the scheme is to generate long term Capital appreciation from an actively managedportfolio of equity related instruments.

(ii) Baroda Pioneer ELSS’96 Fund (“the Scheme”) is an Open Ended Tax Benefit-Cum-Growth Schemewith Insurance Cover. The main objective of the scheme is to provide the investor long term capitalgrowth as also tax benefit under section 80C of the income Tax Act, 1961.

(iii) Baroda Pioneer Balance Fund (“the Scheme”) is an open ended Balance Scheme. The scheme istargeted for long-term capital appreciation along with stability through a well balance portfolio comprisingof equity and debt.

(iv) Baroda Pioneer Global Fund (“the Scheme”). Investment Objective of the scheme is to generatemedium to long term Capital appreciation by investing in a diversified portfolio of equity and equityrelated securities of large mid and small companies.

(v) Baroda Pioneer Diversified Fund (“the Scheme”). Investment Objective of the scheme is togenerate medium to long term Capital appreciation by investing in a diversified portfolio of equity andequity related securities of large mid and small companies.

2. BASIS OF ACCOUNTING

The scheme maintains its books of account on an accrual basis.

3. PREPARATION OF FINANCIAL STATEMENTS OF THE SCHEME

The Expert Advisory Committee (EAC) of the Institute of Chartered Accountants of India (ICAI) has opinedthat the Accounting Standard on Cash Flow Statements (AS-3), Segment Reporting (AS-17) and RelatedParty Disclosures (AS-18) issued by the ICAI are applicable to financial statements of schemes of mutualfunds. The Management of the Baroda Pioneer Asset Management Company (AMC) is of the view that asthe mutual funds are governed by a self contained regulatory framework, i.e. the SEBI Regulations, theNinth and Eleventh Schedules of which, lay down the Accounting Policies and Standards to be adopted andthe disclosures to be made. Accordingly, the financial statements have been prepared on the basis of theSEBI Regulations.

Further the Fund has no reportable business or geographic segments and that the related party transactions,where applicable, are disclosed in Note No. 11/ Note No. 12, as the case may be, of Schedule G.

4. INCOME RECOGNITION

a) Dividends on quoted shares are recognised on the date the respective shares are quoted on Ex-Dividend basis. In case of unquoted shares the dividend is recognised on the date of declaration.

b) Profit or loss on sale of investments is arrived at by applying weighted average cost method and isrecognised on the trade date.

52


c) In respect of securities including those purchased on Reverse-Repo basis, interest income oninvestments is accounted for on accrual basis.

d) Other income of miscellaneous nature is accounted for, as and when realised.

e) Provision is made for income, which is not realised within 12 months from the date of accrual inaccordance with the SEBI Regulations and no further accrual of income is made in respect of suchinvestment.

f) Unrealised gain or loss in the value of investment is determined separately for each investment.Unrealised loss, if any, is charged to Revenue Account while unrealised gain is accounted for underAppropriation Account. However, unrealised gain in the value of investment is reduced from distributableincome at the time of income distribution.

g) Underwriting commission is recognised as revenue only when there is no devolvement on the scheme.Where there is devolvement on the scheme, the full underwriting commission received and not merelythe portion applicable to the devolvement is reduced from the cost of the investment.

5. EXPENSES

Expenses are accounted for on accrual basis.

6. LOAD CHARGES

Load charges collected are used for meeting the selling and distribution expenses.

7. INVESTMENTS

a) Accounting of Investment Transactions

i. Transactions for purchase/sale of investments are accounted for on trade dates at cost includingbrokerage, stamp charges and any customary charge included in the broker’s bought note.Where investment transactions take place outside the stock market, the transactions are recorded,in the event of purchase, as of the date on which the scheme obtains in enforceable obligationto pay the price or in the event of sale, when the scheme obtains an enforceable right to collectthe proceeds of sale or an enforceable obligation to deliver the instruments sold.

ii. Bonus shares to which the scheme becomes entitled to are recognised only when the originalshares on which the bonus entitlement accrues are traded on the stock exchange on an ex-bonusbasis. Similarly rights entitlements are recognised only when the original shares on which theright entitlement accrues are traded on the stock exchange on an ex-rights basis.

iii. In respect of purchase of interest bearing investments, accrued interest receivable is debited tothe Interest Receivable account and not added to the cost of investment. Similarly, interestreceived at the time of sale for the period from the last interest due date upto the date of saleis credited to Interest Receivable account and not treated as an addition to sale value.

