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BARODA PIONEER MUTUAL FUND

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ANNUAL REPORT OF THE BOARD OF TRUTEES FOR THE YEAR ENDED 31.03.2008

The Board of Trustees of Baroda Pioneer Mutual Fund (formerly known as BOB Mutual Fund) have pleasurein presenting their fifteenth Annual Report with Audited Accounts of the Schemes of BOB Mutual Fund forthe year ended March 31, 2008.

The goal of Baroda Pioneer Mutual Fund has been ‘Customer Satisfaction’. We always put our best effortthat is directed towards improving performance, investor services and investment option to achieve desiredgoal.

Baroda Pioneer Mutual Fund

BOB Mutual Fund, which has been renamed as Baroda Pioneer Mutual Fund (“the Mutual Fund” or “theFund”) has been constituted as a Trust in accordance with the provisions of the Indian Trusts Act, 1882 (2of 1882).The trust deed has been registered under the Indian Registration Act, 1908. The Mutual Fund isregistered with SEBI under Registration No. MF/018/94/2, dated November 24, 1994.

BOB Mutual Fund was established by Bank of Baroda by execution of a Trust Deed dated October 30, 1992.Pioneer Global Asset Management SpA has acquired 51% of the shareholdings of BOB Asset ManagementCompany Limited and become the co- sponsor of the BOB mutual Fund. SEBI has approved the name ofthe fund to Baroda Pioneer Mutual Fund vide its letter IMD/RB/134922/08 dated August 12, 2008.

The Sponsor is not responsible for any loss resulting from the operation of the Schemes beyond the initialcontribution of the said sum of Rupees Ten lac made by it towards setting up of BOB Mutual Fund andsuch other accretions/additions to the same.

The address of Baroda Pioneer Mutual Fund is 105, Makers Chambers III, Nariman Point,Mumbai- 400 021.

BOARD OF TRUSTEES

Name Occupation Residential/office Address Directorship

Mr. R. L. Baxi Retired Director & C – 23/24, Modinagar, ESS DEE Aluminum Ltd.Chairman General Manager, Adarsh Co-op Society, GIC Asset Management(Independent) The New India Off Mathuradas Road, Company Limited

Assurance Co. Ltd. Kandivli (West),Mumbai - 400 067.

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

Near Shivsagar,Bandra (W),Mumbai 400 050.

Mr. Shrinivas Ex Dy. DGM, A 904, Shagun Tower, NilSuvarna Bank of Baroda Gen. A. K. Vaidya Marg,(Independent) Goregaon(E)

Mumbai- 400063

Mr. Debabarat General Manager Bank of Baroda, NilSarkar Bank of Baroda Geater Mumbai Zone(Associate) Mumbai

The Trustees of Baroda Pioneer Mutual Fund seek to supervise the role of Baroda Pioneer AssetManagement Co. Ltd., ”Investment Manager”, through the reporting mechanism calling for compliances ofSEBI (MF) Regulation 1996 and the investment policy of Baroda Pioneer Mutual Fund. The investmentpolicy also incorporates guidelines and restrictions to be followed by the Investment Manager. Thecompliance of SEBI Regulations is reported by the AMC on a bi-monthly basis as required by the compliancemanual of Baroda Pioneer Mutual Fund. The Investment Manager also files a quarterly report on its activitieswith the Trustees.

The Trustees have formed an Audit Committee of the Trustees to review the internal audit system ofBaroda Pioneer Mutual Fund and the recommendations of the internal and statutory auditors. The Committeeis chaired by an Independent Trustee.

ANNUAL REPORT 2007 - 2008

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BARODA PIONEER ASSET MANAGEMENT COMPANY LIMITED

Baroda Pioneer Asset Management Company Limited, formerly known as as BOB Asset ManagementCompany Ltd, has been incorporated under the provisions of the Companies Act, 1956. The company wasa wholly owned subsidiary of Bank of Baroda. On 27th June 2008, Pioneer Global Asset Management SpA,Italy acquired a 51% shareholding of BOB Asset Management Company Limited, Subsequently, the nameof the AMC was changed to Baroda Pioneer Asset Management Company Limited. As per the SEBI(Mutual Funds) Regulations, 1996, at least 50% of the Board of Directors are Independent members andthe remaining are nominated for appointment by the Sponsor of the AMC. The net worth of BOBAMC as on31st March 2008 is Rs.30.87 Crore.

BOARD OF DIRECTORS

The Company has at present the following ten Directors, out of whom five Directors are Non-ExecutiveIndependent Directors.

Dr. Anil K Khandelwal ChairmanProf B B Bhattacharya Independent DirectorDr. P N Khandwalla Independent DirectorMr G P Gupta Independent DirectorMr. Shiv Dayal Independent DirectorMr. Rohit Arora Independent DirectorMr. Dario Frigerio Associate DirectorMr. Angus Stening Associate DirectorMr. B A Prabhakar Associate Director

Mr. S. Bhattacharya Associate Director

Mr. B A Prabhakar has been appointed as an Additional Director of the Company since January 22, 2008and he is entitled to hold office up to the date of the next Annual General Meeting.

Mr. G. P. Gupta, Prof B B Bhattacharya, Dr P N Khandwalla, Mr. Shiv Dayal and Mr. Rohit Arora have beenappointed as Additional Director as well as Independent Director of the Company since June 27, 2008 andthey are entitled to hold office up to the date of the next Annual General Meeting.

Dr. Anil K Khandelwal, Mr. Dario Frigerio and Mr. Angus Stening have been appointed as Additional Directorof the Company since June 28, 2008 and they are entitled to hold office up to the date of the next AnnualGeneral Meeting.

Mr. S. Bhattacharya, who was the Managing Director of the Company since 20th July 2006, resigned fromthe post of Managing Director of the Company wef 8th July 2008 and he continues as a Director of theCompany

Mr. Suresh Jivandas Pabari and Mr. Bhagawati Prasad Managal who had been appointed as AdditionalDirector as well as Independent Director of the Company since November 22, 2007 resigned from theDirectorship of the Company wef June 27, 2008.

Mr. Bhagirat B. Merchant and Mr. S.D.Abhayankar resigned from the Directorship of the Company onOctober 10, 2007 and Mr. S. S. Mundra resigned from the Directorship of the Company on January 17,2008.

MUTUAL FUND INDUSTRY

The mutual fund industry recorded a healthy growth in the financial year 2007-08. Gross mobilizations bythe industry during the year amounted to Rs.44,67,943 crore as against Rs.19,41,347 crore in the previousyear, registering a growth of 130%. The Industry also witnessed a gross redemption of Rs. 43,12,979 crorerepresenting 134% increase over the previous year figure of Rs. 18,46,198 crore On a net basis, there wasan inflow of Rs. 1,54,964 crore as against Rs. 95,149 crore in the last year registering a growth of 63%.The Average Assets Under Management of the industry as on March 31, 2008 stood at Rs. 5,42,389 croreas against Rs. 3,61,254 crore the previous year recording an increase of over 50%. A combination ofinvestor friendly and market-related products, extension of branch network, favourable market conditionsfor much of the year and investor awareness campaigns by fund houses contributed to the increasedinflow. There is also an increasing trend towards tapping non-metro and rural markets.


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PERFORMANCE OF BOB MUTUAL FUND AND FUTURE OUTLOOK

As on 31.03.2008 the total net assets under the various schemes were Rs. 70.36 crore. The overallperformance of the Schemes were satisfactory.

As per rating awarded by the Economic Times for the quarter ended March 2008, our equity schemes BOBELSS’96 scheme, BOB Growth Scheme and BOB Diversified Scheme were rated in the ‘Gold, silver andBronze category’ respectively.

Also our Debt Schemes BOB Income Fund and BOB MIP rated in ‘Lead Category’ and BOB Balance Fundin ‘Bronze Category’.

During the current year, your Mutual Fund plans to come out with schemes to cater to specific investmentneeds.

FUTURE OUTLOOK

According to a report of McKinsey, a global consultancy firm, the Indian Asset Management business isexpected to grow at least 33% annually. The main drivers will be the retail segment and institutionalinvestor segment. AUM as a percentage of GDP works out to only 8% in India as compared with 79% in theUS, and 39% in Brazil. AUM as a percentage of bank deposits is also abysmally low in India, at 25%, whileit is 140% in the US and 96% in Brazil. SEBI has recently withdrawn the flexibility of charging the initialissue expenses to the new close-ended funds and amortising it over a period of 5 years. In view of this, theinitial issue expenses incurred for the launch of the new funds will be confined to the extent of the entryload collected and any expenses in excess will be borne by the company. In addition, Asset ManagementCompanies cannot charge anyentry load in respect direct investments pursuant to SEBI circular. Yourcompany believes the measures will be in the long-term interest of all stakeholders in the mutual fundsbusiness. In the near-to-medium term, the measures could impact on the profitability of the company. Withthe entry of new players in the mutual fund industry, competition is likely to Intensify.

