Annual Report 2010 2011

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ANNUAL REPORT 2010-11
Dear Member, Heres your chance to choose a greener option. Its easy. Log on to www.kotak.com/update.html and register yourself to receive our next report and other communications through email. You could also use the form enclosed with this report. The postage is paid, so just fill it, seal it and post it. As soon as your email address is registered, you can be sure to receive all communication from us. No more postal delays, lost deliveries or transit-related document damage. In choosing the email version, you help save trees, reduce the use of chemical inks, energy and also fuel that goes into sending paper communication. Of course, if you still prefer the good ol way, do state your preference. We will continue to communicate with you as efficiently as we have in the past. Heres hoping you will help us take an active step in conserving the environment. Warmly, Bina Chandarana Company Secretary
Registered Office Kotak Mahindra Bank Limited 36-38A, Nariman Bhavan, 227, Nariman Point, Mumbai 400 021. Tel.: +91 22 6658 1100 Fax: +91 22 2285 5577 Website: www.kotak.com
Company Secretary Bina Chandarana, Company Secretary and Executive Vice President
Auditors M/s S.R. Batliboi and Co. Chartered Accountants 6th Floor, Express Towers, Nariman Point, Mumbai 400 021.
Registrar and Transfer Agent Karvy Computershare Private Limited Plot No. 17-24, Vittal Rao Nagar, Madhapur, Hyderabad 500 081. 7, Andheri Industrial Estate, Off Veera Desai Road, Andheri West, Mumbai 400 058.
Contnts
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2 4 6 9 14 16 18 20 22 25 Its grt 2b 25 My grt 2b 25 moment V r 25 too :-) Its grt 2b 52 U nme it, v r in it Scoreboard @25 7-11 (let d nmbrs spk) Its grt 2 do gud too Its also grt 2 win... Financial inclusion
Its grt 2b 52
Financial highlights
26 27 Consolidated Standalone
Consolidated financial statements

28 29 30 71 Consolidation at a glance Auditors report Financial statements BASEL II (PILLAR 3) disclosures
U nme it, v r in it
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Bank reports & statements

85 93 105 121 122 Directors report Management Discussion & Analysis Report on corporate governance Auditors report Financial statements
Its also grt 2 win...
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2b 25 Its grt
e is tim y on m de. si
bcoz
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Financial Highlights
Consolidated Financial Statements
Bank Reports & Statements
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A wonderful age. When exuberance meets wisdom. Free spiritedness meets ambition. Chalta hai meets idealism. Doubt meets dogma. At Kotak Mahindra, we are enjoying being 25.
Being a t-shirt among pinstripes. Having ideas that raise eyebrows and bottomlines. Being seen as financial whiz kids who are rewriting the rules. And yet, we dont really think its such a big deal.
Maybe because were just 25.
My grt 2b 25 moment
Everybody has a grt 2b 25 moment they recall fondly. An experience, an escapade, a milestonehere are a few shared by our winning contestants on 25.kotak.com
Got promoted, married, booked a new home & opened an account with Kotak...all in same month.
Viral Kariya
boa on my backscared and
Shivani Arya
thrilled!
Its grt 2b 25 My grt 2b 25 moment
z Nicole Ferra l rose-tinted!

Life still loo ks al
Conquered Leh & Ladakh on m y bike. A memorable trip must repeat wi th my kids.
Nenshad H. Karb har
25 steps from
Bhaskar Patra
scaling the peak
V r 25 too :)
The ebullient spirit of our campaign celebrating 25 years of existence has proved more infectious than even we hoped for. Our illustrious Board of Directors also joined the festivities to share their experiences and memories. Perfectly complemented by rarely seen pictures at that magic age when everything seems possible.
Shankar
N
ve Part-tim on-Executi
Acharya
e Chairman
Shankar Acharya @25: Got my PhD from

Harvard and my first job as a World Bank economist.
Uday Kotak Chairman & e

ic Executive V Director Managing
Uday Kotak @25: Gave up pursuing a plum

MNC job to start my own little venture.
Anand Mahindra @25: Successfully

finished my first year at the Harvard Business School; got the class prize for highest ROE: Return on Effort!
Anand Mahindra
Director
Kotak Mahindra Bank Limited Annual Report 2010-11
or Ceased to be Direct rch 2011 effective 21st Ma
Its grt 2b 25 V r 25 too :)
Dipak Gupta @25: Turned

down a banking job. Dreamt of being an entrepreneur someday.
Dipak Gupta C Jayaram
Executive Director
Executive Director
C Jayaram @25: Narrowly

escaped doing a PhD. Spent long liquid weekend in Goa to celebrate.
Shivaji Dam @25: Passed CA,

ICWA and CS exams in the same year. Helped carry a friend bitten by a scorpion for 10km before we found a doctor.
Director
Shivaji Dam
Ceased to be Dir ect effective 21st Ma or rch 2011
Sudipto Mundle
Director
Asim Ghosh @25: Single,

doing well at P&G. Spent memorable weekends in the Canadian wilderness.
Director
Sudipto Mundle @25: Inspiring visit to

a remarkable school for children of freed bonded laborers. The childrens confidence and joy starkly contrasted with their parents subservience.
Asim Ghosh
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Cyrill Shroff @25: Life was just

beginning; became the friend and witness to Kotaks history, found my beau and was planning my own venture too.
Cyrill Shroff
Director
r 1 ecto e Dir rch 201 to b a sed 21st M Cea tive c effe
Prakash Apte @25: Came to Mumbai to

pursue my dreams. Met my life partner. Bought our first home.
Prakash Apte
Director
N P Sarda
Director
Amit Desai
Director
N P Sarda @25: A year of long term

alliances. Married and also became a partner in a CA firm, from which I retired at 65.
Amit Desai @25: Avid swimmer and

squash player. Trekked to Triund from Mcleodganj, Dharamsala.
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Friends, Twenty five years is a defining age. It is the crossroads where youth and aspiration meet insight and maturity. We, at Kotak, are at this point of reckoning. The world around us has changed at startling speed: 25 years ago, Indian television was in its infancy, mobile phones were unheard of, and email did not exist. One of our recent TV ads captured this thought When I was 25, conversations happened face-to-face, not on Facebook. The true challenge is to ensure we stay relevant to our customers through a deep understanding of their constantly evolving mindsets.
Photo: Devdatta Bhattacharya Employee, Kotak Mahindra Bank
Uday Kotak
Executive Vice Chairman & Managing Director
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Come the early 90s, the stage was set for a slew of reforms in the capital markets... (Kotak) saw opportunity in this reform-fuelled environment and built its capital markets business in an emerging world of investors and issuers.
I look back to when it all started for perspective. Way back in 1985, your bank (of course, it was not a bank then) was born out of an opportunity in the spreads business bills discounting. Soon, it grew deeper and wider into leasing and car finance also spreads businesses (essentially those that intermediated between savers and borrowers). Investors as a breed were scant. Come the early 90s, the stage was set for a slew of reforms in the capital markets. The abolition of the Controller of Capital Issues (CCI), the setting up of the regulator Securities & Exchanges Board of India (SEBI), the launch of the National Stock Exchange (NSE) and the creation of Indias first Depository, NSDL. Your company saw opportunity in this reform-fuelled environment and built its capital markets business in an emerging world of investors and issuers. Our takeover of FICOM gave us
a distribution advantage, so our reach could exceed our 6 year old grasp. Throughout the 90s, as your company approached teenage, it straddled both the spreads and the markets businesses. Meanwhile, we forged associations with Goldman Sachs and Ford Credit, in 1995 and 1996 respectively. The first energized our foray into investment banking and securities, and the second helped us consolidate our strengths in auto finance. Then the environment around us suddenly changed with the onset of the Asian contagion in the late 90s. Non Performing Loans (NPLs) destroyed the spreads industry, and practically 90% of the NBFCs died. Even large government sponsored financial institutions needed restructuring to endure. At Kotak, we hunkered down, pruned exposures, survived and grew stronger. Like the boy who stayed home to avoid catching
321
branches of Kotak Mahindra Bank

(as on 31st March 2011)
2,077
branches and franchises in India
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We launched our Asset Management offering at age 13 and then Life Insurance in partnership with South Africas Old Mutual at 16.
Values
the bug from the other kids in the playground. Then came our age of adolescence. Thats when we started building things, in what Id call our financial manufacturing businesses. We launched our Asset Management offering at age 13 and then Life Insurance in partnership with South Africas Old Mutual at 16. At 18, like all young adults, we got our license to drive. We became Indias first and so far only NBFC to turn into a bank. This was also the period when the capital markets really took off. So while we were setting up the Bank, we saw exponential growth in the securities and investment banking businesses. India seemed set to convert into a country of investors, from one of just savers. We used this time to build out the banks network of branches and
ATMs, as also its suite of world class offerings. We also responded to the call of the markets by adding other marketsrelated offerings such as our private equity business, our realty fund and the ability to retail pension funds. However, post 2008, in the wake of the American upheaval, the tables turned for financial services worldwide. The investor, particularly in equities, was wounded and withdrew to the cocoon of savings. It seemed like we had come full circle, with the return of the saver! You may recall, I first referred to a unique merit of our business model on these pages way back in 2003, with the epithet 6=1. At that time, we had begun to taste the benefits of group synergy, and customers had begun experiencing a seamless brand and service experience. Even as the
20,000
employees across the Group
8.8 mn
customers accounts
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Even as the American flu was spreading in 2008, I wrote here of how I believed that our integrated one firm approach was the most appropriate model for the Indian financial sector. Just last year, I reiterated my belief that while the capital markets businesses are cyclical in nature, the financing and asset management offerings would provide a steady stream of growing annuity.
American flu was spreading in 2008, I wrote here of how I believed that our integrated one firm approach was the most appropriate model for the Indian financial sector. Just last year, I reiterated my belief that while the capital markets businesses are cyclical in nature, the financing and asset management offerings would provide a steady stream of growing annuity. Your banks financial results for 2010-11 only serve to reinforce my faith in this model. This year, 75% of our earnings came from the financing business. The capital markets business contributed 15% (down from 55% in 2008) and the manufacturing business, i.e. Asset Management and Life Insurance 10%. Regulatory developments, environmental events and customer mindsets can all serve to shift value from one side of the platform to another, hence it is critical to be present across the spectrum of the financial ecosystem.
As you can see, while the environment has proven dynamic we have grown our profits steadily on a consolidated basis. The business model is complete, and our position vindicated. We are attaining stability and maturity; we are coming of age. We are, after all, 25! As we head into the second major phase of our life cycle as a firm, we want to follow 2 mantras: Excellence for Relevance Depth in addition to width
19.5%
capital adequacy ratio
At Kotak, we have long defined our position as concentrated India, diversified financial services. This approach has served us well so far, given Indias stage of evolution. But going forward, we will have to make choices, and turning up at every happening party may not be the right strategy. In preparation for that time, we must now figure out how we do better, what we do.
market capitalisation
(as on 6th May 2011)
32,000
crore
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Until now, an important aspect of Kotaks DNA was width wherever we spotted relevant, lucrative, unexploited opportunities, we moved ahead with speed and broke new ground. Now we will complement that with a surgical focus on depth and excellence. For example, customer experience is always about delighting each customer, and not about the average. And as I wrote in 2007, quality of service is directly linked to the quality of people. When we crossed the 10,000 mark, we won a mention in Hewitts list of Indias best employers. Today, at over double that number, we have again been counted among Indias best employers, and continue to be Indias number one BFSI employer. I salute my colleagues and thank them for their contributions. I also thank their families for their unstinting support. Best Wishes
Customer experience is always about delighting each customer, and not about the average.
Finally, I thank our Board of Directors for their support and exemplary guidance. I also take this opportunity to express my gratitude to all our stakeholders who continue to repose faith and trust in us over the years. In conclusion, on a personal note, I did celebrate my own 52nd birthday just weeks before the end of this fiscal. But along with your company, I too feel so full of energy, enthusiasm and passion as I look forward, that I can say with conviction that it truly isgrt 2b 25!
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U nme it, v r in it
inance Auto F es becom division indra Mah Kotak e Ltd. Prim
Auto Finance division was established.
1990
Entered the Lease and Hire Purchase market.
1987
Kotak Mahindra Finance Ltd started Bill Discounting activity.
1986
1996
, FICOM over largest Took s f India one o l retail ia ks. financ g networ etin mark
1991
Entered the Funds Syndication sector.

Makes an entry in th e Mutual Fu nd marke t with Kotak M ahin Managem dra Asset ent Co.
1992
1998
The Investment Banking Division incorporated as Kotak Mahindra Capital Company.
1995
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Its grt 2b 25 U nme it, v r in it
eal Launched R ate Fund. Est
2004
Launched India Growth F und, a private eq uity fund.
2005
Financial First Non Banking nvert into Corporation to co . a commercial bank
2003
Entered Ahmedabad Commodity Exchange as anchor investor.
2008
Kotak M ahindra Bank lau nched Indias fi rst vertic al Credit C ard.
2010
Launched a Pension Fund under the New Pension System.
2009
Kotak Mahindra tied up with Old Mutual plc. to enter the Life Insurance sector.
Kotak Securities becomes a subsidiary of Kotak Mahindra Finance Ltd.
2001
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2000
15
Scoreboard @25
1987 to 1991 1992 to 1996 1997 to 2001
1 Cr 1987 1988 1989 1990 1991
50 Cr 1992 1993 1994 1995 1996
100 Cr 1997 1998
Net Worth Advances Total Income Net Profit Mkt. Cap.
1 1 1 0
1 2 3 1
3 5 5 1
6 5 10 3
15 17 21 10
41 35 46 22 908
67 75 78 25 133
188 180 128 43 918
249 534 248 64 918
330 676 308 42 378
465 754 419 36 196
509 801 428 33 95
Figures for Net Worth, Advances, Total Income and Net Profit are consolidated.
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Its grt 2b 25 Scoreboard @25
2002 to 2006
2007 to 2011
= 1999 2000 2001
500 Cr 2002 2003 2004 2005 2006
2,000 Cr 2008 2009 2010 2011
2007
547 767 429 25 67
721 1,036 536 69 528
947 1,170 698 134 267
970 2,282 606 84 986
1,056 3,034 715 73 936
1,236 4,651 1,165 174 2,405
1,467 7,145 1,711 171 4,199
2,247 10,420 3,033 342 8,598
3,233 15,573 4,352 538 15,644
5,824 21,985 7,678 991 21,664
6,523 22,498 7,287 652 9,781
7,911 29,724 10,053 1,307 26,003
10,963 41,242 11,029 1,567 33,664

Crore
Figures in
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17
7-11 (let d nmbrs spk)

Group AUM
Equity Debt
Mar 07
13,153
Mar 08
23,931
Mar 09
16,674
Mar 10
21,612
Mar 11
21,126
Mar 07 Total
/
10,418 23,570
Mar 08
12,576 36,507
Mar 09
17,235 33,909
Mar 10
23,612 45,224
Mar 11
26,724 47,850
Figures in Crore
= 1,000 Crore
Bank deposits
22 27
CASA deposits #
CASA (%)
Term deposits
32
31
30
Mar 07
2,248
Mar 08
4,251
Mar 09
5,118
Mar 10
7,463
Mar 11
8,791
Mar 07
/
8,004
Mar 08
11,754
Mar 09
10,526
Mar 10
16,423
Mar 11
20,471
= 1,000 Crore
Figures in Crore # excluding monies held as collection banker
18
Its grt 2b 25 7-11 (let d nmbrs spk)
Group customer accounts
Mar 07
2.6
Mar 08
4.4
Mar 09
6.1
Mar 10
7.0
Mar 11
8.8
= 1 million accounts
Kotak securities average daily volume
Mar 07
3,700
Mar 08
5,300
Mar 09
3,300
Mar 10
3,900
Mar 11
4,600
Figures in Crore
= 1,000 Crore
Insurance premium
Group
Individual
Renewal
Mar 07
69
Mar 08
132
Mar 09
148
Mar 10
221
Mar 11
288
Mar 07
546
Mar 08
975
Mar 09
1,195
Mar 10
1,113
Mar 11
965
Mar 07
= 10 Crore
357
Mar 08
= 100 Crore
584
Mar 09
1,000
Mar 10
1,534
Mar 11
1,722
Figures in Crore
= 100 Crore
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Its grt 2 do gud too

Towards sustainable partnerships
Our Corporate Responsibility (CR) initiatives represent a spectrum of economic, ecological and social considerations.This involves the adoption of policies, programs and practices to widen and deepen social engagement. We have chosen to support diverse CR issues this year. The emphasis is on activities that hold immediate relevance in the context of our communities.
Education and employability

Kotak provides financial support to the Kotak Education Foundation. The focus of the foundation for the past year has been to formulate and execute livelihood training programs for youth who are school/ college dropouts and assist them in placement with organizations in order to provide them with a steady income. Scholarships have been created to support academic requirements and overall development of children in the age group of 12-15 years. The financial support and mentoring of these children will help them overcome their natural limitations and go on to succeed in life.
Environment
We at Kotak are conscious of our responsibility towards the environment. Our Think Green initiative encourages customers to switch to E-statements. We plant a tree on behalf of each Kotak Credit Cards customer who has opted for E-statements. Our partner GrowTrees has successfully planted 8,900 trees so far. Our aim is to reduce carbon emissions from business operations and to send a strong signal in support of the planet.
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Community engagement
Our programs emphasize health and cooperation through working with non-profit organizations, and often involve our employees on a voluntary basis. During the year, we launched Doing my bit, a payroll giving program to support of 5 NGOs. More than 1000 employees have joined this program, providing substantial financial support to these causes. A recycling drive was organized to support Nokia in recycling mobile phones and accessories.
Aug 2010
Goonj - Help Drive (aiming at recycling and reuse), was supported. Employees in all major offices of Kotak were encouraged to donate clothes, books, toys for distribution to the needy.
5 NGOs
National Association for the Blind, Akanksha, Cancer Patients Aid Association, Dignity Foundation and Make a Wish Foundation.
>1,000
Employees participated in the payroll giving scheme initiated by us.
Sep 2010
Over 80 employees participated in the Standard Chartered Mumbai Marathon 2011, to endorse three NGOs, Cancer Patients Aid Association, Sopan and ICMH. A robust contingent of supporters went along to cheer on the runners.
Christmas gift stalls were organized at our Kalina and Goregaon offices in Mumbai to help NGOs sell products made by the underprivileged.
Laying bricks for Habitat for Humanity.
Dec 2010
A 30 person contingent of Kotak employees was given the day off to visit a village in Karjat and help build homes for the villagers, in partnership with Habitat for Humanity.
Jan 2011
Feb 2011
Running the Mumbai marathon.

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Its also grt 2 win...

06 07 08 09 10 11
At Kotak, we work to serve our stakeholders (customers, employees & shareholders) as well as the communities we live in. But, every now and then, when our efforts are recognised, it does put a spring in our step, a lilt on our lips and an inch on our spine. Some prized accolades we have received (until 30th April 2011) over the last few years are listed here.
Banking Technology Excellence Award in IT Governance

Banking Technology Award in IT Governance
IDG India
Kotak won the CIO 100 The Agile 100 award
FinanceAsia
Best Investment Bank in India Best Equity House in India Best Broker in India Best Private Bank in India
Euromoney
Best Bank for Equity Finance in India in the Euromoney Real Estate Poll Best Private Banking Services in India (Overall) Best Family Office Services in India Best Range of Investment Products in India Best Range of Advisory Services in India
Asiamoney
Best Domestic Equity House Best Local Brokerage in the Asiamoney Brokers Poll Best Local Cash Management Bank in the Asiamoney Cash Management Poll
IBA Banking Technology Awards

Kotak Securities named Best Electronic Broker at TradeTech India Excellence Awards 201 1. Best Customer Initiative category for CRM Runners up Best use of Technology in Training & Learning category for E-learning Runners up
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Its grt 2b 25 Its also grt 2 win...
06
07
08
09
10
11
Asian Banker Award

Kotak Mahindra Bank and Cisco won the Asian Banker Award for the Best Contact Center Deployment
NDTV Profit
Kotak Bond RegularMost Consistent Performer (based on the annual performance of the past 10 years) Kotak Bond Short TermRunner Up, Debt category Asian Banker Award 201 1
EDGE Award
Kotak Life Insurance won the prestigious EDGE (Enterprise Driving Growth and Excellence through IT) Award for the successful implementation of KRIS (Kotak Reward and Incentive System)
Kotak Flexi Debt (Institutional Plan) and Kotak Floater Long Term rated 7 star for 1 year performance as on 31st Dec 2010
ICRA Awards
The Asset
Best Domestic Investment Bank Amongst top 25 in Indias Best Companies to Work For, 201 0
Global Finance
Best Investment Bank in India
The Great Places to Work Institute, India

Indias Best Companies to Work For study Adjudged amongst Top 25 Adjudged amongst Top 50
AON Hewitt
Adjudged amongst Top 25 Best Employers in India
1 1th Best Employer in India 201 1
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10
11
Mr. Jaimin Bhatt, Group CFO, Kotak Mahindra Bank was adjudged the Best Performing CFO in the Banking/Financial Services sector by CNBC TV18 CFO Awards. Mr. KVS Manian included in the List of Leading Practitioners by Asian Banker, for his contribution to the shape and future of the financial services industry. Mr. Uday Kotak, Executive Vice Chairman & Managing Director of Kotak Mahindra Bank has been ranked No. 1 as Indias Most Valuable CEO (Mid-size Company : 3 year & 1-year performance) by BusinessWorld. Mr. Subhro Bhaduri, HR Head, Kotak Mahindra Bank was awarded: HR Leadership Award in the 6th Recruiting & Staffing Best in Class Awards (RASBIC). Most Powerful HR Professionals of India by the World HRD Congress in their 3rd edition. Kotak Mahindra Bank won the Most Active Corporate award by United Way of Mumbai for the Standard Chartered Mumbai Marathon Kotak 5X Mailer won Official Honoree for the Email Marketing category in The 15th Annual Webby Awards Kotak Mahindra Group won the award for the Best use of Corporate Communications within an organization at the Indian PR and Corporate Communication Awards (IPRCCA) 2011 for the www.Im25.in digital campaign. Kotak Mahindras ITS GRT 2B 25 employee event held in Mumbai and Delhi won a Silver in the LIVE experience of the year category at the WOW Awards Kotak Mahindra Bank made it to the Forbes Asias Fab 50 list in the 6th annual ranking of the Best of Asia-Pacifics biggest listed companies Kotak Mahindra Bank ranked 44 by the survey of Indias Most Valuable Brands
24
Its grt 2b 25 Financial inclusion
Financial inclusion
India is one amongst the worlds least-penetrated banking systems, in spite of considerable economic progress and pursuit of explicit development goals over the years. Presently, both in rural as well as urban areas informal channels are utilized by this vast unbanked population. Financial inclusion is the delivery of financial services at an affordable cost to these vast unbanked sections of disadvantaged and low income group. Financial Inclusion through deepening and widening of financial services is one of the key challenges before the Indian Banking sector. Achieving financial inclusion is seen necessary to improve and achieve social inclusion. In response to the RBIs directives, Kotak Mahindra Bank had formulated a Financial Inclusion Plan during February 2009 to be rolled out starting from FY10-11 over the next three years. This plan for Financial Inclusion is an integral part of the business plans with the following key objectives: (a) Evolving new models for effective outreach (b) Leveraging on technology based solutions. The Bank has deployed dedicated resources to implement and monitor the plan. The Bank has opened 31895 No-Frill Accounts during the FY 2010-11 taking the cumulative number of No-Frill accounts opened to a total of 60069 accounts. Of these accounts 49329 are live accounts. The Bank, though proposed in the Financial Inclusion Plan to deploy Business Correspondent Model starting from FY 2011-12, it has already introduced during the current financial year to augment the banks FI agenda.
Inauguration of ICT Based FI Model using Business Correspondent (Branchless Banking) at Mehsana, Gujarat.
Under Information and Communication Technology (ICT) based delivery mechanism using Business Correspondents Model (Branchless Banking), the Bank has initiated Biometric Smart Card based solution in Mehsana district of Gujarat. It has engaged Fino Fintech Foundation and FINO as their partner for Business Correspondent and Technology Service Provider for the initiative. The Bank has issued 26491 instant Smart Cards (E-Pass book) by way of opening No-Frill accounts under relaxed KYC norms. A total of 241 villages have been provided with basis banking services (savings accounts, deposits, withdrawals etc.) with deployment of 2 Customers Service Points (CSP) during the first phase of the project. The Bank has plans to deploy 25-30 additional Customer Service Points (CSP) during Q1 of FY11-12 for making the project fully operational.
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Financial Highlights Consolidated

` in crore FINANCIAL HIGHLIGHTS Advances Investments* Total Assets Net Profit * Excludes Policyholders investments FY2003 3,034 1,017 4,681 73 FY2006 10,420 4,082 17,967 342 FY2007 15,573 7,632 28,631 538 FY2008 21,985 9,698 40,597 991 FY 2009 22,498 9,794 40,234 652 FY 2010 29,724 13,200 55,115 1,307 FY 2011 41,242 18,279 73,681 1,567
KEY FINANCIAL INDICATORS Net Interest Margin (NIM) Return on Average Assets (RoAA) Book Value Per Share (`) Earnings Per Share (EPS) Face Value ` 5 per share Return on Equity (RoE) Capital Adequacy Ratio Gross NPA (` cr)* Net NPA (` cr)* Gross NPA Ratio* Net NPA Ratio*
FY2003 7.1% 2.1% 18 1.2 7.2% 26.0%+ 22 8 0.7% 0.3%
FY2006 5.1% 2.7% 36 5.5 20.6% 15.4% 47 21 0.5% 0.2%
FY2007 5.2% 2.3% 50 8.2 19.6% 15.6% 69 26 0.5% 0.2%
FY2008 5.6% 2.9% 84 14.6 22.3% 20.2% 183 70 0.9% 0.3%
FY2009 6.1% 1.6% 94 9.4 10.5% 22.5% 506 262 2.3% 1.2%
FY2010 6.1% 2.7% 114 18.6 18.2% 19.3% 647 338 2.2% 1.1%
FY 2011 5.6% 2.4% 149 21.6 16.4% 19.5% 469 178 1.1% 0.4%
* Excludes stressed assets acquired from other Banks and NBFCs + Standalone MARKET RELATED RATIOS Market Price (`) Market Capitalization (` cr) Price to Book Ratio Price to Earnings Ratio FY2003 16 935 0.9 12.8 FY2006 139 8,598 3.8 25.2 FY2007 240 15,644 4.8 29.1 FY2008 314 21,664 3.7 21.5 FY2009 141 9,781 1.5 15.0 FY2010 375 26,076 3.3 20.1 FY 2011 457 33,664 3.1 21.2
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Financial Highlights Highlights
Financial Highlights Standalone

` in crore FINANCIAL HIGHLIGHTS Deposits Advances Investments Total Assets Net Interest Income (NII) Fee Income Other Non-Interest Income Operating Profit Provisions and Contingencies Tax Provision Net Profit FY2003 257 1,241 707 2,153 94 3 69 90 20 25 45 FY2006 6,566 6,348 2,856 10,176 380 159 59 211 37 55 118 FY2007 11,000 10,924 6,862 19,915 620 187 131 326 123 62 141 FY2008 16,424 15,552 9,142 28,312 1,226 222 241 670 272 104 294 FY 2009 15,644 16,625 9,110 28,712 1,519 224 50 596 170 150 276 FY 2010 23,886 20,775 12,513 37,436 1,858 306 323 1,297 486 250 561 FY 2011 29,261 29,329 17,121 50,851 2,245 353 280 1,325 137 370 818
KEY FINANCIAL INDICATORS(%) Net Interest Margin (NIM) Cost to Income Ratio Return on Average Assets (RoAA) Fee / NII plus Other Income NII / NII plus Other Income Capital Adequacy Ratio Tier 1 Gross NPA Ratio * Net NPA Ratio *
FY2003 7.1% 46.2% 2.5% 2.0% 56.7% 26.0% 25.7% 0.8% 0.1%
FY2006 4.7% 64.8% 1.4% 26.6% 63.5% 11.3% 8.1% 0.5% 0.2%
FY2007 4.5% 65.3% 0.9% 20.0% 66.1% 13.5% 8.8% 0.5% 0.2%
FY2008 5.5% 60.3% 1.1% 13.1% 72.6% 18.7% 14.5% 1.0% 0.4%
FY2009 6.0% 66.8% 1.0% 12.5% 84.7% 20.0% 16.1% 2.5% 1.3%
FY2010 6.3% 47.8% 1.7% 12.3% 74.7% 18.4% 15.4% 2.4% 1.3%
FY 2011 5.5% 54.0% 1.8% 12.3% 78.0% 19.9% 18.0% 1.2% 0.5%
* Excludes stressed assets acquired from other Banks and NBFCs Its grt 2b 25
27
Consolidation at a Glance
` in Lakhs 2010-2011 Profit Profit before Tax after Tax Kotak Mahindra Bank Limited Subsidiaries Kotak Mahindra Prime Limited Kotak Securities Limited Kotak Mahindra Capital Company Limited Kotak Mahindra Old Mutual Life Insurance Limited Kotak Mahindra Investments Limited Kotak Mahindra Asset Management Company Limited Kotak Mahindra Trustee Company Limited Kotak Mahindra (International) Limited Kotak Mahindra (UK) Limited Kotak Mahindra, Inc. Kotak Investment Advisors Limited Kotak Mahindra Trusteeship Services Limited Kotak Forex Brokerage Limited Kotak Mahindra Pension Fund Ltd Kotak Mahindra Financial Services Ltd Total Add: Associates Less: Dividend, Minority interest, Inter company and other adjustment Consolidated Profit After Tax/Netwoth Consolidated Earnings per Share (`) Consolidated Book Value per Share (`) 48,188.43 27,157.26 7,022.77 10,247.45 3,320.47 1,468.03 990.14 4,727.81 1,285.56 (542.81) 4,922.24 109.69 (45.53) (57.25) (26.91) 31,786.27 18,193.79 5,188.86 10,247.45 2,399.87 1,062.00 668.10 4,605.42 918.54 (380.58) 3,271.41 72.87 (45.53) (57.25) (26.91) 25,887.29 40,387.62 3,461.57 6,922.46 4,842.33 9,905.19 1,052.25 6,833.91 1,829.46 229.16 5,982.64 96.34 (51.97) (62.18) (145.81) 16,641.22 26,010.04 2,386.18 6,922.46 3,466.24 6,551.45 694.98 6,723.80 1,317.33 138.74 3,975.15 65.62 (51.97) (62.18) (145.81) 153,757.56 169,394.91 48,934.65 41,284.54 25,433.24 5,837.47 2,924.71 18,832.91 9,555.83 2,736.14 15,607.73 286.10 43.40 1,080.57 254.63 1,175,611.59 46,220.74 125,538.21 1,096,294.12 111,971.38 151,201.12 43,745.79 31,100.71 23,033.37 5,664.86 2,605.77 14,422.81 8,715.93 3,129.83 12,336.32 213.23 18.94 1,137.82 153.76 857,963.14 43,834.51 110,703.24 791,094.41 118,770.18 81,818.21 2009-10 31st March 2011 31st March 2010 Profit Profit before Tax after Tax Networth Networth 81,110.36 56,110.57 679,647.20 448,511.50
227,537.53 159,722.52 188,280.62 130,743.82 2,386.23 (5,434.28) 156,674.47 21.60 (236.10) (192.33) 130,700.05 18.64
148.78
113.62
28
Its grt 2b 25
Consolidated Financial Statements Auditors Report
Auditors Report
To the Board of Directors of Kotak Mahindra Bank Limited 1. We have audited the attached consolidated balance sheet of Kotak Mahindra Bank Limited (the Bank) and its subsidiaries (collectively the Group) as at 31st March 2011, and also the consolidated profit and loss account and the consolidated cash flow statement for the year ended on that date, annexed thereto. These financial statements are the responsibility of the Banks management and have been prepared by the management on the basis of separate financial statements and other financial information regarding components. Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. We did not audit the financial statements of 15 subsidiaries whose financial statements reflect total assets of ` 172,970,257 (in thousands) as at 31st March 2011, total revenues of ` 27,415,582 (in thousands) and cash outflows amounting to ` 1,449,235 (in thousands) for the year then ended. These financial statements and other financial information have been audited by other auditors whose reports have been furnished to us, and our opinion is based solely on the report of other auditors. Further, we have jointly audited the financial statements of Kotak Mahindra Old Mutual Life Insurance Limited, the life insurance subsidiary of the Bank, with other auditor, whose financial statements reflect total assets of ` 88,458,724 (in thousands) as at 31st March 2011, total revenues of ` 36,214,045 (in thousands) and cash flows amounting to `134,335 (in thousands) for the year then ended. In addition, we have relied on the un-audited financial results of one associate. The share of the Group in the net profit of this un-audited associate for the year then ended is ` 10,085 (in thousands). We, along with the joint auditor of Kotak Mahindra Old Mutual Life Insurance Limited (the Company), the life insurance subsidiary of the Bank have reported in our audit opinion dated 29th April 2011, on the financial statements of the Company, which has been used in the preparation of the accompanying financial statements, that the actuarial valuation of policyholders liabilities is the responsibility of the Companys Appointed Actuary (the Appointed Actuary). The actuarial valuation of these liabilities as at 31st March 2011 has been duly certified by the Appointed Actuary and in his opinion, the assumptions for such valuation are in accordance with the guidelines and norms issued by the Insurance Regulatory Development Authority (IRDA) and the Institute of Actuaries of India in concurrence with IRDA. We, along with the joint auditor of the Company have relied upon the Appointed Actuarys certificate in this regard for forming an opinion on the financial statements of the Company. We report that the consolidated financial statements have been prepared by the Banks management in accordance with the requirements of Accounting Standard 21: Consolidated Financial Statements and Accounting Standard 23: Accounting for Investments in Associates in Consolidated Financial Statements, [notified pursuant to the Companies (Accounting Standards) Rules, 2006, as amended]. Based on our audit and on consideration of reports of other auditors on separate financial statements and on the other financial information of the components, and to the best of our information and according to explanations given to us, we are of the opinion that the attached consolidated financial statements gives a true and fair view in conformity with the accounting principles generally accepted in India: i. ii. iii. in the case of the consolidated balance sheet, of the state of affairs of the Group as at 31st March 2011; in the case of the consolidated profit and loss account, of the profit for the year ended on that date; and in the case of the consolidated cash flow statement, the cash flows for the year ended on that date.
2.
3.
4.
5.
6.
For S.R. Batliboi & Co. Firm Registration No. 301003E Chartered Accountants per Viren H. Mehta Partner Membership No.048749 Mumbai, 5th May 2011
Its grt 2b 25
29
(` in thousands)
Consolidated Balance Sheet as at 31st March 2011

Schedule CAPITAL AND LIABILITIES Capital Reserves and Surplus Minority Interest Employees Stock Options (Grants) Outstanding Deposits Borrowings Policyholders Funds Other Liabilities and Provisions Total ASSETS Cash and Balances with Reserve Bank of India Balances with Banks and Money at Call and Short Notice Investments Advances Fixed Assets Other Assets Goodwill on Consolidation Total Contingent Liabilities Bills for Collection Significant Accounting Policies and Notes to the Consolidated Financial Statements The schedules referred to above form an integral part of this Balance Sheet 17 12 6 7 8 9 10 11 21,148,573 8,793,951 260,489,873 412,419,529 5,970,011 27,955,141 34,194 736,811,272 366,400,173 10,534,742 20,940,828 4,127,315 194,847,770 297,242,869 6,104,142 27,851,026 34,194 551,148,144 381,044,916 6,493,241 5 3 4 1 2 2A 3,684,358 105,945,054 1,072,112 369,172 273,129,755 220,733,209 81,452,019 50,425,593 736,811,272 3,481,415 75,628,026 808,586 548,017 218,191,807 138,857,016 63,710,722 49,922,555 551,148,144 As at 31st March 2011 As at 31st March 2010
As per our report of even date For S. R. Batliboi & Co. Firm Registration No. 301003E Chartered Accountants per Viren H. Mehta Partner (Membership No. 048749)
For and behalf of the Board of Directors Dr. Shankar Acharya Chairman Dipak Gupta Executive Director Jaimin Bhatt Group Chief Financial Officer Bina Chandarana Company Secretary Uday Kotak Executive Vice Chairman and Managing Director
Mumbai, 5th May 2011
30
Its grt 2b 25
Consolidated Financial Statements Balance Sheet and P&L A/c
(` in thousands)
Consolidated Profit and Loss Account for the year ended 31st March 2011
Schedule I. INCOME Interest earned Other Income Total II. EXPENDITURE Interest expended Operating expenses Provisions and Contingencies (Refer Note 10 - Schedule 17) Total III. PROFIT Net Profit for the year Less: Share of Minority Interest Add: Share in profit/(loss) of Associates Consolidated Profit for the year attributable to the Group Add : Surplus brought forward from previous year Total IV. APPROPRIATIONS Transfer to Statutory Reserve Transfer to Special Reserve u/s 45 IC of RBI Act, 1934 Transfer to Special Reserve u/s 36(1)(viii) of Income Tax Act, 1961 Transfer to General Reserve Transfer to Capital Reserve Transfer to Debenture Redemption Reserve Transfer from Debenture Redemption Reserve Transfer (from) / to Investment Reserve Account Proposed Dividend Corporate Dividend Tax Balance carried over to Balance Sheet Total V. EARNINGS PER SHARE [Refer Note 13 - Schedule 17] Basic (`) Diluted (`) Face value per share (`) The schedules referred to above form an integral part of this Profit and Loss Account Significant Accounting Policies and Notes to the Consolidated Financial Statements As per our report of even date For S. R. Batliboi & Co. Firm Registration No. 301003E Chartered Accountants per Viren H. Mehta Partner (Membership No. 048749) 17 21.73 21.60 5.00 18.84 18.64 5.00 2,045,500 683,725 290,000 426,725 6,900 381,376 (783,625) (268,300) 368,832 93,020 49,626,168 52,870,321 1,402,800 402,224 400,000 353,200 69,600 726,467 (882,804) 11,900 296,613 118 37,202,874 39,982,992 15,692,350 263,526 238,623 15,667,447 37,202,874 52,870,321 13,273,599 179,984 (23,610) 13,070,005 26,912,987 39,982,992 15 16 26,345,492 59,997,243 8,257,638 94,600,373 17,728,575 58,668,505 10,862,326 87,259,406 13 14 61,414,352 48,878,371 110,292,723 46,011,601 54,521,404 100,533,005 Year ended 31st March 2011 Year ended 31st March 2010
For and behalf of the Board of Directors Dr. Shankar Acharya Chairman Dipak Gupta Executive Director Jaimin Bhatt Group Chief Financial Officer Bina Chandarana Company Secretary Uday Kotak Executive Vice Chairman and Managing Director
Its grt 2b 25
31
(` in thousands)
Consolidated Cash Flow Statement
for the year ended 31st March 2011 Year Ended 31st March 2011 Year Ended 31st March 2010
CASH FLOW FROM OPERATING ACTIVITIES Net Profit After Tax Add: Provision for Income tax Profit before tax Adjustments for:Employee Stock Option Grants Depreciation on Groups property Amortization of Premium on Investments Diminution in the value of investments (Profit)/ Loss on revaluation of investments (net) Profit on Sale of Associates Interest on debentures and other long-term borrowing Interest on subordinated debt and Upper Tier II Interest on refinance from institutions Provision for Non Performing Assets and contingencies Loss on sale of assets Decrease in Foreign Currency Translation Reserve [Refer Note 2 (F) (ix) - Schedule 17] Wealth tax 187,632 1,523,462 1,189,500 466,434 275,156 3,344,951 698,898 1,877,300 1,009,563 1,262 (29,446) 1,106 32,993,799 Adjustements for :Increase in Investments other than Associates Increase in Advances Increase in Other Assets Increase in Deposits Increase in Borrowings Increase in Policyholders Funds Increase in Other Liabilities & Provisions (67,074,627) (116,292,699) (1,416) 54,937,948 66,701,184 17,741,297 676,921 (43,311,392) Income Taxes Paid NET CASH FLOW FROM OPERATING ACTIVITIES (A) CASH FLOW FROM INVESTING ACTIVITIES Purchase of Fixed assets Sale of Fixed assets Proceeds on sale of Associates Increase in Investments in Associates NET CASH USED IN INVESTMENT ACTIVITIES (B) (1,455,746) 65,153 (498,566) (1,889,159) (4,281,287) 87,433 677,680 (541,128) (4,057,302) (7,068,327) (17,385,920) (56,970,843) (77,630,343) (1,025,803) 79,973,400 15,263,016 26,330,277 9,117,247 (4,943,049) (5,756,603) 15,688,588 270,676 1,429,197 1,419,804 (512,432) (5,293,992) (496,584) 3,127,445 675,524 1,562,449 5,619,714 43,917 (282,527) 1,064 26,388,240 15,667,447 6,780,534 22,447,981 13,070,005 5,753,980 18,823,985
32
Its grt 2b 25
Consolidated Financial Statements Cash Flow Statement
(` in thousands)
Consolidated Cash Flow Statement
for the year ended 31st March 2011 (Contd.) Year Ended 31st March 2011 Year Ended 31st March 2010
CASH FLOW FROM FINANCING ACTIVITIES Dividend paid including corporate dividend tax Fresh issue of share/Money received on exercise of stock options Share issue expenses Increase in Refinance Increase in debentures and other long-term borrowings Increase/(decrease) in subordinated debt and Upper Tier II Interest on subordinated debt and Upper Tier II Interest on refinance from institutions Interest on debentures and other long-term borrowing Increase in Minority Interest NET CASH FLOW FROM FINANCING ACTIVITIES (C) NET INCREASE IN CASH AND CASH EQUIVALENTS (A + B + C) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR (Refer Note below) CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR (Refer Note below) Note: Balance with banks in India in Fixed Deposit (As per Schedule 7 I (i) (b)) Balance with banks in India in current account (As per Schedule 7 I (i) (a)) Money at call and short notice in India (As per Schedule 7 I (ii)) Cash in hand (As per Schedule 6 I) Balance with RBI in current account (As per Schedule 6 II) Balance with banks Outside India: (i) In current account (As per Schedule 7 II (i)) 804,316 2,507,136 29,942,524 265,277 1,469,187 25,068,143 29,942,524 25,068,143 (345,683) 14,983,521 (5,764) 5,026,305 9,792,429 356,275 (698,898) (1,877,300) (3,344,951) 263,526 24,149,460 4,874,381 25,068,143 (304,122) 738,708 576,768 3,497,886 (261,900) (675,524) (1,562,449) (3,127,445) 179,984 (938,094) 10,693,192 14,374,951
2,723,813 2,248,028 510,658 2,522,778 18,625,795
313,398 2,079,453 2,195,514 18,745,314
(ii) In Other Deposit Accounts (As per Schedule 7 II (ii)) CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
As per our report of even date. For S. R. Batliboi & Co. Firm Registration No. 301003E Chartered Accountants per Viren H. Mehta Partner Membership No. 048749
For and on behalf of the Board of Directors
Dr. Shankar Acharya Chairman Dipak Gupta Executive Director Jaimin Bhatt Group Chief Financial Officer
Uday Kotak Executive Vice Chairman and Managing Director
Bina Chandarana Company Secretary
Its grt 2b 25
33
(` in thousands)
Schedules Forming Part of Consolidated Balance Sheet as at 31st March 2011

As at 31st March 2011 SCHEDULE 1 - CAPITAL Authorised Capital 80,00,00,000 Equity Shares of ` 5/- each (31st March 2010: 40,00,00,000 Equity Shares of ` 10 each) Issued Subscribed and Paid-up Capital 73,68,71,504 Equity Shares of ` 5/- each (31st March2010: 34,81,41,477 Equity Shares of ` 10 each) fully paid-up ( Refer Note 3 and 4 - Schedule 17) Total SCHEDULE 2 - RESERVES AND SURPLUS I. Statutory Reserve Opening Balance Add: Transfer from Profit and Loss Account Total II. Capital Reserve Opening Balance Add: Transfer from Profit and Loss Account Total III. General Reserve Opening Balance Add: Transfer from Profit and Loss Account Total IV. Securities Premium Account Opening Balance Add: Received during the year (net of tax) Less: Utilised for Share Issue Expenses Total ( Refer Note 3 - Schedule 17) V. Special Reserve under Section 45IC of the RBI Act, 1934 Opening Balance Add: Transfer from Profit and Loss Account Total 1,263,479 683,725 1,947,204 861,255 402,224 1,263,479 26,554,915 15,147,055 5,764 41,696,206 25,186,388 1,368,527 26,554,915 2,018,176 426,725 2,444,901 1,664,976 353,200 2,018,176 282,203 6,900 289,103 212,603 69,600 282,203 4,470,700 2,045,500 6,516,200 3,067,900 1,402,800 4,470,700 3,684,358 3,481,415 3,684,358 3,481,415 4,000,000 4,000,000 As at 31st March 2010
34
Its grt 2b 25
Consolidated Financial Statements Schedules
(` in thousands)
Schedules Forming Part of Consolidated Balance Sheet as at 31st March 2011 (Contd.)
As at 31st March 2011 VI. Debenture Redemption Reserve Opening Balance Add: Transfer from Profit and Loss Account Less: Transfer to Profit and Loss Account Total VII. Capital Reserve on Consolidation Opening Balance Addition during the year Total VIII.Foreign Currency Translation Reserve [Refer Note 2(F)(ix) - Schedule 17 ] Opening Balance Decrease during the year Total IX. Investment Reserve Account Opening Balance Add: Transfer from Profit and Loss Account Total X. Special Reserve under Section 36(1)(viii) of the Income Tax Act, 1961 Opening Balance Add: Transfer from Profit and Loss Account Total XI. Profit and Loss Account Total SCHEDULE 2A - Minority Interest Minority Interest at the date on which parent subsidiary relationship came into existence Subsequent Increase Total SCHEDULE 3 - DEPOSITS A. I. Demand Deposits i. From Banks ii. From Others Total II. Savings Bank Deposits i. From Banks ii. From Others Total Total Deposits ( I to III) III. Term Deposits 2,676,623 185,082,709 187,759,332 273,129,755 648,677 147,852,855 148,501,532 218,191,807 1,006,014 51,061,096 52,067,110 33,303,313 989,260 43,990,971 44,980,231 24,710,044 396,700 675,412 1,072,112 396,700 411,886 808,586 400,000 290,000 690,000 49,626,168 105,945,054 400,000 400,000 37,202,874 75,628,026 428,914 (268,300) 160,614 417,014 11,900 428,914 42,467 (29,858) 12,609 324,994 (282,527) 42,467 1,474,546 1,474,546 1,474,546 1,474,546 1,489,752 381,376 783,625 1,087,503 1,646,089 726,467 882,804 1,489,752 As at 31st March 2010
Its grt 2b 25
35
(` in thousands)
As at 31st March 2011 SCHEDULE 3 - DEPOSITS (Contd.) B. I. Deposits of Branches in India II. Deposits of Branches Outside India Total Deposits ( I to II) SCHEDULE 4 - BORROWINGS I. Borrowings in India (i) (ii) (iii) Reserve Bank of India Other Banks Institutions, Agencies and others (Refer Note 15 - Schedule 17) 39,647,500 62,998,332 94,245,174 196,891,006 33,543,973 101,133,077 134,677,050 As at 31st March 2010
273,129,755 273,129,755
218,191,807 218,191,807
Total II. Borrowings outside India (i) Institutions, Agencies and others (Refer Note 15 - Schedule 17)
23,842,203 220,733,209 80,697,092
4,179,966 138,857,016 57,543,225
Total Borrowings (I & II) Secured Borrowings included in I & II above SCHEDULE 5 - OTHER LIABILITIES AND PROVISIONS I. II. Bills Payable Interest Accrued
6,188,983 5,160,966 38,663,555 412,089 50,425,593
6,691,977 4,456,915 38,477,743 295,920 49,922,555
III. Others (including provisions) (Refer Note 9 and 21 - Schedule 17) IV. Proposed Dividend (includes tax on dividend ) Total SCHEDULE 6 - CASH AND BALANCES WITH RESERVE BANK OF INDIA I. II. Cash in hand (including foreign currency notes) Balances with RBI in current account Total SCHEDULE 7 - BALANCES WITH BANKS AND MONEY AT CALL AND SHORT NOTICE I. In India (i) Balances with Banks [ Refer Note 8 - Schedule 17 ] (a) In Current Accounts (b) In Other Deposit Accounts Total (ii) Money at Call and Short Notice (a) With Banks Total Total (i + ii) II. Outside India (i) (ii) In Current Accounts In Other Deposit Accounts
2,522,778 18,625,795 21,148,573
2,195,514 18,745,314 20,940,828
2,248,028 2,723,813 4,971,841
2,079,453 313,398 2,392,851
510,658 510,658 5,482,499 804,316 2,507,136 3,311,452 8,793,951
2,392,851
265,277 1,469,187 1,734,464 4,127,315
Total Total (I & II)
36
Its grt 2b 25
(` in thousands)
As at 31st March 2011 SCHEDULE 8 - INVESTMENTS I. Investments in India in i. ii. Government Securities* Other approved Securities 144,725,282 35,578,239 40,749,514 5,700,880 30,287,161 257,041,076 105,956,983 26,350,671 29,457,022 5,202,314 25,401,318 192,368,308 As at 31st March 2010
iii. Shares iv. Debentures and Bonds v. Associates ** Security Receipts, RIDF Deposit and Pass Through Certificates (PTC)] Total *Refer Note 5 - Schedule 17 (Previous Year net of Repo ` 1,562.37 crore) II. Investments Outside India in i. ii. Shares Others [FCCBs, FCBs, Venture/ Private Equity and other similar funds] vi. Others [Units, Certificate of Deposits, Commercial Paper (CP),
104,524 3,344,273 3,448,797 260,489,873 1,052,897 29,440 3,531 1,078,806 4,622,074 5,700,880 11,026,240 57,595,021 343,798,268
61,986 2,417,476 2,479,462 194,847,770 805,107 17,287 3,531 818,863 4,383,451 5,202,314 9,714,569 33,226,015 254,302,285
Total Total Investments (I and II) ** Investment in Associates Equity Investment in Associates Add: Goodwill on acquisition of Associates (Share of pre-acquisition losses) Less: Capital reserve on Consolidation (Share of pre-acquisition profits) Cost of Investment in Associates Add: Post-acquisition profit/loss of Associates (Equity method) Total SCHEDULE 9 - ADVANCES A. (i) Bills purchased and discounted # (ii) Cash Credits Overdrafts and loans repayable on demand (iii) Term Loans # Bills purchased and discounted is net off Bills Rediscounted ` 956.38 crore (Previous Year ` 1,171.88 crore) Total B. (i) Secured by tangible assets * (ii) Unsecured Total * including advances secured against book debts C. Advances in India (i) Priority Sector
412,419,529 364,956,593 47,462,936 412,419,529
297,242,869 253,608,201 43,634,668 297,242,869
87,379,166 875,000 324,165,363 412,419,529
68,331,589 1,730,465 227,180,815 297,242,869 Its grt 2b 25
(ii) Public Sector (iii) Banks (iv) Others Total
37
(` in thousands)
As at 31st March 2011 SCHEDULE 10 - FIXED ASSETS A. Premises (Including Land) Gross Block At cost on 31st March of the preceding year Additions during the year Deductions during the year Total Depreciation As at 31st March of the preceding year Charge for the year Deductions during the year Depreciation to date Net Block B. Other Fixed Assets (including furniture and fixtures) Gross Block At cost on 31st March of the preceding year Additions during the year Deductions during the year Total Depreciation As at 31st March of the preceding year Charge for the year Deductions during the year Depreciation to date Net Block ( Refer Note 22 - Schedule 17 ) Total (A) +(B) SCHEDULE 11 - OTHER ASSETS I. II. Interest accrued Advance tax (net of provision for tax) 5,979,552 269,563 36,102 67,824 54,531 21,547,569 27,955,141 4,376,984 390,356 20,729 113,288 130,755 22,818,914 27,851,026 5,143,853 1,470,481 235,853 6,378,481 3,259,332 5,970,011 4,193,636 1,382,061 431,844 5,143,853 3,340,482 6,104,142 8,484,335 1,455,746 302,268 9,637,813 6,826,572 2,220,957 563,194 8,484,335 382,058 52,981 435,039 2,710,679 334,922 47,136 382,058 2,763,660 3,145,718 3,145,718 1,085,388 2,060,330 3,145,718 As at 31st March 2010
III. Stationery and Stamps IV. Non Banking assets acquired in satisfaction of claims V. Cheques in course of collection
VI. Others (Refer Note 21 - Schedule 17) Total
38
Its grt 2b 25
(` in thousands)
As at 31st March 2011 SCHEDULE 12 - CONTINGENT LIABILITIES I. II. Claims not acknowledged as debts Liability on account of outstanding forward exchange contracts 1,215,962 82,760,346 40,312,069 563,231 34,165,842 969,619 22,316,855 19,913,093 1,162,334 24,143,148 As at 31st March 2010
III. Guarantees on behalf of constituents in India IV. Guarantees on behalf of constituents outside India V. Acceptances, Endorsements and Other Obligations
VI. Other items for which the Group is contingently liable: Liability in respect of interest rate and currency swaps and forward rate agreements Liability in respect of other Derivative contracts Capital commitments Total 189,291,144 17,273,383 818,196 366,400,173 297,089,613 13,983,691 1,466,563 381,044,916
Schedules Forming Part of Consolidated Profit and Loss Account for the year ended 31st March 2011
Year ended 31st March 2011 SCHEDULE 13 - INTEREST EARNED I. II. Interest / discount on advances/bills Income from investments 47,108,483 13,551,878 230,906 523,085 61,414,352 35,263,701 10,185,483 69,068 493,349 46,011,601 Year ended 31st March 2010
III. Interest on balances with RBI and other inter-bank funds IV. Others Total SCHEDULE 14 - OTHER INCOME I. II. Commission exchange and brokerage Profit on sale of Investments (net)
13,487,057 4,431,857 (275,156) (1,262) 47,008 29,399,087 1,265,950 523,830 48,878,371
13,510,670 4,065,552 5,293,992 (43,917) 678,743 28,493,373 2,086,864 436,127 54,521,404
III. Profit/(Loss) on revaluation of investments of Insurance business IV. Loss on sale of building and other assets (net) V. Profit on exchange transactions (net)
VI. Premium on Insurance business VII. Profit on recoveries of non-performing assets acquired VIII.Miscellaneous Income Total
Its grt 2b 25
39
(` in thousands)
Schedules Forming Part of Consolidated Profit and Loss Account for the year ended 31st March 2011 (Contd.)
Year ended 31st March 2011 SCHEDULE 15 - INTEREST EXPENDED I. II. Interest on Deposits Interest on RBI / Inter-Bank Borrowings 13,566,067 5,189,905 7,589,520 26,345,492 8,374,295 3,240,647 6,113,633 17,728,575 Year ended 31st March 2010
III. Other Interest ( Refer Note 16 - Schedule 17 ) Total SCHEDULE 16 - OPERATING EXPENSES I. II. III. IV. V. VI. VII. Payments to and provision for employees [Refer Note 7 - Schedule 17 ] Rent, taxes and lighting [Refer Note 18 - Schedule 17 ] Printing and Stationery Advertisement, Publicity and Promotion Depreciation on Groups property Directors fees, allowances and expenses Auditors fees and expenses
15,223,449 2,158,555 466,058 1,418,094 1,523,462 11,025 40,817 227,128 1,226,569 1,242,450 254,150 729,830 1,755,345 2,909,209 260,366 17,724,621 10,361,522 2,464,593 59,997,243
12,609,547 2,254,757 342,115 1,313,012 1,429,197 4,515 35,835 211,163 1,023,490 1,005,574 185,898 581,821 1,408,780 2,876,243 200,555 26,222,536 4,966,829 1,996,638 58,668,505
VIII. Law Charges IX. X. XI. XII. Postage, telephones etc. Repairs and maintenance Insurance Travel and Conveyance
XIII. Professional Charges XIV. Brokerage XV. Stamping Expenses
XVI. Policyholders Reserves XVII. Insurance Business Expenses (Claims and benefits paid) XVIII. Other Expenditure Total
40
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Consolidated Financial Statements Accounting Policies & Notes
Schedules Forming Part of the Consolidated Balance Sheet and Profit and Loss Account
SCHEDULE 17 - SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO THE FINANCIAL STATEMENTS 1. BASIS OF CONSOLIDATION a. The Consolidated Financial Statements of Kotak Mahindra Bank Limited (the Bank or KMBL) are prepared in accordance with Accounting Standard 21 (AS-21), Consolidated Financial Statements and Accounting Standard 23 (AS-23), Accounting for Investments in Associates in Consolidated Financial Statements notified under the Companies (Accounting Standard) Rules, 2006 as amended. The Bank consolidates entities in which it holds, directly or indirectly, more than 50% of the voting rights or where it exercises control, on a line by line basis by adding together like items of assets, liabilities, income and expenses in accordance with AS-21. The Goodwill or Capital Reserve on consolidation represents the difference between the Groups share in the networth of the subsidiary and the cost of acquisition at the time of making the investment in subsidiary. Intragroup balances, intragroup transactions and resulting unrealised profits/ losses, if any, are eliminated in full. Minority interest representing the part of net results of operations and of the net assets of subsidiary attributable to interests not owned directly or indirectly through subsidiaries is presented separately from liabilities and the equity. The Bank and its subsidiaries which have been consolidated, constitute the Group. Further, the Group accounts for investments in entities where it holds 20% to 50% of the voting rights by the equity method of accounting in accordance with AS- 23. The financial statements of the subsidiaries, jointly controlled entities and associates used in consolidation are drawn up to the same date as that of the holding company i.e. 31st March 2011. The list of subsidiaries is as under: Name of the Subsidiary Country of Origin % Shareholding of group (31st March 2011) 100.00 100.00 100.00 74.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 % Shareholding of group (31st March 2010) 100.00 100.00 100.00 74.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
b.
Kotak Mahindra Prime Limited Kotak Securities Limited Kotak Mahindra Capital Company Limited Kotak Mahindra Old Mutual Life Insurance Limited Kotak Mahindra Investments Limited Kotak Mahindra Asset Management Company Limited Kotak Mahindra Trustee Company Limited Kotak Mahindra (International) Limited Kotak Mahindra (UK) Limited Kotak Mahindra, Inc. Global Investments Opportunities Fund Limited (GIOFL) * Kotak Investment Advisors Limited Kotak Mahindra Trusteeship Services Limited Kotak Forex Brokerage Limited Kotak Mahindra Pension Fund Limited Kotak Mahindra Financial Services Limited *
India India India India India India India Mauritius U.K. USA Mauritius India India India India U.A.E
Global Investments Opportunities Fund Limited (GIOFL) is a collective investment scheme set up as a fund in Mauritius with the status of a limited company under the Mauritius Companies Act. GIOFL has a class structure wherein there are different classes of redeemable participating shares. Each class of participating shares has its own Balance Sheet and Profit and Loss account. The profit /loss of each such class belongs to the participating shareholders of that class. The management shareholder is not entitled to any beneficial interest in the profit/loss of various classes nor is required to make good any shortfall. In substance there are no direct or indirect economic benefits received by the management shareholders. The substance over form must prevail. The Groups investment is only in management shares. Accordingly, GIOFL is consolidated in respect of management shares of the entity having regard to substance over form of the entity.
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41
Schedules Forming Part of the Consolidated Balance Sheet and Profit and Loss Account (Contd.)
c. As per AS-23, the Consolidated Financial Statements incorporate the results of the following associates except as indicated. Name of the Associate Country of Origin % Shareholding of group (31st March 2011) 49.99 49.00 48.99 31.26 % Shareholding of group (31st March 2010) 49.99 30.00 49.00 48.96 31.26
Infina Finance Private Limited
India
Kotak Mahindra Asset Reconstruction Company Limited (**) India Phoenix ARC Private Limited ACE Derivatives & Commodity Exchange Limited (formerly known as Ahmedabad Commodity Exchange Limited) (#) Matrix Business Services India Private Limited (Unaudited) India India India
(**) The financial statements of Kotak Mahindra Asset Reconstruction Company Limited have not been consolidated under AS-23, as other than temporary diminution in the value of the same is fully provided for. Effective 19th March 2011 Kotak Mahindra Asset Reconstruction Company Limited has been dissolved under Section 560 of the Companies Act, 1956. (#) Effective 17th June 2010, ACE made a preferential allotment and consequently the stake of Group decreased to 42.19%. Further, on 12th August 2010, ACE made preferential allotment to selected shareholders including the Group and the Group also acquired additional stake from an existing shareholder. Consequently, the Group stake in ACE increased to 48.99%. The Group has accounted its share of profit / loss of ACE considering its effective stake on a pro rata basis.
2.
SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO CONSOLIDATED FINANCIAL STATEMENTS A. ACCOUNTING METHODOLOGY The Financial Statements have been prepared on historical cost basis of accounting. The Group adopts the accrual system of accounting and the financial statements conform with the Accounting Standards notified under the Companies (Accounting Standard) Rules, 2006 as amended, guidelines issued by the Reserve Bank of India (RBI), Insurance Regulatory and Development Authority (IRDA) from time to time as applicable to relevant companies and the generally accepted accounting principles prevailing in India. In case the accounting policies followed by a subsidiary are different from those followed by Bank, the same have been disclosed separately. The preparation of financial statements requires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as on the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Actual results could differ from these estimates. B. REVENUE RECOGNITION a. Banking/ Investing Activity: i. ii. Interest income is recognised on accrual basis except in case of non-performing assets where it is recognised, upon realisation, as per RBI guidelines. Penal interest is recognised as income on realisation. Interest income in respect of retail advances {except for the subsidiary, Kotak Mahindra Prime Limited (KMPL)} is accounted for by using the internal rate of return method to provide a constant periodic rate of return on the net investment outstanding on the contract. KMPL accrues for auto finance income (including service charges and incentives) by using the internal rate of return method to provide a constant periodic rate of return after adjustment of brokerage expenses on the net investment outstanding on the contract. The volume-based incentives and brokerage are accounted as and when the said volumes are achieved. Income also includes gains made on termination of contracts. Service charges, Fees and Commission income are recognised when due except for guarantee commission which is recognised over the period of the guarantee, except as indicated in para iii above. Interest income on discounted instruments is recognised over the tenure of the instruments so as to provide a constant periodic rate of return. Gain on account of securitisation of assets is amortised over the life of the securities issued in accordance with the guidelines issued by the RBI.
iii.
iv. v. vi.
42
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vii. Gain on account of assignment of assets on bilateral basis is recognised, based on the difference between the book value of the assigned assets and sale consideration received. In respect of non-performing assets acquired from other banks and NBFCs, collections in excess of the consideration paid at each asset level or portfolio level is treated as income in accordance with RBI guidelines and clarifications. Issue management fees, underwriting commission, financial advisory fees and placement fees are accounted on completion of milestones specified in the contract. Brokerage and clearing fees are recognised as on the date of transaction. Premium is recognised as income when it is due from policyholders except on unit linked policies, where the premium is recognised when associated units are created. Uncollected premium on lapsed policies is not recognised as income until revived. Top Up/ Lump sum contributions are accounted as a part of the single premium. Income from linked policies, which include asset management fees and other charges, if any, are recovered from the linked fund in accordance with the terms and conditions of the policies. Re-insurance premium ceded is accounted as an expense at the time of recognition of the premium income in accordance with the treaty arrangements with the re-insurers. Commission on re-insurance ceded is accounted as income in the period in which reinsurance is ceded. Re-insurance premium and re-insurance commission are recognised over the period of the risk. Placement and other fee based income are accounted for on the basis of the progress of the assignment. Brokerage Income (net of service tax):

viii. Dividend income is accounted on an accrual basis when the right to receive the dividend is established. ix. b.
Investment Banking Activity: i. ii.
c.
Insurance Activity: i. ii. iii. iv. v. vi. vii.
d.
Broking Activity: i. ii.
On fixed deposit is accounted on completion of the transaction. On primary market subscription / mobilisation is accounted on receipt of intimation of allotment. On secondary market transaction is recognised on the date of the transaction.
iii. iv. v.
Incentive on primary market subscription / mobilisation is accounted on the basis of receipt of intimation of allotment. In respect of depository activity, transaction fees (net of service tax) are recognised on completion of transaction. Account maintenance charges are recognised on time basis over the period of contract. Portfolio management fees are accounted on accrual basis as follows: a. b. c. In case of fees based on fixed percentage of the corpus / fixed amount, income is accrued over the period of the agreement. In case of fees, based on the returns of the portfolio, income is accounted on the termination of the portfolio agreement/ on each anniversary as per the agreement, whichever is earlier. In case of upfront non-refundable fee, income is accounted in the year of receipt.
e.
Asset Management: i. Management fee from mutual funds is recognised at specific rates agreed with the relevant schemes, applied on the average daily net assets of each scheme (excluding inter-scheme investments, where applicable, and investments made by the Company in the respective scheme), and are in conformity with the limits specified under SEBI (Mutual Funds) Regulations, 1996. Management fee from venture funds, private equity funds and other similar funds is recognised on accrual basis at the rates specified in the investment management agreement from the date of initial closing of funds under management. Portfolio Advisory Service income is recognised on accrual basis as per the terms of the contract.
ii. iii. C.
FIXED ASSETS AND INTANGIBLE ASSETS Fixed assets/Intangible assets have been stated at cost inclusive of incidental expenses less accumulated depreciation/amortisation. DEPRECIATION/ AMORTISATION: The Group has adopted the Straight Line Method of depreciation so as to write off 100% of the cost of the assets at rates higher than those prescribed under Schedule XIV to the Companies Act, 1956 for all assets other than premises, based on the Managements estimate of useful lives of these assets. Estimated useful lives over which assets are depreciated are as follows: Its grt 2b 25
43
Asset Type Premises Improvement to leasehold premises Office equipments (chillers, transformers, UPS & DG set) Office equipments (other than above) Computers Furniture and Fixtures Vehicles ATMs Software (including development) expenditure Forex Broking Business Rights Goodwill (Other than on consolidation) Membership Card of the Bombay Stock Exchange Limited Useful life in years 58 Over the period of lease subject to a maximum of 6 years 10 5 3 6 4 5 3 10 5 20
Assets costing less than ` 5,000 are fully depreciated in the year of purchase. D. EMPLOYEE BENEFITS i Provident Fund Defined Contribution Plan: Contribution as required by the Statute made to the Government Provident Fund is debited to the Profit and Loss Account when incurred. ii Gratuity Defined Benefit Plan: The Group accounts for the liability for future gratuity benefits based on an actuarial valuation conducted by an independent actuary. The Bank makes contribution to a Gratuity Fund administered by trustees and managed by a life insurance company. In other entities gratuity obligation is wholly unfunded. The net present value of the Groups obligation towards the same is actuarially determined based on the projected unit credit method as at the Balance Sheet date. iii iv Actuarial gains/losses are recognised immediately in the Profit and Loss account and are not deferred. Superannuation Fund Defined Contribution Plan: The Group contributes a sum equivalent to 15% of eligible employees salary subject to a maximum of ` 1 lakh per eligible employee per annum, to the Superannuation Funds administered by trustees and managed by a Life Insurance Company. The Group recognises such contributions as an expense in the year they are incurred. v Compensated Absences - Other Long-Term Employee Benefits: The Group accrues the liability for compensated absences based on the actuarial valuation as at the Balance Sheet date conducted by an independent actuary. The net present value of the Groups obligation is determined based on the projected unit credit method as at the Balance Sheet date. vi Other Employee Benefits: The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognised during the period when the employee renders the service. These benefits include performance incentives. E. INVESTMENTS For The Bank 1. Classification: In accordance with the RBI guidelines, investments are categorised into Held for Trading, Available for Sale and Held to Maturity and further classified under six groups, namely, Government Securities, Other Approved Securities, Shares, Debentures and Bonds, Investments in Associates and Other Investments for the purpose of disclosure in the Balance Sheet. i. ii. Investments that are held for resale within 90 days from the date of purchase are classified as Held for Trading. Investments that the Bank intends to hold to maturity are classified as Held to Maturity.
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iii. 2. Investments which are not classified in the above categories are classified as Available for Sale. Valuation: The cost of investments is determined on weighted average basis. Broken period interest on debt instruments is treated as revenue item. The transaction costs including brokerage, commission etc. paid at the time of acquisition of investments is charged to profit and loss. The valuation of investments is made in accordance with the RBI guidelines as indicated hereunder: a. Held for Trading / Available for sale Each security in this category is revalued at the market price or fair value and the net depreciation of each group is recognised in the Profit and Loss Account. Net appreciation, if any, is ignored. Further, provision for diminution other than temporary is made for, at the individual security level. Held to Maturity These are carried at their acquisition cost. Any premium on acquisition of debt instruments is amortised over the balance maturity of the security on a straight-line basis. Any diminution, other than temporary, in the value of securities, is provided for. The market value of investments where market quotations are not available is determined as per the norms laid down by the RBI. c. Repurchase and reverse repurchase transactions Securities sold under agreements to repurchase (Repos) and securities purchased under agreements to resell (Reverse Repos) are accounted as collateralised borrowing and lending transactions respectively. The difference between the consideration amount of the first leg and the second leg of the repo is recognised as interest income/interest expense over the period of the transaction (Refer Note 5).
b.
3.
Transfer between categories: Transfer between categories is done, in accordance with RBI guidelines, at the lower of acquisition cost/ book value / market value on the date of the transfer and depreciation, if any, on such transfer is fully provided for.
4.
Profit or loss on sale / redemption of investments a. b. Held for Trading and Available for Sale: Profit or loss on sale/redemption is included in the Profit and Loss Account. Held to Maturity: Profit on sale/redemption of investments is included in the Profit and Loss Account and is appropriated to Capital Reserve after adjustments for tax and Statutory Reserve transfer. Loss on sale/redemption is charged off to the Profit and Loss Account. For the insurance company: a. b. Investments are recorded at cost on trade which includes brokerage, transfer charges, transaction taxes as applicable, etc. but excludes preacquisition interest, if any and service tax where cenvat credit is being claimed. Investments maturing within twelve months from the Balance Sheet date and investments made with the specific intention to dispose them off within twelve months from the Balance Sheet date are classified as Short Term Investments. Investments other than Short Term Investments are classified as Long Term Investments. Valuation Shareholders Investments and non-linked policy-holders investments c. All debt securities are considered as held to maturity for the purpose of valuation and are accordingly recorded at historical cost (excluding interest paid, if any). Debt securities including Government securities are stated at net amortised cost. The premium/discount, if any, on purchase of debt securities is amortised / accreted over the period to maturity on a straight line basis. Listed equity shares as at Balance Sheet date are stated at fair value being the lower of last quoted closing price on Bombay Stock Exchange Limited (BSE) and the National Stock Exchange Limited (NSE). Equity shares awaiting listing are stated at historical cost subject to provision for diminution, if any. Unrealised gains/ losses arising due to changes in the fair value of listed equity shares are taken to Fair Value Change Account and carried forward to Balance Sheet where the net balance is positive. Negative balance in the Fair Value Change Account is recognised in the Profit and Loss Account to the extent of negative balance in Fair Value Change Account as reduced by the amount previously provided in the Profit and Loss Account. The profit or loss on actual sale of listed equity includes the accumulated changes in the fair value previously recognised under Fair Value Change Account. In case of impairment in the value of investment as at the balance sheet date which is other than temporary, the amount of loss is recognised as an expense in the Profit and Loss Account to the extent of difference between the remeasured fair value of the investment and its acquisition cost as reduced by any previous impairment loss is recognised as expense in Profit and Loss Account. Any reversal of impairment loss, earlier recognised in Profit and Loss Account, is recognised in the Profit and Loss Account.
d.
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45
Valuation Unit linked Business e. All Government securities, except treasury bills, for linked business are valued at prices obtained from Credit Rating Information Service of India Limited (CRISIL). Debt Securities other than Government Securities are valued on the basis of CRISIL Bond valuer. Floating rate instruments are valued at cost. The discount on purchase of treasury bills, certificate of deposit and commercial papers are amortised over the period to maturity on a straight-line basis. Listed equity shares are valued at fair value, being the last quoted closing price on the NSE (In case of securities not listed on NSE, the last quoted closing price on the BSE is used). Equity shares awaiting listing are stated at historical cost subject to provision for diminution, if any, in the value of such investment determined separately for each individual investment. Unrealised gains and losses are recognised in the Profit and Loss Account. Mutual Fund Units are valued at the previous days closing Net Asset Value (NAV) of the fund in which they are invested. Transfer of investments from shareholders fund to the policyholders fund is at the book value or market price whichever is lower. Transfer of debt securities from shareholders fund to the policyholders fund is transacted at the lower of net amortised cost or market price. Transfer of investment between unit linked funds is done at market price. Gain/ Loss on transfer/ sale of securities is the difference between the transfer/sale price and the net amortised cost/ book value which is computed on a weighted average basis as on the date of transfer/sale. Sale consideration for the purpose of realised gain/loss is net of brokerage and taxes, if any. For other entities: As required by Accounting Standard 13 (AS-13) notified under the Companies (Accounting Standard) Rules, 2006 as amended, Accounting for Investments, investments are classified into long term investments and current investments. Investments, which are intended to be held for more than one year, are classified as long term investments and investments, which are intended to be held for less than one year, are classified as current investments. Long term investments are accounted at cost and any decline in value, other than temporary is provided for. Current investments are valued at cost (calculated by applying weighted average cost method) or market / fair value whichever is lower. Securities acquired with the intention to trade are considered as Stock-inTrade. Investments classified as Stock-in-Trade by some of the subsidiaries are valued at cost (calculated by applying weighted average cost method) or market price, whichever is lower. Brokerage, stamping and additional charges paid are included in the cost of investments. F. FOREIGN CURRENCY AND DERIVATIVE TRANSACTIONS For the bank: i. ii. iii. Foreign currency assets and liabilities are translated at the Balance Sheet date at rates notified by the Foreign Exchange Dealers Association of India (FEDAI). Income and Expenditure items are translated at the rates of exchange prevailing on the date of the transaction except for representative office expenses which are translated at the monthly average rate of exchange. Foreign Exchange contracts (other than deposit and placement swaps) outstanding at the Balance Sheet date are revalued at rates notified by FEDAI and resulting profits or losses are included in the Profit and Loss Account. Foreign exchange swaps linked to foreign currency deposits and placements are translated at the prevailing spot rate at the time of swap. The premium / discount on the swap arising out of the difference in the exchange rate of the swap date and the maturity date of the underlying forward contract is amortised over the period of the swap and the same is recognised as income/ expense. Notional amounts of derivative transactions comprising of forwards, swaps, futures and options are disclosed as off-balance sheet exposures. The swaps are segregated into trading or hedge transactions. Trading swaps outstanding as at the Balance Sheet dates are marked to market and the resulting profits or losses, are recorded in the Profit and Loss Account. Outstanding derivative transactions designated as Hedges are accounted on an accrual basis over the life of the transaction. Option premium paid/ received is accounted for in the Profit and Loss Account on expiry of the option. Contingent liabilities at the Balance Sheet date on account of outstanding foreign exchange contracts are restated at year end rates reported by FEDAI. Transactions in foreign currencies are recorded at the rate of exchange prevailing on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are restated at the rate of exchange ruling at the Balance Sheet date.
f.
g. h.
i.
iv.
v.
For other entities: vi. vii.
viii. Exchange differences arising on settlement of the transaction and on account of restatement of assets and liabilities are dealt with in the Profit and Loss Account. In case of items which are covered by forward exchange contracts entered to hedge the foreign currency risk, the difference between the year end rate and the rate on the date of the contract is recognised as
46
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exchange difference in Profit and Loss Account and the premium paid on forward contracts is recognised over the life of the contract. ix. The financial statements of all subsidiaries incorporated outside India which are in the nature of non-integral foreign operations are converted on the following basis: (a) Income and expenses are converted at the average rate of exchange applicable for the year and (b) All assets and liabilities are translated at the closing rate as on the Balance Sheet date. The exchange difference arising out of year end translation is debited or credited as Foreign Currency Translation Reserve forming part of Reserves and Surplus. Interest rate/ Currency swaps: x. The outstanding swap trades at the Balance Sheet date are disclosed at the contract amount. The swaps which are in the nature of hedges are accounted on an accrual basis; these contracts are not marked to market. Accrued interest is adjusted against the interest cost/income of the underlying liability/asset. The foreign currency balances on account of principal of currency swaps outstanding as at the Balance Sheet date are revalued using the closing rate. Currency options: xi. The outstanding option trades, in the nature of hedge, at the Balance Sheet date are disclosed at the contract amount. The premium paid is amortised over the life of the contract. Equity index/ equity futures/ equity index/ equity options/embedded derivatives: xii. Outstanding derivative contracts, including embedded derivatives, are measured at fair value as at each Balance Sheet date. Fair value of derivatives is determined using quoted market prices in an actively traded market, for the instrument, wherever available, as the best evidence of fair value. In the absence of quoted market prices in an actively traded market, a valuation technique is used to determine the fair value. In most cases the valuation techniques use as input parameters observable market data in order to ensure reliability of the fair value measure.
xiii. The marked to market on derivative contracts is determined on a portfolio basis with net unrealised losses being recognised in the Profit and Loss Account. Unrealised gains are not recognised in Profit and Loss Account on grounds of prudence as enunciated in Accounting Standard 1, (AS-1) Disclosure of Accounting Policies notified under the Companies (Accounting Standard) Rules, 2006 as amended. xiv. Initial Margin-Equity/ Index Derivative Instrument representing the initial margin paid and /or additional margin paid over and above the initial margin, for entering into contracts for equity index/ stock futures and equity index/ stock options, which are released on final settlement / squaringup of the underlying contracts, are disclosed under other assets. Deposit for Mark to Market Margin - Equity / Index Derivative Instrument representing the deposit paid in respect of mark to market margin is disclosed under other assets. xv. On final settlement or squaring up of contracts for equity index/ stock futures, the realised profit or loss after adjusting the unrealised loss already accounted, if any, is recognised in the Profit and Loss Account and shown as Profit / (Loss) on derivatives.
xvi. On settlement or squaring up of equity index/ stock options before expiry, the premium paid or received outstanding on that date is recognised in the Profit and Loss Account. xvii. When more than one contract in respect of the relevant series of equity index/ stock futures or equity index/ stock options contract to which the squared-up contract pertains is outstanding at the time of the squaring-up of the contract, the contract price of the contract so squared-up is determined using the weighted average cost method for calculating the profit/loss on squaring-up. G. ADVANCES i. ii. Advances are classified into standard, sub-standard, doubtful and loss assets in accordance with the RBI guidelines and are stated net of provisions made towards non-performing assets. Provision for non-performing assets comprising sub-standard, doubtful and loss assets is made in accordance with the RBI guidelines. In addition, the Group adopts an approach to provisioning that is based on past experience, evaluation of security and other related factors. In accordance with RBI guidelines the Bank has provided general provision on standard advances at uniform rate of 0.40% except in case of direct advances to agricultural and SME sectors which are provided at 0.25%, commercial real estate sector at 1.00% and teaser rate housing loans at 2.00%. Excess standard asset provision resulting from revision in provisioning rates is not written back in Profit and Loss Account in accordance with the RBI guidelines and clarifications. Effective 17th January, 2011, the Non-Banking Finance Company (NBFC) subsidiaries provide general provision on standard assets at 0.25% in accordance with RBI guidelines. iv. Amounts paid for acquiring non-performing assets from other banks and NBFCs are considered as advances. Actual collections received on such non-performing assets are compared with the cash flows estimated while purchasing the asset to ascertain
iii.
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47
overdue. If the overdue is in excess of 90 days, the Bank classifies such assets into sub-standard, doubtful or loss as required by the RBI guidelines on purchase of non-performing assets. In respect of NBFCs, if the overdue is in excess of 180 days, then the assets are classified into sub-standard, doubtful and loss as required by the RBI guidelines on purchase of non performing assets. H. STRUCTURED LIABILITIES The Group has issued structured liabilities wherein the return on these liabilities is linked to non-interest benchmarks. Such structured liabilities have an embedded derivative which is the non-interest related return component. The embedded derivative is separated and accounted separately {Refer Note 2 (F)(xii)}. The resultant debt component of such structured liabilities is recognised in the Balance Sheet under Secured loans and is measured at amortised cost using yield to maturity basis. I. LIABILITY FOR POLICIES i Provision is made for policy liabilities in respect of all in force policies and lapsed policies that are likely to be revived in future based on actuarial valuation done by the Appointed Actuary in accordance with accepted actuarial practices, requirements of IRDA and the Institute of Actuaries of India. Liabilities in respect of unit-linked policies which have lapsed and are not likely to be revived, are shown as Policyholders liabilities until expiry of the revival period. Linked liabilities comprise of unit liability representing the fund value of policies. Actuarial method and assumptions: The actuarial liabilities have been calculated in accordance with generally accepted actuarial principles, the requirements of the Insurance Act 1938, IRDA regulations and the prescribed guidance notes of the Institute of Actuaries of India. In respect of unit linked policies, a unit reserve equal to the value of units as on the Balance Sheet date and an additional non-unit reserve calculated on gross premium prospective valuation method is created. The method adopted for par policies (accumulation contracts) is the value of the accumulated fund and an additional non-unit reserve calculated on gross premium prospective valuation method. For non-par conventional business the gross premium prospective method is used. Additional reserve on lapsed unit-linked policies is created and shown as Policyholders Funds. The assumptions used in the Gross Premium valuation are based on conservative best estimates together with appropriate margins for adverse deviations from experience. The principal assumptions are interest, inflation, return to policyholders accounts, lapses, expenses, mortality and morbidity. Reserves for group life business are calculated as the risk premium for the unexpired term with an allowance for expenses and a margin for adverse deviations.
ii iii J. i
ACTUARIAL METHOD LIFE INSURANCE
ii
iii K.
DISCOUNTED INSTRUMENTS The liability is recognised at face value at the time of issuance of discounted instruments. The discount on the issue is amortised over the tenure of the instrument.
L.
ACQUISITION COSTS Acquisition costs such as commission and medical fees are costs that vary with and are primarily related to the acquisition of new and renewal insurance contracts. Such costs are recognised in the year in which they are incurred.
M.
TAXES ON INCOME The Income Tax expense comprises Current tax and Deferred tax. Current tax is measured at the amount expected to be paid in respect of taxable income for the year in accordance with the Income tax Act, 1961. Deferred tax adjustments comprises of changes in the deferred tax assets and liabilities. Deferred tax assets and liabilities are recognised for the future tax consequences of timing differences being the difference between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets arising mainly on account of carry forward losses and unabsorbed depreciation under tax laws are recognised only if there is virtual certainty of its realisation, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantially enacted at the Balance Sheet date. Changes in deferred tax assets / liabilities on account of changes in enacted tax rates are given effect to in the Profit and Loss Account in the period of the change. The carrying amount of deferred tax assets are reviewed at each Balance Sheet date. The Group writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realised. Deferred tax assets and deferred tax liabilities across various entities are not set off against each other as the Group does not have a legal right to do so.
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N. SEGMENT REPORTING In accordance with guidelines issued by RBI vide DBOD.No.BP.BC.81/21.01.018/2006-07 dated 18th April 2007 and Accounting Standard 17 (AS-17) on Segment Reporting notified under the Companies (Accounting Standard) Rules, 2006 as amended, the Groups business has been segregated into the following segments whose principal activities were as under: Segment Treasury, Investments and BMU Principal activity Dealing in debt, equity, money market, forex market, derivatives and investments and primary dealership of Government securities and Balance Sheet Management unit (BMU) responsible for Asset Liability Management Includes: (1) Lending Commercial vehicle finance, personal loans, home loans, agriculture finance, other loans/services and exposures which fulfill the four criteria for retail exposures laid down in Basel Committee on Banking Supervision document International Convergence of Capital Measurement and Capital Standards : A Revised Framework (2) Branch Banking Retail borrowings covering savings, current and term deposit accounts and Branch Banking network and services including distribution of financial products. (3) Corporate/ Wholesale Banking Vehicle Financing Other Lending Activities Broking Advisory and Transactional Services Credit cards Receivables/loans relating to credit card business. Wholesale borrowings and lendings and other related services to the corporate sector which are not included in Retail Banking. Retail vehicle finance and wholesale trade finance Financing against securities, securitisation and other loans/ services not included under Retail Banking and Corporate/Wholesale Banking Brokerage income on market transactions done on behalf of clients, interest on delayed payments, distribution of financial products and forex broking. Providing financial advisory and transactional services such as mergers and acquisition advice and equity/debt issue management services and revenue from being a professional clearing member. Management of investments on behalf of clients and funds. Life insurance
Retail Banking
Asset Management Insurance
The above segments have been identified based on the organisation structure, the customer segment, products and services offered and its relation to risk and reward, and the internal reporting process. A transfer pricing mechanism between segments has been established to arrive at interest cost on the borrowings of the segments based on borrowing costs, maturity profile of assets/liabilities etc. and which is disclosed as part of Segment Revenue. Segment revenues consists of earnings from external customers and inter-segment revenue as stated above. Segment expenses consist of interest expenses including those allocated, operating expenses and provisions. Segment results are net of segment revenue and segment expenses. Segment assets include assets related to segments and exclude tax related assets. Segment liabilities include liabilities related to the segment excluding net worth, minority interest and employees stock option (grants outstanding), proposed dividend and dividend tax thereon. Since the business operations of the Group are primarily concentrated in India, the Group is considered to operate only in the domestic segment. O. EMPLOYEE STOCK OPTION SCHEME Equity-settled scheme: The Bank has formulated Employee Stock Option Schemes (ESOSs) in accordance with Securities and Exchange Board of India (Employee Stock Option Scheme) Guidelines, 1999. The Schemes provide for grant of options to employees of the Group to acquire the equity shares of the Bank that vest in cliff vesting or in a graded manner and that are to be exercised within a specified period. In accordance with the SEBI Guidelines and the guidance note on Accounting for Employee Share-based payments issued by The Institute of Chartered Accountants of India, the excess, if any, of the market price of the share preceding the date of grant of the option under ESOSs over the exercise price of the option is amortised on a straight-line basis over the vesting period. Its grt 2b 25
49
Where the terms of an equitysettled award are modified, the minimum expense recognised in Payments to and provision for employees is the expense as if the terms had not been modified. An additional expense is recognised for any modification which increases the total intrinsic value of the sharebased payment arrangement, or is otherwise beneficial to the employee as measured at the date of modification. Cash-settled scheme: The cost of cash-settled transactions (stock appreciation rights) is measured initially using intrinsic value method at the grant date taking into account the terms and conditions upon which the instruments were granted. This intrinsic value is amortised on a straight-line basis over the vesting period with a recognition of corresponding liability. This liability is remeasured at each Balance Sheet date up to and including the settlement date with changes in intrinsic value recognised in Profit and Loss Account in Payments to and provision for employees. P. CLAIMS/ BENEFITS Benefits paid comprise of policy benefit amount, surrenders and specific claims settlement costs where applicable and change in the outstanding provision for claims at the year end. Surrender and claims by death are accounted when intimated. Survival benefits are accounted when due. Maturity claims are accounted on the date of maturity. Amounts recoverable from reinsurers are accounted for in the same period as the related claim. Repudiated claims disputed before judicial authorities are provided for based on the best judgment of the management considering the facts and evidence in respect of each such claim. Withdrawals under unit-linked policies are accounted in respective schemes when the associated units are cancelled. Q. SECURITISATION The Group enters into arrangements for sale of loans through Special Purpose Vehicles (SPVs). In most cases, post securitisation, the Group continues to service the loans transferred to the SPV. The Group also provides credit enhancement in the form of cash collaterals and / or by subordination of cash flows to Senior Pass Through Certificate (PTC) holders. In respect of credit enhancements provided or recourse obligations (projected delinquencies, future servicing etc.) accepted by the Group, appropriate provision / disclosure is made at the time of sale in accordance with Accounting Standard 29, (AS-29) Provisions, Contingent Liabilities and Contingent Assets notified under the Companies (Accounting Standard) Rules, 2006 as amended. The gain/ premium on account of securitisation of assets at the time of sale is computed as the difference between the sale consideration and the book value of the securitised asset amortised over the tenure of the securities issued. The loss on account of securitisation is recognised immediately in Profit and Loss Account. R. LEASES Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term, are classified as operating leases. Operating lease payments are recognised as an expense in the Profit and Loss Account on a straight-line basis over the lease term. Assets subject to operating leases are included in fixed assets. Lease income is recognised in the Profit and Loss Account on a straight-line basis over the lease term. Initial direct costs in respect of operating leases such as legal costs, brokerage costs, etc. are recognised immediately in the Profit and Loss Account. Assets given under a finance lease are recognised as a receivable at an amount equal to the net investment in the lease. S. PROVISIONS AND CONTINGENCIES Provision is recognised when there is a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Provision is made for Credit card reward points based on reward points accrued to the customer at balance sheet date. Contingent Liabilities are not recognised but are disclosed in the notes unless the outflow of resources is remote. Contingent assets are neither recognised nor disclosed in the financial statements. T. EARNINGS PER SHARE Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period are adjusted for events of bonus issue and stock split. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares. U. IMPAIRMENT The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/ external factors.
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V. CASH AND CASH EQUIVALENTS Cash and cash equivalents in the balance sheet comprise Cash in hand, Balances with Reserve Bank of India and Balances with Banks and Money at Call and Short Notice (including the effect of changes in exchange rates on cash and cash equivalents in foreign currency). 3. In August 2010, the Bank allotted 1,64,00,000 equity shares of ` 10 each at a premium ` 823 per equity share for a total consideration of ` 1366.12 crore on a preferential basis to Sumitomo Mitsui Banking Corporation. The net issue expenses of ` 0.58 crore related to the aforesaid issue have been charged to the securities premium account as allowed under section 78 of the Companies Act, 1956. The above expenses include ` 0.08 crore paid to the auditors in connection with the issue. Pursuant to the approval of the shareholders at the Annual General Meeting held on 21st July 2010, each equity share of the Bank having face value of ` 10 fully paid up was sub-divided into two equity shares of the face value of ` 5 each fully paid up as at 14th September 2010. Till 31st March 2010, the Bank used to account for market repurchase and reverse repurchase transactions in government securities and corporate debt securities, if any, as sale and repurchase transactions. However, as per RBI circular no. RBI/2009-2010/356 IDMD/ 4135/ 11.08.43/2009-10 dated 23rd March 2010, the Bank has started accounting for such transactions as borrowing and lending transactions, effective 1st April 2010. If the Bank had continued to account the repurchase and reverse repurchase transactions as sale and repurchase at 31st March 2011, the investments would have been lower by ` 561.89 crore and the Balances with Banks and Money at call and short notice and Borrowings would have been lower by ` 51.07 crore and ` 612.96 crore respectively. The Group charges off to the Profit and Loss Account all expenses related to acquisition costs of advances in the year in which they are incurred. KMPL, a subsidiary of the Bank, charges off such costs based on the Internal Rate of Return of a contract. On account of this difference in accounting policy, unamortised brokerage amounting to ` 53.79 crore (previous year ` 47.76 crore) is carried forward in the Balance Sheet under Other Assets. EMPLOYEE BENEFITS a. The Group has recognised the following amounts in the Profit and Loss Account towards contributions to Provident Fund and Other Funds. Provident Fund Superannuation Fund b. ` 54.46 crore (Previous Year ` 44.39 crore) ` 0.95 crore (Previous Year ` 0.96 crore)
4.
5.
6.
7.
In accordance with Indian regulations, the Group provides for gratuity, a defined benefit retirement plan covering all employees. The plan provides a lump sum payment to vested employees at retirement or on termination of employment based on the respective employees salary and the years of employment with the Group subject to maximum of ` 0.10 crore. The gratuity benefit is provided to the employees of the Bank through a fund administered by a Board of Trustees and managed by a life insurance company. The Bank is responsible for settling the gratuity obligation through contributions to the fund. The plan is fully funded. In respect of other companies in the Group, the gratuity obligation is wholly unfunded.
c.
Reconciliation of opening and closing balance of the present value of the defined benefit obligation for gratuity benefits is given below. ` in crore As on 31st March 2011 Funded Change in benefit obligations Liability at the beginning of the year Current Service cost Interest cost Actuarial (gain)/loss on obligations Past Service cost Actuarial (gain)/loss due to curtailment Liability assumed on transfer of employees Benefits paid Liability at the end of the year 22.19 6.43 2.15 4.12 9.01 0.43 (4.48) 39.85 17.15 5.24 1.71 (0.37) 6.42 (0.57) (2.78) 26.80 19.75 6.09 1.73 (0.49) (0.58) (4.31) 22.19 13.79 4.42 1.24 (0.42) (0.20) 0.20 (1.88) 17.15 Others As on 31st March 2010 Funded Others
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` in crore As on 31st March 2011 Funded Change in plan assets Fair value of plan assets at the beginning of the year Expected return on plan assets Actuarial Gain Benefits paid Employer contributions Fair value of plan assets as at the end of the year 25.63 1.94 0.64 (4.48) 10.93 34.66 15.39 1.17 4.61 (4.31) 8.77 25.63 ` in crore As on 31st March 2011 Funded Fair value of plan assets as at the end of the year Liability at the end of the year Net Asset/ (Liabilities) included in Others under Other Assets and Others Liabilities Expenses recognised for the period Current service cost Interest cost Expected return on plan assets Actuarial (gain)/loss Actuarial (gain)/loss due to curtailment Past Service cost Net gratuity expense included in [payments to and provision for employees] under Operating Expenses [Schedule 16 (I)] Actual return on plan assets 6.43 2.15 (1.94) 3.48 9.01 5.24 1.71 (0.37) 6.42 6.09 1.73 (1.17) (5.10) 4.42 1.24 (0.42) (0.20) 34.66 39.85 Others 26.80 As on 31st March 2010 Funded 25.63 22.19 Others 17.15 Others As on 31st March 2010 Funded Others
Reconciliation of present value of the obligation and the fair value of the plan Assets
(5.19)
(26.80)
3.44
(17.15)
19.13 2.57
13.00
1.55 5.78
5.04 ` in crore
As on 31st March 2011 Funded Reconciliation of the Liability recognised in the Balance Sheet Net (Asset)/ Liability at the beginning of the year Expense recognised Liability assumed on transfer of employees Employer contributions/ Transfers Net (Asset)/ Liability is included in Others under Other Assets and Other Liabilities Investment details of plan assets The plan assets are invested in insurer managed funds. (3.44) 19.13 0.43 (10.93) 17.15 13.00 (0.57) (2.78) Others
As on 31st March 2010 Funded Others
4.36 1.55 (0.58) (8.77)
13.79 5.04 0.20 (1.88)
5.19
26.80
(3.44)
17.15
52
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Actuarial assumptions used As on 31st March 2011 Interest rate Salary escalation rate 8.26% p.a 15% p.a. for first 2 yr, 10% p.a. for next 2 yrs & 6% p.a. thereafter Expected rate of return on plan assets 7.50% p.a. As on 31st March 2010 8.01% p.a. 15% p.a. for first 2 yr, 10% p.a for next 2 yrs & 6% p.a. thereafter 7.50% p.a.
The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors. The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled. Experience adjustments Amounts for the current and previous four years are as follows: ` in crore Gratuity 2011 Defined benefit obligation Plan assets Surplus / (deficit) Experience adjustments on plan liabilities Experience adjustments on plan assets 66.65 34.66 (31.99) 2.11 0.64 2010 39.34 25.63 (13.71) (0.93) 4.61 Year ended 31st March 2009 33.54 15.39 (18.15) (4.95) (3.58) 2008 25.55 13.96 (11.59) 0.76 1.38 2007 15.95 9.26 (6.69) 1.68 0.49
The Bank expects to contribute ` 6.00 crore to gratuity fund in financial year 2011-2012 The above information is as certified by the actuary and relied upon by the auditors. 8. 9. Balance in Banks in other deposit accounts include ` 8.07 crore (previous year ` 7.64 crore) which are under lien. Others in Other Liabilities and Provisions (Schedule 5) include the following items shown as Provision for Contingencies, which have been recognised in the accounts in respect of obligations arising from past event, the settlement of which is expected to result in an outflow embodying economic benefits. Provision for Contingencies: ` in crore Description Stamp duty on Trades Total Balance as on 1st April 2010 30.19 30.19 Addition during the year 5.38 5.38 Reversed/ paid during the year 17.52 17.52 Balance as on 31st March 2011 18.05 18.05
Based on legal opinion, the Management is of the view that certain provisions for earlier years are no longer required and have reversed ` 17.52 crore (Previous Year ` 9.12 crore). ` in crore Description Stamp duty on Trades Total Balance as on 1st April 2009 27.72 27.72 Addition during the year 11.59 11.59 Reversed/ paid during the year 9.12 9.12 Balance as on 31st March 2010 30.19 30.19
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10. Provisions and Contingencies: Breakup of Provisions and Contingencies shown under the head Expenditure in Profit and Loss Account ` in crore Year ended 31 March Provision for taxation (Refer Note 11) Provision for Non-performing Assets and Contingencies (including write-offs and net of recoveries) Provision for Standard Assets Provision for Diminution in value of Investments Provision Others* Total
st
2011 678.16 111.60 6.11 46.64 (16.75) 825.76
2010 575.50 536.38 5.92 (51.24) 19.67 1,086.23
(*) For the year ended 31st March 2011 includes write-back of provisions against derivatives contracts ` (21.41) crore (Previous Year provision of ` 14.83 crore) and provision for fees receivable ` 4.66 crore (Previous Year ` 4.84 crore) 11. PROVISION MADE FOR TAXES DURING THE YEAR: ` in crore Year ended 31st March Current tax Deferred tax Wealth Tax Total 12. DESCRIPTION OF CONTINGENT LIABILITIES: Sr. No. 1. Contingent Liability* Claims not acknowledged as debts Brief Description This includes liability on account of income tax, interest tax, sales tax, lease tax demands and legal cases filed against the Group. The Group is a party to various legal proceedings in the normal course of business. The Group does not expect the outcome of these proceedings to have a material adverse effect on the Groups financial conditions, result of operations or cash flows. Against the above ` 34.56 crore (previous year ` 19.00 crore) have been paid, which shall be refunded to the Group, if the outcome of the legal proceedings will be in the favour of the Group. 2. Liability on account of outstanding The Group enters into foreign exchange contracts with inter-bank participants on its forward exchange contracts own account and for customers. Forward exchange contracts are commitments to buy or sell foreign currency at a future date at the contracted rate. Guarantees on behalf of constituents in and outside India As a part of its banking activities, the Group issues guarantees on behalf of its customers. Guarantees generally represent irrevocable assurances that the Group will make payments in the event of customer failing to fulfill its financial or performance obligations. These includes Documentary credit such as letters of obligations, enhance the credit standing of the customers of the Group, contingent liabilities on account of bills re-discounted by the Group and cash collateral provided by the Group on assets which have been securitised. These include liabilities in respect of interest rate swaps, currency swaps, forward rate agreements, futures and options contracts. The Group enters into these transactions on its own account and for customers. Currency Swaps are commitments to exchange cash flows by way of interest/principal in one currency against another, based on predetermined rates. Interest rate swaps are commitments to exchange fixed and floating interest rate cash flows. The notional amounts that are recorded as contingent liabilities are amounts used as a benchmark for the calculation of interest component of the contracts. This also includes liability in respect of Capital commitments relating to fixed assets and undrawn commitments in respect of investments. 2011 682.30 (4.25) 0.11 678.16 2010 616.20 (40.81) 0.11 575.50
3.
4.
Acceptances, endorsements and other obligations
5.
Other items for which the Group is contingently liable
* Also refer Schedule 12 Contingent Liabilities
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13. EARNINGS PER EQUITY SHARE Particulars * Reconciliation between weighted shares used in the computation of basic and diluted earnings per share: Weighted average number of equity shares used in computation of basic earnings per share Effect of potential equity shares for stock options outstanding Weighted average number of equity shares used in computation of diluted earnings per share Following is the reconciliation between basic and diluted earnings per share: Nominal value per share (`) Basic earnings per share (`) Effect of potential equity shares for stock options (`) Diluted earnings per share (`) Earnings used in the computation of basic and diluted earnings per share (` in crore) 5.00 21.73 0.13 21.60 1,566.74 5.00 18.84 0.20 18.64 1,307.00 72,10,33,537 43,68,154 72,54,01,691 69,37,75,204 74,00,562 70,11,75,766 As on 31st March 2011 As on 31st March 2010
*The number of shares have been adjusted for split of the underlying equity shares from `10 paid up to ` 5 paid up per share in accordance with Accounting Standard (AS) 20, Earnings Per Share notified under the Companies (Accounting Standard) Rules, 2006 as amended. The effect of the share split has been given effect in computing earnings per share for the previous periods (Refer Note 4). 14. ESOPs At the General Meetings of the holding company, Kotak Mahindra Bank Limited, the shareholders of the Bank had unanimously passed Special Resolutions on 28th July 2000, 26th July 2004, 26th July 2005, 5th July 2007 and 21st August 2007, to grant options to the eligible employees of the Bank and its subsidiaries companies. Pursuant to these resolutions, the following four Employees Stock Option Schemes had been formulated and adopted: (a) (b) (c) (d) Kotak Mahindra Equity Option Scheme 2001-02; Kotak Mahindra Equity Option Scheme 2002-03; Kotak Mahindra Equity Option Scheme 2005; and Kotak Mahindra Equity Option Scheme 2007.
Consequent to the above, the Bank has granted stock options to the employees of the Group. The Bank under its various plan/ schemes, has granted in aggregate 5,40,24,680 options as on 31st March 2011 (Previous year 4,92,75,440) Stock appreciation rights The management has approved the grant of stock appreciation rights (SARs) to eligible employees as and when deemed fit. The SARs are settled in cash and vest on the respective due dates in a graded manner as per the terms and conditions of grant. The contractual life of the SARs range from 0.34 to 4.36 years. Detail of activity under SARs is summarised below Year Ended 31st March 2011 Outstanding at the beginning of the year Granted during the year Settled during the year Forfeited during the year Outstanding at the end of the year Equity-settled options The Bank has granted options to employees of the Group vide various employee stock option schemes. During the year ended 31st March 2011, the following schemes were in operation: 2,70,300 8,89,098 3,46,630 77,880 7,34,888 Year Ended 31st March 2010 2,70,300 2,70,300
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Plan 2005 Date of grant Date of Board Approval Date of Shareholders approval Various Dates Various Dates 26th July 2005 as amended on 5th July 2007 1,09,73,200 Equity 1 4.13 years 0.42 0.92 years Graded/Cliff vesting Plan 2007 Various Dates Various Dates 5th July 2007 as amended on 21st August 2007 2,41,34,480 Equity 1 4.31 years 0.17 1.01 years Graded/Cliff vesting
Number of options granted Method of Settlement (Cash/Equity) Vesting Period Exercise Period Vesting Conditions The details of activity under Plan 2005 have been summarised below: Year ended 31st March 2011 Number of Shares Weighted Average Exercise Price (`) Outstanding at the beginning of the year Granted during the year Forfeited during the year Exercised during the year Expired during the year Outstanding at the end of the year Out of the above exercisable at the end of the year Weighted average remaining contractual life (in years) Weighted average fair value of options granted The details of activity under Plan 2007 have been summarised below: Year ended 31st March 2011 Number of Shares Weighted Average Exercise Price (`) Outstanding at the beginning of the year Granted during the year* Forfeited during the year Exercised during the year Expired during the year Outstanding at the end of the year* Out of the above exercisable at the end of the year Weighted average remaining contractual life (in years) Weighted average fair value of options granted 1,28,14,250 47,49,240 9,29,424 31,46,430 67,626 1,34,20,010 13,65,190 236.42 308.63 282.17 175.78 463.92 271.88 235.82 1.82 206.73 49,88,600 2,81,200 46,42,120 65,280 164.36 162.84 165.71 75.00
Year ended 31st March 2010 Number of Shares 67,59,340 3,26,500 14,39,500 4,740 49,88,600 3,53,600 Weighted Average Exercise Price (`) 147.86 157.93 91.76 75.00 164.36 86.17 0.72
Year ended 31st March 2010 Number of Shares 1,69,54,594 3,06,040 8,62,972 35,05,736 77,676 1,28,14,250 16,70,738 Weighted Average Exercise Price (`) 224.54 198.59 238.89 173.04 326.68 236.42 147.14 1.98 260.04
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The weighted average share price at the date of exercise for stock options exercised during the year was ` 437.07 (Previous year ` 363.99). The details of exercise price for stock options outstanding at the end of the year are: 31st March 2011 Range of exercise prices (`) Number of options outstanding Weighted average Weighted average remaining exercise price contractual life of (`) options (in years) 1.34 2.00 1.73 1.78 2.09 5.00 140.45 220.66 334.38 449.52
0-100 101-200 201-300 301-400 401-500 31st March 2010 Range of exercise prices (`)
30,854 28,87,906 24,14,450 80,34,800 52,000
Number of options outstanding
Weighted average Weighted average remaining exercise price contractual life of (`) options (in years) 0.52 1.40 1.89 2.06 1.20 1.42 55.63 154.55 206.43 341.66 492.24 625.00
0-100 101-200 201-300 301-400 401-500 601-700
4,23,680 97,16,674 24,26,496 50,74,000 87,000 75,000
In May 2010, the ESOP/Compensation Committee of the Bank accorded approval to the changes in exercise price of two stock option series granted on 10th May 2010. In addition to reduction in exercise price, in respect of one of the series, the vesting date of the last tranche has been preponed by 0.58 years in May 2010. The incremental intrinsic value resulting from the above modifications amounted to ` 55 and ` 30 (post split) respectively. The incremental intrinsic value is amortised from the modification date till the vesting date or the revised vesting date as the case may be. The incremental intrinsic value is measured as the difference between the intrinsic value of the modified stock options and that of the original stock options, both estimated as at the date of the modification. The fair value of the equity-settled and cash-settled options is estimated on the date of grant using Black-Scholes options pricing model taking into account the terms and conditions upon which the options were granted. The fair value of the cash-settled options is remeasured at the each Balance Sheet date. The following table lists the inputs to the model used for equity-settled and cash-settled options: Year ended 31st March Exercise Price ` Weighted Average Share Price ` Expected Volatility Historical Volatility Life of the options granted (Vesting and exercise period) in years Risk-free interest rate Expected dividend rate 2011 Equity-settled 200-422 401.14 31.56%-65.43% 31.56%-65.43% 1.00-4.44 5.54%-7.66% 0.09%-0.11% Cash-settled 5 379.40 20.22%-57.98% 20.22%-57.98% 0.04-3.09 7.28%-7.86% 0.10% 2010 Equity-settled 5-475 381.04 57.71%-77.02% 57.71%-77.02% 1.06 4.42 4.65% - 7.22% 0.09% - 0.19% Cash-settled 5-147.5 382.06 16.94%-67.54% 16.94%-67.54% 0.04 4.09 4.25% - 7.37% 0.10%
The expected volatility was determined based on historical volatility data; historical volatility includes early years of the Banks life; the Bank expects the volatility of its share price to reduce as it matures. The above information has been prepared by the Bank and relied upon by the auditors.
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57
Effect of the employee share-based payment plans on the Profit and Loss Account and on the financial position: ` in crore Year ended 31st March Total Employee Compensation Cost pertaining to share-based payment plans Compensation Cost pertaining to equity-settled employee share-based payment plan included above Liability for employee stock options outstanding as at year end Deferred Compensation Cost Closing balance of liability for cash-settled options Expense arising from increase in intrinsic value of liability for cash stock appreciation plan 2011 52.87 18.76 70.43 33.52 18.05 0.20 2010 28.26 27.07 76.56 21.76 1.20
Had the Group recorded the compensation cost computed on the basis of Fair Valuation method instead of intrinsic value method, employee compensation cost would have been higher by ` 39.39 crore (Previous year ` 43.41 crore) and the profit after tax would have been lower by ` 26.30 crore (Previous year ` 28.66 crore). Consequently the basic and diluted EPS would have been ` 21.36 (Previous year ` 18.43) and ` 21.24 (Previous year ` 18.23) respectively. The above number of ESOPs / SARs, exercise price, fair value and share price have been adjusted for split of the underlying equity shares from ` 10 paid up to ` 5 paid up per share. In computing the above information, certain estimates and assumptions have been made by the Management which have been relied upon by the auditors. 15. Tier II Bonds a. b. Lower Tier II Bonds outstanding as on 31st March 2011 ` 591.80 crore (previous year ` 554.80 crore). Upper Tier II Bonds outstanding as on 31st March 2011 ` 336.68 crore (previous year ` 338.05 crore) of which bonds issued outside India ` 200.68 crore (previous year ` 202.05 crore).
16. Interest Expended-Others {Schedule 15(III)} includes interest on subordinated debt (Lower and Upper Tier II) ` 69.89 crore (Previous Year ` 67.55 crore). 17. Segment reporting The Summary of the operating segments of the Group for the year ended 31st March 2011 are as given below. ` in crore 31st March Segment Revenues: Treasury, Investments and BMU Retail Banking (a) (b) (c) Lending Branch Banking Credit Card 2,073.84 987.29 51.74 1,603.87 922.74 534.92 586.52 135.05 356.86 3,621.03 12,533.89 1.89 (1,506.51) 11,029.27 1,742.30 755.36 60.39 1,156.39 760.91 288.65 566.67 89.56 469.66 3,935.11 11,267.43 1.70 (1,215.83) 10,053.30 1,660.03 1,442.43 2011 2010
Corporate Banking Vehicle Financing Other Lending Activities Broking Advisory and Transactional Services Asset Management Insurance Sub-total Add: Unallocated Income Less: inter-segment revenues Total Income
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31st March Segment Results: Treasury, Investments and BMU Retail Banking (a) (b) (c) Lending Branch Banking Credit Card 664.98 (263.25) (63.01) 543.89 261.19 235.56 122.19 41.22 136.56 101.37 2,245.51 1.89 2,247.40 377.51 (189.05) (127.41) 385.46 202.17 97.11 177.21 20.86 287.54 66.44 1,904.12 (1.26) 1,902.86 464.81 606.28 2011 2010
Corporate Banking Vehicle Financing Other Lending Activities Broking Advisory and Transactional Services Asset Management Insurance Sub-total Add: Unallocated Income/ (Expense) Total Profit before tax, before minority interest and associates Segment Assets Treasury, Investments and BMU Retail Banking (a) (b) (c) Lending Branch Banking Credit Card
22,298.50
17,443.69
17,481.22 15,567.29 141.10 12,869.42 8,200.74 3,822.48 320.95 44.44 836.04 8,773.43 90,355.61 (16,998.05) 73,357.56 323.57 73,681.13
13,074.54 11,713.92 197.81 10,931.75 6,683.06 2,125.77 489.02 27.94 680.88 6,946.17 70,314.55 (15,531.19) 54,783.36 331.45 55,114.81
Corporate Banking Vehicle Financing Other Lending Activities Broking Advisory and Transactional Services Asset Management Insurance Sub-total Less: inter-segment assets Total Add: Unallocated Assets Total Assets as per Balance Sheet Segment Liabilities Treasury, Investments and BMU Retail Banking (a) (b) (c) Lending Branch Banking Credit Card
18,734.41
13,911.90
14,517.83 15,655.54 23.98
11,392.90 11,902.97 22.61
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59
31st March Corporate Banking Vehicle Financing Other Lending Activities Broking Advisory and Transactional Services Asset Management Insurance Sub-total Less: inter-segment liabilities Total Add : Unallocated liabilities Add: Share Capital, Reserves and Surplus and Minority Interest Total Capital and Liabilities as per Balance Sheet Capital Expenditure Treasury, Investments and BMU Retail Banking (a) (b) (c) Lending Branch Banking Credit Card 8.47 59.05 0.59 3.74 1.28 0.10 17.86 2.86 5.57 18.65 145.57 43.12 6.95 40.53 3.83 4.02 1.76 0.19 17.98 2.36 4.28 27.33 152.35 3.65 29.39 1.91 2.63 27.16 0.13 63.78 2.44 3.59 20.96 428.13 37.90 7.61 35.30 4.75 4.73 1.62 0.23 19.64 1.96 4.14 25.04 142.92 27.40 272.49 2011 11,086.11 8,788.19 992.15 860.38 24.95 385.82 8,452.32 79,521.68 (16,998.05) 62,523.63 87.35 11,070.15 73,681.13 2010 9,789.53 6,288.50 1,068.19 1,132.22 22.52 210.44 6,782.30 62,524.08 (15,531.19) 46,992.89 130.12 7,991.80 55,114.81
Corporate Banking Vehicle Financing Other Lending Activities Broking Advisory and Transactional Services Asset Management Insurance Total Depreciation Treasury, Investments and BMU Retail Banking (a) (b) (c) Lending Branch Banking Credit Card
Corporate Banking Vehicle Financing Other Lending Activities Broking Advisory and Transactional Services Asset Management Insurance Total
Segment information is provided as per the MIS available for internal reporting purposes, which includes certain estimates and assumptions. The methodology adopted in compiling and reporting the above information has been relied upon by the auditors.
60
Its grt 2b 25
18. Assets taken on lease (i) The Group has taken various premises and equipment under operating lease. The lease payments recognised in the Profit and Loss Account are ` 160.75 crore (previous year ` 172.32 crore). (ii) The future minimum lease payments under non cancelable operating lease not later than one year is ` 149.45 crore (previous year ` 116.66 crore), later than one year but not later than five years is ` 423.50 crore (previous year ` 363.29 crore) and later than five years ` 143.06 crore (previous year ` 121.08 crore). The lease terms include renewal option after expiry of primary lease period. There are no restrictions imposed by lease arrangements. There are escalation clauses in the lease agreements. 19. Assets given on lease The lease income recognised in the Profit and Loss Account in respect of premises and equipment under operating lease is ` 1.64 crore (previous year `1.57 crore). The future minimum lease payments under non cancelable operating lease not later than one year is ` 1.14 crore (previous year ` 1.14 crore), later than one year but not later than five years is ` 0.95 crore (previous year ` 2.09 crore). Details of gross investments, unearned finance income in respect of assets given under finance lease are as under: ` in crore As on 31st March Gross Investments: (i) Not later than 1 year 32.58 85.45 118.03 10.54 13.72 24.26 22.04 71.73 93.77 0.02 7.80 21.31 29.11 2.65 3.95 6.60 5.15 17.36 22.51 0.04 (ii) Between 1-5 years Total Unearned Finance Income: (i) Not later than 1 year (ii) Between 1-5 years Total Present Value of Rentals (i) Not later than 1 year (ii) Between 1-5 years Total Accumulated provision on the Gross Investments 2011 2010
20. The Group enters into various types of derivative contracts such as interest rate swaps, cross currency interest rate swaps, foreign currency swaps, forwards, index/ equity futures and options. The details of such derivatives for subsidiaries other than bank are as under: Derivative instrument outstanding as on 31st March 2011 As on 31st March Particulars of Derivatives Futures S&P CNX Nifty Futures S&P CNX Nifty Futures Bank Nifty Futures Stock Futures Stock Futures Interest Rate Futures Commodity Futures Options S&P CNX Nifty Options Long S&P CNX Nifty Options Long S&P CNX Nifty Options Short S&P CNX Nifty Options Short Stock Options Long Stock Options Long Stock Options Short 650,300 530,600 816,900 350,000 620,250 26,300 518,250 254,300 32,318 8,500 88,218 Trading Hedging Trading Hedging Trading Hedging Trading 194,700 166,750 4,000 746,250 441,125 170 Lots 6,800 100,350 4,150 3,061,738 86,700 Trading Hedging Trading Trading Hedging Hedging Hedging 2011 Quantity 2010 Quantity Purpose
Its grt 2b 25
61
As on 31st March Particulars of Derivatives Interest Rate Swaps Currency Swaps Forward Exchange Contracts USD-INR Long USD-INR Short USD-GBP Long USD-GBP Short USD-EURO Long Foreign Currency Option USD-INR Unhedged forex exposure outstanding as on the Balance Sheet date ` in crore Particulars Amount Receivable in foreign currency As on 31st March 2011 As on 31st March 2010 2011 2010 Purpose Hedging Hedging Hedging Hedging Hedging Hedging Hedging Hedging Notional Amount INR 500,000,000 USD 84,500,985 USD 122,801,651 USD 14,750,000 USD 5,500,000 USD 4,033,500 USD 5,500,000 USD 27,712,657 USD 2,261,975 USD 1,339,002 USD 1,579,292 USD 5,000,000
7.69 (USD 1,282,399) 3.22 (EURO 413,625) (JPY 36,668,996) (USD 160,337)
21. Other Liabilities and Provisions (Schedule 5.III) includes Deferred Tax Liability and Others Other Assets(Schedule 11.VI) includes Deferred Tax Assets as follows: ` in crore Particulars Deferred Tax Assets Provision for non-performing and doubtful debts, standard advances and contingencies Depreciation on assets Unabsorbed capital losses/ business losses/ provision for investments* Unamortised Income Expenditure allowed on payment basis and others Total Deferred Tax Assets Deferred Tax Liabilities Deferred expenses Depreciation on assets Others Total Deferred Tax Liabilities Net Deferred Tax Assets/(Liabilities) 17.87 0.91 4.85 23.63 293.19 15.86 0.85 2.49 19.20 288.99 220.46 21.92 3.02 6.87 64.55 316.82 237.47 23.82 0.63 2.60 43.67 308.19 Year ended 31st March 2011 Year ended 31st March 2010
(*) Deferred Tax assets on Unabsorbed Capital Loss is recognised as there are investments which are intended to be sold and the capital gains arising there from will be used for setting off the unabsorbed capital loss. 22. Fixed Assets Fixed Assets as per Schedule 10 include intangible assets, details of which are as follows: ` in crore Particulars SOFTWARE Gross Block At cost on 31st March of the preceding year Additions during the year Deductions during the year Total 159.65 28.32 0.04 187.93 117.12 42.60 0.07 159.65 Year ended 31st March 2011 Year ended 31st March 2010
62
Its grt 2b 25
` in crore Particulars Depreciation As on 31st March of the preceding year Charge for the year Deductions during the year Depreciation to date Net Block MEMBERSHIP CARDS OF STOCK EXCHANGE Gross Block At cost on 31st March of the preceding year Total Depreciation As on 31st March of the preceding year Charge for the year Depreciation to date Net Block GOODWILL Gross Block At cost on 31st March of the preceding year Total Depreciation As on 31st March of the preceding year Depreciation to date Net Block FOREX BROKING BUSINESS RIGHTS Gross Block At cost on 31st March of the preceding year Total Depreciation As on 31st March of the preceding year Charge for the year Depreciation to date Net Block 3.47 0.36 3.83 3.09 0.38 3.47 0.36 3.83 3.83 3.83 3.83 1.88 1.88 1.88 1.88 1.88 1.88 1.88 1.88 3.00 0.21 3.21 1.45 2.79 0.21 3.00 1.66 4.66 4.66 4.66 4.66 105.39 35.00 140.39 47.54 77.65 27.80 0.06 105.39 54.26 Year ended 31st March 2011 Year ended 31st March 2010
Its grt 2b 25
63
23. RELATED PARTY DISCLOSURES: Nature of relationship A Individual having significant influence over the enterprise Name of Related Party Uday S. Kotak along with relatives and enterprises in which he has beneficial interest holds 45.56% of the equity share capital of Kotak Mahindra Bank Limited as on 31st March 2011.
Other Related Parties: Associates Business Standard Limited (till 16th June 2009) Kotak Mahindra Asset Reconstruction Company Limited (till 18th March2011) ACE Derivatives and Commodity Exchange Limited (Formerly known as Ahmedabad Commodity Exchange Limited) Regency Hospitals Limited (till 30th March 2010) Infina Finance Private Limited Phoenix ARC Private Limited Matrix Business Services India Private Limited Investing Party of the subsidiaries Old Mutual Plc. Old Mutual Life Assurance Company (South Africa ) Limited Aero Agencies Limited Kotak and Company Limited Kotak Commodity Services Limited Komaf Financial Services Limited Asian Machinery & Equipment Private Limited Cumulus Trading Company Private Limited Palko Properties Private Limited Harisiddha Trading and Finance Private Limited Kotak Trustee Company Private Limited Kotak Chemicals Limited Kotak Ginning & Pressing Industries Limited Insurekot Investments Private Limited Key Management Personnel Mr. Uday S. Kotak Executive Vice Chairman and Managing Director- KMBL Mr. C. Jayaram - Executive Director- KMBL Mr. Dipak Gupta - Executive Director- KMBL Relatives of Key Management Personnel Ms. Pallavi Kotak Mr. Suresh Kotak Ms. Indira Kotak Mr. Jay Kotak Mr. Dhawal Kotak Ms. Aarti Chandaria Ms. Usha Jayaram Ms. Anita Gupta Ms. Urmila Gupta
Enterprises over which relatives of Key Management Personnel have control/ significant influence
64
Its grt 2b 25
C. Details of related party transactions: ` in crore Items/Related Party Associates Investing Party of the subsidiaries Enterprises over which relatives of Key Management Personnel have control/ significant influence Key Management Personnel Relatives of Key Management Personnel
I.
Liabilities Other Liabilities Deposits Interest Payable 20.38 (25.64) 364.87 (514.71) 4.87 (7.53) 107.87 (81.90) (0.02) 0.37 (2.92) (0.03) 0.24 (0.11) 7.35 (6.69) 1.59 (0.71) 42.70 (32.13) 4.19 (0.68) 3.98 (7.28) 4.54 (1.35) 1.84 (1.43) 0.08 () 1.60 (0.35) 0.01 () 14.21 (12.53) 0.03 (0.02) 3.80 (1.12) 18.84 (30.77) (7.55) 0.08 (0.01) # (0.06) 1.52 (1.33) 12.49 (8.94) (52.87) 0.02 () 0.23 (0.18) 0.04 (0.03) # () 0.08 (0.08) 0.81 (0.80) 0.23 (0.34) 91.95 (8.80) 2.31 (0.56) 0.01 () 13.50 (4.14) 0.31 (0.16) 0.74 (0.52) 0.02 (0.01)
II.
Assets Investments -Gross Diminution on Investments Others
III. Expenses Salaries/fees (Include ESOP cost)* Others Interest Paid IV. Income Others V. Other Transactions Dividend paid Reimbursement to companies Reimbursement from companies Purchase of Investments Sale of Investment Purchase of Fixed Assets Sale of Fixed Assets
Its grt 2b 25
65
D. Material transactions with related parties: ` in crore Items / Related Party Associates Investing Party of the subsidiary Enterprises Key over which Management relatives personnel of Key Management Personnel have control/ significant influence Relatives of Key Management Personnel Total
I. Liabilities: Other liabilities Old Mutual Life Assurance Company (South Africa) Limited Aero Agencies Limited Kotak Commodity Services Limited Infina Finance Private Limited Others II. Assets: Investments ACE Derivatives and Commodity Exchange Limited Phoenix ARC Private Limited Others Diminution on investments Kotak Mahindra Asset Reconstruction Company Limited Others Kotak Commodity Services Limited Old Mutual Plc ACE Derivatives and Commodity Exchange Limited Infina Finance Private Limited Others III. Expenses: Other liabilities Mr. Uday Kotak* Mr. C. Jayaram* Mr. Dipak Gupta* 20.17 (25.39) 0.21 (0.25)
0.81 (0.80) 0.04 (0.02) 0.19 (0.32)
0.01 ()
0.81 (0.80) 0.04 (0.02) 0.19 (0.32) 20.17 (25.39) 0.22 (0.25)
51.66 (25.67) 51.45 (51.45) 4.76 (4.78)
51.66 (25.67) 51.45 (51.45) 4.76 (4.78)
(0.02) 0.24 (0.11) (0.03) 0.03 (1.15) 0.33 (1.73) 0.01 (0.04)
(0.02) 0.24 (0.11) (0.03) 0.03 (1.15) 0.33 (1.73) 0.01 (0.04)
# ()
1.78 (1.13) 2.73 (2.75) 2.84 (2.81)
1.78 (1.13) 2.73 (2.75) 2.84 (2.81)
66
Its grt 2b 25
` in crore Items / Related Party Associates Investing Party of the subsidiary Enterprises Key over which Management relatives personnel of Key Management Personnel have control/ significant influence Relatives of Key Management Personnel Total
Interest Paid Infina Finance Private Limited Phoenix ARC Private Limited Others Others Aero Agencies Limited Kotak and Company Limited Matrix Business Services India Private Limited Others IV. Income: Others Fee Income Phoenix ARC Private Limited Kotak Commodity Services Limited Others Premium Income ACE Derivatives and Commodity Exchange Limited Kotak Commodity Services Limited Others Brokerage Income Infina Finance Private Limited Others 1.84 (0.68) # () 0.01 () # () Its grt 2b 25 1.84 (0.68) 0.01 () # () 0.01 () # (0.01) 0.01 () # (0.01) # () # () 2.34 () 1.84 (1.41) (0.01) # () 2.34 () 1.84 (1.41) # (0.01) 3.53 (6.87) 0.45 (0.41) 1.59 (0.70) (0.01) 0.08 () 3.53 (6.87) 0.45 (0.41) 1.59 (0.70) 0.08 (0.01) 35.07 (28.23) 5.43 (3.82) 2.20 (0.08) 4.54 (1.35) 1.60 (0.35) 0.04 (0.03) 35.07 (28.23) 5.43 (3.82) 8.38 (1.81)
67
V. Other Transactions: Dividend Paid Mr. Uday Kotak Mr. C Jayaram Mr. Dipak Gupta Ms. Pallavi Kotak Ms. Indira Kotak Others Reimbursements made Infina Finance Private Limited Kotak Commodity Services Limited Others Reimbursements received Old Mutual Life Assurance Company (South Africa) Limited Kotak Commodity Services Limited ACE Derivatives and Commodity Exchange Limited Others Purchase of Investments Phoenix ARC Private Limited Komaf Financial services Limited Sale of Investment Infina Finance Private Limited Komaf Financial services Limited Purchase of Fixed Assets Kotak Commodity Services Limited 0.02 () 0.01 (0.02)
14.16 (12.49) 0.03 (0.02) 0.02 (0.02) 0.02 (0.02) 0.05 (0.05) 0.01 (0.01) 0.02 () # (0.06)
14.16 (12.49) 0.03 (0.02) 0.02 (0.02) 0.02 (0.02) 0.05 (0.05) 0.01 (0.01) 0.02 () # (0.06) 0.01 (0.02)
0.08 () 1.52 (1.33) 3.69 (1.03) 0.11 (0.09) 18.84 (30.77) 12.49 (8.94) (7.55) (52.87)
0.08 () 1.52 (1.33) 3.69 (1.03) 0.11 (0.10) 18.84 (30.77) 12.49 (8.94) (7.55) (52.87) 0.02 ()
(0.01)
68
Its grt 2b 25
Sale of Fixed Assets ACE Derivatives and Commodity Exchange Limited * includes incentive paid during the year E. Maximum balance outstanding ` in crore Items / Related Party Associates Investing Party of the subsidiary Enterprises over which relatives of Key Management Personnel have control/ significant influence Key Management personnel Relatives of Key Management Personnel 0.23 (0.18) 0.23 (0.18)
I.
Liabilities Deposits Other Liabilities 3,259.23 (3,390.73) 25.64 (25.64) 0.81 (0.80) 26.79 (75.76) 0.34 (0.34) 64.69 (18.93) 0.81 (0.81)
II.
Assets Investments-Gross Diminution on Investments Others 107.88 (81.90) (0.02) 2.92 (2.91) 0.03 (0.03) 0.24 (0.11)
# In the above table denotes amounts less than ` 50,000.00 Note: Figures of previous year are given in bracket. 24. Figures for the previous year have been regrouped / reclassified wherever necessary to conform to current years presentation. For and on behalf of the Board of Directors Dr. Shankar Acharya Chairman Dipak Gupta Executive Director Jaimin Bhatt Group Chief Financial Officer Bina Chandarana Company Secretary Uday Kotak Executive Vice Chairman and Managing Director
Its grt 2b 25
69
Financial Information of Subsidiaries for the year ended 31st March 2011 ` in Lakhs
Kotak Mahindra Capital Company Limited Limited 160.00 48,523.04 48,934.65 51,552.53 2,617.88 843,196.70 79,214.82 4,072.37 376.63 18,776.77 16,448.04 94.57 830.67 10.88 884,587.24 104,648.06 9,909.84 3,301.34 37,609.68 26,003.87 2,830.71 0.09 16,438.40 296.98 41,390.54 25,433.24 5,837.47 2,924.71 18,832.91 9,555.83 2,736.14 0.09 15,607.73 286.10 43.40 65.66 22.26 (9,638.48) 25,128.21 3,857.47 2,919.70 17,216.94 8,855.05 2,729.15 15,148.53 281.10 (366.60) 411.61 51,029.02 305.03 1,980.00 5.01 1,615.97 700.78 6.99 0.09 459.20 5.00 410.00 1,200.00 (119.43) 1,080.57 1,114.36 33.79 Limited 443.38 (188.75) 254.63 365.99 111.36 Insurance Company Limited Limited Limited Ltd Life Limited Management Company Limited Limited Fund Limited Services Limited Fund Ltd Services Old Mutual Investments Asset Trustee (International) (UK) Inc. Opportunities Advisors Trusteeship Brokerage Pension Financial Mahindra Mahindra Mahindra Mahindra Mahindra Mahindra Mahindra, Investment Investment Mahindra Forex Mahindra Mahindra Limited Kotak Kotak Kotak Kotak Kotak Kotak Kotak Kotak Global Kotak Kotak Kotak Kotak Kotak
70
9,960.62 15,530.76 7,022.77 1,833.91 5,188.86 10,247.45 2,399.87 1,062.00 668.10 4,605.42 918.54 (380.58) 920.60 406.03 322.04 122.39 367.02 (162.23) 10,247.45 3,320.47 1,468.03 990.14 4,727.81 1,285.56 (542.81) 362,140.45 12,528.39 10,811.06 1,083.51 5,624.02 6,663.01 1,091.40 808,834.10 5,543.21 2,500.00 987.35 34,446.25 31.28 14,543.93 9,609.82 4,922.24 1,650.83 3,271.41 138.40 109.69 36.82 72.87 57.45 (45.53) (45.53) 1,050.11 3.90 (57.25) (57.25) 782.67 (172.72) (172.72) 8,963.47 Nil Nil Nil Nil 693.00 300.42 Nil Nil Nil Nil Nil Nil Nil Nil Nil
Particulars
Kotak
Mahindra
Securities
Prime
Limited
Capital
349.52
Reserves
153,308.04
169,234.91
Total Networth
153,657.56
169,394.91
Total Assets
1,191,861.65
283,703.52
Total Liabilites
1,038,204.09
114,308.61
Investments
(excluding investment
in subsidiaries)
32,358.61
31,282.61
Turnover
136,476.08
73,755.35