iv. In respect of privately placed debt instruments, front end discount, if any, is reduced from thecost of the instrument.

b) Valuation of Investments

i. Equity securities listed on a recognized stock exchange are valued at the last quoted closingprice on the National Stock Exchange of India Limited (NSE). If on a particular valuation date, asecurity is not traded on NSE, the value at which it is traded on the Bombay Stock ExchangeLimited (BSE) is used. If no sale is reported at that time, the last quoted closing price on theprincipal stock exchange on which the security is traded is used when it is not more than thirtydays prior to the valuation date.

ii. All traded Debt securities (other than Government Securities) are valued at the closing marketprice, on the principal stock exchange on the last trading day of the financial year.

iii. Where a Debt Security (other than Government Security) is not traded on the last trading day ofthe financial year, the value at which it is traded on the earliest previous day prior to the valuationdate is used, provided such date is not more than fifteen days.


53

iv. Government Securities are valued at the prices released by CRISIL, which is an approvedagency suggested by Association of Mutual Fund in India (AMFI).

v. All other investments are stated at their fair value as determined by Baroda Pioneer AssetManagement Co. Ltd. using the basis as approved by the Trustees in accordance with the SEBIRegulations.

vi. Money market obligations are valued at cost and interest accrued thereon.

vii. Where an instrument has been bought on ‘Reverse - Repo’ basis, the instrument is valued at theresale price after deduction of applicable interest upto the date of resale.

viii. Investments which have provided no returns in the form of dividend or interest for a periodspecified in the guidelines issued by SEBI are regarded as Non Performing Investments andvalued accordingly.

ix. Non-Traded /Thinly Traded Debt Securities/Asset Backed Securities with over 182 days tomaturity are valued in good faith by the Investment Manager on the basis of valuation principleslaid down by SEBI. The approach in valuation of Non-Traded securities is based on the conceptof using spreads over the Government Securities to arrive at the yields for pricing the Non-Traded Debt Security.

x. Non-Traded/Thinly Traded Debt Securities/Asset Backed Securities with residual maturity upto182 days are valued at cost/last valuation price (as applicable) plus the difference between theredemption value and cost/last valuation price (as applicable) spread uniformly over the remainingperiod till maturity of the instrument.

8. UNIT PREMIUM RESERVE ACCOUNT

The difference between the face value and the purchase/sale price of the units purchased/sold is creditedor debited, as the case may be, to Unit Premium Reserve Account after an appropriate portion of the issueproceeds and redemption payout is credited or debited respectively to the Equalisation Reserve Account.

9. NET ASSET VALUE (NAV)

The NAV for the units issued under the various Options like Growth Option, Dividend Option; etc. is determinedseparately. For reporting NAV for Options, daily income earned of the scheme is apportioned between theOptions in the proportion of the Net Assets of each of the Options.

10. EQUALISATION ACCOUNT

When units are sold, an appropriate part of the sale proceeds is credited to Equalisation Reserve Accountand when units are repurchased an appropriate amount is debited to Equalisation Reserve Account.Thebalance in this account is credited or debited to the Revenue Account.

54


ANNEXURE I

1. Details of transactions with Associates in terms of regulation 25(8)a) Brokerage paid to associates / related parties / group companies of Sponsor / AMC

1st April 2009 - 31st March 2010Scheme Name of Nature of Value of % of Total Value Brokerage % of total

Associate Association Transaction of Transaction (Rs.) brokerage(Rs. in Cr) of the fund paid by the

fundBaroda Pioneer Emkay Global Associate 0.02 1.59 612.00 1.60Balance Fund Financial Services Ltd. BrokerBaroda Pioneer 0.29 1.12 8,650.00 1.12ELSS ‘96 FundBaroda Pioneer 0.44 0.70 13,080.00 0.70Growth FundBaroda Pioneer 0.12 27.80 3,565.00 27.86MIP Fund

1st April 2008 - 31st March 2009Scheme Name of Nature of Value of % of Total Value Brokerage % of total

Associate Association Transaction of Transaction (Rs.) brokerage(Rs. in Cr) of the fund paid by the

fundNil

b) Commission paid to associates/related parties/group companies of sponsor/AMC1st April 2009 - 31st March 2010

