OFFER DOCUMENT

Offer open for on-going purchase and sale
OFFER DOCUMENT
Prudential ICICI Balanced Fund
An Open Ended Balanced Fund
from
Prudential ICICI Mutual Fund
Issue of Units of Rs.10 per unit
at NAV based prices
on an on-going basis
www.pruicici.com
Sponsors:
Prudential plc (formerly known as Prudential Corporation plc) (through its wholly owned subsidiary, Prudential Corporation
Holdings Limited): Laurence Pountney Hill, London EC4R DHH, United Kingdom
ICICI Bank Limited: Registered Office: Landmark, Race Course Circle, Vadodara 390 007, India
Investment Manager:
Prudential ICICI Asset Management Company Limited
Regd. Office: 206 Ashoka Estate, 2nd Floor, Barakhamba Road, New Delhi – 110 001
Corp. Office: Contractor Building, 3rd Floor, 41, R. Kamani Marg, Ballard Estate, Mumbai 400 038
Trustee:
Prudential ICICI Trust Limited
Registered Office: 206 Ashoka Estate, 2nd Floor, Barakhamba Road, New Delhi – 110 001
The particulars of Prudential ICICI Balanced Fund, the mutual fund Scheme offered under this Offer Document, has
been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 as
amended till date, and filed with the Securities and Exchange Board of India, and the Units being offered for public
subscription have not been approved or disapproved by the Securities and Exchange Board of India nor has the
Securities and Exchange Board of India certified the accuracy or adequacy of the Offer Document.
This Offer Document contains information necessary for an investor to make an informed investment decision in the
Scheme described herein. Investors should carefully read the Offer Document prior to making an investment
decision and retain the Offer Document for future reference. Investors may note that this Offer Document remains
effective until a material change occurs. Material changes shall be filed with SEBI and circulated to all Unitholders
or may be publicly notified by advertisements in the newspapers subject to the applicable regulations.

Prudential ICICI Mutual Fund
IMPORTANT NOTICE
Investing in mutual fund schemes involves certain risks and considerations associated generally with making investments in
securities. The value of the Scheme’s investments may be affected generally by factors affecting capital markets, such as price and
volume, volatility in capital markets interest rates, currency exchange rates, changes in regulatory and administrative policies of
the Government or any other appropriate authority (including tax laws) or other political and economic developments.
Consequently, there can be no assurance that the Scheme offered in this Offer Document would achieve the stated objectives.
The NAV of the Units of the Scheme may fluctuate and can go up or down. Past performance of the schemes managed by the
Sponsors or their affiliates or the Asset Management Company is not indicative of the future performance of the Scheme nor will
the performance of the Scheme, following the commencement of the operations, be indicative of the Scheme’s future performance.
Prospective investors are advised to review this Offer Document carefully and in its entirety and consult their legal, tax and
financial advisors to determine possible legal, tax and financial or any other consequences of subscribing to, purchasing or
holding Units under the Scheme, before making an application to purchase or hold the Units.
The Prudential ICICI Mutual Fund (the Fund) and the Prudential ICICI Asset Management Company Limited (the AMC), have not
authorized any person to give any information or make any representations, either oral or written, not stated in this Offer
Document in connection with issue of Units under the Scheme. Prospective investors are accordingly advised not to rely upon any
information or representations not incorporated in this Offer Document. Any subscription, purchase or sale made by any person
on the basis of statements or representations which are not contained in this Offer Document or which are inconsistent with the
information contained herein shall be solely at the risk of the investor.
The current Regulations impose certain restrictions and conditions on the AMC for entering into transactions with the Sponsors
and their associates on behalf of the Fund. These restrictions include:
a) Purchase or sale of securities through any broker associated with the Sponsors shall not exceed an average of 5% of the
aggregate purchases and sale of securities made by the Fund in all its Schemes. The limit of 5% shall apply for a block of
any three months.
b) Utilization of the services of the Sponsors or any of their associates, for the purpose of any securities transactions and
distribution and sale of securities shall be made only if a disclosure to this effect is made in the Offer Document.
c) The Fund shall not make any investment in;
1 any unlisted security of an associate or group company of the Sponsor; or
2. any security issued by way of private placement by an associate or group company of the Sponsor; or
3. the listed securities of group companies of the Sponsor which is in excess of 25% of the net assets of any of the
schemes of the Mutual Fund.
In this Offer Document, all references to “$” are to United States of America Dollars, “£” to Pound Sterling of United Kingdom
and “Rs.” are to Indian Rupees. The Reference Exchange Rate between the United States Dollar and the Indian Rupee has been
taken at $1 = Rs.48.00 and UK£ and Indian Rupee at 1£=Rs. 73.5774.
This Offer Document is dated September 22, 2003.
2

l
l
l
l
l
l
HIGHLIGHTS
Prudential ICICI Balanced Fund
The Sponsors of the Fund are Prudential plc of the United Kingdom (UK) and ICICI Bank Limited (erstwhile ICICI Limited).
Prudential plc is a leading international financial services group providing retail financial products and services and fund
management to many millions of customers worldwide. As a group Prudential plc has, as of 31 December 2002, over
GBP155 billion of funds under management, more than 12 million customers and over 15,000 employees, worldwide.
Securities and Exchange Board of India, vide its letter no. MFD/PM/567/02 dated June 4, 2002, has accorded its approval
in recognizing ICICI Bank Ltd. as a co-sponsor consequent to the merger of ICICI Ltd. with ICICI Bank Ltd.
ICICI Bank is India’s second largest bank with an asset base of Rs. 106,812 crore. ICICI Bank provides a broad spectrum
of financial services to individuals and companies. This includes mortgages, car and personal loans, credit and debit
cards, corporate and agricultural finance. The Bank services a growing customer base of more than 7 million customers
and 6 million bondholder accounts through a multi-channel access network. This includes about 450 branches and
extension counters, 1675 ATMs, call centres and Internet banking (Source: Press Release dated May 23, 2003 at
www.icicibank.com). ICICI Bank posted a net profit of Rs.1, 206 crore for the year ended March 31, 2003. ICICI Bank is
the only Indian company to be rated above the country rating by the international rating agency Moody’s and the only
Indian company to be awarded an investment grade international credit rating. The Bank enjoys the highest AAA (or
equivalent) rating from all leading Indian rating agencies.
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned
subsidiary.
Fund Management expertise – Prudential plc is a leading international financial services group providing retail financial
products and services and fund management to many millions of customers worldwide. As a group Prudential plc has, as
of 31 December 2002, over GBP155 billion of funds under management, more than 12 million customers and over
15,000 employees, worldwide.
Prudential ICICI Asset Management Company Limited, the Investment Manager to the Prudential ICICI Mutual Fund,
manages assets over Rs. 13,000 crores as of July 31, 2003 through 16 schemes. It is one of the largest asset management
companies in the country.
The Scheme seeks to generate long term capital appreciation and current income from a portfolio that is invested in
equity and equity related securities as well as in fixed income securities.
High Liquidity - Being an open ended Scheme, Units may be purchased or redeemed on every Business Day at NAV
based prices subject to applicable load provisions. The Fund will, under normal circumstances, endeavour to despatch
redemption cheques within 3 Business Days. Please see Para “Redemption of Units” on page 40 for details of Redemption.
Load
Entry Load:
i. For investments of less than Rs. 10 Lakhs: Entry load at 2.25% of applicable Net Asset Value (NAV).
ii. For investment of Rs.10 Lakhs and above but upto Rs. 3 crores: Entry load at 1.75% of applicable Net Asset
Value (NAV)
iii. For investment of Rs. 3 crores and above : Entry load is Nil.
Exit Load:
On an on-going basis, the Trustee, for the present does not intend to charge an exit load on redemption of Units.
No entry load will be charged in respect of switch transaction from one equity scheme of the Fund to another equity
scheme of the Fund.
Subject to the Regulations, the Trustee reserves the right to modify/alter the load structure and may decide to introduce a
differential load structure on the Units subscribed/redeemed on any Business Day.
l Options available are Growth Option and Dividend Option. Dividend Reinvestment facility available.
l Investors who hold units in any of the open ended schemes of the Fund may switch all or part of their holdings to the
Scheme on an ongoing basis. No entry load will be charged in respect of switch transaction from one equity
scheme of the Fund to another equity scheme of the Fund. Further, under Flexible Lifetime Investment Programme,
investors may choose to alter the allocation of their investment among the schemes in order to meet their changing
circumstances during their lifetime.
Transparency – The NAV is calculated and disclosed at the close of every Business Day. In addition the AMC discloses
portfolio of the Scheme at quarterly rests on the web site of the AMC www.pruicici.com.
l The following Tax benefits are available as per the Finance Act, 2003:
l Finance Act 2003 has inserted section 10(35), whereby any income received in respect of units of Mutual Fund specified
under clause (23D) of Section 10 will be exempt from income tax in the hands of the unit holders.
l Long-term Capital Gains in respect of Units held for a period of more than 12 months will be chargeable under section
112 of the Income-Tax Act, 1961, at a rate of 20% plus surcharge, as applicable.
5

Prudential ICICI Mutual Fund
l
l
l
l
As provided under section 54EC of the Income Tax Act, 1961, where an assessee has made capital gains from the transfer
of units held in the Mutual Fund Scheme for a period exceeding 12 months and the assessee has at any time within a
period of 6 months after the date of such transfer, invested such capital gains in the long term specified assets, such
capital gains shall be exempted from tax on capital gains under section 54EC of the Income Tax Act 1961.
As provided in Section 54ED, where an assessee has made capital gains arising from the transfer of units held in the
Mutual Fund Scheme for a period exceeding 12 months will be exempt, if the assessee has, any time within a period of 6
months after the date of such transfer, invested the whole of the capital gains in acquiring equity shares forming part of
an eligible issue of capital. However, if the assessee has invested only a part of the capital gains, he will be eligible for the
proportionate exemption. An eligible issue of capital means an issue of equity shares offered for subscription to the
public by a public company formed and registered in India.
Investors in the Scheme are not being offered any guaranteed returns.
Investors are advised to consult their Legal /Tax and other Professional Advisors in regard to tax/legal implications
relating to their investments in the Scheme and before making decision to invest in the Scheme or redeem the
Units in the Scheme.
6

Sponsors
Prudential ICICI Balanced Fund
Prudential plc
Laurence Pountney Hill,
London EC4R DHH,
United Kingdom
ICICI Bank Limited
Landmark,
Race Course Circle,
Vadodara 390 007,
India
Asset Management Company
Prudential ICICI Asset Management Company Limited
Registered Office
206 Ashoka Estate, 2 nd Floor,
24 Barakhamba Road,
New Delhi – 110 001
Corporate Office
3 rd Floor, Contractor Building.
41, R. Kamani Marg
Ballard Estate
Mumbai 400 038.
Trustee
Prudential ICICI Trust Limited
206 Ashoka Estate, 2 nd Floor,
24 Barakhamba Road,
New Delhi – 110 001
Registrar
Computer Age Management Services Pvt. Limited
A & B Lakshmi Bhavan,
609 Anna Salai
Chennai 600 006
Auditors to the Scheme
N. M. Raiji & Company
Universal Insurance Building
Sir Phiroze Shah Mehta Road
Mumbai 400 001
Custodian
HDFC Bank Limited
Sandoz House
Dr. Annie Besant Road
Worli, Mumbai 400 018
Legal Advisors:
A.R.A. LAW
Agra Building,
1st Floor, 121, M.G. Road,
Fort, Mumbai - 400 023
7

Prudential ICICI Mutual Fund
SECTION I
DUE DILIGENCE CERTIFICATE
It is confirmed that:
i) The draft Offer Document forwarded to SEBI is in accordance with the SEBI (Mutual Funds) Regulations, 1996 and the
guidelines and directives issued by SEBI from time to time.
ii) All legal requirements connected with the launching of the Scheme and also the guidelines, instructions, etc. issued by
the Government of India and any other competent authority in this behalf, have been duly complied with.
iii) The disclosures made in the Offer Document are true, fair and adequate to enable the investors to make a well informed
decision regarding investment in the proposed Scheme.
iv) The intermediaries named in the Offer Document, according to the information given to the AMC, are registered with
SEBI and till date such registration is valid.
Ranganath Athreya
Vice President – Finance, Compliance,
& Company Secretary
Place : Mumbai
Date : September 20, 2003
Note: The Due Diligence Certificate as stated above was submitted to SEBI .
8

Prudential ICICI Balanced Fund
Definitions
In this Offer Document, the following words and expressions shall have the meaning specified herein, unless the context
otherwise requires:
Asset Management Company or AMC or Prudential ICICI Asset Management Company Limited (formerly ICICI
Investment Manager
Asset Management Company Limited), the Asset Management Company
incorporated under the Companies Act, 1956, and registered with SEBI
to act as an Investment Manager for the schemes of Prudential ICICI
Mutual Fund
Applicable NAV
The NAV applicable for purchases/ redemptions/switches, based on the
time of the Business Day on which the application is accepted.
Business Day
A day other than (1) Saturday and Sunday or (2) a day other than a day on
which the Stock Exchange, Mumbai and National Stock Exchange are
closed whether or not the Banks in Mumbai are open. (3) a day on which
the Sale and Redemption of Units is suspended by the Trustee/AMC.
Provided that the days when the banks at any centre where the AMC’s
Customer Service Centers are located, are closed due to a local holiday,
such days will be treated as non Business Days at such centres for the
purposes of accepting fresh subscriptions. However, if the AMCs offices
in such centres are open on such local holidays, then redemption and
switch requests will be accepted at those centres, provided it is a Business
Day for such scheme on an overall basis.
Custodian
HDFC Bank Limited, Mumbai, acting as Custodian to the Scheme, or any
other custodian who is approved by the Trustee and has been granted
registration by SEBI under the Securities and Exchange Board of India
(Custodian of Securities) Regulations, 1996 as amended from time to
time.
FII
Foreign Institutional Investors, registered with SEBI under Securities and
Exchange Board of India (Foreign Institutional Investors) Regulations,
1995, as amended from time to time.
ICICI Bank
ICICI Bank Limited
Investment Management Agreement The Agreement dated September 3, 1993 entered into between Prudential
ICICI Trust Limited (formerly ICICI Trust Limited) and Prudential ICICI
Asset Management Company Limited (formerly ICICI Asset Management
Company Limited) as amended from time to time.
NAV
Net Asset Value of the Units of the Scheme and the Plans and Options, if
any, thereunder, calculated on every Business Day in the manner provided
in this Offer Document or as may be prescribed by Regulations from time
to time.
NRI
Non-Resident Indian.
OCB
Overseas Corporate Bodies, firms and societies which are held directly or
indirectly but ultimately to the extent of at least 60% by NRIs and trusts
in which at least 60% of the beneficial interest is held irrevocably by such
persons.
Offer Document
This document issued by Prudential ICICI Mutual Fund, offering Units of
Prudential ICICI Balanced Fund for subscription, at NAV based prices.
Prudential
Prudential plc. (formerly known as Prudential Corporation plc), of the
U.K. and includes, wherever the context so requires, its wholly owned
subsidiary Prudential Corporation Holdings Limited.
RBI
Reserve Bank of India, established under the Reserve Bank of India Act,
1934, as amended from time to time.
SEBI
Securities and Exchange Board of India established under Securities and
Exchange Board of India Act, 1992, as amended from time to time.
The Balanced Fund / The Scheme
Prudential ICICI Balanced Fund.
The Fund or Mutual Fund
Prudential ICICI Mutual Fund (formerly ICICI Mutual Fund), a trust set up
under the provisions of the Indian Trusts Act, 1882. The Fund is registered
with SEBI vide Registration No.MF00393/6 dated October 13, 1993 as
ICICI Mutual Fund and has obtained approval from SEBI for change in
name to Prudential ICICI Mutual Fund vide SEBI’s letter dated April 16,
1998.
9

Prudential ICICI Mutual Fund
The Trustee
Prudential ICICI Trust Limited (formerly ICICI Trust Limited), a company
set up under the Companies Act, 1956, and approved by SEBI to act as
the Trustee for the schemes of Prudential ICICI Mutual Fund
The Regulations Securities and Exchange Board of India (Mutual Funds) Regulations, 1996
as amended from time to time.
Trust Deed
Trust Fund
Unit
Unitholder
The Trust Deed dated August 25, 1993 establishing ICICI Mutual Fund,
(subsequently renamed Prudential ICICI Mutual Fund) as amended from
time to time.
Amounts settled/contributed by the Sponsors towards the corpus of the
Prudential ICICI Mutual Fund and additions/accretions thereto.
The interest of an investor which consists of one undivided share in the
Net Assets of the Scheme.
A holder of Units in the Scheme of Prudential ICICI Balanced Fund and
the Plans and Options offered under the Fund, as contained in this Offer
Document.
10

Name of the Scheme
Structure
Offer Price for On -
Features
Application Amount
Initial Issue Expenses
Flexible Lifetime
Investment Programme
Liquidity
Summary – Prudential ICICI Balanced Fund
Prudential ICICI Balanced Fund.
Open Ended Balanced Fund
Prudential ICICI Balanced Fund
Based on the Applicable NAV of the Scheme, subject to going subscriptions
entry load provisions.
The primary investment objective of the Scheme is to seek to generate
long term capital appreciation and current income from a portfolio that is
invested in equity and equity related securities as well as in fixed income
securities. However, there can be no assurance that the investment
objectives of the Scheme will be realized.
In order to avail of the tax concessions available under Section 115R
of the Income-tax Act, 1961, it is envisaged that investible funds of
more than 50% of the total proceeds of the Scheme will be invested
in the equity shares of domestic companies.
On an on-going basis, the Minimum application amount is Rs.5,000
per application (plus in multiples of Re.1). Additional investments
should be for a minimum of Rs.500.
The initial issue expenses were limited to 1% of the amount mobilized
under the Scheme during the Initial Offer Period.
The Fund will allow investors the flexibility to alter the
allocation of their investments amongst the designated Schemes offered
by the Fund in order to meet their changing investment needs or risk
profiles by switching between the Schemes of the Fund. It is the intention
of the Fund to enable investors in the Scheme to switch between the
present open ended schemes and the future schemes which may be
included in the Flexible Lifetime Investment Programme. Please refer to
page 71 for more details of the Flexible Lifetime Investment Programme.
On an ongoing basis, an investor can purchase and redeem Units on every
Business Day at NAV based prices, subject to the prevailing load structure.
(Please refer to page 40 for Redemption Price and page 73 for Purchase
Price).
The Units of the Scheme are not listed on any exchange.
The Fund will, under normal circumstances, endeavour to despatch the
redemption cheques within 3 Business Days from the date of acceptance
of the redemption request at any of the Customer Service Centres.
Transparency
NAV will be determined on every Business Day, except in special
circumstances described on page 81.
NAV of the Scheme shall be made available at all Customer Service Centres
of the AMC. The AMC shall also endeavour to have the NAV published in
a daily newspaper and updated on AMC’s website (www.pruicici.com).
AMC shall update the NAVs on the website of Association of Mutual
Funds in India - AMFI (www.amfiindia.com) by 8.00-p.m. every Business
Day. In case of any delay, the reasons for such delay would be explained to
AMFI and SEBI by the next day. If the NAVs are not available before
commencement of business hours on the following day due to any reason,
the Fund shall issue a press release providing reasons and explaining
when the Fund would be able to publish the NAVs.
The Mutual Fund shall disclose the full portfolio and mail the same to the
Unitholderssemi-annually.
Repatriation facility NRIs/PIOs/FIIs have been granted a general permission by RBI [Schedule 5
of the Foreign Exchange Management (Transfer or Issue of Security by a
Person Resident Outside India) Regulations, 2000] for investing in /
redeeming units of the schemes subject to conditions set out in the
aforesaid regulations.
Eligibility for Trusts
Religious and Charitable Trusts are eligible to invest in the Scheme under
the provisions of section 11(5)(xii) of the Income-tax Act, 1961 read with
Rule 17C of Income-tax Rules, 1962.
11

Prudential ICICI Mutual Fund
CONSTITUTION OF THE MUTUAL FUND
ICICI Mutual Fund, which has been renamed as Prudential ICICI Mutual Fund (“the Mutual Fund” or “the Fund”) has been
constituted as a Trust in accordance with the provisions of the Indian Trusts Act, 1882 (2 of 1882). The Mutual Fund was
registered with SEBI on October 13, 1993.
ICICI Mutual Fund was established by ICICI, by execution of a Trust Deed dated August 25, 1993. Prudential plc, through its
wholly owned subsidiary, Prudential Corporation Holdings Limited, has contributed an amount of Rs.12.2 lacs to the corpus of
the Fund and has received permission for such contribution from the RBI vide letter No: CO.FID(I)4940/10/I.07.02.200(221)97-
98 dated April 25, 1998. SEBI has approved the change in name of the Fund to Prudential ICICI Mutual Fund vide its letter
IIMARP / 88 / 98 dated April 16, 1998. A deed of amendment to the Trust Deed dated August 25, 1993 was executed and
registered.
a) Sponsors
Prudential plc (formerly known as Prudential Corporation plc)
Prudential plc is a leading international financial services group providing retail financial products and services and fund
management to many millions of customers worldwide. As a group Prudential plc has, as of 31 December 2002, over GBP155
billion of funds under management, more than 12 million customers and over 15,000 employees, worldwide.
Given below is a brief summary of Prudential’s financials:
Year ended December 31 (Rs. crores)
Description 2003 2002 2001 2000
(Half year ended (Year ended (Year ended (Year ended
June 30) December 31) December 31) December 31)
Unaudited
Total Income 130,085 253,033 188,748 133,124
Profit Before Tax 1,435 3,562 2,833 6,968
Profit After Tax 1,023 3,304 2,862 4,878
Shareholders’ Funds 26,981 26,988 29,063 29,578
Earnings per share (Rs.) 4.64 11.63 17.14 22.22
Equity Capital (5 Pence per share) 736 736 736 728
Free Reserves 26,245 26,252 28,327 28,850
Net-worth 26,981 26,988 29,063 29,578
Book Value per share (Rs.) 134.91 134.94 145.32 149.38
Percentage of dividend per share 106% 520% 508% 490%
Dividend per share (in Pence) 5.3P 26.00P 25.4P 24.5P
(Interim)
ICICI Bank Limited
Securities and Exchange Board of India, vide its letter no. MFD/PM/567/02 dated June 4, 2002, has accorded its approval in
recognizing ICICI Bank Ltd. as a co-sponsor consequent to the merger of ICICI Ltd. with ICICI Bank Ltd.
ICICI Bank is India’s second largest bank with an asset base of Rs. 106,812 crore. ICICI Bank provides a broad spectrum of
financial services to individuals and companies. This includes mortgages, car and personal loans, credit and debit cards, corporate
and agricultural finance. The Bank services a growing customer base of more than 7 million customers and 6 million bondholder
accounts through a multi-channel access network. This includes about 450 branches and extension counters, 1675 ATMs, call
centres and Internet banking (Source: Press Release dated May 23, 2003 at www.icicibank.com). ICICI Bank posted a net profit
of Rs.1, 206 crore for the year ended March 31, 2003. ICICI Bank is the only Indian company to be rated above the country rating
by the international rating agency Moody’s and the only Indian company to be awarded an investment grade international credit
rating. The Bank enjoys the highest AAA (or equivalent) rating from all leading Indian rating agencies.
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was originally a wholly-owned
subsidiary of ICICI.
12

Prudential ICICI Balanced Fund
Given below is a brief summary of ICICI Bank’s financials:
(Rs. in crores)
Year ended Year ended *Year ended
March 31, 2001 March 31, 2002 March 31, 2003
Total Income 1462.13 2726.59 12,526.88
Profit After Tax 161.09 258.3 1,206.18
Free Reserves @ 1092.26 5632.41 6,320.65
Net Worth 1302.43 6244.96 6933.31
Earnings per Share (Rs.) (diluted) 8.13 11.61 19.65
Book Value per Share (Rs.) 59.11 101.95 113.10
Dividend 20% 20% 75%
Paid Up Capital (Equity) $ 220.36 612.55 612.66
(Preference) # 0 350 350
* The results for the year ended March 31, 2003 include the result of erstwhile ICICI Limited and its subsidiaries, ICICI Personal
Financial Services Limited and ICICI Capital Services Limited, amalgamated with the Bank w.e.f. March 30, 2002. The financials
for the current periods are not comparable with the earlier periods.
@ Excludes revaluation reserve
$ Includes in 2002, Rs. 392.67 crores for shares to be issued to shareholders of ICICI Limited on amalgamation, further, during
the year ended March 31, 2003, the Bank allotted 3,000 shares pursuant to exercise of employee stock options.
# Represents in 2002, face value of 350 preference shares to be issued to shareholders of ICICI Ltd on amalgamation,
redeemable at par on April 20, 2018. As per the notification received from Ministry of Finance, the restriction of section 12(1)
of the Banking Regulation Act, 1949, prohibiting banks established after 1944 from holding preference shares, is not
applicable to the Bank for a specified period.
Prudential plc of UK, through its wholly owned subsidiary, Prudential Corporation Holdings Limited, has been issued and
allotted shares aggregating 55% stake in the share capital of Prudential ICICI Asset Management Company Limited (AMC),
whereas the balance 45% shareholding in the AMC is being held by erstwhile ICICI and is under process of being transferred to
ICICI Bank Ltd. ICICI Bank will hold 30% of the paid-up capital of the AMC and the balance 15% will be held by a subsidiary of
ICICI Bank Ltd. (ICICI Venture Funds Management Company Limited), in order to ensure adherence with the provisions of Section
19(2) of the Banking Regulation Act, 1949.
b) The Trustee Company (The Trustee) - Prudential ICICI Trust Limited
Prudential ICICI Trust Limited, a company incorporated under the Companies Act, 1956 is the Trustee to the Fund vide Trust Deed
dated August 25, 1993 as amended from time to time. Prudential plc, through its wholly owned subsidiary, Prudential Corporation
Holdings Limited, U.K. holds 55% of the shares of the Trustee, whereas the balance 45% shareholding of the Trustee company
is being held by erstwhile ICICI and is under a process of being transferred to ICICI Bank Ltd and its Group Company.
i) The Directors of the Trustee Company are:
Mr. Natesan Vaidheeswaran Iyer
Partner
(S/o. Mr. Chinnaswamy Natesan Iyer)
C.C. Chokshi & Co., Mumbai
73, Jupiter Apartments C.C. Chokshi & Co., Ahmedabad
41, Cuffe Parade C.C. Chokshi & Co., Baroda
Mumbai 400 005
C.C. Chokshi & Co., New Delhi
Chartered Accountant
C.C. Chokshi & Co., Goa
Deloitte Haskins & Sells, Mumbai
Deloitte Haskins & Sells (National Firm), Mumbai
Deloitte Haskins & Sells, Ahmedabad
Deloitte Haskins & Sells, Baroda
Deloitte Haskins & Sells, New Delhi
Deloitte Haskins & Sells, Calcutta
Touche Ross & Co., Chennai
Touche Ross & Co., Mumbai
Touche Ross & Co., Ahmedabad
Touche Ross & Co., Baroda
Director
CCC Services Co. Pvt. Ltd., Mumbai (Chairman)
Deloitte Touche Tohmatsu (Global Board)
NSE.IT Limited, Mumbai
Discount and Finance House of India Ltd, Mumbai
National Commodity & Derivatives Exchange Limited
13

Prudential ICICI Mutual Fund
Mr. Vishnu Bhagwandas Haribhakti
(S/o. Late Mr. Bhagwandas Haribhakti)
Flat No.51, 5 th Floor
Maker Tower ‘B’
Cuffe Parade
Mumbai 400 005
Chartered Accountant
Partner
Haribhakti & Co., Mumbai
V.B. Haribhakti Associates, Mumbai
Haribhakti Shah & Co., Ahmedabad
V.B. Haribhakti & Co., New Delhi
V.B. Haribhakti & Co., Chennai
V.B. Haribhakti & Co., Bangalore
V.B. Haribhakti & Co., Jodhpur
V.B. Haribhakti & Co., Calcutta
V.B. Haribhakti & Co., Jaipur
Director
Bajaj Electricals Ltd
Rohit Pulp and Paper Mills Company Ltd.
The Simplex Mills Company Ltd.
The Anglo-French Drug Co.(Eastern) Ltd.
Ester Industries Ltd.
Lakshmi Automatic Loom Works Ltd.
Tilaknagar Industries Ltd.
Hindustan Composites Ltd.
Mutual Mecaplast Ltd (Alternate Director)
Haribhakti MRI Corporate Services Pvt.Ltd.
Moores Rowland Consulting Pvt. Ltd.
Trustee
Bombay Rotary Midtown Trust
The Pransukhlal Mafatlal Hindu Swimming Bath and Boat
Club Trust
V.B. Haribhakti Charitable Trust
Indian Merchants’ Chamber Platinum Jubilee Endowment
Trust
Council for Fair Business Practices
Managing Committee Member
Indian Merchant Chamber
The Associated Chambers of Commerce and Industry of India
Mr. Eruch .B. Desai
Partner
(S/o. Mr. Byramsha Desai)
Birla Global Finance Ltd.
81, Sonarica Bekaert Industries Pvt.Ltd.
33-A, Pedder Road
The Century Textiles & Industries Ltd.
Mumbai 400 026
Dolphin Fisheries & Trading Pvt.Ltd.
Solicitor and Advocate
Hercules Hoists Ltd. (Alternate director)
Mulla & Mulla & Craigie Blunt & Caroe
Hindalco Industries Ltd.
Director
Ispat Metallics India Ltd.
Matsushita Lakhanpal Battery India Ltd
New Age International Private Ltd.
National Panasonic India Private Ltd.
Widia (India) Ltd.(Alternate)
Supreme Industries Limited
Mr. Nagesh D. Pinge*
Nominee Director (on behalf of ICICI Bank Limited)
(S/o. Dinkar Shripad Pinge)
Jindal Vijaynagar Steel Co. Ltd.
.8.1 D-408/1, Viman Darshan Jindal Thermal Power Co. Ltd.
28-29 Swami Nityanand Marg SWIL Limited
Andheri (East)
Videocon International Ltd.
Mumbai 400069
The India Cements Limited
General Manager –Risk, Compliance
and Audit Group – ICICI Bank Ltd.
Mr. Sham P. Subhedar*
Senior Advisor
(S/o. Mr. Pandharinath Subhedar)
Prudential Corporation Asia Ltd.
1, Gulmohar Director
S.V. Road
Peter Pan Travels Services Pvt. Ltd.
Vile Parle (W)
SAS Management Consultants and Office Services Pvt. Ltd.
Mumbai 400 056
ICICI Prudential Life Insurance Company Ltd.
Consultant
Prudential Process Management Services Pvt. Ltd.
* Mr. Nagesh Pinge is a General Manager (Head-Risk, Compliance and Audit Group) of ICICI Bank Limited and Mr. S.P.
Subhedar is a Senior Advisor to the Prudential Corporation Asia Limited, a wholly owned subsidiary of Prudential plc.
14

Prudential ICICI Balanced Fund
Rights and Obligations of the Trustee
Pursuant to the Deed of Trust dated August 25, 1993 constituting the Mutual Fund and in terms of the SEBI (Mutual Funds)
Regulations, 1996, the rights and obligations of the Trustee are as under:
1. The Trustee shall have a right to obtain from the AMC such information as is considered necessary by it.
2. The Trustee shall ensure before the launch of any scheme that the Asset Management Company has:
i. systems in place for its back office, dealing room and accounting;
ii. appointed all key personnel including fund manager(s) for the scheme(s) and submitted to the Trustee their bio-data
which shall contain the educational qualifications, past experience in the securities market within fifteen days of
their appointment;
iii. appointed auditors to audit the accounts of the schemes;
iv. appointed a compliance officer to comply with regulatory requirements and to redress investor grievances;
v. appointed registrars and laid down parameters for their supervision;
vi. prepared a compliance manual which is updated by including all the provisions of regulations and guidelines issued
by SEBI from time to time and designed internal control mechanisms including internal audit systems commensurate
with the size of the mutual fund.
vii. Specified norms for empanelment of brokers and marketing agents.
3. The Trustee shall ensure that the AMC has been diligent in empanelling the brokers, in monitoring securities transactions
with brokers and avoiding undue concentration of business with any broker.
4. The Trustee is required to ensure that the AMC has not given any undue or unfair advantage to any associate or dealt
with any of the associates of the AMC in any manner detrimental to the interests of the Unitholders.
5. The Trustee is required to ensure that the transactions entered into by the AMC are in accordance with the Regulations
and the provisions of the Scheme.
6. The Trustee is required to ensure that the AMC has been managing the schemes independently of other activities and
has taken adequate steps to ensure that the interest of investors of one Scheme are not compromised with those of any
other Scheme or of other activities of the AMC.
7. The Trustee is required to ensure that all the activities of the AMC are in accordance with the provisions of the Regulations
and shall exercise general and specific due diligence as required under the Regulations.
8. Where the Trustee has reason to believe that the conduct of the business of the Fund is not in accordance with these
Regulations and the provisions of Scheme it is required to take such remedial steps as are necessary by it and to immediately
inform SEBI of the violation and the action taken by it.
9. Each Director of the Trustee is required to file with the Trust the details of each securities transaction, which exceed the
value of Rs.1 lakh on a quarterly basis.
10. The Trustee is accountable for and is required to be the custodian of the Fund’s property of the respective Scheme and to
hold the same in trust for the benefit of the Unitholders in accordance with the Regulations and the provisions of the
Trust Deed.
11. The Trustee is required to take steps to ensure that the transactions of the Fund are in accordance with the provisions of
the Trust Deed.
12. The Trustee is responsible for the calculation of any income due to be paid to the Mutual Fund and also of any income
received in the Mutual Fund for the holders of the units of any scheme in accordance the Regulations and the Trust
Deed.
13. The Trustee is required to obtain the consent of the Unitholders of the Scheme :
a. When the Trustee is required to do so by SEBI in the interest of the Unitholders; or
b. Upon a requisition made by three-fourths of the Unitholders of the Scheme; or
c. If a majority of the Trustees decide to wind up the Scheme or prematurely redeem the Units; or
d. The Trustee shall ensure that no change in the fundamental attributes of the Scheme or the trust or fee and expenses
payable or any other change which would modify the Scheme and affects the interests of unit holders, shall be
carried out unless:
i) a written communication about the proposed change is sent to each Unitholder and an advertisement is given
in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language
of the region where the Head Office of the mutual fund is situated; and
ii) the unit holders are given an option to exit at the prevailing Net Asset Value without any exit load.
14. The Trustee is required to call for the details of transactions in securities by the key personnel of the AMC in their own
names or on behalf of the AMC and report the same to SEBI as and when called for.
15

Prudential ICICI Mutual Fund
15. The Trustee is required to review quarterly, all transactions carried out between the Fund, the AMC and its associates.
16. The Trustee is required to review quarterly, the net worth of the AMC and in case of any shortfall ensure that the AMC
makes up for the shortfall as per clause (f) of sub regulation (1) of Regulation 21 of the Regulations.
17. The Trustee is required to periodically review all service contracts such as custody arrangements and transfer agency, and
satisfy itself that such contracts are executed in the interest of the Unitholders.
18. The Trustee is required to ensure that there is no conflict of interest between the manner of deployment of its net worth
by the AMC and the interest of the Unitholders.
19. The Trustee is required to periodically review the investor complaints received and the redressal of the same by the AMC.
20. The Trustee is required to abide by the Code of Conduct as specified in the Fifth Schedule of the Regulations.
21. The Trustee has to furnish to SEBI on a half yearly basis:-
(a) a report on the activities of the Fund covering the details as prescribed by SEBI;
(b) a certificate stating that the Trustees have satisfied themselves that there have been no instances of self dealing or
front running by any of the Trustee, directors and key personnel of the AMC;
(c) a certificate to the effect that the AMC has been managing the schemes independently of any other activities and in
case any activities of the nature referred to in sub Regulation (2) of Regulation 24 of the Regulations have been
undertaken, the AMC has taken adequate steps to ensure that the interest of the Unitholders is protected.
22. The independent Directors of the Trustee are required to give their comments on the report received from the AMC
regarding the investments by the Mutual Fund in the securities of the group companies of the sponsors.
23. No amendments to the Trust Deed shall be carried out without the prior approval of SEBI and Unitholders approval/
consent will be obtained where it affects the interests of Unitholders as per the procedure / provisions laid down in the
Regulations.
24. The Trustees shall exercise general and specific due diligence required under the Regulations.
25. Trustee shall maintain high standards of integrity and fairness in all their dealings and in the conduct of their business.
26. Trustee shall render at all times high standards of service, exercise due diligence, ensure proper care and exercise
independent professional judgement.
27. The independent directors of the Trustee shall pay specific attention to the following as may be applicable, namely :
i. The Investment Management Agreement and the compensation paid under the agreement.
ii. Service contracts with affiliates – whether the asset management company has charged higher fees than outside
contractors for the same services.
iii. Selection of the asset management company’s independent directors
iv. Securities transactions involving affiliates to the extent such transaction are permitted.
v. Selecting and nominating individuals to fill independent directors vacancies.
vi. Code of ethics must be designed to prevent fraudulent, deceptive or manipulative practices by insiders in connection
with personal securities transactions.
vii. The reasonableness of fees paid to sponsors, asset management company and any others for services provided.
viii. Principal underwriting contracts and renewals
ix. Any service contracts with the associates of the asset management company.
28. Notwithstanding anything contained in sub-regulations (1) to (25) of regulation 18 of the Regulations, the Trustees shall
not be held liable for acts done in good faith if they have exercised adequate due diligence honestly.
29. SEBI circular no. MFD/CIR/10/ 15895 /2002 dated August 20, 2002 provides that the meetings of the Trustees shall be
held at least once in every two calendar months and at least six such meetings should be held every year. Further, as per
the Regulations, for the purposes of constituting the quorum for the meetings of the Trustees, at least one Independent
Trustee or Director should be present during such meetings.
During the period from April 1, 2003 to August 31, 2003, three meetings of the Directors of the Trustee were held. The Trustee’s
supervisory role is discharged by reviewing the information and the operations of the Fund based on reports submitted at the
Board Meetings of the Trustee, by reviewing the reports being submitted by the Internal Auditor and the bi-monthly, quarterly
and half-yearly compliance reports. The Trustee also conducts a detailed review of the half-yearly and annual accounts of the
schemes of the Fund and discusses the matters arising there from with the Statutory Auditors of the Fund.
iii) Trusteeship Fees
Pursuant to the Deed of Trust constituting the Fund, the Fund is authorized to pay the Trustee a fee for its services in such capacity
of a sum, presently computed at the rate of upto 0.05% of the amount, being the aggregate of the Trust Fund and Unit Capital
of all the Schemes put together on April 1 of each year or a sum of Rs.5 lacs, whichever is higher. The Trustee may charge further
fees as permitted from time to time under the Trust Deed and the Regulations.
16

Prudential ICICI Balanced Fund
SEBI has, in terms of its letter No.MFD/LV/059/00 dated January 31, 2000 approved an amendment to Trust Deed. The amendment
authorizes the Trustee to decide upon the Trusteeship Fee to be charged from the Mutual Fund at the beginning of each financial
year (April 1 to March 31), subject to the maximum limit of 0.05% to be arrived at as indicated above. The amendment does not
in any way, adversely impact or alter the interests of Unitholders under the existing schemes of the Fund.
C) MANAGEMENT OF ASSET MANAGEMENT COMPANY (AMC)
ICICI Asset Management Company Limited (I-AMC), a company registered under the Companies Act, 1956, was established by
ICICI as its wholly owned subsidiary, to act as the Investment Manager of the ICICI Mutual Fund vide the Investment Management
Agreement dated September 3, 1993. Consequent to a review of long-term business strategy of the AMC, it was decided to
further strengthen commitment to the individual investor segment. As a part of this Scheme, Prudential plc. (formerly known as
Prudential Corporation plc.) of the UK (Prudential) was inducted as the new joint venture partner.
Prudential plc of UK, through its wholly owned subsidiary, Prudential Corporation Holdings Limited, has been issued and
allotted shares aggregating 55% stake in the share capital of the AMC. Whereas the balance 45% shareholding in the AMC is
being held by erstwhile ICICI and is under process of being transferred to ICICI Bank Ltd., that would hold 30% of the paid-up
capital of AMC and the balance 15% will be held by a subsidiary of ICICI Bank Ltd. (ICICI Venture Funds Management Company
Limited), in order to ensure adherence with the provisions of Section 19(2) of the Banking Regulation Act, 1949.
I-AMC was approved by SEBI to act as the Investment Manager of ICICI Mutual Fund vide its letter No.IIMARP/MF/22356 dated
October 12, 1993. Consequent to the restructuring of shareholding pattern as stated above, SEBI vide its letter No.IIMARP\631\98
dated March 11, 1998 accorded its approval for the induction of Prudential plc (through its wholly own subsidiary, Prudential
Corporation Holdings Limited) as a shareholder of the AMC. The AMC has applied and secured approval from the Registrar of
Companies, Delhi and Haryana, for its change of name to Prudential ICICI Asset Management Company Limited, vide letter
No.21/55-54135/320 dated March 26, 1998.
The AMC will manage the schemes of the Fund, including the Scheme mentioned in this Offer Document, in accordance with the
provisions of Investment Management Agreement, the Trust Deed, the Regulations and the objectives of each of the schemes.
AMC has obtained registration from SEBI vide Registration No.INP000000373 dated February 29, 2000 read with a renewed
certificate dated February 27, 2003, to act as a Portfolio Manager under SEBI (Portfolio Managers) Regulations, 1993. Further,
the Mutual Funds Division of SEBI, vide its letter no. MFD/LV/248/2000 dated May 10, 2000, conveyed its no objection for the
AMC undertaking PMS activities subject to the AMC complying with the requirements as envisaged in Regulation 24(2) of SEBI
(Mutual Funds) Regulations, 1996. The AMC has commenced the Portfolio Management activities, after complying with the
regulatory requirements.
i) Board of Directors of the AMC
Mr. Ajay Srinivasan
Prudential Corporation Asia, Suites 2910-14, Two Pacific Place, 88, Queensway, Hongkong.
Mr. Srinivasan is the Managing Director of Funds Prudential Corporation Asia responsible for its mutual funds / Institutional
Funds business in Asia. Mr. Srinivasan was the Managing Director of the Prudential ICICI Asset Management Company Ltd.
during the period March 1998 to December 2000 and was responsible for the development of business of the Company and its
day-to-day management.
Mr. Srinivasan has significant experience in managing asset management companies. As the Deputy Chief Executive of ITC
Threadneedle AMC. Mr. Srinivasan was part of the team responsible for making policy for ITC Threadneedle AMC Ltd and was
also head of the fund management function. Prior to his tenure at ITC Threadneedle, Mr. Srinivasan was a member of the ITC
Group’s Financial Services Division and was responsible for establishing, planning and running several businesses at ITC,
including the stock broking business, Over the Counter Exchange business, the private equity business and investment banking
business.
Mr. Srinivasan began his career at ICICI where, as a part of project appraisal team, he assessed the feasibility of several projects
in various sectors.
Mr. Srinivasan has a Post Graduate Diploma in Business Management from Indian Institute of Management, Ahmedabad,
specializing in finance. He has a Bachelor’s Degree in Economics (Honours) from St. Stephens’ College, New Delhi.
Mr. Ananda Mukerji
301, Radhika Apartments, Off. Sayani Road, Prabhadevi, Mumbai 400 025
Mr. Ananda Mukerji has a B Tech degree in Mechanical Engineering from the Indian Institute of Technology, Kharagpur and a
Post-graduate Diploma in Management from the Indian Institute of Management, Kolkata. He has over 17 years experience
including 11 years at ICICI during which he set up and managed a number of businesses including the infrastructure finance,
structured finance and advisory businesses. He also worked as Executive Assistant to the Managing Director & CEO, and Head of
Strategy. Since January 2002, he has headed ICICI OneSource Limited, the ICICI group’s Business Process Outsourcing (BPO) arm,
as its Managing Director & CEO.
17

