Abridged Annual Report For 2009 - 2010
FRANKLIN TEMPLETON MUTUAL FUND - Franklin Asian Equity Fund
Head Office : Level - 4, Wockhardt Towers, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051
Trustee Report to Investors
Dear Franklin Asian Equity Fund Investor,
The Directors of the Trustee Company have the pleasure of presenting
before you the Fourteenth Annual Report of Franklin Templeton Mutual
Fund (“Mutual Fund/FTMF”) for the year 2009-10. Along with the general
information on the background/highlights of the Mutual Fund, investor
services, significant regulatory changes, etc. the Trustees have specifically
provided information on the scheme.
Brief background of Trust, Sponsor, Trustee Company and Asset
Management Company:
Franklin Templeton Mutual Fund
FTMF has been constituted as a Trust on January 4, 1996 in accordance with
the provisions of the Indian Trusts Act, 1882 and the Deed of Trust is duly
registered under the Indian Registration Act, 1908. FTMF has been sponsored
by Templeton International Inc. (liability restricted to the seed corpus of Rs.l
lakh) with Franklin Templeton Trustee Services Pvt. Ltd. (“Trustee”) as the
Trustee. The Trustee has entered into an Investment Management Agreement
dated January 5, 1996 with Franklin Templeton Asset Management (India)
Pvt. Ltd. (“AMC”) appointing the AMC as the Investment Manager for all the
schemes of FTMF. FTMF is registered with SEBI on February 19, 1996 vide
Registration No. MF/026/96/8.
Templeton International Inc.
Templeton International Inc. is a part of the Franklin Templeton Group,
which is one of the largest Investment Management Company with US$602.50
billion (approximately Rs.26,77,510 crore) in assets under management as
on April 30, 2010 and more than 22 million Shareholder Accounts. Franklin
Templeton has offices in over 30 countries including the United States of
America, Bahamas, Canada, Argentina, France, Germany, Italy, Luxembourg,
Poland, Russia, the United Kingdom, Hong Kong, Singapore, Korea, India,
China, Australia and South Africa.
Franklin Templeton Trustee Services Pvt. Ltd.
Franklin Templeton Trustee Services Pvt. Ltd., a company incorporated
under the Companies Act, 1956 and having its Registered Office at Level
4, Wockhardt Towers, Bandra Kurla Complex, Bandra (East), Mumbai 400
051, is the Trustee to FTMF. The Trustee ensures that FTMF and the schemes
floated there under are managed by the AMC in accordance with the Trust
Deed, the regulations, directions and guidelines issued by SEBI, the stock
exchanges and other regulatory agencies.
Board of Directors of the Trustee Company:
• Mr. Gregory E. McGowan*, Executive Vice President, Director and
General Counsel for International Development, Templeton Worldwide
Inc.
• Mr. Stephen Dover*, International Chief Investment Officer, Franklin
Templeton Investments
• Mr. Anand J. Vashi, Chartered Accountant
• Mr. Percy J. Pardiwalla, Advocate
• Dr. Indu Shahani, Principal - H.R. College of Commerce & Economics
* These Directors represent Sponsors of the Trustee Company and are
associates of the Sponsor.
07_12083_FRANKLIN ASIAN EQUITY F1 1
Franklin Templeton Asset Management (India) Pvt. Ltd.
Franklin Templeton Asset Management (India) Pvt. Ltd., a company
incorporated under the Companies Act, 1956 and having its Registered
Office at Level 4, Wockhardt Towers, Bandra Kurla Complex, Bandra
(East), Mumbai 400 051 is the Investment Manager of FTMF. The entire
paid up capital of the Investment Manager is held by Franklin Templeton
Holding Ltd., Mauritius and its nominees. Franklin Templeton Holding
Ltd. is a wholly owned subsidiary of Templeton Asset Management Ltd.,
Singapore, which is a wholly owned subsidiary of Templeton International
Inc., a wholly owned subsidiary of Templeton Worldwide Inc., which in turn
is a wholly owned subsidiary of Franklin Resources Inc. The Investment
Manager was approved by SEBI to act as the AMC of FTMF vide their letter
No.IIMARP/406/96 dated February 19, 1996.
Board of Directors of the AMC:
• Mr. Vijay C. Advani*, Executive Vice President, Global Advisory
Services, Franklin Resources Inc.
• Dr. J. Mark Mobius*, Executive Chairman, Templeton Asset Management
Ltd.
• Mr. Jed Plafker*, Executive Managing Director, Franklin Templeton
International Advisor Services (Alternate Director to Dr. J. Mark
Mobius)
• Mr. Vivek Kudva*, Managing Director, India and CEEMEA (Central and
Eastern Europe, Middle East and Africa)
• Mr. Deepak M. Satwalekar, former Managing Director and CEO, HDFC
Standard Life Insurance Co. Ltd.
• Mr. Navroz Seervai, Advocate
• Mr. M.B.N. Rao, former Chairman and Managing Director, Canara
Bank
* These Directors represent Sponsors of the AMC and are associates of the
Sponsor.
Review of activities of Franklin Templeton Mutual Fund:
During the year under review, the Mutual Fund continued to be one of the
leading private sector mutual funds in India*. The Mutual Fund continued
to focus on launching meaningful products with investment objectives that
are relevant to investors. The Mutual Fund launched Franklin Build India
Fund in July 2009, which collected over Rs.200 crore. In December 2009, the
Mutual Fund launched Templeton India Income Opportunities Fund, which
collected over Rs.300 crore. Further, the Mutual Fund launched few closed