Scheme Name Nature of Business % of Total Commission % of totalof Associate Association Given Business Paid commission

(Rs. in Cr.) received (Rs.) paid byby the fund the fund

Baroda Pioneer Bank of Baroda Bank 6.60 98.97 778,417.27 71.28ELSS 96 FundBaroda Pioneer 0.51 98.46 35,300.00 81.68Balance FundBaroda Pioneer 0.05 7.38 109.07 0.46Global FundBaroda Pioneer 0.01 9.30 79.81 8.66Children Fund-Study PlanBaroda Pioneer 0.02 52.27 2,903.79 62.26Diversified FundBaroda Pioneer 0.00 25.00 175.18 25.05Gilt FundBaroda Pioneer 58.62 48.93 3,071,884.38 90.84Growth FundBaroda Pioneer 0.00 78.65 102.06 3.01Income FundBaroda Pioneer 62,909.45 0.74 18,978.66 0.72Liquid FundBaroda Pioneer 2.35 99.53 110,778.65 98.18MIP FundBaroda Pioneer 191.96 29.00 184,470.65 30.48PSU Bond FundBaroda Pioneer 32,235.72 0.36 89,052.08 1.30Treasury AdvantageFund


55

1st April 2008 - 31st March 2009Scheme Name Nature of Business % of Total Commission % of total

of Associate Association Given Business Paid commission(Rs. in Cr) received (Rs.) paid by

by the fund the fundBaroda Pioneer Bank of Baroda Bank 2.14 97.00 414,157.88 58.25ELSS ‘96 FundBaroda Pioneer 0.03 21.24 958.65 9.90Balance FundBaroda Pioneer 0.04 - - -Global FundBaroda Pioneer - - - -Children Fund -Study PlanBaroda Pioneer 0.00 - 428.86 13.88Diversified FundBaroda Pioneer 0.00 100.00 184.90 24.53Gilt FundBaroda Pioneer 0.91 37.60 76,817.79 23.15Growth FundBaroda Pioneer 0.00 100.00 9.10 0.23Income FundBaroda Pioneer 3,189.29 0.51 2,288.46 1.11Liquid Fund

2. Disclosure under Regulation 25(11) of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 as amended,Baroda Pioneer Mutual Fund has made the following investments in companies, which hold units in excess of 5% of the netasset value of any Scheme of Baroda Pioneer Mutual Fund for the period ended March 31, 2010.Company Schemes invested Investment made by schemes Aggregate cost of Outstanding as atName in by the Company of Baroda Pioneer Mutual Fund acquisition during March 31, 2010

in the company / subsidiary the period ended (At Market /31 March, 2010 Fair Value)

(Rupees in Lakhs) (Rupees in Lakhs)ACC Baroda Pioneer Baroda Pioneer ELSS ‘96 Fund 9.41 9.51

Liquid Fund Baroda Pioneer Growth Fund 28.23 28.53Allahabad Baroda Pioneer Baroda Pioneer Income Fund 4.85 -Bank Liquid Fund Baroda Pioneer Liquid Fund 56,338.55 6,972.31

Baroda Pioneer MIP Fund 30.60 29.68Baroda Pioneer PSU Bond Fund 2,921.53 -Baroda Pioneer Treasury Advantage Fund 84,196.21 2,887.82

Andhra Baroda Pioneer Baroda Pioneer PSU Bond Fund 945.95 239.51Bank Liquid Fund Baroda Pioneer Treasury Advantage Fund 19,998.51 9,340.76Bank of Baroda Pioneer Baroda Pioneer Balance Fund 2.00 2.04India Liquid Fund Baroda Pioneer Diversified Fund 37.88 -

Baroda Pioneer ELSS ‘96 Fund 36.64 37.43Baroda Pioneer Global Fund 2.45 -Baroda Pioneer Growth Fund 69.47 112.28Baroda Pioneer Liquid Fund 34,279.79 -Baroda Pioneer MIP Fund 3.35 3.40Baroda Pioneer Treasury Advantage Fund 34,579.97 4,935.31

Bank of Baroda Pioneer Baroda Pioneer Liquid Fund 4,255.33 967.96Maharashtra Liquid Fund Baroda Pioneer MIP Fund 29.88 29.94

Baroda Pioneer PSU Bond Fund 2,948.51 -Baroda Pioneer Treasury Advantage Fund 14,880.10 2,466.12