Dr. Shankar Acharya Chairman Dipak Gupta Executive Director Bina Chandarana Company Secretary Uday Kotak Executive Vice Chairman and Managing Director Jaimin Bhatt Group Chief Financial Officer
Profit before taxation
48,188.43
27,157.26
Provision for taxation
16,402.16
Profit after taxation
31,786.27
18,193.79
Proposed Dividend
(Equity)
Nil
(1)
Total liabilities include current liabilities and provision and exclude capital and reserves.
(2)
Turnover is the total income reported by each of the entities in the financial statements.
(3)
Investments include investments and Stock in Trade reported by the above entities and also include investments held to cover policy holders liabilities and unit linked liabilities.
(4)
Dividend excludes corporate dividend tax.
(5)
Networth does not include Preference Share capital. The same is included in total liabilities.
(6)
The figures in respect of Kotak Mahindra, Inc., Kotak Mahindra (UK) Limited, Kotak Mahindra (International) Limited, Global Investment opportunities Fund Limited and Kotak Mahindra Financial Services Limited are based on the accounts prepared under Indian Accounting Standards.
(7)
The figures in respect of Kotak Mahindra Financial Services Ltd are for the period from 17th November, 2009 to 31st March 2011.
Its grt 2b 25
Consolidated Financial Statements Basel II (Pillar 3) Disclosures
Basel II (Pillar 3) Disclosures

1. Scope of Application Pillar 3 disclosures apply to Kotak Mahindra Bank Limited (KMBL) and its consolidated entities for regulatory purposes, wherein KMBL is the controlling entity in the group. Basis of Consolidation for capital adequacy The consolidated capital adequacy is based on consolidated financial statements of Kotak Mahindra Bank and its subsidiaries, prepared in accordance with guidelines for consolidated accounting and other quantitative methods vide circular DBOD.No.BP.BC.72/21.04.018/ 2001-02 dated 25th February 2003 issued by Reserve Bank of India (RBI). The capital charge is computed as per RBI guidelines for implementation of the New Capital Adequacy Framework (Basel II) released in April 2007. In accordance with the guidelines issued by RBI, the insurance subsidiary has been excluded from consolidation for the purpose of capital adequacy. The entities which carry on activities of financial nature are considered for consolidation for capital adequacy purpose as stated in the scope for preparing consolidated prudential reports laid down in RBI guidelines. The Bank consolidates all subsidiaries as defined in Accounting Standard (AS) -21 Consolidated Financial Statements on a line by line basis by adding together like items of assets, liabilities, income and expenses. Further, Banks investments in Associates are consolidated using the equity method of accounting as defined by Accounting Standard 23 Accounting for Investments in Associates in Consolidated Financial Statements. Kotak Mahindra Bank Limited (KMBL) and its subsidiaries/ associates which have been consolidated, constitute the Group. The list of subsidiaries/ associates consolidated as per AS 21 alongwith their treatment in consolidated capital adequacy computation is as under: Name of the Subsidiary Kotak Mahindra Prime Limited Kotak Securities Limited Kotak Mahindra Capital Company Limited Kotak Mahindra Old Mutual Life Insurance Limited Country of Origin India India India India Activity Non Banking Finance Company Securities Broking Investment Banking Life Insurance Status of consolidation Fully consolidated Fully consolidated Fully consolidated Fully consolidated for financial reporting but not for capital adequacy. Investment deducted from regulatory capital for capital adequacy Fully consolidated Fully consolidated Fully consolidated Fully consolidated Fully consolidated Fully consolidated Fully consolidated Fully consolidated
Kotak Mahindra Investments Limited Kotak Mahindra Asset Management Company Limited Kotak Mahindra Trustee Company Limited Kotak Mahindra (International) Limited Kotak Mahindra (UK) Limited Kotak Mahindra, Inc. Global Investments Opportunities Fund Limited (GIOFL)* Kotak Investment Advisors Limited
India India India Mauritius U.K USA Mauritius India
Non Banking Finance Company Asset Management Company Mutual Funds Trustee of mutual funds Brokerage and advisory services Brokerage and advisory services Brokerage and advisory services Investment company Asset manager of venture capital, private equity and similar funds Trustee of venture capital, private equity and similar funds Foreign exchange brokerage services Pension fund management Advising on financial products for Middle East Non Banking Finance Company
Kotak Mahindra Trusteeship Services Limited Kotak Forex Brokerage Limited Kotak Mahindra Pension Fund Limited Kotak Mahindra Financial Services Limited Infina Finance Private Limited
India India India Dubai India
Fully consolidated Fully consolidated Fully consolidated Fully consolidated Consolidated by equity method Its grt 2b 25
71
Name of the Subsidiary Kotak Mahindra Asset Reconstruction Company Limited ** Phoenix ARC Private Limited ACE Derivatives and Commodity Exchange Limited (formerly known as Ahmedabad Commodity Exchange Limited) Matrix Business Services India Private Limited
Country of Origin India
Activity Not operational
Status of consolidation The company is not operational and Other than temporary diminution is provided for Consolidated by equity method Consolidated by equity method
India India
Securitisation and asset Reconstruction Commodity Exchange
India
Business service provider
Consolidated by equity method for financial reporting but not for capital adequacy purpose
GIOFL is a collective investment scheme set up as a fund in Mauritius with the status of a limited company under the Mauritius Companies Act. GIOFL has a class structure wherein there are different classes of redeemable participating shares. Each class of participating shares has its own Balance Sheet and Profit and Loss Account. The Profit / Loss of each such class belongs to the participating shareholders of that class. The management shareholder is not entitled to any beneficial interest in the profit / loss of various classes nor is required to make good any shortfall. In substance there are no direct or indirect economic benefits received by the management shareholders. The substance over form must prevail. The Groups investment is only in Management Shares. Accordingly, GIOFL is consolidated in respect of management shares of the entity having regard to substance over form of the entity. Effective 19th March 2011 Kotak Mahindra Asset Reconstruction Company Limited has been dissolved under Section 560 of the Companies Act, 1956. Capital Deficiencies As at 31st March 2011 there is no deficiency of capital in any of the subsidiaries of the Bank. The Bank maintains an oversight over its subsidiaries through their respective Boards and the Management Committee of the Bank is regularly updated.
** a.
b.
Investment in insurance subsidiary The Groups investment in insurance subsidiary is deducted from regulatory capital for capital adequacy purpose under Basel II as given below: ` in crore Name of the Entity Kotak Mahindra Old Mutual Life Insurance Limited % shareholding of the Group 74% Investment value 377.62
The quantitative impact on regulatory capital of using risk weights investments versus using the deduction method is given below: ` in crore Method Deduction method Capital at 10% based on risk weighted assets 2. Capital Structure The capital adequacy norms issued by RBI classify capital funds into Tier-1 and Tier-2 capital. Tier-1 capital includes paid-up equity apital, statutory reserves, other disclosed free reserves, capital reserves and Elements of Tier-2 capital include investment reserve, general provision and loss reserve, eligible upper Tier-2 instruments and subordinate debt instruments (lower Tier -2 bonds). Group has issued debt instruments that form part of Tier-2 capital. The terms and conditions that are applicable for these instruments comply with the stipulated regulatory requirements Details of Upper Tier 2 and Lower Tier 2 Capital KMBL has issued debt instruments that form a part of Tier-2 capital. The terms and conditions that are applicable for these instruments comply with the stipulated regulatory requirements. The upper Tier-2 bonds are cumulative and have an original maturity of 15 years with call option after 10 years. The interest on upper Tier-2 bonds is payable either annually or semi-annually. Some of the upper Tier-2 debt instruments have a step-up clause on interest payment ranging up to 50 bps. The lower Tier-2 Subordinated bonds issued by Bank are cumulative and have an original maturity between 5 to 15 years. The lower Tier-2 Subordinated bonds issued by a subsidiary have an original maturity between 6 to 10 years and interest on these lower Tier-2 capital instruments is payable annually. Quantitative Impact 377.62 37.76
72
Its grt 2b 25
a.
Amount of Tier I and Tier II Capital ` in crore Amount (a) Tier I Capital Paid-up share capital Reserves and Surplus excluding translation and investment reserve Deductions: Investment in paid-up capital of subsidiaries/ associates (50%) Intangible assets other than Goodwill Goodwill Net Tier I Capital (b) Total eligible Tier II Capital (i) Debt instruments eligible for inclusion in Upper Tier II Capital Total amount outstanding Of which raised during the current financial year Amount eligible to be reckoned as capital (ii) Subordinated debt eligible for inclusion in Tier II capital Total amount outstanding Of which raised during the current financial year Amount eligible to be reckoned as capital (iii) (iv) General Provisions and loss reserves Investment reserve Deductions: Investment in paid-up capital of subsidiaries/ associates (50%) Net Tier II Capital 190.64 817.88 ` in crore Amount Tier I Capital Tier II Capital Total eligible Capital 10,498.66 817.88 11,316.54 591.80 472.98 182.80 16.06 336.68 336.68 190.64 322.24 3.42 10,498.66 368.44 10,646.52
b.
Total eligible capital as at 31st March 2011
3.
Capital Adequacy The Group has made considerable progress in capturing data and implementing systems with regards to computing capital adequacy as per the standardised approach of Basel II for credit risk. Efforts are on to automate the process of capital computation as per Basel II and application system is being implemented to that effect. In accordance with the guidelines of the Reserve Bank of India, the Group has adopted standardised approach for credit risk, basic indicator approach for operational risk and standardised duration approach for market risk for computing capital adequacy. The legal minimum as per license conditions stipulates that the capital base of the bank (Tier I + Tier II) must correspond to at least 10 percent of its risk-weighted assets. The Bank supplements the Capital Adequacy computation by performing stress tests, based on Scenarios approved by its Risk Management Committee, to assess how its businesses perform under Stress Conditions. These tests help the Bank to design appropriate risk response to meet stressed conditions. Approach to Capital Adequacy Assessment to support business activities The diversified business activities require the Group to identify, measure, aggregate and manage risks effectively and to allocate capital among its businesses appropriately. The risk management framework lays emphasis on the Groups risk philosophy, proper organisational structure, risk and reward balance and is supported by dedicated monitoring and risk measuring mechanism. The Key risks the Group is exposed to are Credit Risk, Market Risk, Interest Rate Risk, Liquidity Risk and Operational risk. Its grt 2b 25
73
Basic principles and risk and capital management The Bank undertakes sound risk management in achieving its purpose, objectives and strategies. The Board of Directors approves risk appetite for the Bank. The approved risk appetite sets the boundaries for risk taking and translates into business management limits and policies. Performance against approved Risk Appetite is reviewed periodically by the Risk Management Committee and the Board. Development of the risk strategy and risk appetite is an ongoing process and is based on past experience and future plans. The risk strategy is consistent with the Boards overall risk tolerance, managements expertise in each business unit and the total financial amount that the Bank is prepared to place at risk of loss (capital at risk). The Management Committee provides overall risk management supervision for the consolidated Group as a whole. Various risk committees, namely Asset Liability Management Committee (ALCO), Credit Committee, First Tier Audit Committee, Risk Management Committee, Information Security Committee etc, review specific risk areas and supervise the activities of enterprise wide risk management. Other capital adequacy assessment aspects:
Capital adequacy ratio (CAR) of the Bank is maintained at levels well over the 10% required in accordance with the license conditions. The Bank has put in place the ICAAP Policy and the same is being reviewed on a yearly basis which enables the Bank to maintain capital in line with the risks undertaken.
CAR has been worked out based on Basel-I and Basel-II guidelines (parallel run) and CAR is above the regulatory minimum level of 10% Capital requirements for various risk categories as at 31st March 2011 ` in crore Items (a) Capital requirements for credit risk Portfolios subject to standardised approach Securitisation exposures (b) Capital requirements for market risk Using standardised duration approach Interest rate risk Foreign exchange risk (including gold) Equity position risk (c) Capital requirements for operational risk Measured using basic indicator approach Total capital required at 10% Total capital funds of the Group Total risk weighted assets Capital adequacy ratio Computed as per Basel II guidelines 4. Credit Risk Credit Risk is defined as the possibility of losses associated with diminution in the credit quality of borrowers or counterparties. In a banks portfolio, losses stem from outright default due to inability or unwillingness of a customer or counterparty to meet commitments in relation to lending, trading, settlement and other financial transactions. Credit risk is managed through a framework which sets out policies and procedures covering the measurement and management of credit risk. The Banks credit policies and process notes articulate the credit risk strategy of the Bank and thereby the approach for credit origination, approval and maintenance. These policies define the Banks overall credit sanction criteria, including the general terms and conditions. The policies / processes generally address such areas as target markets / customer segmentation, qualitativequantitative assessment parameters, portfolio mix, prudential exposure ceilings, concentration limits, structure of limits, approval authorities, exception reporting system, prudential accounting and provisioning norms, etc. They take cognisance of prudent and prevalent banking practices, relevant regulatory requirements, nature and complexity of the Banks activities, market dynamics, etc. 627.67 5,813.89 11,316.54 58,138.86 19.46% 205.12 20.00 354.11 4,605.17 1.82 Amount
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The Banks credit exposure is primarily categorised into retail and wholesale borrowers. Retail exposure is mostly term loans and asset backed other than personal loans. Wholesale borrowers are internally categorised into emerging corporate, corporate and financial institutional group. While retail credit lending is largely based on predefined parameters and is mostly decentralised, credit appraisal is undertaken by an independent dedicated credit risk team for wholesale exposure. Credit risk management processes The Bank has made risk management a part of the management and governance of the Bank with a greater focus on risks and how those relate to the capital the Bank is holding. The Bank expects to achieve its earnings objectives and to satisfy its customers needs while maintaining a sound portfolio. Credit exposures are managed through target market identification, appropriate credit approval processes, post-disbursement monitoring and remedial management procedures. Proactive managing of risks on its portfolio has helped the Bank foresee and restrict the impact of the global turmoil on its credit operations. Periodic portfolio review, clear identification of early warning signals and prompt action on the legal and recovery front ensure that defaults are minimal. Timely and in-depth research on industries and sectors ensure that funds are directed to positive outlook sectors. Adverse developments in sectors are tracked to facilitate timely decisions to exit Companies in negative outlook sectors. The above processes ensure that the Bank maintains a well diversified portfolio mitigating any risks on account of sector, region or borrower concentration. The bank has also put in place a rating based approval matrix for sanctioning wholesale bank loans. Nature of reporting and measurement systems The Bank has an internal rating model which is an integral part of every lending decision and is capable of rating large and emerging corporates, traders, brokers, NBFCs and services. The rating model is being further enhanced to give required inputs to estimate Probability of Default (PDs) and Loss Given Default (LGDs) based on the Banks own experience. On the retail side, the Bank has initiated implementation of a comprehensive internal credit rating model for the risk assessment of retail loan exposures. Application scorecards for major businesses in retail loans are ready. The parameters used for these scorecards and their individual weight-ages have been decided based on past experience of the Bank. These parameters are both qualitative and quantitative in nature. Credit rating frameworks using these application scorecards are at different stages of implementation in different businesses in retail loans. The final output of the rating will help the Bank to assess the expected probable loss number attached to each rating category. The internal rating systems are being further developed and validated as part of the Banks endeavor to move towards advanced approaches of Basel II. The Bank has also implemented its stress testing framework for the Corporate as well as Retail portfolio. The Bank also uses scenario analysis for stress testing. Loss analysis and expected loss forecasting on a static pool basis is continuously being refined to meet the demand of the current volatile market. The Bank complies with the norms on exposure stipulated by RBI for both single borrower as well as borrower group at the consolidated level. Limits have been set by the risk management group as a percentage of the Banks consolidated capital funds and are regularly monitored. The Bank monitors the level of credit risk (Low/Moderate/High/Very High) and direction of change in credit risk (increasing / decreasing/stable) at the portfolio level on the basis of the following parameters which also indicate level of concentration risk the portfolio might be exposed to: Exposure to Top 20 accounts as a percentage of Credit Risk Exposure (CRE). Percentage of term loans with residual maturity more than 3 years to total loans and advance. Percentage of unsecured loans to total loan and advances. Number of single borrower exposures exceeding 15% of capital funds. Number of group exposures exceeding 40% of capital funds. Percentage of credit in low risk grades to total credit exposure Rating wise distribution of borrowers and Exposure migrating from investment grade to non-investment grade During the year, the Bank maintained a well diversified portfolio. As part of the ICAAP, the Bank periodically reports the ICAAP outcomes in terms of the risk appetite statements and assessment of credit concentration risk and underestimation of credit risk under the standardised approach to the Board. Credit Risk Management Principles The Bank measures and manages its credit risk based on the following principles: The extension and renewal of any credit facility to a particular borrower requires credit approval at the appropriate authority level. The rating tool, which is already in place, not only indicates the concerned sanctioning authorities but also helps the authorities in such decisions. The approval of all limits to counterparties should be in line with the corporate credit policy and collateral risk management policy of the Bank. Such approval should generally be within the Banks portfolio guidelines and credit strategies. The credit worthiness of borrowers is regularly reviewed and monitored. Customers with emerging credit problems are identified early and classified accordingly. Remedial action is initiated promptly to minimise the potential loss to the Bank.
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75
Definition and classification of non-performing assets (NPA) The Bank classifies its advances into performing and non-performing advances in accordance with extant RBI guidelines. A NPA is defined as a loan or an advance where; interest and/ or installment of principal remain overdue for a period of more than 90 days in respect of a term loan; the account remains out of order in respect of an overdraft/cash credit (OD/CC); and the bill remains overdue for a period of more than 90 days in the case of bills purchased and discounted. Out of Order An account should be treated as out of order if the outstanding balance remains continuously in excess of the sanctioned limit/ drawing power for a continuous period of 90 days. In cases where the outstanding balance in the principal operating account is less than the sanctioned limit/drawing power, but there are no credits continuously for 90 days as on the date of balance sheet or credits are not enough to cover the interest debited during the same period, these accounts should be treated as out of order. Overdue Any amount due to the Bank under any credit facility is overdue if it is not paid on the due date fixed by the Bank. Further, NPAs are classified into sub-standard, doubtful and loss assets based on the criteria stipulated by RBI. A sub-standard asset is one, which has remained NPA for a period less than or equal to 12 months. An asset is classified as doubtful if it has remained in the sub-standard category for a period exceeding 12 months. A loss asset is one where loss has been identified by the Bank or internal or external auditors or during RBI inspection but the amount has not been written off fully. The loans of subsidiaries have been classified as non-performing in accordance with the guidelines prescribed by their respective regulators. Total credit risk exposures as at 31st March 2011 ` in crore Overall credit exposure Total gross credit exposures Includes all entities considered for Basel II capital adequacy computation Credit exposure include term loans, working capital facilities (i.e. funded facilities like cash credit, demand loans, temporary limits and non-funded facilities like letter of credits, acceptances and guarantees). Geographic distribution of exposures as at 31st March 2011 ` in crore Exposures Domestic Overseas Total Includes all entities considered for Basel II capital adequacy computation Industry-wise distribution of exposures ` in crore Industry Auto loans Personal loans Home loans/Loan against property Credit cards Other retails loans Iron and steel Engineering Chemical, dyes, paints etc Construction Automobiles Infrastructure NBFCs Other industries (i) Total Includes all entities considered for Basel II capital adequacy computation Fund based 14,046.48 1,790.45 6,922.29 164.22 4,906.60 162.10 266.28 535.18 2,261.74 1,042.20 2,697.28 388.43 6,520.52 41,703.77 Non-fund based 491.62 1,509.65 523.32 179.32 587.71 1,358.45 579.47 2,274.57 7,504.11 Total 14,046.48 1,790.45 6,922.29 164.22 4,906.60 653.72 1,775.93 1,058.50 2,441.06 1,629.91 4,055.73 967.90 8,795.09 49,207.88 Fund based 41,703.77 41,703.77 Non-fund based 7,447.79 56.32 7,504.11 Total 49,151.56 56.32 49,207.88 Fund based 41,703.77 Non-fund based 7,504.11 Total 49,207.88
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(i)
Other industries include entities from sectors such as cotton textiles, sugar, food processing, vegetable oils and vanaspati, paper and paper products, rubber and rubber products, cement, IT-related, gems and jewellery, capital markets, media publication etc. ` in crore
Residual contractual maturity break-down of assets as at 31st March 2011 Maturity Pattern Cash and balances with monetary authority 587.12 116.37 233.67 198.54 302.06 572.16 40.33 59.06 2,109.31 Balances with other banks 366.46 0.25 2.59 0.09 369.39 Investments Advances Fixed Assets Other Assets
0 to 14 days 15 to 28 days 29 days to 3 months Over 3 months & upto 6 months Over 6 months & upto 1 year Over 1 year & upto 3 years Over 3 year & upto 5 years Over 5 years Total
6,451.92 1,488.42 1,256.74 1,065.47 2,486.24 3,305.29 361.96 1,138.42 17,554.46
2,626.24 1,833.47 3,744.41 3,850.40 5,656.10 15,083.68 3,547.78 4,894.74 41,236.82
453.63 453.63
216.78 13.86 215.57 12.14 1.47 15.30 33.29 1,246.23 1,754.64
Consolidated figures for Kotak Mahindra Bank Limited, Kotak Mahindra Prime Limited and Kotak Mahindra Investments Limited Amount of non-performing loans as at 31st March 2011 including NPAs acquired from other banks and NBFCs ` in crore Items Amount Gross NPA Substandard Doubtful 1 Doubtful 2 Doubtful 3 Loss Total NPA Ratio (%) Movement of NPAs Opening balance as at 1st April 2010 Additions Reductions Closing balance as at 31st March 2011 Includes all entities considered for Basel II capital adequacy computation Gross NPA ratio is computed as a ratio of gross non-performing loans to gross advances Net NPA ratio is computed as a ratio of net non-performing loans to net advances Movement of provisions for NPAs ` in crore Amount Opening balance as at 1st April 2010 Provisions made during the year Write-off / Write back of excess provisions Closing balance as at 31st March 2011 475.83 232.23 (238.75) 469.31 Its grt 2b 25 916.67 259.55 (464.24) 711.98 440.84 27.32 (225.49) 242.67 228.56 171.08 163.69 94.94 53.71 711.98 1.71% Net NPA 101.02 81.09 60.56 242.67 0.59%
77
Amount of non-performing loans as at 31st March 2011 excluding NPAs acquired from other banks and NBFCs ` in crore Items Amount Gross NPA Substandard Doubtful 1 Doubtful 2 Doubtful 3 Loss Total NPA Ratio (%) Movement of NPAs (gross) Opening balance as at 1st April 2010 Additions Reductions Closing balance as at 31st March 2011 Gross NPA ratio is computed as a ratio of gross non-performing loans to gross advances Net NPA ratio is computed as a ratio of net non-performing loans to net advances Movement of provisions for NPAs ` in crore Amount Opening balance as at 1st April 2010 Provisions made during the year Write-off / write back of excess provisions Closing balance as at 31st March 2011 Amount of Non-performing investments (NPI) ` in crore Amount Gross NPI as at 31st March 2011 Amount of provisions held for NPI Net NPI as at 31st March 2011 Movement of provisions for depreciation on investments ` in crore Amount Opening balance as at 1st April 2010 Write off / Write back of provisions during the year* Closing balance as at 31st March 2011 *After considering appreciation in investments 5. Credit risk portfolios subject to the standardised approach External Ratings In accordance with RBI Basel II guidelines, the Bank has identified the following External Credit Assessment Agencies (ECAIs) as approved rating agencies: 6.29 (2.61) 3.68 3.68 3.68 308.98 197.26 (215.20) 291.04 646.81 244.77 (422.98) 468.60 337.83 47.51 (207.78) 177.56 215.37 125.47 73.79 0.26 53.71 468.60 1.13% Net NPA 94.33 52.39 30.84 177.56 0.43%
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a. b.
Domestic credit rating agencies: CRISIL, ICRA, CARE and FITCH India International rating agencies: S&P, FITCH and Moodys
The Bank uses the external credit ratings to calculate risk weights for exposures on corporates. The issue/issuer ratings of the ECAIs are considered for the borrowers and the risk weights are then derived on a case by case basis based on a variety of factors (Seniority, Maturity of rating, etc) based on RBIs New Capital Adequacy Framework. Credit exposures by risk weights ` in crore Exposure category Below 100% risk weight 100% risk weight More than 100% risk weight TOTAL Fund based 16,005.04 13,533.76 11,886.76 41,425.56 Non-fund based 3,089.74 2,256.12 796.88 6,142.74 Total 19,094.78 15,789.88 12,683.64 47,568.30
Includes all entities considered for Basel II capital adequacy computation 6. Credit Risk Mitigation The Bank has put in place a comprehensive credit risk mitigation policy. The policy lists possible credit risk mitigation techniques and associated haircuts as envisaged in RBI guidelines. The objective of this Policy is to enable classification and valuation of credit risk mitigants in a manner that allows regulatory capital adjustment to reflect them. The Policy adopts the Comprehensive Approach, which allows full offset of collateral (after appropriate haircuts), wherever applicable against exposures, by effectively reducing the exposure amount by the value ascribed to the collateral. In the standardized capital computation process, the Bank has taken ` 1,639.58 crore of collateral benefit. 7. Securitisation a. Securitisation objectives and policies Securitisation of assets is undertaken with the following objectives: Meeting credit needs of borrowers Due to various constraints such as single party and group exposure norms, paucity of capital, internal sectoral exposure norms, etc, at times the Bank is unable to meet the entire credit requirements of the borrowers. Securitisation helps the Bank to overcome such constraints and meet customers credit needs. Assistance in management of asset-liability mismatches With traditional on Balance Sheet borrowing and lending, the maturity of assets tends be much longer than that of the liabilities. Securitisation effectively makes Banks assets more liquid providing scope to more flexibly manage maturity mismatches. Reduction of credit risk, interest rate and liquidity risk Through Securitisation, the Bank can transfer credit, interest rate and liquidity risks to third parties. Freeing up of capital and Improvement in return on capital - Securitisation removes assets from the Banks Balance Sheet and hence frees up capital for other uses. It also improves return on capital. Contingency plan Securitisation of retail asset portfolio is considered as an important element of the contingency funding plan of the Bank. Role played by the Group in the securitisation process: Structurer: The Bank scans the market to identify potential investors and structures the transaction to meet their requirements in compliance with the extant guidelines. Collection and paying agent: The SPV may appoint the concerned entity in the Bank as the collection and paying Agent. In such cases, the Bank collects the amounts due from the underlying obligors on the due dates and remits the same into the account of the SPV. b. Summary of Banks accounting policies for securitisation activities In terms of RBI guidelines Bank sells assets to SPV only on cash basis and the sale consideration is received not later than the transfer of the asset to the SPV. Any loss arising on account of the sale is accounted immediately and reflected in the profit and loss account for the period during which the sale is effected and any profit/premium arising on account of sale is amortised over the life of the securities issued or to be issued by the SPV. i) In case the securitised assets qualify for derecognition from the books of the Bank, the entire expenses incurred on the transaction e.g. legal fees, etc., is expensed at the time of the transaction and is not deferred. ii) Where the securitised assets do not qualify for derecognition the sale consideration received is treated as a secured borrowing. Rating of the securitisation transactions: The Bank uses the ratings provided by external credit rating agencies viz. CRISIL, FITCH (India), ICRA and CARE for the securitization of corporate loans and retail pools. Its grt 2b 25
c.
79
d.
Breakup of the exposure securitised by the Bank during the year and subject to securitization framework: A. Banking Book ` in crore S No. 1 Exposure type Total amount of exposures securitised Corporate Loans Auto Loans (Car and commercial vehicles) Mortgage Loans Total 2 3 Loss recognized during the period on securitisation Amount of assets intended to be securitised within a year Of which - Amount of assets originated within a year before securitisation 4 Unrecognised gain on securitisation Corporate Loans Auto Loans (Car and commercial vehicles) Mortgage Loans Includes all entities considered for Basel II capital adequacy computation 15.00 0.28 0.89 2,075.00 218.18 220.70 2,513.88 Amount
e.
Aggregate amount of securitisation exposures retained or purchased and outstanding as on 31st March 2011 is given below: ` in crore S No. 1 2 3 4 5 Exposure type Total amount of exposures retained Securities purchased Liquidity facility Credit commitments (cash collateral) Other commitments On Balance Sheet Amount Off Balance Sheet Amount
f.
Risk-weight wise and bucket wise details of the securitization exposures on the basis of book value ` in crore Exposure type Below 100% risk weight 100% risk weight More than 100% risk weight Deductions - Entirely from Tier I capital - Credit enhancing I/Os deducted from total capital - Credit enhancement (cash collateral) B. Trading Book Amount Capital charge
Breakup of the exposure securitised by the Bank during the year and subject to securitisation framework: Sr.No. 1. Type of Securitisation Aggregate amount of exposures securitised by the bank for which the Bank has retained some exposures and which is subject to the market risk approach Amount NIL
80
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g.
Aggregate amount of securitisation exposures retained or purchased and outstanding as on 31st March 2011 is given below: ` in crore S No. 1 2 3 4 5 Exposure type Total amount of exposures retained Securities purchased Auto Loans (Car and commercial vehicles) Liquidity facility Credit commitments (cash collateral) Other commitments 69.82 ` in crore Exposure type Below 100% risk weight 100% risk weight More than 100% risk weight Deductions Entirely from Tier I capital Credit enhancing I/Os deducted from total capital Credit enhancement (cash collateral) Amount 69.82 Capital charge 1.82 On Balance Sheet Amount Off Balance Sheet Amount
h.
Risk-weight wise and bucket wise details of the securitisation exposures on the basis of book value
Includes all entities considered for Basel II capital adequacy computation 8. Market Risk in Trading Book Market risk management policy Market risk is defined as the risk to earnings arising from the movement in market risk factors, namely interest rates, foreign exchange rates, credit spreads or equity prices. For regulatory capital purposes, the Bank calculates its market risk capital requirements according to the Standardised methodology. The objective of the risk management function is risk identification, measurement and reporting them to the management. The Bank has designed and implemented policies and procedures to ensure that market risk exposures are managed within the approved risk management framework. Embedded within these is a framework of management responsibilities. The Board oversees the market risk management process. The Banks risks are managed through a framework that related the Banks integrated risk management policy and structure of risk management to the Banks strategy and objectives. The risk management framework lays emphasis on the Groups risk philosophy, proper organizational structure, risk and reward balance and is supported by dedicated monitoring and risk measurement mechanism. This framework for market risk management ensures that appropriate controls, policies and senior management oversight form the basis of the Banks approach to market risk management. The market risk for the Bank and each of its major subsidiaries is managed in accordance with the investment policy, which is approved by the respective Boards. These policies ensure that transactions in capital and foreign exchange markets and derivatives are conducted in accordance with sound and acceptable business practices and are as per the extant regulatory guidelines, laws governing transactions in financial markets and the financial environment. The policies are reviewed regularly to incorporate changes in regulatory guidelines and business and economic environment. Risk management objectives The o o o o o o o Bank manages its risk with the objectives listed below: Achieving risk return balance Managing and optimising interest rate risk in banking and trading book Ensuring that mismatches between rate sensitive assets and liabilities is kept within limits Managing and optimising currency and liquidity risk Proper recognition, classification, measurement and accounting of investments Compliance with regulatory guidelines Oversight over the operation and execution of market transactions Its grt 2b 25
81
Structure and organisation of the market risk management function The Banks risk management architecture is overseen by the Board of Directors and appropriate policies to manage risks are approved by the Board. The Board is involved in defining risk appetite and capital at risk for the Bank, at an integrated level, covering all activities of the Bank. The Board has also delegated to the Group Head - Risk, the responsibility for middle office and risk management. Risk Management department is entirely independent of Treasury Department. Development of the risk strategy and risk appetite is an ongoing process and is based on past experience and future plans. The risk strategy is consistent with the Boards overall risk tolerance, managements expertise in each business unit and the total financial amount that the Bank is prepared to place at risk of loss (Capital at risk). The Bank uses a comprehensive range of quantitative tools and metrics for monitoring and managing risks. Some of these tools are common to a number of risk categories whereas the others are tailored to address the particular features of specific risk categories. Both with a view to bringing in risk sensitivity through policies and to duly meet the regulatory requirements, the Bank continually assesses the appropriateness and the reliability of the quantitative tools and metrics in the light of the changing risk environment. Value at Risk The Bank is computing the market risk capital charge for the trading book as per the standardised approach as per the regulators guidelines. To complement this, Bank also calculates value at risk on its portfolio. Value at risk is computed for each type of market risk i.e. interest rate, foreign currency, equity etc taking into effect the various correlations between the risk factors. The internal model is also capable of undertaking stress testing and back-testing. The Risk Management Committee is appraised of the capital that would have to be maintained under the Internal Models Approach. Stress Testing Losses beyond the set confidence level are not captured by the value at risk calculation. The Bank periodically stresses the portfolio to highlight the potential risks that may arise due to events that are rare but plausible. The Bank conducts various tests like the impact of shock to one risk factor, extreme events that may change various risk factors simultaneously and worst case scenario that captures the potential damaging shift in various market risk factors. The stress test results and the subsequent capital requirement is placed before the Board for their perusal. Liquidity Risk Effective Liquidity Risk Management ensures the Banks ability to meet all payment obligations when they become due in both normal and stressed environments. The Banks Board defines the Liquidity Risk Management Strategy of the Bank. The Asset Liability Management Committee (ALCO) is entrusted with the responsibility of setting tolerances for and closely overseeing the management of liquidity risk. The Balance Sheet Management Unit (BMU) in Treasury is responsible for the management of Liquidity Risk in accordance with the overall strategy and tolerances. Funding mismatches are a natural outcome of the Liquidity Transformation function of the Bank. The Bank has a framework for accurately projecting cash flows from on and off Balance Sheet items over different time horizons - to ensure that funding mismatches are within acceptable tolerances. The Bank monitors the immediate short term (3 month) liquidity mismatches using the Statement of Short Term Dynamic Liquidity Statement and the long-term structural mismatches using the Structural Liquidity Statement. The ALM team carries out comprehensive analysis of its asset and liability portfolios to track the non-contractual behavior of customers. These Behavioral Analyses are integral to planning for the Banks future funding requirements. The Bank has in place a comprehensive set of Early Warning Indicators (EWIs) designed to forewarn of impending liquidity stresses. These EWIs are defined in the Banks Board Approved Contingency Liquidity Plan (CLP). The overall Liquidity Risk level of the Bank is determined through the levels of the various individual EWIs. The CLP also sets out alternative actions to be taken at levels of increased Liquidity Risk. Special teams, which would potentially be activated in times of heightened liquidity stress, have been defined. The Basel Committee of Banking Supervisors (BCBS) issued its International Framework for Liquidity Risk, Measurement, Standards and Monitoring in December 2010. These guidelines include 2 minimum standards for funding liquidity - a short term liquidity metric {the Liquidity Coverage Ratio (LCR)} and a longer term liquidity metric {the Net Stable Funding Ratio (NSFR)}. These metrics are not yet regulatory standards in India. The Bank has proactively set tolerances for these metrics and reviews compliance regularly. Active management of intraday liquidity is another key element in the Banks Liquidity Risk Management structure. The Bank also conducts Liquidity Stress Testing on a periodic basis using different Bank-specific and Market-wide stress scenarios. These stress tests are conducted on a quarterly basis and the results are reviewed by top management. Hedging and risk mitigation The Bank has defined limits on the positions that can be taken and all the business groups are required to adhere to the same. The hedging transactions are periodically assessed for hedged effectiveness in accordance with the applicable guidelines.
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Market risk capital charge ` in crore Risk category Interest rate risk Equity position risk Foreign exchange risk Total capital required Includes all entities considered for Basel II capital adequacy computation 9. Operational Risk Management (ORM) The Bank and the group subsidiaries have well defined operational risk management objectives, strategies and governance structures. The Bank has a comprehensive ORM Framework that covers all activities and governance structure that helps manage operational risk effectively. Through implementation of the Operational Risk Framework and related policies, businesses are able to adopt a structured approach to identify, assess and monitor Operational Risk exposures, design appropriate mitigation strategies, and provide timely and effective reporting to Risk Committee & the Board. The Operational risk framework is supported by policies and processes that help business manage operational risk within approved tolerances, on behalf of its stakeholders. On the basis of the Enterprise wide Risk Management policy, operational risk policies are prepared for the Bank. These policies outline the ORM governance structure, key risk assessment, risk monitoring and risk mitigating activities. The policy applies to all business lines within the Bank. Most Group entities, including the Bank, have Risk Management Committees to manage operational risks. Separate sub committees also exist in a few entities to screen all potential new mandates for profitability and to ensure that compliance, legal and reputational issues are addressed before accepting any mandate. Hence, depending upon the size of the group entity, the operational risk governance structure is adequate to manage material operational risks. Senior Management in all group entities is actively involved in the management of operational risk and implementation of the respective ORM Frameworks/policies. Some group entities have separate operational risk management department. Remaining entities manage operational risk through internal control departments that vary in sophistication depending upon the business needs. The internal control framework ensures that process related operational risks are minimised by way of regular monitoring and audits. The Group internal audit team, following RBIs risk based audit methodology, and the Group compliance department provide sound platform for operational risk management along with risk management unit. The following are some of the key techniques applied by Bank and / or Group companies to manage operational risks
Capital charge 205.12 354.11 20.00 579.23
The Bank has built into its operational process segregation of duties, clear reporting structures, well defined processes, operating manuals, staff training, verification of high value transactions and strong audit trails to control and mitigate operational risks. New Product & activity notes prepared by business units are reviewed by all concerned departments including compliance, risk management and legal. All concerned departments coordinate and discuss key operational risk issues involving people, process, technology, external factors, etc. so as to minimise them or ensure adequate controls over them. In subsidiaries, internal controls unit reviews the product notes in consultation with the respective departments, including compliance and legal. The Operational risk team performs detailed risk analysis and root cause analyses on operational risk events, reported by business units, to identify inherent areas of risk and suggest suitable risk mitigating actions which are monitored for resolution. The Bank wide unusual event reporting and capture system forms the basis for this analysis. The Operational risk team also proactively scans information on external events occurring in the industry to ensure that the Bank can respond suitably to similar incidents. Bank has in place a Risks and Controls Self Assessment programme for formally assessing operational risks and related controls to mitigate these risks. The self assessments are performed by individual business units and functions. As part of the annual Risks and Controls Self Assessment (RCSA) process, areas with high risk potential are highlighted and business unit / function either proposes mitigating measures to resolve the issue or provides a rationale for why the risk is acceptable. The Bank is taking various steps to increase the overall level of operational risk awareness amongst staff at all levels using various tools like trainings, workshops, risk assessment exercise and process related compliance certification / testing, etc. Operational risk profile reports for business divisions are reviewed and discussed with the departments senior management. This enables the Bank to detect changes to the units risk profile at an early stage and take necessary corrective actions The Bank believes that this process helps build a strong risk management culture and increased level of risk awareness amongst work force. The Group level IT Security Committee provides direction for mitigating the operational risk in IT security. There is group wide IT security programme (ARISTI) to ensure complete data security and integrity. Disaster recovery and Business Continuity Plans (BCP) have been established for significant businesses to ensure continuity of operations and minimal disruption to customer services. These plans are periodically tested and reviewed to ensure their effectiveness to mitigate unforeseen risks arising out of disruptions. Its grt 2b 25
83
In the larger group entities, in order to control customer fraud in the lending business, a Risk Containment Unit has been setup for Retail lending, which identifies document related fraud submitted by customers. Also, customers Central Bureau (CIBIL) scores are examined before executing any financial transaction with the borrower. Risk transfer via insurance is a key strategy to mitigate operational risk exposure at the Bank. The Operational Risk team helps assess the quantum of insurance cover required and aligns it to the Banks current and projected operational risk exposures.
Approaches for computation of operational risk capital In accordance with the guidelines issued by RBI, the Bank has adopted the Basic Indicator Approach for calculation of operational risk capital for capital adequacy purposes. As per these guidelines, the capital for operational risk is based on a single indicator: income. The Capital charge associated with operational risk is calculated as 15% of average positive annual gross income of the previous three years.The Banks operational risk capital charge using basic indicator approach is ` 627.67 crore as at 31st March 2011. At an appropriate time, the Bank also plans to adopt the AMA approach for maintaining operational risk capital. Under this approach, operational risk capital is computed on a VaR methodology by evaluating risks on the basis of their likelihood (probability) and the financial consequence (severity) of such an event. 10. Interest Rate Risk in the Banking Book (IRRBB) The exposure of the Banks financial condition to adverse movements in interest rates is referred to as interest rate risk. The impact of market risk (including Interest Rate Risk) on the Banks trading book is actively measured through a variety of risk metrics like PV01, option greeks and VaR. The Banks tolerance with respect to its exposure to market risk in the trading book is articulated through various risk limits and monitored through different MIS reports. The Bank also provides for capital for exposure to market risk in the trading book. In the context of banking book, interest rate risk is interpreted as the current or prospective risk to both the earnings and capital of the Bank arising from adverse movements in interest rates, which affect the Banks banking book. Changes in interest rates affect a Banks earnings by altering interest-sensitive income and expenses, and the underlying value of a Banks assets, liabilities, and off-balance sheet instruments because the present value of future cash flows changes when interest rates change. Although, the very nature of the financial intermediation business makes the Bank susceptible to interest rate risk, excessive risk could potentially pose a significant threat to the Banks earnings and capital. The main bodies in charge of management of interest rate risk in the banking book in the Bank are the Asset Liability Management Committee (ALCO) and the Balance Sheet Management Unit (BMU). BMU is part of the Banks treasury. The Banks ALCO is broadly responsible for the financial management of the Balance Sheet. The ALCO sets the overall policy and limit framework within which the BMU operates. The responsibility of controlling of Interest Rate Risk in the banking book is vested with the BMU. Various asset and liability divisions in the Bank disburse assets and mobilise liabilities of varying types, tenors and rates. These divisions may be net users of fund or net providers of fund to the Bank. Individually and together, they lead to the creation of Interest rate risk in the Banking Book. Through the Funds Transfer Pricing (FTP) mechanism, the management of interest rate risk is taken out of the hands of individual asset and liability divisions and entrusted to a competent interest rate risk management body i.e. the BMU. The BMU analyses the risks inherent in the Balance sheet, determines appropriate hedging strategies in consultation with the ALCO and executes these strategies. FTP rates are reviewed by the ALCO in its meetings periodically and are calibrated to encourage the mobilisation of desirable deposits and the disbursement of favorable assets. If the directional movement or volatility of interest rate is determined to be potentially adverse, the BMU may decide to hedge the risk using derivative products like IRS/CIRS. A properly constructed hedge would insulate the Economic Value of Equity (EVE) from dissipating to a great extent. The Bank views Interest Rate Risk from two different but complementary perspectives, namely the Earnings Perspective and the Economic Value Perspective. The Bank uses gap analysis to determine the interest rate risk on the banking book from the earnings perspective. The duration gap approach is used by the Bank to determine the sensitivity of the Economic Value of Equity (EVE) of the Bank to changes in interest rates. Modified duration is computed on an account-wise basis for the interest rate sensitive assets and liabilities of the Bank. A 100 bps shock is applied on the Leveraged MDuration Gap to arrive at the EVE impact due to on-balance sheet items. The impact of 100 bps shock on off-balance sheet items is also incorporated. Through constant monitoring, risk limits, FTP, and hedging, management has constantly strived to keep the level of IRR in the Bank within acceptable levels. Details of increase (decline) in earnings and economic value for upward and downward rate shocks based on balance sheet as on 31st March 2011 are given below: o o Earnings Perspective Impact on earnings of 100 bps parallel shift in yield curve Economic Value of Equity Impact on MVE of 100 bps adverse parallel shift in yield curve Impact as a percentage of Tier1 + Tier2 Capital ` 245.75 crore 2.17% ` 34.25 crore
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Bank Reports & Statements Directors Report
Directors Report
To the Members of KOTAK MAHINDRA BANK LIMITED The Directors present their Twenty Sixth Annual Report together with the audited accounts of your Bank for the year ended 31st March 2011. FINANCIAL HIGHLIGHTS (A) Kotak Mahindra Bank Limited Consolidated financial highlights: 31st March 2011 ` crore Total income Total expenditure, excluding provisions and contingencies Operating Profit Provisions and contingencies, excluding provision for tax Profit before tax Provision for taxes Profit after tax Less: Share of minority interest Add: Share in profit of Associates Consolidated profit for the Group Earnings per Equity Share Basic (`) Diluted (`) (B) Kotak Mahindra Bank Limited Standalone financial highlights: 31st March 2011 ` crore Total Income Total expenditure, excluding provisions and contingencies Operating Profit Provisions and contingencies, excluding tax provisions Profit before tax Provision for taxes Profit after tax Add: Surplus brought forward from the previous year Amount available for appropriation Appropriations: Statutory Reserve under Section 17 of the Banking Regulation Act, 1949 General Reserve Transfer to / (from) Investment Reserve Account Transfer to Capital Reserve Transfer to Special Reserve Proposed Dividend Corporate Dividend Tax Surplus carried to Balance Sheet 204.55 40.91 (26.83) 0.69 29.00 36.88 4.37 1,494.52 140.28 28.06 1.19 6.96 40.00 29.66 (2.01) 965.91 Its grt 2b 25 4,936.60 3,611.81 1,324.79 137.09 1,187.70 369.52 818.18 965.91 1,784.09 31st March 2010 ` crore 3,883.86 2,586.86 1,297.00 485.89 811.11 250.00 561.11 648.94 1,210.05 11,029.27 8,634.27 2,395.00 147.60 2,247.40 678.16 1,569.24 26.36 23.86 1,566.74 21.73 21.60 31st March 2010 ` crore 10,053.30 7,639.71 2,413.59 510.73 1,902.86 575.50 1,327.36 18.00 (2.36) 1,307.00 18.84 18.64
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DIVIDEND Your Directors are pleased to recommend a dividend of ` 0.50 per equity share of the face value of ` 5 each (previous year ` 0.85 per equity share of the face value of `10 each), entailing a payout of ` 41.25 crore including dividend distribution tax (previous year ` 27.65 crore). The dividend would be paid to all the shareholders, whose names appear on the Register of Members/Beneficial Holders list on the Book Closure date. CAPITAL Pursuant to the approval granted by the Members at an Extraordinary General Meeting held on 27th July 2010 and receipt of other necessary approvals, in August 2010 your Bank allotted 1,64,00,000 equity shares of face value of `10/- each to Sumitomo Mitsui Banking Corporation, a public company registered under the laws of Japan on a preferential basis at a price per equity share of ` 833/- for a total consideration of ` 1366.12 crore. In September 2010, each equity share of your Bank having a face value of ` 10 was subdivided into two equity shares of the face value of ` 5 each. During the year, your Bank has also allotted 77,88,550 equity shares (adjusted for stock split number) arising out of the exercise of Employee Stock Options granted to the employees and Executive Directors of the Bank and its subsidiaries. Post allotment of equity shares and sub-division of equity shares as aforesaid, the issued, subscribed and paid-up Share Capital of the Bank stands at ` 368.44 crore comprising of 73,68,71,504 equity shares of ` 5 each. The Bank has a Capital Adequacy Ratio (CAR) under Basel II as at 31st March 2011 of 19.92% with Tier I being 17.98%. At a consolidated level the CAR was 19.46% under Basel II. During the year, your Bank has not issued any Capital under Tier II. As on 31st March 2011, outstanding Unsecured, Redeemable NonConvertible, Subordinated Debt Bonds was ` 465.70 crore and outstanding Unsecured, Non-Convertible, Redeemable Debt Capital Instruments Upper Tier II stood at ` 336.68 crore. OPERATIONS Your Bank worked on a very balanced expansion plan of the network and added 72 branches and 246 ATMs and ended the year with 321 Branches and 710 ATMs, and thereby increasing the presence to 183 locations. Your Bank added over half a million new customers this year across core banking products of savings and checking account, term deposits, overdrafts and non resident accounts. The robustness of the network manifested in the healthy growth in demand and time liabilities. The momentum gained last year in terms of distribution of asset products from the network continued in the current year. The initiatives launched last year on higher end segment of customers through a branded programme titled Privy League continued to show encouraging results. Your Bank maintained its ambition of becoming a bank of choice for the small and mid segment business enterprises and doubled the base of customers engaging in trade and foreign currency transactions. The increased network of ATMs benefitted your Bank by bringing in much higher usage from non customers and growing the interchange income manifold. Your Bank continued to put significant focus in reaching out to the NRI community last year. Lot of path breaking initiatives were rolled out. Many alliances were signed with leading exchange houses across Gulf countries to provide channels for attracting inward remittances. Through the strategic partnership with OIFC (Overseas India Facilitation Centre) your Bank participated in 3 global meets in Dubai, London and Birmingham which has firmly established your Bank as a key service provider with the NRI community. This alliance further helped your Bank to engage another 30 sub-alliances enabling the growth in business thru NRIs. Your Bank also reached out to a larger canvass of NRI customers by launching a variant to savings account targeted for the mid-income segment, P.O. Box facility in USA & UK. Your Bank launched a new remittance solution under the brand name Click2Remit. This is a multi currency platform and customers can send money into India from anywhere in the world in 8 different currencies. Your Bank also launched a credit card for the NRI customers and started the Home Loan product for NRIs in select markets. To provide higher convenience to the NRI customer your Bank launched a unique service called Click2Call & SMS2Call wherein the Bank calls back the customer within 30 minutes of receiving the intimation. Your Bank focussed on the online space including social media engagement through a partner portal called NRIMatters.com; NRI Power Podium campaign which got 13000 NRI signups in one month and found its way into India Book of Records. The number of hits on the NRI website today stands at 150000 per month, up from 2000 per month last year. Your Bank implemented several initiatives aimed towards enhancing customer service and widening the product/ services bouquet. Some of the key ones being:
Annual Combined Statement on Net Banking - Customers can now view and download their Annual Combined Statement for Savings and Current account, Investment and Demat holdings for the previous financial year. This will help customers to file Tax Returns, apply for loan etc. Card Protection Plan Your Bank in association with CPP Assistance Service Pvt. Ltd. offers card protection to protect all Kotak customers cards (Credit, Debit, ATM etc) against loss and resultant fraud. Multilingual ATMs - Multilingual (English, Hindi and Marathi) on all ATMs in Maharashtra has gone live. Other regional languages will get covered during the course of next fiscal year. Recharge Services - This enables customers to recharge their pre-paid mobile and DTH services through Kotak Net Banking using Kotak Bill Pay. Statement Registration on Net Banking - Customers now have the option to register for their preferred statement frequency and mode option on Net Banking. Kotak Mahindra Bank Limited Annual Report 2010-11
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Your Bank has also taken steps to participate in the eco drive. An E-Statement campaign was run through the year aiming to convert the customers who have registered for monthly physical statements & quarterly physical statements to register for monthly E-Statements with the theme of Save Trees, Save the Environment! Say no to Physical Statements. Interbank Mobile Payment Service This feature allows customers to transfer money instantly through mobile phone within own accounts & third party accounts within the IMPS member banks. Kotak Stock Ace - This is loan (overdraft) against securities product. Under this product your Bank provides an overdraft to customers against equity shares and mutual funds.
The last year saw several regulatory changes in the third party investment and insurance products space. While these regulatory interventions put a significant amount of revenue pressure your Bank recognises the opportunity to create a well differentiated business if it is able to create a more robust platform to advise its customers. Hence significant focus was put to creating processes with an objective to bring maximum transparency in the Banks sales process of these products and to bring more internal accountability to ensure appropriateness of sale as per customer suitability and risk profile. Your Bank believes that its customers will benefit from such stringent internal standards and in the long run it will be able to build a sustainable and robust business model around these processes. Your Bank has always focussed on its employees as the key to building a sustainable franchise and has in the past won several awards as one of the best employers. Continuing with this emphasis your Bank launched an E-Learning platform for employees which again won accolades in the IBA Technology Awards. This platform enabled your Bank to introduce courses in real time. It also has features of individual learning plans, chat facilities to enable trainers and trainees to interact online, video streaming facility, online completion status tracking, etc. Your Bank believes this will improve the quality of training inputs and will result in raising the service standards. Your Bank took definitive steps towards risk control. These include set up of - N Vigil (Internal Cameras) in all the ATMs. This will ensure that the Bank has images of the customers who did the transactions at all times and can also facilitate during fraud investigations or customer complaints. A dedicated Risk Containment Unit has been put in place to do pre-on-boarding checks and transaction level checks to ensure conformity to AML guidelines and fraud prevention etc. Your Bank continued its in-depth coverage and servicing of large and mid market corporate clients during the year. Your Bank was able to build significant franchise with many well known, reputed large corporate groups during this year while focusing on deepening existing clients through an array of customized and regular product offerings. The year saw a strong trend in credit demand from the corporate and mid market business segments both for working capital and term facilities. This is in keeping with the strong underlying economic growth. Your Bank was able to tap this opportunity and increase its share of business by offering a variety of products and services. Your Bank added 160 new cash management service customers during the year by offering them technology driven working capital cycle enhancement & efficiency solutions to effectively enrich and optimize their cash flows and liquidity through an entire suite of CMS products and services. This has been made possible through constant innovation, continuous feedback sessions and a high degree of customization to cater to the dynamic and evolving industry scenario. Your Banks dedicated team of product solution experts strives to provide systemic structured solutions to suit to the customers needs. The indepth understanding of the customers business and the superior delivery models has helped in achieving high levels of customer satisfaction. The Commercial Vehicle and Infrastructure sectors continued the growth momentum through the year aided by the positive IIP (Index of Industrial Production) and Agriculture growth numbers. Commercial Vehicle operator margins improved as a result of higher freight realisations, which offset the increase in diesel cost. The growth in the core sector and focus on infrastructure led to a healthy growth in the order book position of contractors in the Infrastructure space. As a result, disbursement numbers touched record levels as did the bottom line. The year also saw good growth in bank lines in both the sectors. The monsoon has been more than adequate this year. However the impact of the growing economy and increasing purchasing power of the rural population has meant a steep rise in prices of all agro commodities. Riding this boom the Agri Business of your Bank has shown a robust growth with the total portfolio slated to cross ` 4300 crore this year, up from last years portfolio of ` 3200 crore. This is a growth of 35% year-on-year. Your Bank also ensured to reach the targeted norms for lending to the Agri sector as laid out by the regulator for the second year running. The Agri business rode on an impressive growth in the tractor loans, commodity funding which doubled in portfolio size and an impressive growth in the working capital facilities to agro-processing sector. Delinquency levels in this portfolio have also been at all time lows and are even better than some of the other urban oriented advances indicating the financial strength of clients associated with agriculture who are riding the commodity price boom. The Agri business has also become the corner stone for your Banks targets for meeting financial inclusion and lending to the weaker sections of the society such as small and marginal farmers, village artisans and other socially deprived sectors identified by the government. These advances now have crossed a level of 8% of your Banks total advances. Your Bank is in the process of identifying more target segments in this sector to reach out to. In the Home Finance business while there was strong growth in the first half of the year, the second half of the year saw stabilisation and slight drop in demand from customers. Your Bank introduced innovative new products during the year such as part tenure fixed home loans and loan against property. Your Bank branches continued to play an important part and evolved into a stable contributor month on month. There was an increased focus on existing Bank customers and their contribution among the secured asset products went up. The Personal Finance business saw good growth and established your Bank as one of the leading lenders of unsecured loans in the market. High-ticket products continued to be the focus and were the biggest contributor to the overall volumes. The Personal Finance business also Its grt 2b 25
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added new products to their existing bouquet of financial services for businessmen. Working capital products in ` 50 lacs to ` 1.5 crore range (both fund based as well as non-fund based) were some of the new offerings. Your Bank resolved several NPA accounts pertaining to stressed assets acquisition. Supreme Court upheld the NPA assignment between banks and other financial institutions. This landmark judgment will further help in resolving several NPA accounts, which were litigated in several courts for the past few years. The NPA portfolio sale by banks continued to be sluggish and the serious pricing mismatch between the buyers and sellers continued, this year as well. Your Bank continued to invest in large single asset transactions, with good prospects of turnaround in stressed companies. Further, your Bank has diversified in buying large retail NPA loans from other banks. During the year, your Bank saw a robust growth in its overall advances portfolio. This was primarily driven by the overall growth of the corporate sector, spurred by strong domestic consumption demand for their products post the recessionary period. A robust NPA management practice and strong internal controls, aided by a strong economic growth, has led to a reduction in your Banks gross/net NPAs. On Treasury side, your Bank has an active proprietary desk trading in all products such as Fixed Income, Money Markets, Derivatives, Foreign Exchange and Bullion. The Treasury plays an important role in balance sheet management and implementation of Funds Transfer Price between various business units. In the area of Debt Capital Markets (DCM) your Bank offered the following products: syndication of loans, bonds, mezzanine financing, promoter funding and acquisition financing and securitisation. During the year, your Banks Treasury started Correspondent Banking Division to build and leverage on relationships with offshore banks for improving quality and international reach for its customers. Your Banks credit card business has issued 1.5 lac cards and is in its third year of operations. The card design and product benefits have received overwhelming response from customers. The customer spends across all variants of cards have been amongst the top three in industry. The premium range of our products VISA Platinum and VISA Signature have driven the spends growth in the portfolio and it contributes to 34% of the spends while accounting for 12% of customer base. This has reaffirmed the customer acceptability of the product. Credit card business clocked ` 600 crore of total spends in the year with a book size of ` 300 crore. Industry credit cards spends has shown sign of growth after last years recessionary economic conditions. Your Bank entered into a strategic arrangement with PVR Cinemas, one of the elite name in entertainment industry, to distribute credit card products aimed at upmarket customers. This partnership opens up the opportunity to tap new customer segment hitherto untapped by your Bank. Your Banks technology team concentrated on innovation to provide new products and conveniences to the customers. This ranged from mobile to mobile payments (IMPs) to providing ATMs at remote locations on an air card. System upgrades for continuous improvement in customer experience were a focus. The excellence of the CRM and Call Center which were rolled out across the Kotak Group, were recognized by awards from the Indian Banking Association and Asian Bankers Technology Summit respectively. In preparation of the planned Core Banking upgrade, the technology foundation has been enhanced. Service Oriented Architecture was introduced with the use of a world class product for system integration. Standard frameworks for digitization and internal development expedite deployment of new systems. SUBSIDIARIES Your Banks subsidiaries are established players in the different areas of financial services, viz. car finance, investment banking, stock broking, asset management and life insurance. While the Indian economy continued its growth path the businesses in which the subsidiaries operate had its own share of challenges on account of market fragmentation, change in market mix, dramatic regulatory changes and the like. Kotak Mahindra Prime Limited, the car finance company continues to have robust growth in lending coupled with fall in delinquencies. Kotak Securities Limited, the stock broking company continued to face adverse effects of changes in mix in market volumes shifting to the low-yield equity derivative segment. The company also continues to face competition in the market place due to continuous entry of new players. Kotak Mahindra Capital Company Limited had a relatively better year, thanks to handling primary issues. But nevertheless, the investment banking industry continues to face pressure. Kotak Mahindra Asset Management Company Limited faced an outflow of a large portion of liquid funds. Coupled with changes in regulations in the mutual fund industry it had to tweak its business strategy. Kotak Mahindra Old Mutual Life Insurance Limited had to deal with regulatory changes that changed the direction of the industry. Business strategy, product mix and management of costs had to be continuously worked upon to stay on course. Due to range bound secondary equity markets and net outflows in many India dedicated International funds, the International subsidiaries reported drop in profits. The various activities of the subsidiaries are outlined in the Management Discussion and Analysis section appended to this Report. In terms of the general exemption granted by the Central Government vide their General Circular No.2/2011 dated 8th February 2011 under Section 212(8) of the Companies Act, 1956, abridged Annual Report which consists of the financial statements of your Bank on standalone basis as well as consolidated financial statements of the group for the year ended 31st March 2011, have been sent to all the members of the Bank. It does not contain Annual Reports of the Banks subsidiary companies. The Bank will make available full Annual Report (including the Annual Reports of all subsidiaries) upon request by any member of the Bank. These Annual Reports will be available on the Banks website viz. URL : http://ir.kotak.com/annual-reports and will also be available for inspection by any member at the Registered Office of the Bank.
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EMPLOYEE STOCK OPTION SCHEME The stock options granted to the employees currently operate under two schemes, namely Kotak Mahindra Equity Option Scheme 2005 (Scheme 2005) and Kotak Mahindra Equity Option Scheme 2007 (Scheme 2007). The disclosures below are in respect of the year ended 31st March 2011. Options granted during the year Pricing Formula Scheme 2005 Scheme 2007 ESOP Scheme 2005 & 2007 The Exercise Price shall be a price, as may be determined by the Board/ESOP/ Compensation Committee, equivalent to or discounted up to 50% of the Average Market Price. The Average Market Price for this purpose would mean the average of the closing price of Equity Shares of the Bank, during two weeks period prior to the date of the meeting of Board/ESOP/Compensation Committee at which Plan Series under the Scheme is approved, on the Stock Exchange, where there was highest trading volume during the said two week period, on which the Equity Shares of the Bank are listed. Plan Series means a documented plan framed by Board/ESOP/Compensation Committee for each tranche of grant of Options, to all Eligible Employees, at a specific Exercise Price (which is determined by the Board/ESOP/Compensation Committee for the purpose of that particular Plan Series) and other terms and conditions as mentioned in that Plan Series. The Board/ESOP/Compensation Committee under special circumstances decides that the Exercise Price shall be ` 5/- per share. In such cases, the immediately succeeding Directors Report/Corporate Governance Report shall carry details of the same. Options in force at the beginning of the year Options Vested during the year Options exercised during the year Total number of shares arising as a result of exercise of options Options lapsed Variation of terms of options Scheme 2005 Scheme 2007 Scheme 2005 Scheme 2007 Scheme 2005 Scheme 2007 Scheme 2005 Scheme 2007 Scheme 2005 Scheme 2007 49,88,600 options 1,28,14,250 options 43,75,000 options 29,31,830 options 46,42,120 options 31,46,430 options 46,42,120 equity shares of ` 5/- each 31,46,430 equity shares of ` 5/- each 3,46,480 options 9,97,050 options Nil 47,49,240 options
No variations made in the terms of the options granted except in respect of Scheme 2005 with respect to recovery from the relevant eligible employees, the Fringe Benefit Tax on exercise of options as permitted by regulations. Exercise amount received: Scheme 2005 Scheme 2007 Scheme 2005 Scheme 2007 Scheme 2007 Series 27 Series 28 ` 76,92,34,000/ ` 55,30,86,290/ Outstanding options Nil Outstanding options 1,34,20,010 Name of Senior Management Personnel Mr. C. Jayaram Mr. Dipak Gupta Mr. C. Jayaram Mr. Dipak Gupta No. of options granted 50,000 50,000 56,000 70,000
Money realized by exercise of options
Total number of options in force Details of options granted during the year to : (i) Senior management personnel
(ii) Any other employee who receives a grant in any one year of options amounting to 5% or more of options granted during that year (iii) Identified employees who were granted option, during any one year, equal to or exceeding 1% of the issued capital (excluding outstanding warrants and conversions) of the Company at the time of grant Diluted Earnings Per Share (EPS) pursuant to issue of shares on exercise of options calculated in accordance with AS-20 Earnings Per Share
Nil
Nil *The diluted Earnings Per Share (EPS) pursuant to issue of shares on exercise of options calculated in accordance with AS20 is ` 21.60 (Consolidated) and ` 11.28 (Standalone). Its grt 2b 25
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Where the company has calculated the employee compensation cost using the intrinsic value of stock options, the difference between the employee compensation cost so computed and the employee compensation cost that shall have been recognized if it had used the fair value of the options, shall be disclosed. The impact of this difference on profits and on EPS of the Company shall also be disclosed.
*Had the Bank (Consolidated) followed the fair value method for accounting the stock option compensation expense would have been higher by ` 39.39 crore with consequent lower Consolidated profits. On account of the same the diluted EPS of the Bank (Consolidated) would have been less by ` 0.36 per share. *Had the Bank (Standalone) followed the fair value method for accounting the stock option compensation expense would have been higher by ` 23.25 crore with consequent lower Standalone profits. On account of the same the diluted EPS of the Bank (Standalone) would have been less by ` 0.21 per share. *The weighted average price of the stock options exercised is ` 437.07 and the weighted average fair value is ` 206.73.
Weighted average exercise prices and weighted average fair values of options shall be disclosed separately for options whose exercise price either equals or exceeds or is less than the market price of the stock.
Notes: 1) *Above figures are derived by considering the options granted and exercised by employees of the Bank and its subsidiaries. 2) The number of options specified hereinabove have been adjusted for all corporate actions since the date of grant including subdivision of the face value of equity shares of the Bank from ` 10 to ` 5 during the year. A description of the method and significant assumptions used during the year to estimate the fair values of options, including the following weighted average information: A. Stock price It is the closing market price on the National Stock Exchange of India Limited prior to the meeting of the Board in which the options are granted. Volatility Volatility is a measure of the amount by which a price has fluctuated or is expected to fluctuate during a period. The measure of volatility used in the Black-Scholes option-pricing model is the annualized standard deviation of the continuously compounded rates of return on the stock over a period of time. Accordingly, daily volatility of the Banks stock price on the NSE for the period corresponding to the respective expected live of the different vests, prior to the grant date has been considered. Risk free interest rate The risk-free interest rate being considered for the calculation is the interest rate applicable for maturity equal to the expected life of the options based on the zero-coupon yield curve for Government Securities as on the date of the respective grant. Time to Maturity/Expected Life of options The minimum life of a stock option is the vesting period and the maximum life is vesting period plus the exercise period. The Expected life of the options has been calculated as the average of the two extremes the minimum life and the maximum life. Since each vest has been considered as a separate grant, the expected life has been calculated for each vest separately. Dividend yield The dividend yield for each grant has been derived by dividing the dividend per share by the market price per share. Weighted average information in respect of above assumptions has been provided in note 14 of Schedule 17 of the notes to accounts to the Consolidated financial statement of the Bank. Weighted average information in respect of above assumptions has been provided in note 10 of Schedule 18 B of the notes to accounts to the Standalone financial statement of the Bank.
B.
C.
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CORPORATE GOVERNANCE Pursuant to Clause 49 of the Listing Agreement with the Stock Exchanges, a separate section entitled Corporate Governance has been included in this Annual Report. The Bank has implemented number of recommendations given in the Corporate Governance Voluntary Guidelines 2009 by the Ministry of Corporate Affairs and is examining the possibility of implementing the remaining recommendations. DIRECTORS Mr. Asim Ghosh retires by rotation at the Twenty Sixth Annual General Meeting and is eligible for re-appointment. Mr. Prakash Apte and Mr. Amit Desai were appointed with effect from 18th March 2011 and Mr. N.P. Sarda with effect from 1st April 2011 as Additional Directors of the Bank. Pursuant to the proviso to Section 260 of the Companies Act, 1956, they hold office as Directors up to the date of this Annual General Meeting but are eligible to be appointed as Directors. In terms of Section 257 of the Companies Act, 1956 the Bank has received notice in writing from members along with a requisite deposit of ` 500/- each proposing the candidature of Mr. Prakash Apte, Mr. Amit Desai and Mr. N. P. Sarda for their appointment as Directors. Mr. Prakash Apte is presently the Non-Executive Chairman of Syngenta India Limited with considerable experience in agricultural sector. Mr. Amit Desai is an eminent professional with 30 years experience. Mr. N.P. Sarda is a Chartered Accountant for more than 40 years and past President of ICAI. Mr. Anand Mahindra, Mr. Cyril Shroff and Mr. Shivaji Dam have retired as Directors of the Bank effective 21st March 2011 due to completion of their eight years tenure pursuant to the provisions of Section 10A(2A)(i) of the Banking Regulation Act, 1949. Your Directors place on record their appreciation for the valuable advice and guidance rendered by each one of them during their tenure as Directors of the Bank. The Board of Directors of the Bank, at its meeting held on 5th May 2011, has re-appointed Mr. Uday Kotak as Whole-time Director of the Bank designated as Executive Vice-Chairman and Managing Director for a period from 22nd March 2012 to 31st December 2014, subject to the approval of the shareholders and of the Reserve Bank of India. Mr. Dipak Gupta and Mr. C. Jayaram have been re-appointed as Wholetime Directors of the Bank designated as Joint Managing Directors for a period from 1st January 2012 to 31st December 2014, subject to the approval of the shareholders and of the Reserve Bank of India. The approval of the shareholders in this regard is being sought at the ensuing Annual General Meeting of the Bank. AUDITORS Messrs S. R. Batliboi & Co., Chartered Accountants, auditors of your Bank, retire on the conclusion of Twenty Sixth Annual General Meeting. Pursuant to the guidelines issued by the Reserve Bank of India, an audit firm is allowed to continue as the Statutory Central Auditor of a bank for a continuous period of four years only. Accordingly, it is proposed to appoint, subject to regulatory approvals, Messrs S. B. Billimoria & Co., Chartered Accountants as the statutory auditors of the Bank for the current financial year in place of Messrs S. R. Batliboi & Co. who have completed four years as the statutory auditors. The approval of the shareholders in this regard is being sought at the ensuing Annual General Meeting of the Bank. STATUTORY INFORMATION The Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1998, are not applicable to your Bank. EMPLOYEES The employee strength of your Bank along with its subsidiaries as of 31st March 2011 was around 20,500 as compared to around 20,000 employees a year ago. The Bank standalone had around 11,000 employees as of 31st March 2011. 102 employees employed throughout the year and 23 employees employed for part of the year were in receipt of remuneration of ` 60 lacs or more per annum. Your Bank was adjudged amongst Top 25 in Indias Best Companies to Work For in 2010 by The Great Places to Work Institute and continues to be amongst Top 25 Best Employers in India consistently from 2007 till date as adjudged by the AON Hewitt Best Employers Survey. While your Bank and its subsidiaries continued to focus on various initiatives to provide the best employment experience to the employees, new and innovative products and processes were introduced to further enhance both quality and productivity of our human capital. Substantial investments were made in training and developing employees across levels to improve productivity, service quality, personal effectiveness and supervisory capability. Structured leadership development programs and customized courses in association with leading academic institutions were also rolled out to groom future leaders and build a talent pool that has depth in knowledge and competence. The best in class Talent Management practices and HR processes have enabled the organization to build a cadre of highly committed and engaged employees who consistently excel in delivering our customer value proposition. In accordance with the provisions of Section 217(2A) of the Companies Act, 1956 and the rules framed thereunder, the names and other particulars of employees are set out in the annexure to the Directors Report. In terms of the provisions of Section 219 (1)(b)(iv) of the Companies Act, 1956, the Directors Report is being sent to all the shareholders of the Bank excluding the aforesaid annexure. The annexure is available for inspection at the Registered Office of the Bank. Any shareholder interested in obtaining a copy of the said annexure may write to the Company Secretary at the Registered Office of the Bank. Its grt 2b 25
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DIRECTORS RESPONSIBILITY STATEMENT The Directors, based on the representations received from the operational management, confirm in pursuance of Section 217 (2AA) of the Companies Act, 1956 that: (i) (ii) your Bank has, in the preparation of the annual accounts for the year ended 31st March 2011, followed the applicable accounting standards along with proper explanations relating to material departures, if any; they have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Bank as at 31st March 2011 and of the profit of your Bank for the financial year ended 31st March 2011; they have taken proper and sufficient care to the best of their knowledge and ability, for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Bank and for preventing and detecting fraud and other irregularities; and the annual accounts have been prepared on a going concern basis.
(iii)
(iv)
ACKNOWLEDGEMENTS Your Directors would like to place on record their gratitude for the valuable guidance and support received from the Reserve Bank of India, Securities and Exchange Board of India, Insurance Regulatory and Development Authority and other Government and Regulatory agencies. Your Directors acknowledge the support of the shareholders and also wish to place on record their appreciation of employees for their commendable efforts, teamwork and professionalism. For and on behalf of the Board of Directors Dr. Shankar Acharya Chairman Place: Mumbai, Date : 5th May 2011
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Bank Reports & Statements MDA
Management Discussion & Analysis

The economic environment in advanced economies indicated some pick-up in growth in the second half of FY2010. However, the pace of economic recovery remained uneven and the sustainability of the recovery process remained in doubt. The emerging market economies (EMEs) recovered ahead of the advanced economies. In India, economic growth recovered sharply and matched the high growth phase of pre-Lehman era. This was also accompanied by a sharp pick-up in inflationary pressures, leading to the RBI adopting a graduated withdrawal of monetary stimulus. GDP growth started to indicate recovery trends, starting in the Q4 FY2010, when it grew by 8.6% from 7.3% in Q3 FY2010. This recovery trend sustained and also strengthened in the first and second quarters of FY2011, averaging at 8.9%. The third quarter indicated some slowing trends in the GDP growth, mainly on account of a slowing industrial growth, down to 5.7% compared to 11.7% in the first quarter of FY2011. Manufacturing sectors growth weakened sharply from 13% in the first quarter to 5.6% in the third quarter on account of a base effect from the previous year as well as due to cyclical slowdown on account of higher interest rates. Services sector growth also weakened in the third quarter of FY2011 to 8.7%, compared to an average of 9.5% in the first half. A further softness of the GDP growth in the third quarter was prevented by a strong agricultural sectors performance at 8.9%, compared to an average growth of 3.5% in the first half. On the expenditure side, private consumption demand has stayed strong, indicated by its share in GDP remaining steady at around 60% in the first three quarters of the financial year. However, the investment demand is seen to be softening recently. The slowing investment trend is also indicated by the capital goods production trends in the Index of Industrial Production. The RBI achieved a non-disruptive normalization of monetary policy from 19th March 2010 onwards, when the first 25 bps increase in the Repo and the Reverse Repo was announced by the RBI. RBI adopted a calibrated tightening of the policy interest rates and liquidity conditions. The RBI used CRR as a liquidity tightening measure and increased it from 5% in April 2009 to 6% at April 2010 end. The strategic and preferred shift towards a sustained deficit of liquidity in order to enhance monetary policy transmission was announced by the RBI in early July 2010. This was helped by the outflow of resources from the banking system due to payment by telecom companies to the Government on account of 3G spectrum auction, as also by a sharp increase in the demand for currency on account of high inflation. The Repo rate emerged as the operative policy rate for the tightening of monetary policy. The liquidity tightened significantly and was beyond ` 1,00,000 crore on instances. To bring down the severity of liquidity strain and ensure that the liquidity stress does not affect flow of credit to productive sectors of the economy, Reserve Bank of India (RBI) introduced a second LAF auction and reduced the mandatory requirement of SLR to 24%. Further, banks were allowed to borrow from the RBI by maintaining a shortfall in the SLR requirement by a maximum of 1% of NDTL without having to pay a penal interest. Despite the significant increase in the policy interest rates and also tight liquidity conditions, inflationary conditions have remained on the higher side. Headline WPI inflation had peaked at around 11% in April 2010. Due to the favourable base effect from the previous financial year and also some softening of the manufactured products price pressures, due to the past monetary tightening, headline WPI inflation exhibited a moderating trend till around November 2010 when it was 8.1%. However, renewed price pressures were seen from December onwards with the new drivers being fuel and non-fuel international commodity prices and demand-supply imbalances in some food items. As on March 2011, headline WPI was at 9.0%, with core inflation (inflation ex-food,-ex fuel) also firming up to 8.9%. In the first half ofFY2011, the current account deficit (CAD) emerged as a significant policy concern. CAD aggregated to around US$30 bn in this period on the back of a widening trade gap and also a lower support from net invisibles. The enhanced risks arising out of the rising CAD were negated by robustness in the net capital flows, especially in the second quarter of FY2011 when FII flows surged to US$18.8 bn in a single quarter, compared to US$3.5 bn in the first quarter of FY2011. There was also a change in the composition of capital flows, with large increase in portfolio flows replacing FDI flows. Some of the concerns on the current account eased in the third quarter as the deficit fell to US$9.7 bn from US$16.8 bn in the previous quarter. This improvement was driven by a narrowing of the trade deficit as exports picked up sharply to grow at 39.8% in the third quarter with the improvement in the global demand. Further, invisible receipts were stronger than in the recent past quarters. However, in the third quarter, capital account surplus was lower, with FII inflows once again reducing on account of a global risk aversion on the back of European peripheral sovereign debt worries. All this led to the Balance of Payments surplus in the first three quarters of FY2011 to be restricted to USD$bn, almost unchanged from the first three quarters of the previous fiscal. Consolidated Financial Performance The financing businesses of the group, including the Bank have continued to grow on the back of the robust growth in the economy. However, the capital market businesses such as stock broking and mutual funds have seen their profits drop due to a combination of forces. Consolidated profit after tax grew 20% to ` 1,567 crore. As on 31st March 2011, the Group has a distribution network of branches, franchisees, representative offices across 528 cities and towns in India and offices in New York, London, California, Dubai, Abu Dhabi, Mauritius and Singapore. The group services around 8.8 mn customer accounts. Assets under management (AUM) as at 31st March 2011 was over ` 47,850 crore (approximately US$ 11 bn), comprising assets managed and advised by the Group. Of this, equity assets managed / advised by the Group were around ` 21,126 crore. The AUM with Kotak Mahindra Mutual Fund (Kotak Mutual) was over ` 24,300 crore. Awards and Recognitions During the year the Bank won the following awards: The Bank was amongst the Top 25 Best Employers in India 2011 by Hewitt Associates and the only bank amongst the Top 25. The Bank received this award for the third time in a row. Its grt 2b 25
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Management Discussion & Analysis (Contd.)

Adjudged second in BFSI sector and 23rd overall in Indias Best Companies To Work For 2010" by a joint study of The Economic Times and Great Place to Work Institute, India. Awarded Best Local Cash Management Bank by Asiamoney 2010. Ranked No. 2 in India - companies with Best Corporate Governance Practices - IR Global Rankings 2010. Awarded The Ingenious 100 Award by IDG Indias CIO Magazine for Storage Virtualization. Ranked no. 1 in seventeen categories including range of investment products/ advisory services Euromoney. Awarded for Customer & Brand Loyalty in Banking Sector at 4th loyalty Summit amongst all leading private, foreign and PSU banks. Awarded Best Call Centre Project from Asian Banker for a solution which integrates multiple contact centre across several locations that enhances agent productivity. Kotak Bank won IBA technology awards for : Best use of Technology in Training and e-learning Initiatives Best Customer Initiative - CRM As at 31st March 2011 the Bank has built a network of 321 full fledged branches spread across 182 locations and 710 ATMs.
Consolidated Financials ` crore Particulars Total Income* Profit before Tax Consolidated Profit after tax (PAT) * income is net of sub-brokerage ` crore Particulars Consolidated net worth Earnings per share (diluted) (`) Book Value per share (`) Net Interest Margins (NIM) % Return on Average Networth % Net NPA% excluding acquired stressed assets Consolidated capital adequacy ratio% ^ normalised Bank and Its Key Subsidiaries: Financial and operating performance 2010-11 10,962.94 21.60 148.78 5.6%^ 16.4% 0.43% 19.5% 2009-10 7,910.94 18.64 113.62 6.1% 18.2% 1.14% 19.3% 2010-11 10,963.74 2,247.40 1,566.74 2009-10 9,985.90 1,902.86 1,307.00
Bank Highlights The Bank along with its subsidiaries, offers a wide range of financial products and services to its customers. The key businesses are commercial banking, investment banking, stock broking, car finance, asset management and life insurance. The Bank has four broad business segments: Lending Retail liabilities and branch banking Corporate banking (including small and medium enterprises - SME) Treasury and investments Profit before tax of the Bank for FY2011 was ` 1187.70 crore as against ` 811.10 crore for FY2010. Profit after tax of the Bank was ` 818.18 crore in FY2011 compared with ` 561.11 crore in FY2010. The break up of segmental results is as follows: ` crore Segment 2010-11 2009-10 Treasury and BMU 304.83 367.46 Corporate/ Wholesale Banking 543.89 385.46 Retail Banking 338.72 61.06 Sub-total 1,187.44 813.98 Unallocated Income/ (expense) 0.26 (2.87) Profit before tax 1,187.70 811.10 As per BASEL II, the capital adequacy ratio of the Bank as at 31st March 2011 was 19.92% (31st March 2010 18.35%). Tier I ratio was 17.98%. Advances of the Bank as at 31st March 2011, stood at ` 29,329.30 crore (` 20,775.05 crore as at 31st March 2010), showing a growth of 41%. As at 31st March 2011, the net NPAs of the Bank excluding the acquired stressed assets were at 0.50% of net advances (1.25% as at 31st March 2010). The net NPAs of the Bank including acquired stressed assets were at 0.72% of net advances as at 31st March 2011 (1.73% as at 31st March 2010).
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As at 31st March 2011, the deposits of the Bank were ` 29,260.97 crore (` 23,886.47 crore as at 31st March 2010), showing a growth of 23%. As at 31st March 2011, deposits comprised of ` 5,460.19 crore of current account deposits (` 4,992.13 crore as at 31st March 2010), ` 3,330.33 crore of savings deposits (` 2,471.00 crore as at 31st March 2010) and ` 20,470.44 crore of term deposits (` 16,423.33 crore as at 31st March 2010). Advances The break up of the advances of the Bank is given below: ` crore Segment A. Lending Commercial Vehicles & construction equipment Mortgage Loans Agriculture Finance Personal Loans B. Corporate Banking C. Others Total Advances Lending Commercial vehicles and Construction equipments The growth momentum in commercial lending gathered pace over the year sustained by robust growth in commercial vehicles (CV), construction equipments (CE) and tractors. In the industry, CV sales grew by 30%, CE by 25% and tractors by 15% during the year. Growth in the economy led to higher margins and cash flows resulting in improved collections and thus very low levels of non performing assets for the Bank. Working capital needs of the customers also increased. Small commercial vehicles constituted as much as 42% of total CV sales, which is significant considering that this segment opened up just five years back. Freight rates remained firm during the year and on the back of recovering economy, dealer inventory levels saw a sharp drop. There was an upsurge in construction equipment sales in FY2011 and the industry grew by 25%, triggered by infrastructure related investments. Implementation of infrastructure projects picked up and the construction order books reached healthy levels. Demand for construction equipment was driven by Power, Roads, Mining, Real estate and Irrigation segments. The growth rate is particularly good in larger equipments segment. Agriculture Finance The farm sector recorded a robust performance due to record output in some food as well as non-food crops in FY2011. The recent estimates of agriculture output suggest that food grain production is expected to increase by about 8.1%, from 218.1 million tonnes in FY2011. Combined with this, increased rural prosperity arising out of government programmes, diversifying use of tractors, improved penetration of rural credit and labour shortage drove up tractor sales, which crossed five lakh units during FY2011. Agriculture advances of the Bank showed an increase of 37% year on year keeping pace with the advances growth of the Bank. This was achieved on the back of record food output of the farm sector. The Bank continued to cross the targeted lending of 18% of the Bank advances to the agriculture sector as required by the priority sector norms of RBI. The sector has shown great buoyancy led by increasing prices of commodities. Demand for agriculture advances continues to be robust. Portfolio delinquencies in this sector reached all time lows. The Bank increased its focus on the retail and SME segment of the agriculture sector to increase the reach into the rural & semi-urban markets. The Bank also started dedicated agriculture advances oriented rural branches in line with its focus on increasing financial inclusion. Personal Finance and Mortgage Business In the Home Finance business while there was strong growth in the first half of FY2011, the second half of the year saw stabilisation and slight drop in demand from customers. There was an increased focus on existing Bank customers and their contribution among the secured asset products went up. Loan against Property, a strong product proposition, continues to see a great opportunity along with the high-ticket personal finance products suited for the business community. The Personal Finance business saw good growth. High-ticket products continued to be the focus and were the biggest contributor to the overall volumes. The Personal Finance business also added new products to their existing bouquet of financial services for small businessmen. Corporate Banking Corporate Banking is broadly focused at two business segments mid-market and large corporate. The segmentation is done to cater to their unique need to have specific set of offerings and services. Corporate banking serves a number of large business houses and also commands a good presence in the mid-market customer space. The strategy of building business with large corporates has been to penetrate deeper with more products. The mid-market strategy was clearly Its grt 2b 25 31-Mar-11 6,251.06 6,876.45 4,219.61 1,304.97 9,295.98 1,381.23 29,329.30 31-Mar-10 4,414.22 4,711.63 3,088.62 1,314.98 6,476.13 769.47 20,775.05
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driven by targeted client acquisition and becoming one of the key bankers to the corporate. The growth of the Corporate Bank franchise has been strengthened by utilizing the opportunities through synergies in investment banking and other business verticals. The focus on above segments and these synergies resulted in the Corporate Banking division adding 250 customers during the year. Branch Banking The Bank added 72 branches, 179 off-site and 67 onsite ATMS during the financial year taking the total number of branches to 321, off-site ATMs to 403 and onsite ATMs to 307. Total number of deposit accounts as at 31st March 2011 are around 16 lakh and a debit card base of around 12 lakh. Some of the key initiatives that the branch banking business undertook during the year are summarized as under:
Embarked on a project to promote financial inclusion by evolving new models for effective outreach involving technology based solutions. Added two more commercial bank branches at Gurgaon and Pune to handle trade transactions. This move is aimed at driving a substantial increase in the throughput of the system with a reduced turnaround time and improved customer service. Partnered with NRI Matters, a social media initiative, aimed at building connectivity among the NRI community and trying to address all financial / tax related issues of Indian diaspora living outside India. Undertook a drive to bring down customer grievance / query resolution time lines. This concentrated effort yielded significant reduction not only in bringing down average turnaround time but also showed an improvement in the customer satisfaction index. Launched a set of products, including Credit Card, Home Loans and a remittance platform branded as Click2remit, aimed at enhancing stickiness of NRI customers which is one of the focus areas for the Bank. The expanded ATM network enhanced the brand presence apart from generating additional revenue. With an objective to bring maximum transparency in distribution of investment products, a very elaborate sales process has been introduced. The process follows a matrix which cuts across size of transaction and category of products or profile of customer to ensure appropriateness of the sale and / or selection of product. Risk containment unit was made operational which handles hindsighting of transactions, analyses critical process deviations and appropriateness of employee / customer actions, ensures strict adherence to statutory / compliance guidelines and maintains vigilance on the quality of KYC standards of new customers. Several initiatives were undertaken aimed at improving the knowledge quotient of the front line and supervisory staff at the branches. This was achieved through a right mix of in-house and external trainers with training programs encompassing products and soft skills development. The Bank was once again appointed as a primary financial advisor by Overseas Indian Facilitation Centre (OIFC). This provided us with an opportunity to partner with the Government of India and Confederation of Indian Industry in presenting its product bouquet to NRI / PIOs community across the globe.
Treasury Against the backdrop of the prevailing economic environment, the Banks treasury responded with a renewed focus on liquidity management and efforts towards bridging of gaps in structural liquidity of the Bank. Efficient management of residual liquidity resulted in significant reduction in the cost of liabilities. The Balance Sheet Management Unit (BMU) was able to maintain all regulatory obligations like CRR and SLR. The primary dealership desk was able to exceed all its bidding and success commitments made to the RBI. In response to increasing and volatile interest rates, the Bank lowered the churn period of its bond trading book. Shrinking of spreads of corporate bonds over the G-Secs coupled with increased FII activity presented numerous opportunities in the corporate bond market which the treasury was able to successfully capitalize on. Responding to increasing domestic interest rates and some uncertainty in European markets, currency markets, remained volatile. Given this volatility, trading operations in foreign exchange was measured and calibrated within the Banks risk appetite. The focus of the treasury continued to be on foreign exchange flow business. The Bank achieved a healthy growth in the number of transactions and volumes in the foreign exchange merchant business. Treasury, having reinforced its processes in the bullion business, saw a rise in volumes and added new clients . Treasury continued its increased focus on bond and loan syndication markets as part of its Debt Capital Markets (DCM) business, with some success in international debt raising for its clients. The Bank continued its non-participation in the FX derivative market both on proprietary account and client account pending further clarity on legal, regulatory, accounting and taxation fronts. Correspondent Banking Division was started to build and leverage on relationships with offshore banks for improving quality and international reach for its customers. During the year, treasury also carried out up-gradation of technology platform and re-engineering of various treasury operating processes. Treasury and Asset Liability Committee (ALCO) continued heightened vigil on liquidity, markets, counterparty and sovereign risks.
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Subsidiaries Highlights Kotak Mahindra Prime Limited Kotak Mahindra Prime Limited (KMP) is primarily into car financing which includes financing of retail customers of passenger cars, multi-utility vehicles and inventory and term funding to car dealers. In addition to car finance, KMP also carries out other lending activities which includes loan against securities, securitization / assignment of loans, corporate loans and developer funding. The passenger car market in India grew by 32% in FY2011 as compared to a growth of 25% in FY2010. Total sales of cars and multi utility vehicles crossed 24.6 lakh units in FY2011 versus 18.6 lakh units in FY2010. KMPs gross advances grew by 34% to ` 11,208 crore in FY2011 from ` 8,379 crore in FY2010. KMP continued to focus on maintaining margins in the retail car finance business, fee based income, controlling costs and credit losses, while improving its positioning in the car finance market by scaling up business. KMP has been a part of the car finance industry for more than 20 years. Over this period, it has carved out a niche for itself and is considered a leader in the industry. KMPs strong relationship with key stake holders in the industry viz. manufacturers, dealers and customers have helped its growth. Other lending activities have also contributed positively towards the companys growth. Financial Highlights ` crore Particulars Gross Income Profit before tax Profit after tax Kotak Securities Limited The Sensex closed at 19,445 at the end of FY2011 (17,528 at the end of FY2010) with a high of 21,108 and a low of 15,960. Benchmark NIFTY closed at 5,249 and 5,833 respectively with a high of 6,338 and a low of 4,786. There was a significant change in the average daily volumes (ADV) year on year. ADV for cash segment reduced to ` 18,630 crore in FY2011 from ` 22,784 crore in FY2010. ADV for derivative segment increased to ` 1,16,437 crore from ` 72,938 crore during same period. The year saw a significant skew in the market volumes towards derivatives. The year saw a significant skew in the market volumes towards derivatives. The brokerage rates in the cash segment are higher than the derivative segment. Change in this mix is a key reason for lower brokerage income during the year. Second quarter of the financial year saw a surge of FII investments in the secondary markets with the investor confidence levels perceived to be high. KS continued to outperform other syndicate members in IPO and QIP offerings notching a higher market share. KS research continued to be recognized for its in-depth high quality financial modeling, width of stock coverage and valuable investment insights. Awards and Recognitions KS received the following awards during the financial year: Institutional Equities was named as the Best Electronic Broker at TradeTech India Awards 2011 Awarded Best Broker in India by Finance Asia 2010, for the 2nd year in a row

2010-11 1,364.76 481.88 317.86
2009-10 992.06 258.87 166.41
Voted as the Best Local Brokerage firm by Asiamoney Brokers Poll for 2010, for the 5th year in a row ` crore
Financial Highlights Particulars Income Profit before tax Profit after tax 2010-11 737.55 271.57 181.94 2009-10 837.86 403.88 260.10
Kotak Mahindra Capital Company Limited Kotak Mahindra Capital Company (KMCC) primarily operates as a full-service Investment Bank and is also a trading cum clearing member of the National Stock Exchange on all three segments viz. Cash, F&O and WDM. Buoyancy in the capital markets led to domestic fund raising of ` 80,300 crore through IPOs, FPOs Debt Offerings and QIPs. KMCC topped the league tables for public offers (IPOs, FPOs and Debt Offerings). Success of earlier large M&As led to increased cross-border M&A this year combined with equally large domestic M&A activity. During the year, the Company made considerable progress in deepening relationships with it alliance partners in key geographies and this will play a crucial role in business in the years ahead. In capital markets, KMCC was the lead manager to twelve out of the twenty six Initial / Follow on Public Equity Offerings (above ` 250 crore) Its grt 2b 25
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accounting for ~62% of the total money raised in these Offerings. The Company has helped companies raise over ` 35,000 crore in the domestic markets during FY2011. (Source: Prime Database). KMCC was ranked No. 1 in Domestic Public Offerings League Table for FY2011 by Prime Database. Some of the key deals that were concluded by the Company during the year include: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Coal India IPO Preferential Issue of Equity Shares by Ispat Industries to JSW Steel Adani Enterprises QIP Tata Steel FPO Buyback of equity shares for Piramal Healthcare Standard Chartered IDR Jaypee Infratech IPO iGate Open Offer for Patni Computer Systems Limited consequent to acquisition of controlling stake Prestige Estate Projects IPO Oberoi Realty IPO Private Placement of convertible shares by GMR to Temasek Holdings, the investment arm of the Government of Singapore Bharat Forge QIP ` 15,200 cr ` 11,900 cr ` 4,000 cr ` 3,500 cr ` 2,500 cr ` 2,500 cr ` 2,300 cr ` 1,400 cr ` 1,200 cr ` 1,000 cr ` 900 cr ` 600 cr
Awards and Recognitions During the current year KMCC won the following awards: Best Investment Bank in India by FinanceAsia, 2010 - for the fifth year in a row Best Domestic Equity House by Asiamoney, 2010 - for the third consecutive year Best Equity House in India by FinanceAsia, 2010 Best Bank for Equity Finance in India in the Euromoney Real Estate Poll, 2010 Financial Highlights: ` crore Particulars Income Profit before tax Profit after tax Kotak Mahindra Old Mutual Life Insurance Kotak Mahindra Old Mutual Life Insurance (Kotak Life Insurance) is a 74:26 joint venture partnership between Kotak Mahindra Group and Old Mutual Plc, an international savings, wealth management and Insurance company based in UK. Kotak Life Insurance is in the business of life insurance, deferred annuity and providing employee benefit products to its individual and group clientele. The company has developed a multi-channel distribution network to cater to its customers and markets through tied, alternate, group and direct marketing channels on a pan-India basis. The Indian life insurance industry underwent a transformation in 2010-11. The new ULIP regulations that came into force in September of the year changed the face of life insurance business with customer centricity and efficiency becoming the industrys new buzzwords. These will continue to be the defining factors for developments in the new year, but at a much accelerated pace. New regulations have significantly enhanced the appeal of insurance products. Enhancing efficiencies and thereby productivity of delivery channels is the central challenge for insurance companies in the new regulatory environment. A significant proportion of life insurance is still sold through individual agents. Managing this channel effectively will be the key to ensuring persistency. In the new environment, focus of insurers has shifted from largescale expansion to sustained value creation and efficient use of capital. Special emphasis is now placed on cost management. FY2011 saw major changes in the companys product portfolio. The ULIP basket underwent complete overhaul to meet the new regulatory norms, which came into effect from 1st September 2010. There was also renewed focus on non-ULIPS to increase their share in the overall product mix. During the year, the Company launched six new ULIPs conforming to new norms and discontinued with the old ULIPs. The nonULIP offering was bolstered along with the launch of e-Insurance portal through which a customer can buy life insurance online. Awards and Recognitions
2010-11 155.31 70.23 51.89
2009-10 101.40 34.62 23.86
Awarded the prestigious Enterprise Driving Growth and Excellence (EDGE) through IT Award, for the successful implementation of Kotak Rewards and Incentive System in 2010. Kotak Mahindra Bank Limited Annual Report 2010-11
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The company has initiated the zero paper initiative by implementing the first phase of email alerts to the customers. This ensures that basic alerts like renewal reminders, premium receipts etc are sent to customers on their registered email ids. Apart from being environmentally friendlier, this mode is also fast and efficient. The company has also implemented the Channel Partner Portal to cater to the information needs alternate channel partners. This initiative is expected to significantly enhance efficiencies and service experience for Alternate Channel partners. ` crore
Financial highlights Particulars Gross Premium Income First Year Premium ( Incl Group and Single) Profit Before Tax Profit after Tax 2010-11 2,975.51 1,253.14 102.47 102.47 2009-10 2,868.05 1,333.98 69.22 69.22
Operating expense ratio reduced to 19% in FY2011 as against 20% in FY2010. Conservation Ratio was maintained at 70%. Total assets under management grew by 28% to ` 8,592 crore. The Company achieved 317% growth in coverage of social lives. KLI has over 38,269 life advisors with significant efforts being directed towards their training and thus enhancing their effectiveness. KLI has 25 corporate agents and 129 empanelled brokers. KLI operates from 202 branches in 152 cities. Kotak Mahindra Asset Management Company Limited (KMAMC), Kotak Mahindra Trustee Company Limited (KMTC) Kotak Mahindra Asset Management Company Limited (KMAMC) is the asset manager of Kotak Mahindra Mutual Fund (KMMF) and Kotak Mahindra Trustee Company (KMTC) is the trustee company. Total AUM (Assets Under Management) of the industry fell from ` 6,13,979 crore in March 2010 to ` 5,92,250 crore in March 2011, a fall of 3.54% in FY2011. During the same period, AUM with Kotak Mahindra Mutual fund increased by 1.59% i.e. from ` 24,071 crore in March 2010 to ` 24,455 crore in March 2011. Number of folios as on 31st March 2011 was over 9 lakh. KMAMC has a presence in 79 cities and 84 branches. In terms of performance of the funds managed by KMAMC, short duration debt schemes of the fund performed well. During the year, Kotak Flexi Debt, Kotak Liquid Institutional Premium Plan & Kotak Gilt were awarded 5 Star ranking over three years by Value Research. Also, Kotak Flexi Debt & Kotak Floater Long Term have been ranked 7 star and have been awarded the Gold Award for Best Performance in the category of Open Ended Ultra Short Term-IP and Open Ended Floating Rate Fund respectively for one year period ending 31st December 2010. Kotak Bond Regular has been awarded most Consistent Performer (based on the annual performance of the past 10 years) in the NDTV Profit Mutual Fund Awards 2010. The distribution is trying to realign its business models with the new paradigm introduced with the abolition of entry loads in FY2010. The industry on its part is undertaking all India investor awareness programs in a standard format. A total of 5,817 programs were done pan India covering about 340,383 Investors, while Kotak Mahindra Asset Management Company has undertaken about 653 investor meets covering about 19,862 investors. Financial Highlights ` crore Particulars Total Income Profit Before Tax Profit After Tax 2010-11 118.95 24.58 17.30 2009-10 186.91 109.57 72.46
Continued focus on fund performance, investor awareness, innovative products and franchise building in terms of geographical expansion, penetration and distributor tie ups would be the key drivers of growth during FY2012. Kotak Mahindra Pension Fund Limited Kotak Mahindra Pension Fund Limited has been appointed as a Pension Fund Manager (PFM) by the Pension Fund Regulatory and Development Authority (PFRDA), on 30th April 2009 for managing the funds under New Pension System (NPS), as per the terms of the Investment Management Agreement The Company manages seven schemes, and the combined assets under management on 31st March 2011 were ` 3.30 crore. PFRDA has introduced new scheme NPS LITE to promote small savings specifically targeting the weaker and economically disadvantaged sections of the society.
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The pension business is currently at a nascent stage of operations and considering this fact and the low rates of management fees, the company has made a net loss of ` 0.63 crore in FY2011. International Subsidiaries The Bank has overseas subsidiaries with offices in Mauritius, London, Dubai, Abu Dhabi, Singapore, New York & California. The international subsidiaries were mainly engaged in investment advisory and investment management of funds, Equity & Debt Trading, management of GDR/FCCB issuances, broker and broker dealer activities and investments. A new subsidiary namely Kotak Mahindra Financial Services Ltd (KMFSL) was set up in November 2009. KMFSL was established under the aegis of the Dubai International Financial Centre (DIFC). Post setting up of KMFSL, the international subsidiaries are now providing wealth advisory services also to high networth individuals outside India through six locations including UAE and UK. KMFSL has now forged alliances with a number of international asset managers and banks to offer best-in-class products across asset classes, currencies and geographies. Assets managed/ advised by the international subsidiaries closed the year at US$ 1,904 million (2010: US$ 1,568 million). The year was a difficult one with many India dedicated funds seeing net outflow of funds. However, in this environment the overseas subsidiaries introduced a number of equity funds into the markets, including an Indian equity fund of funds investing in best of breed Indian funds and an Indian consumption fund investing in companies likely to benefit from the growth in consumption in India. During the year the overseas subsidiaries also saw the launch of a US open ended fund investing in Indian equities. They also raised US$ 250 million in debt funds investing into India. Hardening of US interest rates and range-bound performance of Indian capital markets during the year had an adverse impact on income from proprietary investments comprising of fixed income and India centric investments. Financial highlights ` crore Particulars Total Income Profit Before Tax Profit after Tax Kotak Investment Advisors Limited Kotak Investment Advisors Limited (KIAL) is the investment manager / advisor for private equity and realty funds. The aggregate alternate assets managed /advised by KIAL as at 31st March 2011 was around ` 5,031 crore (US$ 1.12 billion). The Company manages five domestic funds and advises three offshore funds. Private Equity Funds (a) India Growth Fund India Growth Fund (IGF) was set up as a unit scheme of Kotak SEAF India Fund with investors from select institutional and high net worth investors, from both India and abroad, on a private placement basis. IGF has made 15 investments across diversified sectors such as logistics, technology services, retail, media and entertainment, engineering, bio-technology, textiles, aviation, telecom and power infrastructure and financial exchanges. During the year IGF divested fully from two investments and partly exited from one other investment. (b) Kotak India Venture Fund I Kotak India Venture Fund I (KIVF-I) is a domestic fund with the objective of making investments primarily in companies operating in Biotechnology and Life Sciences sector. The Fund has made three investments till date. During the year KIVF-I divested fully from one investment. (c) Kotak India Growth Fund II Kotak India Growth Fund II is aimed at investing in mid sized corporates with a growth orientation. KIGF-II has made six investments till date. Realty Funds (a) Kotak Mahindra Realty Fund The primary objective of KMRF is to invest in and provide finance to real estate sector and allied services sectors in India with an intention to generate long-term capital appreciation. Kotak India Real Estate Fund-I (KIREF-I) has been set up as a unit scheme of KMRF. KIREF-I had fully committed its capital in eleven investments, of which it has till date exited fully from three investments and partially from two investments. Kotak India Real Estate Fund - I has returned 100% capital to its investors, becoming the first Indian real estate fund to do so. (b) Kotak Alternate Opportunities (India) Fund Kotak Alternate Opportunities (India) Fund (KAOIF) was set up with an objective of investing in the securities of companies operating 2010-11 139.14 54.44 51.17 2009-10 159.10 87.47 80.34
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in real estate, infrastructure and allied services sectors in India with an intention to provide long-term capital appreciation to its investors. KAOIF has till date made eighteen investments in a diversified portfolio. It has fully divested from one investment and partly divested from five investments. Financial Highlights: ` crore Particulars Total Income Profit before tax Profit after tax Technology This year, technology initiated new and enhanced channels to bring 24 X 7 availability to the customers. Kotak Securities initiated the use of a KIOSK to offer product and customer information. Kotak Life Insurance launched an online sales portal as well as a partner portal for the use of alternate channel partners. In the Bank, mobile to mobile payments (IMPS) was launched. The Bank has enhanced its technology foundation through a planned core banking upgrade. Service oriented architecture was introduced with the use of a world class product for system integration. To ensure robust procedures and un-interrupted services, technology continued to emphasize on process improvement. The data center was recertified as ISO 27001 compliant and the Six Sigma framework was adopted for technology operations. During the year, the focus was also on system upgradation for continuous improvement in customer experience. The excellence of the CRM and Call Center which were rolled out across the Kotak Group, was recognized by awards from the Indian Banking Association and Asian Bankers Technology Summit respectively. Risk Management The Bank has an established enterprise wide risk management process to ensure that it has effective systems and controls in place to identify, measure, monitor and manage risks arising in various businesses. The Banks risk management process is the responsibility of the Board of Directors. Various committees are specifically entrusted with execution responsibilities for risk management. The Management Committee provides overall risk management supervision for the Group as a whole. Committees that form part of Risk Governance include Audit Committee (ACB), ALCO, Credit Committee, Risk Management Committee (RMC) etc. A formal update on operational matters is provided to the Board periodically. Reports on adequacy of the Banks regulatory capital are also provided on a regular basis. Appropriate action is taken where risks are identified which fall outside the Banks approved risk appetite or where the need for remedial action is required in respect of identified weaknesses in the Banks mitigating controls. Specific risks applicable to the Bank inlude credit, market, interest rates, liquidity and operational risk. Credit Risk The Bank has devised its credit policy to create an enabling framework for ensuring smooth & timely flow of credit to the Banks customers while ensuring prudent credit growth both quantitatively and qualitatively. The Bank has comprehensive policies covering credit risk in all its lending businesses. These policies articulate the Banks position regarding risk measurement, reporting, monitoring and mitigation alongwith laying down the parameters/norms for taking credit exposure. The Banks credit process is divided into three stages - pre-sanction, sanction and post -sanction. At the pre-sanction stage, the independent credit function within respective businesses conduct credit appraisal, check compliance with lending policy and place the proposal to the appropriate sanctioning authority for approval. Credit Rating is an integral part of the credit lending decision. The Bank has an internal credit rating model that assigns obligor ratings & facility ratings. In accordance with credit policies, the ratings are subject to an annual review. Based on independent credit risk assessment, appropriate credit decisions are taken by the sanctioning authorities. The Bank has a tiered credit sanction process where credit approvals are reported to the next higher level. Subsequent to sanction, the Credit Administration team processes documentation, on the completion of which, credit operations team disburses credit. Borrower accounts are subject to ongoing monitoring to check for compliance with sanction terms, credit covenants and financial health of the obligors. This provides the Bank with key inputs in credit portfolio management. The Bank has the desired readiness to leverage its internal credit rating systems and migrate to advanced internal rating-based approaches for maintaining capital under the Basel II guidelines. Its grt 2b 25 2010-11 96.10 49.22 32.71 2009-10 99.11 59.83 39.75
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Market Risk Market Risk is the risk that earnings or capital will be adversely affected by changes in the level or volatility of market variables such as interest rates, foreign exchange rates, credit spreads, commodity and equity prices. Market risk taking activity is centralized with treasury and is subject to limits across products and the risk factors. The ALCO and RMC of the Bank guide the market risk management department to manage risks arising out of the market movements. The Bank controls market risks through a combination of limits & early warning signals approved by ALCO and RMC. The independent market risk management department monitors market risk exposures against approved limits on a daily basis, and takes appropriate measures for prompt corrective action. Interest Rate Risk on the Banking book Interest rate risk on the Banking book arises from two sources:

Interest bearing securities held as part of non trading activities Timing difference between re-pricing of loans and deposits
The Bank manages interest rate risk through a Funds Transfer Pricing mechanism, by transferring interest rate risk from business units to centralized treasury. As a policy, no interest rate risk is retained within any business other than treasury. The Bank assesses interest rate risk in the banking book from two different but complementary perspectives, namely the earnings perspective and the economic value perspective. The Bank uses gap analysis to evaluate the impact of shifts in interest rates on net interest income. The duration approach is used to determine the sensitivity of the economic value of the Bank to changes in interest rates. Liquidity Risk Liquidity risk is the risk that the Bank is unable to meet its obligations when they fall due. Liquidity risk has the potential to constrain growth through depletion of resources available for lending and investment. Treasury is responsible for managing liquidity under the liquidity risk management framework and the contingency liquidity plan approved by ALCO and the Board. Stress testing and scenario analysis are incorporated in the liquidity risk management structure. The Bank follows a scenario based approach towards liquidity stress testing, wherein historical and hypothetical scenarios are employed to evaluate the impact of stress on the liquidity position of the Bank. The Basel Committee of Banking Supervisors (BCBS) issued its final Basel III guidelines in December 2010. These guidelines include a ratio for short term liquidity {the Liquidity Coverage Ratio (LCR)} and a longer term liquidity measure {the Net Stable Funding Ratio (NSFR)} Proactively, the Bank has incorporated these metrics as part of its risk appetite and monitors performance against these on a regular basis. Operational Risk The Bank has an established operational risk management function whose purpose is to develop, implement and maintain the Banks operational risk strategy and framework to mitigate the risk of losses from inadequate or failed internal processes, people and systems, or from external events. To achieve this, the Bank has established a suitable operational risk management governance structure and framework of processes to:

Ensure an appropriate understanding and awareness of operational risk at all levels in the Bank; Effectively anticipate operational risks and implement appropriate mitigation in line with the Banks operational risk appetite; Effectively manage operational risk events to minimise their recurrence; and Implement the Banks operational risk capital strategy to ensure the Bank is adequately capitalized for operational risk requirements.
The Banks regulatory capital requirements for operational risk are calculated according to the Basic Indicator Approach (BIA) under which gross income is regarded as a proxy for the operational risk exposure. The capital charge for operational risk is calculated based upon average gross income for the preceding three years. Capital Adequacy and Basel II Capital adequacy,the regulatory capital expresses how much capital a bank, must have in relation to the size of its risk taking, expressed in the form of risk weighted assets. The Banks high level of capital adequacy ratio provides its stakeholders, reassurance against unexpected losses. In accordance with the RBI guidelines on new capital adequacy framework (under Basel II norms), the Bank adopts the standardized approach for credit risk, basic indicator approach for operational risk and standardised duration approach for market risk.
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ICAAP The ICAAP is an assessment of all significant risks (Pillar II), other than Pillar 1 risks, to which the Bank is exposed. The ICAAP framework helps the Bank perform a comprehensive assessment of the risks faced and relates capital adequacy to these risks. The Bank has methodologies that help in capital allocation towards quantifiable Pillar II risks viz credit concentration, underestimation of credit risk and interest rate risk on the banking book (IRRBB). The Bank does not provide capital for liquidity risk, under Pillar II, but factors liquidity risk as part of its stress testing. The Bank is of the view that its strong capital position helps it in maintaining a robust liquidity profile. During the year, the Bank prepared its annual ICAAP outcome that was approved by the Board and was submitted to the regulator. Based on the ICAAP outcome, the Bank was well capitalized to cover Pillar I & Pillar II risks. Stress Testing Stress testing is a key element of the ICAAP and an important tool for analyzing the Banks risk profile. The objective of stress testing is to assess how businesses perform under stress conditions. Stress tests also form part of the capital planning process. The Bank supplements capital adequacy computation by performing stress tests, guided by a comprehensive Board approved stress testing policy. The approved stress test scenarios provide for severe shocks to various risk parameters and assess their impact on profit and loss and capital. Stress test results are placed before the management and the Board. After considering the results of the stress tests and key sensitivities, capital adequacy position of the Bank is considered adequate. Compliance An independent and comprehensive compliance structure addresses the Banks compliance and reputation risk. All key subsidiaries of the Bank have an independent compliance function. Compliance officials across the group interact on various issues including the best practices followed by the respective companies. The compliance framework, approved by the Board, broadly sets out the compliance risk management processes and tools to be used by businesses, management and compliance officers for managing its compliance risks. Apart from the Banks compliance framework, each of the subsidiary companies has its own compliance manual. The compliance function is responsible for all aspects of compliance across the Bank. There are dedicated resources deployed to focus on areas like regulatory reporting, AML and compliance monitoring. The compliance team provides compliance assistance and support to management and manages and supervises the compliance framework. Compliance division works with business units to develop procedures to implement the requirements of the various regulations and policies. It also works closely with other support functions including the legal department and outside counsel. The Bank uses the knowledge management tools for monitoring new and changes in existing regulations. The Bank also looks at regulatory websites and participates in industry working groups that discuss evolving regulatory requirements. In-house compliance newsletter keeps the employees abreast of the key regulatory updates affecting the businesses of the Bank and its subsidiaries. Compliance also disseminates the changes in the regulations by way of compliance alerts to all the employees. Training on compliance matters is imparted to employees on an ongoing basis both online and classroom. The compliance department keeps the management / Board informed about important compliance related matters through monthly, quarterly and annual compliance reviews. Internal controls The Banks internal audit department assesses business and control risks of all branches and businesses to formulate a risk-based internal audit plan, as recommended by the RBI. The audit process followed is as below: An annual risk-based internal audit plan is drawn up on the basis of risk profiling of Banks branches and businesses/ departments which is approved by the audit committee. The audit plan is prioritised based on areas which pose a higher risk to the Bank and such areas and branches are targeted for more frequent audits. The Internal Audit policy includes the risk assessment methodology which provides for coverage of all auditable areas once in three years. After assessing the overall risk of a branch or business or department, the Bank takes corrective measures to minimize the risk. Senior officers also assess and evaluate the mitigating measures taken by the branch during their visits. Post issue of audit reports there is a detailed process for monitoring of progress on implementation of action plans. Status of resolution tracking as well as pending issues is reported to senior management on a regular basis and a formal report on pending issues is issued once every half-year. Human Resources As on 31st March 2011, the Bank and its subsidiaries employed around 20,500 employees at various locations in India and abroad. The Bank Its grt 2b 25
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was adjudged amongst Top 25 in Indias Best Companies to Work For in 2010" by The Great Places to Work Institute and continues to be amongst Top 25 Best Employers in India consistently from 2007 till date as adjudged by the AON Hewitt Best Employers Survey. While the Bank and its subsidiaries continued to focus on various initiatives to provide the best employment experience to the employees, new and innovative products and processes were introduced to further enhance both quality and productivity of our human capital. Substantial investments were made in training and developing employees across levels to improve productivity, service quality, personal effectiveness and supervisory capability. Structured leadership development programs and customized courses in association with leading academic institutions were also rolled out to groom future leaders and build a talent pool that has depth in knowledge and competence. The best in class talent management practices and HR processes have enabled the organization to build a cadre of highly committed and engaged employees who consistently excel in delivering our customer value proposition. Opportunities and Threats Opportunities

Being part of the Indias growth story Utilise the emerging opportunity of getting the wallet share of the burgeoning middle class Utilise technology to provide solutions to customers Increase distribution strength
Threats

Volatile environment Fiscal deficit Inflation Increasing interest rates Competition Rising crude prices and commodity prices
Outlook Kotak Mahindra Groups results for the financial year demonstrate the strong fundamental growth in the India story. However, concerns remain on inflation, rising prices of commodities including crude and current account deficit. The Group believes that the economic scenario offers immense opportunities for it to grow in scale and reach coupled with value creation. Safe harbour This document contains certain forward-looking statements based on current expectations of Kotak Mahindra management. Actual results may vary significantly from the forward-looking statements contained in this document due to various risks and uncertainties. These risks and uncertainties include the effect of economic and political conditions in India and outside India, volatility in interest rates and in the securities market, new regulations and Government policies that may impact the businesses of Kotak Mahindra Group as well as its ability to implement the strategy. Kotak Mahindra does not undertake to update these statements. This document does not constitute an offer or recommendation to buy or sell any securities of Kotak Mahindra Bank or any of its subsidiaries and associate companies. This document also does not constitute an offer or recommendation to buy or sell any financial products offered by Kotak Mahindra, including but not limited to units of its mutual fund and life insurance policies. All investments in mutual funds and securities are subject to market risks and the NAV of the schemes may go up or down depending upon the factors and forces affecting the securities market. The performance of the sponsor, Kotak Mahindra Bank Limited, has no bearing on the expected performance of Kotak Mahindra Mutual Fund or any schemes there under. Figures for the previous year have been regrouped wherever necessary to conform to current years presentation.
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Bank Reports & Statements Corporate Governance
Report on Corporate Governance

Corporate governance is the system by which companies are directed and controlled. (Sir Adrian Cadbury, the Committee on the Financial Aspects of Corporate Governance) The Bank believes in adopting and adhering to the best standards of corporate governance to all the stakeholders. The Banks corporate governance is, therefore based on the following principles: Appropriate composition, size of the Board and commitment to adequately discharge its responsibilities and duties. Transparency and independence in the functions of the Board. Independent verification and assured integrity of financial reporting. Adequate risk management and Internal Control. Protection of shareholders rights and priority for investor relations. Timely and accurate disclosure on all matters concerning operations and performance of the Bank.
The Banks philosophy on corporate governance enshrines the goal of achieving the highest levels of transparency, accountability and equity in all spheres of its operations and in all its dealing with the shareholders, employees, the government and other parties. The Bank understands and respects its fiduciary role and responsibility to shareholders and strives hard to meet their expectations. The report on the Banks corporate governance, as per the applicable provisions of the Clause 49 is as under: BOARD OF DIRECTORS Composition, Meeting and Attendance The composition of the Board of Directors of the Bank is governed by the Banking Regulation Act, 1949 and Clause 49 of the Listing Agreement. The Board of Directors, comprising a combination of executive and non-executive Directors, presently consists of nine members, of whom six are non-executive Directors. The Chairman of the Board is a Non-Executive Independent Director and six out of nine Directors are independent. The Board mix provides a combination of professionalism, knowledge and experience required in the banking industry. The responsibilities of the Board inter alia include formulation of policies, taking new initiatives, performance review, monitoring of plans, pursuing of policies and procedures. A brief description of the Directors, along with the companies in which they hold directorship and the membership of the committees of the Board are furnished hereunder: Dr. Shankar Acharya, Non-Executive Part-time Chairman Dr. Shankar Acharya, B.A. (Hons.) from Oxford University and Ph.D. (Economics) from Harvard University, aged 65 years, has considerable experience in various fields of economics and finance. He is a Honorary Professor at the Indian Council for Research on International Economic Relations (ICRIER) and a Board Member of ICRIER, the National Institute of Public Finance and Policy (NIPFP) and the Administrative Staff College of India (ASCI). He was Chief Economic Adviser, Ministry of Finance, Member, Securities and Exchange Board of India (SEBI) and Member, Twelfth Finance Commission. He has held several senior positions in the World Bank, including Director of World Development Report (1979) and Research Adviser. He was re-appointed as the Non-Executive Part-time Chairman of the Bank at the Annual General Meeting held on 28th July 2009 for a period of three years with effect from 20th July 2009. He is on the Board of Eros International Media Ltd. Dr. Acharya is the Chairman of the Audit Committee of the Bank and a Member of the Shareholders Grievance/Investors Relations Committee of Eros International Media Ltd. Mr. Uday Kotak, Executive Vice-Chairman and Managing Director Mr. Uday Kotak, B.Com, MMS (Masters in Management Studies), aged 52 years, is the Executive Vice-Chairman and Managing Director of the Bank and its principal founder and promoter. Over the past 25 years, he has built a team of professionals who have been given independent charge of various businesses in the Kotak Mahindra group. He was responsible for starting the business as a start-up venture in a limited range of activities and then building it up into a full financial services group, many of the constituents of which are among the leading players in their respective fields. He is a Governing Member of The Mahindra United World College of India and Member of the Board of Governors of Indian Council for Research on International Economic Relations. He is on the Board of the following companies: Kotak Forex Brokerage Limited Kotak Mahindra Asset Management Company Limited Kotak Mahindra Capital Company Limited Kotak Mahindra Prime Limited Kotak Mahindra Old Mutual Life Insurance Limited Kotak Securities Limited
Mr. Uday Kotak is also a member of the Investor Relations (Shareholders/Investors Grievance) Committee of the Bank, Chairman of the Audit Committees of Kotak Mahindra Capital Company Limited and Kotak Securities Limited and member of the Audit Committee of Kotak Mahindra Asset Management Company Limited. Mr. C. Jayaram, Executive Director Mr. C. Jayaram, B. A. (Economics), PGDM-IIM, Kolkata, aged 55 years, is an Executive Director of the Bank and is currently in charge of the Wealth Management Business of the Kotak Group. He also oversees the international subsidiaries and the alternate asset Its grt 2b 25
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management business of the group. He has varied experience of over 33 years in many areas of finance and business and was earlier the Managing Director of Kotak Securities Limited. He has been with the Kotak Group for 21 years and has been instrumental in building a number of new businesses at Kotak Group. Prior to joining the Kotak Group, he was with Overseas Sanmar Financial Ltd. He is also on the Board of the following companies: Kotak Kotak Kotak Kotak Investment Advisors Limited Mahindra Asset Management Company Limited Mahindra Investments Limited Mahindra Inc Kotak Mahindra Prime Limited Kotak Mahindra (UK) Limited Kotak Securities Limited
Mr. C. Jayaram is a member of the Audit Committee and Investor Relations (Shareholders/Investors Grievance) Committee of the Bank and Audit Committee of Kotak Securities Limited and Kotak Investment Advisors Ltd. Mr. Dipak Gupta, Executive Director Mr. Dipak Gupta, B.E. (Electronics), PGDM-IIM, Ahmedabad, aged 50 years, is an Executive Director of the Bank and has over 25 years of experience in the financial services sector, 19 years of which have been with the Kotak Group. He is responsible for Group HR, administration, infrastructure, operations and IT. He is also responsible for asset reconstruction business of the Bank. Mr. Dipak Gupta was responsible for leading the Kotak Groups initiatives into the banking arena. Prior to this, he was the Executive Director of Kotak Mahindra Prime Limited. Prior to joining the Kotak Group, he was with A. F. Ferguson & Company for approximately six years. He is on the Board of the following companies: Kotak Forex Brokerage Limited Kotak Mahindra Capital Company Limited Kotak Mahindra Investments Limited Kotak Mahindra Prime Limited Kotak Mahindra Old Mutual Life Insurance Limited
Mr. Dipak Gupta is also member of the Investor Relations (Shareholders/Investors Grievance) Committee of the Bank, Audit Committee of Kotak Mahindra Prime Limited, Kotak Mahindra Capital Company Limited and Kotak Mahindra Old Mutual Life Insurance Limited. He is the Chairman of the Audit Committee of Kotak Mahindra Investments Limited. Mr. Asim Ghosh Mr. Asim Ghosh, aged 63 years, is a B.Tech, IIT Delhi and MBA from the Wharton School, University of Pennsylvania. Mr. Ghosh commenced his career in consumer goods marketing with Procter & Gamble in the U.S. and Canada and worked subsequently with Rothmans International as a Board member of one of Canadas major breweries. He moved to Asia in 1989 as CEO of the Frito Lay (Pepsi Foods) start up in India. Thereafter, he was in executive positions with Hutchison in Hong Kong and India for the past 16 years. He continued as the CEO of Vodafone Essar Limited till 31st March 2009 and as a Non-Executive Director till 9th February 2010. He is also on the Board of Husky Energy Inc., other Husky Group Companies and some Hutchison Whampoa Group Companies. Dr. Sudipto Mundle Dr. Sudipto Mundle, aged 62 years, graduated from St. Stephen College, New Delhi, and has a Ph.D. in Economics from the Delhi School of Economics. He was a Director in the Strategy & Policy Department, Asian Development Bank (ADB), Manila and also India Chief Economist and Deputy Director at ADBs India Resident Mission, New Delhi. He was appointed as a Director of the Bank with effect from 21st July 2010. He is a Partner Director of The Governance Group, Singapore; an Emeritus Professor (Hon.) at National Institute of Public Finance and Policy, New Delhi; a Member of the Board of Governors of Institute of Economic Growth, New Delhi; a Member of the Monetary Policy Technical Advisory Committee, Reserve Bank of India; a Member of the National Statistical Commission, Government of India; and President of PREETI Foundation. In his earlier career Dr. Mundle was Economic Advisor in the Ministry of Finance, Govt. of India; and Reserve Bank of India Chair Professor at the National Institute of Public Finance and Policy, New Delhi. He has also served in other academic institutions including the Indian Institute of Management, Ahmedabad and Centre for Development Studies, Trivandrum. He was a Fulbright Scholar at Yale University, USA; and had visiting assignments at Cambridge University, UK, Institute of Social Studies, The Hague, Netherlands and Japan Foundation, Tokyo, Japan. Mr. Prakash Apte Mr. Prakash Apte, B.E. (Mechanical), aged 57 years, is presently the Chairman of Syngenta India Limited, one of the leading agri business companies in India. Mr. Apte, in a career spanning over 34 years has considerable experience in various areas of management and business leadership. During more than 15 years of very successful leadership experience in agri business, he has gained varied knowledge in various aspects of Indian Agri Sector and has been involved with many initiatives for technology, knowledge and skills up gradation in this sector, which is so vital for Indias food security. He was instrumental in setting up the Syngenta Foundation India which focuses on providing knowledge and support for adopting scientific growing systems to resource poor farmers and enabling their access to market. He is a Director of Syngenta Foundation India and Crop Life Association of India. Mr. Apte was appointed as an Additional Director of the Bank with effect from 18th March 2011. Mr. Apte is a member of Audit Committee of Syngenta India Limited. Mr. Amit Desai Mr. Amit Desai, B.Com, LLB, aged 51 years, is an eminent professional with 30 years of experience. Mr. Desai was appointed as an Additional Director of the Bank with effect from 18th March 2011. He is also on the Board of Kotak Mahindra Trustee Company Limited and Terra DeKM India Pvt. Ltd. Mr. Desai is a member of Audit Committee of Kotak Mahindra Trustee Company Limited.
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Mr. N.P. Sarda Mr. N.P. Sarda, B.Com, F.C.A., aged 65 years, is a Chartered Accountant for more than 40 years. He is a former partner of M/s. Deloitte Haskin & Sells, Chartered Accountants, the past President of the Institute of Chartered Accountants of India in 1993 and was a public representative Director of the Stock Exchange, Mumbai (BSE). Presently, Mr. Sarda is representing India on the global IFRS Advisory Council. Mr. Sarda was appointed as an Additional Director of the Bank with effect from 1st April 2011. Note: The Committee Memberships of Audit Committee and Shareholders/Investors Grievance Committee have been considered. The following table gives the composition of Banks Board and the number of outside directorships held by each of the Directors and the committee positions held by the Directors during the year ended 31st March 2011: No. of Committee Positions held in Bank and other Public Companies Chairman Member
No. of Directorships in other Companies Name of Directors Position Indian Public Companies Dr. Shankar Acharya Mr. Uday Kotak Mr. C. Jayaram Mr. Dipak Gupta Mr. Asim Ghosh Dr. Sudipto Mundle Mr. Prakash Apte* Mr. Amit Desai* Mr. N.P. Sarda** Independent Non-Executive Part-time Chairman Executive Vice-Chairman & Managing Director, Promoter Executive Director Executive Director Independent Non-Executive Director Independent Non-Executive Director Independent Non-Executive Director Independent Non-Executive Director Independent Non-Executive Director Other Indian Companies 1 1 1 -
1 6 5 5 1 1 -
1 2 1 1 -
1 2 4 4 1 1 1 (with effect from 1st April 2011) 1 2
Mr. Anand Mahindra Mr. Cyril Shroff Mr. Shivaji Dam
Non-Executive Director Independent Non-Executive Director Independent Non-Executive Director
9 1 3
8 -
1 -
* Appointed as an Additional Director with effect from 18th March 2011 **Appointed as an Additional Director with effect from 1st April 2011. Notes: 1. 2. The Committee Memberships mentioned above are of only Statutory Committees as per Clause 49 of the Listing Agreement with Stock Exchanges, namely Audit Committee and Shareholders/Investors Grievance Committee. None of the Directors on the Board is a member of more than ten committees and the Chairman of more than five committees in all the companies in which he is a Director (for this purpose the membership of Audit Committee and Shareholders Grievance Committee have been taken into consideration). All the Directors have made disclosures regarding their membership on various committees in other companies. In compliance with the Clause 49 of the Listing Agreement, Mr. Shivaji Dam, an independent director on the Board of the Bank was appointed on the Board of Kotak Mahindra Old Mutual Life Insurance Limited, a material non listed Indian subsidiary. However, Mr. Dam ceased to be a Director of the Bank effective 21st March 2011 on his completing a tenure of eight years as a director of the Bank, pursuant to the provisions of Section 10(2A)(i) of the Banking Regulation Act, 1949. Subsequently, at the next board meeting of the Bank held on 5th May 2011, Mr. Prakash Apte, an independent director, has been appointed as a director on the board of Kotak Mahindra Old Mutual Life Insurance Limited. Pursuant to the provisions of Section 10(2A)(i) of the Banking Regulation Act, 1949, Mr. Anand Mahindra, Mr. Cyril Shroff and Mr. Shivaji Dam ceased to be Directors of the Bank with effect from 21st March 2011 on their completing a tenure of eight years as directors of the Bank. Its grt 2b 25
3.
4.
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BOARD MEETINGS Scheduling and selection of agenda items for board meetings: Dates of the board meetings are decided in advance. The board meetings are convened by giving appropriate notice after obtaining the approval of the Chairman and the Executive Vice-Chairman and Managing Director. The Board meets at least once a quarter to review the results and other items on the agenda and also on the occasion of the annual shareholders meeting. When necessary, additional meetings are held. The agenda of the board meetings is drafted by the Company Secretary along with the explanatory notes and these are distributed in advance to the Directors. Every Board member is free to suggest the inclusion of items on the agenda. All divisions/departments in the Bank are encouraged to plan their functions well in advance, particularly with regard to matters requiring discussion/ approval/ decision in the Board/ Committee meetings. All such matters are communicated to the Company Secretary in advance so that the same could be included in the agenda for the board meetings. The agenda papers are prepared by the concerned officials of the respective department and are approved by the Executive Director/s and/or Executive Vice-Chairman and Managing Director. Agenda papers are circulated to the Board by the Company Secretary. Additional items on the agenda are permitted with the permission of the Chairman. To address specific urgent need, meetings are also convened at short notice. The Board also passes resolutions by circulation on need basis. Minutes of the proceedings of the Board meeting are prepared within 48 hours of the meeting. Draft minutes are circulated to the Chairman for his comments. The minutes of all the Committees of the Board of Directors of the Bank and the minutes of the meetings of the Board of Directors of the subsidiary companies of the Bank are placed before the Board. The quarterly, half-yearly and the annual results for the consolidated entity and for the Bank stand alone are first placed before the Audit Committee of the Bank and thereafter the same are placed before the Board of Directors. A Compliance Certificate, signed by the Executive Vice-Chairman and Managing Director in respect of various laws, rules and regulations applicable to the Bank is placed before the Board, every quarter. The Bank has put in place a post meeting follow-up, review and reporting process for the action taken on decisions of the Board. The Company Secretary submits follow-up Action Taken Report to the Board at each meeting on the compliance of the decisions/instructions of the Board. During the year under review, eight meetings of the Board of Directors were held on 11th May 2010, 29th June 2010, 30th June 2010, 21st July 2010, 20th October 2010, 28th December 2010, 20th January 2011 and 18th March 2011. The maximum time gap between any two meetings was not more than three calendar months. The average duration of the board meetings held is approximately three hours. The details of directors attendance at board meetings held during the year commencing 1st April 2010 and ending 31st March 2011 and at the last AGM are as under: Sr.No. Directors Board Meetings held during the tenure of the member 8 8 8 8 8 8 8 8 8 1 1 Board Meetings attended during the year 2010-11 8 8 2 2 8 7 8 4 6 1 Whether attended last AGM held on 21st July 2010 YES YES YES NO YES YES YES YES YES N.A. N.A.
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
Dr. Shankar Acharya Mr. Uday Kotak Mr. Anand Mahindra* Mr. Cyril Shroff* Mr. Shivaji Dam* Mr. C. Jayaram Mr. Dipak Gupta Mr. Asim Ghosh Dr. Sudipto Mundle Mr. Prakash Apte** Mr. Amit Desai**
* Pursuant to the provisions of Section 10(2A)(i) of the Banking Regulation Act, 1949, Mr. Anand Mahindra, Mr. Cyril Shroff and Mr. Shivaji Dam ceased to be Directors of the Bank with effect from 21st March 2011 on their completing a tenure of eight years as directors of the Bank . **Appointed as an Additional Director with effect from 18th March 2011.
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Information supplied to the Board is as under: The directors are presented with important information on operations of the Bank as well as that which requires deliberation at the highest level. Information is provided on various critical items such as annual operating plans and budgets, minutes of meetings of the Audit Committee and other committees of the Board, details of joint ventures or collaboration agreements and non-compliance, if any with regulatory or statutory guidelines or with the listing requirements etc. Disclosures of interest are duly received from all directors and there is no potential conflict of interest in any transaction of the Bank with any directors. DIRECTORS REMUNERATION The details of remuneration to the Executive Directors for the year ended 31st March 2011 is as follows: Particulars Basic Allowances Provident Fund Superannuation Annual Incentive Number of stock options granted during the year (post-split) Mr. Uday Kotak (` 000)* 10500.00 1560.00 1260.00 4500.00 Mr. C. Jayaram (` 000)* 10320.00 1650.00 1238.40 4410.00 50,000 (Series 27) 56,000 (Series 28) Mr. Dipak Gupta (` 000)* 10200.00 1610.00 1224.00 100.00 4320.00 50,000 (Series 27) 70,000 (Series 28)
*The amount shown above excludes gratuity payable under the Payment of Gratuity Act and value of car perquisites under the Income Tax Act, 1961. The details of the options granted during the year under the Kotak Mahindra Equity Option Scheme 2007 to the Directors are as under: Name of Director Date of Grant No. of Options granted (post-split) Exercise Exercise Price Period (post-split) Options Vested Vesting Date
Series 27 of Kotak Mahindra Equity Option Scheme 2007 Mr. C. Jayaram Mr. Dipak Gupta 10th May 2010 10th May 2010 50,000 50,000
` 337.50/per share
31st January 2013 to 31st May 2013 31st July 2013 to 30th September 2013
50% 50%
31st January 2013 31st July 2013
Series 28 of Kotak Mahindra Equity Option Scheme 2007 Mr. C. Jayaram 10th May 2010 56,000
Mr. Dipak Gupta
10th May 2010
70,000
31st July 2011 to 31st October 2011 ` 200/per share 31st July 2012 to 31st October 2012 31st July 2013 to 31st October 2013 31st July 2014 to 31st October 2014
25% 25% 25% 25%
31st July 2011 31st July 2012 31st July 2013 31st July 2014
Note:
The above stock options have been granted at a discount to the then prevailing market price.
Dr. Shankar Acharya was re-appointed as the Non-Executive Part-time Chairman of the Bank at the Annual General Meeting held on 28th July 2009. During the year, Dr. Shankar Acharya was paid remuneration of ` 12 lakhs per anum. The Reserve Bank of India has approved (i) the revision in remuneration to Mr. Uday Kotak, Executive Vice-Chairman & Managing Director, Mr. C. Jayaram and Mr. Dipak Gupta, the Executive Directors (ii) the annual incentive payable for the financial year ended 31st March 2010 (iii) the stock options granted (as indicated above) to Mr Dipak Gupta and Mr C Jayaram (iv) the remuneration to Dr Shankar Acharya, Non Executive Part time Chairman.
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The details of sitting fees paid to the non-executive directors for the year ended 31st March 2011 is as follows: Sr.No. 1. 2. 3. 4. 5. 6. 7. 8. Notes: 1. The performance incentives to the Executive Directors are based on the recommendation of the Executive Vice-Chairman and Managing Director of the Bank. The Board of Directors of the Bank decides the performance bonus to be paid to the Executive Vice-Chairman and Managing Director and the Executive Directors on the basis of the performance of the Bank and the fulfilment of responsibilities assigned to them. The terms of employment of Mr. Uday Kotak, Mr. C. Jayaram and Mr. Dipak Gupta provide for termination by mutual consent or by giving not less than three months notice in writing. In the event of termination of employment, the liability of the Bank shall be limited to providing only the salary and perquisites as prescribed by the terms of employment for a period of three months from the date of notice. The Non-Executive Directors of the Bank, except Dr. Shankar Acharya, are not paid any remuneration other than the sitting fees. Pursuant to the provisions of Section 10(2A)(i) of the Banking Regulation Act, 1949, Mr. Anand Mahindra, Mr. Cyril Shroff and Mr. Shivaji Dam ceased to be Directors of the Bank with effect from 21st March 2011 on their completing a tenure of eight years as directors of the Bank. Mr. Prakash Apte and Mr. Amit Desai were appointed as Additional Directors of the Bank with effect from 18th March 2011. Mr. N. P. Sarda has been appointed as an Additional Director with effect from 1st April 2011. Name of Director Dr. Shankar Acharya Mr. Anand Mahindra Mr. Cyril Shroff Mr. Shivaji Dam Mr. Asim Ghosh Dr. Sudipto Mundle Mr. Prakash Apte Mr. Amit Desai Sitting fees (` 000) 240.00 70.00 (See Note 4 below) 80.00 (See Note 4 below) 320.00 (See Note 4 below) 120.00 90.00 15.00 (See Note 5 below) (See Note 5 below)
2.
3. 4.
5. 6.
COMMITTEES OF THE BOARD OF DIRECTORS The Board has constituted several committees to deal with specific matters and delegated powers for different functional areas. The Audit Committee and Shareholders/Investors Grievance Committee have been constituted in accordance with the guidelines issued by the Reserve Bank of India, Securities and Exchange Board of India read with requirements of the Companies Act, 1956. Besides the above, the Board has also set up other committees such as ESOP/Compensation Committee, Share Transfer and Routine Transactions Committee (START), Management Committee, Premises Committee, Asset Liability Committee (ALCO), Nomination Committee, Investment Committee, Risk Management Committee, Information Technology Committee, First Tier Audit Committee, Customer Services Committee and Committee on Frauds. AUDIT COMMITTEE The Audit Committee of the Bank comprises of three members, with any two forming the quorum. The terms of reference of the Audit Committee of the Bank are as follows: a. b. c. d. Oversight of the Banks financial reporting process and the disclosure of its financial information to ensure that the financial statement is correct, sufficient and credible. Recommending to the Board, the appointment, reappointment and, if required, the replacement or removal of the statutory auditor and the fixation of audit fees. Approval of payment to statutory auditors for any other services rendered by the statutory auditors. Reviewing, with the management, the annual financial statements before submission to the Board for approval, with particular reference to: Matters required to be included in the Directors Responsibility Statement to be included in the Boards report in terms of clause (2AA) of Section 217 of the Companies Act, 1956. Changes, if any, in accounting policies and practices and reasons for the same. Major accounting entries involving estimates based on the exercise of judgment by management. Significant adjustments made in the financial statements arising out of audit findings. Compliance with listing and other legal requirements relating to the financial statements. Disclosure of any related party transactions. Qualifications in the draft audit report. Kotak Mahindra Bank Limited Annual Report 2010-11
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e. f. g. h. i. j. k. l.
Reviewing with the management, the quarterly financial statements before submission to the board for approval. Reviewing with the management, performance of statutory and internal auditors, and adequacy of the internal control systems. Reviewing the adequacy of internal audit function, if any, including the structure of the internal audit department, staffing and seniority of the official heading the department, reporting structure coverage and frequency of internal audit. Discussion with internal auditors any significant findings and follow up there on. Reviewing the findings of any internal investigations by the internal auditors into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board. To look into the reasons for substantial defaults in the payment to the depositors, debenture holders, shareholders (in case of non payment of declared dividends) and creditors. To review the functioning of the Whistle Blower mechanism. Carrying out any other function as is mentioned in the terms of reference of the Audit Committee.
The Committee consists of Dr. Shankar Acharya (Chairman), Mr. N.P. Sarda, Dr. Sudipto Mundle and Mr. C. Jayaram. Mr Sarda was appointed with effect from 1st April 2011 and Dr. Mundle was appointed on 2nd May 2011. Three out of the four members of the Committee are Non-Executive Independent Directors. All members of the Committee are financial literate within the meaning of the Clause 49 of the listing agreement. Mr. N.P. Sarda possesses accounting and financial management expertise. The Company Secretary acts as the Secretary to the Committee. The Chairman of the Audit Committee Dr. Shankar Acharya was present at the last Annual General Meeting to answer the queries of the shareholders. During the year, eight meetings of the Committee were held on 10th May 2010, 11th May 2010, 30th June 2010, 21st July 2010, 13th September 2010, 20th October 2010, 28th December 2010 and 20th January 2011. The Committee meets for approximately two hours. The maximum time gap between any two meetings was not more than three months. The meetings were attended by the members of the Committee, as detailed below: Name of Members of Audit Committee Dr. Shankar Acharya (Chairman) Mr. Shivaji Dam* Mr. C. Jayaram * Ceased to be a Director with effect from 21st March 2011 Subsequently, one meeting of the Committee was held on 5th May 2011 and was attended by Dr. Shankar Acharya, Dr. Sudipto Mundle and Mr. C. Jayaram. The Bank has constituted a First Tier Audit Committee as per the guidelines issued by the Reserve Bank of India. During the year, the Committee was re-constituted by the Board on 28th December 2010 to include Mr. Shyam Sunder, Head Compliance of the Bank as a member. Further, Mr. Vikram Sud had resigned from the Bank and ceased to be a member of the Committee. The Committee now consists of four members viz., Mr. Dipak Gupta, Executive Director, Mr. Jaimin Bhatt - Group Chief Financial Officer, Mr. Shyam Sunder, Group Head Compliance and Mr. Arvind Kathpalia Group Head Risk. Where the internal audit report pertains to specific businesses, the specific Business Head also attends the meeting. The Committee screens the matters entrusted to the Audit Committee and also the routine matters such as overseeing the programme of inspections and compliance of inspection reports so as not to burden the Audit Committee with matters of detail. During the year, nine meetings of the Committee were held. The Committee meets for approximately three hours. Investor Relations (Shareholders/Investors Grievance) Committee The Investor Relations Committee of the Bank consists of four members, with any two forming the quorum. The Committee presently consists of Mr. Asim Ghosh (Chairman), Mr. Uday Kotak, Mr. C. Jayaram and Mr. Dipak Gupta. The Investor Relations Committee reviews the complaints received from the shareholders and ensures redressal thereof. The constitution and composition of the Committee is in accordance with the provisions of Clause 49 of the Listing Agreement with the Stock Exchanges and the criteria specified by the Reserve Bank of India. The Company Secretary acts as the Secretary and has been appointed as the Compliance Officer of the Committee. During the year, two meetings of the Committee were held on 20th July 2010 and 27th October 2010. The Committee meets for approximately thirty minutes. Both the meetings were attended by Mr. Asim Ghosh, Mr. Uday Kotak and Mr. Dipak Gupta whereas Mr. C. Jayaram attended one meeting of the Committee. On a monthly basis, the members of the Committee are sent investor grievance reports giving brief details of the complaints received by the Bank. During the year under review, 47 investor complaints were received. All of these have been resolved as on date of this report. As on 31st March 2011, two instruments of transfer of shares, comprising 4000 shares were pending and since then the same have been processed and resolved. No penalties or strictures were imposed on the Bank by any of the Stock Exchanges, SEBI or any other statutory authority on any matter related to capital markets, during the last three years. Its grt 2b 25 Meetings held during the tenure of the member 8 8 8 Meetings Attended during the year 2010-11 8 8 7
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ESOP/Compensation Committee The ESOP/Compensation Committee of the Bank comprises of three members, with any two forming the quorum. The constitution and composition of the Committee is in accordance with the guidelines issued by Reserve Bank of India. The ESOP/Compensation Committee has been constituted to recommend/review overall compensation structure and policies; consider grant of stock options to employees; review compensation levels vis--vis other banks and industry in general and determine the compensation payable to the Directors including performance/achievement bonus and perquisites. The performance bonus to the Executive Directors is based on the recommendation of the Executive Vice-Chairman and Managing Director of the Bank. The Board of Directors of the Bank decides the performance bonus to be paid to the Executive Vice-Chairman and Managing Director and the Executive Directors on the basis of the performance of the Bank and the fulfilment of responsibilities assigned to them. Non-Executive Directors at present, are not paid commission over and above the sitting fees. The Bank has issued stock options to its employees and the employees of its subsidiaries under various stock option plans, details of which are provided in the Directors Report. In view of the cessation of Mr. Anand Mahindra, Mr. Cyril Shroff and Mr. Shivaji Dam as Directors of the Bank, the Committee was re-constituted by the Board on 18th March 2011 and consists of Mr. Amit Desai (Chairman), Dr. Shankar Acharya and Mr. Prakash Apte as members of the Committee with any two forming the quorum. During the year, seven meetings of the Committee were held on 10th May 2010, 15th May 2010, 29th May 2010, 2nd June 2010, 16th August 2010, 1st October 2010 and 16th December 2010. Mr. Anand Mahindra attended four meetings, Mr. Shivaji Dam attended six meetings and Mr. Cyril Shroff attended five meetings of the Committee. Subsequently, one meeting of the Committee was held on 5th May 2011 and was attended by Mr. Amit Desai and Dr. Shankar Acharya. Share Transfer and Routine Transactions (START) Committee The START Committee of the Bank consists of Mr. Uday Kotak (Chairman), Mr. C. Jayaram and Mr. Dipak Gupta, with any two forming the quorum. The term of reference of the START Committee is as follows: (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) To approve transfer, transmission, transposition, name deletion, consolidation and splitting of share and debenture certificates of the Company. To issue duplicate share/debenture certificates. To apply for registration of the Company with various authorities of any state or Centre including sales tax authorities, income tax authorities, shops & establishment authorities, and to do or perform all matters relating to such matters. To apply, in the name of and for the Company for telephone, telex, fax and other telecommunication and electrical/electronic connections and to do all matters relating to such applications. To open, operate and close Bank Accounts of the Company and change the operating instructions of existing Bank Accounts of the Company. To authorise persons to sign on behalf of the Company Share Certificates, Share Allotment Letters, Deposit Receipts. To authorise persons to represent the Company at General Meetings of any company or cooperative society of which the Company is a shareholder/member. To fix the dates for Closure of the Companys Register of Members and Debenture holders and Transfer Books of Shares or Debentures and/or fixing Record Dates, in consultation with the Stock Exchanges. To authorise the opening of Securities General Ledger Account or any other account with any scheduled banks or with any department of the Reserve Bank of India. To authorise persons to execute Loan Agreements, Demand Promissory Notes and any other documents as may be necessary for lending out of any line of credit sanctioned to the Company. To authorise officials of the Company to execute transfer deeds on behalf of the Company. To authorise officials of the Company to sign documents for registration of motor vehicles and to do all acts and things for the transfer of any such motor vehicles.
(m) To authorise employee(s) or others to execute, for and on behalf of the Company, agreements, applications, deeds, documents and any other writings in connection with the business of the Company and, if required, to issue Power of Attorney in favour of such persons for the purpose. (n) To authorise employee(s) or others to represent the Company before any Court, Tribunal, Consumer Redressal Forum or any Statutory or other Authority on any matter relating to the operations of the Company or with which the Company is in any way connected or to represent the Company generally or for any specific purpose or purposes and, if required, issue Power of Attorney in favour of such persons for the purpose. To appoint or change nominees to hold shares for and on behalf of the Company in any subsidiary/associate companies. To grant permission and authorise incorporation of companies, with a prefix Kotak Mahindra before the name. To authorise the use of the Common Seal of the Company and to appoint persons to sign/countersign documents, etc. on which the Common Seal is to be affixed. Kotak Mahindra Bank Limited Annual Report 2010-11
(o) (p) (q)
112
Its grt 2b 25
During the year, thirty two meetings of the Committee were held. Mr. Uday Kotak attended all the meetings, Mr. C. Jayaram attended twenty four meetings and Mr. Dipak Gupta attended thirty one meetings. Subsequently, three meetings of the Committee were held and the same were attended by all the three members. Nomination Committee The Nomination Committee of the Bank consists of three members, with any two forming the quorum. Presently, the Committee consists of Mr. Uday Kotak (Chairman), Mr. C. Jayaram and Mr. Dipak Gupta. The terms of reference of the Committee include appointment of senior management personnel and making recommendations to the Board for appointment of Directors or filling of vacancies on the Board. In addition, the Committee also evaluates whether the members of the Board of Directors of the Bank adhere to the fit and proper criteria as prescribed by the Reserve Bank of India. During the year, three meetings of the Committee were held on 11th May 2010, 29th July 2010 and 18th March 2011. All the members attended all the three meetings. Subsequently, one meeting of the Committee was held on 5th May 2011 and was attended by all the three members. Management Committee The Management Committee of the Bank consists of four members, with any three forming the quorum. The Committee has been constituted to review all important matters to be placed before the Board, assess adequacy of policies on an on-going basis, review business operations, corporate governance, implementation of policies, to establish systems for facilitating efficient operations and to approve donations. Further, the Board of Directors of the Bank at their meeting held on 20th October 2010 authorized the Management Committee to exercise the supervisory powers in connection with the risk management of the Bank which interalia includes, monitoring of the exposures, reviewing adequacy of risk management process and upgradation thereof, reviewing the internal control system and ensuring compliance with the statutory/regulatory framework of the risk management process. In view of the cessation of Mr. Shivaji Dam as a Director of the Bank, the Committee was re-constituted by the Board on 18th March 2011 and now consists of Mr. Uday Kotak, Mr. Dipak Gupta, Mr. C. Jayaram and Mr. Prakash Apte as members of the Committee. During the year, eleven meetings of the Committee were held. Mr. Uday Kotak and Mr. Dipak Gupta attended all the eleven meetings of the Committee. Mr. C. Jayaram attended ten meetings and Mr. Shivaji Dam attended five meetings of the Committee. Committee on Frauds Pursuant to the directives of the Reserve Bank of India, the Bank has constituted a Committee on Frauds on 27th January 2004 for monitoring and reviewing all the frauds involving amounts of ` 1 crore and above. In view of the cessation of Mr. Shivaji Dam as a Director of the Bank, the Committee was re-constituted by the Board on 18th March 2011 and presently consists of Mr. Uday Kotak, Mr. Dipak Gupta, Mr. C. Jayaram and Dr. Sudipto Mundle as members of the Committee. During the year, one meeting of the Committee was held on 22nd April 2010 and the same was attended by all the members. Customer Services Committee The Bank has, pursuant to the directives issued by the Reserve Bank of India, constituted a Customer Services Committee on 22nd September 2004. The Committee presently consists of three members viz; Mr. Asim Ghosh (Chairman), Mr. Uday Kotak and Mr. Dipak Gupta. The Committee has been constituted to bring about ongoing improvements in the quality of customer services provided by the Bank. The Committee would also oversee the functioning of the Customer Service Standing Committee, compliance with the recommendations of the Committee on Procedures and Performance Audit and Public Services (CPPAPS) and also mount innovative measures for enhancing the quality of customer service and improving the level of customer satisfaction for all categories of cliental, at all times. During the year, two meetings of the Committee were held on 20th July 2010 and 27th October 2010. All the members attended both the meetings. Code of Conduct The Board of Directors of the Bank at its meeting held on 18th March 2011 adopted the revised Code of Conduct for the purpose of Clause 49 applicable to the Board of Directors and Senior Management Personnel respectively. Both the Code of Conduct have been posted on the website of the Bank, i.e. www.kotak.com. General Meetings During the last three years, one Extraordinary General Meeting and three Annual General Meetings i.e. Twenty Fifth, Twenty Fourth and Twenty Third meeting of equity shareholders were all held at Indian Merchants Chamber, Walchand Hirachand Hall, 4th Floor, Churchgate, Mumbai 400 020. General Meetings Extraordinary General Meeting Day, Date and Time Tuesday, 27th July 2010 at 3.30 p.m. Special Resolutions passed thereat Special Resolution u/s 81 (1A) of the Companies Act, 1956 for issue and allotment of 1,64,00,000 equity shares of the Bank of face value of `10/- each to Sumitomo Mitsui Banking Corporation on a preferential basis at a price per share of `833/-. No special resolution
Twenty Fifth Annual General Meeting
Wednesday, 21st July 2010 at 11.30 a.m.
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113
General Meetings Twenty Fourth Annual General Meeting
Day, Date and Time Tuesday, 28th July 2009 at 11.30 a.m.
Special Resolutions passed thereat Special Resolution u/s 309(4) of the Companies Act, 1956 and u/s 35B and other provisions of Banking Regulation Act, 1949 for the reappointment of Dr. Shankar Acharya as part-time Chairman of the Bank for a period of three years with effect from 20th July 2009. 1. Special Resolution u/s 309(4) of the Companies Act, 1956 and u/s 35B and other provisions of Banking Regulation Act, 1949 to increase the remuneration of Dr. Shankar Acharya, part-time Chairman of the Bank. Special Resolution to increase the ceiling limit on total holdings of Foreign Institutional Investors/SEBI approved sub-account of FIIs in the equity share capital of the Bank.
Twenty Third Annual General Meeting
Monday, 28th July 2008 at 11:30 a.m.
2.
No resolutions were passed through postal ballot during the last financial year. Disclosures The Bank has not entered into any material financial or commercial transactions with the directors or the management or their relatives or the companies and firms etc., in which they are either directly or through their relatives interested as directors and/or partners. The Bank has not entered into any material financial or commercial transactions with its subsidiaries and other related parties as per AS-18 that may have potential conflict with the interest of the Bank at large. During the last three years, there were no penalties or strictures imposed on the Bank by the Stock Exchange(s) and/or SEBI and/or any other statutory authorities on matters relating to capital market.
SHAREHOLDERS INFORMATION Date of Incorporation Registration No. Corporate Identification No. Address for Correspondence: Registered Office : 36-38A, Nariman Bhavan, 227, Nariman Point, Mumbai-400 021. Tel. No. (022) 66581100 Fax No.: (022) 22855577 Website: www.kotak.com : Ms. Bina Chandarana, Company Secretary & Executive Vice President E-mail: bina.chandarana@kotak.com : Karvy Computershare Private Limited (i) Plot No. 17-24 Vittal Rao Nagar Madhapur, Hyderabad - 500 081 Tel Nos.: (040) 44655000 Fax No.: (040) 23420814 : 21st November 1985. : 11-38137 TA : L65110MH1985PLC038137
Contact
Registrars & Share Transfer Agents
(ii) 7, Andheri Industrial Estate, Off Veera Desai Road, Andheri (West), Mumbai-400 058. Tel Nos.: (022) 26367226/26369044 Fax No.: (022) 26310882 Website: www.karvycomputershare.com Annual General Meeting: Date and Time Venue Financial Year Date of Book Closure Dividend Payment Date : Thursday, 21st July 2011 at 12 noon : Indian Merchants Chamber, Walchand Hirachand Hall, 4th Floor, Churchgate, Mumbai - 400 020. : 1st April to 31st March : 14th July 2011 to 21st July 2011 (both days inclusive) for payment of dividend. : On or after Friday, 22nd July 2011.
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INVESTOR RELATIONS The Bank publishes consolidated results on a quarterly basis. The same are also reviewed by the Audit Committee before submission to the Board. The consolidated financial results of the Bank and its subsidiaries are prepared and posted on the website of the Bank for the current as well as last five financial years. Also the quarterly results and earnings updates are posted on the website of the Bank. Every quarter, the Executive Vice-Chairman and Managing Director and the Executive Directors participate on a call with the analysts/ shareholders, the transcripts of which are posted on the website of the Bank. The Bank also has dedicated personnel to respond to queries from investors. Financial Calendar: For each calendar quarter, the financial results are reviewed and taken on record by the Board around the last week of the month subsequent to the quarter ending. The audited annual accounts as at 31st March are approved by the Board, after a review thereof by the Audit Committee. The Annual General Meeting to consider such annual accounts is held in the second quarter of the financial year. Stock Exchanges on which listed: Sr. No. 1. Name & Address of Stock Exchange The Bombay Stock Exchange Limited Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai 400 023 National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Bandra-Kurla Complex, Bandra, Mumbai 400 051 Luxembourg Stock Exchange BP 165, L-2011, Luxembourg Market Scrip Code 500247
2.
KOTAKBANK
3.
US50071Q2003
The annual fees for 2011-12 have been paid to the Bombay Stock Exchange Limited and the National Stock Exchange of India Limited, where the shares of the Bank are listed. Also maintenance charges are being paid periodically to Luxembourg Stock Exchange. Trading of shares to be in compulsorily dematerialized form: The Securities and Exchange Board of India has included the equity shares of the Bank in the list of shares in which trading is compulsorily in dematerialized form, from 29th November 1999. The equity shares of the Bank have been activated for dematerialisation with the National Securities Depository Limited with effect from 4th August 1998 and with the Central Depository Services (India) Limited with effect from 26th February 1999 vide ISIN INE237A01010. Pursuant to the sub-division of the equity shares of the Bank, w.e.f. 15th September 2010, the new ISIN is INE237A01028. Share Transfer System: Applications for transfers, transmission and transposition are received by the Bank at its Registered Office or at the office(s) of its Registrars & Share Transfer Agents. As the shares of the Bank are in dematerialised form, the transfers are duly processed by NSDL/ CDSL in electronic form through the respective depository participants. Shares which are in physical form are processed by the Registrars & Share Transfer Agents on a regular basis and the certificates despatched directly to the investors. Investor Helpdesk: Share transfers, dividend payments and all other investor related activities are attended to and processed at the office of our Registrars & Share Transfer Agents. For lodgement of Transfer Deeds and any other documents or for any grievances/complaints, kindly contact Karvy Computershare Private Limited, contact details of which are provided elsewhere in the Report. For the convenience of the investors, transfers and complaints from the investors are accepted at the Registered Office between 9:30 a.m. to 5:30 p.m. from Monday to Friday except on bank holidays. As advised by Securities and Exchange Board of India (SEBI) the Bank has a designated email-id investor.greivances@kotak.com for the purpose of registering complaints by the investors. The same has also been displayed on the website of the Bank. Kotak Mahindra Bank Limited Registered Office: 36-38A, Nariman Bhavan, 227, Nariman Point, Mumbai 400 021. Tel. No.: (022) 66581100 Fax: (022) 22855577 E-mail: bina.chandarana@kotak.com Website: www.kotak.com Its grt 2b 25
115
Transfer to Investor Education and Protection Fund: Pursuant to Section 205C of the Companies Act, 1956, dividends that are unclaimed for a period of seven years get transferred to the Investor Education and Protection Fund administered by the Central Government. The table given below gives the dates of dividend declaration since 2003-04 and the corresponding dates when unclaimed dividends are due to be transferred to the Central Government. Year 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 SHARE PRICE DETAILS The Monthly high and low quotation of shares traded on BSE: Month April 2010 May 2010 June 2010 July 2010 August 2010 September 2010 October 2010 November 2010 December 2010 January 2011 February 2011 March 2011 High (`) (post-split) 398.35 394.95 424.00 399.13 438.88 483.40 529.50 499.50 495.00 463.95 427.50 463.00 Low (`) (post-split) 353.18 354.33 365.00 372.50 386.40 407.05 456.00 435.15 439.05 371.20 333.25 405.45 Close (`) (post-split) 368.90 378.35 385.40 384.63 414.28 475.90 464.85 475.45 452.45 384.50 405.35 456.85 BSE SENSEX (CLOSE) 17,558.71 16,944.63 17,700.90 17,868.29 17,971.12 20,069.12 20,032.34 19,521.25 20,509.09 18,327.76 17,823.40 19,445.22 BANKEX (CLOSE) 11,155.07 10,656.56 10,756.03 11,539.55 12,190.64 14,025.04 14,016.21 13,618.77 13,379.73 12,064.01 11,840.34 13,299.77 Dividend-Type Final Final Final Final Final Final Final Date of Declaration 26th July 2004 26th July 2005 20th July 2006 5th July 2007 28th July 2008 28th July 2009 21st July 2010 Due Date of Transfer 25th August 2011 25th August 2012 19th August 2013 4th August 2014 27th August 2015 27th August 2016 20th August 2017
Note : Pursuant to the sub-division of the Equity Shares of the Bank, with effect from 15th September 2010, the equity shares of the Bank having a face value of `10/- have been sub-divided into two equity shares of face value `5/- each. All prices given above are adjusted for the split. The Monthly high and low quotation of shares traded on NSE: Month April 2010 May 2010 June 2010 July 2010 August 2010 September 2010 October 2010 November 2010 December 2010 January 2011 February 2011 March 2011 Note : (1) High (`) (post-split) 399.10 395.90 403.50 398.75 439.00 506.00 526.55 497.55 495.00 464.85 427.75 463.00 Low (`) (post-split) 350.00 354.05 364.05 372.55 386.23 405.30 455.00 435.00 439.85 369.45 333.00 405.00 Close (`) (post-split) 369.28 379.28 385.48 385.63 414.28 476.30 464.25 476.70 453.65 385.25 405.05 457.85 S&P & CNX NIFTY 5278.00 5086.30 5312.50 5367.60 5402.40 6029.95 6017.70 5862.70 6134.50 5505.90 5333.25 5833.75 BANK NIFTY 9870.35 9363.70 9464.60 10161.00 10746.35 12366.35 12330.75 11952.60 11791.45 10641.85 10435.35 11705.45
(2)
Pursuant to the sub-division of the Equity Shares of the Bank, with effect from 15th September 2010, the equity shares of the Bank having a face value of `10/- have been sub-divided into two equity shares of face value `5/- each. All prices given above are adjusted for the split Kotak Bank stock was included in the S&P & CNX NIFTY Index with effect from 8th April 2010.
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Kotak Vs Nifty and Bankex

135 130 125 120 115 110 105 100 95 90
0 r-1 Ap M
Units
10
10
11
ay -1
ov -1
-1
Ju l-1
O ct
ec
Ju n
Au
Se
Ja n
Fe
Kotak Mahindra Bank
Nifty
Bankex
Periods
Shareholding Pattern Category As on 31st March 2011 No. of Shares Held (face value `5/- each) A. Promoters Holding Promoters Sub-Total Non-Promoters Holding 1. Institutional Investors a. Mutual Funds & UTI b. Banks, Financial Institutions, Insurance Companies (State / Central Govt. Institutions) c. Foreign Institutional Investors 17,073,746 22,985,657 2.32 3.12 7,001,018 10,326,604 2.01 2.96 335,790,268 335,790,268 Percentage of Shares As on 31st March 2010 No. of Shares Held (face value `10/- each) 167,902,644 167,902,644 Percentage of Shares
45.57 45.57
M
48.23 48.23 28.57 33.54 2.93 13.95 1.28 0.00 0.00 0.07 18.23 100.00
B.
187,186,793 227,246,196 34,929,797 96,665,604 8,967,792 18,262 32,800,000 453,585 173,835,040 736,871,504
25.40 30.84 4.74 13.12 1.22 0.00 4.45 0.06 23.59 100.00
99,444,686 116,772,308 10,196,298 48,577,546 4,442,456 9,131 241,094 63,466,525 348,141,477
Sub-Total C. Others a. Private Corporate Bodies b. Indian Public including Directors & Relatives c. NRIs / OCBs/Foreign Bodies d. Global Depository Shares (GDS) e. Foreign Bank f. Clearing Members Sub-Total Grand Total Notes: 1. 2.
Pursuant to the sub-division of the equity shares of the Bank, with effect from 15th September 2010, the equity shares of the Bank having a face value of `10/- have been sub-divided into two equity shares of face value `5/- each. The increase in capital is due to allotment of 77,88,550 equity shares of `5/- each (post split) under various ESOP Schemes of the Bank and preferential Allotment of 3,28,00,000 equity shares of `5/- each (post split) to Sumitomo Mitsui Banking Corporation.
ar -1
-1
-1
g-
p-
-1
b-
Its grt 2b 25
117
SHAREHOLDING OF DIRECTORS OF THE BANK: As on 31st March 2011 Name of the Director Dr. Shankar Acharya, Independent Non- Executive Part time Chairman *Mr. Uday Kotak, Executive Vice Chairman and Managing Director Mr. Asim Ghosh, Independent Non Executive Director Mr. Sudipto Mundle, Independent Non Executive Director **Mr. Amit Desai, Independent Non Executive Director **Mr. Prakash Apte, Independent Non Executive Director Mr. C. Jayaram, Executive Director Mr. Dipak Gupta, Executive Director ***Mr. N. P. Sarda, Independent Non Executive Director Note: 1. No. of Shares Held (face value `5/- each) 306,263,550 774,250 602,500 649,500 Percentage of Shares 41.56 0.11 0.08 0.09 -
2. 3.
*In addition, as on 31st March 2011, Kotak Trustee Company Pvt. Ltd. holds 26,897,060 equity shares (post split) of the Bank representing 3.65 % of the paid up share capital of the Bank. Kotak Trustee Company Pvt. Ltd. is the trustee for USK Benefit Trust -1 of which Mr. Uday Kotak is the sole beneficiary. **Mr. Prakash Apte and Mr. Amit Desai were appointed as Additional Directors of the Bank with effect from 18th March 2011. ***Mr. N.P. Sarda was appointed as an Additional Director of the Bank with effect from 1st April 2011.
List of Top 10 Shareholders of Kotak Mahindra Bank Limited as on 31st March 2011 Sr. No. 1 2 3 4 5 6 7 8 9 10 Name of the investor Uday Suresh Kotak Melany Holdings Limited Madison Holding Ltd. Sumitomo Mitsui Banking Corporation Kotak Trustee Company Pvt. Ltd. (Beneficial Owner Mr. Uday S. Kotak) Anuradha Mahindra Europacific Growth Fund Life Insurance Corporation Of India ICICI Prudential Life Insurance Company Ltd Avion Aerosols Pvt. Ltd Total shares held (face value `5/- each) 306,263,550 34,192,486 34,192,486 32,800,000 26,897,060 14,543,202 11,394,396 9,828,218 7,820,813 7,626,550 % of holding 41.56 4.64 4.64 4.45 3.65 1.97 1.55 1.33 1.06 1.03 Categories Indian Promoter FII FII Foreign Bank Indian Promoters Co. Pub FII IFI Bodies Corporate Bodies Corporate
Note: Melany Holdings Limited and Madison Holding Ltd. are the registered sub-accounts of M/s. Warburg Pincus International LLC, which is a Foreign Institutional Investor registered as such with Securities and Exchange Board of India. Distribution Schedule as on 31st March 2011 S. No. 1 2 3 4 5 6 7 8 9 10 11 12 Category from to 1 100 101 200 201 300 301 400 401 500 501 - 1000 1001 - 2000 2001 - 3000 3001 - 4000 4001 - 5000 5001 - 10000 10001 And Above TOTAL : No. of Holders 58851 9131 2838 2580 2117 6078 6429 2363 1004 602 660 978 93631 % of Holders 62.85 9.75 3.03 2.76 2.26 6.49 6.87 2.52 1.07 0.64 0.70 1.04 100.00 No. of Shares (face value `5/- each) 2,207,183 1,572,949 754,107 989,078 1,034,501 5,105,928 11,105,983 6,064,011 3,777,698 2,911,377 4,601,637 696,747,052 736,871,504 % of Shares 0.30 0.21 0.10 0.13 0.14 0.69 1.51 0.82 0.51 0.40 0.62 94.55 100.00
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Shares held in physical and electronic mode by the promoters and others as on 31st March 2011 are given in the below mentioned table: Category Physical mode Total Shares (face value `5/- each) Promoters Others TOTAL Outstanding GDS: The Bank has 18,262 GDS (post split) outstanding as at 31st March 2011. The Bank has complied with all the mandatory and some of the non mandatory requirements of the Code of Corporate Governance stipulated under Clause 49 of the Listing Agreement with the Stock Exchanges, other than the fact that in compliance with the Clause 49 of the Listing Agreement, Mr. Shivaji Dam, an independent director on the Board of the Bank was appointed on the Board of Kotak Mahindra Old Mutual Life Insurance Limited, a material non listed Indian subsidiary. However, Mr. Dam ceased to be a Director of the Bank effective 21st March 2011 on his completing a tenure of eight years as a director of the Bank, pursuant to the provisions of Section 10(2A)(i) of the Banking Regulation Act, 1949. Subsequently, at the next board meeting of the Bank held on 5th May 2011, Mr. Prakash Apte, an independent director, has been appointed as a director on the board of Kotak Mahindra Old Mutual Life Insurance Limited. COMPLIANCE WITH NON-MANDATORY REQUIREMENTS: (1) The Board The office of Non-Executive Chairman of the Bank as well as that of the chairman of the Audit Committee is maintained by the Bank at its expenses and all the expenses incurred in performance of his duties are reimbursed by the Bank. Pursuant to Section 10(2A) of the Banking Regulation Act, 1949 all Directors other than its Chairman and/or Whole-time Directors cannot hold office continuously for a period exceeding eight years. (2) Remuneration Committee The Bank has set up ESOP/Compensation Committee of Directors to recommend/review overall compensation structure and policies of the Bank. Details of the said Committee have already been provided hereinabove. (3) Shareholders Rights The quarterly results of the Bank are published in one English and one Marathi newspaper, having wide circulation in Maharashtra. Further, the quarterly results are also posted on the website of the Bank www.kotak.com. Along with the quarterly results, detailed earnings updates are also given on the website of the Bank. Further, the quarterly investors/analysts conference call is made to discuss the financial results and performance of the Bank and the Group. The results are also available on www.corpfiling.co.in. In view of the foregoing, the half-yearly results of the Bank are not sent to the shareholders individually. (4) Audit qualifications During the period under review, there were no audit qualifications in the Banks financial statements. The Bank continues to adopt best accounting practices and has complied with the Accounting Standards and there is no difference in the treatment. (5) Mechanism for evaluating Non-Executive Board Members The Bank has constituted the Nomination Committee which evaluates every year whether the Members of the Board adhere to the fit and proper criteria as prescribed by the Reserve Bank of India. The adherence to the fit & proper criteria by the Members of the Nomination Committee, i.e. the Executive Directors is evaluated by the Board of Directors. (6) Whistle Blower Policy The Bank has adopted the Whistle Blower Policy pursuant to which employees of the Bank can raise their concerns relating to the fraud, malpractice or any other untoward activity or event which is against the interest of the Bank or society as a whole. The Bank hereby affirms that no personnel has been denied access to the Audit Committee. OTHER DISCLOSURES (A) The Management Discussion & Analysis Report The Management Discussion & Analysis Report, giving an overview of the industry, the Banks business and its financials is provided separately as a part of this Annual Report. Its grt 2b 25 334,950,382 8,302,150 343,252,532 % to Equity 45.46 1.13 46.59 Electronic mode Total Shares (face value `5/- each) 839,886 392,779,086 393,618,972 % to Equity 0.11 53.30 53.41
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(B) Means of Communication The Board of Directors of the Bank approves the unaudited financial results on a quarterly basis within one month of the quarter and the results are promptly forwarded to the stock exchanges and are generally published in Business Standard in English and Sakal, Mumbai in Marathi (Regional Language), within 48 hours of the conclusion of the Board Meeting. The results as well as other press releases are simultaneously displayed on the Banks website www.kotak.com. The website also displays all official news releases by the Bank from time to time as also the Earnings Updates and presentations made to investors and analysts. In addition to this, the quarterly results and earnings update are also prepared and posted on the website of the Bank. The Bank also publishes its Balance Sheet and Profit and Loss Account together with the Auditors Report in a newspaper as required in terms of Section 31 of the Banking Regulation Act, 1949 and Rule 15 of the Banking Regulation (Companies) Rules, 1949. Vide circulars dated on 21st April 2011 and 29th April 2011, the Ministry of Corporate Affairs, Government of India has taken a Green Initiative in Corporate Governance, allowing paperless compliances by companies, and permitting service of documents by a company through electronic modes. In light of same, the Bank proposes to send documents like the notice calling the annual general meeting, audited financial statements, directors report, auditors report etc. to its shareholders for the year ended 31st March 2011 and thereafter, in electronic form, to the email address provided by the shareholders and / or made available to the Bank by the Depositories. The Bank has also posted information relating to its financial results and shareholding pattern on Corporate Filing and Dissemination System (Corp filing) at www.corpfiling.co.in DECLARATION In accordance with Clause 49 of the Listing Agreement with the Stock Exchanges, I hereby confirm that, all the Directors and the Senior Management personnel of the Bank have affirmed compliance to the Code of Conduct for the financial year ended 31st March 2011. For Kotak Mahindra Bank Limited Uday Kotak Executive Vice Chairman and Managing Director Place : Mumbai, Date : 5th May 2011
Auditors Certificate
To the Members of Kotak Mahindra Bank Limited We have examined the compliance of conditions of corporate governance by Kotak Mahindra Bank Limited (the Bank), for the year ended on 31st March 2011, as stipulated in clause 49 of the Listing Agreement of the said Bank with stock exchanges. The compliance of conditions of corporate governance is the responsibility of the management. Our examination was limited to procedures and implementation thereof, adopted by the Bank for ensuring the compliance of the conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Bank. In our opinion and to the best of our information and according to the explanations given to us we certify that the Bank has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement other than the fact that, as per requirements of clause 49 of Listing Agreement, at least one independent director of Bank shall be a director on the board of a material non listed subsidiary, pursuant to which an independent director of Bank has been appointed as a director on the board of the material non listed subsidiary, however the said independent director ceased to be a director of the Bank on 21st March 2011. Subsequently, at the next board meeting of the Bank held on 5th May 2011, another independent director of the Bank has been appointed as a director on the board of the material non listed subsidiary. We further state that such compliance is neither an assurance as to the future viability of the Bank nor the efficiency or effectiveness with which the management has conducted the affairs of the Bank. For S.R. BATLIBOI & CO. Firm registration number: 301003E Chartered Accountants per Viren H. Mehta Partner Membership No.: 048749 Mumbai, 26th May 2011
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Bank Reports & Statements Auditors Report
Auditors Report
To the Members of Kotak Mahindra Bank Limited 1. We have audited the attached balance sheet of Kotak Mahindra Bank Limited (the Bank) as at 31st March 2011 and also the profit and loss account and cash flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Banks management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. The balance sheet and profit and loss account are drawn up in conformity with Forms A and B (revised) of the Third Schedule to the Banking Regulation Act, 1949, read with Section 211 of the Companies Act, 1956 (the Companies Act). We report that: a) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit and have found them to be satisfactory; In our opinion, the transactions of the Bank which have come to our notice have been within its powers; In our opinion, proper books of account as required by law have been kept by the Bank so far as appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from branches and representative office; The balance sheet, profit and loss account and cash flow statement dealt with by this report are in agreement with the books of account; In our opinion, the balance sheet, profit and loss account and cash flow statement dealt with by this report comply with the accounting standards referred to in subsection (3C) of Section 211 of the Companies Act, read with the guidelines issued by Reserve Bank of India insofar as they apply to the Bank; On the basis of written representations received from the directors, as on 31st March 2011, and taken on record by the Board of Directors, we report that none of the directors are disqualified from being appointed as a director in terms of clause (g) of subsection (1) of Section 274 of the Companies Act; In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act in the manner so required for banking companies, and give a true and fair view in conformity with the accounting principles generally accepted in India: i. ii. iii. in case of the balance sheet, of the state of the affairs of the Bank as at 31st March 2011; in case of the profit and loss account, of the profit for the year ended on that date; and in case of the cash flow statement, of the cash flows for the year ended on that date.
2.
3.
4.
b) c)
d)
e)
f)
g)
For S.R. Batliboi & Co. Firm Registration No. 301003E Chartered Accountants
per Viren H. Mehta Partner Membership No.048749 Mumbai, 5th May 2011 Its grt 2b 25
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(` in thousands)
Balance Sheet as at 31st March 2011

Schedule Capital and Liabilities Capital Reserves and Surplus Employees Stock Options (Grants) Outstanding Deposits Borrowings Other Liabilities and Provisions Total 3 4 5 1 2 3,684,358 64,280,362 369,172 292,609,686 117,239,484 30,323,596 508,506,658 3,481,415 41,369,735 548,017 238,864,671 61,405,132 28,694,195 374,363,165 As at 31st March 2011 As at 31st March 2010
Assets Cash and Balances with Reserve Bank of India Balances with Banks and Money at Call and Short Notice Investments Advances Fixed Assets Other Assets Total Contingent Liabilities Bills for Collection Significant Accounting Policies and Notes to the Financial Statements The schedules referred to above form an integral part of this Balance Sheet. The Balance Sheet has been prepared in conformity with Form A of the Third Schedule to the Banking Regulation Act, 1949. 17 & 18 12 6 7 8 9 10 11 21,077,242 3,632,607 171,214,395 293,293,067 4,256,073 15,033,274 508,506,658 343,692,398 10,534,742 20,856,726 2,145,915 125,126,625 207,750,541 4,276,492 14,206,866 374,363,165 369,660,202 6,493,241
As per our report of even date. For S. R. Batliboi & Co. Firm Registration No. 301003E Chartered Accountants per Viren H. Mehta Partner (Membership No. 048749)
For and on behalf of the Board of Directors Dr. Shankar Acharya Chairman Uday Kotak Executive Vice Chairman & Managing Director
Dipak Gupta Executive Director
Jaimin Bhatt Group Chief Financial Officer
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Bank Reports & Statements Balance Sheet and P&L A/c
(` in thousands)
Profit and Loss Account for the year ended 31st March 2011
Schedule I. Income Interest earned Other income Total II. Expenditure Interest expended Operating expenses Provisions and contingencies (Refer Note 13 - Schedule 18 B) Total III. Profit Net Profit for the year Add: Surplus brought forward from previous year Total IV. Appropriations Transfer to Statutory Reserve Transfer to General Reserve Transfer to Capital Reserve Transfer to Special Reserve u/s 36(1)(viii) of Income Tax Act, 1961 Transfer to / (from) Investment Reserve Account Proposed Dividend Corporate Dividend Tax Balance carried over to Balance Sheet Total V. Earnings Per Share (Face value of ` 5/-) Basic (Refer Note 4 - Schedule 18 B) ` Diluted (Refer Note 4 - Schedule 18 B) ` Significant Accounting Policies and Notes to the Financial Statements 17 & 18 11.35 11.28 8.09 8.00 2,045,500 409,100 6,900 290,000 (268,300) 368,831 43,654 14,945,189 17,840,874 1,402,800 280,600 69,600 400,000 11,900 296,613 (20,074) 9,659,053 12,100,492 8,181,821 9,659,053 17,840,874 5,611,057 6,489,435 12,100,492 15 16 20,584,854 15,533,202 5,066,078 41,184,134 13,974,755 11,893,934 7,358,903 33,227,592 13 14 43,035,582 6,330,373 49,365,955 32,556,249 6,282,400 38,838,649 Year ended 31st March 2011 Year ended 31st March 2010
The schedules referred to above form an integral part of this Profit and Loss Account. The Profit and Loss Account has been prepared in conformity with Form B of the Third Schedule to the Banking Regulation Act, 1949.
Its grt 2b 25
123
(` in thousands)
Cash Flow Statement for the year ended 31st March 2011
Year ended 31st March 2011 Cash Flow from Operating Activities Profit after tax Add: Provision for income-tax Net Profit Before Taxes Adjustments for: Employee Stock Options Grants Depreciation on bank property Profit on sale of investments in associates Diminution in the value of investments written back Dividend from Subsidiaries / Joint Ventures Amortization of Premium on HTM Investments Interest on Subordinated Debt Interest on Refinance from institutions Provision for Non Performing Assets, Standard Assets & Other Provisions Wealth Tax Loss / (Profit) on sale of Fixed Assets 93,754 982,652 531,041 (297,228) 1,281,788 574,853 1,877,300 839,840 206 (175) 17,760,843 Adjustments for: Decrease / (Increase) in Investments other than Subsidiaries, Joint Ventures & Other Long term Investments Decrease / (Increase) in Advances Decrease / (Increase) in Other Assets Decrease / (Increase) in Cash Collateral with Banks Increase / (Decrease) in Deposits Increase / (Decrease) in Borrowings other than Refinance and Subordinated debt Increase / (Decrease) in Other Liabilities & Provisions (47,775,493) (86,549,916) (1,049,432) 53,745,015 50,821,772 1,774,660 (29,033,394) Direct Taxes Paid Net Cash Flow from Operating Activities (A) (3,472,173) (14,744,724) (35,475,265) (46,183,380) 2,496,883 82,424,708 (6,249,842) 4,356,168 1,369,272 (2,980,422) 15,725,608 135,955 899,955 (166,277) (24,020) (118,800) 1,443,116 580,957 1,562,449 4,882,944 244 29,443 17,336,758 8,181,821 3,694,991 11,876,812 5,611,057 2,499,735 8,110,792 Year ended 31st March 2010
Cash Flow from Investing Activities Purchase of Fixed Assets Sale of Fixed Assets Proceeds from sale of Investment in Associates Decrease / (Increase) in Investments in Subsidiaries Dividend from Subsidiaries / Joint Ventures Net Cashflow from / (Used In) Investment Activities (B) (992,417) 30,359 (125,106) 297,228 (789,936) (3,095,882) 23,552 366,261 (168,635) 118,800 (2,755,904)
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Bank Reports & Statements Cash Flow Statement
(` in thousands)
Cash Flow Statement for the year ended 31st March 2011 (Contd.)
Year ended 31st March 2011 Cash Flow from / (Used In) Financing Activities Increase / (Decrease) in Subordinated Debt Interest paid on Subordinated Debt Increase in Refinance Interest paid on Refinance Fresh issue of shares / Money received on exercise of stock options Share issue expenses Dividend paid including Corporate Dividend Tax Net Cash Flow from Financing Activities Net Increase / (Decrease) in Cash & Cash Equivalents (C) (A + B + C) (13,725) (574,853) 5,026,305 (1,877,300) 14,983,522 (5,764) (296,317) 17,241,868 1,707,208 23,002,641 24,709,849 (261,900) (580,957) 576,768 (1,562,449) 738,708 (283,930) (1,373,760) 11,595,944 11,406,697 23,002,641 Year ended 31st March 2010
Cash & Cash Equivalents at the beginning of the Year (Refer Note below) Cash & Cash Equivalents at the end of the Year (Refer Note below)
Note: Balance with banks in India in Fixed Deposit (As per Sch 7 I (i) (b)) Balance with banks in India in Current Account (As per Sch 7 I (i) (a)) Money at call and short notice in India (As per Sch 7 I (ii)) Cash in hand (including foreign currency notes) (As per Sch 6 I) Balance with RBI in Current Accounts (As per Sch 6 II) Balance with Banks Outside India: (i) (ii) In Current Account (As per Sch 7 II (i)) In Other Deposit Accounts (As per Sch 7 II (ii)) 503,061 1,783,800 24,709,849 124,745 898,000 23,002,641 3,125 831,963 510,658 2,451,447 18,625,795 3,125 1,120,045 2,111,412 18,745,314
Cash & Cash Equivalents at the end of the Year
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Schedules forming part of Balance Sheet as at 31st March 2011

As at 31st March 2011 Schedule 1 - Capital Authorised Capital 80,00,00,000 Equity Shares of ` 5/- each (31st March 2010: 40,00,00,000 Equity Shares of ` 10/- each) Issued, Subscribed and Paid-up Capital 73,68,71,504 ( 31st March 2010: 34,81,41,477) Equity Shares of ` 5/- each (31st March 2010: ` 10/- each), fully paid-up (Refer Note 1 and 2 - Schedule 18 B ) Total 3,684,358 3,481,415 3,684,358 3,481,415 4,000,000 4,000,000 As at 31st March 2010
Schedule 2 - Reserves and Surplus I. Statutory Reserve Opening Balance Add: Transfer from Profit and Loss Account Total II. Capital Reserve Opening balance Add: Transfer from Profit and Loss Account Total III. General Reserve Opening Balance Add: Transfer from Profit and Loss Account Total IV. Investment Reserve Account Opening Balance Add: Transfer from / (to) Profit and Loss Account Total V. Special Reserve Account u/s 36(1)(viii) of Income Tax Act, 1961 Opening Balance Add: Transfer from Profit and Loss Account Total VI. Share Premium Account Opening Balance Add: Received during the year Less: Utilised for Share Issue Expenses (Refer Note 2 of Schdeule 18 B) Total VII. Balance in the Profit and Loss Account Total (I to VII) 23,030,913 15,147,055 5,764 38,172,204 14,945,189 64,280,362 21,675,186 1,355,727 23,030,913 9,659,053 41,369,735 400,000 290,000 690,000 400,000 400,000 428,914 (268,300) 160,614 417,014 11,900 428,914 3,097,952 409,100 3,507,052 2,817,352 280,600 3,097,952 282,203 6,900 289,103 212,603 69,600 282,203 4,470,700 2,045,500 6,516,200 3,067,900 1,402,800 4,470,700
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Bank Reports & Statements Schedules
(` in thousands)
Schedules forming part of Balance Sheet as at 31st March 2011 (Contd.)

As at 31st March 2011 Schedule 3 - Deposits A. I. Demand Deposits i. ii. From Banks From Others Total II. Savings Bank Deposits 1,006,014 53,595,920 54,601,934 33,303,313 989,260 48,932,036 49,921,296 24,710,044 As at 31st March 2010
III. Term Deposits i. ii. From Banks From Others (Refer Note 14 - Schedule 18 B) Total Total Deposits of branches (I to III) B. (i) (ii) Deposits of branches in India Deposits of branches outside India Total Schedule 4 - Borrowings I. Borrowings in India (i) (ii) (iii) Reserve Bank of India Other Banks Other Institutions and Agencies (Refer Note 15 - Schedule 18 B) Total II. Borrowings outside India Banks & Other Institutions (Refer Note 15 - Schedule 18 B) Total Total Borrowings (I and II) Secured Borrowings under CBLO included in I (iii) above Tier II Bonds included in I (iii) above Tier II Bonds included in II above Schedule 5 - Other Liabilities And Provisions I. II. III. IV. Bills Payable Interest Accrued Others (including provisions) Proposed Dividend (includes tax on dividend) Total 6,188,983 4,453,618 19,268,906 412,089 30,323,596 6,691,977 4,349,281 17,357,017 295,920 28,694,195 22,231,932 22,231,932 117,239,484 6,017,000 2,006,775 3,614,450 3,614,450 61,405,132 19,802,238 6,017,000 2,020,500 39,647,500 24,626,988 30,733,064 95,007,552 12,281,685 45,508,997 57,790,682 292,609,686 292,609,686 238,864,671 238,864,671 2,676,623 202,027,816 204,704,439 292,609,686 648,677 163,584,654 164,233,331 238,864,671
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(` in thousands)

As at 31st March 2011 Schedule 6 - Cash and Balances with Reserve Bank of India I. II. Cash in hand (including foreign currency notes) Balances with RBI in Current Account Total 2,451,447 18,625,795 21,077,242 2,111,412 18,745,314 20,856,726 As at 31st March 2010
Schedule 7 - Balances with Banks and Money at Call and Short Notice I. In India (i) Balances with Banks (a) (b) In Current Accounts In Other Deposit Accounts 831,963 3,125 835,088 1,120,045 3,125 1,123,170
Total (ii) Money at Call and Short Notice (a) With Banks (Refer Note 3 - Schedule 18 B)
510,658 510,658 1,345,746
1,123,170
Total Total (i and ii)
II.
Outside India (i) (ii) In Current Accounts In Other Deposit Accounts Total Total (I and II) 503,061 1,783,800 2,286,861 3,632,607 124,745 898,000 1,022,745 2,145,915
Schedule 8 - Investments I. Investments in India in (i) (ii) Government Securities* Other approved Securities 131,983,447 532,655 11,002,996 3,288,079 24,268,531 171,075,708 96,899,199 5,587 8,915,397 3,162,973 16,004,782 124,987,938
(iii) Shares (iv) (v) (vi) Debentures and Bonds Subsidiaries and Joint Ventures Others [Units, Certificate of Deposits, Commercial Paper (CP), Security Receipts, RIDF Deposit & Pass Through Certificates (PTC)] Total * Refer Note 3 - Schedule 18 B (Previous Year Net of Repo ` 1,562.37 crores) II. Investments outside India in (i) (ii) Shares Subsidiaries and Joint Ventures Total Total Investments (I and II)
1,043 137,644 138,687 171,214,395
1,043 137,644 138,687 125,126,625
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Bank Financial Statements Schedules
(` in thousands)

As at 31st March 2011 Schedule 9 - Advances A. (i) (ii) (iii) # B. (i) (ii) Bills purchased and discounted# Cash Credits, Overdrafts and Loans repayable on demand Term Loans Total Bills purchased and discounted is net off Bills Rediscounted ` 956.38 crores (Previous Year ` 1,171.88 crores) Secured by tangible assets * Unsecured Total * Including advances against book debts C. Advances in India (i) (ii) (iii) (iv) Priority Sector Public Sector Banks Others Total Schedule 10 - Fixed Assets A. Premises (Including Land) Gross Block At cost on 31st March of the preceding year Additions during the year Less: Deductions during the year Total Depreciation As at 31st March of the preceding year Add: Charge for the year Less: Deductions during the year Depreciation to date Net Block B. Other Fixed Assets (Including Furniture and Fixtures) Gross Block At cost on 31st March of the preceding year Additions during the year Less: Deductions during the year Total Depreciation As at 31st March of the preceding year Add: Charge for the year Less: Deductions during the year Depreciation to date Net Block (Refer Note 8 - Schedule 18 B ) Total (A) + (B) 2,816,223 945,639 97,591 3,664,271 2,463,521 4,256,073 2,145,154 866,637 195,568 2,816,223 2,446,927 4,276,492 5,263,150 992,417 127,775 6,127,792 3,701,225 1,810,487 248,562 5,263,150 360,671 37,013 397,684 1,792,552 327,352 33,319 360,671 1,829,565 2,190,236 2,190,236 904,841 1,285,395 2,190,236 87,379,166 875,000 205,038,901 293,293,067 67,903,701 1,730,465 138,116,375 207,750,541 250,803,855 42,489,212 293,293,067 167,006,843 40,743,698 207,750,541 11,026,240 57,595,021 224,671,806 293,293,067 9,714,569 33,226,015 164,809,957 207,750,541 As at 31st March 2010
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129
(` in thousands)

As at 31st March 2011 Schedule 11 - Other Assets I. II. Interest accrued Advance tax (net of provision for tax) 4,594,646 32,111 28,878 54,531 67,824 10,255,284 15,033,274 3,488,679 169,227 16,155 130,755 113,288 10,288,762 14,206,866 As at 31st March 2010
III. Stationery and Stamps IV. Cheques in course of collection V. Non banking assets acquired in satisfaction of claims VI. Others (Refer Note 7 - Schedule 18 B) Total
Schedule 12 - Contingent Liabilities I. II. Claims not acknowledged as debts Liability on account of Outstanding forward exchange contracts 923,478 81,677,424 40,312,069 34,165,842 809,864 20,839,963 19,911,705 24,143,148
III. Guarantees on behalf of Constituents in India IV. Acceptances, Endorsements and Other obligations V. Other Items for which the Bank is contingently liable : a. b. c. Liability in respect of interest rate & currency swaps & forward rate agreements Liability in respect of Options contracts Capital commitments not provided Total
184,639,088 1,682,493 292,004 343,692,398
290,650,311 12,516,018 789,193 369,660,202 (` in thousands)
Schedules forming part of Profit and Loss Account for the year ended 31st March 2011
Year ended 31st March 2011 Schedule 13 - Interest Earned I. II. Interest / Discount on Advances / Bills Income on Investments 33,281,543 9,571,785 171,884 10,370 43,035,582 25,269,110 7,268,573 10,570 7,996 32,556,249 Year ended 31st March 2010
III. Interest on balances with RBI and other inter-bank funds IV. Others Total Schedule 14 - Other Income I. II. Commission, exchange and brokerage Profit / (Loss) on sale of Investments (net)
3,527,412 909,949 175 (264,032) 712,670 1,254,758 189,441 6,330,373
3,055,051 522,402 (29,443) (8,596) 408,828 2,072,738 261,420 6,282,400
III. Profit / (Loss) on sale of building and other assets (net) IV. Profit on exchange transactions (net) V. Income earned from Subsidiaries / Joint Ventures VI. Profit on recoveries of non-performing assets acquired VII. Miscellaneous Income Total
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Bank Financial Statements Schedules
(` in thousands)
Schedules forming part of Profit and Loss Account for the year ended 31st March 2011 (Contd.)
Year ended 31st March 2011 Schedule 15 - Interest Expended I. II. III. Interest on Deposits Interest on RBI / Inter-Bank Borrowings Others (Refer Note 15 (c) - Schedule 18 B) Total 14,975,443 3,148,244 2,461,167 20,584,854 9,800,769 1,992,223 2,181,763 13,974,755 Year ended 31st March 2010
Schedule 16 - Operating Expenses I. II. III. IV. V. VI. VII. VIII. IX. X. XI. XII. XIII. Payments to and provision for employees (Refer Note 12 - Schedule 18 B) Rent, taxes and lighting (Refer Note 6(a) - Schedule 18 B) Printing and Stationery Advertisement, Publicity and Promotion Depreciation on Banks property Directors fees, allowances and expenses Auditors fees and expenses Law Charges Postage, telephone etc. Repairs and maintenance Insurance Travel and Conveyance Professional Charges 7,838,345 1,506,535 272,776 440,024 982,652 2,155 13,313 167,013 389,180 784,331 241,326 379,393 1,086,005 592,459 118,270 1,195,308 16,009,085 Less: Recovery of Costs from Group Companies Total 475,883 15,533,202 5,834,756 1,503,382 176,479 192,900 899,955 1,910 11,248 164,667 328,340 607,700 174,820 262,280 802,340 345,160 85,264 928,420 12,319,621 425,687 11,893,934
XIV. Brokerage XV. Stamping Expenses
XVI. Other Expenditure
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Schedules forming part of the Balance Sheet and Profit and Loss Account
Schedule 17 SIGNIFICANT ACCOUNTING POLICIES
A. ACCOUNTING METHODOLOGY The financial statements have been prepared in accordance with statutory requirements prescribed under the Banking Regulation Act, 1949. The accounting and reporting policies of Kotak Mahindra Bank Limited used in the preparation of these financial statements conform to Generally Accepted Accounting Principles in India (Indian GAAP), the guidelines issued by Reserve Bank of India (RBI) from time to time, the Accounting Standards (AS) issued by the Institute of Chartered Accountants of India (ICAI) and notified by the Companies (Accounting Standards) Rules, 2006 as amended to the extent applicable and practices generally prevalent in the banking industry in India. The Bank follows the accrual method of accounting, except where otherwise stated, and the historical cost convention. The preparation of financial statements requires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Actual results could differ from these estimates. B. REVENUE RECOGNITION a. b. c. d. e. f. g. Interest income is recognised on accrual basis except in case of non-performing assets where it is recognised, upon realisation, as per RBI guidelines. Penal interest is recognised as income on realisation. Interest income in respect of retail advances is accounted for by using the internal rate of return method to provide a constant periodic rate of return on the net investment outstanding on the contract. Interest income on discounted instruments is recognised over the tenure of the instruments so as to provide a constant periodic rate of return. Service charges, Fees and Commission income are recognised when due except for Guarantee Commission which is recognised over the period of the guarantee. Dividend income is accounted on an accrual basis when the Banks right to receive the dividend is established. Gain on account of securitisation of assets is amortised over the life of the securities issued in accordance with the guidelines issued by the RBI. In respect of non-performing assets acquired from other Banks / FIs and NBFCs, collections in excess of the consideration paid at each asset level or portfolio level is treated as income in accordance with RBI guidelines and clarifications.
C.
FIXED ASSETS a. b. Fixed Assets have been stated at cost inclusive of incidental expenses less accumulated depreciation. Depreciation: The Bank adopts the Straight Line Method of depreciation so as to write off 100% of the cost of assets at rates higher than those prescribed under Schedule XIV to the Companies Act, 1956 for all assets other than premises, based on the Managements estimate of useful lives of all assets as follows: Asset Type Premises Improvement to leasehold premises Office equipments (Chillers, Transformers, UPS & DG set) Office equipments (Other than above) Computers Furniture and Fixtures Vehicles ATMs Software (including development) expenditure Estimated Useful life in years 58 Over the primary period of lease subject to a maximum of 6 years. 10 5 3 6 4 5 3
Items costing less than ` 5,000 are fully depreciated in the year of purchase. D. EMPLOYEE BENEFITS a. Provident Fund Defined Contribution Plan Contribution as required by the Statute made to the Government Provident Fund is debited to the Profit and Loss Account when incurred.
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Bank Reports & Statements Accounting Policies & Notes
Schedules forming part of the Balance Sheet and Profit and Loss Account (Contd.)
b. Gratuity Defined Benefit Plan The Bank accounts for the liability for future gratuity benefits based on an actuarial valuation conducted by an independent actuary. The Bank makes contribution to a Gratuity Fund administered by trustees and managed by a life insurance company. The net present value of the Banks obligation towards the same is actuarially determined based on the projected unit credit method as at the Balance Sheet date. Actuarial gains and losses are recognised in the Profit and Loss Account. c. Superannuation Fund Defined Contribution Plan The Bank contributes a sum equivalent to 15% of eligible employees salary, subject to a maximum of ` 1 lakh per employee per annum to a Fund administered by trustees and managed by a life insurance company. The Bank recognises such contributions as an expense in the year they are incurred. d. Compensated Absences Other Long-Term Employee Benefits The Bank accrues the liability for compensated absences based on the actuarial valuation as at the Balance Sheet date conducted by an independent actuary. The net present value of the Banks obligation is determined based on the projected unit credit method as at the Balance Sheet date. e. Other Employee Benefits The undiscounted amount of short-term employee benefits expected to be paid for the services rendered by employees is recognised during the period when the employee renders the service. These benefits include performance incentives. E. INVESTMENTS 1. Classification a. In accordance with the RBI guidelines, investments are categorised into Held for Trading, Available for Sale and Held to Maturity and further classified under six groups, namely, Government Securities, Other Approved Securities, Shares, Debentures and Bonds, Investments in Subsidiaries / Joint Ventures and Other Investments for the purposes of disclosure in the Balance Sheet. Investments which are held for resale within 90 days from the date of purchase are classified as Held for Trading. Investments which the Bank intends to hold till maturity are classified as Held to Maturity. The Bank has classified investments in subsidiaries, joint ventures and associates as Held to Maturity. Investments which are not classified in either of the above two categories are classified as Available for Sale.
b. c. d. 2.
Valuation The cost of investments is determined on weighted average basis. Broken period interest on debt instruments is considered as a revenue item. The transaction costs including brokerage, commission etc. paid at the time of acquisition of investments is charged to Profit and Loss Account. The valuation of investments is performed in accordance with the RBI guidelines as follows: a. Held for Trading / Available for Sale Each security in this category is revalued at the market price or fair value and the net depreciation of each group is recognised in the Profit and Loss Account. Net appreciation, if any, is ignored. Further, provision for diminution other than temporary is made for, at the individual security level. Held to Maturity These are carried at their acquisition cost. Any premium on acquisition of debt instruments is amortised over the balance maturity of the security on a straight line basis. Any diminution, other than temporary, in the value of such securities is provided. The market value of investments where market quotations are not available is determined as per the norms laid down by the RBI. Repurchase and reverse repurchase transactions Securities sold under agreements to repurchase (Repos) and securities purchased under agreements to resell (Reverse Repos) are accounted as collateralised borrowing and lending transactions respectively. The difference between the consideration amount of the first leg and the second leg of the repo is recognised as interest income / interest expense over the period of the transaction. (Refer note 3 of Schedule 18 B)
b.
c. d.
3.
Transfer between Categories Transfer between categories is done, in accordance with RBI guidelines at the lower of the acquisition cost / book value / market value on the date of the transfer and depreciation, if any, on such transfer is fully provided for.
4.
Profit or Loss on sale / redemption of Investments a. b. Held for Trading and Available for Sale - Profit or loss on sale / redemption is included in the Profit and Loss Account. Held to Maturity - Profit on sale / redemption of investments is included in the Profit and Loss Account and is appropriated to Capital Reserve after adjustments for tax and transfer to Statutory Reserve. Loss on sale / redemption is charged off to the Profit and Loss Account.
F.
FOREIGN CURRENCY AND DERIVATIVE TRANSACTIONS a. Foreign currency assets and liabilities are translated as at the Balance Sheet date at rates notified by the Foreign Exchange Dealers Association of India (FEDAI). Its grt 2b 25
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b. c. Income and Expenditure items are translated at the rates of exchange prevailing on the date of the transactions except in respect of representative office expenses, which are translated at monthly average exchange rate. Foreign Exchange contracts (other than deposit and placement swaps) outstanding at the Balance Sheet date are revalued at rates notified by FEDAI and resulting profits or losses are included in the Profit and Loss Account. Foreign exchange swaps linked to foreign currency deposits and placements are translated at the prevailing spot rate at the time of swap. The premium / discount on the swap arising out of the difference in the exchange rate of the swap date and the maturity date of the underlying forward contract is amortised over the period of the swap and the same is recognised as income / expense. Notional amounts of derivative transactions comprising of forwards, swaps, futures and options are disclosed as off Balance Sheet exposures. The swaps are segregated into trading or hedge transactions. Trading swaps outstanding as at the Balance Sheet dates are marked to market and the resulting profits or losses, are recorded in the Profit and Loss Account. Outstanding derivative transactions designated as Hedges are accounted on an accrual basis over the life of the transaction. Option premium paid / received is accounted for in the Profit and Loss Account on expiry of the option. Contingent liabilities as at the Balance Sheet date on account of outstanding foreign exchange contracts are restated at year end rates notified by FEDAI.
d.
e. G.
ADVANCES a. b. Advances are classified into standard, sub-standard, doubtful and loss assets in accordance with the RBI guidelines and are stated net of provisions made towards non-performing advances. Provision for non-performing advances comprising sub-standard, doubtful and loss assets is made in accordance with the RBI guidelines. In addition, the Bank adopts an approach to provisioning that is based on past experience, evaluation of security and other related factors. In accordance with RBI guidelines the Bank has provided general provision on standard advances at uniform rate of 0.40% except in case of direct advances to Agricultural & SME sectors which are provided at 0.25%, Commercial Real Estate sector at 1.00% and teaser rate Housing loans at 2.00%. Excess standard provision due to revision in provisioning rates is not written back to Profit and Loss Account in accordance with the RBI guidelines and clarifications. d. Amounts paid for acquiring non-performing assets from other banks and NBFCs are considered as advances. Actual collections received on such non-performing assets are compared with the cash flows estimated while purchasing the asset to ascertain overdue. If the overdue is in excess of 90 days, then the assets are classified into sub-standard, doubtful or loss as required by the RBI guidelines on purchase of non-performing assets.
c.
H.
SECURITISATION The Bank enters into arrangements for sale of loans through Special Purpose Vehicles (SPVs). In most cases, post securitisation, the Bank continues to service the loans transferred to the SPV. At times the Bank also provides credit enhancement in the form of cash collaterals and / or by subordination of cash flows to Senior Pass Through Certificate (PTC) holders. In respect of credit enhancements provided or recourse obligations (projected delinquencies, future servicing etc.) accepted by the Bank, appropriate provision / disclosure is made at the time of sale in accordance with Accounting Standard 29, Provisions, Contingent Liabilities and Contingent Assets notified by the Companies (Accounting Standards) Rules, 2006 as amended. The profit / premium on account of securitisation of assets at the time of sale is computed as the difference between the sale consideration and the book value of the securitised asset amortised over the tenure of the securities issued. Loss on account of securitisation on assets is recognised immediately to the Profit and Loss Account.
I.
TAXES ON INCOME The Income Tax expense comprises current tax and deferred tax. Current tax is measured at the amount expected to be paid in respect of taxable income for the year in accordance with the Income Tax Act, 1961. Deferred tax adjustments comprise of changes in the deferred tax assets and liabilities. Deferred tax assets and liabilities are recognised for the future tax consequences of timing differences being the difference between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantially enacted at the Balance Sheet date. Changes in deferred tax assets / liabilities on account of changes in enacted tax rates are given effect to in the Profit and Loss Account in the period of the change. The carrying amount of deferred tax assets are reviewed at each Balance Sheet date for recoverability based on future taxable income.
J.
SEGMENT REPORTING In accordance with guidelines issued by RBI vide DBOD.No.BP.BC.81/21.01.018/2006-07 dated 18th April 2007 and Accounting Standard 17 (AS-17) on Segment Reporting notified under the Companies (Accounting Standard) Rules, 2006 as amended, the Banks business has been segregated into the following segments whose principal activities were as under:
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Segment Treasury and BMU Corporate / Wholesale Banking Retail Banking Principal activity Money market, forex market, derivatives, investments and primary dealership of government securities and Balance Sheet Management Unit (BMU) responsible for Asset Liability Management. Wholesale borrowings and lendings and other related services to the corporate sector which are not included under retail banking. Includes: I Lending Commercial vehicle finance, personal loans, home loans, agriculture finance, other loans / services & exposures which fulfill the four criterias for retail exposures laid down in Basel Committee on Banking Supervision document International Convergence of Capital Measurement and Capital Standards : A Revised Framework II Branch Banking Retail borrowings covering savings, current, term deposit accounts and Branch Banking network / services including distribution of financial products.
III Credit Cards Receivables / loans relating to credit card business. Other Banking Business Any other business not classified above.
A transfer pricing mechanism has been established by Asset Liability Committee (ALCO) for allocation of interest cost to the above segments based on borrowing costs, maturity profile of assets / liabilities etc. and which is disclosed as part of segment revenue. Segment revenues consist of earnings from external customers and inter-segment revenues based on a transfer pricing mechanism. Segment expenses consist of interest expenses including allocated, operating expenses and provisions. Segment results are net of segment revenues and segment expenses. Segment assets include assets related to segments and exclude tax related assets. Segment liabilities include liabilities related to the segment excluding net worth, employees stock option (grants outstanding) and proposed dividend and dividend tax thereon. Since the business operations of the Bank are concentrated in India, the Bank is considered to operate only in the domestic segment. K. LEASES Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term, are classified as operating leases. Operating lease payments are recognised as an expense in the Profit and Loss Account on a straight-line basis over the lease term. L. CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash in hand, balances with Reserve Bank of India and Balances with Other Banks / institutions and money at Call and short Notice (including the effect of changes in exchange rates on cash and cash equivalents in foreign currency). M. EARNINGS PER SHARE Basic earnings per share are calculated by dividing the net Profit or Loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events of bonus issue; bonus element in a rights issue to existing shareholders and share split. For the purpose of calculating diluted earnings per share, the net Profit or Loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares. N. PROVISIONS A provision is recognised when the Bank has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Provision is made for Credit card reward points based on reward points accrued to the customer at Balance Sheet date. Contingent Liabilities are not recognised but are disclosed in the notes unless the outflow of resources is remote. Contingent assets are neither recognised nor disclosed in the financial statements. Its grt 2b 25
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O. IMPAIRMENT The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal / external factors. P. EMPLOYEE STOCK OPTION SCHEME Equity-settled scheme: The Bank has formulated Employee Stock Option Schemes (ESOSs) in accordance with Securities and Exchange Board of India (Employee Stock Option Scheme) Guidelines, 1999. The Schemes provide for grant of options to employees of the Group to acquire the equity shares of the Bank that vest in cliff vesting or in a graded manner and that are to be exercised within a specified period. In accordance with the SEBI Guidelines and the guidance note on Accounting for Employee Share based payments issued by The Institute of Chartered Accountants of India, the excess, if any, of the market price of the share preceding the date of grant of the option under ESOSs over the exercise price of the option is amortised on a straight-line basis over the vesting period. Where the terms of an equity-settled award are modified, the minimum expense recognised in Payments to and provision for employees is the expense as if the terms had not been modified. An additional expense is recognised for any modification which increases the total intrinsic value of the share-based payment arrangement, or is otherwise beneficial to the employee as measured at the date of modification. In respect of options granted to employees of subsidiaries, the Bank recovers the related compensation cost from the respective subsidiaries. Cash-settled scheme: The cost of cash-settled transactions (stock appreciation rights) is measured initially using intrinsic value method at the grant date taking into account the terms and conditions upon which the instruments were granted. This intrinsic value is amortised on a straightline basis over the vesting period with a recognition of corresponding liability. This liability is remeasured at each Balance Sheet date up to and including the settlement date with changes in intrinsic value recognised in Profit and Loss Account in Payments to and provision for employees.
Schedule 18 NOTES TO ACCOUNTS

A. DISCLOSURES AS LAID DOWN BY RBI CIRCULARS: 1. Capital Adequacy Ratio: The Banks Capital Adequacy Ratios calculated in accordance with the RBI Guidelines are as follows: (` in crores) BASEL I As at 31st March 2011 Tier I Capital Tier II Capital Total Capital Total Risk weighted assets and contingencies Capital Ratios: (i) CRAR - Tier I Capital (%) 16.91% 1.82% 18.73% 352.22 336.68 15.17% 2.88% 18.05% 400.22 338.05 17.99% 1.93% 19.92% 352.22 336.68 15.42% 2.93% 18.35% 400.22 338.05 (ii) CRAR - Tier II Capital (%) (iii) CRAR % (iv) Percentage of the shareholding of the Government of India (v) Amount raised by issue of IPDI (vi) Amount raised by issue of Upper Tier II instruments Amount of subordinated debt considered in Tier II capital Amount of subordinated debt considered in Upper Tier II Capital 6,386.02 686.00 7,072.02 37,765.57 As at 31st March 2010 4,040.13 768.46 4,808.59 26,641.67 BASEL II As at 31st March 2011 6,386.02 686.00 7,072.02 35,508.93 As at 31st March 2010 4,040.13 768.46 4,808.59 26,204.93
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2. Investments held under the 3 categories viz. Held for Trading (HFT), Available for Sale (AFS) and Held to Maturity (HTM) are as under: (` in crores) As at 31st March 2011 HFT Government Securities Other Approved Securities Shares Debentures and Bonds Subsidiaries, Associates and Joint Ventures Units, Certificate of Deposits, CP, SRs, RIDF, PTCs etc. Total 3. 527.55 187.96 1,559.20 2,274.71 AFS 6,870.07 53.37 912.34 268.97 8,104.75 HTM 5,800.73 342.57 598.68 6,741.98 Total 13,198.35 53.37 1,100.30 342.57 2,426.85 17,121.44 As at 31st March 2010 HFT 560.60 222.42 759.30 1,542.32 AFS 0.66 669.12 333.70 HTM 330.06 507.48 Total 9,689.92 0.66 891.54 330.06 1,600.48 3,874.27 5,255.05
4,877.75 6,092.59 12,512.66
The details of investments and the movement of provisions held towards depreciation of investments of the Bank as on 31st March 2011 and 31st March 2010 are given below: (` in crores) As at 31st March 2011 1. Value of Investments i. Gross value of Investments a. b. ii. c. d. iii. e. f. 2. i. ii. iii. iv. In India Outside India In India Outside India In India Outside India 17,167.62 13.87 (60.05) 17,107.57 13.87 6.95 73.48 20.38 60.05 12,505.74 13.87 (6.95) 12,498.79 13.87 9.35 4.06 6.46 6.95 As at 31st March 2010
Provision for Depreciation
Net value of Investments
Movement of provisions held towards depreciation on investments Opening balance Add: Provisions made during the year Less: Write - off / write - back of excess provisions during the year Closing balance
4.
Details of Repo / Reverse Repo (excluding LAF transactions for the year) deals: Year ended 31st March 2011: (` in crores) Particulars Minimum outstanding during the year 4.93 Maximum outstanding during the year 4,896.56 21.73 487.26 26.11 Daily Average outstanding during the year 1,508.33 0.29 183.20 0.07 As at 31st March 2011
Securities sold under repos i. ii. i. ii. Government securities Corporate debt securities Government securities Corporate debt securities 612.96 51.07
Securities purchased under reverse repos
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Year ended 31st March 2010: (` in crores) Particulars Minimum outstanding during the year 248.45 Maximum outstanding during the year 4,434.37 38.17 Daily Average outstanding during the year 1,430.49 14.94 As at 31st March 2010
Securities sold under repos i. ii. i. ii. 5. Government securities Corporate debt securities Government securities Corporate debt securities 1,562.37
Securities purchased under reverse repos
Disclosure in respect of Non-SLR investments: (i) Issuer composition of Non-SLR investments as at 31st March 2011: (` in crores) No. Issuer Amount Extent of Private Placement Extent of Below Investment Grade Securities (5) 93.25 109.33 202.58 Extent of Unrated Securities Extent of Unlisted Securities
(1) 1 2 3 4 5 6 7
(2) PSUs FIs Banks Private Corporates Subsidiaries, Associates and Joint Ventures Others Provision held towards depreciation Total
(3) 25.01 658.02 1,569.76 1,062.77 344.74 280.22 (17.43) 3,923.09
(4) 15.00 643.15 99.15 746.81 344.74 253.47 2,102.32
(6) 588.15 55.39 344.74 95.36 1,083.64
(7) 588.15 1,436.80 124.75 344.74 280.22 2,774.66
Issuer composition of Non-SLR Investments as at 31st March 2010: (` in crores) No. Issuer Amount Extent of Private Placement Extent of Below Investment Grade Securities (5) 64.70 108.86 173.56 Extent of Unrated Securities Extent of Unlisted Securities
(1) 1 2 3 4 5 6 7
(2) PSUs FIs Banks Private Corporates Subsidiaries, Associates and Joint Ventures Others Provision held towards depreciation Total
(3) 560.26 907.63 682.08 330.08 349.54 (6.85) 2,822.74
(4) 545.39 103.00 439.95 330.08 322.60 1,741.02
(6) 495.39 2.83 330.08 38.31 866.61
(7) 495.39 759.30 2.48 330.08 349.54 1,936.79
Above does not include Non SLR Government Securities ` 550.49 crores (Previous year ` 361.88 crores) which are included under Government Securities in the Schedule 8 Investments.
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(ii) Non-performing Non-SLR Investments: (` in crores) Particulars Opening balance Additions during the year since 1 April Reductions during the above period Closing balance Total provisions held 6. Derivatives: A. Forward Rate Agreements / Interest Rate Swaps: (` in crores) Particulars The notional principal of swap agreements Losses which would be incurred if counterparties failed to fulfill their obligations under the agreements Collateral required by the Bank upon entering into swaps Concentration of credit risk arising from the swaps The fair value of the swap book B. Exchange Traded Interest Rate Derivatives: (` in crores) Particulars Notional principal amount of exchange traded interest rate derivatives undertaken during the year (instrument wise) Interest Rate Futures entered with NSE_contract expiry date 18th Dec09 underlying being notional 10 Year 7% GOI Bonds Notional principal amount of exchange traded interest rate derivatives outstanding Notional principal amount of exchange traded interest rate derivatives outstanding and not highly effective (instrument wise) Mark to market value of exchange traded interest rate derivatives outstanding and not highly effective C. Disclosures on risk exposures in derivatives: Qualitative disclosures: a) Structure and organization for management of risk in derivatives trading: The management of risk in derivatives trading is carried out by the market risk department which is independent of the Treasury and directly reports into the Group HeadRisk of the Bank. The philosophy and framework for the derivative business is laid out in the Board approved Investment and Derivative policies. These policies are actioned upon by the ALCO. The ALCO sets various limits and reviews various exceptions to them. Apart from ALCO, the New Product Committee is responsible for approving any new derivative products. The Board approved Customer Appropriateness and Suitability Policy gives guidance to assess customers and the suitability of products offered to the customer. b) Scope and nature of risk measurement, risk reporting and risk monitoring systems: The risk department is responsible for measuring, monitoring and mitigating risk arising from Derivative transactions. Various risk metrics like volatility, interest rate sensitivity, price sensitivity, open position and counterparty exposure are monitored daily. The Risk Management function undertakes the following activities: monitors daily derivative operations against the set limits reviews daily profitability and activity reports for derivative operations at various levels reports MIS to the ALCO on a periodic basis as well as exception reporting Its grt 2b 25 31st March 2011 31st March 2010 31st March 2011 18,241.78 85.10 NA 99.72% (Banks) (6.92) 31st March 2010 28,500.27 563.53 NA 99.52% (Banks) (4.56)
st
31st March 2011 2.25 1.11 1.14 1.14
31st March 2010 2.27 0.02 2.25 2.18
NIL NA NA
0.08 NIL NA NA
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c) Policies for hedging and / or mitigating risk and strategies and processes for monitoring the continuing effectiveness of hedges / mitigants: The Bank enters into derivative transactions for trading and hedging purposes. The Balance Sheet Management Unit of the Bank obtains approvals from the ALCO for hedging depending on the market conditions and Balance Sheet positions. These hedges are monitored for its hedge effectiveness periodically having regard to the terms of the hedging instrument and the underlying hedged risk. d) Accounting policy for recording hedge and non-hedge transactions; recognition of income, premiums and discounts; valuation of outstanding contracts; provisioning, collateral and credit risk mitigation: Derivative transactions are segregated into trading or hedge transactions. Trading transactions outstanding as at the Balance Sheet dates are marked to market and the resulting profits or losses, are recorded in the Profit and Loss Account. Derivative transactions designated as Hedges are accounted on an accrual basis over the life of the transaction. Option premium paid / received is accounted for in the Profit and Loss Account on expiry of the option. Provisioning on derivative receivables is made in accordance with RBI guidelines. The derivative limit sanctioned to clients is part of the overall limit sanctioned post credit appraisal. Collateral is accepted on a case to case basis considering the volatility of the price of the collateral and any increase in operational, legal and liquidity risk. D. Quantitative Disclosures: (` in crores) Sr. Particulars No. 1 Derivatives (Notional Principal Amount) a) For hedging b) For trading 2 Marked to Market Positions ** a) Asset (+) b) Liability (-) 3 Credit Exposure 4 Likely impact of one percentage change in interest rate (100*PV01) # a) On hedging derivatives b) On trading derivatives 5 Maximum of 100*PV01 observed during the year # a) On hedging derivatives b) On trading derivatives 6 Minimum of 100*PV01 observed during the year # a) On hedging derivatives b) On trading derivatives Currency interest rate swaps have been included under currency derivatives. # Excludes PV01 on options. ** MTM has been considered at product level. The net position is shown under asset / liability, as the case is for each type of derivatives. The nature and terms of the Interest Rate Swaps (IRS) as on 31st March 2011 are set out below: (` in crores) Nature Hedging Trading Trading Trading Trading Trading Trading Trading Total No. 1 251 252 7 3 1 4 2 521 Notional Principal 22.30 8,825.00 8,937.00 175.00 75.00 20.00 118.18 69.30 18,241.78 Benchmark LIBOR MIBOR MIBOR MIFOR MIFOR INBMK LIBOR LIBOR Receive Receive Receive Receive Receive Receive Receive Receive Terms Floating vs. Pay Fixed Fixed vs. Pay Floating Floating vs. Pay Fixed Fixed vs. Pay Floating Floating vs. Pay Fixed Floating vs. Pay Fixed Floating vs. Pay Fixed Fixed vs. Pay Floating Currency Derivatives 8,558.12 200.68 8,357.44 15.79 14.18 338.78 1.60 0.31 10.49 1.22 0.89 0.14 Interest rate Derivatives 18,241.78 22.30 18,219.48 73.65 80.57 216.52 0.23 2.36 0.49 7.57 0.23 1.68
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The nature and terms of the Cross Currency Swaps (CCS) as on 31st March 2011 are set out below: (` in crores) Nature Hedging Hedging Trading Trading Total No. 5 2 2 1 10 Notional Principal 111.49 89.19 19.69 1.77 222.14 LIBOR LIBOR Benchmark LIBOR Terms Receive Floating vs. Pay Fixed Pay Fixed Receive Fixed vs. Pay Floating Receive Floating vs. Pay Fixed
The overnight Net open position as at 31st March 2011 is ` (24.21) crores (Previous year ` 32.16 crores) 7. Movements in Non Performing Advances (Funded): (` in crores) Sr. Particulars No. i. ii. iii. Net NPAs to Net Advances % Net NPAs to Net Advances % (excluding NPAs acquired from other Banks / FIs and NBFCs) Movement of NPAs (Gross) Gross NPAs as on 1st April (opening balance) Additions (Fresh NPAs) during the year Sub-total (A) Less: (i) Upgradations (ii) Recoveries (excluding recoveries made from upgraded accounts) (iii) Write-offs Sub-total (B) Gross NPAs as on 31st March (closing balance) (A-B) Movement of Net NPAs a. Opening balance b. Additions during the year c. Reductions during the year d. Closing balance Movement of provisions for NPAs (excluding provisions on standard assets) a. Opening balance b. Provisions made during the year c. Write-off / write-back of excess provisions d. Closing balance Year ended 31st March 2011 0.72% 0.50% 767.34 217.49 984.83 101.12 131.63 148.59 381.34 603.49 360.25 18.71 (167.80) 211.16 407.09 198.78 (213.54) 392.33 Year ended 31st March 2010 1.73% 1.25% 689.21 626.43 1,315.64 37.03 137.01 374.26 548.30 767.34 396.84 111.98 (148.57) 360.25 292.37 514.45 (399.73) 407.09
iv.
v.
8.
Gross NPA, Provisions for NPA and Net NPA above include the following in respect of non-performing assets acquired from other Banks / FIs and NBFCs: (` in crores) Particulars Gross NPA Provision for NPA Net NPA As at 31st March 2011 241.68 (176.57) 65.11 As at 31st March 2010 269.01 (166.00) 103.01
9.
The Provision Coverage Ratio (PCR) of the Bank after considering technical write-off is 70.14% as at 31st March 2011 (Previous year: 58.34%) Its grt 2b 25
141
10. Concentration of NPAs: (` in crores) Particulars Total Exposure to top four NPA accounts Above represents Gross NPA 11. Sector-wise NPAs: Sr. Sector No. Percentage of NPAs to Total Advances in that sector As at 31st March 2011 1 2 3 4 Agriculture & Allied activities Industry (Micro & Small, Medium and Large including corporate stressed assets purchased) Services Personal Loans including Credit Cards and retail stressed assets purchased 0.76% 4.28% 0.81% 5.04% As at 31st March 2010 1.49% 5.81% 1.96% 9.61% As at 31st March 2011 94.24 As at 31st March 2010 115.75
Above % represents Gross NPA to Gross Advances for respective sectors. The bank has compiled the data for the purpose of this disclosure from its internal MIS system and has been furnished by the management which has been relied upon by the auditors. 12. Details of Loan Assets subjected to Restructuring: (` in crores) Particulars of Accounts Restructured during the year 31st March 2011 31st March 2010 CDR SME Debt Others CDR SME Debt Mechanism Restructuring Mechanism Restructuring Standard advances restructured Sub standard advances restructured Doubtful advances restructured Total No. of Borrowers Amount outstanding Sacrifice (diminution in the fair value) No. of Borrowers Amount outstanding Sacrifice (diminution in the fair value) No. of Borrowers Amount outstanding Sacrifice (diminution in the fair value) No. of Borrowers Amount outstanding Sacrifice (diminution in the fair value) 1,215 10.44 0.15 1,033 7.31 0.05 2 4.50 0.21 2,250 22.25 0.41
Others 2,491 118.65 2.60 1,964 14.53 0.68 1 0.50 0.05 4,456 133.68 3.33
Note: The amount in above table represents loans outstanding at the time of restructuring. Outstanding Restructured loans (net of provisions) as at 31st March 2011 are ` 66.70 crores (Previous year ` 132.53 crores). Sacrifice amount represents provision made for diminution in fair value of the loan based on assessment at Balance Sheet date.
142
Its grt 2b 25
13. Overseas Assets, NPAs and Revenue: (` in crores) Particulars Total Assets Total NPAs Total Revenue Above does not include assets of overseas representative office. 14. Details of non-performing financial assets purchased: (` in crores) Particulars (a) (b) Number of accounts purchased during the year* Aggregate outstanding in the Banks books** As at 31st March 2011 7 242.81 As at 31st March 2010 3 280.84 31st March 2011 NIL NIL NIL 31st March 2010 NIL NIL NIL
* Retail assets portfolio purchased by the Bank has been considered as single portfolio. ** Represents outstanding balance of total non-performing financial assets purchased by the Bank at the Balance Sheet date. None of the non-performing financial assets purchased have been restructured during the year (Previous year Nil). There were no non-performing financial assets sold by the Bank during the current year. (Previous year Nil). The Bank has not sold any financial asset to Securitisation or Reconstruction Company for asset reconstruction (Previous year Nil). 15. There are no unsecured loans for which intangible security such as charge over the rights, licenses, authority, etc are accepted as collateral by the bank. 16. Provisions on Standard Assets: (` in crores) Particulars Provisions towards Standard Assets 17. Business Ratios / Information: Particulars Interest income as a percentage of working funds Non interest income as a percentage of working funds Operating profit as a percentage of working funds Return on assets (average) Business (deposit plus advance) per employee (` in crores) Profit per employee (` in crores) Definitions: (A) Working funds is the monthly average of total assets as reported to the RBI under Section 27 of the Banking Regulation Act, 1949. (B) Operating profit = (Interest Income + Other Income Interest expenses Operating expenses). (C) Business is monthly average of net advances and deposits as reported to the RBI under section 27 of the Banking Regulation Act, 1949. Inter bank deposits are excluded for the purposes of computation of this ratio. (D) Productivity ratios are based on average number of employees. Year ended 31st March 2011 9.31% 1.37% 2.86% 1.77% 5.35 0.08 Year ended 31st March 2010 9.96% 1.92% 3.97% 1.72% 4.87 0.07 Year ended 31st March 2011 152.32 Year ended 31st March 2010 152.32
Its grt 2b 25
143
18. Maturity pattern of certain items of assets and liabilities: As at 31st March 2011:
(` in crores) Day 1 2 to 7 days 8 to 14 days 15 to 28 days 29 days to 3 months Over 3 months & upto 6 months 2,008.35 1,065.47 2,924.21 1,006.15 92.48 617.88 Over 6 months & upto 12 months 3,219.12 2,231.55 5,279.38 1,264.86 1.03 749.69 Over 1 year & upto 3 years 11,345.50 3,305.29 10,508.14 1,238.50 1.39 280.08 Over 3 years & upto 5 years 2,865.76 361.96 347.93 514.02 0.90 0.55 Over 5 years Total
Advances* Investments Deposits Borrowings Foreign Currency Assets Foreign Currency Liabilities
224.08 5,111.38 418.73 47.83 61.24 44.89
589.82 945.57 2,021.52 5,337.35 185.82 34.88
785.20 394.97 1,567.88 300.00 19.90 35.31
809.85 1,488.42 1,548.58 219.60 43.97 45.88
2,630.89 1,256.74 4,565.30 1,233.27 211.77 723.78
4,835.61 960.09 79.30 562.37 0.24 200.75
29,314.18 17,121.44 29,260.97 11,723.95 618.74 2,733.69
* Advances shown above are net of the Advance EMI received amounting to ` 15.13 crores. In computing the above information, certain estimates and assumptions have been made by the Management which have been relied upon by the auditors.
As at 31st March 2010:

(` in crores) Day 1 2 to 7 days 8 to 14 days 15 to 28 days 29 days to 3 months Over 3 months & upto 6 months 2,028.41 967.73 3,917.01 905.98 104.91 140.44 Over 6 months & upto 12 months 2,692.61 1,027.76 3,521.20 555.25 4.05 51.12 Over 1 year & upto 3 years 7,132.65 3,228.04 7,294.84 979.95 222.29 Over 3 years & upto 5 years 1,930.70 195.47 149.34 365.01 0.26 Over 5 years Total
Advances* Investments Deposits Borrowings Foreign Currency Assets Foreign Currency Liabilities
291.63 4,820.32 442.82 16.72 16.24 17.28
326.28 (527.79) 1,668.15 2,000.67 93.45 58.10
286.55 281.77 1,719.14 3.85 66.81
702.85 329.52 1,008.35 100.00 38.73 0.87
2,254.58 1,184.16 4,098.82 546.00 94.12 6.27
3,107.99 1,005.68 66.80 670.93 16.16 202.88
20,754.25 12,512.66 23,886.47 6,140.51 371.51 766.32
* Advances shown above are net of the Advance EMI received amounting to ` 20.80 crores.
19. Lending to sensitive sectors: (a) Real Estate Sector*: Particulars a) Direct exposure i. Residential Mortgages: Lending fully secured by mortgages on residential property that is or will be occupied by the borrower or that is rented; (Includes Individual housing loans eligible for inclusion in priority sector advances as at 31st March 2011 ` 516.99 crores and as at 31st March 2010 ` 494.26 crores) Commercial Real Estate: Lending secured by mortgages on commercial real estates (office buildings, retail space,multi-purpose commercial premises, multi-family residential buildings, multi-tenanted commercial premises, industrial or warehouse space, hotels, land acquisition, development and construction, etc.). Exposure also includes non-fund based (NFB) limits Investments in Mortgage Backed Securities (MBS) and other securitised exposures: - Residential - Commercial Real Estate As at 31st March 2011 8,832.04 (` in crores) As at 31st March 2010 5,646.94
4,558.17
3,318.03
ii.
4,273.87 156.06 156.06 8,988.10
2,328.91 127.34 127.34 5,774.28
iii
b)
Indirect Exposure
Fund based and non-fund based exposures on National Housing Bank (NHB) and Housing Finance Companies (HFCs). Total Exposure to Real Estate Sector * On limit basis or outstanding basis whichever is higher
144
Its grt 2b 25
(b) Sr. No. i. Exposure to Capital Market*: (` in crores) Particulars Direct investment in equity shares, convertible bonds, convertible debentures and units of equity-oriented mutual funds the corpus of which is not exclusively invested in corporate debt; Advances against shares / bonds / debentures or other securities or on clean basis to individuals for investment in shares (including IPOs / ESOPs), convertible bonds, convertible debentures, and units of equity-oriented mutual funds; Advances for any other purposes where shares or convertible bonds or convertible debentures or units of equity oriented mutual funds are taken as primary security; Advances for any other purposes to the extent secured by the collateral security of shares or convertible bonds or convertible debentures or units of equity oriented mutual funds i.e. where the primary security other than shares / convertible bonds / convertible debentures / units of equity oriented mutual funds does not fully cover the advances; Secured and unsecured advances to stockbrokers and guarantees issued on behalf of stockbrokers and market makers; Loans sanctioned to corporates against the security of shares / bonds / debentures or other securities or on clean basis for meeting promoters contribution to the equity of new companies in anticipation of raising resources; Bridge loans to companies against expected equity flows / issues; Underwriting commitments taken up by the banks in respect of primary issue of shares or convertible bonds or convertible debentures or units of equity oriented mutual funds; Financing to stockbrokers for margin trading; All exposures to Venture Capital Funds (both registered and unregistered) Others (Financial Guarantees) As at 31st March 2011 As at 31st March 2010
85.37
18.51
ii.
6.85
1.07
iii.
iv.
2.49 846.34
7.74 599.32
v. vi.
vii. viii.
21.86 50.00 1,012.91
23.55 26.40 676.59
ix. x. xi.
Total Exposure to Capital Market * On limit basis or outstanding basis whichever is higher (c) Risk category wise country exposure:
As per extant RBI guidelines, the country exposure of the Bank is categorised into various risk categories listed in following table. Since the country exposure (net) of the Bank in respect of any country does not exceed 1% of the total funded assets, no provision is required to be maintained on country exposure as on 31st March 2011. (Nil Provision for the year ended 31st March 2010) (` in crores) Risk Category Insignificant Low Total 20. Concentration of Deposits: (` in crores) As at 31st March 2011 Total Deposits of twenty largest depositors Percentage of Deposits of twenty largest depositors to Total Deposits of the bank 8,282.31 28.30% As at 31st March 2010 8,415.87 35.23% Its grt 2b 25 Exposure (net) as at 31st March 2011 63.67 179.03 242.70 Provision held as at 31st March 2011 Exposure (net) as at 31st March 2010 57.19 45.32 102.51 Provision held as at 31st March 2010
145
21. Concentration of Advances*: (` in crores) As at 31st March 2011 Total Advances to twenty largest borrowers Percentage of Advances to twenty largest borrowers to Total Advances of the bank 7,438.49 13.50% As at 31st March 2010 5,516.80 13.41%
*Advances represents Credit Exposure including derivatives furnished in Master Circular on Exposure Norms DBOD.No.Dir.BC.14/ 13.03.00/2010-11 dated 1st July 2010 The bank has compiled the data for the purpose of this disclosure from its internal MIS system and has been furnished by the management which has been relied upon by the auditors. 22. Concentration of Exposures*: (` in crores) As at 31st March 2011 Total Exposure to twenty largest borrowers / customers Percentage of Exposures to twenty largest borrowers / customers to Total Exposure of the bank on borrowers / customers 7,676.66 13.46% As at 31st March 2010 5,806.66 13.76%
*Exposures represents credit, derivatives and investment exposure as prescribed in Master Circular on Exposure Norms DBOD.No.Dir.BC.14/13.03.00/2010-11 dated 1st July 2010 The bank has compiled the data for the purpose of this disclosure from its internal MIS system and has been furnished by the management which has been relied upon by the auditors. 23. During the year ended 31st March 2011 the bank had exceeded the Single Borrower Limit (SBL) with the approval of the Board in case of following borrowers: (` in crores) Name of Party Bharti Airtel Ltd** Larsen & Toubro Ltd*** Total Exposure 1,050.00 800.00 % of Capital Funds 21.84* 16.64*
* Based on capital funds before issuance of additional capital in August 2010. After considering additional capital funds of ` 1,366.12 crores above exposures are within limits specified by RBI. ** Infrastructure lending within overall limit of 25% of capital funds with approval of Board. *** Continuing from last year. For the year ended 31st March 2010 the Bank had exceeded the Single Borrower Limit with the approval of the Board in case of following borrower: (` in crores) Name of Party Larsen & Toubro Ltd Total Exposure 800.00 % of Capital Funds 18.94%
The above exposure was within the ceiling of 20% of the Capital Funds, with the approval of the Board, in terms of the RBI guidelines. During the year ended 31st March 2011 and year ended 31st March 2010 the Bank has not exceeded the prudential exposure limits as laid down by RBI guidelines for the Group Borrower Limit (GBL). 24. Provision made for taxes during the year: (` in crores) 31st March 2011 Current tax* Deferred tax Wealth Tax Total * Net of excess provision for tax of earlier years written back ` Nil (Previous year ` 18.86 crores) 360.91 8.59 0.02 369.52 31st March 2010 281.39 (31.41) 0.02 250.00
146
Its grt 2b 25
25. RBI has imposed a penalty of ` 0.15 crores vide letter dated 26th April 2011 in respect of foreign exchange derivative transactions done by the bank with certain corporates during the period 2007-08. 26. There are no Off-Balance Sheet SPVs sponsored (which are required to be consolidated as per accounting norms). 27. Bancassurance Business: (` in crores) Sr. Nature of Income No. 1. 2. 3. 4. For selling life insurance policies For selling non life insurance policies For selling mutual fund products Others For the year ended 31st March 2011 22.58 0.47 50.46 For the year ended 31st March 2010 30.05 2.04 41.74
28. Floating Provisions: (` in crores) Particulars (a) (b) (c) (d) Opening balance in the floating provisions account The quantum of floating provisions made in the accounting year Amount of draw down made during the accounting year Closing Balance in floating provisions account 31st March 2011 NIL NIL NIL NIL 31st March 2010 NIL NIL NIL NIL
29. Draw Down from Reserves: In accordance with the RBI requirement on creation and utilisation of Investment reserve in respect of HFT and AFS investments, reserve of ` 26.83 crores (net of taxes & applicable transfer to statutory reserves) has been utilised. 30. a) Status of Shareholder Complaints: Particulars (a) (b) (c) (d) No. of complaints pending at the beginning of the year No. of complaints received during the year No. of complaints redressed during the year No. of complaints pending at the end of the year 31st March 2011 NIL 47 45 2* 31st March 2010 NIL 79 79 NIL
* The two pending complaints have been resolved on 14th April 2011 and 19th April 2011 respectively. b) Status of Customer Complaints: Particulars (a) (b) (c) (d) c) No. of complaints pending at the beginning of the year No. of complaints received during the year No. of complaints redressed during the year No. of complaints pending at the end of the year Status of Awards passed by the Banking Ombudsman: Particulars (a) (b) (c) (d) No. of unimplemented Awards at the beginning of the year No. of Awards passed by the Banking Ombudsman during the year No. of Awards implemented during the year No. of unimplemented Awards at the end of the year 31st March 2011 NIL NIL NIL NIL 31st March 2010 NIL 1* 1* NIL 31st March 2011 93 2,409 2,472 30 31st March 2010 356 9,330 9,593 93
*The award represents payment to a customer which is to be recovered from another bank due to their deficiency in resolving one disputed ATM transaction. The above details are as furnished by the Management and relied upon by the auditors. Its grt 2b 25
147
31. Bank has not issued any letters of comfort during the year. There were no outstanding letters of comfort during the year end (Previous year Nil). B. OTHER DISCLOSURES: 1. Pursuant to the approval of the shareholders at the Annual General Meeting held on 21st July 2010, each equity share of the Bank having face value of ` 10 fully paid up was sub-divided into two equity shares of the face value of ` 5 each fully paid up as at 14th September 2010. In August 2010, the Bank allotted 1,64,00,000 equity shares of ` 10 each at a premium ` 823 per equity share for a total consideration of ` 1,366.12 crores on a preferential basis to Sumitomo Mitsui Banking Corporation. The net issue expenses of ` 0.58 crores related to the aforesaid issue have been charged to the securities premium account as allowed under section 78 of the Companies Act, 1956. The above expenses include ` 0.08 crores paid to the auditors in connection with the issue. Till 31st March 2010, the Bank used to account for market repurchase and reverse repurchase transactions in government securities and corporate debt securities, if any, as sale and repurchase transactions. However, as per RBI circular no. RBI/20092010/356 IDMD/ 4135/11.08.43/2009-10 dated 23rd March 2010; the Bank has started accounting for such transactions as borrowing and lending transactions, effective 1st April 2010. If the Bank had continued to account the reverse and reverse repurchase transactions as sale and repurchase at 31st March 2011, the investments would have been lower by ` 561.89 crores and the Balances with Banks and Money at call and short notice and Borrowings would have been lower by ` 51.07 crores and ` 612.96 crores respectively. Earnings per Equity Share: Particulars* Reconciliation between weighted shares used in the computation of basic and diluted earnings per share: Weighted average number of equity shares used in computation of basic earnings per share Effect of potential equity shares for stock options outstanding Weighted average number of equity shares used in computation of diluted earnings per share Following is the reconciliation between basic and diluted earnings per share: Nominal value per share Basic earnings per share Effect of potential equity shares for stock options Diluted earnings per share Earnings used in the computation of basic and diluted earnings per share (` in crores) 5.00 11.35 0.07 11.28 818.18 5.00 8.09 0.09 8.00 561.11 72,10,33,537 43,68,154 72,54,01,691 69,37,75,204 74,00,562 70,11,75,766 Year ended 31st March 2011 Year ended 31st March 2010
2.
3.
4.
*The number of shares have been adjusted for split of equity shares from ` 10 paid up to ` 5 paid up per share in accordance with Accounting Standard (AS) 20, Earnings Per Share. The effect of the share split has been considered in computing earnings per share for the previous period. 5. Segment Reporting: The Summary of the operating segments of the Bank for the year ended 31st March 2011 are as given below. (` in crores) 31st March 2011 1. Segment Revenue a. b. c. Treasury and BMU Corporate / Wholesale Banking Retail Banking: (i) (ii) (iii) d. Lending Branch Banking Credit cards Sub-total Other Banking business Sub-total 2,073.84 987.29 51.74 3,112.87 6,180.60 1,742.30 755.36 60.38 2,558.04 4,840.66 1,463.86 1,603.87 1,126.23 1,156.39 31st March 2010
148
Its grt 2b 25
(` in crores) 31st March, 2011 Less: Inter-segmental revenue Add: Unallocated Income Total 2. Segment Results a. b. c. Treasury and BMU Corporate / Wholesale Banking Retail Banking: (i) (ii) (iii) d. Lending Branch Banking Credit cards Sub-total Other Banking business Sub-total Add: Unallocated Income Total Profit Before Tax Provision for Tax Total Profit After Tax 3. Segment Assets a. b. c. Treasury and BMU Corporate / Wholesale Banking Retail Banking: (i) (ii) (iii) d. Lending Branch Banking Credit cards Sub-total Other Banking business Sub-total Less: Inter-segmental Assets Total Add: Unallocated Assets Total Assets as per Balance Sheet 4. Segment Liabilities a. b. c. Treasury and BMU Corporate / Wholesale Banking Retail Banking: (i) (ii) (iii) d. Lending Branch Banking Credit cards Sub-total Other Banking business Sub-total Less: Inter-segmental Liabilities Total 14,517.83 15,655.54 23.98 30,197.35 58,888.60 14,912.53 43,976.07 11,392.90 11,902.96 22.61 23,318.47 46,161.13 13,294.32 32,866.81 Its grt 2b 25 17,605.14 11,086.11 13,053.13 9,789.53 17,481.22 15,567.29 141.10 33,189.61 65,560.36 14,912.53 50,647.83 202.84 50,850.67 13,074.55 11,713.92 197.81 24,986.28 50,505.50 13,294.32 37,211.18 225.14 37,436.32 19,501.33 12,869.42 14,587.47 10,931.75 664.98 (263.25) (63.01) 338.72 1,187.44 0.26 1,187.70 369.52 818.18 377.51 (189.05) (127.40) 61.06 813.98 (2.87) 811.11 250.00 561.11 304.83 543.89 367.46 385.46 1,244.26 0.26 4,936.60 31st March, 2010 956.88 0.09 3,883.87
149
(` in crores) 31st March, 2011 Add: Unallocated liabilities Add: Share Capital & Reserves & surplus Total Liabilities as per Balance Sheet 5. Capital Expenditure a. b. c. Treasury and BMU Corporate / Wholesale Banking Retail Banking: (i) (ii) (iii) d. 6. Lending Branch Banking Credit cards Sub-total Other Banking business Total Depreciation a. b. c. Treasury and BMU Corporate / Wholesale Banking Retail Banking: (i) (ii) (iii) d. Lending Branch Banking Credit cards Sub-total Other Banking business Total 6.95 40.53 3.83 51.31 98.27 7.61 35.31 4.75 47.67 90.00 42.94 4.02 37.60 4.73 8.47 59.05 0.59 68.11 99.24 3.65 29.39 1.91 34.95 309.59 27.39 3.74 272.01 2.63 78.13 6,796.47 50,850.67 31st March, 2010 84.39 4,485.12 37,436.32
Segmental Information is provided as per the MIS available for internal reporting purposes, which includes certain estimates and assumptions. The methodology adopted in compiling and reporting the above information has been relied upon by the auditors. 6. Lease Disclosures: a. The Bank has taken various premises and equipment under operating lease. The lease payments recognised in the Profit and Loss Account are ` 115.73 crores (previous year ` 115.75 crores). The sub-lease income recognised in the Profit and Loss Account is ` 5.97 crores (previous year ` 5.33 crores). The future minimum lease payments under non cancellable operating lease not later than one year is ` 111.59 crores (previous year ` 89.05 crores), later than one year but not later than five years is ` 356.45 crores (previous year ` 278.28 crores) and later than five years ` 138.00 crores (previous year ` 104.64 crores). The lease terms include renewal option after expiry of primary lease period. There are no restrictions imposed by lease arrangements. There are escalation clauses in the lease agreements. 7. Deferred Taxes: Others in Other Assets (Schedule 11 (VI)) includes deferred tax asset (net) of ` 199.63 crores (previous year ` 208.22 crores). The components of the same are as follows: (` in crores) Particulars Provision for NPA and general provision on standard assets Expenditure allowed on payment basis Depreciation Net Deferred Tax Asset Year ended 31st March 2011 173.26 23.19 3.18 199.63 Year ended 31st March 2010 189.99 15.94 2.29 208.22
b.
150
Its grt 2b 25
8. Fixed Assets as per Schedule 10 include intangible assets relating to software and system development expenditure which are as follows: (` in crores) Particulars Gross Block At cost on 31st March of the preceding year Additions during the year Deductions during the year Total Depreciation As at 31st March of the preceding year Charge for the year Deductions during the year Depreciation to date Net Block 9. Related Party Disclosures: A. Parties where control exists: Nature of relationship Individual having control over the enterprise Subsidiary Companies Related Party Uday S. Kotak along with relatives and enterprises in which he has beneficial interest holds 45.56% of the equity share capital of Kotak Mahindra Bank Limited as on 31st March 2011 Kotak Mahindra Prime Limited Kotak Securities Limited Kotak Mahindra Capital Company Limited Kotak Mahindra Old Mutual Life Insurance Limited Kotak Mahindra Investments Limited Kotak Mahindra Asset Management Company Limited Kotak Mahindra Trustee Company Limited Kotak Mahindra (International) Limited Kotak Mahindra (UK) Limited Kotak Mahindra Inc. Global Investment Opportunities Fund Limited Kotak Investment Advisors Limited Kotak Mahindra Trusteeship Services Limited Kotak Forex Brokerage Limited Kotak Mahindra Pension Fund Limited Kotak Mahindra Financial Services Limited B. Other Related Parties: Nature of Relationship Associates Related Party Business Standard Limited (till 16th June 2009) ACE Derivatives and Commodity Exchange Ltd. (Formerly known as Ahmedabad Commodity Exchange Limited) Kotak Mahindra Asset Reconstruction Company Limited (till 18th March 2011) Its grt 2b 25 52.56 17.82 70.38 23.47 36.94 15.66 0.04 52.56 28.84 81.40 12.45 93.85 59.34 22.06 81.40 Year ended 31st March 2011 Year ended 31st March 2010
151
B. Other Related Parties: (Contd.) Nature of Relationship Related Party Infina Finance Private Limited Matrix Business Services India Private Limited Phoenix ARC Private Limited Regency Hospitals Limited (till 30th March 2010) Mr. Uday S. Kotak, Executive Vice Chairman and Managing Director Mr. C Jayaram, Executive Director Mr. Dipak Gupta, Executive Director Aero Agencies Limited Kotak & Company Limited Komaf Financial Services Limited Asian Machinery & Equipment Pvt. Ltd. Insurekot Investments Pvt. Ltd. Kotak Trustee Company Pvt. Ltd. Cumulus Trading Company Pvt. Ltd. Palko Properties Private Limited Kotak Chemicals Limited Kotak Ginning & Pressing Industries Limited Kotak Commodity Services Limited Harisiddha Trading and Finance Private Limited Ms. Mr. Ms. Mr. Mr. Ms. Ms. Ms. Ms. Pallavi Kotak Suresh Kotak Indira Kotak Jay Kotak Dhawal Kotak Aarti Chandaria Anita Gupta Urmila Gupta Usha Jayaram (` in crores) Items / Related Party Individual having Control Subsidiary Associates Key Companies Management Personnel Enterprise over which Relative of Key Management Personnel have control / significant influence Relatives of Key Management Personnel Total
Key Management Personnel*
Enterprise over which Key Management Personnel have significant Influence*
Relatives of Key Management Personnel*
Liabilities Deposits Interest Payable Other Liabilities Assets Advances InvestmentsGross Diminution on Investments () 515.90 (515.54) () 29.98 (15.69) (0.02) () () () () 545.88 (531.23) (0.02) 1,947.99 (2,067.29) 78.05 (98.41) 8.13 (3.35) 364.87 (514.71) 4.87 (7.53) () 13.50 (4.14) 0.31 (0.16) 91.95 (8.80) 2.31 (0.56) 0.74 (0.52) 0.02 (0.01) 2,419.05 (2,595.46) 85.56 (106.67) 8.13 (3.35)
152
Its grt 2b 25
(` in crores) Items / Related Party Individual having Control Subsidiary Associates Key Companies Management Personnel Enterprise over which Relative of Key Management Personnel have control / significant influence Relatives of Key Management Personnel Total
Commission Receivable Others Expenses Salaries / fees (Include ESOP) Interest Paid Others Income Dividend Interest Received Others Other Transactions Sale of Investment Purchase of Investment Purchase of Loan Loan Disbursed Loan repaid Repo-Borrowings Repo-Paid Dividend paid Reimbursement to companies Reimbursement from companies Purchase of Fixed assets Sale of Fixed assets
2.63 (4.54) 9.11 (9.42)
0.01 (0.30) 7.35 (6.69)
2.63 (4.54) 9.12 (9.72) 7.35 (6.69) 4.54 (1.35) 2.26 (6.30) 0.04 (0.03) 189.66 (176.08) 4.50 (7.59) 29.72 (11.88)
142.08 (142.65) 1.06 (0.75) 29.72 (11.88) 16.34 (19.06) 69.93 (60.56) 810.56 (329.50) 219.99 (577.78) 30.07 (39.45) (50.00) (225.00) 5,851.01 (33.91) 5,852.16 (33.91)
41.40 (31.70) 1.18 (0.54)
1.60 (0.35)
() 0.80 ()
()
() () (29.28) 6.05 ()
()
16.34 (19.06) 70.73 (60.56) 810.56 (358.78) 226.04 (577.78) 30.07 (39.45) (50.00) (225.00) 5,851.01 (33.91) 5,852.16 (33.91)
14.21 (12.53) 7.35 (6.78) 81.58 (68.56) 0.40 (0.24) 0.25 (0.29) (0.02) 2.93 (0.36)
0.09 (0.08)
14.30 (12.61) 7.35 (6.80) 84.51 (68.92) 0.40 (0.24) 0.25 (0.29)
Its grt 2b 25
153
I. Liabilities: Other liabilities Other Payable Kotak Mahindra Prime Limited Kotak Mahindra Capital Company Kotak Mahindra (International) Limited Other Subsidiaries 0.04 () 0.07 (1.03) 7.95 (2.29) 0.07 (0.03) 0.04 () 0.07 (1.03 ) 7.95 (2.29 ) 0.07 (0.03 )
II. Assets: Investments Kotak Mahindra Old Mutual Life Insurance Limited Kotak Mahindra Prime Ltd Other Subsidiaries ACE Derivatives and Commodity Exchange Ltd Kotak Mahindra Asset Reconstruction Company Limited Diminution on Investments Kotak Mahindra Asset Reconstruction Company Limited Commission Receivable Kotak Mahindra Old Mutual Life Insurance Limited Others Kotak Mahindra Prime Limited Kotak Securities Limited Other Subsidiaries / Associates 4.46 (4.89) 2.59 (3.06) 2.06 (1.47) 0.01 (0.30) 4.46 (4.89) 2.59 (3.06) 2.07 (1.77) 2.63 (4.54) 2.63 (4.54) (0.02) (0.02) 260.25 (260.25) 202.92 (202.92) 52.73 (52.37) 29.98 (15.67) (0.02) 260.25 (260.25) 202.92 (202.92) 52.73 (52.37) 29.98 (15.67) (0.02)
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III. Expenses: Salaries / fees (Include ESOP) Mr. Uday Kotak Mr. C Jayaram Mr. Dipak Gupta Other Expenses Brokerage Kotak Securities Limited Premium Kotak Mahindra Old Mutual Life Insurance Limited Other Expenses Aero Agencies Limited Kotak & Company Limited Other subsidiaries / Associates IV. Income: Dividend Kotak Mahindra Asset Management Company Limited Kotak Mahindra Trustee Co Ltd Other Income Insurance Commission and Rental Income Kotak Mahindra Old Mutual Life Insurance Limited Rental and other Income Kotak Securities Limited Kotak Mahindra Capital Company Limited 11.95 (9.74) 4.84 (3.84) 11.95 (9.74) 4.84 (3.84) 28.65 (34.77) 28.65 (34.77) 27.72 (11.88) 2.00 () 27.72 (11.88) 2.00 () 1.18 (0.54) 1.81 (5.89) 0.45 (0.41) 1.81 (5.89) 0.45 (0.41) 1.18 (0.54) 0.41 (0.44) 0.41 (0.44) 0.65 (0.31) 0.65 (0.31) 1.78 (1.13) 2.73 (2.75) 2.84 (2.81) 1.78 (1.13) 2.73 (2.75) 2.84 (2.81)
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Kotak Mahindra Asset Management Company Limited Kotak Mahindra Prime Limited Other Subsidiaries / entities V. Other Transactions: Sale of Investment Kotak Mahindra Old Mutual Life Insurance Ltd. Kotak Mahindra Prime Limited Komaf Financial Services Limited Purchase of Investments Kotak Mahindra Old Mutual Life Insurance Ltd. Kotak Mahindra Prime Limited Kotak Securities Limited Kotak Forex Brokerage Limited Other Subsidiaries Komaf Financial Services Limited Purchase of Loan Kotak Mahindra Prime Limited Loan Disbursed Kotak Mahindra Prime Limited Loan Repaid Kotak Mahindra Prime Limited Repo Borrowings Kotak Mahindra Old Mutual Life Insurance Ltd.
3.25 (3.21) 12.24 (5.22) 9.00 (3.78)
3.25 (3.21) 12.24 (5.22) 9.00 (3.78)
810.56 (240.50) (89.00) (29.28)
810.56 (240.50) (89.00) (29.28)
172.41 (132.54) 42.06 (211.56) 5.16 (167.75) 0.36 () (65.93) 6.05 () 30.07 (39.45) (50.00) (225.00) 5,851.01 (33.91)
172.41 (132.54) 42.06 (211.56) 5.16 (167.75) 0.36 () (65.93) 6.05 () 30.07 (39.45) (50.00) (225.00) 5,851.01 (33.91)
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Repo Paid Kotak Mahindra Old Mutual Life Insurance Ltd. Dividend paid Mr. Uday Kotak Mr. C. Jayaram Mr. Dipak Gupta Ms. Pallavi Kotak Ms. Indira Kotak Others Reimbursements to companies Kotak Mahindra Capital Company Limited Kotak Mahindra Prime Limited Kotak Mahindra Old Mutual Life Insurance Limited Kotak Securities Limited Kotak Mahindra Investments Limited Other Subsidiaries / Associates Reimbursements from companies Kotak Mahindra Capital Company Limited Kotak Mahindra Prime Limited Kotak Mahindra Old Mutual Life Insurance Limited 4.68 (4.93) 9.49 (6.54) 10.27 (6.12) 4.68 (4.93) 9.49 (6.54) 10.27 (6.12) 1.20 (1.12) 4.45 (4.14) 0.48 (0.48) 1.17 (0.83) (0.10) 0.05 (0.11) (0.02) 1.20 (1.12) 4.45 (4.14) 0.48 (0.48) 1.17 (0.83) (0.10) 0.05 (0.13) 14.16 (12.49) 0.03 (0.02) 0.02 (0.02) 0.02 (0.02) 0.05 (0.05) 0.01 (0.01) 14.16 (12.49) 0.03 (0.02) 0.02 (0.02) 0.02 (0.02) 0.05 (0.05) 0.01 (0.01) 5,852.16 (33.91) 5,852.16 (33.91)
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Kotak Securities Limited Other Subsidiaries / Associates Purchase of Fixed assets Kotak Mahindra Prime Limited Kotak Securities Limited Kotak Mahindra Capital Company Limited Kotak Mahindra International Limited Other Subsidiaries Sale of Fixed assets Kotak Mahindra Capital Company Limited Kotak Investment Advisors Limited Kotak Mahindra Old Mutual Life Insurance Limited Kotak Securities Limited Kotak Mahindra Prime Ltd Note:
44.81 (41.93) 12.33 (9.04) 2.93 (0.36)
44.81 (41.93) 15.26 (9.40)
0.02 (0.04) 0.30 (0.06) (0.11) 0.02 (0.02) 0.06 (0.01)
0.02 (0.04) 0.30 (0.06) (0.11) 0.02 (0.02) 0.06 (0.01)
(0.06) (0.12) 0.20 () 0.03 (0.11) 0.02 ()
(0.06) (0.12) 0.20 () 0.03 (0.11) 0.02 ()
1. Figures in brackets represent previous years figures. 2. The above does not include any transactions in relation to listed securities done on recognised stock exchange during the year. However above includes transactions done on NDS with known related parties. 3. # in the above table denotes amount less than ` 50,000. 4. * List of related parties identified by management and relied upon by the auditors.
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Maximum Balance outstanding during the year (` in crores) Items / Related Party Individual having Control Subsidiary Companies Associates Key Management Personnel Enterprise over which Relative of Key Management Personnel have control / significant influence 26.79 (75.76) Relatives of Key Management Personnel
Liabilities Deposits Other Liabilities Assets Advances Investments-Gross Diminution on Investments Commission Receivable Others 9.88 (4.38) 31.85 (20.40) 0.87 (0.32) (225.00) 515.92 (515.54) () 29.98 (15.68) (0.02) 3,635.88 (5,118.09) 1.54 (0.83) 3,259.23 (3,303.65) 0.01 () 64.69 (18.93) 0.81 (0.81)
10. ESOPs: At the General Meetings of the holding company, Kotak Mahindra Bank Limited, the shareholders of the Bank had unanimously passed Special Resolution on 28th July 2000, 26th July 2004, 26th July 2005, 5th July 2007 and 21st August 2007, to grant options to the eligible Employees of the Bank and its subsidiaries companies. Pursuant to these resolutions, the following four Employees Stock Option Schemes had been formulated and adopted: a) b) c) d) Kotak Kotak Kotak Kotak Mahindra Mahindra Mahindra Mahindra Equity Equity Equity Equity Option Option Option Option Scheme Scheme Scheme Scheme 2001-02 2002-03 2005 2007
Consequent to the above, the Bank has granted stock options to the employees of the Bank and its subsidiaries. The Bank under its various plan / schemes, has granted in aggregate 5,40,24,680 options as on 31st March 2011 (Previous year 4,92,75,440). Stock appreciation rights The Bank has also granted stock appreciation rights (SARs) to select employees which can be settled in cash. These options will vest on the respective due dates in a graded manner as per the terms and conditions of grant. The contractual life of the SARs range from 0.72 to 4.36 years. Detail of activity under SARs is summarized below: Particulars Outstanding at the beginning of the year Granted during the year Additions due to transfer of employees Settled during the year Forfeited during the year Outstanding at the end of the year Year ended 31st March 2011 2,65,300 2,84,438 44,150 1,32,670 15,220 4,45,998 Year ended 31st March 2010 2,65,300 2,65,300
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Equity-settled options The Bank has granted options to its employees vide various employee stock option schemes. During the year ended 31st March 2011, the following schemes were in operation: Plan 2005 Date of grant Date of Board Approval Date of Shareholders approval Various Dates Various Dates 26th July 2005 as amended on 5th July 2007 1,09,73,200 Equity 1 4.13 years 0.42 0.92 years Graded / Cliff vesting Plan 2007 Various Dates Various Dates 5th July 2007 as amended on 21st August 2007 2,41,34,480 Equity 1 4.31 years 0.17 1.01 years Graded / Cliff vesting
Number of options granted Method of Settlement (Cash / Equity) Vesting Period Exercise Period Vesting Conditions The details of activity under Plan 2005 have been summarized below:
Year ended 31st March 2011 Number of Shares Weighted Average Exercise Price (`) 164.36 162.84 165.71 75.00
Year ended 31st March 2010 Number of Shares Weighted Average Exercise Price (`) 147.86 157.93 91.76 75.00 164.36 86.17 0.72
Outstanding at the beginning of the year Granted during the year Forfeited during the year Exercised during the year Expired during the year Outstanding at the end of the year Out of the above exercisable at the end of the year Weighted average remaining contractual life (in years) Weighted average fair value of options granted
49,88,600 2,81,200 46,42,120 65,280
67,59,340 3,26,500 14,39,500 4,740 49,88,600 3,53,600
The details of activity under Plan 2007 have been summarized below: Year ended 31st March 2011 Number of Shares Weighted Average Exercise Price (`) 236.42 308.63 282.17 175.78 463.92 271.88 235.82 1.82 206.73 Year ended 31st March 2010 Number of Shares Weighted Average Exercise Price (`) 224.54 198.59 238.89 173.04 326.68 236.42 147.14 1.98 260.04
Outstanding at the beginning of the year Granted during the year* Forfeited during the year Exercised during the year Expired during the year Outstanding at the end of the year* Out of the above exercisable at the end of the year Weighted average remaining contractual life (in years) Weighted average fair value of options granted
1,28,14,250 47,49,240 9,29,424 31,46,430 67,626 1,34,20,010 13,65,190
1,69,54,594 3,06,040 8,62,972 35,05,736 77,676 1,28,14,250 16,70,738
The weighted average share price at the date of exercise for stock options exercised during the year was ` 437.07 (Previous year ` 363.99).
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The details of exercise price for stock options outstanding at the end of the year are: 31st March 2011 Range of exercise prices (`) Number of options outstanding Weighted average remaining contractual life of options (in years) 1.34 2.00 1.73 1.78 2.09 Weighted average exercise price (`)
0-100 101-200 201-300 301-400 401-500 31st March 2010 Range of exercise prices (`)
30,854 28,87,906 24,14,450 80,34,800 52,000
5.00 140.45 220.66 334.38 449.52
Number of options outstanding
Weighted average remaining contractual life of options (in years) 0.52 1.40 1.89 2.06 1.20 1.42
Weighted average exercise price (`)
0-100 101-200 201-300 301-400 401-500 601-700
4,23,680 97,16,674 24,26,496 50,74,000 87,000 75,000
55.63 154.55 206.43 341.66 492.24 625.00
In May 2010, the ESOP / Compensation Committee of the Bank accorded approval to the changes in exercise price of two stock option series granted on 10th May 2010. In addition to reduction in exercise price, in respect of one of the series, the vesting date of the last tranche has been preponed by 0.58 years in May 2010. The incremental intrinsic value resulting from the above modifications amounted to ` 55 and ` 30 (post split) respectively. The incremental intrinsic value is amortised from the modification date till the vesting date or the revised vesting date as the case may be. The incremental intrinsic value is measured as the difference between the intrinsic value of the modified stock options and that of the original stock options, both estimated as at the date of the modification. Stock Options granted The fair value of the equity-settled and cash-settled options is estimated on the date of grant using Black Scholes options pricing model taking into account the terms and conditions upon which the options were granted. The fair value of the cash-settled options is remeasured at the each reporting date. The following table lists the inputs to the model used for equity-settled and cash-settled options: Year ended 31st March 2011 Equity-settled Exercise Price ` Weighted Average Share Price ` Expected Volatility Historical Volatility Life of the options granted (Vesting and exercise period) in years Risk-free interest rate Expected dividend rate 200 422 401.14 Cash-settled 5 380.17 Year ended 31st March 2010 Equity-settled 5 475 381.04 Cash-settled 5 382.21
31.56%-65.43% 22.16%-57.98% 57.71%-77.02% 36.26%-67.54% 31.56%-65.43% 22.16%-57.98% 57.71%-77.02% 36.26%-67.54% 1.00 4.44 5.54%-7.66% 0.09%-0.11% 0.08 3.09 7.28%-7.86% 0.10% 1.06 4.42 4.65%-7.22% 0.09%-0.19% 0.67 4.09 4.78%-7.37% 0.10%
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The expected volatility was determined based on historical volatility data; historical volatility includes early years of the Banks life; the Bank expects the volatility of its share price to reduce as it matures. The above information has been prepared by the Bank and relied upon by the auditors. Effect of the employee share-based payment plans on the Profit and Loss account and on its financial position: (` in crores) Year ended 31st March 2011 Total Employee Compensation Cost pertaining to share-based payment plans Compensation Cost pertaining to equity-settled employee share-based payment plan included above Liability for employee stock options outstanding as at year end Deferred Compensation Cost Closing balance of liability for cash-settled options Expense arising from increase in intrinsic value of liability for cash stock appreciation plan 25.26 9.38 70.43 33.52 10.51 0.19 Year ended 31st March 2010 14.75 13.60 76.56 21.76 1.15
Had the company recorded the compensation cost computed on the basis of Fair Valuation method instead of intrinsic value method, employee compensation cost would have been higher by ` 23.25 crores (Previous year ` 24.09 crores) and the profit after tax would have been lower by ` 15.52 crores (Previous year ` 15.90 crores). Consequently the basic and diluted EPS would have been ` 11.13 (Previous year ` 7.86) and ` 11.07 (Previous year ` 7.78) respectively. In respect of employee stock options granted to employees of the subsidiaries, the Bank recovers the related compensation cost from the respective subsidiaries, except in respect of employee stock options granted to the managing director of one subsidiary of the Bank, where the Bank has not recovered the related compensation cost aggregating ` 0.45 crores (Previous year ` 1.02 crores) from the subsidiary in the current year. The above numbers of ESOPs / SARs, exercise price, fair value and share price have been adjusted for split of the underlying equity shares from ` 10 paid up to ` 5 paid up per share. In computing the above information, certain estimates and assumptions have been made by the Management which have been relied upon by the auditors. 11. Advances securitised by the Bank: (` in crores) Particulars Book value of advances securitised Number of accounts Sale consideration received for the accounts securitised Gain on securitisation amortised during the year Credit enhancement, liquidity support provided Provision on securitised assets Nature of post securitisation support Year ended 31st March 2011 *0.55 Collection and paying agent or servicer Year ended 31st March 2010 500.00 1 500.65 1.99 Collection and paying agent or servicer
* Represents amortisation of previous years securitisation transactions. 12. Employee Benefits: i. The Bank has recognised the following amounts in the Profit and Loss Account towards contributions to Provident Fund and Other Funds Provident Fund ` 29.26 crores (Previous year ` 22.17 crores) Superannuation Fund ` 0.48 crores (Previous year ` 0.50 crores)
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In accordance with law, the Bank provides for gratuity, a defined benefit retirement plan covering all employees. The plan provides a lump sum payment to vested employees at retirement or termination of employment based on the respective employees salary and the years of employment with the Bank subject to maximum of ` 0.10 crores. The gratuity benefit is provided to the employees through a fund administered by a Board of Trustees and managed by Kotak Mahindra Old Mutual Life Insurance Limited. The Bank is responsible for settling the gratuity obligation through contributions to the fund. The plan is fully funded. iii. Reconciliation of opening and closing balance of present value of defined benefit obligation for gratuity benefits is given below: (` in crores) Particulars Change in benefit obligations Liability at the beginning of the year Current Service cost Interest cost Actuarial Losses / (Gain) Past Service Cost Liability assumed on acquisition / (Settled on divestiture) Benefits paid Liability at the end of the year Change in plan assets Fair value of plan assets at the beginning of the year Expected return on plan assets Actuarial Gain / (Losses) Benefits paid Employer contributions Fair value of plan assets at the end of the year 25.63 1.94 0.64 (4.48) 10.93 34.66 15.39 1.17 4.61 (4.31) 8.77 25.63 (` in crores) Reconciliation of present value of the obligation and the fair value of the plan assets Fair value of plan assets at the end of the year Liability at the end of the year Net Asset / (Liability) Expense recognised for the year Current Service cost Interest cost Expected return on plan assets Actuarial (gain) / loss Past Service Cost Net gratuity expense Actual return on plan assets 6.43 2.15 (1.94) 3.48 9.01 19.13 2.57 6.09 1.73 (1.17) (5.10) 1.55 5.78 (` in crores) Reconciliation of the Liability recognised in the Balance Sheet Net Liability / (Asset) at the beginning of the year Expense recognised Liability assumed on acquisition / (Settled on divestiture) Employer contributions Net Liability / (Asset) 31st March 2011 (3.44) 19.13 0.43 (10.93) 5.19 31st March 2010 4.36 1.55 (0.58) (8.77) (3.44) Its grt 2b 25 As at 31st March 2011 34.66 39.85 (5.19) As at 31st March 2010 25.63 22.19 3.44 22.19 6.43 2.15 4.12 9.01 0.43 (4.48) 39.85 (0.58) (4.31) 22.19 19.75 6.09 1.73 (0.49) As at 31st March 2011 As at 31st March 2010 ii.
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Investment details of plan assets The plan assets are invested in insurer managed funds. Actuarial assumptions used Interest rate Salary escalation rate 8.26% p.a. (Previous year 8.01% p.a.) 15% p.a. for first 2 years,10% p.a. for next 2 years & 6% p.a. thereafter (Previous year 15% p.a. for first 2 years, 10% p.a. for next 2 years & 6% p.a. thereafter) 7.50% p.a. (Previous year 7.50% p.a.)
Expected return on plan assets
The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors. The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled. The above information is as certified by the actuary and relied upon by the auditors. Experience adjustments Amounts for the current and previous three years are as follows: The Company expects to contribute ` 6.00 crores to gratuity fund in 2011-12. (` In crores) Gratuity Year ended 31st March 2011 Defined benefit obligation Plan assets Surplus / (deficit) Experience adjustments on plan liabilities Experience adjustments on plan assets 13. Provisions and Contingencies: Breakup of Provisions and Contingencies shown under the head Expenditure in Profit and Loss Account (` in crores) Particulars Provisions for depreciation on Investment Provision towards NPA (including write-offs; net of write-backs) Provision towards restructured assets Provision towards Standard Asset Provision for Taxes Other Provision and Contingencies*(net) Total Provisions and Contingencies 31st March 2011 53.10 100.74 369.52 (16.75) 506.61 31st March 2010 (2.40) 465.29 3.33 250.00 19.67 735.89 39.85 34.66 (5.19) 3.07 0.64 2010 22.19 25.63 3.44 (0.47) 4.61 2009 19.75 15.39 (4.36) (2.59) (3.58) 2008 14.41 13.96 (0.45) 0.96 1.38 2007 8.54 9.26 0.72 0.92 0.49
*For year ended 31st March 2011 includes write-back of provisions against derivative contracts ` (21.41) crores (Previous year provision of ` 14.83 crores) and provision for fees receivable ` 4.66 crores (Previous year ` 4.84 crores). 14. The Bank receives deposits from customers as part of margin requirements in respect of its professional clearing member (PCM) business with National Securities Clearing Corporation Ltd (NSCCL). Correspondingly, the Bank is required to maintain margins / deposits with NSCCL. For the said purpose of placing margins / deposits, the Bank has issued its own Fixed Deposit receipts amounting to ` 582.85 crores (Previous year ` 591.41 crores) in favour of NSCCL which have not been included in Term Deposits from Others [Schedule 3 (III) (ii)]. 15. Tier II Bonds a) Lower Tier II Bonds outstanding as at 31st March 2011 ` 465.70 crores (Previous year ` 465.70 crores). During the year, the Bank did not raise lower Tier II bonds (Previous year Nil). In accordance with the RBI requirements lower Tier II bonds of ` 113.48 crores (Previous year ` 65.48 crores) are not considered as Tier II capital for the purposes of capital adequacy computation.
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b) Upper Tier II Bonds outstanding as at 31st March 2011 ` 336.68 crores (Previous year ` 338.05 crores) of which bonds issued outside India ` 200.68 crores (Previous year ` 202.05 crores). During the year, the Bank did not raise upper Tier II bonds. (Previous year Nil). c) Interest Expended-Others (Schedule 15(III)) includes interest on subordinated debt (Lower and Upper Tier II) ` 57.49 crores (Previous year ` 58.10 crores).
16. Description of Contingent Liabilities: Sr. No. 1. Contingent Liability* Claims not acknowledged as debts Brief Description This includes liability on account of income tax, interest tax, sales tax and lease tax demands and legal cases filed against the Bank. The Bank is a party to various legal proceedings in the normal course of business. The Bank does not expect the outcome of these proceedings to have a material adverse effect on the Banks financial conditions, result of operations or cash flows. Against the above ` 31.52 crores have been paid, which shall be refunded to the Bank, if the outcome of the legal proceedings will be in the favour of the Bank. The Bank enters into foreign exchange contracts with inter Bank participants on its own account and for customers. Forward exchange contracts are commitments to buy or sell foreign currency at a future date at the contracted rate. As a part of its Banking activities, the Bank issues guarantees on behalf of its customers. Guarantees generally represent irrevocable assurances that the Bank will make payments in the event of customer failing to fulfill its financial or performance obligations. These includes: Documentary credit such as letters of obligations, enhance the credit standing of the customers of the Bank. Bills re-discounted by the Bank and cash collateral provided by the Bank on assets which have been securitised. These include: Liabilities in respect of interest rate swaps, currency swaps, forward rate agreements and options contracts. The Bank enters into these transactions with inter Bank participants on its own account and for customers. Currency Swaps are commitments to exchange cash flows by way of interest / principal in one currency against another, based on predetermined rates. Interest rate swaps are commitments to exchange fixed and floating interest rate cash flows. The notional amounts that are recorded as contingent liabilities are amounts used as a benchmark for the calculation of interest component of the contracts. Liability in respect of Capital commitments relating to fixed assets and undrawn commitments in respect of investments.
2.
Liability on account of outstanding forward exchange contracts
3.
Guarantees on behalf of constituents in India
4.
Acceptances, endorsements and other obligations
5.
Other items for which the Bank is contingently liable
* Also refer Schedule 12 Contingent Liabilities 17. The Bank has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been given. 18. Figures for the previous year have been regrouped / reclassified wherever necessary to conform to current years presentation. For and on behalf of the Board of Directors Dr. Shankar Acharya Chairman Dipak Gupta Executive Director Jaimin Bhatt Group Chief Financial Officer Mumbai, 5th May 2011 Its grt 2b 25 Bina Chandarana Company Secretary Uday Kotak Executive Vice Chairman & Managing Director
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Notes
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Notes
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content and design consultants
Kotak Infiniti, Malad (E)
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KOTAK MAHINDRA PRIME LIMITED
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Financial Statements
Reports Directors Report
BOARD OF DIRECTORS : MR. UDAY KOTAK (C), MR. DIPAK GUPTA, MR. C. JAYARAM, MS. SHANTI EKAMBARAM MR. MOHAN SHENOI, MR. JAIMIN BHATT, MR. ARVIND KATHPALIA, MR. NARAYAN S. A., MR. K V S MANIAN
Directors Report
To the Members of KOTAK MAHINDRA PRIME LIMITED The Directors present their Fifteenth Annual Report together with audited accounts of your Company for the year ended 31st March 2011. FINANCIAL RESULTS
` in Lakhs 31st March 2011 Gross Income Profit before Depreciation and Tax Depreciation Profit before Tax Provision for Tax Profit after Tax Balance of Profit from previous years Amount available for appropriation Appropriations: Proposed Dividend on Preference Shares Corporate Dividend Tax Special Reserve u/s 45IC of the RBI Act, 1934. Surplus carried forward to the Balance Sheet DIVIDEND With a view to conserve your Company's resources, the Directors do not recommend any Dividend on Equity Shares (Previous Year: Nil). Dividend recommended on Redeemable, Non Cumulative Non Convertible Preference Shares is ` 0.008 per share (Previous Year: Nil). INCREASE IN THE AUTHORISED SHARE CAPITAL The Company increased its Authorised Share Capital from ` 4,00,00,000/- (` four crore only) to ` 6,50,00,000/- (` six crore fifty lakhs only) divided into 35,00,000 Equity Shares of `10/- each and 30,00,000 Preference Shares of `10/- each. ISSUE OF 10% REDEEMABLE, NON CUMULATIVE, NON CONVERTIBLE PREFERENCE SHARES Pursuant to the approval given by the Members at the Extraordinary General Meeting of the Company held on 16th March 2011, the Company allotted 10,00,000 (Ten Lacs) 10% Redeemable, Non Cumulative, Non Convertible Preference Shares of `10/- each at a premium of `990/- per share aggregating to `100,00,00,000/- on preferential basis to Kotak Mahindra Capital Company Ltd., Kotak Investment Advisors Ltd. and Kotak Mahindra Asset Management Company Ltd. for expanding its business and in order to improve its capital adequacy ratio. ISSUE OF TIER II BONDS During the year, the Company issued Unsecured, Redeemable Non Convertible Subordinated Debt Bonds amounting to `150 crores as part of Tier II Capital in order to improve its capital adequacy ratio. DEBENTURES Pursuant to various circulars issued by the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) from time to time, the Company continues to list all debentures issued, having maturity of greater than 364 days on the Bombay Stock Exchange Limited under Information Memorandums issued by the Company from time to time. The Company has appointed IDBI Trusteeship Services Limited, Asian Building, Ground Floor, 17R Kamani Marg, Ballard Estate, Mumbai 400 001 as Debenture Trustees to the issues. 0.08 0.01 6,357.25 68,672.42 3,328.24 43,243.49 136,476.08 48,372.92 184.49 48,188.43 16,402.16 31,786.27 43,243.49 75,029.76 31st March 2010 99,205.74 26,063.75 176.46 25,887.29 9,246.07 16,641.22 29,930.51 46,571.73
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CAPITAL ADEQUACY The Capital to Risk Assets Ratio (CRAR) of your Company as on 31st March 2011 was at 15.5%. CREDIT RATING The Company's short-term borrowing program from CRISIL continued to enjoy the highest rating of "P1+". The long-term borrowings are rated by ICRA Limited and continue to be rated "LAA". ICRA's assessment of your Company's risk profile strengthens the confidence placed by a large pool of investors in your Company. Further the Tier II Subordinated Debts are dual rated also by CRISIL with a rating of "AA". ICRA has recently in August 2010 revised the "LAA" ratings Outlook on the long-term borrowings of your Company from 'Stable' to 'Positive'. P1+ indicates very strong degree of safety with regard to timely payment of interest and principal. LAA indicates high credit quality and low credit risk. AA indicates high degree of safety with regard to timely payment of financial obligations. FINANCE Your Company continued its strategy of diversified funding. The Company introduced new investors and continued to borrow through instruments like Debentures (NCDs), Commercial papers, Securitization / Assignment transactions, etc. Your Company continued to make use of derivative products like interest rate / foreign currency swaps to manage its Asset / Liability GAP and optimize borrowings costs. During Financial Year 2010-11 the trends in the financial markets witnessed a volatile interest rate environment amid uncertain global scenario. Domestically, inflation (WPI basis) ruled high through the year and interest rates in the system were stepped up the central bank. Liquidity remained negative for most part of the year. Globally, financial markets were on high vigilance during the financial year due to the unfolding Euro debt crises, sharp increase in various commodity prices and the recent Middle East and North Africa civil tensions. Your Company with its established treasury philosophies and practices is well geared to meet the challenges of a dynamic interest rate and liquidity environment. MANAGEMENT DISCUSSION AND ANALYSIS Company Business Your Company is primarily into car finance, engaged in financing of retail customers of passenger cars and multi-utility vehicles and inventory and term funding to car dealers. Your Company finances new and used cars under retail loan, hire purchase and lease contracts. The main streams of income for your Company are retail income, dealer finance income and fee based income. Your Company also receives income from loans against securities, securitization / assignment transactions, purchase of non performing assets, personal loans, corporate loans and developer funding. The major expenses for your Company are interest expense, business sourcing expense and cost of running operations. During the Financial Year 2010-11, your Company's retail vehicle disbursements were at `5,106 crores as against `4,064 crores in the previous year. During the year under review, gross advances stood at `11,208 crores as against `8,379 crores in the previous year. The Financial Year 2010-11 witnessed a benign interest rate environment. The pressure of maintaining the margins in the retail car finance business continued during the year. Your Company continued to focus on cost control and credit losses, while improving its positioning in the car finance market by scaling up the business. Your Company's good relationships with key stake holder's viz. manufacturers, dealers and customers helped it to substantially grow disbursement volumes by 26%. As detailed in the 'Financial Results' section above, Gross Income of your Company increased from `99,205.74 lakhs in 2009-10 to `136,476.08 lakhs in 2010-11. Profit before Tax was at `48,188.43 lakhs in 2010-11 as compared to `25,887.29 lakhs in 2009-10, an increase of 86%. The credit loss ratio of your Company was maintained at 0.14 % in a very challenging year. There have been certain instances of misappropriation of vehicles or use of deception to obtain vehicle loans by some of the customers involving an aggregate amount of ` 281.88 lakhs, also reported in annexure to auditors report. The said instances are inherent in the nature of business of the Company and adequate provision in respect thereof has been made in the accounts for the year. In the previous year the Company had received a demand of ` 80.72 lakhs from Collector of Stamps, Government of Maharashtra under the Bombay Stamp Act, 1958 for stamp duty for the period 2006-07. The said amount was disputed and the Company had preferred an appeal against the same. During the year the order has been passed in favour of the Company by the Chief Controlling Revenue Authority, Maharashtra State, Pune. Your Company has also selectively expanded in some other financing opportunities available to the Non Banking Financial Sector, while keeping the core focus on car financing. Industry Scenario The passenger car market in India saw a growth of 32% for the Financial Year 2010-11 as compared to a growth of 25% for 2009-10. Total unit sales of cars and MUV's crossed 24.59 lakh units in financial year 2010-11.
Kotak Mahindra Prime Limited Annual Report 2010-11
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Prospects Passenger car sales are likely to grow in double digit and auto finance market shall grow at a higher pace due to higher growth of premium vehicles. Your Company has, carved out a niche for itself in the car-financing segment focusing on distribution and relationship management across manufacturers, dealers, channel partners and customers. Fee based income is an important initiative of your Company. Dedicated infrastructure is in place to give a further impetus to the growth of fee based income with a twin objective of offering value added services to customers and leveraging the large existing customer database to generate further fee based income. Customer knowledge, easy accessibility through its wide network of branches and a firm commitment to deliver superior customer service are key drivers for your Company's performance. Internal Controls The Internal Control department of Kotak Mahindra Bank Limited regularly conducts a review to assess the financial and operating controls at various locations of your Company including Head Office functions and at branches. Reports of the audits conducted by the Internal Control department are presented to the Audit Committee. Representatives of the statutory auditors are permanent invitees to the Audit Committee. Human Resources The Company is professionally managed with key management personnel having relatively long tenure with the Company. Your Company follows a policy of building strong teams of talented professionals. Your Company encourages and facilitates long term careers with your Company through carefully designated management development programs and performance management systems. Information Technology Your Company uses the operating system 'CORE' which is owned and managed by Kotak Mahindra Bank Limited and is used for its retail assets division since 2003 and uses "ORACLE" as its Financial system. The CORE system has the latest technology platform and also has capacity to scale based on business requirements. The modular nature of the system supports efficiency in operations coupled with strong systems and operational controls. The system is robust to cater to efficient customer service and support marketing initiatives at reasonable cost. Cautionary Note Certain statements in the 'Management Discussion and Analysis' section may be forward-looking and are stated as may be required by applicable laws and regulations. Many factors may affect the actual results, which could be different from what the Directors envisage in terms of future performance and outlook. Your Company does not undertake to update these statements. DIRECTORS Mr. Jaimin Bhatt, Mr. Mohan Shenoi and Mr. Uday Kotak, retire by rotation at the Fifteenth Annual General Meeting and being eligible, have offered themselves for re-appointment. EXECUTIVE MANAGEMENT Mr. Sumit Bali is the Chief Executive Officer of your Company. The Members at the Annual General Meeting of the Company held on 26th May 2010 had approved the re-appointment of Mr. Sumit Bali as Manager of the Company for a period of one year with effect from 1st April 2010. The Board at its meeting held on 16th March 2011 has re-appointed Mr. Sumit Bali as Manager of the Company for a period of one year with effect from 1st April 2011, subject to the approval of the Members at the forthcoming Annual General Meeting of your Company. COMMITTEES (a) AUDIT COMMITTEE The Audit Committee consists of Mr. Dipak Gupta, Mr. Arvind Kathpalia, Mr. Jaimin Bhatt and Mr. K.V.S. Manian. The quorum comprises of any two members. During the year, four meetings of the Committee were held on 28th April 2010, 28th September 2010, 22nd October 2010 and 21st January 2011. Mr. Dipak Gupta and Mr. Jaimin Bhatt attended all the meetings. Mr. Arvind Kathpalia attended three meetings and Mr. K.V. S. Manian attended two meetings of the Committee. The First Tier Audit Committee constituted by the Board comprises of Mr. Vikram Sud, Mr. Sumit Bali, Mr. Harish Shah and Ms. Suman Sidana. The Committee screens the matters entrusted to the Audit Committee and also the routine matters such as overseeing the programme of inspections and compliance of inspection reports. (b) REMUNERATION COMMITTEE The Remuneration Committee consists of Mr. Dipak Gupta and Mr. C Jayaram and has been formed to approve the remuneration payable to the Whole-time Director/Manager of the Company, as required under the amended Part II in Section II of Schedule XIII of the Companies Act, 1956. During the year, two meetings of the Committee were held on 29th April 2010 and 31st May 2010. Both the meetings were attended by both the members of the Committee.
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(c)
NOMINATION COMMITTEE The Nomination Committee consists of Mr. Uday Kotak, Mr. Dipak Gupta and Mr. C. Jayaram. During the year, two meetings of the Committee were held on 9th April 2010 and 23rd April 2010 and all the members attended both the meetings. Subsequently, one meeting of the Committee was held on 25th April 2011 and was attended by all members.
(d)
COMMITTEE OF THE BOARD OF DIRECTORS The Committee of the Board of Directors consists of Mr. Dipak Gupta, Mr. C. Jayaram, Mr. Arvind Kathpalia and Mr. K.V.S. Manian. The quorum comprises of any two members. The Committee looks into the routine transactions of Company which inter alia include authorizing opening, operation & closure of bank accounts of the Company, authorizing officials of the Company to execute various documents/agreements, issuing power of attorney for representing the Company in various Court of Laws and before various Statutory Authorities and borrowing of money within the delegated limit. During the year, forty two meetings of the Committee were held. Mr. Dipak Gupta attended forty one meetings, Mr. C. Jayaram attended twenty eight meetings, Mr. Arvind Kathpalia attended thirty meetings and Mr. K.V.S. Manian attended seventeen meetings.
(e)
RISK MANAGEMENT COMMITTEE In the current financial year, the Company has introduced a two level structure for the Risk Management Committee in October 2010. The Tier I level consists of three operating management members and one Director, namely Mr. Sumit Bali, Ms. Suman Sidana, Mr. Harish Shah and Mr. Arvind Kathpalia (Director). The quorum comprises of any two members. During the year, three meetings of the Tier I Committee were held. Mr. Sumit Bali and Mr. Harish Shah attended all the three meetings during the year. Mr. Arvind Kathpalia and Ms. Suman Sidana attended two meetings during the year. The Tier II level (supervisory level) consists of three Directors of the Board, namely Mr. Dipak Gupta, Mr. Arvind Kathpalia and Mr. K.V.S. Manian. The quorum comprises of any two members. During the year, one meeting of the Tier II Committee was held. The meeting was attended by Mr. Arvind Kathpalia and Mr. K.V.S. Manian.
(f)
ASSET LIABILITY COMMITTEE (ALCO) The ALCO consists of Mr. Mohan Shenoi, Mr. Arvind Kathpalia, Mr. K.V.S. Manian, Mr. Sumit Bali and Ms. Suman Sidana. Mr. K.V.S. Manian was inducted as a member of the ALCO in December 2010. The quorum for the ALCO subsequently was increased from two members to three members. Members of ALCO meet every month to discuss various issues for the effective management of the assets and liabilities of the Company. During the year, twelve meetings of the Committee were held. Mr. Sumit Bali attended eleven meetings, Ms. Suman Sidana attended twelve meetings, Mr. Mohan Shenoi attended three meetings, Mr. K.V.S. Manian attended all three meetings since his induction in the ALCO and Mr. Arvind Kathpalia attended two meetings.
AUDITORS The Company's auditors Messrs. Deloitte Haskins & Sells, Chartered Accountants, Baroda, retire at the Fifteenth Annual General Meeting. Messrs. Deloitte Haskins & Sells, Chartered Accountants, Baroda, have consented to act as Auditors of the Company and are eligible for reappointment. STATUTORY INFORMATION The particulars of employees as required under Section 217 (2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975, is annexed. During the year under review, your Company did not accept any deposits from the public. There are no deposits due and outstanding as on 31st March 2011. Your Company's foreign exchange outgo was `1.38 lakhs. It had no foreign exchange earnings. The other particulars prescribed under the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, are not applicable since your Company is not a manufacturing company. DIRECTORS' RESPONSIBILITY STATEMENT Based on representations from the Operational Management, the Directors state, in pursuance of Section 217 (2AA) of the Companies Act, 1956, that: i) ii) the Company has, in the preparation of the annual accounts for the year ended 31st March 2011, followed the applicable accounting standards along with proper explanations relating to material departures, if any; the Directors have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March 2011 and of the profit of the Company for the financial year ended 31st March 2011;
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iii)
the Directors have taken proper and sufficient care to the best of their knowledge and ability, for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and the Directors have prepared the annual accounts on a going concern basis.
iv)
ACKNOWLEDGEMENTS The Directors thank the shareholders, dealers and their staff for the strong support that they have continued to extend to your Company. The Board also takes this opportunity to place on record its appreciation of the outstanding performance and dedication of your Company's employees at all levels, without whose commitment, the achievement of results as indicated above could not have been possible. The Board also acknowledges the faith reposed in the Company by the Company's lending institutions. For and on behalf of the Board of Directors
Mumbai, 26th April 2011
Uday Kotak Chairman
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Auditors Report
To the Members of KOTAK MAHINDRA PRIME LIMITED 1. We have audited the attached Balance Sheet of Kotak Mahindra Prime Limited ("the Company") as at 31st March 2011, the Profit and Loss Account and the Cash Flow Statement of the Company for the year ended on that date, both annexed thereto. These financial statements are the responsibility of the Company's Management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and the disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As required by the Companies (Auditor's Report) Order, 2003 (CARO) issued by the Central Government in terms of Section 227(4A) of the Companies Act, 1956, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. Further to our comments in the Annexure referred to in paragraph 3 above, we report as follows: (a) (b) (c) (d) (e) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit; in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books; the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt with by this report are in agreement with the books of account; in our opinion, the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt with by this report are in compliance with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956; in our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: (i) (ii) (iii) 5. in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2011; in the case of the Profit and Loss Account, of the profit of the Company for the year ended on that date; and in the case of the Cash Flow Statement, of the cash flows of the Company for the year ended on that date.
2.
3. 4.
On the basis of the written representations received from the Directors as on 31st March 2011 and taken on record by the Board of Directors, none of the Directors is disqualified as on 31st March 2011 from being appointed as a director in terms of Section 274(1)(g) of the Companies Act, 1956.
For DELOITTE HASKINS & SELLS Chartered Accountants (Registration No.117364W) R. SALIVATI Partner (Membership No.34004) MUMBAI, 26th April 2011
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Financial Statements Auditors Reports
Reports
Annexure to the Auditors Report

(Referred to in paragraph 3 of our report of even date) (i) (ii) Having regard to the nature of the Company's business/activities/result, clauses 4(ii), 4(viii), 4(x), 4(xiii), 4(xviii) and 4(xx) of CARO are not applicable. In respect of its fixed assets: (a) (b) The Company has maintained proper records showing full particulars, including quantitative details and situation of the fixed assets. The fixed assets were physically verified during the year by the Management in accordance with a regular programme of verification which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanation given to us, no material discrepancies were noticed on such verification. The fixed assets disposed off during the year, in our opinion, do not constitute a substantial part of the fixed assets of the Company and such disposal has, in our opinion, not affected the going concern status of the Company. According to the information and explanations given to us, the company has not granted any loans, secured or unsecured, to Companies, firms or other parties covered in the Register maintained under Section 301 of the Companies Act, 1956. In view of what has been stated above, sub-clause (b) regarding terms and conditions of such loans, sub-clause (c) regarding receipt of principal amount and interest and sub-clause (d) regarding steps for recovery of overdue amount of clause 4(iii) of the Companies (Auditors Report) Order, 2003 are not applicable to the company. (b) According to the information and explanations given to us, the company had taken secured loan of `5,000.00 lakhs (by way of issue of Debentures) from a company covered in the register maintained under section 301 of the Companies Act, 1956. At the year-end, the outstanding balance of such loans taken was `20,000.00 lakhs (which is represented by the Debentures) and the maximum amount involved during the year was `49,995.13 lakhs. The rate of interest and other terms and conditions of such loans are, in our opinion, prima facie not prejudicial to the interests of the Company. The payments of principal amounts and interest in case of the aforesaid loan are as per stipulations.
(c) (iii) (a)
(c) (d) (iv)
In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the company and the nature of its business with regard to purchase of fixed assets and for the sale of goods and services. The company does not purchase inventory nor does it sell any goods (other than repossessed automobile assets) in the ordinary course of business. During the course of our audit, we have not observed any major weakness in such internal control system. In respect of contracts or arrangements entered in the Register maintained in pursuance of Section 301 of the Companies Act, 1956, to the best of our knowledge and belief and according to the information and explanations given to us: (a) (b) The particulars of contracts or arrangements referred to in Section 301 that needed to be entered in the Register maintained under the said Section have been so entered. Where each of such transaction is in excess of `5 lakhs in respect of any party, the transactions have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time except in respect of certain purchases for which comparable quotations are not available and in respect of which we are unable to comment.
(v)
(vi) (vii)
According to the information and explanations given to us, the Company has not accepted any deposit from the public during the year. In our opinion, the Company has an adequate internal audit system commensurate with the size and the nature of its business.
(viii) According to the information and explanations given to us in respect of statutory dues: (a) The Company has generally been regular in depositing undisputed dues, including Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Cess and other material statutory dues applicable to it with the appropriate authorities. There were no undisputed amounts payable in respect of Income-tax, Wealth Tax, Cess and other material statutory dues in arrears as at 31st March 2011 for a period of more than six months from the date they became payable. There are no disputes on account of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty and Cess which have not been deposited as on 31st March 2011 on account of dispute.
(b) (c) (ix)
In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks, financial institutions and debenture holders.
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(x) (xi)
In our opinion, the Company has maintained adequate records where it has granted loans and advances on the basis of security by way of pledge of shares and other securities. Based on our examination of the records and evaluations of the related internal controls, the Company has maintained proper records of the transactions and contracts in respect of its dealing in shares, securities, debentures and other investments and timely entries have been made therein. The aforesaid securities have been held by the Company in its own name. According to the information and explanations given to us, the company has not given any guarantee for the loans taken by others from banks or financial institutions during the year.
(xii)
(xiii) In our opinion and according to the information and explanations given to us, the term loans have been applied for the purposes for which they were obtained, other than temporary deployment pending application. (xiv) In our opinion and according to the information and explanations given to us and on an overall examination of the Balance Sheet, we report that funds raised on short-term basis have not been used during the year for long- term investment. (xv) According to the information and explanations given to us, during the period covered by our audit report, the Company had issued `20,435 lakhs debentures of `5,00,000/- each and `2,57,670 lakhs of debentures of `10,00,000/- each. The Company has created security in respect of the debentures issued.
(xvi) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company has been noticed or reported during the year, except that there have been instances of misappropriation of vehicles or use of deception to obtain vehicle loans by some of the customers involving an aggregate amount of `281.88 lakhs. However, as informed to us, such instances are inherent in the nature of business of the company and adequate provision in respect thereof has been made in the accounts for the year. For DELOITTE HASKINS & SELLS Chartered Accountants (Registration No.117364W) R. SALIVATI Partner (Membership No.34004) MUMBAI, 26th April 2011
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Financial Statements Balance Sheet and P&L A/c
Reports

Schedule As at 31st March 2011 ` in lakhs ` in lakhs SOURCES OF FUNDS Shareholders Funds Share Capital Reserves and Surplus Loan Funds Secured Loans Unsecured Loans Total APPLICATION OF FUNDS Fixed Assets Gross Block Less: Depreciation / Amortization Investments Deferred Tax Deferred tax asset Less: Deferred tax liability Current Assets, Loans and Advances Interest accrued on Investments Cash and Bank Balances Receivables under Financing Activity Other Loans and Advances Less:Current Liabilities and Provisions Liabilities Provisions Net Current Assets Total Significant Accounting Policies and 17 9 10 49,812.61 5,415.94 55,228.55 1,092,174.37 1,136,633.10 35,888.95 6,955.26 42,844.21 825,315.10 842,888.60 8 525.65 14,177.13 1,114,498.75 18,201.39 1,147,402.92 22,483.47 831,096.79 14,579.05 868,159.31 6 7 5,710.16 1,786.82 3,923.34 4,952.12 1,586.62 3,365.50 5 3,555.54 778.76 2,776.78 37,758.61 3,481.22 644.09 2,837.13 11,370.87 3 4 775,196.54 207,679.00 982,875.54 1,136,633.10 382,985.00 347,932.22 730,917.22 842,888.60 1 2 449.52 153,308.04 153,757.56 349.52 111,621.86 111,971.38 As at 31st March 2010 ` in lakhs ` in lakhs
Notes to the Accounts Schedules referred to above form an integral part of the Balance Sheet In terms of our report attached For Deloitte Haskins & Sells Chartered Accountants R. Salivati Partner Place: Mumbai Dated: 26th April 2011 Its grt 2b 25 Harish Shah Company Secretary For and on behalf of the Board of Directors Dipak Gupta Director Jaimin Bhatt Director
Schedule Year ended 31st March 2011 ` in lakhs Year ended 31st March 2010 ` in lakhs
INCOME Income from Operations Other Income Total EXPENDITURE Payments to and Provision for Employees Interest and Finance charges Administrative and other expenses Provisions / Write offs for Non Performing / Other Assets Depreciation / Amortization Total Net Profit before tax Provision for taxation Current Tax Deferred Tax Net Profit after tax Profit brought forward from previous year 16,960.00 (557.84) 31,786.27 43,243.49 75,029.76 Appropriations Proposed Dividend on preference shares Corporate Dividend Tax Special Reserve u/s 45 IC of the RBI Act, 1934 Surplus carried to Balance Sheet Total Earnings per share - (Refer Note No.II (H) of Schedule 17) Basic and Diluted Significant Accounting Policies and Notes to the Accounts Schedules referred to above form an integral part of the Profit and Loss Account In terms of our report attached For Deloitte Haskins & Sells Chartered Accountants R. Salivati Partner Place: Mumbai Dated: 26th April 2011 Harish Shah Company Secretary For and on behalf of the Board of Directors Dipak Gupta Director Jaimin Bhatt Director 17 909.42 510.07 0.08 0.01 6,357.25 68,672.42 75,029.76 3,328.24 43,243.49 46,571.73 10,040.00 (793.93) 16,641.22 29,930.51 46,571.73 13 14 15 16 4,330.80 67,256.23 14,090.92 2,425.21 184.49 88,287.65 48,188.43 3,425.61 50,319.16 11,568.47 7,828.75 176.46 73,318.45 25,887.29 11 12 132,449.13 4,026.95 136,476.08 96,602.34 2,603.40 99,205.74
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Financial Statements Cash Flow Statement
Reports
` in lakhs CASH FLOW FROM OPERATING ACTIVITIES Cash flows from operating activities Net profit before taxation Add/(Less) : Adjustment for Depreciation / Amortization Profit on sale of investments Dividend on current investments Net Distribution from venture capital funds Interest on debentures Profit on sale of assets Provision for gratuity and compensated absences Provision for doubtful debts, receivables and advances Provision for standard assets Operating profit before working capital changes Increase in Receivables under Financing Activity (Increase) / Decrease in Loans and Advances Increase in Current Liabilities Cash used in operations Income Tax paid (net of refunds) Net cash (used in) / from operating activities A Cash flows from investing activities Purchase of Fixed assets Sale of Fixed assets Dividend on current investments Net Distribution from venture capital funds Interest on debentures Purchase of Investments Sale of Investments Net cash (used in) / from investing activities B Cash flows from financing activities Increase in deep discount debentures Increase in Unsecured Non convertible debentures Increase in Short Term Borrowings Increase in other Loans and Advances Issue of Equity Shares / Premium on equity shares and debentures Issue of Preference Shares / Premium on preference shares Net cash from financing activities C Net (decrease) / increase in cash and cash equivalents A+B+C Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 52,208.19 81,960.79 26,680.41 91,108.93 10,000.00 261,958.32 (8,306.34) 22,483.47 14,177.13 31,933.79 82.57 144,714.63 70,911.86 8,838.62 256,481.47 14,914.75 7,568.72 22,483.47 Its grt 2b 25 (131.19) 14.18 1,022.84 903.57 (2,007,322.45) 1,981,656.47 (23,856.58) (131.73) 14.12 5.81 0.75 34.98 (892,145.98) 889,267.98 (2,954.07) 184.49 (721.76) (1,022.84) (903.57) (7.12) 200.51 (467.09) 405.50 45,856.55 (282,940.45) (3,637.97) 13,923.66 (226,798.21) (19,609.87) (246,408.08) 176.46 (389.82) (5.81) (0.75) (34.98) (4.33) 61.37 2,433.99 703.39 28,826.81 (276,390.66) 12,633.19 3,156.85 (231,773.81) (6,838.84) (238,612.65) 48,188.43 25,887.29 2010-11 ` in lakhs ` in lakhs 2009-10 ` in lakhs
11
Notes: 1. Cash and cash equivalents include: Cash on Hand Bank balances - Current Account Bank balances - Fixed Deposits (Refer Note No.3) Total cash and cash equivalents 2. 3. 4. 782.81 12,578.15 816.17 14,177.13 667.78 20,458.73 1,356.96 22,483.47
The Cash Flow Statement has been prepared under the Indirect Method as set out in the Accounting Standard - 3 on Cash Flow Statements as notified under the Companies (Accounting Standards) Rules, 2006. The above includes `8.79 lakhs (Previous year `8.79 lakhs) lodged with government departments, `764.02 lakhs (Previous year `1292.78 lakhs) with a bank as credit collateral and `43.35 lakhs (Previous year `55.38 lakhs) as liquidity facility on assignment of receivables. The previous years figures have been regrouped wherever necessary in order to conform to this years presentation.
In terms of our report attached For Deloitte Haskins & Sells Chartered Accountants R. Salivati Partner Place: Mumbai Dated: 26th April 2011 Harish Shah Company Secretary For and on behalf of the Board of Directors Dipak Gupta Director Jaimin Bhatt Director
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Financial Statements Schedules
Reports
Schedule forming part of the Balance Sheet

31st March 2011 ` in lakhs Schedule 1 - Share Capital Authorised 3,500,000 (Previous year 3,500,000) Equity Shares of `10/- each 3,000,000 (Previous year 500,000) Preference Shares of `10/- each 350.00 300.00 650.00 Issued and Subscribed 3,495,200 (Previous year 3,495,200) equity shares of `10/- each fully paid up 1,000,000 (Previous year Nil) preference shares of `10/- each fully paid up Total Note : (1) Of the above : i) ii) iii) (2) 1,782,600 equity shares are held by Kotak Mahindra Bank Limited, the holding company along with its nominees. 1,712,600 equity shares are held by Kotak Securities Limited, a subsidiary of the holding company. 1,971,000 equity shares are allotted as fully paid up pursuant to conversion of fully convertible debentures. 349.52 100.00 449.52 349.52 349.52 350.00 50.00 400.00 31st March 2010 ` in lakhs
10% Redeemable, Non Cumulative, Non Convertible Preference Shares are issued at a premium of `990 per share. These shares will be redeemed at `990 per share plus a premium of 7% on the said amount by April 15, 2016 with the earliest put / call option date being April 15, 2012.
Schedule 2 - Reserves and Surplus Securities Premium Account As per last Balance Sheet Add : Amount received during the year (Previous year net of tax) 67,009.66 Special Reserve u/s 45 IC of the RBI Act, 1934 As per last Balance Sheet Add :Transferred from Profit and Loss Account 11,086.17 6,357.25 17,443.42 General Reserve As per last Balance Sheet Surplus in Profit and Loss Account Total 182.54 68,672.42 153,308.04 182.54 43,243.49 111,621.86 7,757.93 3,328.24 11,086.17 57,109.66 57,109.66 9,900.00 48,294.37 8,815.29
Its grt 2b 25
13
Schedule forming part of the Balance Sheet (Continued)

Notes Schedule 3 - Secured Loans Redeemable Non-Convertible Debentures Index Linked Debentures Less : Unamortised Discount (including from Directors `255.00 lakhs Previous year `255.00 lakhs) Deep Discount Debentures Less : Discount not written off 1&4 126,420.00 6,841.30 119,578.70 Short Term Loans : From Banks Other Loans and Advances: From Banks Total Notes: 1) The Debentures are redeemable at par.The Non Convertible Debentures, Index Linked Debentures and Deep Discount Debentures are secured by way of a pari passu mortgage and charge in favour of the Debenture Trustees on the Companys immoveable property amounting to ` 18.07 lakhs and further secured by way of hypothecation of receivables arising out of loan, lease and hire purchase, book debts and other current assets. The details of Secured Reedemable Non Convertible Debentures are as under : As at As at 31st March 2011 31st March 2010 ` in lakhs ` in lakhs 500.00 2,500.00 2,500.00 2,500.00 2,500.00 7,500.00 2,500.00 3,000.00 550.00 530.00 1,760.00 3,000.00 1,000.00 500.00 7,000.00 4,500.00 2,500.00 500.00 2,500.00 2,500.00 12-07-2011 10-06-2011 Earliest Put / Call Option Redemption Date Date 24-08-2010 28-09-2010 09-12-2010 20-05-2011 03-08-2011 10-08-2011 04-10-2011 29-11-2011 16-01-2012 30-01-2012 24-02-2012 03-04-2012 19-04-2012 24-04-2012 14-06-2012 26-06-2012 20-09-2012 5 265,183.21 775,196.54 119,692.36 382,985.00 5 73,500.00 17,500.00 58,500.00 4,961.20 53,538.80 1&2 1&3 32,865.00 2,830.37 30,034.63 286,900.00 181,150.00 12,430.00 1,326.16 11,103.84 ` in lakhs 31st March 2011 ` in lakhs 31st March 2010 ` in lakhs
2)
Description 700 debentures of ` 1,000,000 each 450 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 50 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 750 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 300 debentures of ` 1,000,000 each 55 debentures of ` 1,000,000 each 53 debentures of ` 1,000,000 each 176 debentures of ` 1,000,000 each 300 debentures of ` 1,000,000 each 100 debentures of ` 1,000,000 each 50 debentures of ` 1,000,000 each
14
Its grt 2b 25
Reports
Description 250 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 150 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 300 debentures of ` 1,000,000 each 500 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 500 debentures of ` 1,000,000 each 500 debentures of ` 1,000,000 each 500 debentures of ` 1,000,000 each 500 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 150 debentures of ` 1,000,000 each 600 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 50 debentures of ` 1,000,000 each 465 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 750 debentures of ` 1,000,000 each 100 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 50 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 600 debentures of ` 1,000,000 each 500 debentures of ` 1,000,000 each 750 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 100 debentures of ` 1,000,000 each 600 debentures of ` 1,000,000 each 300 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 400 debentures of ` 1,000,000 each 150 debentures of ` 1,000,000 each 200 debentures of ` 1,000,000 each 100 debentures of ` 1,000,000 each 150 debentures of ` 1,000,000 each 50 debentures of ` 1,000,000 each 150 debentures of ` 1,000,000 each 200 debentures of ` 1,000,000 each
As at As at 31st March 2011 31st March 2010 ` in lakhs ` in lakhs 1,500.00 6,000.00 2,500.00 2,500.00 500.00 4,650.00 2,500.00 7,500.00 1,000.00 2,500.00 2,500.00 500.00 2,500.00 2,500.00 6,000.00 5,000.00 7,500.00 2,500.00 1,000.00 6,000.00 3,000.00 2,500.00 4,000.00 1,500.00 1,500.00 500.00 1,500.00 2,000.00 2,500.00 2,500.00 1,500.00 2,500.00 3,000.00 5,000.00 2,500.00 5,000.00 5,000.00 5,000.00 5,000.00 2,500.00 1,500.00 6,000.00 2,500.00 2,500.00 500.00 4,650.00 2,500.00 7,500.00 1,000.00 2,500.00 2,500.00 500.00 2,500.00 2,500.00 6,000.00 5,000.00 7,500.00 2,500.00 1,000.00 6,000.00 3,000.00 2,500.00 4,000.00 1,500.00 2,000.00 1,000.00 1,500.00 500.00 1,500.00 2,000.00
Earliest Put / Call Option Redemption Date Date 05-07-2010 06-07-2010 08-07-2010 22-07-2010 04-10-2010 12-10-2010 22-10-2010 25-10-2010 27-10-2010 28-10-2010 11-11-2010 04-02-2011 05-04-2011 05-04-2011 11-04-2011 18-04-2011 22-04-2011 10-05-2011 13-05-2011 17-05-2011 20-05-2011 23-05-2011 24-05-2011 10-06-2011 16-06-2011 17-06-2011 24-06-2011 29-08-2011 05-09-2011 21-10-2011 28-10-2011 18-11-2011 23-11-2011 23-11-2011 23-04-2012 25-09-2012 24-12-2010 17-02-2011 04-04-2011 05-04-2011 21-04-2011 25-04-2011 Its grt 2b 25
15
Description
As at As at 31st March 2011 31st March 2010 ` in lakhs ` in lakhs 1,500.00 2,500.00 350.00 500.00 1,000.00 2,500.00 1,000.00 500.00 4,000.00 2,000.00 400.00 5,000.00 5,000.00 2,000.00 5,000.00 5,000.00 1,000.00 2,500.00 130.00 2,500.00 2,500.00 5,000.00 5,000.00 1,000.00 6,000.00 3,500.00 2,500.00 1,000.00 1,000.00 500.00 2,500.00 6,000.00 1,500.00 2,500.00 5,000.00 2,500.00 10,000.00 5,000.00 2,500.00 4,100.00 2,500.00 1,500.00 2,500.00 500.00 1,000.00 2,500.00 1,000.00 5,000.00 5,000.00 1,000.00 3,500.00 2,500.00 1,000.00 -
Earliest Put / Call Option Redemption Date Date 09-05-2011 25-05-2011 20-06-2011 25-07-2011 04-08-2011 22-08-2011 30-08-2011 05-09-2011 08-09-2011 12-09-2011 28-09-2011 03-10-2011 05-10-2011 03-10-2011 25-10-2011 10-10-2011 31-10-2011 01-11-2011 01-11-2011 04-11-2011 08-11-2011 29-11-2011 07-12-2011 09-12-2011 19-12-2011 16-01-2012 31-01-2012 24-02-2012 27-02-2012 06-03-2012 07-03-2012 12-03-2012 04-04-2012 23-04-2012 03-05-2012 07-05-2012 29-05-2012 05-06-2012 18-06-2012 22-06-2012 03-07-2012 03-07-2012 30-07-2012
150 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 35 debentures of ` 1,000,000 each 50 debentures of ` 1,000,000 each 100 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 100 debentures of ` 1,000,000 each 50 debentures of ` 1,000,000 each 400 debentures of ` 1,000,000 each 200 debentures of ` 1,000,000 each 40 debentures of ` 1,000,000 each 500 debentures of ` 1,000,000 each 500 debentures of ` 1,000,000 each 200 debentures of ` 1,000,000 each 500 debentures of ` 1,000,000 each 500 debentures of ` 1,000,000 each 100 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 13 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 500 debentures of ` 1,000,000 each 500 debentures of ` 1,000,000 each 100 debentures of ` 1,000,000 each 600 debentures of ` 1,000,000 each 350 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 100 debentures of ` 1,000,000 each 100 debentures of ` 1,000,000 each 50 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 600 debentures of ` 1,000,000 each 150 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 500 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 1000 debentures of ` 1,000,000 each 500 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 410 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each
16
Its grt 2b 25
Reports
Description
As at As at 31st March 2011 31st March 2010 ` in lakhs ` in lakhs 2,500.00 1,500.00 1,000.00 2,500.00 5,000.00 1,000.00 5,000.00 220.00 2,500.00 5,000.00 600.00 2,500.00 4,650.00 180.00 2,000.00 3,500.00 2,500.00 5,000.00 7,000.00 280.00 800.00 500.00 200.00 286,900.00 2,500.00 3,500.00 181,150.00
Earliest Put / Call Option Redemption Date Date 30-08-2012 18-10-2012 18-10-2012 22-10-2012 15-11-2012 19-11-2012 30-11-2012 10-01-2013 11-01-2013 11-01-2013 30-01-2013 08-02-2013 15-02-2013 06-03-2013 29-03-2013 01-04-2013 03-05-2013 06-05-2013 30-05-2013 19-07-2013 02-08-2013 16-01-2014 14-02-2014
250 debentures of ` 1,000,000 each 150 debentures of ` 1,000,000 each 100 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 500 debentures of ` 1,000,000 each 100 debentures of ` 1,000,000 each 500 debentures of ` 1,000,000 each 22 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 500 debentures of ` 1,000,000 each 60 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 465 debentures of ` 1,000,000 each 18 debentures of ` 1,000,000 each 200 debentures of ` 1,000,000 each 350 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 500 debentures of ` 1,000,000 each 700 debentures of ` 1,000,000 each 28 debentures of ` 1,000,000 each 80 debentures of ` 1,000,000 each 50 debentures of ` 1,000,000 each 20 debentures of ` 1,000,000 each
3)
The details of Secured Index Linked Debentures are as under: As at 31st March 2011 ` in lakhs 15.00 5.00 5.00 5.00 20.00 5.00 30.00 10.00 5.00 5.00 5.00 5.00 20.00 As at 31st March 2010 ` in lakhs 15.00 5.00 5.00 5.00 20.00 5.00 30.00 10.00 5.00 5.00 5.00 5.00 20.00 Earliest Put / Call Option Date Redemption Date 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012
Description 3 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 4 debentures of ` 500,000 each 1 debenture of ` 500,000 each 6 debentures of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 4 debentures of ` 500,000 each
Its grt 2b 25
17
Description
As at As at 31st March 2011 31st March 2010 ` in lakhs ` in lakhs 10.00 5.00 100.00 5.00 100.00 5.00 50.00 5.00 10.00 5.00 10.00 5.00 10.00 5.00 5.00 10.00 10.00 10.00 5.00 15.00 5.00 10.00 5.00 5.00 50.00 100.00 50.00 5.00 5.00 5.00 5.00 10.00 15.00 5.00 10.00 5.00 10.00 5.00 20.00 5.00 5.00 10.00 5.00 100.00 5.00 100.00 5.00 50.00 5.00 10.00 5.00 10.00 5.00 10.00 5.00 5.00 10.00 10.00 10.00 5.00 15.00 5.00 10.00 5.00 5.00 50.00 100.00 50.00 5.00 5.00 5.00 5.00 10.00 15.00 5.00 10.00 5.00 10.00 5.00 20.00 5.00 5.00
Earliest Put / Call Option Redemption Date Date 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012
2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 20 debentures of ` 500,000 each 1 debenture of ` 500,000 each 20 debentures of ` 500,000 each 1 debenture of ` 500,000 each 10 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 2 debentures of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 3 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 10 debentures of ` 500,000 each 20 debentures of ` 500,000 each 10 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 3 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 4 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each
18
Its grt 2b 25
Reports
Description
As at As at 31st March 2011 31st March 2010 ` in lakhs ` in lakhs 25.00 5.00 10.00 100.00 5.00 5.00 5.00 15.00 5.00 10.00 10.00 15.00 5.00 20.00 5.00 5.00 5.00 25.00 5.00 20.00 15.00 20.00 5.00 10.00 5.00 20.00 10.00 5.00 5.00 5.00 5.00 5.00 5.00 10.00 5.00 10.00 5.00 5.00 5.00 20.00 5.00 25.00 5.00 10.00 100.00 5.00 5.00 5.00 15.00 5.00 10.00 10.00 15.00 5.00 20.00 5.00 5.00 5.00 25.00 5.00 20.00 15.00 20.00 5.00 10.00 5.00 20.00 10.00 5.00 5.00 5.00 5.00 5.00 5.00 10.00 5.00 10.00 5.00 5.00 5.00 20.00 5.00
Earliest Put / Call Option Redemption Date Date 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012
5 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 20 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 3 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 2 debentures of ` 500,000 each 3 debentures of ` 500,000 each 1 debenture of ` 500,000 each 4 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 5 debentures of ` 500,000 each 1 debenture of ` 500,000 each 4 debentures of ` 500,000 each 3 debentures of ` 500,000 each 4 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 4 debentures of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 4 debentures of ` 500,000 each 1 debenture of ` 500,000 each
Its grt 2b 25
19
Description 1 debenture of ` 500,000 each 4 debentures of ` 500,000 each 20 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 3 debentures of ` 500,000 each 2 debentures of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 6 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 6 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 8 debentures of ` 500,000 each 1 debenture of ` 500,000 each 4 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each
As at As at 31st March 2011 31st March 2010 ` in lakhs ` in lakhs 5.00 20.00 100.00 5.00 5.00 5.00 5.00 5.00 10.00 5.00 5.00 5.00 10.00 5.00 5.00 10.00 10.00 5.00 5.00 15.00 10.00 10.00 5.00 5.00 5.00 5.00 30.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 30.00 5.00 10.00 40.00 5.00 20.00 5.00 10.00 5.00 20.00 100.00 5.00 5.00 5.00 5.00 5.00 10.00 5.00 5.00 5.00 10.00 5.00 5.00 10.00 10.00 5.00 5.00 15.00 10.00 10.00 5.00 5.00 5.00 5.00 30.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 30.00 5.00 10.00 40.00 5.00 20.00 5.00 10.00
Earliest Put / Call Option Redemption Date Date 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012 23-01-2012
20
Its grt 2b 25
Reports
Description 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 5 debentures of ` 500,000 each 4 debentures of ` 500,000 each 10 debentures of ` 500,000 each 2 debentures of ` 500,000 each 2 debentures of ` 500,000 each 10 debentures of ` 500,000 each 5 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 5 debentures of ` 500,000 each 6 debentures of ` 500,000 each 1 debenture of ` 500,000 each 8 debentures of ` 500,000 each 23 debentures of ` 500,000 each 6 debentures of ` 500,000 each 4 debentures of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 6 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 10 debentures of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 2 debentures of ` 500,000 each 30 debentures of ` 500,000 each
21
Description 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 5 debentures of ` 500,000 each 6 debentures of ` 500,000 each 4 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 4 debentures of ` 500,000 each 2 debentures of ` 500,000 each 5 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 5 debentures of ` 500,000 each 4 debentures of ` 500,000 each 1 debenture of ` 500,000 each 10 debentures of ` 500,000 each 1 debenture of ` 500,000 each 6 debentures of ` 500,000 each 2 debentures of ` 500,000 each 10 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 10 debentures of ` 500,000 each 10 debentures of ` 500,000 each 2 debentures of ` 500,000 each 23 debentures of ` 500,000 each 4 debentures of ` 500,000 each 4 debentures of ` 500,000 each 1 debenture of ` 500,000 each 4 debentures of ` 500,000 each 10 debentures of ` 500,000 each 4 debentures of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each
22
Its grt 2b 25
Reports
Description 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 4 debentures of ` 500,000 each 4 debentures of ` 500,000 each 2 debentures of ` 500,000 each 40 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 4 debentures of ` 500,000 each 4 debentures of ` 500,000 each 2 debentures of ` 500,000 each 2 debentures of ` 500,000 each 2 debentures of ` 500,000 each 6 debentures of ` 500,000 each 40 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 2 debentures of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 23 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 10 debentures of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 12 debentures of ` 500,000 each 4 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each
Its grt 2b 25
23
Description 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 4 debentures of ` 500,000 each 2 debentures of ` 500,000 each 4 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 2 debentures of ` 500,000 each 3 debentures of ` 500,000 each 2 debentures of ` 500,000 each 2 debentures of ` 500,000 each 4 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 20 debentures of ` 500,000 each 2 debentures of ` 500,000 each 20 debentures of ` 500,000 each 1 debenture of ` 500,000 each 3 debentures of ` 500,000 each 5 debentures of ` 500,000 each 8 debentures of ` 500,000 each 24 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 4 debentures of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 3 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 8 debentures of ` 500,000 each
24
Its grt 2b 25
Reports
Description 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 20 debentures of ` 500,000 each 1 debenture of ` 500,000 each 4 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 8 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 4 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 20 debentures of ` 500,000 each
25
Description 1 debenture of ` 500,000 each 4 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 20 debentures of ` 500,000 each 2 debentures of ` 500,000 each 6 debentures of ` 500,000 each 6 debentures of ` 500,000 each 1 debenture of ` 500,000 each 24 debentures of ` 500,000 each 20 debentures of ` 500,000 each 6 debentures of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 5 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 47 debentures of ` 500,000 each 2 debentures of ` 500,000 each 2 debentures of ` 500,000 each 4 debentures of ` 500,000 each 10 debentures of ` 500,000 each 4 debentures of ` 500,000 each 4 debentures of ` 500,000 each 4 debentures of ` 500,000 each 50 debentures of ` 500,000 each 10 debentures of ` 500,000 each 5 debentures of ` 500,000 each 12 debentures of ` 500,000 each 2 debentures of ` 500,000 each 4 debentures of ` 500,000 each 52 debentures of ` 500,000 each 2 debentures of ` 500,000 each
26
Its grt 2b 25
Reports
Description 2 debentures of ` 500,000 each 2 debentures of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 5 debentures of ` 500,000 each 50 debentures of ` 500,000 each 3 debentures of ` 500,000 each 3 debentures of ` 500,000 each 1 debenture of ` 500,000 each 4 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 8 debentures of ` 500,000 each 2 debentures of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 1,000,000 each 1 debenture of ` 1,000,000 each 1 debenture of ` 1,000,000 each 1 debenture of ` 1,000,000 each 1 debenture of ` 1,000,000 each 1 debenture of ` 1,000,000 each 1 debenture of ` 1,000,000 each 1 debenture of ` 1,000,000 each 10 debentures of ` 1,000,000 each 1 debenture of ` 1,000,000 each 1 debenture of ` 1,000,000 each 1 debenture of ` 1,000,000 each 1 debenture of ` 1,000,000 each
As at As at 31st March 2011 31st March 2010 ` in lakhs ` in lakhs 10.00 10.00 10.00 5.00 10.00 25.00 250.00 15.00 15.00 5.00 20.00 5.00 5.00 40.00 10.00 10.00 5.00 5.00 10.00 5.00 5.00 5.00 10.00 10.00 5.00 10.00 5.00 10.00 5.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 100.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 5.00 10.00 25.00 250.00 15.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 100.00 10.00 10.00 10.00 10.00
27
Description 1 debenture of ` 1,000,000 each 1 debenture of ` 1,000,000 each 1 debenture of ` 1,000,000 each 4 debentures of ` 1,000,000 each 1 debenture of ` 1,000,000 each 1 debenture of ` 1,000,000 each 2 debentures of ` 1,000,000 each 2 debentures of ` 1,000,000 each 5 debentures of ` 1,000,000 each 1 debenture of ` 1,000,000 each 1 debenture of ` 1,000,000 each 1 debenture of ` 1,000,000 each 2 debentures of ` 1,000,000 each 2 debentures of ` 1,000,000 each 2 debentures of ` 1,000,000 each 5 debentures of ` 1,000,000 each 1 debenture of ` 1,000,000 each 1 debenture of ` 1,000,000 each 10 debentures of ` 1,000,000 each 2 debentures of ` 1,000,000 each 4 debentures of ` 1,000,000 each 1 debenture of ` 1,000,000 each 1 debenture of ` 1,000,000 each 1 debenture of ` 1,000,000 each 2 debentures of ` 1,000,000 each 1 debenture of ` 1,000,000 each 1 debenture of ` 1,000,000 each 1 debenture of ` 1,000,000 each 1 debenture of ` 1,000,000 each 1 debenture of ` 1,000,000 each 1 debenture of ` 1,000,000 each 2 debentures of ` 1,000,000 each 1 debenture of ` 1,000,000 each 1 debenture of ` 1,000,000 each 1 debenture of ` 1,000,000 each 1 debenture of ` 1,000,000 each 5 debentures of ` 1,000,000 each 1 debenture of ` 1,000,000 each 1 debenture of ` 1,000,000 each 2 debentures of ` 1,000,000 each 1 debenture of ` 1,000,000 each 10 debentures of ` 1,000,000 each
28
Its grt 2b 25
Reports
Description 1 debenture of ` 1,000,000 each 1 debenture of ` 1,000,000 each 6 debentures of ` 500,000 each 4 debentures of ` 500,000 each 4 debentures of ` 500,000 each 6 debentures of ` 500,000 each 6 debentures of ` 500,000 each 5 debentures of ` 500,000 each 10 debentures of ` 500,000 each 4 debentures of ` 500,000 each 4 debentures of ` 500,000 each 1 debenture of ` 500,000 each 3 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 3 debentures of ` 500,000 each 3 debentures of ` 500,000 each 3 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 2 debentures of ` 500,000 each 3 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each
As at As at 31st March 2011 31st March 2010 ` in lakhs ` in lakhs 10.00 10.00 30.00 20.00 20.00 30.00 30.00 25.00 50.00 20.00 20.00 5.00 15.00 5.00 10.00 5.00 15.00 15.00 15.00 5.00 10.00 10.00 5.00 10.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 10.00 10.00 15.00 5.00 5.00 5.00 10.00 5.00 10.00 10.00 -
29
Description 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 4 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 4 debentures of ` 500,000 each 2 debentures of ` 500,000 each 4 debentures of ` 500,000 each 3 debentures of ` 500,000 each 1 debenture of ` 500,000 each 20 debentures of ` 500,000 each 3 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 5 debentures of ` 500,000 each 20 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 4 debentures of ` 500,000 each 2 debentures of ` 500,000 each 2 debentures of ` 500,000 each 6 debentures of ` 500,000 each 3 debentures of ` 500,000 each 1 debenture of ` 500,000 each 4 debentures of ` 500,000 each 4 debentures of ` 500,000 each 6 debentures of ` 500,000 each 100 debentures of ` 500,000 each 160 debentures of ` 500,000 each 5 debentures of ` 500,000 each 8 debentures of ` 500,000 each 2 debentures of ` 500,000 each 62 debentures of ` 500,000 each 4 debentures of ` 500,000 each
As at As at 31st March 2011 31st March 2010 ` in lakhs ` in lakhs 5.00 5.00 5.00 5.00 5.00 5.00 5.00 20.00 5.00 5.00 5.00 5.00 5.00 20.00 10.00 20.00 15.00 5.00 100.00 15.00 5.00 10.00 25.00 100.00 5.00 10.00 20.00 10.00 10.00 30.00 15.00 5.00 20.00 20.00 30.00 500.00 800.00 25.00 40.00 10.00 310.00 20.00 20.00 10.00 20.00 15.00 5.00 100.00 15.00 5.00 10.00 25.00 100.00 5.00 10.00 20.00 10.00 10.00 30.00 15.00 5.00 20.00 20.00 30.00 500.00 800.00 -
30
Its grt 2b 25
Reports
Description 2 debentures of ` 500,000 each 100 debentures of ` 500,000 each 100 debentures of ` 500,000 each 2 debentures of ` 500,000 each 14 debentures of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 14 debentures of ` 500,000 each 10 debentures of ` 500,000 each 2 debentures of ` 500,000 each 10 debentures of ` 500,000 each 10 debentures of ` 500,000 each 10 debentures of ` 500,000 each 6 debentures of ` 500,000 each 20 debentures of ` 500,000 each 2 debentures of ` 500,000 each 50 debentures of ` 500,000 each 50 debentures of ` 500,000 each 10 debentures of ` 500,000 each 3 debentures of ` 500,000 each 20 debentures of ` 500,000 each 10 debentures of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 16 debentures of ` 500,000 each 5 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 4 debentures of ` 500,000 each 2 debentures of ` 500,000 each 5 debentures of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each
As at As at 31st March 2011 31st March 2010 ` in lakhs ` in lakhs 10.00 500.00 500.00 10.00 70.00 10.00 5.00 70.00 50.00 10.00 50.00 50.00 50.00 30.00 100.00 10.00 250.00 250.00 50.00 15.00 100.00 50.00 10.00 5.00 80.00 25.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 20.00 10.00 25.00 10.00 5.00 10.00 5.00 5.00 5.00 10.00 70.00 10.00 5.00 70.00 50.00 10.00 50.00 50.00 50.00 30.00 100.00 10.00 250.00 250.00 50.00 15.00 100.00 50.00 10.00 5.00 80.00 25.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 20.00 10.00 25.00 10.00 5.00 10.00 5.00 5.00 5.00
31
Description 1 debenture of ` 500,000 each 20 debentures of ` 500,000 each 5 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 2 debentures of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 4 debentures of ` 500,000 each 1 debenture of ` 500,000 each 5 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 5 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 200 debentures of ` 500,000 each 6 debentures of ` 500,000 each
As at As at 31st March 2011 31st March 2010 ` in lakhs ` in lakhs 5.00 100.00 25.00 5.00 5.00 10.00 5.00 5.00 5.00 10.00 5.00 5.00 10.00 10.00 10.00 5.00 10.00 5.00 5.00 5.00 5.00 10.00 5.00 10.00 5.00 5.00 5.00 20.00 5.00 25.00 5.00 5.00 5.00 5.00 5.00 25.00 5.00 10.00 5.00 5.00 1,000.00 30.00 5.00 100.00 25.00 5.00 5.00 10.00 5.00 5.00 5.00 10.00 5.00 5.00 10.00 10.00 10.00 5.00 10.00 5.00 5.00 5.00 5.00 10.00 5.00 10.00 5.00 5.00 5.00 20.00 5.00 25.00 5.00 5.00 5.00 5.00 5.00 25.00 5.00 10.00 5.00 5.00 -
32
Its grt 2b 25
Reports
Description 10 debentures of ` 500,000 each 46 debentures of ` 500,000 each 20 debentures of ` 500,000 each 20 debentures of ` 500,000 each 5 debentures of ` 500,000 each 100 debentures of ` 500,000 each 31 debentures of ` 500,000 each 31 debentures of ` 500,000 each 10 debentures of ` 500,000 each 5 debentures of ` 500,000 each 13 debentures of ` 500,000 each 10 debentures of ` 500,000 each 7 debentures of ` 500,000 each 7 debentures of ` 500,000 each 6 debentures of ` 500,000 each 10 debentures of ` 500,000 each 15 debentures of ` 500,000 each 40 debentures of ` 500,000 each 18 debentures of ` 500,000 each 18 debentures of ` 500,000 each 20 debentures of ` 500,000 each 17 debentures of ` 500,000 each 4 debentures of ` 500,000 each 8 debentures of ` 500,000 each 16 debentures of ` 500,000 each 4 debentures of ` 500,000 each 10 debentures of ` 500,000 each 10 debentures of ` 500,000 each 4 debentures of ` 500,000 each 32 debentures of ` 500,000 each 5 debentures of ` 500,000 each 8 debentures of ` 500,000 each 4 debentures of ` 500,000 each 5 debentures of ` 500,000 each 6 debentures of ` 500,000 each 10 debentures of ` 500,000 each 10 debentures of ` 500,000 each 4 debentures of ` 500,000 each 10 debentures of ` 500,000 each 40 debentures of ` 500,000 each 40 debentures of ` 500,000 each 40 debentures of ` 500,000 each
As at As at 31st March 2011 31st March 2010 ` in lakhs ` in lakhs 50.00 230.00 100.00 100.00 25.00 500.00 155.00 155.00 50.00 25.00 65.00 50.00 35.00 35.00 30.00 50.00 75.00 200.00 90.00 90.00 100.00 85.00 20.00 40.00 80.00 20.00 50.00 50.00 20.00 160.00 25.00 40.00 20.00 25.00 30.00 50.00 50.00 20.00 50.00 200.00 200.00 200.00 -
33
Description
As at As at 31st March 2011 31st March 2010 ` in lakhs ` in lakhs 50.00 50.00 100.00 55.00 55.00 75.00 10.00 20.00 25.00 15.00 100.00 25.00 20.00 20.00 150.00 30.00 20.00 50.00 70.00 15.00 20.00 50.00 50.00 1,360.00 10.00 10.00 25.00 65.00 80.00 20.00 10.00 10.00 50.00 170.00 50.00 35.00 30.00 10.00 100.00 25.00 100.00 50.00 -
10 debentures of ` 500,000 each 10 debentures of ` 500,000 each 20 debentures of ` 500,000 each 11 debentures of ` 500,000 each 11 debentures of ` 500,000 each 15 debentures of ` 500,000 each 2 debentures of ` 500,000 each 4 debentures of ` 500,000 each 5 debentures of ` 500,000 each 3 debentures of ` 500,000 each 20 debentures of ` 500,000 each 5 debentures of ` 500,000 each 4 debentures of ` 500,000 each 4 debentures of ` 500,000 each 30 debentures of ` 500,000 each 6 debentures of ` 500,000 each 4 debentures of ` 500,000 each 10 debentures of ` 500,000 each 14 debentures of ` 500,000 each 3 debentures of ` 500,000 each 4 debentures of ` 500,000 each 10 debentures of ` 500,000 each 10 debentures of ` 500,000 each 272 debentures of ` 500,000 each 2 debentures of ` 500,000 each 2 debentures of ` 500,000 each 5 debentures of ` 500,000 each 13 debentures of ` 500,000 each 16 debentures of ` 500,000 each 4 debentures of ` 500,000 each 2 debentures of ` 500,000 each 2 debentures of ` 500,000 each 10 debentures of ` 500,000 each 34 debentures of ` 500,000 each 10 debentures of ` 500,000 each 7 debentures of ` 500,000 each 6 debentures of ` 500,000 each 2 debentures of ` 500,000 each 20 debentures of ` 500,000 each 5 debentures of ` 500,000 each 20 debentures of ` 500,000 each 10 debentures of ` 500,000 each
34
Its grt 2b 25
Reports
Description 3 debentures of ` 500,000 each 5 debentures of ` 500,000 each 1 debenture of ` 500,000 each 10 debentures of ` 500,000 each 50 debentures of ` 500,000 each 10 debentures of ` 500,000 each 10 debentures of ` 500,000 each 6 debentures of ` 500,000 each 32 debentures of ` 500,000 each 28 debentures of ` 500,000 each 4 debentures of ` 500,000 each 4 debentures of ` 500,000 each 5 debentures of ` 500,000 each 10 debentures of ` 500,000 each 5 debentures of ` 500,000 each 10 debentures of ` 500,000 each 5 debentures of ` 500,000 each 13 debentures of ` 500,000 each 10 debentures of ` 500,000 each 10 debentures of ` 500,000 each 30 debentures of ` 500,000 each 12 debentures of ` 500,000 each 5 debentures of ` 500,000 each 4 debentures of ` 500,000 each 20 debentures of ` 500,000 each 10 debentures of ` 500,000 each 10 debentures of ` 500,000 each 10 debentures of ` 500,000 each 4 debentures of ` 500,000 each 14 debentures of ` 500,000 each 3 debentures of ` 500,000 each 3 debentures of ` 500,000 each 3 debentures of ` 500,000 each 25 debentures of ` 500,000 each 12 debentures of ` 500,000 each 10 debentures of ` 500,000 each 10 debentures of ` 500,000 each 40 debentures of ` 500,000 each 20 debentures of ` 500,000 each 5 debentures of ` 500,000 each 5 debentures of ` 500,000 each 8 debentures of ` 500,000 each
35
Description 15 debentures of ` 500,000 each 10 debentures of ` 500,000 each 5 debentures of ` 500,000 each 7 debentures of ` 500,000 each 10 debentures of ` 500,000 each 13 debentures of ` 500,000 each 60 debentures of ` 500,000 each 100 debentures of ` 500,000 each 30 debentures of ` 500,000 each 20 debentures of ` 500,000 each 8 debentures of ` 500,000 each 10 debentures of ` 500,000 each 4 debentures of ` 500,000 each 4 debentures of ` 500,000 each 50 debentures of ` 500,000 each 5 debentures of ` 500,000 each 8 debentures of ` 500,000 each 20 debentures of ` 500,000 each 2 debentures of ` 500,000 each 20 debentures of ` 500,000 each 5 debentures of ` 500,000 each 8 debentures of ` 500,000 each 8 debentures of ` 500,000 each 290 debentures of ` 500,000 each 150 debentures of ` 500,000 each 16 debentures of ` 500,000 each 5 debentures of ` 500,000 each 4 debentures of ` 500,000 each 10 debentures of ` 500,000 each 200 debentures of ` 500,000 each 4 debentures of ` 500,000 each 4 debentures of ` 500,000 each 5 debentures of ` 500,000 each 20 debentures of ` 500,000 each 10 debentures of ` 500,000 each 6 debentures of ` 500,000 each 4 debentures of ` 500,000 each 4 debentures of ` 500,000 each 10 debentures of ` 500,000 each 10 debentures of ` 500,000 each 5 debentures of ` 500,000 each 4 debentures of ` 500,000 each
As at As at 31st March 2011 31st March 2010 ` in lakhs ` in lakhs 75.00 50.00 25.00 35.00 50.00 65.00 300.00 500.00 150.00 100.00 40.00 50.00 20.00 20.00 250.00 25.00 40.00 100.00 10.00 100.00 25.00 40.00 40.00 1,450.00 750.00 80.00 25.00 20.00 50.00 1,000.00 20.00 20.00 25.00 100.00 50.00 30.00 20.00 20.00 50.00 50.00 25.00 20.00 -
36
Its grt 2b 25
Reports
Description
2 debentures of ` 500,000 each 15 debentures of ` 500,000 each 10 debentures of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 2 debentures of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 2 debentures of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 5 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 4 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 4 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 4 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each
37
Description 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 40 debentures of ` 500,000 each 1 debenture of ` 500,000 each 4 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 10 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 5 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 10 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 3 debentures of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 5 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 10 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each
38
Its grt 2b 25
Reports
Description 4 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 3 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 4 debentures of ` 500,000 each 2 debentures of ` 500,000 each 2 debentures of ` 500,000 each 2 debentures of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 6 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 5 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each
39
Description 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 5 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 4 debentures of ` 500,000 each 1 debenture of ` 500,000 each 10 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each
As at As at 31st March 2011 31st March 2010 ` in lakhs ` in lakhs 5.00 5.00 5.00 10.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 10.00 25.00 5.00 10.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 10.00 5.00 10.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 20.00 5.00 50.00 5.00 10.00 5.00 10.00 -
Earliest Put / Call Option Redemption Date Date 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014
40
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Description
As at As at 31st March 2011 31st March 2010 ` in lakhs ` in lakhs 10.00 5.00 30.00 20.00 5.00 5.00 10.00 5.00 10.00 15.00 5.00 5.00 5.00 5.00 5.00 10.00 32,865.00 12,430.00
Earliest Put / Call Option Redemption Date Date 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014 21-04-2014
2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 6 debentures of ` 500,000 each 4 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each 3 debentures of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 1 debenture of ` 500,000 each 2 debentures of ` 500,000 each
4) The details of Deep Discount Debentures are as under: Description face value of ` 150,000,000 issued at Rs 140,383,650 face value of ` 550,000,000 issued at Rs 481,891,850 face value of ` 600,000,000 issued at Rs 524,552,400 face value of ` 270,000,000 issued at Rs 250,803,810 face value of ` 270,000,000 issued at Rs 251,422,110 face value of ` 500,000,000 issued at Rs 452,089,500 face value of ` 500,000,000 issued at Rs 448,767,500 face value of ` 200,000,000 issued at Rs 179,485,000 face value of ` 400,000,000 issued at Rs 366,330,350 face value of ` 1,200,000,000 issued at Rs 1,016,499,600 face value of ` 150,000,000 issued at Rs 134,311,800 face value of ` 250,000,000 issued at Rs 219,683,750 face value of ` 22,000,000 issued at Rs 19,618,984 face value of ` 300,000,000 issued at Rs 268,455,600 face value of ` 500,000,000 issued at Rs 452,285,000 face value of ` 500,000,000 issued at Rs 433,961,000 face value of ` 360,000,000 issued at Rs 320,927,040 face value of ` 1,010,000,000 issued at Rs 898,786,880 face value of ` 90,000,000 issued at Rs 79,580,430 face value of ` 200,000,000 issued at Rs 176,993,200 face value of ` 500,000,000 issued at Rs 442,921,000 face value of ` 400,000,000 issued at Rs 349,719,600 As at 31st March 2011 ` in lakhs 5,483.97 5,970.07 2,684.50 2,685.00 4,958.14 4,930.56 1,970.34 3,921.17 11,692.13 1,454.11 2,423.17 207.39 2,774.49 4,578.30 4,680.49 3,239.04 9,054.07 809.06 1,796.73 4,487.82 3,614.79 As at 31st March 2010 ` in lakhs 1,407.52 5,492.77 5,088.29 4,618.58 4,588.08 1,841.46 3,177.33 10,800.28 1,349.43 2,255.26 Earliest Put / Call Option Date Redemption Date 18-03-2011 15-04-2011 25-04-2011 02-05-2011 02-05-2011 16-05-2011 14-06-2011 24-06-2011 28-07-2011 05-08-2011 08-09-2011 15-09-2011 12-01-2012 21-02-2012 22-02-2012 24-02-2012 23-04-2012 30-04-2012 03-05-2012 07-05-2012 07-05-2012 21-05-2012
Its grt 2b 25
41
Description face value of ` 750,000,000 issued at Rs 635,120,250 face value of ` 300,000,000 issued at Rs 246,296,350 face value of ` 300,000,000 issued at Rs 246,819,300 face value of ` 110,000,000 issued at Rs 95,383,640 face value of ` 750,000,000 issued at Rs 743,883,750 face value of ` 500,000,000 issued at Rs 420,641,500 face value of ` 60,000,000 issued at Rs 50,593,020 face value of ` 750,000,000 issued at Rs 743,550,000 face value of ` 350,000,000 issued at Rs 275,381,750
As at As at 31st March 2011 31st March 2010 ` in lakhs ` in lakhs 6,873.38 2,712.45 2,731.39 975.52 7,468.35 4,442.76 530.15 7,447.09 2,982.27 119,578.70 2,964.32 2,511.56 7,443.92 53,538.80
Earliest Put / Call Option Redemption Date Date 25-05-2012 28-05-2012 20-06-2012 09-07-2012 17-07-2012 27-08-2012 27-09-2012 19-04-2013 06-05-2013
5)
The short term and other loans and advances from banks are secured by way of hypothecation of receivables arising out of loan, lease and hire purchase, book debts and other current assets. 31st March 2011 ` in lakhs 31st March 2010 ` in lakhs
Notes Schedule 4 - Unsecured Loans Unsecured Redeemable Non-Convertible Debentures Unsecured Reedemable Non-Convertible Debentures Subordinated Debts Deep Discount Debentures Less : Discount not written off Short Term Loans : From Banks Commercial Paper From Banks Less : Discount not written off (Maximum amount outstanding during the year `7,500 lakhs, Previous year `5,000 lakhs) From Others Less : Discount not written off (Maximum amount outstanding during the year `254,500 lakhs, Previous year `185,100 lakhs) Inter Corporate Deposits Other Loans and Advances: From Banks Hire Purchase / Loan / Lease deposits (Including matured and unclaimed `4.47 lakhs, Previous year `7.19 lakhs) Book Overdraft from Banks Total 5 5 3 1&4 1&2
` in lakhs
9,500.00 32,610.00 7,500.00 7,500.00 378.30 7,121.70 154,250.00 4,300.26 149,949.74 400.00 575.75
75,920.00 8,910.00 14,290.00 458.30 13,831.70 7,500.00 5,000.00 206.89 4,793.11 185,100.00 4,430.27 180,669.73 1,350.00 54,693.50 264.18
21.81 207,679.00
347,932.22
Notes: 1) The Debentures are redeemable at par.The Non Convertible Debentures and Deep Discount Debentures are secured by way of a pari passu mortgage and charge in favour of the Debenture Trustees on the Companys immoveable property amounting to ` 18.07 lakhs and further covered by a negative lien to the extent of ` 9,500 lakhs (Previous year ` 124,197 lakhs) on specified receivables under auto finance of the Company
42
Its grt 2b 25
Reports
(2)
The details of Unsecured Reedemable Non Convertible Debentures are as under : As at As at 31st March 2011 31st March 2010 ` in lakhs ` in lakhs 2,500.00 3,000.00 2,500.00 1,500.00 9,500.00 500.00 2,500.00 2,500.00 1,500.00 120.00 2,500.00 300.00 7,000.00 1,000.00 2,500.00 200.00 2,500.00 1,500.00 1,500.00 100.00 1,000.00 3,700.00 3,500.00 800.00 2,000.00 1,500.00 2,500.00 2,700.00 1,500.00 1,000.00 2,000.00 500.00 5,000.00 2,500.00 2,500.00 2,500.00 5,000.00 2,500.00 3,000.00 2,500.00 1,500.00 75,920.00 Earliest Put / Call Option Redemption Date Date 05-04-2010 06-04-2010 07-04-2010 13-04-2010 15-04-2010 15-04-2010 19-04-2010 26-04-2010 30-04-2010 04-05-2010 05-05-2010 06-05-2010 14-05-2010 19-05-2010 21-06-2010 25-06-2010 25-06-2010 25-06-2010 25-06-2010 06-07-2010 12-07-2010 31-08-2010 07-09-2010 10-09-2010 21-09-2010 18-10-2010 10-11-2010 18-11-2010 09-12-2010 10-12-2010 21-12-2010 18-02-2011 29-08-2011 30-08-2011 01-09-2011 17-10-2011
Description 50 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 150 debentures of ` 1,000,000 each 12 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 30 debentures of ` 1,000,000 each 700 debentures of ` 1,000,000 each 100 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 20 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 150 debentures of ` 1,000,000 each 150 debentures of ` 1,000,000 each 10 debentures of ` 1,000,000 each 100 debentures of ` 1,000,000 each 370 debentures of ` 1,000,000 each 350 debentures of ` 1,000,000 each 80 debentures of ` 1,000,000 each 200 debentures of ` 1,000,000 each 150 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 270 debentures of ` 1,000,000 each 150 debentures of ` 1,000,000 each 100 debentures of ` 1,000,000 each 200 debentures of ` 1,000,000 each 50 debentures of ` 1,000,000 each 500 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 500 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 300 debentures of ` 1,000,000 each 250 debentures of ` 1,000,000 each 150 debentures of ` 1,000,000 each
Its grt 2b 25
43
3)
Subordinated Debts: These debentures are sub-ordinated to the existing and future unsecured borrowings of the Company and qualify as Tier II Capital under the Non Banking Financial (Non-Deposit Accepting Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007
Description 50 debentures of ` 1,000,000 each 4 debentures of Rs 1,000,000 each 25 debentures of Rs 1,000,000 each 10 debentures of Rs 1,000,000 each 5 debentures of Rs 1,000,000 each 7 debentures of Rs 1,000,000 each 15 debentures of Rs 1,000,000 each 10 debentures of Rs 1,000,000 each 18 debentures of Rs 1,000,000 each 11 debentures of Rs 1,000,000 each 100 debentures of Rs 1,000,000 each 12 debentures of Rs 1,000,000 each 8 debentures of Rs 1,000,000 each 10 debentures of Rs 1,000,000 each 30 debentures of Rs 1,000,000 each 1 debenture of Rs 1,000,000 each 10 debentures of Rs 1,000,000 each 20 debentures of Rs 1,000,000 each 10 debentures of Rs 1,000,000 each 4 debentures of Rs 1,000,000 each 10 debentures of Rs 1,000,000 each 5 debentures of Rs 1,000,000 each 2 debentures of Rs 1,000,000 each 2 debentures of Rs 1,000,000 each 1 debenture of Rs 1,000,000 each 5 debentures of Rs 1,000,000 each 6 debentures of Rs 1,000,000 each 10 debentures of Rs 1,000,000 each 1 debentures of Rs 1,000,000 each 4 debentures of Rs 1,000,000 each 1 debenture of Rs 1,000,000 each 6 debentures of Rs 1,000,000 each 3 debentures of Rs 1,000,000 each 1 debenture of Rs 1,000,000 each 3 debentures of Rs 1,000,000 each 5 debentures of Rs 1,000,000 each 6 debentures of Rs 1,000,000 each 1 debenture of Rs 1,000,000 each 4 debentures of Rs 1,000,000 each 4 debentures of Rs 1,000,000 each 3 debentures of Rs 1,000,000 each 50 debentures of Rs 1,000,000 each 2 debentures of Rs 1,000,000 each 2 debentures of Rs 1,000,000 each 5 debentures of Rs 1,000,000 each 10 debentures of Rs 1,000,000 each
As at As at 31st March 2011 31st March 2010 ` in lakhs ` in lakhs 500.00 40.00 250.00 100.00 50.00 70.00 150.00 100.00 180.00 110.00 1,000.00 120.00 80.00 100.00 300.00 10.00 100.00 200.00 100.00 40.00 100.00 50.00 20.00 20.00 10.00 50.00 60.00 100.00 10.00 40.00 10.00 60.00 30.00 10.00 30.00 50.00 60.00 10.00 40.00 40.00 30.00 500.00 20.00 20.00 50.00 100.00 500.00 40.00 250.00 100.00 50.00 70.00 150.00 100.00 180.00 110.00 1,000.00 120.00 80.00 100.00 300.00 10.00 100.00 200.00 100.00 40.00 100.00 50.00 20.00 20.00 10.00 50.00 60.00 100.00 10.00 40.00 10.00 60.00 30.00 10.00 30.00 50.00 60.00 10.00 40.00 40.00 30.00 500.00 20.00 20.00 50.00 100.00
Earliest Put / Call Option Redemption Date Date 23-04-2013 23-04-2013 23-04-2013 23-04-2013 16-07-2017 23-04-2018 23-04-2018 23-04-2018 23-04-2018 23-04-2018 23-04-2018 23-04-2018 23-04-2018 23-04-2018 16-06-2018 21-06-2018 21-06-2018 21-06-2018 07-08-2018 07-08-2018 07-08-2018 07-08-2018 07-08-2018 07-08-2018 07-08-2018 07-08-2018 07-08-2018 07-08-2018 07-08-2018 07-08-2018 07-08-2018 07-08-2018 07-08-2018 07-08-2018 07-08-2018 07-08-2018 07-08-2018 07-08-2018 07-08-2018 15-11-2018 15-11-2018 15-11-2018 15-11-2018 15-11-2018 15-11-2018 15-11-2018
44
Its grt 2b 25
Reports
Description 2 debentures of Rs 1,000,000 each 1 debenture of Rs 1,000,000 each 110 debenture of Rs 1,000,000 each 5 debentures of Rs 1,000,000 each 5 debentures of Rs 1,000,000 each 80 debentures of Rs 1,000,000 each 7 debentures of Rs 1,000,000 each 1 debenture of Rs 1,000,000 each 1 debenture of Rs 1,000,000 each 10 debenture of Rs 1,000,000 each 40 debenture of Rs 1,000,000 each 5 debentures of Rs 1,000,000 each 5 debentures of Rs 1,000,000 each 2 debentures of Rs 1,000,000 each 10 debenture of Rs 1,000,000 each 1 debenture of Rs 1,000,000 each 30 debenture of Rs 1,000,000 each 5 debentures of Rs 1,000,000 each 4 debentures of Rs 1,000,000 each 50 debentures of Rs 1,000,000 each 4 debentures of Rs 1,000,000 each 1 debenture of Rs 1,000,000 each 50 debentures of Rs 1,000,000 each 500 debentures of Rs 1,000,000 each 50 debentures of Rs 1,000,000 each 20 debentures of Rs 1,000,000 each 50 debentures of Rs 1,000,000 each 1 debenture of Rs 1,000,000 each 60 debentures of Rs 1,000,000 each 100 debentures of Rs 1,000,000 each 9 debentures of Rs 1,000,000 each 30 debentures of Rs 1,000,000 each 1500 debentures of Rs 1,000,000 each
As at As at 31st March 2011 31st March 2010 ` in lakhs ` in lakhs 20.00 10.00 1,100.00 50.00 50.00 800.00 70.00 10.00 10.00 100.00 400.00 50.00 50.00 20.00 100.00 10.00 300.00 50.00 40.00 500.00 40.00 10.00 500.00 5,000.00 500.00 200.00 500.00 10.00 600.00 1,000.00 90.00 300.00 15,000.00 32,610.00 20.00 10.00 1,100.00 50.00 50.00 800.00 70.00 10.00 10.00 100.00 400.00 50.00 50.00 20.00 100.00 10.00 300.00 50.00 40.00 500.00 40.00 10.00 8,910.00
Earliest Put / Call Option Redemption Date Date 15-11-2018 15-11-2018 15-11-2018 15-11-2018 15-11-2018 15-11-2018 15-11-2018 23-12-2018 23-12-2018 23-12-2018 23-12-2018 23-12-2018 23-12-2018 23-12-2018 23-12-2018 23-12-2018 30-12-2018 30-12-2018 30-12-2018 30-12-2018 30-12-2018 30-12-2018 30-08-2017 30-08-2017 30-08-2017 30-08-2017 30-11-2020 30-11-2020 30-11-2020 30-11-2020 30-11-2020 30-11-2020 23-04-2021
Description 4) The details of Deep Discount Debentures are as under: Unsecured, Reedemable Non Convertible Debenture of face value of ` 500,000,000 issued at ` 415,055,500 face value of ` 139,000,000 issued at ` 139,000,000 face value of ` 790,000,000 issued at ` 698,665,730
As at As at 31st March 2011 31st March 2010 ` in lakhs ` in lakhs
Earliest Put / Call Option Redemption Date Date
4,994.29 1,365.33 7,472.08 13,831.70
05-04-2010 11-06-2010 10-12-2010
5)
The short term and other loans and advances from Banks/Financial Institution/Corporates are covered by a negative lien on specified receivables under auto finance of the Company in favour of the banks/financial institution/corporates.
Its grt 2b 25
45
Schedule 5 - Fixed Assets ` in lakhs Gross Block Depreciation/Amortisation Net Block
46
Deductions 8.74 29.26 0.94 17.93 56.87 3,516.24 623.42 171.39 49.82 744.99 2,771.25 167.51 97.65 19.63 117.28 50.23 162.10 44.86 39.28 13.08 71.06 91.04 106.53 69.86 2,818.50 50.13 40.98 3.77 0.94 43.81 6.32 1.76 353.52 268.28 42.32 28.30 282.30 71.22 36.15 180.35 129.22 21.64 7.50 143.36 36.99 44.00 2,602.63 42.43 44.75 87.18 2,515.45 2,560.20 As at 31-03-2011 For the year Deductions As at 01-04-2010 As at 31-03-2011 As at 31-03-2011 As at 31-03-2010 15.87 78.35 8.33 28.64 131.19 131.19 64.40 2,584.57 3,481.22 522.24 176.46 54.61 644.09 56.87 3,555.54 644.09 184.49 49.82 778.76 39.30 20.67 13.10 33.77 5.53 2,776.78 2,837.13 18.63 2,837.13
Descriptions
As at 01-04-2010
Additions
Buildings
2,602.63
Office Equipment
173.22
Computers
304.43
Furniture & Fixtures
42.74
Vehicles
151.39
Leasehold Improvements
167.51
3,441.92
Intangible Assets
Software
39.30
Total
3,481.22
Previous year
829.33
2,716.29
Capital Work in progress
Previous year
2,584.57
Its grt 2b 25
Reports
Schedule forming part of the Balance Sheet (Continued)