Prudential ICICI Mutual Fund
Mr. N. S. Kannan
Flat 201, Radhika Apts., 930 TPS IV, Off Sayani Road, Prabhadevi, Mumbai 400 025.
Mr. N.S. Kannan has completed a Mechanical Engineering from the Regional Engineering College, Trichy and has a Postgraduate
Diploma in Management from the Indian Institute of Management, Bangalore. He is also a Chartered Financial Analyst
from the Institute of Chartered Financial Analyst of India, Hyderabad. Mr. Kannan has over 17 years experience including 13 years
at ICICI during which he has managed a number of activities including the project finance, structured finance and treasury
operations. He started his career with SRF Nippon denso Limited in 1987 as an Executive – Project Planning and joined ICICI Ltd.
in 1991 as a Project Officer. Subsequent to the merger of ICICI with ICICI Bank, he was responsible for the treasury operations
including structured finance and strategy activities of the Bank as a Treasury Head. He is currently acting as a CFO & Treasurer,
managing the finance functions & treasury of the Bank.
Mr. K. S. Mehta
C-70 Panchsheel Enclave, New Delhi 11 0017
Mr. Mehta is a Senior Partner of S.S. Kothari & Co., Chartered Accountants, and heads the firm’s management consultancy
division. Mr. Mehta specializes in corporate financial planning, restructuring, project financing and working capital control. He
has an in-depth knowledge of industry in his capacity as Director of some of the leading companies and as a management
consultant.
Mr. Mehta is a Member of the Managing Committee of Federation of Indian Chambers of Commerce and Industry (FICCI). He is
a former Member of the Advisory Committee on Primary Markets set up by SEBI, a Former Director on the Board of the National
Stock Exchange of India Limited and is the past President of PHD Chamber of Commerce & Industry.
Mr. Mehta is a FCA and has a Bachelor of Commerce (Hons.) Degree.
Mr. N. Ganga Ram
703 Golden Castle, Sundar Nagar, Road No 2, Kalina, Santacruz (E), Mumbai 400 098
Mr. Ganga Ram is a Development Banker with extensive experience in corporate finance and management.
Mr. Ganga Ram, after serving as a Commercial Bank Executive for over 8 years, joined Reserve Bank of India / Industrial
Development Bank of India (IDBI) in 1965. He worked with IDBI for 27 years and retired as Executive Director in September 1992.
At IDBI, Mr. Ganga Ram was associated with policy formulation and operations. Mr. Ganga Ram was with Unit Trust of India for
a brief period as Adviser in investments from January to August 1993. Mr. Ganga Ram worked as a Consultant to the World Bank
and Asian Development Bank on several projects.
Mr. Ganga Ram is at present on the Boards of several companies. He is also on four committees of the National Stock Exchange
of India Limited.
Mr. Ganga Ram holds a Master of Arts degree in Economics from the University of Madras. He is a Certified Associate of the
Indian Institute of Bankers and Fellow of the Economic Development Institute, World Bank, Washington.
Mr. Dadi Engineer
Sea Shells, 13, Darabsha Road, Off. Napeansea Road, Mumbai 400 036
Mr. Engineer is a Solicitor and Advocate and is a Senior Partner at Crawford Bayley & Co. He has over 40 years experience in the
legal profession and has expertise in various aspects of Corporate Law, Indirect Taxation, Foreign Exchange, Imports, Trade
Control Regulations and Civil and Constitutional Law.
Mr. Engineer is the President of the Managing Committee of Bombay Incorporated Law Society and served as the Representative
Member of the Governing Council of the Bar Association of India. He has also been associated with the various committees set
up by Bombay Chamber of Commerce and Industry and Associated Chambers of Commerce and Industry.
Mr. Engineer is on the Boards of several leading domestic and multi-national companies.
Mr. B. R. Gupta
6B, Sheetal Apartments, Lokhandwala Complex, Andheri (W) , Mumbai400 053.
Mr. Gupta is the former Executive Director of the Life Insurance Corporation of India (LIC). He was working as Consultant
(Investment) to GIC, India till December 2000.
Mr. Gupta has worked with LIC for over 35 years in various capacities and has had extensive experience in the operations of the
life insurance industry, specifically in the areas of investment, marketing, underwriting and administration. Mr. Gupta also
worked in the investment department of the LIC for 10 years and headed the department as Executive Director. He was responsible
for managing LIC’s portfolio comprising a variety of investments. Subsequent to his retirement, till May 1999, he functioned as
the Investment Advisor to LIC.
Mr. Gupta is on the Boards of several companies and had been a Member of “The Administrative Committee of Insurance
Institute of India”, “The Committee of NSE on Development of the Debt Market in India”, “ The Executive Committee of the
NSE” and “The Advisory Committee on Secondary Market Operations of SEBI”. At present Mr. Gupta is an Advisor to SchoolNet
India Ltd., an initiative of IL&FS.
Mr. Gupta is a M.A in English and has a LL.B. degree besides being a Fellow of Insurance Institute of India.
18

Prudential ICICI Balanced Fund
Mr. Pradip P. Shah
72A, Embassy Apartments, 46, Nepean Sea Road, Bombay 400 006.
Mr. Pradip P. Shah started IndAsia, a private equity investment and corporate finance advisory company in April 1998, following
his separation from the management of the Indocean Fund which he helped establish in October 1994, in association with
affiliates of Soros Fund Management and Chemical Venture Partners (now Chase Capital Partners).
Prior to starting Indocean, he was the Managing Director of the Credit Rating and Information Services of India Limited (‘CRISIL’),
India’s first and the largest credit rating agency. Mr. Shah was one of the team members, which assisted in founding CRISIL in
1988. While at CRISIL, Mr. Shah was instrumental in technology transfer to and the training of personnel of Rating Agency
Malaysia Berhad and The Israeli Securities Rating Company.
Prior to founding of CRISIL, Mr. Shah assisted as a member of the project team in founding the Housing Development Finance
Corporation (HDFC) in 1977. Before joining HDFC, Mr. Shah was a Project Officer at the Industrial Credit and Investment
Corporation of India Limited (‘ICICI’). Mr. Shah has also served as a consultant to USAID, the World Bank and the Asian
Development Bank.
Mr. Shah holds an MBA from Harvard Business School and is a qualified Chartered Accountant as well as a Cost Accountant and
ranked first in India in the Chartered Accountancy examination.
Mr. Shailendra Bhandari
Quest End, 3rd Floor, 47, Cuffe Parade, Mumbai - 400 005
Mr. Bhandari is the Managing Director of the Prudential ICICI Asset Management Company Ltd. and is responsible for development
of the business of the Company and its day-to-day management. Prior to joining AMC, for about seven months, Mr. Bhandari
was working as a Consultant for application of Information Technology in the field of Finance & Banking. Since September 1994
to November 1999, Mr. Bhandari was associated with HDFC Bank Ltd. as Treasurer and Executive Director - Head of Capital
Markets. At HDFC Bank, Mr. Bhandari’s main responsibilities included overseeing and development the entire Capital Markets
and Private Banking functions of the bank, including the Treasury (Foreign Exchange, Derivatives, Money Markets) as well as
trading in Debt and equities and Investment Advisory Services.
During the period from May 1992 to August 1994, Mr. Bhandari was the Chief Executive, Citicorp Securities & Investments Ltd.,
a group entity of Citibank N.A., India.
Mr. Bhandari has a Masters Degree in Management from the Indian Institute of Management, Ahmedabad. He has a Bachelor’s
Degree in Economics from St. Stephens’ College, University of Delhi.
ii) Powers, Duties and Responsibilities of the AMC
The duties and responsibilities of the AMC shall be governed by the Regulations and the Investment Management Agreement.
The AMC, in the course of managing the affairs of the Mutual Fund, has the power, inter-alia:
(a) to invest in, acquire, hold, manage or dispose of all or any securities and to deal with, engage in and carry out all other
functions and to transact all business pertaining to the Fund;
(b) to keep the moneys belonging to the Trust with scheduled banks and Custodians as it may deem fit;
(c) to issue, sell and purchase Units under any Scheme;
(d) to repurchase the Units that are offered for repurchase and hold, reissue or cancel them;
(e) to formulate strategies, lay down policies for deployment of funds under various Schemes and set limits collectively or
separately for privately placed debentures, unquoted debt instruments, securitised debts and other forms of variable
securities which are to form part of the investments of the Trust Funds;
(f) to arrange for investments, deposits or other deployment as well as disinvestment or refund out of the Trust Funds as
per the set strategies and policies;
(g) to make and give receipts, releases and other discharges for moneys payable to the Trust and for the claims and demands
of the Trust;
(h) to get the Units under any scheme listed on any one or more stock exchanges in India or abroad;
(i) to open one or more bank accounts for the purposes of the Fund, to deposit and withdraw money and fully operate the
same;
(j) to pay for all costs, charges and expenses, incidental to the administration of the Trust and the management and
maintenance of the Trust property, Custodian and/or any other entities entitled for the benefit of the Fund, audit fee,
management fee and other fees;
(k) to furnish compliance reports to the Trustees as prescribed by SEBI.
(l) to provide or cause to provide information to SEBI and the Unitholders as may be specified by SEBI and
(m) to generally do all acts, deeds, matters and things which are necessary for any object, purpose or in relation to the
Prudential ICICI Mutual Fund in any manner or in relation to any scheme of the Prudential ICICI Mutual Fund.
The Asset Management Company shall maintain high standards of integrity and fairness in all their dealings and in the conduct
of their business.
19

Prudential ICICI Mutual Fund
The Asset Management Company shall render at all times high standards of service, exercise due diligence, ensure proper care
and exercise independent professional judgement.
The independent directors of the Asset Management Company shall pay specific attention to the following as may be applicable,
namely :
i. The Investment Management Agreement and the compensation paid under the agreement.
ii. Service contracts with affiliates – whether the company has charged higher fees than outside contractors for the same
services.
iii. Securities transactions involving affiliates to the extent such transaction are permitted.
iv. Code of ethics must be designed to prevent fraudulent, deceptive or manipulative practices by insiders in connection
with personal securities transactions.
v. The reasonableness of fees paid to sponsors, asset management company and any others for services provided.
vi. Principal underwriting contracts and renewals
vii. Any service contracts with the associates of the company.
In terms of the Investment Management Agreement and the Regulations, the AMC is entitled to an investment management fee
at 1.25% per annum of the average net assets for a corpus up to Rs.100 crores and at 1.00% per annum for the corpus amount
in excess of Rs.100 crores. Further, as per the Regulations, for the schemes launched on no load basis, the Asset Management
Company is entitled to collect an additional management fees not exceeding 1% of the average net assets outstanding in each
financial year.
iii) Key Employees of the AMC and relevant experience:
Name of the Employee Age Designation Educational Total No. of Years Assignments Held
(Years) Qualifications of Experience/Type During the Last 10 Yrs
& Nature of Experience
Mr. Shailendra Bhandari 44 Managing Director Post Graduate Diploma Over 22 years of Managing Director
in Management, Indian experience in the areas Prudential ICICI AMC –
Institute of Management, of Treasury, Risk from December 2000
Ahmedabad, Bachelor of Management, Operations, till date.
Arts- Economics, Technology, and Business
St. Stephen’s College, Development December 1999 to November
University of Delhi, 2000 IT Consultancy in the
field of Finance & Banking at
Auckland, New Zealand.
September 1994 - Nov.
1999- Treasurer & Executive
Director - Head Of Capital
Markets of HDFC Bank Ltd.,
Mumbai, India
May 1992 - Aug 1994: Chief
Executive of Citicorp Securities
& Investments Ltd. in Mumbai
Mr. Pankaj Razdan 34 Deputy CEO BSc. (Electronics) Over 9 years of experience Vice President / Senior
B. Tech (Electronics in sales and distribution. Vice President & Head -
Engineering) Sales & Distribution -
Prudential ICICI AMC - 2000
onwards.
Vice President - West & North
Zone Prudential ICICI AMC -
1999 – 2000.
Head -Distribution -Karvy
Securities Limited - 1997 –
1998.
Marketing Manager - HMG
Financial Services Limited -
1992 – 1993.
Graduate Engineer Trainee /
Design Engineer – Nelco Ltd.
1992.
Mr. Dileep Madgavkar 39 Chief Investment Associate of Institute Over 14 years of Chief Investment Officer –
Officer of Chartered experience in treasury Prudential ICICI AMC - 1998
Accountants of India, and fund management. to date.
B.Com (Hons.)
Financial Analyst & Consultant
- 1993 to 1998.
Manager Equities & PMS –
ANZ Grindlays Bank -
1989 – 1993.
20

Prudential ICICI Balanced Fund
Mr. Vasant Sanzgiri 42 Senior Vice President & BSc ( Life Sciences), Over 15 years experience Vice President / Senior Vice
Head Human Resources MMS (Personnel in area of Human President & Head Human
Management) Resources Management Resources Prudential ICICI
AMC - 2000 to date.
General Manager - Human
Resources - Owens Cornning
India Limited - 1998 – 2000.
General Manager Human
Resources – DCW Home
Products - 1996 – 1998.
Regional Human Resource &
Quality Manager - Modi Xerox
- 1995 –1996.
Manager, Human Resources
Cyanamid India - 1992 – 1995.
Manager – Human Resources
- Indian Hotels Limited - 1990
– 1992.
Mr. Kalyan Prasath 36 Vice President – PGDSM(NIIT), B.Sc Over 15 years of work Vice President – Information
Information Technology experience in areas of Technology - Prudential ICICI
Information Technology AMC June 2001 onwards.
Birla Global – Assistant Vice
President from Feb’97 to April,
2001.
DGP Windsor India Ltd. –
Manager from Sept ’94 to
Jan’97.
Universal Luggage Mfg. Co.
Ltd. - Asst. Manager from
Nov’90 to Sept’94.
NIIT/CCIT – Course Conductor
from May ‘89 to Oct’90
ECIL – System Developer from
June ’88 to April ‘89
Associated Systems – Software
Developer from July’85 to April
’88.
Mr. Ranganath Athreya 37 Vice President – Associate -_Institute Over 13 yrs of Vice President – Finance,
Finance Legal, of Company Secretaries experience in Compliance Legal, Compliance and
Compliance and of India. and Company Secretarial Company Secretary,
Company Secretary Bachelors Degree functions Prudential ICICI AMC Jan 14,
(General Laws), PGDCP
02 onwards.
Head Corporate
Communication and Company
Secretary - IDBI Bank June
1997 to 12 th Jan 2002
Chief Manager Merchant
Banking and Company
Secretary - Karnataka Bank
Ltd. from 1992-97
Company Secretary Lakshmi
Motor Credit (Now TVS
Finance) 1989-92
Mr. Mrugank Paranjape 36 Vice President Operations PGDM from Over 13 yrs of experience May 2002 - to-date : Vice
and Project IIM, Ahmedabad in Operatios and projects President - Prudential ICICI
B. Tech. (Electrical) AMC Limited
from IIT, Powai April 2001 - May 2002
Chief Technology Officer -
Reliance Logistics Pvt. Limited
Dec 1999 - March 2001
Director - Infoline.com Limited
& MD - India Infoline Securities
Limited
July 1997 - Nov 1999
Regional Business Manager -
Deutsche Bank A.G, Custody
Services
July 1996 to June 1997
Director - WI Carr Securities
Pvt. Limited
Nov 1995 to July 1996
Director - ING Barings Securities
(India) Pvt. Limited
Nov 1994 - Oct 1995
Vice President Operations, IIT
Invest Trust Limited
May 1990 - Oct 1994
Citibank N.A Global Consumer
Business Manager
21

Prudential ICICI Mutual Fund
Mr. R. Murali Krishnan 42 Fund Manager ACS, CAIIB, PGDPM & Over 10 years of Fund Manager – Prudential
IR, B.Com. experience in Investment ICICI AMC - 1998 to date.
Management
Sr. Research Analyst ICICI
AMC 1995 – 1998.
Research Analyst ICICI AMC
1993 - 1995.
Research Analyst – Canbank
Mutual Fund 1991 –1993.
Mr. Sanjay Mehrotra 37 Associate Vice MMS, Marketing, Over 13 years of Associate Vice President –
President - Investments B.Com experience in Investment Investments - Prudential ICICI
Management
AMC - 1999 to date.
Manager – Investments -
Prudential ICICI AMC - 1999.
Dealer - Prudential ICICI AMC
- 1998 – 1999.
Assistant Manager - ICICI AMC
- 1993 – 1998.
Manager Sound Craft
Marketing - 1992 – 1993.
Dealer – Treasury Tata Finance
Limited - 1992.
Executive – Growmore
Research & Assets - 1990 –
1992.
Mr. N. Krishna Kumar 33 Senior Fund Manager C.A., ICWA. Over 8 years of work Sr. Fund Manager - Prudential
experience
ICICI AMC - 1999 to date.
Vice President – Equity Sales -
Dresdner Klienwort Benson
India - 1997 – 1999.
Research Analyst – UTI
Securities Exchange Limited -
1995 – 1997.
Executive Infar India Limited -
1993 – 1995.
Mr. Mihir Vora 33 Fund Manager Post Graduate Diploma B.E. (Mechanical) Sr. Fund Manager – Prudential
in Management Over 7 years experience ICICI AMC - 2000 to date
(IIM Lucknow), in Investment Management Fund Manager - SBI Funds
and Product Development Management Limited - 1998 –
2000.
Chief Dealer, Dealer
(Secondary Market Equity) -
SBI Funds Management
Limited - 1997 – 1998.
Portfolio Manager - SBI Funds
Management Limited - 1995 –
1997.
Deputy Manager (Product
Development) - SBI Funds
Management Limited - 1994
– 1995.
Management Trainee Gujarat
State Fertilisers Company
Limited - 1991 – 1992.
Mr. Venugopal K. 30 Fund Manager PGDBA – ICFAI Over 4 years experience Fund Manager -
Business School, in Investment Prudential ICICI AMC -
MA (Economics), Management 2000 to date.
B.Com.
Dealer - Pennar Investments
Limited - 1997 – 2000.
Mr. Vivekanand 35 Manager – Ph.D. (University of Over 6 years experience Manager – Credit Analyst
Ramakrishnan Credit Analyst Southern California), in Credit Analysis. Prudential ICICI AMC - 2001
MS (University of
to date.
Southern California),
Manager – Rating (Business
B. Tech. (IIT Madras). Development & Marketing)
Crisil - 1995 – 2001
Marketing Executive -Vikram
Ispat - 1994 – 1995.
Mr. Pankaj Kaji 50 Senior Fund Manager B.Com 30 yrs Fund Manager- Prudential ICICI
AMC- 2002 till date.
Deutsche Bank, Mumbai (Vice-
President-Money Market)
1994-2002, ANZ Grindlays
Bank (Funds Manager)-1986-
1994
22

Prudential ICICI Balanced Fund
Mr. Chaitanya Pande 31 Fund Manager PGDM from IMI, 7 yrs 5 Months Manager – Fund Management
New Delhi,
Sept 16th 2002 till date – Fund
BSc from St. Stephens
Manager – Prudential ICICI
College, New Delhi
AMC Limited
Jan 2000 to Sep 2002
Manager – Fund Management
JF Asset Management (India)
Pvt. Limited
May 1995 to Jan 2000
Investment Analyst
JF Asset Management (India)
Pvt. Limited
Mr. Chandresh Kumar Nigam 34 Senior Fund Manager B TECH, PGDM, 12 Yrs. – Fund From July 2003 till date-
IIM CALCUTTA, AISSCE Management Prudential ICICI Asset
Management Company Ltd.,-
Equity Fund Management;
From April 1993 – June 2003-
Zurich Asset management –
Equity Fund Management;
May1991 – April 1993- SBI
capital Markets Limited- Fund
Management
As indicated above, at present a team comprising of nine Fund Managers and one Research Analyst are involved in
equity research. The past experience of these employees is indicated above.
All the above key personnel are based at the Corporate Office of AMC.
iv) Fund Manager :
The investments under the Schemes will be managed by the Chief Investment Officer, Mr. Dileep Madgavkar. His qualifications
and experience are as under:
Scheme Name Fund Manager Qualification Experience
Prudential ICICI Mr. Dileep Madgavkar Associate of Institute of Over 14 years of experience
Balanced Fund Chartered Accountants in treasury and fund
B.Com (Hons.) (Cal. Univ.) management.
v) Compliance Officer
The Compliance Officer for the Fund is:
Mr. Ranganath Athreya
Vice President- Finance, Compliance and Company Secretary
Prudential ICICI Asset Management Company Ltd.
Contractor Building, 3 rd Floor
41, R.Kamani Marg,
Mumbai - 400 038
vi) Investor Relations Officer
Investor Relations Officer for the Fund is Mr. Gautam Guha and he may be contacted at the corporate office of the AMC
at Mumbai.
d) Auditors
N. M. Raiji & Co., Chartered Accountants, Mumbai have expressed their willingness to act as Auditors for the Scheme
offered under this Offer Document and have been appointed as Auditors by the Trustee.
e) Registrar
Computer Age Management Services Pvt. Limited, A & B Lakshmi Bhavan, 609 Anna Salai, Chennai – 600006 (CAMS)
have been appointed as Registrar for the Scheme. The Registrar is registered with SEBI under registration No:
INR000002813. As Registrar to the Scheme, CAMS will handle communications with investors, perform data entry services
and dispatch Account Statements. The AMC and the Trustee have satisfied themselves that the Registrar can provide the
services required and has adequate facilities and the system capabilities.
f) Custodian
HDFC Bank Limited, Mumbai has been appointed as Custodian for the Scheme mentioned in the Offer Document. The
Custodian has been registered with SEBI and has been awarded registration No.IN/CUS/001 dated February 2, 1998. The
Trustee has entered into a Custodian Agreement with the Custodian and the salient features of the said Agreement are
as under:
23

Prudential ICICI Mutual Fund
(a) Provide post-trading and custodial services to the Mutual Fund.
(b) Ensure benefits due on the holdings are received.
(c) Provide detailed management information and other reports as required by the AMC.
(d) Maintain confidentiality of the transactions.
(e) Be responsible for the loss or damage to the assets belonging to the Scheme due to negligence on its part or on the
part of its approved agents and
(f) Segregate assets of each Scheme.
(g) The Custodian shall not assign, transfer, hypothecate, pledge, lend, use or otherwise dispose any assets or property,
except pursuant to instruction from the Trustee/AMC or under the express provisions of the Custodian Agreement.
(h) The Custodian shall also not deal, on its own account, in securities purchased or sold by the Mutual Fund without
making an adequate disclosure to SEBI and the Trustee/AMC.
The Custodian will be entitled to remuneration for its services in accordance with the terms of the Custodian Agreement.
24

SECTION II
Prudential ICICI Balanced Fund
INVESTMENT OBJECTIVES & POLICIES
PRUDENTIAL ICICI BALANCED FUND
Fundamental Attributes of the Scheme
a) Type of the Scheme
An open-ended balanced fund, seeking to generate long term capital appreciation and current income.
b) Investment Objective
The primary investment objective of the Scheme is to seek to generate long term capital appreciation and current income
by creating a portfolio that is invested in equity and equity related securities as well as in fixed income securities. However,
there can be no assurance that the investment objective of the Scheme will be realized.
c) Investment Pattern
The corpus of the Scheme will be invested in equity shares and in equity related securities as well as in debt and money
market instruments. Subject to the Regulations, the corpus of the Scheme can be invested in any (but not exclusively) of
the following securities:
1) Equity and equity related securities including convertible bonds and debentures and warrants carrying the right to
obtain equity shares.
2) Securities created and issued by the Central and State Governments and/or repos/reverse repos in such Government
Securities as may be permitted by RBI (including but not limited to coupon bearing bonds, zero coupon bonds and
treasury bills)
3) Securities guaranteed by the Central and State Governments (including but not limited to coupon bearing bonds,
zero coupon bonds and treasury bills)
4) Debt obligations of domestic Government agencies and statutory bodies, which may or may not carry a Central/
State Government guarantee
5) Corporate debt (of both public and private sector undertakings)
6) Obligations/ Term Deposits of banks (both public and private sector) and development financial institutions.
7) Money market instruments permitted by SEBI/RBI, having maturities of up to one year, in call money market or in
alternative investment for the call money market as may be provided by the RBI to meet the liquidity requirements.
8) Certificate of Deposits (CDs)
9) Commercial Paper (CPs)
10) Securitised Debt
11) The non-convertible part of convertible securities
12) Any other domestic fixed income securities
13) ADRs/GDRs issued by Indian Companies, subject to the guidelines issued by Reserve Bank of India and Securities
and Exchange Board of India.
14) Derivative instruments like Interest Rate Swaps, Forward Rate Agreements, Stock Index Futures and such other derivative
instruments permitted by SEBI/RBI.
Subject to the Regulations, the securities mentioned above could be listed, unlisted, privately placed, secured, unsecured, rated
or unrated and of varying maturity. The securities may be acquired through Initial Public Offerings (IPOs), secondary market
operations, private placement, rights offers or negotiated deals.
The Scheme may also enter into repurchase and reverse repurchase obligations in all securities held by it as per the guidelines
and regulations applicable to such transactions. Further the Scheme intends to participate in securities lending as permitted
under the Regulations.
As per the prevailing provisions of Section 115 R(2) of the Income-tax Act, 1961, the Scheme will be categorized as an “open
ended equity oriented fund” if the investible funds are invested by way of equity shares in domestic companies to the extent of
more than 50% of the total proceeds of the Scheme. Further, as per the provisions of the above Section, the percentage of equity
shareholding of the Scheme shall be computed with reference to annual average of the monthly averages of the opening and
closing figures.
25

Prudential ICICI Mutual Fund
Under normal circumstances, the asset allocation under the Scheme will be as follows:
Sr. Type of Security Approximate Maximum Minimum Risk Profile
No. Allocation (% of Allocation of the Allocation of
Corpus) under corpus the corpus
normal
circumstances.
26
1 Equities & Equity related securities 60% 80% 51% Medium to high
2 Debt securities & Money Market 40% 49% 20% Low to medium
instruments & Cash (including –
money at call)
*Note: If the Scheme decides to invest in securitised debt, it is the intention of the Investment Manager that such investments will
not, normally, exceed 25% of the corpus of the Scheme.
Investors may note that securities, which provide higher returns typically, display higher volatility. Accordingly, the investment
portfolio of the Scheme would reflect moderate to high volatility in its equity and equity related investments and low to
moderate volatility in its debt and money market investments.
Position of Debt Market in India:
The debt market in India is estimated at about Rs.7,00,000 crores as of now. A bulk of the debt market consists of Government
Securities. Other instruments available currently include Corporate Debentures, Bonds issued by Financial Institutions, Commercial
Paper, Certificates of Deposits and Securitised Debt. Securities in the Debt market typically vary based on their tenure and rating.
Government Securities have tenures from one year to twenty years whereas the maturity periods of the Corporate Debt varies
from one year to ten years. Securities may be both listed and unlisted but this does not impact liquidity of the instruments. Most
of the transactions in the debt market are conducted over telephone and are entered on principal-to-principal basis. The yields
and liquidity on various securities, currently, are as under:
Issuer Instrument Maturity Yields Liquidity
GOI Treasury Bill 91 days 4.85-4.95%* High
GOI Treasury Bill 364 days 4.80-4.90%* High
GOI Short Dated 1-3 Yrs 5.05-5.25%** High
GOI Medium Dated 3-5 Yrs 5.25-5.40%** High
GOI Long Dated 5-10 Yrs 5.40-5.80%** High
Corporates Taxable Bonds (AAA) 1-3 Yrs 5.25-5.65%*** Medium
Corporates Taxable Bonds (AAA) 3-5 Yrs 5.60-5.90%*** Low to medium
Corporates CPs (P1+) 3 months 4.95-5.20%* Medium to High
Corporates CPs (P1+) 1 Yr 5.15-5.35%* Medium
* Money Market yield
** Semi-annual yield
*** Annualised yield
d) Change in Investment Pattern
Subject to the Regulations, the asset allocation pattern indicated above may change from time to time, keeping in view
market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly
understood that the percentages stated above are only indicative and not absolute and that they can vary substantially
depending upon the perception of the Investment Manager, the intention being at all times to seek to protect the interests
of the Unitholders. Such changes in the investment pattern will be for short term and defensive considerations.
Provided further and subject to the above, any change in the asset allocation affecting the investment profile of the Plans
shall be effected only in accordance with the provisions of sub regulation (15A) of Regulation 18 of the Regulations, as
detailed later in this document.
e) Terms of the Scheme
i) Liquidity
On an on-going basis, an investor can purchase and redeem Units on every Business Day at NAV based prices, subject to
the applicable load structure.
a. Redemption of Units
The Units can be redeemed (i.e. sold back to the Fund) on every Business Day at the Redemption Price (hereinafter
defined). The redemption request can be made for a minimum amount of Rs.500 or more. Redemption can also be
made for the total number of units standing to the credit of investor at the time of closure of account, even though
such redemption is for less than the minimum amount as stated above.
Redemption Price

ii)
Prudential ICICI Balanced Fund
The redemption will be at Applicable NAV based prices. Please refer to “Redemption Price” on page 78.
b. Payment of Proceeds
All redemption requests received prior to the cut-off time (please refer to “Payment of Proceeds” on Page 79 on any
Business Day at the Customer Service Centres will be considered accepted on that Business Day, subject to the
redemption requests being complete in all respects, and will be priced on the basis of Redemption Price for that day.
Requests received after the cut-off time will be treated as though they were accepted on the next Business Day.
Please refer to (Page 80) “Right to Limit Redemptions” and (page 81) “Suspension of Sale and Redemption of
Units”.
As per the Regulations, the Fund shall despatch redemption proceeds within 10 Business Days (working days) of
receiving the redemption request. However, under normal circumstances, the Fund will endeavour to despatch the
redemption proceeds within 3 Business Days of acceptance of the redemption request at Customer Service Centres.
Investors should note that it is the intention of the Fund to despatch the redemption proceeds within 3 Business
(working) Days and the Fund/AMC do not guarantee the same.
As per the guidelines issued by SEBI, in the event of failure to despatch the redemption or repurchase proceeds
within 10 working days, the AMC is liable to pay interest to the Unit holders @ 15% p.a. SEBI has further advised
the mutual funds that in the event of payment of interest to the Unit holders, such Unit holders should be informed
about the rate and the amount of interest paid to them.
Listing
Being an open ended Scheme, the Units of the Scheme are not listed on any stock exchange.
Fees and Expenses
a. Initial Issue Expenses: The Initial Issue Expenses to be charged were limited to 1% of the initial corpus mobilised
under the Scheme. Under the Regulations, the Fund is entitled to charge Initial Issue Expenses upto a maximum of
6% of initial resources raised under the Scheme.
b. Recurring Expenses: The details of recurring expenses of the Scheme, on an annual basis, have been stated on
Page 83. The estimated recurring expenses for the Scheme are at 2.00 % p.a.
As per the Regulations, the maximum recurring expenses that can be charged to the Scheme shall be subject to a
percentage limit of weekly net assets as in the table below:
First Rs. 100 crore Next Rs. 300 crore Next Rs. 300 crore Over Rs. 700 crore
2.50% 2.25% 2.00% 1.75%
Subject to Regulations and this Offer Document, expenses over and above the prescribed ceiling will be borne by
the AMC.
c. Load : Entry Load:
i. For investments of less than Rs. 10 Lakhs : Entry load at 2.25% of applicable Net Asset Value (NAV).
ii. For investment of Rs.10 Lakhs and above but upto Rs. 3 crores: Entry load at 1.75% of applicable Net Asset
Value (NAV)
iii. For investment of Rs. 3 crores and above: Entry load is Nil.
Exit Load:
On an on-going basis, the Trustee, for the present does not intend to charge an exit load on redemption of Units.
No entry load will be charged in respect of switch transaction from one equity scheme of the Fund to another equity
scheme of the Fund.
Subject to the Regulations, the Trustee reserves the right to modify/alter the load structure and may decide to introduce
a differential load structure on the Units subscribed/redeemed on any Business Day. Such changes will be applicable
for prospective investments. The Trustee shall arrange to display a notice in the Customer Service Centers of the
AMC before the change of the then prevalent load structure. The addendum detailing the changes in load structure
will be attached to offer documents and abridged offer documents. The addendum will also be circulated to all the
distributors / brokers so that the same can be attached to all the offer documents and abridged offer documents in
stock. This addendum will also be sent along with the newsletter to the unitholders immediately after the changes.
Changes in the load structure may be stamped in the acknowledgement slip issued by the Fund after the changes in
load structure. The load collected from the Unitholders will be credited to a separate account and will be offset
against distribution and marketing expenses. Surplus of load, if any, charged over planned marketing and distribution
expenses to be defrayed will be credited to the Scheme whenever felt appropriate by the AMC.
f) Changes in Fundamental Attributes
The Trustees shall ensure that no change in the fundamental attributes of any scheme or the trust or fee and expenses
payable or any other change which would modify the scheme and affects the interests of unit holders is carried out
unless:
27

Prudential ICICI Mutual Fund
l written communication about the proposed change is sent to each unitholder and an advertisement is given in
one English daily newspaper having nationwide circulation as well as in a newspaper published in the language
of the region where the Head Office of the mutual fund is situated; and
l the unitholders are given an option to exit at the prevailing Net Asset Value without any exit load.
g) Investment Strategy and Risk Control
As mentioned under the para “Investment Pattern”, the Scheme proposes to invest in a mix of equities and fixed
income securities with the aim of generating capital appreciation, while at the same time minimizing the volatility
inherent in pure equity schemes. With this aim the Investment Manager will allocate the assets of the Scheme between
equity and fixed income securities within the limits mentioned in the table above. The actual percentage of investment
in equities and fixed income securities will be decided after considering the prevailing political conditions, the economic
environment (including interest rates and inflation), the performance of the corporate sector, the equity markets and
general liquidity and other considerations in the economy and markets.
Stock picking
The AMC believes in a bottom-up approach to stock picking. This means that the focus is on the fundamental
quality of companies as opposed to a focus on favoured sectors and market movements.
The AMC will follow a structured investment process in order to identify the best stocks for inclusion in the portfolio.
This would involve consistently examining all stocks under an internally developed research framework, which focuses
on the following key factors:
l Management quality, strategy and vision
l Business dynamics
l Financial strength of the company
l Free cash flow generation
l Returns on capital employed and returns on equity
l Intangible assets such as brands, distribution etc.
l Valuation in relation to the history of the stock as well as its peer group
A stock would be considered for inclusion in the portfolio when the valuation does not adequately capture its
underlying fundamental value in our opinion based on the above factors.
Risk Control
Since investing requires disciplined risk management, the AMC would incorporate adequate safeguards for controlling
risks in the portfolio construction process. The risk control process involves reducing risks through portfolio
diversification, taking care however not to dilute returns in the process. The AMC believes that this diversification
would help achieve the desired level of consistency in returns.
i) Equities
For the equity portion of the corpus up to Rs.100 crores, the AMC intends to invest in around 25 stocks, which
are bought, typically with a one-year time horizon. Stock specific risk will be minimised by investing only in
those companies that have been thoroughly analysed by the Fund Management team at the AMC. The AMC
will also monitor and control maximum exposures to any one stock or one sector.
ii) Fixed Income
The AMC aims to identify securities, which offer superior levels of yield at lower levels of risks. With the aim of
controlling risks, rigorous in depth credit evaluation of the securities proposed to be invested in will be carried
out by the investment team of the AMC. The credit evaluation includes a study of the operating environment of
the company, the past track record as well as the future prospects of the issuer, the short as well as longer-term
financial health of the issuer. Rated Debt instruments in which the Scheme invests will be of investment grade
as rated by a credit rating agency. The AMC will be guided by the ratings of Rating Agencies such as CRISIL,
CARE, ICRA and Duff and Phelps Credit Rating India Limited. In case a debt instrument is not rated, such
investments shall be made by an internal committee constituted by AMC to approve the investment in un-rated
debt securities in terms of the parameters approved by the Board of Trustees and the Board of Asset Management
Company.
In addition, the investment team of the AMC will study the macro economic conditions, including the political,
economic environment and factors affecting liquidity and interest rates. The AMC would use this analysis to
attempt to predict the likely direction of interest rates and position the portfolio appropriately to take advantage
of the same.
The Scheme may also use various derivatives and hedging products from time to time, as would be available
and permitted by SEBI, in an attempt to protect the value of the portfolio and enhance Unitholders’ interest.
28

Prudential ICICI Balanced Fund
The Scheme may invest in other schemes managed by the AMC or in the schemes of any other Mutual Funds,
provided it is in conformity to the investment objectives of the Scheme and in terms of the prevailing Regulations.
As per the Regulations, no investment management fees will be charged for such investments.
For the present, the Scheme does not intend to enter into underwriting obligations. However, if the Scheme
does enter into an underwriting agreement, it would do so after complying with the Regulations and with the
prior approval of the Board of the AMC/Trustee.
Portfolio Turnover
Portfolio turnover is defined as the aggregate of purchases and sales as a percentage of the corpus of the Scheme
during a specified period of time.
The AMC’s portfolio management style is conducive to a low portfolio turnover rate. However, the AMC will take
advantage of the opportunities that present themselves from time to time because of the inefficiencies in the securities
markets. A high portfolio turnover rate may represent arbitrage opportunities that exist for scrips held in the portfolio.
The AMC will endeavour to balance the increased cost on account of higher portfolio turnover with the benefits
derived therefrom.
PROCEDURE FOLLOWED FOR INVESTMENT DECISIONS:
1) The Fund Manager of each scheme is responsible for making buy/sell decisions in respect of the securities in the respective
scheme portfolios, subject to final approval by the Chief Investment Officer. The investment decisions are made and
approved on daily basis keeping in view the market conditions and all relevant aspects.
2) The AMC has an Internal Investment Committee comprising of the Managing Director, the Chief Investment Officer,
Fund Managers and the Research Analyst who meet at periodic intervals. The Investment Committee, at its meetings,
reviews the performance of the schemes and general market outlook and formulates broad investment strategy.
The Chief Executive Officer who chairs the Investment Committee Meetings guides the deliberations at Investment
Committee. He, on an ongoing basis, reviews the portfolios of the schemes and gives directions to the Chief Investment
Officer, where considered necessary. It is the ultimate responsibility of the Chief Investment Officer to ensure that the
investments are made as per the internal/Regulatory guidelines, Scheme investment objectives and in the best interest of
the unitholders of the respective schemes.
The AMC has a team comprising of nine Fund Managers and one Research Analyst. All of these are involved in preparation
of research reports.
3) The Managing Director makes a presentation to the Board of AMC at each of its meetings indicating the performance of
the schemes. The performance of the schemes is reviewed by the Board with reference to the appropriate benchmarks as
also the performance of the schemes of the competition.
For Prudential ICICI Balanced Fund, the performance of the scheme will be benchmarked with CRISIL Balanced Fund
Index. The performance of the Scheme is reviewed by the Board with the benchmark as also the performance of the
schemes of the competitions
The Managing Director brings to the notice of the Board specific factors, if any, which are impacting the performance of
any individual scheme. The Board on consideration of all relevant factors may, if necessary, give directions to AMC. Similarly,
the performance of the schemes is submitted to the Trustees. The Managing Director explains to the Trustees the details
on Schemes’ performance vis-à-vis the benchmark returns.
4) Subsequent to the issue of Circular No.MFD/CIR/9/120/2000 dated November 24, 2000, the AMC constituted an internal
committee to approve the investment in un-rated debt securities. All such investments, as and when are made, will be
placed before the Board of Directors of AMC for its review.
5) The AMC has been recording investment decisions since the receipt of instructions from SEBI, in terms of SEBI’s circular
no. MFD/CIR/ 6 / 73 /2000 dated July 27, 2000.
6) The Chief Executive Officer of the AMC shall ensure that the mutual fund complies with all the provisions of SEBI (Mutual
Fund) Regulations, 1996, as amended from time to time, including all guidelines, circulars issued in relation thereto
from time to time and that the investments made by the fund managers are in the interest of the unit holders and shall
also be responsible for the overall risk management function of the mutual fund.
7) The Fund managers shall ensure that the funds of the Scheme/ schemes are invested to achieve the investment objectives
of the schemes and in the interest of the unit holders.
Risk Factors and Special Considerations
l Mutual Funds and securities investments are subject to market risks and there is no assurance or guarantee that the
objectives of the Scheme will be achieved.
l As with any securities investment, the NAV of the Units issued under the Scheme can go up or down depending on
the factors and forces affecting the capital markets.
l Past performance of the Sponsors, AMC/Fund does not indicate the future performance of the Scheme of the Fund.
l Investment decisions made by the AMC may not always be profitable.
29

30
Prudential ICICI Mutual Fund
l
l
l
l
l
The Sponsors are not responsible or liable for any loss resulting from the operation of the Scheme beyond the
contribution of an amount of Rs 22.2 lacs collectively made by them towards setting up the Fund and such other
accretions and additions to the corpus set up by the Sponsors.
Prudential ICICI Balanced Fund is the name of the Scheme and does not in any manner indicate either the quality of
the Scheme or its future prospects and returns.
The NAVs of Prudential ICICI Balanced Fund may be affected by changes in the general market conditions, factors
and forces affecting capital markets in particular, level of interest rates, various market related factors and trading
volumes, settlement periods and transfer procedures.
In the event of receipt of inordinately large number of redemption requests or of a restructuring of the Scheme’s
portfolios, there may be delays in the redemption of Units. Please see Page 80 for “Right to Limit Redemptions” in
this Offer Document.
Investors in the Scheme are not being offered any guaranteed returns.
l The Scheme, under normal circumstances, proposes to invest about 60% of its corpus in equity and equity related
securities and about 40% in debt and money market securities. Trading volumes, settlement periods and transfer
procedures may restrict the liquidity of these investments. Different segments of the Indian financial markets have
different settlement periods and such periods may be extended significantly by unforeseen circumstances. The inability
of the Scheme to make intended securities purchases due to settlement problems could cause the Scheme to miss
certain investment opportunities. By the same rationale, the inability to sell securities held in the Scheme’s portfolio
due to the absence of a well developed and liquid secondary market for debt securities would result, at times, in
potential losses to the Scheme, in case of a subsequent decline in the value of securities held in the Scheme’s portfolio.
l As per the prevailing tax laws, in respect of ‘Open Ended Equity Oriented Scheme’, where more than 50% of the
corpus of the Scheme is invested in equity shares, per provisions of Section 115R of the Act, no additional income
tax is payable on the income distributed by the Schemes for the period upto March 31, 2004. In the event that
investible funds of more than 50% of the total proceeds of the scheme are not invested in equity shares of domestic
companies, the Fund will be liable to pay tax on such distributed income by the Scheme as per the provisions of the
Finance Act, 2003.
l From time to time and subject to the regulations, the sponsors, the mutual funds and investment Companies managed
by them, their affiliates, their associate companies, subsidiaries of the sponsors and the AMC may invest in either
directly or indirectly in the scheme. The funds managed by these affiliates, associates and/ or the AMC may acquire a
substantial portion of the Scheme. Accordingly, redemption of units held by such funds, affiliates/associates and
sponsors may have an adverse impact on the units of the Scheme because the timing of such redemption may
impact the ability of other unitholders to redeem their units
The Scheme may invest in other schemes managed by the AMC or in the schemes of any other Mutual Funds,
provided it is in conformity to the investment objectives of the Scheme and in terms of the prevailing Regulations.
As per the Regulations, no investment management fees will be charged for such investments.
l The Scheme may also invest in ADRs / GDRs as permitted by Reserve Bank of India and Securities and Exchange
Board of India. To the extent that some part of the assets of the Plans may be invested in securities denominated in
foreign currencies, the Indian Rupee equivalent of the net assets, distributions and income may be adversely affected
by the changes in the value of certain foreign currencies relative to the Indian Rupee. The repatriation of capital also
may be hampered by changes in regulations concerning exchange controls or political circumstances as well as the
application to it of other restrictions on investment.
l The Scheme may also use various derivatives and hedging products from time to time, as would be available and
permitted by SEBI, in an attempt to protect the value of the portfolio and enhance Unitholders’ interest. In case the
Scheme utilizes any derivatives under the Regulations, the Scheme may, in certain situations, be exposed to price
risks.
l The Fund may use derivatives instruments like Stock Index Futures, Interest Rate Swaps, Forward Rate Agreements or
other derivative instruments for the purpose of hedging and portfolio balancing, as permitted under the Regulations
and guidelines. Usage of derivatives will expose the Scheme to certain risks inherent to such derivatives.
Trading in Derivatives
SEBI vide its circular no. MFD/CIR/011/061/2000 dated February 1, 2000 has permitted all the mutual funds to participate
in the derivatives trading subject to observance of guidelines issued by SEBI in this behalf. In terms of SEBI guidelines,
trading in derivatives by the mutual funds should be restricted to hedging and portfolio balancing and the Fund has to
comply with the prescribed disclosure requirements.
The Board of Directors of Prudential ICICI Trust Limited (The Trustee) at its meeting held on May 30, 2000 approved the
proposal for the AMC using the various portfolio hedging techniques and adopting the risk control mechanism under
the portfolios of the schemes of the Fund.
Accordingly, the Fund may use derivatives instruments like Stock Index Futures, Interest Rate Swaps, Forward
Rate Agreements or such other derivative instruments as may be introduced from time to time for the purpose
of hedging and portfolio balancing, as permitted under the Regulations and guidelines.