Baroda Pioneer Asset Management will strive to provide well-defined products that cater to a diverserange of risk, return and liquidity preferences of investors. Your company is confident of a robust growth inAUM on the back of consistent performance, a well thought-out marketing and distribution strategy, enhancedgeographical reach and quality customer service. It is proposed that the branch network of the Bank,especially in the rural and semi-urban areas would be used for broadening investor base.

ACKNOWLEDGEMENT

Baroda Pioneer Mutual Fund is grateful to its unit holders for reposing faith and confidence in it. The Fundexpresses its deep gratitude to Securities and Exchange Board of India, Association of Mutual Funds ofIndia, Reserve Bank of India, Auditors, Registrars, Custodians, Bankers, Agents and Brokers for theircontinued support, advice and co-operation.

Last but not the least, the Fund places on record its appreciation for the excellent services rendered by theDirectors and staff of Baroda Pioneer Asset Management Company Limited in managing the affairs of theFund.

For and on behalf of the Board of Trustees

R. L. BaxiChairman

Place : MumbaiDate :


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SCHEMEWISE SUMMARY STATEMENT

BARODA PIONEER LIQUID FUND (Formerly known as BOB Liquid Fund)

Baroda Pioneer Liquid Fund is an open-ended money market scheme targeted for generating income witha high level of liquidity by investing in a portfolio of money market instruments and debt securities. Theinitial offer of the scheme was open from 14.02.2002 to 18.02.2002 and the scheme again opened for on-going sales/repurchase from 22.02.2002. As on 31.03.2008 the net assets of the scheme was Rs.11.71Crore.

The per unit NAV of the Scheme under the Dividend Plan and Growth Plan was Rs. 12.26 and Rs. 14.31respectively as on 31st March, 2008.

Mutual Funds and securities investments are subject to market risks & the NAV and redemption value ofthe Units and income from them can go up or down with the fluctuations in the market value of its underlyinginvestments.

To

The Board of Trustees,BOB Mutual Fund,Mumbai.

Dear Sirs,

We have audited the attached Balance Sheet of BOB LIQUID FUND of BOB MUTUAL FUND, as at 31stMarch, 2008 and also the Revenue Account for the year ended on that date annexed thereto. Thesefinancial statements are the responsibility of the Management of Asset Management Company and theTrustees. 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 Standardsrequire that we plan and perform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, as well as evaluating theoverall financial statement presentation. We believe that our audit provides a reasonable basis for ouropinion.

Based on the above, we report that :

1. We have obtained all the information and explanations, which to the best of our knowledge and beliefwere necessary 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 asappears from 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 standardsas specified in 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, theaccounts read with the Statement on Significant Accounting Policies and Notes on Accounts attachedthereto give a true and fair view in conformity with the accounting principles generally accepted inIndia:

a) in the case of the Balance Sheet of the state of affairs of BOB LIQUID FUND as at 31st March,2008 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

Rajesh C. BathamPlace : Mumbai PartnerDate : 26.04.2008 (M. No. 35941)


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BOB LIQUID FUND

BALANCE SHEET AS ON 31ST MARCH, 2008

Schedule 31.03.2008 31.03.2007(RS.IN LAKH) (RS.IN LAKH)

LIABILITIES :-

Unit Capital A 818.35 2,654.54

Reserves & Surplus B 352.30 811.38

Current Liabilities & Provisions C 3.70 8.29

TOTAL 1174.35 3474.21

ASSETS :-

Investments D 749.12 2,474.93

Deposits E 408.27 900.00

Other Current Assets F 16.96 99.28

TOTAL 1174.35 3474.21

SIGNIFICANT ACCOUNTING POLICIES G

NOTES ON ACCOUNTS H

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

As per our report of even date


BORKAR & MUZUMDAR For BOB Asset Management Co. Ltd. For BOB Mutual FundChartered Accountants

Rajesh C. Batham S. Bhattacharya R. L. BaxiPartner Managing Director Chairman(M.No. 35941)

V. H. Bhatia

M. B. Samant

Place : MUMBAI S. K. SuvarnaDate : 26.04.2008 Trustees


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BOB LIQUID FUND

REVENUE ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2008


INCOME :-

Interest 209.92 554.23

Profit on Sale of Investments (Net) 0.00 0.84

(Other than inter-scheme transfer/Sale)

TOTAL 209.92 555.07

EXPENSES & LOSSES :-

Interest on overdraft 1.24 3.59

Depreciation in value of Investments 0.00 0.00

Loss on Sale of Investments (Net) 0.00 0.00

Management Fees 4.99 20.20

Trusteeship Fees 0.63 0.78

Office and Administrative Expenses 1.49 3.53

Registration Fees 1.27 1.07

Commission to Agents (1.90) 1.80

Publicity Expenses 0.23 0.56

Audit Fees 0.32 0.43

Other Operating Expenses 4.54 4.26

Custodian Charges 0.42 1.24

Registrar Charges 0.08 3.98

Surplus / (Deficit) for the year 196.61 513.63

TOTAL 209.92 555.07


Add / (Less) : Equalisation Account (74.87) (264.14)

Add :Surplus/(Deficit) brought forward from the previous year 2,905.58 2,680.48

Amount Available for Appropriation 3,027.32 2,929.97

APPROPRIATIONS :

Daily Dividend Reinvestment 0.28 19.95

Tax on Dividend 0.07 4.44

Surplus/(Deficit) carried to Balance Sheet 3026.97 2905.58

The Schedules referred to above form an integral part of the Revenue Account





V. H. Bhatia

M. B. Samant



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BOB LIQUID FUND

SCHEDULES FORMING PART OF THE BALANCE SHEET AS ON 31.03.2008

31.03.2008 31.03.2007(RS.IN LAKH) (RS.IN LAKH)

Schedule ‘A’

UNIT CAPITAL

Unit Capital 818.35 2,654.54

Total 818.35 2654.54

No. of units of face value Rs. 10/- each 8,183,521.95 26,545,442.54

Schedule ‘B’

RESERVES AND SURPLUS

Surplus / (Deficit) as per Revenue Account 3026.97 2905.58

Unit Premium Reserve A/c

Opening Balance (2,094.20) -1520.34

Add: Additions / (Deductions) during the year (580.47) -573.86

(2,674.67) (2,094.20)

Total 352.30 811.38

Schedule ‘C’

CURRENT LIABILITIES & PROVISIONS

Sundry creditors 3.09 8.02

Others 0.61 0.27

Total 3.70 8.29

Schedule ‘D’

INVESTMENTS

Certificate of Deposits 0.00 2,389.28

MIBOR Paper 300.00 0.00

Reverse Repos 449.12 85.65

Total 749.12 2474.93

Schedule ‘E’

DEPOSITS

Deposit with Companies / Institutions 100.00 100.00

Deposit with Scheduled Banks 308.27 800.00

(Pledged with BOB against OD)

Total 408.27 900.00

Schedule ‘F’

OTHER CURRENT ASSETS

Balance with Banks 3.37 5.19

Outstanding and accrued Income 7.14 74.92

Advance / Deposits 0.18 11.53

Others 6.27 7.64

Total 16.96 99.28


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NOTES ATTACHED TO AND FORMING PART OF THE BALANCE SHEET AS AT 31st Mar.,2008

I HISTORICAL PER UNIT STATISTICS

PARTICULARS 31.03.2008 31.03.2007(Rupees) (Rupees)

a) Net Asset Value

GROWTH PLAN 14.3136 13.4097

DIVIDEND PLAN 12.2673 11.4991

DAILY DIVIDEND PLAN 0.0000 10.0419

b) Break up of Gross Income per unit

i) Income other than profit on sale of investments 2.565 2.088

ii) Income from profit on interscheme sale/transferof investments 0.000 0.000

iii) Income from profit on sale of investment to thirdparty 0.000 0.003

iv) Transfer to revenue account from past years reserve 0.000 0.000

v) Unrealised appreciation of Investments 0.000 0.000

(I) 2.565 2.091

c) i) Aggregate of Expenses, write off, amortisation and charges 0.163 0.156

ii) Loss on interscheme sale/transfer of investments 0.000 0.000

iii) Loss on sale of investment to third party 0.000 0.000

iv) Depreciation in value of investments (net) 0.000 0.000

(II) 0.163 0.156

d) Net Income (I) - (II) 2.402 1.935


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SCHEDULE G :

SIGNIFICANT ACCOUNTING POLICIES FORMING PART OF THE ACCOUNTS OF BOB LIQUID FUNDFOR THE YEAR ENDED 31ST MARCH, 2008

1. INCOME RECOGNITION

a) In respect of securities including those purchased on Reverse - Repo basis, interest income is accountedfor on accrual basis.