56


Company Schemes invested Investment made by schemes Aggregate cost of Outstanding as atName in by the Company of Baroda Pioneer Mutual Fund acquisition during March 31, 2010


(Rupees in Lakhs) (Rupees in Lakhs)Central Bank Baroda Pioneer Baroda Pioneer Liquid Fund 11,913.40 -of India Liquid Fund Baroda Pioneer Treasury Advantage Fund 32,314.33 -Corporation Baroda Pioneer Baroda Pioneer Liquid Fund 32,183.41 -Bank Liquid Fund Baroda Pioneer Treasury Advantage Fund 40,022.26 -Crompton Baroda Pioneer Baroda Pioneer Diversified Fund 13.37 -Greaves Liquid Fund Baroda Pioneer ELSS ‘96 Fund 13.94 20.55

Baroda Pioneer Growth Fund 12.83 54.80Edelweiss Baroda Pioneer Baroda Pioneer Liquid Fund 28,000.00 -Securities Liquid Fund Baroda Pioneer Treasury Advantage Fund 39,500.00 -(IncludingSubsidiaryECL Finance)Export Import Baroda Pioneer Baroda Pioneer Liquid Fund 32,201.59 -Bank of India Liquid Fund Baroda Pioneer Treasury Advantage Fund 44,456.22 4,847.82Global Trade Baroda Pioneer Baroda Pioneer Liquid Fund 431,300.00 -Finance Liquid Fund Baroda Pioneer Treasury Advantage Fund 271,200.00 -HDFC Bank Baroda Pioneer Baroda Pioneer Diversified Fund 26.06 -

Liquid Fund Baroda Pioneer ELSS ‘96 Fund 46.13 54.14Baroda Pioneer Growth Fund 140.57 176.92Baroda Pioneer Liquid Fund 19,946.94 -Baroda Pioneer MIP Fund 0.84 -Baroda Pioneer Treasury Advantage Fund 33,780.87 -

IDBI Bank Baroda Pioneer Baroda Pioneer Balance Fund 0.64 0.58Liquid Fund Baroda Pioneer ELSS ‘96 Fund 11.65 11.50

Baroda Pioneer Growth Fund 50.86 79.35Baroda Pioneer Liquid Fund 44,917.76 -Baroda Pioneer Treasury Advantage Fund 26,544.23 -

Infrastructure Baroda Pioneer Baroda Pioneer Growth Fund 10.68 -Development Treasury AdvantageFinance FundCompanyJaiprakash Baroda Pioneer PSU Baroda Pioneer Balance Fund 0.34 -Associates Bond Fund Baroda Pioneer Diversified Fund 3.74 -

Baroda Pioneer ELSS ‘96 Fund 6.34 -Baroda Pioneer Global Fund 1.36 -Baroda Pioneer Growth Fund 8.47 -

Jindal SAW Baroda Pioneer Baroda Pioneer ELSS ‘96 Fund 5.96 8.50Liquid Fund Baroda Pioneer Growth Fund 53.17 59.47

L & T Baroda Pioneer Baroda Pioneer Balance Fund 1.57 4.08(Including Liquid Fund Baroda Pioneer Diversified Fund 28.50 -Subsidiary Baroda Pioneer ELSS ‘96 Fund 96.95 126.39L&T Finance Baroda Pioneer Growth Fund 220.51 307.42and L&T Baroda Pioneer Liquid Fund 106,979.22 -Infrastructure Baroda Pioneer MIP Fund 8.08 8.16Finance) Baroda Pioneer Treasury Advantage Fund 112,500.00 -LIC Housing Baroda Pioneer Baroda Pioneer Balance Fund 1.57 1.74Finance Liquid Fund Baroda Pioneer ELSS ‘96 Fund 10.33 11.33

Baroda Pioneer Growth Fund 38.06 41.83Baroda Pioneer MIP Fund 1.57 -


57



(Rupees in Lakhs) (Rupees in Lakhs)Mahindra & Baroda Pioneer Baroda Pioneer Liquid Fund 393,300.00 -Mahindra Liquid Fund Baroda Pioneer Treasury Advantage Fund 199,000.00 -FinancialServicesMaruti Suzuki Baroda Pioneer Baroda Pioneer Balance Fund 0.50 0.85India Liquid Fund Baroda Pioneer Diversified Fund 24.85 -