Prudential ICICI Balanced Fund
Exposure to Derivatives:
The respective schemes of Prudential ICICI Mutual Fund shall, under normal circumstances, not have exposure of more
than 25% of its net assets in the derivative instruments. The AMC in times of market volatility and other abnormal
market conditions increase such exposure in derivative instruments up to maximum of 50% of net assets under each
scheme with a view to protecting the interests of the investors under the schemes.
The following information provides a basic idea as to the nature of the derivative instruments proposed to be used by
the Fund and the risks attached there with.
Advantages of Derivatives:
The volatility in Indian markets both in debt and equity has increased over last few months. Derivatives provide unique
flexibility to the Scheme to hedge part of its portfolio. Some of the advantages of specific derivatives are as under :
Index Futures :
a) Investment in Stock Index Futures can give exposure to the index without directly buying the individual stocks.
Appreciation in Index stocks can be effectively captured through investment in Stock Index Futures.
b) Subject to Regulations, the Fund can sell futures to hedge against market movements effectively without actually
selling the stocks it holds.
Interest Rate Swaps and Forward rate Agreements:
Bond markets in India are not very liquid. Investors run the risk of illiquidity in such markets. Investing for short-term
periods for liquidity purposes has its own risks. Investors can benefit if the Fund remains in call market for the liquidity
and at the same time take advantage of fixed rate by entering into a swap. It adds certainty to the returns without
sacrificing liquidity.
The following are illustrations how derivatives work. :
Basic Structure of an Interest Rate Swap
Floating Interest Rate
Counter Party 1 Fixed Interest Rate
Counter Party 2
In the above illustration,
Basic Details: Fixed to floating swap
Notional Amount: Rs. 5 Crores
Benchmark: NSE MIBOR
Deal Tenor: 3 months (say 91 days)
Documentation : International Securities Dealers Association(ISDA).
Let us assume the fixed rate decided was 10%
At the end of three months, the following exchange will take place:
Counter party 1 pays: compounded call rate for three months, say 9.90%
Counter party 2 pays fixed rate: 10%
In practice, however, the difference of the two amounts is settled. Counter party 2 will pay Rs 5 Crores *0.10%* 91/365
= Rs. 12,465.75
Thus the trade off for the Fund will be the difference in call rate and the fixed rate payment and this can vary with the call
rates in the market. Please note that the above example is given for illustration purposes only and the actual returns may
vary depending on the terms of swap and market conditions.
Basic Structure of a Stock Index Future
The Stock Index futures are instruments designed to give exposure to the equity market indices. The Stock Exchange,
Mumbai and The National Stock Exchange have started trading in index futures of 1, 2 and 3-month maturities. The
pricing of an index future is the function of the underlying index and short-term interest rates.
Example:
Assumptions:
1 month BSE 30 Future
Spot Index: 4900
Future Price on day 1: 4920
Fund buys 10,000 futures
Date of settlement
31

Prudential ICICI Mutual Fund
Future price = Closing spot price = 4950
Profits for the Fund = (4950-4920)*10000 = Rs 300,000
Please note that the above example is given for illustration purposes only.
The net impact for the Fund will be in terms of the difference between the closing price of the index and cost price
(ignoring margins for the sake of simplicity). Thus, it is clear from the example that the profit or loss for the Fund will be
the difference of the closing price (which can be higher or lower than the purchase price) and the purchase price. The
risks associated with index futures are similar to the one with equity investments. Additional risks could be on account of
illiquidity and hence mispricing of the future at the time of purchase.
Risks attached with the use of derivatives:
As and when the schemes trade in the derivatives market there are risk factors and issues concerning the use of derivatives
that investors should understand. Derivative products are specialized instruments that require investment techniques
and risk analyses different from those associated with stocks and bonds. The use of a derivative requires an understanding
not only of the underlying instrument but of the derivative itself. Derivatives require the maintenance of adequate controls
to monitor the transactions entered into, the ability to assess the risk that a derivative adds to the portfolio and the
ability to forecast price or interest rate movements correctly. There is the possibility that a loss may be sustained by the
portfolio as a result of the failure of another party (usually referred to as the “counter party”) to comply with the terms
of the derivatives contract. Other risks in using derivatives include the risk of mis pricing or improper valuation of derivatives
and the inability of derivatives to correlate perfectly with underlying assets, rates and indices.
Thus, derivatives are highly leveraged instruments. Even a small price movement in the underlying security could have a
large impact on their value. Also, the market for derivative instruments is nascent in India.
Valuation of Derivative Products :
a) The traded derivatives shall be valued at market price in conformity with the stipulations of sub clauses (i) to (v) of
clause 1 of the Eighth Schedule to the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, as
amended from time to time.
b) The valuation of untraded derivatives shall be done in accordance with the valuation method for untraded investments
prescribed in sub clauses (i) and (ii) of clause 2 of the Eighth Schedule to the Securities and Exchange Board of India
(Mutual Funds) Regulations, 1996 as amended from time to time.
12) Subject to the Regulations and the applicable guidelines, the Scheme and the Plans thereunder may, if the Trustee permits,
engage in stock lending.
Advantages and Risks attached with investments in ADRs/GDRs:
It is AMCs belief that the investment in ADRs/GDRs/overseas securities offer new investment and portfolio diversification
opportunities into multi-market and multi-currency products. However, such investments also entail additional risks. Such
investment opportunities may be pursued by the AMC provided they are considered appropriate in terms of the overall investment
objectives of the schemes. Since the Schemes would invest only partially in ADRs/GDRs/overseas securities, there may not be
readily available and widely accepted benchmarks to measure performance of the Schemes. To manage risks associated with
foreign currency and interest rate exposure, the Fund may use derivatives for efficient portfolio management including hedging
and in accordance with conditions as may be stipulated by SEBI/RBI from time to time.
To the extent that the assets of the Schemes will be invested in securities denominated in foreign currencies, the Indian Rupee
equivalent of the net assets, distributions and income may be adversely affected by the changes in the value of certain foreign
currencies relative to the Indian Rupee. The repatriation of capital also may be hampered by changes in regulations concerning
exchange controls or political circumstances as well as the application to it of the other restrictions on investment.
Offshore investments will be made subject to any/all approvals, conditions thereof as may be stipulated by SEBI/RBI and provided
such investments do not result in expenses to the Fund in excess of the ceiling on expenses prescribed by and consistent with
costs and expenses attendant to international investing. The Fund may, where necessary, appoint other intermediaries of repute
as advisors, custodian/sub-custodians etc. for managing and administering such investments. The appointment of such
intermediareis shall be in accordance with the applicable requirements of SEBI and within the permissible ceilings of expenses.
The fees and expenses would illustratively include, besides the investment management fees, custody fees and costs, fees of
appointed advisors and sub-managers, transaction costs, and overseas regulatory costs.
Risks associated with stock lending : The risks in lending portfolio securities, as with other extensions of credit, consist of the
failure of another party, in this case the Approved Intermediary, to comply with the terms of agreement entered into between the
lender of securities i.e. the Scheme and the approved intermediary. Such failure to comply can result in the possible loss of rights
in the collateral put up by the borrower of the securities, the inability of the Approved Intermediary to return the securities
deposited by the lender and the possible loss of any corporate benefits accruing to the lender from the securities deposited with
the Approved Intermediary.
32

Prudential ICICI Balanced Fund
h) Investment Restrictions for the Scheme
Pursuant to the Regulations and amendments thereto, the following investment restrictions are presently applicable to
the Scheme:
1) The initial issue expenses in respect of any Scheme will not exceed 6% of the Funds raised under that Scheme.
2) A mutual fund scheme shall not invest more than 15% of its NAV in debt instruments issued by a single issuer
which are rated not below investment grade by a credit rating agency authorised to carry out such activity under the
SEBI Act. Such investment limit may be extended to 20% of the NAV of the scheme with the prior approval of the
Board of Trustees and the Board of asset management company. Provided that, such limit shall not be applicable for
investments in government securities and money market instruments. Provided further that investment within such
limit can be made in mortgage backed securitised debt which are rated not below investment grade by a credit
rating agency registered with SEBI.
3) A mutual fund scheme shall not invest more than 10% of its NAV in un rated debt instruments issued by a single
issuer and the total investment in such instruments shall not exceed 25% of the NAV of the scheme. All such
investments shall be made by an internal committee constituted by AMC to approve the investment in un-rated
debt securities in terms of the parameters approved by the Board of Trustees and the Board of asset management
company Otherwise such investments shall be made with the prior approval of the Board of Trustees and the Board
of asset management company or the Committee of Directors constituted in this behalf.
Debentures, irrespective of any residual maturity period (above or below one year), shall attract the investment
restrictions as applicable for debt instruments as specified under Clause 2 & 3 above.
4) The Fund under all its schemes shall not own more than 10% of any company’s paid up capital carrying voting
rights.
5) Transfer of investments from one Scheme to another Scheme in the same Mutual Fund is permitted provided:
a) Such transfers are done at the prevailing market price for quoted instruments on spot basis (spot basis shall
have the same meaning as specified by a Stock Exchange for spot transactions); transfer of unquoted securities
will be made as per the policies laid down by the Trustees from time to time; and
b) The securities so transferred shall be in conformity with the investment objective of the Scheme to which such
transfer has been made.
6) The Scheme may invest in other schemes under the same AMC or any other Mutual Fund without charging any fees,
provided the aggregate inter-scheme investment made by all the schemes under the same management or in schemes
under management of any other asset management company shall not exceed 5% of the Net Asset Value of the
Fund.
7) The Fund shall get the securities purchased transferred in the name of the Fund on account of the concerned Scheme,
wherever investments are intended to be of a long-term nature.
8) The Fund may buy and sell securities on the basis of deliveries and will not make any short sales or engage in carry
forward transaction or badla finance, except as and when permitted by the RBI in this regard (for example “when
issued market” transactions). Provided that mutual funds shall enter into derivatives transactions in a recognised
stock exchange for the purpose of hedging and portfolio balancing, in accordance with the guidelines issued by
SEBI.
9) All the Scheme’s investments will be in transferable securities (whether in capital markets or money markets) or bank
deposits or in money at call as in privately placed debentures as securitised debt.
10) No loans for any purpose can be advanced by the Scheme.
11) The Fund may lend securities in accordance with stock lending scheme of SEBI.
12) The mutual fund scheme shall not make any investment in;
a) any unlisted security of an associate or group company of the sponsor; or
b) any security issued by way of private placement by an associate or group company of the Sponsor; or
c) the listed securities of group companies of the Sponsor which is in excess of 25% of the net assets
13) No mutual fund scheme shall invest more than 10% of its NAV in equity shares of any one issuer (limit not applicable
for index or sector specific schemes).
14) No open-ended mutual fund scheme shall invest more than 5% of its NAV in unlisted equity shares or equity related
instruments.
15) The Fund shall not borrow except to meet temporary liquidity needs of the Fund for the purpose of repurchase
redemption of units or payment of interest and dividend to the Unitholders, provided that the Fund shall not borrow
more than 20% of the net assets of the individual Scheme and the duration of the borrowing shall not exceed a
period of 6 months.
16) Pending deployment of funds of a Scheme in securities in terms of investment objectives of the Scheme, the AMC
can invest the funds of the Scheme in short term deposits of scheduled commercial banks or in call deposits.
33

Prudential ICICI Mutual Fund
17) The Scheme may also use various hedging and derivative products from time to time, as are available and permitted
by SEBI, in an attempt to protect and enhance the interests of the Unitholders at all times.
18) The Mutual Fund having an aggregate of securities which are worth Rs.10 crores or more, as on the latest balance
sheet date, shall subject to such instructions as may be issued from time to time by the Board, settle their transactions
entered on or after January 15, 1998 only through dematerialised securities. Further, all transactions in government
securities shall be in dematerialised form.
i) Underwriting by the Fund
Subject to the Regulations, the Scheme may enter into underwriting agreements after the Fund obtains a certificate of
registration in terms of the Securities and Exchange Board of India (Underwriters) Rules and Securities and Exchange
Board of India (Underwriters) Regulations, 1993, authorizing it to carry on activities as underwriters.
The capital adequacy norms for the purpose of underwriting shall be the net assets of the Scheme and the underwriting
obligation of the Scheme shall not at any time exceed the total net asset value of the Scheme.
j) Computation of Net Asset Value
The NAV of the Units of the Scheme will be computed by dividing the net assets of the Scheme by the number of Units
outstanding on the valuation date. The Fund shall value its investments according to the valuation norms, as specified in
Schedule VIII of the Regulations, or such norms as may be prescribed by SEBI from time to time. The broad valuation
norms are detailed below:
1. Traded Securities:
(i) The securities shall be valued at the last quoted closing price on the stock exchange.
(ii) When the securities are traded on more than one recognised stock exchange, the securities shall be valued at the
last quoted closing price on the stock exchange where the security is principally traded.
(iii) When on a particular valuation day, a security has not been traded on the Principal stock exchange, the value at
which it is traded on another stock exchange may be used.
(iv) When a security (other than debt securities) is not traded on any stock exchange on a particular valuation day, the
value at which it was traded on the selected stock exchange, as the case may be, on the earliest previous day may be
used provided such date is not more than thirty days prior to valuation date.
When a debt security (other than Government Securities) is not traded on any stock exchange on any particular valuation
day, the value at which it was traded on the principal stock exchange or any other stock exchange, as the case may be, on
the earliest previous day may be used provided such date is not more than fifteen days prior to valuation date. When a
debt security (other than Government Securities) is purchased by way of private placement, the value at which it was
bought may be used for a period of fifteen days beginning from the date of purchase.
2. Thinly Traded Securities:
(i) Thinly Traded Equity/Equity Related Securities:
“When trading in an equity/equity related security (such as convertible debentures, equity warrants, etc.) in a month is
both less than Rs. 5 lacs and the total volume is less than 50,000 shares, it shall be considered as a thinly traded security
and valued accordingly”.
For example, if the volume of trade is 100,000 and value is Rs. 400,000, the share does not qualify as thinly traded. Also
if the volume traded is 40,000, but the value of trades is Rs. 600,000, the share does not qualify as thinly traded.
In order to determine whether a security is thinly traded or not, the volumes traded in all recognised stock exchanges in
India may be taken into account.
(ii) Thinly Traded Debt Securities:
A debt security (other than Government Securities) shall be considered as a thinly traded security if on the valuation date,
there are no individual trades in that security in marketable lots (currently Rs 5 crore) on the principal stock exchange or
any other stock exchange.
A thinly traded debt security as defined above would be valued as per the norms set for non-traded debt security.
3. Non Traded Securities:
When a security (other than Government Securities) is not traded on any stock exchange for a period of thirty days prior
to the valuation date, the scrip must be treated as a ‘non traded’ security.
34

Prudential ICICI Balanced Fund
VALUATION OF NON-TRADED / THINLY TRADED SECURITIES
Non traded/ thinly traded securities shall be valued “in good faith” by the asset management company on the basis of the
valuation principles laid down below:
(i) Non-traded / thinly traded equity securities:
(a) Based on the latest available Balance Sheet, net worth shall be calculated as follows:
(b) Net Worth per share = [share capital + reserves (excluding revaluation reserves) – Misc. expenditure and Debit Balance in
P&L A/c] Divided by number of Paid up Shares.
(c) Average capitalisation rate (P/E ratio) for the industry based upon either BSE or NSE data (which should be followed
consistently and changes, if any noted with proper justification thereof) shall be taken and discounted by 75% i.e. only
25% of the Industry average P/E shall be taken as capitalisation rate (P/E ratio). Earnings per share of the latest audited
annual accounts will be considered for this purpose.
(d) The value as per the net worth value per share and the capital earning value calculated as above shall be averaged and
further discounted by 10% for ill-liquidity so as to arrive at the fair value per share.
(e) In case the EPS is negative, EPS value for that year shall be taken as zero for arriving at capitalised earning.
(f) In case where the latest balance sheet of the company is not available within nine months from the close of the year,
unless the accounting year is changed, the shares of such companies shall be valued at zero.
(g) In case an individual security accounts for more than 5% of the total assets of the scheme, an independent valuer shall
be appointed for the valuation of the said security.
To determine if a security accounts for more than 5% of the total assets of the scheme, it should be valued by the
procedure above and the proportion which it bears to the total net assets of the scheme to which it belongs would be
compared on the date of valuation.
(ii)(a) Non Traded /Thinly Traded Debt Securities of Upto 182 Days to Maturity:
As the money market securities are valued on the basis of amortization (cost plus accrued interest till the beginning of
the day plus the difference between the redemption value and the cost spread uniformly over the remaining maturity
period of the instruments) a similar process should be adopted for non-traded debt securities with residual maturity of
upto 182 days, in the absence of any other standard benchmarks in the market. Debt securities purchased with residual
maturity of upto 182 days are to be valued at cost (including accrued interest till the beginning of the day) plus the
difference between the redemption value (inclusive of interest) and cost spread uniformly over the remaining maturity
period of the instrument. In case of a debt security with maturity greater than 182 days at the time of purchase, the last
valuation price plus accrued interest should be used instead of purchase cost. All other non traded Non Government
debt instruments shall be valued using the method suggested in (ii)(b).
ii)(b) Non Traded/ Thinly Traded Debt Securities of Over 182 Days to Maturity.
For the purpose of valuation, all Non Traded Debt Securities would be classified into “Investment grade” and “Non
Investment grade” securities based on their credit ratings. The non-investment grade securities would further be classified
as “Performing” and “Non Performing” assets
l All Non Government investment grade debt securities, classified as not traded, shall be valued on yield to maturity
basis as described in the applicable SEBI circular.
l All Non Government non investment grade performing debt securities would be valued at a discount of 25% to the
face value
l All Non Government non-investment grade non-performing debt securities would be valued based on the provisioning
norms.
Valuation of Unlisted Equity Shares:
Unlisted equity shares of a company shall be valued “in good faith” on the basis of the valuation principles laid down below:
a. Based on the latest available audited balance sheet, net worth shall be calculated as lower of (i) and (ii) below:
i. Net worth per share = [share capital plus free reserves (excluding revaluation reserves) minus Miscellaneous expenditure
not written off or deferred revenue expenditure, intangible assets and accumulated losses] divided by Number of
Paid up Shares.
ii. After taking into account the outstanding warrants and options, Net worth per share shall again be calculated and
shall be = [share capital plus consideration on exercise of Option/Warrants received/receivable by the Company plus
free reserves(excluding revaluation reserves) minus Miscellaneous expenditure not written off or deferred revenue
expenditure, intangible assets and accumulated losses] divided by {Number of Paid up Shares plus Number of Shares
that would be obtained on conversion/exercise of Outstanding Warrants and Options}
The lower of (i) and (ii) above shall be used for calculation of net worth per share and for further calculation in (c) below.
35

Prudential ICICI Mutual Fund
b. Average capitalisation rate (P/E ratio) for the industry based upon either BSE or NSE data (which should be followed
consistently and changes, if any, noted with proper justification thereof) shall be taken and discounted by 75% i.e. only
25% of the Industry average P/E shall be taken as capitalisation rate (P/E ratio). Earnings per share of the latest audited
annual accounts will be considered for this purpose.
c. The value as per the net worth value per share and the capital earning value calculated as above shall be averaged and
further discounted by 15% for illiquidity so as to arrive at the fair value per share.
The above methodology for valuation shall be subject to the following conditions:
i. All calculations as aforesaid shall be based on audited accounts.
ii. In case where the latest balance sheet of the company is not available within nine months from the close of the year,
unless the accounting year is changed, the shares of such companies shall be valued at zero.
iii. If the net worth of the company is negative, the share would be marked down to zero.
iv. In case the EPS is negative, EPS value for that year shall be taken as zero for arriving at capitalised earning.
v. In case an individual security accounts for more than 5% of the total assets of the scheme, an independent valuer
shall be appointed for the valuation of the said security. To determine if a security accounts for more than 5% of the
total assets of the scheme, it should be valued in accordance with the procedure as mentioned above on the date of
valuation.
vi. At the discretion of the AMC and with the approval of the trustees, an unlisted equity share may be valued at a price
lower than the value derived using the aforesaid methodology.
Valuation of securities with Put/Call Options
The option embedded securities would be valued as follows:
Securities with call option:
The securities with call option shall be valued at the lower of the value as obtained by valuing the security to final maturity and
valuing the security to call option.
In case there are multiple call options, the lowest value obtained by valuing to the various call dates and valuing to the maturity
date is to be taken as the value of the instrument.
Securities with Put option:
The securities with put option shall be valued at the higher of the value as obtained by valuing the security to final maturity and
valuing the security to put option
In case there are multiple put options, the highest value obtained by valuing to the various put dates and valuing to the maturity
date is to be taken as the value of the instruments.
Securities with both Put and Call option on the same day:
The securities with both Put and Call option on the same day would be deemed to mature on the Put/Call day and would be
valued accordingly.
(i) Government securities.
Government securities will be valued at yield to maturity based on the prevailing market rate
Illiquid Securities:
(a) Aggregate value of “illiquid securities” of scheme, which are defined as non-traded, thinly traded and unlisted
equity shares, shall not exceed 15% of the total assets of the scheme and any illiquid securities held above 15% of
the total assets shall be assigned zero value.
Provided that in case any scheme has illiquid securities in excess of 15% of total assets as on September 30, 2000
then such a scheme shall within a period of two years bring down the ratio of illiquid securities within the prescribed
limit of 15% in the following time frame:
(i) all the illiquid securities above 20% of total assets of the scheme shall be assigned zero value on September
30, 2001.
(ii) All the illiquid securities above 15% of total assets of the scheme shall be assigned zero value on September
30, 2002.
(b) All funds shall disclose as on March 31 and September 30 the scheme-wise total illiquid securities in value and
percentage of the net assets while making disclosures of half yearly portfolios to the unitholders. In the list of
investments, an asterisk mark shall also be given against all such investments, which are recognised as illiquid
securities.
(c) Mutual Funds shall not be allowed to transfer illiquid securities among their schemes w.e.f. October 1, 2000.
(d) In respect of closed ended funds, for the purposes of valuation of illiquid securities, the limits of 15% and 20%
applicable to open-ended funds should be increased to 20% and 25% respectively.
36

Prudential ICICI Balanced Fund
(e) Where a scheme has illiquid securities as at September 30, 2001 not exceeding 15% in the case of an open-ended
fund and 20% in the case of closed fund, the concessions of giving time period for reducing the illiquid security to
the prescribed limits would not be applicable and at all time the excess over 15% or 20% shall be assigned nil
value.
v) Value of “Rights” entitlement
a) Until they are traded, the value of the “rights” entitlement would be calculated as:
Vr = n/m x (P – P )
ex of
where
Vr = Value of rights
n = no. of rights Offered
m = no. of original shares held
P = Ex-Rights price
ex
P
of
= Rights Offer price
b) Where the rights are not traded pari-passu with the existing shares, suitable adjustments would be made to the
value of rights. Where it is decided not to subscribe for the rights but to renounce them and renunciations are
being traded, the rights would be valued at the renunciation value.
6. Expenses and Incomes Accrued
All expenses and incomes accrued up to the valuation date shall be considered for computation of NAV. For this purpose,
major expenses like management fees and other periodic expenses would be accrued on a day to day basis. The minor
expenses and income will be accrued on a periodic basis, provided the non daily accrual does not affect the NAV
calculations by more than 1%.
7. Changes in securities and in number of units :
Any changes in securities and in the number of units will be recorded in the books not later than the first valuation date
following the date of transaction. If this is not possible, given the frequency of NAV disclosure, the recording may be
delayed up to a period of seven days following the date of the transaction, provided as a result of such non recording,
the NAV calculation shall not be affected by more than 2%.
The valuation guidelines as outlined above are as per prevailing Regulations and are subject to change from time to time
in conformity with changes made by SEBI.
8. Valuation of Derivative Products :
The traded derivatives shall be valued at market price in conformity with the stipulations of sub clauses (i) to (v) of clause
1 of the Eighth Schedule to the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996.
The valuation of untraded derivatives shall be done in accordance with the valuation method for untraded investments
prescribed in sub clauses (i) and (ii) of clause 2 of the Eighth Schedule to the Securities and Exchange Board of India
(Mutual Funds) Regulations, 1996.
Market or Fair Value of Scheme’s investments + Current Assets
- Current Liabilities and Provision
NAV (Rs.) =_____________________________________________________
No. of Units outstanding under Scheme
The NAV of the Scheme will be calculated as of the close of every Business Day. The valuation of the Scheme’s assets and
calculation of the Scheme’s NAV shall be subject to audit on an annual basis and such regulations as may be prescribed
by SEBI from time to time.
k) Accounting Policies & Standards
In accordance with the Regulations, the AMC will follow the accounting policies and standards, as detailed below:
a) The AMC, for each Scheme, shall keep and maintain proper books of account, records and documents, so as to
explain its transactions and to disclose at any point of time the financial position of the Scheme and, in particular,
give a true and fair view of the state of affairs of the Fund.
b) For the purposes of the financial statements, the Scheme shall mark all investments to market and carry investments
in the balance sheet at market value. However, since the unrealized gain arising out of appreciation on investments
cannot be distributed, provision shall be made for exclusion of this item when arriving at distributable income.
c) Dividend income earned by the Scheme shall be recognized, not on the date the dividend is declared, but on the
date the share is quoted on an ex-dividend basis. For investments which are not quoted on the stock exchange,
dividend income would be recognized on the date of declaration of dividend.
37

Prudential ICICI Mutual Fund
d) In respect of all interest-bearing investments, income shall be accrued on a day to day basis as it is earned. Therefore,
when such investments are purchased, interest paid for the period from the last interest due date up to the date of
purchase should not be treated as a cost of purchase but shall be debited to Interest Recoverable Account. Similarly,
interest received at the time of sale for the period from the last interest due date up to the date of sale must not be
treated as an addition to sale value but shall be credited to Interest Recoverable Account.
e) In determining the holding cost of investments and the gains or loss on sale of investments, the “average cost”
method shall be followed for each security.
f) Transactions for purchase or sale of investments shall be recognized as of the trade date and not as of the settlement
date, so that the effect of all investments traded during a financial year are recorded and reflected in the financial
statements for that year. Where investment transactions take place outside the stock market, for example, acquisition
through private placement or purchases or sales through private treaty, the transaction would be recorded, in the
event of a purchase, as of the date on which the Scheme obtains an enforceable obligation to pay the price or, in
the event of a sale, when the Scheme obtains an enforceable right to collect the proceeds of sale or an enforceable
obligation to deliver the instruments sold.
g) Bonus shares to which the Scheme becomes entitled shall be recognized only when the original shares on which the
bonus entitlement accrues are traded on the stock exchange on an ex-bonus basis. Similarly, rights entitlements
shall be recognized only when the original shares on which the right entitlement accrues are traded on the stock
exchange on an ex-right basis.
h) Where income receivable on investments has been accrued and has not been received for a period of 12 months
beyond the due date, provision shall be made by debit to the revenue account for the income so accrued and no
further accrual of income shall be made in respect of such investments.
i) When Units are sold in the Scheme, an appropriate part of the sale proceeds shall be credited to an Equalization
Account and when units are repurchased an appropriate amount shall be debited to Equalization Account. The net
balance on this account shall be credited or debited to the Revenue Account. The balance on the Equalization Account
debited or credited to the Revenue Account shall not decrease or increase the net income of the Fund but is only an
adjustment to the distributable surplus. It shall therefore be reflected in the Revenue Account only after the net
income of the Fund is determined.
j) When Units are sold, after considering the equalization as above, the difference between the sale price and the face
value of the Unit, if positive, shall be credited to reserves and if negative, shall be debited to reserve, the face value
being credited to Capital Account. Similarly, when the Units are repurchased, after considering the equalization as
above, the difference between the purchase price and face value of the Unit, if positive, shall be debited to reserves
and, if negative, shall be credited to reserves, the face value being debited to the Capital Account.
k) The cost of investments acquired or purchased shall include brokerage, stamp charges and any charge customarily
included in the broker’s bought note. In respect of privately placed debt instruments any front-end discount offered
shall be reduced from the cost of the investment.
l) Underwriting commission shall be recognized 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 merely the portion applicable
to the devolvement shall be reduced from the cost of the investment.
m) An asset shall be classified as non-performing if the interest and/or principle amount have not been received or
remained outstanding for one quarter from the date such income/installment have fallen due and relevant guidelines
for identification and provisioning for non-performing assets for mutual fund will be applicable.
The accounting policies and standards outlined above are as per the existing Regulations and are subject to change as
per changes in the Regulations.
Guidelines For Identification and Provisioning for Non Performing Assets (Debt Securities) For Mutual Funds:
(A) Definition of a Non Performing Asset (NPA)
An ‘asset’ shall be classified as non performing, if the interest and/or principal amount have not been received or
remained outstanding for one quarter from the day such income / instalment has fallen due.
(B) Effective date for classification and provisioning of NPAs:
The definition of NPA will be applied after a quarter past due date of the interest. For e.g. if the due date for interest
is 30.06.2000, it will be classified as NPA from 01.10.2000.
(C) Treatment of income accrued on the NPA and further accruals
After the expiry of the 1 st quarter from the date the income has fallen due, there will be no further interest accrual
on the asset i.e. if the due date for interest falls on 30.06.2000 and if the interest is not received, accrual will
continue till 30.09.2000 after which there will be no further accrual of income. In short, taking the above example,
from the beginning of the 2 nd quarter there will be no further accrual on income.
On classification of the asset as NPA from a quarter past due date of interest, all interest accrued and recognized in
the books of accounts of the Fund till the date, should be provided for. For e.g. if interest income falls due on
38

Prudential ICICI Balanced Fund
30.06.2000, accrual will continue till 30.09.2000 even if the income as on 30.06.2000 has not been received. Further,
no accrual will be done from 01.10.2000 onwards. Full provision will also be made for interest accrued and
outstanding as on 30.06.2000.
(D) Provision for NPAs – Debt Securities.
Both secured and unsecured investments once they are recognized as NPAs call for provisioning in the same manner
and where these are related to close ended scheme the phasing would be such that to ensure full provisioning prior
to the closure of the scheme or the scheduled phasing which ever is earlier.
The value of the asset must be provided in the following manner or earlier at the discretion of the fund. Fund will
not have discretion to extend the period of provisioning. The provisioning against the principal amount or instalments
should be made at the following rates irrespective of whether the principal is due for repayment or not.
l 10% of the book value of the asset should be provided for after 6 months past due date of interest i.e. 3
months form the date of classification of the asset as NPA.
l 20% of the book value of the asset should be provided for after 9 months past due date of interest i.e. 6
months from the date of classification of the asset as NPA.
l Another 20% of the book value of the assets should be provided for after 12 months past due date of interest
i.e. 9 months form the date of classification of the asset as NPA.
l Another 25% of the book value of the assets should be provided for after 15 months past due date of interest
i.e. 12 months from the date of classification of the asset as NPA.
l The balance 25% of the book value of the asset should be provided for after 18 months past due date of the
interest i.e. 15 months form the date of classification of the assets as NPA.
Book value for the purpose of provisioning for NPAs shall be taken as a value determined as per the prescribed valuation
method.
This can be explained by an illustration:
Let us consider that interest income is due on a half yearly basis and the due date falls on 30.06.2000 and the interest is
not received till 1 st quarter after due date i.e. 30.09.2000. This provisioning will be done in following phased manner:
10% provision 01.01.2001 6 months past due date of interest i.e. 3 months
form the date of classification of asset as
NPA (01.10.2000)
20% provision 01.04.2001
20% provision 01.07.2001
25% provision 01.10.2001
25% provision 01.01.2002
Thus, 1 1/2; years past the due date of income or 1 1/4; year from the date of classification of the ‘asset’ as an NPA, the
‘asset’ will be fully provided for. If any instalment is fallen due, during the period of interest default, the amount of
provision should be instalment amount or above provision amount, whichever is higher.
(E) Reclassification of assets:
Upon reclassification of assets as ‘performing assets’:
1. In case a company has fully cleared all the arrears of interest, the interest provisions can be written back in full.
2. The asset will be reclassified as performing on clearance of all interest arrears and if the debt is regularly serviced
over the next two quarters.
3. In case the company has fully cleared all the arrears of interest, the interest not credited on accrual basis would be
credited at the time of receipt.
4. The provision made for the principal amount can be written back in the following manner: -
l 100% of the asset provided for in the books will be written back at the end of the 2 nd quarter where the
provision of principal was made due to the interest defaults only.
l 50% of the asset provided for in the books will be written back at the end of the 2 nd quarter and 25% after
every subsequent quarter where both installments and interest were in default earlier.
5. An asset is reclassified as ‘standard asset’ only when both overdue interest and overdue installments are paid in full
and there is satisfactory performance for a subsequent period of 6 months.
(F) Receipt of past dues :
When the fund has received income/principal amount after their classifications as NPAs;
l For the next 2 quarters, income should be recognized on cash basis and thereafter on accrual basis. The asset will be
continued to be classified as NPA for these two quarters.
39

Prudential ICICI Mutual Fund
l During this period of two quarters although the asset is classified as NPA no provision needs to be made for the
principal if the same is not due and outstanding
l If part payment is received towards principal, the asset continues to be classified as NPA and provisions are continued
as per the norms set at (D) above. Any excess provision will be written back.
(G) Classification of Deep Discount Bonds as NPAs :
Investments in Deep Discount Bonds can be classified as NPAs, if any two of the following conditions are satisfied:
l If the rating of the Bond comes down to grade ‘BB’ or below.
l If the company is defaulting in their commitments in respect of other assets, if available.
l Full Net worth erosion.
Provision should be made as per the norms set at (D) above as soon as the asset is classified as NPA.
Full provision can be made if the rating comes down to grade ‘D’
(H) Reschedulement of an asset :
In case any company defaults either interest or principal amount and the fund has accepted a Reschedulement of the
schedule of payments, then the following practice may be adhered to:
(i) In case it is a first Reschedulement and only interest is in default, the status of the asset namely, ‘NPA’ may be
continued and existing provisions should not be written back. This practice should be continued for two quarters of
regular servicing of the debt. Thereafter, this be classified as ‘performing asset’ and the interest provided may be
written back.
(ii) If the Reschedulement is done due to default in interest and principal amount, the asset should be continued as
non-performing for a period of 4 quarters, even though the asset is continued to be serviced during these 4 quarters
regularly. Thereafter, this can be classified as ‘performing asset’ and all the interest provided till such date should be
written back.
(iii) If the Reschedulement is done for a second/third time or thereafter, the characteristic of NPA should be continued
for eight quarters of regular servicing of the debt. The provision should be written back only after it is reclassified as
‘performing asset’.
(I) Disclosure in the Half Yearly Portfolio Reports :
The mutual funds shall make scripwise disclosures of NPAs on half yearly basis along with the half yearly portfolio disclosure.
The total amount of provisions made against the NPAs shall be disclosed in addition to the total quantum of NPAs and
their proportion of the assets of the mutual fund scheme. In the list of investments an asterisk mark shall be given
against such investments which are recognized as NPAs. Where the date of redemption of an investment has lapsed, the
amount not redeemed shall be shown as ‘Sundry Debtors’ and not investment provided that where an investment is
redeemable by installments that will be shown as an investment until all installments have become overdue.
(J) Effective date for implementation to the above norms :
The above norms have been implemented by the Fund with effect from 01.10.2000.
40