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

c) Other income of miscellaneous nature is accounted for if realised.

d) Provision is made for income, which is not realised within 12 months from the date of accrual.

e) Unrealised appreciation/depreciation in the value of investments, if any, is credited/charged to RevenueAccount. However, such appreciation is excluded in the considerations for income distributions.

2. EXPENSES

Expenses are accounted for on accrual basis.

3. INVESTMENTS

a) Accounting of Investment Transactions

i. Transactions for purchases/sales of investments are accounted as investments on trade dates.

ii. In respect of purchase of interest bearing investments accrued interest receivable is debited to theinterest receivable account and not added to the cost of investment.

b) Valuation of Investments

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

ii. Where a Debt Security (other than Government Security) is not traded on the last trading day of thefinancial year, the value at which it is traded on the earliest previous day prior to the valuation date isused, provided such date is not more than fifteen days.

iii. Government Securities are valued at yield to maturity rates announced by CRISIL.COM.

iv. All other investments are stated at their fair value as determined by BOB Asset Management Co. Ltd.using the basis as approved by the Trustees in accordance with the SEBI Regulations.

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

vi. Where instruments have been bought on ‘REPO’ basis, the instrument is valued at the resale priceafter deduction of applicable interest upto the date of resale.

vii. Investments which have provided no returns in the form of dividend or interest for a period specified inthe guidelines issued by SEBI, are regarded as Non Performing Investments and valued accordingly.

4. UNIT PREMIUM RESERVE ACCOUNT

The difference between the Face Value and the Net Asset Value of the units repurchased/sold iscredited or debited, as the case may be, to Unit Premium Reserve Account.

5. NET ASSET VALUE (NAV)

The NAV for the units issued under the Growth Plan and Dividend Plan is determined separately. Forreporting NAV, for Growth Plan and Dividend Plan, daily income earned of the scheme is apportionedbetween the plans in the proportion of Net Assets of each of the plans.

6. EQUALISATION ACCOUNT

When units are sold an appropriate part of the sale proceeds is credited to Equalisation Account andwhen units are repurchased an appropriate amount is debited to Equalisation Account. The balancein this account is credited or debited to the Revenue Account.


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SCHEDULE H :

NOTES FORMING PART OF THE ACCOUNTS OF BOB LIQUID FUND FOR THE YEAR ENDED 31STMARCH, 2008

1. Perspective historical per unit statistics for the last 3 years :

As on As on As on31.03.2008 31.03.2007 31.03.2006

Rs. Rs. Rs.

A) Net Asset Value

Growth Plan 14.3136 13.4097 12.5518

Dividend Plan 12.2673 11.4991 10.7645

Daily Dividend Plan 0 10.0419 10.0208

B) Break-up of Gross Income

i) Income other than profit on sale andunrealised appreciation of investments 2.565 2.088 1.085

ii) Income from profit on inter schemesale/transfer of investments NIL NIL

iii) Income from profit on sale of investments to third party 0.003 NIL

iv) Transfer to revenue account from past year’s reserve NIL NIL

v) Unrealised appreciation of investments NIL NIL

————————————

(l) 2.565 2.091 1.085

C) I) Aggregate of expenses, write off,amortisation and charges 0.163 0.156 0.091

ii) Loss on inter scheme sale/transfer of investments NIL NIL

iii) Loss on sale of investments to third party NIL 0.002

iv) Depreciation in the value of investments (net) 0.000 0.001————— —————

(ll) 0.163 0.150 0.094

D) Net Income/ (Loss) (l) - (ll) 2.402 1.935 0.991————— —————

E) Ratio of expenses to average net asset by percentage 0.45% 0.48% 0.53%

F) Ratio of gross income to average net asset by percentage 6.89% 6.93% 5.95%

G) The highest and the lowest repurchase prices ofthe unit during the year are as under:-

Growth Plan Highest 14.3136 13.4097 12.5507

Lowest 13.4128 12.5534 11.8923

Dividend Plan Highest 12.2673 11.4991 10.7636

Lowest 11.5017 10.7659 10.1990

Daily Dividend Highest

Lowest 10.0992 10.0493 10.0214

0 10.0221 10.0001


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H) The highest and the lowest Sale prices of the unit during the year are as under:-


Lowest 13.4128 12.5534 11.8923


Lowest 11.5017 10.7659 10.1990

Daily Dividend Highest 10.0992 10.0493 10.0214

Lowest 0 10.0221 10.0001

2. Details of Assets as at 31st March,2008 are as under:

Name of the Instrument Rating Mkt. Value % To Total(Rs, in Lakh) Assets

Deposit with IDBI Bank 308.27 26.25%

Deposit with CCIL 100.00 8.52%

Inv in MIBOR Linked Paper 300.00 25.54%

Repos 449.22 38.25%

Sub Total 1,157.49 98.56%

Other Assets 16.97 1.44%

Total Assets 1,174.46 100.00%

3. The Management Fees have been calculated on a daily basis @ 0.25% per annum on the dailyaverage net assets.

Daily Average Net Asset Value as at 31st March 2008= Rs. 11,82,83,260

Provision for Management Fees for the quarter ended 31/03/2008 = Rs. 47,665

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

Amount (Rs.) % of Daily Avg. NAV

a) Value of purchases 14,29,01,43,506 4692%

b) Value of sales 14,25,68,03,801 4681%

5. Movement in unit capital is as under :

GROWTH PLAN DIVIDEND PLAN DAILY DIVIDEND TOTAL (Rs. in lakhs)PLAN

No. of units No. of units No. of units No. of units

Balance 31.03. 2007 2,18,69,233.123 43,74,432.526 3,01,776.906 2,65,45,442.555 2654.54

Add :- Subscriptons 9,73,48,354.009 6,533.760 49,75,987.412 10,23,30,875.181 10233.09

Less :- Redemptons 11,10,63,565.298 43,51,466.169 52,77,764.318 12,06,92,795.785 12069.28

Balance 31.03. 2008 81,54,021.834 29,500.117 0 81,83,521.951 818.36

6. From 19th February, 2002 the Fund has commenced repurchase of units of the Scheme at therepurchase price determined on a daily basis. The units so offered for repurchase have been paid intime.

7. Bank of Baroda, the Sponsor, has invested in excess of 5% of the Net Assets of BOB Balance Fund,Baroda Global Fund, BOB Gilt Fund, BOB Growth Fund and BOB Liquid Fund of BOB Mutual Fund.


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8. BOB Asset Management Co. Ltd. has invested in excess of 5% of the Net Assets of BOB BalanceFund, Baroda Global Fund, BOB Diversified Fund, BOB Growth Fund, BOB Income Fund, BOB LiquidFund.

9. The Aggregate investments made by all the Schemes of BOB Mutual Fund in the equity shares ofBank of Baroda amounts to Rs.Nil (P.Y. Rs. Nil) which is within the prescribed limit.

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

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

12. a) The Scheme has not undertaken any underwriting obligations with respect to issue of securitiesof associate companies.

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

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

13. Details of Unclaimed Redemptions and Unclaimed Dividends are as under :

Amount (Rs.) No. of Investors

a) Unclaimed Dividends 0 0

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

Nature of Expenditure Percentage

Management Fees 36.81%

Other Operating Exps 34.11%

Office & Admin Exps 11.19%

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

a. No. of investors : 2

b. Total holdings by such investors as % of the NAV : 81.62%

16. Previous year figures have been reclassified / regrouped wherever necessary to conform with thecurrent year’s presentation.





V. H. Bhatia

M. B. Samant



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BARODA PIONEER BALANCE FUND (Formerly known as BOB Balance Fund)

BOB Balance Fund is an open ended Balance Fund, which aims to generate long-term capital appreciationalong with stability through a well balanced portfolio of equity and debt. The initial offer of the scheme wasopen from 14th August 2003 to 3rd September 2003 and the scheme again opened for on-going sale orrepurchase from 16th September 2003. As on 31.03.2008, the net assets of the scheme was Rs.0.79Crore.