Face Value ` SCHEDULE 6 - INVESTMENTS Long term Investments - (at cost) (Non trade, unquoted) In equity shares - fully paid Kotak Mahindra Old Mutual Life Insurance Limited (company under the same management) Phoenix ARC Private Limited ACE Derivatives and Commodity Exchange Limited (Formerly known as Ahmedabad Commodity Exchange Limited) (includes 11,022,747 shares under lock in till 12 Aug 13) Equifax Credit Information Services Private Limited Investment in units of Venture Capital Fund Kotak India Real Estate Fund - I Investment in units of Mutual fund HDFC Debt Fund for Cancer Cure Current Investments (Non trade, unquoted) In Redeemable Non Convertible Debentures - fully paid Century Real Estate Holdings Private Limited Rohan Builders & Developers Private Limited Puravankara Projects Limited Lodha Dwellers Private Limited Universal Buildwell Private Limited (*) New Era Dwellers & Construction Private Limited (*) Total Notes : 1) For Shares/Units purchased and sold during the year refer Note No.II (F) of Schedule 17 31st March 2011 ` in lakhs 2) 3) Aggregate value of unquoted investments At cost / net asset value (*) Pending receipt of Debenture Certificate / Demat Credit 37,758.61 31st March 2010 ` in lakhs 11,370.87 10,000,000 10,000,000 10,000,000 10,000,000 1,000,000 10,000,000 20 50 75 65 241 25 2,000.00 5,000.00 7,237.50 6,500.00 2,231.48 2,500.00 37,758.61 11,370.87 10 10 10 54,000,000 31,500,000 18,734,838 54,000,000 31,500,000 9,297,486 5,400.00 3,150.17 2,069.04 5,400.00 3,150.17 1,000.61 31st March 2011 Quantity 31st March 2010 31st March 2011 ` in lakhs 31st March 2010
10 100,000 10
7,500,000 870 500,000
5,000,000 1,320
750.00 870.42 50.00
500.00 1,320.09
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` in lakhs Schedule 7 - Deferred Tax Assets Depreciation Provision for doubtful debts, advances and receivables Provision for employee benefits Provision for MTM on embedded options Provision for interest on debentures Unamortised income Expenditure allowed on payment basis Others 1,113.49 3,043.84 175.15 340.33 343.19 687.35 1.71 5.10 5,710.16 Liabilities Unamortised expense 1,786.82 1,786.82 Total Schedule 8 - Current Assets, Loans and Advances a) b) Interest accrued on Investments Cash and Bank Balances Cash on hand Bank balances (with scheduled banks) i) ii) Current accounts Fixed deposits (includes lodged with government department `8.79 lakhs (Previous year `8.79 lakhs) and with a bank as credit collateral `764.02 lakhs (Previous year `1292.78 lakhs) and as liquidity facility `43.35 lakhs (Previous year `55.38 lakhs) on assignment of receivables c) Receivables under Financing Activity Secured - considered good Hire Purchase - Vehicles Loans - Vehicles Leases Loans against Securities Corporate Loans Other Loans Installments and Other dues from Borrowers 25.15 742,214.88 9,351.60 107,539.92 205,464.65 98.58 3,065.00 4.89 612,700.53 2,245.78 102,754.12 73,638.99 121.59 5,602.97 12,578.15 816.17 20,458.73 1,356.96 782.81 667.78 525.65 3,923.34 3,365.50 1,586.62 1,586.62 1,334.90 3,064.30 104.61 119.70 62.49 259.97 1.71 4.44 4,952.12 31st March 2011 ` in lakhs 31st March 2010 ` in lakhs
14,177.13
22,483.47
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` in lakhs Secured - considered doubtful Loans - Vehicles Corporate Loans Other Loans Installments and Other dues from Borrowers Unsecured - considered good Loans - Vehicle Dealers Personal Loans Installments and Other dues from Borrowers Unsecured - considered doubtful Personal Loans Installments and Other dues from Borrowers 165.96 3,872.67 1,120,806.53 Less: Provision for doubtful receivables 6,307.78 1,114,498.75 d) Other Loans and Advances Unsecured - Considered Good (unless otherwise stated) Advances recoverable in cash or in kind or for value to be received Less: Provision for doubtful debts 16,923.72 13.15 16,910.57 Advance payment of taxes and tax deducted at source (net) Security deposit for premises 1,205.27 85.55 18,201.39 Total i) ii) iii) iv) 1,147,402.92 13,830.21 18.74 13,811.47 700.83 66.75 14,579.05 868,159.31 1,899.13 2,424.34 837,866.09 6,769.30 831,096.79 7,070.81 39,368.03 300.13 3,497.27 29,301.73 1,228.92 707.79 272.59 10.95 1,277.82 905.81 278.79 1,261.23 31st March 2011 ` in lakhs 31st March 2010 ` in lakhs
Secured means exposures secured by hypothecation of vehicles, and / or, pledge of securities and / or, equitable mortgage of property and / or, undertaking to create a security / personal guarantees. The above receivables of vehicles and installment dues from borrowers includes `241.02 lakhs (Previous year `538.70 lakhs) being receivables and installment on vehicles repossessed, necessary provision for which is made. Refer Schedule 10 for Provision for standard assets Details of Gross Investment, unearned finance income and present value of rentals under Hire Purchase and Lease
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31st March 2011 ` in lakhs Gross Investment (a) (b) not later than 1 year between 1 and 5 years 3,258.15 8,544.53 11,802.68 Unearned Finance Income (a) (b) not later than 1 year between 1 and 5 years 1,053.78 1,372.15 2,425.93 Present value of rentals (a) (b) not later than 1 year between 1 and 5 years 2,204.37 7,172.38 9,376.75 v) vi) Also refer Note No.II (L) of Schedule 17 Unsecured - Considered Good Other Loans and advances include 31-03-2011 ` in lakhs Maximum Outstanding Due from companies under the same management Kotak Mahindra Old Mutual Life Insurance Limited Kotak Securities Limited Kotak Mahindra Asset Management Co. Limited Kotak Mahindra Investments Limited 29.40 991.19 0.27 0.06 10.78 17.97 29.40 991.19 0.34 0.06 29.40 991.19 31-03-2011 ` in lakhs Outstanding 31-03-2010 ` in lakhs Maximum Outstanding 31-03-2010 ` in lakhs Outstanding 515.11 1,735.56 2,250.67 264.82 395.08 659.90 779.93 2,130.64 2,910.57 31st March 2010 ` in lakhs
Schedule 9 - Liabilities Sundry creditors : Total outstanding dues of micro enterprises and small enterprises Total outstanding dues of creditors other than micro enterprises and small enterprises Interest accrued but not due on loans Advances received against hire purchase / loan / lease agreements Other liabilities Embedded Option Liability Total 30,546.70 13,523.33 723.18 73.54 4,945.86 49,812.61 22,265.52 10,690.59 980.33 77.90 1,874.61 35,888.95
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31st March 2011 ` in lakhs Schedule 10 - Provisions Provision for gratuity Provision for compensated absences Provision for standard assets Provision for FBT (net) Provision for Income Tax (net) Proposed Dividend Corporate Dividend Tax Total 303.32 212.13 2,842.42 4.15 2,053.83 0.08 0.01 5,415.94 158.68 156.25 2,436.92 4.15 4,199.26 6,955.26 31st March 2010 ` in lakhs
Year ended 31st March 2011 ` in lakhs SCHEDULE 11 - INCOME FROM OPERATIONS Lease rentals Less: Capital Recovery 2,108.08 1,423.06 685.02 Income from Hire Purchase / Loans etc. (Tax deducted at source `291.77 lakhs Previous year `344.62 lakhs) Income from Wholesale Trade Advances (Tax deducted at source `522.40 lakhs Previous year `885.72 lakhs) Income from fee based activities (Tax deducted at source `74.00 lakhs Previous year `40.88 lakhs) Income from Loans against securities (Tax deducted at source `616.73 lakhs Previous year `1,033.65 lakhs) Profit on trading in securities (Refer Note No.II (G) of Schedule 17) Income from securitisation of receivables Income from assignment of receivables Income from Corporate Loans (Tax deducted at source `2,079.50 lakhs Previous year `1,114.64 lakhs) Income on recovery of Non-Performing Assets Total 80,403.03 9,725.62
Year ended 31st March 2010 ` in lakhs
715.52 538.97 176.55 65,733.33 8,069.78
1,314.57 11,646.71 9.21 1,177.13 155.80 27,288.54 43.50 132,449.13
1,060.17 9,476.31 149.44 421.27 226.66 11,255.77 33.06 96,602.34
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Year ended 31st March 2011 ` in lakhs Schedule 12 - Other Income Dividend on current investments Profit on sale of current investments (Net) Profit / (Loss) on sale of long term investments (Net) Net Distribution from venture capital funds Realised Profit on Index Derivatives (Net) Interest (Gross) : On debentures / deposits /advances etc. (Tax deducted at source ` 45.34 lakhs Previous year `33.54 lakhs) Profit on sale of fixed assets (Net) Sundry Creditors written back Other Miscellaneous Income (Net) (Includes interest on Income Tax refunds ` Nil Previous year `78.05 lakhs) (Tax deducted at source `53.79 lakhs Previous year `76.68 lakhs) (Refer Note No.II (M)(b)(ii) and (iii) of Schedule 17) Total 4,026.95 2,603.40 1,139.62 7.12 368.43 442.95 242.89 4.33 287.83 472.68 722.12 (0.36) 1,022.84 324.23 5.81 389.82 0.75 1,199.29 Year ended 31st March 2010 ` in lakhs
SCHEDULE 13 - PAYMENTS TO AND PROVISIONS FOR EMPLOYEES Salaries, Allowances and Bonus Contribution to Employees Provident Fund Provision for Gratuity Staff Welfare expenses Total 3,877.37 167.03 150.18 136.22 4,330.80 3,148.94 121.52 39.59 115.56 3,425.61
Schedule 14 - Interest and Finance Charges a) Interest On Debentures Term borrowings Inter-Corporate Deposit Commercial Paper Others b) c) Total Bank and other finance charges Interest Rate Swap (net) 32,693.76 20,002.40 112.76 13,859.74 360.96 121.34 105.27 67,256.23 29,757.66 13,523.90 111.51 6,286.96 57.89 225.48 355.76 50,319.16
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Year ended 31st March 2011 ` in lakhs Schedule 15 - Administrative and Other Expenses Travelling and Conveyance Professional fees Auditors Remuneration: Audit Fees In any other manner: Limited Review, Certification Work etc. Out of pocket expenses Brokerage and Commission Software Expenses Office Expenses Electricity Expenses Common Establishment Expenses - Reimbursements Telephone,Telex and Postage Data Processing Expenses Rent and licence fees for premises (Refer Note No.II (M)(a)(ii) of Schedule 17) Advertisement Expenses Maintenance Expenses Insurance Expenses Printing and Stationery Rates and Taxes Business Promotion expenses Miscellaneous Expenses Total 24.80 0.07 58.87 5,984.68 8.08 112.10 122.19 466.75 295.12 60.00 568.63 314.24 222.06 8.19 214.23 270.66 240.24 283.23 14,090.92 10.30 0.19 40.49 5,117.31 1.89 106.99 110.36 320.93 281.29 60.00 555.08 187.02 188.45 7.27 184.94 192.52 197.11 349.06 11,568.47 34.00 30.00 295.15 4,566.50 228.63 3,439.13 Year ended 31st March 2010 ` in lakhs
` in lakhs Schedule 16 - Provisions / Write Offs for Non Performing / Other Assets Loss on sale of repossessed vehicles/termination of contracts under financing activity (Net) (Net gain on sale of lease assets `8.69 lakhs, Previous year `1.74 lakhs) Provision for doubtful receivables Less: provision in respect of earlier years no longer required Provision for standard assets Provision for Mark to Market on derivatives Write offs recovered Total 2,050.31 2,517.40
1,806.06
4,461.54
5,421.82 2,987.83 (467.09) 405.50 1,050.45 (369.71) 2,425.21 2,433.99 703.39 471.90 (242.07) 7,828.75 Its grt 2b 25
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SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2011 SCHEDULE 17 - SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO THE ACCOUNTS I. SIGNIFICANT ACCOUNTING POLICIES: A. BASIS OF ACCOUNTING The Financial Statements have been prepared on historical cost basis of accounting. The company adopts the accrual system of accounting and the financial statements conform with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006, the guidelines issued by the Reserve Bank of India for Non-Banking Financial Companies, the generally accepted accounting principles prevailing in India and the relevant provisions of the Companies Act, 1956. The preparation of financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Actual results could differ from these estimates. B. REVENUE RECOGNITION i. Auto Finance Income (including service charges, incentives) is accounted for by using the internal rate of return method to provide a constant periodic rate of return after adjustment of brokerage expenses on the net investment outstanding on the contract. The volume-based incentives and brokerage are accounted as and when the said volumes are achieved. Income also includes gains made on termination of contracts. The profit on account of securitisation of assets at the time of sale computed based on the difference between the sale consideration and the book value of the securitised asset is amortised over the tenure of the securities issued. Loss on account of securitisation of assets is charged off immediately to profit and loss account. Gain on account of assignment of assets on bilateral basis is recognised, based on the difference between the book value of the assigned assets and sale consideration received. In respect of non performing assets acquired from other banks / NBFCs / Financial Institutions / Companies, collections in excess of the consideration paid for acquisition at each asset level is treated as income. Interest income is recognised on accrual basis except in case of non-performing assets where it is recognised, upon realisation, as per RBI guidelines. Overdue/ penal interest is recognised as income on realisation. Fees and commission income are recognised when due. Dividend income is accounted on an accrual basis when the Company's right to receive the dividend is established.
ii.
iii. iv. v. vi. vii. C.
FIXED ASSETS AND INTANGIBLE ASSETS i. ii. All the fixed assets have been stated at cost inclusive of incidental expenses less accumulated depreciation / amortization. The Company adopts the Straight Line Method of depreciation / amortization so as to write off 100% of the cost of the assets at rates higher than those prescribed under Schedule XIV to the Companies Act, 1956 based on the Management's estimate of the useful lives of all the assets. Estimated useful lives over which assets are depreciated / amortized are as follows: Computers Office Equipment Furniture and Fixtures Vehicles Premises Leasehold Improvements Software (including development) expenditure iii. 3 years 5 years 6 years 4 years 58 years Over the period of lease subject to a maximum of 6 years 3 years
Depreciation on assets whose cost does not exceed `5,000/- is fully provided in the year of purchase.
D.
INVESTMENTS Investments are classified into long term investments and current investments. Investments which are intended to be held for more than one year, are classified as long term investments and investments, which are intended to be held for less than one year, are classified as current investments. Long term investments are accounted at cost and any decline in value, other than temporary is provided for. Current investments are valued at cost (calculated by applying weighted average cost method) or fair value whichever is lower. Brokerage, stamping and additional charges paid are included in the cost of investments. In case of investments in units of mutual fund, the net asset value is considered as the fair value.
E.
EMPLOYEE BENEFITS i. Provident Fund - Defined Contribution Plan Contribution as required by the Statute made to the Government Provident Fund is debited to the Profit and Loss Account.
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ii.
Gratuity - Defined Benefit Plan The Company accounts for the liability for future gratuity benefits based on an actuarial valuation as at the balance sheet date conducted by an independent actuary. The gratuity obligation is wholly unfunded. The net present value of the Company's obligation towards the same is actuarially determined based on the projected unit credit method as at the Balance Sheet date. Actuarial gains/losses are immediately recognised in the profit and loss account and are not deferred. Compensated Absences - Other Long-Term Employee Benefits The Company accrues the liability for compensated absences based on the actuarial valuation as at the balance sheet date conducted by an independent actuary. The net present value of the Company's obligation is determined based on the projected unit credit method as at the Balance Sheet date.
iii. iv.
v.
Other Employee Benefits The undiscounted amount of employee benefits expected to be paid in exchange for the services rendered by employees is recognised during the period when the employee renders the service. These benefits include performance incentives.
F.
EMPLOYEE STOCK OPTION SCHEME Cash-settled scheme The cost of cash-settled scheme (stock appreciation rights) is measured initially using intrinsic value method at the grant date taking into account the terms and conditions upon which the instruments were granted. This intrinsic value is amortised on a straight-line basis over the vesting period with a recognition of corresponding liability. This liability is remeasured at each balance sheet date up to and including the settlement date with changes in intrinsic value recognised in profit and loss account in 'Payments to and provisions for employees'. FOREIGN CURRENCY TRANSACTIONS Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Monetary items denominated in foreign currencies are restated at the exchange rate prevailing on the balance sheet date. Exchange differences arising on settlement of the transaction and on account of restatement of monetary items are dealt with in the Profit and Loss Account. In case of items which are covered by forward exchange contracts entered to hedge the foreign currency risk, the difference between the year end rate and the rate on the date of the contract is recognized as exchange difference and the premium paid on forward contracts is recognized over the life of the contract. DISCOUNTED INSTRUMENTS The liability is recognised at face value at the time of issuance of discounted instruments. The discount on the issue is amortised over the tenure of the instrument. TAXES ON INCOME The Income Tax expense comprises Current tax and Deferred tax. Current tax is measured at the amount expected to be paid in respect of taxable income for the year in accordance with the Income tax Act, 1961. Deferred tax adjustments comprises of changes in the deferred tax assets and liabilities. Deferred tax assets and liabilities are recognised for the future tax consequences of timing differences being the difference between taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted before the balance sheet date. Changes in deferred tax assets / liabilities on account of changes in enacted tax rates are given effect to in the Profit and Loss Account in the period of change. The carrying amount of deferred tax assets are reviewed at each balance sheet date. Deferred tax assets on account of timing differences are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. SERVICE TAX The Cenvat (Central Value Added Tax) in respect of service tax is accounted on accrual basis on eligible services. The balance of cenvat credit is reviewed at the end of each year and amount estimated to be unutilised is charged to the profit and loss account for the year. BORROWING COST Borrowing costs are recognised as an expense in the period in which they are incurred. DERIVATIVE TRANSACTIONS The derivative transactions comprising of Interest rate swaps, equity index / stock futures and Options are considered off balance sheet items. Interest rate / Currency swaps The outstanding swap trades at the reporting date are disclosed at the contract amount. The swaps which are in the nature of hedges and are accounted on an accrual basis; these transactions are not marked to market. Accrued interest is adjusted against the interest cost/income of the underlying liability/asset. The foreign currency balances on account of principal of currency swaps outstanding as at the Balance Sheet date are revalued using the closing rate.
G.
H.
I.
J.
K. L.
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Currency options The outstanding Option trades, in the nature of hedge, at the Balance Sheet date are disclosed at revalued amount using the closing exchange rate. The premium paid is amortised over the life of the contract. Embedded Derivatives and Equity Index Derivatives Initial Margin - Index Derivative Instrument representing the initial margin paid and /or additional margin paid over and above the initial margin, for entering into contracts for equity index futures, which are released on final settlement / squaring - up of the underlying contracts, are included under Loans and Advances. "Deposit for Mark to Market Margin - Index Derivative Instrument" representing the deposit paid in respect of mark to market margin is included under Loans and Advances. On final settlement or squaring up of contracts for equity index derivatives, the realised profit or loss after adjusting the unrealized loss already accounted, if any, is recognised in the profit and loss account and shown as realised profit / (loss) on index derivatives. When more than one contract in respect of the relevant series of equity index futures to which the squared-up contract pertains is outstanding at the time of the squaring-up of the contract, the contract price of the contract so squared-up is determined using the weighted average cost method for calculating the profit/loss on squaring-up. Outstanding derivative contracts are measured at fair value as at each balance sheet date. Fair value of derivatives is determined using quoted market prices for that instrument wherever available, as the best evidence of fair value is a quoted price in an actively traded market. In the absence of quoted market prices in an actively traded market a valuation technique is used to determine fair value. In most cases valuation techniques use as input parameters observable market data in order to ensure reliability of the fair value measure. The mark to market on derivative contracts is determined on a portfolio basis with net unrealized losses being recognised in profit and loss account. Net unrealized gains are not recognised in profit and loss account on grounds of prudence as enunciated in Accounting Standard - 1 Disclosure of Accounting Policies. M. STRUCTURED LIABILITIES The Company has issued structured liabilities wherein the return on these liabilities is linked to non interest benchmarks; these liabilities are stated at net present value. Such structured liabilities have an embedded derivative which is the non interest related return component. The embedded derivative is separated and accounted separately. (Refer accounting policy on Derivative Transactions No. K) The resultant debt component of such structured liabilities is recognised in the Balance Sheet under loans and is measured at amortised cost using yield to maturity basis. STOCK IN TRADE Securities held as Stock-in-trade are valued at cost or market value, whichever is lower. On sale of stock in trade, profit or loss is determined using weighted average cost method. ADVANCES Advances are classified into standard, sub-standard, doubtful and loss assets in accordance with the RBI guidelines and are stated net of provisions made towards non-performing assets. Provision for non-performing assets comprising sub-standard, doubtful and loss assets is made in accordance with the RBI guidelines. In addition, the Company adopts an approach to provisioning that is based on the past experience, realisation of security, erosion over time in value of security and other related factors. Amounts paid for acquiring non performing assets from other banks / NBFCs / Financial Institutions / Companies are considered as advances. In accordance with RBI guidelines, such assets are treated as "standard" for a period of 90 days from the date of purchase. Thereafter actual collections received on such non performing assets are compared with cash flows estimated while purchasing the asset to ascertain default. If the default is in excess of 180 days, then the assets are classified into sub-standard, doubtful and loss as required by the guidelines on purchase / sale of non performing assets issued by the Reserve Bank of India. P. PROVISION / CONTINGENT LIABILITIES AND CONTINGENT ASSETS Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements. PREMIUM ON REDEMPTION OF PREFERENCE SHARES Premium on redemption of preference shares is to be adjusted against Securities Premium Account at the time of redemption. SEGMENTAL ACCOUNTING The following accounting policies have been followed for segment reporting: i. ii. iii. Segment Revenue includes Contract Receipts and other income directly identifiable with / allocable to the segment. Expenses that are directly identifiable with / allocable to segments are considered for determining the Segment Results. The expenses which relate to the Company as a whole and not allocable to segments are included under Unallocable expenses. Segment assets and liabilities include those directly identifiable with the respective segments. Unallocable corporate assets and liabilities represent the assets and liabilities that relate to the Company as a whole and not allocable to any segment. Unallocated assets mainly comprise Advance payment of taxes and tax deducted at source (net of provision for taxation). Unallocable liabilities include Deferred tax, Provision for retirement benefits and Other liabilities.
N.
O.
Q. R.
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S.
LEASES Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term, are classified as operating leases. Operating lease payments are recognised as an expense in the Profit and Loss account on a straight-line basis over the lease term. Operating lease receipts are recognised as an income in the Profit and Loss account on accrual basis. Assets given under a finance lease are recognised as a receivable at an amount equal to the net investment in the lease.
T.
IMPAIRMENT OF ASSETS An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in estimate of recoverable amount.
II.
NOTES TO THE ACCOUNTS A. Contingent Liabilities i. Claims against the Company not acknowledged as debts in case of suits filed by various customers with respect to release of repossessed vehicles and related matters amounting to `30.44 lakhs (Previous year `13.15 lakhs) against which bank guarantees of `2.15 lakhs have been furnished (Previous year `15.31 lakhs). The Company has preferred an appeal against the same with State / National Consumer Dispute Redressal Forum. Credit collateral of `764.02 lakhs (Previous year ` 1,292.78 lakhs) in respect of assignment of receivables to which the assignee has recourse. The Company has received a demand of `304.18 lakhs (Previous year `244.16 lakhs) [including interest of `126.20 lakhs (Previous year `12.85 lakhs)], on completion of income tax assessment for the assessment year 2007-08 and 2009-10. The said amount is disputed and the company has preferred an appeal against the same. The amounts for the same have been paid to the credit of the central government. In the previous year the company had received a demand of ` 80.72 lakhs from Collector of Stamps, Government of Maharashtra under the Bombay Stamp Act, 1958 for stamp duty for the period 2006-07. The said amount was disputed and the company had preferred an appeal against the same. During the year the order has been passed in favour of the Company by the Chief Controlling Revenue Authority, Maharashtra State, Pune.
ii. iii.
iv.
B.
In terms of a Joint Venture agreement entered into by the company with Kotak Mahindra Bank Limited, Old Mutual Financial Services (UK) Plc and Kotak Mahindra Capital Company Limited, the company has acquired a 10.58% (Previous year 10.58%) ownership interest in Kotak Mahindra Old Mutual Life Insurance Limited (incorporated in India) which falls under the category of Jointly Controlled Entity as per Accounting Standard 27 Financial Reporting of Interests in Joint Ventures issued by the Institute of Chartered Accountants of India and notified under the Companies (Accounting Standards) Rules, 2006. Aggregate amounts of assets, liabilities, income and expenses related to the interest in the jointly controlled entities based on the accounts for the year ended 31st March 2011 31-03-2011 ` in lakhs (Unaudited) Assets Liabilities Income Expenses 93,604.24 89,268.88 38,322.48 37,267.88 31-03-2010 ` in lakhs (Unaudited) 73,696.82 70,445.87 41,557.40 40,824.85
C.
Managerial remuneration under Section 198 of the Companies Act 1956 to a Manager for the year 31-03-2011 ` in lakhs Salaries and Incentives Contribution to Provident Fund Employee Stock Option Plan (Refer note N below) Perquisites in cash or in kind Total 111.98 3.84 8.09 0.67 124.58 31-03-2010 ` in lakhs 55.46 3.12 6.43 0.42 65.43
Note: Provision for gratuity benefits and compensated absences, which is based on actuarial valuation done on an overall basis for the company is excluded in the remuneration shown above D. Disclosure regarding Derivative Transactions : The Company has entered into Interest Rate Swaps / Currency Interest Rate Swaps in the nature of 'Fixed / floating' or 'Floating / fixed' for varying maturities linked to various benchmarks as well as foreign currency option and forward exchange contracts for asset liability management and hedging. The notional principal amount of ` 37,683.21 lakhs is outstanding as at the year end (Previous year ` 74,385.85 lakhs). Its grt 2b 25
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All the foreign currency borrowing of the company of USD 84,500,985 (` 37,683.21 lakhs (Previous year ` 64,385.85 lakhs)) are hedged against foreign currency risk as under: 1. 2. 3. USD 84,500,985 (` 37,683.21 lakhs (Previous year ` 55,131.80 lakhs)) 3 contracts by way of Currency Swaps USD Nil (` Nil (Previous year ` 7,009.30 lakhs)) 3 contracts by way of Forward Exchange Contracts USD Nil (` Nil (Previous year ` 2,244.75 lakhs)) 1 contract by way of Foreign Currency Option. Expiration Date No. of contracts Open long position (No. of units) 58,000 3,650
Open interest in index futures Index Futures As at 31st March 2011 S & P CNX Nifty As at 31st March 2010 S & P CNX Nifty Outstanding Option Contracts Option As at 31st March 2011 S & P CNX Nifty S & P CNX Nifty S & P CNX Nifty S & P CNX Nifty As at 31st March 2010 S & P CNX Nifty S & P CNX Nifty S & P CNX Nifty 30 June 2011 30 June 2011 28 June 2012 Short Long Short 50,000 26,300 50,000 30 June 2011 28 June 2012 27 December 2012 27 December 2012 Long Short Short Long 76,300 50,000 300,000 300,000 Expiration Date Nature of position No. of units 29 April 2010 73 28 April 2011 1,160
E.
The margin of Rs 1400.56 lakhs (Previous year ` 581.25 lakhs) on the above positions in the form of Cash / Deposits has been placed with the Trading Member. The company enters into index derivatives for the purpose of covering benchmark returns on structured liabilities. Details of non performing financial assets purchased 31-03-2011 ` in crores No. of accounts purchased during the year Aggregate Outstanding NIL 0.99 31-03-2010 ` in crores NIL 1.22
F.
Investments: The company has purchased and sold during the year the following investments: 31-03-2011 Quantity Mutual Fund Kotak Liquid (Institutional Premium) - Growth Kotak Floater Long Term - Growth Reliance Liquid Fund Treasury Plan Institutional - Growth Reliance Money Manager Fund - Institutional Growth Reliance Liquidity Fund - Growth HDFC Cash Management Fund Savings Plan - Growth HDFC Cash Management Fund Treasury Advantage Plan - Growth ICICI Prudential Liquid Plan Super Institutional - Growth ICICI Prudential Floating Rate Plan C - Growth ICICI Prudential Flexible Income Plan Premium - Growth 171,680,464 243,505.00 2,766,001 174,754 558,749 37,50.25 250.03 950.20 215,572,652 6,916,791 43,180.62 1400.17 7,053,124 3,740,711 1,350.00 750.08 5,896,865,559 523,256,507 215,042,774 63,670 819,276,040 1,140,301.34 77428.41 50,153.30 800.09 118,543.00 4,010,391,601 859,860,238 31,322,012 72,376 735,983.12 122,473.41 7,000.23 900.09 ` in lakhs 31-03-2010 Quantity ` in lakhs
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Reports
31-03-2011 Quantity Birla Sun Life Cash Plus Institutional Premium - Growth Birla Sun Life Savings Fund Institutional - Growth Equity Shares Aban Offshore Limited Aurobindo Pharma Limited Axis Bank Limited Bank of Baroda Bartronics India Limited BGR Energy Systems Limited Bharat Electronics Limited Cadila Healthcare Limited Crompton Greaves Limited Dishman Pharma & Chem Ltd Educomp Solutions Limited Everonn Systems India Limited Gammon Infra Projects Limited India Infoline Limited Indiabulls Real Estate Limited Infrastructure Dev Fin Co Limited IRB Infra Dev Limited IVRCL Infra & Projects Limited Jain irrigation System Limited Jaiprakash Associates LIC Housing Finance Limited Lupin Limited Mcleod Russel India Limited Mindtree Limited NIIT Limited NIIT Technologies Limited Nitin Fire Protection Ind Limited NMDC Limited NTPC Limited Onmobile Global Limited Orient Paper & Ind Limited Power Finance Corp Limited Punj Lloyd Limited Sintex Industries Limited Tech Mahindra Limited Titagarh Wagons Limited Welspun Guj Stahl Rohren Ltd 1,877,078,867 88,573,696 289,223.00 15,850.75 ` in lakhs
31-03-2010 Quantity ` in lakhs 3,850.00 750.08 134.13 104.91 610.55 333.14 150.31 63.81 133.19 24.90 229.67 54.59 681.54 67.36 51.19 248.19 116.8 96.29 864.37 449.69 493.81 255.62 548.98 222.79 224.24 307.83 180.43 91.63 31.04 76.84 2,499.96 465.58 26.79 118.85 173.94 169.58 73.17 259.03 119.14
26,216,747 4,324,428 10,000 11,000 61,000 60,000 90,000 12,000 6,500 3,570 80,000 27,753 94,000 16,944 200,000 195,000 75,000 60,000 405,144 157,671 64,886 155,000 76,786 15,384 90,000 47,774 263,917 51,571 9,500 15,000 1,243,760 110,544 50,000 47,000 68,038 75,000 10,000 60,000 45,000
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59
G.
Quantitative information in respect of Trading in Securities The company has purchased and sold during the year the following investments: 31-03-2011 Quantity Opening Stock Bonds and other securities Total (A) Purchases Bonds and other securities Total (B) Sales Bonds and other securities Total (C) Closing Stock Bonds and other securities Total (C) Profit on Trading (A+B-C-D) 9.22 149.45 1,900 1,900 19,009.22 19,009.22 261,630 261,630 38,372.20 38,372.20 1,900 1,900 19,000.00 19,000.00 261,630 261,630 38,222.75 38,222.75 ` in lakhs 31-03-2010 Quantity ` in lakhs
H.
Earnings Per Share (EPS) - The numerators and denominators used to calculate Basic and Diluted Earnings Per Share : 31-03-2011 In lakhs Profit after tax (A) Proposed Dividend on Preference Shares (including Corporate Dividend Tax) (B) Profit attributable to the Equity Shareholders (`) - (A - B = C) Basic/Weighted average number of Equity Shares outstanding during the year - (D) Diluted number of Equity Shares outstanding during the year Nominal value of Equity Shares (`) Basic and Diluted Earnings per share (`) - (C) / (D) 31,786.27 0.09 31,786.18 3,495,200 3,495,200 10 909.42 31-03-2010 In lakhs 16,641.22 16,641.22 3,262,539 3,262,539 10 510.07
I. J. K.
Expenditure in foreign currency on interest is `4,295.86 lakhs (Previous year ` 3,412.88 lakhs), Professional fees `1.38 lakhs (Previous year ` Nil) and Travelling expenses ` Nil (Previous year `0.33 lakhs). Prior period items (Provisions / Write offs for Non Performing / Other Assets) ` Nil (Previous year `197.68 lakhs). The Company has not received any intimation from "suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been given. The company is in the business of vehicle financing. The company enters into finance lease agreements ranging between one to five years. The accumulated provision for uncollectible minimum lease/hire purchase payments receivable is `2.00 lakhs (Previous Year `4.23 lakhs)
L.
M.
The company has taken various premises under operating lease and has sub let some of them. (a) Where the Company is a lessee (i) The company has taken various offices, residential and godown premises under operating lease or leave and licence agreements. These are generally cancellable and range between 11 months and 9 years under leave and licence agreement and are renewable by mutual consent on mutually agreeable terms. Lease payments recognised in the statement of Profit and Loss Account under 'Rent and licence fees for Premises' in Schedule-15 `556.62 lakhs (Previous year `552.91 lakhs). The future minimum lease payments under non-cancellable operating lease - not later than one year : ` 18.47 lakhs (Previous year ` 44.33 lakhs) later than one year and not later than five years: ` Nil (Previous year `18.47 lakhs) (b) Where the Company is a lessor / sub-lessor (i) The company has sublet some of the premises under operating lease. These are generally cancellable and are renewable by mutual consent on mutually agreeable terms.
(ii) (iii)
60
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(ii) (iii) N.
The lease income recognised in the profit and loss account under Other Miscellaneous Income' in Schedule-12 is `378.00 lakhs (Previous year ` 283.50 lakhs). The sub-lease income recognised in the profit and loss account under 'Other Miscellaneous Income' in Schedule-12 is `53.12 lakhs (Previous year `56.50 lakhs).
Equity-settled options At the General Meetings of the holding company, Kotak Mahindra Bank Limited, ("the Bank"), the shareholders of the Bank had unanimously passed Special Resolutions on 28th July 2000, 26th July 2004, 26th July 2005, 5th July 2007 and 21st August 2007 to grant options to the Eligible Employees of the Bank and its subsidiary companies. Pursuant to these resolutions, the following four Employee Stock Option Scheme ("Scheme") had been formulated and adopted: Kotak Mahindra Equity Option Scheme 2001-02 Kotak Mahindra Equity Option Scheme 2002-03 Kotak Mahindra Equity Option Scheme 2005 Kotak Mahindra Equity Option Scheme 2007 Consequent to the above, the Bank has granted stock options to employees of the Company In accordance with the SEBI Guidelines and the guidance note on "Accounting for Employee Share based payments", the excess, if any, of the market price of the share, preceding the date of grant of the option under ESOSs over the exercise price of the option is amortised on a straight-line basis over the vesting period. The Company has reimbursed the Bank `37.15 lakhs (Previous year `11.68 lakhs) during the year on account of such costs and the same is forming part of Employee costs and included under the head "Salaries, allowances and bonus" under Schedule 13. Had the company recorded the compensation cost computed on the basis of Fair Valuation method instead of Intrinsic Value method, employee compensation cost would have been higher by `75.06 lakhs (Previous year `58.07 lakhs) and the profit after tax would have been lower by `50.13lakhs (Previous year `38.33 lakhs). On account of the same, the basic and diluted EPS of the company would have been lower by `1.43 per share (Previous year `1.18 per share). Stock Appreciation Rights During the year, the management had approved SARs to be granted to eligible employees as and when deemed fit. The SARs are to be settled in cash and will vest in the manner as provided in the scheme/ grant letters to employees. The contractual life (which is equivalent to the vesting period) of the SARs ranges from 0.47 to 1.38 years. Detail of activity under SARs is summarised below: No. of SARs Outstanding at the beginning of the year Granted during the year Exercised during the year Expired during the year Forfeited during the year Outstanding at the end of the year The number of SARs have been adjusted for split of the underlying equity shares from `10 paid up to `5 paid up per share. Effect of share based payment to employees on the profit and loss account and on its financial position 31-03-2011 In lakhs Total Employee Compensation Cost pertaining to share based payment plans Closing balance of liability for cash settled options 70.71 11.84 31-03-2010 In lakhs 11.68 31-03-2011 8,740 4,370 4,370
O.
Employee Benefits. Reconciliation of opening and closing balance of the present value of the defined benefit obligation for gratuity benefits is given below. ` in lakhs 31-03-2011 Change in Unfunded benefit obligations Opening Present value of unfunded benefit obligations Service cost Interest cost Past Service Cost Benefits paid Liabilities assumed on acquisition / settled on divestiture Actuarial (gain)/loss on obligations Closing Present value of unfunded benefit obligations 158.68 31.65 14.30 68.60 (12.98) 7.44 35.63 303.32 132.87 28.85 10.88 (9.40) (4.38) (0.14) 158.68 Its grt 2b 25 31-03-2010
61
` in lakhs 31-03-2011 Cost recognised for the period Current service cost Interest cost Actuarial (gain)/loss Past Service Cost Net gratuity cost Actuarial assumptions used 31-03-2011 Discount rate Salary escalation rate 8.26% p.a. 15% p.a. for first 2 years 10% p.a. for next 2 years & 6% p.a. thereafter 31-03-2010 8.01% p.a. 15% p.a. for first 2 years 10% p.a. for next 2 years & 6% p.a. thereafter 31.65 14.30 35.63 68.60 150.18 28.85 10.88 (0.14) 39.59 31-03-2010
The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market. Experience adjustment Gratuity Year ended 31st March 2011 Defined benefit obligation Plan assets Surplus / (deficit) Experience adjustments on plan liabilities Experience adjustments on plan assets 303.32 (303.32) 27.97 2010 158.68 (158.68) 0.39 2009 132.87 (132.87) (3.24) 2008 121.31 (121.31) 16.09 2007 96.42 (96.42) 30.29 ` in lakhs
Gratuity benefit is based on the actuarial valuation done as on 31st March 2011, which has been relied upon by the auditors. Gratuity In accordance with Payment of Gratuity Act, the Company provides for gratuity, a defined benefit retirement plan covering all employees. The plan provides a lump sum payment to vested employees at retirement or termination of employment based on the respective employee's salary and the years of employment with the Company subject to maximum of `10.00 lakhs (Previous year ` 3.50 lakhs) per employee. The gratuity benefit is provided through unfunded plan and annual contributions are charged to profit and loss account. Under the scheme, the settlement obligation remains with the Company Provident fund In accordance with Indian regulations, employees of the Company are entitled to receive benefits under the provident fund, a defined contribution plan, in which, both the employee and the Company contribute monthly at a determined rate. These contributions are made to a recognised provident fund. The employee contributes 12% of his or her basic salary and the Company contributes an equal amount. Accumulated Compensated Absences The leave encashment on separation is paid on basic salary. P. Assets De-recognised Securitisation Book value of advances securitised Number of accounts Sale consideration received for the accounts securitised Gain on securitisation amortised Credit enhancement, liquidity support provided Nature of post securitisation support 31-03-2011 ` in lakhs 251,388 20 253,856.63 1,177.13 NIL Collection and paying agent or servicer 31-03-2010 ` in lakhs 115,754 9 116,583.94 421.27 NIL Collection and paying agent or servicer
62
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Reports
31-03-2011 Assets De-recognised on Assignment of Receivables bilaterally with Banks and Corporates Q. 13,400.51
31-03-2010 3,719.09
As per the Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007, the company is considered to be systemically important non-deposit taking non-banking finance company. Accordingly, the company is required to comply with the norms for Concentration of Credit / Investment as well as maintain the Capital adequacy ratio. While there is no specific requirement to maintain capital adequacy on financial derivatives, the company has followed the rules prescribed in this regard, for Banking companies. Segmental Reporting : In accordance with Accounting Standard 17 on Segment reporting issued by the Institute of Chartered Accountants of India, the Company has identified three business segments i.e. Vehicle Financing, Other lending activities and Treasury and Investments as primary segments and one Geographical Segment i.e. India as secondary segment. Vehicle Financing includes Retail and Wholesale trade finance. Other Lending activities include financing against securities, securitisation and other loans / fee based services. Treasury and Investment activities include proprietary trading in securities. Segments have been identified and reported taking into account the nature of product and services, the differing risks and returns and the internal financial reporting system. 31-03-2011 Vehicle Financing ` in lakhs Segment Revenue Income from external customers Income from inter segment Total Revenue Segment Result Add: Unallocated income Less: Unallocated expenses Less: Income tax (including deferred tax) Net Profit Other Information Carrying amount of segment assets Unallocated corporate assets Total Assets Carrying amount of segment liabilities Unallocated corporate liabilities Total Liabilities Cost to acquire fixed assets Depreciation / Amortisation Non cash expenses other than depreciation 900,539.34 127.79 175.94 (349.36) 98,850.73 3.40 8.55 488.29 792,582.53 900,539.34 348,417.35 98,850.73 792,582.53 348,417.35 45,733.16 1,186,733.04 654,859.44 5,128.61 45,733.16 1,191,861.65 654,859.44 36,066.96 1,035,457.03 649,369.85 2,647.06 36,066.96 1,038,104.09 649,369.85 1,050.45 131.19 184.49 1,189.38 131.16 162.78 1,547.36 106,763.7 0.57 13.68 1,651.39 202,687.67 106,763.70 202,687.67 24,119.38 881,666.49 4,066.31 24,119.38 885,732.81 13,031.64 769,165.19 4,596.24 13,031.64 773,761.43 471.90 131.73 176.46 3,670.65 92,164.69 92,164.69 25,945.84 42,705.02 42,705.02 21,290.82 1,606.37 1,606.37 951.77 136,476.08 136,476.08 48,188.43 16,402.16 31,786.27 76,390.86 76,390.86 20,167.45 21,233.02 21,233.02 6,017.75 1,581.86 1,581.86 (297.91) 99,205.74 99,205.74 25,887.29 9,246.07 16,641.22 Other Lending Treasury and activities/fee Investment based services activities ` in lakhs ` in lakhs Total Vehicle Financing ` in lakhs 31-03-2010 Other Lending activities/fee based services ` in lakhs Treasury and Investment activities ` in lakhs Total
R.
` in lakhs
` in lakhs
Its grt 2b 25
63
S.
Related Party Disclosures : Parties where control exists: Holding Company
Kotak Mahindra Bank Limited holds 51% of the share capital Uday S. Kotak along with relatives and entities controlled by him holds 45.56% of the equity share capital of Kotak Mahindra Bank Limited as on 31st March 2011. Kotak Mahindra Capital Company Limited Kotak Securities Limited (also an associate company) Kotak Mahindra Asset Management Company Limited Kotak Mahindra Investments Limited Kotak Mahindra Old Mutual Life Insurance Limited Kotak Investment Advisors Limited Mr. Uday Kotak, Non Executive Chairman Mr. Sumit Bali CEO and Manager Kotak Mahindra Old Mutual Life Insurance Limited - Joint Venture with Kotak Mahindra Bank Limited, Old Mutual Financial Services (UK) plc and Kotak Mahindra Capital Company Limited
Other related parties: Fellow Subsidiaries
Key Management Personnel Joint Venture
T.
Phoenix ARC Private Limited ACE Derivatives and Commodity Exchange Limited (from 12th August 2010 to 30thMarch 2011) Enterprises over which Director/ Aero Agencies Limited relatives/ Key Management Personnel Infina Finance Private Limited have significant influence Komaf Financial Services Limited Mutual Fund / Venture Capital Fund Kotak Mahindra Mutual Fund managed by fellow subsidiary Managed by fellow subsidiary Kotak Mahindra Asset Management Company Limited Kotak Real Estate Fund and India Growth Fund Managed by fellow subsidiary - Kotak Investment Advisors Limited Schedule to the Balance Sheet of a non-banking financial company (as required in terms of paragraph 13 of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007) (` in lakhs) 31-03-2011 Particulars Liabilities side: (1) Loans and advances availed by the NBFCs inclusive of interest accrued thereon but not paid: (a) Debentures : : Secured Unsecured (other than falling within the meaning of public deposits*) 436,513 9,500 NIL 346,205 400 157,072 NIL 576 32,610 NIL NIL NIL NIL NIL NIL NIL NIL NIL Amount Outstanding 31-03-2010 Amount Overdue
Others: Associate Company
(b) (c) (d) (e) (f)
Deferred Credits Term Loans Inter-corporate loans and borrowing Commercial Paper Other Loans Debenture Application Money Security Deposits from customers Tier II Debentures * Please see Note 1 below
Assets side: Amount Outstanding (2) Break-up of Loans and Advances including bills receivables [other than those included in (3) below:] (a) (b) Secured Unsecured 166,447 57,870
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(Amount in ` lakhs) (3) Break up of Leased Assets and stock on hire and other assets counting towards AFC activities (net of provision) (i) Lease assets including lease rentals under sundry debtors (a) (b) (ii) (a) (b) (a) (b) (4) Financial lease Operating lease Assets on hire Repossessed Assets Loans where assets have been repossessed Loans other than (a) above 9,352 NIL 25 NIL 241 898,765
Stock on hire including hire charges under sundry debtors:
(iii) Other loans counting towards AFC activities
Break-up of Investments : Current Investments : 1. Quoted : (i) (ii) (iii) (iv) (v) 2. (i) (ii) (iii) (iv) (v) 1. Shares : (a) Equity (b) Preference Debentures and Bonds Units of mutual funds Government Securities Others Shares : (a) Equity (b) Preference Debentures and Bonds Units of mutual funds Government Securities Others NIL NIL NIL NIL NIL NIL NIL NIL 25,469 NIL NIL NIL
Unquoted :
Long Term investments : Quoted : (i) (ii) (iii) (iv) (v) 2. (i) (ii) (iii) (iv) (v) Shares : (a) Equity (b) Preference Debentures and Bonds Units of mutual funds Government Securities Others Shares : (a) Equity (b) Preference Debentures and Bonds Units of mutual funds Government Securities Others - Units of Kotak India Real Estate Fund NIL NIL NIL NIL NIL NIL 11,369 NIL NIL 50 NIL 871
Unquoted :
Its grt 2b 25
65
(Amount in ` lakhs) (5) Borrower group-wise classification of assets financed as in (2) and (3) above Please see Note 2 below Category Secured 1. Related Parties ** (a) (b) (c) 2. (6) Total Investor group-wise classification of all investments (current and long term) in shares and securities (both quoted and unquoted): Please see note 3 below Category 1. Related Parties ** (a) (b) (c) 2. Total ** As per Accounting Standard of ICAI (Please see Note 3) (7) Other information Particulars (i) Gross Non-Performing Assets (a) (b) (ii) (a) (b) Related parties Other than related parties Related parties Other than related parties NIL 9,434 NIL 3,126 NIL Amount Subsidiaries Companies in the same Group Other related parties NIL 5,400 4,021 28,338 37,759 NIL 5,400 4,021 28,338 37,759 Market Value / Break up or fair value or NAV Book Value (Net of Provisions) Subsidiaries Companies in the same Group Other related parties NIL NIL NIL 1,067,760 1,067,760 NIL 29 5 64,906 64,940 NIL 29 5 1,132,666 1,132,700 Amount net of provisions Unsecured Total
Other than related parties
Other than related parties
Net Non-Performing Assets
(iii) Assets acquired in satisfaction of debt
U.
Notes: 1. As defined in Paragraph 2(1)(xii) of the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998. 2. Provisioning norms shall be applicable as prescribed in Non-Banking Financial (Non deposit accepting or holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 3. All Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 and Guidance Notes issued by ICAI (also refer Schedule 17 (B)(iii)) are applicable including for valuation of investments and other assets as also assets acquired in satisfaction of debt. However, market value in respect of quoted investments and break up/fair value/NAV in respect of unquoted investments should be disclosed irrespective of whether they are classified as long term or current in column (4) above. Disclosures pursuant to Guidelines for NBFC-ND-SI vide circular no NBS(PD).CC.No.125/03.05.002/2008-2009 dated 1st August 2008 CRAR Items (i) (ii) (iii) CRAR (%) CRAR - Tier I Capital (%) CRAR - Tier II Capital (%) Current Year 15.52 12.60 2.92 Previous Year 13.70 12.50 1.20
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Exposure to Real Estate Sector Category (a) Direct Exposure (i) Residential Mortgages Lending fully secured by mortgages on residential property that is or will be occupied by the borrower or that is rented (ii) Commercial Real Estate Lending secured by mortgages on commercial real estates (office buildings, retails space, multipurpose commercial premises, multi-family residential buildings, multi-tenanted commercial premises, industrial or warehouse space, hotels, land acquisition, development and construction, etc). (iii) Investments in Mortgage Backed Securities (MBS) and other securitized exposures a. b. (b) Residential Commercial Real Estate Current Year Previous Year
12,416,980,033
4.777,616,745
Indirect Exposure Fund based and non-fund based exposures on National Housing Bank (NHB) and Housing Finance Companies (HFCs)
Asset Liability Management Maturity Pattern of Certain items of Assets and Liabilities (` In crores) 1 Day to 30/31 Days (One Month Liabilities Borrowings from banks Market Borrowings Assets Advances Investments V. 1,805 459 528 1,635 2,170 255 3,738 727 83 123 11,145 378 230 671 506 225 462 300 971 1352 1,146 1942 1,829 21 25 149 4,074 5,755 Over one Month to 2 Months Over 2 Months upto 3 Months Over 3 Months upto 6 Months Over 6 Months upto 1 Year Over 1 Year upto 3 Years Over 3 Years upto 5 Years Over 5 Years Total
Comparative financial information is presented in accordance with the 'Corresponding Figure' financial reporting framework set out in Auditing and Assurance Standard on Comparatives. Accordingly, amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements, and are to be read in relation to the amounts and other disclosures relating to the current year. Figures of the previous year have been regrouped / reclassified wherever necessary to correspond with the figures of the current financial year.
Its grt 2b 25
67
The following transactions were carried out with related parties in the ordinary course of business: ` in lakhs Holding Company Fellow Subsidiaries Associate Company Key Management Personnel Enterprises over which Mutual Fund/ Venture Director/Relatives/Key Capital Fund managed Management Personel by Fellow Subsidiary have significant influence Total
68
(23.33) (23.33) 100.00 (23.33) (23.33) 50.00 25.00 25.00 100.00 50.00 25.00 25.00 9,900.00 (8,725.42) 4,950.00 2,475.00 2,475.00 (8,725.42) 5,000.00 (20,000.00) 9,900.00 (8,725.42) 4,950.00 2,475.00 2,475.00 (8,725.42) 27,500.00 (9,000.00) 7,500.00 (1,000.00) 20,000.00 (5,500.00) (2,500.00) 32,500.00 (29,000.00) 7,500.00 (1,000.00) 20,000.00 (5,500.00) (2,500.00) 8,500.00 (19,500.00) 1,500.00 (3,000.00) (1,500.00) 2,500.00 (15,000.00) 4,500.00 8,500.00 (19,500.00) 1,500.00 (3,000.00) (1,500.00) 2,500.00 (15,000.00) 4,500.00
Nature of transaction
Equity shares issued
Kotak Securities Limited
Preference shares issued
Kotak Mahindra Capital Company Limited
Kotak Mahindra Asset Management Co Limited
Kotak Investment Advisors Limited
Premium received on issue of equity / preference shares
Non Convertible Debentures issued / purchased
Kotak Mahindra Old Mutual Life Insurance Ltd
Non Convertible Debentures Redeemed /sold
Kotak Mahindra Investments Limited
Holding Company
Fellow Subsidiaries
Associate Company
Key Management Personnel
Enterprises over which Director/Relatives/Key Management Personel have significant influence
Mutual Fund/ Venture Capital Fund managed by Fellow Subsidiary
Total
Its grt 2b 25
Non Convertible Debentures Outstanding
20,000.00 (20,000.00)
Kotak Mahindra Old Mutual Life Insurance Ltd 397.91 (397.40)
29,000.00 (12,500.00) 6,000.00 (2,500.00) 23,000.00 (5,500.00) (4,500.00)
49,000.00 (32,500.00) 6,000.00 (2,500.00) 23,000.00 (5,500.00) (4,500.00)
Interest payable on debenture issued
727.81 (437.06) 332.78 (67.04) 395.03 (164.71) (205.31)
1,125.72 (834.46) 332.78 (67.04) 395.03 (164.71) (205.31) 5,000.00 5,000.00 2,434.23 2,434.23 (22,500.00) (22,500.00)
Commercial Paper issued
Schedules
Kotak Mahindra Old Mutual Life Insurance Ltd 2,434.23 2,434.23 (22,500.00) (22,500.00) 47.62 (91.56)
5,000.00 5,000.00
Commercial Paper outstanding (net of unamortised discount) Kotak Mahindra Old Mutual Life Insurance Ltd
Term Loans obtained
Term Loans repaid
Outstandings Payables
47.62 (91.56)
Demat charges Payable
Reports
Kotak Securities Limited (2,610.04) 2,896.33 (3,719.09)
0.001 (0.004) 0.001 (0.004)
0.001 (0.004) 0.001 (0.004) (2,610.04)
Sale of Debentures
Assignment of Receivables
Its grt 2b 25
504.18 504.18
3,400.51 (3,719.09) 504.18
69
70
Holding Company Fellow Subsidiaries Associate Company Key Management Personnel (5,000.00) 5,000.00 (25,000.00) 449.67 (116.80) 1,022.84 (0.75) 1,217,729.74 (858,456.53) 1,218,211.14 (858,722.48) 481.39 (265.95) (1,884.00) (1,884.00) 99.36 99.36 644.30 644.30 807.37 (1,348.16) 1,022.84 (0.75) 1,217,729.74 (858,456.53) 1,218,211.14 (858,722.48) 481.39 (265.95) (1,884.00) (1,884.00) 99.36 99.36 644.30 644.30 449.67 (116.80) Enterprises over which Mutual Fund/ Venture Director/Relatives/Key Capital Fund managed Management Personel by Fellow Subsidiary have significant influence Total (5,000.00) 5,000.00 (25,000.00) 3.82 (370.88) 3.82 (370.88) 811.19 (1,719.04) 3.82 (370.88) 0.95 (0.75) 0.95 (0.75) 0.10 (0.10) 10.00 (22.50) 10.00 (22.50) 10.10 (22.60) 10.00 (22.50) (180.46) 10,419.97 (18,526.70) (180.46) 10,419.97 (18,526.70)
Interest Rate Swaps (Off Balance Sheet) Contracts for Interest Rate Swaps settled during the year (Off Balance Sheet)
Redemption of units of Kotak Real Estate Fund
Income on units of Kotak Real Estate Fund
Purchases of units of Kotak Mahindra Mutual Fund
Sales of units of Kotak Mahindra Mutual Fund
Profit on sale of units of Kotak Mahindra Mutual Fund
Purchase of equity shares
(of Phoenix ARC Private Limited)
Sale of equity shares (of ACE Derivatives and Commodities Exchange Ltd) Kotak Mahindra Investments Limited
Purchase of equity shares (of ACE Derivatives and Commodities Exchange Ltd) Komaf Financial Services Ltd
Term Deposits placed
Interest receivable on Term deposits (net of TDS)
Deposits
Premium payable on Interest Rate Swaps
Bank Balance in Current/OD Account
Holding Company
Fellow Subsidiaries
Associate Company
Total
Its grt 2b 25
Outstandings Receivables
3.87 (0.39)
0.45
Kotak Securities Limited 0.45 230.11 (170.85)
14.92 (602.62) 0.78 (4.80) 14.14 (597.82)
19.24 (603.01) 0.78 (4.80) 14.14 (597.82) 0.45
Interest received on Term Deposits
Kotak Securities Limited 110.81 (226.31)
(31.61) (31.61)
230.11 (202.46) (31.61)
Profit on Assignment of KMP Receivables
Kotak Mahindra Investments Limited 0.35 (0.35)
42.38 42.38
153.19 (226.31) 42.38
Miscellaneous Income
Schedules
Kotak Mahindra Investments Limited (45.68)
0.35 0.35
0.70 (0.35) 0.35 (45.68)
Profit on Sale of Debentures
Fee based income
Kotak Mahindra Old Mutual Life Insurance Ltd 429.86 (338.73)
28.42 (141.30) 28.42 (141.30)
28.42 (141.30) 28.42 (141.30)
License fees received
Kotak Mahindra Asset Management Co Limited 0.36 0.36 92.84 (342.47) 59.64 (21.93) (1,169.97)
1.27 (1.27) 1.27 (1.27)
431.13 (340.00) 1.27 (1.27)
Loss on Sale of Shares (of ACE Derivatives and Commodities Exchange Ltd) Kotak Mahindra Investments Limited
Reports
0.36 0.36 92.84 (342.47) 59.64 (21.93) (1,169.97)
Interest Rate Swaps Payments
Interest on CC
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Interest on Term Loan
71
72
Holding Company Fellow Subsidiaries Associate Company Key Management Personnel Enterprises over which Director/Relatives/Key Management Personel have significant influence Mutual Fund/ Venture Capital Fund managed by Fellow Subsidiary Total 87.83 (21.62) 87.83 (21.62) 1,634.00 (713.87) 87.83 (21.62) 87.83 (21.62) 1,242.47 (1,254.38) 489.43 (219.76) (54.97) 656.23 (640.19) 96.81 (339.46) 2,876.47 (1,968.25) 489.43 (219.76) (54.97) 656.23 (640.19) 96.81 (339.46) 158.52 158.52 60.00 (60.00) 452.35 (307.68) 158.52 158.52 60.00 (60.00) 14.40 (13.25) 14.40 (13.25) 466.75 (320.93) 14.40 (13.25) 1.16 (1.28) 690.00 (44.57) 457.93 (412.96) 1.16 (1.28) 690.00 (44.57) 457.93 (412.96) 2.94 (2.10) 2.94 (2.10) 2.94 (2.10) 2.94 (2.10) 1.36 (37.15) 1.36 (37.15) 39.06 (75.27) (0.05) 0.45 1.36 (37.15) 1.36 (37.15) 5.49 (0.61) 0.07 (0.10) 45.00 (75.93) 0.07 (0.10)
Brokerage paid
Interest on debentures paid
Discount amortised on commercial paper
Data Processing Expenses
Common Establishment Expenses Reimbursed
Guest House Charges paid
Fee based expense (net of service tax)
License fees paid
Insurance Premium paid
Cost of travel tickets purchased
Aero Agencies Limited
Expense reimbursement by other company
Holding Company
Fellow Subsidiaries
Associate Company
Total
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Kotak Mahindra Old Mutual Life Insurance Ltd 0.45 526.99 (349.29)
2.59 0.12 (0.51) 2.71
2.59 0.12 (0.51) 2.71 0.45
Expense reimbursement to other company
Kotak Mahindra Investments Limited 2.37 2.01 (4.17) 3.75
1.67 (1.67) 1.67 (1.67)
528.66 (350.96) 1.67 (1.67) 2.37 2.01 (4.17) 3.75
Reimbursement to Other Company Purchase of Assets
Reimbursement by Other Company Sale of Assets
Schedules
Guarantees given
Remuneration to key management personnel*
Sumit Bali
124.58 (65.43) 124.58 (65.43)
124.58 (65.43) 124.58 (65.43)
* Excludes provision for gratuity and compensated absences, since it is based on actuarial valuation done on an overall basis.
Reports
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73
W. Balance Sheet Abstract and Company's general business profile as per Part IV, Schedule VI of the Companies Act, 1956.
I.
Registration Details Registration No. Balance Sheet Date 1 1 3 1 9 3 7 7 3 0 State Code 1 1
2 0 1 1
II.
Capital raised during the year: (Amount in ` Thousand) Public Issue N Bonus Issue N I L I L Rights Issue N Private Placement 1 0 0 0 0 I L
III.
Position of mobilisation and deployment of funds: (Amount in ` Thousand) Total Liabilities 1 1 9 1 8 6 1 6 5 Source of Funds Paid-up Capital 4 4 9 5 2 Secured Loans 7 7 5 1 9 6 5 4 Deferred Tax Liability N I L Application of Funds Net Fixed Assets 2 7 7 6 7 8 Net Current Assets 1 0 9 2 1 7 4 3 7 Accumulated Losses N I L Investments 3 7 7 5 8 6 1 Miscellaneous Expenditure N Deferred Tax Asset 3 9 2 3 3 4 I L Reserves and Surplus 1 5 3 3 0 8 0 4 Unsecured Loans 2 0 7 6 7 9 0 0 Total Assets 1 1 9 1 8 6 1 6 5
IV.
Performance of Company: (Amount in ` Thousand) Turnover / Income 1 3 6 4 7 6 0 8 Profit/(Loss) before Tax 4 8 1 8 8 4 3 Earnings per Share (in `) 9 0 9 . 4 2 Total Expenditure 8 8 2 8 7 6 5
Profit/(Loss) after Tax 3 1 7 8 6 2 7 Dividend Rate (%) 0 0 0
V.
Generic names of three principal products, services of the Company (As per monetary terms): Item Code No. (ITC Code) Product Description N A V E H I C L S E C U R I E T F E I N A N C E S F I N A N C E
74
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KOTAK SECURITIES LIMITED
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BOARD OF DIRECTORS : MR. UDAY KOTAK (C), MR. D. KANNAN (MD), MR. NARAYAN S. A., MR. C. JAYARAM, MS. FALGUNI NAYAR
Directors Report
To the Members of KOTAK SECURITIES LIMITED Your Directors are pleased to present the 17th Annual Report and the Audited Accounts for the year ended 31st March 2011. FINANCIAL HIGHLIGHTS (` in Lakhs except per share data) ` 31st March 2011 Gross Income Profit / (Loss) before Depreciation and Tax Depreciation Profit / (Loss) before Tax Provision for Tax Profit / (Loss) After Tax Transfer from Debenture Redemption Reserve Balance brought forward from previous year Amount available for appropriation Transfer to Debenture Redemption Reserve Profit / (Loss) carried forward to the Balance Sheet Earnings per share on equity shares of `10 each (Basic and Diluted) DIVIDEND In order to further consolidate your companys position, your Board proposes to employ the surplus resources to augment capital requirements, and does not recommend a dividend for the financial year 2010-2011 (hereinafter referred to as current financial year). OPERATIONS May 2010 marked the first anniversary of the UPA government and the current financial year started with a high level of expectation on the economy as well as the capital markets. The second quarter of the financial year saw a surge of FII investments in the secondary markets and investor confidence levels were perceived to be high. The second half of the financial year saw a number of issues such as the Commonwealth Games scam, money for loans scam, increasing inflation, the telecom 2G scam, political unrest in North Africa and Middle East Asia. These events lead to waning in the optimism, bearish sentiments and a sharp fall in valuations. The effect of these events can be seen from the movement of the Sensex and NIFTY during the financial year. The Sensex which closed at 17,528 at the end of the financial year 2009-10 (hereinafter referred to as previous financial year) closed at 19445 at the end of the current financial year with a high of 21,108 and low of 15,960. Similarly, the benchmark Nifty which closed at 5,249 at the end of the previous financial year closed at 5,833 at the end of the current financial year with a high of 6338 and low of 4786. The average daily volumes reduced to ` 16,678 crores from ` 22,784 crores in the previous financial year for the Cash Segment and to ` 1,16,437 crores from ` 72,938 crores in the previous financial year for Derivatives Segment. The last quarter also saw a significant skew in the market volumes towards derivatives volumes. RETAIL SEGMENT The events of the previous financial year had left an anticipation of a higher retail participation in the current financial year. Events leading upto the first half of the financial year seemed to confirm the same. The second half was however juxtaposed to the first half. Your companys plans were therefore more focused on consolidation of the Network whilst actively adding customers. Customer acquisition was stepped up, resulting in an addition of about 103,628 new customers. On the retail network, branches continued to be opened on a selective basis and physical presence was enhanced through increase in the Sub broker network continued. The total outlets have gone up to 1413 from 1113 at the end of the previous financial year. The number of registered sub brokers/ authorized persons stood at 1864 for NSE and 1398 for BSE. Centralised Operations (which moved in the previous financial year) were consolidated in the new state of the art office at Malad (E), in Mumbai. INSTITUTIONAL EQUITIES While the overall Equities market turnover in India was lower by around 15 percent over last year, the Institutional market volumes, thanks to India being a favorite investment destination for foreign investors, grew at around 8 percent with Kotak Institutional Equities maintaining its leading position amidst stiff and growing competition from global firms. Kotak Securities received the Best Electronic Broker award at the Its grt 2b 25 73,755.35 28,942.49 1,785.23 27,157.26 8,963.47 18,193.79 7,836.25 127,386.34 153,416.38 3,813.76 149,602.62 1,137.11 31st March 2010 83,786.39 42,345.93 1,958.31 40,387.62 14,377.58 26,010.04 8,828.04 99,812.93 1,34,651.01 7,264.67 1,27,386.34 1,625.63
Trade Tech India Excellence Awards 2011 demonstrating the firms prowess in the Electronic trading space. Kotak Institutional Equities continued to outperform other syndicate members in IPO and QIP offerings notching higher market share for the firm. KIE Research continued to be recognized for its in-depth high quality financial modeling, width of stock coverage and valuable investment insights. PRIMARY MARKET The Primary Market was fairly vibrant with a number of corporates accessing the market. Coal India Limiteds IPO was a big success with record subscription for any issuance in India. Post listing performance of IPOs has been a mixed with many issuances quoting at or below issue price. Retail participation in the primary capital markets is however left wanting. In the current financial year, your Company was syndicate/sub syndicate member in 53 Public Offer Issues. PORTFOLIO MANAGEMENT SERVICES In line with the overall lukewarm participation of the retail segment in the capital markets, fresh inflows were very modest. Equity as an Asset Class at the retail level needs further development. The total equity Assets under management as on 31st March 2011 was around ` 1731 crores. AWARDS AND RECOGNITIONS Your Company has received following awards during current financial year for its performance a) Kotak Securities - Institutional Equities was named as the Best Electronic Broker at Trade Tech India Awards 2011 b) Awarded Best Broker in India by Finance Asia 2010, 2 years in a row c) Voted as the Best Local Brokerage firm by Asiamoney Brokers Poll for 2010 (for the 5th year in a row) FUTURE OUTLOOK The benchmark Index, NIFTY and Sensex have remained around the same levels at the end of the year as compared to the beginning of the year. The events of the second half of the financial year seem to be discounted by the market. Inflation continues to be a worry and interest rates have increased significantly, coupled with rising commodity prices. The government has taken steps to bring inflation under control and economists feel that inflation is near its peak. At the same time the domestic India demand and growth story remains intact. These factors will have its impact on corporate results and first quarter results of financial year 2011-12 will be a key indicator of times to come. There is growing optimism that the country is heading for more transparent and open governance following the crack down on the telecom 2G scam, the role of the judiciary and the Lokpal Bill. On the global scenario the Quantitative Easing 2, has pumped liquidity in US markets and economy. There are signs of recovery and growth although Europe seems to be lagging behind. FII investments in India continue and have had a positive impact on Indian markets. Events in North Africa and Middle East Asia at present seem within control and have been discounted. Oil prices have shown a tendency to spurt whenever there is some negative news about the unrest in North Africa or the Middle East Asia. A spurt in Oil prices from the current levels could leave an adverse mark on the growth rate of the Indian Economy. Market volumes in financial year 2010-11 have grown primarily in the Options segment; a segment which is not popular at the mass retail level. On the other hand volumes traded in the Cash Segment have declined over the last financial year. While overall the factors indicate a reasonably stable and favorable environment for Indian stock markets, catalyzing retail participation is a challenge in the coming years. As a market leader, your company has devised suitable strategy to address this challenge, leveraging on its existing franchise and network. Last year your company had reported that there were a host of changes in regulations being introduced by the Securities and Exchange Board of India with special emphasis on investor service and protection. These changes have come into effect and your company has taken necessary steps to be in compliance with the same. This would lead to further transparency in dealings with client by the industry auguring well for the retail customer in future. In addition, your company has taken other steps to enhance customer experience and service. Realisation rates are under stress but as in the past your company has suitable plans to address these challenges, maintaining its position in the industry. DIRECTORS Mr. D. Kannan and Ms. Falguni Nayar retire by rotation at the ensuing Annual General Meeting and are eligible for re-appointment. COMMITTEES The Company has during the year reconstituted the Routine and Administrative Functions (RAF) Committee, First Tier Audit Committee (FTAC) and the Audit Committee and constituted the Nomination Committee and Risk Management Committee (Board) and Risk Management Committee (Operations). The constitutions of the said Committees are as follows: ROUTINE & ADMINISTRATIVE FUNCTION (RAF) COMMITTEE 1. Mr. Narayan S.A. (Chairman) 2. Mr. D. Kannan 3. Ms. Falguni Nayar
Kotak Securities Limited Annual Report 2010-11
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AUDIT COMMITTEE 1. Mr. Uday Kotak (Chairman) 2. Mr. C. Jayaram 3. Mr. Narayan S.A FIRST TIER AUDIT COMMITTEE (FTAC) 1. 2. 3. 4. 5. Mr. C. Jayaram (Chairman) Mr. Narayan S.A Mr. D. Kannan Ms. Falguni Nayar Mr. Jaimin Bhatt
NOMINATION COMMITTEE 1. Mr. Narayan S.A. (Chairman) 2. Mr. D. Kannan 3. Ms. Falguni Nayar RISK MANAGEMENT COMMITTEE (BOARD) 1. Mr. C. Jayaram (Chairman) 2. Mr. Narayan S.A. 3. Mr. D. Kannan RISK MANAGEMENT COMMITTEE (OPERATIONS) 1. Mr. D. Kannan 2. Mr. Trivikram Kamath 3. Mr. Mukul Rathi AUDITORS The companys auditors, M/s Price Waterhouse, Chartered Accountants, Mumbai, retire at the ensuing Annual General Meeting and are eligible for re-appointment. STATUTORY INFORMATION The information required under Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 as amended, is given in the Annexure appended hereto and forms part of this Report. During the year under review, your Company did not accept any deposits from the public. Foreign exchange earnings and outgo during the current financial year were ` 306.39 Lacs (` 155.31 Lacs in previous financial year) and ` 800.04 Lacs (` 1103.49 Lacs in previous financial year) respectively. The other particulars under the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, are not applicable since your Company is not a manufacturing company. DIRECTORS RESPONSIBILITY STATEMENT Based on representations from the management, the Directors state, in pursuance of Section 217 (2AA) of the Companies Act, 1956, that: i) the Company has, in the preparation of the annual accounts for the year ended 31st March 2011, followed the applicable accounting standards along with proper explanations relating to material departures, if any;
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 as at 31st March 2011 and of the profit of the Company for the financial year ended 31st March 2011. iii) the Directors have taken proper and sufficient care to the best of their knowledge and ability, for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and iv) the Directors have prepared the annual accounts on a going concern basis. ACKNOWLEDGEMENTS The Directors wish to thank Securities and Exchange Board of India, the Stock Exchanges, the Depositories and the Companys Bankers for their support. The Directors commend the employees of the Company for their dedicated efforts. For and on behalf of the Board of Directors Place: Mumbai Dated: 26th April 2011 Uday S. Kotak Chairman Its grt 2b 25
Auditors Report
to the Members of KOTAK SECURITIES LIMITED 1. We have audited the attached Balance Sheet of Kotak Securities Limited (the Company) as at March 31, 2011, and the related Profit and Loss Account and Cash Flow Statement for the year ended on that date annexed thereto, which we have signed under reference to this report. These financial statements are the responsibility of the Companys Management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As required by the Companies (Auditors Report) Order, 2003, as amended by the Companies (Auditors Report) (Amendment) Order, 2004 (together the Order), issued by the Central Government of India in terms of sub-section (4A) of Section 227 of The Companies Act, 1956 of India (the Act) and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order. Further to our comments in the Annexure referred to in paragraph 3 above, we report that: (a) (b) We have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit; In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from a branch not visited by us. The Branch Auditors report has been forwarded to us and have been appropriately dealt with; The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account; In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Act; On the basis of written representations received from the directors, as on March 31, 2011 and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2011 from being appointed as a director in terms of clause (g) of subsection (1) of Section 274 of the Act; In our opinion and to the best of our information and according to the explanations given to us, the said financial statements together with the notes thereon and attached thereto give, in the prescribed manner, the information required by the Act, and give a true and fair view in conformity with the accounting principles generally accepted in India: (i) (ii) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2011; in the case of the Profit and Loss Account, of the profit for the year ended on that date; and For Price Waterhouse Firm Registration Number: 301112E Chartered Accountants Vivek Prasad Partner Membership Number F104941
2.
3.
4.
(c) (d) (e)
(f)
(iii) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
Place: Mumbai Dated: 29th April 2011 1. (a) (b) (c) 2. (a) (b)
The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed assets. During the year the fixed assets of the Company have been physically verified by the Management and no material discrepancies between the book records and the physical inventory have been noticed. In our opinion, the frequency of verification is reasonable. In our opinion and according to the information and explanations given to us, a substantial part of fixed assets has not been disposed off by the Company during the year. The securities held as stock in trade have been confirmed by the Management with the statement of holdings provided by the National Securities Depository Limited (NSDL) at the financial year end. In our opinion, the frequency of confirmation is reasonable. In our opinion, the procedures of confirmation of securities held as stock in trade followed by the Management are reasonable and adequate in relation to the size of the Company and the nature of its business. Kotak Securities Limited Annual Report 2010-11
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Financial Statements Auditors Report
Reports
(c)
On the basis of our examination of the records of the Company, relating to securities held as stock in trade, in our opinion, the Company has maintained proper records of stock in trade and no material discrepancies between the book records and the statement of holdings provided by NSDL have been noticed. The Company has placed fixed deposits with its holding company covered in the register maintained under Section 301 of the Act. The maximum amount involved during the year and the year end balance of such fixed deposits aggregates `16, 501, 404 (000s) and `13,959,420 (000s) respectively. In our opinion, the rate of interest and other terms and conditions of such fixed deposits placed are not prima facie prejudicial to the interest of the Company. In respect of the aforesaid fixed deposits placed, the holding company is regular in repaying the principal amounts as stipulated and is also regular in payment of interest. In respect of the aforesaid fixed deposits, there is no overdue amount more than ` 100 (000s). The Company has taken secured overdraft facility from its holding company and issued unsecured debentures in prior year to a director covered in the register maintained under Section 301 of the Act. The overdraft facility available to the Company during the year aggregates ` 1,500,000 (000s), the maximum loan amount due to the director was ` 3,000 (000s) and the year end balance of such loans aggregates `166,874 (000s). In our opinion, the rate of interest and other terms and conditions of such loans are not prima facie prejudicial to the interest of the Company. The repayment of principal amounts and payment of interest in case of the aforesaid overdrafts and debentures is as per stipulations.
3.
(a)
(b) (c) (d) (e)
(f) (g) 4.
In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of securities held as stock in trade, fixed assets and for the sale of services. Further, on the basis of our examination of the books and records of the Company, and according to the information and explanations given to us, we have neither come across nor have been informed of any continuing failure to correct major weaknesses in the aforesaid internal control system. In our opinion and according to the information and explanations given to us, the particulars of contracts or arrangements referred to in Section 301 of the Act have been entered in the register required to be maintained under that section. In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements entered in the register in pursuance of Section 301 of the Act and exceeding the value of ` 500 (000s) in respect of any party during the year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time or are considered to be of special nature for which no comparison of prices could be made as explained by the Management of the Company.
5. (a) (b)
6. 7. 8. 9.
The Company has not accepted any deposits from the public within the meaning of Sections 58A and 58AA of the Act and the rules framed there under. In our opinion, the Company has an internal audit system commensurate with its size and nature of its business. The Central Government of India has not prescribed the maintenance of cost records under clause (d) of sub-section (1) of Section 209 of the Act for any of the products of the Company. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing the undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, income-tax, sales-tax, wealth tax, service tax, customs duty, excise duty, cess and other material statutory dues as applicable with the appropriate authorities. According to the information and explanations given to us and the records of the Company examined by us, the particulars of dues of income-tax, sales-tax, wealth-tax, service-tax, customs duty, excise duty and cess as applicable as at March 31, 2011 which have not been deposited on account of a dispute, are as follows: Nature of dues Income tax Income tax Income tax Income tax Income tax penalty Service tax Service tax Amount (` (000s)) 355,090 480,110 787,710 617,010 792,237 3,258 1,913 Period to which the amount relates Assessment Year 2004-05 Assessment Year 2005-06 Assessment Year 2006-07 Assessment Year 2007-08 Assessment Year 2006-07 2000-2001 2002-2005 Forum where the dispute is pending Commissioner of Income Tax (Appeal) Commissioner of Income Tax (Appeal) Commissioner of Income Tax (Appeal) Commissioner of Income Tax (Appeal) Commissioner of Income Tax (Appeal) Commissioner (Appeals) Assistant Commissioner of Service tax
(b)
Name of the statute The Income Tax Act, 1961 The Income Tax Act, 1961 The Income Tax Act, 1961 The Income Tax Act, 1961 The Income Tax Act, 1961 The Central Excise Act, 1944 The Central Excise Act, 1944
10. The Company has no accumulated losses as at March 31, 2011 and it has not incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year.
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11. According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of dues to any financial institution or bank or debenture holders as at the balance sheet date. 12. In our opinion, the Company has maintained adequate documents and records in the cases where the Company has granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. 13. The provisions of any special statute applicable to chit fund / nidhi / mutual benefit fund/ societies are not applicable to the Company. 14. In our opinion, the Company has maintained proper records of transactions and contracts relating to dealing or trading in shares, securities, debentures and other investments during the year and timely entries have been made therein. Further, such securities have been held by the Company in its own name or are in the process of transfer in its name, except to the extent of the exemption granted under Section 49 of the Act. 15. In our opinion and according to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions during the year. 16. The Company has not obtained any term loans during the year. 17. On the basis of an overall examination of the balance sheet of the Company, in our opinion and according to the information and explanations given to us, there are no funds raised on a short-term basis which have been used for long-term investment. 18. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Act during the year. 19. All debentures issued and outstanding at the year end are unsecured. Accordingly, the Company is not required to and has not created a charge in respect of these debentures. 20. The Company has not raised any money by public issues during the year 21. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the Management. For Price Waterhouse Firm Registration Number: 301112E Chartered Accountants Vivek Prasad Partner Membership Number F104941
Place: Mumbai Dated: 29th April 2011
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Reports

Schedule SOURCES OF FUNDS Shareholders Funds : Capital Reserves and Surplus Loan Funds : Secured Loans Unsecured Loans TOTAL APPLICATION OF FUNDS Fixed Assets : Gross Block Less : Depreciation / Amortisation Net Block Investments Deferred Tax (Refer Note 4 on Schedule 20) Deferred Tax Asset Current Assets, Loans and Advances : Stock In Trade Sundry Debtors Cash and Bank Balances Other Current Assets Loans and Advances Less : Current Liabilities and Provisions Liabilities Provisions Net Current Assets TOTAL Notes to the Financial Statements Schedules referred to above form an integral part of the Balance Sheet 20 12 13 90,233.28 3,703.48 93,936.76 101,949.47 189,766.76 115,505.09 4,256.33 119,761.42 102,776.43 171,331.69 7 8 9 10 11 2,777.91 37,578.70 141,868.07 2,176.59 11,484.96 195,886.23 1,926.82 53,504.49 157,019.71 1,507.53 8,579.30 222,537.85 3,265.59 3,722.97 6 5 18,973.70 11,649.75 7,323.95 77,227.75 17,664.30 10,209.27 7,455.03 57,377.26 3 4 1,668.74 18,703.11 189,766.76 841.03 19,289.54 171,331.69 1 2 160.00 169,234.91 160.00 151,041.12 31st March 2011 ` in Lacs 31st March 2010 ` in Lacs
his is the Balance Sheet referred to in our report of even date For Price Waterhouse Firm Registration Number: 301112E Chartered Accountants Uday S. Kotak Chairman Vivek Prasad Partner Membership Number: F104941 Mumbai, 29th April 2011 Falguni Nayar Director For and on behalf of the Board of Directors
D. Kannan Managing Director Sandeep Chordia Company Secretary Mumbai, 26th April 2011
Narayan S. A. Director Trivikram Kamath Executive Vice President
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Schedule 31st March 2011 ` in Lacs 31st March 2010 ` in Lacs
Income Income from Services Interest Income Other Income Total Income Expenditure Personnel Interest and Other Finance Charges Other Expenses Total Expenditure Profit Before Depreciation / Amortisation and Taxation Depreciation / Amortisation Profit Before Taxation Provision For Taxation Current Tax [Includes write back of excess provision for taxation relating to earlier years ` 57.20 Lacs (net) (Previous Year short provision for taxation relating to earlier years ` 380.63 Lacs (Net)] Deferred Tax (Refer Note 4 on Schedule 20) Profit After Taxation Transfer from Debenture Redemption Reserve Balance Brought Forward Appropriations Transfer to Debenture Redemption Reserve Balance Carried Forward Earnings per Share on Equity Shares of ` 10 each Basic and Diluted (In Rupees) (Refer Note 20 of Schedule 20) Notes to the Financial Statements Schedules referred to above form an integral part of the Profit and Loss Account 20 3,813.76 149,602.62 153,416.38 1,137.11 7,264.67 127,386.34 134,651.01 1,625.63 17 18 19 23,560.85 1,987.72 19,264.29 44,812.86 28,942.49 1,785.23 27,157.26 20,639.78 2,170.30 18,630.38 41,440.46 42,345.93 1,958.31 40,387.62 14 15 16 47,488.95 17,626.03 8,640.37 73,755.35 52,892.16 19,155.99 11,738.24 83,786.39
8,506.09 457.38 18,193.79 7,836.25 127,386.34 153,416.38
14,546.76 (169.18) 26,010.04 8,828.04 99,812.93 134,651.01
This is the Profit and Loss Account referred to in our report of even date For Price Waterhouse Firm Registration Number: 301112E Chartered Accountants Uday S. Kotak Chairman Vivek Prasad Partner Membership Number: F104941 Mumbai, 29th April 2011 Falguni Nayar Director For and on behalf of the Board of Directors
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Reports
31st March 2011 ` in Lacs Cash flow from operating activities Net profit before taxation Add adjustments for : Depreciation / amortisation Interest and other finance charges Interest income Operating interest income Provision for doubtful debts/ (write back) Provision for contingencies (net) Dividend income (Profit)/loss on sale of fixed assets (net) (Profit)/loss on sale of investments (net) (Profit)/loss on Buyback of debentures (net) Provision for diminution in value of Investments/ (write back) Operating profit before working capital changes Adjustments for changes in working capital : - Trade and other receivables - Stock in trade - Loans and advances - Trade and other payables Cash generated from operations - Taxes paid including fringe benefits tax (net of refunds) Net cash (used in) / from operating activities (A) Cash flow from investing activities: Purchase of fixed assets (including capital advances) Proceeds from sale of fixed assets Sale of investments Purchase of investments Interest received Net cash (used in ) / from investing activities (B) (1,958.59) 107.41 794,588.36 (813,203.22) 12,214.11 (8,251.93) (1,095.10) 509.81 1,153,526.80 (1,152,956.16) 15,305.22 15,290.57 16,070.40 (851.09) (2,179.72) (24,792.77) 3,306.40 (9,064.82) (5,758.42) (31,965.26) (256.30) 1,252.06 30,548.27 28,281.11 (12,843.40) 15,437.71 1,785.23 1,643.90 (17,626.03) 4,742.86 (144.61) (1,214.28) (72.25) 29.81 (1,160.90) (6.68) (74.73) 15,059.58 1,958.31 1,853.35 (19,155.99) 4,527.56 87.33 246.39 (27.91) 107.77 272.14 (192.98) (1,361.25) 28,702.34 27,157.26 40,387.62 31st March 2010 ` in Lacs
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Year ended 31st March 2011 Year ended 31st March 2010
Cash flow from financing activities: Proceeds /(repayment) from/of borrowings (net) Interest and other finance charges paid Dividend received Net cash (used in) / from financing activities (C) Net (Decrease) / Increase in Cash and cash equivalents (A)+(B)+(C) Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year Cash and cash equivalents comprise of Cash on hand Balances with scheduled banks TOTAL Notes to the Financial Statements 1. 2. Schedule - 20 18.31 141,849.76 141,868.07 12.43 157,007.28 157,019.71 247.96 (1,461.50) 72.25 (1,141.29) (15,151.64) 157,019.71 141,868.07 (12,085.61) (955.07) (13,040.68) 17,687.60 139,332.11 157,019.71
The above Cash Flow Statement has been prepared under the Indirect Method as set out in Accounting Standard - 3 on Cash Flow Statements issued by the Institute of Chartered Accountants of India. Balances with scheduled banks include fixed deposits of ` 104,612.20 Lacs (Previous Year ` 125,640.72 Lacs) which is under the lien of National Securities Clearing Corporation Limited and ` 10,554.96 Lacs(Previous Year ` 11,891.45 Lacs) which is under the lien of Bombay Stock Exchange Limited and ` 1,053.91 Lacs (Previous year ` Nil) which is under the lien of Multi Commodity Exchange Limited.
This is the Cash Flow Statement referred to in our report of even date For Price Waterhouse Firm Registration Number: 301112E Chartered Accountants Uday S. Kotak Chairman Vivek Prasad Partner Membership Number: F104941 Mumbai, 29th April 2011 Falguni Nayar Director For and on behalf of the Board of Directors
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31st March 2011 ` in Lacs SCHEDULE 1 - CAPITAL Authorised 1,000,000 Preference Shares of `100 each 6,000,000 Equity Shares of `10 each 1,000.00 600.00 1,600.00 Issued and Subscribed 1,600,000 Equity Shares of `10 each fully paid up {Of the above 1,199,990 shares are held by Kotak Mahindra Bank Limited, the Holding Company and its nominees} TOTAL 160.00 160.00 160.00 160.00 1,000.00 600.00 1,600.00 31st March 2010 ` in Lacs
SCHEDULE 2 - RESERVES AND SURPLUS Securities Premium Account Balance as per last Balance Sheet 2,350.35 2,350.35 General Reserve Balance as per last Balance Sheet 6,286.51 6,286.51 Debenture Redemption Reserve Balance as per last Balance Sheet Transfer to Profit and Loss Account 15,017.92 7,836.25 7,181.67 Transfer from Profit and Loss Account 3,813.76 10,995.43 Profit and Loss Account TOTAL 149,602.62 169,234.91 16,581.29 8,828.04 7,753.25 7,264.67 15,017.92 127,386.34 151,041.12 6,286.51 6,286.51 2,350.35 2,350.35
SCHEDULE 3 - SECURED LOANS Overdraft From Banks (Secured by a pari passu first charge on the stock in trade and business receivables) TOTAL 1,668.74 1,668.74 841.03 841.03
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31st March 2011 ` in Lacs SCHEDULE 4 - UNSECURED LOANS Loan From Directors Nil, (Previous Year -3) Nifty Linked Optionally Convertible Debentures of `1,000,000 each. Date of redemption 31st January, 2011*. (Convertible into Nil (Previous Year 60), 35% Redeemable Non cumulative Non Convertible Preference Shares of `100 each at a premium of `49,900 per share.) Loan From Others Nil, (Previous Year -46) Nifty Linked Optionally Convertible Debentures of `1,025,000 each. Date of redemption 17th May, 2010*. Redeemable at Rs 10 Lacs (Convertible into Nil (Previous Year 920), 35% Redeemable Non Cumulative Non Convertible Preference Shares of `100 each at a premium of `49,900 per share.) Nil, (Previous Year -67) Nifty Linked Optionally Convertible Debentures of `1,000,000 each. Date of redemption 18th June, 2010*. (Convertible into Nil (Previous Year 1,340), 35% Redeemable Non Cumulative Non Convertible Preference Shares of `100 each at a premium of `49,900 per share) Nil, (Previous Year -29) Nifty Linked Optionally Convertible Debentures of `1,000,000 each. Date of redemption 16th July, 2010*. (Convertible into Nil (Previous Year 580), 35% Redeemable Non Cumulative Non Convertible Preference Shares of `100 each at a premium of `49,900 per share) Nil, (Previous Year -42) Nifty Linked Optionally Convertible Debentures of `1,000,000 each. Date of redemption 20th August, 2010*. (Convertible into Nil (Previous Year 840), 35% Redeemable Non Cumulative Non Convertible Preference Shares of `100 each at a premium of `49,900 per share.) Nil, (Previous Year -27) Nifty Linked Optionally Convertible Debentures of `1,000,000 each. Date of redemption 27th September, 2010*. (Convertible into Nil (Previous Year 540), 35% Redeemable Non Cumulative Non Convertible Preference Shares of `100 each at a premium of `49,900 per share.) Nil, (Previous Year -95) 19% Optionally Convertible Debentures of `1,000,000 each. Date of redemption 10th May, 2010**. (Convertible into Nil (Previous Year 1,900), 35% Redeemable Non Cumulative Non Convertible Preference Shares of `100 each at a premium of `49,900 per share.) Nil, (Previous Year -175) 19% Optionally Convertible Debentures of `1,000,000 each. Date of redemption 24th May, 2010**. (Convertible into Nil (Previous Year 3,500), 35% Redeemable Non Cumulative Non Convertible Preference Shares of `100 each at a premium of `49,900 per share) Nil, (Previous Year -73) Nifty Linked Optionally Convertible Debentures of `1,000,000 each. Date of redemption 31st January, 2011*. (Convertible into Nil (Previous Year 1,460), 35% Redeemable Non Cumulative Non Convertible Preference Shares of `100 each at a premium of `49,900 per share.) Nil, (Previous Year -100) Nifty Linked Optionally Convertible Debentures of `1,000,000 each. Date of redemption 28th January, 2011*. (Convertible into Nil (Previous Year 2,000), 35% Redeemable Non Cumulative Non Convertible Preference Shares of `100 each at a premium of `49,900 per share.) Nil, (Previous Year -63) 16% Optionally Convertible Debentures of `1,000,000 each. Date of redemption 27th May, 2010**. (Convertible into Nil (Previous Year 1,260), 35% Redeemable Non Cumulative Non Convertible Preference Shares of `100 each at a premium of `49,900 per share.) Nil, (Previous Year -138) Nifty Linked Optionally Convertible Debentures of `1,000,000 each. Date of redemption 7th March 2011*. (Convertible into Nil (Previous Year 2,760), 35% Redeemable Non Cumulative Non Convertible Preference Shares of `100 each at a premium of `49,900 per share.) 471.50 30.00 31st March 2010 ` in Lacs
670.00
290.00
420.00
270.00
950.00
1,750.00
730.00
1,000.00
630.00
1,380.00
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31st March 2011 ` in Lacs 34, (Previous Year -34) Nifty Linked Optionally Convertible Debentures of `1,000,000 each. Date of redemption 30th June, 2011*. (Convertible into 680 (Previous Year 680), 35% Redeemable Non Cumulative Non Convertible Preference Shares of `100 each at a premium of `49,900 per share.) 425, (Previous Year -445) 20% Optionally Convertible Debentures of `1,000,000 each. Date of redemption 2nd May, 2011**. (Convertible into 8,500 (Previous Year 8,900), 35% Redeemable Non Cumulative Non Convertible Preference Shares of `100 each at a premium of `49,900 per share.) 51, (Previous Year -51) Nifty Linked Optionally Convertible Debentures of `1,000,000 each. Date of redemption 25th July, 2011*. (Convertible into 1,020 (Previous Year 1,020), 35% Redeemable Non Cumulative Non Convertible Preference Shares of `100 each at a premium of `49,900 per share.) 51, (Previous Year -51) Nifty Linked Optionally Convertible Debentures of `1,000,000 each. Date of redemption 26th August, 2011*. (Convertible into 1,020 (Previous Year 1,020), 35% Redeemable Non Cumulative Non Convertible Preference Shares of `100 each at a premium of `49,900 per share.) 242, (Previous Year -271) 20% Optionally Convertible Debentures of `1,000,000 each. Date of redemption 26th May, 2011**. (Convertible into 4,840 (Previous Year 5,420), 35% Redeemable Non Cumulative Non Convertible Preference Shares of `100 each at a premium of `49,900 per share.) 149, (Previous Year -150) Nifty Linked Optionally Convertible Debentures of `1,000,000 each. Date of redemption 23rd August, 2011*. (Convertible into 2,980 (Previous Year 3,000), 35% Redeemable Non Cumulative Non Convertible Preference Shares of `100 each at a premium of `49,900 per share.) 78, (Previous Year -78) Nifty Linked Optionally Convertible Debentures of `1,000,000 each. Date of redemption 6th September, 2011*. (Convertible into 1,560 (Previous Year 1,560), 35% Redeemable Non Cumulative Non Convertible Preference Shares of `100 each at a premium of `49,900 per share.) 44, (Previous Year -44) Nifty Linked Optionally Convertible Debentures of `1,000,000 each. Date of redemption 12th September, 2011*. (Convertible into 880 (Previous Year 880), 35% Redeemable Non Cumulative Non Convertible Preference Shares of `100 each at a premium of `49,900 per share.) 49, (Previous Year -49) Nifty Linked Optionally Convertible Debentures of `1,000,000 each. Date of redemption 16th October, 2011*. (Convertible into 980 (Previous Year 980), 35% Redeemable Non Cumulative Non Convertible Preference Shares of `100 each at a premium of `49,900 per share.) 340.00 31st March 2010 ` in Lacs 340.00
4,250.00
4,450.00
510.00
510.00
510.00
510.00
2,420.00
2,710.00
1,490.00
1,500.00
780.00
780.00
440.00
440.00
490.00
490.00
11,230.00 Less: Discount Accreted 206.95 11,023.05 Commercial Paper Less : Discount Not Written Off (Maximum amount oustanding during the year Rs 50,000 Lacs (Previous Year Rs 45,000 Lacs)) TOTAL * The Debentures can be redemed at the option of the Company contingent on future events. ** The Debentures can be redemed at the option of the Investor contingent on future events. 8,000.00 319.94 7,680.06 18,703.11
20,321.50 1,031.96 19,289.54 19,289.54
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13
SCHEDULE 5 : FIXED ASSETS GROSS BLOCK As At 31st March 2011 As at 1st April, 2010 For the year On As At Deductions 31st March 2011 As At 31st March 2011 As at 31st March 2010 DEPRECIATION/AMORTISATION NET BLOCK
14
333.13 48.80 727.07 269.59 213.69 152.57 726.06 251.40 164.22 83.85 331.77 394.29 144.25 2,788.26 2,073.26 341.27 112.27 2,302.26 486.00 36.35 5,784.29 4,372.50 660.73 36.14 4,997.09 787.20 2.14 286.20 214.51 55.72 2.14 268.09 18.11 25.03 721.07 589.66 413.54 5,168.79 70.92 84.25 155.17 5,013.62 5,097.87 146.66 1,914.59 1,529.60 179.15 110.35 1,598.40 316.19 198.52 199.09 481.97 2,373.13 17,664.30 10,006.51 1,958.31 1,755.55 10,209.27 18,973.70 10,209.27 1,785.23 344.75 11,649.75 2,305.51 1,697.08 299.89 1,996.97 308.54 7,323.95 7,455.03 409.34 7,455.03
DESCRIPTIONS
As at 1st April, 2010
Additions Deductions for the Adjustments year for the year
TANGIBLE
1,728.12
Premises (a)
5,168.79
Furniture and Fixtures
239.54
Computers
5,093.57
Office Equipments (b)
2,662.92
Motor Vehicles
664.94
INTANGIBLE
Software (c)
2,106.42
TOTAL
17,664.30
1,791.37
Previous Year
13,589.55
6,447.88
Includes value of shares in the co-operative society , aggregating to ` 4 Lacs (Previous Year ` 4 Lacs) registered in the name of the Company. The depreciation for the year is ` 0.06 Lacs (Previous Year ` 0.06 Lacs) and the written down value of the asset as on 31st March 2011 is ` 3.14 Lacs (Previous Year ` 3.20 Lacs)
Includes assets given on operating lease aggregating to `397.75 Lacs (Previous Year ` 397.75 Lacs). The depreciation for the year is `34.76 Lacs (Previous Year ` 58.33 Lacs) and the written down value of the assets as on 31st March 2011 is ` 20.33 Lacs (Previous Year ` 55.09 Lacs).
Includes asset given on operating lease aggregating to `177.35 Lacs (Previous Year ` 177.35 Lacs).The depreciation for the year is ` Nil (Previous Year `0.56 Lacs) and the written down value of the asset as on 31st March 2011 is `Nil (Previous Year ` Nil ).
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Particulars Face Value ` 31st March 2011 Quantity 31st March 2010 Quantity 31st March 2011 ` in Lacs 31st March 2010 ` in Lacs
SCHEDULE 6 - INVESTMENTS Long Term Investments (Other than Trade) (At Cost, less diminution other than temporary in nature) Quoted Equity Shares ING Vysya Bank Limited Unquoted Equity Shares Bombay Stock Exchange Limited Companies under the same Management: Kotak Mahindra Capital Company Limited Kotak Mahindra Prime Limited Kotak Forex Brokerage Limited Investment in Subsidiary: Kotak Mahindra Financial Services Limited incorporated in Dubai, U.A.E. Preference Shares Companies under the same Management: 8.5% Cumulative Preference Share of Kotak Mahindra Asset Management Company Limited
10
548,386
824.02
1 10 10 10
260,000 990,015 1,712,600 1,989,706
260,000 990,015 1,712,600 1,650,000
262.75 21,000.00 27,080.69 198.97
262.75 21,000.00 27,080.69 165.00
USD 1
950,000
650,000
443.38
304.08
10
8,500,000 14,402,321
8,500,000 14,311,001
850.00 49,835.79
850.00 50,486.54
Unquoted Debentures Companies under the same Management: 8.5% Unsecured Fully Convertible Debentures of Kotak Forex Brokerage Limited, convertible into equity shares of `10 each on 26th March 2012 Quoted Debentures Companies under the same Management: 9.50% Unsecured Non Convertible Debentures of Kotak Mahindra Prime Limited (Date of Redemption on 30th August, 2017) 10.50% Unsecured Non Convertible Debentures of Kotak Mahindra Prime Limited (Date of Redemption on 23rd April, 2021) Unquoted Units of Venture Capital Fund: Kotak Alternate Opportunities India Fund
100,000
10
70
10.00
70.00
1,000,000
500
5,000.00
1,000,000
1,500
15,000.00
2,010 14,404,331 14,404,331
70 14,311,071 14,311,071
1,895.45 21,905.45 71,741.24 71,741.24
1,395.45 1,465.45 51,951.99 (74.73) 51,877.26
Total Long Term Investments Less : Provision for Diminution in Value of Investment Current Investments (Other than Trade) (A) (At cost or fair value, whichever is lower) (Refer Note 8 on Schedule 20) Unquoted Debentures 9.40% Unsecured Non Convertible Debentures of Kotak Mahindra Investments Limited, (Date of Redemption on 3rd August, 2011)
1,000,000
250
2,486.51
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15

Particulars Face Value ` 31st March 2011 Quantity 31st March 2010 Quantity 31st March 2011 ` in Lacs 31st March 2010 ` in Lacs
Quoted Debentures 8.15% Unsecured Non Convertible Debentures of Kotak Mahindra Prime Limited (Date of Redemption on 23rd November, 2011) 7.10% Unsecured Non Convertible Debentures of Kotak Mahindra Prime Limited (Date of Redemption on 22nd October, 2010) (B) TOTAL (A+B) Aggregate Value of Quoted Investments -At Book Value -At Market Value ( Value of debentures which are not traded have been taken at Book Value) Aggregate Value of Unquoted Investments -At Book Value SCHEDULE 7 - STOCK IN TRADE (At cost or market value whichever is lower)
1,000,000
300
300
3,000.00
3,000.00
1,000,000
550 14,404,881
250 550 14,311,621
5,486.51 77,227.75 23,000.00
2,500.00 5,500.00 57,377.26 6,324.02
23,000.00 54,227.75
7,032.46 51,053.24
Face Value Equity Shares 3i Infotech Limited Alfa-Laval (India) Limited Amtek Auto Limited* Asian Paints Limited Axis Bank Limited Bajaj Auto Limited Bajaj Electricals Limited Bajaj Hindusthan Limited Bajaj Holdings & Investments Limited Balkrishna Industries Limited Berger Paints (India) Limited Birla Corporation Limited Cadila Healthcare Limited Carborundum Universal Limited Carol Info Services Limited Central Bank of India Century Textiles & Industries Limited Chennai Petroleum Corporation Limited Coal India Limited Coromandel International Limited CRISIL Limited Crompton Greaves Limited Cummins India Limited 10 10 2 10 10 10 2 1 10 2 2 10 5 2 10 10 10 10 10 2 10 2 2
31st March 2011 Quantity 31,000 6,000 1 4,251 20,000 3,000 54,071 100,100 33,066 11,337 28,323 19,000 14,814 40,100 516 69,000 18,500
31st March 2010 Quantity 1 3,150 1,600 5,700 13,000 8,000 20,614
31st March 2011 ` in Lacs 13.56 73.93 107.37 44.29 22.94 67.56 84.73 112.02 86.73 38.66 26.70 50.52 135.13 30.47 183.77 121.94
31st March 2010 ` in Lacs 36.80 32.19 7.73 18.99 21.94 55.32
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SCHEDULE 7 - STOCK IN TRADE (Contd.) (At cost or market value whichever is lower) Face Value Dabur India Limited Entertainment Network (India) Limited Escorts India Limited GMR Infrastructure Limited Godawari Power and Ispat Limited Goodyear India Limited Grasim Industries Limited Greaves Cotton Limited Gujarat NRE Coke Limited Gujarat State Fertilizers & Chemicals Limited GVK Power & Infrastructure Limited Hathway Cable & Datacom Limited Havells India Limited HCL Technologies Limited Hero Honda Motors Limited Hindalco Industries Limited Hindustan Construction Company Limited Hindustan Unilever Limited HDFC Bank Limited ICICI Bank Limited India Motor Parts and Accessories Limited Indian Bank IFB Industries Limited Infosys Technologies Limited Jindal Steel & Power Limited JSW Energy Limited Kirloskar Oil Engines Limited Kolar Biotech Limited Larsen & Toubro Limited Maruti Suzuki India Limited Mahindra & Mahindra Limited Monnet Ispat Limited Moser-Baer (India) Limited Motherson Sumi Systems Limited Nagarjuna Agrichem Limited Pantaloon Retail (India) Limited Polaris Software Lab Limited Power Grid Corporation of India Limited Punj Lloyd Limited Punjab National Bank Ranbaxy Laboratories Limited Rane Holdings Limited 1 10 10 2 10 10 10 10 10 10 1 10 5 2 2 1 1 1 10 10 10 10 10 5 1 10 2 1 2 5 10 10 10 1 10 2 5 10 2 10 5 10 31st March 2011 Quantity 50,000 20,000 20,000 70,000 13,000 200,000 40,000 40,000 36,000 14,046 108 22,000 6,125 10,000 1,250 30,000 30,000 205 13,000 31st March 2010 Quantity 43,403 7,500 9,008 176 40,366 40,000 200 13,900 42,000 2,200 2,450 20,000 100 1,920 100,000 17,000 10,000 1,000 2,800 624 10,704 29,700 77,000 5,500 10,500 1,800 47,200 10,500 31st March 2011 ` in Lacs 47.91 23.38 52.62 51.28 44.43 51.80 38.84 144.98 171.35 39.92 0.73 49.94 193.98 14.65 77.60 55.85 0.20 24.60 31st March 2010 ` in Lacs 87.78 4.67 23.65 4.95 110.46 32.14 3.88 20.63 56.32 42.12 23.30 17.94 2.62 13.50 111.85 27.11 16.30 38.82 2.97 45.57 21.68 95.44 14.29 18.62 18.10 221.62 12.40
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SCHEDULE 7 - STOCK IN TRADE (Contd.) (At cost or market value whichever is lower) Face Value Reliance Communications Limited Reliance Industries Limited Reliance Infrastructure Limited Reliance Natural Resources Limited Sadbhav Engineering Limited Spicejet Limited State Bank of India Sterlite Industries (India) Limited Suzlon Energy Limited SBI Home Finance Limited Sun Pharmaceuticals Industries Limited Tata Steel Limited Titan Industries Limited The Phoenix Mills Limited Torrent Pharmaceuticals Limited Triveni Engineering & Industries Limited UB Engineering Limited Union Bank of India Unitech Limited United Spirits Limited Wabco-Tvs (India) Limited Sub total for equity shares (A) Exchange Traded Fund Kotak Mahindra Mutual Fund-Gold Exchange Traded Fund Kotak Mahindra Mutual Fund - PSU Bank Exchange Traded Fund Kotak Mahindra Mutual Fund-Kotak Sensex Exchange Traded Fund Kotak Mahindra Mutual Fund-Kotak Nifty Exchange Traded Fund Sub total for exchange traded fund (B) Equity Warrants HDFC-WARRANT-23AUG2012 Sub total for equity warrants (C) TOTAL (A+B+C) Aggregate Value of Stock-In-Trade -At Book Value -At Market Value Refer Note 6 and 9 on Schedule 20 *Less than ` 0.01 Lacs 2,777.91 2,882.01 1,926.82 1,986.33 0.05 900 900 1,222,278 1,022,636 0.68 0.68 2,777.91 1,926.82 100 10 10 10 4,898 6,328 4,469 8,570 24,265 882 9,793 9,285 13,268 33,228 98.98 29.27 8.32 49.84 186.41 14.17 33.21 16.23 69.35 132.96 5 10 10 5 1 10 10 1 2 10 1 10 10 2 5 1 10 10 2 10 5 31st March 2011 Quantity 10,000 50,000 30,000 300 10,000 18,000 10,000 1,197,113 31st March 2010 Quantity 8,400 552 3,576 258,000 264 30,000 300 24,448 3,000 23,335 2,762 11,550 10,588 9,000 250 3,767 989,408 31st March 2011 ` in Lacs 103.00 57.65 50.62 44.18 16.28 34.73 2,590.82 31st March 2010 ` in Lacs 14.25 5.51 2.23 146.79 5.45 21.56 154.52 53.57 43.37 12.16 15.77 30.95 6.55 3.30 16.18 1,793.86
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31st March 2011 ` in Lacs SCHEDULE 8 - SUNDRY DEBTORS Sundry Debtors : Considered Good * Over Six Months Others ** Considered Good Considered Doubtful Over Six Months Others Considered Doubtful Sundry Debtors Less : Provision for Doubtful Debts TOTAL (Refer note 11 on schedule 20) * Sundry debtors - considered good include secured debtors ` 35,205.51 Lacs (Previous Year `50,804.58 Lacs) **Due from Directors ` Nil (Previous Year ` Nil Lacs), maximum amount outstanding during the year from Directors ` 5.47 Lacs (Previous Year `0.36 Lacs) 1,627.55 375.50 2,003.05 39,581.75 2,003.05 37,578.70 1,070.05 36,508.65 37,578.70
31st March 2010 ` in Lacs
881.54 52,622.95 53,504.49
1,651.80 495.86 2,147.66 55,652.15 2,147.66 53,504.49
SCHEDULE 9 - CASH AND BANK BALANCES Cash on Hand Balances with Scheduled Banks in : Current Account Fixed Deposit Account (Refer Note 12 on Schedule 20) TOTAL 373.81 141,475.95 141,868.07 552.43 156,454.85 157,019.71 18.31 12.43
SCHEDULE 10 - OTHER CURRENT ASSETS Interest Accrued on Fixed Deposits Interest Accured on Debentures Dividend Accrued on Preference Shares TOTAL 1,632.24 472.10 72.25 2,176.59 1,255.64 179.64 72.25 1,507.53
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31st March 2011 ` in Lacs ` in Lacs SCHEDULE 11 - LOANS AND ADVANCES (Unsecured, unless otherwise stated, considered good) Loans Advances Recoverable in Cash or Kind or for Value to be Received Capital Advances Deposits with Exchanges/Depositories Deposits -Others Initial Margin - Equity Derivative Instrument (Refer Note 1 J 2 ( a ) on Schedule 20) Margin Deposits - Equity Derivative Instrument (Refer Note 1 J 2 ( a ) on Schedule 20) Mark-to-Market Margin - Equity Index/Stock Futures (Refer Note 1 J 1 on Schedule 20) Less: Provision for Loss ( Refer Note 1 J 1 on Schedule 20 ) Equity Index/Stock Option Premium (Refer Note 1 J 2 (b) on Schedule 20) Less: Provision for Loss (Refer Note 1 J 1 on Schedule 20) Advance Tax (Net of Provision for Current Taxation and Fringe Benefits Tax - ` 50,677.35 Lacs (Previous Year ` 41,660.45 Lacs) TOTAL 11,484.96 196.97 196.97 1,971.74
` in Lacs
31st March 2010 ` in Lacs
84.48 852.41 356.51 287.00 1,079.41 4,404.38 1,883.27 33.35 33.35 2,450.03 172.32
47.14 848.56 189.29 287.00 818.01 2,621.10 1,483.45
1,971.74 565.76
2,277.71 7.04
8,579.30
SCHEDULE 12 - LIABILITIES Current Liabilities Sundry Creditors (includes Trade Payables)* Micro and Small enterprises (Refer Note 23 on Schedule 20) Others Income Received In Advance Book Overdraft from Banks Security Deposits Other Liabilities Interest Accrued But Not Due Equity Index/Stock Option Premium (Refer Note 1 J 2 ( b ) on Schedule 20) Add:Provision for Loss (Refer Note 1 J 1 on Schedule 20) Mark-to-Market Margin - Equity Index/Stock Futures (Refer Note 1 J 1 on Schedule 20) Embedded Option Value TOTAL
81,248.79 566.36 3.52 2,123.51 182.15 515.66 3,856.38 1,048.35 4,904.73 688.56 90,233.28 3,521.87 589.48
11.65 106,262.92 212.41 2,327.76 211.31 333.26
4,111.35 27.02 2,007.41 115,505.09
* There are no amounts due and outstanding to be credited to Investor Education and Protection Fund. SCHEDULE 13 - PROVISIONS Compensated Absences and Leave Encashment Gratuity (Refer Note 5(a) on Schedule 20) Contingencies (Refer Note 13 on Schedule 20) TOTAL 1,018.43 880.14 1,804.91 3,703.48 701.44 535.70 3,019.19 4,256.33
20
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Schedule forming part of the Profit and Loss Account