Baroda Pioneer ELSS ‘96 Fund 12.42 15.60Baroda Pioneer Global Fund 2.48 -Baroda Pioneer Growth Fund 78.14 104.93

NABARD Baroda Pioneer Baroda Pioneer PSU Bond Fund 4,175.77 2,091.60Liquid Fund Baroda Pioneer Treasury Advantage Fund 1,043.33 -

Oriental Bank Baroda Pioneer Baroda Pioneer Treasury Advantage Fund 7,163.04 7,231.65of Commerce Treasury Advantage FundPetronet LNG Baroda Pioneer Baroda Pioneer Balance Fund 0.38 0.38

Liquid Fund Baroda Pioneer Diversified Fund 12.09 -Baroda Pioneer ELSS ‘96 Fund 14.88 14.83Baroda Pioneer Global Fund 1.36 -Baroda Pioneer Growth Fund 35.33 48.90

Punjab and Baroda Pioneer Baroda Pioneer Liquid Fund 25,385.53 -Sind Bank Liquid Fund Baroda Pioneer Treasury Advantage Fund 38,427.83 -Punjab Baroda Pioneer Baroda Pioneer Balance Fund 0.61 1.11National Bank Liquid Fund Baroda Pioneer Diversified Fund 27.44 -

Baroda Pioneer ELSS ‘96 Fund 28.84 15.19Baroda Pioneer Global Fund 1.23 -Baroda Pioneer Growth Fund 87.74 91.15Baroda Pioneer Liquid Fund 56,463.24 20,608.30Baroda Pioneer MIP Fund 29.76 29.80Baroda Pioneer PSU Bond Fund 2,972.12 432.13Baroda Pioneer Treasury Advantage Fund 77,464.17 13,524.08

Religare Baroda Pioneer Baroda Pioneer Treasury Advantage Fund 42,250.27 7,259.00Finvest Liquid Fund

Shriram Baroda Pioneer Baroda Pioneer Liquid Fund 37,563.12 -Transport Liquid Fund Baroda Pioneer Treasury Advantage Fund 10,000.00 -FinanceState Bank Baroda Pioneer Baroda Pioneer MIP Fund 29.19 29.20of Bikaner & Liquid Fund Baroda Pioneer PSU Bond Fund 2,876.27 1,430.94Jaipur Baroda Pioneer Treasury Advantage Fund 17,655.91 8,279.27State Bank Baroda Pioneer Baroda Pioneer Liquid Fund 9,875.07 9,877.78of Mysore Liquid Fund Baroda Pioneer PSU Bond Fund 1,761.22 -

Baroda Pioneer Treasury Advantage Fund 26,001.88 -State Bank Baroda Pioneer Baroda Pioneer Income Fund 4.90 3.99of Travancore Liquid Fund Baroda Pioneer Liquid Fund 15,643.16 7,439.87

Baroda Pioneer MIP Fund 29.81 29.90Baroda Pioneer PSU Bond Fund 1,144.98 -Baroda Pioneer Treasury Advantage Fund 16,694.98 -

Sun Baroda Pioneer Baroda Pioneer Growth Fund 43.02 -Pharmaceutical Liquid FundIndustries

58




(Rupees in Lakhs) (Rupees in Lakhs)Syndicate Bank Baroda Pioneer Baroda Pioneer Liquid Fund 27,257.73 -

Liquid Fund Baroda Pioneer Treasury Advantage Fund 37,082.35 -Tata Capital Baroda Pioneer Baroda Pioneer Liquid Fund 528,442.97 -

Liquid Fund Baroda Pioneer Treasury Advantage Fund 334,834.72 -UCO Bank Baroda Pioneer Baroda Pioneer Liquid Fund 990.33 -

Liquid FundUnion Bank Baroda Pioneer Baroda Pioneer Balance Fund 2.15 -of India Liquid Fund Baroda Pioneer Diversified Fund 82.79 -

Baroda Pioneer ELSS ‘96 Fund 55.85 21.92Baroda Pioneer Global Fund 12.61 -Baroda Pioneer Growth Fund 93.21 76.00Baroda Pioneer Liquid Fund 42,261.24 -Baroda Pioneer PSU Bond Fund 2,830.19 -Baroda Pioneer Treasury Advantage Fund 58,394.14 -

