DIRECTORS
To the Members,
Your Directors have pleasure in presenting the Nineth Annual Report along with the
Audited Accounts of the Company for the year ended June 30, 2014.
PRINCIPAL ACTIVITIES
The Company is the Investment Manager for various schemes of Quantum Mutual Fund (the
Fund) which received SEBI approval on December 2, 2005.
As on the date of this report, the Company is the Investment Manager for the following
eight Schemes of the Fund:
| Sr. No. |
Scheme Name |
Inception Date |
| 1. |
Quantum Long Term Equity Fund |
March 13,2006 |
| 2. |
Quantum Liquid Fund |
April 07,2006 |
| 3. |
Quantum Gold Fund |
February 22,2008 |
| 4. |
Quantum Index Fund |
July 10,2008 |
| 5. |
Quantum Tax Saving Fund |
December 23, 2008 |
| 6. |
Quantum Equity Fund of Funds |
July 20, 2009 |
| 7. |
Quantum Gold Savings Fund |
May 19, 2011 |
| 8. |
Quantum Multi Asset Fund |
July 11,2012 |
RENDERING OF RESEARCH SERVICES
In addition to the Investment Management Services, the Company provided Research
Services on Equities and Fixed Income during the year ended June 30, 2014 on commercial
basis to Quantum Advisors Private Limited and QIEF Management LLC, Mauritius in terms of
the approval received from Securities and Exchange Board of India. It has been confirmed
that the Research Services provided by the Company, are not in conflict with the
activities of the Fund.
FINANCIAL RESULTS
The Company earned a profit before tax of Rs. 49,875,595 /- (Rupees forty-nine million
eight hundred seventy-five thousand five hundred ninety-five) during the current year
ended June 2014 as compared to a profit of Rs. 65,925,694 /- (Rupees sixty-five million
nine hundred twenty-five thousand six hundred ninety-four only) in the previous year ended
June 2013.
Given below are the Highlights of the Financial Results for the year ended June 30,
2014
| Financial Results |
Current Year (July 1, 2013 to June 30, 2014) |
Previous year (July 1, 2012 to June 30, 2013) |
|
(Rs.) |
(Rs.) |
| Profit/(Loss) before Tax |
4,98,75,595 |
6,59,25,694 |
| Provision for Tax: |
|
|
| Current Tax Expense |
1,38,27,000 |
2,20,20,000 |
| MAT Credit |
- |
- |
| Deferred Tax Credit |
20,31,667 |
10,04,609 |
| Profit/(Loss) after Tax |
3,40,16,928 |
4,29,01,085 |
| Balance brought forward from previous year |
9,52,80,113 |
7,44,13,234 |
| Interim Equity Dividend (Rs. 1.50 per share) |
1,32,00,000 |
1,65,00,000 |
| Interim Equity Dividend Distribution Tax |
22,43,340 |
28,04,176 |
| Proposed Dividend on preference shares |
5,00,000 |
5,00,000 |
| Tax on Proposed Preference dividend |
99,971 |
84,976 |
| Transfer to General reserve |
17,00,846 |
21,45,054 |
| Balance carried to Balance Sheet |
11,15,52,883 |
9,52,80,113 |
DEPOSITS
During the period under review, your Company has not accepted any deposits within the
meaning of Section 2 (31) of the Companies Act, 2013, and the rules there under.
DIVIDEND
a) The Board of Directors of the Company had declared an Interim Dividend of Rs.1.20/-
per share on equity shares of the face value of Rs.10/- each for the financial year
2013-14. Total outgo on the Interim Dividend was Rs.1,32,00,000/-(excluding Dividend Tax
ofRs. 22,43,340/-). The above outgo constitutes a payout ratio of 39% of annual profits of
the Company. The Board therefore has not proposed any final dividend and accordingly, the
Interim Dividend paid during the year shall be considered as Final Dividend for the
financial year 2013-14.
b) The Board of Directors recommended a dividend at the fixed rate of 1% per annum on
the 5,00,000 cumulative redeemable preference shares of Rs.100 each of the Company, for
the financial year ended June 30, 2014 aggregating to W 5,00,000/-(Five lakh only) subject
to the approval of the members at the ensuing Annual General Meeting details as follows:
|
(Amount in Rs.) |
| Proposed Dividend on Preference Shares |
5,00,000 |
| Proposed Tax on Dividend on Preference Shares |
99,971 |
| Total |
5,99,971 |
The Dividend, if approved, will be paid to those members whose names appear in the
Register of Members.
c) The total cash outgo on account of interim dividend on equity shares and proposed
dividend on preference shares including dividend tax for the financial year 2013-2014
would aggregate to Rs. 1,60,43,311.