The per unit NAV of the Scheme under the Dividend Plan, and Growth Plan was Rs. 27.12 and Rs.26.84respectively as on 31st March, 2007.


The Board of Trustees,

BOB Mutual Fund,Mumbai.

Dear Sirs,

We have audited the attached Balance Sheet of BOB BALANCE FUND of BOB MUTUAL FUND, as on31st March, 2008 and also the Revenue Account for the year ended on that date annexed thereto. Thesefinancial statements are the responsibility of the Management of the Asset Management Company and theTrustees. 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 state of affairs of BOB BALANCE FUND as on 31stMarch, 2008 and






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BOB BALANCE FUND



LIABILITIES :-

Unit Capital A 29.15 38.50



TOTAL 81.58 85.87

ASSETS :-

Investments D 79.21 83.09

Other Current Assets E 2.37 2.78

TOTAL 81.58 85.87

SIGNIFICANT ACCOUNTING POLICIES F

NOTES ON ACCOUNTS G






V. H. Bhatia

M. B. Samant



16

BOB BALANCE FUND



INCOME :-

Dividend 0.37 0.66

Interest 1.30 1.60



Appreciation in value of Investments 0.00 0.00

TOTAL 25.03 7.57











Custodian Charges 0.03 0.05


Surplus / (Deficit) for the year 20.51 (6.77)

TOTAL 25.03 7.57

Surplus / (Deficit) for the year20.51 (6.77)

(Less) / Add : Equalisation Account (4.21) (0.12)

Add :Surplus/(Deficit) brought forward from the previous year 579.84 586.73



NOTES ON ACCOUNTS G






V. H. Bhatia

M. B. Samant



17

BOB BALANCE FUND



Schedule ‘A’

UNIT CAPITAL

Unit Capital 29.15 38.50

Total 29.15 38.50

No. of units of face value Rs. 10/- each 291,503.28 384,957.52

Schedule ‘B’



Unit Premium Reserve

Opening Balance (533.15) (528.14)

Add: Additions / (Deductions) during the year (13.37) (5.01)

(546.52) (533.15)

Total 49.62 46.69

Schedule ‘C’


Current Liabilities :

Sundry Creditors 0.86 0.67

Others 1.95 0.01

Total 2.81 0.68

Schedule ‘D’

INVESTMENTS

Equity Shares 53.26 61.36


Total 79.21 83.09

Schedule ‘E’




Others 0.98 1.17

Total 2.37 2.78


18



PARTICULARS 31.03.2008 31.03.2007(RS.IN LAKH) (RS.IN LAKH)

a) Net Asset Value

GROWTH PLAN 26.84 22.07





iii) Income from profit on sale of investment to third party 8.010 1.379



(I) 8.581 1.966





(II) 1.554 3.725

d) Net Income (I) - (II) 7.027 (1.759)

SCHEDULE F :

SIGNIFICANT ACCOUNTING POLICIES FORMING PART OF THE ACCOUNTS OF BOB BALANCEFUND FOR THE YEAR ENDED 31ST MARCH, 2008


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


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, if realised.

e) Provision is made for income, which is not realised within 12 months from the date of accrual inaccordance with the SEBI Regulations.

f) Unrealised appreciation/depreciation in the value of investments, if any, is credited/charged to RevenueAccount. However, such appreciation is excluded in the considerations for income distributions.

2. EXPENSES



19

3. INVESTMENTS


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.

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


i. All traded Securities (other than Government securities) are valued at the closing market price onthe Bombay Stock Exchange (BSE) on the last trading day of the financial year.

ii. Where a security is not traded on the BSE, the security is valued at the price quoted at theexchange where it is principally traded. Where a 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 thirty days prior to the valuation date.

iii. All other investments are stated at their fair value as determined by BOB Asset Management Co.Ltd. using the basis as approved by the Trustees in accordance with the SEBI Regulations.

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

a. Where instruments have been bought on ‘Reverse - Repo’ basis, the instrument is valued atthe resale price after deduction of applicable interest upto the date of resale.

b. 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 Investmentsand valued accordingly.


The difference between the face value and the purchase/sale price of the units purchased/sold iscredited or debited, as the case may be, to Unit Premium Reserve Account.


The NAV for the units issued under the various Plans like Growth Plan, Dividend Plan etc. is determinedseparately, wherever applicable. For reporting NAV for Plans, daily income earned of the scheme isapportioned between the Plans in the proportion of the Net Assets of each of the Plans.


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


20

SCHEDULE G :

NOTES FORMING PART OF THE ACCOUNTS OF BOB LIQUID FUND FOR THE YEAR ENDED31ST MARCH, 2008

As on As on As on31.03.2008 31.03.2007 31.03.2006

Rs. Rs. Rs.

2. Perspective historical per unit statistics for the last 3 years:

A) Net Asset Value

Growth Plan 26.8433 22.07 23.80

Dividend Plan 27.1159 22.16 23.86


i) Income other than profit on 0.571 0.587 0.629

sale and unrealised appreciation

of investments

ii) Income from profit on inter scheme

sale/transfer of investments 0.000 0.000 0.000

iii) Income from profit on sale of investments

to third party 8.010 1.379 8.947

iv) Transfer to revenue account from past year’s reserve 0.000 0.000 0.000

v) Unrealised appreciation of investments 0.000 0.000 0.000

—————- ————————————

(l) 8.581 1.966 11.532

C) i) Aggregate of expenses, write off,

amortisation and charges 0.527 0.601

ii) Loss on inter scheme sale/transfer of investments 0.712 0.000 0.000

iii) Loss on sale of investments to third party 0.000 0.000 0.000

iv) Depreciation in the value of investments (net) 0.842 3.198 0.000

————- ————— —————

(ll) 1.554 3.725 0.601

D) Net Income/ (Loss) (l) - (ll) 7.027 (1.759) 10.931

========= ===================



G) The highest and the lowest repurchase pricesof the unit during the year are as under :-Growth Plan Highest 35.5984 25.7126 23.7898

Lowest 21.4258 18.1112 15.4456Dividend Plan Highest 35.7436 25.7838 23.8557

Lowest 21.5133 18.1613 15.4928

H) The highest and the lowest Sale prices of the unitduring the year are as under :-Growth Plan Highest 36.1324 25.3269 24.1466

Lowest 21.7472 17.8395 15.6773Dividend Plan Highest 35.7436 25.3971 24.2135

Lowest 21.8360 17.8889 15.7252


21

3. Details Of Assets as at 31st March 2008 are as under:-

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

Equity & Equity related - Listed

Larsen & Toubro Ltd. 700 21.17 25.95%

Ranbaxy Laboratories Ltd. 1000 4.39 5.38%

BOC India Ltd 3000 4.75 5.82%

Henkel India Ltd 15000 2.89 3.54%

India Cements Ltd.. 1000 1.87 2.29%

RCVL 700 3.56 4.36%

Siemens Ltd. 2370 14.64 17.95%

Total (A) 53.26 65.29%Others

Reverse Repo 25.95 31.81%

Cash & equivalent 1.38 1.69%

Other Receivables(Net) 0.99 1.21%

Total (B) 28.32 34.71%

Grand Total (A+B) 81.58 100.00%

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

Equity Shares:

Industry %age Industry %age

Diversified 26.88% Industrial Capital Goods 18.57%

Gas 6.03% Pharmaceuticals 5.57%


Daily Average Net Asset Value as at 31st March 2008 = Rs. 80,84,872

Provision for Management Fees for the quarter ended 31/03/2008 = Rs.20,944.64

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

Amount (Rs.) % of Avg. NAV

a) Value of purchases 58,43,40,715 6103%

b) Value of sales 58,40,50,767 6100%

6. Movement in unit capital is as under:



Balance as on 31st March, 2007 1,18,627.172 2,66,330.351 3,84,957.523 38.50

Add :- Subscriptions 4,386.480 5,252.761 9,639.241 0.96

Less :- Redemptions 23,949.619 79,143.862 1,03,093.481 10.31

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

7. From 15th September 2003 the Fund has commenced repurchase of units of the Scheme at therepurchase price determined on a daily basis. The units so offered for repurchase have been paid intime.