Prudential ICICI Balanced Fund
SECTION III
UNITS & THE OFFER ON ONGOING BASIS
General Information
a) Minimum Subscription Amount
During the Initial Offer Period of the Scheme, the total minimum subscription amount prescribed in terms of the earlier
offer document was Rs.1 crore.
b) Offer Price for On-going subscriptions
The units of the Scheme are available for subscription at Applicable NAV based prices, subject to entry load provisions.
Please refer to page 65 for details of the load structure.
c) Minimum Amount for Application
The minimum application amount for the Scheme is:
Scheme Minimum Application Amount Additional investment in multiples of:
Prudential ICICI Balanced Fund Rs.5000 Rs.500
(plus in multiples of Re.1)
d) Initial Issue Expenses
The initial issue expenses charged to the Scheme were limited to 1% of the amount mobilised under the Scheme during
the Initial Offer Period. Expenses over and above this limit were borne by the AMC.
The details of the schemes launched prior to the date of this document and the Initial Issue Expenses charged thereunder
are as follows :
Name of the Scheme Date of launch Initial Issue Expenses charged to the
Scheme (as per the disclosure made
in the Offer Documents)
Prudential ICICI Income Plan June 4, 1998 Nil
Prudential ICICI Growth Plan June 4, 1998 Nil
Prudential ICICI Liquid Plan June 4, 1998 Nil
Prudential ICICI FMCG Fund February 15, 1999 1%
Prudential ICICI Tax Plan July 9, 1999 1%
Prudential ICICI Gilt Fund July 21, 1999 Nil
Prudential ICICI Balanced Fund September 20, 1999 1%
Prudential ICICI Technology Fund January 7, 2000 1.75%
Prudential ICICI Monthly Income Plan September 28, 2000 Nil
Prudential ICICI Fixed Maturity Plan December 20, 2000 Nil
Prudential ICICI Gilt Treasury - April 26, 2001 Nil
1 Year Plus Plan
Prudential ICICI Child Care Plan July 16, 2001 Gift Plan : 2.50%
Study Plan: 1.50%
Prudential ICICI Short Term Plan October 18, 2001 Nil
Prudential ICICI Index Fund February 15, 2002 1.50%
Prudential ICICI Sweep Plan February 27, 2002 Nil
Prudential ICICI FMP Yearly- Series 5 March 22, 2002 Nil
Prudential ICICI Long Term Plan March 26, 2002 Nil
Prudential ICICI FMP 1 Year Plus Plan June 27, 2002 Nil
– Series 6
Prudential ICICI FMP One Year Plus August 19, 2002 Nil
Plan - Series 7
Prudential ICICI FMP One Year Plus September 16, 2002 Nil
Plan – Series 8
Prudential ICICI Flexible Income Plan September 16, 2002 Nil
Prudential ICICI Dynamic Plan October 7, 2002 2.50%*
SENSEX Prudential ICICI Exchange January 6, 2003 1.00%
Traded Fund
Prudential ICICI FMP One Year Plus March 17, 2003 Nil
Plan – Series 12
Prudential ICICI Floating Rate Fund March 28, 2003 Nil
Prudential ICICI Flexible May 22, 2003 Nil
Income Plus Plan
* Actual expenses charged to this scheme were limited to 1.33%.
41

Prudential ICICI Mutual Fund
Given below are the details of actual aggregate issue expenses incurred under the above mentioned funds.
(% of amount mobilized)
Category of Expenses Liquid, FMCG Tax Gilt Fund Balanced Technology
Income Fund Plan Fund Fund
and Growth
Plans
Collections During IPO (Rs in crores) 173 71.60 50.76 150.01 197.58 509.00
Marketing, promotion and advertisement 1.80 1.40 0.33 0.15 0.45 0.27
Brokerage and commission 0.09 0.93 1.06 0.02 1.01 1.49
Registrar, bank and professional charges 0.05 0.12 0.04 0.01 0.01 0.04
Total 1.94 2.45 1.43 0.18 1.47 1.80
(% of amount mobilized)
Category of Expenses Monthly Fixed Gilt Fund – Child Short Flexible Dynamic
Income Maturity Treasury Care Term Income Plan
Plan Plan 1 Year Plan Plan Plan
Plus Plan
Collections During IPO
(Rs in crores) 48.67 80.31 100.037 10.62 127.94 243.83 17.64
Marketing, promotion and 1.13 - 0.002 11.86 0.04 - -
advertisement
Brokerage and commission 0.08 - - 1.42 0.15 - 1.33
Registrar, bank and 0.61 0.005 0.004 0.63 0.01 - -
professional charges
Total 1.82 0.005 0.006 13.91* 0.20 - 1.33
* Expenses to the extent of 2.50% of the amount mobilized during the Initial Offer Period under Gift Plan and 1.50%
under Study Plan have been charged to the Scheme and the balance expenses have been borne by the AMC.
(% of amount mobilized)
Category of Expenses Index Fund Sweep Fixed Long Fixed
Plan Maturity Term Maturity –
Plan Yearly Plan One Year
Series 5
Plus Plan
Series 6
Collections During IPO 7.86 10.00 4.19 50.001 132.73
(Rs in crores) crores Lakhs crores crores Crores
Marketing, promotion and advertisement 0.15 Nil Nil Nil Nil
Brokerage and commission 0.13 Nil Nil Nil 0.23
Registrar, bank and professional charges 0.32 0.5 0.01 0.01 0.01
Total 0.6 0.5 0.01 0.01 0.24
Category of Expenses Fixed Fixed SPIcE FMP Floating Flexible
Maturity – Maturity ** One Term Income
One Year – One Year Plus Rate Plus Plan
Plus Plan Plus Plan Plan – Fund
Series 7** Series 8** Series
12**
Collections During IPO 0.01 0.01 21.28 0.01 51.05 35
(Rs in crores) Lakh Lakh Crores crores crores crores
Marketing, promotion and advertisement Nil Nil Nil Nil Nil Nil
Brokerage and commission Nil Nil Nil Nil Nil Nil
Registrar, bank and professional charges Nil Nil Nil Nil Nil Nil
Total Nil Nil Nil Nil Nil Nil
** Borne by the AMC.
42

Prudential ICICI Balanced Fund
e) Options and Investment Plans offered under the Scheme
Under the Scheme, Investors may choose either the Growth Option or the Dividend Option. Please refer to page_________
“Dividends”
(i) Growth Option
The Scheme will not declare any dividends under this option. The income earned by the Scheme will remain reinvested
in the Scheme and will be reflected in the Net Asset Value. This option is suitable for investors who are not looking
for regular income. If Units under this option are redeemed after they have been held as a capital asset for a period
of at least one year from the date of acquisition, Unitholders will get benefit of long term capital gains tax. Please
refer to page 127 on “Taxation”
(ii) Dividend Option
This option is suitable for investors seeking income through dividend declared by the Scheme. The Trustee may
approve the distribution of dividend by AMC out of the net surplus under this Option. The remaining net surplus
after considering the dividend and tax, if any, payable there on will be ploughed back in the Scheme and be reflected
in the NAV.
It is the intention of the Trustee to distribute the dividends either half yearly or annually. It should, however, be
noted that actual distribution of dividends and the frequency of distribution as indicated above are provisional and
will be entirely at the discretion of the Trustee.
For tax benefits, please refer page 127.
(iii) Dividend Reinvestment facility :
The investors opting for Dividend Option may choose to reinvest the dividend to be received by them in additional
Units of the Scheme. Under this provision, the dividend due and payable to the Unitholders will be compulsorily and
without any further act by the Unitholders reinvested in the Scheme (under the Dividend Option, at the first exdividend
NAV). The dividends so reinvested shall be constructive payment of dividends to the Unitholders and
constructive receipt of the same amount from each Unitholder for reinvestment in Units.
On reinvestment of dividends, the number of units to the credit of Unitholder will increase to the extent of the
dividend reinvested divided by the NAV applicable as explained above. There shall, however, be no entry load on
the dividends so reinvested.
The AMC has been advised by the Statutory Auditors to the Fund that such dividends, which are reinvested, will be
tax exempt in the hands of the Unitholders.
f) Section 54EA and 54EB Investment Plans.
As per the amendments to the tax laws, as the provisions of section 54EA and 54EB are no more applicable, for fresh
subscriptions. But investments already made by the existing unitholders under the above plans will continue as per the
following provisions as follows::
Sections 54EA and 54EB of the Income-tax Act, 1961, were introduced by the Finance (No. 2) Act, 1996, with effect from
October 1, 1996 and consequently applicable to the transfer of long-term capital assets on or after that date. Sections
54EA and 54EB of the Income-tax Act, 1961 dealt with exemption from capital gains tax on the transfer of a long-term
capital asset, if within six months from the date of transfer, the net consideration / capital gains amount was invested in
the acquisition of Units of Mutual Fund referred to in clause (23D) of Section 10 of the Income-tax Act, 1961.
(i) 54EA Investment Plan.
Unitholders who chose this Plan have invested the whole or part of the net consideration arising from the transfer
of a long-term capital asset in the Units of the Scheme. The tax exemption would be proportionate to sale proceeds
invested to total proceeds. However, investors should note that the amount so invested would have to be
locked-in for a period of three years and the Units so allotted cannot be redeemed or switched to another
scheme/ option, during the lock-in period of three years. This is subject to any change that may be effected
in the Income-tax Act, 1961 or any guidelines / amendments / rules / clarifications issued by the Central
Board of Direct Taxes from time to time.
(ii) 54EB Investment Plan.
Unitholders who chose this Plan have invested the whole or part of the capital gains arising from the transfer of a
long-term capital asset in the Units of the Scheme. The tax exemption would be proportionate to sale proceeds
invested to total proceeds. However, investors should note that the amount so invested would have to be
locked-in for a period of seven years and the Units so allotted cannot be redeemed or switched to another
scheme/ option, during the lock-in period of seven years. This is subject to any change that may be effected
in the Income-tax Act, 1961 or any guidelines / amendments / rules / clarifications issued by the Central
Board of Direct Taxes from time to time.
After the prescribed lock-in period has elapsed, the Unitholders may redeem their Units at the Applicable NAV based
prices consistent with the redemption procedure stated in ‘Redemption of Units’. The difference between the amount
43

Prudential ICICI Mutual Fund
received on redemption and the original amount invested will be subject to the capital gains tax as per Section 112
of the Income -tax Act, 1961.
For further details, please refer to the section on Tax Benefits on page 127.
g) Pledge of Units for loans
The Units can be pledged by the Unitholders as security for raising loans subject to the conditions of the lending institution.
The Registrar will take note of such pledge / charge in its records.
h) Systematic Investment Plan (SIP) .
The Unitholders of the Scheme can benefit by investing specific Rupee amounts periodically, for a continuous period.
The SIP allows the investors to invest a fixed amount of Rupees every month or quarter for purchasing additional Units of
the Scheme at NAV based prices. Investors can enroll themselves for SIP in the Scheme by ticking appropriate box on the
application form or by subsequently making a written request to that effect to the Registrar.
The Unitholders opting for SIP may begin their investment with an amount of Rs.1,000 in the Scheme.
The Unitholders who wish to invest on a monthly basis can invest a minimum of Rs.1000 or multiples thereof on a
monthly basis by providing the Registrar with at least eight post-dated cheques of Rs. 500 each. The cheques should be
dated 7 th or the 10 th of the respective months.
The Unitholders wishing to invest on a quarterly basis must provide the Registrar or the Customer Service Centre with at
least 4 post-dated cheques, for a minimum of Rs.1000 each.
The cheques should be drawn in favour of “Prudential ICICI Balanced Fund” and crossed “Account Payee Only”, and
must be payable at the centre where the Customer Service Centres of AMC are located. On receipt of the post-dated
cheques, the Registrar will send a letter to the Unitholder confirming that his/her name has been included in the Systematic
Investment Plan. The cheques will be presented on the dates mentioned on the cheque and subject to realization, Units
will be allotted at the Purchase Price on the date of receipt of advice about the net realization amount of the cheque.
Within 3 Business Days of such allotment, a fresh Account Statement/ Transaction Confirmation will be mailed to the
Unitholder, indicating the new balance to his/her credit in the Account. An investor will have the right to discontinue the
Systematic Investment Plan, subject to giving 14 day(s) prior notice to the Registrar.
i) Systematic Withdrawal Plan (SWP) .
Unitholders of the Scheme have the benefit of enrolling themselves in the Systematic Withdrawal Plan. The SWP allows
the Unitholder to withdraw a specified sum of money each month from his investments in the Scheme. SWP is ideal for
investors seeking a regular inflow of funds for their needs. It is also ideally suited to retirees or individuals who wish to
invest lumpsum and withdraw from the investment over a period of time. SWP shall not be available to investors
under the 54EA and 54EB plans until the expiry of the 3 or 7 year lock in period.
The minimum amount which the Unitholder can withdraw is Rs.500 and in multiples of Rs.500 thereof. The Unitholder
may avail of this plan by sending a written request to the Registrar. This plan will be available on an on-going basis.
The amount thus withdrawn by redemption will be converted into Units at Applicable NAV based prices and the number
of Units so arrived at will be subtracted from the Units balance to the credit of that Unitholder. The Fund may close a
Unitholder’s account if the balance falls below Rs.5,000 and the investor fails to invest sufficient funds to bring the value
of the account up to Rs.5,000 within 30 days, after a written intimation in this regard is sent to the Unitholder.
Unitholders may change the amount indicated in the SWP, subject to a minimum amount of Rs.500 and in multiples
thereof. The SWP may be terminated on a written notice by a Unitholder of the Scheme and it will terminate automatically
if all Units are liquidated or withdrawn from the account or upon the Funds receipt of notification of death or incapacity
of the Unitholder.
j) Flexible Lifetime Investment Programme
The ability to switch part or all of a Unitholder’s investments between the open ended Schemes offered by the Fund is an
important feature of this offer. Investors may choose to alter the allocation of their investment among the Schemes in
order to meet their changed investment needs, risk profiles or changing circumstances during their lifetime. A Unitholder
is therefore able to tailor his / her investment to his / her specific situation.
k) How to Switch
On an on-going basis, the Unitholders under the Scheme have the option to switch all or part of their investment from
the Scheme to any of the other open ended schemes offered by the Fund which is available for investment at that time,
subject to prevailing load structure. To effect a switch, a Unitholder must provide clear instructions. A request for a
switch may be specified either in terms of amount or in terms of the number of Units of the scheme from which the
switch is sought. Such instructions may be provided in writing or by completing the Switch Request Slip provided in the
transaction booklet and lodging the same on any Business Day at any of the Investor Service Centers. An Account
Statement/ Transaction Confirmation reflecting the new holdings will be despatched to the Unitholders within 3 Business
Days of completion of switch transaction. With the prior consent of the Unitholder, the account statement will be sent by
e-mail only.
44

Prudential ICICI Balanced Fund
The switch will be effected by redeeming Units from the scheme in which the Units are held and investing the net proceeds
in the other scheme(s), subject to the minimum balance and the terms and conditions applicable for the respective
scheme(s).
The price at which the Units will be switched out of the scheme will be based on the Applicable NAV of the relevant
scheme(s) and considering any prevalent exit/entry/ combination of entry and exit loads for switches.
At present, no entry load will be payable in respect of switch transaction from one equity scheme of Fund to another
equity scheme of Fund.
Investors should note that the amount invested under 54EA and 54EB Investment Plans would have to be locked-in for a
period of three years and seven years respectively and the Units so allotted cannot be switched to another scheme/option
during the lock-in period of three years and seven years. This is subject to any change that may be affected in the Incometax
Act, 1961 or any guidelines / amendments / rules / clarifications issued by the Central Board of Direct Taxes.
The Applicable NAV for affecting the switch out of the existing open-ended funds will be the NAV of the Business Day on
which the switch request, complete in all respects, is received by the AMC, subject to the cut-off time and other terms
specified in the offer document of the respective existing open-ended schemes.
l) Who can Invest?
The following persons are eligible and may apply for subscription to the Units of the Scheme (subject, wherever relevant,
to purchase of units of Mutual Funds being permitted under respective constitutions and relevant statutory regulations):
l Resident adult individuals either singly or jointly (not exceeding three)
l Minor through parent/lawful guardian
l Companies, Bodies Corporate, Public Sector Undertakings, association of persons or bodies of individuals and societies
registered under the Societies Registration Act, 1860 (so long as the purchase of units is permitted under the respective
constitutions)
l Religious and Charitable Trusts under the provisions of 11(5)(xii) of Income-tax Act, 1961 read with Rule 17C of
Income-tax Rules, 1962
l Partnership Firms
l Karta of Hindu Undivided Family (HUF)
l Banks & Financial Institutions
l Non-resident Indians/Persons of Indian origin residing abroad (NRIs) on full repatriation basis (subject to RBI approval)
or on non-repatriation basis
l Foreign Institutional Investors (FIIs) registered with SEBI on full repatriation basis
l Army, Air Force, Navy and other para-military funds
l Scientific and Industrial Research Organizations
l Mutual fund schemes
m) How to apply?
i) Purchase of units on on-going basis:
The Scheme is open for fresh subscriptions on an ongoing basis. Applications by new investors (i.e. other than
existing Unitholder) must be for a minimum amount of Rs.5,000 and in multiples of Re.1 thereafter. An existing
Unitholder can however purchase additional Units, subject to the minimum additional amount of Rs.500 .
The Trustee shall, have absolute discretion to accept/reject any application for purchase of Units, if in the opinion of
the Trustee, increasing the size of Scheme’s Unit capital is not in the general interest of the Unitholders, or the
Trustee for any other reason believes it would be in the best interest of the Scheme or its Unitholders to accept/reject
such an application.
a) Purchase Price
The purchase price of the Units, on an ongoing basis is based on the Applicable NAV, subject to the entry load,
if any. For Units issued on an on-going basis, at present an applicable entry load of is as follows:
i. For investments of less than Rs. 10 Lakhs : Entry load at 2.25% of applicable Net Asset Value (NAV).
ii. For investment of Rs.10 Lakhs and above but upto Rs. 3 crores: Entry load at 1.75% of applicable Net
Asset Value (NAV)
iii. For investment of Rs. 3 crores and above: Entry load is Nil.
No entry load will be charged in respect of switch transaction from one equity scheme of the Fund to
another equity scheme of the Fund.
45

Prudential ICICI Mutual Fund
ii)
Purchase Price can be calculated using the following formula:
Purchase Price = Applicable NAV * (1+ Entry Load).
Subject to the Regulations, the Trustee reserves the right to modify/alter the load
structure and may decide to introduce a differential load structure on the Units subscribed/redeemed on
any Business Day. Such changes will be applicable for prospective investments. The Trustee shall arrange to
display a notice in the Customer Service Centers of the AMC before the change of the then prevalent load
structure. The addendum detailing the changes in load structure will be attached to offer documents and
abridged offer documents. The addendum will also be circulated to all the distributors / brokers so that the
same can be attached to all the offer documents and abridged offer documents in stock. This addendum
will also be sent along with the newsletter to the unitholders immediately after the changes. Changes in
the load structure may be stamped in the acknowledgement slip issued by the Fund after the changes in
load structure. The load collected from the Unitholders under each Plan will be credited to a separate account
in the respective Plan accounts and will be offset against distribution and marketing expenses. Surplus of
load, if any, charged over planned marketing and distribution expenses to be defrayed will be credited to
the respective Plans whenever felt appropriate by the AMC.
The Fund shall ensure that the Redemption Price is not lower than 93% of the NAV and the Purchase Price
is not higher than 107% of the NAV, provided that the difference between the Redemption Price and Purchase
Price of the Units shall not exceed the permissible limit of 7% of the purchase Price, as provided for under
the Regulations.
b) Applicable NAV
Applicable NAV is the Net Asset Value per Unit at the close of the Business Day on which the application is
accepted. An application will be considered accepted on that day, subject to it being complete in all respects
and received prior to the cut- off time on that Business Day.
c) How to Purchase the Units on an on-going basis?
The application forms for the purchase of Units of the Scheme will be available at the office of the AMC, and
the Customer Service Centers. New investors can purchase Units by completing an Application Form. Existing
Unitholders may use the transaction slip for additional purchases or a new Application Form. Payment for purchase
of Units will be accepted only through a cheque or demand draft drawn payable at the centre where the
application is lodged, drawn in favour of “Prudential ICICI Balanced Fund”. All such cheques/drafts must be
crossed “Account Payee Only”.
Investors should complete the Application Form and deliver the same along with the cheque/draft at any of the
Customer Service Centres of the AMC, listed on the last page of this Document.
Outstation cheques will not be accepted under any circumstances.
As per the directives issued by SEBI, it is mandatory for applicants to mention their bank account numbers
in their applications for purchase or redemption of Units. If the Unit-holder fails to provide the Bank
mandate, the request for redemption would be considered as not valid and the Fund retains the right
to withhold the redemption until a proper bank mandate is furnished by the Unit-holder and the provision
with respect of penal interest in such cases will not be applicable/ entertained.
Under normal circumstances, an Account Statement will be mailed to the investor indicating the number of
Units purchased within 3 Business Days of the acceptance of a valid Application for purchase of Units.
In the event of non-realization of any cheque or other instrument remitted by the investor, the transaction of
crediting the Unit holder’s account will be reversed.
NRIs, FIIs
In terms of Schedule 5 of Notification no. FEMA 20/2000 dated May 3, 2000, RBI has granted general permission to
NRIs to purchase, on a repatriation basis units of domestic mutual funds. Further, the general permission is also
granted to NRIs to sell the units to the mutual funds for repurchase or for the payment of maturity proceeds, provided
that the units have been purchased in accordance with the conditions set out in the aforesaid notification.
For the purpose of this section, the term “mutual funds” is as referred to in Clause (23D) of Section 10 of Income-
Tax Act 1961.
However, NRI investors, if so desired, also have the option to make their investment on a non-repatriable basis.
FIIs :
In terms of Schedule 5 of Notification no. FEMA 20/2000 dated May 3, 2000. RBI has granted general permission to
a registered FII to purchase on a repatriation basis units of domestic mutual funds subject to the conditions set out
in the aforesaid notification. Further, the general permission is also granted to FIIs to sell the units to the mutual
funds for repurchase or for the payment of maturity proceeds, provided that the units have been purchased in
46

Prudential ICICI Balanced Fund
accordance with the conditions set out in the aforesaid notification.
For the purpose of this section, the term “mutual funds” is as referred to in Clause (23D) of Section 10 of Income-
Tax Act 1961.
iii) Mode of Payment on Repatriation basis
FIIs may pay their subscription amounts either by way of inward remittance through normal banking channels or out
of funds held in Foreign Currency Account or Non-resident Rupee Account maintained by the FII with a designated
branch of an authorized dealer with the approval of the RBI subject to the terms and conditions set out in the
aforesaid notification.
In case Indian rupee drafts are purchased abroad or from Foreign Currency Accounts or Non-resident Rupee Accounts
an account debit certificate from the Bank issuing the draft confirming the debit shall also be enclosed.
In case of NRIs and persons of Indian origin residing abroad, payment may be made by way of Indian Rupee drafts
purchased abroad and payable at Mumbai or by way of cheques drawn on Non-Resident (External) (NRE) Accounts
payable at par at Mumbai. Payments can also be made by means of rupee drafts payable at Mumbai and purchased
out of funds held in NRE Accounts / FCNR Accounts.Rupee Account of the FII maintained with a designated bank,
approved by RBI.
All cheques/drafts should be made out in favour “Prudential ICICI Balanced Fund” and crossed “Account Payee
Only”. In case Indian Rupee drafts are purchased abroad or from FCNR/NRE A/c. an account debit certificate from
the Bank issuing the draft confirming the debit shall also be enclosed.
iv) Mode of payment on Non-Repatriation basis
In case of NRIs/persons of Indian origin seeking to apply for Units on a non-repatriation basis, payments may be
made by cheques/demand drafts drawn out of Non-Resident Ordinary (NRO)/Non-Resident Special Rupee (NRSR)
accounts payable at the city where the application Form is accepted.
v) Application under Power of Attorney/ Body Corporate/Registered Society/ Trust/ Partnership
In case of an application under Power of Attorney or by a limited company, body corporate, registered society, trust
or partnership, etc., the relevant Power of Attorney or the relevant resolution or authority to make the application as
the case may be, or duly certified copy thereof, along with the memorandum and articles of association/bye-laws
must be lodged Customer Service Centres along with the Application form.
vi) Joint Applicants
In the event an Account has more than one registered owner, the first-named holder (as determined by reference to
the original Application Form) shall receive the Account Statement, all notices and correspondence with respect to
the Account, as well as the proceeds of any redemption requests or dividends or other distributions. In addition,
such Unitholders shall have the voting rights, as permitted, associated with such Units, as per the applicable guidelines.
Applicants can specify the ‘mode of holding’ in the Application Form as ‘Jointly’ or ‘Anyone or Survivor’. In the case
of holding specified as ‘Jointly’, redemptions and all other requests relating to monetary transactions would have to
be signed by all joint holders. However, in cases of holding specified as ‘Anyone or Survivor’, any one of the
Unitholders will have the power to make redemption requests, without it being necessary for all the Unitholders to
sign. However, in all cases, the proceeds of the redemption will be paid to the first-named holder.
In case of death / insolvency of any one or more of the persons named in the Register of Unit holders as the joint
holders of any Units, the AMC, shall not be bound to recognise any person(s) other than the remaining holders. In
all such cases, the proceeds of the Redemption will be paid to the first-named of such remaining Unit holders.
vii) Nomination Facility
The AMC has provided this nomination facility as an additional feature. By provision of this facility the AMC is not
in any way attempting to grant any rights other than those granted by law to the nominee. A nomination in respect
of the Units does not create an interest in the property after the death of the Unit holder.
The nominee shall receive the Units only as an agent and trustee for the legal heirs or legatees as the case
may be.
All other issues pertaining to nomination facility and nominee/s shall be subject to the Nomination Rules as
prescribed by AMC from time to time.
The single/joint/surviving Unitholders can, at the time an application is made or subsequently by writing to the
Registrar request for a nomination form and the Rules and Regulations governing the facility in order to nominate
any person subject to completion of necessary formalities.
It may, however, be noted that in the event of death of the Unitholder and in the event a nominee has been named,
the nominee shall stand transposed in respect of the Units held by the Unit holder. Such nominee (new Unit holder)
will hold the Units in trust for and on behalf of the estate of the original Unit holder and his / her legal heirs. Such
payments made by the AMC shall be full and valid discharge of the AMC / Fund from all further liabilities in respect
47

Prudential ICICI Mutual Fund
of the sums so paid.
The AMC shall have the right to ask for any additional information / documentation as it may deem necessary to
satisfy itself as to the identity of the Nominee/ Claimant including but not limited to procuring an Indemnity Bond.
Issuance of Units/ Account Statements/Transaction Confirmation
Under normal circumstances, an Account Statement/Transaction Confirmation will be mailed to the investor indicating
the number of Units purchased and/or the new balance to Unit holder’s credit in the Account within three Business
Days of acceptance of the purchase request. Provided that the Fund reserves the right to reverse the transaction of
crediting the Unit Holder’s account, in the event of non-realization of any cheque or other instrument remitted by
the investor.
The Account Statements/Transaction Confirmation shall be non-transferable. If the Unit holder so desires nontransferable
Unit certificates will be issued within six weeks of the receipt of request for the certificate.
Any addition/ deletion of name from the folio of the unitholder is deemed as transfer of units. But the Units of the
Scheme are not transferable.
In view of the same, additions/ deletion of names will not be allowed under any folio of the Scheme.
The above provisions in respect of deletion of names will not be applicable in case of death of unitholder (in respect
of joint holdings) as this is treated as transmission of units and not transfer.
All Units will rank pari passu, among Units within the same Option, i.e. either the dividend option or the growth
option, as to assets, earnings and the receipt of dividend distributions, if any, as may be declared by the Trustee.
n) Redemption of Units
The Units can be redeemed (i.e., sold back to the Fund), at the Applicable NAV (hereinafter defined) Redemption requests
can be made in amounts, with a minimum of Rs 500.
A Unitholder may request redemption of a specified amount or a specified number of Units, (subject to the minimum
redemption amount) the number of Units specified will be considered for deciding the redemption amount. If only the
redemption amount is specified by the Unitholder, the Fund will divide the redemption amount so specified by the
Applicable NAV based price to arrive at the number of Units.
In case an investor has purchased Units on more than one Business Day (either during the Initial Offer Period, or through
subsequent purchases), the Units purchased prior in time (i.e. those Units which have been held for the longest period of
time) will be deemed to have been redeemed first i.e. on a First-in-First-Out basis.
Unitholders may also request for redemption of their entire holding and close the account by indicating the same at the
appropriate place in the Redemption Request Form.
Investors should note that the amount invested under the 54EA and 54EB Investment Plans will have to be
locked-in for a period of 3 years and 7 years, respectively and the Units so allotted cannot be redeemed during
the specified lock-in period.
As per the directives issued by SEBI, it is mandatory for applicants to mention their bank account numbers in
their applications for purchase or redemption of Units. If the Unit-holder fails to provide the Bank mandate, the
request for redemption would be considered as not valid and the Fund retains the right to withhold the
redemption until a proper bank mandate is furnished by the Unit-holder and the provision with respect of penal
interest in such cases will not be applicable/ entertained.
i) Redemption Price
The Redemption Price of the Units will be based on the Applicable NAV, subject to prevalent exit load provisions, if
any. For the present, the Fund does not intend to charge any exit load for redemption of Units.
The redemption price will be calculated using the following formula:
Redemption Price = Applicable NAV * (1-Exit Load, if any).
Subject to the Regulations, the Trustee reserves the right to modify/alter the load structure and may decide
to introduce a differential load structure on the Units subscribed/redeemed on any Business Day. Such changes
will be applicable for prospective investments. The Trustee shall arrange to display a notice in the Customer
Service Centers of the AMC at least 10 days before the change of the then prevalent load structure. The
addendum detailing the changes in load structure will be attached to offer documents and abridged offer
documents. The addendum will also be circulated to all the distributors / brokers so the same can be attached
to all the offer documents and abridged offer documents in stock. This addendum will also be sent along
with the newsletter to the unitholders immediately after the changes. Changes in the load structure may
be stamped in the acknowledgement slip issued by the Fund after the changes in load structure. The load
collected from the Unitholders under each Plan will be credited to a separate account in the respective Plan
accounts and will be offset against distribution and marketing expenses. Surplus of load, if any, charged
over planned marketing and distribution expenses to be defrayed will be credited to the respective Plans
whenever felt appropriate by the AMC.
48

Prudential ICICI Balanced Fund
The Fund shall ensure that the Redemption Price is not lower than 93% of the NAV and the Purchase Price is not
higher than 107% of the NAV, provided that the difference between the Redemption Price and Purchase Price of the
Units shall not exceed the permissible limit of 7% of the Purchase Price, as provided for under the Regulations.
ii) Applicable NAV
Applicable NAV is the Net Asset Value per Unit at the close of the Business Day on which the application is accepted.
An application will be considered accepted on that day, subject to it being complete in all respects and received
prior to 3 p.m. on that Business Day.
iii) How to Redeem?
The redemption requests can be made on the transaction slip for redemption available at the Customer Service
Centres. The redemption request can be made at any of the Investor Service Centers as listed in this Offer Document.
In case the Units are standing in the names of more than one Unitholder, where mode of holding is specified as
‘Jointly’, redemption requests will have to be signed by all joint holders. However, in cases of holding specified as
‘Anyone or Survivor’, any one of the Unitholders will have the power to make redemption requests, without it being
necessary for all the Unitholders to sign. However, in all cases, the proceeds of the redemption will be paid only to
the first-named holder.
The Unitholder may either request for mailing of the redemption proceeds to his/her address or collection of the
same from the Customer Service Centre.
iv) Payment of Proceeds
All redemption requests received prior to 3:00 p.m. on any Business Day will be considered accepted on that Business
Day, subject to the redemption request being complete in all respects, and will be priced on the basis of the Applicable
NAV (subject to the applicable load) for that day. Where an application is received after the cut-off time, as above,
then the request will be deemed to have been received on the next Business Day. Please see page 80 ‘Right to Limit
Redemptions’ and page 81 ‘Suspension of Sale and Redemption of Units’.
As per the Regulations, the Fund shall despatch the redemption proceeds within 10 (ten) Business Days (working
days) from the date of acceptance of redemption request at any of the Customer Service Centres or the office of the
Registrar, in case of a Redemption request being sent by post.
Under normal circumstances, the Fund will endeavour to despatch the redemption cheques within 3 Business Days
from the date of acceptance of the redemption request.
The redemption cheque will be issued in favour of the sole/first Unitholder’s registered name and bank account
number and will be sent to the registered address of the sole/first holder as indicated in the original Application
Form. The redemption cheque will be payable at par at all the places where the Customer Service Centers are located.
The bank charges for collection of cheques at all other places will be borne by the Unitholder.
In order to protect interest of the Unitholders from fraudulent encashment of cheques the current SEBI
Regulations has made it mandatory for Unitholders to mention their bank name and account numbers of
the Unitholders in their applications for purchase or redemption of Units. The normal processing time may
not applicable in situations where such details are not provided by the Applicants/ Unitholders. The AMC
will not be responsible for any loss arising out of fraudulent encashment of cheques or any delay or loss in
transit.
If the Unit-holder fails to provide the Bank mandate, the request for redemption would be considered as not valid
and the Fund retains the right to withhold the redemption until a proper bank mandate is furnished by the Unitholder
and the provision with respect of penal interest in such cases will not be applicable/ entertained.
A fresh Transaction Confirmation will be sent by the Registrar to the redeeming investors, indicating the new balance
to the credit in the Account. With the prior consent of the Unitholder, the account statement will be sent by e-mail
only.
The Fund may close a Unit holder’s account if, as a consequence of redemption, the balance falls below Rs.5,000,
and a period of 30 (thirty) days has elapsed after the issue of notice to the Unitholder by the AMC requesting him to
bring the amount in the account to the minimum described above and the Unitholder fails to do so.
If a Unitholder makes a redemption request immediately after purchase of Units, the Fund shall have a right to
withhold the redemption request till sufficient time has elapsed to ensure that the amount remitted by him (for
purchase of Units) is realized and the proceeds have been credited to the Scheme’s Account. However, this is only
applicable if the value of redemption is such that some or all of the freshly purchased Units may have to be redeemed
to effect the full redemption.
v) Redemption by NRIs/FIIs
Credit balances in the account of an NRI/FIIs investor, may be redeemed by such investors in accordance with the
procedure described above and subject to any procedures laid down by the RBI, if any. Such redemption proceeds
will be paid by means of a Rupee cheque payable to the NRI’s/FIIs or by a foreign currency draft drawn at the then
current rates of exchange less bank charges thereof subject to RBI procedures and approvals.
49

Prudential ICICI Mutual Fund
In terms of the Schedule 5 of Notification no. FEMA 20/2000 dated May 3, 2000 issued under the Foreign Exchange
Management Act, 1999 (FEMA) the RBI has granted general permission to NRIs and FIIS who have purchased units
issued by mutual funds in accordance with the aforesaid notification to tender units to the mutual funds for
repurchase or for the payment of maturity proceeds.
For the purpose of this section, the term “Mutual Funds” is as referred to in Clause (23D) of Section 10 of Income-
Tax Act 1961.
vi) Effect of Redemptions
The Unit capital and Reserves of the Scheme will stand reduced by an amount equivalent to the product of the
number of Units redeemed and the Applicable NAV as on the date of redemption.
vii) Fractional Units
Since a request for redemption or purchase is generally made in Rupee amounts and not in terms of number of
Units of the Scheme, an investor may be left with Fractional Units. Fractional Units will be computed and accounted
for up to three decimal places. However, Fractional Units will in no way affect the investor’s ability to redeem the
Units, either in part or in full standing to the Unitholder’s credit.
viii) Right to Limit Redemptions
After complying with the regulatory requirements, the Trustee and the Board of Directors of the AMC may, in the
general interest of the Unitholders of the Scheme and keeping in view the unforeseen circumstances/unusual market
conditions, limit the total number of Units which may be redeemed on any Business Day to 5% of the total number
of Units then in issue, or such other percentage as the Trustee may determine.
Any Units, which by virtue of these limitations are not redeemed on a particular Business Day, will be carried forward
for redemption to the next Business Day, in order of receipt. Redemptions so carried forward will be priced on the
basis of the Applicable NAV (subject to the prevailing load) of the Business Day on which redemption is made.
Under such circumstances, to the extent multiple redemption requests are received at the same time on a single
Business Day, redemptions will be made on pro-rata basis, based on the size of each redemption request, the balance
amount being carried forward for redemption to the next Business Day(s).
i) Suspension of Sale and Redemption of Units
The Trustee and the Board of Directors of the AMC may decide to temporarily suspend determination of NAV of
the Scheme offered under this Document, and consequently sale and redemption of Units, in any of the following
events:
1. When one or more stock exchanges or markets, which provide basis for valuation for a substantial portion
of the assets of the Scheme is closed otherwise than for ordinary holidays.
2. When, as a result of political, economic or monetary events or any circumstances outside the control of the
Trustee and the AMC, the disposal of the assets of the Scheme is not reasonable, or would not reasonably
be practicable without being detrimental to the interests of the Unitholders.
3. In the event of breakdown in the means of communication used for the valuation of investments of the
Scheme, without which the value of the securities of the Scheme cannot be accurately calculated.
4. During periods of extreme volatility of markets, which in the opinion of the AMC are prejudicial to the
interests of the Unitholders of the Scheme.
5. In case of natural calamities, strikes, riots and bandhs.
6. In the event of any force majeure or disaster that affects the normal functioning of the AMC or the Registrar.
7. If so directed by SEBI.
In the above eventualities, the time limits indicated above, for processing of requests for purchase and redemption
of Units will not be applicable.
Suspension or restriction of repurchase/ redemption facility under any scheme of the mutual fund shall be made
applicable only after obtaining the approval from the Boards of Directors of the AMC and the Trustees. After
obtaining the approval from the AMC Board and the Trustees, an intimation would be sent to SEBI in advance
providing details of circumstances and justification for the proposed action shall also be informed.
50

Prudential ICICI Balanced Fund
SECTION IV
FEES, EXPENSES AND LOAD STRUCTURE
A) LOAD STRUCTURE OF THE SCHEME
Unit holder Transaction Expenses or Sales Load:
Entry Load:
(i) For investments of less than Rs. 10 Lakhs : Entry load at 2.25% of applicable Net Asset Value (NAV).
(ii) For investment of Rs.10 Lakhs and above but upto Rs. 3 crores: Entry load at 1.75% of applicable Net Asset Value
(NAV)
(iii) For investment of Rs. 3 crores and above: Entry load is Nil.
No entry load will be payable in respect of switch transaction from one equity scheme of Prudential ICICI to another
equity scheme of Prudential ICICI
Exit Load:
On an on-going basis, the Trustee, for the present does not intend to charge an exit load on redemption of Units.
Subject to the Regulations, the Trustee reserves the right to modify/alter the load structure and may decide to introduce a
differential load structure on the Units subscribed/redeemed on any Business Day. Such changes will be applicable for prospective
investments. The Trustee shall arrange to display a notice in the Customer Service Centers of the AMC at least 10 days before the
change of the then prevalent load structure. The addendum detailing the changes in load structure will be attached to offer
documents and abridged offer documents. The addendum will also be circulated to all the distributors / brokers so the same can
be attached to all the offer documents and abridged offer documents in stock. This addendum will also be sent along with the
newsletter to the unitholders immediately after the changes. Changes in the load structure may be stamped in the acknowledgement
slip issued by the Fund after the changes in load structure. The load collected from the Unitholders under each Plan will be
credited to a separate account in the respective Plan accounts and will be offset against distribution and marketing expenses.
Surplus of load, if any, charged over planned marketing and distribution expenses to be defrayed will be credited to the
respective Plans whenever felt appropriate by the AMC.
B) FEES AND EXPENSES OF THE SCHEME
As per the provisions of the Regulations, read with the amendments thereto, the following fee and expenses will be charged to
the Scheme:
i) Initial Issue Expenses
The total Initial Issue expenses chargeable to the Scheme as per current Regulations are subject to a maximum of 6% of
the amount collected during the Initial Offer Period. However, the Initial Issue expenses charged to the Scheme in this
Offer Document were limited to 1% of the amount mobilized under the Initial Offer Period. Expenses over and above
were borne by the AMC and were not charged to the Scheme.
Details of initial issue expenses under all the schemes launched by the Fund and extent to which the same were charged
to the respective schemes have been provided on page 84.
ii) Recurring Expenses
(% per annum of average net assets)
Description
Balanced Fund
Investment Management Fee 1.25
Trustee Fee 0.05
Custodian Fee 0.15
Marketing & Selling 0.20
Registrar & Transfer Agent 0.10
Transaction Costs 0.05
Audit Costs 0.01
Costs of investor communications 0.03
Cost of Funds transfer 0.05
Costs for A/c statements, dividend etc. 0.03
Cost of statutory advertisements 0.04
Other expenses 0.04
Total annual recurring expenses 2. 00
The purpose of the above table is to assist the investor in understanding the various costs and expenses that an investor
in the Scheme will bear. These estimates were based on a corpus size of Rs.1 crore under the Scheme, and would change,
to the extent assets are lower or higher. The above expenses are subject to inter-se change and may increase/decrease as
per actual and/or any change in the Regulations.
51