REVIEW OF OPERATIONS OF THE SCHEMES OF THE FUND Assets Under Management & No. of
Investors:
| Name of the Scheme |
AUM as on June 30, 2014 (Rs. In Cr.) |
AUM as on June 30, 2013 (Rs. In Cr.) |
No of Folios as on June 30, 2014 |
No of Folios as on June 30, 2013 |
| Quantum Long Term Equity Fund |
312.44 |
180.62 |
18,583 |
15,039 |
| Quantum Liquid Fund |
66.15 |
44.28 |
2,272 |
1,713 |
| Quantum Gold Fund (ETF) |
59.66 |
55.80 |
14,158 |
14,779 |
| Quantum Index Fund (ETF) |
4.86 |
2.25 |
364 |
386 |
| Quantum Tax Saving Fund |
22.91 |
12.31 |
4,006 |
3,243 |
| Quantum Equity Fund of Funds |
3.79 |
2.97 |
461 |
456 |
| Quantum Gold Savings Fund |
9.62 |
7.53 |
2,242 |
2,218 |
| Quantum Multi Asset Fund |
11.15 |
2.64 |
515 |
558 |
| Total |
490.85 |
308.40 |
42,601 |
25,230 |
PERFORMANCE OF THE SCHEMES OF THE FUND
(a) Quantum Long Term Equity Fund - An Open-ended Equity Scheme
The resources of the Quantum Long Term Equity Fund have been invested in line with the
investment objective of the Scheme.
Performance of the Quantum Long Term Equity Fund v/s Benchmark - S&P BSE 30 TRI v/s
Additional Benchmark - S&P BSE Sensex as on June 30, 2014
|
June 28, 2013 to June 30, 2014 |
June 29, 2012 to June 28, 2013 |
June 30, 2011 to June 29,2012 |
Since Inception* |
|
Absolute Returns(%) |
Absolute Returns (%) |
Absolute Returns(%) |
CAGR Returns (%) |
Current value of standard investment of Rs. 10,000/- (INR) |
| Quantum Long |
|
|
|
|
|
| Term Equity Fund - (Growth Option) |
44.50 |
9.76 |
0.05 |
16.32 |
35,100 |
| Scheme |
|
|
|
|
|
| Benchmark - (S&P BSE 30 TRI) |
32.87 |
13.15 |
-6.01 |
12.47 |
26,546 |
| Additional |
|
|
|
|
|
| Benchmark - (S&P BSE Sensex) |
31.03 |
11.28 |
-7.51 |
10.85 |
23,523 |
Past performance may or may not be sustained in the future.
*Date of Inception - March 13, 2006.
(b) Quantum Liquid Fund - An Open-ended Liquid Scheme
The resources of the Quantum Liquid Fund have been invested in line with the investment
objective of the Scheme.
Performance of the Quantum Liquid Fund v/s Benchmark - CRISIL Liquid Fund Index v/s
Additional Benchmark - Crisil 1 year T-bill Index as on June 30, 2014
|
Quantum Liquid Fund - (Growth Option) (%) |
Scheme Benchmark -(Crisil Liquid Fund Index) (%) |
Additional Benchmark - (Crisil 1 year T-Bill index) (%) |
| 7 days" |
8.51 |
8.64 |
7.63 |
| 15 days" |
8.29 |
9.61 |
7.22 |
| 30 days # |
8.21 |
8.44 |
7.46 |
| June 28, 2013 to June 30, 2014## |
9.18 |
9.68 |
5.93 |
| June 29, 2012 to June 28, 2013## |
8.44 |
8.12 |
8.17 |
| June 30, 2011 to June 29, 2012## |
9.32 |
8.68 |
7.73 |
| Since Inception* |
|
|
|
| CAGR Returns |
7.73 |
7.35 |
5.84 |
| Current value of standard investment of Rs. 10,000/-(INR) |
18,466 |
17,943 |
15,960 |
Past performance may or may not be sustained in the future.
*Date of Inception - April 07, 2006
# Simple Annualized yield, ## Absolute Returns.
(c) Quantum Gold Fund - An Open-ended Exchange Traded Fund
The resources of the Quantum Gold Fund have been invested in line with the investment
objective of the Scheme.