31st March 2011 ` in Lacs SCHEDULE 14 - INCOME FROM SERVICES Income from Brokerage - Gross {(Net of brokerage Income pertaining to earlier years written off `1.67 Lacs (Previous Year ` 35.39 Lacs)} {Tax Deducted at source ` 551.90 Lacs (Previous Year ` 423.39 Lacs)} Less : Sub Brokerage/Referral Fees and Expenses 6,451.07 43,072.87 Fee Income - Gross {Refer Note 14 (a) on Schedule 20} {Tax Deducted at source ` 2.63 Lacs (Previous Year `31.11 Lacs)} Less : Referral Fees 4,514.05 97.97 4,416.08 TOTAL 47,488.95 6,730.36 45,775.66 7,307.99 191.49 7,116.50 52,892.16 31st March 2010 ` in Lacs
49,523.94
52,506.02
SCHEDULE 15 - INTEREST INCOME Interest on Bank Deposits {Tax Deducted at source ` 1,273.61 Lacs (Previous Year ` 1,818.55 Lacs)} Interest on Staff Loans Interest on Debentures Interest - Others (Net of interest Income pertaining to earlier years written off ` 60.30 Lacs (Previous Year ` 66.87 Lacs)) {Refer Note 14 (b) on Schedule 20} {Tax deducted at source `9.58 Lacs (Previous Year ` 11.70 Lacs)} TOTAL 6.51 664.00 4.66 1,785.03 12,219.17 12,843.40
4,736.35 17,626.03
4,522.90 19,155.99
SCHEDULE 16 - OTHER INCOME Profit on Trading in Securities (net) (Refer Note 9 on Schedule 20) Profit on Buyback of Debentures Dividend Income (Refer Note 15 on Schedule 20) Provsion of Diminution in Value of Investments written back as No Longer Required Add/(Less): Profit /(Loss) on sale of Investments (net) (Refer Note 16 on Schedule 20) Liabilities Written Back As No Longer Required (Refer Note 17 on Schedule 20) Provision for Contingencies written back (net) Provision on Doubtful Debts written back (net) Bad Debts Recovery Miscellaneous Income TOTAL 1,214.28 144.61 913.69 8,640.37 550.02 941.31 11,738.24 Its grt 2b 25 74.73 1,160.90 1,235.63 179.64 4,787.61 6.68 158.23 1,361.25 (272.14) 1,089.11 161.71 8,720.64 192.98 82.47
21
31st March 2011 ` in Lacs SCHEDULE 17 - PERSONNEL Salaries, Allowances and Bonus (Refer Note 18 on Schedule 20) Contribution to Provident and Other Funds Compensated Absences and Leave Encashment Gratuity Staff Welfare Total: Less : Recovery of Expenses (Refer Note 19 on Schedule 20) TOTAL 21,694.83 933.40 372.68 484.50 315.54 23,800.95 240.10 23,560.85
31st March 2010 ` in Lacs 19,541.98 718.26 205.63 194.36 217.56 20,877.79 238.01 20,639.78
SCHEDULE 18 - INTEREST AND OTHER FINANCE CHARGES Interest on Inter Corporate Deposits Interest on Debentures Interest/Discount on Term Loan/Other Fixed Loans Interest on Bank Overdraft Bank Guarantee Commission and Other Charges Interest-Other TOTAL
53.08 983.49 574.04 17.10 16.19 343.82 1,987.72
1,518.37 289.55 18.09 27.34 316.95 2,170.30
SCHEDULE 19 - OTHER EXPENSES Travelling, Conveyance and Motor Car Professional and Legal Auditors Remuneration Audit Fees Out of Pocket Expense Loss on Sale / Disposal of Fixed Assets (net) Provision for Doubtful Debts Provision for Contingencies Commission to Director Repairs and Maintenance - Others Office Communication Printing and Stationery Stock Exchanges Expenses Electricity Membership and Subscription Rent Rates and Taxes Advertising, Business Promotion and Entertainment Donations Securities Transaction Tax on Proprietory Trades Bad Debts Written Off Service Charges Common Establishment Expenses-Reimbursement Depository Charges Stamp/ Turnover / Transaction Charges (net of recovery) Insurance Loss on Account of Trades Not Confirmed by Clients, Error Trades and Other Settlements Cost (net) Loss on Foreign Exchange Transactions Miscellaneous Total Less : Recovery of Expenses (Refer Note 19 on Schedule 20) TOTAL
1,048.85 1,648.79 58.00 0.42 29.81 75.00 944.93 398.86 2,115.10 706.83 39.24 785.66 697.74 2,886.24 342.22 1,118.18 869.10 143.29 407.82 3,641.26 257.05 436.02 151.57 178.78 307.50 19,288.26 23.97 19,264.29
809.15 1,342.64 55.00 0.79 107.77 87.33 246.39 10.00 830.08 257.72 1,819.23 751.27 15.01 713.00 681.09 3,197.07 211.17 1,027.00 5.26 576.75 148.76 334.08 3,959.50 330.43 517.82 129.11 110.83 41.39 437.21 18,752.85 122.47 18,630.38
22
Its grt 2b 25
Reports
SCHEDULE 20 - SIGNIFICANT ACCOUNTING POLICIES: 1. A. BASIS OF ACCOUNTING The Financial Statements have been prepared on historical cost basis of accounting. The company adopts the accrual system of accounting and the financial statements conform with the Accounting Standards notified under the Companies (Accounting Standard) Rules, 2006, the generally accepted accounting principles prevailing in India and the relevant provisions of the Companies Act, 1956. The preparation of financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as on the date of the financial statements and the reported income and expenses during the reported period. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Actual results could differ from these estimates. B. REVENUE RECOGNITION Revenue is recognized when there is reasonable certainty of its ultimate realization / collection. 1. 2. Placement and other fee based income are accounted for on the basis of the progress of the assignment. Brokerage Income (net of service tax) on fixed deposit is accounted on completion of the transaction. on primary market subscription mobilisation is accounted on allotment after intimation received by the Company. on secondary market transaction is recognised on the date of the transaction. 3. 4. 5. Interest Income is accounted on accrual basis. Incentive on primary market subscription mobilisation is accounted on the basis of intimation received by the Company. Depository Fees (net of service tax) Transaction fees are recognised on completion of the transaction. Account maintenance charges are recognised on time basis over the period of the contract. 6. (i) Portfolio management fees are accounted on accrual basis as follows: (a) (b) (c) (ii) In case of fee based on fixed percentage of the corpus/ fixed amount, income is accrued over the period of the agreement. In case of fee based on the returns of the portfolio, income is accounted on the termination of the portfolio agreement / on each anniversary as per the agreement, whichever is earlier. In case of an upfront non-refundable fee, income is accounted in the year of receipt.
Funds received from Portfolio Management Services (PMS) Investors and corresponding Investments made on their behalf are not forming part of these financial statements.
C.
DEBENTURE REDEMPTION RESERVE In terms of Section 117C of the Companies Act, 1956, amounts equivalent to the principal value of the debentures and accrued interest thereon is transferred to Debenture Redemption Reserve proportionately over the term of the debentures.
D.
DISCOUNTED INSTRUMENTS The liability is recognised at face value at the time of issuance of discounted instruments. The discount on the issue is amortised over the tenure of the instrument.
E.
STRUCTURED LIABILITIES The Company has issued structured liabilities wherein the return on these liabilities is linked to non-interest benchmarks. Such structured liabilities have an embedded derivative which is the non-interest related return component. The embedded derivative is separated from the host contract and accounted separately (Refer accounting policy on derivates as per J below). The resultant debt component of such structured liabilities is recognised in the Balance Sheet under the head Unsecured Loans and is measured at amortised cost using yield to maturity basis.
F.
FIXED ASSETS AND INTANGIBLE ASSETS 1. 2. Fixed assets are stated at cost inclusive of incidental expenses less accumulated depreciation. The Company adopts the Straight Line Method of depreciation so as to write off 100% of the cost of the assets at rates equal to or higher than those prescribed under Schedule XIV to the Companies Act, 1956 based on the Managements estimate of the useful lives of all the assets. Estimated useful lives over which assets are depreciated are as follows:
Its grt 2b 25
23
Leasehold Improvements Over the period of lease subject to a maximum of 6 years Premises Furniture and Fixtures Computers Office Equipments Motor Vehicles Software 3. G. INVESTMENTS Investments are classified into long term investments and current investments. Investments which are intended to be held for more than one year are classified as long term investments and investments which are intended to be held for less than one year are classified as current investments. Long term investments are accounted at cost and any decline in the carrying value other than temporary in nature is provided for. Current investments are valued at cost or market/fair value, whichever is lower. In case of investments in units of a mutual fund, the net asset value of units is considered as the market / fair value. H. STOCK IN TRADE Securities acquired with the intention to trade are classified as stock- in- trade. Stock-in -trade is valued at cost, calculated by applying the weighted average cost method, or fair value whichever is lower. I. FOREIGN CURRENCY TRANSACTIONS Transactions in foreign currencies are recorded at the rate of exchange prevailing on the date of the transaction. Exchange differences arising on settlement of revenue transactions are recognized in the Profit and Loss account. Monetary assets and liabilities contracted in foreign currencies are restated at the rate of exchange ruling at the Balance Sheet date.Exchange differences arising on settlement of the transaction and on account of restatement of assets and liabilities are dealt with in the Profit and Loss Account. The transactions of the foreign operations that is integral to the operations of the company are translated at average foreign exchange rate for the month. J. DERIVATIVES 1. Outstanding derivative contracts, including embedded derivatives, are measured at fair value as at each Balance Sheet date. Fair value of derivatives is determined using quoted market prices in an actively traded market, for the instrument, wherever available, as the best evidence of fair value. In the absence of quoted market prices in an actively traded market, a valuation technique is used to determine the fair value. In most cases the valuation techniques use as input parameters, observable market data in order to ensure reliability of the fair value measure. The marked to market on derivative contracts is determined on a portfolio basis with net unrealized losses being recognised in the Profit and Loss Account. Net unrealized gains are not recognised in the Profit and Loss Account on grounds of prudence as enunciated in Accounting Standard 1, Disclosure of Accounting Policies. 2. (a) Initial Margin Equity Derivative Instrument representing the initial margin paid and /or additional margin paid over and above the initial margin, for entering into contracts for equity index/ stock futures and equity index/ stock options, which are released on final settlement / squaring up of the underlying contracts, are disclosed under Loans and Advances. Margin Deposits Equity Derivative Instrument representing the deposit paid in respect of mark to market margin is disclosed under Loans and Advances. Equity Index/ Stock Option Premium Account represents the premium paid or received for buying or selling the options, respectively. On final settlement or squaring up of contracts for equity index/ stock futures, the realised profit or loss after adjusting the unrealized loss already accounted, if any, is recognised in the Profit and Loss Account and shown as Profit / (Loss) on Trading in Options / Futures. On settlement or squaring up of equity index/ stock options before expiry, the premium prevailing in Equity Index/Stock Option Premium Account on that date is recognised in the Profit and Loss Account. When more than one contract in respect of the relevant series of equity index/ stock futures or equity index/ stock options contract to which the squared-up contract pertains is outstanding at the time of the squaring-up of the contract, the contract price of the contract so squared-up is determined using the weighted average cost method for calculating the profit/loss on squaring-up. 58 years 6 years 3 years 5 years 4 years 3 years Fixed assets costing less than ` 5,000 are fully depreciated in the year of purchase/put to use.
(b) (c)
24
Its grt 2b 25
Reports
K.
EMPLOYEE BENEFITS Long Term Employee Benefits (a) Defined Contribution Plan Contribution as required by the Statute made to the Government Provident Fund is debited to the Profit and Loss Account. (b) Defined Benefit Plan The company accounts for the liability for future gratuity benefits based on an actuarial valuation conducted by an independent actuary. The gratuity obligation is wholly unfunded. The net present value of the companys obligation towards the same is actuarially determined based on the projected unit credit method as at the Balance Sheet date. Actuarial gains/losses are immediately recognised in the profit and loss account and are not deferred. (c) Other Long-term Employee Benefit The company accrues the liability for compensated absences based on the actuarial valuation as at the balance sheet date conducted by an independent actuary. The net present value of the companys obligation is determined based on the projected unit credit method as at the Balance Sheet date. Short Term Employee Benefits Other employee benefits The undiscounted amount of employee benefits expected to be paid in exchange for the services rendered by employees is recognised during the period when the employee renders the service. These benefits include performance incentives.
L.
EMPLOYEE STOCK APPRECIATION SCHEME Cash-settled transactions: The cost of cash-settled transactions (stock appreciation rights) is measured initially using intrinsic value method at the grant date taking into account the terms and conditions upon which the instruments are granted. This intrinsic value is amortised on a straightline basis over the vesting period with a recognition of corresponding liability. This liability is remeasured at each balance sheet date up to and including the settlement date with changes in intrinsic value recognised in profit and loss account in Salaries, Allowances and Bonus.
M.
TAXES ON INCOME The Income Tax expense comprises Current tax and Deferred tax. Current tax is measured at the amount expected to be paid in respect of taxable income for the year in accordance with the Income tax Act, 1961. Deferred tax adjustments comprises of changes in the deferred tax assets and liabilities. Deferred tax assets and liabilities are recognised for the future tax consequences of timing differences being the difference between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets arising mainly on account of carry forward losses and unabsorbed depreciation under tax laws are recognised only if there is virtual certainty of its realisation, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantially enacted before the balance sheet date. Changes in deferred tax assets / liabilities on account of changes in enacted tax rates are given effect to in the Profit and Loss Account in the period of the change. The carrying amount of deferred tax assets are reviewed at each balance sheet date. The company writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized.
N.
IMPAIRMENT OF ASSETS The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/ external factors.
O.
PROVISIONS, CONTINGENT LIABILITIES & CONTINGENT ASSETS A provision is recognised when there is a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. Provision is not discounted to its present value and is determined based on the best estimate required to settle the obligation at the year end date. These are reviewed at each year end date and adjusted to reflect the current best estimate. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.
P.
OPERATING LEASE Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term, are classified as operating leases. Operating lease payments/ receipts are recognised as an expense/ income in the Profit and Loss account on a straight-line basis over the lease term. Its grt 2b 25
25
2.
Contingent Liabilities: (a) (b) (c) (d) (e) Income tax matters in respect of which appeal is pending - ` 55.32 Lacs (Previous Year ` Nil). This is being disputed by the Company and hence not provided for. Service tax matters in respect of which appeal is pending - ` 51.71 Lacs (Previous Year ` 51.71 Lacs). This is being disputed by the Company and hence not provided for. Capital commitments (net of advances) - ` 154.20 Lacs (Previous Year ` 805.70 Lacs) Claims against the Company not acknowledged as debt by the Company `772.22 Lacs (Previous Year ` 544.38 Lacs) Stamp duty payable in respect of Premises for which appeal is pending - `Nil (Previous Year ` 161.44 Lacs). This is being disputed by the Company and hence not provided for. The Company has taken various offices, residential and godown premises under operating lease or leave and license agreements. These are generally cancellable in nature and range between 11 months to 72 months (with a maximum lock-in period of 36 months). These leave and license agreements are generally renewable or cancellable at the option of the Company. Rent payments are recognised in the Profit and Loss Account under the head Rent in Schedule 19. The future minimum lease payments under non-cancellable operating lease not later than one year is ` 638.09 Lacs (Previous Year ` 58.86 Lacs) and later than one year but not later than five years is `990.67 Lacs (Previous Year ` 102.89 Lacs).
3.
(a)
(b) (c)
4.
Deferred Tax: Components of deferred tax balances as at 31st March 2011: Particulars Deferred Tax Assets Provision for Doubtful Debts and Contingencies Provision for Gratuity Provision for Leave Encashment Depreciation Interest on Debentures Diminution in Value of Investments Others Total 1,147.54 285.56 330.43 636.90 497.52 367.64 3,265.59 1,626.26 177.95 233.00 714.70 769.35 24.82 176.89 3,722.97 31st March 2011 (` in Lacs) ` 31st March 2010 (` in Lacs)
5.
Employee Benefits:
(a)
Gratuity
i) Reconciliation of opening and closing balances of the present value of the defined benefit obligation for gratuity benefits is given below. Particulars Change in Defined Benefit Obligation Opening Defined Benefit Obligation Current Service Cost Interest Cost Actuarial Losses / (Gain) Past Service Cost Liabilities Extinguished on Curtailment Liabilities Extinguished on Settlements Liabilities Assumed on Acquisition Benefits Paid Closing Defined Benefit Obligation 535.70 154.63 51.44 36.59 217.48 (10.57) (105.13) 880.14 468.75 113.32 37.71 63.59 (20.40) 6.26 (133.53) 535.70 31st March 2011 (` in Lacs) ` 31st March 2010 (` in Lacs)
26
Its grt 2b 25
Reports
(ii)
Reconciliation of present value of the obligation and the fair value of the plan assets Particulars Present Value of Funded Obligations Fair Value of Plan Assets Present Value of Unfunded Obligations Unrecognized Past Service Cost Net Liability Amounts in the Balance Sheet Liabilities - Provisions (Schedule 13) Assets Net Liability 880.14 880.14 535.70 535.70 31st March 2011 (` in Lacs) ` 880.14 880.14 31st March 2010 (` in Lacs) 535.70 535.70
(iii)
Cost recognised for the year Particulars Current Service Cost Interest on Defined Benefit Obligation Expected Return on Plan Assets Net Actuarial Losses / (Gains) Recognized in Year Past Service Cost Losses / (Gains) on Curtailments and Settlements Losses / (Gains) on Acquisition and Divestiture Total, Included in Schedule 17 Personnel - Gratuity Actual Return on Plan Assets 31st March 2011 (` in Lacs) ` 154.63 51.44 36.59 217.48 24.36 484.50 31st March 2010 (` in Lacs) 113.33 37.71 63.59 (20.27) 194.36
(iv)
Principal actuarial assumption Particulars Discount Rate Salary Escalation Rate Assumptions in 31st March 2011 8.26% per annum 15% per annum for first 2 years, 10% per annum for the next 2 years and 6% per annum there after Assumptions in 31st March 2010 8.01% per annum 15% per annum for first 2 years, 10% per annum for the next 2 years and 6% per annum there after
(v)
Experience Adjustments for the current annual period and previous four periods. 31st March 2011 (` in Lacs) ` Defined Benefit Obligation Plan Assets Surplus/ (Deficit) Experience Adjustment on Plan Liabilities Experience Adjustment on Plan Assets 880.14 880.14 14.96 31st March 2010 (` in Lacs) 535.70 (535.70) 57.98 31st March 2009 (` in Lacs) 468.75 (468.75) (143.00) 31st March 2008 (` in Lacs) 436.73 (436.73) 45.34 Its grt 2b 25 31st March 2007 (` in Lacs) 278.03 (278.03) 36.64
27
(b)
During the year, the Company has recognised the following amounts in the Profit and Loss Account:31st March 2011 (` in Lacs) ` Employers Contribution to Provident Fund Superannuation Fund Employees State Insurance Corporation Total 853.65 8.00 71.75 933.40 31st March 2010 (` in Lacs) 689.74 8.00 20.52 718.26
6. 7. 8.
Securities, which are not registered in the name of the Company, are held by the Company with valid transfer documents. Securities received from clients as collateral for margins are held by the Company in its own name in a fiduciary capacity. Units of Mutual Fund Purchased / Allotted and Sold / Redeemed during the year. 2010-11 Face Value Mutual Fund Schemes: Kotak Mahindra Mutual Fund Kotak Liquid (Insitutional Premium) Growth Kotak Mahindra Mutual Fund Kotak Floater Long Term Growth Non Convertible Debentures: Shriram Transport Finance Company Limited L&T Finance Limited 1,000 1,000 1,044,017 612,319 1,044,017 612,319 10 10 3,279,110,871 743,412,445 3,279,110,871 743,412,445 4,864,766,927 1,623,501,211 4,864,766,927 1,623,501,211 Purchased / Allotted Sold / Redeemed 2009-10 Purchased / Allotted Sold / Redeemed
9.
Quantitative Information in Respect of Trading in Securities# 31st March 2011 Quantity Nos/Kgs. Opening Stock (A) Equity Shares TOTAL (A) Purchases Equity Shares Gold Bonds & Other Securities TOTAL (B) Sales Equity Shares Gold Bonds & Other Securities TOTAL (C) Closing Stock (D) Equity Shares TOTAL (D) Profit/(Loss) on Trading in Options/ Futures (Net) (E) Profit/(Loss) (D+C-B-A+E) 1,211,464 1,211,464 2,776.52 2,776.52 4,524.23 4,787.61 1,012,335 1,012,335 1,926.82 1,926.82 6,087.50 8,720.64 40,771,554 676 6,040 40,778,220 190,535.64 13,274.37 16,304.03 220,114.04 53,229,908 159 3,165,002 56,395,069 133,876.85 2,557.10 3,217.99 139,651.94 40,970,683 676 6,040 40,977,399 191,135.05 13,301.14 16,264.17 220,700.36 51,989,089 159 3,165,002 55,154,250 131,499.51 2,564.21 3,211.38 137,275.10 1,012,335 1,012,335 1,926.82 1,926.82 2,253,154 2,253,154 1,670.52 1,670.52 Value (` in Lacs) ` 31st March 2010 Quantity Nos/Kgs. Value (` in Lacs)
#Transactions and stocks on account of error trades / trades not confirmed by clients have not been considered.
28
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Reports
10.
(a)
Outstanding Future Contracts as on 31st March 2011. (` in Lacs) ` 31st March 2011 No of Contracts 3,894 160 970 No of Units 194,700 4,000 795,375 Notional Amount 11,209.89 476.21 2,595.14 No of Contracts 2,007 3,058 31st March 2010 No of Units 100,350 3,061,738 Notional Amount 5,284.88 13,410.78 (` in Lacs) ` 31st March 2011 31st March 2010 No of Contracts No of Units Total Premium Carried Forward Net of Provisions Made 2,276.12 (4,108.69) 1.59 (2.66)
Particulars Type of Derivative S&P CNX Nifty Futures Bank Nifty Stock Futures (b)
Outstanding Option Contracts as on 31st March 2011.
Type of Derivative
No of Contracts
No of Units
Total Premium Carried Forward Net of Provisions Made 1,971.74 4,904.73
S&P CNX Nifty Options Long S&P CNX Nifty Options Short Stock Options Long Stock Options Short 11.
13,006 16,338
650,300 816,900
12,405 10,365 14 36
620,250 518,250 32,318 88,218
The Company is a corporate member broker of the National Stock Exchange of India Limited and Bombay Stock Exchange Limited. The Company is eligible to provide margin-trading facility to its clients in terms of the Securities and Exchange Board of India circular. Sundry debtors include ` 6,204.74 Lacs (Previous Year ` 5,652.58 Lacs) on account of loans granted under margin trading facility to clients against pledge of securities. Fixed deposits with scheduled banks include ` 104,612.20 Lacs (Previous Year ` 125,640.72 Lacs) which is under the lien of National Securities Clearing Corporation Limited and ` 10,554.96 Lacs (Previous Year ` 11,891.45 Lacs) which is under the lien of Bombay Stock Exchange Limited and ` 1,053.91 Lacs (Previous year ` Nil) which is under the lien of Multi Commodity Exchange Limited. Provision for Contingencies: (` in Lacs) ` Nature of Liability Provision as on 1st April, 2010 3,019.19 3,019.19 2,772.79 Addition Amount Used Unused Amount Reversed 1,752.21 1,752.21 912.79 Provision as on 31st March 2011 1,804.91 1,804.91 3,019.19
12.
13.
Stamp Duty on Trades Total Previous Year
537.93 537.93 1,159.19
Based on legal opinion, the Management is of the view that certain provisions for earlier years are no longer required and have reversed `1,752.21 Lacs (Previous Year ` 912.79 Lacs). 14. (a) Fee Income: Particulars Client Money Management Services Depository Fees Loan Syndication and Arrangement Fees Advisory Fees Other Fees Total * Net of Income pertaining to earlier years written off ` 272.58 Lacs (Previous Year ` Nil) (b) Interest Income Others comprises interest on delayed payments and from clients. Its grt 2b 25 31st March 2011 (` in Lacs) ` 1,235.62* 2,526.70 13.47 280.77 457.49 4,514.05 31st March 2010 (` in Lacs) 3,954.04* 2,759.63 11.39 158.96 423.97 7,307.99
29
15. 16. 17.
Dividend income represents dividend on long term investments (other than trade) `72.25 Lacs (Previous Year ` 27.91 Lacs) and on stock in trade `85.98 Lacs (Previous Year ` 54.56 Lacs). Profit on sale of investments (net) represents profit on sale of current investments (net) (other than trade) ` 216.73 Lacs (Previous Year Loss (net) ` 272.14 Lacs) and profit on sale of long term investments (other than trade) ` 944.17 Lacs (Previous Year ` Nil). Liabilities written back comprises of provision no longer required in respect of sub brokerage `156.96 Lacs (Previous Year ` 48.99 Lacs) and expenses ` 22.68 Lacs (Previous Year ` 112.72 Lacs). EMPLOYEE SHARE BASED PAYMENTS: (a) During the year the Company has paid ` 495.45 Lacs (Previous Year ` 519.19 Lacs) towards Kotak Mahindra Equity Option Plan of Kotak Mahindra Bank Limited, the Holding Company, in respect of stock options granted to its employees. This amount has been charged to the Profit and Loss Account and included under the head Salaries, Allowances and Bonus in Schedule 17. STOCK OPTION SCHEME
18.
(b)
The Company has granted stock appreciation rights (SARs) to select employees which can be settled in cash. These options will vest on the respective due dates in a graded manner as per the terms and conditions of grant. The contractual life of the SARs range from 0.46 years to 1.38 yea` The intrinsic value of SARs is measured at the grant date taking into account terms and conditions upon which the instruments are granted. Detail of activity under SARs is summarized below: No. of SARs Particulars Outstanding at the beginning of the year Granted during the year Exercised during the year Expired during the year Forfeited during the year Outstanding at the end of the year 31 Mar 2011* 190,320 54,270 35,550 100,500 31 Mar 2010*
*The number of SARs have been adjusted for split of the underlying equity shares from ` 10 paid up to ` 5 paid up per share. Effect of the employee share-based payment plans on the profit and loss account and on its financial position:
Particulars Total Employee Compensation Cost pertaining to share-based payment plans Closing balance of liability for cash-settled options 19.
31 March 2011 ` (` in Lacs) 1,096.04 305.09
31 March 2010 (` in Lacs) 519.19
Recovery of expenses in Schedule 17 and Schedule 19 are amounts recovered from fellow subsidiaries towards the value of costs apportioned of the Companys employees and facilities in accordance with the agreements on allocation of expenses with holding company, fellow subsidiary and associate companies. Earnings per share (Face value ` 10) ` (` in Lacs) Earnings Net profit for the year Weighted average number of shares (in lacs) Earnings per share (Basic and Diluted) in Rupees 2010-11 18,193.79 16 1,137.11 2009-10 26,010.04 16 1,625.63
20.
30
Its grt 2b 25
Reports
21.
(a)
Managerial Remuneration:2010-2011 (` in Lacs) ` 263.98 5.78 30.19 75.00 374.95 2009-2010 (` in Lacs) 230.93 11.28 174.83 10.00 427.04
Particulars
Salaries and Incentives # Contribution to Provident and Other Funds Employee Stock Option Plan (Refer Note 19) Commission to Non Whole-Time Director TOTAL
# The above excludes provision for gratuity since this is based on actuarial valuation done on an overall Company basis, provision for incentives done on an overall Company basis and also excludes allocations from group companies. (b) Computation of net profit in accordance with Section 198 of the Companies Act, 1956. 2010-2011 (` in Lacs) ` 27,157.26 2009-2010 (` in Lacs) 40,387.62
Particulars Profit Before Tax Add: Depreciation / Amortisation as per Profit and Loss Account Provision for Doubtful Debts Provision for Contingencies (Net) Directors Remuneration
1,785.23 374.95 29,317.44
1,958.31 87.33 246.39 427.04 43,106.69
Less: Depreciation Under Section 350 of Companies Act Provision of Diminution in Value of Investments Written Back As No Longer Required (Net of Profit (Previous Year Loss) on Sale of Investment Provision for contingencies (Net) Written Back As No Longer Required Profit on Buyback of Debentures Provision for Doubtful Debts Written Back As No Longer Required Liabilities Written Back As No Longer Required Net Profit Commission Payable to Non Whole-Time Director @1% Commission restricted to 22. (a) Expenditure in Foreign Currency (on accrual basis): (i) (ii) (iii) (iv) (v) (vi) (vii) Travelling ` 15.66 Lacs (Previous Year ` 16.72 Lacs) Membership and Subscription ` 89.21 Lacs (Previous Year ` 83.12 Lacs) Conference and Meetings `30.53 Lacs (Previous Year ` 151.41 Lacs) Software ` 75.68 Lacs (Previous Year ` 14.68 Lacs) Business Promotion ` 101.45 Lacs (Previous Year ` 26.69 Lacs) Common Establishment Expenses - Reimbursement `256.87 Lacs (Previous Year `578.92 Lacs) Communication ` 107.42 Lacs (Previous Year ` 82.83 Lacs) Salary ` 66.10 Lacs (Previous Year ` 49.15 Lacs) Branch Expenses ` 34.05 Lacs (Previous Year ` 82.59 Lacs) Others ` 4.54 Lacs (Previous Year ` Nil) Its grt 2b 25 1,785.23 1,235.63 1,214.28 6.65 144.61 179.64 24,751.38 247.51 75.00 1,958.31 1,089.11 192.98 161.71 39,704.58 397.05 10.00
(viii) Data Processing Charges ` 18.52 Lacs ( Previous Year ` 17.38 Lacs) (ix) (x) (xi)
31
(b)
Earnings in Foreign Currency (on accrual basis): i) ii) iii) Advisory Fees ` 293.38 Lacs (Previous Year ` 142.71 Lacs) Interest Income ` 13.01 Lacs (Previous Year ` 11.69 Lacs) Mutual Fund Commission ` Nil (Previous Year `0.91 Lacs).
(c)
Remittance in Foreign Currency: Towards further capitalization of subsidiary ` 139.31 Lacs (Previous Year `304.08 Lacs)
23.
There are no delays in payments to micro and small enterprises as required to be disclosed under The Micro, Small and Medium Enterprises Development Act, 2006. The above information and that given in Schedule 12 Liabilities regarding micro and small enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the Auditors. Information with regard to other matters specified in paragraphs 4-C and 4-D of Part II of Schedule VI to the Companies Act 1956 is either nil or not applicable to the Company for the financial year ended 31st March 2010. Segment Information for the year ended 31st March 2011 (a) Information about Primary Business Segments Broking Trading and Principal Investments 19,056.28 Portfolio Management Unallocated Total
24. 25.
Particulars
Segment Revenue Income from external customers 53,284.83 1,234.60 22.68 73,575.71
Previous year
Income from inter segments
55,349.87
156.96
24,325.16
19,056.28
3,949.65
1,234.60
83,624.68
179.64
Previous year
Liabilities written back as no longer required
Previous year
Total
55.51
53,441.78
106.20
22.69
161.71
73,755.35
Previous year
Segment result
55,405.38
12,350.83
24,325.16
14,138.84
3,949.65
646.83
106.20
20.76
83,786.39
27,157.26
Previous year
Income Tax Current, Deferred and Fringe Benefit Tax
18,353.68
19,229.25
2,706.14
98.55
8,963.47
40,387.62
8,963.47
Previous year
Net Profit
14,377.58
14,377.58
18,193.79
Previous year
Other Information Carrying amount of segment assets 41,309.90 232,314.63 17.29 10,061.70
26,010.04
283,703.52
Previous year
Carrying amount of segment liabilities
55,789.08
84,977.28
225,329.37
26,484.32
115.31
0.07
10,945.41
2,846.95
292,179.17
114,308.62
Previous year
Cost to acquire tangible fixed assets
111,397.40
1,073.11
26,624.19
0.87
196.97
5.29
2,759.49
712.10
140,978.05
1,791.37
Previous year
Depreciation / Amortisation
589.89
952.06
48.26
18.13
21.97
25.40
5,787.76
789.64
6,447.88
1,785.23
Previous year
1,131.42
15.96
38.10
772.83
1,958.31
32
Its grt 2b 25
Reports
(b)
Notes: (i) The Company is organised into the following segments, namely Broking comprising of brokerage income earned on secondary market transactions done on behalf of clients, services rendered as depository participant and services rendered in connection with primary market subscription/ mobilisation and distribution of life insurance product. It also includes interest on delayed payments, incidental and consequential to secondary market related business received from clients. Trading and Principal Investments - comprising of proprietary trading in securities, interest on fixed deposits with banks and Income from investments. Portfolio Management - comprising of portfolio management services.
(ii) (iii) (iv)
Unallocated revenue consists of Liabilities Written Back as no longer required ` 22.68 Lacs (Previous Year ` 106.20 Lacs) Unallocated expenses comprise of general administrative expenses and taxation provided at an enterprise level. Segment assets comprise mainly of, fixed assets, trade and other receivables, stock-in-trade, accrued income receivable and advances. Unallocated assets represent mainly loans and advances. Segment liabilities include loans, trade and other payables and sundry creditors. Unallocated liabilities mainly include deferred tax, retirement benefits, outstanding expenses and statutory liabilities. The company operates in single geographical segment, accordingly the reporting requirements of secondary segement disclosure prescribed under paragraph 39 to 51 of Accounting Standard 17 on Segment Reporting have not been provided in the financial statements.
(v)
26.
Related party disclosures, as required by Accounting Standard 18, Related Party Disclosures issued by the Institute of Chartered Accountants of India are given below: 1. Relationships (During the year): A. Related parties where control exists: Nature of relationship Holding Company Related Party Kotak Mahindra Bank Limited (KMBL) (Holds 74.99% of the equity share capital) Mr. Uday S. Kotak, along with relatives and companies controlled by him, holds 45.56% of the equity share capital of KMBL Subsidiary B. Other Related Parties: (i) Fellow Subsidiaries: Kotak Mahindra Capital Company Limited Kotak Mahindra Prime Limited Kotak Mahindra Asset Management Company Limited Kotak Forex Brokerage Limited Kotak Mahindra Inc. Kotak Mahindra International Limited Kotak Mahindra Investments Limited Kotak Investment Advisors Limited Kotak Mahindra Old Mutual Life Insurance Company Limited Kotak Mahindra Trustee Company Limited (ii) (iii) Venture in respect of which the reporting enterprise is an associate Key management personnel Mr. Uday S. Kotak, Non Executive Chairman Mr. Narayan S. A., Non Executive Director (Managing Director Till 1st of April 2010) Ms. Falguni Nayar, Non Executive Director Mr. C.Jayaram, Non Executive Director Mr. D. Kannan, Managing Director (w.e.f 2nd April, 2010) Mr. Vikram Sud, Non Executive Director Kotak Mahindra Financial Services Limited
Its grt 2b 25
33
(iv)
Relatives of key management Personnel
Mr. A.K.S.Mani Mrs. Rekha Narayan Mr. Sanjay Nayar Mrs. Rashmi Mehta Mr. Hemant Mehta Mr. Suresh Kotak Mrs. Indira Kotak Mr. Dhawal Kotak Mrs. N Rajambal Mr. D G Subramanian Ms. Lakshmi S Mrs Shalini Sud
(v)
Enterprises over which Director/ key management personnel/ relatives of key management personnel have significant influence
Aero Agencies Limited Komaf Financial Services Limited Kotak Commodity Services Limited Infina Finance Private Limited Ahmedabad Commodity Exchange Limited Asian Machinery and Equipment private Limited
(vi)
Mutual fund / venture capital fund managed by fellow subsidiary
Kotak Mahindra Mutual Fund Managed by Kotak Mahindra Asset Management Company Limited Kotak Mahindra Venture Capital Fund sponsored by Kotak Mahindra Trusteeship Services Limited Kotak Alternate Opportunities India Fund managed by Kotak Investment Advisors Limited
27.
Figures for the previous year have been regrouped wherever necessary to conform to current years classifications. The Schedules referred to above and the attached notes form an integral part of the financial statements. Signatures to Schedules 1 to 20 forming part of the financial statements and to the above notes.
For Price Waterhouse Firm Registration Number: 301112E Chartered Accountants Uday S. Kotak Chairman Vivek Prasad Partner Membership Number: F104941 Mumbai, 29th April 2011 Falguni Nayar Director
34
Following transactions were carried out with related parties in the ordinary course of business Holding Company/ Controlling Entity Subsidiary Fellow Subsidiary Companies Key Management Personnel Relatives of Key Management Personnel Enterprises over which Key Management Personnel/Relatives thereof are having Significant Influence Current Year Previous Year 130.95 130.95 2,564.41 20,000.00 22,564.41 60.00 2,500.00 196,556.40 196,556.40 302,544.11 302,544.11 176,739.84 176,739.84 38,689.19 38,689.19 9,990.24 9,990.24 916.39 916.39 1.92 1.92 14.29 5.87 20.16 3.74 5.87 9.61 894.34 894.34 2,560.00 30.00 30.00 72.25 72.25 139.30 500.00 33.97 673.27 38,604.18 38,604.18 1.92 1.92 14.29 5.87 20.16 38,689.19 38,689.19 286,010.73 286,010.73 302,544.11 302,544.11 19,284.70 19,284.70 72.25 72.25 304.08 455.45 40.00 8,748.75 9,548.28 5.00 5.00 9,875.89 9,875.89 3.74 5.87 9.61 9,990.24 9,990.24 894.34 894.34 916.39 916.39 196,556.40 196,556.40 176,739.84 176,739.84 86.67 5,500.00 5,500.00 55.00 5,000.00 5,055.00 11.42 31.61 43.64 Grand Total
Nature of Transactions
Name of Related Party
Its grt 2b 25
Current Year Previous Year Current Year Previous Year Current Year Previous Year 30.00 286,010.73 286,010.73 38,604.18 9,875.89 38,604.18 9,875.89 5.00 5.00 139.30 304.08 533.97 9,244.20 139.30 304.08 500.00 33.97 455.45 40.00 8,748.75 72.25 72.25 72.25 72.25 19,284.70 19,284.70 30.00 2,560.00 5,055.00 60.00 2,500.00 55.00 5,000.00 22,564.41 5,500.00 2,564.41 20,000.00 5,500.00 43.03 130.95 43.64 11.42 31.61 130.95 43.64
Current Year Previous Year
Current Year Previous Year Current Year Previous Year
Finance Interest Paid On Margin Money
Kotak Mahindra Investments Limited Kotak Mahindra Prime Limited Infina Finance Private Limited
Interest Paid On Margin Money Total
Debentures Taken
Kotak Investment Advisors Limited Kotak Mahindra Prime Limited
Debentures Taken Total
Debentures Redeemed
Kotak Forex Brokerage Limited Kotak Mahindra Prime Limited
Debentures Redeemed Total
Debentures Redeemed
Narayan S A
Debentures Redeemed Total
Sale of Warrants/Debentures
Kotak Mahindra Bank Limited
Sale of Warrants/Debentures Total
Dividend on Preference shares
Kotak Mahindra Asset Management Company Limited
Dividend on Preference shares Total
Schedules
Investments
Kotak Mahindra Financial Services Limited Kotak Alternative Oppurtunties India Fund Kotak Forex Brokerage Limited Kotak Mahindra Prime Limited
Investments Total
Deposits Redeemed
Kotak Mahindra Old Mutual Life Insurance Limited
Deposits Redeemed Total
Purchase Of Units Of Exchange Traded Fund
Kotak Mahindra Mutual Fund
Purchase Of Units Of Exchange Traded Fund Total
Deposits Taken
Kotak Commodity Services Limited Ahmedabad Commodity Exchange Limited
Deposits Taken Total
Deposits Repaid
Reports
Deposits Repaid Total
Sales/Redeemption Of Units Of Exchange Traded Funds
Sales/Redeemption Of Units Of Exchange Traded Funds Total
Purchase Of Prefrence shares
Komaf Financial Services Limited
Purchase Of Prefrence shares Total
Sale Of Equity Shares
Sale Of Equity Shares Total
Its grt 2b 25
Fixed Deposits Placed During The Year
Fixed Deposits Placed During The Year Total
35
Fixed Deposits Repaid During The Year
Fixed Deposits Repaid During The Year Total
36
Holding Company/ Controlling Entity Subsidiary Fellow Subsidiary Companies Key Management Personnel Relatives of Key Management Personnel Enterprises over which Key Management Personnel/Relatives thereof are having Significant Influence Current Year Previous Year 12,157.78 12,157.78 3.27 656.23 4.50 664.00 1,668.74 1,668.74 1,625.35 1,625.35 139,593.86 139,593.86 1,248.05 1,248.05 156,127.24 156,127.24 443.38 304.08 51,025.11 186.41 186.41 443.38 304.08 1,895.45 198.97 850.00 21,000.00 27,080.69 1,395.45 165.00 850.00 21,000.00 27,080.69 50,491.14 132.96 132.96 472.10 179.64 2.90 395.03 74.17 14.93 164.71 30.00 30.00 25,496.51 5,570.00 10.00 23,000.00 2,486.51 70.00 5,500.00 841.03 841.03 186.82 302.15 13.74 13.74 186.82 302.15 742,603.45 1,121,599.50 26.11 5.87 31.98 742,603.45 1,121,599.50 742,603.45 1,121,599.50 742,603.45 1,121,599.50 650.75 10.56 640.19 12,697.30 12,697.30 Grand Total Current Year Previous Year Current Year Previous Year Current Year Previous Year 12,157.78 12,157.78 664.00 650.75 3.27 656.23 4.50 10.56 640.19 12,697.30 12,697.30 Current Year Previous Year Current Year Previous Year Current Year Previous Year 742,603.45 1,121,599.50 742,603.45 1,121,599.50 742,603.45 1,121,599.50 742,603.45 1,121,599.50 186.82 186.82 1,668.74 1,668.74 10.00 23,000.00 2,486.51 25,496.51 2.90 395.03 74.17 472.10 443.38 1,895.45 198.97 850.00 21,000.00 27,080.69 51,468.49 186.41 186.41 13.74 13.74 1,625.35 1,625.35 139,593.86 139,593.86 302.15 302.15 841.03 841.03 70.00 5,500.00 5,570.00 30.00 30.00 14.93 164.71 179.64 304.08 1,395.45 165.00 850.00 21,000.00 27,080.69 50,795.22 132.96 132.96 26.11 5.87 31.98 1,248.05 1,248.05 156,127.24 156,127.24
Interest Received On Fixed Deposits
Interest Received On Fixed Deposits Total
Interst On Debentures Recd
Kotak Forex Brokerage Limited Kotak Mahindra Prime Limited Kotak Mahindra Investments Limited
Interst On Debentures Recd Total
Mutual Fund Investments
Purchase
Purchase Total
Sale/Redemption
Sale/Redemption Total
Dividend Received/Profit Earned
Dividend Received/Profit Earned Total
Outstandings
Overdraft From Banks
Overdraft From Banks Total
Debentures Taken
Debentures Taken Total
Debentures Issued
Narayan S A
Debentures Issued Total
Interest Accrued On Debenture
Interest Accrued On Debenture Total
Investments
Kotak Mahindra Financial Services Limited Kotak Alternative Oppurtunties India Fund Kotak Forex Brokerage Limited Kotak Mahindra Asset Management Company Limited Kotak Mahindra Capital Company Limited Kotak Mahindra Prime Limited
Investments Total
Units Of Exchange Traded Funds
Units Of Exchange Traded Funds Total
Deposits Taken
Deposits Taken Total
Interest Accrued On Fixed DepositsReceivable
Interest Accrued On Fixed DepositsReceivable Total
Fixed Deposits Placed
Fixed Deposits Placed Total
Holding Company/ Controlling Entity
Subsidiary
Fellow Subsidiary Companies
Relatives of Key Management Personnel
Enterprises over which Key Management Personnel/Relatives thereof are having Significant Influence Current Year Previous Year 515.58 13,473.09 48,968.96 70,833.07 80,439.62 148,104.93 72.45 55.24 5.37 0.39 51.71 0.95 1,217.39 585,598.42 1,866.67 918.00 26,642.74 72,468.75 286,846.57 93,697.35 36,581.98 15.60 74.25 5.11 32.72 38.29 24.95 1.46 256,742.89
Grand Total
Current Year Previous Year Current Year Previous Year Current Year Previous Year 515.58 515.58 361,819.67 519,022.06 127.69 89.85 58.42 102.53 586,815.81 256,742.89 949,337.17 775,957.33 13,473.09 48,968.96 70,833.07 80,439.62 148,104.93 1,866.67 918.00 26,642.74 72,468.75 286,846.57 93,697.35 36,581.98 72.45 55.24 15.60 74.25 5.37 0.39 51.71 0.95 5.11 32.72 38.29 24.95 1.46 1,217.39 585,598.42 256,742.89
Its grt 2b 25
Broking Transactions (Secondary And Primary Market Operations)
Purchases (Broking)
Kotak Mahindra Bank Limited Kotak Investment Advisors Limited Kotak Mahindra Capital Company Limited Kotak Mahindra International Limited Kotak Mahindra Investments Limited Kotak Mahindra Mutual Fund Kotak Mahindra Old Mutual Life Insurance Limited Kotak Mahindra Prime Limited D Kannan Narayan S A D G Subramanian Hemant Mehta Lakshmi S Rekha Narayan Sanjay Nayar Suresh Kotak Kotak Commodity Services Limited Infina Finance Private Limited
Purchases (Broking) Total
Schedules
Sales (Broking)
Reports
Kotak Mahindra Bank Limited Kotak Investment Advisors Limited Kotak Mahindra Capital Company Limited Kotak Mahindra International Limited Kotak Mahindra Investments Limited Kotak Mahindra Mutual Fund Kotak Mahindra Old Mutual Life Insurance Limited Kotak Mahindra Prime Limited C.Jayaram D Kannan Narayan S A A K S Mani D G Subramanian Hemant Mehta Lakshmi S Rajambal N Rashmi Mehta Rekha Narayan Sanjay Nayar Suresh Kotak Kotak Commodity Services Limited Infina Finance Private Limited Asian Machinery and equipment Private Limited 43,359.83 65.28 25,015.53 30.69 364,853.69 26.53 4.29 0.65 23.25 146.85 344.62 490,327.17 1.21 3.74 1.59 13.57 175.96 681.45 1,005.47 1,300.38
43,359.83
25,015.53
12,141.44 11,510.41 52,096.09 68,371.99 83,644.42 137,089.34
333.05 591.91 27,827.85 77,075.54 273,225.98 69,149.54 42,123.30
535.06 341.34 129.07
673.41 357.00 269.97
0.46 6.81 0.29 4.42 0.31 5.73 34.99 3.64 2.05 58.70
5.03 0.39 4.14 43.73 59.81 0.08 113.18
1,221.14 631,764.29 13.04 632,998.47
0.86 242,692.57
43,359.83 12,141.44 11,510.41 52,096.09 68,371.99 83,644.42 137,089.34 535.06 341.34 129.07 0.46 6.81 0.29 4.42 0.31 5.73 34.99 3.64 2.05 1,221.14 631,764.29 13.04 242,693.43 1,042,276.16 65.28 26.53 4.29 0.65 23.25 146.85 344.62
25,015.53 333.05 591.91 27,827.85 77,075.54 273,225.98 69,149.54 42,123.30 673.41 357.00 269.97 5.03 0.39 4.14 43.73 59.81 0.08 0.86 242,692.57 759,449.69 30.69 1.21 3.74 1.59 13.57 175.96 681.45
Its grt 2b 25
Sales (Broking) Total Brokerage Earned
Kotak Mahindra Bank Limited Kotak Investment Advisors Limited Kotak Mahindra Asset Management Company Limited Kotak Mahindra Capital Company Limited Kotak Mahindra International Limited Kotak Mahindra Investments Limited Kotak Mahindra Mutual Fund
37
38
Holding Company/ Controlling Entity Subsidiary Fellow Subsidiary Companies Key Management Personnel Relatives of Key Management Personnel Enterprises over which Key Management Personnel/Relatives thereof are having Significant Influence Current Year Previous Year 255.00 87.83 0.80 0.63 0.28 0.07 0.01 0.03 0.13 0.01 184.28 0.03 1,140.57 0.02 5.27 0.04 20.74 23.86 974.17 968.56 1.46 91.91 930.16 1,966.59 0.01 12.95 0.05 13.00 0.01 0.05 0.06 0.02 0.01 0.01 0.01 0.04 0.07 6.49 0.09 1.82 0.04 1.95 5.33 0.02 992.85 992.87 0.01 1.74 172.85 174.60 39.28 39.28 142.48 142.48 72.25 72.25 0.09 0.09 3.21 0.02 0.58 8.18 0.01 0.01 0.02 0.02 5.27 0.04 17.54 1.46 11.72 825.23 93.21 12.95 0.05 0.01 0.01 0.01 0.04 0.02 992.85 1,937.56 1,234.29 42.94 42.94 72.25 72.25 0.07 0.15 0.01 10.75 9.83 0.01 6.46 0.02 0.01 1.74 172.85 201.90 91.91 23.86 974.17 968.56 0.01 0.05 0.09 1.82 0.04 39.28 2,099.79 191.59 63.61 1.11 0.56 0.52 0.06 0.06 0.12 0.06 68.39 184.28 0.03 184.31 68.39 68.39 Grand Total Current Year Previous Year Current Year Previous Year Current Year Previous Year 65.28 0.09 0.09 1.46 91.91 0.07 12.09 11.72 825.23 93.21 0.07 0.09 3.21 0.02 0.58 8.18 0.01 0.15 0.01 10.75 9.83 0.01 0.02 0.01 6.46 0.02 72.25 72.25 72.25 72.25 142.48 42.94 142.48 42.94 30.69 889.02 1,132.72 1.71 2.19 0.25 0.30 255.00 87.83 191.59 63.61 0.80 0.63 0.28 1.11 0.56 0.52 0.07 0.01 0.03 0.13 0.01 0.06 0.06 0.12 0.06 Current Year Previous Year Current Year Previous Year Current Year Previous Year
Kotak Mahindra Old Mutual Life Insurance Limited Kotak Mahindra Prime Limited C.Jayaram D Kannan Narayan S A D G Subramanian Lakshmi S Rashmi Mehta Rekha Narayan Sanjay Nayar Infina Finance Private Limited Asian Machinery and equipment Private Limited
Brokerage Earned Total
Liabilities Written Back
Liabilities Written Back Total
Dividend Recievable
Kotak Mahindra Asset Management Company Limited
Dividend Recievable Total
Outstandings Secondary
Receivable
Kotak Mahindra Bank Limited Kotak Investment Advisors Limited Kotak Mahindra Capital Company Limited Kotak Mahindra International Limited Kotak Mahindra Investments Limited Kotak Mahindra Mutual Fund Kotak Mahindra Old Mutual Life Insurance Limited Kotak Mahindrra Trustee Company Limited Narayan S A Hemant Mehta Rekha Narayan Shalini Sud Komaf Financial Services Limited Kotak Commodity Services Limited Infina Finance Private Limited
Receivable Total
Payable
Kotak Mahindra Bank Limited Kotak Mahindra Capital Company Limited Kotak Mahindra International Limited Kotak Mahindra Investments Limited Kotak Mahindra Prime Limited D Kannan Vikram Sud D G Subramanian Lakshmi S Rashmi Mehta Rekha Narayan Kotak Commodity Services Limited Infina Finance Private Limited
Payable Total
Other Reciepts And Payments
Holding Company/ Controlling Entity
Subsidiary
Relatives of Key Management Personnel
Enterprises over which Key Management Personnel/Relatives thereof are having Significant Influence Current Year Previous Year 0.02 4,340.78 0.27 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 184.03 0.13 141.44 0.35 0.67 6.24 16.54 4,525.31 495.45 495.45 4,985.26 233.97 517.94 30.71 22.91 1.67 20.54 2.59 0.35 0.67 3,016.61 519.19 519.19 0.02 2,874.82 0.27 0.01 0.01 0.01 0.01 0.02 140.79 0.65
Grand Total
Current Year Previous Year Current Year Previous Year Current Year Previous Year 0.02 0.02 495.45 495.45 4,985.26 4,985.26 4,645.25 233.97 596.36 1,113.33 4,645.25 233.97 517.94 30.71 22.91 1.67 20.54 2.59 11.27 645.15 0.58 441.61 1.67 13.05 519.19 519.19 0.02 4,341.07 2,875.09 0.02 0.01 0.04 0.05 184.16 0.02 4,340.78 0.27 0.01 0.01 2,874.82 0.27 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.02 184.03 0.13 140.79 0.65
Its grt 2b 25
Fee Income
Kotak Mahindra Bank Limited Kotak Mahindra Capital Company Limited Kotak Mahindra Investments Limited Kotak Mahindra Prime Limited Kotak Mahindrra Trustee Company Limited D Kannan Narayan S A D G Subramanian Hemant Mehta Rekha Narayan Sanjay Nayar Suresh Kotak Kotak Commodity Services Limited Infina Finance Private Limited
Fee Income Total
Personnel Expense
Personnel Expense Total
Expense Reimbursement To Other Companies
Schedules
Kotak Mahindra Bank Limited Kotak Mahindra Financial Services Limited Kotak Mahindra Asset Management Company Limited Kotak Mahindra Capital Company Limited Kotak Mahindra Inc Kotak Mahindra International Limited Kotak Mahindra Investments Limited Kotak Mahindra Old Mutual Life Insurance Limited Kotak Mahindra Prime Limited Kotak Commodity Services Limited Ahmedabad Commodity Exchange Limited
4,645.25 11.27 645.15 0.58 441.61 1.67 13.05 6.24 16.54 1.02 22.78 5,816.61 5,781.36
Expense Reimbursement To Other Companies Total
Expense Reimbursement By Other Companies
Reports
Kotak Mahindra Bank Limited Kotak Mahindra Financial Services Limited Kotak Forex Brokerage Limited Kotak Investment Advisors Limited Kotak Mahindra Asset Management Company Limited Kotak Mahindra Capital Company Limited Kotak Mahindra Investments Limited Kotak Mahindra Old Mutual Life Insurance Limited Kotak Mahindra Prime Limited Kotak Commodity Services Limited Ahmedabad Commodity Exchange Limited 122.39 240.78 8.24 249.02 104.92 96.68 8.24 83.36 18.16 345.27 60.00 107.04 167.04 6.00 145.54
122.39
83.36
18.16
1.80 17.97 309.61 6.98 8.89 0.02
0.03 13.27 342.86 2.94 104.90 464.00 125.00 112.40 237.40 6.00 300.20
151.34 87.36 238.70 27.82 27.82
133.02 76.26 209.28 35.63 35.63
122.39 1.80 17.97 309.61 6.98 8.89 0.02 151.34 87.36 706.36 240.78 8.24 60.00 107.04 27.82 443.88 6.00 145.54
83.36 18.16 0.03 13.27 342.86 2.94 104.90 133.02 76.26 774.80 96.68 8.24 125.00 112.40 35.63 377.95 6.00 300.20
Expense Reimbursement By Other Companies Total
Other Expenses
Kotak Mahindra Bank Limited Uday S Kotak Kotak Mahindra Asset Management Company Limited Kotak Mahindra Capital Company Limited Aero Agencies Private Limited
Its grt 2b 25
Other Expenses Total
Other Income
39
Kotak Mahindra Old Mutual Life Insurance Limited
40
Holding Company/ Controlling Entity Subsidiary Fellow Subsidiary Companies Key Management Personnel Relatives of Key Management Personnel Enterprises over which Key Management Personnel/Relatives thereof are having Significant Influence Current Year Previous Year 151.54 3.29 1.86 5.15 30.13 3.02 2.57 35.72 229.55 75.00 70.40 18.92 2.96 10.00 66.60 163.70 10.00 21.88 3.70 4.83 15.58 24.11 9.62 0.03 88.53 98.18 2.10 6.09 16.54 24.73 374.95 0.57 18.16 36.46 0.89 10.64 18.92 2.96 88.60 262.74 0.69 11.83 0.14 58.58 3.02 2.27 2.59 3.70 4.83 15.58 365.97 4.68 1.01 1.19 239.31 18.10 264.29 178.75 10.00 238.29 427.04 2.58 18.16 360.82 19.06 9.62 0.03 88.53 498.80 213.72 0.69 0.95 52.19 110.56 10.00 2.10 6.09 16.54 412.84 11.52 10.57 0.95 306.20 2.57 18.10 2.57 18.10 1.86 1.86 Grand Total Current Year Previous Year Current Year Previous Year Current Year Previous Year 3.29 3.29 30.13 30.13 0.57 0.57 262.74 0.69 263.43 214.41 11.83 213.72 0.69 11.83 0.14 58.58 3.02 2.27 2.59 0.95 52.19 110.56 2.58 18.16 18.16 47.99 379.88 2.58 18.16 18.16 36.46 0.89 10.64 360.82 19.06 374.95 427.04 4.68 3.02 241.51 229.55 75.00 70.40 178.75 10.00 238.29 4.68 3.02 1.01 1.19 239.31 10.57 0.95 10.57 0.95 151.54 306.20 Current Year Previous Year Current Year Previous Year Current Year Previous Year
Other Income Total
Purchase Of Fixed Asset
Kotak Mahindra Bank Limited Kotak Mahindra Asset Management Company Limited Kotak Commodity Services Limited
Purchase Of Fixed Asset Total
Sale Of Fixed Asset
Kotak Mahindra Bank Limited Kotak Mahindra Asset Management Company Limited Kotak Mahindra Capital Company Limited Kotak Mahindra Old Mutual Life Insurance Limited Kotak Mahindra Investments Limited Ahmedabad Commodity Exchange Limited
Sale Of Fixed Asset Total Remuneration To Key Management Personnel
D Kannan Falguni Nayar Narayan S A
Remuneration To Key Management Personnel Total
Other Outstanding Receivable
Kotak Mahindra Bank Limited Kotak Mahindra Financial Services Limited Kotak Mahindra Capital Company Limited Kotak Mahindra International Limited Kotak Mahindra Old Mutual Life Insurance Limited Kotak Commodity Services Limited Infina Finance Private Limited Ahmedabad Commodity Exchange Limited
Receivable Total
Payable
Kotak Mahindra Bank Limited Uday S Kotak Kotak Mahindra Financial Services Limited Kotak Mahindra Asset Management Company Limited Kotak Mahindra Capital Company Limited Kotak Mahindra International Limited Kotak Mahindra Investments Limited Kotak Mahindra Old Mutual Life Insurance Limited Kotak Mahindra Prime Limited Falguni Nayar Aero Agencies Private Limited Kotak Commodity Services Limited Ahmedabad Commodity Exchange Limited
Payable Total
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Reports
Statement Pursuant to Section 212 of the Companies Act, 1956, relating to Subsidiary Companies
1. 2. 3. Name of the Subsidiary Financial year of the subsidiary ended on Shares of the subsidiary held by the Company on the above date: a) Number and Face Value b) Extent of holding 4. Net aggregate amount of profits/(losses) of the subsidiary for the above financial year of the subsidiary, so far as they concern members of the Company : a) dealt with in the accounts of the Company for the year ended 31st March 2011 b) not dealt with in the accounts of the Company for the year ended 31st March 2011 5. Net aggregate amount of profits/(losses) for previous financial years of the subsidiary, since it became a subsidiary so far as they concern members of the Company : a) dealt with in the accounts of the Company for the year ended 31st March 2011 b) not dealt with in the accounts of the Company for the year ended 31st March 2011 ` Nil ` Nil ` Nil (` 17,272,472.00) 9, 50,000 Equity Shares of USD 1/- each fully paid 100% Kotak Mahindra Financial Services Limited 31st March 2011
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41
L. (a)
Balance sheet abstract and companys General Business Profile Registration Details Registration No. U 9 9 9 9 9 M H 3 1 1 9 3 9 4 P L C 1 3 4 0 5 1 State Code 1 1
Balance Sheet Date (b)
2 0 1 1
Capital raised during the period (Amount in ` Thousand) Public Issue N Bonus Issue N I L I L
Rights Issue N Private Placement N I L I L
(c)
Position of Mobilization and Deployment of Funds (Amount in ` Thousand) Total Liabilities 1 8 9 7 6 6 7 6 Source of Funds Paid-up Capital 1 6 0 0 0 Secured Loans 1 6 6 8 7 4 Application of Funds Net Fixed Assets 7 3 2 3 9 5 Deferred Tax Asset 3 2 6 5 5 9 Miscellaneous Expenditure N I L Investments 7 7 2 2 7 7 5 Net Current Assets 1 0 1 9 4 9 4 7 Accumulated Losses N I L Reserves and Surplus 1 6 9 2 3 4 9 1 Unsecured Loans 1 8 7 0 3 1 1 Total Assets 1 8 9 7 6 6 7 6
(d)
Performance of Company: (Amount in ` Thousand) Turnover / Other Income 7 3 7 5 5 3 5 Profit before Tax 2 7 1 5 7 2 6 Earnings per Share (in `) 1 1 3 7 . 1 1 Total Expenditure 4 6 5 9 8 0 9
Profit after Tax 1 8 1 9 3 7 9 Dividend Rate (%) 0 %
(e)
Generic names of three Principal Products / Services of the Company Item Code No. Product Description N A Broking, Depository Services, Proprietary Trading, Portfolio Management Services, Investments, Mobilisation of Deposits and Marketing of Public Issues.
42
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KOTAK MAHINDRA CAPITAL COMPANY LIMITED
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BOARD OF DIRECTORS : MR. UDAY KOTAK (C), MS. FALGUNI NAYAR (MD) , MR. JAIMIN BHATT, MR. DIPAK GUPTA MS. SHANTI EKAMBARAM, MR. RAMESH SRINIVASAN
Directors Report
To the Members of Kotak Mahindra Capital Company Limited The Directors present their Sixteenth Annual Report together with the audited accounts of your Company for the year ended 31st March 2011. FINANCIAL RESULTS Particulars Year Ended 31st March 2011 ` in Lakhs 15,530 7,022 1,833 5,188 37,156 42,345 Year Ended 31st March 2010 ` in Lakhs 10,140 3,461 1,075 2,386 34,770 37,156
Gross Income Profit before Tax Provision for Tax Profit after Tax Balance of Profit from previous years Amount available for appropriation Appropriations: Surplus carried forward to the Balance Sheet 1. DIVIDEND The Directors do not recommend any dividend for the year. 2. BUSINESS OPERATIONS A. EQUITIES
42,345
37,156
The last financial year saw a continual of the revival of the capital markets in India. Total funds raised in public offerings, including follow on offering and debt offering during the year was 55,698 crores as against ` 49,442 crores raised in the previous year. There were 67 public offerings against 15 public in the previous year. Your Company completed 16 public offerings in FY 2011 of which 12 were equity offerings and four debt offerings. Offerings managed were across sectors: steel, coal, NBFC, infrastructure and media Your Company once again won prestigious awards such as Finance Asia, Best Investment Bank 2010, Asia Money Best Domestic House 2010 Euro money Best house for equity finance in India in the real estate poll 2010, Global Finance Best investment Bank in India 2010, Asset Asian Award, Best Investment Bank 2010 B. M&A, FINANCIAL SPONSORS, INFRASTRUCTURE AND RESTRUCTURING ADVISORY Your company acted as financial advisor in many significant transaction such as Ispat Industries preferential issue of equity shares to JSW Steel for ` 2,178 crores creating first of its kind partnership between two domestic steel majors. Other transactions in which your company was involved were: i) Sale of three Business Divisions (Traction Electronics, SCADA and Industrial Drives) of Nelco Limited to Crompton Greaves Limited for ` 92 crores; ii) Advisor to BSE for acquisition of majority control in CDSL; iii) Advisor to Kotak Mahindra Bank Limited for preferential allotment of 4.5% stake to SMBC, a unit of Sumitomo Mitsui Financial Group, for ` 1,366 crores iv) Advisor for private placement by Monnet Power Company Limited to Blackstone for ` 275 crores; v) Manager to the open offer for consolidation of shareholding by promoters of Religare Enterprises Limited for ` 1,279 crores; vi) Advisor to M&M Limited for acquisition of ~5.5% stake in Tech Mahindra Limited from BT Telecommunication for ` 451 crores; vii) Manager to the buyback of shares of Piramal Healthcare Limited for ` 2,508 crore; and
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viii) Manager to the open offer on behalf of iGATE Corporation and its subsidiaries for acquisition of shares of Patni Computers Systems Limited for ` 1,364 crores. Your Company has a good pipeline of advisory transactions of which some may see successful closure during the current year. 3. HUMAN RESOURCES Your Company recognizes that human capital is the key to success and growth in the financial sector. Towards this goal, retaining good talent and providing career growth is the focus of Company. 4. DIRECTORS Mr. Jaimin Bhatt and Ms. Shanti Ekambaram retire at the ensuing Fourteenth Annual General Meeting and are eligible for reappointment. 5. AUDIT COMMITTEE The constitution of the Audit Committee of the Company is as set out below: 6. Mr. Uday Kotak Mr. Dipak Gupta Mr. Jaimin Bhatt
AUDITORS The statutory auditors Messrs. Deloitte Haskins & Sells, Chartered Accountants retire at the ensuing Annual General Meeting and are eligible for reappointment.
7.
STATUTORY INFORMATION A statement giving the particulars of employees as required under Section 217 (2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975, is annexed. During the year under review, your Company did not accept any deposits from the public. There are no deposits due and outstanding as on 31st March 2011. Your Companys foreign exchange income was ` 1596 Lakhs the outgo was ` 59 Lakhs other particulars under the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, are not applicable since your Company is not a manufacturing company.
8.
DIRECTORS RESPONSIBILITY STATEMENT Based on representations from the Management, the Directors state, in pursuance of Section 217 (2AA) of the Companies Act, 1956, that: Your Company has, in the preparation of the annual accounts for the year ended 31st March 2011, followed the applicable accounting standards along with proper explanations relating to material departures, if any; 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 as at 31st March 2011 and of profit/ loss of the Company for the financial year ended 31st March 2011; The Directors have taken proper and sufficient care to the best of their knowledge and ability, for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and The Directors have prepared the annual accounts on a going concern basis.
9.
ACKNOWLEDGEMENTS Your Directors would like to place on record their gratitude for the valuable support received from the Reserve Bank of India, Securities and Exchange Board of India and other Government and Regulatory agencies. Your Directors acknowledge and wish to place their appreciation of employees for their commendable efforts, teamwork and professionalism.
For and on behalf of the Board of Directors SD/Uday S. Kotak Chairman Mumbai 26th April 2011
Kotak Mahindra Capital Company Limited Annual Report 2010-11
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Reports
Auditors Report
To The Members of Kotak Mahindra Capital Company Limited 1. We have audited the attached Balance Sheet of Kotak Mahindra Capital Company Limited (the Company) as at 31st March 2011, the Profit and Loss Account and the Cash Flow Statement of the Company for the year ended on that date, both annexed thereto. These financial statements are the responsibility of the Companys Management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and the disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As required by the Companies (Auditors Report) Order, 2003 (CARO) issued by the Central Government in terms of Section 227(4A) of the Companies Act, 1956, we give in the annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. Further to our comments in the Annexure referred to in paragraph 3 above, we report as follows: (a) (b) (c) (d) (e) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit; in our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books; the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt with by this report are in agreement with the books of account; in our opinion, the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt with by this report are in compliance with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956; in our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: i) ii) iii) 5. in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2011; in the case of the Profit and Loss Account, of the profit of the Company for the year ended on that date; and in the case of the Cash Flow Statement, of the cash flows of the Company for the year ended on that date.
2.
3. 4.
On the basis of the written representations received from the Directors as on 31st March 2011 and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March 2011 from being appointed as a director in terms of Section 274(1)(g) of the Companies Act, 1956.
For DELOITTE HASKINS & SELLS Chartered Accountants (Registration No. 117366W) R. Laxminarayan Partner Membership Number: 33023 Mumbai, 26th April 2011
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ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph 3 of our report of even date) i) Having regard to the nature of the Companys activities, clauses (ii), (viii), and (xiii) of CARO are not applicable. ii) In respect of its fixed assets: (a) (b) The Company has maintained proper records showing full particulars, including quantitative details and situation of the fixed assets. The fixed assets were physically verified during the year by the Management in accordance with a regular programme of verification which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification. The fixed assets disposed off during the year, in our opinion, do not constitute a substantial part of the fixed assets of the Company and such disposal has, in our opinion, not affected the going concern status of the Company.
(c)
iii) The Company has neither granted nor taken any loans, secured or unsecured, to / from companies, firms or other parties listed in the Register maintained under Section 301 of the Companies Act, 1956. iv) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of fixed assets and for the sale of goods and services. During the course of our audit, we have not observed any major weakness in such internal control system. v) In respect of the contracts or arrangements entered in the Register maintained in pursuance of section 301 of the Companies Act, 1956, to the best of our knowledge and belief and according to the information and explanations given to us: (a) The Company has not entered into any contracts or arrangements that need to be entered in the Register maintained in pursuance of section 301 of the Companies Act, 1956. Hence, clause (v) of Para 4 of the Order is not applicable to the Company for the year.
vi) According to the information and explanations given to us, the Company has not accepted any deposit from the public during the year. vii) In our opinion, the internal audit functions carried out during the year by a firm of Chartered Accountants appointed by the Management have been commensurate with the size of the Company and the nature of its business. viii) According to the information and explanations given to us in respect of statutory dues: (a) The Company has generally been regular in depositing undisputed dues, including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it with the appropriate authorities. There were no undisputed amounts payable in respect of Income-tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other material statutory dues in arrears as at 31st March 2011 for a period of more than six months from the date they became payable. Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty and Cess which have not been deposited as on 31st March 2011 on account of any dispute are given below: Nature of Dues Forum where Dispute is Pending Commissioner of Central Excise Commissioner of Central Excise Commissioner of Central Excise Period to which the Amount Relates 200001 to 200203 200405 to 200809 200809 to 200910 Amount Involved (` in Lakhs) ` 122.74
(b)
(c)
Statute
Service Tax
Tax, Interest and Penalty
Service Tax
Tax, Interest and Penalty
37.23
Service Tax
Penalty
7.42
ix) The company has no accumulated losses as at 31st March 2011 and has not incurred any cash loss during the financial year ended on that date and in the immediately preceding financial year.
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Reports
x) According to the information and explanations given to us, there were no dues payable by the Company to financial institutions, banks and debenture holders during the year. Therefore, the provisions of paragraph 4 (xi) of the Order are not applicable to the Company. xi) According to the information and explanations given to us, the company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities. xii) Based on our examination of the records and evaluation of the related internal controls, the company has maintained proper records of the transactions and contracts in respect of its dealing in shares, securities, debentures and other investments and timely entries have been made therein. The aforesaid securities have been held by the Company in its own name. xiii) In our opinion and according to the information and explanations given to us, the terms and conditions of the guarantees given by the Company for loans taken by others from banks and financial institutions are not prima facie prejudicial to the interest of the Company. xiv) To the best of our knowledge and belief and according to the information and explanations given to us, there have been no term loans availed during the year. Hence clause (xvi) of paragraph 4 of the said Order is not applicable to the Company. xv) In our opinion and according to the information and explanations given to us and on an overall examination of the Balance Sheet, we report that funds raised on short-term basis have not been used during the year for long-term investment. xvi) The company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956 during the year. Hence clause (xviii) of paragraph 4 of the said Order is not applicable to the Company. xvii) To the best of our knowledge and belief and according to the information and explanations given to us, the Company has not issued debentures during the year. Hence clause (xix) of paragraph 4 of the said Order is not applicable to the Company. xviii) According to the information and explanations given to us, the Company has not raised any money by public issue during the year. Hence, clause (xx) of paragraph 4 of the Order is not applicable to the Company for the year. xix) To the best of our knowledge and belief and according to the information and explanations given to us, no fraud by the Company and no fraud on the Company was noticed or reported during the year.
For DELOITTE HASKINS & SELLS Chartered Accountants (Registration No. 117366W) R. Laxminarayan Partner Membership Number: 33023 Mumbai, 26th April 2011
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Schedule (` in Lakhs) ` SOURCES OF FUNDS Shareholders Funds: Capital Reserves and Surplus Total Application of funds Fixed Assets: Gross Block Less: Depreciation and Amortisation Net Block Investments Deferred Tax Asset (Net) Current assets, loans and advances: Sundry debtors Cash and bank balances Other current assets Loans and advances Less: Current liabilities and provisions: Liabilities Provisions Net current assets Total Significant Accounting policies and notes to Accounts 17 9 10 1,645.62 972.26 2,617.88 16,956.75 48,934.65 1,693.68 580.43 2,274.11 10,669.23 43,745.79 5 6 7 8 3,183.40 15,035.11 116.35 1,239.77 19,574.63 1,573.27 9,219.36 16.79 2,133.92 12,943.34 4 3 2,804.64 799.41 2,005.23 29,885.08 87.59 2,759.16 729.01 2,030.15 30,971.90 74.51 1 2 411.61 48,523.04 48,934.65 411.61 43,334.18 43,745.79 As at 31st March 2011 (` in Lakhs) ` As at 31st March 2010 (` in Lakhs)
In terms of our report attached For Deloitte Haskins and Sells Chartered Accountants R. Laxminarayan Partner Uday Kotak Chairman Ajay Vaidya Company Secretary Place: Mumbai Date: 26th April 2011 For and on behalf of the Board of Directors Falguni Nayar Managing Director Rajeev Saptarshi Chief Financial Officer Shanti Ekambaram Director
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Reports
Profit and Loss Account for the Year Ended 31st March 2011
Schedule (` in Lakhs) ` INCOME Financial advisory and transactional services Interest income Other income Total income Expenditure Personnel expenses Interest and other financial charges Other expenses Depreciation and amortisation Total expenditure Profit before taxation Provision for taxation Current tax Excess Provision in respect of earlier years Deferred Tax Wealth Tax 1,914.10 (69.71) (13.08) 2.60 1,833.91 Profit After Taxation BALANCE BROUGHT FORWARD FROM PREVIOUS YEAR BALANCE CARRIED TO BALANCE SHEET Earnings per share: Face value of ` 10/Basic and Diluted Earnings per Share (in `) (Refer Note 15 of Schedule 17) Significant Accounting policies and notes to Accounts 17 126.06 57.97 5,188.86 37,156.29 42,345.15 926.00 (22.47) 169.48 2.38 1,075.39 2,386.18 34,770.11 37,156.29 14 15 16 5,918.32 2,367.83 221.84 8,507.99 7,022.77 4,221.94 28.36 2,233.73 194.57 6,678.60 3,461.57 11 12 13 12,235.57 1,007.16 2,288.03 15,530.76 8,359.74 302.90 1,477.53 10,140.17 Year Ended 31st March 2011 (` in Lakhs) ` Year Ended 31st March 2010 (` in Lakhs)
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Cash Flow Statement for the Year Ended 31st March 2011
For the Year Ended 31st March 2011 ` in Lakhs CASH FLOW FROM OPERATING ACTIVITIES Net Profit before taxation Adjustments for: Depreciation Diminution in value of long term Investments (Profit)/Loss on sale of current investments (Profit)/Loss on sale of long term investments Interest/dividend received on Investments Reversal of Diminution in value of Long term investments Interest paid on debentures Income distribution from Venture Funds (Profit)/Loss on sale of fixed assets OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES Adjustments for: (Increase)/Decrease in loans and advances (Increase)/Decrease in sundry debtors (Increase)/Decrease in other current assets Increase/(Decrease) in current liabilities Increase/(Decrease) in provision for gratuity and leave encashment CASH GENERATED FROM OPERATIONS Direct taxes paid (net of refunds and Interest thereon) NET CASH FLOW FROM/(USED IN) OPERATING ACTIVITIES (A) CASH FLOW FROM INVESTING ACTIVITIES Purchase of fixed assets Sale of fixed assets Purchase of investments Sale of investments Interest/dividend received on Investments Income distribution from Venture Funds NET CASH FLOW (USED IN) / FROM INVESTING ACTIVITIES (B) CASH FLOW FROM FINANCING ACTIVITIES Issue of optionally convertible debentures Repayment of optionally convertible debentures Interest paid on borrowings NET CASH FLOW (USED IN)/FROM FINANCING ACTIVITIES (C) NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (A + B + C) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 5,815.75 9,219.36 15,035.11 5,815.75 7,500.00 (7,500.00) (28.36) (28.36) (5,153.59) 14,372.95 9,219.36 (5,153.59) (284.10) 105.40 (27,815.90) 29,861.33 1,123.98 789.84 3,780.55 (227.52) 23.94 (58,975.62) 52,586.70 42.96 38.34 (6,511.20) 881.32 (1,610.13) (99.56) (48.06) 314.08 3,791.60 (1,756.40) 2,035.20 (120.35) (1,161.01) 20.91 907.30 86.67 2,484.89 (1,098.92) 1,385.97 221.84 (362.86) (470.04) (1,123.98) (125.72) (789.84) (18.22) 4,353.95 194.57 (531.44) (259.75) (42.96) (52.68) 28.36 (38.34) (7.96) 2,751.37 7,022.77 3,461.57 For the Year Ended 31st March 2010 ` in Lakhs
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Reports
Notes: 1. Components of Cash and Cash Equivalents comprises of 31st March 2011 ` in lakhs Cash on hand Balances with: Scheduled banks in current account Scheduled bank in Deposit account 465.81 14,569.30 6,925.86 2,293.50 31st March 2010 ` in lakhs
2. Cash and Cash Equivalents include fixed deposits of ` 50.00 lakhs [Previous Year: ` 50.00 lakhs) under lien of National Securities Clearing Corporation Limited, ` 14,519.30 lakhs [Previous Year: ` 2,243.50 lakhs), held by bank as margin money against intraday overdraft facilities. 3. The above Cash Flow Statement has been prepared under the Indirect Method as set out in Accounting Standard-3 on Cash Flow Statements issued by the under the Companies (Accounting Standards) Rules, 2006. 4. Net profit before tax and (Increase)/Decrease in debtors includes unrealised foreign exchange loss amounting to ` 8.89 lakhs [Previous Year: ` 6.03 lakhs). 5. Figures of the previous year are recast wherever necessary to conform to figures of the current year.
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Schedules forming part of the Balance Sheet

As at 31st March 2011 (` in Lakhs) ` Schedule 1 Capital Authorised 10,000,000 equity shares of ` 10 each Total Issued and Subscribed 4,116,149 equity shares of ` 10 each fully paid up (Of the above: 3,126,134 shares are held by Kotak Mahindra Bank Limited, the holding company and its nominees and 990,015 shares are held by Kotak Securities Limited, a subsidiary of the holding company; and 156,129 equity shares of Rs 10 each are allotted as fully paid up for consideration other than cash, pursuant to the Scheme of Arrangement as approved by the Bombay High Court.) Total Schedule 2 Reserves and Surplus Share Premium Account As per last Balance Sheet Balance in Profit and Loss Account Total 6,177.89 42,345.15 48,523.04 6,177.89 37,156.29 43,334.18 411.61 411.61 411.61 411.61 1,000.00 1,000.00 1,000.00 1,000.00 As at 31st March 2010 (` in Lakhs)
10

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(` in Lakhs) DEPRECIATION As at 31st March 2011 As at 1st For the year April, 2010 Deductions As at 31st March 2011 As at 31st March 2011 As at 31st March 2010 NET BLOCK
Schedule 3 Fixed Assets
GROSS BLOCK (At Cost) Deductions
Description
As at 1st April, 2010
Additions
INTANGIBLE ASSETS 8.73 75.05 63.32 11.73 54.66 8.66 11.66
Software Acquired
66.32
TANGIBLE ASSETS 1,772.87 93.09 278.53 9.30 82.99 492.81 2,804.64 2,759.16 732.27 194.57 729.01 221.84 210.35 113.12 138.45 151.44 197.83 63.26 7.01 1.51 9.12 0.14 240.84 23.14 11.48 252.50 9.26 68.76 185.02 799.41 729.01 52.94 92.22 39.28 128.33 27.24 3.71 244.42 284.10 227.52 213.94 238.62 224.47 2.67 11.48 97.84 30.49 1,644.54 0.87 26.03 0.04 14.23 307.79 2,005.23 2,030.15 1,675.03 40.15 21.93 0.18 18.69 262.51 2,030.15
Premises*
1,772.87
93.09
Computers
262.77
Furniture
9.30
Schedules
Office Equipment#
81.95
Vehicles
472.86
Total
2,759.16
Previous Year
2,745.58
*represents premises given on operating lease
# Office equipment include assets aggregating to ` 6.22 lakhs [Previous Year: ` 6.22 lakhs) (50% of the original cost) jointly owned with other enterprises.
The depreciation for the year is ` Nil (Previous Year ` Nil) and the written down value of the asset as on March 31, 2011 is ` Nil (Previous Year: ` Nil).
Reports
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Schedule 4 Investments (Non-Trade) Quantity Face Value Long Term Investments (at cost, fully paid) In Equity Shares of Companies (Unquoted) Kotak Mahindra (International) Limited@ Kotak Mahindra Inc@ Kotak Investment Advisors Limited@ Kotak Securities Limited@ Infina Finance Private Limited@ Kotak Mahindra Old Mutual Life Insurance Limited@ 9X Media Private Limited National Stock Exchange of India Limited In Preference Shares of Companies (Unquoted) Kotak Mahindra Prime Limited@ @ Companies under the same management In Equity Shares of Companies (Quoted) KPR Mills Limited Zee Entertainment Enterprises Ltd. (received consequent to demerger of 9X Channel business of 9X Media Private Limited) In Units of Venture Capital Fund (Unquoted) Kotak India Growth Fund Kotak India Real Estate Fund Kotak Alternate Opportunities (India) Fund* Less: Provision for Diminution in value of units of Venture Capital Funds (A) Current Investments (Fully paid) (at cost or fair value, whichever is lower) In Units of Mutual Fund (Unquoted) Kotak Floater Long Term Growth 10.00 (B) (A) + (B) Aggregate Value of Quoted Investments Market Value of Quoted Investments Aggregate Value of Unquoted Investments At Book Value Market Value At Book Value 42,800,111 29,885.08 408.79 1,348.08 29,476.29 6,196.27 6,196.27 30,971.90 591.27 1,223.43 30,380.63 1,000 100,000 45,698 580 50,000 880 444.01 580.28 1,895.45 29,885.08 478.02 880.06 1,395.45 (125.72) 24,775.63 10 1 755,896 3,616 1,093,322 408.79 591.27 10 500,000 5,000.00 US $ 1 US $ 0.01 10 10 10 10 10 10 2,000,000 750,000 2,250,070 400,010 1,100,240 63,366,753 128,400 51,334 2,000,000 750,000 2,250,070 400,010 1,100,240 63,366,753 128,400 51,334 718.00 343.78 226.01 12,300.00 110.02 6,336.68 12.84 1,509.22 718.00 343.78 226.01 12,300.00 110.02 6,336.68 12.84 1,509.22 (`) As at 31st March 2011 As at 31st March 2010 Amount 31st March 2011 (` in Lakhs) ` 31st March 2010 (` in Lakhs)
* represents Companys share of beneficial interest in a trust.
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Schedule 4 Investments (Non-Trade) (contd.) Quantity Face Value (`) Investments purchased and sold during the year In units of mutual funds Kotak Liquid (Institutional Premium) Daily Dividend Kotak Floater Long Term Weekly Dividend DSP Blackrock Small & Midcapfund Growth Plan Principal Emerging Blue Chip Fund Growth Plan Sundaram BNP Paribas Select Midcap Growth Plan Sundaram BNP Paribas S.M.I.L.E. Growth Plan SBI Magnum Global Fund Growth ICICI PRU Emerging Star Fund Growth Kotak Liquid (Institutional Premium) Daily Dividend Kotak Floater Long Term Growth HDFC Midcap Opportunity Fund Growth In equity shares KPR Mills Limited Power Grid Corporation Limited 10.00 10.00 465,201 606,678 418.68 As at 31st March 2011 (` in Lakhs) ` 328.09 As at 31st March 2010 (` in Lakhs) 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 103,704,674 86,354,442 1,067,903 61,738 1,221,121 662,208 373,832 95,497 678,743 260,078 316,857 216,090,356 169,946,309 12,681.11 8,706.18 200.00 100.00 200.00 100.00 100.00 100.00 200.00 100.00 100.00 26,423.74 24,157.43 As at 31st March 2011 As at 31st March 2010 Amount 31st March 2011 (` in Lakhs) ` 31st March 2010 (` in Lakhs)
(` in Lakhs) ` Schedule 5 Sundry Debtors (Unsecured) Debts outstanding for a period exceeding six months considered good considered doubtful 32.43 32.43 Less: Provision for doubtful debts (32.43)
44.15 44.15 (44.15) 1,573.27 1,573.27
Other debts (considered good) Total Debtors Include Due from a company under the same management Kotak Mahindra (UK) Limited Maximum amount outstanding during the year
3,183.40 3,183.40
2.07
2.07 80.89
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As at 31st March 2011 (` in Lakhs) ` Schedule 6 Cash and Bank Balances Balances with scheduled banks in: current account deposit account [Including Rs 50.00 lakhs [Previous Year: ` 50.00 lakhs) under lien of National Securities Clearing Corporation Limited and ` 14,519.30 lakhs [Previous Year: ` 2,243.50 lakhs) under lien for Bank Overdraft facilities] Total Schedule 7 Other Current Assets Interest accrued on deposits Total Schedule 8 Loans And Advances (Unsecured, considered good unless otherwise stated) Advances recoverable in cash or in kind or for value to be received Deposits Advance tax [Net of Provision for tax ` 2,213.28 lakhs [Previous Year: ` 2,213.28 lakhs)] Total Advances include: Due from Holding Company Kotak Mahindra Bank Limited Due from a Company under the same management Kotak Securities Ltd. Maximum amount outstanding during the year Kotak Mahindra Bank Limited Phoenix ARC Pvt. Ltd. Kotak Securities Ltd. Due from the Managing Director* Maximum amount outstanding during the year * represents remuneration paid in excess of limits u/s/198 of the Companies Act, 1956 which has been recovered subsequently. Schedule 9 Liabilities Sundry creditors (Other than outstanding dues of Micro, Medium and Small enterprises) (Refer Note 14 of Schedule 17) Other liabilities Total 1,252.68 392.94 1,645.62 1,400.18 293.50 1,693.68 34.32 58.27 10,436.08 20.00 20.00 20.00 58.27 197.96 0.32 126.26 392.45 721.06 1,239.77 995.51 404.52 733.89 2,133.92 116.35 116.35 16.79 16.79 15,035.11 9,219.36 465.81 14,569.30 6,925.86 2,293.50 As at 31st March 2010 (` in Lakhs)
Schedule 10 Provisions Provision for Gratuity, Leave encashment and Employee benefits Provision for Income Tax [Net of Advance tax ` 2,390.62 lakhs [Previous Year: ` 6406.58 lakhs)] Total 972.26 580.43 707.05 265.21 392.97 187.46
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Schedules forming part of the Profit and Loss Account

Year Ended 31st March 2011 (` in Lakhs) ` Schedule 11 Financial Advisory and Transactional Services Issue management and placement fees and underwriting commission (Refer Note No. 4 in Schedule 17) Financial advisory fees Total 6,074.73 6,160.84 12,235.57 4,385.68 3,974.06 8,359.74 Year Ended 31st March 2010 (` in Lakhs)
Schedule 12 Interest Income Interest on: On debentures (Tax deducted at source ` Nil; Previous Year ` 2.80 lakhs) Fixed deposit with scheduled banks (Gross) (Tax deducted at source ` 57.11 lakhs; Previous Year ` 42.42 lakhs) Total 436.30 570.86 1,007.16 34.75 268.15 302.90
Schedule 13 Other Income Dividend Income on: Current investments Long term investments Profit on sale of fixed assets (net) Provision for doubtful debts no longer required written back Profit on sale of current investments Profit on sale of long term investments Profit on Trading in Debentures Reversal of diminution in value of long term investments Rent Income Service Income Income distribution on Venture Fund Investments Miscellaneous income Total 29.74 87.08 18.22 43.50 362.86 470.04 2.14 125.72 226.69 122.04 789.84 10.16 2,288.03 2.74 40.22 7.96 181.76 531.44 259.75 29.78 52.68 176.56 149.95 38.34 6.35 1,477.53
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Year Ended 31st March 2011 (` in Lakhs) ` Year Ended 31st March 2010 (` in Lakhs)
(` in Lakhs) ` Schedule 14 Personnel Expenses Salaries, allowances and bonus Contribution to employees provident and other funds Staff welfare Gratuity benefits Less: Recovery of expenses Total
5,804.87 204.76 19.32 132.97 (243.60) 5,918.32
4,214.65 179.67 13.91 22.89 (209.18) 4,221.94
Schedule 15 Interest and Other Financial Charges Interest on debentures Total 28.36 28.36
Schedule 16 Other Expenses Travelling, conveyance and vehicle expenses Auditors remuneration Audit fees (excluding Service Tax) In other capacity Out of pocket expenses 14.00 14.00 Legal and professional fees Office Expenses Advertisement Electricity Communication Rent Rates and taxes Insurance Repairs and maintenance - others Common establishment expenses -reimbursement Bad debts written off Provision for doubtful debts Foreign exchange loss (net) Other expenses Less: Recovery of expenses Total 175.89 356.90 78.54 52.43 68.62 434.20 4.09 16.66 46.86 541.18 66.93 31.77 20.72 237.80 (117.28) 2,367.83 13.00 0.06 13.06 65.96 230.00 19.06 67.26 57.40 636.01 4.20 15.86 47.40 556.84 134.73 97.51 13.89 133.35 (125.32) 2,233.73 338.52 266.52
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Schedules forming part of the Balance Sheet and the Profit and Loss Account
Schedule 17 - SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO THE FINANCIAL STATEMENTS 1. SIGNIFICANT ACCOUNTING POLICIES: A. BASIS OF ACCOUNTING: The Financial Statements have been prepared on historical cost basis of accounting. The Company adopts the accrual system of accounting and the financial statements conform to the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006, the generally accepted accounting principles prevailing in India and the relevant provisions of the Companies Act, 1956. The preparation of financial statements requires the Management to make estimates and assumption considered in the reported amounts of assets and liabilities (including contingent liabilities) as on the date of the financial statements and the reported income and expenses during the reported period. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Actual results could differ from these estimates. B. REVENUE RECOGNITION: Revenue is recognized when there is reasonable certainty of its ultimate realization/collection. i) ii) C. Issue management and placement fees, underwriting commission and financial advisory fees are accounted on completion of milestones specified in the contract. Brokerage and clearing fees are recognized on the date of transaction.
TANGIBLE AND INTANGIBLE ASSETS, DEPRECIATION AND AMORTISATION: Fixed assets are stated at cost inclusive of incidental expenses less accumulated depreciation/amortization. The Company adopts the Straight Line Method of depreciation so as to write off 100% of the cost of the assets at rates higher than those prescribed under Schedule XIV to the Companies Act, 1956, based on the Managements estimate of the useful lives of all the assets. Estimated useful lives over which assets are depreciated are as follows: Leasehold improvements: Computers Software Furniture Office Equipment Vehicles Premises i) Over the prima\ry period of lease Subject to a maximum of 6 years 3 years 3 years 6 years 5 years 4 years 58 years
Fixed assets costing less than ` 5,000 are fully depreciated in the year of purchase.
D.
IMPAIRMENT OF ASSETS: The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/ external factors An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired.
E.
INVESTMENTS: Investments are classified into long-term investments and current investments. Investments, which are intended to be held for more than one year, are classified as long-term investments and investments, which are intended to be held for less than one year, are classified as current investments. Long-term investments are accounted at cost and any decline in the value, other than temporary is provided for. Current investments are valued at cost (calculated by applying weighted-average cost method) or fair value whichever is lower. Brokerage, stamping and additional charges paid are included in the cost of investments. In case of investments in units of mutual funds, the net asset value of units is considered as the fair value. Investments include investments in shares of companies registered outside India. They are stated at cost by converting at the rate of exchange prevalent at the time of acquisition thereof.
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F. STOCK IN TRADE: Securities acquired with the intention to trade are classified as stock-in-trade. Stock-in-trade is valued at cost (inclusive of brokerage and stamp charges in case of equity shares), calculated by applying the weighted-average cost method or fair value whichever is lower. FOREIGN CURRENCY TRANSACTIONS: i) Transactions in foreign currencies are recorded at the rate of exchange prevailing on the date of the transactions. ii) Monetary assets and liabilities contracted in foreign currencies are restated at the rate of exchange prevailing at the Balance Sheet date. iii) Exchange differences arising on settlement of the transaction and on account of restatement of assets and liabilities are dealt with in the Profit and Loss Account. TAXES ON INCOME: Income Taxes are accounting for in accordance with Accounting Standard (AS-22) Accounting for Taxes on Income issued under the Companies (Accounting Standards) Rules, 2006. The Income Tax expense comprise Current tax and Deferred tax. Current tax is measured at the amount expected to be paid in respect of taxable income for the year in accordance with the Income tax Act, 1961. Deferred tax adjustments comprises of changes in the deferred tax assets and liabilities. Deferred tax assets and liabilities are recognised for the future tax consequences of timing differences being the difference between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets arising mainly on account of carry forward of losses and unabsorbed depreciation under tax laws are recognised only if there is virtual certainty supported by convincing evidence that there will be sufficient future taxable income against which such deferred tax assets can be realised. Deferred tax assets on account of other timing differences are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantially enacted before the balance sheet date. Changes in deferred tax assets/liabilities on account of changes in enacted tax rates are given effect to in the Profit and Loss Account in the period of the change. The carrying amount of deferred tax assets are reviewed at each balance sheet date. The Company writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. I. EMPLOYEE BENEFITS: (a)
G.
H.
Defined Contribution Plan: The Contribution as required by the statute made to Government Provident Fund is debited to Profit and Loss Account.
The Company contributes a sum equivalent to 15% subject to a maximum of ` 1 lakh per annum per employee, of eligible employees eligible salary to a Superannuation Fund administered by trustees and managed by a Life Insurance Company. The Company recognises such contribution as an expense in the year they are incurred.
(b)
Defined Benefit Plan: The Company accounts for the liability for future gratuity benefits based on an actuarial valuation conducted by an independent actuary. The gratuity obligation is wholly unfunded. The net present value of the Companys obligation is determined based on the projected unit credit method as at the Balance Sheet date.
Actuarial gains/losses are immediately recognised in the Profit and Loss Account.
(c)
Other Long-term Employee Benefits: The Company accrues the liability for compensated absences based on the actuarial valuation conducted by an independent actuary. The net present value of the Companys obligation is determined based on the projected unit credit method as at the Balance Sheet date. Other Employee Benefits: The undiscounted amount of employee benefits expected to be paid in exchange for the services rendered by employee is recognised during the period when the employee renders the service. These benefits include performance incentives. Employee Stock Option Scheme: The cost of cash-settled scheme (stock appreciation rights) is measured initially using intrinsic value method at the grant date taking into account the terms and conditions upon which the instruments were granted. This intrinsic value is amortised on a straight-line basis over the vesting period with a recognition of corresponding liability. This liability is re-measured at each balance sheet date up to and including the settlement date with changes in intrinsic value recognised in Profit and Loss Account in Payments to and provision for employees.
(d)
(e)
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J. BORROWING COSTS:
(Continued)
Borrowing costs other than those directly attributable to qualifying fixed assets are recognized as an expense in the period in which they are incurred. K. PROVISIONS, CONTINGENT LIABILITIES AND CONTIGENT ASSETS: Provision is recognised when there is a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements. L. OPERATING LEASE: Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased asset, are classified as operating leases. Operating lease payments/receipts are recognised as an expense/income in the Profit and Loss Account on a straight-line basis over the lease term. M. SEGMENT ACCOUNTING POLICIES: (a)
Segment assets and Liabilities: All Segment assets and liabilities are directly attributable to the segment.
Segment assets include all operating assets used by the segment and consist principally of fixed assets, investments, stock in trade, sundry debtors, loans and advances and cash and bank balances. Segment assets and liabilities do not include share capital, reserves and surplus and income tax (both current and deferred).
(b)
Segment revenue and expenses: Segment revenue and expenses are directly attributable to segment. It does not include provision for income tax.
2.
CONTIGENT LIABILITIES: (a) (b) (c) Guarantee of ` 4,459.50 lakh (Rupee equivalent of US $ 10,000,000) [(Previous Year: ` 4,490.00 lakh (Rupee equivalent of US $ 10,000,000)] given to Standard Chartered Bank (Mauritius) Limited on behalf of an associate. Guarantee of ` 445.95 lakh (Rupee equivalent of US $ 1,000,000) [Previous Year: ` 449.00 lakh] (Rupee equivalent of US $ 1,000,000) given to Bank of Indian (London) on behalf of an associate. Guarantee of ` Nil (Rupee equivalent of US $ Nil) [Previous Year: ` 11,225.00 (Rupee equivalent of US $ 25,000,000)] given to Hongkong and Shanghai Banking Corporation Limited (Mauritius) for an overdraft facility. The amount of overdraft facility availed ` Nil (Rupee equivalent of US $ Nil) [Previous Year: ` 5,206.16 lakh (Rupee equivalent of US $ 11,595,009)] by an associate. Guarantee of ` 707.70 lakh (Rupee equivalent of Sing $ 2,000,000) [previous year ` 641.55 lakh (Rupee equivalent of Sing $ 2,000,000)] given to Hongkong and Shanghai Banking Corporation Limited (Singapore) on behalf of an associate. Commitment towards investment in venture capital funds Kotak India Growth fund ` 17.50 lakh (Previous Year: ` 25.00 lakh), Kotak Alternate Opportunities India Fund ` Nil (Previous Year: ` 500.00 lakh). Show cause-cum-demand in respect of service tax ` 167.39 lakh (Previous Year: ` 190.95 lakh).
(d) (e) (f) 3.
COMPONENTS OF DEFERRED TAX BALANCES: (` in Lakhs) Deferred Tax Liability Depreciation Deferred Tax Asset Provision for Doubtful Debts Provision for Gratuity and Compensated Absences Others Deferred Tax Asset (Net) 10.52 164.13 3.81 87.59 14.66 129.15 7.20 74.51 31st March 2011 90.87 31st March 2010 76.50
4.
Issue management and placement fees and underwriting commission is net of incentives/brokerages paid to brokers and fees/commission shared aggregating to ` 4,243.27 lakh (Previous Year: ` 2,980.73 lakh). Its grt 2b 25
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5. A. EQUITY SETTLED OPTIONS:
(Continued)
At the General Meetings of the holding company, Kotak Mahindra Bank Limited, the shareholders of the Bank had unanimously passed Special Resolutions on 28th July, 2000, 26th July, 2004, 26th July, 2005, 5th July, 2007, and 21st August, 2007, to grant options to the Eligible Employees of the Bank and its subsidiary companies. Pursuant to these resolutions, the following four Employees Stock Option Schemes had been formulated and adopted. (a) (b) (c) (d) Kotak Mahindra Equity Option Scheme 2001-02 Kotak Mahindra Equity Option Scheme 2002-03 Kotak Mahindra Equity Option Scheme 2005 Kotak Mahindra Equity Option Scheme 2007
In accordance with the SEBI Guidelines and the guidance note on Accounting for Employee Share based payments issued by The Institute of Chartered Accountants of India, the excess, if any, of the market price of the share preceding the date of grant of the option under ESOPs over the exercise price of the option is amortised on a straight-line basis over the vesting period. During the year the Company has reimbursed the Bank ` 109.03 lakh (Previous Year: ` 250.06 lakh) on account of such costs and the same is forming part of Employee costs under Schedule 14 Personnel Expenses. The above reimbursement excludes an amount of ` 45.45 lakh (Previous Year: ` 102.26 lakh) towards Employee Stock Option Plan for the managing director incurred by the Bank on behalf of the Company, but not passed on to the Company. B. STOCK APPRECIATION RIGHTS (SARs): In the previous year, the management had approved stock appreciation rights (SARs) to be granted to eligible employees as and when deemed fit. The SARs are to be settled in cash and will vest in the manner as provided in the scheme/grant letters to employees. The contractual life (which is equivalent to the vesting period) of the SARs ranges from 0.34 years to 3.34 years. Detail of activity is summarised below: No. of SARs Year Ended 31st March 2011* Outstanding at the beginning of the year Granted during the year Exercised during the year Fortified during the year Outstanding at the end of the year 5,000 196,680 89,620 36,650 75,410 Year Ended 31st March 2010* 5,000 5,000
* The number of SARs have been adjusted for split of the underlying equity shares from ` 10 paid up to ` 5 paid up per share. Effect of grant of SARs to employees on the Profit and Loss Account and on its financial position: (` in Lakhs) Year Ended 31st March Total Employee Compensation Cost Closing Balance of Liability C. IMPACT OF EQUITY SETTLED OPTIONS AND SARs: Had the Company recorded the compensation cost computed on the basis of Fair Valuation method instead of intrinsic value method, the employee compensation cost would have been higher by ` 139.59 lakh (Previous Year: ` 409.93 lakh) and the profit after tax would have been lower by ` 93.22 lakh (Previous Year: ` 270.59 lakh). Consequently, the basic and diluted EPS would have been ` 123.80 (Previous Year: ` 51.40). 2011 628.59 201.17 2010 4.18 4.18
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6.
(Continued)
Reconciliation of opening and closing balance of the present value of the defined benefit obligation for gratuity benefits is given below: (` in Lakhs) As on 31st March 2011 As of 31st March 2010 As of 31st March 2009 As of 31st March 2008
Change in Unfunded Benefit Obligations