end income funds (Fixed Maturity Plans – FMPs) mobilising over Rs.1,100
crore. During the year under review, Templeton Monthly Income Plan – Half
Yearly Dividend Plan and Growth Plan merged into FT India Monthly
Income Plan effective March 19, 2010. Franklin India International Fund was
wound on April 30, 2010.
The average Assets Under Management (AUM) of the Mutual Fund for the
month March 2010 was Rs.33,290 crore as compared to Rs.19,205 crore for the
month March 2009 up by more than 72%.
*Source: AMFI website
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 Scheme performance, future outlook and operations of the scheme:
Launched in January 2008, Franklin Asian Equity Fund (FAEF) focuses on
investing in companies domiciled in the Asia ex Japan region. The fund
seeks to take advantage of the growth being witnessed in the Asia ex Japan
region. Since inception, the fund has delivered returns of 0.22% as against
benchmark returns of -0.70%. The returns need to be seen in the context of
the sharp volatility witnessed in regional markets following the outbreak of
global financial and economic crisis.
The region has however demonstrated resilience amidst the recent global
downturn and economic growth bounced back sharply on the back of stimulus
efforts and improvement in global trade conditions. High global liquidity
levels and better growth prospects for regional economies resulted in increased
capital inflows and helped markets outperform their developed counterparts.
During the last fiscal, the fund delivered returns of 42.35% vis-à-vis 49.37%
gain in benchmark (MSCI Asia ex Japan). The relative underperformance was
primarily on account of relative overweight to Greater China markets which
witnessed increased volatility on concerns of policy tightening during the
last quarter. As of March 2010, the fund had majority exposure to banks &
finance, hardware and consumer non-durables aggregating to about 48.6% of
assets. Given the current macro-economic environment, we have positioned
ourselves in sectors/ companies that seem well-positioned to benefit from
the structural growth drivers in regional economies – mainly rising consumer
spending and infrastructure development.
Looking ahead, the long term fundamentals continue to be strong for Asia
and the region is expected to witness expansion in the times to come due
to positive demographics, high saving rates and intra-regional trade. The
risks that could manifest over the short term are - rise in global risk aversion
leading to portfolio outflows and uneven growth in developed economies.
Investor Services:
As on March 31, 2010, the Mutual Fund served more than 23 lakh active
investors through its 34 branches spread across India, 82 offices of Computer
Age Management Services Private Limited (CAMS) and Karvy Computershare
Private Limited.
To further increase the network and enhance the service levels to investors,
Franklin Templeton Mutual Fund also provides a facility to subscribe and
redeem units for six of its funds through the stock exchange infrastructures.
Effective March 12, 2010, we have established relationship with both National
Stock Exchange of India Ltd. (“NSE”) and Bombay Stock Exchange Ltd.
(“BSE”) to offer this service to our investors. Further, the investors have
unrestricted access to FTMF for any matter.
With our continuous focus on investor satisfaction, various technology based
facilities have been introduced:
• Online account access registration
• Enabling investors to transact online and access various self servicing
features
• Increased mail back options for distributors to enable better servicing to
their investors
Redemption and dividend payments are also increasingly being processed
electronically to ensure faster credit in investor’s bank accounts. We have a
robust business continuity plan for the Transfer Agency and operate from
Chennai and Hyderabad with adequate infrastructure to support expansion
and growth. Further, in the interest of all stakeholders, various initiatives
were taken to reduce cost through effective utilisation of infrastructure and
resources.
Significant regulatory changes:
During the year under review, the regulatory environment witnessed
many changes aimed at broadening the capital markets and improving
transparency.
Securities and Exchange Board of India (“SEBI”) continued to demonstrate
its commitment in upholding its reputation for a professional approach by
enhancing regulations governing the capital markets aimed at furthering the
interest of investors, including the mutual fund industry.
07_12083_FRANKLIN ASIAN EQUITY F2 2
SEBI has barred mutual funds from charging entry load on any investment
effective August 1, 2009. Upfront commission to distributors can be paid by
investors directly to distributors, based on their assessment of various factors
including the service rendered by distributors. The distributors are required
to disclose to investors all material information including all commissions
received for different competing schemes of various mutual funds from
amongst which a scheme is being recommended to investors. Further, mutual
funds cannot make distinction among unit holders based on the amount of