Performance of the Quantum Gold Fund v/s Benchmark - Domestic Price of Physical Gold
as on June 30, 2014
|
June 28, 2013 to June 30, 2014 |
June 29, 2012 to June 28, 2013 |
June 30, 2011 to June 29, 2012 |
Since Inception* |
|
Absolute Returns(%) |
Absolute Returns (%) |
Absolute Returns (%) |
CAGR Returns (%) |
Current value of standard investment of Rs. 10,000/-(INR) |
| Quantum Gold Fund - (Growth Option) |
9.73 |
-15.62 |
33.24 |
13.24 |
22,051 |
| Scheme Benchmark -(Domestic price of Physical Gold) |
10.80 |
-14.78 |
34.57 |
13.83 |
22,788 |
Past performance may or may not be sustained in the future.
*Date of Inception - February 22, 2008.
(d) Quantum Index Fund - An Open-ended Exchange Traded Fund
The resources of the Quantum Index Fund have been invested in line with the investment
objective of the Scheme.
Performance of the Quantum Index Fund v/s Benchmark -CNX Nifty -Total Return Index v/s
Additional Benchmark - S&P BSE Sensex as on June 30, 2014
|
June 28, 2013 to June 30, 2014 |
June 29, 2012 to June 28, 2013 |
June 30, 2011 to June 29, 2012 |
Since Inception* |
|
Absolute |
Absolute |
Absolute |
CAGR |
Current |
|
Returns (%) |
Returns(%) |
Returns(%) |
Returns (%) |
value of standard investment of Rs. 10,000/-(INR) |
| Quantum Index |
|
|
|
|
|
| Fund - (Growth Option) |
31.39 |
11.79 |
-5.42 |
12.10 |
19,799 |
| Scheme |
|
|
|
|
|
| Benchmark - (CNX Nifty-Total Return Index) |
31.77 |
12.00 |
-5.34 |
11.93 |
19,613 |
| Additional |
|
|
|
|
|
| Benchmark - (S&P BSE Sensex) |
31.03 |
11.28 |
-7.51 |
10.59 |
18,249 |
Past performance may or may not be sustained in the future.
*Date of Inception - July 10, 2008.
(e) Quantum Tax Saving Fund - An Open-ended Equity Linked Savings Scheme
The resources of the Quantum Tax Saving Fund have been invested in line with the
investment objective of the Scheme.
Performance of the Quantum Tax Saving Fund v/s Benchmark - S&P BSE 30 TRI v/s
Additional Benchmark- S&P BSE Sensex as on June 30, 2014
|
June 28, 2013 to June 30, 2014 |
June 29, 2012 to June 28, 2013 |
June 30, 2011 to June 29, 2012 |
Since Inception* |
|
Absolute Returns (%) |
Absolute Returns(%) |
Absolute Returns (%) |
CAGR Returns (%) |
Current value of standard investment of Rs. 10,000/- (INR) |
| Quantum Tax |
|
|
|
|
|
| Saving Fund - (Growth Option) |
44.34 |
9.64 |
0.19 |
25.25 |
34,680 |
| Scheme |
|
|
|
|
|
| Benchmark - (S&P BSE 30 TRI) |
32.87 |
13.15 |
-6.01 |
20.86 |
28,477 |
| Additional |
|
|
|
|
|
| Benchmark - (S&P BSE Sensex) |
31.03 |
11.28 |
-7.51 |
19.08 |
26,236 |
Past performance may or may not be sustained in the future.
*Date of Inception - December 23, 2008.
(f) Quantum Equity Fund of Funds - An Open-ended Equity Fund of Funds Scheme
The resources of the Quantum Equity Fund of Funds have been invested in line with the
investment objective of the Scheme.
Performance of the Quantum Equity Fund of Funds v/s Benchmark - S&P BSE 200 Index
v/s Additional Benchmark - S&P BSE Sensex as on June 30, 2014
|
June 28, 2013 to June 30, 2014 |
June 29, 2012 to June 28, 2013 |
June 30, 2011 to June 29, 2012 |
Since Inception* |
|
Absolute Returns(%) |
Absolute Returns (%) |
Absolute Returns(%) |
CAGR Returns (%) |
Current value of standard investment of Rs. 10,000/- (INR) |
| Quantum Equity Fund of Funds - (Growth Option) |
49.63 |
6.85 |
-6.23 |
16.32 |
21,138 |
| Scheme |
|
|
|
|
|
| Benchmark - (S&P BSE 200 Index) |
34.45 |
8.69 |
-7.63 |
11.18 |
16,902 |
| Additional |
|
|
|
|
|
| Benchmark - (S&P BSE Sensex) |
31.03 |
11.28 |
-7.51 |
10.95 |
16,729 |
Past performance may or may not be sustained in the future.