Prudential ICICI Mutual Fund
These estimates have been made in good faith as per information available to the AMC and the total expenses may be
more than as specified in the table above. However, as per the Regulations, the total recurring expenses that can be
charged to the Scheme in this Offer Document shall be subject to the applicable guidelines. Expenses over and above the
permitted limits will be borne by the AMC.
The recurring expenses of the Schemes, and the additional management fee shall be as per the limits prescribed under
Sub-Regulations(6) of Regulations 52 of the Regulations and shall not exceed the limits prescribed thereunder.
C) FEES AND EXPENSES OF THE EXISTING SCHEMES.
ICICI Mutual Fund, prior to the joint venture with Prudential, had launched two closed ended growth schemes, ICICI Premier,
launched on November 30, 1993 and ICICI Power, launched on August 24, 1994 (since converted into an open-ended scheme).
Subsequent to the joint venture with Prudential, the Fund launched three open-ended schemes (Prudential ICICI Growth Plan,
Prudential ICICI Income Plan and Prudential ICICI Liquid Plan) on June 4, 1998 and one open ended scheme (Prudential ICICI
FMCG Fund) on February 15, 1999. The Fund also launched Prudential ICICI Tax Plan, Prudential ICICI Gilt Fund, Prudential ICICI
Balanced Fund, Prudential ICICI Technology Fund, Prudential ICICI Monthly Income Plan, Prudential ICICI Fixed Maturity Plan
Prudential ICICI Child Care Plan, Prudential ICICI Index Fund, Prudential ICICI Dynamic Plan and SENSEX Prudential ICICI
Exchange Traded Fund, on July 9,1999, July 21, 1999, September 20,1999, January 7, 2000, September 28, 2000, December 20,
2000, July 16, 2001, February 15, 2002, October 7, 2002 and January 6, 2003 respectively. The following are the additional Plans
under the existing Schemes of the Fund:
Sr. No. Additional Plan Existing Scheme Launch date
1 Prudential ICICI Gilt Fund - One Year Plus Plan Prudential ICICI Gilt Fund April 26, 2001
2 Prudential ICICI Short Term Plan Prudential ICICI Income Plan October 18, 2001
3 Prudential ICICI Long Term Plan Prudential ICICI Income Plan March 26, 2002
4 Prudential ICICI Sweep Plan Prudential ICICI Liquid Plan February 27, 2002
5 Prudential ICICI Fixed maturity Plan – Yearly 5 Prudential ICICI Fixed Maturity Plan March 22, 2002
6 Prudential ICICI Fixed Maturity Plan – Prudential ICICI Fixed Maturity Plan June 27, 2002
One Year Plus Plan
7. Prudential ICICI FMP Yearly- Series 7 Prudential ICICI Fixed Maturity Plan August 19, 2002
8. Prudential ICICI Fixed Maturity Plan – Prudential ICICI Fixed Maturity Plan September 16,
One Year Plus Plan - Series 8 2002
9. Prudential ICICI Flexible Income Plan Prudential ICICI Income Plan September 16,
2002
10. Prudential ICICI Fixed Maturity Plan – Prudential ICICI Fixed Maturity Plan March 17, 2003
One Year Plus Plan - Series 12
11. Prudential ICICI Floating Rate Plan Prudential ICICI Income Plan March 28, 2003
12. Prudential ICICI Flexible Income Plus Plan Prudential ICICI Income Plan May 22, 2003
Initial Issue Expenses – Comparison of Estimated to Actuals
Description ICICI Premier ICICI Power
Estimated - % Actuals - % to Estimated - % Actuals -
to Target Amount Subscription to Target Amount % to Subscription
Advertising Expenses 1.75 1.48 1.50 1.61
Commission to agents & 2.00 1.36 1.75 2.53
brokers
Registrar Expenses 0.75 0.10 1.25 0.07
Printing & Mailing 1.00 0.24 1.00 0.42
Miscellaneous 0.50 0.36 0.50 0.40
Total 6.00 3.54 6.00 5.03
Target Amount/ Rs.100 crore Rs.159 crore Rs.50 crore Rs.90.28 crore
Amount Mobilised
The Initial Issue Expenses relating to Liquid Plan, Income Plan, Growth Plan, Gilt Plan, Monthly Income Plan, Fixed Maturity Plan,
Gilt Treasury- 1 Year Plus Plan, Short Term Plan, Sweep Plan, Long Term Plan, Fixed Maturity Plan- Yearly 5, Fixed Maturity Plan –
One Year Plus Plan – Series 6, 7, 8 & 12 Prudential ICICI Flexible Income Plan, SENSEX Prudential ICICI Exchange Traded Fund,
Prudential ICICI Floating Rate Fund and Prudential ICICI Flexible Income Plus Plan were borne by the AMC and the details thereof
are furnished on page 63.
52

Prudential ICICI Balanced Fund
Initial Issue Expenses - Prudential ICICI FMCG Fund, Prudential ICICI Tax Plan, Prudential ICICI Balanced Fund, Prudential ICICI
Technology Fund, Prudential ICICI Child Care Plan, Prudential ICICI Index Fund and Dynamic Plan
The Initial Issue Expenses charged to the Investors under Prudential ICICI FMCG Fund, Prudential ICICI Tax Plan, and Prudential
ICICI Balanced Fund were limited to 1% of the amount mobilized during the Initial Offer Period. The initial issue expenses
charged to Investors under Prudential ICICI Technology Fund were limited to 1.75% of the corpus mobilized under the Initial
Offer Period. In respect of Prudential ICICI Child Care Plan, initial issue expenses to be charged to the Scheme are limited to
2.50% of the amount mobilised during the initial offer period under Gift Plan and 1.50% under Study Plan. Under Prudential
ICICI Index Fund, the initial issue expenses to be charged to the Scheme is limited to 1.50% of the amount mobilized during the
initial offer period. Under Prudential ICICI Dynamic Plan, the initial issue expenses to be charged to the Scheme is limited to
2.50% of the amount mobilized during the initial offer period(as mentioned in the offer document), whereas the actual initial
issue expenses charged to the scheme were limited to 1.33%.
The details of estimated Vs actual expenses are as under:
Description FMCG Fund Tax Plan Gilt Fund Balanced Fund Technology Fund
Estimated - Actual - % Estimated - Actual - % Estimated - Actual - % Estimated - Actual - % Estimated - Actual - %
% to to % to to % to to % to to % to to
Target Subscription Target Subscription Target Subscription Target Subscription Target Subscription
Amount Amount Amount Amount Amount
Advertising, 0.50 1.40 0.90 0.33 1.00 0.15 0.65 0.45 0.75 0.27
printing and
other
marketing
expenses
Collection, 0.25 0.12 0.60 0.04 0.25 0.01 0.25 0.01 0.25 0.04
Registrar and
Bank charges
Selling 1.00 0.93 1.00 1.06 - 0.02 1.00 1.01 1.00 1.49
Commissions
Total 1.75 2.45 2.50 1.43 1.25 0.18 1.90 1.47 2.00 1.80
Target Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Amount/ 1.00 1.59 10.00 50.76 1.00 150.01 1.00 197.58 1.00 509
Amount crore crore lacs crores crore crore crore crores crores crores
Description Child Care Child Care Child Care Index Fund TDynamic Plan
Plan - Gift Plan - Study Plan - Gift &
Plan Plan Study Plan
Estimated - Estimated - Actual - % Estimated - Actual - % Estimated - Actual - %
% to % to to % to to % to to
Target Target Subscription Target Subscription Target Subscription
Amount Amount Amount Amount
Advertising, 1.85 2.28 11.86 1.25 Nil 0.75 Nil
printing and
(includes
other marketing
Selling
expenses
Commission)
Collection, 0.35 0.35 0.63 0.25 Nil 0.25 Nil
Registrar and
Bank charges
Selling 1.00 1.00 1.42 - Nil 1.50 1.33
Commissions
Total 3.20 3.63 13.91 1.50 Nil 2.50 1.33
Target Amount/ Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Amount 1.00 1.00 10.62 1.00 7.86 7.86 17.64
Mobilised crore crore crores crore crores crores crores
Note:
1. The Initial Issue Expenses under FMCG Fund were more due to higher advertisement costs.
2. As disclosed in the offer document of Child Care plan, Expenses to the extent of 2.50% of the amount mobilized during
the Initial Offer Period under Gift Plan and 1.50% under Study Plan have been charged to the Scheme and the balance
expenses have been borne by the AMC.
53

Prudential ICICI Mutual Fund
a) Actual Scheme Recurring Expenses as on August 31, 2003:
As a % of Average weekly Net Assets
ICICI Premier ICICI Power+
Description *2003-2004 2002-2003 2001-2002 2000-2001 *2003-2004 2002-2003 2001-2002 2000-2001
(till
(till
31.08.03) 31.08.03)
Investment 1.25 1.25 1.25 1.25 1.16 1.23 1.25 1.24
management &
Advisory fees
Additional Fees (if any) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Trustee Fees 0.01 0.01 0.01 0.01 0.00 0.01 0.01 0.01
Audit Fees 0.01 0.04 0.02 0.04 0.00 0.05 0.04 0.06
Custodian Fees 0.01 0.01 0.04 0.14 0.01 0.04 0.09 0.22
Registrar & Transfer 0.51 0.34 0.11 0.15 0.09 0.16 0.25 0.07
Agent Fees
Listing fees 0.00 0.06 0.03 0.03 0.00 0.00 0.05 0.05
Bank charges 0.01 0.06 0.00 0.03 0.06 0.04 0.01 0.01
Postal & Mailing 0.00 0.22 0.23 0.23 0.03 0.07 0.23 0.31
Expenses
Brokerages 0.00 0.00 - - 0.18 0.23 - -
Advertising / 0.00 0.47 0.54 0.32 0.21 0.64 0.54 0.29
Marketing / Printing
Expenses
Cost related to 0.00 0.02 - 0.17 0.00 0.00 - 0.08
investor
communication
Other Expenses 0.70 0.02 0.27 0.11 0.67 0.00 0.03 0.16
Total Annual 2.50 2.50 2.50 2.50 2.41 2.47 2.50 2.50
Recurring Expenses
+ Renamed as Prudential ICICI Power consequent to its conversion into open-ended fund effective from September 27,
2001.
** Unaudited.
Estimated recurring expenses-open ended Schemes
As per the Offer Document for the Liquid Plan, Income Plan, Growth Plan, FMCG Fund, Tax Plan, Gilt Fund, Balanced Fund,
Technology Fund, Monthly Income Plan, Gilt Treasury 1 Year Plus Plan, Fixed Maturity Plan, Short Term Plan, Child Care Plan, Index
Fund, Power, Long Term Plan, Sweep Plan, Flexible Income Plan, Dynamic Plan, SPIcE, Floating Rate Plan and Flexible Income Plus
Plan the following were the estimated recurring expenses.
(% per annum of average net assets)
Description Growth Plan Income Plan Liquid Plan FMCG Fund Tax Plan Gilt Fund
Treasury Investment Balanced
Option Option Fund
Investment management & 1.25 1.25 0.70 1.25 1.25 0.75 0.75 1.25
Advisory fees
Additional Fees (if any) - - - - - - - -
Trustee Fees 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05
Custodian Fees 0.30 0.15 0.08 0.30 0.30 0.04 0.04 0.15
Advertising, Marketing & 0.50 0.25 0.03 0.50 0.50 0.02 0.02 0.20
Selling Expenses
Registrar & Transfer Agents Fees 0.10 0.10 0.10 0.10 0.10 0.04 0.04 0.10
Transaction Costs 0.05 0.05 0.02 0.05 0.05 - - 0.05
Audit Fees 0.01 0.01 0.01 0.01 0.01 - - 0.01
Cost related to Investor 0.04 0.04 0.01 0.04 0.04 0.02 0.02 0.03
communications
Cost of funds transfer 0.05 0.025 0.00 0.05 0.05 - - 0.05
Cost of providing Account State- 0.05 0.025 0.00 0.05 0.05 0.05 0.05 0.03
ments, dividend distributions, etc.
Cost of statutory advertisements 0.05 0.025 0.00 0.05 0.05 0.01 0.01 0.04
Other Expenses 0.05 0.025 0.00 0.05 0.05 0.02 0.02 0.04
Total Annual Recurring Expenses 2.50 2.00 1.00 2.50 2.50 1.00 1.00 2.00
54

Prudential ICICI Balanced Fund
(% per annum of average net assets)
Description Technology Monthly Gilt-Treasury Fixed Maturity Short Term Child Care Plan Index
Fund Income 1 Year Plus Plan Plan Fund
Plan
Plan
Gift Plan Study Plan
Investment management & Advisory fees 1.25 1.25 0.75 0.70 0.75 1.25 1.25 0.70
Additional Fees (if any) - - - - - - - -
Trustee Fees 0.05 0.05 0.04 0.05 0.05 0.05 0.01 0.05
Custodian Fees 0.30 0.20 0.04 0.05 0.04 0.16 0.10 0.10
Advertising, Marketing & Selling Expenses 0.47 0.20 0.02 0.03 0.02 0.08 0.04 0.15 **
Registrar & Transfer Agents Fees 0.08 0.12 0.04 0.08 0.05 0.12 0.10 0.10
Transaction Costs 0.05 - - - - - - -
Audit Fees 0.01 0.01 - 0.01 0.01 0.01 0.01 0.05
Cost related to Investor communications 0.08 0.12 0.02 0.01 0.02 0.12 0.08 -
Cost of funds transfer 0.05 0.14 - 0.01 - 0.10 0.10 0.05
Cost of providing Account Statements, 0.08 0.11 0.05 0.02 0.04 0.11 0.11 -
dividend distributions, etc.
Cost of statutory advertisements 0.04 0.01 0.01 0.02 0.01 0.05 0.01 -
Other Expenses 0.04 0.04 0.02 0.02 0.01 0.45* 0.44* 0.05
Total Annual Recurring Expenses 2.50 2.25 1.00 1.00 1.00 2.50 2.25 1.25
*Includes insurance premium payable under Child Care Plan.
**Includes Cost related to investor communication, A/c. Statement, dividend distribution and Statutory advertisement.
(% per annum of average net assets)
Description Prudential Long Term Sweep Flexible Dynamic SPIcE Floating Flexible Income
ICICI Power Plan Plan Income Plan Plan Rate Plan Plus Plan
Investment management & Advisory fees 1.25 1.25 0.75 1.00 1.00 0.60 0.45 0.50
Additional Fees (if any) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Trustee Fees 0.05 0.05 0.05 0.05 0.02 0.01 0.05 0.05
Custodian Fees 0.20 0.15 0.04 0.02 0.15 0.05 0.02 0.02
Advertising, Marketing & Selling Expenses 0.47 0.25 0.02 0.30 0.45 0.17 0.07 0.30
Registrar & Transfer Agents Fees 0.10 0.10 0.04 0.06 0.08 0.10 0.06 0.06
Transaction Costs 0.00 0.05 0.00 0.00 0.05 0.00 0.00 0.00
Audit Fees 0.01 0.01 0.00 0.01 0.01 0.01 0.01 0.01
Cost related to Investor communications 0.12 0.04 0.05 0.06 0.05 0.03 0.03 0.06
Cost of funds transfer 0.14 0.025 0.00 0.00 0.05 0.00 0.00 0.00
Cost of providing Account Statements, 0.11 0.025 0.08 0.00 0.05 0.03 0.00 0.00
dividend distributions, etc.
Cost of statutory advertisements 0.01 0.025 0.02 0.00 0.05 - 0.00 0.00
Other Expenses 0.04 0.025 0.20 0.00 0.04 0.03 0.06 0.00
Total Annual Recurring Expenses 2.50 2.00 1.25 1.50 2.00 1.00 0.75 1.00
Actual Recurring Expenses as on August 31, 2003 are as under:
(% Per annum of average net assets)
Description Growth Plan Income Plan
*2003-2004 2002-2003 2001-2002 2000-2001 *2003-2004 2002-2003 @ 2001-2002 2000-2001
(till (till
31.08.03) 31.08.03) @
Investment management & Advisory fees 1.08 1.07 1.08 1.06 0.58 0.73 1.00 1.01
Additional Fees (if any) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Trustee Fees 0.01 0.00 0.01 0.01 0.01 0.00 0.00 0.01
Custodian Fees 0.02 0.04 0.10 0.19 0.00 0.01 0.02 0.03
Registrar & Transfer Agent Fees 0.09 0.11 0.11 0.11 0.06 0.07 0.07 0.08
Bank Charges 0.02 0.04 0.01 0.01
Postal and Mailing Expenses 0.01 0.01 0.01 0.01 0.00 - - -
Brokerage 0.27 0.61 0.16 - 0.39 0.57 0.33 0.23
Advertisement/ Marketing / 0.28 0.43 0.76 0.87 0.04 0.17 0.15 0.26
Printing expenses
Audit Fees 0.00 0.01 0.00 - 0.00 - - -
Other Expenses (including expenses as 0.55 0.01 0.10 0.02 0.42 0.03 0.03 0.02
permitted under the Regulations)
Total Annual Recurring Expenses 2.33 2.33 2.33 2.27 1.51 1.59 1.60 1.64
@
* Unaudited
This is the expenses ratio for the Scheme. The ratio for recurring expenses for Normal Plan and for Institutional Plan for the period ended March 31, 2003 is
1.59% and 1.02% respectively and for the period ended August 31, 2003 is 1.59% and 1.10% respectively.
55

Prudential ICICI Mutual Fund
(% Per annum of average net assets)
Description Liquid Plan FMCG Fund
*2003-2004 2002-2003@ 2001-2002 2000-2001 *2003-2004 2002-2003 2001-2002 2000-2001
(till (till
31.08.03)@ 31.08.03)
Investment management & Advisory fees 0.45 0.53 0.70 0.70 1.25 1.25 1.25 1.25
Additional Fees (if any) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Trustee Fees 0.00 0.00 0.00 - 0.02 0.01 0.01 0.01
Custodian Fees 0.00 0.01 0.02 0.03 0.02 0.04 0.12 0.19
Registrar & Transfer Agent Fees 0.04 0.06 0.07 0.08 0.09 0.10 0.10 0.12
Bank Charges 0.00 0.01 - - 0.00 0.10 - -
Postal and Mailing Expenses 0.00 0.00 - 0.01 0.03 0.04 0.04 0.05
Brokerage 0.00 0.31 0.16 0.12 0.20 0.24 0.22 0.16
Advertisement/ Marketing / 0.02 0.04 0.02 0.03 0.28 0.24 0.12 0.08
Printing expenses
Audit Fees 0.00 0.00 - - 0.00 0.03 0.02 0.04
Other Expenses (including expenses as 0.10 0.02 0.02 0.01 0.16 0.00 0.16 0.10
permitted under the Regulations)
Total Annual Recurring Expenses 0.61 0.98 0.99 0.98 2.05 2.05 2.04 2.00
* Unaudited.
@ This is the expenses ratio for the Scheme. The ratio for recurring expenses for Normal Plan and for Institutional Plan for
the period ended March 31, 2003 is 0.99% and 0.75% respectively and for the period ended August 31, 2003 is 0.72%
and 0.55% respectively.
Note: 1) Prudential ICICI Income Plan, Prudential ICICI Growth Plan and Prudential ICICI Liquid Plan were launched in June
1998.
2) Other expenses for the year 2003-2004 represent accrual of expenses as permitted under the Regulations.
(% Per annum of average net assets)
Description Tax Plan Gilt Fund - Treasury Plan Gilt Fund - Investment Plan
*2003- 2002- 2001- 2000- *2003- 2002- 2001- 2000- *2003- 2002- 2001- 2000-
2004 2003 2002 2001 2004 2003 2002 2001 2004 2001 2002 2001
(till (till (till
31.08.03) 31.08.03) 31.08.03)
Investment management & 1.25 1.25 1.25 1.25 0.45 0.56 0.75 0.75 0.40 0.52 0.75 0.75
Advisory fees
Additional Fees (if any) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Trustee Fees 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.00 0.00 0.01
Custodian Fees 0.02 0.04 0.16 0.26 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Registrar & Transfer Agent Fees 0.13 0.11 0.11 0.13 0.05 0.06 0.06 0.07 0.04 0.06 0.06 0.07
Bank Charges 0.07 0.01 - - 0.00 0.15 - - 0.01 0.03 - -
Posting & Mailing 0.11 0.04 0.08 0.06 0.00 0.01 0.01 0.03 0.00 0.00 - 0.02
Brokerages 0.23 0.15 0.12 0.01 0.19 0.09 0.12 0.01 0.29 0.39 0.24 0.04
Advertisement/ Marketing / 0.05 0.51 0.27 0.12 0.07 0.18 0.02 0.05 0.00 0.10 0.05 0.06
Printing expenses
Audit Fees 0.00 0.03 0.02 0.04 0.00 0.03 0.01 0.02 0.00 0.00 - 0.01
Other Expenses (including 0.28 0.00 0.12 0.12 0.33 0.01 0.10 0.06 0.40 0.05 0.03 0.04
expenses as permitted under
the Regulations)
TOTAL ANNUAL RECURRING 2.15 2.15 2.14 2.00 1.10 1.10 1.08 1.00 1.15 1.15 1.13 1.00
EXPENSES
* Unaudited
56

Prudential ICICI Balanced Fund
(% Per annum of average net assets)
Description Gilt Treasury Balanced Fund Technology Fund
One Year Plus
Plan
2002- 2001- *2003- 2002- 2001- 2000- *2003- *2002- 2001 2000-
2003 2002 2004 2003 2002 2001 2004 2003 2002 -2001
(till
(till
31.08.03) 31.08.03)
Investment management & Advisory fees 0.25 0.25 1.17 1.14 1.12 1.07 1.22 1.17 1.16 1.08
Additional Fees (if any) - - 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Trustee Fees 0.02 - 0.01 0.01 0.01 0.01 0.04 0.02 0.03 0.02
Custodian Fees - - 0.01 0.03 0.09 0.14 0.02 0.04 0.11 0.19
Registrar & Transfer Agent Fees 0.03 0.02 0.08 0.10 0.10 0.10 0.11 0.11 0.11 0.11
Bank Charges - - 0.05 0.05 - - 0.01 0.08 - -
Posting & Mailing - 0.01 0.02 0.02 0.03 0.01 0.00 0.11 0.09 0.01
Brokerages - - 0.45 0.59 0.45 0.26 0.56 0.49 0.37 0.08
Advertisement/ Marketing / Printing expenses - 0.02 0.00 0.39 0.46 0.61 0.10 0.38 0.48 0.80
Audit Fees - - 0.00 0.01 0.01 - 0.00 0.01 0.01 -
Other Expenses (including expenses as - - 0.58 0.00 0.03 0.05 0.41 0.01 0.06 0.03
permitted under the Regulations)
TOTAL ANNUAL RECURRING EXPENSES 0.30 0.30 2.37 2.34 2.30 2.25 2.47 2.42 2.41 2.32
* Unaudited
Note: Other expenses for the year 2003-2004 represent accrual of expenses as permitted under the Regulations.
(% Per annum of average net assets)
Description Monthly Income Plan Fixed Maturity Plan Quarterly Series 1
*2003-2004 2002-2003 2001-2002 2000-2001 *2003-2004 2002-2003@ 2001-2002 2000-2001
(till 31.08.03)
(till 31.08.03) @
Investment management & Advisory fees 0.60 1.00 1.20 1.25 0.20 0.20 0.20 0.20
Additional Fees (if any) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Trustee Fees 0.01 0.00 0.00 0.00 0.02 0.00 0.01 0.00
Custodian Fees 0.01 0.01 0.03 0.03 0.01 0.00 0.02 0.02
Registrar & Transfer Agent Fees 0.12 0.13 0.13 0.18 0.01 0.02 0.03 0.03
Bank Charges 0.03 0.06 0.00 0.00 0.00 0.00 0.00 0.00
Posting & Mailing Exp. 0.01 0.00 0.01 0.00 0.00 0.01 0.01 0.00
Brokerages 0.41 0.17 0.34 0.38 0.00 0.09 0.21 0.13
Advertisement/ Marketing /
Printing expenses 0.16 0.19 0.18 0.03 0.00 0.17 0.03 0.10
Audit Fees 0.00 0.00 0.01 0.01 0.00 0.02 0.00 0.00
Other Expenses (including expenses as 0.15 0.02 0.10 0.12 0.09 0.02 0.00 0.02
permitted under the Regulations)
Total Annual Recurring Expenses 1.50 1.58 2.00 2.00 0.33 0.53 0.51 0.50
* Unaudited.
@ This is the expenses ratio for the Scheme. The ratio for recurring expenses for Normal Plan and for Institutional Plan for
the period ended March 31, 2003 is 0.55% and 0.25% respectively and for the period ended August 31, 2003 is 0.55%
and 0.25% respectively.
57

Prudential ICICI Mutual Fund
(% Per annum of average net assets)
Description Fixed Maturity Plan Half yearly Series 1 Fixed Maturity Plan Yearly Series 1
*2003-2004 2002-2003 2001-2002 2000-2001 *2003-2004 2002-2003 2001-2002 2000-2001
(till 31.08.03) (till 31.08.03)
Investment management & 0.25 0.20 0.24 0.14 0.30 0.26 0.27 0.27
Advisory fees
Additional Fees (if any) - - - - - - - -
Trustee Fees 0.02 0.01 0.01 - 0.02 0.01 0.01 -
Custodian Fees 0.00 0.01 0.02 0.01 0.00 0.01 0.01 0.01
Registrar & Transfer Agent Fees 0.05 0.05 0.04 0.07 0.07 0.03 0.07 0.04
Bank Charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Posting & Mailing Exp. 0.00 0.00 0.00 0.00 0.01 0.00 0.00 0.00
Brokerages 0.00 0.17 0.14 0.09 0.00 0.19 0.19 0.09
Advertisement/ Marketing / 0.00 0.09 0.09 0.17 0.00 0.09 0.04 0.15
Printing expenses
Audit Fees 0.00 0.02 0.01 0.07 0.00 0.01 0.01 0.02
Other Expenses (including expenses 0.23 0.00 0.00 0.00 0.20 0.00 0.00 0.02
as permitted under the Regulations)
Total Annual Recurring Expenses 0.55 0.55 0.55 0.55 0.60 0.60 0.60 0.60
* Unaudited
(% Per annum of average net assets)
Description Fixed Maturity Plan Quarterly Series 2 Fixed Maturity Plan Quarterly Series 3
*2003-2004 2002-2003 2001-2002 2000-2001 *2003-2004 2002-2003 2001-2002 2000-2001
(till 31.07.03) (till 31.07.03)
Investment management & 0.20 0.20 0.20 0.20 0.20 0.15 0.17 0.20
Advisory fees
Additional Fees (if any) - - - - - - - -
Trustee Fees 0.01 0.03 0.00 0.00 0.01 0.01 0.02 0.00
Custodian Fees 0.00 0.01 0.02 0.02 0.00 0.01 0.02 0.02
Registrar & Transfer Agent Fees 0.02 0.05 0.05 0.05 0.02 0.03 0.05 0.04
Bank Charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Posting & Mailing Exp. 0.00 0.00 0.00 0.00 0.00 0.00 0.03 0.00
Brokerages 0.24 0.16 0.23 0.10 0.22 0.08 0.16 0.19
Advertisement/ Marketing / 0.00 0.08 0.04 0.07 0.00 0.26 0.08 0.04
Printing expenses
Audit Fees 0.00 0.02 0.00 0.03 0.00 0.01 0.00 0.01
Other Expenses (including expenses 0.08 0.00 0.00 0.03 0.10 0.00 0.00 0.00
as permitted under the Regulations)
Total Annual Recurring Expenses 0.55 0.55 0.54 0.50 0.55 0.55 0.53 0.50
* Unaudited
First series of each Plan of Prudential ICICI Fixed Maturity Plan was launched on December 20, 2000
Note: Other expenses for the year 2003-2004 represent accrual of expenses as permitted under the Regulations.
58

Prudential ICICI Balanced Fund
(% Per annum of average net assets)
Description Fixed Maturity Plan- Fixed Maturity Plan- Fixed Maturity Plan-
Half Yearly Series 2 Yearly Series 2 Yearly Series 3
*2003- 2002- 2001- 2000- *2003- 2002- 2001- 2000- *2003- 2003 2001-
2004 2003 2002 2001 2004 2003 2002 2001 2004 -2002 2002
(till (till (till
31.08.03) 31.08.03) 31.08.03)
Investment management & 0.23 0.26 0.25 0.25 0.30 0.30 0.30 0.30 0.18 0.16 0.10
Advisory fees
Additional Fees (if any) - - - - - - - - - - -
Trustee Fees 0.01 0.01 0.00 0.00 0.02 0.05 0.01 0.00 0.01 0.00 0.00
Custodian Fees 0.00 0.00 0.01 0.00 0.00 0.01 0.01 0.00 0.01 0.01 0.01
Registrar & Transfer Agent Fees 0.06 0.07 0.04 0.00 0.03 0.03 0.04 0.14 0.02 0.02 0.05
Bank Charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Posting & Mailing Exp. 0.04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.12 0.14
Brokerages 0.04 0.13 0.21 0.01 0.16 0.17 0.22 0.12 0.13 0.09 0.08
Advertisement/ Marketing / 0.00 0.01 0.03 0.04 0.00 0.02 0.01 0.00 0.00 0.18 0.21
Printing expenses
Audit Fees 0.00 0.07 0.01 0.25** 0.00 0.01 0.01 0.04 0.00 0.00 0.01
Other Expenses (including 0.17 0.00 0.00 0.00 0.09 0.01 0.00 0.00 0.25 0.02 0.00
expenses as permitted under
the Regulations)
Total Annual Recurring 0.55 0.55 0.55 0.55 0.60 0.60 0.60 0.60 0.60 0.60 0.60
Expenses
** Units for Series 2 of Fixed Maturity Plan-Half Yearly Option was allotted on March 22, 2001 and actual amount of audit
fee paid in the financial year 2000-2001 was Rs.735.00.
* Unaudited
(% Per annum of average net assets)
Description Fixed Maturity Plan- Child Care Plan – Child Care Plan –
Yearly Series 4 Gift Plan Study Plan
*2003- 2002- 2001- *2003- 2002- 2001- *2003- 2003 2001-
2004 2003 2002 2004 2003 2002 2004 -2002 2002
(till (till (till
31.08.03) 31.08.03) 31.08.03)
Investment management & Advisory fees 0.33 0.30 0.30 1.25 1.25 1.25 1.25 1.25 1.25
Additional Fees (if any) - - - - - - - - -
Trustee Fees 0.01 0.01 0.00 0.01 0.00 0.00 0.01 0.00 0.00
Custodian Fees 0.00 0.00 0.00 0.01 0.02 0.09 0.00 0.01 0.02
Registrar & Transfer Agent Fees 0.01 0.03 0.05 0.11 0.10 0.11 0.11 0.10 0.08
Bank Charges 0.00 0.00 0.00 0.06 0.01 0.00 0.01 0.01 0.00
Posting & Mailing Exp. 0.04 0.00 0.00 0.10 0.05 0.05 0.00 0.00 0.00
Brokerages 0.00 0.14 0.19 0.06 0.15 0.11 0.00 0.03 0.00
Advertisement/ Marketing / Printing expenses 0.00 0.10 0.03 0.20 0.39 0.29 0.05 0.07 0.02
Audit Fees 0.00 0.02 0.03 0.00 0.03 0.07 0.00 0.02 0.07
Other Expenses (including expenses as 0.21 0.00 0.00 0.20 0.00 0.03 0.07 0.01 0.06
permitted under the Regulations)
Total Annual Recurring Expenses 0.60 0.60 0.60 2.00 2.00 2.00 1.50 1.50 1.50
* Unaudited
59

Prudential ICICI Mutual Fund
(% Per annum of average net assets)
Description Short Term Plan FMP Yearly 5 Long Term Plan Sweep Plan
*2003- 2002- 2001- *2003- 2002- 2001- *2003- 2002 2001- *2003- 2003 2001-
2004 2003 2002 2004 2003 2002 2004 -2003 2002 2004 -2002 2002
(till (till (till
31.08.03) 31.08.03) 31.08.03)
Investment management & Advisory fees 0.39 0.45 0.74 0.30 0.30 0.30 0.45 0.44 0.70 0.45 0.48 0.74
Additional Fees (if any) - - - - - - - - - - - -
Trustee Fees 0.01 - - 0.10 0.01 - 0.01 - - 0.01 - -
Custodian Fees 0.01 0.01 0.01 0.01 0.01 - 0.01 0.01 - - - -
Registrar & Transfer Agent Fees 0.03 0.04 0.04 0.04 0.02 - - - - - - -
Bank Charges - 0.01 - - - - - -
Posting & Mailing Exp. - - - - - - - 0.02 - - - -
Brokerages 0.23 0.40 0.13 0.03 0.24 0.18 0.07 0.09 - - - -
Advertisement/ Marketing / - 0.08 0.05 - 0.02 0.05 - 0.03 0.01 - 0.43 0.32
Printing expenses
Audit Fees - - 0.01 0.01 - 0.07 - - 0.09 - 0.11 0.19
Other Expenses (including expenses 0.23 0.01 0.02 0.11 - - 0.06 0.01 - 0.54 0.01 -
as permitted under the Regulations)
Total Annual Recurring Expenses 0.90 1.00 1.00 0.60 0.60 0.60 0.60 0.60 0.80 1.00 1.03 1.25
* Unaudited
@ This is the expenses ratio for the Scheme. The ratio for recurring expenses for Normal Plan and for Institutional Plan for
the period ended March 31, 2003 is 1.00% and 0.80% respectively and for the period ended August 31, 2003 is 1.00%
and 0.80% respectively.
(% Per annum of average net assets)
Description Index Plan FMP Yearly 6 FMP Yearly 7 Flexible Income Dynamic Plan FMP
Plan Yearly 8
*2003- 2002- 2001- *2003- 2002- *2003- 2002- *2003- 2002- *2003- 2002- 2002-
2004 2003 2002 2004 2003 2004 2003 2004 2003 2004 2003 2003
(till (till (till
31.08.03) 31.08.03) 31.08.03)
Investment management & 0.40 0.49 0.70 0.25 0.25 0.25 0.25 0.40 0.40 1.00 1.00 -
Advisory fees
Additional Fees (if any) - - - - - - - - - - - -
Trustee Fees 0.01 0.01 - 0.02 - 0.01 - 0.01 - 0.01 - -
Custodian Fees 0.10 0.05 - 0.01 0.01 - - - - 0.02 0.02 -
Registrar & Transfer Agent Fees 0.24 0.32 0.07 0.03 0.02 0.02 0.02 0.01 0.01 0.11 0.15 0.10
Bank Charges - 0.01 - - - - 0.01 0.02 0.09 0.04 -
Posting & Mailing Exp. - - - - - - - - - 0.01 - -
Brokerages 0.12 0.19 - - 0.30 - 0.10 0.23 0.38 0.26 0.59 -
Advertisement/ Marketing / 0.19 0.15 0.41 - 0.02 - 0.13 0.02 0.18 0.21 0.18 0.49
Selling expenses
Audit Fees - 0.02 0.07 - - - 0.10 - - - 0.01 -
Other Expenses (including 0.19 0.01 - 0.29 - 0.32 - 0.32 0.01 0.29 0.01 0.01
expenses as permitted under
the Regulations)
Total Annual Recurring Expenses 1.25 1.25 1.25 0.60 0.60 0.60 0.60 1.00 1.00 2.00 2.00 0.60
* Unaudited
60

Prudential ICICI Balanced Fund
Description Floating Rate Plan FMP Yearly - 12 SPIcE Flexible
Income
Plus Plan
*2003-2004 2002-2003 *2003-2004 2002-2003@ *2003-2004 2002-2003 *2003-2004
(till 31.08.03) (till 31.08.03) (till 31.08.03) (till 31.08.03)
Investment management & 0.32 0.45 0.22 0.19 0.40 0.40 0.40
Advisory fees
Additional Fees (if any) - - - - - - -
Trustee Fees 0.12 - 0.01 - - - -
Custodian Fees - - 0.01 - 0.02 0.02 -
Registrar & Transfer Agent Fees 0.07 0.10 0.01 0.01 0.13 0.23 0.01
Bank Charges 0.06 - - - - - -
Posting & Mailing Exp. - - - - - - -
Brokerages 0.06 0.01 0.06 0.10 - - -
Advertisement/ Marketing / 0.04 0.16 - - 0.10 0.08 -
Printing expenses
Audit Fees - 0.02 - 0.11 0.00 0.04 -
Other Expenses (including expenses 0.08 - 0.25 - 0.15 0.03 0.09
as permitted under the Regulations)
Total Annual Recurring Expenses 0.75 0.74 0.56 0.41 0.80 0.80 0.50
* Unaudited
@ This is the expenses ratio for the Scheme. The ratio for recurring expenses for Normal Plan and for Institutional Plan for
the period ended March 31, 2003 is 0.75% and 0.20% respectively and for the period ended August 31, 2003 is 0.75%
and 0.20% respectively.
a. Condensed Financial Information for the period ended March 31, 2001.
Premier Power Growth Income Liquid FMCG
Historical Per Unit Statistics
Date of Allotment February 7, October 1, July 9, July 9, June 24, March 31,
1994 1994 1998 1998 1998 1999
NAV at the beginning of the year (Rs.)
Growth Option 11.93 20.48 31.14 12.54 11.7855 11.28
Dividend Option - - 18.10 10.26 11.7855 10.29
Net Income per unit (0.53) (7.28) (5.72) 1.18 0.99 (1.04)
Dividends - - - 1.1358@ 1.0278@ -
Transfer to Reserves - - - - - -
Compounded Annualised Returns 1.32% 0.34% 23.19% 12.68% 9.71% -4.83%
(Based ib NAVs of Growth Option)
Net Assets end of period (Rs.crore) 56.58 34.34 327.62 2078.18 956.84 61.37
NAV at the end of the period 10.10 10.22
Growth Option - - 17.67 13.85 12.9252 9.06
Dividend Option - - 9.27 10.21 11.8316 8.30
Ratio of Recurring Exps to Net Assets 2.50% 2.50% 2.27% 1.64% 0.98% 2.00%
61

Prudential ICICI Mutual Fund
Tax Plan Gilt Gilt Balanced Technology Monthly
Treasury Investment Fund Fund Income Plan
Historical Per Unit Statistics
Date of Allotment August 19, August 19, August 19, November 03, March 3, November 10,
1999 1999 1999 1999 2000. 2000
NAV at the beginning of the year (Rs.)
Growth Option 20.10 10.9598 11.1684 12.92 8.74 #
Dividend Option 14.61 10.3667 10.4637 11.98 8.74 #
Net Income per unit (4.22) 1.70 1.24 (2.83) (5.18) 0.39
Dividends - 1.0173@ 1.1370@ - - 0.4520@
Transfer to Reserves - - - - - -
Compounded Annualised Returns 2.03% 12.28% 14.84% -12.21% -64.27% 5.50%*
(Based on NAVs of Growth Option)
Net Assets end of period (Rs. Crore) 55.14 90.46 190.63 237.35 178.94 72.78
NAV at the end of the period
Growth Option 10.33 12.0590 12.5063 8.32 3.30 10.5504
Dividend Option 7.54 10.3315 10.5267 7.69 3.30
Monthly Option 10.0910
Quarterly Option 10.1817
Half Yearly Option 10.1823
Ratio of Recurring Exps to Net Assets 2.00% 1.00% 1.00% 2.25% 2.32% 2.00%
Fixed Fixed Fixed Fixed Fixed Fixed Fixed
Monthly Monthly Monthly Monthly Monthly Monthly Monthly
Plan - Plan – Plan – Plan – Plan – Plan – Plan –
Quarterly Half Yearly Yearly Quarterly Quarterly Half Yearly Yearly
Series 1 Series 1 Series 1 Series 2 Series 3 Series 2 Series 2
Historical Per Unit Statistics
Date of Allotment December 20, December 20, December 20, January 22, February 20, March 22, March 22,
2000 2000 2000 2001 2001 2001 2001
NAV at the beginning of the year (Rs.)
Growth Option # # # # # # #
Dividend Option # # # # # # #
Net Income per unit 0.1746 0.23 0.28 0.17 0.09 0.01 0.02
Dividends 0.6053@ 0.3666@ - - - - -
Transfer to Reserves - - - - - - -
Compounded Annualised Returns 3.05%* 2.80%* 3.35%* 1.81%* 1.02%* 0.09%* 0.36%*
(Based on NAVs of Growth Option)
Net Assets end of period (Rs. Crore) 130.74 2.51 10.06 9.75 80.94 3.26 95.08
NAV at the end of the period
Growth Option 10.3045 10.2803 10.3352 10.1812 10.1020 10.0093 10.0356
Dividend Option 10.0643 10.2803 10.3352 10.1812 10.1020 10.0093 10.0356
Ratio of Recurring Exps to Net Assets 0.50% 0.55% 0.60% 0.50% 0.50% 0.55% 0.60%
Notes:
The figures for Prudential ICICI Monthly Income Plan and Prudential ICICI Fixed Maturity Plan are for the period from the date of
opening of the scheme.
Returns since inception are for the growth plan in each case.
From current year, while arriving at Net Income per unit, Income Equalisation Reserve has not been considered.
* Prudential ICICI Fixed Maturity Plan and Prudential ICICI Monthly Income Plan have not completed one year since the
date of their launch. Returns are computed in absolute terms and for Growth Options only from the date of allotment.
The NAV on the date of allotment is taken as Rs.10 for computation of returns.
@ Including distribution tax.
# These schemes were launched during the year and were not in existence at the beginning of the year.
62

. Condensed Financial Information for the period ended March 31, 2002.
Prudential ICICI Balanced Fund
Premier Power Growth Income Liquid FMCG
Historical Per Unit Statistics
Date of Allotment February 7, 1994 October 1, 1994 July 9, 1998 July 9, 1998 June 24, 1998 March 31, 1999
NAV at the beginning of the year (Rs.)
Growth Option 10.10 10.22 17.67 13.85 12.9252 9.06
Dividend Option - - 9.27 10.21 11.8316 8.30
Net Income per unit 0.82 (2.37) (1.91) 1.85 1.06 (2.15)
Dividends - - 0.80 @1.5428 @0.8994 -
Transfer to Reserves - - - - - -
Compounded Annualised Returns 2.82% 2.39% 20.40% 13.83% 9.21% -4.24%
(Based on NAVs of Growth Option)
Benchmark Index Nifty Nifty Nifty N.A N.A CNX FMCG
Return compared to Benchmark Index # # # # # # 4.43% N.A N.A -7.43%
Net Assets end of period (Rs.crore) 51.08 29.87 350.22 2711.89 1372.62 53.60
NAV at the end of the period
Growth Option ##11.54 11.94 19.98 16.21 13.9383 8.78
Dividend Option - - 9.71 10.33 11.8273 8.05
Ratio of Recurring Exps to Net Assets 2.50% 2.50% 2.33% 1.60% 0.99% 2.04%
Tax Plan Gilt Treasury Gilt Balanced Technology Monthly Gilt
Investment Fund Fund Income Treasury
Plan 1 YearPlus
Plan
Historical Per Unit Statistics
Date of Allotment August 19, August 19, August 19, November 03, March 3, November 10, April 30,
1999 1999 1999 1999 2000 2000. 2001.
NAV at the beginning of the year (Rs.)
Growth Option 10.33 12.0590 12.5063 8.32 3.30 10.5504 #
Dividend Option 7.54 10.3315 10.5267 7.69 3.30
Monthly Option - - - - - 10.0910 -
Quarterly Option - - - - - 10.1817 -
Half Yearly Option - - - - - 10.1823 -
Net Income per unit (0.30) 1.92 2.20 (0.85) (1.81) 0.97 0.87
Dividends
Dividend Option - @1.2452 @2.5897 - - - @0.8321
Monthly option - - - - - @1.0230 -
Quarterly option - - - - - @1.0800 -
Half Yearly Option - - - - - @1.0965 -
Transfer to Reserves - - - - - - -
Compounded Annualised Returns 10.55% 12.23% 20.06% -3.01% -41.80% 12.44% 8.69%*
(Based on NAVs of Growth Option)
Benchmark Index Nifty N.A N.A Nifty ET Mindex N.A N.A
Return compared to Benchmark Index -6.45% N.A N.A -6.45% -51.05% N.A N.A
Net Assets end of period (Rs. Crore) 72.46 80.58 466.50 189.52 160.09 123.58 185.93
NAV at the end of the period
Growth Option 13.00 13.5238 16.1344 9.29 3.25 11.7643 -
Dividend Option 9.48 10.2799 10.8319 8.58 3.25 - 10.0213
Monthly Option - - - - - 10.1792 -
Quarterly Option - - - - - 10.2228 -
Half Yearly Option - - - - - 10.2187 -
Ratio of Recurring Exps to Net Assets 2.14% 1.08% 1.13% 2.30% 2.41% 2.00% 0.30%
63