subscription while charging exit loads.
SEBI has vide circular dated March 15, 2010 announced certain important
changes such as disclosure of brokerage and commission paid to associates
in half-yearly financials, scheme wise abridged annual reports and statement
of additional information, extension of Applications Supported by Blocked
Amount (“ASBA”) facility to mutual fund investors, reduction in the duration
of NFOs and time taken for allotment of units, dispatch of account statements
and refund of money, role of mutual funds in corporate governance of listed
companies, etc. With an objective to enable investors to take more informed
decisions on their investments, SEBI has mandated additional disclosures in
the Key Information Memorandum – Comparison with the existing schemes,
number of folios and AUM, risk mitigating factors and investment strategy.
For the benefit of investors, SEBI has mandated disclosure of details of
investor complaints received in respect of mutual funds on their websites
and in the Trustee Report forming part of annual report. In accordance with
the same, Investor Complaints Report for FY2009-10 is given in Annexure to
this Report.
Investors are requested to note:
As you may be aware, completion of KYC procedures and PAN have been
made mandatory for investments in mutual funds. CDSL Ventures Limited
(“CVL”) has been appointed by all mutual funds, including FTMF, to
complete KYC and PAN verification formalities together on their behalf and
hence investors need to submit their details only once for completion of these
formalities across all mutual funds. Investors are advised to complete KYC/
PAN formalities with CVL at the earliest.
Responsibility of the Trustees:
The Trustees are the exclusive owner of the Trust Fund and holds the
same in trust for the benefit of the unitholders. The Trustees have been
discharging their duties and carrying out the responsibilities as provided
in the Regulations and the Trust Deed. The Trustees seek to ensure that the
Mutual Fund and the schemes floated there under are managed by the AMC
in accordance with the Trust Deed, the Regulations, directions and guidelines
issued by the SEBI, the stock exchanges, the Association of Mutual Funds in
India, other regulatory agencies and the Scheme Information Documents of
the respective schemes.
The Balance Sheet as on March 31, 2010, the Revenue Account for the period
ended March 31, 2010 and the Auditors’ Report thereon are annexed to
this Abridged Annual Report. As mentioned in the Auditors’ Report the
accounting policies are in accordance with SEBI (Mutual Funds) Regulations,
1996.
In view of the fact that the amounts collected under the various schemes are
deployed in securities markets, the price and redemption value of the units,
and income from them, can go up as well as down with the fluctuations in the
market value of its underlying investments.
Full Annual Report is available on the website of the Mutual Fund www.
franklintempletonindia.com and shall be made available for inspection at
its Head Office. Present and prospective investors can request for copies of
the Statement of Additional Information / Scheme Information Documents
of schemes; and copies of the Trust Deed, detailed annual accounts of the
schemes and of the AMC upon payment of the prescribed fee.
Investment objectives of the scheme:
FAEF is an open end diversified equity fund that seeks to provide
medium to long term appreciation through investments primarily in Asian
Companies / sectors (excluding Japan) with long term potential across
market capitalisation.
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 Unclaimed dividends and redemptions of more than 90 days as on March The Trustees thank the Government of India, the Securities and Exchange
31, 2010: Board of India, the Reserve Bank of India and the Association of Mutual
Funds in India for their ongoing support, co-operation and guidance
Unclaimed Dividends Unclaimed Redemptions during the year under review. The Trustees take this opportunity to thank
No. of its family of investors for their confidence and wholehearted faith reposed
Amount (Rs.) Amount (Rs.) No. of Investors in the Mutual Fund. In addition, the Trustees would also like to thank the
Investors
Auditors, Custodian, Bankers, Registrar, and all other service providers for
- - 2,532.00 34
their valuable support.
Statutory Information:
We look forward to your continued support and assure you of our commitment
The Sponsor, Templeton International Inc. is not responsible or liable for any to quality products and services from the Mutual Fund.
loss resulting from the operation of the schemes of the Mutual Fund beyond Yours sincerely,
its initial contribution of Rs.1 lac for setting up the Mutual Fund, and such for Franklin Templeton Trustee Services Private Limited
other accretions/additions to the same. (Trustee of Franklin Templeton Mutual Fund)
Acknowledgments: Sd/-
Gregory McGowan
The Trustees express their satisfaction with the overall functioning of the Chairman
business and particularly with respect to risk management, corporate Date: July 7, 2010
governance and compliance. The Trustees wish to place on record their
appreciation for the dedication and sincerity of the employees of the AMC.