*Date of Inception - July 20, 2009.
(g) Quantum Gold Savings Fund - An Open ended Fund of Fund Scheme
The resources of the Quantum Gold Savings Fund have been invested in line with the
investment objective.
Performance of the Quantum Gold Savings Fund v/s Benchmark - Domestic Price of Gold as
on June 30, 2014
|
June 28, 2013 to June 30, 2014 |
June 29, 2012 to June 28, 2013 |
June 30, 2011 to June 29, 2012 |
Since Inception* |
|
Absolute Returns (%) |
Absolute Returns (%) |
Absolute Returns (%) |
CAGR Retur ns (%) |
Current value of standard investment of Rs. 10,000/-(INR) |
| Quantum Gold Savings Fund -(Growth Option) |
10.29 |
-15.29 |
31.67 |
6.95 |
12,333 |
| Scheme Benchmark -(Domestic price of Gold) |
10.80 |
-14.78 |
34.57 |
8.21 |
12,793 |
Past performance may or may not be sustained in the future.
*Date of Inception - May 19, 2011.
(h) Quantum Multi Asset Fund - An Open ended Fund of Fund Scheme
The resources of the Quantum Multi Asset Fund have been invested in line with the
investment objective.
Performance of the Quantum Multi Asset Fund v/s Benchmark - CRISIL Composite Bond Fund
Index (40%) + S&P BSE Sensex Total Return Index (40%) + Domestic price of Gold (20%)
as on June 30, 2014
|
June 28, 2013 to June 30, 2014 |
Since Inception* |
|
Absolute Returns (%) |
CAGR Returns(%) |
Current value of standard investment of Rs. 10,000/-(INR) |
| Quantum Multi Asset Fund (Growth Option) |
20.58 |
12.94 |
12,713 |
| Scheme Benchmark - [CRISIL Composite Bond Fund Index (40%) + S&P BSE Sensex Total
Return Index (40%) + Domestic price of Gold (20%)] |
17.15 |
11.66 |
11,166 |
Past performance may or may not be sustained in the future.
*Date of Inception - July 11, 2012.
DIRECT MARKETING
Quantum Mutual Fund continues with its unique style of marketing its products. Quantum
Mutual Fund has always believed in the philosophy of wanting investors to buy Quantum
Schemes rather than have the Schemes sold to them. All marketing efforts have been focused
towards educating investors about the importance of saving and investing in the right
mutual fund Scheme at the right time.
In the financial year 2013-2014, Quantum Mutual Fund continued to increase its focus on
Investor Information by propagating the "Quantum Equity Direct" (or QED), a free
E-Guide to investors which busts myths about the mutual fund industry and highlights the
Quantum philosophy of investing.
The fund house will continue to increase the reader base for its newsletters like the
QED and the Golden Truth (Quantum Gold Fund Managers commentary on gold) through the
internet and also support the same through offline activations.
The presence on social media has been scaled up and Quantum continues to encourage
socially beneficial projects like NSPA (Street music),HelpYourNGO (donations), Operation
Black Dot (voting) and NCPA (teaching music to children in underprivileged schools). The
Fund has also started the practice of sending mailers to investors on regular basis to
update them with any regulatory changes / introduction of new facility / changes in any
process & procedures etc.
Quantum Mutual Fund also continued with the "Path to Profit" meets, taking
the Quantum message to cities like Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Pune and
Mumbai. In order to increase Investor awareness Quantum Mutual Fund had tied up with
institutions like the prestigious BSE Investor Protection Fund (BSE IPF) and the National
Securities Depository Limited (NSDL) in the past to educate people on how simple investing
really is and will continue exploring such tie-ups in the coming year too. Going forward,
efforts will be continued in spreading this message through such investor education
initiatives.
SHARE CAPITAL
The Authorised Share Capital of the Company is Rs.22,00,00,000. There is no change in
the Authorised Capital during the year under review.