Prudential ICICI Mutual Fund
Fixed Maturity Fixed Maturity Fixed Maturity Fixed Maturity Fixed Maturity
Plan - Quarterly 1 FPlan –Half Yearly 1 Plan –Yearly 1 Plan - Quarterly 2 Plan – Quarterly 3
Historical Per Unit Statistics
Date of Allotment December 20. 2000 December 20, 2000 December 20, 2000 January 22, 2001 February 20, 2001
NAV at the beginning of the year (Rs.)
Growth Option 10.3045 10.2803 10.3352 10.1812 10.1020
Dividend Option 10.0643 10.2803 10.3352 10.1812 10.1020
Net Income per unit 32.49 2.48 1.05 4.17 2.05
Dividends @0.8781 @0.9015 @1.0473 @0.8543 @0.9234
Transfer to Reserves - - - - -
Compounded Annualised Returns 9.34% 9.27% 9.77% 8.69% 9.49
(Based on NAVs of Growth Option)
Benchmark Index N.A N.A N.A N.A N.A
Return compared to Benchmark Index N.A N.A N.A N.A N.A
Net Assets end of period (Rs. Crore) 3.52 10.22 8.65 17.71 16.92
NAV at the end of the period
Growth Option 11.2079 11.1988 11.2644 11.0390 11.0555
Dividend Option 10.0378 10.2373 10.1970 10.1450 10.0855
Ratio of Recurring Exps to Net Assets 0.51% 0.55% 0.60% 0.54% 0.53%
Fixed Maturity Fixed Maturity Fixed Maturity Fixed Maturity
Plan – Half Yearly 2 Plan – Yearly 2 Plan – Yearly 3 Plan – Yearly 4
Historical Per Unit Statistics March 22, March 22, June 21, September 20,
Date of Allotment 2001 2001 2001 2001
NAV at the beginning of
the year (Rs.)
Growth Option 10.0093 10.0356 # #
Dividend Option 10.0093 10.0356 # -
Net Income per unit 0.5520 0.99 0.67 0.39
Dividends @0.7765 @0.9231 - -
Transfer to Reserves - - - -
Compounded Annualised Returns 8.15% 10.03% 6.75%* 4.38%*
(Based on NAVs of Growth Option)
Benchmark Index N.A N.A N.A N.A
Return compared to Benchmark Index N.A N.A N.A N.A
Net Assets end of period (Rs. Crore) 0.16 102.28 7.80 6.36
NAV at the end of the period
Growth Option 10.8363 11.0292 10.6753 10.4381
Dividend Option 10.0388 10.0110 10.6753 10.4381
Ratio of Recurring Exps to Net Assets 0.55% 0.60% 0.60% 0.60%
64

Prudential ICICI Balanced Fund
Child Care Child Care Short term Plan Fixed Maturity
Plan- Gift option Plan- Study option Plan – Yearly 5
Historical Per Unit Statistics
Date of Allotment August 31, 2001 August 31, 2001 October 25, 2001 March 22, 2002
NAV at the beginning of
the year (Rs.)
Growth Option # # # #
Dividend Option - - - -
Net Income per unit 0.45 0.50 0.33 0.01
Dividends - - 0.3430@ -
Transfer to Reserves - - - -
Compounded Annualised Returns 11.60%* 8.90%* 3.92%* 0.35%*
(Based on NAVs of Growth Option)
Benchmark Index Nifty N.A N.A N.A
Return compared to Benchmark Index 7.19 N.A N.A N.A
Net Assets end of period (Rs. Crore) 7.38 7.85 418.32 85.40
NAV at the end of the period
Growth Option 11.16 10.89 10.3915 10.0354
Dividend Option - - 10.0433 -
Ratio of Recurring Exps to Net Assets 2.00% 1.50% 1.00% 0.60%
Index Fund Long term Plan Sweep Plan
Historical Per Unit Statistics
Date of Allotment February 26, 2002 March 28, 2002 March 6, 2002
NAV at the beginning of the year (Rs.)
Growth Option 10.0000 10.0000 10.0000
Dividend Option - - -
Net Income per unit 0.01 0.01 0.03
Dividends - - -
Transfer to Reserves - - -
Compounded Annualised Returns
(Based on NAVs of Growth Option) -4.80%* 0.10%* 0.52%*
Benchmark Index Nifty N.A N.A
Return compared to Benchmark Index -5.03% N.A N.A
Net Assets end of period (Rs. Crore) 7.73 50.05 5.31
NAV at the end of the period
Growth Option 9.52 10.0096 10.0520
Dividend Option - - -
Ratio of Recurring Exps to Net Assets 1.25% 0.80% 1.25%
Notes:
Returns since inception are for the growth plan in each case except for Prudential ICICI Gilt Fund – One Year Plus Plan in which
Growth Option is not available.
From current year, while arriving at Net Income per unit, Income Equalisation Reserve and marked to market has not been
considered and it is calculated on the basis of closing units as on March 31, 2002.
The Compounded annualized returns of each scheme are computed from inception of the Scheme till the end of the period of
the respective condensed financial information whereas the returns compared to benchmark index are computed for the
financial year.
* Prudential ICICI Fixed Maturity Plan- Yearly 3,4 &5, Prudential ICICI Gilt Treasury 1 Year Plus Plan, Prudential ICICI Child
Care Plan – Gift Plan & Study Plan, Prudential ICICI Short Term Plan, Prudential ICICI Long Term Plan, Prudential ICICI
Sweep Plan and Prudential ICICI Index Fund have not completed one year since the date of their launch. Returns are
computed in absolute terms and for Growth Options only from the date of allotment. The NAV on the date of allotment
is taken as Rs.10 for computation of returns.
@ Including distribution tax.
# These Schemes were launched during the year and these schemes were not in existence at the beginning of the year.
## Dividend was declared under ICICI Premier for all the unitholders as on July 25, 1995 @Rs. 0.80 per unit. For computation
of returns NAV of ICICI Premier has been considered after adjusting the dividend declaration.
### As these schemes were launched before the launch of Nifty, Benchmark index returns are not provided.
65

Prudential ICICI Mutual Fund
c. Condensed Financial Information for the period ended March 31, 2003.
Premier Power Growth Income Liquid FMCG Tax Plan Gilt Treasury
Historical Per Unit Statistics
Date of Allotment February 7, October 1, July 9, July 9, June 24, March 31, August 19, August 19,
1994 1994 1998 1998 1998 1999 1999 1999
NAV at the beginning of the year (Rs.) - - - - - - -
NAV at the beginning of the year (Rs.) 11.54 11.94
Growth Option 19.98 16.21 13.9383 8.78 13.00 13.5238
Dividend Option - - 9.71
10.33 11.8273 8.05 9.48 10.2799
Net Income per unit 1.70 1.22 (0.30) 1.56 0.87 0.25 0.83
1.46
Dividends - 2.70 - 0.45 0.7558 - - 0.1910
Transfer to Reserves - - - - - - - -
Compounded Annualised Returns 3.41% 2.96% 13.26% 13.28% 8.68% -8.04% 3.79% 10.51%
(Based on NAVs of Growth Option)
Benchmark Index Crisil Nifty Nifty Crisil Crisil CNXFMCG Nifty I-Sec
Balanced Composite Liquid Si-Bex
fund Index Bond fund fund Index
Return compared to Benchmark Index @ @ 3.30% 0.44% 0. 64% 5.60% 1.56% -1.60%
Net Assets end of period (Rs.crore) 15.70 31.68 275.91 3173.49 1544.91 33.47 24.14 34.50
NAV at the end of the period (Rs.) 12.50 - - - - - - -
Growth Option - 12.81 18.02 18.0347 14.8729 7.15 11.44 14.3534
Dividend Option - 10.28 8.76 11.0188 11.8419 6.56 8.34 10.7122
Monthly Option - - - - 11.8699 - - -
Institutional Option Growth - - - 18.0374 14.8760 - - -
Institutional Option Dividend - - - 11.0196 11.8419 - - -
Ratio of Recurring Exps to 2.50% 2.47% 2.33% 1.59% 0.99% 2.05% 2.15% 1.10%
Net Assets - Regular Plan -Annualised
Ratio of Recurring Exps to Net Assets-
Institutional Plan-Annualised - 1.10% 0.75%
66

Prudential ICICI Balanced Fund
Gilt Balanced Technology Monthly Fixed Fixed Fixed Gilt
Investment Fund Fund Income Plan Maturity Maturity Maturity Treasury
Plan - Qtly 1 Plan – Plan –Yearly 1 1 Year Plus
Half Yearly 1
Plan***
Historical Per Unit Statistics
Date of Allotment August 19, November 03, March 3, November 10, December 20, December 20, December 20, April 30,
1999 1999 2000 2000 2000 2000 2000 2001
NAV at the beginning of
the year (Rs.)
Growth Option 16.1344 9.29 3.25 11.7643 11.2079 11.1988 11.2644 -
Dividend Option 10.8319 8.58 3.25 - 10.0378 10.2373 10.1970 10.0213
Monthly Option - - - 10.1792 - - -
Quarterly Option - - - 10.2228 - - - -
Half Yearly Option - - - 10.2187 - - - -
Net Income per unit 1.88 0.68 (0.35) 1.02 0.14 5.90 13.82 N.A.
Dividends 0.4320 - - - - - -
Monthly option - - - 0.6692 - - - -
Quarterly option - - - 0.6963 - - - -
Half-Yearly Option - - - 0.7346 - - - -
Transfer to Reserves - - - - - - - -
Compounded Annualised 17.56% -1.90% -34.50% 10.69% 7.99% 7.97% 8.27% -
Returns (Based on NAVs of
Growth Option)
Benchmark Index I –Sec Crisil ET Crisil MIP
Si-Bex Balanced MINDEX Blended
Fund Index Index $ $ $ —
Return compared to 2.65% 4.95% 6.58% 1.60% # # # —
Benchmark Index
Net Assets end of period 457.20 153.86 111.25 275.36 34.98 0.51 0.43 -
(Rs. Crore)
NAV at the end of the period
Growth Option 17.9508 9.37 2.72 12.7427 11.9131 11.9083 11.9840 -
Dividend Option 11.5832 8.65 2.72 - 10.6695 10.8855 10.8482 -
Monthly Option - - - 10.3323 - - - -
Quarterly Option - - - 10.3550 - - - -
Half Yearly Option - - - 10.3177 - - - -
Institutional Option – 10.6701
Monthly Dividend
Ratio of Recurring Exps to 1.15% 2.34% 2.42% 1.58% 0.55% 0.55% 0.60% 0.30%
Net Assets
Ratio of Recurring Exps to
Net Assets-Institutional
Plan- Annualised 0.25%
67

Prudential ICICI Mutual Fund
Fixed Fixed Fixed Fixed Fixed Fixed Child Care Child Care Short Term
Maturity Maturity Maturity Maturity Maturity Maturity Plan-Gift Plan-Study Plan
Plan - Plan – Plan – Half Plan – Plan – Plan - Option Option
Quarterly 2 Quarterly 3 Yearly 2 Yearly 2 Yearly 3 Yearly 4
Historical Per Unit Statistics
Date of Allotment January February March March June Sept August August October
22, 2001 20, 2001 22, 2001 22, 2001 21, 2001 20, 2001 31, 2001 31, 2001 25, 2001
NAV at the beginning of 11.16 10.89
the year (Rs.)
Growth Option 11.0390 11.0555 10.8363 11.0292 10.6753 10.4381 10.3915
Dividend Option 10.1450 10.0855 10.0388 10.0110 10.6753 10.4381 - - 10.0433
Net Income per unit 3.00 1.69 2.25 0.61 0.69 269.99 0.20 0.57 1.14
Dividends 0.1847 0.1788 - - - - - - 0.0924
Transfer to Reserves - - - - - - - - -
Compounded Annualised 7.68% 7.86% 6.84% 8.44% 8.22% 7.48% 4.16% 8.76% 8.47%
Returns (Based on NAVs of
Growth Option)
Benchmark Index $ $ $ $ $ $ Crisil Crisil MIP Crisil
Balanced Blended Composite
Fund Index Index Bond Fund
Return compared to $ $ $ $ $ $ -0.76% -1.88% -2.49%
Benchmark Index
Net Assets end of period 0.92 5.51 0.04 10.51 20.41 0.01 10.72 12.36 1078.83
(Rs. Crore)
NAV at the end of the period 10.67 11.42
Growth Option 11. 7551 11.7293 11.4328 11.7817 11.5055 11.1635 11.2323
Dividend Option 10.6074 10.5122 10.5916 10.6939 11.5055 11.1635 - - 10.7561
Institutional Option Growth - - - - - - - - 11.2345
Ratio of Recurring Exps to 0.55% 0.55% 0.55% 0.60% 0.60% 0.60% 2.00% 1.50% 1.00%
Net Assets
Ratio of Recurring Exps to - - - - - - - - 0.80%
Net Assets-Institutional Plan-
Annualised
Fixed Maturity Index Fund Long term Sweep Plan Fixed Maturity Fixed Maturity
Plan – Yearly 5 Plan One Year Plan – One Year Plan –
Series 6 Series 7
Historical Per Unit Statistics
Date of Allotment March 22, February 26, March 28, March 6, June 28, August, 19,
2002 2002 2002 2002 2002 2002
NAV at the beginning of 9.5200 10.0520 # #
the year (Rs.)
Growth Option 10.0354 10.0096
Dividend Option - - - - - -
Net Income per unit 0.85 (0.44) 0.79 0.20 0.66 0.32
Dividends - - - - - -
Transfer to Reserves - - - - - -
Compounded Annualised Returns 8.43% -15.45% 13.52% 5.15% 6.55%* 3.14%*
(Based on NAVs of Growth Option)
Benchmark Index $ Nifty Crisil Crisil $ $
Composite Liquid Fund
Bond Fund
Index
Return compared to Benchmark Index # 0.89% 3.16% -1.10% # #
Net Assets end of period (Rs. Crore) 93.77 13.51 234.34 22.86 139.96 1.27
NAV at the end of the period 8.3278 11.3634 10.5508 10.6555 10.3140
Growth Option 10.8643 - - - - -
Dividend Option 10.8643 - - - - -
Ratio of Recurring Exps to Net Assets 0.60% 1.25% 0.60% 1.03% 0.60% 0.60%
Ratio of Recurring Exps to Net Assets- - - - - - -
Institutional Plan-
Annualised
68

Prudential ICICI Balanced Fund
Fixed Flexible Dynamic Plan SPICE Fixed Floating
Maturity Plan – Income Plan Maturity Plan – Rate Plan
Yearly 8*** Yearly 12
Historical Per Unit Statistics
Date of Allotment September 17, September 27, October 31, January 10, March 21, March 29,
2002 2002 2002 2003 2003 2003
NAV at the beginning of the year (Rs.) # # # # # #
Net Income per unit NA 0.73 (0.15) (0.04) 0.01 0.004
Dividends - - - - - -
Transfer to Reserves - - - - -
Compounded Annualised Returns Nil 7.74%* 2.80%* -9.40%* 0.19%* 0.05%*
(Based on NAVs of Growth Option)
Benchmark Index $ I-Sec Si-Bex Nifty SENSEX $ CRISIL
Liquid Fund
Index
Return compared to Benchmark Index # 4.20% 0.14% -0.16% # @@
Net Assets end of period (Rs. Crore) 0.00 587.77 78.31 19.35 42.23 528.11
NAV at the end of the period - 10.7745 10.2799 30.4342 10.0046
Growth Option 10.0191
Dividend Option - - - - - -
Institutional Option Growth 10.0208
Ratio of Recurring Exps to Net Assets 0.60% 1.00% 2.00% 0.80% 0.75% 0.75%
Ratio of Recurring Exps to Net Assets-
Institutional Plan-
Annualised - - - - 0.20% -
Notes:
1. Returns since inception are for the growth plan in each case.
2. While arriving at Net Income per unit, Income Equalisation Reserve and mark to market has not been considered and it is
calculated on the basis of closing units as of March 31, 2003.
3. The Compounded annualized returns of each scheme are computed from inception of the Scheme till the end of the
period of the respective condensed financial information whereas the returns compared to benchmark index are computed
for the financial year.
* Fixed Maturity One Year Plan – Series 6, 7, 8, Fixed Maturity Plan – Yearly 12, Prudential ICICI Flexible Income Plan,
Prudential ICICI Dynamic Plan, SENSEX Prudential ICICI Exchange Traded Fund and Prudential ICICI Floating Rate
Plan have not completed one year since the date of their launch. Returns are computed in absolute terms and for
Growth Options only from the date of allotment. The NAV on the date of allotment is taken as Rs.10 for computation
of returns
*** All the units holders under the schemes- Prudential ICICI Gilt Fund Treasury 1 Year Plus Plan and Prudential ICICI
Fixed Maturity Yearly Plan Series 8 have redeemed their unit holdings and units are nil as on 31/03/03
# These Schemes were launched during the year and these schemes were not in existence at the beginning of the year.
## Dividend was declared under ICICI Premier for all the unitholders as on July 25, 1995 @Rs. 0.80 per unit. For
computation of returns NAV of ICICI Premier has been considered after adjusting the dividend declaration.
$ Appropriate benchmark index is not available.
@ As these schemes were launched before the launch of the respective benchmarks, Benchmark indices returns are not
provided
@@ Since the units under Scheme were allotted on March 29, 2003 the return compared to Benchmark Index detail is
not provided..
69

Prudential ICICI Mutual Fund
d) Condensed Financial Information for the period ended August 31, 2003**
Premier Power Growth Income Liquid FMCG Tax Plan Gilt Treasury
Historical Per Unit Statistics
Date of Allotment February 7, October 1, July 9, July 9, June 24, March 31, August 19, August 19,
1994 1994 1998 1998 1998 1999 1999 1999
NAV at the beginning of the year (Rs.) 12.50 - - - - - - -
Growth Option - 12.81 18.02 18.0347 14.8729 7.15 11.44 14.3534
Dividend Option - 10.28 8.76 11.0188 11.8419 6.56 8.34 10.7122
Monthly Option - - - - 11.8699 - - -
Quarterly Option - - - - - - - -
Half Yearly Option - - - - - - - -
Institutional Option - Growth - - - 18.0374 14.8760 - - -
Institutional Monthly Option – Div. - - - - - - - -
Institutional Option - Dividend - - - 11.0196 11.8419 - - -
@@@ Net Income per unit 0.66 1.05 3.33 0.6670 0.2687 0.1727 3.39 0.7889
Dividends - 2.00 0.80 - - - 1.20 0.7100
Dividend Option (weekly) - - - - 0.2594 - - -
Institutional Dividend (Weekly) - - - - 0.2601 - - -
Monthly Option - - - - 0.2912 - - -
Quarterly Option - - - 0.2600 - - - -
Quarterly Option -Institutional 0.2700
Half yearly Option - - - 0.6769 - - - -
Half yearly Option - Institutional - - - 0.6769 - - - -
Fortnightly Dividend Option - - - - - - - -
Institutional Fortnightly Dividend Option - - - - - - - -
Institutional Monthly Dividend Option - - - - 0.2238 - - -
Institutional Daily Dividend Option - 0.2606 - -
Dividend Option Daily - 0.2481 - -
Transfer to Reserves - - - - - - - -
Compounded Annualised Returns ) 4.17% 8.54% 21.25% 13.52% 8.40% 0.52% 19.93% 10.89
(Based on NAVs of Growth Option
Benchmark Index Crisil Nifty Nifty Crisil Crisil CNX FMCG Nifty I-Sec
Balanced Composite Liquid fund Si-Bex
fund Index Bond fund Index
Index
Return compared to Benchmark Index @ @ 10.48% 0.24% 0.23% 12.20% 43.38% 0.71%
Net Assets end of period (Rs.crore) 15.25 289.65 374.39 3,901.56 3,051.94 39.48 37.41 33.83
NAV at the end of the period ##13.60 - - - - - - -
Growth Option - 20.78 26.96 19.2059 15.1981 10.23 20.82 15.1741
Dividend Option - 14.34 12.17 10.0273 11.8387 9.38 13.74 10.6004
Dividend Option (Daily) - - - - 11.8508 - - -
Dividend (Fortnightly) - - - - - - - -
Monthly Option - - - - 11.8352 - - -
Quarterly Option - - - 11.4680 - - - -
Half yearly Option - - - - - - - -
Institutional Option Growth - - - 19.2475 15.2168 - - -
Institutional Fortnightly Option –Dividend - - - - - - - -
Institutional Monthly Option – Dividend - - - - 11.9145 - - -
Institutional Option Dividend – Daily - - - - 11.8508 - - -
Institutional Option Dividend – Quarterly - - - 11.4816 - - - -
Institutional Option Dividend - - - 11.0503 11.8500 - - -
Ratio of Recurring Exps to Net Assets - 2.50% 2.41% 2.33% 1.59% 0.72% 2.05% 2.15% 1.10%
Regular Plan -Annualised
Ratio of Recurring Exps to Net Assets-
Institutional Plan-
Annualised - - - 1.10% 0.55% - - -
** Un-audited
70

Prudential ICICI Balanced Fund
Gilt Balanced Technology Monthly Fixed Maturity Fixed Maturity Fixed Maturity
Investment Fund Fund Income Plan Plan - Qtly 1 Plan – Half Plan –Yearly 1
Yearly 1
Historical Per Unit Statistics
Date of Allotment August 19, November 03, March 3, November 10, December 20, December 20, December 20,
1999 1999 2000 2000 2000 2000 2000
NAV at the beginning of the year (Rs.)
Growth Option 17.9508 9.37 2.72 12.7427 11.9131 11.9083 11.9840
Dividend Option 11.5832 8.65 - - 10.6695 10.8855 10.8482
Monthly Option - - - 10.3323 - - -
Quarterly Option - - - 10.3550 - - -
Half Yearly Option - - - 10.3177 - - -
Institutional Option - Growth - - - - - - -
Institutional Monthly Option – Div. - - - - - - -
Institutional Option - Dividend - - - - 10.6701 - -
@@@ Net Income per unit 1.5664 2.20 (0.02) 0.5532 11.8487 3.1368 0.6258
Dividends 1.3700 - - -
- 0.9947 -
Institutional Dividend - - - - 0.1692 - -
Dividend Option (weekly) - - - - - - -
Institutional Dividend (Weekly) - - - - - - -
Monthly Option - - - 0.3700 - - -
Quarterly Option - - - 0.3949 - - -
Half yearly Option - - - 0.4000 - - -
Half yearly Option - Institutional - - - - - - -
Fortnightly Dividend Option - - - - - - -
Institutional Fortnightly Dividend Option - - - - - - -
Institutional Monthly Dividend Option - - - - - - -
Institutional Daily Dividend Option - - - - - - -
Dividend Option Daily - - - - - - -
Transfer to Reserves - - - - - - -
Compounded Annualised Returns 18.22% 6.55% -24.93% 11.92% 7.58% ###7.33% 7.71%
(Based on NAVs of Growth Option)
Benchmark Index I –Sec Crisil ET Crisil MIP $ $ $
Li-Bex Balanced MINDEX Blended
Fund Index Index
Return compared to Benchmark Index -2.21% 11.21% 28.66% -2.09% # # #
Net Assets end of period (Rs. Crore) 544.43 143.36 132.16 336.00 0.52 0.02 0.06
NAV at the end of the period 3.67
Growth Option 19.6502 12.75 13.7169 12.1774 - 12.2176
Dividend Option 11.2633 11.78 - 10.0774 11.0588
Dividend Option (Daily) - - - - - - -
Dividend (Fortnightly) - - - - - - -
Monthly Option - - - 10.8076 - - -
Quarterly Option - - - 10.9422 - - -
Half yearly Option - - - 11.1062 - - -
Institutional Option Growth - - - - - - -
Institutional Fortnightly Option –Dividend - - - - - - -
Institutional Monthly Option – Dividend - - - - - - -
Institutional Option Dividend – Daily - - - - - - -
Institutional Option Dividend – Quarterly - - - - - - -
Institutional Option Dividend - - - - - - -
Ratio of Recurring Exps to Net Assets -
Regular Plan -Annualised 1.15% 2.37% 2.47% 1.50% 0.55% 0.55% 0.60%
Ratio of Recurring Exps to Net Assets-
Institutional Plan-
Annualised - - - - 0.25% - -
71

Prudential ICICI Mutual Fund
Fixed Fixed Fixed Fixed Fixed Fixed Child Care Child Care
Maturity Maturity Maturity Maturity Maturity Maturity Plan-Gift Plan-Study
Plan - Plan – Plan – Half Plan – Plan – Plan - Option Option
Quarterly 2 Quarterly 3 Yearly 2 Yearly 2 Yearly 3 Yearly 4
Historical Per Unit Statistics
Date of Allotment January 22, February 20, March 22, March 22, June 21, Sept 20, August 31, August 31,
2001 2001 2001 2001 2001 2001 2001 2001
NAV at the beginning of 10.67 11.42
the year (Rs.)
Growth Option 11.7551 11.7293 11.4328 11.7817 11.5055 11.1635 - -
Dividend Option 10.6074 10.5122 10.5916 10.6939 - - - -
Monthly Option - - - - - - - -
Quarterly Option - - - - - - - -
Half Yearly Option - - - - - - - -
Institutional Option - Growth - - - - - - - -
Institutional Monthly Option – Div. - - - - - - - -
Institutional Option - Dividend - - - - - - - -
@@@ Net Income per unit 144.9791 N.A. 0.2265 0.2579 N.A. 0.1777 0.76 0.39
Dividends 0.0975 0.1051 - - 0.7908 - - -
Dividend Option (weekly) - - - - - - - -
Institutional Dividend (Weekly) - - - - - - - -
Monthly Option - - - - - - - -
Quarterly Option - - - - - - - -
Half yearly Option - - - - - - - -
Half yearly Option - Institutional - - - - - - - -
Fortnightly Dividend Option - - - - - - - -
Institutional Fortnightly Dividend Option - - - - - - - -
Institutional Monthly Dividend Option - - - - - - - -
Institutional Daily Dividend Option - - - - - - - -
Dividend Option Daily - - - - - - - -
Transfer to Reserves - - - - - - - -
Compounded Annualised Returns 8.48% N.A. 6.44% 7.69% N.A 6.67% 22.68% 13.63%
(Based on NAVs of Growth Option)
Benchmark Index $ $ $ $ $ $ Nifty Crisil MIP
Blended
Index
Return compared to Benchmark Index $ $ $ $ $ $ 2.44% 2.63%
Net Assets end of period (Rs. Crore) 0.0027 N.A. 0.04 4.18 - 0.01 16.81 16.36
NAV at the end of the period - 11.3390 15.05 12.91
Growth Option 12.3611 - 11.6486 11.9844 - - - -
Dividend Option - - 10.7933 10.8774 - - - -
Dividend Option (Daily) - - - - - - - -
Dividend (Fortnightly) - - - - - - - -
Monthly Option - - - - - - - -
Quarterly Option - - - - - - - -
Half yearly Option - - - - - - - -
Institutional Option Growth - - - - - - - -
Institutional Fortnightly Option –Dividend - - - - - - - -
Institutional Monthly Option – Dividend - - - - - - - -
Institutional Option Dividend – Daily - - - - - - - -
Institutional Option Dividend – Quarterly - - - - - - - -
Institutional Option Dividend - - - - - - - -
Ratio of Recurring Exps to Net Assets 0.55% 0.55% 0.55% 0.60% 0.60% 0.60% 2.00% 1.50%
Ratio of Recurring Exps to Net Assets-
Institutional Plan-
Annualised - - - - - - - -
72

Prudential ICICI Balanced Fund
Short Term Fixed Index Fund Long term Sweep Fixed Fixed
Plan Maturity Plan– Plan Plan Maturity One Maturity
Yearly 5 Year Plan – One Year
Series 6 @@ Plan –
Series 7
Historical Per Unit Statistics
Date of Allotment October 25, March 22, February 26, March 28, March 6, July 21, August, 19,
2001 2002 2002 2002 2002 2003 2002
NAV at the beginning of the year (Rs.)
8.3278 10.5508 10.6555 10.3140
Growth Option 11.2323 10.8643 - 11.3634 - - -
Dividend Option 10.7561 - - - - - -
Monthly Option - - - - - - -
Quarterly Option - - - - - - -
Half Yearly Option - - - - - - -
Institutional Option - Growth 11.2345 - - - - - -
Institutional Monthly Option – Div. - - - - - - -
Institutional Option - Dividend - - - - - - -
@@@ Net Income per unit 0.2620 0.2004 0.2001 0.5980 0.2241 1,267.3147 0.1820
Dividends - - - - - - -
Dividend Option (weekly) - - - - - - -
Institutional Dividend (Weekly) - - - - - - -
Monthly Option 0.5271 - - - - - -
Quarterly Option - - - - - - -
Half yearly Option - - - - - - -
Half yearly Option - Institutional - - - - - - -
Fortnightly Dividend Option 0.2619 - - - - - -
Institutional Fortnightly Dividend Option 0.2784 - - - - - -
Institutional Monthly Dividend Option 0.3065 - - - - - -
Institutional Daily Dividend Option - - - - - - -
Dividend Option Daily - - - - - - -
Transfer to Reserves - - - - - - -
Compounded Annualised Returns 8.45% 7.12% 11.02% 13.92% 4.88% 6.69%* 4.78%*
(Based on NAVs of Growth Option)
Benchmark Index Crisil $ Nifty Crisil Crisil $ $
Short term Composite Liquid Fund
Bond Fund Bond Fund Index
Index
Return compared to Benchmark Index 0.48% # 1.92% 0.06% -0.21% # #
Net Assets end of period (Rs. Crore) 2,391.86 5.77 16.21 248.38 34.17 0.02 1.29
NAV at the end of the period - 11.0438 11.71 12.0441 10.7344 10.6689 10.4937
Growth Option 11.6190 - - - - - -
Dividend Option 10.5890 - - - - - -
Dividend Option (Daily) - - - - - - -
Dividend (Fortnightly) 10.6146 - - - - - -
Monthly Option - - - - - - -
Quarterly Option - - - - - - -
Half yearly Option - - - - - - -
Institutional Option Growth 11.6310 - - - - - -
Institutional Fortnightly Option –Dividend 10.8535 - - - - - -
Institutional Monthly Option – Dividend 10.8257 - - - - - -
Institutional Option Dividend – Daily - - - - - - -
Institutional Option Dividend – Quarterly - - - - - - -
Institutional Option Dividend - - - - - - -
Ratio of Recurring Exps to Net Assets 1.00% 0.60% 1.25% 0.60% 1.00% 0.60% 0.60%
Ratio of Recurring Exps to Net Assets-
Institutional Plan-
Annualised 0.80% - - - - - -
73

Prudential ICICI Mutual Fund
Flexible lexible Dynamic Plan SPICE Fixed Maturity Floating
Income Plan FIncome Plan – Rate Plan
Plus Plan Yearly 12
Historical Per Unit Statistics
Date of Allotment September 27, May 22, October 31, January 10, March 17, March 28,
2002 2003 2002 2003 2003 2003
NAV at the beginning of the year (Rs.) 10.7745 # 10.2799 30.4342 10.0046
Growth Option - - - - 10.0191 -
Dividend Option - - - - - -
Monthly Option - - - - - -
Quarterly Option - - - - - -
Half Yearly Option - - - - - -
Institutional Option - Growth - - - - 10.0208 -
Institutional Monthly Option – Div. - - - - - -
Institutional Option - Dividend - - - - - -
@@@ Net Income per unit 0.3046 0.3669 2.2752 1.1723 0.2992 0.2494
Dividends 0.8000 - - - - -
Dividend Option (weekly) - - - - - -
Institutional Dividend (Weekly) - - - - - -
Monthly Option - - - - - -
Quarterly Option - - - - - -
Half yearly Option - - - - - -
Half yearly Option - Institutional - - - - - -
Fortnightly Dividend Option - - - - - -
Institutional Fortnightly Dividend Option - - - - - -
Institutional Monthly Dividend Option - - - - - -
Institutional Daily Dividend Option - - - - - -
Dividend Option Daily - - - - - -
Transfer to Reserves - - - - - -
Compounded Annualised Returns *16.67% *4.36% *56.07% *28.07% *3.32% *2.17%
(Based on NAVs of Growth Option)
Benchmark Index I-Sec I-Sec Nifty BSE SENSEX $ CRISIL
Composite Composite Liquid Fund
Index Index
Return compared to Benchmark Index -0.86% 0.15% 13.05% 2.10% # 0.18%
Net Assets end of period (Rs. Crore) 1,663.87 52.04 111.34 23.38 45.22 49.20
NAV at the end of the period 10.4360 15.6065 43.0198 - 10.2167
Growth Option 11.6666 10.3317
Dividend Option 10.8374 - - - - -
Dividend Option (Daily) - - - - - -
Dividend (Fortnightly) - - - - - -
Monthly Option - - - - - -
Quarterly Option - - - - - -
Half yearly Option - - - - - -
Institutional Option Growth - - - - 10.3571 -
Institutional Fortnightly Option –Dividend - - - - - -
Institutional Monthly Option – Dividend - - - - - -
Institutional Option Dividend – Daily - - - - - -
Institutional Option Dividend – Quarterly - - - - - -
Institutional Option Dividend - - - - - -
Ratio of Recurring Exps to Net Assets 1.00% 0.50% 2.00% 0.80% 0.75% 0.75%
Ratio of Recurring Exps to Net Assets-
Institutional Plan-
Annualised - - - - 0.20% -
Notes:
1) Returns since inception are for the growth plan in each case.
2) While arriving at Net Income per unit, Income Equalisation Reserve and mark to market has not been considered and it is
calculated on the basis of closing units as of August 31, 2003.
3) The Compounded annualized returns of each scheme are computed from inception of the Scheme till the end of the
period of the respective condensed financial information whereas the returns compared to benchmark index are computed
for the financial year.
74

Prudential ICICI Balanced Fund
* Fixed Maturity One Year Plan – Series 6, Fixed Maturity Plan – Yearly 12, Prudential ICICI Flexible Income Plan,
Prudential ICICI Flexible Income Plus Plan, Prudential ICICI Dynamic Plan, SENSEX Prudential ICICI Exchange Traded
Fund and Prudential ICICI Floating Rate Plan have not completed one year since the date of their launch. Returns
are computed in absolute terms and for Growth Options only from the date of allotment. The NAV on the date of
allotment is taken as Rs.10 for computation of returns
** Un-audited.
*** All the units holder under the scheme Prudential ICICI Gilt Fund Treasury 1 Year Plus Plan and Prudential ICICI
Fixed Maturity Quarterly Plan Series 3, Prudential ICICI Fixed Maturity Yearly Plan Series 3 & 8 have redeemed and
units are nil as on 31/08/03
# These Schemes were launched during the year and these schemes were not in existence at the beginning of the
year.
## Dividend was declared under ICICI Premier for all the unitholders as on July 25, 1995 @Rs. 0.80 per unit. For
computation of returns NAV of ICICI Premier has been considered after adjusting the dividend declaration.
### All the units holder of Growth Option under the scheme Prudential ICICI Fixed Maturity Plan Half Yearly Series I
have redeemed their units on 25/06/2003, thus returns have been calculated on the basis of the NAV of dividend
option after adjusting for the dividend declared.
$ Appropriate benchmark index is not available.
@ As these schemes were launched before the launch of the respective benchmarks, Benchmark indices returns are
not provided
@@ All the unitholders under Prudential ICICI Fixed Maturity Plan – One Year Plus Series – 6 have redeemed their units
on July 14, 2003 and there was fresh subscription on July 21, 2003 at Rs. 10.00, hence, simple absolute returns
have been calculated for the period of 10 days.
@@@ The Net Income per unit mentioned has excluded Income equalisation & marked to market calculated on the basis
of market value of net assets of the Scheme on the valuation date, divided by the number of units outstanding on
that date. It may be noted that, as it merely indicates the net income per unit on the valuation date calculated
based upon prevailing market value of the investment of the scheme on the given date, it is subject to vary from
time to time and does not reflect any income / loss of the scheme.
75

Prudential ICICI Mutual Fund
SECTION V
UNITHOLDERS RIGHTS & SERVICES
a) Investor Services
The Fund believes in providing the investors with a superior service to make the investors’ experience in dealing with the
Fund an efficient and satisfactory one. In order to achieve these goals, the Fund will endeavor to continuously establish
and upgrade systems to handle transactions efficiently and resolve any investor grievances promptly.
b) Ease of Transactions
The Fund intends to make every transaction for the investor a simple and convenient one. The Fund plans to provide the
following services:-
i) Customer Service Centres in major metros
The AMC presently has Customer Service Centres in five main cities and various other cities the details in respect of
which are stated on the last page of this Offer Document. Over a period of time, the AMC will endeavour to add
further Customer Service Centres and/or sales offices in other cities. Unitholders can go to these Service Centres /
Sales Offices for enquiries and transactions during business hours.
ii) Process transactions in a timely manner
Under the Regulations, the Fund/ the Registrar / AMC shall despatch to the Unitholders the dividend warrants within
thirty days of the date of declaration of dividend and the redemption proceeds within ten Business Days from the
date of acceptance / deemed acceptance of the request for redemption or repurchase proceeds, as the case may be.
Under normal circumstances, the Fund will endeavor to complete all monetary transactions within three Business
Days from the date of acceptance of a transaction request at the Customer Service Centres. Ordinarily, non-monetary
transactions or requests will be processed, (with the exception of issue of Unit certificates) within 7 (seven) Business
Days.
Investors should note that completion of monetary/ non-monetary transactions within 3 / 7 Business Days as indicated
above would be done on “best efforts” basis and completion of all such transactions are subject to the time limits
as prescribed under the Regulations.
c) Problem Resolution
The Fund will follow-up with Customer Service Centres and Registrar on complaints and enquiries received from investors
for resolving them promptly.
For this purpose, Mr. Gautam Guha has been appointed the Investor Relations Officer. He can be contacted at the Corporate
Office of the AMC. The address and phone numbers are :
Construction House, Ground Floor,
Walchand Hirachand Marg,
Ballard Estate, Mumbai 400 001
Phone: (91)(22) 2679676/ 2697989
Fax : (91)(22) 2695933
e-mail: enquiry@pruicici.com
d) Information about the Scheme
The Fund will publish an abridged summary of an audited annual report of the Scheme, as on March 31 of each year,
through an advertisement and an abridged scheme wise annual report shall be mailed to all Unitholders, not later than
six months from March 31 of each year. The abridged annual report shall contain such details as are required under the
Regulations.
The Fund shall before the expiry of one month from the close of each half year, that is as on March 31 and September
30, publish its unaudited financial results in one English daily newspaper circulating all India and in a newspaper published
in the language of the region where the Head Office of the Fund is situated and update the same on AMC’s website at
www.pruicici.com within 30 days and 60 days in two different formats prescribed in terms of SEBI’s circular dated April
20, 2001 and on AMFI web site (www.amfiindia.com) before the expiry of one month from the close of each half-year, in
the prescribed format.
Further, the Fund shall also disclose the half-yearly scheme portfolios on its web site at www.pruicici.com and on AMFI
web site (www.amfiindia.com) in the prescribed format before the expiry of one month from the close of each half-year.
The AMC will disclose the NAV of each Plan on every Business Day.
The Fund shall before the expiry of one month from the close of each half year (31 st March and 30 th September) send to
the Unitholders a complete statement of Plan’s portfolios or if such statement is not sent to the Unitholders, it will be
published by way of an advertisement in one English daily circulating in the whole of India and in a newspaper published
in the language of the region where the head office of the mutual fund is situated.
76