Opening deferred benefit obligation Service cost Interest cost Actuarial (gain)/loss on obligations Past Service Cost Liability assumed on acquisition/(Settled on Divestiture) Benefits paid Present value of unfunded benefit obligations as at the end of the year 113.17 16.69 9.63 27.08 94.79 (43.69) 217.68 94.63 26.04 8.08 (4.26) (5.65) (5.67) 113.17 84.72 24.24 8.25 (8.84) 2.85 (16.59) 94.63 65.15 14.74 4.93 14.23 (14.33) 84.72 (` in Lakhs) As on 31st March 2011 Reconciliation of present value of the Obligation and the fair value of the plant assets Fair value of plan assets Present value of benefit obligations Net asset/liability as at 31st March 2011 Cost recognised for the year Current service cost Interest cost Expected return on plan assets Actuarial (gain)/loss Past Service Cost Net gratuity cost 16.69 9.63 27.08 94.79 148.19 26.04 8.08 (4.26) 29.86 24.24 8.25 (8.84) 23.65 14.74 4.97 14.23 33.94 (` in Lakhs) 217.68 (217.68) 113.17 (113.17) 94.63 (94.63) 84.72 (84.72) As of 31st March 2010 As of 31st March 2009 As of 31st March 2008
Experience Adjustments for the current annual period and previous four annual periods: Period Ended 31st March 2011 Defined Benefit Obligation Plan Assets Surplus/(Deficit) Experience Adjustment on Plan Liabilities Experience Adjustment on Plan Assets 217.68 (217.68) 24.82 31st March 2010 113.17 (113.17) (1.56) 31st March 2009 94.63 (94.63) (9.44) 31st March 2008 84.72 (84.72) 11.55
31st March 2007 65.15 (65.15) 17.34
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Actuarial Assumptions Used Discount Rate Salary Escalation Rate 8.26% p.a. 15% p.a. for first two years; 10% p.a. for next 2 years and 6% p.a. thereafter NA
(Continued)
8.01% p.a. 15% p.a. for first year; 10% p.a. for next 2 years and 6% p.a. thereafter NA
Expected Return on Plan Assets
The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market. The above information is certified by the actuary and relied upon by the auditors.
Gratuity:
In accordance with Payment of Gratuity Act, the Company provides for gratuity, a defined benefit retirement plan covering all employees. The plan provides a lump sum payment to vested employees at retirement or termination of employment based on the respective employees salary and the years of employment with the Company subject to maximum of ` 10.00 lakh. The gratuity benefit is provided through unfunded plan and annual contributions are charged to Profit and Loss Account. Under the scheme, the settlement obligation remains with the Company. 7. Quantitative information in respect of trading debentures: 2010-2011 Quantity Value (` in Lakhs) ` 15,000.00 15,000.00 2.14 2009-2010 Quantity Value (` in Lakhs) 2,088.03 2,117.81 29.78
Opening Purchase during the year Sold during the year Closing Stock Profit/(Loss) on Trading 8.
1,000,500 1,000,500
208,803 208,803
Managerial Remuneration under Section 198 of the Companies Act, 1956, to the Managing Director for the year and to a Whole-Time Director for the period from 22nd October, 2010 to 31st March 2011. (` in Lakhs) 2010-2011* Salaries and Allowance Contribution to Provident Fund Perquisites 370.83 10.26 10.53 391.62 2009-2010* 120.98 6.72 5.00 132.70
* Excludes provision for gratuity and leave encashment since these are based on actuarial valuation done on an overall Company basis. 9. Earnings in Foreign Exchange: (` in Lakhs) 2010-2011 Financial Advisory Fees 1,596.18 2009-2010 306.17
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10. Expenditure in Foreign Currency:
(Continued)
(` in Lakhs) Travelling Professional Fees Membership and Subscription Conference Expenses Other Expenses 11. 2010-2011 12.36 5.08 40.52 1.17 2009-2010 7.98 45.01 43.12 5.43
Segmental Information: The Companys business is organised into two segments, namely, Advisory and Transactional Services and Trading and Principal Investments. The Advisory and Transactional Services segment provides financial advisory services such as mergers and acquisition advice and equity-debt issue management services and Trading/Professional Clearing operations of National Securities Clearing Corporation Limited. The Trading and Principal Investments segment deals in equity and derivatives, loans/deposits and investments. Segments have been identified and reported taking into account the nature of products and services, the differing risks and returns and the internal financial reporting system. Segment Information: (` in Lakhs) 31st March 2011 Advisory and Transactional Services Segment Revenue Income from External Customers Income from Inter-segments Total Revenue Segment Result Results Add: Unallocated Income Less: Unallocated Expenses Less: Income tax (including deferred tax) Net Profit Other Information Carrying Amount of Segment Assets Unallocated Corporate Assets Total Assets Carrying Amount of Segment Liabilities Unallocated Corporate Liabilities Total Liabilities Capital Expenditure Tangible Intangible Depreciation/ Amortisation 275.37 8.73 213.18 8.66 275.37 8.73 213.18 8.66 222.22 5.30 184.32 10.25 222.22 5.30 184.32 10.25 2,252.67 4,047.28 45,049.05 49,096.33 2,456.20 51,552.53 2,252.67 365.21 2,617.88 1,986.65 2,475.67 41,061.81 43,537.48 2,482.42 46,019.90 1,986.65 287.46 2,274.11 3,956.53 2,873.85 6,830.38 226.69 34.30 1,833.91 5,188.86 2,085.99 1,229.51 3,315.50 176.56 30.49 1,075.39 2,386.18 12,429.48 12,429.48 2,874.59 2,874.59 15,304.07 15,304.07 8,705.75 8,705.75 1,257.86 1,257.86 9,963.61 9,963.61 Trading and Principal Investments Total 31st March 2010 Advisory and Transactional Services Trading and Principal Investments Total
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Segment Revenue comprises of:
(Continued) (` in Lakhs) 31st March 2010 8,509.69 302.90 29.78 259.75 531.44 38.34
31st March 2011 Income from services Interest and discounting income Profit on trading in debentures Profit on sale of long-term Investments Profit on sale of current Investments Income distribution on Venture Fund Investments Other Income: Dividend Income on: Current Investments Long-term Investments Provision for doubtful debts no longer required written back Others Total Segment Revenue Add: Unallocated Income Total Income 29.74 87.08 43.50 154.10 15,304.07 226.69 15,530.76 12,357.61 1,007.16 2.14 470.04 362.86 789.84
2.74 40.22 181.76 66.99 9,963.61 176.56 10,140.17
Segment assets comprise mainly of trade and other receivables, investments, Fixed Assets, Cash and Bank Balances. Unallocated assets for the current year represent taxes, deferred taxes, Premises given on operating lease. Segment liabilities include loans, trade and other payables and sundry creditors. Unallocated liabilities for the current year represents deposit received for premises given on operating lease. 12. Related parties disclosures: i) Relationships (During the year) A. Related Parties where control exists: Nature of Relationship Holding Company
Related Party Kotak Mahindra Bank Limited (KMBL) (Holds 75.95% of the Equity Share Capital)
Uday S. Kotak along with relatives and entities controlled by him holds 45.56% of the Equity Share Capital of Kotak Mahindra Bank Limited as on 31st March , 2011 B. i) Other Related Parties: Fellow Subsidiaries: Kotak Investment Advisors Limited Kotak Mahindra (International) Limited Kotak Mahindra (UK) Limited Kotak Mahindra Inc. Kotak Securities Limited Kotak Mahindra Asset Management Company Limited Kotak Forex Brokerage Limited Kotak Mahindra Prime Limited Kotak Mahindra Old Mutual Life Insurance Limited (Also Joint venture) ii) iii) Associate (Enterprises in which the Company has significant influence) Joint Venture Infina Finance Private Limited (The Company holds 49.99% of the Equity Share Capital) Kotak Mahindra Old Mutual Life Insurance Limited Joint Venture with Kotak Mahindra Bank Limited; Old Mutual Plc; Kotak Mahindra Prime Limited. Mr. Uday S. Kotak, Non-Executive Chairman Ms. Falguni Nayar, Managing Director Mr. S. Ramesh, Whole-Time Director (w.e.f. 22nd October, 2010)
iv)
ii)
The following transactions were carried out with related parties in the ordinary course of business. Kotak Mahindra Capital Company Limited Annual Report 2010-11
24
(Continued)
The following transactions were carried out with related parties in the ordinary course of business (all figures in Rupees Lakhs) Fellow Subsidiary Companies Kotak Mahindra (International) Limited Kotak Mahindra (UK) Limited Kotak Mahindra Inc. Kotak Securities Limited Kotak Mahindra Asset Management Co. Limited Kotak Forex Brokerage Limited Kotak Mahindra Prime Limited Total Kotak Mahindra Old Mutual Life Insurance Limited Falguni S. Ramesh Nayar Joint Venture Key Management Personnel
Its grt 2b 25
Nature of Transaction
Holding Company
Kotak Kotak Mahindra Investment Bank Advisors Limited Limited
Finance Interest received
Fixed Deposit Placed
Fixed Deposit encashed/ Matured
570.86 (268.15) 40,016.00 (20,262.00) 27,740.20 (32,318.50)
Advances Given Bank Balance
Fixed Deposit Balance including accrued interest
465.53 (6,925.24) 14,685.65 (2,310.29)
Investments Purchase/subscription
Schedules
Sale/redemption
Interest /Dividend / Premium on Investments
507.50# (575.00)# 341.29# (220.76)#
21,387.29# (56,777.5)# 28,013.45# (51,041.08)# (2.74)
5,000.00
26,894.79 (57,352.45) 28,354.74 (51,261.84) (2.74)
Stock-in-trade (Debentures) Sales and interest
(2,124.58)
Other receipt and payments Sale of Fixed assets
Purchase of Fixed assets
Income from Services
Expenses reimbursement to other companies
Reports
Expenses reimbursement by other companies
Other expenses paid/brokerage paid/fee/ commission sharing Remuneration*
Payables
Receivables
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Guarantees Outstanding
0.01 (10.65) (5.94) 850.03 (637.50) 120.12 (112.02) 109.03 (250.06) 16.64 (44.95) 6.98 (103.22)
(1.34) (15.25) 9.17 (7.46)
4,459.50 (15,715.00)
(7.00) (2.07) 1,153.65 (1,090.55)
1.39 (1.49)
(1.19) 24.47 (342.86) 624.98 (757.55) 4,484.09 (2,833.48) 24.28 (360.97) 58.60 (52.19)
44.37 (42.36)
(0.01)
(1.34) (1.19) 25.87 (359.60) 678.53 (814.39) 4,484.09 (2,833.48) 24.28 (360.97) 58.60 (54.26) 5,613.15 (16,805.55)
3.01 (2.54)
284.33 (132.70) (20.00)
107.29
Figures in brackets relates to the previous year.* Excludes provision for gratuity and leave encashment, since these are based on actuarial valuations done on an overall Company basis.#Represents investment & redemption of units of the Mutual/Venture Capital Fund
25
13. Operating Lease: A. Assets taken on lease: i) ii)
(Continued)
The Company has taken office and residential premises under operating lease or leave and licence agreements. These are generally renewable or cancellable at the option of the Company and range between 11 months to 36 months. Rent payments are recognised in the Profit and Loss Account under Rent and are disclosed in Schedule 16 Other Expenses.
B.
Asset given on lease: i) ii) iii) The Company has leased out certain assets under operating leases. Rent receipts are recognised in the Profit and Loss Account under Rent are disclosed in Schedule 13 Other Income. The future minimum lease payments under non-cancellable operating lease not later than one year as at 31st March 2011, aggregate to ` 114.00 lakh (Previous Year: ` 114.00 lakh) and those for period between one to five years aggregate to ` 95.00 lakh (Previous Year: ` 209.00 lakh).
14.
The Company has requested its suppliers to confirm the status as to whether they are covered under the Micro, Small and Medium Enterprises Development Act, 2006. In the absence of confirmation from the suppliers, disclosures, if any, relating to unpaid as at the year end together with interest paid/payable as required under the said Act have not been given. Earnings per Share (EPS) The numerator and denominator used to calculate Basic and Diluted Earnings per Share: 31st March 2011 Profit attributable to Equity Shareholders (` in Lakhs) (A) Basic/Weighted-average number of Equity Shares outstanding during the year (B) Nominal Value of Equity Shares (`) Basic Earnings per Share (A)/(B) 5,188.86 4,116,149 10 126.06 31st March 2010 2,386.18 4,116,149 10 57.97
15.
16.
In terms of a joint venture agreement entered into by the Company with Kotak Mahindra Bank Limited, Old Mutual Plc. and Kotak Mahindra Prime Limited, the Company holds 12.42% (Previous Year: 12.42%) ownership interest in Kotak Mahindra Old Mutual Life Insurance Limited (incorporated in India) which falls under the category of Jointly Controlled Entity as per Accounting Standard 27 Financial Reporting of Interests in Joint Ventures issued under The Companies Accounting Standard Rules, 2006. Aggregate amounts of assets, liabilities, income and expenses related to the interest in the jointly controlled entity based on the accounts for the year ended 31st March 2011: (` in Lakhs) 31st March 2011 (Unaudited) Assets Liabilities Income Expenses 1,063.41 1,012.54 449.70 436.97 31st March 2010 (Unaudited) 864.80 826.67 487.66 466.73
17.
Recovery of expenses in Schedule 14 Personnel Expenses and Schedule 16 Other Expenses are amounts recovered from the holding company, subsidiaries and fellow subsidiaries towards the value of costs apportioned of the Companys employees and facilities in accordance with the agreements on allocation of expenses with the companies. The year end foreign currency exposure which have not been hedged by a derivative instrument or otherwise are as given below: Particulars Amount receivable in foreign currency on account of revenue Figures in brackets are related to the previous year. ` in Lakhs 736.10 (250.49) USD 1,208,081 () JPY 36,668,996 () Euro (413,625)
18.
19.
Figures for the previous year have been regrouped wherever necessary to conform to current years classification.
26
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Reports
Balance Sheet Abstract and Companys general business profile as per Part IV, Schedule VI of the Companies Act, 1956. I. Registration Details Registration No. Balance Sheet Date II. U 6 7 1 2 0 M H 1 1 Year Rights Issue N Bonus Issue N III. I L I L Private Placement N I L N I L 2 0 0 1 P L C 1 3 4 0 5 0 State Code 1 1
3 1 Date
0 3 Month
Capital raised during the year (Amount in ` Thousands) Public Issue
Position of Mobilisation and Deployment of Funds (Amount in ` Thousands) Total Liabilities 5 1 5 5 Sources of Funds Paid-up Capital 4 1 Secured Loans N Deferred Tax Liability N Application of Funds Net Fixed Assets 2 0 0 5 Net Current Assets 1 6 9 5 6 Accumulated Losses N 2 7 I 3 5 L Investments 2 9 8 8 Misc. Expenditure N Deferred Tax Asset 8 7 I 5 L 9 5 0 8 I I L L 1 6 1 Reserves & Surplus 4 8 5 2 3 Unsecured Loans N I L 0 4 2 5 3 Total Assets 5 1 5 5 2 5 3
IV.
Performance of Company (Amount in ` Thousands) 1 Turnover 5 5 3 0 7 7 8 7 Total Expenditure 8 5 0 7 Profit after tax 5 1 8 Dividend rate % 0 0 0 8 9 8 9 6
Profit before tax 7 0 2 2
Earning per Share in ` (pro-rata) 1 2 6 . 0 6 V.
Generic Names of Three Principal Products/Services of Company (as per monetary terms) Item Code No. (ITC Code) Product Description I N V E S T M E N T N A A N D C L E A R I N G
B A N K I N G
For and on behalf of the Board of Directors Uday Kotak Chairman Ajay Vaidya Company Secretary Place: Mumbai Date: 26th April 2011 Its grt 2b 25 Falguni Nayar Managing Director Rajeev Saptarshi Chief Financial Officer Shanti Ekambaram Director
27
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KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE LIMITED
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BOARD OF DIRECTORS : MR. UDAY KOTAK (C), MR. SHAILESH DEVCHAND (VC), MR. SHIVAJI DAM, MR. VINEET NAYYAR, MS.PALLAVI SHROFF, MR. S. S. THAKUR, MR. GAURANG SHAH, MR. DIPAK GUPTA, MR. CRISPIN SONN (up to 30th April, 2011), MR. PANKAJ DESAI (MD), PRAKASH APTE (w.e.f. 28th May 2011), RALPH MUPITA (w.e.f. 1st May 2011).
Directors Report
TO THE MEMBERS OF KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE LIMITED Your Directors take great pleasure in presenting their Eleventh Report on the business and operations of your Company together with the Audited Financial Statements for the year ended March 31, 2011. This year was the third year of continued profitability by the Company. These results have been achieved by efficient management of capital, increased productivity and cost management. FINANCIAL RESULTS Your Company continues to demonstrate a consistent, value-based growth in a challenging and competitive environment. The Financial Year 2010-11 was a year of continued strong growth for your Company. The summarised results of operation of the Company are as follows: (` Crore) Particulars New Business Premium Renewal Premium Total Premium Profit/ (Loss) after tax Number of Policies written (Nos) New Business Sum Assured Bonus to Policyholders Year ended March 31, 2011 1,253 1,722 2,975 101 259,444 75,909 26 Year ended March 31, 2010 1,334 1,534 2,868 71 320,735 49,530 20 Growth -6% 12% 4% 42% -19% 53% 30%
Your Directors have declared an addition to the Policyholders Accumulation Account to give a return of 7% (2010 6.75%) to participating life policyholders and 8% (2010 8%) to annuity participating policyholders for the year ended 31st March 2011. A reversionary bonus of 2% (2010 -2%) has been declared on products eligible for reversionary bonus. DIVIDEND In view of the past accumulated losses, your Directors do not recommend any dividend for the current year. CAPITAL Your Company is one of the more efficient capital users in the life insurance space and has a good Assets under Management to Capital ratio. During the year under review, the Authorised Share Capital of your Company was ` 625 Crores, while the Paid-up Share Capital of your Company was ` 510 Crores. There has been no further capital infusion in 2010-11. LICENCE The Insurance Regulatory and Development Authority has renewed your Companys licence to carry on the business of life insurance and annuity for the year 2011-12. BUSINESS AND DISTRIBUTION CHANNELS The last fiscal was a landmark year for Life Insurance Industry. The regulatory landscape underwent a significant transformation with IRDA announcing a number of Regulations like Cap on charges on ULIPs, etc which required a relook at the fundamentals of distribution and align rapidly. The new reality required the Company to launch new products successfully, optimize the product mix and pursue greater distribution efficiencies. Your Companys Life Advisors & the distribution team were successful in achieving the same within a short span of time. The new products launched by your Company especially Kotak Ace Investment, Kotak Wealth Insurance, Kotak Single Invest Advantage & Kotak Assured Income Plan were received well by the customers & Life Advisors. a. Tied Agency Tied Agency was successful in reducing its costs and having a judicious mix of savings, investments & protection products. Your Company has always been focused on distribution efficiency and will ensure that it remains a key deliverable for Tied Agency in next fiscal as well. Investment in training Life Advisors & the sales hierarchy will be stepped up to ensure that the distribution is equipped to meet customers expectations. Its grt 2b 25
b.
Alternate Channels The Alternate Channels consists of three major divisions. Bancassurance Kotak Mahindra Bank continues to have significant share of Alternate channels business with gross new business premium contributing 28% of total business in FY 10-11. Besides Kotak Mahindra Bank, we have corporate agency tie ups with cooperative and commercial banks that also contribute to the premium income. Corporate Agency Your Company also has tie ups with 19 corporate agents, other than those under the bancassurance model. Strengthening and growing these relationships will continue to be a major focus in FY 11-12. Brokers Your company has tie ups with major brokers and has significant market share of business done by brokers in the industry. Your company will aim at maintaining its strong positioning in this segment in FY 11-12.
c.
Group Insurance Your Companys Group Business continues to perform exceedingly well year-on-year. The Company provides a range of products from Term Insurance, Gratuity and Superannuation Schemes to cater to its group clientele. Strong relationships within the Kotak Group and with other IRDA licensed Insurance Brokers have resulted in generation of significant business in this segment. Your Company generated a premium income of ` 288 crores (FY 2010 ` 221 crores) from the group insurance business representing a growth of 30 % over FY 2009-10.
PRODUCTS FY 2010-11 saw major changes in the product portfolio of your company. Your companys ULIP basket underwent complete overhaul to meet the new regulatory norms governing ULIPs, which came into effect from September 1, 2010. There was also renewed focus on non-ULIPS to increase their share in the overall product mix. During the year, your Company launched 6 new ULIPs conforming to new norms. The 6 ULIPs launched in the financial year by your company offer distinct value propositions to your companys customers.
G G G G G G
Kotak Single Invest Advantage is an investment oriented single premium plan. Kotak Ace Investment is a flexible long-term savings plan. Kotak Headstart Child Assure is a child plan. Kotak Wealth Insurance is a protection-oriented plan that offers triple protection. Kotak Secure Invest Insurance is a plan that offers capital guarantee along with market participation. Kotak Platinum is a plan targeted at high net worth individuals offering unmatched flexibility and loyalty additions.
The non-ULIP offering was bolstered with the introduction of Kotak Assured Income Plan. The plan offers guaranteed annual payout for 20 years among other benefits. Kotak Saral Suraksha, a non-ULIP insurance plan was also launched specifically for the rural clientele. This year your company also launched its e-Insurance portal through which a customer can buy life insurance online. In doing so, your company joined the annals of the first few to leverage the huge opportunity presented by the ever increasing independent buying of financial products and services online. This trend is expected to increase exponentially over the next few years, aided by factors such as rising internet penetration, convenience, speed, cost advantage and sturdier online payment safety architectures. Your company launched two products for online purchase - e-Term and e-Preferred Term plans. Highly competitive rates, medical examination at home in select cities, preferential rates for women and non-smokers are some of the key selling propositions. RURAL AND SOCIAL SECTORS During the year the Company wrote 52935 policies (Previous year 64337) in the rural sector representing 20.40 % (Previous year 20.06 %) of the total policies. This is against the regulatory requirement as per the IRDA (Obligations of Insurers to Rural and Social Sectors) Regulations, 2002 of 20% (Previous year 19%) of the total policies written in the financial year from the rural sector. Outperforming the regulatory requirement of covering 55,000 lives in the social sector, your company covered 547321 lives (Previous year - 131166 lives). Tie-up with new Micro Finance Institutions helped in the above process. Your company takes the social sector target not as an obligation, but with a sense of duty to the community as a Life Insurance Company. INDUSTRY SCENARIO The new ULIP regulations that came into force in September 2010 changed the face of life insurance business with customer centricity and efficiency becoming the industrys new buzzwords. New regulations have significantly enhanced the appeal of insurance products. Focus is on enhancing efficiencies and productivity of delivery channels. Significant proportion of insurance is still sold through individual agents and there is renewed vigour to manage this channel effectively to ensure persistency. In the new environment focus of insurers has shifted from largescale expansion to sustained value creation and efficient use of capital. Special emphasis is now placed on cost management.
Kotak Mahindra Old Mutual Life Insurance Limited Annual Report 2010-11 Reg. No. : 107, Date of Registration January 10, 2001
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HUMAN RESOURCES Your companys HR department has been, for a second year in a row, re-certified with the ISO certification for the year for its HR operations. The year has seen your company take major initiatives in Recruitment Process and Management areas. This would help your company in not just meeting with the environmental uncertainties - by building greater cost and process efficiencies - but also in further enhancing focus on the employee engagement and development priorities. The focus in the current year is to build on the employee value proposition to not just help in attracting new talent but also in retaining our key employees. The development agenda in the coming year would be geared up with a larger focus than ever before towards enhancing skills and improving employee productivity. INFORMATION TECHNOLOGY Your company has made significant investments into IT to create the backbone infrastructure to manage growth and scale of the kind your company aspires. Significant milestones have been achieved in driving online sales, business efficiency, information security, compliance and risk management through IT.
G G
Your company launched the on-line sales portal this year. The initial response to the initiative has been encouraging. Your company also implemented the Channel Partner Portal to cater to the information needs of alternate channel partners. This initiative is expected to significantly enhance efficiencies and service experience for our Alternate Channel partners. Considering the growth and criticality of the Group Insurance business, your company has decided to migrate to Group Asia the highly efficient and robust group insurance system from CSC. Further, implementation of Siebel CRM will significantly raise the bar of our customer service function. Your company has also managed to successfully centralize the agency function with the implementation of the Agency Recruitment and Licensing System. Furthermore, your company has added several new features to the internally developed payment system Payconnect, making data management faster and simpler. Your company has also made significant strides in the area of information security with the introduction of Managed Security Services, which inter alia involves anti-phishing, malware and threat monitoring and management, desktop hardening, security log monitoring and management and information security awareness.
G G
In recognition of its stellar efforts, your company was awarded the prestigious Enterprise Driving Growth and Excellence (EDGE) through IT Award for the successful implementation of Kotak Rewards and Incentive System in 2010. OPERATIONS AND CUSTOMER SERVICE In FY 2010-2011 your company implemented several new and innovative customer-centric initiatives, and made significant strides in upscaling its existing initiatives to deliver seamless, world class customer experience.
G
Your company will shortly implement the world class Siebel CRM system for servicing its customers. Siebel will help us create a common view of customers and prospects besides providing us a common framework to manage information. It will significantly improve our capacity to manage complaints and service requests thereby enhancing the overall quality of customer experience. Further, your company has initiated the zero paper initiative by implementing the first phase of email alerts to the customers. This ensures that basic alerts like renewal reminders, premium receipts etc are sent to customers on their registered email ids. Apart from being environmentally friendlier, this mode is also fast and efficient. For greater operational convenience in collections, your company has extended its auto debit facility to 6 additional Banks in non ECS locations. Instant SMS alerts for rejection of UL related transactions are also sent to customers on real time basis to keep them informed. Further, you will be happy to note that Operations and Customer Service ISO 9001:2008 quality certification audit was renewed for the fourth consecutive year. Your company is ready with Phase I of the Integrated Grievance Management System which would allow integration of the Companys complaints management system with that of IRDA on a real time basis.
G G
Group Insurance Business is a key element of our portfolio and is projected to grow exponentially in the time to come. Aligning the service quality therein with those we are progressively effecting elsewhere is crucial to ensuring uniformly seamless and hassle free customer experience across the company. COMPLIANCE AND INTERNAL CONTROL The Compliance and Internal Control function is not only the custodian of Regulatory framework but also counsels other functions within the Company on the changing Regulations and their implications within the industry. During the financial year all Regulatory changes were implemented in a timely and smooth manner. Your Company believes in proactive compliance to ensure that our practices are best in the
Its grt 2b 25
industry. The Compliance processes of your Company are complimented by independent audit conducted across various functions. Further, we are happy to inform you that during the year Legal and Compliance function has been granted ISO 9001:2008 quality certification. As a part of good Corporate Governance, the Audit Committee reviews the findings of the internal auditors who report directly to the Audit Committee. Your Company has a Compliance Policy and a Risk Management framework in place, in order to mitigate risks across the various functions of the Company and suitable measures are taken to proactively manage risks at all levels. INVESTMENTS Your Company manages its investments within the overall framework laid down by the Regulation. The Investment function works under the overall supervision of Investment Committee of the Board. The Company has implemented systems to help in analysis of investment portfolio, which acts as an enabler to the front-end Investment team in asset allocation and stock selection. Further, the Company has well staffed Investment team which has been structured for effective function and independent checks to constantly monitor investment performance and analysis. The total Assets under Management for traditional and Unit Linked Funds has crossed ` 8500 crores during Financial year 2010- 11. CORPORATE GOVERNANCE Your Company has consciously endeavoured to follow the policy of transparency, accountability and always held the interest of all its stakeholders to be of paramount importance. Your Company has implemented the requirement of Corporate Governance circular issued by IRDA. BOARD OF DIRECTORS AND COMMITTEES Your Company has eleven Directors on its Board. Ten of such Directors are Non-Executive Directors out of which five are Independent Directors. The Chairman of the Board holds a non-executive position and the Chairman of Audit Committee is an Independent Director. Mr. Vineet Nayyar and Ms. Pallavi Shroff are liable to retire by rotation at the ensuing Annual General Meeting of the Company. Mr. Vineet Nayyar, being eligible for re-appointment offers himself for reappointment. Ms. Pallavi Shroff due to her other pre-occupation has expressed her desire not to seek reappointment. The Board wishes to place on record their appreciation of contribution of Ms. Pallavi Shroff during her association with the company. Mr. Pankaj Desai has decided to step down from the position of Managing Director. The Board wishes to place on record their sincere appreciation of the contribution made by Mr. Pankaj Desai during his association with the Company as Executive Director and Managing Director. It has been proposed to appoint Mr. G Murlidhar; currently Chief Operating Officer and Company Secretary of the Company as Managing Director of the Company in place of Mr. Pankaj Desai. The appointment of Mr. G Murlidhar is subject to approval of the Insurance Regulatory and Development Authority and Shareholders in the forthcoming Annual General Meeting. In view of Mr. Shivaji Dam, ceasing to be a Director of Kotak Mahindra Bank Limited with effect from March 21, 2011, there is a requirement for appointing an Independent Director on the Board of the Bank (Holding Company) as a Director on the Board of your Company to enable the Holding Company to comply with Clause 49 of the Listing Agreement. Accordingly Mr. Prakash Apte was appointed as an Additional Director of your Company by a Circular Resolution of the Board dated May 28, 2011. Mr. Apte will be an Independent Director on the Board. The detailed composition of the Board and various Committees alongwith the list of meetings held are disclosed as part of annexed report on Corporate Governance. AUDITORS M/s S. R Batliboi., Chartered Accountants and M/s. M. P. Chitale & Co., Chartered Accountants, the Joint Auditors of your Company, hold office until the conclusion of the ensuing Annual General Meeting of the Company. M/s. S.R. Batliboi being eligible have offered themselves for reappointment. As required by the IRDA Corporate Governance guidelines, M/s M.P. Chitale & Co. have completed a term of 5 years and are not eligible for reappointment. It is proposed to appoint Walker, Chandiok & Co. in their place as Joint Statutory Auditors. MANAGEMENT REPORT Pursuant to the provisions of Regulation 3 of the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditors Report of Insurance Companies) Regulations, 2002, the Management Report forms a part of the financial statements. STATUTORY INFORMATION PUBLIC DEPOSITS: During the period under review, your Company has not accepted any deposits from the public. PARTICULARS OF EMPLOYEES: The information required under Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975 is enclosed herewith.
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CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO: 1. Conservation of Technology and Technology Absorption In view of nature of business of the Company, the information relating to conservation of energy and technology absorption as required under Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988 is not required to be given. 2. Foreign Exchange Earnings and Outgo: (` In Crore) Particulars Foreign Exchange earned Foreign Exchange Outgo DIRECTORS RESPONSIBILITY STATEMENT Based on representations from the Management, your Directors state, in pursuance of Section 217(2AA) of the Companies Act, 1956, that: a. b. Your Company has, in the preparation of the annual accounts for the year ended 31st March 2011, followed the applicable accounting standards along-with proper explanations relating to material departures, if any; The Directors have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent, so as to give a true and fair view of the state of affairs of your Company as at 31st March 2011, of the surplus in the Revenue Account and the surplus in the Profit and Loss Account of your Company for the financial year ended 31st March 2011; The Directors have taken proper and sufficient care to the best of their knowledge and ability, for the maintenance of adequate accounting records in accordance with the provisions of the Act, for safeguarding the assets of your Company and for preventing and detecting fraud and other irregularities; and The Directors have prepared the annual accounts on a going concern basis. 2010-11 20.23 18.85 2009-10 Nil 18.83
c.
d.
ACKNOWLEDGEMENTS The Directors thank the Insurance Regulatory and Development Authority for its continuous support. The Directors are grateful for the continued faith that the policyholders have reposed. The Directors acknowledge the support extended by their shareholders and express their appreciation of the fine performance of the employees that made this year a notable one.
For and on behalf of the Board of Directors Uday Kotak Chairman
Mumbai, May 30, 2011
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REPORT ON CORPORATE GOVERNANCE

The Report on the Companys Corporate Governance, as per the applicable provisions of IRDA Guidelines on Corporate Governance is as under BOARD OF DIRECTORS AND COMMITTEES Composition, Meeting and Attendance The composition of the Board of Directors and its Committees is governed by the Insurance Act, 1939 and Corporate Governance Guidelines mandated by IRDA. Your Company has eleven Directors on its Board of whom ten are Non-Executive Directors and five are Independent Directors. The Chairman of the Board holds a non-executive position and the Chairman of Audit Committee is an Independent Director. The responsibilities of the Board include inter-alia compliance with relevant laws, regulations and code of conduct, formulating the various policies of the company, define standards of conduct in business, policyholders servicing and grievance redressal, risk management, review and monitor the plans and provide strategic guidance. A brief profile of the Directors, along with the other companies in which they hold Directorships and the Membership of the Committees of the Board are given hereunder: 1. Mr. Uday Kotak - Non-Executive Chairman Mr. Uday Kotak, B.Com, MMS (Masters in Management Studies), aged 52 years, is the Non Executive Chairman of the Company. Over the past 25 years, he has built a team of professionals who have been given independent charge of various businesses in Kotak Mahindra Group. He was responsible for starting the Kotak Mahindra Group as a start-up venture in a limited range of activities and then building it up into a full financial services group, many of the constituents of which are among the leading players in their respective fields. He is a Member on the Board of Governors of Indian Council for Research on International Economic Relations (ICRIER) and Governing Member of the Mahindra United World College of India. He is on the Board of the following companies: Kotak Mahindra Bank Limited Kotak Forex Brokerage Limited Kotak Mahindra Prime Limited Kotak Mahindra Asset Management Company Limited Kotak Mahindra Capital Company Limited Kotak Securities Limited 2. Mr. Shailesh Devchand- Non Executive Director Shailesh Devchand (B,Sc. F.I.A), a South African of Indian origin, is by profession a qualified Actuary through the Institute of Actuaries in London (1998). Shaileshs career spans over 18 years in the financial services industry across several roles ranging from Development Actuary at Liberty Group in South Africa, to Senior Consultant and Country Executive Malaysia for a Singapore-based actuarial and distribution consulting firm. Shailesh spent 4 years in Asia until the end of 2003 on various consulting assignments across South East Asia for several Life and General insurers as well as regulatory bodies. His earlier experience includes group employee benefits, Life and group product development, valuation and reserving sign offs, corporate strategy and business development as well as distribution channel development and economics. Shailesh Joined Old Mutual Group on his return to South Africa in 2004 to take on a role as Head of Business Development for Old Mutual South Africa focussing on alternative distribution. He later played a role as Executive within Old Mutuals Retail Mass and Foundation Cluster business as Chief Operating Officer Foundation Market. Shailesh currently holds the role of Director Asian Markets for Old Mutuals Emerging Markets business. Mr. Shailesh Devchand is the member of Investment and Audit Committee of the Company. 3. Mr. S. S. Thakur- Independent Director Mr. S. S. Thakur has held important positions in his long professional career in the field of banking and foreign exchange. He was the Controller of Foreign Exchange, Reserve Bank of India, Chairman of HDFC Bank and Senior Advisor of United Nations Development Programme (UNDP). He served the Reserve Bank of India in different capacities for over 30 years. With wide professional expertise in banking and foreign exchange, Mr. Thakur joined the U. N. International Civil Service in January 1988 as Senior Adviser, UNDP and worked in Zambia as Adviser to the Governor, Bank of Zambia for 6 years (January 1988 December 1993). Subsequently, he took up the position of Chairman, HDFC Bank. Mr. Thakur has extensive experience of central banking functions covering, among others, management of foreign exchange, exchange rate and external debt, regulation and monitoring of external trade financing, foreign technical collaboration, foreign equity investment and exchange market development. As the Controller of Foreign Exchange Mr. Thakur was instrumental in initiating various exchange control reforms and relaxations. He was also associated with formulation of policies for promoting foreign investment in India including investment by non-resident Indians (NRIs). In his capacity as the Senior UN Adviser and Adviser to the Governor, Bank of Zambia, Mr. Thakur played a key role in designing and
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Financial Statements Corporate Governance
Reports
implementing market-oriented monetary, foreign exchange, banking, exchange rate, external debt and trade related policies as part of Zambias structural adjustment programme. His UN assignment resulted in major relaxations (in several cases total abolition) of exchange controls on current and capital account transactions and contributed significantly to various monetary policy and banking reforms. Mr. Thakur was the founder Chairman of HDFC Bank, a highly reputed private sector commercial bank promoted by Housing Development Finance Corporation (HDFC). He was associated with HDFC Bank as its Chairman for about seven years (1994-2000) and played a key role in formulating policies and business strategies to achieve high standards and best practices in terms of product offerings and service levels. During this period the bank achieved excellent growth in business volumes and revenue earnings and earned a high reputation for efficient business dealings. It has received several awards from leading domestic as well as prestigious international publications like Euromoney and Finance Asia as the Best Domestic Bank in India. Forbes Global (USA) has rated HDFC Bank amongst the top 20 best small companies of the world. Mr. Thakur has extensive exposure in capital market related areas. He has worked as a Public Interest Director on the Governing Board of Bombay Stock Exchange for five years and was the Chairman of Central Depository Services (India) Ltd. for over nine years. Currently, he is a Public Interest Director on the Board of MCX Stock Exchange and is also an Independent Director on the Boards of several other companies. Mr. Thakur is Chairman of the Audit Committee of the Company. 4. Ms. Pallavi Shroff- Independent Director Mrs. Pallavi S. Shroff, B.A. (Hons.)-Economics/ LLB./ Masters-Marketing Services, aged 54 years, is the lead litigation partner at Amarchand & Mangaldas & Suresh A. Shroff & Co., Advocates & Solicitors, New Delhi. She manages corporate commercial litigation as well as arbitration. Mrs. Shroff also heads the competition law practice at Amarchand Mangaldas, which is one of the leading full-service law firms in India. In thirty years as a leading litigation practitioner, she has been recognized by international publications for her leading practice in dispute resolution and litigation (Asia Legal 500) and is also rated as one of three leading practitioners involved with arbitration (Whos Who of Commercial Arbitrators, 2004). She has been closely involved with some of the largest and most challenging corporate, commercial & infrastructure litigation and arbitration in India and has played a pivotal role in telecom, energy, natural resources and transportation related dispute resolution. Her experience includes ad-hoc arbitrations and institutional arbitrations under ICC, LCIA, UNCITRAL etc. She is on the Board of the following companies; Abhishek Industries Limited Maruti Suzuki India Limited PTL Enterprises Limited Artemis Health Sciences Limited Artemis Medicare Services Limited Juniper Hotels Private Limited. She is a member of the Audit Committee of Maruti Suzuki India Ltd. and Juniper Hotels Private Limited. 5. Mr. Vineet Nayyar- Independent Director Mr. Vineet Nayyar is the Vice Chairman, MD & CEO of Tech Mahindra Limited and the Chairman of Satyam Computer Services Limited. An accomplished leader, he has led several organizations across industries, created high performance teams and successful businesses. In a career spanning over 50 years, he worked with the Government of India, international multilateral agencies and corporate sector (both public and private). He started his career with the Indian Administrative Service and while in Government of India, he held series of senior positions including that of District Magistrate, Secretary - Agriculture and Rural Development for the Government of Haryana and Director, Department of Economic Affairs, Government of India. He worked with the World Bank for over 10 years in a series of senior assignments, including successively being the Chief for the Energy, Infrastructure and the Finance Divisions for East Asia and Pacific. In the Corporate Sector, he was the founding Chairman and Managing Director of the state owned Gas Authority of India and in the private sector, he served as the Managing Director of HCL Corporation and the Vice Chairman of HCL Technologies. Mr. Nayyar also served on the Boards of Indian Oil Corporation Limited and Bharat Heavy Electricals Ltd. He was also the founder and CEO of HCL Perot Systems. He holds a Masters degree in Development Economics from Williams College, Massachusetts. Mr. Nayyar is also a Director on the Boards of Great Eastern Shipping Company Ltd, CanvasM Technologies Ltd, Mahindra Holidays and Resorts India Ltd, Mahindra Logisoft Business Solutions Ltd and Greatship (India) Limited. Mr. Nayyar is a Trustee of Charitable Social Welfare Foundation, which cares for the needs of education of under-privileged children. This Foundation is closely associated with 12 renowned NGOs, which supports by way of providing grants empowering around 7000 students. 6. Mr. Shivaji Dam- Independent Director Mr. Shivaji Dam, B.Com, AICWA, ACA, ACS, aged 54 years, has a strong accounting and cost accounting back ground with over 27 years experience of which 19 years have been with the Kotak Group. He has experience in fields such as Corporate Finance, Proprietary Investments, Investment Banking and operating management within the Kotak Group. He is one of the founding Directors of the Company. He led the Kotak group into the life insurance business and was Managing Director of the Company for four years. Its grt 2b 25
He is member of the Audit Committee and Chairman of the Banking Committee and Policyholders Protection Committee of the Company. Mr. Shivaji Dam is also on the Board of Kotak Mahindra Trusteeship Services Limited & Kotak Mahindra Pension Fund Limited. 7. Mr. Pankaj Desai - Managing Director Mr. Pankaj Desai, aged 49 years, B.Com, CA, has over 25 years experience in the field of Corporate Finance, Retail Finance and Insurance. Mr. Pankaj Desai joined the Kotak Group in 1999 as Vice President - Kotak Mahindra Finance Ltd. and since then has had many responsibilities within the Group. Prior to joining Kotak Life Insurance, he was heading the Retail Assets business at Kotak Mahindra Bank Ltd. where he was responsible for verticals like Car Finance, Personal Loans, Home Finance and Business Banking. He was also heading Kotak Mahindra Primus Limited; a joint venture of Kotak Mahindra with Ford Credit and one of the most profitable Automobile financing Companies. His varied exposure at senior positions over the past 25 years has given him considerable experience and management expertise. In his capacity, he manages overall business growth and drives the strategic vision of the Company. He is a member of the Policyholders Protection Committee, Investment Committee and Chairman of Asset Liability Management Committee of the Company. 8. Mr. Dipak Gupta- Non Executive Director Mr. Dipak Gupta, B.E. (Electronics), PGDM-IIM, Ahmedabad, aged 50 years, is a Non- Executive Director of the Company and has over 25 years of experience in the financial services sector, 19 years of which have been with the Kotak Group. He is responsible for Group HR, Admin, Infra, Operations and IT. He is also responsible for Asset Reconstruction Business of the Bank. Mr. Dipak Gupta is the Chairman of Investment Committee and a member of the Audit Committee of the Company. Mr. Dipak Gupta was responsible for leading the Kotak Groups initiatives into the banking arena. Prior to joining the Kotak Group, he was with A. F. Ferguson & Company for approximately six years. He is on the Board of the following companies: Kotak Mahindra Bank Limited Kotak Mahindra Prime Limited Kotak Forex Brokerage Limited Kotak Mahindra Capital Company Limited Kotak Mahindra Investments Limited 9. Mr. Gaurang Shah- Non Executive Director Mr. Gaurang Shah is the Group Head Asset Management and Life Insurance at Kotak Mahindra Group and is responsible for Domestic and International Asset Management and Life Insurance businesses of the Group. He took over this assignment on May 1, 2010. In his immediate prior assignment, he was the Managing Director of Kotak Mahindra Old Mutual Life Insurance Limited. Mr. Shah has over 27 years of rich and varied experience primarily in the Financial Services sector, several of which are in the Kotak Mahindra Group. He has held several positions of high responsibility over the years, including, inter alia, the Head of Retail Assets at Kotak Mahindra Bank. He was also closely associated with Kotak Mahindra Primus (a joint venture between Kotak Mahindra Group and Ford Credit International), among Indias leading automobile finance companies. Mr. Shah is a Chartered Accountant and Cost Accountant. Mr. Shah is a member of Investment Committee, Asset Liability Management Committee and Chairman of Risk Management Committee of the Company. 10. Mr. Crispin Sonn- Non Executive Director (upto 30th April 2011) Holds a B.A. in Social Sciences and Humanity and Honours Degree in Business and Administration. He was CEO of Africa Group, which he cofounded with his father, Franklin, and others. Previously, he worked in the IT industry as chairman of SourceCom. He was also national market development manager of Prestasi Brokers, founder of Cominex SA and co-founder of New SA Fishing Enterprises. He is also a member of the council of the University of Cape Town, on the board of advisers of the Graduate School of Business at University of Cape Town. The Other Directorships/Memberships held by him are as follows: Capespan (Pty) LTD FoodBank SA Foodbank Foundation Masisizane Old Mutual Foundation University of Cape Town Graduate School of Business Board of Advisors Frontier Minerals
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11. Mr. Prakash Apte - Independent Director (w.e.f 28th May 2011) Mr. Prakash Apte, B.E. (Mechanical), aged 57 years, is presently the Chairman of Syngenta India Limited, one of the leading agri business companies in India. Mr. Apte, in a career spanning over 34 years has considerable experience in various areas of management and business leadership. During more than 15 years of very successful leadership experience in agri business, he has gained varied knowledge in various aspects of Indian Agri Sector and has been involved with many initiatives for technology, knowledge and skills up gradation in this sector, which is so vital for Indias food security. He was instrumental in setting up the Syngenta Foundation India which focuses on providing knowledge and support for adopting scientific growing systems to resource poor farmers and enabling their access to market. 12. Ralph Mupita - Non Executive Director (w.e.f 1st May 2011) An engineer by training,(B.Sc. Eng Hons. ), Ralph obtained a Masters of Business Administration (MBA) from the University of Cape Town in 2000. He is a graduate of Harvard Business Schools GMP programme, and has also attended executive programmes at London Business School and INSEAD. Ralph joined Old Mutual in 2001. Within Old Mutuals Individual Life business, he managed the transformation programme that formed the base of developing the new generation products and servicing, before his promotion to Managing Director of Old Mutual Unit Trusts in 2004. Ralph became the groups Strategy Director in 2006 and led the development of several new businesses within OMSA as Director of New Ventures. A key new business that Ralph led was setting up the South African based lending business Old Mutual Finance focused on lending solutions to mass market customers. In 2008, Ralph was then appointed as the Managing Director - Retail to drive the growth of Old Mutual in the affluent segment which includes the distribution of its solutions through the tied adviser force, broker networks, independent and bank channels. On 1st April 2011 Ralph was appointed as the Chief Executive Officer for Old Mutual Emerging Markets: Life and Savings. The focus of this role is to drive growth of our life and savings businesses in South Africa, Rest of Africa, Latin America and Asia through leveraging group capabilities and skills. Ralph is a director of the main Emerging Markets board OMLACSA. He also serves on various subsidiary boards. Outside of Old Mutual he is a board member of the University of Cape Town (Graduate School of Business) Advisory. He is also involved in a school in South Africa thats focused on developing math and science competence for learners from disadvantaged backgrounds. The following table gives the composition of the Board of Directors and the Committee positions held by them as on 31st March 2011. Sr. No. Name Board of Directors Audit Investment Risk Asset Liability Policyholders Committee Committee management Management Protection Committee Committee Committee Member Invitee Member Member Chairman Member Member Member Chairman Member Member Chairman Member Chairman Chairman Member -
1 2 3 4 5 6 7 8 9 10 11
Mr. Uday Kotak Mr. Rafael Galdon (upto Feb.9, 2011) Mr. Gaurang Shah Mr. Shivaji Dam Mr. Crispin Sonn Mr. Dipak Gupta Ms. Pallavi Shroff Mr. S.S. Thakur Mr. Vineet Nayyar Mr. Pankaj Desai Mr. Shailesh Devchand (from Feb. 9, 2011)
Chairman Vice Chairman Non Executive Director Independent Director Non Executive Director Non Executive Director Independent Director Independent Director Independent Director Managing Director Additional Director Vice Chairman
BOARD MEETINGS During the year under review, meetings of the Board of Directors were held on April 27, 2010, August 25, 2010, November 3, 2010 and February 9, 2011.
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The details of the Directors attendance at Board meetings held during the year ended 31st March 2011 are as under: Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Directors Uday Kotak Rafael Galdon (upto Feb. 9, 2011) Gaurang Shah Shivaji Dam Crispin Sonn Dipak Gupta Pallavi Shroff S. S. Thakur Vineet Nayyar Pankaj Desai Shailesh Devchand (w.e.f .Feb 9, 2011) No. of meetings attended 4 4 4 2 2 4 4 2 4 1
DIRECTORS REMUNERATION ELEMENTS OF REMUNERATION PACKAGE OF INDIVIDUAL DIRECTORS FOR THE YEAR ENDED 31ST MARCH 2011 (` In 000) Name of Director Mr. Uday Kotak Mr. Rafael Galdon (upto Feb. 9, 2011) Mr. Gaurang Shah Mr. Shivaji Dam Mr. Crispin Sonn Mr. Dipak Gupta Ms. Pallavi Shroff Mr. S. S. Thakur Mr. Vineet Nayyar Mr. Pankaj Desai Mr. Shailesh Devchand (from Feb 9, 2011) COMMITTEES OF THE BOARD OF DIRECTORS The Board has constituted several committees to delegate various functions and as mandated by Corporate Governance Guidelines issued by IRDA. The details of the Committees are as under: 1. AUDIT COMMITTEE The Audit Committee of the Company comprises of 4 Directors of which 2 are independent Directors, the Chairman being an independent Director. The terms of reference of the Audit Committee are as follows: a. Financial Reporting Recommend on the appointment of the Statutory Auditors and Internal Auditors and ensure that they are independent before recommending their appointment; Oversee the external audit coverage Review accounting policies Sitting Fee __ __ __ 50 __ __ __ 80 20 __ __ Salaries & Allowances __ __ 6,618 __ __ __ __ __ __ 18,916 __ Perquisites __ __ 3 __ __ __ __ __ __ __ __ Companys contribution to PF __ __ 90 __ __ __ __ __ __ 720 __ Commission __ __ __ __ __ __ __ __ __ __ __ Total __ __ 6,711 __ __ __ __ __ __ 19,636 __
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b.
Examine the financial statements. Financial reporting, statement of cash flows and disclosure on an annual and quarterly basis.
Corporate Governance Review corporate policies relating to compliance with laws and regulations, ethics, conflict of interest, and the investigation of misconduct and fraud Review the scope and findings of internal audit Investigate any activity within its terms of reference Seek information from any employee of the Company Obtain outside legal or other professional advice Secure attendance of outsiders with relevant expertise, if it considered necessary Approve the payments to statutory auditors for any other services rendered by the statutory auditors; Review, the annual financial statements before submission to the Board for approval, with particular reference to disclosure of any related party transactions. Review the functioning of the Whistle Blower Policy of the Company
c.
Corporate Control: Oversee the internal audit function Review and approve the internal audit resources, plans and budgets Review audit reports prepared by Internal Auditors and Statutory, and special audit investigations Review reliability and integrity of financial and operation information Review operating control systems established to ensure compliance with policies, plans, procedures, laws and regulations
Any other matter relating to Audit, Internal Control, Internal Audit or related matter which may be referred by the Board to the Committee During the year under review, 4 meetings of the Audit Committee were held on April 27, 2010, August 25, 2010, November 3, 2010 and February 9, 2011. The details of the attendance of the Members are as follows; Name of Member of the Committee Mr. S. S. Thakur (Chairman) Mr. Shivaji Dam Mr. Dipak Gupta Mr. Rafael Galdon 2. INVESTMENT COMMITTEE The Investment Committee of the Company comprises of 3 Non-executive Directors and the Managing Director, Chief Investment Officer, Chief Financial Officer and Appointed Actuary being the other members of the Committee. The terms of reference of the Investment Committee are as follows: It shall be responsible for laying down an overall investment policy and operational framework for the investment operations of the insurer. The policy should focus on a prudential Asset Liability Management (ALM) supported by robust internal control systems. The Investment policy and operational framework shall, interalia, encompass aspects concerning liquidity for smooth operations, compliance with prudential regulatory norms on investments, risk management/mitigation strategies to ensure commensurate yield on investments and above all protection of the Investments based on the performance of investments and the evaluation of dynamic market condition. The Members of the Committee shall not be solely influenced by the credit rating agencies. The committee shall independently review the requirement to be carried out by the Investment Team It shall also put in place an effective reporting system to ensure compliance with the policy set out by it apart from internal/Concurrent Audit mechanisms for a sustained and on going monitoring of Investment Operations The Committee shall furnish a report to the Board on the performance of Investments at least on a quarterly basis and provide analysis of its Investment portfolio and on the future outlook to enable the Board to look at possible policy changes and strategies. Its grt 2b 25 No. of meetings held during the tenure of the member 4 4 4 4 No. of meetings attended by the member 4 2 1 4
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During the year under review, 4 meetings of the Investment Committee were held on April 26, 2010, August 24, 2010, November 3, 2010 and February 8, 2011. The details of the attendance of the Members are as follows; Name of Member of the Committee Mr. Dipak Gupta (Chairman) Mr. Gaurang Shah Mr. Rafael Galdon (upto Feb. 9, 2011) Mr. Shivaji Dam Mr. Pankaj Desai (MD) Mr. G Murlidhar (COO & CFO) Mr. Andrew Cartwright (Appointed Actuary) Mr. Sudhakar Shanbhag (Chief Investment Officer) 3. RISK MANAGEMENT COMMITTEE The Risk Committee comprises of one Non-executive Director, the Managing Director, Chief Operating Officer, Appointed Actuary and Heads of Operations, Compliance and Process Excellence as members. The terms of reference of the Committee include: Assist the Board in effective operation of the risk management system by performing specialised analyses and quality reviews Maintaining a group-wide and aggregated view on the risk profile of the insurer in addition to the solo and individual risk profile Report to the Board details on the risk exposures and the actions taken to manage the exposures Advise the Board with regards to risk management decisions in relation to strategic and operational matters such as corporate strategy, mergers and acquisitions and related matters No. of meetings held during No. of meetings attended the tenure of the member by the member 4 4 4 2 4 4 4 4 4 4 4 1 4 4 3 4
During the year under review, 4 meetings of the Risk Management Committee were held on April 19, 2010, July 20, 2010, October 28, 2010 and February 3, 2011. The details of the attendance of the Members are as follows: Name of Member of the Committee Mr. Gaurang Shah (Chairman) Mr. Pankaj Desai (MD) Mr. G Murlidhar (COO & Company Secretary) Mr. Andrew Cartwright (Appointed Actuary) Mr. Hitesh Veera (Head - Operations) Mr. R Mahesh Kumar (Head - Compliance) Mr. Durga Prasad (Head - Process Excellence) 4. ASSET LIABILITY MANAGEMENT COMMITTEE (ALM) The ALM Committee comprises of one Non- Executive Director, the Managing Director, Chief Operating Officer, Chief Investment Officer and Appointed Actuary as the members of the Committee. The terms of reference of the Committee are as follows: Setting the Companys risk/reward objectives and assess policyholder expectations Quantifying the level of risk exposure and assessing the expected rewards and costs associated with the risk exposure Formulating and implementing optimal ALM strategies and meeting risk/reward objectives. The strategies must be laid down both at product level and enterprise level Laying down the risk tolerance limits Monitoring risk exposures at periodic intervals and revising ALM strategies where required Placing the ALM information before the Board at periodic intervals No. of meetings held during the tenure of the member 4 3 4 4 4 4 4 No. of meetings attended by the member 4 1 4 4 2 3 4
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During the year under review, six meetings of the ALM Committee were held on June 16, 2010, July 28, 2010, October 12, 2010, November 26, 2010, January 24, 2011 and March 26, 2011. The details of the attendance of the members are as follows: Name of Member of the Committee Mr. Gaurang Shah - (Non Executive Director) Mr. Pankaj Desai (Chairman & MD) Mr. G Murlidhar (COO & Company Secretary) Mr. Andrew Cartwright (Appointed Actuary) Mr. Sudhakar Shanbhag (Chief Investment Officer) 5. POLICYHOLDER PROTECTION COMMITTEE The Committee comprises of one Independent Director being the Chairman, the Managing Director, the Appointed Actuary, Heads of Sales and Marketing being the members. The terms of reference of the Committee includes: Putting in place proper procedures and effective mechanism to address complaints and grievances of policyholders including mis-selling by intermediaries Ensure compliance with the statutory requirements as laid down in the regulatory framework relating to Policyholders protection Review of the mechanism at periodic intervals Ensure adequacy of disclosure of material information to the policyholders. These disclosures shall, for the present, comply with the requirements laid down by the authority both at the point of sale and at periodic intervals. Review the status of complaints at periodic intervals to the policyholders Provide the details of grievances at periodic intervals in such formats as may be prescribed by the authority Provide details of insurance ombudsmen to the policyholders No. of meetings held during the tenure of the member 6 6 6 6 6 No. of meetings attended by the member 5 6 6 6 6
During the year under review, four meetings of the Policyholder Protection Committee were held on June 17, 2010, September 17, 2010, December 8, 2010, February 28, 2011. The details of the attendance of the members are as follows: Name of Member of the Committee Mr. Shivaji Dam (Chairman) Mr. Pankaj Desai (MD) Mr. Andrew Cartwright (Appointed Actuary) Mr. Suresh Agarwal (Head Alternate Sales) Ms. Elizabeth Venkatraman (Sr. Vice President, Marketing) ADDITIONAL DISCLOSURES MANDATED BY CORPORATE GOVERNANCE GUIDELINES A. FINANCIAL AND OPERATING RATIOS, NAMELY, INCURRED CLAIM, COMMISSION, AND EXPENSES RATIOS. Particulars 1) Claims Ratio: a. b. 2) Claims as % of Total Premium (Claims does not include Surrender, Maturity and Survival Benefits) Surrender, Maturity and Survival benefits as % of Total Premium 3.10% 31.73% 2.25% 15.07% Year ending March 2011 Year ending March 2010 No. of meetings held during No. of meetings the tenure of the member attended by the member 3 4 4 4 4 3 2 3 3 4
Commission Ratio: a. b. New Business Commission as a % of New Business Premium Total Commission as a % of Total Premium 8.07% 4.42% 11.11% 6.07%
3)
Expenses Ratio: a. b. Policy holder expenses as a % of Total Premium (Policy holder expenses does not include service tax expense) Ratio of expenses of management 18.44% 23.91% 18.84% 26.08% Its grt 2b 25
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B.
ACTUAL SOLVENCY MARGIN DETAILS VIS -A-VIS THE REQUIRED MARGIN. Particulars Actual Solvency Margin Required Solvency Margin Year ending March 2011 2.67 1.50 Year ending March 2010 2.79 1.50
C.
POLICY LAPSE RATIO Particulars Lapse including ACM Ratio Conservation Ratio = Current.Year Pure Renewal / (Previous Year New business Premium+ Previous Year Pure Renewal) Year ending March 2011 20.0% 70.05% Year ending March 2010 20.40% 70.50%
D.
FINANCIAL PERFORMANCE INCLUDING GROWTH RATE AND CURRENT FINANCIAL POSITION OF THE INSURER This information is provided under Financial Results section of the Directors Report
E.
A DESCRIPTION OF THE RISK MANAGEMENT ARCHITECTURE This information forms part of the Management Report
F.
DETAILS OF NUMBER OF CLAIMS INTIMATED, DISPOSED OFF AND PENDING WITH DETAILS OF DURATION Total Death Claims Summary Count Claims O/S at Start of Year Claims Intimated Claims Settled Claims Repudiated Claims O/S from date of intimation at End of Year* *Ageing for Claims O/S from date of inception at End of Year Less than 3 months 3 months and less than 6 months 6 months and less than 1 year 1 year and above Total 307 27 15 24 373 8.66 0.78 0.30 0.86 10.61 243 27 10 15 295 9.58 0.90 0.32 0.53 11.33 295 5067 4837 152 373 Mar-11 (` Cr) ` 11.33 108.38 102.37 6.73 10.61 Count 250 3295 3140 110 295 Mar-10 (` Cr) 7.44 100.26 91.53 4.84 11.33
G.
ALL PECUNIARY RELATIONSHIPS OR TRANSACTIONS OF THE NON-EXECUTIVE DIRECTORS VIS--VIS THE INSURER SHALL BE DISCLOSED IN THE ANNUAL REPORT This information is included in the Management Report
Certification for compliance of the Corporate Governance Guidelines

I, G. Murlidhar hereby certify that the Company has complied with the Corporate Governance guidelines for Insurance Companies as amended from time to time and nothing has been concealed or suppressed. Sd/-
G. Murlidhar Chief Operating Officer & Company Secretary
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MANAGEMENT REPORT FOR THE YEAR ENDED MARCH 31, 2011 In accordance with the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditors Report of Insurance Companies) Regulations, 2002, the Board of Directors presents its Management Report for the year ended March 31, 2011. 1. 2. 3. 4. 5. 6. Validity of Registration: Your Directors confirm that the registration granted to the Company by the Insurance Regulatory and Development Authority is valid on this date. Statutory Dues: Your Directors certify that all the dues payable to the statutory authorities have been duly paid. Shareholding pattern: Your Directors confirm that the shareholding pattern and transfer of shares during the year are in accordance with the statutory and regulatory requirements Investment of policyholders funds: During the year, your Company has not directly or indirectly invested outside India the funds of the holders of policies issued in India. Solvency margins: Your Directors confirm that the solvency margins as required by regulations prescribed by Insurance Regulatory and Development Authority of India have been maintained. Values of assets: Your Directors certify that the values of all the assets have been reviewed on the date of the Balance Sheet and that the assets set forth in the Balance Sheet are shown in the aggregate at amounts not exceeding their realisable or market value under the several headings Loans, Investments(except as indicated in this paragraph), Agents balances, Outstanding Premiums, Interest, Dividends and Rents outstanding, Interest, Dividends and Rents accruing but not due, Amounts due from other persons or bodies carrying on insurance business, Sundry Debtors, Bills Receivable Advances and other assets, Cash and the several items specified under Other Accounts. All debt securities held under Shareholder and Non Linked Policyholder investments are considered as held to maturity for the purpose of valuation and are accordingly stated at historical cost i.e. at net amortized cost in the Balance Sheet. As at March 31, 2010 the market value of these investments are lower by `539,266 thousand. The lower market value is attributable to the rise in yields since their purchase. 7. 8. Application of life insurance funds: Your Directors certify that no part of the life insurance fund has been directly or indirectly applied in contravention of the provisions of the Insurance Act, 1938 (4 of 1938) relating to the application and investment of the life insurance funds. Risk exposure: Your Company recognises the risks associated with the life insurance business and plans to manage it by adopting prudent policies commensurate with the needs of the life insurance business. The key risks affecting the operations of the Company are underwriting risks, investment risks and operational risks. The underwriting risk is managed by the Companys underwriting function and further by establishing reinsurance treaties with various reinsurance companies. All risks above the pre-determined retention limits are reinsured. The investment risk is managed by creating a portfolio of different asset classes and of varied maturities so as to spread the risk across a wide category of investee companies. Your Company has constituted an Investment Committee of the Board of Directors, which acts as the policy making body for the investment operations. The Investment Committee lays down various internal policies and norms governing the functioning of the Investment Department. The investment strategy framed is kept appropriate to the underlying liabilities of the policyholders. The Investment Committee periodically discusses the investment strategy, portfolio structures, performance of the portfolio and other issues relating to the investment portfolio. This is then approved by the Board of Directors. The Investment Committee has in turn constituted the Asset & Liability Management Committee (ALM) and Credit Committee. The Asset & Liability Management Committee (ALM) reviews the Asset Liability Management Strategy, Investment Risk Management Strategy and other related risks periodically. The Credit Committee approves the credit limit for each Investee Company and approves the initial investment in any company. The committee also does a periodical review of the existing exposure of debt investments in other companies. The company has established a Risk Management Framework to manage, control and mitigate operational risks. Each function is required to ensure that all processes are documented, process risks are identified and that steps are taken to mitigate identified operational risks. An independent risk management function, in turn, reviews the risks identified, the effectiveness of the operational controls and ensures that risk mitigation steps suggested are implemented. Operational risks are also mitigated by audits conducted by an independent internal audit team. The Risk Committee meets at periodic intervals and lays down and reviews various internal policies and norms governing the risk function across the company. The Committee also reviews the top risks, mitigations implemented and progress made by the Risk Management Function. 9. Operations in other countries: Your Directors confirm that during the year ended March 31, 2011, your Company had no operations in other countries. (` in lakhs) ` Traditional Business Number of Claims 30 days 30 days to 6 months 6 months to 1 year 1 year to 5 years 5 years and above Total 351 637.85 5022 4188.13 Ageing of claims has been done from the date of receipt of all claim requirements from the claimant. Its grt 2b 25 351 Amount Involved 637.85 Linked Business Number of Claims 5022 Amount Involved 4188.13 Period
10. Ageing of claims: Claims registered and not settled
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Statement of Age wise analysis of the Unclaimed Amount of Policyholders in accordance with IRDA circular no- IRDA/F&I/CIR/CMP/174/11/ 2010 dated 04-11-2010 has been disclosed under Note 16 -28 of the audited Financial Statements for the year ended 31st March 2011. 11. Valuation of investments: For the Shareholders and non-linked policyholders investments your company considers its debt securities as held to maturity and measures them at amortised cost. Accretion of discount and amortisation of premium relating to debt securities is recognized over the maturity period on a straight line basis. Listed equity shares as at Balance Sheet date are stated at fair value being the lower of last quoted closing price on Bombay Stock Exchange Limited (BSE) and the National Stock Exchange Limited (NSE). Equity shares awaiting listing are stated at historical cost subject to provision for diminution, if any. Unrealized gains/ losses arising due to changes in the fair value of listed equity shares are taken to Fair Value Change Account and carried forward to Balance Sheet where the net balance is positive. Negative balance in the Fair Value Change Account is recognized in the Revenue Account\Profit and Loss Account to the extent of negative balance in Fair Value Change Account as reduced by the amount previously provided in the Revenue Account\Profit and Loss Account. All the shares in the Companys portfolio are quoted. In respect of the unit-linked business, all securities are valued on a Mark to Market basis. The discount on purchase of treasury bills, certificate of deposit and commercial papers are amortized over the period to maturity on a straight line basis. Floating rate instruments are valued at cost. 12. Review of asset quality and performance of investment: Your directors confirm that all the investments are performing investments. Your Company has investments in debt securities issued by the Government of India, State Governments, public financial institutions, selected banks and public and private sector undertakings with AA and above rating / guaranteed by the Government. Shares quoted on Indian Stock Exchanges are also a part of your Companys investment portfolio.. 13. Responsibility Statement: Your Directors state that: (a) (b) In the preparation of financial statements, the applicable accounting standards, principles and policies have been followed; The accounting policies have been adopted and applied consistently and the judgements and estimates made 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 year and of the deficit under Revenue Account and of the profit in the Profit and Loss Account for the year ended March 31, 2011; Proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the applicable provisions of the Insurance Act 1938 (4 of 1938) / Companies Act, 1956 (1 of 1956), for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities; The financial statements are prepared on a going concern basis; An internal audit system commensurate with the size and nature of the business exists and is operating effectively.
(c)
(d) (e)
14. Schedule of payments made to individuals, firms, companies and organizations in which the Directors are interested: Your Company has made the following payments to individuals, firms, companies and organizations in which the Directors are interested: Sl. No. Name of the Director/s Entity in which Director is interested Interested as Expense amount of payment during the financial year ( ` in lakhs) 3980.16 409.43 31.13 3.86 1.82 0.51 0.16 4427.07
1 2 3 4 5 6 7
Uday Kotak, Dipak Gupta Uday Kotak Uday Kotak, Dipak Gupta SS Thakur Vineet Nayyar SS Thakur Uday Kotak, Gaurang Shah Total
Kotak Mahindra Bank Ltd. Kotak Securities Ltd. Kotak Mahindra Prime Ltd. Kamat Hotels India Ltd. The Mahindra Holiday & Resorts India Ltd. Central Depository Services (I) Ltd. Kotak Mahindra Asset Management Company Ltd.
Director Director Director Director Director Director Director
Kotak Mahindra Old Mutual Life Insurance Limited Uday Kotak Chairman Place: Mumbai, Dated: 29th April 2011 Pankaj Desai Managing Director
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Reports
Auditors Report
To the Members of Kotak Mahindra Old Mutual Life Insurance Limited 1. We have audited the attached Balance Sheet of Kotak Mahindra Old Mutual Life Insurance Limited (the Company) as at March 31, 2011, the related Revenue Account, the Profit and Loss Account and the Receipts and Payments Account for the year ended on that date annexed thereto, which we have signed under reference to this report. These financial statements are the responsibility of the management of the Company. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in India. These standards require that we plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statement. An audit also includes assessing the accounting principles used significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. The Balance Sheet, the Revenue Account, the Profit and Loss account and the Receipts and Payments Account have been drawn up in accordance with the Insurance Act, 1938 (Act 4 of 1938), Insurance Regulatory and Development Act, 1999, Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditors Report of Insurance Companies) Regulations 2002 (the Regulations) read with Section 211 of the Companies Act, 1956. As required by the Regulations, we set out in the Annexure, a statement certifying the matters specified in paragraph 4 of Schedule C to the Regulations. Further to our comments in the Annexure referred to above, we report that: (a) (b) (c) (d) (e) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of the audit and have found them to be satisfactory; In our opinion and to the best of our information and according to the explanations given to us, proper books of account as required by law have been maintained by the Company, so far as appears from our examination of those books; As the Companys financial accounting system is centralized, no returns for the purpose of our audit are prepared at the branches of the Company; The Balance Sheet, the Revenue Account, the Profit and Loss Account and the Receipts and Payments Account referred to in this report are in agreement with the books of account; The actuarial valuation of policyholders liabilities is the responsibility of the Companys Appointed Actuary (the Appointed Actuary). The actuarial valuation of these liabilities as at March 31, 2011 has been duly certified by the Appointed Actuary and in his opinion, the assumptions for such valuation are accordance with the guidelines and norms issued by the Insurance Regulatory Development Authority (IRDA) and the Institute of Actuaries of India in concurrence with IRDA. We have relied upon Appointed Actuarys certificate in this regard for forming our opinion on the financial statements of the Company; On the basis of written representations received from the Directors of the Company, as on March 31, 2011 and taken on record by the Board of Directors, none of the Directors is disqualified as on March 31, 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956.
2.
3.
4. 5.
(f)
6.
In our opinion and to the best of our informationand according to the explanations given to us, we further report that: (a) (b) (c) The investments have been valued in accordance with the provisions of the Insurance Act, 1938, the Regulations and / or orders / directions issued by IRDA in this behalf; The accounting policies selected by the Company are appropriate and are in compliance with the applicable accounting standards and with the accounting principles as prescribed in the Regulations and orders / directions issued by IRDA in this behalf. The Balance Sheet, the Revenue Account, the Profit and Loss Account and the Receipts and Payments Account referred to in this report are in compliance with the applicable accounting standards referred to under sub-section(3C) of Section 211 of the Companies Act, 1956; and The Balance Sheet, the Revenue Account, the Profit and Loss Account and the Receipts and Payments Accounts together with the notes thereon and attached thereto are prepared in accordance with the requirement of the Regulations, the Insurance Act, 1938, the Insurance Regulatory and Development Authority Act, 1999 and the Companies Act, 1956, to the extent applicable and in the manner so required and give a true and fair view in conformity with applicable accounting principles generally accepted in India as applicable to Insurance companies:
(d)
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17
i. ii. iii. iv. 7.
in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2011; in the case of Revenue Account, of the surplus for the year ended on that date; in the case of Profit and Loss Account, of the profit for the year ended on that date; and in the case of the Receipts and Payments Account, of the receipts and payments for the year ended on that date.
Further, on the basis of our examination of books and records of the Company and according to the information and explanations given to us, we certify to the best of our knowledge and belief that: (a) (b) We have reviewed the Management Report attached to the financial statements for the year ended March 31, 2011 and there is no apparent mistake or material inconsistencies with the financial statements; and Based on information and explanations received during the normal course of our audit, managements representations made to us and the compliance certificate submitted to the Board by the officers of the Company charged with compliance and the same being noted by the Board, nothing has come to our attention which causes us to believe that the Company has not complied with the terms and conditions of registration as per sub-section 4 of section 3 of the Insurance Act, 1938.
For S. R. Batliboi & Co. Firm Registration No.301003E Chartered Accountants Per Shrawan Jalan Partner Membership No.102102 Place: Mumbai Dated: 29th April 2011
For M. P. Chitale & Co. Firm Registration No.101851W Chartered Accountants Murtuza Vajihi Partner Membership No.112555 Place: Mumbai Dated: 29th April 2011
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(Referred to in the Auditors Report to the members of Kotak Mahindra Old Mutual Life Insurance Limited (the Company) on the accounts for the year ended March 31, 2011) Auditors Certificate To the Members of Kotak Mahindra Old Mutual Life Insurance limited Based on the information and explanation given to us and to the best of your knowledge and belief, we certify that: 1. We have verified the cash balances, to the extent considered necessary, and securities relating to the Companys investments as march 31 2011, by actual inspection or on the basis of certificates / confirmations received from the custodian and / or Depository Participant appointed by the Company, as the case may be. As at march 31, 2011, the Company does not have reversions and life interests; The Company is not a trustee on any trust; and No part of the assets of the Policyholders Funds has been directly or indirectly applied in contravention to the provisions of the Insurance Act, 1938, relating to the application and investments of the Policyholders Funds.
2. 3.
This certificate is issued to comply with Schedule C of the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditors Report of Insurance Companies) Regulations 2002, (the Accounting Regulations) read with Regulation 3 of the Accounting Regulations and may not be suitable for any other purpose.
For S. R. Batliboi & Co. Firm Registration No.301003E Chartered Accountants Per Shrawan Jalan Partner Membership No.102102 Place: Mumbai Dated: 29th April 2011
For M. P. Chitale & Co. Firm Registration No.101851W Chartered Accountants Murtuza Vajihi Partner Membership No.112555 Place: Mumbai Dated: 29th April 2011
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FORM A-RA REVENUE ACCOUNT FOR THE YEAR ENDED MARCH 31, 2011 Policyholders Account (Technical Account) (Amounts in thousands of Indian `) Particulars Premiums earned - net (a) (b) (c) Premium Re-insurance ceded Re-insurance accepted 1 29,755,081 (345,451) 28,680,489 (181,963) Schedule Year ended March 31, 2011 Year ended March 31, 2010
Income from investments (a) (b) (c) (d) Interest, Dividends and Rent Gross- Net of accretion/amortization of Discount/Premium (Refer Schedule 16 - Note 15(d) ) Profit on sale/ redemption of investments (Loss on sale/ redemption of investments) Transfer/ Gain on revaluation/change in fair value 3,693,283 4,848,094 (1,729,485) (275,156) 2,600,612 3,581,464 (865,137) 5,222,304
Other Income (a) (b) (c) Contribution from Shareholders Account (Refer Schedule 16 - Note 11) Miscellaneous income Profit/(Loss) on sale/disposal of fixed assets (Net) 88,235 44,446 (2,955) 36,076,092 2 3 1,301,669 5,800,575 7,102,244 4 10,361,522 176,960 28,267 693 39,243,689 1,679,165 5,738,369 (71,688) 7,345,846 4,966,829
TOTAL (A) Commission Operating Expenses related to Insurance Business Provision for doubtful debts Bad debts written off Provision for tax (Fringe Benefit Tax) Provisions (other than taxation) (a) (b) For diminution in the value of investments (Net) Others
TOTAL (B) Benefits paid (net) Interim Bonuses paid Change in valuation of liability in respect of life policies, (a) (b) (c) Gross Amount ceded in Reinsurance Amount accepted in Reinsurance
2,334,675 15,410,771 28,106,968 866,880
2,165,947 23,075,443 30,208,219 1,689,624
Provision for Linked Liabilities TOTAL (C) SURPLUS/(DEFICIT) (D)=(A)-(B)-(C)
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Financial Statements Revenue Account
Reports
Particulars APPROPRIATIONS Transfer to Shareholders Account (Refer Schedule 16 - Note 10) Transfer to Other Reserve Balance being Funds for Future Appropriations Surplus/(Deficit) after Appropriation TOTAL (D) SURPLUS/(DEFICIT) BROUGHT FORWARD Surplus/(Deficit) after Appropriation SURPLUS/(DEFICIT) CARRIED FORWARD TO BALANCE SHEET (a) (b) (c) Interim Bonuses Paid Allocation of Bonus to Policyholders Surplus/(Deficit) shown in the Revenue Account
Schedule
Year ended March 31, 2011
895,051 (17,558) (10,613) 866,880 52,833 (10,613) 42,220 261,577 (10,613) 250,964
708,478 966,294 14,852 1,689,624 37,981 14,852 52,833 197,236 14,852 212,088
Total Surplus: [(a) + (b) + (c)] The Schedules and accompanying notes are an integral part of this Revenue Account.
As required by Section 40-B (4) of the Insurance Act, 1938, we certify that all expenses of Management in respect of life insurance business transacted in India by the Insurer have been fully recognized in this Revenue Account.
As per our report of even date attached For M. P. Chitale & Co. Chartered Accountants For S. R. Batliboi & Co. Chartered Accountants Firm Registration No.:301003E Shrawan Jalan Partner Membership No-102102
For and on behalf of the Board of Directors Uday Kotak Chairman Shailesh Devchand Vice-Chairman Gaurang Shah Director
Murtuza Vajihi Partner
Pankaj Desai Managing Director
Andrew Cartwright Appointed Actuary
Place: Mumbai Dated: 29th April 2011 Its grt 2b 25
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FORM A-PL PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2011 Shareholders Account (Non-technical Account) (Amounts in thousands of Indian `) Particulars Amounts transferred from Policyholders Account (Technical Account) (Refer Schedule 16 - Note 10) Income from Investments (a) Interest, Dividends and Rent Gross- Net of amortisation (Refer Schedule 16 - Note 15(d) ) (b) Profit on sale/ redemption of investments (c) (Loss on sale/ redemption of investments) Other Income TOTAL (A) Expenses other than those directly related to the insurance business Bad debts written off Provisions (other than taxation) (a) For diminution in the value of investments (Net) (b) Provision for doubtful debts (c) Others Contribution to the Policyholders Fund (Refer Schedule 16 - Note 11) TOTAL (B) Profit before tax Provision for taxation Current Year Earlier Year Profit after tax 1,024,745 692,246 88,235 96,495 1,024,745 176,960 220,498 692,246 Schedule Year ended March 31, 2011 895,051 Year ended March 31, 2010 708,478
218,632 7,619 (62) 1,121,240 8,260
176,108 28,171 (13) 912,744 43,538
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Particulars Appropriations (a) Balance at the beginning of the year (b) Interim dividends paid during the year (c) Proposed final dividend (d) Tax on dividend distributed (e) Transfer to reserves/ other accounts Loss carried to the Balance Sheet Earnings Per Share (Basic and Diluted) (in ` ) (Refer Schedule 16 - Note 21)
Schedule
(2,551,175) (1,526,430) 2.01
(3,243,421) (2,551,175) 1.36
The Schedules and accompanying notes are an integral part of this Profit and Loss Account.
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FORM A-BS BALANCE SHEET AS AT MARCH 31, 2011 (Amounts in thousands of Indian `) Particulars SOURCES OF FUNDS Shareholders Funds: Share Capital Reserves and Surplus Credit/[Debit] Fair Value Change Account Sub-Total Borrowings Policyholders Funds: Credit/[Debit] Fair Value Change Account Policy Liabilities (Refer Schedule 16 - Note- 4) Participating Non-participating Annuities Participating Annuities Unit-Linked Non-Participating Unit-Linked Non-Participating 6,542,365 1,923,516 520,136 91,307 2,494,138 5,354,202 1,094,841 422,748 66,037 2,298,959 61,313 49,810 7 5 6 5,102,902 520,363 5,623,265 5,102,902 520,363 5,623,265 Schedule As at March 31, 2011 As at March 31, 2010
Insurance Reserves (Refer Schedule 16 - Note - 18) Participating Non-participating Annuities Participating Annuities Unit-Linked Non-Participating Unit-Linked Non-Participating Sub-Total Provision for Linked Liabilities Linked Liabilities Fair Value Change Sub-Total Sub-Total Funds for Discontinued policies (Refer Schedule 16 - Note-29) Discontinued on account of non-payment of premium Others Funds for Future Appropriation:-Linked Liabilities Others Total 9 2,037,320 1,009 87,162,768 2,055,916 1,009 69,422,192 64,075,455 3,750,715 67,826,170 79,501,165 48,376,701 4,025,871 52,402,572 61,742,002 2,926 39,294 42,220 14,110 38,723 52,833
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Financial Statements Balance Sheet & P&L A/c
Reports
Particulars APPLICATION OF FUNDS Investments Shareholders Policyholders Assets Held to Cover Linked Liabilities Loans Fixed Assets Current Assets Cash and Bank Balances Advances and Other Assets Sub-Total (A) Current Liabilities Provisions Sub-Total (B) Net Current Assets (C) = (A-B) Miscellaneous Expenditure (To the extent not written off or adjusted) Debit Balance in Profit and Loss Account (Shareholders Account) (Refer Schedule 16 - Note 2(q) & 31)
Schedule
As at March 31, 2011
8 8A 8B 9 10
3,222,635 12,836,740 69,863,499 57,742 438,489
2,491,819 10,147,431 54,458,488 52,194 559,925
11 12
1,047,305 992,314 2,039,619
912,970 1,062,771 1,975,741 2,643,208 171,373 2,814,581 (838,840) 2,551,175 69,422,192
13 14
2,631,782 190,604 2,822,386 (782,767)
15
1,526,430 87,162,768
The Schedules and accompanying notes are an integral part of this Balance Sheet.
16
25
STATEMENT OF RECEIPTS AND PAYMENTS AS ON MARCH 31, 2011 (Currency: In thousands of Indian `) Particulars Cash Flows from Operating Activities Premium and Other receipt from Customer Payments of other operating expenses Payments of commission and brokerage Advances/ Loans / Deposits placed Reinsurance premium (net of claims and commission) Claims paid (net of reinsurance) Income-tax paid Fringe benefit tax paid Service Tax paid Net cash from/ (deployed in) Operating Activities (A) Cash Flows from Investing Activities Purchase of fixed assets Interest and Dividend received on Investments (net of interest expended on purchase of investments) Purchase of Investment Sale of Investment Investments in money market instruments and in liquid mutual funds (Net) Proceeds on sale of fixed assets Loan against policies Net cash deployed in Investing Activities (B) (161,666) (241,860) 29,654,447 (5,081,615) (1,410,588) 30,647 7,917 (10,356,027) (176) 19,965 (291,278) 12,573,292 28,798,145 (5,438,181) (1,705,673) 16,416 (137,077) (5,173,950) (8,522) (232,212) 16,118,946 Year ended March 31, 2011 Year ended March 31, 2010
3,558,603 (198,730,526) 180,860,202 2,033,153 6,825 (5,548) (12,438,957)
2,511,826 (123,074,377) 106,745,220 (2,436,786) 1,225 6,057 (16,488,695)
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Particulars Cash Flows from Financing Activities Proceeds from issue of Share Capital Net cash from Financing Activities (C) Net increase in Cash and Cash Equivalents (A+B+C) Cash and cash equivalent at the beginning of the year Cash and Cash Equivalents at end of year Notes: Cash and cash equivalents at the end of the year includes: Cash (including cheques on hand, drafts and stamps) Bank Balances (including deposits)
134,335 912,970 1,047,305
(369,749) 1,282,719 912,970
548,691 498,614 1,047,305
398,058 514,912 912,970
The above Statement of Receipts and Payments has been prepared as prescribed by Insurance Regulatory (Preparation of Financial Statements & Auditors Report of Insurance Companies) Regulations, 2002 under the Direct Method laid out in Accounting Standard 3 Cash Flow Statements issued by the Institute of Chartered Accountants of India.
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Schedules Forming Part of the Financial Statements

(Amounts in thousands of Indian `) Schedule 1 Premium Particulars First year Premium Renewal Premium Single Premium Total Premium Notes: (a) (b) All the premium income relates to business in India Refer Schedule 16- Note 2(a) Year ended March 31, 2011 8,569,754 17,223,709 3,961,618 29,755,081 Year ended March 31, 2010 10,837,656 15,340,654 2,502,179 28,680,489
Schedule 2 Commission Particulars Commission Paid First year Premium Renewal Premium Single Premium Sub-total Add: Commission on Re-insurance accepted Less: Commission on Re-insurance ceded Net Commission Breakup of Gross Commission Agents Brokers Corporate Agents Referral Total Note : (a) Refer Schedule 16 - Note 2(b) 640,028 270,363 400,684 3,176 1,314,251 819,590 345,063 559,922 15,634 1,740,209 961,744 303,487 49,020 1,314,251 (12,582) 1,301,669 1,449,549 257,769 32,891 1,740,209 (61,044) 1,679,165 Year ended March 31, 2011 Year ended March 31, 2010
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Schedules Forming Part of the Financial Statements (Contd.)

Schedule 3 Operating Expenses Related to Insurance Business Particulars Employees remuneration and welfare benefits [Refer Note-(b) below] Travel, conveyance and vehicle running expenses Training expenses Rent, Rates and Taxes Repairs Printing and Stationery Communication expenses Legal and Professional charges Medical fees Auditors fees, expenses etc. (a) (b) (c) as auditor as adviser or in any other capacity , in respect of Taxation matters Insurance Matters Management services; and in any other capacity (including out of pocket expenses)
(Amounts in thousands of Indian `)
Year ended March 31, 2011 2,659,907 120,599 17,810 339,689 101,527 50,612 125,362 100,078 49,985
Year ended March 31, 2010 2,621,660 140,758 13,663 314,853 87,896 59,237 120,677 81,861 23,918
3,231
2,369
133 485,047 638,979 102,920 40,549 273,139 110,681 78,360 31,713 496 84,476 3,507
432 488,254 629,630 197,020 38,050 250,291 90,890 78,178 45,754 77 61,271 3,200
Advertisement and publicity Distribution Expenses Sales Promotion Expenses Interest and Bank charges Depreciation Information Technology expenses Electricity charges Recruitment expenses Brokerage Stamp Duty Membership and Subscription Fees Preliminary and Share issue Expenses Service Tax Expenditure Other expenses Total Notes: a) b) Refer Schedule 16 -Note 2(h) , Note 6 & Note 22. Refer Schedule 16 - Note 2 (k) and Note 24
314,244 67,531 5,800,575
336,307 52,123 5,738,369
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Schedule 4 Benefits Paid (Net) Particulars 1. Insurance Claims (a) (b) (c) (d) Claims by Death Claims by Maturity Annuities/ Pension payment Other Benefits Sub Total (A) 2. Amount ceded in reinsurance (a) (b) (c) (d) Claims by Death Claims by Maturity Annuities/ Pension payment Other Benefits Sub Total (B) 3. Amount accepted in reinsurance (a) (b) (c) (d) Claims by Death Claims by Maturity Annuities/ Pension payment Other Benefits Survival Benefits Surrenders Riders Others Survival Benefits Surrenders Riders Others Survival Benefits Surrenders Riders Claim Investigation Fees Others (Refer note (c) below)
1,115,443 802,893
982,294 235,470
44,563 8,592,399 7,513 1,355 16,481 10,580,647
72,060 4,015,196 6,032 3,787 12,500 5,327,339
(218,725) (400)
(359,655) (855)
(219,125)
(360,510)
Sub Total (C) Total (A)+(B)+(C) Notes : (a) (b) (c) (d) Refer Schedule 16- Note 2(e) All the claims are paid in India. Includes provision for policy related claims. Refer Schedule 16 - Note 30 for regrouping of previous year figures.
10,361,522
4,966,829
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Schedule 5 Share Capital Particulars Authorized Capital 625,000,000 (2010 625,000,000) Equity Shares of ` 10 each Issued Capital 510,290,249 (2010 510,290,249) Equity Shares of ` 10 each Subscribed Capital 510,290,249 (2010 510,290,249) Equity Shares of ` 10 each Called-up Capital 510,290,249 (2010 510,290,249) Equity Shares of ` 10 each Less: Calls unpaid Add: Shares forfeited (Amount originally paid up) Less: Par Value of Equity Shares bought back Less: Preliminary Expenses Less: Expenses on issue of shares Total Notes:
As at March 31, 2011 6,250,000 5,102,902 5,102,902 5,102,902 5,102,902
At at March 31, 2010 6,250,000 5,102,902 5,102,902 5,102,902 5,102,902
(a) Of the above, 260,248,044 (2010 260,248,044) Equity Shares of ` 10 each fully paid up are held by Kotak Mahindra Bank Limited, the holding company and its nominees, 54,000,000 (2010-54,000,000) and 63,366,753 (2010-63,366,753) fully paid-up Equity Shares of ` 10 each are held by Kotak Mahindra Prime Limited and Kotak Mahindra Capital Company Limited respectively, which are subsidiaries of Kotak Mahindra Bank Limited. Schedule 5A Pattern of Shareholding (As certified by the Management) As at March 31, 2011 Particulars Shareholders Promoters Indian Foreign 377,614,797 132,675,452 510,290,249 74% 26% 100% 377,614,797 132,675,452 510,290,249 74% 26% 100% Number of Shares % Holding As at March 31, 2010 Number of Shares % Holding
Others Total
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Schedule 6 Reserves and Surplus Particulars Capital Reserve Capital Redemption Reserve Securities Premium Revaluation Reserve General Reserves Less: Debit balance in Profit and Loss Account Less: Amount utilized for Buy-back Catastrophe Reserve Other Reserve Balance of profit in Profit and Loss Account Total
As at March 31, 2011 520,363 520,363
As at March 31, 2010 520,363 520,363
Schedule 7 Borrowings Particulars Debentures/ Bonds Banks Financial Institutions Others Total As at March 31, 2011 As at March 31, 2010
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Schedule 8 Investments-Shareholders Particulars LONG TERM INVESTMENTS Government securities and Government guaranteed bonds including Treasury Bills (Refer note (b) below) Other Approved Securities Other Investments (a) Shares (aa) Equity (bb) Preference (b) (c) (d) (e) (f) (g) Mutual Funds Derivative Instruments Debentures/ Bonds Other Securities (including Fixed Deposits) Subsidiaries Investment Properties Real Estate
1,538,967 385,166
1,370,022 366,797
167,816 46,500
97,428 10,217
Investment in Housing & infrastructure sector (a) (b) Equity Others 747,737 473,381
Other than Approved Investments (a) (b) Equity Others 2,886,186 2,317,845
Total SHORT TERM INVESTMENTS Government securities and Government guaranteed bonds including Treasury Bills Other Approved Securities Other Investments (a) Shares (aa) Equity (bb) Preference (b) (c) (d) (e) (f) (g) Mutual Funds Derivative Instruments Debentures/ Bonds Other Securities (including Fixed Deposits) Subsidiaries Investment Properties Real Estate
45,233 16,073
25,267
4,430 107,453 125,181 Its grt 2b 25
12,400 986 81,447
33

Particulars Investment in Housing & infrastructure sector (a) (b) Equity Others
(Amounts in thousands of Indian `) As at March 31, 2011 As at March 31, 2010
38,079
53,874
Other than Approved Investments (a) (b) Equity Others 336,449 3,222,635 173,974 2,491,819
Total Grand Total Notes: (a) (b) (c) Refer Schedule 16 Notes 2(d) Refer Schedule 16 Notes 15(b)
Investment in Fixed Deposit with Kotak Mahindra Bank Ltd as at March 31, 2011 is ` 5305 (2010 ` 5,305). Investments in Kotak Mahindra Mutual Fund as at March 31, 2011 is ` 1876 ( 2010 ` 4,063). Investments in Kotak Mahindra Prime Ltd in CPs as at March 31, 2011 is ` 12,171 (` Nil as at March 31,2010) Particulars of Investment other than Listed Equity Securities As at March 31, 2011 32,22,635 30,98,475 As at March 31, 2010 24,91,819 24,11,168
(d)
Particulars Cost Market Value
Schedule 8A Investments-Policyholders Particulars LONG TERM INVESTMENTS Government securities and Government guaranteed bonds including Treasury Bills Other Approved Securities Other Investments (a) Shares (aa) Equity (bb) Preference (b) (c) (d) (e) (f) (g) Mutual Funds Derivative Instruments Debentures/ Bonds Other Securities (including Fixed Deposits) Subsidiaries Investment Properties Real Estate 543,527 871,581 100,000 346,120 533,369 28,102 5,305,045 1,294,187 4,492,409 1,036,071 As at March 31, 2011 As at March 31, 2010
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Particulars Investment in Housing & infrastructure sector (a) (b) Equity Others
(Amounts in thousands of Indian `) As at March 31, 2011 28,710 2,596,425 As at March 31, 2010
30,565 2,343,078
Other than Approved Investments (a) (b) Equity Others 19,234 10,758,709 14,366 8,824,080
Total SHORT TERM INVESTMENTS Government securities and Government guaranteed bonds including Treasury Bills Other Approved Securities Other Investments (a) Shares (aa) Equity (bb) Preference (b) (c) (d) (e) (f) (g) Mutual Funds Derivative Instruments Debentures/ Bonds Other Securities (including Fixed Deposits) Subsidiaries Investment Properties Real Estate
216,190 5,023
100,216 109,019
19,185 323,768 1,089,423
413,883
104,399 540,954
Investment in Housing & infrastructure sector (a) (b) Equity Others 424,442 54,880
Other than Approved Investments (a) (b) Equity Others 2,078,031 12,836,740 1,323,351 10,147,431
Total Grand Total Notes: (a) (b) Refer Schedule 16 Notes 2(d)
Investment in Fixed Deposit with Kotak Mahindra Bank Ltd as at March 31, 2011 is ` 9,000 (2010 9,000). Investments in Kotak Mahindra Mutual Fund as at March 31, 2011 is ` 8,123 ( 2010 ` 135,617). Investments in Kotak Mahindra Prime Ltd in CPs as at March 31, 2011 is ` 43,816 (` Nil as at March 31,2010) Particulars of Investment other than Listed Equity Securities As at March 31, 2011 122,45,269 118,30,163 As at March 31, 2010 97,56,380 94,68,223
(c)
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Particulars

Schedule 8B Investments-Unit Linked Particulars LONG TERM INVESTMENTS Government securities and Government guaranteed bonds including Treasury Bills Other Approved Securities Other Investments (a) Shares (aa) Equity (bb) Preference (b) (c) (d) (e) (f) (g) Mutual Funds Derivative Instruments Debentures/ Bonds Other Securities (including Fixed Deposits) Subsidiaries Investment Properties Real Estate
5,063,849 2,130,964
3,007,011 1,408,882
30,441,267 8,626,484 1,753,500
21,582,144 4,712,547 61,781
Investment in Housing & infrastructure sector (a) (b) Equity Others 961,315 8,813,194 1,973,704 8,673,854
Other than Approved Investments (a) (b) Equity Others 2,195,189 59,985,762 1,628,784 43,048,707
Total
SHORT TERM INVESTMENTS Government securities and Government guaranteed bonds including Treasury Bills Other Approved Securities Other Investments (a) Shares (aa) Equity (bb) Preference (b) (c) (d) (e) (f) (g) Mutual Funds Derivative Instruments Debentures/ Bonds Other Securities (including Fixed Deposits) Subsidiaries Investment Properties Real Estate Kotak Mahindra Old Mutual Life Insurance Limited Annual Report 2010-11 Reg. No. : 107, Date of Registration January 10, 2001 472,385 1,051,957 4,117,070 942,122 6,669,070 335,177 546,632 12,537 64,309 1,380,187
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Particulars Investments in Infrastructure and Social Sector (a) (b) Equity Shares Others
1,253,186
530,516
Other than Approved Investments (a) (b) Equity Shares Others 2,423,970 9,877,737 69,863,499 62,540 1,425,859 11,409,781 54,458,488
Net Current Assets Total Grand Total Notes: (a) (b) Refer Schedule 16 Notes 2(d)
Investment in Fixed Deposit with Kotak Mahindra Bank Ltd as at March 31, 2011 is ` 35,695 (2010 - ` 35,695). Investment in bonds of Kotak Mahindra Prime Ltd as at March 31, 2011 is ` Nil (2010 ` 451,039) . Investment in Kotak Mahindra Mutual Fund as at March 31, 2011 ` 200,002 (2010 - ` 130,320) Particulars of Investment other than Listed Equity Securities As at March 31, 2011 341,17,720 338,41,757 As at March 31, 2010 27,872,693 27,847,996
(c)
Schedule 9 Loans Particulars SECURITYWISE CLASSIFICATION As at March 31, 2011 As at March 31, 2010
Secured
(a) On mortgage of property (aa) In India (bb) Outside India (b) (c) (d) On Shares, Bonds, Govt. Securities etc. Loans against policies Others 57,742 57,742 52,194 52,194
Unsecured
Total BORROWER-WISE CLASSIFICATION (a) (b) (c) (d) (e) (f) Central and State Governments Banks and Financial Institutions Subsidiaries Companies Loans against policies Others Employees
57,742 57,742 Its grt 2b 25
52,194 52,194
Total
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Particulars PERFORMANCE-WISE CLASSIFICATION (a) Loans classified as standard
(aa) In India (bb) Outside India (b) Non-standard loans less provisions
57,742
52,194
(aa) In India (bb) Outside India Total MATURITY-WISE CLASSIFICATION (a) (b) Short term Long Term
57,742
52,194
407 57,335 57,742
72 52,122 52,194
Total Commitments made and outstanding for Loans ` Nil ( 2010- ` Nil) Notes: (a) (b) Refer Schedule 16 Note 2(f) There was no restructuring of loan assets during the year.
Schedule 10 Fixed Assets Cost/Gross Block Description As at 1st April, 2010 541,279 391,129 352,825 34,327 138,478 1,458,038 Capital Work-in-progress Grand Total Previous Year * Includes licenses ** Includes leasehold improvements Note: (a) Refer Schedule 16 Notes 2(g) 1,458,038 1,257,472 186,618 209,631 74,168 9,065 1,570,488 1,458,038 Additions On Sale/ Adjustment 17,213 37,156 12,374 7,425 74,168 As at 31st March, 2011 673,600 382,706 343,525 30,346 140,311 1,570,488
(Amounts in thousands of Indian `) Depreciation As on 1st April, 2010 339,112 230,288 287,198 20,905 81,326 958,829 958,829 716,993 For the year 134,865 46,439 61,688 8,370 21,957 273,319 273,319 250,370 On Sale/ Adjustment 10,088 36,875 11,082 6,343 64,388 64,388 8,534 As at 31st March, 2011 473,977 266,639 312,011 18,193 96,940 1,167,760 1,167,760 958,829 Net Block As at 31st March, 2011 199,623 116,067 31,514 12,153 43,371 402,728 35,761 438,489 559,925 As on 31st March, 2010 202,167 160,841 65,627 13,422 57,152 499,209 60,716 559,925
Goodwill Intangibles - Software * LandFreehold Leasehold property Buildings Furniture and fittings ** Information technology equipment Vehicles Office equipment
132,321 8,790 27,856 8,393 9,258 186,618
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Schedule 11 - Cash and Bank Balances Particulars Cash and Bank Balances Cash (including cheques on hand, drafts and stamps) Bank Balances (a) Deposit Accounts (aa) Short-term (due within 12 months of the date of Balance Sheet) (bb) Others (b) (c) Current accounts Others
548,691
398,058
146,674 351,940
514,912
Money at Call and Short Notice (a) (b) With Banks With other Institutions 1,047,305 912,970
Total Balance with non-scheduled banks included above Cash and Bank balance In India Outside India Total Note: a) Refer Schedule 16 - Note 30 for regrouping of previous year figures.
1,047,305 1,047,305
912,970 912,970
Schedule 12 Advances and Other Assets Particulars ADVANCES Reserve deposits with ceding companies Application money for investments Prepayments Advance to Directors/ Officers Advance tax paid and T.D.S (Refer Note (a) below) Advances to suppliers Advances to employees Total (A) 171,706 (4,178) 133,653 53,846 355,027 164,714 15,612 140,514 56,031 376,871 As at March 31, 2011 As at March 31, 2010
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Particulars OTHER ASSETS Income accrued on investments Outstanding Premiums Agents Balances Foreign Agencies Balances Due from other entities carrying on insurance business (including reinsurers) Due from subsidiaries/ holding company Deposits pursuant to Section 7 of Insurance Act, 1938 [Refer Schedule-16 - Note 15 (b)] Security and other deposits Service Tax Unutilised Credit Other Receivables Total (B) Total (A + B) Notes : (a) Advance tax paid and Taxes deducted at source Particulars Provision for Tax Advance Tax and Tax deducted at source
351,722 79,653 12,602 134,373 11,405 47,532 637,287 992,314
250,292 70,873 140,594 134,722 26 89,393 685,900 1,062,771
As at March 31, 2011 (129,645) 125,467 (4,178)
As at March 31, 2010 (80,105) 95,717 15,612
Schedule 13 Current Liabilities Particulars Agents balances Balance due to other insurance companies (Net) Deposits held on re-insurance ceded Premium received in advance Unallocated premium (proposals/policy deposits) Sundry creditors Due to holding company Claims outstanding Unclaimed Amount of Policy Holders (Refer Schedule-16-Note-28) Annuities due Due to Officers / Directors Accrued expenses Taxes deducted at source, payable Statutory dues payable Total Note: a) Refer Schedule 16 - Note 30 for regrouping of previous year figures. As at March 31, 2011 98,969 550,929 52,616 2,371 482,598 94,933 1,307,306 22,720 19,340 2,631,782 As at March 31, 2010 176,724 642,762 126,593 4,234 252,214 100,698 1,285,530 24,920 29,534 2,643,208
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Schedule 14 Provisions Particulars For taxation For proposed dividend For dividend distribution tax Provision for gratuity Provision for leave encashment Others Total
As at March 31, 2011 94,422 96,182 190,604
As at March 31, 2010 72,005 99,368 171,373
Schedule 15 Miscellaneous Expenditure (To the extent not written off or adjusted) Particulars Discount Allowed in issue of shares/ debentures Others Total As at March 31, 2011 As at March 31, 2010
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Schedules forming part of the financial statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) Schedule 16 : Notes to the financial statements 1. Background Kotak Mahindra Old Mutual Life Insurance Limited (`the Company) was incorporated on August 31, 2000 as a Company under the Companies Act, 1956 to undertake and carry on the business of life insurance and annuity. The Company obtained a license from the Insurance Regulatory and Development Authority (`IRDA) dated January 10, 2001 for carrying on the business of life insurance and annuity. The license has been renewed regularly and is in force as at March 31, 2011. 2. Summary of significant accounting policies Basis of Preparation: The financial statements are prepared and presented under the historical cost convention, on accrual basis of accounting, to comply in all material aspects with the applicable accounting standards notified under the Companies (Accounting Standard) Rules, 2006, to the extent applicable, the Companies Act, 1956 of India to the extent applicable, and in accordance with the provisions of the Insurance Act, 1938, the Insurance Regulatory and Development Authority Act, 1999 and the regulations framed there under to the extent applicable and the practices prevailing within the insurance industry in India. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year. Use of Estimates: The preparation of financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as on the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Actual results could differ from these estimates. The significant accounting policies adopted by the Company are as follows: (a) Revenue recognition : Premium Income Premium is recognized as income when due from policyholders except on unit linked policies, where the premium is recognized when associated units are created. In accordance with the terms of insurance policies, uncollected premium on lapsed policies is not recognized as income until revived. Top Up/Lump sum contributions are accounted as a part of single premium. Income from linked policies, which include asset management fees and other charges, if any, are recovered from the linked fund in accordance with the terms and conditions of the policies. Reinsurance premium ceded is accounted as an expense at the time of recognition of the premium income in accordance with the treaty arrangements with the re-insurers. Commission on reinsurance ceded is accounted as income in the period in which reinsurance is ceded . Reinsurance premium and reinsurance commission are recognized over the period of the risk. Income earned on Investments Interest income is recognized on accrual basis. Dividend income is recognized when the right to receive is established. Accretion of discount and amortization of premium relating to debt securities is recognized over the maturity period of such securities on a straight line basis. Gain/ Loss on transfer/ sale of securities is the difference between the transfer/sale price and the net amortized cost/ book value which is computed on a Weighted average basis as on the date of transfer/sale. Sale Consideration for the purpose of realized gain/ loss is net of brokerage and taxes , if any. (b) Acquisition Costs Acquisition costs such as commission and medical fees are costs that vary with and are primarily related to the acquisition of new and renewal insurance contracts. Such costs are recognized in the year in which they are incurred. (c) Liability for Policies i) The Company provides for policy liabilities in respect of all in force policies and lapsed policies that are likely to be revived in future based on actuarial valuation done by the Appointed Actuary in accordance with accepted actuarial practices , requirements of IRDA and the Institute of Actuaries of India. Liabilities in respect of unit-linked policies which have lapsed and are not likely to be revived , are shown as a separate item
ii)
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under the head Funds for Future Appropriation, until expiry of the revival period. This is as per IRDA circular no 041/IRDA/ ACTL/MAR-2006 dated 29th March2006. iii) iv) Liabilities in respect of funds arising from discontinuance policies are shown under a separate head in the balance sheet as Funds for Discontinued policies. This is as per IRDA Notification F.No.IRDA/Reg/2/52/2010, dated 1-7-2010. Linked liabilities comprise of unit liability representing the fund value of policies. The actuarial policies and assumptions are given in the Note 3 . (d) Investments Investments are made in accordance with the Insurance Act, 1938, the Insurance Regulatory and Development Authority (Investment Regulations), 2000 and as amended and circulars/notifications issued by IRDA from time to time . Investments are recorded at cost on trade date which includes brokerage, transfer charges, transaction taxes as applicable, etc but excludes preacquisition interest, if any and service tax where cenvat credit is being claimed. i) Classification Investments maturing within twelve months from the Balance Sheet date and investments made with the specific intention to dispose them off within twelve months from the Balance Sheet date are classified as `Short Term Investments. Investments other than Short Term Investments are classified as `Long Term Investments. The funds of the shareholders and the policyholders are kept separate and records are maintained accordingly. Investments are specifically procured and held for policyholders and shareholders funds independently from their inception and the income thereon is also tracked separately. Since the actual funds, investments and income thereon are tracked and reported separately, the allocation of investments and income is not required. ii) Valuation -Shareholders Investments and non-linked policy-holders Investments Debt Securities All debt securities are considered as `held to maturity for the purpose of valuation and are accordingly recorded at historical cost (excluding interest paid, if any). Debt securities including government securities are stated at net amortized cost. The premium/ discount, if any, on purchase of debt securities is amortized/accrued over the period to maturity on a straight-line basis. Equity Shares Listed equity shares as at Balance Sheet date are stated at fair value being the lower of last quoted closing price on Bombay Stock Exchange Limited (BSE) and the National Stock Exchange Limited (NSE). Equity shares awaiting listing are stated at historical cost subject to provision for diminution, if any. Unrealized gains/ losses arising due to changes in the fair value of listed equity shares are taken to Fair Value Change Account and carried forward to Balance Sheet where the net balance is positive. Negative balance in the Fair Value Change Account is recognized in the Revenue Account\Profit and Loss Account to the extent of negative balance in Fair Value Change Account as reduced by the amount previously provided in the Revenue Account\Profit and Loss Account . The profit or loss on actual sale of listed equity includes the accumulated changes in fair value in the fair value previously recognized under Fair Value Change Account. In case of impairment in the value of investment as at the balance sheet date which is other than temporary, the amount of loss is recognized as an expense in the Revenue\ Profit & Loss Account to the extent of difference between the remeasured fair value of the investment and its acquisition cost as reduced by any previous impairment loss recognized as expense in Revenue/ Profit & Loss Account. Any reversal of impairment loss, earlier recognized in Revenue/ Profit and Loss Account, is recognized in the Revenue/ Profit and Loss account. iii) Valuation - Unit Linked Business Debt Securities All Government securities, except treasury bills, for linked business are valued at prices obtained from Credit Rating Information Service of India Ltd (CRISIL). Debt Securities other than Government Securities are valued on the basis of CRISIL Bond valuer. Floating rate instruments are valued at cost. The discount on purchase of treasury bills, certificate of deposit and commercial papers are amortized over the period to maturity on a straight line basis. Equity Shares Listed equity shares are valued at fair value, being the last quoted closing price on the NSE (In case of securities not listed on NSE, the last quoted closing price on the BSE is used) Equity shares awaiting listing are stated at historical cost subject to provision for diminution, if any, in the value of such investment determined separately for each individual investment. Unrealized gains and losses are recognized in the respective schemes revenue account. Mutual Fund Units are valued at the previous days closing net asset value (NAV) of the fund in which they are invested. Its grt 2b 25
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The Company does not own any investment property and hence there is no disclosure on the basis of revaluation of investment property. iv) Transfer of Investments Transfer of investments from Shareholders fund to the Policyholders fund is at book value or market price, whichever is lower. Transfer of debt securities from Shareholders to Policyholders fund is transacted at the lower of net amortized cost or market value. Transfer of Investments between unit -linked funds are done at market price. (e) Benefits Paid Benefits paid comprise of policy benefit amount, surrenders, claim investigation fees and specific claims settlement costs where applicable and change in the outstanding provision for claims at the year end. Surrender and claims by death are accounted when intimated. Survival benefits are accounted when due. Maturity claims are accounted on the date of maturity. Amounts recoverable from reinsurers are accounted for in the same period as the related claim. Repudiated claims disputed before judicial authorities are provided for based on the best judgment of the management considering the facts and evidence in respect of each such claims. Withdrawals under unitlinked policies are accounted in respective schemes when the associated units are cancelled. (f) Loans Loans are stated at historical cost, subject to provision for impairment, if any. Interest on loan, if any, is accrued when due. Norms laid down under circular No 32/2/F&A/ Circular/169/Jan/2006-07 issued by the IRDA are adhered to in this regard. (g) Fixed Assets and Depreciation Fixed assets are stated at cost including incidental expenses less accumulated depreciation. In respect of liabilities incurred in acquisition of fixed assets in foreign exchange , the net gain or loss arising on conversion / settlement are charged to revenue account. Intangible assets comprising software are stated at cost less amortization. Depreciation/ amortization is provided under the straight-line method( SLM) with reference to the managements assessment of the estimated useful lives of the assets or the rates and in the manner specified by Schedule XIV of the Companies Act , 1956 , whichever is higher. Depreciation is charged on assets from the date the asset is capitalized and up to the date asset is last used in case of disposal. Assets costing individually less than ` 5,000 are depreciated fully in the year of acquisition. Estimated useful lives over which assets are depreciated are as follows: Leasehold improvements Information technology equipment (including software) Furniture and fittings Vehicles Office equipment Impairment of Assets The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/ external factors. Impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. The impairment loss to be expensed is determined as the excess of the carrying amount over the higher of the assets net sales price or present value as determined above. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life. (h) Employee Benefits a. b. Provident fund is a defined contribution plan and the contributions as required by the statute to Government Provident Fund are charged to profit and loss account when due. Gratuity liability is defined benefit and is wholly unfunded. The Company accounts for liability for future gratuity benefits based on actuarial valuation conducted by an independent actuary. The net present value of the Companys obligation towards the same is actuarially determined based on the projected unit credit method as at the Balance Sheet date. Superannuation fund is a defined contribution scheme. The Company contributes a sum equivalent to 15% (previous year 15%), subject to a maximum of `1 lakh, of eligible employees salary to a Superannuation Fund administered by the trustees. The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employee is recognized during the period when the employee renders the service. These benefits include performance incentives. The Company accrues the liability for compensated absences based on the actuarial valuation as at the balance sheet date conducted by an independent actuary. The net present value of the Companys obligation is determined based on the projected unit credit method as at the Balance Sheet date. Actuarial gains/losses are immediately taken to the profit and loss account and are not deferred. Over the period of lease subject to a maximum of 6 years 3 years 6 years 4 years 5 years
c. d.
e.
f.
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(i) Accounting for Operating Leases Leases where the lessor effectively retain substantially all the risks and benefits of ownership over the lease term are classified as operating leases. Operating lease rentals are recognized as an expense in revenue/ profit and loss account on a straight line basis over the lease term. (j) Foreign Currency Transactions Transactions denominated in foreign currency are recorded at the rate of exchange prevailing on the transaction date. Monetary assets and liabilities denominated in foreign currencies at the Balance Sheet date are translated using the rate of exchange prevailing on that date. Exchange differences either on settlement or on translation are recognized in the Revenue Account/ Profit and Loss Account, as applicable. (k) Segment reporting
Business Segments
In accordance with the Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditors Report of Insurance Companies) Regulations, 2002 (referred to as `Accounting Regulations) read with Accounting Standard 17 on `Segment Reporting prescribed in Companies (Accounting Rules) ,2006 , the Companys business in India is classified into Participating business, Non-participating business, Annuities Participating business, Annuities Linked Non-participating business , Unit-Linked Non participating business and Investment of the Shareholders funds.
Segmental revenues
All segment revenues are directly attributed to the respective individual segments. There are no inter-segment revenues.
Segmental expenses
Operating expenses relating to insurance business are assigned to participating, non-participating, annuities and linked business segments as follows: Expenses directly identifiable to the business segments are allocated on an actual basis. Other expenses, which are not directly identifiable, are apportioned to the business segments on the basis of either (a) total number of policies issued during the year, or (b) first year premium income, or (c) renewal premium income, or (d) sum assured during the year, or (e) first year commission, or (f) total number of policies, or (g) renewal commission, or , (h) Average assets under management, or, (i) expenses allowances, as considered appropriate by the Management.With effect from October 1, 2010, certain expenses which are not directly identifiable to the business segments are being apportioned to the business segments on the basis of expense allowance in place of commission, as it is considered that this refinement would result in a more appropriate presentation of the financial statements. This is being adopted to address the revised methodology of charging allowances on unit linked products launched after October 1, 2010.
Segmental assets and liabilities

Segment assets and liabilities include those that are employed by a segment in its operating activity.
Secondary Geographical Segments

There are no reportable geographical segments since all business is written in India and the company does not distinguish any reportable regions in India. (l) Taxation Provision for current income tax, if any, is made on an accrual basis after taking credit for allowances and exemptions in accordance with Income Tax Act, 1961. Deferred income tax is recognized for future tax consequences attributable to timing differences between income as determined by the financial statements and the recognition for tax purposes. The effect on deferred tax assets and liabilities of a change in tax rates is recognized using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future. However, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is virtual certainty backed by convincing evidence that such deferred assets can be realized. Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantially enacted before the balance sheet date. Changes in deferred tax assets / liabilities on account of changes in enacted tax rates are given effect to in the Revenue account/ Profit and Loss Account in the period of the change. The carrying amount of deferred tax assets are reviewed at each balance sheet date. The company writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized.
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(m) Preliminary and Share Issue expenses Share Issue expenses in relation to increase in share capital are written off when incurred. Preliminary Expenses and Initial Share Issue expenses are amortized over a period of 3 years. Unamortized Preliminary Expenses and Share Issue expenses are adjusted in the schedule of Share Capital as prescribed under the IRDA Regulations. (n) Service tax Service tax liability on taxable premium and unit-linked charges are set-off against available cenvat credits. Unutilized credits, if any, are carried forward under Advances and Other Assets for set-off in subsequent periods. (o) Provisions and Contingencies Provision is recognised when there is a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent Liabilities are not recognized but are disclosed in the notes unless the outflow of resources is remote. Contingent assets are neither recognised nor disclosed in the financial statements. (p) Earnings per Share The basic earnings per share is computed by dividing the net profit or loss for the period attributable to the equity shareholders by weighted average number of equity shares outstanding during the reporting year. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares. (q) Debit balance in the Profit & Loss Account (Shareholders Account) The debit balance in the Profit & Loss Account (Shareholders Account) is segregated in to unabsorbed depreciation and accumulated business loss. Profits earned during the year are first set off and adjusted against the accumulated business loss and the balance, if any, is set off against unabsorbed depreciation. (r) Employee stock option scheme Equity-settled scheme : In accordance with SEBI (Employees Stock Option Scheme and Employee Stock Purchase) Guidelines, 1999 and the guidance note on Accounting for Employee Share-based Payments issued by the Institute of Chartered Accountants of India, the excess, if any, of the market price of share preceding the date of grant of the option under ESOPs over the exercise price of option is amortised on a straight-line basis over the vesting period. Cash Settled scheme : The cost of cash-settled transactions (stock appreciation rights) is measured initially using intrinsic value method at the grant date taking into account the terms and conditions upon which the instruments were granted. This intrinsic value is amortised on a straightline basis over the vesting period with a recognition of corresponding liability. This liability is remeasured at each balance sheet date up to and including the settlement date with changes in intrinsic value recognised in the Revenue/Profit and loss account in `Payments to and provision for employees. 3. Actuarial method and assumptions The actuarial liabilities have been calculated in accordance with generally accepted actuarial principles, the requirements of the Insurance Act 1938, IRDA regulations and the prescribed guidance notes of the Institute of Actuaries of India. The method adopted is as follows: Unit Linked Policies : A unit reserve equal to the value of the units on 31 March 2011 plus a non -unit reserve calculated on gross premium prospective valuation method. Par policies (accumulation contracts) : The value of the accumulated fund plus a non-unit reserve calculated on gross premium prospective valuation method. Non-par conventional business: Gross premium prospective method. Additional Reserve on lapsed unit -linked policies is created and shown under the head Funds for Future Appropriation as required by IRDA circular no 041/IRDA/ACTL/MAR-2006 dated 29th March2006.
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The assumptions used in the Gross Premium valuation are based on best estimates together with appropriate margins for adverse deviations from experience. The principal assumptions are interest, inflation, return to policyholders account, lapses, expenses, mortality and morbidity. The base assumptions are: Interest Inflation Policyholders returns Lapses Expenses Mortality Morbidity (for Critical Illness) Morbidity (other riders) 5.7% p.a. to 6.7% p.a. during the first five years , 4.9% p.a. to 5.9% p.a. thereafter (2010 : 5.7% p.a. to 6.7% p.a. during the first five years , 4.9% p.a. to 5.9% p.a. thereafter) 6.5% (2010 : 6.5%) Rates consistent with the earning rates and charges Future policy lapses have been assumed based on the type of policy and the duration for which the policy has been in force Conservative expenses levels consistent with recent experience Based on LIC 94-96 mortality table adjusted for AIDS Based on adjusted CIBT rates. Based on reinsurers rates
Reserves for group life business are calculated as the risk premium for the unexpired term with an allowance for expenses and a margin for adverse deviations. 4. Policy liabilities (Forming part of Policyholders Funds)
Particulars Par At start of the year Add: Change in valuation against policies in force (Refer Note 3 above) Add: Bonus to policyholders (Refer Note 10 below)* At end of the year 5,354,202 Non-Par 1,094,841 2011 Annuities 422,748 Annuities Unit 66,037 UnitLinked 2,298,959 Total 9,236,787 Par 4,596,018 Non-Par 709,480 2010 Annuities 360,032 Annuities Unit Unit-Linked 44,181 Total
1,361,127 7,070,838
947,033
828,675
76,941
25,270
195,179
2,073,098
578,357
385,361
45,306
21,856
937,832 1,968,712
241,130 6,542,365
1,923,516
20,447 520,136
91,307
261,577
179,827 5,354,202
1,094,841
17,410 422,748
66,037
197,237
2,494,138 11,571,462
2,298,959 9,236,787
* Forms part of Change in Valuation of Liability in respect of life policies-Gross in the Revenue Account The Insurance Regulatory and Development Authority has issued a circular to all life insurance companies clarifying the manner of accounting the difference arising due to valuation of unit linked liabilities on the appropriation/ex-appropriation price and the value of the underlying assets. Consequently, reserving for unit linked liabilities has been done based on the appropriation/ex-appropriation price resulting in an increase of the unit linked liabilities of ` 120,578 (Previous year ` 108,778). Based on the circular of IRDA, the company has created a current asset of the equivalent amount which is reflected under the Net Current Assets under Schedule 8B. Consequently, there is no impact of such change on the revenue account. Note: The Policyholder Liabilities are adequately backed by Policyholder Investments, Cash and Bank Balances and Other assets. ( Please refer to Schedule no 16- Note-17). 5. Contingent liabilities Particulars 1. Partly paid-up investments 2. Underwriting commitments outstanding (in respect of shares and securities) 3. Claims, other than against policies, not acknowledged as debts by the company 4. Guarantees given by or on behalf of the Company 5. Statutory demands/ liabilities in dispute, not provided for (Income Tax) 6. Reinsurance obligation to the extent not provided for in accounts 7. Others Insurance claims in appeal net of provision (Gross value of claims ` 129,904 (2010 ` 67,620), out of which reinsured ` 39,704 (2010 - ` 32,113) and provision ` 33,676 (2010 ` 10,852) Total 2011 77,449 2010 1,388
56,524 133,973
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6. Computation of managerial remuneration (i) Managing Directors and Whole time directors remuneration, which is included under Employees remuneration and welfare benefits, is as follows: Particulars a. b. Salary and Perquisites Contribution to provident and other funds Total Note: (a) (b) (ii) 7. The Managerial remuneration is in accordance with the requirements of section 34A of the Insurance Act, 1938 and as approved by IRDA. The remuneration excludes gratuity and leave encashment (except in case of final settlement). Gratuity and leave encashment is accrued based on an actuarial valuation for the Companys overall liability. 2011 25,528 818 26,346 2010 27,000 1,749 28,749
Sitting fees paid to Independent Directors amounts to ` 150 (2010 ` 180).
Capital commitments Particulars Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) 2011 62,777 2010 60,999
8.
Extent of risk retained and reinsured As at March 31, 2011, out of the total sum assured worth ` 1,299,298 million (2010 ` 914,570 million), the company had reinsured ` 417,177 million (2010 ` 330,722 million) and thereby retained risk of 67.89 per cent (2010 63.84 per cent).
9.
Business, sector-wise Particulars 2011 Policies Rural Sector Urban Sector 20.40 per cent 79.60 per cent Premium Income 8.33 per cent 91.67 per cent 2010 Policies 20.06 per cent 79.94 per cent Premium Income 10.8 per cent 89.2 per cent
The Company has issued 21 policies (2010 6 policies), covering 547,321 lives (2010 131,166 lives) and underwritten gross premium of ` 21,870 (2010 ` 4,816 ) in the social sector. 10. Accumulated fund addition to participating policyholders The Board of Directors has at its meeting held on 29th April 2011, declared the following rates of bonus on participating policies: a) b) c) On Accumulation non retirement products: 4% p.a. cash bonus in addition to the guaranteed rate of 3% costing ` 191,197 (2010 ` 154,850 to meet an effective rate of 6.75%). On Accumulation retirement products: 5% p.a. cash bonus in addition to the guaranteed rate of 3% costing ` 20,447 (2010 ` 17,410 to meet an effective rate of 8%) On the Reversionary bonus products: 2% Simple Reversionary bonus, the cost of bonus being ` 49,933 (2010 - ` 24,976 to meet a rate of 2%) In the year under review, a transfer of ` 29,065 (2010: ` 21,915) was made from the participating policyholders account to the shareholders account being the surplus in the participating policyholders accounts subject to the maximum of 1/9th of the bonus declared during the year to the participating policyholders. A transfer of ` 258,554 (2010: ` 348,385) was made from the Non Participating policyholders account & ` 607,432 (2010: ` 338,178) was made from the Unit Linked Non Participating account to the shareholders account which represented the surplus in those accounts. 11. Contribution made to the policyholders account In the year under review, the shareholders contributed ` 88,325 ( 2010 - ` 176,960 ) to the Annuity Linked Non Participating Policyholders Account to meet fully the deficit in that account. Approval from the Shareholders will be obtained for such contribution at the ensuing Annual General Meeting of the Company.
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Its grt 2b 25
Reports