22



10. a) In accordance with the Fund’s investment strategy of investing in sound investments with goodgrowth/income potential, the Fund has invested through the BOB Balance Fund Scheme in equityshares of Bank of Baroda to the extent of Rs.Nil (P.Y. Rs.Nil).

b) The Aggregate investments made by all the Schemes of BOB Mutual Fund in the equity shares ofBank of Baroda amounts to Rs. Nil (P.Y. Rs.Nil)





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

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


Management Fees 47.83%

Registrar Charges 28.50%

Office & Admin Exps 19.81%

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








V. H. Bhatia

M. B. Samant



23


BARODA PIONEER INCOME FUND (Formerly known as BOB Income Fund)

Baroda Pioneer Income Fund is an open-ended scheme targeted for generating regular income by investingin a portfolio of good quality fixed income securities. The initial offer of the scheme was open from 14.02.2002to 5.03.2002 and the scheme was again opened for on-going sales/ repurchase from 25.03.2002. As on31.03.2008, the net assets of the scheme was Rs.0.44 Crore.

The per unit NAV of the Scheme under the Dividend Plan and Growth Plan was Rs. 13.28 and Rs.13.28respectively as on 31st March 2008.



BOB Mutual Fund,

Mumbai.

Dear Sirs,

We have audited the attached Balance Sheet of BOB INCOME FUND of BOB MUTUAL FUND, as at 31stMarch, 2008 and also the Revenue Account for the year ended on that date annexed thereto. Thesefinancial statements are the responsibility of the Management of the Asset Management Company and theTrustees. 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 state of affairs of BOB INCOME FUND as at 31st March,2008 and






24

BOB INCOME FUND



LIABILITIES :-




TOTAL 44.84 45.08

ASSETS :-



TOTAL 44.84 45.08


NOTES ON ACCOUNTS G






V. H. Bhatia

M. B. Samant



25

BOB INCOME FUND



INCOME :-

Interest 2.85 2.65

TOTAL 2.85 2.65





Office and Administrative Expenses (0.01) 0.05





Other Operating Expenses (0.00) 0.04



TOTAL 2.85 2.65


(Less) / Add : Equalisation Account (0.06) (0.10)




NOTES ON ACCOUNTS G






V. H. Bhatia

M. B. Samant



26

BOB INCOME FUND



Schedule ‘A’

UNIT CAPITAL


Total 33.23 35.26


Schedule ‘B’






(53.74) (53.20)

Total 10.92 9.43

Schedule ‘C’



Others 0.10 0.01

Total 0.69 0.39

Schedule ‘D’

INVESTMENTS

Reverse Repo 43.28 40.41

Total 43.28 40.41

Schedule ‘E’




Others 1.28 4.18

Total 1.56 4.67


27




a) Net Asset Value

GROWTH PLAN 13.2859 12.6790




ii) Income from profit on interscheme sale/transfer

of investments 0.000 0.000




(I) 0.859 0.752





(II) 0.232 0.230

d) Net Income (I) - (II) 0.627 0.523

SCHEDULE F :

SIGNIFICANT ACCOUNTING POLICIES FORMING PART OF THE ACCOUNTS OF BOB INCOME FUNDFOR THE YEAR ENDED 31ST MARCH, 2008


a) In respect of securities including those purchased on Reverse - Repo basis, interest income is accountedfor on accrual basis.




e) Unrealised appreciation/depreciation in the value of investments, if any, is credited/charged to RevenueAccount. However, such appreciation is excluded in the considerations for income distributions.

2. EXPENSES


3. INVESTMENTS



ii. 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.


a. 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.

b. 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.


28

c. Government Securities are valued at yield to maturity rates announced by CRISIL.COM.

d. All other investments are stated at their fair value as determined by BOB Asset Management Co.Ltd. using the basis as approved by the Trustees in accordance with the SEBI Regulations.

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

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

g. Investments which have provided no returns in the form of dividend or interest for a period specifiedin the guidelines issued by SEBI, are regarded as Non Performing Investments and valuedaccordingly.






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

SCHEDULE G :

NOTES FORMING PART OF THE ACCOUNTS OF BOB INCOME FUND FOR THE YEAR ENDED 31STMARCH, 2008


As on As on As on31.03.2008 31.03.2007 31.03.2006

Rs. Rs. Rs.

A) Net Asset Value

Growth Plan 13.2859 12.6790 12.1879

Dividend Plan 13.2860 12.6791 12.1879


i) Income other than profit on sale and unrealised

appreciation of investments 0.859 0.752 0.757

ii) Income from profit on inter scheme

sale/transfer of investments 0 NIL NIL

iii) Income from profit on sale of investments to third party 0 Nil Nil

iv) Transfer to revenue account from past year’s reserve 0 NIL NIL

v) Unrealised appreciation of investments 0 NIL NIL

—————- —————-

(l) 0.859 0.752 0.757

C) i) Aggregate of expenses, write off, amortisation and charges 0.232 0.230 0.229

ii) Loss on inter scheme sale/transfer of investments 0 NIL NIL

iii) Loss on sale of investments to third party 0 NIL NIL

iv) Depreciation in the value of investments (net) 0 NIL 0.107

0 —————- —————-

(ll) 0.232 0.230 0.336

D) Net Income/(Loss) (l) - (ll) 0.627 0.522 0.421

========= ========= =========


29



G) The highest and the lowest repurchase prices of theunit during the year are as under:-


Lowest 12.6268 12.6156 11.3742


Lowest 12.6268 12.6156 11.3745



Lowest 12.6903 12.1908 11.4314


Lowest 12.6903 12.1908 11.4317

5. Details of Assets as at 31st March 2008 are as under:

Name of the instrument Rating Market Value(Rs. In Lakh) % to NAV

Reverse Repo 43.28 96.50%

Other Receivables(Net) 1.57 3.50%

Total 44.85 100.00


Daily Average Net Asset Value as at 31.3.2008 = Rs. 44,92,460

Provision for Management Fees for the quarter ended 31/03/2008 = Rs.8,235.19



a) Value of purchases 1,04,89,00,767 23495%

b) Value of sales 1,04,88,49,424 23494%


GROWTH PLAN DIVIDEND PLAN DAILY DIVIDEND TOTAL (Rs. in lakhs)

PLAN


Balance as on 2,55,664.827 96,979.757 3,52,644.584 35.26

31st March, 2007

Add :-Sales 385.745 382.512 768.257 0.08

Less :- Redemptions 18,858.827 2,282.512 21,141.339 2.11

Balance as on 2,37,191.745 95,079.757 3,32,271.502 33.23

31st March, 2008

6. From 25th March, 2002 the Fund has commenced repurchase of units of the Scheme at the repurchaseprice determined on a daily basis.




30

9. The Aggregate investments made by all the Schemes of BOB Mutual Fund in the equity shares ofBank of Baroda amounts to Rs. Nil (P.Y. Rs. Nil) which is within the prescribed limit.








Management fees 48.68%

Registrar Charges 56.58%









V. H. Bhatia

M. B. Samant



31


BARODA PIONEER GILT FUND (Formerly known as BOB Gilt Fund)

Baroda Pioneer Gilt Fund is an open ended Gilt scheme targeted for generating income by investing in aportfolio of government securities. The initial offer of the scheme was open from 14.02.2002 to 5.03.2002and the scheme was again opened for on-going sales/repurchase from 25.03.2002. As on 31.03.2008 thenet assets of the scheme was Rs 0.07 Crore.

The per unit NAV of the Scheme under the Dividend Plan and Growth Plan was Rs. 11.55 and Rs. 11.55respectively as on 31st March 2008.



BOB Mutual Fund,

Mumbai.

Dear Sirs,

We have audited the attached Balance Sheet of BOB GILT FUND of BOB MUTUAL FUND, as at 31stMarch,2008 and also the Revenue Account for the year ended on 31st March 2008 annexed thereto. Thesefinancial statements are the responsibility of the Management of the Asset Management Company and theTrustees. 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 state of affairs of BOB GILT FUND as at 31st March,2008 and






32

BOB GILT FUND



LIABILITIES :-




TOTAL 7.92 55.59

ASSETS :-



TOTAL 7.92 55.59


NOTES ON ACCOUNTS G






V. H. Bhatia

M. B. Samant



33

BOB GILT FUND



INCOME :-

Interest 0.91 41.48


TOTAL 0.91 109.47



Loss on Sale of Investments (Net) 0.00 66.92





Commission to Agents 0.01 (0.48)






TOTAL 0.91 109.47


Add / Less : Equalisation Account (0.40) (27.57)








V. H. Bhatia

M. B. Samant



34

BOB GILT FUND



Schedule ‘A’

UNIT CAPITAL


Total 5.60 47.70

No. of units of face value Rs. 10/- each 55959.63 476953.05

Schedule ‘B’






(121.00) (115.13)

Total 1.01 6.60

Schedule ‘C’



Others 0.00 0.02

Total 1.31 1.29

Schedule ‘D’

INVESTMENTS


Total 5.92 54.97

Schedule ‘E’




Advances 1.73 0.07

Total 2.00 0.62


35




a) Net Asset Value

GROWTH PLAN 11.7619 11.3755








(I) 1.629 22.952





(II) 0.401 15.513

d) Net Income (I) - (II) 1.228 7.439

SCHEDULE F :

SIGNIFICANT ACCOUNTING POLICIES FORMING PART OF THE ACCOUNTS OF BOB GILT FUNDFOR THE YEAR ENDED 31ST MARCH, 2008


a) In respect of securities including those purchased on Reverse - Repo basis, interest income isaccounted for on accrual basis.