Prudential ICICI Balanced Fund
e) NAV Information
The NAV of the Scheme will be calculated daily and announced by the Fund on each Business Day. The Unitholders, may
obtain the information on NAV on any day, by calling the office of the AMC or any of the Investor Service Centers or from
the web site of the AMC – www. pruicici.com. The Fund will use its best endeavour to publish NAVs daily in at least two
daily newspapers. Further, the AMC shall endeavour to publish the Purchase & Redemption prices of Units daily in a
newspaper with all India circulation. AMC shall update the NAVs on the website of Association of Mutual Funds in India
- AMFI (www.amfiindia.com) by 8.00-p.m. everyday. In case of any delay, the reasons for such delay would be explained to
AMFI and SEBI by the next day.
If the NAVs are not available before commencement of business hours on the following day due to any reason, the Fund
shall issue a press release providing reasons and explaining when the Fund would be able to publish the NAVs.
f) Disclosure of information under the Regulations
The Fund will, not later than six months after the close of each financial year (March 31), publish through an advertisement,
an abridged Annual Report relating to the Scheme and mail to the Unitholders an abridged scheme wise annual report.
Further, the full text of the Annual Report will be available for inspection at the office of the Fund. A copy of the Annual
Report will be sent to Unit holders, free of cost, on specific request.
The Fund shall before the expiry of one month from the close of each half year, that is as on March 31 and September
30, publish its unaudited financial results in one English daily newspaper having all India circulation and in a newspaper
published in the language of the region where the Head Office of the Fund is situated and update the same on AMC’s
website at www.pruicici.com within 30 days and 60 days in two different formats prescribed in terms of SEBI’s circular
dated April 20, 2001 and on AMFI’s website at www.amfiindia.com within 30 days from the close of each half year, in
the prescribed formats.
g) Rights of Unitholders of the Scheme
1. Unitholders of the Scheme have a proportionate right in the beneficial ownership of the assets of the Scheme and
in case of declaration of dividend, for the receipt of the dividend declared by the Fund under the Scheme.
2. When the Fund declares a dividend under the Scheme, the Fund shall despatch the dividend warrants to the Unitholders
within 30 days from the date of declaration of dividend. In terms of the Regulations, the Redemption proceeds will
be dispatched within ten Business Days from the date of acceptance / deemed acceptance of the request for
Redemption or repurchase proceeds, as the case may be.
3. The Trustee is bound to make such disclosures to the Unitholders as are essential in order to keep them informed
about any information known to Trustee which may have an adverse bearing on their investments.
4. The appointment of an AMC for the Fund can be terminated by the Trustee or by 75% of the Unitholders of the
Scheme of the Fund and any change in the appointment of the AMC shall be subject to the prior approval of SEBI
and the Unitholders of the Scheme.
5. The Trustee is obliged to convene a meeting on a requisition of 75% of the Unitholders of the Scheme.
6. 75% of the Unitholders of a Scheme can pass a resolution to wind up the Scheme.
7. Unitholders have the right to inspect all the documents listed under __ “Documents Available for Inspection”.
8. The Trustee shall obtain the consent of the Unitholders :
a) whenever required to do so by SEBI, in the interest of Unitholders
b) whenever required to do so on the requisition made by three-fourths of the Unitholders of the Scheme
c) when the Trustee decides to wind up or prematurely redeem the units.
9. The Trustees shall ensure that no change in the fundamental attributes of any scheme or the trust or fee and expenses
payable or any other change which would modify the scheme and affects the interests of unit holders is carried out
unless:
– a written communication about the proposed change is sent to each Unitholder and
– an advertisement is given in one English daily newspaper having nationwide circulation as well as in a newspaper
published in the language of the region where the Head Office of the mutual fund is situated; and the
Unitholders are given an option to exit at the prevailing Net Asset Value without any exit load.
Subject to the Regulations and the guidelines issued by SEBI, the consent of the Unitholders will be obtained through
voting, by mail. Detailed modalities of the same, including the principles for entitlement of votes for each Unitholder
will be finalized in consultation with and after obtaining the approval of SEBI and the Trustee.
10. Annual report containing accounts of the AMC would be displayed on the websites of the Fund (i.e. www.
pruiciciamc.com). Unitholders, if they so desire, may request for the annual report of the AMC.
77

Prudential ICICI Mutual Fund
h) Duration of the Scheme/ Winding up.
The duration of the Scheme is perpetual. The AMC, the Fund and the Trustee reserve the right to make such changes/
alterations the Scheme (including the charging of fees and expenses) offered under this Offer Document to the extent
permitted by the applicable Regulations. However, in terms of the Regulations, a Scheme may be wound up after repaying
the amount due to the Unitholders:
1. On happening of any event, which in the opinion of the Trustee, requires the Scheme to be wound up, OR
2. If seventy five percent (75%) of the Unitholders of the Schemes pass a resolution that the Scheme be wound up, OR
3. If SEBI so directs in the interest of the Unitholders
Where the Scheme is so wound up, the Trustee shall give notice of the circumstances leading to the winding up of the
Scheme to:
1. SEBI and,
2. In two daily newspapers with circulation all over India and in one vernacular newspaper with circulation in Mumbai.
On and from the date of the publication of notice of winding up, the Trustee or the Investment Manager, as the case
may be, shall:
1. Cease to carry on any business activities in respect of the Scheme so wound up;
2. Cease to create or cancel Units in the Scheme;
3. Cease to issue or redeem Units in the Scheme.
i) Procedure and manner of Winding up
The Trustee shall call a meeting of the Unitholders to approve by simple majority of the Unitholders present and voting
at the meeting for authorizing the Trustee or any other person to take steps for the winding up of the Scheme.
The Trustee or the person authorized above, shall dispose of the assets of the Scheme concerned in the best interest of
the Unitholders of the Scheme.
The proceeds of sale realized in pursuance of the above, shall be first utilized towards discharge of such liabilities as are
due and payable under the Scheme, and after meeting the expenses connected with such winding up, the balance shall
be paid to Unitholders in proportion to their respective interest in the assets of the Scheme, as on the date the decision
for winding up was taken.
On completion of the winding up, the Trustee shall forward to SEBI and the Unitholders a report on the winding up,
detailing the circumstances leading to the winding up, the steps taken for disposal of the assets of the Scheme before
winding up, net assets available for distribution to the Unitholders and a certificate from the auditors of the Fund.
Notwithstanding anything contained herein above, the provisions of the Regulations in respect of disclosures of halfyearly
reports and annual reports shall continue to be applicable , until winding up is completed or the Scheme ceases to
exist.
After the receipt of the report referred to above, if SEBI is satisfied that all measures for winding up of the Scheme have
been complied with, the Scheme shall cease to exist.
j) Tax benefits of investing in the Mutual Fund
The following information is provided only for general information purposes. In view of the individual nature of tax
benefits, each investor is advised to consult with his or her own tax consultant with respect to the specific tax implications
arising out of their participation in the scheme.
The Scheme’s auditors, N. M. Raiji and Co. have confirmed that based on the law in force, the following benefits may
accrue to the respective assesses:
I. TO THE MUTUALFUND
The Income of the Fund registered under Securities and Exchange Board of India Act, 1992 (15 of 1992) or regulations made
thereunder will be exempt from income tax in accordance with the provisions of section 10(23D) of the Act. The income received
by the Fund is not liable for deduction of tax at source.
The Finance Act 2003 has amended the provisions of section 115R of the Act, whereby the Mutual Fund will be liable to pay
additional income tax at the rate of 12.5% plus applicable surcharge, on the income distributed by the Fund.
In view of the above amendment made by the Finance Act 2003, the Fund not being an open-ended equity oriented fund would
be liable to pay additional tax on the income distributed by it on or after April 1, 2003.
II. TO THE UNITHOLDERS
A. INCOME RECEIVED FROM MUTUTAL FUND
Finance Act 2003 has inserted section 10(35), whereby any income received in respect of units of Mutual Fund specified
under clause (23D) of section 10, in respect of Assessment Year 2004-2005 will be exempt from income tax in the hands
of the unit holders. Further, it has been clarified that income arising from transfer of units of Mutual Fund shall not be
exempt under section 10(35).
78

Prudential ICICI Balanced Fund
In view of the amendment, no tax would be payable by unit holders in respect of income distributed by the Fund and no
tax needs to be deducted at source thereon by the Fund.
B. LONG TERM CAPITAL GAINS ON TRANSFER OF UNITS
i) For Individuals and HUFs
Long-term Capital Gains in respect of Units held for a period of more than 12 months will be chargeable under section
112 of the Act, at a rate of 20% plus surcharge, asif applicable. Capital gains would be computed after taking into
account cost of acquisition as adjusted by Cost Inflation Index notified by the Central Government and expenditure
incurred wholly and exclusively in connection with such transfer.
In the case, where taxable income as reduced by long term capital gains is below the exemption limit, the long term
capital gains will be reduced to the extent of the shortfall and only the balance long term capital gains will be charged at
the flat rate of 20% plus surcharge, as may be applicable.
It is further provided that an assessee will have an option to apply concessional rate of 10%, plus surcharge, provided
the long term capital gains are computed without substituting indexed cost in place of cost of acquisition.
ii) For Partnership Firms, Non-Residents, Indian Companies/Foreign Companies
Long-term Capital Gains in respect of Units held for a period of more than 12 months will be chargeable under section
112 of the Act at a rate of 20% plus surcharge, as may be applicable. Capital gains would be computed after taking into
account cost of acquisition as adjusted by Cost Inflation Index notified by the Central Government and expenditure
incurred wholly and exclusively in connection with such transfer.
It is further provided that an assessee will have an option to seek concessional rate of 10%, plus surcharge, as applicable,
to long term capital gains computed without adjusting for cost for indexation.
(iii) For Non-resident Indians
Under section 115E of the Act for non-resident Indians, income by way of long-term capital gains in respect of Units is
chargeable at the rate of 20% plus applicable surcharge. Such long-term capital gains would be calculated without
indexation of cost of acquisition.
Non-resident Indians may opt for computation of long term capital gains as per section 112, which is more beneficial.
(iv) For Overseas Financial Organisations, including Overseas Corporate Bodies and Foreign Institutional Investors
fulfilling conditions laid down under section 115AB (Offshore Fund):
Under section 115AB of the Act, income by way of long term capital gains in respect of units purchased in foreign
currency held for a period of more than 12 months will be chargeable to tax at the rate of 10%, plus surcharge, as may
be applicable. Such gains would be calculated without indexation of cost of acquisition.
2.1 SHORT TERM CAPITAL GAINS
Short term Capital Gains in respect of Units held for a period of not more than 12 months is added to the total income. Total
income including short-term capital gains is chargeable to tax as per the relevant slab rates.
Income Tax Rates
The maximum tax rates applicable to different categories of assessees are as follows:
Resident individuals and HUF
30% plus surcharge
Partnership Firms
35% plus surcharge
Indian companies
35% plus surcharge
Non Resident Indians
30% plus surcharge
Foreign Companies
40% plus surcharge
As per the Finance Act 2003, a surcharge of 2.5% on the income tax would be applicable for all categories of assesses except in
the case of individuals and HUF. With regards to individuals and HUF having a total income exceeding Rs. 850,000, a surcharge
of 10% has been levied by the Finance Act, 2003.
C. SHORT TERM CAPITAL LOSSES
According to sub-section (7) of section 94, if any person buys or acquires units within a period of three months prior to the record
date fixed for declaration of dividend or distribution of income and sells or transfers the same within a period of three months
from such record date, then capital losses arising from such sale to the extent of dividend or income received or receivable on
such units, which are exempt under the Act, will be ignored for the purpose of computing his income chargeable to tax.
D. TAX DEDUCTION AT SOURCE
For Income in respect of units:
In view of the amendments made by the Finance Act 2003 in section 10(35), section 194K and section 196A, no tax shall be
deducted in respect of any income credited or paid on or after April 1, 2003 in respect of units of the Fund.
79

Prudential ICICI Mutual Fund
For Capital Gains:
(i) In respect of Resident Unit holders:
No tax is required to be deducted at source on capital gains arising to any resident unit holder (under section 194K) vide
circular no.715 dated August 8, 1995 issued by the Central Board for Direct Taxes (CBDT).
(ii) In respect of Non- Resident Unit holders:
Under section 195 of the Income Tax Act, 1961, tax shall be deducted at source in respect of capital gains as under:
a. In case of non resident other than a company any other person -
Ø Long term capital gains 20% plus surcharge
Ø Short term capital gains 30% plus surcharge
b. In case of foreign company -
Ø Long term capital gains 20% plus surcharge
Ø Short term capital gains 40% plus surcharge
c. In case of Offshore Fund as defined in 115AB –
Ø Long term capital gains 10% plus surcharge
As per circular no. 728 dated October 1995 by CBDT, in the case of a remittance to a country with which a Double
Taxation Avoidance Agreement (DTAA) is in force, the tax should be deducted at the rate provided in the Finance Act of
the relevant year or at the rate provided in DTAA whichever is more beneficial to the assessee.
E. Exemption from tax on capital gains arising on transfer of units held for more than 12 months
U/S 54EA and U/S 54EB of the Income Tax Act,1961.
Under Section 54 EA and 54 EB of the Income Tax Act, 1961, capital gain from the transfer of a long term capital asset
before the 1 st day of April 2000, was exempt, in case net consideration and capital gain was invested in units of Mutual
Fund for the period of 3 years and 7 years respectively, within a period of six months from the date of transfer of long
term capital asset.
Under section 54EC of the Act
As provided under section 54EC of the Income Tax Act, 1961, where an assessee has made capital gains from the transfer
of units held in Mutual Fund Scheme for a period exceeding 12 months and the assessee has any time within a period of
6 months after the date of such transfer, invested the whole of the capital gains in the long term specified assets i.e., in
bonds redeemable after 3 years issued by the National Bank for Agriculture and Rural Development, or by the National
Highways Authority of India or by the Rural Electrification Corporation Limited or by National Housing Bank or by the
Small Industries Development Bank of India, such capital gains shall be exempted from tax on capital gains under section
54EC of the Income Tax Act 1961. However, if the assessee has invested only a part of the capital gains, he will be
eligible for the proportionate exemption.
Under section 54ED of the Act
Under Section 54ED, capital gains arising from the transfer of units held in the Mutual Fund Scheme for a period exceeding
12 months will be exempt, if the assessee has, any time within a period of 6 months after the date of such transfer,
invested the whole of the capital gains in acquiring equity shares forming part of an eligible issue of capital. However, if
the assessee has invested only a part of the capital gains, he will be eligible for the proportionate exemption. An eligible
issue of capital means an issue of equity shares offered for subscription to the public by a public company formed and
registered in India.
2.2 INVESTMENTS BY CHARITABLE AND RELIGIOUS TRUSTS IN THE PLAN
Units of a Mutual fund Scheme referred to in clause 23D of section 10 of the Income Tax Act, 1961, constitute an
eligible avenue for investment by charitable or religious trusts per rule 17C of the Income Tax Rules, 1962, read with
clause (xii) of sub-section (5) of section 11 of the Income Tax Act, 1961.
2.3 WEALTH TAX
Units held under the Mutual Fund Scheme are not treated as assets within the meaning of section 2(ea) of the Wealth
Tax Act, 1957 and are, therefore, not liable to Wealth-Tax.
80

Prudential ICICI Balanced Fund
UNCLAIMED REDEMPTION / DIVIDEND AMOUNT
The unclaimed Redemption amount may be deployed by the Mutual Fund in call money market or money market instruments
only and the investors who claim these amounts during a period of three years from the due date shall be paid at the prevailing
Net Asset Value. After a period of three years, this amount will be transferred to a pool account and the investors can claim the
amount at NAV prevailing at the end of the third year. The income earned on such funds will be used for the purpose of investor
education. The AMC will make a continuous efforts to remind the investors through letters to take their unclaimed amounts.
Further, the investment management fee charged by the AMC for managing unclaimed amounts shall not exceed 50 basis
points.
Unclaimed Dividend / Redemptions in respect of the open ended funds normally represent the time lag between funding of the
respective accounts (with bank) by the AMC and the time taken for presentation of redemption/dividend warrants by the
investors. No significant delay in the process is noticed. Hence the details in respect of open-ended funds is not mentioned.
Details in respect of Prudential ICICI Premier are given below –
As of March 31, 2003 As of August 31, 2003
Unclaimed Redemption Amount Rs. 8.28 Crores in respect of 36,632 investors Rs. 7.58 Crores in respect of 33,796
investors
Unclaimed Dividend Amount Rs.0.03 Crores Rs. 0.03 Crores
81

Prudential ICICI Mutual Fund
SECTION VI
OTHER MATTERS
a) UNIT HOLDER GRIEVANCES REDRESSAL MECHANISM
Investor grievances/ correspondences are normally received at AMC office or at the Customer Service Centres or directly
by the Registrar. All grievances/ correspondence/ requests are forwarded to the Registrar for necessary action. The
complaints/ correspondence is closely followed up with the Registrar to ensure timely redressal and prompt investor
service. Given below is the complaint history for the last three fiscal years:
ICICI Premier ICICI Power #
01/04/2000 to 31/03/2001
Complaints/ Requests received during the period 4549 2491
Redressed during the period 4545 2485
Pending 4 6
01/04/2001 to 31/03/2002
Complaints/ Requests received during the period 1011 1209#
Redressed during the period 1011 1215#
Pending as on March 31, 2002 4 Nil
01/04/2002 to 31/03/2003
Complaints/ Requests received during the period 700 Not applicable
Redressed during the period 699 Not applicable
Pending as on March 31, 2003 5 Not applicable
01/04/2003 to 31/08/2003
Complaints/ Requests received during the period 258 Not applicable
Redressed during the period 253 Not applicable
Pending as on August 31, 2003 10 Not applicable
# Status reported till the Record Date of Conversion. Name changed to Prudential ICICI Power with effect from September
27, 2001. The status on investor complaints consequent to conversion is reported separately.
The above two funds were launched in 1994. . ICICI Power has been converted in to an open-ended fund w.e.f. September
27, 2001. Consequent to conversion its name is changed to Prudential ICICI Power. Further, ICICI Premier was rolled over
for a further period of 5 years in February 1999 and is open for repurchase w.e.f. February 7, 2001. The pending investor
complaints / requests pertain to, inter-alia, Issue of duplicate certificates, non receipt of certificates, non receipt of
redemption/dividend warrants, revalidation of dividend warrants, name correction, change of address of the Unitholder,
registration of death cases, registration of Power of Attorney, transfer/transmission of Units etc. All investor grievances
are normally redressed within a period of 15 days of their receipt, subject to the information furnished by the Unitholder
is complete and accurate. If such information is not provided/not available with the Registrars to the above Schemes, the
matter is further followed up with the investors. Investor complaints are continuously monitored with the Registrar to
the Schemes.
The details relating to the fifteen open ended schemes launched by the Fund are as under:
Data relating to the period July 1998 to August 31, 2003
Scheme Complaints Complaints Complaints
Received redressed pending
Prudential ICICI Growth Plan 499 499 Nil
Prudential ICICI Income Plan 997 997 Nil
Prudential ICICI Liquid Plan 148 148 Nil
Prudential ICICI FMCG Fund 402 402 Nil
Prudential ICICI Tax Plan 394 394 Nil
Prudential ICICI Gilt Fund 129 129 Nil
Prudential ICICI Balanced Fund 478 478 Nil
Prudential ICICI Technology Fund 1983 1983 Nil
Prudential ICICI Monthly Income Plan 108 108 Nil
Prudential ICICI Fixed Monthly Plan 17 17 Nil
Prudential ICICI Child Care Plan 173 173 Nil
Prudential ICICI Power 126 126 Nil
82

Prudential ICICI Balanced Fund
Scheme Complaints Complaints Complaints
Received redressed pending
Prudential ICICI Short Term Plan 3 3 Nil
Prudential ICICI Long Term Plan Nil Nil Nil
Prudential ICICI Sweep Plan Nil Nil Nil
Prudential ICICI Flexible Income Plan 7 7 Nil
Prudential ICICI Dynamic Plan 10 10 Nil
Prudential ICICI Floating Rating Plan 0 0 Nil
Prudential ICICI Index Fund-S&P CNX Nifty Plan 8 8 Nil
Sensex Prudential ICICI Exchange Traded Fund Nil Nil Nil
Total 5482 5482 Nil
b) ASSOCIATE TRANSACTIONS
Details of investments made by the schemes in securities of Sponsor i.e. ICICI bank Ltd. (erstwhile ICICI Ltd.) during the
previous three financial years are as follows:
(Amount in Rupees)
Scheme name/Nature of investment April 1, 2003 to F.Y 2002- F.Y. 2001- F.Y. 2000-
August 31, 2003 2003 2002 2001
Amount Amount Amount
Investment in Bonds of ICICI Bank Ltd.
ICICI Premier - - - 10,154,285
Prudential ICICI Income Plan 836,859,448 818,794,702 1,027,466,435 526,108,245
Prudential ICICI Balanced Fund - - 17,991,012 18,873,656
Prudential ICICI Liquid Plan - 10,891,898 39,359,762 186,921,910
Prudential ICICI Short Term Plan 59,087,867 58,913,072 61,800,122 -
Prudential ICICI Monthly Income Plan - - - 50,771,423
Investment in NSE Linked Mibor Deposits /
Term Deposit of ICICI Bank Ltd
Prudential ICICI Liquid Plan - 200,000,000 1,500,000,000 -
Prudential ICICI Short Term Plan - - - -
Prudential ICICI Power - - 20,000,000 -
ICICI Premier - - 20,000,000 -
Prudential ICICI Balanced Fund - - 80,000,000 -
Prudential ICICI Floating Rate Fund - 5,000,000,000
Prudential ICICI Flexible Income Plan - 50,000,000
Investment in equity shares of Erstwhile ICICI Ltd
ICICI Power Nil Nil Nil Nil
Prudential ICICI Tax Plan Nil Nil Nil Nil
Prudential ICICI Index Fund Nil Nil 1,031,715 Nil
Investment in equity shares of ICICI Bank Ltd
Prudential ICICI Index Fund 3,880,442 3,491,370 592,862 Nil
Sensex Prudential ICICI Exchange Traded Fund 7,312,112 6,327,798 Nil Nil
TOTAL 907,139,869 6,148,418,840 2,768,241,908 792,829,519
% to the net assets of the Mutual Fund 0.67% 6.77% 4.19% 1.69%
Underwriting obligations with respect to issues of Associate Companies:
The AMC has, till date, not entered into any underwriting contracts in respect of any public issue made by any of its associate
companies.
83

Prudential ICICI Mutual Fund
Subscription in issues lead managed by ICICI Securities Ltd. [erstwhile ICICI Securities & Finance Company Limited
(I-Sec)]
(Amount in Rupees)
Name of the Scheme F.Y. 2000-2001 F.Y. 2001-2002 F.Y 2002-2003 April 1, 2003 to
August 31, 2003
ICICI Premier Nil Nil Nil Nil
Prudential ICICI Power Nil Nil Nil *6,675,000
Prudential ICICI Income Plan 700,000,000 50,000,000 200,000,000 Nil
Prudential ICICI Liquid Plan 600,000,000 250,000,000 Nil Nil
Prudential ICICI Growth Plan Nil Nil Nil *21,925,000
Prudential ICICI Tax Plan Nil Nil Nil *2,187,500
Prudential ICICI Monthly Income Plan Nil Nil Nil *6,100,000
Prudential ICICI Balanced Fund 50,000,000 Nil Nil *6,087,500
Prudential ICICI Dynamic Plan Nil Nil Nil *5,712,500
TOTAL 1,350,000,000 300,000,000 200,000,000 Nil
* ICICI Securities Ltd. [Erstwhile ICICI Securities & Finance Company Limited (I-Sec)] was a lead manager to the public issue
of Maruti Udyog Ltd. along with other lead managers. It may be noted that, Prudential ICICI Mutual Fund has subscribed
to the said issue through JM Morgan Stanley Securities Pvt. Ltd. This declaration has been made as a matter of disclosure
to the investors.
Subscription in issues lead managed by ICICI Bank Limited
(Amount in Rupees)
Name of the Scheme F.Y. 2001-2002 F.Y 2002-2003 April 1, 2003 to
August 31, 2003
Prudential ICICI Income Plan 72,728,496 Nil Nil
Prudential ICICI Liquid Plan 23,142,034 1,450,000,000 Nil
Prudential ICICI Short Term Plan Nil 603,220,568 Nil
Prudential ICICI Monthly Income Plan 36,628,268 445,762,855 Nil
Prudential ICICI Flexible Income Plan Nil 300,000,000 Nil
Subscription in issues lead managed by ICICI Capital Services Limited
(Amount in Rupees)
Name of the Scheme F.Y. 2001-2002 F.Y 2002-2003 April 1, 2003 to
August 31, 2003
Prudential ICICI Income Plan 540,000,000 Nil Nil
Prudential ICICI Short Term Plan 10,000,000 Nil Nil
The above investments were considered sound. Before making an investment, AMC evaluated the same on merits and
on arms’ length basis and in accordance with the objectives of the scheme.
84

Prudential ICICI Balanced Fund
Transactions with Associate Companies:
(Amount in Rupees)
F.Y. 2000-2001 F.Y. 2001-2002 F.Y. 2002-2003 April 1, 2003 to
August 31, 2003
ICICI Bank Limited – Bank Charges
ICICI Premier Nil 470 Nil Nil
Prudential ICICI Power Nil 3345 15 270,000
Prudential ICICI Income Plan 556,012 1,724,925 1,326,708 270,000
Prudential ICICI Liquid Plan 890,864 1,839,595 889,394 202,500
Prudential ICICI Growth Plan 873,445 755,177 827,049 270,000
Prudential ICICI FMCG Fund 729,701 674,607 427,000 Nil
Prudential ICICI Tax Plan 773,856 620,145 1501 67,500
Prudential ICICI Gilt Fund – Treasury 378,505 901,716 825,762 Nil
Prudential ICICI Gilt Fund – Investment 748,544 949,692 889,297 135,000
Prudential ICICI Gilt Fund –1 Year plus Nil 150 Nil Nil
Prudential ICICI Balanced Fund 763,247 724479 825,500 270,000
Prudential ICICI Technology Fund 815,647 879,799 831,405 Nil
Prudential ICICI Monthly Income Plan 243,150 901065 825,665 270,000
Prudential ICICI Fixed Maturity Plan Quarterly series 1 50,000 37,707 Nil Nil
Prudential ICICI Fixed Maturity Plan Quarterly series 2 Nil 4,979 50 Nil
Prudential ICICI Fixed Maturity Plan Quarterly series 3 Nil 15,748 Nil Nil
Prudential ICICI Fixed Maturity Plan Half-Yearly series 1 Nil 150 Nil Nil
Prudential ICICI Fixed Maturity Plan Half-Yearly series 2 Nil 150 Nil Nil
Prudential ICICI Fixed Maturity Plan Yearly series 1 Nil 150 Nil Nil
Prudential ICICI Fixed Maturity Plan Yearly series 2 Nil 150 Nil Nil
Prudential ICICI Fixed Maturity Plan Yearly series 3 Nil 200 661 Nil
Prudential ICICI Fixed Maturity Plan Yearly series 4 Nil Nil Nil Nil
Prudential ICICI Fixed Maturity Plan Yearly series 5 Nil 248 Nil Nil
Prudential ICICI Child Care Plan-Gift Plan Nil 3,644 350 Nil
Prudential ICICI Child Care Plan-Study Plan Nil 12,681 730 Nil
Prudential ICICI Short Term Plan Nil 423,699 825,715 270,000
Prudential ICICI Flexible Income Plan Nil Nil 398,750 270,000
Prudential ICICI Dynamic Plan Nil Nil 112 270,000
Prudential ICICI Floating Rating Plan Nil Nil Nil 135,000
ICICI Bank Limited – Brokerage
Prudential ICICI Income Plan 8,816 1,396,509 18,404,188 8,656,460
Prudential ICICI Liquid Plan 23,058 3,530,911 13,452,007 6,408,710
Prudential ICICI Growth Plan 74,949 945,779 1287401 965,909
Prudential ICICI FMCG Fund 9,654 9,095 36,865 148,906
Prudential ICICI Tax Plan 5,536 104,654 182,185 83,098
Prudential ICICI Gilt Fund – Treasury 353 26,546 147,943 20,537
Prudential ICICI Gilt Fund – Investment 688 145,086 4,448,085 2,154,304
Prudential ICICI Balanced Fund 69,119 64,065 371,333 310,291
Prudential ICICI Technology Fund 74,429 103,779 688,780 318,164
Prudential ICICI Monthly Income Plan 2,269 119,431 2,178,352 519,856
Prudential ICICI Fixed Maturity Plan Quarterly series 1 Nil 11,171 11,929 1,944
Prudential ICICI Fixed Maturity Plan Quarterly series 2 117,707 1,308 11,668 6,709
Prudential ICICI Fixed Maturity Plan Quarterly series 3 Nil 139,294 4676 270
Prudential ICICI Fixed Maturity Plan Half-Yearly series 1 Nil 15,815 39,558 809
Prudential ICICI Fixed Maturity Plan Half-Yearly series 2 Nil 949 977 269
Prudential ICICI Fixed Maturity Plan Yearly series 1 Nil 239 109,263 1,262
Prudential ICICI Fixed Maturity Plan Yearly series 2 Nil Nil 8,611 809
Prudential ICICI Fixed Maturity Plan Yearly series 3 Nil Nil 98,754 145,555
85

Prudential ICICI Mutual Fund
(Amount in Rupees)
F.Y. 2000-2001 F.Y. 2001-2002 F.Y. 2002-2003 April 1, 2003 to
August 31, 2003
Prudential ICICI Fixed Maturity Plan Yearly series 4 Nil 33 88 66
Prudential ICICI Fixed Maturity Plan Yearly series 5 Nil 1,719 156,198 46,342
Prudential ICICI Fixed Maturity Plan Yearly series 6 Nil Nil 378,438 Nil
Prudential ICICI Fixed Maturity Plan Yearly series 7 Nil Nil 600 Nil
Prudential ICICI Child Care Plan-Gift Plan Nil 93,326 368,251 166,424
Prudential ICICI Child Care Plan-Study Plan Nil 49,857 240,792 143,470
Prudential ICICI Power Nil 360 82,382 3,001,782
Prudential ICICI Index Fund Nil Nil 29,945 Nil
Prudential ICICI Long Term Plan Nil Nil 137 260
Prudential ICICI Flexible Income Plan Nil Nil 2,512,861 2,367,166
Prudential ICICI Dynamic Plan Nil Nil 1,402,785 1,510,469
Prudential ICICI Floating Rate Plan Nil Nil 995 76,442
Prudential ICICI Short Term Plan Nil Nil 15,237,064 4,463,847
ICICI Infotech Services Limited – Service Charges
ICICI Premier 751,000 583,330 1,597,609 341,339
ICICI Premier Redeemed Nil 19,930 671,043 92,333
ICICI Capital Services Limited – Brokerage
Prudential ICICI Power Nil 93 297 Nil
Prudential ICICI Income Plan 8,949487 13,376,665 54,912 Nil
Prudential ICICI Liquid Plan 2,959812 6,894,164 Nil Nil
Prudential ICICI Growth Plan 1,471,248 775,807 89,950 Nil
Prudential ICICI FMCG Fund 87,149 53,229 508 Nil
Prudential ICICI Tax Plan 118,162 75,314 774 Nil
Prudential ICICI Gilt Fund – Treasury 365,289 538,777 Nil Nil
Prudential ICICI Gilt Fund – Investment 683,334 2,248,509 Nil Nil
Prudential ICICI Balanced Fund 800,532 407,530 1,281 Nil
Prudential ICICI Technology Fund 1,804,955 1,954,540 8,648 Nil
Prudential ICICI Monthly Income Plan 448,893 1,350,164 2,849 Nil
Prudential ICICI Fixed Maturity Plan Quarterly series 1 14,589 282,228 Nil Nil
Prudential ICICI Fixed Maturity Plan Quarterly series 2 Nil 280,957 Nil Nil
Prudential ICICI Fixed Maturity Plan Quarterly series 3 Nil 97,344 Nil Nil
Prudential ICICI Fixed Maturity Plan Half-Yearly series 1 Nil 263,080 Nil Nil
Prudential ICICI Fixed Maturity Plan Half-Yearly series 2 Nil 40,312 Nil Nil
Prudential ICICI Child Care Plan – Gift Plan Nil Nil 1,656 Nil
Prudential ICICI Child Care Plan – Study Plan Nil Nil 2,176 Nil
ICICI Brokerage Service Limited – brokerage on
secondary market transactions
Prudential ICICI Premier 3,425 Nil Nil Nil
Prudential ICICI Balanced Plan Nil 9,000 666,606 31,986
Prudential ICICI Growth Plan Nil 191,000 958,939 189,416
Prudential ICICI Power Nil 2,000 188,388 269,903
Prudential ICICI FMCG Fund Nil Nil 181,297 74,738
Prudential ICICI Tax Plan Nil 2,000 131,833 50,383
Prudential ICICI Technology Plan Nil 72,000 70,270 Nil
Prudential ICICI Monthly Income Plan Nil Nil 185,121 295,603
Prudential ICICI Child Care Plan – Gift Plan Nil Nil 4736 18,006
Prudential ICICI Child Care Plan – Study Plan Nil Nil 7,329 Nil
Prudential ICICI Dynamic Plan Nil Nil 148,729 390,597
ICICI Securities Ltd. (erstwhile ICICI Securities and Finance
Co. Ltd.) brokerage on secondary market transactions
Prudential ICICI Dynamic Plan Nil Nil 5,940 Nil
86

Prudential ICICI Balanced Fund
(Amount in Rupees)
F.Y. 2000-2001 F.Y. 2001-2002 F.Y. 2002-2003 April 1, 2003 to
August 31, 2003
ICICI Securities Ltd. (erstwhile ICICI Securities
and Finance Co. Ltd.) Brokerage
Prudential ICICI Income Plan 11,073,162 11,843,754 5,013,417 152,320
Prudential ICICI Liquid Plan 199,485 4,791,362 61,087 7743
Prudential ICICI Growth Plan 18,051,819 1,365,584 85,833 387
Prudential ICICI FMCG Fund 398,987 278,856 350,693 1,536
Prudential ICICI Gilt Fund – Treasury 652,634 310,339 915,425 Nil
Prudential ICICI Gilt Fund – Investment 739,749 808,124 488,396 29,471
Prudential ICICI Balanced Fund 8,177,865 2,195,439 1,047,772 41,057
Prudential ICICI Technology Fund 4,194,879 396,549 10,196 2,322
Prudential ICICI Tax Plan Nil 155 38 26
Prudential ICICI Monthly Income Plan Nil 1,278 433 198
Prudential ICICI Fixed Maturity Plan Quarterly series 1 Nil 274 Nil Nil
Prudential ICICI Short Term Plan Nil Nil 556,652 Nil
Prudential ICICI Flexible Income Plan Nil Nil 113,550 Nil
Prudential ICICI Power Nil Nil 386,599 Nil
ICICI Web Trade Ltd. Brokerage
Prudential ICICI Growth Plan Nil 190188 65,558 44,632
Prudential ICICI Income Plan Nil 1,549 100,224 44,663
Prudential ICICI Liquid Plan Nil Nil 30,358 14,356
Prudential ICICI FMCG Fund Nil 921 17,816 17,164
Prudential ICICI Tax Plan Nil 1,182 18,649 10,080
Prudential ICICI Balanced Fund Nil 301 19,825 10,531
Prudential ICICI Technology Plan Nil 6,140 96,558 65,075
Prudential ICICI Gilt Treasury Nil Nil 2,522 638
Prudential ICICI Gilt Investment Nil Nil 19,178 5,362
Prudential ICICI Monthly Income Plan Nil Nil 14,535 8,161
Prudential ICICI Short Term Plan Nil Nil 6,981 1,707
Prudential ICICI Power Nil Nil 34,638 83,302
Prudential ICICI Flexible Income Plan Nil Nil 7,878 3,665
Prudential ICICI Dynamic Plan Nil Nil 116,879 56,761
ICICI Web Trade Limited – brokerage on
secondary market transactions
Prudential ICICI Growth Plan Nil Nil 4,582 Nil
Way2Wealth Securities Pvt. Ltd.
Prudential ICICI Power Nil Nil 13,190 691,193
Prudential ICICI Growth Plan Nil Nil 296,840 49,920
Prudential ICICI Income Plan Nil Nil 2,179,850 526,104
Prudential ICICI Liquid Plan Nil Nil 334,862 133,685
Prudential ICICI FMCG Fund Nil Nil 1,168 582
Prudential ICICI Tax Plan Nil Nil 19,215 6,402
Prudential ICICI Balanced Fund Nil Nil 21,361 5,331
Prudential ICICI Technology Plan Nil Nil 310,26 36,500
Prudential ICICI Gilt Treasury Nil Nil 7730 2,491
Prudential ICICI Gilt Investment Nil Nil 273,439 121,047
Prudential ICICI Monthly Income Plan Nil Nil 870,075 133,136
Prudential ICICI Fixed Maturity Plan – Quarterly I Nil Nil (14,409) 1,611
Prudential ICICI Fixed Maturity Plan – Quarterly II Nil Nil 51 21
Prudential ICICI Fixed Maturity Plan – Quarterly III Nil Nil 29 Nil
Prudential ICICI Index Fund Nil Nil 9,167 Nil
Prudential ICICI Short Term Plan Nil Nil 931,228 691,322
Prudential ICICI Child Care Plan – Gift Plan Nil Nil 46,186 11,934
Prudential ICICI Child Care Plan – Study Plan Nil Nil 38,778 12,428
Prudential ICICI Flexible Income Plan Nil Nil 38,849 81,187
Prudential ICICI Dynamic Plan Nil Nil 39,621 101,.958
87

Prudential ICICI Mutual Fund
The percentage of brokerage paid to ICICI Brokerage Services Limited (IBSL) was @0.26% and for ICICI Web Trade Ltd.
@0.15% of transaction value and the same was in line with the norms relating to brokerage payments for secondary
market transactions of the Fund. The total business given to IBSL amounted to Rs.14.098 lakhs, Rs.1,391.54 lakhs,
Rs.8,106.27 lakhs and 12,927.72 lakhs during the year 1999-2000, 2000-2001, 2001-2002 and 2002-2003 respectively.
Further, during the period from April 1, 2003 to August 31, 2003, total business given to IBSL amounted to Rs. 7,863.25
lakhs. Further, IBSL was paid a sum of Rs. 305,650 in connection with the rollover of ICICI Premier scheme towards
service charges, in the year 1998-99.
During the period from April 1, 2000 to August 31, 2003, total business given to ICICI Web Trade Ltd. and ICICI Securities
Limited amounted to Rs. 449.52 lakhs and 30.05 lakhs respectively.
Dealings with Associate Companies
The AMC may, from time to time, for the purpose of conducting its normal business, use the services of the Sponsor,
subsidiaries of its Sponsors/ associate companies of AMC. Such entities as on the date of this document include ICICI
Bank, a scheduled commercial bank, ICICI Infotech Services Limited, a registrar and transfer agent; ICICI Brokerage Services
Limited, a brokerage house, ICICI Venture Funds Management Company Limited, a venture funds management company,
ICICI Securities and Finance Company Limited (I Sec), an investment bank, ICICI Prudential Life Insurance Company Limited
carrying out insurance business, ICICI Web Trade Limited an online brokerage firm and Way2Wealth Securities Private
Limited. The AMC may utilize the services of these group companies and any other subsidiary or associate company of
the Sponsors/AMC established or to be established at a later date in case such an associate company is in a position to
provide the requisite services to the AMC. The AMC will conduct its business with the aforesaid companies on commercial
terms and on an arm’s length basis and at the then prevailing market rates to the extent permitted under the applicable
laws including the Regulations, after an evaluation of the competitiveness of the pricing offered by the associate companies
and the services to be provided by them.
Associate transactions, if any carried out, will be as per the Regulations and the limits prescribed thereunder. The
Regulations currently prescribe the following limits:
The mutual fund scheme shall not make any investment in;
1. any unlisted security of an associate or group company of the Sponsor; or
2. any security issued by way of private placement by an associate or group company of the Sponsor; or
3. the listed securities of group companies of the Sponsor which is in excess of 25% of the net assets of such scheme.
The above restrictions and limits are also applicable to this Scheme. The AMC will, before investing in the securities of
the group companies of the sponsor, evaluate such investments, the criteria for the evaluation being the same as is
applied to other similar investments to be made under the Scheme. Investments under the Scheme in the securities of
the group companies will be subject to the limits under the Regulations.
4) Details of investment in companies that hold more than 5% of NAV of Schemes managed by the AMC, as on August
31, 2003 :
Hero Honda Limited
Name of Scheme Quantity Amount (Rs.) % of NAV
Equity
Prudential ICICI Index Plan 7,049 2,074,521 1.28
Sensex Prudential ICICI Exchange Traded Fund 13,280 3,858,504 1.65
HCL Technologies Limited
Hindustan Lever Limited
Name of Scheme Quantity Amount % of NAV Quantity Amount % of NAV
(Rs.)
(Rs.)
Equity
Prudential ICICI Child Care Plan – Study - - - 671,256 4,216,629 2.58
Prudential ICICI Index Fund 10,192 1,886,030 1.16 77,900 14,458,240 8.92
Sensex Prudential ICICI Exchange Traded Fund 19,176 3,521,672 1.51 146,209 26,975,561 11.54
Prudential ICICI Long Term Plan - - - 3,900,000 24,498,630 0.99
Prudential ICICI FMCG Fund - - - 472,608 87,196,176 22.06
Prudential ICICI Dynamic Plan 100,000 18,365,000 1.65 150,000 27,675,000 2.49
Prudential ICICI Technologies Fund 749,027 137,558,809 10.40 - - -
88

Prudential ICICI Balanced Fund
ICICI Bank Ltd.
Name of Scheme Quantity Amount (Rs.) % of NAV
Debentures / Bonds of erstwhile ICICI Ltd.)
Prudential ICICI Short term Plan 10,000 59,087,867 0.24
Prudential ICICI Income Fund 152,000 836,859,448 2.10
Equity
Prudential ICICI Index Plan 21,594 3,880,442 2.39
Sensex Prudential ICICI Exchange Traded Fund 40,736 7,312,112 3.13
Polaris Software Lab Limited
Name of Scheme Quantity Amount (Rs.) % of NAV
Equity
Prudential ICICI Tax Plan 150,000 21,345,000 5.70
Wipro Limited
Name of Scheme Quantity Amount (Rs.) % of NAV
Equity
Prudential ICICI Index Fund 8,207 8,772,052 5.41
Hindalco Industries Limited
Name of Scheme Quantity Amount (Rs.) % of NAV
Debenture/Bonds/Commercial Paper
Prudential ICICI Income Plan 1,001,020 1,459,768,107 3.66
Prudential ICICI Short Term Plan 1,000,305 283,779,755 1.17
Prudential ICICI Monthly Income Plan 5 51,665,858 1.55
Prudential ICICI Flexible Income Plan 20 206,663,433 1.26
Equity
Prudential ICICI Index Fund 3,266 2,979,245 1.84
Sensex Prudential ICICI Exchange Traded Fund 6,153 5,607,844 2.40
Finolex Industries Limited
Name of Scheme Quantity Amount (Rs.) % of NAV
Equity
Prudential ICICI Tax Plan 200,000 11,340,000 3.03
Infrastructure Development
Financial Corporation
Name of Scheme Quantity Amount (Rs.) % of NAV
Debenture/Bonds/Commercial Paper
Prudential ICICI Income Plan 4 223,905,353 0.56
Prudential ICICI Short Term Plan 6 110,769,460 0.46
Grasim Industries Limited
Name of Scheme Quantity Amount (Rs.) % of NAV
Debenture/Bonds/Commercial Paper
Prudential ICICI Income Plan 240 669,573,261 1.69
Prudential ICICI Short Term Plan 40 202,530,634 0.84
Prudential ICICI Monthly Income Plan 500,000 16,986,575 0.51
Equity
Prudential ICICI Index Fund 3,237 2,006,778 1.24
Prudential ICICI Dynamic Plan 73,001 45,140,168 4.06
Prudential ICICI Growth Plan 300,000 185,505,000 5.00
Prudential ICICI Monthly Income Plan 28,999 17,931,532 0.54
Prudential ICICI Balanced Fund 56,000 34,627,600 2.42
Prudential ICICI Power 165,000 102,027,750 3.60
Sensex Prudential ICICI Exchange Traded Fund 6,103 3,773,790 1.61
89