Annexure to the Trustee Report

FRANKLIN TEMPLETON MUTUAL FUND
INVESTOR COMPLAINTS REPORT FOR THE FINANCIAL YEAR 2009-10
Total number of folios 23,33,614

Action on (a) and (b)

(a) No. of
complaints (b) No. of Resolved Pending
Com- com-
pending at Non
plaint Type of complaint # plaints Be-
the Within 60- Action-
Code received 30-60 yond 0-3 3-6 6 -9 9 - 12
beginning 30 180 able*
of the year during the days 180 mths mths mths mths
days days
year days
IA Non receipt of Dividend on units 173 5213 4497 361 110 2 2 404 8 2 0
IB Interest on delayed payment of
6 54 42 9 4 0 0 2 2 1 0
Dividend
IC Non receipt of Redemption
32 6147 5488 286 57 7 6 326 3 4 2
proceeds
ID Interest on delayed payment of
5 147 113 16 10 2 0 9 1 1 0
Redemption
II A Non receipt of Statement of
1 2350 2337 9 0 0 0 5 0 0 0
Account/Unit Certificate
II B Discrepancy in Statement of
0 21 19 0 0 0 0 0 2 0 0
Account
II C Non receipt of Annual Report/
0 0 0 0 0 0 0 0 0 0 0
Abridged Summary
III A Wrong switch between Schemes 1 231 200 14 1 0 0 16 0 1 0
III B Unauthorized switch between
2 62 53 3 6 0 0 2 0 0 0
Schemes
III C Deviation from Scheme attributes 0 0 0 0 0 0 0 0 0 0 0
III D Wrong or excess charges/load 2 120 95 13 5 0 0 7 2 0 0
III E Non updation of changes
viz. address, PAN, bank details, 2 174 136 15 7 0 0 18 0 0 0
nomination, etc
IV Others 140 14407 13337 560 152 17 8 445 10 12 6
TOTAL 364 28926 26317 1286 352 28 16 1234 28 21 8
# including against its authorized persons/ distributors/ employees. etc.
*Non actionable means the complaint that are incomplete / outside the scope of the mutual fund
Notes:
1) The time shown above is the average time for resolution of complaints from receipt of initial complaint till eventual closure. Delays could be caused by a
variety of factors including the need to receive information from clients, due process followed by banks in cases where payment instruments have been
lost and delays due to verification of certain facts received from clients. The majority of cases have been resolved within the 30 day time frame.
2) This Report has been approved by the Board of Franklin Templeton Trustee Services Private Limited at its Meeting held on June 19, 2010.