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



e) Unrealised appreciation/depreciation in the value of investments, if any, is credited/charged toRevenue Account. However, such appreciation is excluded in the considerations for incomedistributions.

2. EXPENSES



36

3. INVESTMENTS


i. Transactions for purchases/sales of investments are accounted as investments on tradedates

ii. In respect of purchase of interest bearing investments accrued interest receivable is debitedto the interest receivable account and not added to the cost of investment.


i. All traded Debt Securities (other than Government Securities) are valued at the closingmarket price, on the principal stock exchange on the last trading day of the financial year.

ii. Where a Debt Security (other than Government Security) is not traded on the last tradingday of the financial year, the value at which it is traded on the earliest previous day prior tothe valuation date is used, provided such date is not more than fifteen days.


iv. All other investments are stated at their fair value as determined by BOB Asset ManagementCo. Ltd. using the basis as approved by the Trustees in accordance with the SEBI Regulations.


vi. Where instruments have been bought on ‘REPO’ basis, the instrument is valued at the resaleprice after deduction of applicable interest upto the date of resale.

vii. 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 Investmentsand valued accordingly.








37

SCHEDULE G :

NOTES FORMING PART OF THE ACCOUNTS OF BOB GILT FUND FOR FOR THE YEAR ENDED31ST MARCH, 2008


As on As on As on31.03.2008 31.03.2007 31.03.2006

Rs. Rs. Rs.

A) Net Asset Value

Growth Plan 11.7619 11.3755 10.7132

Dividend Plan 11.7623 11.3760 10.7143


i) Income other than profit on sale andunrealised appreciation of investments 1.629 8.696 0.945

ii) Income from profit on inter schemesale/transfer of investments NIL NIL

iii) Income from profit on sale of NIL NILinvestments to third party

iv) Transfer to revenue account from NIL NILpast year’s reserve

v) Unrealised appreciation of investments 14.256 NIL—————— ——————

(l) 1.629 22.952 0.945

C) I) Aggregate of expenses, write off,amortisation and charges 0.401 1.483 0.139


iii) Loss on sale of investments to third party 14.030 Nil

iv) Depreciation in the value of investments (net) NIL 0.432————— —————

(ll) 0.401 15.513 0.571

D) Net Income/(Loss) (l) - (ll) 1.228 7.439 0.374========== ==========



G) The highest and lowest repurchase prices of the unit during the year are as under:-


Lowest 11.3380 10.6219 10.2684


Lowest 11.3385 10.6231 10.2669


38



Lowest 11.3950 10.6753 10.3200


Lowest 11.3955 10.6765 10.3215

7. Details of Assets as at 31st March 2008 are as under :


Reverse Repo SOV 5.92 74.75

Others 2.00 25.25

Total Assets 7.92 100.00


Daily Average Net Asset Value as at 31st March 2008 = Rs.6,83,570




a.) Value of purchases 40,90,88,661 24368%

b.) Value of sales 41,40,89,465 24665%




Balance as on 31.03.2007 4,41,183.736 35,769.311 4,76,953.047 47.70

Add :- Subscriptions 0 350.579 350.579 0.03

Less :- Redemptions 4,18,645.186 2,698.808 4,21,343.994 42.13

Balance as on 31.03.2008 22,538.550 33,421.082 55,959.632 5.60

7. From 25th March, 2002 the Fund has commenced repurchase of units of the Scheme at the repurchaseprice determined on a daily basis.

8. Bank of Baroda, the Sponsor, has invested in excess of 5% of the Net Assets of BOB Liquid Fund,BOB Growth Fund, BOB Balance Fund, BOB Gilt Fund and Baroda Global Fund of BOB Mutual Fund.

9. BOB Asset Management Co. Ltd. has invested in excess of 5% of the Net Assets of BOB BalanceFund, Baroda Global, BOB Diversified, BOB Growth Fund, BOB Income Fund, BOB Liquid Fund.

10. The Aggregate investments made by all the Schemes of BOB Mutual Fund in the equity shares ofBank of Baroda amounts to Rs.Nil (P.Y. Rs. Nil) which is within the prescribed limit.




39






Management Fees 73.52 %


a) No. of investors : 0

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






V. H. Bhatia

M. B. Samant



40


BARODA PIONEER CHILDREN FUND (Formerly known as BOB Children Fund)

Baroda Pioneer Children Fund is an open-ended scheme, targeted to generate capital appreciation bycreating a portfolio that is invested in equity and equity related securities and debt and money marketinstruments. The initial offer of the Scheme was open from July 28, 2004 to August 26, 2004 and theScheme was again opened for on-going sale or repurchase from September 9, 2004. As on 31.03.2008the net assets of the Schemes was Rs. 0.03 Crore.

The per unit NAV of the Baroda Pioneer Children Fund - Study Plan Scheme was Rs. 9.66 and BarodaPioneer Children Fund - Gift Plan Scheme was Rs. 10.56 as on 31st March 2008.



BOB Mutual Fund,

Mumbai.

Dear Sirs,

We have audited the attached Balance Sheet of BOB CHILDREN FUND-STUDY PLAN UNDER BOBCHILDREN FUND of BOB MUTUAL FUND, as at 31st March, 2008 and also the Revenue Account for theyear ended 31st March, 2008 annexed thereto. These financial statements are the responsibility of theManagement of Asset Management Company and the Trustees. Our responsibility is to express an opinionon these financial statements based on our audit.








6. In our opinion and to the best of our information and according to the explanations given to us, theaccounts read with the Statement on Significant Accounting Policies and Notes on Accounts attachedthereto give a true and fair view in conformity with the accounting principles generally accepted inIndia :

i) in the case of the Balance Sheet of the state of affairs of BOB CHILDREN FUND-STUDY PLANUNDER BOB CHILDREN FUND as at 31st March, 2008 and

ii) in the case of the Revenue Account of the zero surplus of the Scheme for the year ended on thatdate.





41

BOB CHILDREN FUND - STUDY PLAN



LIABILITIES :-


Reserves & Surplus B (0.00) (0.02)


TOTAL 1.31 1.22

ASSETS :-



Deferred Revenue Expenditure 0.23 0.23

TOTAL 1.31 1.22


NOTES ON ACCOUNTS G






V. H. Bhatia

M. B. Samant



42




INCOME :-

Interest 0.03 0.04

TOTAL 0.03 0.04



Office and Administrative Expenses (0.01) 0.01

Deferred Revenue Expenditure Written Off 0.03 0.03

Surplus / (Deficit) for the year (0.00) (0.02)

TOTAL 0.03 0.04

Surplus / (Deficit) for the Year(0.00) (0.02)

(Less) / Add : Equalisation Account 0.01 (0.00)

Add :Surplus/(Deficit) brought forward from the previous year (0.01) 0.01

Surplus/(Deficit) carried to Balance Sheet 0.01 (0.01)


NOTES ON ACCOUNTS G






V. H. Bhatia

M. B. Samant



43




Schedule ‘A’

UNIT CAPITAL


Total 1.15 1.20


Schedule ‘B’


Surplus / (Deficit) as per Revenue Account 0.01 (0.01)


Opening Balance (0.01)

Add: Additions / (Deductions) during the year 0.00

(0.01) (0.01)

Total (0.00) (0.02)

Schedule ‘C’


Current Liabilities

Sundry creditors 0.16 0.04

Total 0.16 0.04

Schedule ‘D’

INVESTMENTS


Total 0.53 0.35

Schedule ‘E’



Others 0.50 0.08

Total 0.55 0.64


44




a) Net Asset Value

GROWTH PLAN 9.6662 9.8171








(I) 0.261 0.336





(II) 0.347 0.616

d) Net Income/(Loss) (I) - (II) (0.086) (0.280)

SCHEDULE F :

SIGNIFICANT ACCOUNTING POLICIES FORMING PART OF THE ACCOUNTS OF BOB CHILDRENFUND-STUDY PLAN UNDER BOB CHILDREN FUND FOR THE YEAR ENDED 31ST MARCH, 2008


a) Dividend on quoted shares is 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 andis recognised on the trade date.