United Bank Baroda Pioneer Baroda Pioneer ELSS ‘96 Fund 2.01 2.10of India Liquid Fund Baroda Pioneer Growth Fund 7.48 7.80Vijaya Bank Baroda Pioneer Baroda Pioneer Liquid Fund 2,420.66 -

Treasury AdvantageFundBaroda PioneerLiquid Fund


59

PERSPECTIVE HISTORICAL PER UNIT STATISTICS FOR THE YEAR ENDED MARCH 31, 2010BARODA PIONEER BARODA PIONEER BARODA PIONEER

GROWTH FUND ELSS ’96 FUND BALANCE FUNDPeriod Period Period Period Period Period Period Period PeriodEnded Ended Ended Ended Ended Ended Ended Ended Ended

31-Mar-10 31-Mar-09 31-Mar-08 31-Mar-10 31-Mar-09 31-Mar-08 31-Mar-10 31-Mar-09 31-Mar-08(a) Net asset value per unit

at the end of the periodDividend Plan 27.83 16.81 24.78 24.23 12.93 22.87 26.07 17.34 27.12Growth Plan 49.41 26.68 39.31 - - - 25.81 17.16 26.84Daily Dividend Plan - - - - - - - - -Weekly Dividend - - - - - - - - -Monthly Dividend - - - - - - - - -Quarterly Dividend - - - - - - - - -Institutional Daily - - - - - - - - -DividendInstitutional Weekly - - - - - - - - -DividendInstitutional Growth - - - - - - - - -

(b) Gross Income(i) income other than profit 0.15 0.39 0.50 0.24 0.24 0.31 0.29 0.54 0.57

on sale of investment(ii) income from profit on - - - - - - - - -

inter scheme sales/transfer of investment

(iii) income (net) from profit 1.78 (0.34) 3.69 3.87 (2.10) 1.97 3.63 (0.42) 8.01on sale of investmentsto third party

(iv) transfer of revenue - - - - - - - - -account from past year’sreserve

(c) Aggregate of expenses, 0.43 0.51 0.62 0.38 0.33 0.63 0.50 0.47 0.71writeoff, amortisation andcharges (excludingchange in unrealiseddepreciation on investments)

(d) Net Income (excluding change - (0.45) 3.57 - (2.19) 1.65 - (0.35) 7.88in unrealised appreciation /depreciation on investments)

(e) Unrealised appreciation / 3.40 (8.00) 8.66 5.66 (5.23) 2.78 3.87 (9.29) (0.84)(depreciation) in value ofinvestments

(f) Redemption priceHighest

Dividend Plan 28.35 27.39 32.76 25.03 24.81 32.30 26.51 27.36 35.38Growth Plan 50.34 43.45 51.96 - - - 26.24 27.09 35.24Daily Dividend Plan - - - - - - - - -Weekly Dividend - - - - - - - - -Monthly Dividend - - - - - - - - -

60


BARODA PIONEER BARODA PIONEER BARODA PIONEER GROWTH FUND ELSS ’96 FUND BALANCE FUND

Period Period Period Period Period Period Period Period PeriodEnded Ended Ended Ended Ended Ended Ended Ended Ended

31-Mar-10 31-Mar-09 31-Mar-08 31-Mar-10 31-Mar-09 31-Mar-08 31-Mar-10 31-Mar-09 31-Mar-08Quarterly Dividend - - - - - - - - -Institutional Daily - - - - - - - - -DividendInstitutional Weekly - - - - - - - - -DividendInstitutional Fortnightly - - - - - - - - -DividendInstitutional Monthly - - - - - - - - -DividendInstitutional Quarterly - - - - - - - - -DividendInstitutional Growth - - - - - - - - -

LowestDividend Plan 16.95 13.87 17.19 13.13 11.38 17.91 17.32 15.39 21.29Growth Plan 26.90 22.00 27.24 - - - 17.14 15.25 21.22Daily Dividend Plan - - - - - - - - -Weekly Dividend - - - - - - - - -Monthly Dividend - - - - - - - - -Quarterly Dividend - - - - - - - - -Institutional Daily - - - - - - - - -DividendInstitutional Weekly - - - - - - - - -DividendInstitutional Fortnightly - - - - - - - - -DividendInstitutional Monthly - - - - - - - - -DividendInstitutional Quarterly - - - - - - - - -DividendInstitutional Growth - - - - - - - - -