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 Report of the Auditors Abridged Balance Sheet as at March 31, 2010

To the Board of Directors of Trustees of Rupees in Lakhs

FRANKLIN TEMPLETON MUTUAL FUND – FRANKLIN ASIAN EQUITY As at As at

FUND: March 31, March 31,
2010 2009
We have examined the abridged balance sheet of FRANKLIN TEMPLETON
MUTUAL FUND – FRANKLIN ASIAN EQUITY FUND (the ‘Scheme’) as at LIABILITIES
March 31, 2010 and the abridged revenue account for the year ended March 31,
2010, together with the notes thereon, annexed thereto. The abridged financial
1 Unit Capital 37,060.22 48,946.39
statements have been prepared by Franklin Templeton Asset Management
(India) Private Limited, the Schemes’ asset manager (the ‘AMC’) pursuant to
Regulation 56 (1) of Securities and Exchange Board of India (Mutual Funds) 2 Reserves and Surplus
Regulations, 1996 (‘the SEBI Regulations’), as per the format prescribed by
SEBI circular number SEBI/IMD/CIR No.8/132968/2008 dated July 24, 2008 2.1 Unit Premium Reserve 1,936.81 643.54
and are based on the accounts of the Scheme for the year ended, prepared in
accordance with the accounting policies and standards specified in the Ninth 2.2 Unrealised Appreciation Reserve 4,018.84 2,417.76
Schedule to the SEBI Regulations and covered by our report of even date to
the Board of Directors of Trustees of Franklin Templeton Mutual Fund which 2.3 Retained Surplus (5,772.27) (17,452.19)
report is attached. The abridged financial statements are the responsibility
of the AMC. Our responsibility is to express an opinion on these abridged
3 Current Liabilities and Provisions
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally 3.1 Current Liabilities 404.57 926.96
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the abridged financial TOTAL 37,648.17 35,482.46
statements are free of material misstatements. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
ASSETS
abridged financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall abridged financial statements presentation. We believe 1 Investments
that our audit provides a reasonable basis for our opinion.
1.1. Listed Securities
We report that:
i. We have obtained all the information and explanations, which to the 1.1.1 Equity Shares 5,404.73 6,358.52
best of our knowledge and belief were necessary for the purposes of our
audit. 1.2 Foreign Securities 31,513.84 26,923.46
ii. The abridged balance sheet and abridged revenue account, dealt with by
this report are in agreement with the books of account. 2 Other Current Assets

iii. In our opinion, the abridged balance sheet and the abridged revenue 2.1 Cash and Bank Balances 1.29 4.03
account dealt with by this report have been prepared as per the format
prescribed by SEBI circular number SEBI/IMD/CIR No. 8/132968/2008 2.2 CBLO/ Reverse Repo Lending 605.96 1,159.77
dated July 24, 2008 and are based on the accounts of the Scheme for the
year ended, prepared in accordance with the accounting policies and
standards specified in the Ninth Schedule to the SEBI Regulations; 2.3 Others 122.35 1,036.68

iv. In our opinion, and on the basis of information and explanations given TOTAL 37,648.17 35,482.46
to us, the methods used to value non traded securities, where applicable,
as at March 31, 2010, are in accordance with the SEBI Regulations and Notes to Accounts - Annexure I
other guidelines issued by the Securities and Exchange Board of India, as
applicable and approved by the Board of Directors of Franklin Templeton
Trustee Services Private Limited, and are fair and reasonable.
v. In our opinion, and to the best of our information and according to the
explanations given to us, the said abridged financial statements give the
information required by the SEBI Regulations as applicable and give a
true and fair view in conformity with the accounting principles generally
accepted in India:
a) in the case of the abridged balance sheet, of the state of affairs of the
Scheme as at March 31, 2010; and
b) in the case of the abridged revenue account, of the surplus for the
year ended on that date.
For S.R. Batliboi & Co.
Firm Registration Number - 301003E
Chartered Accountants
per Shrawan Jalan
Partner
Membership No.: 102102
Mumbai.
Date: July 7, 2010