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, if realised.

e) Provision is made for income, which is not realised within 12 months from the date of accrual inaccordance with SEBI Regulations.

f) Unrealised appreciation/depreciation in the value of investments, if any, is credited/charged toRevenue Account. However, such appreciation is excluded in the considerations for incomedistributions.

2. EXPENSES



45

3. INVESTMENTS


i. Transactions for purchase/sale of investments are accounted for on trade dates at costincluding brokerage, stamp charges and any customary charge included in the broker’sbought note.

ii. Bonus shares to which the scheme becomes entitled are recognised only when the originalshares on which the bonus entitlement accrues are traded on the stock exchange on an ex-bonus basis. Similarly rights entitlements are recognised only when the original shares onwhich the right 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 debitedto the Interest Receivable account and not added to the cost of investment.


i. All traded Securities (other than Government securities) are valued at the closing marketprice on the Bombay Stock Exchange (BSE) on the last trading day of the financial year.

ii. Where a security is not traded on the BSE, the security is valued at the price quoted at theexchange where it is principally traded. Where a security is not traded on the last trading dayof the financial year, the value at which it is traded on the earliest previous day prior to thevaluation date is used, provided such date is not more than thirty days prior to the valuationdate.

iii. All other investments are stated at their fair value as determined by BOB Asset ManagementCo. Ltd. using the basis as approved by the Trustees in accordance with the SEBI Regulations.

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

a. Where instruments have been bought on ‘Reverse - Repo’ basis, the instrument is valuedat the resale price after deduction of applicable interest upto the date of resale.

b. Investments which have provided no returns in the form of dividend or interest for aperiod specified in the guidelines issued by SEBI, are regarded as Non PerformingInvestments and valued accordingly.


The difference between the face value and the purchase/sale price of the units purchased/sold iscredited or debited, as the case may be, to Unit Premium Reserve Account.


The NAV for the units issued under the various Plans like Growth Plan, Dividend Plan etc. is determinedseparately, wherever applicable. For reporting NAV for Plans, daily income earned of the scheme isapportioned between the Plans in the proportion of the Net Assets of each of the Plans.




46

SCHEDULE G :

NOTES FORMING PART OF THE ACCOUNTS OF BOB CHILDREN FUND – STUDY PLAN UNDERBOB CHILDREN FUND FOR THE YEAR ENDED 31ST MARCH, 2008


As on As on As on31.03.2008 31.03.2007 31.03.2006

Rs. Rs. Rs.

A) Net Asset Value Growth Plan 9.6662 9.8171 9.9663


i) Income other than profit on sale andunrealized appreciation of investments 0.261 0.336 0.438

ii) Income from profit on inter schemesale/transfer of investments 0.000 0.000 0.000

iii) Income from profit on sale of investments to third party 0.000 0.000 0.000

iv) Transfer to revenue account from past year’s reserve 0.000 0.000 0.000

v) Unrealised appreciation of investments 0.000 0.000 0.000—————- —————-

(l) 0.261 0.336 0.438

C) i) Aggregate of expenses, write off,amortisation and charges 0.347 0.501 0.458

ii) Loss on inter scheme sale/transfer of investments 0.000 0.000 0.000

iii) Loss on sale of investments to third party 0.000 0.000 0.000

iv) Depreciation in the value of investments (net) 0.000 0.000 0.000—————- —————-

(ll) 0.347 0.501 0.458

D) Net Income/(Loss) (l) - (ll) (0.086) (0.165) (0.020)========== ====================

E) Ratio of expenses to average net asset 2.50% 2.21% 1.53%by percentage

F) Ratio of gross income to average net 2.51% 2.94% 3.57%asset by percentage

G) The highest and the lowest repurchase pricesof the unit during the year are as under :-

Highest 10.5386 10.0857 10.0776

Lowest 9.5695 9.8171 9.8641

H) The highest and the lowest Sale prices of theunit during the year are as under :-

Highest 10.6450 10.0857 10.1794

Lowest 9.6662 9.8171 9.9637


47

2. Details of Assets as at 31st March 2008 are as under:


Reverse Repo SOV 0.53 40.46

Other Receivable (Net) 0.78 59.54


13. The Management Fees have been calculated on a daily basis @ 1% per annum on the daily averagenet assets.


Provision for Management Fees for the quarter ended 31/03/2008= Rs.295


Amount (Rs.) % of daily Avg. NAV


b) Value of sales 1,12,91,225 9462%


No. of units (Rs. in lakh)

Balance as on 31st March, 2007 11,984..942 1.20

Add :-Sales 1,019.940 0.10

Less :- Redemptions 1,498.271 0.15

Balance as on 31st March, 2008 11,506.611 1.15

6. From 9th September 2004 the Fund has commenced repurchase of units of the Scheme at therepurchase price determined on a daily basis.

7. Bank of Baroda, the Sponsor, has invested in excess of 5% of the Net Assets of BOB Liquid Fund,BOB Growth Fund, BOB Balance Fund, BOB Gilt and Baroda Global Fund of BOB Mutual Fund.




11. The Aggregate investments made by all the Schemes of BOB Mutual Fund in the equity shares ofBank of Baroda amounts to Rs.Nil (P.Y. Rs.Nil) which is within the prescribed limit.





48



Management fees 25%

Deferred Revenue Exp w/o 75%


a. No. of investors : Nil

b. Total holdings by such investors as % of the NAV : Nil

15. Previous year figures have been reclassified / regrouped wherever necessary to conform the currentyear’s presentation





V. H. Bhatia

M. B. Samant



49


BARODA PIONEER MIP FUND* [Formerly known as BOB Monthly Income Fund (MIP)]

Baroda Pioneer Monthly Income Plan (MIP)* Fund is an open-ended scheme, targeted to generate monthlyincome by investing in debt, money market instruments and also to generate long tem capital appreciationby investing a portion in equity and equity related instruments. The initial offer of the Scheme was openfrom July 28, 2004 to August 26,2004 and the Scheme was again opened for on-going sale or repurchasefrom September 9, 2004. As on 31.03.2008 the net assets of the Schemes was 0.05 Crore.

The per unit NAV of the Scheme under the Dividend Plan – monthly pay out, Dividend Plan- Quarterly Payout and Growth Plan was Rs. 12.0263 Rs. 12.0218 and Rs. 12.0213 respectively as on 31st March 2008.


* An open-ended income scheme. Income is not assured, and is subject to the availability of distributablesurplus.


BOB Mutual Fund,

Mumbai.

Dear Sirs,

We have audited the attached Balance Sheet of BOB MONTHLY INCOME PLAN (MIP) FUND of BOBMUTUAL FUND, as at 31st March, 2008 and also the Revenue Account for the year ended on that date,annexed thereto. These financial statements are the responsibility of the Management of Asset ManagementCompany and the Trustees. Our responsibility is to express an opinion on these financial statementsbased on our audit.


Based on the above, we report that:







a) in the case of the Balance Sheet of the state of affairs of BOB MONTHLY INCOME PLAN (MIP)FUND as on 31st March, 2008 and






50

BOB MONTHLY INCOME PLAN (MIP) FUND



LIABILITIES :-




TOTAL 6.05 6.26

ASSETS :-



TOTAL 6.05 6.26


NOTES ON ACCOUNTS G






V. H. Bhatia

M. B. Samant



51




INCOME :-

Interest 0.22 2.68




TOTAL 0.22 12.40









Surplus / (Deficit) for the year carriedto Balance Sheet 0.12 1.77

TOTAL 0.22 12.40


Add / (Less) : Equalisation Account 0.96 (0.86)

Add :Surplus/(Deficit) brought forward fromthe previous year 46.82 45.91



NOTES ON ACCOUNTS G






V. H. Bhatia

M. B. Samant



52




Schedule ‘A’

UNIT CAPITAL


Total 4.48 5.08


Schedule ‘B’





Add: Additions/(Deductions) during the year (1.08) (30.37)

(46.97) (45.89)

Total 0.91 0.93

Schedule ‘C’



Others 0.02 0.00

Total 0.66 0.25

Schedule ‘D’

INVESTMENTS


Total 3.99 5.06

Schedule ‘E’




Others 1.81 0.94

Total 2.06 1.20


53




a) Net Asset Value

GROWTH PLAN 12.0213 11.8096

MONTHLY DIVIDEND 12.0263 11.8146

QTRLY DIVIDEND PLAN 12.0218 11.8101



ii) Income from profit on interscheme sale/transferof investments 0.000 NIL




(I) 0.489 24.394





(II) 0.252 20.917

d) Net Income (I) - (II) 0.237 3.477


54

SCHEDULE F :

SIGNIFICANT ACCOUNTING POLICIES FORMING PART OF THE ACCOUNTS OF BOB MONTHLYINCOME PLAN (MIP) FUND FOR THE YEAR ENDED 31ST MARCH, 2008


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

b) In respect of securities including those purchased on Reverse - Repo basis, interest income is accountedfor on accrual basis.