(g) Purchase priceHighest

Dividend Plan 29.28 28.29 33.83 25.66 25.43 33.11 27.38 28.26 36.54Growth Plan 51.99 44.88 53.66 - - - 27.11 27.98 36.40Daily Dividend Plan - - - - - - - - -Weekly Dividend - - - - - - - - -Monthly Dividend - - - - - - - - -Quarterly Dividend - - - - - - - - -Institutional Daily - - - - - - - - -DividendInstitutional Weekly - - - - - - - - -Dividend


61

BARODA PIONEER BARODA PIONEER BARODA PIONEER GROWTH FUND ELSS ’96 FUND BALANCE FUND

Period Period Period Period Period Period Period Period PeriodEnded Ended Ended Ended Ended Ended Ended Ended Ended

31-Mar-10 31-Mar-09 31-Mar-08 31-Mar-10 31-Mar-09 31-Mar-08 31-Mar-10 31-Mar-09 31-Mar-08Institutional Fortnightly - - - - - - - - -DividendInstitutional Monthly - - - - - - - - -DividendInstitutional Quarterly - - - - - - - - -DividendInstitutional Growth - - - - - - - - -

LowestDividend Plan 17.51 14.33 17.75 13.46 11.66 18.36 17.88 15.90 21.99Growth Plan 27.78 22.72 28.14 - - - 17.70 15.75 21.91Daily Dividend Plan - - - - - - - - -Weekly Dividend - - - - - - - - -Monthly Dividend - - - - - - - - -Quarterly Dividend - - - - - - - - -Institutional Daily - - - - - - - - -DividendInstitutional Weekly - - - - - - - - -DividendInstitutional Fortnightly - - - - - - - - -DividendInstitutional Monthly - - - - - - - - -DividendInstitutional Quarterly - - - - - - - - -DividendInstitutional Growth - - - - - - - - -

(h) Price earnings ratio N.A N.A N.A N.A N.A N.A N.A N.A N.A(i) Ratio of expenses to 2.50% 2.45% 1.92% 2.50% 2.50% 2.10% 2.38% 2.18% 2.16%

average daily net assetsby percentage(annualised, excludingunrealised appreciation/depreciation on investments)

(j) Ratio of gross income / loss 31.12% -38.29% 48.31% 55.28% -54.11% 20.95% 37.08% -42.61% 27.93%to average daily net assetsby percentage(annualised, includingunrealised appreciation /depreciation oninvestments and net profitor loss on sale ofinvestments.)

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Risk Factors: Mutual funds and securities investment are subject to market risks and there is no assuranceor guarantee that the Schemes’ objectives will be achieved. As with any investment in securities, the NAVof the units issued under the Schemes can go up or down depending on the factors and forces affectingthe securities market. Past performance of the Sponsor/ AMC/ Mutual Fund is not indicative of the futureperformance of the Schemes. Baroda Pioneer Growth Fund, Baroda Pioneer ELSS ’96 Fund, BarodaPioneer Balance Fund, Baroda Pioneer Monthly Income Plan (MIP) Fund, Baroda Pioneer Public SectorUndertaking (PSU) Bond Fund, Baroda Pioneer Liquid Fund, Baroda Pioneer Income Fund, BarodaPioneer Treasury Advantage Fund and Baroda Pioneer GILT Fund are only the names of the Schemes anddo not in any manner indicate either the quality of the schemes or their future prospects and returns.Statutory Details: Baroda Pioneer Mutual Fund has been set up as a trust under the Indian Trust Act, 1882.Sponsors: Pioneer Global Asset Management S.p.A and Bank of Baroda. The Sponsors are not responsible orliable for any loss resulting from the operation of the Scheme beyond their initial contribution of Rs. 10 Lac madeby it towards the corpus of the Fund. Trustees: Board of Trustee of Baroda Pioneer Mutual Fund.Investment Manager: Baroda Pioneer Asset Management Company Limited.

Please read the Statement of Additional Information, Key Information Memorandum and relevant SchemeInformation Document carefully before investing.

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Avenue 4, Street No.1, Banjara Hills, Hyderabad - 500 034.

Ph: +91-40-23312454, 23320251 / 751. Fax: +91-40-23311968.

baroda pioneer - equity 150710 · poland. in 2002, it acquired the momentum group, which, in...

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