Annual Report for Monthly Income Schemes - Tata Mutual Fund

Subsequent to the amendments carried out by SEBI (Mutual Funds) (Second Amendment) Regulations, 2012, andnecessary addendum filed by the Fund with SEBI, with effect from 3rd October, 2012, only management fee andtrusteeship fee are being charged to the Scheme. All other expenses are borne by the Investment Manager.1.5 Unit Premium Reserve (“UPR”) and Income EqualisationOn issue / repurchase of units, the portion of the premium which is attributable to realised gains is credited / debited tothe Revenue Account for the period as Income Equalisation. It is reflected in the Revenue Account after the net surplus/ deficit of the scheme is determined. The balance portion of the premium that is not attributable to realised gains iscredited / debited to the UPR.If units are sold at a price lower than the face value the difference is debited to the Revenue Account as IncomeEqualisation.The distributable amount is determined by deducting from the balance in the Revenue Reserve as at the end of theperiod, the net unrealised appreciation in the value of investments as at the end of the period. Credit balance in the UPRis considered to be at par with unit capital and is not taken into account in the determination of the distributable surplus.Dividend is declared only when the Revenue Reserve is positive.1.6 Load Charges:Load represents amounts charged to investors at the time of exit from the Scheme.The difference between the NAV andthe repurchase price is disclosed as “Accumulated Load” which is not considered for computation of the NAV of theScheme.With effect from 1st August, 2009, the Scheme has not charged any entry load on investments made into it (includingadditional purchases and switches into the Scheme from other schemes) otherwise than through Systematic InvestmentPlans ("SIPs") registered prior to 31st July, 2009 and exit load charged in excess of 1% of redemption value is creditedto the Scheme.In the books of account of the Scheme, the load balances are identified in two parts viz. balance that existed as at 31stJuly, 2009 and accretions that were made post that date. The utilisation of portion that existed on 31st July, 2009 isrestricted for use in marketing and selling expenses including distributor's / agent's commissions subject to a limit of onethirdeach in that and subsequent financial years. The unused balance of such load subjected to restricted usage as at31st March, 2013 is Rs.Nil (previous year Rs.Nil). The accretions after 31st July, 2009, can be utilised without anyrestrictions.In compliance with SEBI (Mutual Funds) (Second Amendment) Regulations, 2012, with effect from 1 st October 2012,exit load collected, net of service tax, is credited to the Scheme.