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

d) Other income of miscellaneous nature is accounted for if realised.

e) Provision is made for income, which is not realised within 12 months from the date of accrual.

f) Unrealised appreciation/depreciation in the value of investments, if any, is credited/charged to RevenueAccount. However, such appreciation is excluded in the considerations for income distributions.

2. EXPENSES


3. INVESTMENTS



ii. In respect of purchase of interest bearing investments accrued interest receivable is debited to theinterest receivable account and not added to the cost of investment.


i. All traded Securities are valued at the closing market price on the Bombay Stock Exchange (BSE) onthe last trading day of the financial year.

ii. Where a security is not traded on the BSE, the security is valued at the price quoted at the exchangewhere it’s principally traded. Where a security is not traded on the last trading day of the financial year,the value at which it is traded on the earliest previous day prior to the valuation date is used, providedsuch date is not more than thirty days.


iv. All other investments are stated at their fair value as determined by BOB Asset Management Co. Ltd.using the basis as approved by the Trustees in accordance with the SEBI Regulations.


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

vii. Investments which have provided no returns in the form of dividend or interest for a period specified inthe guidelines issued by SEBI, are regarded as Non Performing Investments and valued accordingly.








55

SCHEDULE G :

NOTES FORMING PART OF THE ACCOUNTS OF BOB MONTHLY INCOME PLAN (MIP) FUND FORTHE YEAR ENDED 31ST MARCH, 2008


As on As on As on31.03.2008 31.03.2007 31.03.2006

Rs. Rs. Rs.

A) Net Asset Value

Growth Plan 12.0213 11.8096 11.3242

Monthly Dividend Plan 12.0263 11.8146 11.3249

Quarterly Dividend Plan 12.0218 11.8101 11.3248


i) Income other than profit on sale and unrealised appreciation of investments 0.489 5.278 0.563

ii) Income from profit on inter schemesale/transfer of investments NIL NIL NIL

iii) Income from profit on sale of investments to third party NIL NIL 19.116

iv) Transfer to revenue account from past year’s reserve NIL NIL NIL

v) Unrealised appreciation of investments NIL NIL 0.240—————— —————— ——————

(l) 0.489 24.394 0.803

C) i) Aggregate of expenses, write off, 0.252 0.938 0.168amortisation and charges


iii) Loss on sale of investments to third party NIL NIL

iv) Depreciation in the value of investments (net) 19.979 NIL—————— —————— ——————

(ll) 0.252 20.917 0.168

D) Net Income/ (Loss) (l) - (ll) 0.237 3.477 0.632



G) The highest and the lowest repurchase prices of theunit during the year are as under :-

Growth Highest 12.5347 11.8096 11.2655

Lowest 11.8198 11.2550 10.3501

Monthly Dividend Plan Highest 12.5399 11.7555 11.2661

Lowest 11.8247 11.1994 10.3507

Quarterly Dividend Plan Highest 12.5352 11.8203 11.7510

Lowest 11.1993 11.2660 10.3506


56

H) The highest and the lowest Sale prices of the unit for the year are as under :-


Lowest 11.8198 11.2550 10.4021

Monthly Dividend Plan Highest 12.5399 11.8146 11.3227

Lowest 11.8247 11.2557 10.4027

Quarterly Dividend Plan Highest 12.5352 11.8101 11.3226

Lowest 11.8203 11.2556 10.4026

2. Details of Assets as at 31st March,2008 are as under:


Reverse Repo Sov 3.99 65.95

Other receivable 2.06 34.05








b) Value of sales 9,98,13,703 17499%

5. Movement in unit capital is as under :


Balance as on 31.03.2007 22,051.403 23,300.000 5,497.958 50,849.361 5.08

Add: Subscription 0 0 0 0 0.00

Less: Redemption 5,000.210 1,000.000 0 6,000.210 0.60

Balance as on 31.03.2008 17,051.193 22,300.000 5,497.958 44,849.151 4.48

6. From 9th September 2004 the Fund has commenced repurchase of units of the Scheme at therepurchase price determined on a daily basis. The units so offered for repurchase have been paid intime.

7. Bank of Baroda, the Sponsor, has invested in excess of 5% of the Net Assets of BOB Balance Fund,BOB Gilt Fund, Baroda Global Fund, BOB Growth Fund and BOB Liquid Fund of BOB Mutual Fund.



10. The Aggregate investments made by all the Schemes of BOB Mutual Fund in the equity shares ofBank of Baroda amounts to Rs.Nil (P.Y. Rs.Nil) which is within the prescribed limit.


57





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


Management Fees 80%

Registrar charges 32%

Office & Admin Exps 20%



b. Total holdings by such investors as % of the NAV : Nil %

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





V. H. Bhatia

M. B. Samant



58

Investor Series Centres :of (Karvy Computershare Pvt. Ltd.)

AHMEDABAD : 201-203, Shaili Building, Opp. Madhusudhan House, Near Navrangpura Tel.

Exchange, Off C. G. Road, Ahmedabad - 380 006, Ph: 079-6420422/6400527/528 079-6402967

(D), Fax : 079-6565551 • BANGALORE : T.K.N. complex, No. 51/2, Vanivilas Road, Opp. National

College, Basavanagudi, Bangalore - 560004 Phone: 080-6621184/92, 080-6525024 (D), 080-

6763483(r), Fax : 080-6621169. • BARODA/VADODARA : Sharat Aprtment, Ground Floor, Opp.

Hotel Rama Inn, Near Hotel Surya, Sayajigunj, Baroda - 390 005 Ph: 0265-2361514/2225168-

69, 0265-2361514/ 364168/364169, Fax : 0265-363207 • CHENNAI : Flat 2-B First Floor,

Wellington Estate, No.24, Ethiraj Salai, Commander-in-Chief Road, Chennai-600 105. Ph: 044

52028512, 044 52028513 Fax No: 044 52028512 • COCHIN/KOCHI - G-39, Panampally Nagar,

Cochin - 682 036 Ph: 0484-2316406/2310884/2322152 • COIMBATORE SNV Chambers, 482/

483, Ponne Street, Opp. Power House, Cross Cut Road, Coimbatore-641012 Ph: 0422-2237501/

2/3/5/6 • HYDERABAD : 21, Road No. 4, Street No.1, Banjara Hills, Hyderabad - 500 034 Ph:

040-23312454-23320751/2752. • JAIPUR : 108-110, First Floor, Anukampa Mansion II, Opp

Raymond Showroom, MI Road, Jaipur-302 001 Ph: 0141-2363321/2375039, 0141-2375099. •KOLKATA : 49, Jatindas Road, Calcutta - 700 029 Ph: 033-24635432 (D), 033-24647231/

24634787/24644891. • LUCKNOW : 94, Mahatma Gandhi Marg, Opp. Governor House,

Hazratganj, Lucknow Ph: 0522-2236828(D), 2236819. • MUMBAI : 16-22, Bake House, Ground

Floor, Maharashtra Chamber of Commerce Lane Opp. MSC Bank, Fort, Mumbai - 400 023, Ph:

022-56341967(D)/56381746-50, Fax : 022-56341966 • NEW DELHI : 105-108, Arunachal Building

19, Barakhamba Road, Connuaght Place, New Delhi - 110001. Ph: 011-23737194(D)/23730824/

842 / 3324401, Fax : 011-3730743/3324621 • PUNE : 202, Mahadkar Chambers,Opp. Karishma

Heights,Karve Road,Pune-411029 Ph. No. : 25456890/25456870 • SURAT: M/7, Empire State

Building, Ring Road, Near Udhana Darwaja, Surat - 395 002. Ph: 0261 2357356/2369634.


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