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07_12083_FRANKLIN ASIAN EQUITY F4 4 7/13/2010 11:23:15 AM

 Abridged Revenue Account For the Year Ended March 31, 2010 Key Statistics for the year ended March 31, 2010
Rupees in Lakhs
Year ended Year ended
Year ended Year ended March 31, March 31,
March 31, March 31, 2010 2009
2010 2009
1 NAV per unit (Rs.):
1 INCOME
1.1 Dividend 878.61 899.61 Open:

1.2 Interest 22.57 221.88 Growth Option 7.0599 8.9611

1.3 Realised Gain / (Loss) on Foreign
Dividend Option 7.0599 8.9611
Exchange Transactions (233.17) (91.76)
1.4 Realised Gains / (Losses) on High:
Interscheme sale of investments 73.43 -
Growth Option 10.5237 10.0952
1.5 Realised Gains / (Losses) on
External sale / redemption of Dividend Option 10.5237 10.0952
investments 6,632.26 (10,251.92)
1.6 Realised Gains / (Losses) on Low:
Derivative Transactions - -
Growth Option 7.0780 5.7762
1.7 Other Income -* -
Dividend Option 7.0780 5.7762
(A) 7,373.70 (9,222.19)
2 EXPENSES End:
2.1 Management Fees 434.18 416.61 Growth Option 10.0495 7.0599
2.2 Service Tax on Management Fees 44.72 50.78
Dividend Option 10.0495 7.0599
2.3 Transfer Agents Fees and Expenses 91.08 92.63
2 Closing Assets Under
2.4 Custodian Fees 18.72 24.72
Management (Rs in Lakhs)
2.5 Trusteeship Fees 1.23 1.18
End 37,298.81 34,565.05
2.6 Commission to Agents 242.87 239.42
2.7 Marketing and Distribution Average (AAuM) 40,969.31 39,473.73
Expenses 52.90 62.92 3 Gross income as % of AAuM
2.8 Audit Fees 1.26 1.36 ( Gross Income = (A) in Revenue
Account): 18.00% -23.36%
2.9 Other Operating Expenses 54.29 16.57
4 Expense Ratio:
(B) 941.25 906.19
3 NET REALISED GAINS / a. Total Expense as % of AAuM 2.30% 2.30%
(LOSSES) FOR
THE YEAR (A -B = C) 6,432.45 (10,128.38) b. Management Fee as % of AAuM 1.17% 1.18%
4 Change in Unrealised 5 Net Income as a percentage of
Depreciation in value of AAuM (Net Income = (C) in
investments (D) (6,253.32) 1,821.48 Revenue Account): 15.70% -25.66%
a) Value of Investments (6,253.32) 1,821.48 6 Portfolio turnover ratio: 81.41% 207.16%
b) Foreign Exchange Fluctuation - -
7 Total Dividend per unit
5 NET GAINS / (LOSSES) FOR distributed during the year: NIL NIL
THE YEAR (C-D = E) 12,685.77 (11,949.86)
8 Returns:
6 Change in Unrealised
Appreciation in the value of a. Last One Year
Investments (F) 1,601.08 2,201.92
7 NET SURPLUS / (DEFICIT) FOR Scheme
THE YEAR (E + F = G) 14,286.85 (9,747.94)
Growth Plan: 42.35% -21.22%
7.1 Add: Balance Transfer from
Unrealised Appreciation Reserve 2,417.76 215.84 Dividend Plan: 42.35% -21.22%
7.2 Less: Balance Transfer to
Benchmark 49.37% -30.72%
Unrealised Appreciation Reserve 4,018.84 2,417.76
7.3 Add / (Less): Equalisation b. Since Inception
Credit/(Debit) (1,005.85) (0.02)
Scheme
8 Total 11,679.92 (11,949.88)
9 Retained Surplus / (Deficit) Growth Plan: 0.22% -25.08%
carried forward to Balance sheet 11,679.92 (11,949.88)
Dividend Plan: 0.22% -25.08%
*:- Amount is less than rupees one thousand.
Notes to Accounts - Annexure I Benchmark -0.70% -29.22%

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07_12083_FRANKLIN ASIAN EQUITY F5 5 7/13/2010 11:23:15 AM

