mirae asset global investment management i pvt ltd Management discussions

MIRAE ASSET GLOBAL INVESTMENT MANAGEMENT (INDIA) PRIVATE LIMITED (Formerly known as MIRAE ASSET INDIA INVESTMENT COMPANY LIMITED) ANNUAL REPORT 2007-2008 MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL HIGHLIGHTS: The financial highlights of the Company for the period ended March 31, 2008 are as below: Particulars November 20, 2006 to March 31, 2008 Amount (Rupees in Lacs)* Income 555.40 Expenditure 5292.05 Profit/(Loss) before Taxation (4736.65) Provision for Taxation 43.25 Profit/(Loss) after Taxation carried forward (4779.90) Total Profit/(Loss) (4779.90) * Amount is rounded off up to 2 decimals places. OPERATIONS: The Company is a subsidiary of Mirae Asset Investment Management Co. Ltd. The Companys principal activity is to act as an Investment Manager to Mirae Asset Mutual Fund (the Fund). The Company has registered as an Investment Manager with Securities and Exchange Board of India (SEBI) under SEBI (Mutual Funds) Regulations, 1996. The principal business is to provide management advisory and administrative services to the Fund in accordance with the Investment Management Agreement dated October 11, 2007 between Mirae Asset Trustee Company Private Limited and the Company. The Company has also received approval from SEBI to provide non-binding advisory services to its group companies operating offshore funds domiciled in Korea and managed by offices located in Singapore, United Kingdom and Hongkong and other funds of similar nature. CHANGE IN NAME OF THE COMPANY: Your Company was incorporated as Mirae Asset India Investment Company Private Limited. Consequent to registration of the Company as an Investment Manager with SEBI, the company has changed its name to MIRAE ASSET GLOBAL INVESTMENT MANAGEMENT (INDIA) PRIVATE LIMITED. The Company has received a fresh certificate consequent upon change of name on July 26, 2007 from the Registrar of Companies, Maharashtra, Mumbai. FUND OPERATIONS: The Assets under management is Rs. 1453.83 lakhs as at 31st March, 2008. The Company has been managing the assets of an open-ended debt and liquid schemes, viz; Mirae Asset Liquid Plus Fund and Mirae Asset Liquid Fund. The allotment for units of Mirae Asset India Opportunities Fund which opened for subscription on 11th February, 2008 was done on 4th April, 2008. The IPO of Mirae Asset Liquid Fund generated Rs. 793.47 crores and Mirae Asset Liquid Plus Fund generated Rs. 640.38 crores. Both the schemes managed by the Company, have performed reasonably well. FUTURE OUTLOOK: The Mutual Fund industry in India is one of the fastest growing industries in the financial service sector with about 34 AMCs currently operating in the country. The AMC intends to actively pursue growth opportunities in the fast growing mutual fund industry in the country. The last Quarter of 2007- 2008 witnessed a sharp drop in growth due to global meltdown and its impact on the Indian economy on capital markets. For the year 200809, a moderation in growth for the MF Industry in India is anticipated due to declining NFO mobilization, weakening investor sentiments and volatile market conditions. However, the fund is aiming to grow with innovative products and strong performance brands. The three differentiating factors for Mirae Asset in the Indian Mutual Fund business would be the following: (1) Strong Brand Positioning (2) Investment Performance (2) Investment Education and (3) Innovative Products. ISSUE OF CAPITAL: During the period under review, an amount of. Rs.16,71,88,540/- has been brought in by way of Equity Share Capital vide allotment on 27th July 2007 of 479,54,800 shares and on 26th February, 2008 of 119,233,740 equity shares. Your Company issued and allotted 16,71,88,540 equity shares of Rs.10 each to Mirae Asset Investment Management Company Limited.