Prudential ICICI Mutual Fund
Maruti Udyog Limited
Name of Scheme Quantity Amount (Rs.) % of NAV
Equity
Prudential ICICI Power 569,005 133,972,227 4.73
Prudential ICICI Dynamic Plan 190,980 44,966,241 4.04
Prudential ICICI Growth Plan 1,000,000 235,450,000 6.35
IDBI Bank
Name of Scheme Quantity Amount (Rs.) % of NAV
Debenture/Bonds/Commercial Paper
Prudential ICICI Income Plan 33,005 1,532,544,117 3.85
Prudential ICICI Liquid Plan 1,532,500 3,103,545,989 13.35
Prudential ICICI Monthly Income Plan 3,000 300,698,356 9.02
Prudential ICICI Premier 2,000 50,331,796 33.0
Prudential ICICI Flexible Income Plan 2,000 200,530,818 1.23
Prudential ICICI Balanced Fund 1,000 100,622,446 7.03
Prudential ICICI Short Term Plan 8,500 851,482,445 3.54
Equity
Prudential ICICI Tax Plan 360,000 13,572,000 3.63
d) PENALTIES & PENDING LITIGATIONS
Cases of penalties awarded by SEBI under the SEBI act or any of its regulations or any other regulatory body against the
sponsor of the mutual fund or any company associated with the sponsor in any capacity such as the asset management
company, trustee company/board of trustees, or any of the directors or key personnel of the asset management company
and trustee company:
ICICI Bank : Nil.
ICICI : Nil
AMC : Nil
Prudential Plc.
Financial Services Authority (FSA)
In October 2001, following a visit in early 1999, the Personal Investment Authority fined the Company £650,000. This
related to delays in paying redress to supplement the pensions of those who had retired and the benefits of the beneficiaries
of those who had died, and to its record keeping.
M&G
Following a regular Inland Revenue Personal Equity Plans(PEP) audit, M&G have reached agreement to pay the following:
l missing application forms - £550
l incorrect handling of void PEPs - £3205
l accepting “paid for” as well as “free” shares during the take-on of Norwich Union windfall shares - £600 + repayment
of any wrongly claimed tax credits
Investment Management Regulatory Organisation (IMRO)
In December 1996, Prudential Personal Equity Plans Limited underwent an IMRO disciplinary procedure.
In January 1997, the IMRO fined Prudential Personal Equity Plans Limited £70,000 for breaches of the Client Money
Regulations and related breaches which had occurred several years before.
The breaches were caused through the inability of systems to cope automatically with crediting individual investors’
accounts with dividends declared in respect of the underlying investments in personal equity plans. The dividends were
handled manually, were not credited in time and mistakes arose, requiring insignificant amounts of compensation to be
paid to investors.
Any pending material litigation proceedings, other than ordinary routine litigation incidental to the business of the
mutual fund to which the sponsor of the mutual fund or any company associated with the sponsor in any capacity such
as the AMC, Board of trustees/trustee company or any of the directors or key personnel is a party. Any pending criminal
cases or economic offence cases against the sponsor or any company associated with the sponsor in any capacity such as
AMC, Board of Trustees/Trustee Company or any of the directors or key personnel.
90

Prudential ICICI Balanced Fund
AMC: One of the Investors under Prudential ICICI Growth Plan had made investment to the tune of Rs. 50,00,000 under
section 54EB of the Income Tax Act, 1961. In accordance with the legal opinion of the counsel of the Fund, the Fund is
of the view that investments under section 54EB of the Income Tax Act, 1961 read with CBDT notification no. 10247
dated December 19, 1996 and the Offer Document of Prudential ICICI Growth Plan, the units had to be locked-in for a
period of seven years from the date of investment. However, the Investor had disputed this stand and had filed a petition
against Prudential ICICI Asset Management Company Limited as one of the respondents in the Honourable Delhi High
court seeking the direction of the Court for premature redemption of units. SEBI vide its order dated September 4, 2000,
rejected the petitioner’s claim for premature redemption of units.
The Petitioner has subsequently approached the Securities Appellate Tribunal seeking release of money due upon
redemption of units and payment of interest there on. The matter has been heard by the Tribunal and the Tribunal
dismissed the petition of the investor.
The investor has, once again, filed a writ in the High Court of Delhi challenging the order of the Tribunal. This matter
was listed before Hon’ble Delhi High court for final arguments in the regular hearing list.
Mr. K S Mehta – A Director of AMC:
Mr. K S Mehta has been made party in some of the cases relating to dishonour of cheques issued by M/s. Paam
Pharmaceuticals Ltd, Delhi, in which he was a Director. The dishonour of cheques took place after he had resigned from
the Board. He has never held any shares in the company nor he was involved in any day-to-day affairs of the company.
The matters are sub-judice.
ICICI Bank Ltd.:
There are no litigations whose likely outcome will have a material adverse effect on the operations of the Company.
However, following are the pending litigation/disputes/defaults etc. against ICICI Bank as on December 16, 2002, listing
out criminal prosecutions launched against ICICI Bank and/or its working Directors and Suits filed against ICICI Bank
involving a claim amount of Rs. 10 lacs and more. (Claims involving an amount of less than Rs. 10 lacs are produced in
the table below).
1. Three criminal complaints have been filed against ICICI Limited (since merged with ICICI Bank Limited) before the
Metropolitan Magistrate, Mumbai, under the Maharashtra Private Security Guards Act, 1981 on technical grounds
that security guards have been engaged from exempted security agencies even though ICICI Bank Ltd is registered
with the Security Guards’ Board. ICICI Bank Ltd has earlier replied to the notices stating that registration is only in
respect of ICICI Bank’s residential quarters at Andheri and not in respect of other establishments of ICICI Bank Ltd.
2. Two criminal complaints have been filed against ICICI Bank Limited before the Metropolitan Magistrate, Mumbai,
under the Maharashtra Private Security Guards Act, 1981, on technical grounds that security guards have been
engaged from unexempted security agencies. ICICI Bank Ltd has taken a stand that the exemption of security agencies
continued on account of High Court Order.
3. One case was filed by the Union of Security Guards at Bandra Kurla Complex against ICICI Limited (since merged
with ICICI Bank Limited) in the Industrial Court claiming difference in wages on the ground that ICICI Bank Ltd is
engaging security guards, which is not correct. ICICI Bank Ltd has filed a detailed reply inter alia pointing out that
the engagement of security guards was for temporary period, which came to an end on September 30,2000. The
Union had filed a writ petition in the Bombay High Court against the Order of the Industrial Court vacating the
earlier status quo order, which has been dismissed. The appeal filed by the Union in the Bombay High Court (Division
Bench) has been dismissed. The Union has withdrawn the case from the Industrial Court. The Union has raised an
industrial dispute and thereafter has filed another writ petition in Bombay High Court inter alia seeking direction
for reference of the industrial dispute to Industrial Tribunal and restraining ICICI Bank Ltd from terminating the
security guards. No stay has been granted and the earlier order for maintaining status quo has expired. The said
industrial dispute has been referred to the Industrial Tribunal.
4. Walsons Industries Products Inc. has filed in the Mumbai High Court a suit against ICICI Limited (since merged with
ICICI Bank Limited) for recovery of US$653,000 alleging that three bills should be paid by ICICI Bank Ltd in terms of
a letter of credit as done in the case of five previous bills since they formed part of the same transaction. ICICI Bank
Ltd has put up a defence stating that all documents received through Bank of Nova Scotia are on collection basis,
each one of them being an independent transaction by itself without any supporting commitment from ICICI Bank
Ltd through the letter of credit. The court has granted us unconditional leave to defend the case.
5. Municipal Corporation of Greater Mumbai (BMC) has filed 5 cases against ICICI Bank for violating of Section 471 of
the BMC Act read with Sec. 328-A on ground of non-payment of license fees for the illuminated sign boards at
ICICI Bank’s ATM centres. ICICI Bank filed a Writ Petition challenging the applicability of the provisions of Sec. 328 &
328-A of BMC Act in respect of the ATM Centres. The Writ Petition stood dismissed. As against the dismissal order,
ICICI Bank filed a Special Leave Petition on November 14, 2002 in the Supreme Court.
6. A suit has been filed by M.B. Industries Limited a with the High Court at Kolkata claiming a decree of Rs.10.25
crores from ICICI Limited (since merged with ICICI Bank Limited), IDBI and IFCI in 1997. ICICI Bank’s share of the
total claim amount is approximately Rs. 2 crores. The Kolkata High Court has not granted any relief to the company.
However leave was granted to ICICI Bank, IDBI and IFCI to file recovery suits against the the company. IDBI as the
91

Prudential ICICI Mutual Fund
lead, has filed joint suit with ICICI Bank and IFCI before DRT, Kolkata, against the company. ICICI Bank’s claim in the
suit is Rs. 191 lakhs. IDBI as the lead, has filed application u/s 22 (1) of SICA before the BIFR for permission to
continue with legal proceedings against the company. The BIFR has recently granted permission to continue with
legal proceedings against the company. The BIFR has recently granted permission to continue with legal proceedings
against the company. The suit is adjourned to January 17, 2003.
7. Shri Vijay Shankar Prasad one of the debenture holder of of Lloyds Finance & Investment Co. Ltd. had filed a Criminal
complaint against the company its officials and has also impleaded Shri K V Kamath, MD & CEO of ICICI Bank Ltd.
Summons were issued for personal appearance of Shri Kamath against which we have filed an application under
Section 205 of CRPC before the Magistrate Court and the same has been allowed. We have also filed criminal
revision petition before the Sessions Judge and the Hon’ble Judge has admitted the revision application, called for
the records from the Magistrate Court and hence the proceedings before the Magistrate Court has been stayed. The
matter is posted on January 3, 2003.
8. A criminal complaint has been filed before the Metropolitan Magistrate at Ahmedabad by a Debenture holder of
Western India Shipyards Limited, against the Company, its Directors and against us as Debenture Trustees. The basic
complaint arises out of forfeiture of amounts paid by the Debenture holder for Partly Convertible Debentures allotted
to her since call money has not been paid. This is a civil matter and the complaint is likely to be dismissed. ICICI
Bank Ltd has filed a petition in the Hon’ble High Court of Gujarat for quashing of the criminal complaint. The
Hon’ble High Court of Gujarat has stayed the criminal proceedings qua ICICI Bank Ltd and its Nominee Director.
9. The Peerless General Finance & Invest. Co. Ltd., one of the debenture holder of Essar Oil Ltd. (in which ICICI Ltd.
which has been merged with ICICI Bank Ltd. (ICICI Bank) is acting as trustees) has filed a suit against Essar Oil Ltd.
and others before the City Civil Court, Calcutta for non-receipt of redemption amount and interest. ICICI Bank has
been impleaded as Defendents. We have filed our Written Statement before the City Civil Court, Kolkata.
10. A suit was filed by Anagram Finance Limited in November 1998 for recovery of a sum of Rs.6.83 crores from EZY
Slide Fasterners Limted. Summonses have been served on the EZY Slide Fasterners Limted. They have not filed
appearance and ICICI Bank is going to pray for a decree. EZY Slide Fasterners Limited filed a separate suit for recovery
of Rs 7.18 crores, being the loss allegedly suffered by them on account of breach by Anagram of Subscription
Agreement dated April 4,1995 for subscribing to 420,000 Zero Interest Fully Convertible Debentures. The matter
has not come up for arguments till date.
11. The Union of contract labourers has raised an industrial dispute and thereafter filed a writ petition in the Bombay
High Court inter alia seeking direction for reference of the industrial dispute to the Industrial Tribunal and for
continuation of arrangement of payment of wages in the meantime beyond December 31, 2001. However, the High
court has not extended the date of the said arrangement. The said industrial dispute has been referred to the
Industrial Tribunal.
12. A complaint was filed against Wipro Limited and all its Directors including Mr. K.V. Kamath, in his capacity as Nominee
Director on the Board Wipro Limited before the Court of Judicial Magistrate, Bhavanagar by the Gujarat Pollution
Control Board alleging that effluents were being discharged without proper treatment. Shri K. V. Kamath is Managing
Director and CEO of ICICI Bank Limited. Shri K.V. Kamath was not a director of Wipro Limited as on the date of
alleged offence. Special Leave Petition on behalf of the directors is filed before the Supreme Court challenging the
order of the High Court of Gujarat dismissing the application for quashing the said complaint. The Special Leave
Petition has been admitted and the criminal complaint has been stayed.
13. A shareholder of erstwhile ICICI since merged with ICICI Bank Ltd. had filed a complaint before the Consumer
Redressal Forum, Hyderabad District against ICICI Infotech Services Limited regarding transfer of five shares inspite
of stop transfer request by him. The District Forum dismissed his complaint. The shareholder appealed against the
Order of the District Forum and the appeal was admitted by the A.P State Consumer Disputes Redresal Commission
and directed ICICI Bank Ltd to pay compensation and costs. An amount of Rs. 12,500/- was accordingly paid to the
complainant . However, the shareholder also has filed a criminal complaint against ICICI Bank Ltd and ICICI Infotech
Services Ltd, before the XI Metropolitan Magistrate, Secunderabad and the The Hon’ble magistrate has referred the
matter to Marredpally Police Station, Secunderabad for investigation. We have filed a quash petition before the
Hon’ble High Court of Andhra Pradesh (APHC) for quashing the criminal complaint filed before the XI Metropolitan
Magistrate, Secunderabad and APHC has granted stay on the investigations being undertaken by the police
department till further orders.
14. ICICI Bank Ltd has filed a joint suit together with other banks and financial institutions in DRT Delhi against Esslon
Synthetics Ltd. and its Managing Director (in his capacity as guarantor) for recovery of dues, The guarantor has filed
a counter claim for an amount of Rs. 100 crore against ICICI Bank Ltd and other parties to the suit who were
signatories to the hiving off arrangement of the Company’s Fibres Division and LML Limited (Scooters Division) into
separate companies.
15. A joint suit was filed by all lenders with IFCI as the lead against Best Boards Limited for recovery of dues in DRT,
Delhi. The Company has filed a counter claim of Rs. 600 lacs against all lenders (including ICICI Bank Ltd) on the
ground that IFCI, as the lead institution, refused to give its consent for sale of the plant & machinery and has alleged
that there were prospective buyers who were willing to pay a sum of Rs. 600 lacs thereby causing loss to the Company.
92

Prudential ICICI Balanced Fund
16. Pelicorp Limited has filed a criminal complaint against ICICI Bank Limited and Mr. H.N.Sinor, Joint Managing Director
of ICICI Bank Limited and the writ petition has been filed for quashing the said complaint and high court has
granted interim stay on the criminal complaint.
17. A complaint was filed against Wipro Limited and all its director including Mr. Nachiket Mor, in his capacity as Nominee
Director on the Board of Wipro Limited before the Court of Judicial Magistrate, Jalgaon by the Food Inspector, Food
and Drug Administration alleging that the Vanaspati produced did not contain the specified requirements. Mr. Nachiket
Mor is Executive Director of ICICI Bank Limited. Special Leave Petition on behalf of the Directors is filed before the
Supreme Court Challenging the order of the High Court of Maharashtra dismissing the application for quashing
the said complaint, the same is admitted and the criminal complaint has been stayed.
18. A Criminal Complaint has been filed against ICICI Bank Limited and Mr. H.N. Sinor, Joint Managing Director of ICICI
Bank Limited before the Chief Judicial Magistrate, Jaipur for offense for wrongful dishonor of cheques. We have
filed revision before the High Court at Jaipur. The Hon’ble Court was pleased to admit the revision and stay the
proceedings pending before the Chief Judicial Magistrate.
19. Shri Madan Gopal one of the debenture holders of Modern Denim Ltd. has filed a criminal complaint against the
company its officials and has also impleaded Shri N Vaghul, Chairman of ICICI Bank Ltd. Summons were issued for
personal appearance of Shri Vaghul against which ICICI Bank has filed an application under Section 205 of CrPC
before the Magistrate Court (enclosing a medical certificate) and the same has been allowed. We have also filed a
criminal revision petition before the Sessions Judge and the Hon’ble Judge has admitted the revision application,
called for the records from the Magistrate Court and hence the proceedings before the Magistrate Court have been
stayed. The matter is posted on January 02, 2003.
20. A Criminal Complaint has been filed before the Metropolitan Magistrate’s 26 th Court at Borivli, Mumbai by Ms
Dipali Gopani against ICICI Home Finance Company Limited, Shri K V Kamath, Shri Vaghul, Smt Gupte, Shri S Mukherji,
Smt Morparia, and certain other Directors of erstwhile ICICI Limited. A Criminal Application has been filed on behalf
of the said five Directors and all other Directors in the Bombay High Court for quashing the complaint and in the
interim for stay of the complaint against the Directors. The High Court has disposed of the said Criminal Application
on December 13, 2002, after recording the statement of the Complainant that she would be withdrawing the
Complaint against all Directors except those who are Directors of ICICI Home Finance Company Limited.
21. On April 12, 1999 ICICI had filed a suit before Hon’ble Bombay High Court (being Suit no 2203 of 1999) against
Mardia Chemicals Limited [MCL] for recovery of outstanding amount of Rs 135 crores (approx). Thereafter on July
16, 2002 ICICI issued a notice under the Securitisation And Restructuring Of Financial Assets & Enforcement of
Security Interest Ordinance, 2002 demanding payment of outstanding amount of Rs 293.49 crores. Thereafter on
August 30, 2002 MCL has filed a suit in the City Civil Court at Ahmedabad against ICICI Bank Limited, Shri K V
Kamath & Smt Lalita D Gupte for purported amount of Rs.56,31,44,00,000/-. We have been advised that the suit
filed is not tenable, bad in law and motivated steps being adopted by MCL to thwart our recovery proceedings. We
have filed an application under Order 7 Rule 11 of the Code of Civil Procedure for the dismissal of the suit on the
grounds of limitation, jurisdiction and no cause of action against ICICI Bank Limited, Shri Kamath and Smt Gupte.
We have been granted time to file our written statement till December 17, 200. The matter is coming up for hearing
on December 11, 2002.
22. On October 30, 2002, Shin-etsu Chemicals Private Limited [Shin-etsu] filed a suit before Supreme Court of New York
(being Complaint no. 603711of 2002) against ICICI Bank Limited [ICICI Bank] for compensatory damages of US$
1,000,000 plus interest for the alleged dishonouring by ICICI Bank of the letter of credit issued by ICICI Bank in
favour of Shin-etsu. ICICI Bank has not agreed to make payments under the Letter of Credit as one of the terms of
the Letter of Credit has not been complied with. We have on record a legal opinion from our Solicitors confirming
that ICICI Bank was well within their rights not to make payments under the Letter of Credit. The reply to the complaint
has been drafted by our counsel which is being filed.
23. A criminal complaint has been filed by the Inspector of Legal Metrology at Andheri, Mumbai Court for violation of
Rule 8(1)(a) and (b) of Weights and Measures (Packaged Commodities) Rules, 1977 against Godrej Consumer Products
Limited and all its directors including Mr. Anupam Puri, a non-whole-time director of ICICI Bank, for not keeping the
area surrounding the quantity declaration on a pack of Shaving Cream free from printed information. The offence is
compoundable under the provisions of the Weights and Measures (Packaged Commodities) Rules, 1977 and the
said Company has applied for the same.”
24. In April 2001, a suit has been filed against Vision Organics Limited for recovery of Rs. 31.27 crores before DRT,
Ahmedabad. In the said suit the Company has filed a counter claim against the Bank for Rs 23 Crores and recently
paid Court Fees after the Bank raised the objection.
93

Prudential ICICI Mutual Fund
(Rs. in crores)
Sr. No. Nature of claim Cases with Monetary Cases with no
Claim
specific
monetary
claim
Number Amount Number
1. Suits/legal proceedings filed by 214 0.28 232
shareholders/ bond holders of
ICICI Bank Limited
2. Suits/legal proceedings filed by debenture 12 11.29 190
holders against ICICI Bank Limited as
Debenture Trustees.
3. Suits filed by lessees/hirers seeking injunction 139
against ICICI Bank Limited taking possession of
vehicles pursuant to lease/hire purchase agreements
and other suits filed by retail customers.
4. Miscellaneous suits/ legal proceedings in the course 63 0.53 50
of business.
Any deficiencies in the systems and operations of the sponsor of the mutual fund or any company associated with the
sponsor in any capacity such as the AMC or the trustee company which SEBI has specifically advised to be disclosed in
the offer document, or which has been notified by any other regulatory agency.
Capital Markets : ICICI Bank acts as bankers to the market offerings of companies on account of raising of equity or
debt, buy back of equity and for acquisition of equity on account of takeovers. These companies are required to maintain
the subscription funds with the bankers to the offering until the allotment of shares/buy back of shares and the refund
of excess subscription is completed. This process generally takes about 15 to 30 days, resulting in short-term deposits
with ICICI Bank.
SEBI had issued a notice in the matter of North Star Gems (India) Ltd to show cause as to why Bhadra, Ahmedabad
branch of the erstwhile Bank of Madura should not be suspended from conducting merchant banking activities for a
period of 6 months. ICICI Bank filed its detailed reply with SEBI. SEBI in terms of their Order dated October 16,2002 took
note of the fact that RBI had not indicated any malafide actions on the part of bank officials and also the fact that the
Bank had taken disciplinary action against the concerned employees and issued a warning to Bhadra Branch of ICICI
Bank with further direction to that Branch to act with due skill, care and diligence while acting as Banker to an Issue.
Debenture Trusteeship: The erstwhile ICICI Limited had provided debenture trusteeship services since 1983, and acted
as trustee for the holders of convertible and non-convertible debentures issued in the public and private markets. During
SEBI’s inspection of the Debenture Trustee operations of the erstwhile ICICI Limited, observations on certain shortcomings
were made by SEBI in its inspection report. The erstwhile ICICI Limited had initiated suitable action based on SEBI report
and had submitted a detailed reply to SEBI. The matter is being examined by SEBI. The erstwhile ICICI Limited had
subsequently, with a view to exit this business, been divesting the portfolio of debenture trusteeship in favour of other
debenture trustees. ICICI Bank continues to act as a debenture trustee for the remaining companies for which the erstwhile
ICICI Limited were debenture trustees. ICICI Bank has been permitted by SEBI to act as a debenture trustee.
SUBSIDIARIES
1. ICICI Securities and Finance Company Limited (ICICI Securities): ICICI Securities was set up in February 1993 to provide
investment-banking services to investors. ICICI Securities has three main business linesl
Corporate advisory and Mergers and Acquisitions
l Fixed income; and
l Equities
With the merger of erstwhile ICICI Limited with ICICI bank becoming effective, ICICI Bank holds 99.92% of the share
capital of ICICI Securities. ICICI Securities is a Merchant Banker, Underwriter and Portfolio Manager registered with SEBI.
Also ICICI Securities is a Primary Dealer registered with RBI engaged in acquisition and trading of Government Securities.
Currently ICICI Securities provides services such as issue management underwriting, placement of debt and equity,
corporate advisory services including mergers, amalgamations and spin offs, capital structuring, valuations and fairness
opinion reports and as a Primary Dealer actively involved in money market operations, and trading in securities. It also
provides specialised services in the areas of private equity syndication and privatisation of government entities. In addition,
ICICI Securities has a research team, which identifies investment opportunities and provides timely investment advice to
clients. ICICI Securities is amongst the largest arranger of funds in Debt and Equity segments and also amongst the
leading advisors in Mergers and Acquisitions. It is also amongst the highest capitalized Investment Banks in India with
net worth of Rs.3,191.80 million as on March 31, 2002.
94

Prudential ICICI Balanced Fund
ICICI Securities was awarded two penalty points by SEBI for non-submission of Letter of Offer in the Rights issues of
Siroplast Limited and Thane Electricity Supply Co. Ltd. during 1995 and one penalty point for non-submission of postissue
report in the Public Issue for Shree Rajasthan Texchem Ltd. Further, warning letters were issued by SEBI on October
2, 1998 for lack of due diligence in the issue of Hindustan Motors Ltd. and on July 11, 2000 in connection with
dissemination of information to investors in the issue of Cadila Healthcare Limited.
ICICI Securities was issued a warning letter by RBI on May 30, 2001 on the bouncing of SGL form on a government
securities transaction on May 4, 2001. Before this, RBI had issued four such letters on January 9, 1997, February 23,
1999, June 13, 2000 and January 18, 2001. However penal action is initiated by RBI only in case of three consecutive
instances of bouncing in the period of six months i.e. April-Sept. and /or October-March. Hence no penal action was
taken in above instances.
RBI reduced the liquidity support limit for ICICI Securities by Rs.25 crore for a period of three months from October 7,
2002 until January 6, 2003, for delayed submission of bid in the treasury bill auction conducted on September 25,
2002. Earlier, a reduction in the liquidity support limit by Rs.1.50 crore was imposed for shortfall in bidding commitment
on April 7, 2000, which was reset to original level with effect from October 9, 2000.
2. ICICI Investment Management Company Limited: ICICI Investment Management Company Limited (“ICICI Investment
Management”) had been incorporated on March 9, 2000 as a 100% subsidiary of erstwhile ICICI Limited (ICICI) and
obtained certificate of commencement of business on March 14, 2000. The authorised share capital of ICICI Investment
Management is Rs.25 crore and the paid-up share capital is Rs.10,00,07,000. Consequent to the amalgamation of ICICI
with ICICI Bank becoming effective on May 3, 2002, ICICI Investment Management has become a 100% subsidiary of
ICICI Bank.
The main object of ICICI Investment Management is to carry on the business activities in respect of the management of
mutual funds, unit trusts, offshore funds, pension funds, provident funds, venture capital funds, insurance funds, and to
act as managers, consultants, advisors, administrators, attorneys, agents, or representatives of or for mutual funds, unit
trusts, offshore funds, pension funds, provident funds, venture capital funds or insurance funds formed or established
in India or elsewhere by ICICI Investment Management or any other person (whether incorporated or not) or by any
government, state, local authority, association, institution (whether incorporated or not) or any other agency or organisation
and to act as Financial Advisors and Investment Advisors, and to render such financial management, financial consultancy
and advisory services to individuals, companies, corporations, trusts and other entities as supplemental activities of ICICI
Investment Management and as do not conflict with the fund management activities.
ICICI Investment Management is the asset management company of “ICICI Securities Fund”, a Mutual Fund registered
with the Securities and Exchange Board of India.
SEBI had issued a warning letter on May 22, 2000 to ICICI Investment Management for lack of due diligence while
submitting the offer document for ICICI CBO Fund-I.
Prudential plc.
Financial Services Authority (FSA)– Scottish Amicable
Following a visit in January 2001 the FSA raised concerns about the implementation by Scottish Amicable Life of
requirements issued by the Personal Investment Authority in December 1999 concerning the sales of mortgage endowment
policies.
The Company agreed to review policies sold since that date; the matter has not been concluded.
FSA - Prudential
The Prudential Assurance Company Limited has twice been criticised for failing to meet its pension mis-selling review
deadlines. The first occasion was by the FSA in 1997.
In December 1997, the FSA issued a section 60 notice and a public statement criticising the Company’s compliance
arrangements with respect to its direct sales force.
London Stock Exchange
Prudential Corporation plc was publicly criticised by the London Stock Exchange in 1995 for the manner in which it dealt
with authorisation of a dealing by its then chief executive in Prudential shares.
Any enquiry/adjudication proceedings under the SEBI Act and the regulations made there under, against the sponsor of
the mutual fund or any company associated with the sponsor in any capacity such as the AMC, Board of Trustees/Trustee
Company or any of the directors or key personnel of the AMC:
Prudential plc
PIA investigations:
Prudential Assurance Company Limited: Following an article in “The Guardian” in August 1998 concerning possible
pensions mis-selling, the PIA will be investigating 2 cases.
95

Prudential ICICI Mutual Fund
SIB cases
Prudential Assurance Company Limited: A number of writs were issued from 1995 to 1997 in connection with the
mis-selling of personal pensions, mainly where a personal pension was taken out in preference to occupational scheme
membership but in some cases where an occupational scheme benefit was transferred to a personal pension.
Some were for protective purposes pending review of the sale under the SIB guidance; others proceeded, and many have
reached settlement via consent orders on the basis of payment of full compensation but without an admission of liability.
ITC Advertising Complaints Reports
(Pru Banking): Complaints were received in November/December 1997 from 3 viewers. An advertisement for a Prudential
60 Day Notice Account offered a rate of 7.5% gross per annum on £10,000 and included the statement “you won’t find
a better rate of interest for £10,000”.
Two viewers objected that a “better rate” of 7.6% could be obtained on £10,000 in a Legal and General 60 day Notice
Account. The third viewer objected that the rate of 7.5% in fact included a 1% loyalty bonus, which only applied after
£10,000 had been held in the account for 12 months.
Assessment: Following a complaint on 17 October 1997, the ITC drew the Teletext’s attention that a higher rate of
interest was apparently being paid on a Legal and General account comparable to the Prudential’s. Teletext immediately
removed the Prudential advertisement from air pending investigations. These revealed that whilst Legal and General had
introduced a rate of 7.6% on 10 October 1997, Prudential had not matched this rate until 17 October 1997. In addition,
whilst Prudential’s advertising agency had, on 15 October 1997, requested Teletext to amend the rate to 7.6% from 20
October 1997, press advertising for the Prudential account had reflected the higher rate on 17 October 1997.
Teletext confirmed that the headline rate was stated gross of a 1% loyalty bonus, which was only paid if the account was
still open after 12 months and only two withdrawals had been made. They agreed that this was a significant condition
which should have been made clear and instructed that subsequent advertising for this Prudential account should include
details.
The ITC agreed that the advertising had been misleading during the period the Legal and General had been offering a
higher rate than Prudential and considered that the omission of details about the 1% loyalty bonus had also rendered
the advertising misleading.
Teletext had already removed the advertisement from air and would not permit it to return until the relevant amendments
were made.
The complaints were upheld.
Complaint via Trading Standards Department
The Prudential Assurance Company Limited: An objection (in 1998) was received via the Trading Standards Department
to a leaflet that claimed “Save around £100 on home insurance”. The complainant, who was given a quote for £16
more than his existing policy, challenged whether the savings were generally attainable.
Adjudication: The complaint was upheld. The advertisers submitted a summary of their research, which showed that nine
tenths of customers who had switched their home insurance to Prudential had saved an average of £97.99. They argued
that the claim was neither a price promise nor a guarantee that Prudential would always be the cheapest. The Authority
noted that the leaflet stated elsewhere that “You could save money …..” It considered, however, that the claim implied
that switching to the advertisers’ household insurance policies always saved customers money. Because that was not
true, the Authority asked the advertisers not to use the claim again.
Complaints about advertisements in the national press
1 The Prudential Assurance Company Limited: An objection (in 1998) to a national press advertisement that was
headlined “Prudential announce a rate change of great interest to savers” and featured a table of interest rates for
the advertisers’ 60 Day Notice Account . One column of the table was headed “Monthly Rates (inc loyalty bonus)*”
and quoted annual interest rates for those who have their interest paid monthly. A footnote stated “The rates include
a loyalty bonus of 1% gross pa (0.8% net pa) calculated daily and paid annually on the anniversary date. This is paid
provided the account is still open and in the preceding 12 months no more than two withdrawals have been made
and the balance has not been less than £2,000.” The complainant objected that the advertisement was misleading
because the loyalty bonus was not paid until the anniversary date.
Adjudication: Complaint upheld. The advertisers said they believed the footnote explained that monthly interest was
calculated excluding the loyalty bonus but accepted that the presentation of the advertisement could be confusing. The
Authority considered that the advertisement was misleading and it welcomed the advertisers’ intention to amend future
advertisements to state monthly interest rates without the loyalty bonus, which they will show separately.
The Prudential Assurance Company Limited: An objection (in 1998) to a national press advertisement that was headlined
“Why you’ll be better off with Prudential because we’re No. 1 in our field”. The complainant challenged the claim.
96

Prudential ICICI Balanced Fund
Adjudication: Complaint upheld. The advertisers submitted evidence that showed they were number one in some but
not all the aspects of their pension and life insurance business. The Authority accepted that the advertisers claim was
acceptable in relation to pensions and life insurance but considered that their information did not adequately substantiate
the general claim that the advertisers were “No. 1” in their field. The Authority asked the advertisers to specify in future
the sectors in which they could show they were “No. 1”.
The Prudential Assurance Company Limited (PAC): LAUTRO approached PAC in April 1994 with a request for its cooperation
in an informal review to validate LAUTRO’s pension rules for the future. Prudential agreed to co-operate. LAUTRO
subsequently expressed various concerns about the Prudential’s approach to pension transfers. The review was placed on
a formal footing in March 1995. Following further discussions with LAUTRO, LAUTRO agreed not to take any disciplinary
action and no charges were brought.
State of Florida (Division of Securities & Finance) fined National Planning Corporation (NPC) $10,000 for failing to register
two branch offices. NPC were also required to sign a Stipulation and Consent Agreement.
OPRA fined Prudential Nominees Ltd (PNL) £5000 following a determination regarding the Ledo Limited Pension Plan (a
SSAS) for which PNL is pensioneer trustee. The fine is in respect of failing to appoint an auditor and other procedural
failures. We have asked for reconsideration at OPRA Council meeting in March 2002.
National Planning Corporation (NPC) have established a $6m claimants funds after agreement with New York Attorney
General (NYAG). This follows NYAG investigation into sale of payphones and leaseback arrangements of ETS payphones
by representatives of NPC. NYAG allege that the sale constituted an unregistered securities offering.
Jackson National Life (JNL) have reached a settlement of Haggan case and the Andrews Dunn and Gales cases linked to it
for a sum of $10m. Finalised in January 2002 - the terms of the settlement are confidential and should not be disclosed
to third parties.
e) BORROWING BY THE MUTUAL FUND
Under the Regulations, the Fund is allowed to borrow to meet its temporary liquidity needs of the Fund for the purpose
of repurchase, redemption of units or payment of interest or dividend to the Unitholders. Further, as per the Regulations,
the Fund shall not borrow more than 20% of the Net Assets of the Scheme and the duration of such borrowing shall
not exceed a period of six months. The Fund may raise such borrowings after approval by the Trustee from any of its
Sponsors/Associate/Group Companies/Commercial Banks in India or any other entity at market related rates prevailing at
the time and applicable to similar borrowings. The security for such borrowings, if required, will be as determined by the
Trustee. Such borrowings, if raised, may result in a cost, which would be dealt with in consultation with the Trustees.
No borrowings have been raised under any of the Schemes of the Fund, as of the date of this Offer Document.
f) STOCK LENDING BY THE MUTUAL FUND
Subject to the Regulations and the applicable guidelines, the Scheme and the Plans thereunder may, if the Trustee permits,
engage in stock lending. Stock lending means the lending of stock to another person or entity for a fixed period of time,
at a negotiated compensation. The securities lent will be returned by the borrower on expiry of the stipulated period.
Please see page 50 on risks attached with stock lending. Each Plan, under normal circumstances, shall not have exposure
of more than 50% of its net assets in stock lending. The Plan may also not lend more than 50% of its net assets to any
one intermediary to whom securities will be lent. The AMC shall report to the Trustee on a quarterly basis as to the level
of lending in terms of value, volume and the names of the intermediaries and the earnings/losses arising out of the
transactions, the value of collateral security offered etc. The Trustees shall offer their comments on the above aspect in
the report filed with SEBI under sub-regulation 23(a) of Regulation 18.
G) POLICY ON OFFSHORE INVESTMENTS BY THE SCHEME
SEBI Regulations currently permit mutual funds to invest in ADRs/GDRs issued by Indian companies and notified foreign
securities subject to certain prescribed limits. SEBI vide its circular no. SEBI/MFD/CIR No.02 /6855/ 03 dated April 4, 2003
have allowed the mutual funds to make investments in equity of listed overseas companies which have a shareholding of
at least 10% in an Indian company listed on a recognised stock exchange in India (as on January 31 of the year of
investment).
Accordingly, SEBI has permitted each mutual fund to invest up to 10% of their net assets as on January 31, 2003 for
investment in foreign securities, subject to a maximum of US$ 50 million for each mutual fund irrespective of the size of
the assets as specified in SEBI circular MFD/CIR/18/21826/2002 dated November 7, 2002 remains unchanged.
In terms of Annual Monetary and Credit Policy for the year 2003-2004, RBI has decided to accord general permission to
mutual funds for their overseas investments within the overall cap - US $ 1.0 billion, once SEBI’s approval has been
obtained. This general permission will be available until further notice.
It is the Investment Manager’s belief that investment in ADRs/GDRs/ overseas securities offer new investment and portfolio
diversification opportunities into multi-market and multi-currency products. However, such investments also entail
additional risks. Such investment opportunities may be pursued by the Investment Manager provided they are considered
appropriate in terms of the overall investment objectives of the Scheme and the Plans thereunder. Since the Scheme and
the Plans thereunder would invest only partially in ADRs/GDRs/overseas securities, there may not be readily available and
97

Prudential ICICI Mutual Fund
widely accepted benchmarks to measure performance of the Scheme and the Plans thereunder. To manage risks associated
with foreign currency and interest rate exposure, the Fund may use derivatives for efficient portfolio management including
hedging and in accordance with conditions as may be stipulated by SEBI/RBI from time to time.
Offshore investments will be made subject to any/all approvals, conditions thereof as may be stipulated by SEBI/RBI and
provided such investments do not result in expenses to the Fund in excess of the ceiling on expenses prescribed by and
consistent with costs and expenses attendant to international investing. The Fund may, where necessary, appoint other
intermediaries of repute as advisors, custodian/ sub-custodians etc. for managing and administering such investments.
The appointment of such intermediaries shall be in accordance with the applicable requirements of SEBI and within the
permissible ceilings of expenses. The fees and expenses would illustratively include, besides the investment management
fees, custody fees and costs, fees of appointed advisors and sub-managers, transaction costs, and overseas regulatory
costs.
H) INTER-SCHEME TRANSFERS
The Fund may undertake inter-Scheme transfers under the Scheme. If such transfers are done they will be effected based
on the closing prices of the Principal Stock Exchange and in conformity with Regulations. In case of securities which are
not traded on the Principal Stock Exchange / any other exchange, the inter-Scheme transfers will be affected based on fair
valuation to be arrived at by the AMC with the approval of the Trustee.
i) DIVIDENDS AND DISTRIBUTIONS
As disclosed in this Offer Document, the Trustee proposes to adopt the following dividend distribution policy:
It is proposed to declare dividends under the Scheme either half yearly or yearly. Dividends, if declared, will be paid out of
the net surplus of the Scheme to those Unitholders whose names appear in the Register of Unitholders on the notified
record date. The actual declaration of dividends under the Scheme and the frequency thereof will, inter-alia, depend
upon the disposable surplus of the Scheme. The decision of the Trustee in this regard shall be final.
The dividend will be at such rate as may be decided by the AMC in consultation with the Trustee.
The AMC may announce a book closure period for the purpose of making the dividend payment.
j) GENERAL INFORMATION
l Power to make Rules
Subject to the Regulations, the Trustee may, from time to time, prescribe such terms and make such rules for the purpose
of giving effect to the Scheme with power to the AMC to add to, alter or amend all or any of the terms and rules that
may be framed from time to time.
l Power to remove Difficulties
If any difficulties arise in giving effect to the provisions of the Scheme, the Trustee may, subject to the Regulations, do
anything not inconsistent with such provisions, which appears to it to be necessary, desirable or expedient, for the purpose
of removing such difficulty.
l Scheme to be binding on the Unitholders
Subject to the Regulations, the Trustee may, from time to time, add or otherwise vary or alter all or any of the features of
investment plans and terms of the Scheme after obtaining the prior permission of SEBI and Unitholders (where necessary),
and the same shall be binding on all the Unitholders of the Scheme and any person or persons claiming through or
under them as if each Unitholder or such person expressly had agreed that such features and terms shall be so binding.
98

Prudential ICICI Balanced Fund
l DOCUMENTS AVAILABLE FOR INSPECTION
1. Memorandum and Articles of Association of the Trustee Company and the AMC
2. Custodian Agreement between Trustee and HDFC Bank
3. Investment Management Agreement
4. Trust Deed and amendments thereto
5. Mutual Fund Registration Certificate
6. Consent of Registrar to act in the said capacity
7. Consent of Auditors to act in the said capacity
8. Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereof from time to
time.
9. Indian Trust Act, 1882
Notwithstanding anything contained in the offer document the provisions of the SEBI (Mutual Funds) Regulations, 1996
and the Guidelines thereunder shall be applicable.
Note: The Scheme under this Offer Document was approved by the Directors of Prudential ICICI Trust Limited by circulation
on August 13, 1999.
For and behalf of the Board of Directors of
PRUDENTIAL ICICI ASSET MANAGEMENT COMPANY LIMITED
Place: Mumbai
Date: September 20, 2003
Sd/-
Shailendra Bhandari
Managing Director
99