 Notes to Accounts - Annexure I to the Abridged Balance Sheet and Revenue Account for the Year ended March 31, 2010.
Particulars 2010 2009
1 Investments:
1.1 Investments of the Scheme are held in trust by the trustees for the benefits of the Schemes Unitholders.
1.2 Exposure to Derivative Instruments: NIL NIL
1.3 Investments in Associates and Group Companies:
Aggregate investments
Nature of Amount by all schemes (includes
Issuer Equity,debentures and bonds )
Instrument
2010 2009 2010 2009
Asian Paints Limited Equity - - 3,510.56 11,489.90
Housing Development Finance Corporation Equity - 615.37 109,267.31 57,991.94
Limited
Infosys Technologies Limited Equity - 640.97 37,764.37 60,574.28

1.4 Securities Borrowed and/or Lend by the scheme: NIL NIL

1.5 Non performing assets (NPA): NIL NIL
1.6 Aggregate Unrealised Gain / Loss as at the end of the Financial Year and percentage to net assets.
Listed Securities / Securities Awaited Listing / Unlisted Securities / Foreign Securities:
(Equity shares / Preference shares / Foreign securities)
- appreciation 680.61 72.05
- depreciation 70.97 982.45
- Net Unrealised Gain/Loss as a percentage of Net assets as on March 31, 2010 1.63 (2.63)
Foreign Securities
- appreciation 4,416.63 424.59
- depreciation 1,030.37 5,767.51
- Net Unrealised Gain/Loss as a percentage of Net assets as on March 31, 2010 9.08 (15.46)
Foreign Securities (due to foreign exchange fluctuation)
- appreciation 672.26 2,733.83
- depreciation 649.32 316.07
- Net Unrealised Gain/Loss as a percentage of Net assets as on March 31, 2010 0.06 6.99
1.7 Aggregate Value of Purchase and Sale with Percentage to average assets.
Purchases
- amount 33,352.24 81,855.44
- as a percentage of average daily net assets 81.41 207.37
Sales
- amount 44,276.22 81,773.17
- as a percentage of average daily net assets 108.07 207.16
1.8 Aggregate value of Non-Traded securities and percentage to Net assets:
Equity - -
Debt - -
Money Market Instruments - -
Total - -
Percentage of Non Traded securities to Net Assets as on March 31, 2010 - -
2 Details of Transaction with Associates under regulation 25(8) :
- Brokerage Paid to Associates/Related Parties/Group companies of Sponsor/AMC - NIL
- Commission Paid to Associates/Related Parties/Group companies of Sponsor/AMC
Business Given# Commission Paid $
Name of Associate/Related Nature of % of total
Parties/Group Companies of Association/ Period % of Total
business
Sponsor/AMC Relation Amount (Rs.CR) Amount (Rs.) commission paid
received by the
by the Fund
Fund
Associate
ITI Capital Markets Ltd 2009-2010 - - - -
Company
Integrated Enterprises (India)
N.A^ 2009-2010 - - - -
Limited
Mahindra & Mahindra Financial Associate
2009-2010 - - 24,920.02 0.11%
Services Ltd Company

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07_12083_FRANKLIN ASIAN EQUITY F6 6 7/13/2010 11:23:15 AM

 Business Given# Commission Paid $
Name of Associate/Related Nature of % of total
Parties/Group Companies of Association/ Period % of Total
business
Sponsor/AMC Relation Amount (Rs.CR) Amount (Rs.) commission paid
received by the
by the Fund
Fund
ITI Capital Markets Ltd Associate 2008-2009 - - - -
Company
Integrated Enterprises (India) Associate 2008-2009 0.07 0.83% 307,428.53 1.21%
Limited Company
Mahindra & Mahindra Financial N.A^ 2008-2009 - - - -
Services Ltd
# Only fresh mobilization received during the period is considered
$ Commission paid details reported includes all types of commission that have been paid during the period
^ Not Applicable
Integrated Enterprises (India) Limited has ceased to be related party w.e.f March 21,2009
3 Large Holdings (over 25% of the NAV of the Scheme) : NIL NIL
4 Unit Capital movement during the year ended :
Units of Rs 10 each fully paid up