The Present Paid-up Capital of the Company is as follows:
110,000,00 Equity Shares of Rs. 10/- each aggregating to f 110,000,000 /-
5,00,000 - 1% Cumulative Redeemable Preference Shares of Rs. 100/- each aggregating to
Rs.5,00,00,000/-
DIRECTORS
The Company is in compliance with Regulation 21(d) of SEBI (Mutual Funds) Regulations,
1996 which states that the Independent Directors of the AMC should be at least 50% of the
total Board strength.
During the year under review, there were 6 (Six) meetings of the Board of Directors.
Details of Directors attendance at these meetings are given below:
| Directors |
Status (whether Associate or Independent) |
Number of Board Meetings Attended |
| Mr. Ajit Dayal |
Associate |
4 |
| Mr. 1. V. Subramaniam |
Associate |
6 |
| Mr. C. Srinivasan |
Independent |
6 |
| Mr. S. R. Balasubramanian |
Independent |
6 |
| Mr. Kamal Pande |
Independent |
2 |
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND
OUTGO
As your Company is a service-providing establishment, statement containing the
information as per the provisions of Part A & B of Section 217(l)(e) of the Companies
Act, 1956, read along with the Companys (Disclosure Of Particulars in the Report of
Directors) Rules, 1988 is not applicable to the Company.
The details of foreign exchange outgo for the period under review as follows:
Foreign Exchange Outgo:
| Current Year |
Previous Year |
| (Rs.) |
(Rs.) |
| 317,627 |
438,849 |
The details of Foreign Exchange Earnings for the period under review as follows:
Foreign Exchange Earned:
| Current Year |
Previous Year |
| (Rs.) |
(Rs.) |
| 122,319,387 |
127,382,163 |
CORPORATE SOCIAL RESPONSIBILITY
The Company has formed a Corporate Social Responsibility (CSR) Committee comprising of
Independent Directors of the Board and adopted CSR Policy in accordance with the Section
135 of the Companies Act, 2013.
PARTICULARS OF EMPLOYEES
Disclosures in accordance with the provisions of Section 217 (2A) of the Companies Act,
1956 read with the amended Companies (Particulars of Employees) Rules, 1975, are attached
herewith as Annexure "I" and forms part of the Directors Report.
AUDITORS
The present Statutory Auditors, M/s.Deloitte Haskins & Sells, Chartered
Accountants, Baroda, vacate office at the conclusion of the ensuing Annual General Meeting
of the Company, and being eligible, have offered themselves for reappointment to hold the
office from the conclusion of this 9th AGM (2014-15) till the conclusion of the 14th AGM
(2018-19) subject to ratification of their appointment at every AGM in pursuance to the
section 139 & 141 of the Companies Act, 2013.Members are requested to re-appoint
M/s.Deloitte Haskins & Sells as Auditors and to fix their remuneration.
DIRECTORS RESPONSIBILITY STATEMENT
Directors Responsibility Statement in terms of Section 217 (2AA) of the Companies Act,
1956:
Your Directors confirm that to the best of their knowledge and ability:
(i) in the preparation of the annual accounts, the applicable accounting standards have
been followed;
(ii) the Directors have selected such accounting policies and applied them consistently
and made judgments and estimates that are reasonable and prudent, so as to give a true and
fair view of the state of affairs of the Company at the end of the financial year and of
the profit or loss of the Company for that period.
(iii) the Directors have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the Companies Act, 1956
for safeguarding the assets of the Company and for preventing and detecting fraud and
other irregularities.
(iv) the Directors have prepared the annual accounts on a going concern basis.
ACKNOWLEDGEMENT
The Company is committed to meet the Net Worth requirements of Rs. 50 Crores within the
timeline as prescribed in the SEBI Regulations without compromising the interest of
investors and continuing to innovate and follow the principles of remaining low cost and
offering complete transparency to the investors.
Your Directors wish to thanks investors and acknowledge the valuable assistance,
support and guidance provided by Securities and Exchange Board of India and Association of
Mutual Funds in India. Your Directors also appreciate the services and support provided by
all concerned including Registrar & Transfer Agents, Custodians and Banks.
The Directors express their gratitude to Quantum Advisors Private Limited & Quantum
Trustee Company Private Limited for their support.
The Directors further express their appreciation to all its employees for their
dedication and commitment.
|
On behalf of the Board of Directors |
|
for Quantum Asset Management Company Private Limited |
|
Ajit Dayal |
|
DIN :00252993 |
|
Chairman |
| Place: Mumbai |
|
| Date: September 15, 2014 |
|
+91-9892691696