Quantity Amount
2010 2009 2010 2009
Growth Plan
Outstanding, beginning of year 332,216,537.77 345,227,750.77 33,221.65 34,522.78
Issued during the year 13,194,323.43 37,846,789.40 1,319.43 3,784.68
Redeemed during the year (101,952,663.09) (50,858,002.40) (10,195.26) (5,085.81)
Outstanding, end of year 243,458,198.11 332,216,537.77 24,345.82 33,221.65
Dividend Plan
Outstanding, beginning of year 157,247,364.26 170,312,163.50 15,724.74 17,031.22
Issued during the year 19,144,397.68 5,347,610.23 1,914.44 534.76
Redeemed during the year (49,247,807.50) (18,412,409.47) (4,924.78) (1,841.24)
Outstanding, end of year 127,143,954.43 157,247,364.26 12,714.40 15,724.74
5 Prior year amounts have been reclassified, wherever applicable, to conform to the current year’s presentation.
6 Contingent Liability NIL NIL
7 Change in method of equalisation
The purpose of equalization account is to maintain per unit amount of a Plan’s/Option’s share of the Scheme’s undistributed income, so that continuing
unit holders’ share of undistributed income remains unchanged on issue or redemption of units under that Plan/Option.
Prior to March 15, 2010, when units were issued or redeemed, the total undistributed income from the beginning of the accounting year to the date of the
transaction was determined. Based on the number of units outstanding on the transaction date, the undistributed income associated with each unit was
computed. The per unit amount so determined was credited and debited to the equalization account on issue and redemption of each unit respectively.
Pursuant to SEBI circular dated March 15, 2010, the Trustee/AMC has changed the method of calculating equalization per unit w.e.f. that date viz:
a) When the sale price is higher than the face value of the unit, the total accumulated undistributed income (including realized gains) till the date of
the transaction is determined. Based on the number of units outstanding on the transaction date, the undistributed income (including realized gains)
associated with each unit is computed. The per unit amount so determined is credited and debited to the equalization account on issue and redemption
of each unit respectively.
b) When the sale price is lower than the face value of the unit, the difference between the Net asset value and the par value is debited and credited to the
equalization account on issue and redemption of unit respectively.
Pursuant to SEBI circular dated March 15, 2010, an appropriate amount of the realized / unrealized gain has been reallocated between the plans of the
Scheme, based on the plans AUM as on March 15, 2010.
On account of the above change in accounting policy, the impact to the equalisation account is Rs 11,196.
However, the above change does not affect the NAV of the Scheme.
8 Expenses other than management fee is inclusive of service tax where applicable.

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 Book -Post

If undelivered, please return to :

FRANKLIN TEMPLETON ASSET MANAGEMENT (INDIA) PVT. LTD.
C/o. Bhavish Graphics, Old No. 38, New No. 6, McNichols Road, Chetput, Chennai - 600 031.

The contents of this document are only for informative purposes and are not to be used or considered to be an offer to sell or buy units of Franklin Templeton Mutual
Fund schemes Risk Factors : All investments in mutual funds and securities are subject to market risks and the NAV of the scheme may go up or down depending
upon the factors and forces affecting the securities market including the fluctuations in the interest rates. There can be no assurance that the schemes’ investment
objectives will be achieved. The past performance of the mutual funds managed by the Franklin Templeton Group and its affiliates is not necessarily indicative of
future performance of the scheme. The above is only the name of the scheme and does not in any manner indicate the quality of the scheme, it’s future prospects
or returns. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes and the same is subject to the availability and adequacy of
distribution surplus. The investments made by the scheme are subject to external risks. Investment in overseas financial assets are subject to risks associated with
currency movements, restrictions on repatriation, transaction procedures in overseas markets and country related risks. Please read the Statement of Additional
Information (SAI) and Scheme Information Document (SID) carefully before investing. Statutory Details : Franklin Templeton Mutual Fund in India has been
set up as a trust by Templeton International Inc. (liability restricted to the seed corpus of Rs.1 lac) with Franklin Templeton Trustee Services Pvt. Ltd. as the Trustee
(Trustee under the Indian Trusts Act, 1882) and Franklin Templeton Asset Management (India) Pvt. Ltd. as the Investment Manager.

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