12. Encumbrances on assets Apart from fixed deposits worth ` 81,400 (2010 ` 76,400) marked under lien, there are no encumbrances on the asssets of the company as at the balance sheet date. Breakup of the same are as follows : Particulars With National Securities Clearing Corporation Limited With Bombay Stock Exchange Limited With The Post Master General With a Landlord Total 13. Operating lease commitments In accordance with Accounting Standard 19 on Accounting of Leases issued by the Institute of Chartered Accountants of India, details of leasing arrangements entered into by the company are given below. The Company has taken various office and residential premises on operating lease and leave and license agreements. Lease payments are recognized in the Revenue Account under `Rent, Rates and Taxes. The lease term varies from three to nine years and renewable at the option of the Company. There are no restriction imposed by lease arrangements. There are no sub leases. The future minimum lease payments under non-cancellable operating lease period for such premises are as follows: Particulars Not later than one year Later than one year not later than five years Later than five years 2011 277,306 520,072 50,647 2010 233,704 805,948 164,437 2011 65,000 15,000 700 700 81,400 2010 50,000 25,000 700 700 76,400
The total operating lease rentals charged to Revenue account in the current year is ` 236,664 (2010 ` 250,792) 14. Ratios (in per cent/ times) Sr. no. Particulars Participating 2011 1. New business premium income growth 5.83 2010 1.11 Non-participating 2011 1.96 2010 1.40 Annuities- Participating 2011 29.87 2010 0.66 AnnuitiesLinked Non-par 2011 0.69 2010 0.81 2011 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Net retention ratio Ratio of expenses of management Commission ratio (Gross) Ratio of policyholders liabilities to shareholders funds Growth rate of shareholders funds Ratio of surplus to policyholders liabilities Change in net worth Profit after tax/ Total Income (Total real estate + loans)/ (Cash + Invested Assets) Total Investments/ Net worth Total affiliated investments/ (Capital + Surplus) Investment Yield (Gross and Net) Conservation Ratio NPA Ratio Gross NPA Ratio Net NPA Ratio Nil Nil Its grt 2b 25 Nil Nil 98.84% 23.91% 4.42% 1990.28% 33.36% 0.05% 1,024,746 2.80% 0.07% 1527.99% 11.66% 8.50% 70.05% Unit Linked Non participating 2011 0.74 2010 1.00 2010 99.37% 26.08% 6.07% 2076.69% 29.09% 0.08% 692,246 1.75% 0.08% 1193.22% 14.09% 7.96% 70.50%
49
15.
Investments a) b) All the investments of the Company are performing investments in accordance with the directions issued by the Insurance Regulatory and Development Authority. For the purposes of meeting the requirement of Section 7 of the Insurance Act, 1938, the Company has earmarked securities relating to 7.27% Government of India, 2013, having face value of ` 100,000 in constituent SGL Account with its Bankers (2010 - 7.27% Government of India, 2013, having face value of `100,000 ). These investments are classified under Investments - Shareholders (Refer Schedule 8). Value of contracts in relation to investments for: Particulars Purchases where deliveries are pending Sales where payments are due d) Particulars 2011 Revenue Account Interest, Dividends and Rent- Gross Add/(Less) :(Premium on investments amortized)/ Discount on accretion Interest, Dividends and Rent- Net of amortisation 3,290,453 402,830 3,693,283 Profit & Loss Account 228,944 (10,312) 218,632 Revenue Account 2,631,172 (30,560) 2,600,612 2011 1,128,103 1,100,439 2010 Profit & Loss Account 189,364 (13,256) 176,108 2010 1,508,957 489,512
c)
16.
Related parties disclosures The disclosures relating to related parties as required by Accounting Standard 18 on Related Parties Disclosures by the Institute of Chartered Accountants of India are as under. Related Parties where control exists Nature of relationship Related Party Holding Company Kotak Mahindra Bank Limited B. Related parties where transactions have taken place during the years ended March 31, 2011 and March 31, 2010 (i) Holding Company Kotak Mahindra Bank Limited (ii) Joint Venturer Old Mutual Plc (iii) Enterprise in which joint venturer has Old Mutual Life Assurance Company (South Africa) Limited significant influence (iv) Fellow Subsidiaries Kotak Mahindra Prime Limited. Kotak Securities Limited Kotak Mahindra Capital Company Limited Kotak Mahindra Asset Management Company Limited Kotak Mahindra Investments Ltd Kotak Investment Advisors Ltd (v) Entities managed by Fellow Subsidiaries Kotak Mahindra Mutual Fund managed by Kotak Mahindra Asset Management Company Limited (vi) Enterprises in which key management personnel have significant influence Kotak Life Insurance Superannuation Fund (vii) Enterprises in which relatives of key management Kotak Commodities Services Limited personnel have significant influence Aero Agencies Limited (viii) Key management personnel Non-Executive Directors Mr. Uday Kotak, Chairman Mr. Shailesh Devchand, Vice Chairman (w.e.f. 09-Feb.-2011) Mr. Crispin Sonn, Director (w.e.f. 30-Sep-2009) Mr. Dipak Gupta, Director Mr. Gaurang Shah, Director (w.e.f. 01-May-2010) Mr. Rafael Galdon, Vice-Chairman (till 09-Feb.- 2011) Managing Director Mr. Pankaj Desai , w.e.f. 01-May-2010 (Whole time Director till 30-April-2010) Mr. Gaurang Shah (Managing Director till 30-April-2010) A.
50
C. 2010-11 Holding Company Joint Venturer Fellow Subsidiaries Others Holding Company Joint Venturer Fellow Subsidiaries Others (Amounts in thousands of Indian `) 2009-10
The following are transactions and closing balances of related parties in the ordinary course of business: (Related parties disclosures contd.)
Name of the Company / Person
Its grt 2b 25
Assets / Liabilities 560,476 202,289 22 1,000 70 4,059 31 2,250 243,423 471,570 210,000 270,000 1 50,700 1,280,793
Bank Balance
Kotak Mahindra Bank Ltd
Bank Deposits
Mutual Funds
Commercial Paper / Bonds
Kotak Mahindra Prime Ltd
Group Insurance Policy Deposits
Kotak Securities Ltd
Kotak Commodities Services Limited
Kotak Mahindra Asset Management Company Ltd 2,602,480 1,326,755 633,668 540,000 8 12 2,602,480 159
1,326,755
157 6 23 540,000 633,668
Schedules
Kotak Mahindra Capital Company Ltd
Kotak Mahindra Investments Ltd
Kotak Investment Advisors Ltd
Share Capital
Old Mutual Plc
Outstanding Receivable / (Payables) (2,371)
Kotak Mahindra Asset Management Company Ltd
Reports
(16) (631)
(3,447)
(985)
Old Mutual Life Assurance Company (South Africa) Ltd
26,274
78 1,024
(8,061)
45,406
480 1,906
(7,692)
Its grt 2b 25
Commission Payable
51
(Amounts in thousands of Indian `) 2010-11 Holding Company Joint Venturer Fellow Subsidiaries Others Holding Company Joint Venturer Fellow Subsidiaries Others 2009-10
52
41,806,862 1,985 39,548,660 214,059 7,428 183,957 28,791 6,262 25,533 1,785 294 1,733 290 180 889 271 16 26,346 14,408 1 3,044 228 813 108,358 4,806 4,142 4,843 2,463 2,842 14,554 300,548 25,500 19,158 30,020 14,130 39,010 1,346 30,135 189 210 1,061 256 3,037 62,281,530 59,862,134 52 28,749 72,342 70 258 23,931
Name of the Company / Person
Transactions
Purchase of Fixed Assets
Purchase of Investment
Sale of Fixed Assets
Sale of Investment
Brokerage Expenses
Commission Paid
Expenses / Reimbursements for Services provided
Old Mutual Life Assurance Company (South Africa) Ltd
Expenses / Reimbursements for Services received
Remuneration of Key Management Personnel
Interest Income/(Expense)
Profit on sale of investment
Premium Income
Kotak Commodities Services Limited
Kotak Investment Advisors Ltd
Superannuation Fund Contribution
Kotak Life Insurance Superannuation Fund
17. Non-Participating business Annuities - Participating Annuities-LinkedNon-par Unit-Linked (Amounts in thousands of Indian `) Shareholders and Total Unallocated Assets & Liabilities
Segmental balance sheet as at March 31, 2011
Particulars
Participating business
Its grt 2b 25
2011
2010
2011
2010
2011
2010
2011
2010
2011
2010
2011
2010
2011
2010
45,592 5,354,202 14,110 1,923,516 1,851,218 111 180,949 30,455 328 43,899 6,032 261,663 372,478 22,789 15,332 11,235 53,393 421,397 110,454 20,248 328 26,594 209,483 5,371 8,133 221 11,668 2,767 2,409 396 8,628 3,899 2,313 107 8,297 366 152 47,053 96 5,234 1,010 206,655 46,464 89 83,110 37,740 47,339 321,501 49,067 89 65,525 88,383 524,565 1,162,648 134 567,942 482,692 246,174 10,731,453 227,906 8,294,934 3,540,079 59,132,046 3,000,944 46,163,554 3,222,636 438,489 595,854 268,723 79,379 145,820 1,089,776 1,094,841 564,403 465,689 10,824,275 8,363,082 61,624,668 48,460,402 5,624,274 520,784 447,455 1,516,535 1,608,461 1,009 1,009 5,624,274 2,491,819 559,925 383,824 296,896 57,882 134,748 873,350 2,037,320 1,009 87,162,768 16,059,375 69,863,499 57,742 438,489 1,047,305 85,443 269,584 351,722 39,285 79,653 193,311 2,066,303 2,055,916 1,009 69,422,192
SOURCES OF FUNDS Shareholders Funds Share Capital Reserves and Surplus Credit/Debit Fair Value change account Borrowings Credit/[Debit] Fair Value Change Account 56,341 Policy Liabilities * 6,542,365 Insurance reserve 2,926 Linked liabilities * Funds for Discontinued policies Funds for Future Appropriation: Linked Liabilities Others 1,923,516 1,094,841 4,972 520,136 39,295 4,218 422,748 38,723 91,307 10,212,184 66,037 7,849,590 2,494,138 57,613,986 9 2,298,959 44,552,982 5,102,902 520,363 5,102,902 520,363 5,102,902 520,363 61,313 11,571,462 42,220 67,826,170 9 5,102,902 520,363 49,810 9,236,787 52,833 52,402,572
Total
6,601,632
5,413,904
Schedules
5,273,241 52,060
12,639,250 54,458,488 52,194 559,925 912,970 79,114 297,757 250,292 224,078 70,873 224,141 2,059,225
APPLICATION OF FUNDS Investments 6,631,326 Assets held to cover linked liabilities Loans against policies 57,631 Fixed Assets Current Assets 53,401 Cash and Bank Balances Reinsurance premium for future period 8,196 Advances 444 Income accrued on investments 125,369 Balance due from reinsurance companies 1,179 Outstanding Premium 70,854 Other Assets
47,729 9,307 444 86,429 14,595 61,603
Total Current Assets
259,443
220,107
Reports
Current Liabilities & Provisions Agents Balances Balance due to reinsurance companies Claims Outstanding Unclaimed Balances-Policy Holders Other Current Liabilities Provisions Control Account
4,008 26,447 47,260 15,248 6,299 90,214 189,476 72,187 (67,941) 440,419 26,328 (3,539) 32,335 (17,003) 384 46,262 12,540 (653) 381,886 448 236 1,688 3,092 342 20,522 126 791 1,893 4,212 35 25,278
31,363 2,513 18,802 18,498 275,592
11,231 8,707 15,508 2,062 93,995
13,446 72,034 6,217 3,861 69,029 164,587 (153,352)
39,842 276 52,311 11,799 8,585 100,338 213,151 (159,757)
49,704 359,103 51,574 45,066 963,407 1,468,854 (1,047,457)
125,141 82,417 143,041 56,639 119,118 702,304 1,228,661 (704,095)
1,881,217 190,604 (1,418,764) 653,057 436,719 1,526,430
1,984,426 171,373 (1,303,803) 851,996 21,355 2,551,175
98,969 26,683 482,598 94,933 1,955,283 190,604 2,849,069 (782,766) 1,526,430
176,724 83,484 252,214 100,698 2,113,573 171,373 2,898,065 (838,840) 2,551,175
Total Current Liabilities
346,768
131,503
Its grt 2b 25
1,923,517 1,094,841
(87,325)
88,604
53
Net Current Assets Miscellaneous Expenditure (To the extent not written off or adjusted) (Profit)/Loss for the year Debit Balance in Profit and Loss Account
564,403
465,689
10,824,275
Total Assets
6,601,632
5,413,904
8,363,082
61,624,668
48,460,402
5,624,274
5,624,274
87,162,768
69,422,192
* Note: The Policyholder Liabilities and Linked Liabilities are adequately backed by policyholder Investments, Unit Linked Assets, Cash and Bank Balances and Other assets
18. Segment-wise revenue account for the year ended March 31, 2011 Particulars Participating Participating NonParticipating Annuities Linked NonParticipating
(Amounts in thousands of Indian `) Annuity NonParticipating Unit Linked Total
Premium Income First Year Premium Renewal Premium Single Premium (a) (b) (c) Premium Income Reinsurance Ceded Reinsurance accepted 1,599,742 1,014,385 118 2,614,245 (15,717) 415,710 (30,520) 385,190 81,493 (5,393) 854,243 127,589 1,186,403 2,168,235 (252,925) 110,094 3,305 113,399 8,309 (10) 61,539 49,271 660 111,470 (486) 37,904 (1,803) 36,101 6,563 (358) 1,260,767 2,168,629 293 3,429,689 (100) 549,380 12,143 561,523 570,296 (270,304) (74,626) 88,235 9,533 (260) 3,069,091 1,006 (215) 2,037,799 470 (11) 153,749 4,451 (341) 4,308,823 4,793,463 13,863,835 2,774,144 21,431,442 (76,223) 2,539,277 57,793 2,597,070 4,181,433 (1,453,420) (200,530) 28,986 (2,128) 26,506,630 8,569,754 17,223,709 3,961,618 29,755,081 (345,451) 3,652,365 40,918 3,693,283 4,848,094 (1,729,485) (275,156) 88,235 44,446 (2,955) 36,076,092
Income from Investments Interest, divident & rent Premium on investments amortized(Net) (a) (b) (c) (d) Interest, divident & rent-Net Profit on sale/redemption of investments Loss on sale/redemption of investments Transfer/Gain on revaluation
Other Income (a) (b) (c) Contribution from Shareholders Account Miscellaneous income Profit(Loss) on Sale of Fixed Assets
TOTAL(A) Commission First Year Premium Renewal Premium Single Premium Commission on Reinsurance Ceded Net Commission Operating Expenses related to Insurance business Provision for doubtful debts Bad debts written off Provision for Tax(Fringe Benefit Tax) Diminution in the value of investments(Net) TOTAL(B)
376,069 26,810 2 (847) 402,034 963,197 1,365,231
59,447 4,038 502 (6,187) 57,800 510,397 568,197
4,190 506 12 4,708 21,439 26,147
80,641 36,360 4 (1) 117,004 571,367 688,371
441,397 235,773 48,500 (5,547) 720,123 3,734,175 4,454,298
961,744 303,487 49,020 (12,582) 1,301,669 5,800,575 7,102,244
54
Its grt 2b 25
Reports
18. Segment-wise revenue account for the year ended March 31, 2011 (Continued) Particulars Participating NonParticipating Annuities Participating
(Amounts in thousands of Indian `) Annuity Linked NonParticipating 71,151 1,093,456 (338) 1,164,269 25,269 2,357,687 3,547,225 73,227 Unit Linked NonParticipating 492,873 7,871,586 (77,036) 8,287,423 195,179 13,053,084 21,535,686 516,646 Total
Claims by Death Annuities/Pension payment Maturity claims, survival benefits, surrender and rider benefits. Reinsurance :- Claims by death Benefits paid(net) Interim Bonuses paid Change in valuation of Liability in respect of Life policies (a) Gross (b) Amount ceded in reinsurance (c) Amount accepted in reinsurance Provision for linked liabilities TOTAL( C) SURPLUS/(DEFICIT) (D)=(A)-(B)-(C) APPROPRIATIONS Transfer to Shareholders-Account Transfer to Other Reserves (to be specified) Transfer to Funds for Futue Approriation SURPLUS/(DEFICIT) AFTER APPROPRIATION SURPLUS/(DEFICIT) BROUGHT FORWARD SURPLUS/(DEFICIT) CARRIED FORWARD TO BALANCE SHEET (a) (b) (c) (d) Interim Bonuses Paid Allocation of Bonus to Policyholders Surplus/ (Deficit) shown in the Revenue Account Total Surplus: [(a) + (b) + (c)]
44,916 459,094 (3,923) 500,087 1,188,163 1,688,250 15,610
504,443 15,629 (137,699) 382,373 828,676 1,211,049 258,553
2,060 25,439 (129) 27,370 97,388 124,758 2,844
1,115,443 9,465,204 (219,125) 10,361,522 2,334,675 15,410,771 28,106,968 866,880
26,793 (11,183) 14,110 2,927 241,130 (11,183) 229,947
258,553 38,723 20,447
2,272 570 39,293 570 21,017
73,227
607,433 (90,785)
895,051 (17,558) (10,613) 52,833 42,220
261,577 (10,613) 250,964
Its grt 2b 25
55
18.
Segment-wise revenue account for the year ended March 31, 2010 Particulars Participating Participating NonParticipating Annuities Linked NonParticipating
(Amounts in thousands of Indian `) Annuity NonParticipating Unit Linked Total
Premium Income First Year Premium Renewal Premium Single Premium (a) (b) (c) Premium Income Reinsurance Ceded Reinsurance accepted 274,533 1,000,154 90 1,274,777 (16,390) 354,788 (38,196) 316,591 55,538 (16,720) 7,228 31 1,621,056 77,096 23,827 (1) (4,905) 96,017 313,872 416,984 126,258 625,834 1,169,076 (82,022) 57,196 368 57,564 8,838 (10) 517 28 1,153,992 16,573 3,499 22 (45,823) (25,728) 162,888 2,082 53,999 56,081 (610) 30,443 (2,184) 28,259 4,208 (1,395) 38 1 86,583 136 482 (1) 617 3,427 1,830,196 1,489,837 4,341 3,324,374 (323) 365,429 2,627 368,055 312,307 (100,384) 539,592 176,960 2,541 80 4,623,201 127,127 22,571 111 (26) 149,783 445,423 1,228,617 207,390 32,759 (10,289) 1,458,476 4,812,759 1,449,549 257,769 32,891 (61,044) 1,679,165 5,738,369 8,313,861 12,670,406 1,871,914 22,856,182 (82,618) 1,823,316 6,825 1,830,143 3,200,573 (746,628) 4,682,712 17,943 553 31,758,857 10,837,656 15,340,654 2,502,179 28,680,489 (181,963) 2,631,172 (30,560) 2,600,612 3,581,464 (865,137) 5,222,304 176,960 28,267 693 39,243,689
Income from Investments Interest, dividend & rent Premium on investments amortized(Net) (a) (b) (c) (d) Interest, dividend & rent-Net Profit on sale/redemption of investments Loss on sale/redemption of investments Transfer/Gain on revaluation
Other Income (a) Contribution from Shareholders Account
(b) Miscellaneous income (c) Profit(Loss) on Sale of Fixed Assets
TOTAL(A) Commission First Year Premium Renewal Premium Single Premium Commission on Reinsurance Ceded Net Commission Operating Expenses related to Insurance Business ( Refer Schedule 16 - Note 2 k ) Provision for doubtful debts Bad debts written off Provision for Tax(Fringe Benefit Tax) Diminution in the value of investments(Net) TOTAL(B)
(66,747) 343,142
137,160
(4,941) (897)
595,207
6,271,234
(71,688) 7,345,846
56
Its grt 2b 25
Reports
18. Segment-wise revenue account for the year ended March 31, 2010 (Continued) Particulars Participating NonParticipating Annuities Participating
(Amounts in thousands of Indian `) Annuity Linked NonParticipating 61,669 156,758 218,427 21,856 3,523,498 3,763,781 264,213 264,212 197,236 14,852 212,088 Unit Linked NonParticipating 317,055 3,658,762 (18,230) 3,957,587 937,832 19,551,945 24,447,363 1,040,259 338,178 702,082 Total
Claims by Death Annuities/Pension payment Surrender payments & rider benefits Reinsurance :- Claims by death Benefits paid(net) Interim Bonuses paid Change in valuation of Liability in respect of Life policies (a) (b) (c) Gross Amount ceded in reinsurance Amount accepted in reinsurance
77,545 445,455 (37,359) 485,641 758,182 1,243,823 34,091 19,981 14,110
524,508 63,435 (304,856) 283,087 385,360 668,447 348,385 348,385
1,517 20,635 (65) 22,087 62,717 84,804 2,676 1,934 742 37,981
982,294 4,345,045 (360,510) 4,966,829 2,165,947 23,075,443 30,208,218 1,689,624 708,478 966,294 14,852 37,981 52,833
Provision for linked liabilities TOTAL( C) SURPLUS/(DEFICIT) (D)=(A)-(B)-(C) APPROPRIATIONS Transfer to Shareholders-Account Transfer to Other Reserves (to be specified) Transfer to Funds for Future Appropriation SURPLUS/(DEFICIT) AFTER APPROPRIATION SURPLUS/(DEFICIT) BROUGHT FORWARD SURPLUS/(DEFICIT) CARRIED FORWARD TO BALANCE SHEET (a) (b) (c) (d) Interim Bonuses Paid Allocation of Bonus to Policyholders Surplus/ (Deficit) shown in the Revenue Account Total Surplus: [(a) + (b) + (c)]
14,110 179,826 14,110 193,937
38,723 17,410 742 18,151
Its grt 2b 25
57
19.
Statement showing the Controlled Fund (IRDA Cir No: IRDA/F&I/CIR/F&A/045/03/2010 dtd March 17, 2010) Particulars 1 Computation of Controlled fund as per the Balance Sheet Policyholders Fund (Life Fund) Participating Individual Assurance Individual Pension Any other Non-participating Individual Assurance Group Assurance Individual Annuity Any other Linked* Individual Assurance Group Assurance* Individual Pension Group Superannuation Group Gratuity Any other Funds for Future Appropriations* Total (A) Shareholders Fund Paid up Capital Reserves & Surpluses Fair Value Change Total (B) Misc. expenses not written off Credit / (Debit) from P&L A/c. Total (C ) Total shareholders funds (B+C) Controlled Fund (Total (A+B+C)) *Refer Schedule 16 - Note 4 510.29 52.14 562.43 (152.64) (152.64) 409.79 8,545.44 562.43 (255.12) (255.12) 307.31 6,671.24 510.29 52.14 5,558.14 1,028.55 40.11 402.64 203.39 8,135.65 4,355.59 790.26 32.66 287.82 205.14 6,363.93 145.18 47.17 73.11 36.37 654.53 55.94 536.83 46.15 (` in crores) ` 2010-11 (` in crores) 2009-10
58
Its grt 2b 25
Reports
19.
Statement showing the Controlled Fund (IRDA Cir No: IRDA/F&I/CIR/F&A/045/03/2010 dtd March 17, 2010) (Continued) Particulars 2 Reconciliation of the Controlled Fund from Revenue and Profit & Loss Account Opening Balance of Controlled Fund Add: Inflow Income Premium Income Less: Reinsurance ceded Net Premium Investment Income Other Income Funds transferred from Shareholders Accounts Total Income Less: Outgo (i) (ii) Benefits paid (Net) Interim Bonus Paid 1,036.15 1,774.54 130.17 580.06 3,520.92 86.69 89.51 (2.82) 102.47 6,770.89 1,774.55 8,545.44 8,545.44 3,762.58 168.96 70.85 98.11 69.22 4,147.10 2,524.14 6,671.24 6,671.24 496.68 2,524.14 167.92 573.84 2,975.51 34.55 2,940.96 653.67 4.15 8.82 3,607.60 2,868.05 18.20 2,849.85 1,061.09 2.90 17.70 3,931.54 6,671.24 3,979.76 (` in crores) ` 2010-11 (` in crores) 2009-10
(iii) Change in Valuation of Liability (iv) Commission (v) Operating Expenses
(vi) Provision for Taxation (a) (b) FBT I.T.
Total Outgo Surplus of the Policyholders Fund Less: transferred to Shareholders Account Net Flow in Policyholders account Add: Net income in Shareholders Fund Net In Flow / Outflow Add: change in valuation Liabilities Add: Increase in Paid up Capital Closing Balance of Controlled Fund As Per Balance Sheet Difference, if any
Its grt 2b 25
59
19.
Statement showing the Controlled Fund (IRDA Cir No: IRDA/F&I/CIR/F&A/045/03/2010 dtd March 17, 2010) (Continued) Particulars 3 Reconciliation with Shareholders and Policyholders Fund Policyholders Funds 3.1 Policyholders Funds - Traditional-PAR and NON-PAR Opening Balance of the Policyholders Fund Add: Surplus of the Revenue Account Add: change in valuation Liabilities Total As per Balance Sheet Difference, if any 3.2 Policyholders Funds - Linked Opening Balance of the Policyholders Fund Add: Surplus/(deficit) of the Revenue Account Add: change in valuation Liabilities Total As per Balance Sheet Difference, if any Shareholders Funds Opening Balance of Shareholders Fund Add: net income of Shareholders account (P&L) Add: Infusion of Capital Closing Balance of the Shareholders fund As per Balance Sheet Difference, if any 307.31 102.48 409.79 409.79 238.09 69.22 307.31 307.31 5,671.47 1,561.37 7,232.84 7,232.84 3,171.33 2,500.14 5,671.47 5,671.47 692.46 (1.06) 211.42 902.82 902.82 570.35 1.49 120.62 692.46 692.46 (` in crores) ` 2010-11 (` in crores) 2009-10
60
Its grt 2b 25
Reports
20.
Summary of financial statements Sr. no. Particulars Policyholders Account 1 2 3 4 5 6 8 9 10 11 12 13 14 Gross premium income Net premium income Income from investments (Net of Amortisation) Other income Total Income Commission & Brokerage Operating expenses related to insurance business including Fringe Benefit Tax Provisions for Diminution in value of investments (net) Total Expenses Benefits paid Increase in actuarial liability Provision for Linked Liabilities Surplus/ (Deficit) (before appropriation) Shareholders Account 15 16 17 18 19 20 21 22 Total income under shareholders Account Total Expenses under shareholders Accounts Profit/ (Loss) before tax Provision for tax Profit/ (Loss) after tax Balance at the beginning of the year Profit/ (Loss) carried to Balance Sheet (A) Policyholders account: Total Funds Total Investments Yield on Investments (%) (B) Shareholders account: Total Funds Total Investments Yield on Investments (%) 23 24 25 26 27 28 Yield on Total Investments Paid up Equity Capital Net Worth Total Assets Earnings per share (Rupees) Book Value per share (Rupees) 4,096,836 3,222,635 8.03% 8.50% 5,102,902 4,096,836 85,636,339 2.01 8.03 3,072,090 2,491,819 8.90% 7.96% 5,102,902 3,072,090 66,871,017 1.36 6.07 11,674,996 12,836,740 8.63% 9,339,430 10,147,431 7.69% 1,121,240 96,495 1,024,745 1,024,745 (2,551,175) (1,526,430) 912,744 220,498 692,246 692,246 (3,243,421) (2,551,175) 29,755,081 29,409,630 6,536,736 129,726 36,076,092 1,301,669 5,800,575 7,102,244 10,361,522 2,334,675 15,410,771 866,880 28,680,489 28,498,526 10,539,243 205,920 39,243,689 1,679,165 5,738,369 (71,688) 7,345,846 4,966,829 2,165,947 23,075,443 1,689,624 2011 2010
(Amounts in thousands of Indian `) 2009 2008 2007
23,431,925 23,077,409 (3,452,186) 329,867 19,955,090 2,254,323 6,103,481 528 8,358,332 2,430,395 1,749,734 6,659,401 757,228
16,911,366 16,627,098 2,610,124 1,099,659 20,336,881 1,551,115 4,276,854 71,160 5,899,129 2,625,540 1,297,916 9,917,971 596,325
9,715,141 9,513,372 1,193,878 1,186,898 11,894,148 802,032 2,421,903 3,223,935 1,731,712 1,208,134 5,080,269 650,098
465,109 321,708 143,401 143,401 (3,386,822) (3,243,421)
364,352 1,091,419 (727,067) (8,322) (718,745) (2,668,077) (3,386,822)
85,950 1,182,306 (1,096,356) 8,322 (1,104,678) (1,563,398) (2,668,076)
7,070,838 6,277,699 5.25%
5,321,105 5,704,368 13.28%
4,023,188 4,026,888 11.90%
2,379,844 2,823,102 12.10% 7.17% 5,102,902 2,379,844 39,797,642 0.29 4.66
1,936,273 1,312,978 9.45% 12.24% 4,802,732 1,936,273 30,389,777 (1.80) 4.03
1,155,750 853,836 5.92% 10.34% 3,303,466 1,155,750 17,991,510 (3.97) 3.50
Its grt 2b 25
61
21.
Earnings per share
Earnings Per Share is calculated by dividing the Profits/(Loss) in the Shareholders Account by the weighted average number of equity shares outstanding during the year. The numbers used in calculating basic and diluted earnings per equity share are as follows : Particulars Profit/ (Loss) after taxation and before exceptional items Profit/ (Loss) after taxation Weighted average number of shares Earnings per share before exceptional items (Basic and Diluted) Earnings per share (Basic and Diluted) Face value per share 22. Employee share option plans (ESOP) At the Annual General Meetings of the holding company, Kotak Mahindra Bank Limited, the shareholders of the Bank had unanimously passed Special Resolutions on 28th July, 2000, 26th July, 2004 & 26th July, 2005, 5th July,2007 and 21st August,2007, to grant options to the Eligible Employees of the Bank and its subsidiaries companies. Pursuant to these resolutions, the following four Employees Stock Option Schemes had been formulated and adopted: a) b) c) d) Kotak Mahindra Equity Option Scheme 2001-02 Kotak Mahindra Equity Option Scheme 2002-03 Kotak Mahindra Equity Option Scheme 2005 Kotak Mahindra Equity Option Scheme 2007 2011 1,024,745 1,024,745 510,290,249 2.01 2.01 ` 10 2010 692,246 692,246 510,290,249 1.36 1.36 ` 10
During the year, the Company reimbursed Kotak Mahindra Bank Limited ` 10,628 (2010 ` 12,268) towards ESOP granted to the employees of the Company. These costs are a part of Employees remuneration and welfare benefits in Schedule 3. Stock appreciation rights (SARs) During the year , the Company had granted SARs of the equity shares of the holding company, Kotak Mahindra Bank Limited, to eligible employees as and when deemed fit. The SARs are to be settled in cash and will vest in the manner as provided in the scheme / grant letters to such eligible employees. The contractual life (equivalent to the vesting period) of the SARs ranges from within one year to two years. Detail of activity under SARs plan is summarized below: No. of SARs Particulars Year ended March 31, 2011 (*) Nil 61,120 21,200 Nil 15,440 4,100 20,380 Year ended March 31, 2010 Nil Nil Nil Nil Nil Nil Nil
Outstanding at the beginning of the year Granted during the year Exercised during the year Expired during the year Transferred during the year Forfeited during the year Outstanding at the end of the year
*The number of SARs have been adjusted for split of the underlying equity shares from ` 10 paid up to ` 5 paid up per share.
62
Its grt 2b 25
Reports
(Amounts in thousands of Indian `) Effect of grant of ESOP & SARs to employees on the Revenue/Profit and loss account and on its financial position Particulars Year ended March 31, 2011 27,015 5,520 Year ended March 31, 2010 12,268 Nil
Total Employee Compensation Cost pertaining to sharebased payment plans Closing balance of liability for cash-settled options 23. Micro, Small and Medium Enterprises Development Act, 2006.
The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been given. 24. Disclosure of certain expenses As required under Circular no 067/IRDA/F&A/CIR/MAR -08 dated March 28, 2008, expenses incurred under the following heads are as follows: Particulars (i) (ii) Outsourcing Expenses Business Development 2010-11 148,503 109,009 431,831 2009-10 104,677 200,879 342,581
(iii) Marketing Support
Its grt 2b 25
63
Registration No: 107; Date of Registration: January 10, 2001
64
Linked Life Non-Unit (1) Unit (2) Total (3)=(1) + (2) Non-Unit (4) Unit (5) Total (6)=(4) + (5) Non-Unit (7) Unit (8) Linked Pension Linked Group Total Total Unit Linked (9)= (7) + (8) (10)=(3)+ (6)+(9) 1,133,911 (1,844) 24,861,131 (76,323) 2,511,767 (74,379) 17,785,764 20,297,531 (74,379) 68,270 (100) 3,361,419 3,429,689 (100) 16,725 (1,844) 1,117,186 5,001 436 (1) 53,584 511 (113) 4,308,822 1,151,357 25,269 38,180 (12,574) 73,227 522,249 73,227 2,357,686 3,509,043 85,801 117,004 571,367 688,371 1,164,268 2,382,956 3,547,224 73,227 73,227 73,227 74,299 160 48,205 48,365 8,475 (3,161) 5,314 20,620 (5,604) (5,604) 194,084 1,225,916 1,420,000 (26,224) 227,900 165,507 (76,585) 13,352 (53,584) 1,393,776 232,901 165,943 (76,586) 13,352 511 (113) 160 48,205 48,365 202,559 3,158,593 4,751,729 (1,723,723) (275,156) 88,235 33,437 (2,469) 1,468,075 30,815,454 837,127 4,305,542 5,142,669 9,451,692 1,222,755 15,631,219 1,425,314 25,082,911 (5,604) (5,604) (5,604) 589,874 607,432 (17,560) 589,872 218,202 26,249 (337) 2,972,526 28,475 (2,016) 5,680,487 719,963 3,685,970 4,405,933 352,807 198,339 551,146 723,408 613,036 613,036 (90,787) (90,787) (201,156) 522,249 613,036 (90,787) 11,827,168 19,559,226 12,025,507 20,110,372 7,732,058 8,084,865 4,405,933 688,371 12,911 719,963 3,685,970 117,004 571,367 19,358,070 25,038,556 713,977 3,594,845 2,145,967 3,989,241 (1,376,496) (213,882) 2,972,526 2,364,169 4,015,490 (1,376,833) (213,882) 28,475 (2,016) 21,482 2,509 529,471 88,235 4,451 (341) 540,041 567,786 (270,304) (74,626) (529,471) 561,522 570,296 (270,304) (74,626) 88,235 4,451 (341)
SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS (Contd.)
for the year ended 31stMarch 2011
(Currency : In thousands of Indian Rupees unless otherwise stated)
25 Unit Linked Disclosures Norms
Unit Linked Disclosures made hereunder are in accordance with the instructions received from the Insurance Regulatory & Development Authority vide circular numbers 054/IRDA/F and A/FEB-07 dated February 20, 2007 and IRDA/F&A/001/Apr-07 dated 16th April, 2007
25A Unit Linked Disclosures - Revenue Account
REVENUE ACCOUNT FOR THE YEAR ENDED 31st March 2011
Policyholders Account (Technical Account)
Particulars
Schedule
Premiums earned net (a) Premium (b) Reinsurance ceded Income from Investments (a) Interest, Dividend & Rent Gross (Net of amortization) (b) Profit on sale/redemption of investments (c) Loss on sale/redemption of investments (d) Unrealised gain/(loss) Other income: (a) Linked Income (b ) Contribution from the Shareholders a/c (c ) Other Income (d ) Loss on Sale of Fixed asset
UL1
TOTAL (A)
Commission Operating Expenses related to Insurance Business Provision for Taxation
TOTAL (B)
Benefits Paid (Net) Interim Bonus Paid Change in Valuation Liability TOTAL (C)
UL2
SURPLUS/ (DEFICIT) (D) =(A)-(B)-(C)
APPROPRIATIONS Insurance reserve at the beginning of the year Transfer to Shareholders a/c Funds available for future appropriations
Total (D)
Its grt 2b 25
Reports
Registration No: 107; Date of Registration: January 10, 2001 SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS (Contd.)

(Currency : In thousands of Indian `) 25A Unit Linked Disclosures - Revenue Account Schedules to Annexure to Revenue Account (UL) forming part of Financial Statements Schedule-UL1 Linked Income (recovered from linked funds)* Particulars Life Linked Unit (1) Fund Administration charges Fund Management charge Policy Administration charge Surrender charge** Switching charge Mortality charge Rider Premium charge Partial withdrawal charge Miscellaneous charge 850,048 680,736 874,346 73 494,654 63,514 9,155 TOTAL (UL-1) 2,972,526 529,471 53,584 3,555,581 Pension Linked Unit (2) 142,797 212,809 167,629 28 1,921 4,287 Linked Group Unit (3) 36,320 16,725 539 Total (4)= (1)+(2)+(3) 1,029,165 893,545 1,041,975 101 513,300 63,514 13,981
* (net of service tax, if any). Fund management charges are inclusive of service tax figures ** Surrender charge includes partial surrender charge
Its grt 2b 25
65
66
Linked Life Unit (2) Total (3)=(1)+(2) Non-Unit (4) Unit (5) Total (6)=(4)+(5) Non-Unit (7) Unit (8) Total (9)=(7)+(8) Total Unit Linked (10)=(3)+ (6)+(9) 564,025 745,496 51,117 194,083 51,117 202,677 8,196,855 22,690 9,529,066 Linked Pension Linked Group 69,622 601,927 7,060,509 7,732,058 8,161,782 13,249 1,151,358 1,164,607 8,594 15,066 7,624 7,624 7,060,509 1,085,229 1,085,229 601,927 603 603 142,966 484,280 5,625 65,526 71,151 8,594 8,594 142,966 76,917 338 338 118 118 77,373 7,732,058 8,084,865 12,911 76,917 338 1,151,357 338 1,164,268 118 8,475 194,083 118 202,559 77,373 9,451,693 7,732,058 7,732,058 8,084,865 8,084,865 12,911 12,911 1,151,357 1,151,357 1,164,268 1,164,268 8,475 8,475 194,083 194,083 202,559 202,559 9,451,693 9,451,693
(Currency : In thousands of Indian `)
25A Unit Linked Disclosures - Revenue Account ScheduleUL2 BENEFITS PAID [NET]
Particulars
Non-Unit (1)
Insurance Claims
(a)
Claims by Death
414,658
(b)
Claims by Maturity
(c)
Annuities / Pension payment
(d)
Other benefits
Survival
Surrender
Others
15,066
Sub Total (A)
429,724
Amount Ceded in reinsurance
(a)
Claims by Death
76,917
(b)
Claims by Maturity
(c)
Annuities / Pension payment
(d)
Other benefits
Surrender
Survival
Sub Total (B)
76,917
TOTAL (A) - (B)
352,807
Benefits paid to claimants:
In India
352,807
Outside India
TOTAL (UL2)
352,807
Its grt 2b 25
Registration No: 107; Date of Registration: January 10, 2001 SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS (Contd.) for the year ended 31stMarch 2010 (Currency : In thousands of Indian `) 25 Unit Linked Disclosures Norms Unit Linked Disclosures made hereunder are in accordance with the instructions received from the Insurance Regulatory & Development Authority vide circular numbers 054/IRDA/F and A/FEB-07 dated February 20, 2007 and IRDA/F&A/001/Apr-07 dated 16th April, 2 25A Unit Linked Disclosures - Revenue Account REVENUE ACCOUNT FOR THE YEAR ENDED 31st March 2010 Policyholders Account (Technical Account) Linked Life Non-Unit (1) Unit (2) Total (3)=(1) + (2) Non-Unit (4) Unit (5) Total (6)=(4) + (5) Non-Unit (7) Unit (8) Linked Pension Linked Group Total Total Unit Linked (9)= (7) + (8) (10)=(3)+ (6)+(9) 1,221,661 (717) 26,180,556 (82,941)
Particulars
Schedule
4,839,083 (81,901)
16,795,438
21,634,521 (81,901)
963,763 (323)
2,360,611
3,324,374 (323)
13,648 (717)
1,208,013
118,087 30,669 (454) (705,430) 4,563,722 (1,900,189) 222,949 (222,949) (705,884) 4,563,722 (28) (100,356) 539,592 (100,384) 539,592 3,027,949 3,058,618 2,657 309,650 312,307 936 (4)
1,570,727
1,688,814
11,786
356,269
368,055
1,829
139,499 141,018 (40,741) 118,990
141,328 141,954 (40,745) 118,990
2,198,197 3,512,880 (847,013) 5,222,304
Premiums earned net (a) Premium (b) Reinsurance ceded Income from Investments (a) Interest, Dividend & Rent Gross (Net of amortization) (b) Profit on sale/redemption of investments (c) Loss on sale/redemption of investments (d) Unrealised gain/(loss) Other income: (a) Linked Income (b ) Contribution from the Shareholders a/c (c ) Other Income (d ) Loss on Sale of Fixed asset 1,900,189 34,096 (34,096) 17,688 523 6,823,884 1,457,873 4,791,687 3,536,760 18,160,353 21,697,113 1,655,104 341,002 702,082 1,043,083 1,043,083 341,002 702,084 1,043,086 3,792,493 19,090,964 22,883,457 6,249,560 6,249,560 255,733 930,611 1,186,344 (612,020) 4,791,687 445,424 595,207 8,245 21,856 30,101 755,077 264,213 264,213 1,457,873 149,783 23,352,217 30,176,101 1,380,385 3,242,817 210,182 3,523,498 3,733,680 (490,864) 17,688 523 176,960 2,541 80 176,960 2,541 80 4,623,201 149,783 445,424 595,207 218,427 3,545,355 3,763,782 264,213 264,213 264,213 255 30 50,073 603 21,071 21,674 4,091 7,222 11,313 17,086 161,002 1,391,591 1,552,593 (19,910) (2,824) (2,824) 1,532,683
UL1
255 30 603 21,071 21,674 165,093
176,960 20,484 632 1,582,756 36,382,058 1,608,259 5,258,181 6,866,441 4,176,013 1,398,813 24,035,132 1,563,906 28,211,145 (2,824) (2,824) (2,824) 1,304,473
TOTAL (A)
Commission Operating Expenses related to Insurance Business Provision for Taxation
Reports
TOTAL (B)
Benefits Paid (Net) Interim Bonus Paid Change in Valuation Liability TOTAL (C)
UL2
Its grt 2b 25
SURPLUS/ (DEFICIT) (D) =(A)-(B)-(C)
APPROPRIATIONS Insurance reserve at the beginning of the year Transfer to Shareholders a/c Funds available for future appropriations
338,178 966,297 1,304,475
67
Total (D)
68
Linked Life Unit (2) Total (3)=(1)+(2) Non-Unit (4) Unit (5) Total (6)=(4)+(5) Non-Unit (7) Unit (8) Total (9)=(7)+(8) Total Unit Linked (10)=(3)+ (6)+(9) 378,723 94,949 3,712,586 7,985 165,590 497 4,194,244 18,231 Linked Pension Linked Group 44,385 44 3,492,331 3,536,760 17,734 497 3,810,227 8,244 210,182 218,426 5,929 159,662 310,150 44 3,492,331 7,702 6,985 1,259 54,684 86 155,412 61,669 86 155,412 1,259 6,905 (976) 94,818 64,843 6,905 94,818 64,843 (976) 3,536,760 3,536,760 3,536,760 3,792,493 8,244 210,182 3,792,493 8,244 210,182 3,792,493 8,244 210,182 17,734 218,426 218,426 218,426 497 5,432 5,432 5,432 159,662 159,662 159,662 497 165,093 165,093 165,093 18,231 4,176,013 4,176,013 4,176,013
(Currency : In thousands of Indian `)
25A Unit Linked Disclosures - Revenue Account ScheduleUL2 BENEFITS PAID [NET]
Particulars
Non-Unit (1)
Insurance Claims (a) Claims by Death (b) Claims by Maturity (c) Annuities / Pension payment (d) Other benefits Survival urrender Others
265,765 7,702
Sub Total (A)
273,467
Amount Ceded in reinsurance (a) Claims by Death (b) Claims by Maturity (c) Annuities / Pension payment (d) Other benefits Surrender Survival Sub Total (B)
17,734
17,734
TOTAL (A) - (B)
255,733
Benefits paid to claimants: In India Outside India
255,733
TOTAL (UL2)
255,733
Its grt 2b 25 Financial Statements Schedules
Reports
Registration No: 107; Date of Registration: January 10, 2001 SCHEDULES FORMING PART OF THE FINANCIAL STATEMENTS (Contd.)

(Currency : In thousands of Indian `) 25A Unit Linked Disclosures - Revenue Account Schedules to Annexure to Revenue Account (UL) forming part of Financial Statements Schedule-UL1 Linked Income (recovered from linked funds)* Particulars (1) Fund Administration charges Fund Management charge Policy Administration charge Surrender charge** Switching charge Mortality charge Rider Premium charge Partial withdrawal charge Miscellaneous charge 523,417 383,231 30 353,859 46,086 6,696 TOTAL (UL-1) 1,900,189 222,949 34,096 2,157,234 586,870 Life Linked Unit Pension Linked Unit (2) 87,367 133,947 97 1,444 94 Linked Group Unit (3) 20,399 13,647 50 6,840 Total (4)= (1)+(2)+(3) 694,636 657,364 383,328 30 368,950 46,086
* (net of service tax, if any). Fund management charges are inclusive of service tax figures ** Surrender charge includes partial surrender charge
Its grt 2b 25
69
70
Kotak Guaranteed Money Market Fund Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Kotak Group Money Market Fund Money Market Fund Pension Money Market Fund II Kotak Dynamic Gilt Fund Previous Year 577 1,561 2,138 2,136 2 2 2,138 18.2679 17.2830 24.7259 17.1224 10.5735 2,272 25,155 59 32,429 8,095 10.0677 25,000 9,894 4,040 (2) (1) (185) 25,002 9,895 4,225 568 568 38,852 10.6253 2,272 155 59 22,535 4,055 38,284 2,272 25,155 59 32,429 8,095 38,852 1,455 525 45 234 (12) (122) (49) 20,110 13,042 7,069 7,069 20,110 10.0937 1 1 2 1 2 1 816 24,629 14 32,193 8,106 38,972 20,158 68,275 37 80,263 148,575 144,268 5,168 (861) 4,307 148,575 16.1044 72,824 36 73,116 145,976 140,788 7,624 (2,436) 5,188 145,976 15.0810 2,138 117,046 18.2679 17.2830 24.7259 17.1224 131,453 1,017,365 3,473 2,272 25,155 59 32,429 3,067,026 10.5735 8,095 804,059 10.0677 38,852 3,656,567 10.6253 20,110 1,992,367 10.0937 148,576 9,225,824 16.1044 145,976 9,679,471 15.0810
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian `) 25B Unit Linked Disclosures - Fund Balance Sheet Form A-BS(UL) Fund Balance Sheet for the Year Ended 31st March 2011
Particulars
Schedule
Sources of Funds
Policyholders Funds:
Policyholder contribution
F-1
Appr/Ex-Appr Reserve
Revenue Account
Total
Application of Funds
Investments
F-2
Current Assets
F-3
Less: Current Liabilities and Provisions
F-4
Net current assets
Total
Net Asset Value (NAV) per Unit:
(a) Net Asset as per Balance Sheet (Total Assets less Current Liabilities and Provisions)
(b) Number of Units outstanding
(c) NAV per Unit (a)/(b) (`)
Note : Kotak Group 12M FMP 28/03/2009 and Kotak Group 11M FMP 06/10/2009 funds do not have any opening balance and there are no transactions during the current year in these funds. Hence the previous year figures in those funds are not being disclosed. Accordingly, previous year figures have been restated.
Its grt 2b 25
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25B Unit Linked Disclosures - Fund Balance Sheet Form A-BS(UL) Fund Balance Sheet for the Year Ended 31st March 2011 Kotak Guaranteed Gilt Fund Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Kotak Pension Gilt Fund Kotak Group Gilt Fund Gilt Fund Kotak Dynamic Bond Fund Previous Year
Particulars
Schedule
Sources of Funds 292,652 91 71,771 364,514 355,050 11,600 (2,136) 9,464 364,514 16.0217 15.0383 16.4058 15.3817 16.5093 361,863 229,426 209,226 104,610 85,744 15.4197 15,279 6,126 8,076 3,274 2,562 (2,438) (1,336) (2,437) (608) (1,088) 17,717 7,462 10,513 3,882 3,650 346,584 223,300 201,150 101,336 83,182 7,743 4,658 (37) 4,621 12,364 10.6723 361,863 229,426 209,226 104,610 85,744 12,364 54,563 13,717 2,995 14,956 9,234 135 778 700 78 78 778 10.0576 90 57 53 27 (21) 3 307,210 215,652 206,178 89,627 76,531 12,226 778 339,143 228 76,568 415,940 393,936 24,470 (2,467) 22,003 415,939 17.1700 172,340 130 64,520 236,990 217,118 19,874 (2) 19,872 236,990 16.0612
F-1
Revenue Account
Total
Investments
F-2
Schedules
Current Assets
F-3
F-4
Net current assets
Total
(a) Net Asset as per Balance Sheet (Total Assets less Current Liabilities and Provisions) 364,515 22,751,244 16.0217 15.0383 16.4058 15.3817 24,062,788 13,984,449 13,602,265 361,863 229,426 209,226 104,610 6,336,441 16.5093
85,744 5,560,691 15.4197
12,364 1,158,548 10.6723
778 77,335 10.0576
415,940 17.1700
236,990 24,224,796 14,755,457 16.0612
Reports
Its grt 2b 25
71
72
Kotak Guaranteed Bond Fund Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Kotak Pension Bond Fund Kotak Group Bond Fund Bond Fund Pension Bond Fund II Previous Year 309,570 210 71,429 381,209 362,083 21,385 (2,259) 19,126 381,209 17.1176 16.0069 17.2304 16.1255 17.7427 326,821 454,359 369,807 2,104,208 1,379,873 16.3723 24,537 21,882 30,578 126,436 100,453 (1) (2,737) (5) (12,442) (31) 24,538 24,619 30,583 138,878 100,484 302,284 432,477 339,230 1,977,772 1,279,420 232,209 103,923 (1,484) 102,439 334,648 10.7644 326,821 454,359 369,807 2,104,208 1,379,873 334,648 54,662 46,036 23,429 279,427 160,766 3,990 104 75,667 58,737 16,938 (8) 16,930 75,667 10.1341 180 250 201 1,153 760 184 42 271,979 408,073 346,177 1,823,628 1,218,347 330,474 75,521 42,457 23 (240) 42,240 40,380 2,109 (249) 1,860 42,240 10.8218 6,569 4 (27) 6,546 3,922 2,625 (1) 2,624 6,546 10.1067 381,209 22,270,076 17.1176 16.0069 17.2304 16.1255 20,417,526 26,369,554 326,821 454,359 369,807 2,104,208 17.7427 1,379,873 84,280,951 16.3723 334,648 31,088,445 10.7644 75,667 7,466,571 10.1341 42,240 3,903,285 10.8218 6,546 647,675 10.1067 22,933,085 118,595,685
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25B Unit Linked Disclosures- Fund Balance Sheet Form A-BS(UL) Fund Balance Sheet for the Year Ended 31st March 2011
Particulars
Schedule
Sources of Funds
F-1
Revenue Account
Total
Investments
F-2
Current Assets
F-3
F-4
Net current assets
Total
Its grt 2b 25
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25B Unit Linked Disclosures- Fund Balance Sheet Form A-BS(UL) Fund Balance Sheet for the Year Ended 31st March 2011 Kotak Dynamic Floating Rate Fund Floating Rate Fund Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Kotak Guaranteed Floating Rate Fund Kotak Pension Floating Rate Fund Kotak Group Floating Rate Fund
Particulars
Schedule
Previous Year Current Year Previous Year
Sources of Funds 37,165 47 48,282 85,494 82,337 3,158 (1) 3,157 85,494 14.9318 14.1087 14.9538 14.1426 15.0058 106,019 200,707 269,458 98,513 94,661 14.1686 4,201 6,901 12,043 3,758 4,790 (1) (1) (1) (1) 4,201 6,902 12,044 3,759 4,791 101,818 193,806 257,415 94,755 89,871 110,785 4,597 (1) 4,596 115,381 15.3054 106,019 200,707 269,459 98,513 94,661 115,381 44,641 59,956 52,025 6,106 2,593 21,356 18,040 144,342 117,663 26,691 (12) 26,679 144,342 14.4007 58 111 150 54 53 63 77 61,320 140,640 217,284 92,353 92,015 93,962 126,225 1,750 2 10 1,762 1,269 493 493 1,762 10.6187 998 (3) 995 84 911 911 995 10.0597
F-1
Revenue Account
Total
Investments
F-2
Schedules
Current Assets
F-3
F-4
Net current assets
Total
(a) Net Asset as per Balance Sheet (Total Assets less Current Liabilities and Provisions) 85,494 5,725,609 14.9318 14.1087 14.9538 14.1426 7,514,415 13,421,856 19,052,975 106,019 200,707 269,459 98,513 6,564,993 15.0058
94,661 6,681,018 14.1686
115,381 7,538,573 15.3054
144,342 10,023,279 14.4007
1,762 165,909 10.6187
995 98,939 10.0597
Reports
Its grt 2b 25
73
74
Kotak Group 36M FMP 02/01/2011 Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Kotak Group 36M FMP 12/09/2011 Kotak Group 60M FMP 27/11/2013 Kotak Group 50M FMP 27/02/2013 Kotak Group 59M FMP 08/12/2013 Previous Year (7,663) 7,663 12.2201 12.7441 12.1125 12.7786 30,911 10,271 10,411 74,149 78,419 12.3670 1,137 431 326 2,528 2,034 (77) (37) (142) (164) (658) 1,214 468 468 2,692 2,692 29,774 9,840 10,085 71,621 76,385 6,656 57 (4) 53 6,709 11.9144 30,911 10,271 10,411 74,149 78,419 6,709 6,575 2,587 2,062 18,814 16,256 1,292 1,019 7,021 6,967 58 (4) 54 7,021 11.4579 2 (1) 1 1 24,334 7,684 8,349 55,335 62,164 5,416 6,001 22,703 5,318 28,021 27,183 883 (45) 838 28,021 11.9859 25,195 4,154 29,349 28,662 883 (196) 687 29,349 11.5178 12.2201 12.7441 12.1125 2,529,504 805,945 859,504 30,911 10,271 10,411 74,149 5,802,618 12.7786 78,419 6,341,015 12.3670 6,709 563,094 11.9144 7,021 612,733 11.4579 28,021 2,337,863 11.9859 29,349 2,548,138 11.5178
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25B Unit Linked Disclosures - Fund Balance Sheet Form A-BS(UL) Fund Balance Sheet for the Year Ended 31st March 2011
Particulars
Schedule
Sources of Funds
F-1
Revenue Account
Total
Investments
F-2
Current Assets
F-3
F-4
Net current assets
Total
Its grt 2b 25
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25B Unit Linked Disclosures - Fund Balance Sheet Form A-BS(UL) Fund Balance Sheet for the Year Ended 31st March 2011 Kotak Dynamic Balanced Fund Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Kotak Guaranteed Balanced Fund Kotak Pension Balanced Fund Kotak Group Balanced Fund Balanced Fund Previous Year
Particulars
Schedule
Sources of Funds 79,446 (434) 161,839 240,851 235,132 7,594 (1,875) 5,719 240,851 31.7423 29.2501 28.5691 26.7165 29.0353 245,326 1,757,250 1,797,438 6,127,923 2,036 85,895 59,281 265,694 124,499 5,969,092 27.1755 (4,378) (10,311) (35) (36,185) (133,337) 6,414 96,206 59,316 301,879 257,836 243,290 1,671,355 1,738,157 5,862,229 5,844,593 1,700,197 49,842 (72,827) (22,985) 1,677,212 31.8171 245,326 1,757,250 1,797,438 6,127,923 5,969,092 1,677,212 144,375 417,238 343,488 447,471 277,870 326,522 442 3,157 3,229 11,011 10,720 3,011 2,223 195,774 1,239,764 1,327,811 25,146 (113,193) (88,047) 1,239,764 29.0804 100,509 1,336,855 1,450,720 5,669,441 5,680,502 1,347,679 1,041,767 12,020 (22) (68) 11,930 11,819 359 (248) 111 11,930 11.2626 1,872 4 25 1,901 1,703 247 (49) 198 1,901 10.4201
F-1
Revenue Account
Total
Schedules
Investments
F-2
Current Assets
F-3
F-4
Net current assets
Total
(a) Net Asset as per Balance Sheet (Total Assets less Current Liabilities and Provisions) 240,851 7,587,711 31.7423 29.2501 28.5691 26.7165 8,387,178 61,508,774 245,326 1,757,250 1,797,438
6,127,923 29.0353
5,969,092 27.1755
1,677,212 52,714,178 31.8171
1,239,764 42,632,312 29.0804
11,930 1,059,283 11.2626
1,901 182,389 10.4201
67,278,205 211,050,713 219,649,742
Reports
Its grt 2b 25
75
76
Pension Balanced Fund II Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Kotak Dynamic Growth Fund Kotak Guaranteed Growth Fund Kotak Pension Growth Fund Kotak Group Growth Fund Previous Year 22,062 39 (334) 21,767 21,366 524 (123) 401 21,767 11.0189 10.1953 36.8746 33.4432 32.9014 2,953 842,403 852,395 22,894,898 23,122,401 30.5851 1,162 23,918 6,437 791,598 101,570 (83) (2,470) (6,413) (134,962) (705,404) 1,245 26,388 12,850 926,560 806,974 16,444 (2,224) 14,220 379,590 14.0248 1,791 818,485 845,958 22,103,300 23,020,831 365,370 2,953 842,403 852,395 22,894,898 23,122,401 379,590 (13) 331,674 276,399 1,932,656 1,281,831 35,246 20,333 250,399 247,812 9,203 (6,616) 2,587 250,399 13.0131 5 2,017 2,039 54,814 55,394 909 600 2,961 508,712 573,957 20,907,428 21,785,176 343,435 229,466 (173) 173 (173) 173 21,767 1,975,450 11.0189 10.1953 36.8746 33.4432 289,615 22,845,077 2,953 842,403 852,395 22,894,898 32.9014 23,122,401 30.5851 379,590 27,065,663 14.0248 250,399 19,242,033 13.0131 25,487,857 695,864,167 756,002,147
Particulars
Schedule
Sources of Funds
F-1
Revenue Account
Total
Investments
F-2
Current Assets
F-3
F-4
Net current assets
Total
Its grt 2b 25
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25B Unit Linked Disclosures - Fund Balance Sheet Form A-BS(UL) Fund Balance Sheet for the Year Ended 31st March 2011 Kotak Aggressive Growth Fund Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Kotak Group Agressive Growth Fund Kotak Advantage Multiplier Fund Kotak Advantage Plus Fund Kotak Advantage Fund Previous Year
Particulars
Schedule
Sources of Funds 2,993,930 (9,432) 936,139 3,920,637 3,892,223 37,849 (9,435) 28,414 3,920,637 36.3884 32.9485 13.5428 3,613,624 50,076 27,649 49 182 68,388 12.9200 (17,529) (958) (973) 45,178 1,007 1,155 3,585,975 50,027 68,206 3,166 (247) 2,919 2,919 13.6581 3,613,624 50,076 68,388 2,919 689,795 988 988 14,471 11,827 182,531 8,655 (120) (165) (6) (1,611) 152,409 668,733 671,777 10,625 (13,669) (3,044) 668,733 12.8918 2,915,174 (988) (988) 35,725 56,726 (179,604) 517,935 (1,128) 1,128 (1,128) 1,128
F-1
Revenue Account
Total
Schedules
Investments
F-2
Current Assets
F-3
F-4
Net current assets
Total
(a) Net Asset as per Balance Sheet (Total Assets less Current Liabilities and Provisions) 3,920,637 107,744,113 109,674,912 36.3884 32.9485 3,613,624 50,076 3,697,640 13.5428
68,388 5,293,180 12.9200
2,919 213,740 13.6581
668,733 51,872,710 12.8918
Reports
Its grt 2b 25
77
78
Kotak Advantage Multiplier Fund II Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Kotak Advantage Plus Fund II Frontline Equity Fund Pension Frontline Equity Fund Kotak Opportunities Fund 25,127 (85) 10,547 35,589 35,176 806 (393) 413 35,589 13.5588 12.9155 13.4995 12.9798 11.3377 10.1314 46,361 368,439 524,089 509,483 167,303 (365) 2,511 3,014 32,645 5,544 (1,068) (7,288) (7,832) (23,607) (12,420) 703 9,799 10,846 56,252 17,964 4,116 (1,318) 2,799 103,882 11.9841 46,726 365,928 521,075 476,838 161,759 101,083 46,361 368,439 524,089 509,483 167,303 103,882 20,252 12,862 9,341 (1,951) 7,390 20,252 10.7640 8,783 131,886 116,752 24,267 3,210 (158) 207 (112) (886) 1,257 1,219 402 249 48 37,690 237,439 406,080 483,997 163,691 103,791 19,997 5,944,490 16,567 958,089 6,919,146 6,938,673 148,886 (168,413) (19,527) 6,919,146 21.4898 3,047,534 9,063 725,846 3,782,443 3,730,370 118,385 (66,312) 52,073 3,782,443 19.2146 35,589 2,624,758 13.5588 12.9155 13.4995 12.9798 3,589,560 27,292,734 40,377,287 44,937,117 11.3377 46,361 368,439 524,089 509,483 167,303 16,513,301 10.1314 103,882 8,668,283 11.9841 20,252 10.7640 6,919,146 21.4898 3,782,443 1,881,436 321,973,940 196,852,528 19.2146
Particulars
Schedule
Sources of Funds
F-1
Revenue Account
Total
Investments
F-2
Current Assets
F-3
F-4
Net current assets
Total
Its grt 2b 25
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25B Unit Linked Disclosures - Fund Balance Sheet Form A-BS(UL) Fund Balance Sheet for the Year Ended 31st March 2011 Kotak Pension Opportunities Fund Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Classic Opportunities Fund Pension Classic Opportunities Fund Dynamic Floor Fund Kotak Group Dynamic Floor Fund Previous Year
Particulars
Schedule
Sources of Funds 123,309 309 5,104 128,722 129,535 2,032 (2,845) (813) 128,722 12.2770 10.9569 11.7221 10.4366 11.9708 44,934 3,361,009 660,392 612,762 (923) 301,256 138,026 1,605 29,960 68,514 10.7056 (1,002) (207,316) (31,766) (13,737) (2,772) 79 508,572 169,792 15,342 32,732 45,857 3,059,753 522,366 611,157 38,554 7,650,665 352,168 (189,534) 162,634 7,813,299 17.1924 44,934 3,361,009 660,392 612,762 68,514 7,813,299 1,461 92,689 12,361 (12,667) 775 302,221 (109) 8,047 1,585 1,467 164 14,036 7,241 298,135 4,035,142 3,978,895 174,855 (118,608) 56,246 4,035,142 16.0702 43,582 3,260,273 646,446 623,962 67,575 7,497,042 3,729,766 265,817 499 11,957 278,273 279,752 10,593 (12,072) (1,479) 278,273 17.2348 190,570 343 (100) 190,813 202,164 6,992 (18,343) (11,351) 190,813 16.1443
F-1
Revenue Account
Total
Investments
F-2
Schedules
Current Assets
F-3
F-4
Net current assets
Total
(a) Net Asset as per Balance Sheet (Total Assets less Current Liabilities and Provisions) 128,722 10,484,815 12.2770 10.9569 11.7221 10.4366 4,101,007 286,724,377 63,276,554 44,934 3,361,009 660,392 612,762 51,188,080 11.9708
68,514 10.7056
7,813,299 17.1924
4,035,142 6,399,797 454,462,629 251,094,688 16.0702
278,273 17.2348
190,813 16,146,020 11,819,215 16.1443
Reports
Its grt 2b 25
79
80
Kotak Pension Floor Fund Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Dynamic Floor Fund II Pension Floor Fund II Guarantee Fund Pension Guarantee Fund Previous Year 868,964 1,579 8,526 879,069 879,602 27,034 (27,567) (533) 879,069 11.1185 10.5821 10.8856 10.1549 10.7942 10.0298 547,505 3,473,545 1,516,238 817,330 344,934 (2,046) 270,304 303,692 30,671 110,182 (9,729) (130,822) (47,565) (22,762) (13,249) (8,209) 14,636 305,476 11.3473 7,683 401,126 351,257 53,433 123,430 22,845 549,551 3,203,241 1,212,546 786,659 234,752 290,840 547,505 3,473,545 1,516,238 817,330 344,934 305,476 165,459 140,118 27,594 (2,253) 25,341 165,459 10.5435 2,376 80,829 15,172 4,897 382 5,194 1,505 984 6,242 2,719 1,468 619 548 296 544,145 3,386,474 1,498,347 810,965 343,933 299,734 163,658 782,248 1,432 13,341 797,021 763,301 55,820 (22,100) 33,720 797,021 10.8562 344,305 623 1,206 346,134 251,880 102,560 (8,306) 94,254 346,134 10.0920 879,069 79,063,384 11.1185 10.5821 10.8856 10.1549 51,738,748 319,096,011 149,310,996 75,719,046 10.7942 547,505 3,473,545 1,516,238 817,330 344,934 34,390,874 10.0298 305,476 26,920,699 11.3473 165,459 15,693,030 10.5435 797,021 10.8562 346,134 73,416,136 34,297,813 10.0920
Particulars
Schedule
Sources of Funds
F-1
Revenue Account
Total
Investments
F-2
Current Assets
F-3
F-4
Net current assets
Total
Its grt 2b 25
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25B Unit Linked Disclosures -Fund Balance Sheet Form A-BS(UL) Fund Balance Sheet for the Year Ended 31st March 2011 Peak Guarantee Fund I Current Year Previous Year Current Year Previous Year Current Year Discontinued Policy Fund Total Previous Year
Particulars
Schedule
Sources of Funds 218,385 398 2,528 221,311 203,907 26,283 (8,879) 17,404 221,311 11.0097 10.3534 10.0000 164,148 9 90,168 9 (5,286) 0.0000 95,454 9 73,980 164,148 9 (410) 7,258,556 69,863,499 67,439,528 3,569,562 (1,145,591) 2,423,971 69,863,499 295 120,577 164,263 9 62,484,366 49,173,487 108,785 5,176,214 54,458,487 53,032,627 2,785,727 (1,359,863) 1,425,859 54,458,487
F-1
Revenue Account
Total
Investments
F-2
Current Assets
F-3
Schedules
F-4
Net current assets
Total
(a) Net Asset as per Balance Sheet (Total Assets less Current Liabilities and Provisions) 221,311 20,101,483 11.0097 10.3534 10.0000 15,854,484 908 164,148 9
0.0000
69,863,499
54,458,487
Reports
Its grt 2b 25
81
82
Kotak Guaranteed Money Market Fund Current Year 144 1 (5) (4) 136 15 15 30 106 1,455 1,560 1,455 526 46 1,276 46 40 (12) 235 179 480 5 247 34 94 658 19 461 24 28 (12) (12) 15 94 197 4 213 574 5 905 16 1,820 398 1,495 1,893 (73) (49) (122) (2) (56) (23) (3) (21) (41) (1) (3) 91 22 118 140 (49) (49) 13 6 2 11 24 3 55 7 1,982 59 (2,684) (1,008) 1,745 10,738 1,538 2,053 3,591 7,147 73,116 80,264 207 561 5 958 13 1,823 86 10,644 Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Kotak Group Money Market Fund Money Market Fund Pension Money Market Fund II Kotak Dynamic Gilt Fund Previous Year 10,307 4,835 120 (6,256) (72) 1,680 10,614 1,623 2,199 3,822 6,792 66,324 73,116
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25C Unit Linked Disclosures - Fund Revenue Account
Form A-RA(UL)
Fund Revenue Account for the year ended 31st March 2011
Particulars
Schedule
Interest income
Dividend income
Profit on inter fund transfer / sale of investment
Loss on sale of investment
Loss on inter fund transfer / sale of investment
Unrealised Gain/Loss
Total (A)
Fund administration expenses
Fund management expenses
Other charges :
F-5
Total (B)
Net Income for the year (A-B)
Add: Fund revenue account at the beginning of the year
Fund revenue account at the end of the year
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25C Unit Linked Disclosures Fund Revenue Account
Its grt 2b 25
Form ARA(UL)
Fund Revenue Account for the year ended 31st March 2011 Kotak Guaranteed Gilt Fund Current Year 27,490 4,879 85 (6,472) (2,985) 3,969 26,966 4,008 5,750 9,758 17,208 54,563 71,771 54,563 13,717 2,995 42,386 2,995 (1,788) 9,233 14,955 12,177 10,722 4,783 5,722 12,613 5,289 9,667 1,109 8,400 2,950 7,380 328 669 1,338 3,986 5,247 9,233 4,213 2,339 2,287 781 669 24,790 16,011 14,450 6,831 5,324 1,555 2,105 810 706 675 19 317 61 120 181 136 135 (631) (1,628) (71) (567) (90) (28) (12,847) (3,744) (6,615) (1,328) (3,319) (49) 4 1 3 4 23 45 30 21 128 10 10,048 3,167 5,999 1,198 2,650 45 26,642 16,066 14,297 6,801 5,280 320 4 24,518 6,499 1,663 (3,529) (1,614) (3,071) 24,466 4,171 8,246 12,417 12,049 64,520 76,569 2,732 4,295 7,027 13,961 50,559 64,520 (162) 20,988 Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Kotak Pension Gilt Fund Kotak Group Gilt Fund Gilt Fund Kotak Dynamic Bond Fund Previous Year 15,847 8,009 947 (3,326) (327)
Particulars
Schedule
Interest income
Dividend income
Schedules
Total (A)
Other charges :
Total (B)
Net Income for the year (AB)
Reports
Its grt 2b 25
83
84
Kotak Guaranteed Bond Fund Current Year 26,987 7,556 2,014 (4,265) (1,888) (2,804) 27,600 4,601 6,233 10,834 16,766 54,662 71,428 54,662 46,038 23,429 279,427 36,367 23,429 3,551 160,766 18,295 22,609 19,878 118,661 11,801 9,694 16,255 23,691 14,870 93,009 67,757 160,766 7,902 4,254 11,641 9,394 6,696 3,899 5,440 4,614 14,297 8,174 1,711 3,148 4,859 3,886 104 3,990 30,096 32,303 36,133 142,352 107,879 8,745 (1,598) (3,070) (90) (11,682) (3,733) (709) (1) (103) (2,545) (275) (6,305) (378) (743) (8) 102 364 49 211 260 104 104 (4,122) (5,193) (3,034) (19,757) (15,915) (1,275) (5) 2,249 2,620 1,719 9,800 8,074 320 3 11,379 8,532 10,021 43,767 47,058 2,028 44 483 80 (293) (241) (161) 2,087 413 1,887 2,300 (213) (27) (240) 22,291 31,959 27,792 126,530 72,773 9,124 228 2,219 Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Kotak Pension Bond Fund Kotak Group Bond Fund Bond Fund Pension Bond Fund II Previous Year 20 5 (2) (1) 5 27 4 50 54 (27) (27)
Form A-RA(UL)
Particulars
Schedule
Interest income
Dividend income
Total (A)
Other charges :
F-5
Total (B)
Its grt 2b 25
Form A-RA(UL)
Fund Revenue Account for the year ended 31st March 2011 Kotak Dynamic Floating Rate Fund Floating Rate Fund Current Year 79 6 (4) (331) 470 7,802 1,032 3,649 3,757 1,602 991 6,106 2,593 4,681 3,316 18,040 21,356 1,148 4,200 5,348 2,454 15,586 18,040 (8) 73 16 44 60 13 (3) 10 Previous Year 3 3 (3) (3) Current Year 6,363 430 6 (624) (452) 302 6,025 1,156 1,227 2,383 3,642 44,641 48,283 44,641 59,956 52,025 40,597 52,025 44,966 2,593 4,044 7,931 7,059 3,512 2,974 7,431 9,682 2,921 1,446 4,450 6,031 1,713 2,528 1,528 2,981 3,651 1,208 1,229 7,018 15,362 16,741 6,433 5,359 412 801 1,186 224 (30) 369 7,997 (238) (1,346) (590) (415) (162) (673) (1,030) (1,606) (2,720) (569) (641) (817) (1,144) 23 6 42 355 1,049 948 498 286 599 384 7,519 16,441 17,917 6,689 5,906 8,477 8,423 Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Kotak Guaranteed Floating Rate Fund Kotak Pension Floating Rate Fund Kotak Group Floating Rate Fund
Particulars
Schedule
Interest income
Dividend income
Schedules
Total (A)
Other charges :
F-5
Total (B)
Reports
Its grt 2b 25
85
86
Kotak Group 36M FMP 02/01/2011 Current Year 1,552 65 (423) 1,194 106 106 1,088 6,575 7,663 6,575 2,587 2,062 3,842 2,062 1,130 16,256 18,814 2,733 525 932 2,558 186 80 85 514 531 7,993 8,263 16,256 186 80 85 514 531 2,919 605 1,017 3,072 8,524 321 47 47 274 1,019 1,292 (47) (244) 116 (4,764) 688 (312) (1) 110 742 49 49 693 326 1,019 53 7 (1,479) 1,326 162 162 1,164 4,154 5,318 2,914 849 894 7,836 7,836 633 632 2,805 Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Kotak Group 36M FMP 12/09/2011 Kotak Group 60M FMP 27/11/2013 Kotak Group 50M FMP 27/02/2013 Kotak Group 59M FMP 08/12/2013 Previous Year 2,805 163 2,968 165 165 2,803 1,351 4,154
Form A-RA(UL)
Particulars
Schedule
Interest income
Dividend income
Total (A)
Other charges :
F-5
Total (B)
Its grt 2b 25
Form A-RA(UL)
Fund Revenue Account for the year ended 31st March 2011 Kotak Dynamic Balanced Fund Current Year 8,474 1,957 21,492 680 (6,405) (754) (544) 24,900 3,551 3,885 7,436 17,464 144,375 161,839 144,375 417,238 343,488 78,918 343,488 70,291 277,870 447,471 65,457 73,750 273,197 169,601 6,586 71,756 77,406 327,667 3,238 46,337 53,585 237,887 142,553 213,848 781,578 (503,708) 277,870 3,348 25,419 23,821 89,780 71,295 72,043 145,506 350,603 497,268 995,426 36,535 (48,821) 174,492 (116,966) 511,091 30,029 148,167 15,976 1,444 17,420 130,747 195,774 326,522 (29) (3,030) (2) (14,768) (103) (4,094) (5,592) (35,422) (31,078) (133,945) (79,664) (33,022) (18,531) (106) 120,022 216,415 8,770 1,296 10,066 206,347 (10,573) 195,774 1,530 2,189 1,242 4,899 600 2,220 916 29,054 125,186 110,255 384,390 273,896 92,843 79,282 1,234 7,864 6,023 27,161 17,572 11,130 3,798 9,311 97,540 89,671 346,497 272,034 49,061 31,032 177 25 97 4 (121) (12) 152 322 76 339 415 (93) 25 (68) Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Kotak Guaranteed Balanced Fund Kotak Pension Balanced Fund Kotak Group Balanced Fund Balanced Fund Previous Year 10 1 (1) (1) 55 64 4 35 39 25 25
Particulars
Schedule
Interest income
Dividend income
Schedules
Total (A)
Other charges :
F-5
Total (B)
Reports
Its grt 2b 25
87
88
Pension Balanced Fund II Current Year 504 88 441 1 (402) (46) 419 1,005 224 1,101 1,325 (320) (13) (334) (13) 331,674 276,399 276,399 40,325 1,281,831 1,932,656 (13) 55,275 236,074 650,825 19 46,432 30,816 1,466,699 18 31,928 18,161 1,074,486 773,925 1,105,609 3,468,065 (2,186,234) 1,281,831 1 14,504 12,655 392,213 331,684 6 101,708 266,890 2,117,524 4,573,674 25,932 5,129 5,889 11,019 14,913 20,333 35,246 1 1,179 152,038 (500,705) 2,659,788 (483) 1 (2,044) (123) (57,773) (11,779) (489) (20,541) (20,208) (482,391) (395,106) (5,327) (1,090) 13,947 28,447 2,496 6,723 9,219 19,228 1,105 20,333 1 4,694 2,051 23,622 22,289 147 45 1 92,373 106,417 1,885,042 1,228,399 16,070 7,688 9,167 4,943 137,815 89,044 1,654 587 173 173 3 16,880 21,772 1,111,912 981,039 14,359 7,270 Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Kotak Dynamic Growth Fund Kotak Guaranteed Growth Fund Kotak Pension Growth Fund Kotak Group Growth Fund Previous Year 114 27 604 620 (90) (60) 230 1,445 47 5 52 1,393 (1,220) 173
Form A-RA(UL)
Particulars
Schedule
Interest income
Dividend income
Total (A)
Other charges :
F-5
Total (B)
Its grt 2b 25
Form A-RA(UL)
Fund Revenue Account for the year ended 31st March 2011 Kotak Aggressive Growth Fund Current Year 11,139 50,882 485,883 1,708 (107,259) (1,973) 39,633 480,013 69,394 164,275 233,669 246,344 689,795 936,139 689,795 988 988 (548,713) 988 131 11,827 14,471 1,238,508 857 2,644 141,336 22 2,384 90,240 163 389 2,637 11,465 362 11,827 51,096 22 2,221 2,248 1,379,844 879 5,028 14,102 824,245 (59) (3,650) 4,313 (38,944) 51,211 19,659 1,431 21,090 30,121 152,409 182,531 (3,136) (18) (389) (273) (4,714) (64,394) (24) (1,486) (1,499) (13,279) (16,032) (1,901) 40,147 157,655 24,828 9,203 34,031 123,624 28,785 152,409 12,373 532 144 522 1,774 11,623 571,087 417 6,889 7,419 74,663 82,716 29,411 20 401 313 3,726 3,213 10,258 11 3,119 3,307 27,985 37,889 1,128 1,128 Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Kotak Group Agressive Growth Kotak Advantage Multiplier Fund Fund Kotak Advantage Plus Fund Kotak Advantage Fund Previous Year 189 13 349 401 (87) (53) (64) 748 111 211 322 426 702 1,128
Particulars
Schedule
Interest income
Dividend income
Schedules
Total (A)
Other charges :
F-5
Total (B)
Reports
Its grt 2b 25
89
90
Kotak Advantage Multiplier Fund II Current Year 1,914 255 4,746 85 (795) (137) (2,658) 3,410 1,387 258 1,646 1,764 8,783 10,547 8,783 131,886 116,752 80 116,752 15,258 3,210 24,267 8,702 15,134 101,494 21,056 2,028 17,360 28,352 12,338 328 3,147 6,639 8,555 569 737 3,210 3,210 1,700 14,212 21,713 3,782 168 10,731 32,494 129,846 33,394 3,947 6,173 964 5,573 6,538 (365) 207 (158) 3,106 (27,347) 30,495 22,420 3,792 4,338 (233) (3,445) (5,492) (192) (10) (26) (1,139) (8,954) (13,273) (7,253) (62) (1,888) (4) (3) 342 356 12 137 149 207 207 402 381 6,451 1,942 3 38 5,877 49,129 75,678 12,553 105 2,824 8 245 2,670 2,964 2,916 25 653 1 61,158 493,188 2,604 (240,020) (2,713) 273,247 609,020 119,712 257,065 376,777 232,243 725,846 958,089 2,473 20,061 33,023 1,008 94 234 12 21,557 Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Kotak Advantage Plus Fund II Frontline Equity Fund Pension Frontline Equity Fund Kotak Opportunities Fund Previous Year 8,849 15,199 377,521 43,372 (34,047) (727) 482,264 892,431 43,550 131,988 175,538 716,893 8,953 725,846
Form A-RA(UL)
Particulars
Schedule
Interest income
Dividend income
Total (A)
Other charges :
F-5
Total (B)
Its grt 2b 25
Form A-RA(UL)
Fund Revenue Account for the year ended 31st March 2011 Kotak Pension Opportunities Fund Dynamic Floor Fund Current Year 260,260 30,226 430,128 823 (180,099) (10,988) (80,110) 450,240 109,353 336,803 516 775 775 446,156 4,084 298,135 302,219 (63,995) (1,607) 111,441 449,803 49,762 132,808 182,570 267,233 30,902 298,135 8,085 281,532 11,574 102,773 10,292 1,373 14,818 122 (9,324) (698) 1,152 17,735 3,230 2,449 5,679 12,054 (100) 11,954 Previous Year Current Year 39 1 63 2 (10) (27) 1,223 1,291 46 470 Current Year 243 747 4,396 176 (4,201) (41) 5,527 6,846 1,579 1,625 3,203 3,643 1,461 5,104 1,461 92,687 12,361 12,361 775 (12,666) 1,461 80,326 12,361 (13,441) 1,059 81,236 4,886 40,487 677 63,042 4,195 34,767 382 18,194 691 5,720 2,520 161,562 17,247 27,046 1,864 142,247 16,084 27,020 (212) (835) (40) (193) (325) (65,191) (201) (23,483) 338 1,048 71 257 543 65,771 912 18,633 37 12,623 45 3,484 275 5,899 376 1,328 Previous Year Current Year Previous Year Current Year Previous Year Classic Opportunities Fund Pension Classic Opportunities Fund Kotak Group Dynamic Floor Fund Previous Year 1,135 74 67 (734) 611 1,153 423 830 1,253 (100) (100)
Particulars
Schedule
Interest income
Dividend income
Schedules
Total (A)
Other charges :
F-5
Total (B)
Reports
Its grt 2b 25
91
92
Kotak Pension Floor Fund Current Year 26,811 3,736 35,813 197 (29,617) (2,519) 425 34,846 12,854 15,841 28,695 6,151 2,376 8,527 2,376 80,826 15,172 4,897 15,172 382 2,376 65,654 15,172 4,515 12,018 108,008 8,861 50,514 2,897 382 382 7,673 78,949 7,226 41,726 2,638 4,345 29,059 1,635 8,788 259 3,398 11,835 15,233 3,687 1,505 5,192 14,394 173,664 24,033 55,029 3,279 18,920 5,265 8,841 20,405 2,835 2,523 (5) (1,399) (4,241) (1,248) (726) (42) 1,220 2,192 103 584 687 1,505 1,505 (6,404) (68,514) (988) (19,268) (27) (7,052) 1,969 823 235 721 6,237 143,827 437 44,370 116 15,314 67 39,349 61 (16,913) (1,237) 3,162 50,102 7,960 30,006 37,966 12,136 1,206 13,342 939 11,969 296 3,256 45 1,245 24 3,165 7,787 80,959 3,883 24,849 622 10,144 202 22,515 Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Dynamic Floor Fund II Pension Floor Fund II Guarantee Fund Pension Guarantee Fund Previous Year 882 64 75 (284) 2,641 3,378 374 1,798 2,172 1,206 1,206
Form A-RA(UL)
Particulars
Schedule
Interest income
Dividend income
Total (A)
Other charges :
F-5
Total (B)
Its grt 2b 25
Form A-RA(UL)
Fund Revenue Account for the year ended 31st March 2011 Peak Guarantee Fund I Current Year 7,890 1,083 11,734 25 (6,150) (935) 931 14,578 3,456 8,183 11,639 2,939 (410) 2,529 (410) (410) 676 638 38 266 188 4 67,710 (1,580,598) (142,786) (275,156) 5,637,904 1,029,165 2,526,409 3,555,576 2,082,328 5,176,226 7,258,554 13 4,654,825 5 392,431 56 2,521,477 Previous Year Current Year Previous Year Current Year Discontinued Policy Fund Total Previous Year 1,877,046 187,735 3,348,936 129,456 (815,867) (30,659) 5,222,559 9,919,205 694,507 1,462,592 2,157,098 7,762,106 (2,585,880) 5,176,226
Particulars
Schedule
Interest income
Dividend income
Total (A)
Schedules
Other charges :
F-5
Total (B)
Reports
Its grt 2b 25
93
94
Kotak Guaranteed Money Market Fund Current Year 816 238 577 816 24,629 14 32,193 8,106 38,972 20,158 116 175,222 17,469 531 5,600 573 0 199,838 41,556 8,637 24,414 20,731 932 14 14 8,106 20,158 72,824 22,034 26,582 68,275 Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Kotak Group Money Market Fund Money Market Fund Pension Money Market Fund II Kotak Dynamic Gilt Fund Previous Year 86,068 37,295 50,539 72,824 Kotak Guaranteed Money Market Fund Current Year 97 2,039 2,136 2,136 100.00% 0.00% 2,272 100.00% 0.00% 155 100.00% 0.00% 2,272 155 59 59 100.00% 0.00% 2,272 149 59 20,590 665 22,535 22,535 100.00% 0.00% 6 1,280 4,055 4,055 4,055 100.00% 0.00% Previous Year Current Year Previous Year Current Year Previous Year Kotak Group Money Market Fund Money Market Fund Pension Money Market Fund II Current Year 1,344 36,575 365 38,284 38,284 100.00% 0.00% Previous Year 13,041 13,041 13,041 100.00% 0.00% Kotak Dynamic Gilt Fund Current Year 121,104 974 21,901 290 144,269 144,269 100.00% 0.00% Previous Year 88,994 40,871 9,033 1,890 140,788 140,788 100.00% 0.00%
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25D Unit Linked Disclosures - Schedules to Fund Revenue & Fund Balance Sheet Schedules to Fund Balance Sheet Schedule: F-1 POLICYHOLDERS CONTRIBUTION
Particulars
Opening balance
Add: Additions during the year*
Less: Deductions during the year*
Closing balance
* Additions represents units creation and deductions represents units cancellation
Schedules to Fund Revenue Account Schedule: F-2 INVESTMENTS
Particulars
Approved Investments
Government Bonds
Corporate Bonds
Infrastructure Bonds
Equity
Money Market
Mutual Funds
Total
Other Investments
Corporate Bonds
Infrastructure Bonds Equity
Money Market
Mutual Funds
Total
GRAND TOTAL
% of Approved Investments to Total
% of Other Investments to Total
Schedules to Fund Revenue Account Schedule: F - 3
CURRENT ASSETS Kotak Guaranteed Money Market Fund Current Year 2 2 25,002 9,895 4,225 568 7,069 1 50 5,168 1 2 187 2 2,025 25,000 9,893 4,038 566 7,068 1,271 842 2,450 86 7,624 1,821 4,246 Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Kotak Group Money Market Fund Money Market Fund Pension Money Market Fund II Kotak Dynamic Gilt Fund
Its grt 2b 25
Particulars
Accrued Interest
Cash & Bank Balance
Dividend Receivable
Receivable for Sale of Investments
Unit Collection A/c#
Other Current Assets (for Investments)
Total
CURRENT LIABILITIES Kotak Guaranteed Money Market Fund Current Year (0) (0) (1) (0) (185) (1) (0) (185) Previous Year Current Year Previous Year Current Year Previous Year Current Year (0) (0) Kotak Group Money Market Fund Money Market Fund Pension Money Market Fund II Previous Year Kotak Dynamic Gilt Fund Current Year (859) (1) (860) Previous Year (2,436) (2,436)
Particulars
Schedules
Payable for Purchase of Investments
Other Current Liabilities
Unit Payable a/c
Total
Break up of Other Expenses Under ULIP Schedule: F- 5
OTHER EXPENSES* Kotak Guaranteed Money Market Fund Current Year 10 6 15 19 8 0 0 11 Previous Year Current Year Previous Year Kotak Group Money Market Fund Money Market Fund Current Year 252 175 6 28 461 Previous Year 15 7 2 24 Pension Money Market Fund II Current Year 1,330 164 1,495 Previous Year 101 17 118 Kotak Dynamic Gilt Fund Current Year 143 403 8 1,172 236 91 2,052 Previous Year 220 104 1,468 311 96 2,199
Particulars
Policy Administration charge
Reports
Surrender charge
Switching charge
Mortality charge
Rider Premium charge
Partial withdrawal charge
Its grt 2b 25
Miscellaneous charge
Total
95
*Any expense which is 1% of the total expenses incurred should be disclosed as a separate line item. # Represents inter fund receivables or payables, if any
96
Kotak Guaranteed Gilt Fund Current Year 307,210 43,791 58,348 292,652 307,210 215,652 206,178 89,627 76,531 12,227 778 132,363 33,344 70,737 11,401 19,382 103 4 120,224 42,818 52,453 24,498 34,141 11,552 782 208,570 41,766 339,143 319,349 206,178 224,462 76,531 61,772 778 172,340 Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Kotak Pension Gilt Fund Kotak Group Gilt Fund Gilt Fund Kotak Dynamic Bond Fund Previous Year 142,133 192,563 162,356 172,340 Kotak Guaranteed Gilt Fund Current Year 298,896 2,434 52,890 830 355,050 355,050 100.00% 0.00% 346,584 100.00% 0.00% 223,300 100.00% 0.00% 201,150 100.00% 0.00% 346,584 223,300 201,150 6,750 2,850 1,830 20,162 32,245 21,578 13,919 1,295 101,336 101,336 100.00% 0.00% 110,231 1,363 39,165 682 209,441 186,842 138,577 85,440 52,952 22,058 6,822 1,350 83,182 83,182 100.00% 0.00% Previous Year Current Year Previous Year Current Year Previous Year Kotak Pension Gilt Fund Kotak Group Gilt Fund Gilt Fund Current Year 6,713 68 962 7,743 7,743 100.00% 0.00% Previous Year 337 333 30 700 700 100.00% 0.00% Kotak Dynamic Bond Fund Current Year 104,680 111,637 66,001 110,579 1,040 393,936 393,936 100.00% 0.00% Previous Year 16,368 70,689 86,779 35,322 7,960 217,118 217,118 100.00% 0.00%
Particulars
Opening balance
Closing balance
Particulars
Government Bonds
Corporate Bonds
Equity
Money Market
Mutual Funds
Total
Other Investments
Corporate Bonds
Equity
Money Market
Mutual Funds
Total
GRAND TOTAL
CURRENT ASSETS Kotak Guaranteed Gilt Fund Current Year 4,366 2,148 5,004 81 11,600 17,717 7,462 10,513 3,882 3,650 4,658 78 172 7 60 19 19 57 24,470 2,450 3,137 2,450 1,425 981 81 11,118 10,296 188 19,874 4,789 1,538 3,449 1,103 6 4,466 53 4,009 4,169 10,306 2,779 4,554 1,335 2,644 110 25 9,286 5,221 Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Kotak Pension Gilt Fund Kotak Group Gilt Fund Gilt Fund Kotak Dynamic Bond Fund
Its grt 2b 25
Particulars
Accrued Interest
Cash & Bank Balance
Dividend Receivable
Total
Schedules to Fund Revenue Account Schedule: F 4
CURRENT LIABILITIES Kotak Guaranteed Gilt Fund Current Year (2,132) (3) (2,135) (2,438) (1,336) (2,437) (607) (1,087) (1) (2) (1) (1) (113) (2,437) (1,334) (2,436) (606) (974) Previous Year Current Year Previous Year Current Year Previous Year Current Year (36) (0) (36) Kotak Pension Gilt Fund Kotak Group Gilt Fund Gilt Fund Previous Year Kotak Dynamic Bond Fund Current Year (2,462) (4) (2,467) Previous Year (2) (2)
Particulars
Schedules
Unit Payable a/c
Total
Break up of Other Expenses Under ULIP Schedule: F 5
OTHER EXPENSES* Kotak Guaranteed Gilt Fund Current Year 2,284 1,957 1,496 12 5,750 4 8,400 2,352 42 4 2,950 2 1 1,929 1,225 4,113 1,677 7,137 190 49 4 7,380 Previous Year Current Year Previous Year Kotak Pension Gilt Fund Kotak Group Gilt Fund Current Year 328 328 Previous Year 669 669 Gilt Fund Current Year 72 43 5 120 Previous Year 2 1 3 Kotak Dynamic Bond Fund Current Year 2,101 1,118 6 4,377 406 238 8,246 Previous Year 589 2 1 3,144 422 137 4,295
Particulars
Reports
Surrender charge
Switching charge
Mortality charge
Its grt 2b 25
Total
97
98
Kotak Guaranteed Bond Fund Current Year 271,979 134,261 96,669 309,571 271,979 408,073 346,177 1,823,628 1,218,347 330,475 75,521 187,499 43,835 139,713 416,055 294,512 3,346 2,351 241,251 105,731 158,278 1,021,336 732,797 258,300 77,872 36,860 972 42,457 218,227 346,177 327,612 1,218,347 780,062 75,521 6,569 Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Kotak Pension Bond Fund Kotak Group Bond Fund Bond Fund Pension Bond Fund II Previous Year 7,579 1,010 6,569 Kotak Guaranteed Bond Fund Current Year 95,526 102,899 53,848 108,125 1,685 362,083 362,083 100.00% 0.00% 302,284 100.00% 0.00% 432,477 100.00% 0.00% 339,230 100.00% 0.00% 302,284 432,477 339,230 8,340 12,650 45,115 130,044 39,442 571,364 10,600 1,977,772 1,977,772 100.00% 0.00% 110,147 64,828 114,552 280,659 110,362 121,671 136,559 603,094 28,320 115,934 36,027 512,054 49,010 452,147 625,918 127,985 24,360 1,279,420 1,279,420 100.00% 0.00% Previous Year Current Year Previous Year Current Year Previous Year Kotak Pension Bond Fund Kotak Group Bond Fund Bond Fund Current Year 60,976 65,446 34,684 63,423 7,680 232,210 232,210 100.00% 0.00% Previous Year 3,963 28,391 24,331 2,052 58,737 58,737 100.00% 0.00% Pension Bond Fund II Current Year 10,520 11,820 6,279 11,761 40,380 40,380 100.00% 0.00% Previous Year 192 1,694 1,635 401 3,922 3,922 100.00% 0.00%
Particulars
Opening balance
Closing balance
Particulars
Government Bonds
Corporate Bonds
Equity
Money Market
Mutual Funds
Total
Other Investments
Corporate Bonds
Equity
Money Market
Mutual Funds
Total
GRAND TOTAL
CURRENT ASSETS Kotak Guaranteed Bond Fund Current Year 8,275 3,440 9,646 23 21,385 24,538 24,619 30,583 138,878 100,484 103,923 16,938 204 1 204 15 775 42 2,109 15,587 13,610 12,534 55,611 10,191 5,146 940 4 2,625 683 1,341 8,555 36,852 55,334 93,280 14,714 210 2,486 8,064 9,668 9,290 46,401 34,184 5,496 2,182 959 135 Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Kotak Pension Bond Fund Kotak Group Bond Fund Bond Fund Pension Bond Fund II
Its grt 2b 25
Particulars
Accrued Interest
Cash & Bank Balance
Dividend Receivable
Total
CURRENT LIABILITIES Kotak Guaranteed Bond Fund Current Year (2,255) (4) (2,259) (1) (2,737) (5) (12,442) (31) (1) (5) (5) (22) (31) (2,733) (12,421) Previous Year Current Year Previous Year Current Year Previous Year Current Year (1,482) (2) (1,484) Kotak Pension Bond Fund Kotak Group Bond Fund Bond Fund Previous Year (8) (8) Pension Bond Fund II Current Year (249) (0) (249) Previous Year (1) (1)
Particulars
Schedules
Unit Payable a/c
Total
OTHER EXPENSES* Kotak Guaranteed Bond Fund Current Year 2,735 1,778 4 1,657 59 6,233 52 7,902 2,436 74 4 4,254 1 (0) 1,742 912 3,671 3,264 11,550 10 1 76 4 11,641 Previous Year Current Year Previous Year Kotak Pension Bond Fund Kotak Group Bond Fund Current Year 9,328 65 9,393 Previous Year 6,683 13 6,696 Bond Fund Current Year 1,561 3 1,492 91 2 3,148 Previous Year 114 91 6 211 Pension Bond Fund II Current Year 1,887 1,887 Previous Year 50 50
Particulars
Reports
Surrender charge
Switching charge
Mortality charge
Its grt 2b 25
Total
99
100
Kotak Dynamic Floating Rate Fund Floating Rate Fund Current Year 998 1,329 577 1,750 Previous Year 1,033 35 998 Current Year 61,320 4,925 29,081 37,165 61,320 140,640 217,284 92,353 92,015 93,962 126,225 72,440 94,383 80,273 17,370 35,547 122,468 72,545 41,788 17,740 73,544 17,708 44,524 90,205 84,834 91,972 217,284 224,013 92,015 83,038 126,225 113,936 Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Kotak Guaranteed Floating Rate Fund Kotak Pension Floating Rate Fund Kotak Group Floating Rate Fund Kotak Dynamic Floating Rate Fund Current Year 14,456 19,841 21,709 26,331 82,337 82,337 100.00% 0.00% 101,818 100.00% 0.00% 193,806 100.00% 0.00% 101,818 193,806 257,415 257,415 100.00% 0.00% 1,750 5,040 15,278 60,852 39,044 28,054 54,159 67,357 21,918 29,316 940 94,755 94,755 100.00% 0.00% 49,596 44,911 132,374 21,330 7,140 33,883 13,600 21,250 8,576 41,324 25,824 13,098 1,049 89,871 89,871 100.00% 0.00% Previous Year Current Year Previous Year Current Year Previous Year Kotak Guaranteed Floating Rate Fund Kotak Pension Floating Rate Fund Kotak Group Floating Rate Fund Current Year 19,002 28,503 29,100 33,670 510 110,785 110,785 100.00% 0.00% Previous Year 8,011 60,519 31,364 16,679 1,090 117,663 117,663 100.00% 0.00% Floating Rate Fund Current Year 241 321 310 367 30 1,269 1,269 100.00% 0.00% Previous Year 13 45 25 1 84 84 100.00% 0.00%
Particulars
Opening balance
Closing balance
Particulars
Government Bonds
Corporate Bonds
Equity
Money Market
Mutual Funds
Total
Other Investments
Corporate Bonds
Money Market
Mutual Funds
Total
GRAND TOTAL
CURRENT ASSETS Kotak Dynamic Floating Rate Fund Floating Rate Fund Current Year 39 453 1 493 908 1 911 2 Previous Year Current Year 2,536 512 47 63 3,158 4,201 6,902 12,044 3,759 4,791 4,597 26,691 121 81 229 6 59 35 114 110 54 63 137 467 1,946 893 1,814 1,032 22,332 3,943 6,244 9,869 2,806 2,918 3,467 4,245 Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Kotak Guaranteed Floating Rate Fund Kotak Pension Floating Rate Fund Kotak Group Floating Rate Fund
Its grt 2b 25
Particulars
Accrued Interest
Cash & Bank Balance
Dividend Receivable
Total
CURRENT LIABILITIES Kotak Dynamic Floating Rate Fund Current Year (0) (0) (0) (1) (1) (1) (1) (0) (1) (0) (1) (0) (0) Previous Year Current Year Previous Year Current Year Previous Year Current Year (1) (0) (1) Kotak Guaranteed Floating Rate Fund Kotak Pension Floating Rate Fund Kotak Group Floating Rate Fund Previous Year (12) (12) Floating Rate Fund Current Year (0) (0) (0) Previous Year
Particulars
Schedules
Unit Payable a/c
Total
OTHER EXPENSES* Kotak Dynamic Floating Rate Fund Current Year 49 213 2 883 45 36 1,227 43 1,446 76 1,106 2 842 8 4,450 141 2,157 78 1,444 Previous Year Current Year Previous Year 1,972 3,001 1,050 8 6,031 Kotak Guaranteed Floating Rate Fund Kotak Pension Floating Rate Fund Current Year 679 1,017 16 2 1,713 Previous Year 2,428 82 1 16 1 2,528 Kotak Group Floating Rate Fund Current Year 3,645 5 3,650 Previous Year 4,200 4,200 Floating Rate Fund Current Year 28 11 5 44 Previous Year 1 1 1 3
Particulars
Reports
Surrender charge
Switching charge
Mortality charge
Its grt 2b 25
Total
101
102
Kotak Group 36M FMP 02/01/2011 Current Year 24,334 31,997 (7,663) 24,334 7,684 8,349 55,336 62,164 5,416 6,001 5,666 664 1,664 6,828 7,836 585 1,209 30,000 8,349 10,013 62,164 70,000 6,001 7,210 25,195 2,492 22,704 Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Kotak Group 36M FMP 12/09/2011 Kotak Group 60M FMP 27/11/2013 Kotak Group 50M FMP 27/02/2013 Kotak Group 59M FMP 08/12/2013 Previous Year 28,000 2,805 25,195 Kotak Group 36M FMP 02/01/2011 Current Year #DIV/0! #DIV/0! 29,774 100.00% 0.00% 9,840 100.00% 0.00% 29,774 9,840 10,085 10,085 100.00% 0.00% 29,774 5,698 5,841 57,334 71,621 71,621 100.00% 0.00% 4,142 4,244 14,287 15,237 61,148 76,385 76,385 100.00% 0.00% Previous Year Current Year Previous Year Current Year Previous Year Kotak Group 36M FMP 12/09/2011 Kotak Group 60M FMP 27/11/2013 Kotak Group 50M FMP 27/02/2013 Current Year 6,656 6,656 6,656 100.00% 0.00% Previous Year 6,967 6,967 6,967 100.00% 0.00% Kotak Group 59M FMP 08/12/2013 Current Year 10,844 16,339 27,183 27,183 100.00% 0.00% Previous Year 11,566 17,096 28,662 28,662 100.00% 0.00%
Particulars
Opening balance
Closing balance
Particulars
Government Bonds
Corporate Bonds
Equity
Money Market
Mutual Funds
Total
Other Investments
Corporate Bonds
Money Market
Mutual Funds
Total
GRAND TOTAL
CURRENT ASSETS Kotak Group 36M FMP 02/01/2011 Current Year 1,214 468 468 2,692 2,692 57 58 883 0 0 0 0 0 883 1,214 468 468 2,692 2,692 57 58 883 883 Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Kotak Group 36M FMP 12/09/2011 Kotak Group 60M FMP 27/11/2013 Kotak Group 50M FMP 27/02/2013 Kotak Group 59M FMP 08/12/2013
Its grt 2b 25
Particulars
Accrued Interest
Cash & Bank Balance
Dividend Receivable
Total
CURRENT LIABILITIES Kotak Group 36M FMP 02/01/2011 Current Year (77) (37) (142) (164) (658) (77) (37) (142) (164) (658) (0) Previous Year Current Year Previous Year Current Year Previous Year Current Year (0) (4) (4) Kotak Group 36M FMP 12/09/2011 Kotak Group 60M FMP 27/11/2013 Kotak Group 50M FMP 27/02/2013 Previous Year (4) (4) Kotak Group 59M FMP 08/12/2013 Current Year (45) (45) Previous Year (196) (196)
Particulars
Schedules
Unit Payable a/c
Total
OTHER EXPENSES* Kotak Group 36M FMP 02/01/2011 Current Year Previous Year Current Year Previous Year Kotak Group 36M FMP 12/09/2011 Kotak Group 60M FMP 27/11/2013 Current Year Previous Year Kotak Group 50M FMP 27/02/2013 Current Year Previous Year Kotak Group 59M FMP 08/12/2013 Current Year Previous Year
Particulars
Reports
Surrender charge
Switching charge
Mortality charge
Its grt 2b 25
Total
103
104
Kotak Dynamic Balanced Fund Balanced Fund Current Year 1,872 10,294 146 12,020 Previous Year 1,909 37 1,872 Current Year 100,509 21,822 42,884 79,447 100,509 1,336,855 1,450,720 5,669,441 5,680,502 1,347,679 1,041,767 64,911 424,143 340,259 1,240,131 431,923 155,991 57,420 58,483 310,278 487,982 1,229,070 1,828,329 461,904 539,804 106,938 1,450,720 1,302,997 5,680,502 4,284,096 1,041,767 559,383 Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Kotak Guaranteed Balanced Fund Kotak Pension Balanced Fund Kotak Group Balanced Fund Kotak Dynamic Balanced Fund Current Year 20,050 23,822 30,195 131,293 22,342 227,703 7,430 7,430 235,132 96.84% 3.16% 243,290 95.40% 4.60% 11,182 31,423 1,671,355 98.12% 1.88% 11,182 31,423 232,107 1,639,931 1,718,645 19,513 19,513 1,738,157 98.88% 1.12% 810 12,400 14,930 25,239 224,389 192,641 127,862 530,227 531,264 44,466 361,284 431,998 1,483,957 1,887,199 550,577 19,600 5,749,919 112,310 112,310 5,862,229 98.08% 1.92% 20,779 285,067 332,826 1,060,103 12,951 226,564 214,986 748,483 725,200 894,044 1,558,458 1,772,502 806,533 23,970 5,780,707 63,886 63,886 5,844,593 98.91% 1.09% Previous Year Current Year Previous Year Current Year Previous Year Kotak Guaranteed Balanced Fund Kotak Pension Balanced Fund Kotak Group Balanced Fund Current Year 150,066 161,875 223,182 898,625 138,307 76,000 1,648,055 52,142 52,142 1,700,197 96.93% 3.07% Previous Year 87,971 144,809 220,882 628,764 79,406 53,500 1,215,332 55,089 57,390 112,479 1,327,811 91.53% 8.47% Balanced Fund Current Year 1,369 940 1,018 6,522 1,240 355 11,444 375 375 11,819 96.83% 3.17% Previous Year 128 562 890 45 1,625 78 78 1,703 95.44% 4.56%
Particulars
Opening balance
Closing balance
Particulars
Government Bonds
Corporate Bonds
Equity
Money Market
Mutual Funds
Total
Other Investments
Corporate Bonds
Money Market
Mutual Funds
Total
GRAND TOTAL
CURRENT ASSETS Kotak Dynamic Balanced Fund Balanced Fund Current Year 85 6 0 267 359 207 3 247 37 Previous Year Current Year 2,305 1,727 5 3,411 146 7,594 6,414 96,206 59,316 301,879 257,836 49,842 25,146 587 878 4,107 816 11,536 364 2,590 2,445 52,465 164,794 97,902 21,692 2,451 19 28 69 90 30 483 11,143 19,256 13,107 39,205 10,692 5,829 2,899 31,700 35,925 123,093 109,103 17,063 14,276 Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Kotak Guaranteed Balanced Fund Kotak Pension Balanced Fund Kotak Group Balanced Fund
Its grt 2b 25
Particulars
Accrued Interest
Cash & Bank Balance
Dividend Receivable
Total
CURRENT LIABILITIES Kotak Dynamic Balanced Fund Current Year (1,874) (1) (1,875) (4,378) (10,311) (35) (36,185) (133,337) (1) (9) (35) (31) (75) (4,377) (10,302) 0 (36,154) (133,262) Previous Year Current Year Previous Year Current Year Previous Year Current Year (72,819) (7) (72,827) Kotak Guaranteed Balanced Fund Kotak Pension Balanced Fund Kotak Group Balanced Fund Previous Year (113,182) (11) (113,193) Balanced Fund Current Year (247) (0) (247) Previous Year (49) (49)
Particulars
Schedules
Unit Payable a/c
Total
OTHER EXPENSES* Kotak Dynamic Balanced Fund Current Year 331 1,137 0 1,566 430 421 3,886 494 3,238 468 1,637 1 10,272 156 46,338 181 19,301 457 16,609 Previous Year Current Year Previous Year 24,274 16,122 13,049 140 53,585 Kotak Guaranteed Balanced Fund Kotak Pension Balanced Fund Current Year 71,427 164,566 25 1,787 84 237,887 Previous Year 105,586 34,915 1,968 84 142,553 Kotak Group Balanced Fund Current Year 1,012 432 1,443 Previous Year 1,275 21 1,296 Balanced Fund Current Year 110 179 49 1 339 Previous Year 10 21 4 35
Particulars
Reports
Surrender charge
Switching charge
Mortality charge
Its grt 2b 25
Total
105
106
Pension Balanced Fund II Current Year 2,961 19,807 706 22,062 2,961 508,712 573,957 20,907,428 21,785,176 343,435 229,466 42 178,077 178,375 5,592,127 2,861,742 26,115 22,182 3,003 112,833 229,728 4,714,379 7,335,184 140,084 175,510 573,957 522,604 21,785,176 17,311,734 229,466 76,137 (173) (173) Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Kotak Dynamic Growth Fund Kotak Guaranteed Growth Fund Kotak Pension Growth Fund Kotak Group Growth Fund Previous Year 5,127 1,231 6,531 (173) Pension Balanced Fund II Current Year 2,055 1,305 3,730 11,733 1,488 380 20,692 674 674 21,366 96.84% 3.16% 1,791 95.56% 4.44% 80 33,877 818,485 95.86% 4.14% 80 33,877 1,712 784,608 794,130 51,828 51,828 845,958 93.87% 6.13% 600 60 4,195 9,565 911 601,259 591,730 46 87,379 116,231 4,027,915 9,205,401 1,310,915 72,325 21,556,128 547,172 547,172 22,103,300 97.52% 2.48% 636 37,282 54,802 4,434,297 59 53,893 21,802 2,505,275 1,863,309 3,425,020 4,309,352 9,066,658 3,995,818 40,000 22,700,157 320,674 320,674 23,020,831 98.61% 1.39% Previous Year Current Year Previous Year Current Year Previous Year Kotak Dynamic Growth Fund Kotak Guaranteed Growth Fund Kotak Pension Growth Fund Current Year 47,558 36,829 80,299 150,506 34,114 7,245 356,551 8,818 8,818 365,370 97.59% 2.41% Previous Year 34,842 41,432 33,505 97,426 34,691 2,440 244,336 3,476 3,476 247,812 98.60% 1.40% Kotak Group Growth Fund Current Year #DIV/0! #DIV/0! Previous Year #DIV/0! #DIV/0!
Particulars
Opening balance
Closing balance
Particulars
Government Bonds
Corporate Bonds
Equity
Money Market
Mutual Funds
Total
Other Investments
Corporate Bonds
Money Market
Mutual Funds
Total
GRAND TOTAL
CURRENT ASSETS Pension Balanced Fund II Current Year 175 28 0 320 524 1,245 26,388 12,850 926,560 806,974 16,444 9,203 5 2,040 4,713 60,108 600 9,215 505,951 249,718 10,608 2,442 22 334 435 5 4 1,221 11,955 3,620 33,547 148,248 517 3,397 19 5,196 7,190 382,016 348,465 5,314 2,760 Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Kotak Dynamic Growth Fund Kotak Guaranteed Growth Fund Kotak Pension Growth Fund Kotak Group Growth Fund
Its grt 2b 25
Particulars
Accrued Interest
Cash & Bank Balance
Dividend Receivable
Total
CURRENT LIABILITIES Pension Balanced Fund II Current Year (122) (0) (122) (83) (2,470) (6,413) (134,962) (705,404) (2) (2) (9) (118) (349) (81) (2,468) (6,404) (134,843) (705,055) Previous Year Current Year Previous Year Current Year Previous Year Current Year (2,222) (2) (2,224) Kotak Dynamic Growth Fund Kotak Guaranteed Growth Fund Kotak Pension Growth Fund Previous Year (6,608) (8) (6,616) Kotak Group Growth Fund Current Year Previous Year
Particulars
Schedules
Unit Payable a/c
Total
OTHER EXPENSES* Pension Balanced Fund II Current Year 1,102 1,102 18 2 5,941 2,533 820 31,928 20,045 18 2,587 Previous Year Current Year Previous Year 3,140 4,962 6,184 2,904 971 18,161 Kotak Dynamic Growth Fund Kotak Guaranteed Growth Fund Current Year 268,172 672,785 8 132,061 1,460 1,074,486 Previous Year 341,151 265,522 9 166,159 1,084 773,925 Kotak Pension Growth Fund Current Year 5,889 5,889 Previous Year 6,722 1 6,723 Kotak Group Growth Fund Current Year Previous Year 5 5
Particulars
Reports
Surrender charge
Switching charge
Mortality charge
Its grt 2b 25
Total
107
108
Kotak Aggressive Growth Fund Kotak Advantage Fund Current Year (1,128) (1,128) Previous Year 9,659 344 11,131 (1,128) Current Year 2,915,174 757,149 678,393 2,993,930 2,915,174 (988) (988) 35,726 56,726 (179,604) 517,935 415,655 2,507 21,000 10,223 714,608 444,858 1,129,601 339 1,085 17,068 44,100 2,201,228 (988) 1,180 56,726 65,864 517,935 918,693 Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Kotak Group Agressive Growth Fund Kotak Advantage Multiplier Fund Kotak Advantage Plus Fund Kotak Aggressive Growth Fund Current Year 3,512,046 169,450 11,000 3,692,496 199,726 199,726 3,892,223 94.87% 5.13% 3,585,975 92.30% 7.70% 276,221 #DIV/0! #DIV/0! 276,221 3,309,753 #DIV/0! #DIV/0! 24,390 49,730 3,127,523 90,445 7,175 14,111 5,039 330 49,494 533 533 50,027 98.93% 1.07% 15,850 9,006 1,815 13,834 4,270 4,698 13,437 37,221 5,863 950 66,439 1,767 1,767 68,206 97.41% 2.59% Previous Year Current Year Previous Year Current Year Previous Year Kotak Group Agressive Growth Fund Kotak Advantage Multiplier Fund Kotak Advantage Plus Fund Current Year #DIV/0! #DIV/0! Previous Year 27,737 96,508 65,611 364,160 84,216 16,150 654,382 17,396 17,396 671,777 97.41% 2.59% Kotak Advantage Fund Current Year #DIV/0! #DIV/0! Previous Year #DIV/0! #DIV/0!
Particulars
Opening balance
Closing balance
Particulars
Government Bonds
Corporate Bonds
Equity
Money Market
Mutual Funds
Total
Other Investments
Corporate Bonds
Money Market
Mutual Funds
Total
GRAND TOTAL
CURRENT ASSETS Kotak Aggressive Growth Fund Kotak Advantage Fund Current Year Previous Year Current Year 580 9,317 126 27,559 267 37,849 45,178 1,007 1,155 3,166 10,625 8,923 34 34 518 519 3 5 6 47 32,715 6 6 2,641 3 3,540 964 1,110 10,056 Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Kotak Group Agressive Growth Fund Kotak Advantage Multiplier Fund Kotak Advantage Plus Fund
Its grt 2b 25
Particulars
Accrued Interest
Cash & Bank Balance
Dividend Receivable
Total
CURRENT LIABILITIES Kotak Aggressive Growth Fund Current Year (9,435) (9,435) (17,529) (957) (973) (78) (0) (164) (17,451) (957) (809) Previous Year Current Year Previous Year Current Year Previous Year Current Year (247) (247) Kotak Group Agressive Growth Fund Kotak Advantage Multiplier Fund Kotak Advantage Plus Fund Previous Year (12,059) (1,610) (13,669) Kotak Advantage Fund Current Year Previous Year
Particulars
Schedules
Unit Payable a/c
Total
OTHER EXPENSES* Kotak Aggressive Growth Fund Current Year 15,258 98,992 13 30,841 16,243 2,929 164,275 3,112 90,240 18,735 33,276 6 14,981 20,130 Previous Year Current Year Previous Year Kotak Group Agressive Growth Fund Kotak Advantage Multiplier Fund Current Year 32 131 163 Previous Year 180 209 389 Kotak Advantage Plus Fund Current Year 965 466 1,431 Previous Year 8,183 1,020 9,203 Kotak Advantage Fund Current Year Previous Year 157 54 211
Particulars
Reports
Surrender charge
Switching charge
Mortality charge
Its grt 2b 25
Total
109
110
Kotak Advantage Multiplier Fund II Frontline Equity Fund Current Year 163,691 339,308 19,003 483,997 163,691 103,791 19,997 7,146 2,601 70 170,837 86,396 20,066 19,997 3,047,534 3,056,271 159,315 5,944,490 Previous Year Current Year Previous Year Current Year Current Year 37,690 95 12,658 25,127 37,690 237,439 406,080 14,829 182,347 282,691 2,867 13,707 34,724 49,652 406,080 654,047 Previous Year Current Year Previous Year Kotak Advantage Plus Fund II Pension Frontline Equity Fund Kotak Opportunities Fund Previous Year 490,523 2,707,307 150,296 3,047,534 Kotak Advantage Multiplier Fund II Frontline Equity Fund Current Year 418,474 23,038 11,345 452,857 13,521 3,923 365,928 98.93% 2.55% 1.07% 13,521 521,075 97.41% 2.59% 23,980 23,980 476,838 94.97% 5.03% 2,192 3,094 4,653 132,420 1,751 6,050 150,160 11,600 11,600 161,759 92.83% 7.17% Previous Year Current Year 11,847 1,040 7,865 10,147 3,912 34,811 365 365 35,176 98.96% 1.04% 46,726 97.45% 1,191 1,191 3,923 45,535 362,005 507,554 190 13,180 5,396 45,345 31,484 25,532 103,939 284,030 6,552 136,551 74,424 3,582 74,268 32,010 4,283 1,903 72,426 Previous Year Current Year Previous Year Kotak Advantage Plus Fund II Pension Frontline Equity Fund Current Year 90,491 2,971 2,370 95,832 5,252 5,252 101,083 94.80% 5.20% Previous Year 970 255 9,720 355 470 11,770 852 240 1,092 12,862 91.51% 8.49% Kotak Opportunities Fund Current Year 5,892,785 409,574 6,302,359 636,314 636,314 6,938,673 90.83% 9.17% Previous Year 23,558 78,354 63,670 2,933,443 92,367 15,870 3,207,262 523,108 523,108 3,730,370 85.98% 14.02%
Particulars
Opening balance
Closing balance
Particulars
Government Bonds
Corporate Bonds
Equity
Money Market
Mutual Funds
Total
Other Investments
Corporate Bonds
Money Market
Mutual Funds
Total
GRAND TOTAL
CURRENT ASSETS Kotak Advantage Multiplier Fund II Frontline Equity Fund Current Year 28 52,423 13 3,788 56,252 17,964 4,116 9,341 401 49 148,886 1,091 99,586 3 2,397 17,405 3,018 9,248 46,291 100,028 4,900 9,062 118,385 158 5 44 612 4,395 Previous Year Current Year Previous Year Current Year Previous Year Current Year 768 16 2 20 806 703 9,799 10,846 21 443 1,699 3 17 38 8 15 196 671 9,323 8,913 Previous Year Current Year Previous Year Kotak Advantage Plus Fund II Pension Frontline Equity Fund Kotak Opportunities Fund
Its grt 2b 25
Particulars
Accrued Interest
Cash & Bank Balance
Dividend Receivable
Total
CURRENT LIABILITIES Kotak Advantage Multiplier Fund II Frontline Equity Fund Current Year (23,606) (23,606) (12,420) (42) (12,378) Previous Year Current Year (1,318) (1,318) Current Year (394) (0) (394) (1,068) (7,288) (7,832) (617) (0) (451) (7,287) (7,832) Previous Year Current Year Previous Year Kotak Advantage Plus Fund II Pension Frontline Equity Fund Previous Year (1,929) (22) (1,951) Kotak Opportunities Fund Current Year (168,413) (168,413) Previous Year (66,072) (240) (66,312)
Particulars
Schedules
Unit Payable a/c
Total
Break up of Other Expenses Under ULIP Schedule: F - 5
OTHER EXPENSES* Kotak Advantage Multiplier Fund II Current Year 190 69 258 328 97 412 3,147 231 2,735 Previous Year Current Year Previous Year 5,756 883 6,639 Kotak Advantage Plus Fund II Frontline Equity Fund Current Year 3,323 206 4,029 988 9 8,555 Previous Year 232 12 248 77 569 Pension Frontline Equity Fund Current Year 5,573 5,573 Previous Year 137 137 Kotak Opportunities Fund Current Year 152,232 5,532 14 94,954 3,487 846 257,065 Previous Year 68,279 2 4 61,319 2,384 131,988
Particulars
Reports
Surrender charge
Switching charge
Mortality charge
Its grt 2b 25
Total
111
112
Kotak Pension Opportunities Fund Dynamic Floor Fund Current Year 3,729,766 4,451,791 684,515 7,497,042 3,729,766 471,873 2,717,987 1,483,652 190,570 146,239 70,992 265,817 Previous Year Current Year 67,815 240 67,575 Current Year 43,582 83,544 3,816 123,309 43,582 3,260,273 646,446 623,962 6,826 84,379 20,741 22,525 50,408 2,698,205 667,187 578,912 646,446 67,575 Previous Year Current Year Previous Year Current Year Previous Year Classic Opportunities Fund Pension Classic Opportunities Fund Kotak Group Dynamic Floor Fund Previous Year 217,393 26,823 190,570 Kotak Pension Opportunities Fund Current Year 109,955 5,580 1,870 117,406 12,129 12,129 129,535 90.64% 9.36% 45,857 85.54% 14.46% 6,630 281,066 3,059,753 90.81% 9.19% 6,630 281,066 39,227 2,778,687 448,301 74,065 74,065 522,366 85.82% 14.18% 329 53,630 410 221,556 6,428 36,372 2,503,501 405,202 11,581 522,268 23,184 9,330 554,782 56,375 56,375 611,157 90.78% 9.22% 2,526 24,680 1,875 4 29,501 1,274 490 33,144 5,410 5,410 38,554 85.97% 14.03% Previous Year Current Year Previous Year Current Year Previous Year Classic Opportunities Fund Pension Classic Opportunities Fund Dynamic Floor Fund Current Year 920,283 1,527,086 1,717,063 2,463,251 831,561 98,400 7,557,644 93,020 93,020 7,650,665 98.78% 1.22% Previous Year 292,659 393,821 687,382 1,955,108 547,922 4,029 3,880,921 97,974 97,974 3,978,895 97.54% 2.46% Kotak Group Dynamic Floor Fund Current Year 39,806 48,591 42,034 94,012 40,391 11,365 276,199 3,553 3,553 279,752 98.73% 1.27% Previous Year 48,153 9,605 14,060 99,186 24,741 1,520 197,265 4,899 4,899 202,164 97.58% 2.42%
Particulars
Opening balance
Closing balance
Particulars
Government Bonds
Corporate Bonds
Equity
Money Market
Mutual Funds
Total
Other Investments
Corporate Bonds
Money Market
Mutual Funds
Total
GRAND TOTAL
CURRENT ASSETS Kotak Pension Opportunities Fund Dynamic Floor Fund Current Year 164,678 94,744 396 92,168 182 352,168 174,855 7,424 10,593 12,251 5,059 244 14 112,270 582 4,565 11 343 6,992 42,666 4,938 2,073 Previous Year Current Year Previous Year 65 32,502 165 32,732 Current Year 6 337 43 1,646 2,032 79 508,572 169,792 15,342 1,585 22,868 8,701 807 218 2 484,783 167,107 6,403 77 115 1,100 20 Previous Year Current Year Previous Year Current Year Previous Year Classic Opportunities Fund Pension Classic Opportunities Fund Kotak Group Dynamic Floor Fund
Its grt 2b 25
Particulars
Accrued Interest
Cash & Bank Balance
Dividend Receivable
Total
CURRENT LIABILITIES Kotak Pension Opportunities Fund Current Year (2,845) (0) (2,845) (1,002) (207,316) (31,766) (13,738) (2,772) (533) (400) (78) (469) (207,316) (31,366) (13,738) (2,694) Previous Year Current Year Previous Year Current Year Previous Year Current Year (189,495) (39) (189,534) Classic Opportunities Fund Pension Classic Opportunities Fund Dynamic Floor Fund Previous Year (118,406) (202) (118,608) Kotak Group Dynamic Floor Fund Current Year (12,071) (1) (12,072) Previous Year (18,335) (8) (18,343)
Particulars
Schedules
Unit Payable a/c
Total
OTHER EXPENSES* Kotak Pension Opportunities Fund Current Year 1,624 1 1,625 677 3 26,656 10,177 35 63,042 358 677 25,815 Previous Year Current Year Previous Year 1,808 15 1,588 783 1 4,195 Classic Opportunities Fund Pension Classic Opportunities Fund Current Year 34,765 2 34,767 Previous Year 470 470 Dynamic Floor Fund Current Year 140,894 44,028 12 131,753 19,193 923 336,803 Previous Year 36,418 24,885 2 52,352 19,034 117 132,808 Kotak Group Dynamic Floor Fund Current Year 2,412 37 2,449 Previous Year 815 15 830
Particulars
Reports
Surrender charge
Switching charge
Mortality charge
Its grt 2b 25
Total
113
114
Kotak Pension Floor Fund Current Year 544,145 418,572 93,753 868,964 544,145 3,386,474 1,498,347 810,965 343,933 299,734 163,658 42,427 212,064 52,968 54,185 5,891 29,399 2,347 586,572 2,100,192 1,551,315 521,216 349,824 165,475 166,005 471,972 34,030 782,248 1,498,347 343,933 163,658 344,305 Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Dynamic Floor Fund II Pension Floor Fund II Guarantee Fund Pension Guarantee Fund Previous Year 355,246 10,941 344,305 Kotak Pension Floor Fund Current Year 114,311 131,968 136,423 371,626 108,209 3,110 865,647 13,956 13,956 879,602 98.41% 1.59% 549,551 97.22% 2.78% 15,286 44,072 3,203,241 98.62% 1.38% 15,286 44,072 34,835 34,835 1,212,546 97.13% 2.87% 534,265 3,159,169 1,177,711 2,470 40,285 12,170 72,397 409,386 165,667 127,183 6,910 776,210 10,449 10,449 786,659 98.67% 1.33% 257,645 1,165,879 680,463 276,985 47,148 614,582 130,597 119,522 72,448 574,343 103,839 132,069 82,157 354,694 84,975 113,541 22,388 21,362 17,602 123,171 37,189 6,750 228,462 6,290 6,290 234,752 97.32% 2.68% Previous Year Current Year Previous Year Current Year Previous Year Dynamic Floor Fund II Pension Floor Fund II Guarantee Fund Current Year 43,625 41,811 64,050 96,530 40,418 755 287,189 3,651 3,651 290,840 98.74% 1.26% Previous Year 21,866 15,158 7,858 67,791 15,800 6,600 135,073 3,325 1,720 5,045 140,118 96.40% 3.60% Pension Guarantee Fund Current Year 109,182 100,712 157,150 266,917 119,263 753,224 10,077 10,077 763,301 98.68% 1.32% Previous Year 9,644 34,026 13,518 135,615 41,793 10,400 244,996 6,884 6,884 251,880 97.27% 2.73%
Particulars
Opening balance
Closing balance
Particulars
Government Bonds
Corporate Bonds
Equity
Money Market
Mutual Funds
Total
Other Investments
Corporate Bonds
Equity
Money Market
Mutual Funds
Total
GRAND TOTAL
CURRENT ASSETS Kotak Pension Floor Fund Current Year 13,595 5,195 61 8,183 27,034 7,683 401,126 351,257 53,433 123,430 22,845 27,594 984 2,720 618 297 55,820 40,375 18,441 5,393 12,603 29 170 69 42 11 15 6 41 12 622 102,560 248 299,829 339,961 21,710 121,178 11,853 25,596 30,148 99,807 6,422 60,752 8,507 13,240 1,623 5,585 1,695 13,029 2,119 Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Dynamic Floor Fund II Pension Floor Fund II Guarantee Fund Pension Guarantee Fund
Its grt 2b 25
Particulars
Accrued Interest
Cash & Bank Balance
Dividend Receivable
Total
CURRENT LIABILITIES Kotak Pension Floor Fund Current Year (27,562) (4) (27,567) (9,729) (130,822) (47,565) (22,762) (13,249) (13) (611) (4) (218) (9,729) (130,808) (46,954) (22,759) (13,031) Previous Year Current Year Previous Year Current Year Previous Year Current Year (8,207) (1) (8,209) Dynamic Floor Fund II Pension Floor Fund II Guarantee Fund Previous Year (2,207) (46) (2,253) Pension Guarantee Fund Current Year (22,097) (4) (22,100) Previous Year (8,127) (179) (8,306)
Particulars
Schedules
Unit Payable a/c
Total
OTHER EXPENSES* Kotak Pension Floor Fund Current Year 15,841 0 15,841 7,673 35,407 9,619 40 78,949 182 7,673 33,701 3,333 22 2 2,978 882 9 7,226 Previous Year Current Year Previous Year Dynamic Floor Fund II Pension Floor Fund II Current Year 41,726 41,726 Previous Year 2,638 2,638 Guarantee Fund Current Year 6,550 138 4,111 1,036 11,835 Previous Year 350 181 53 584 Pension Guarantee Fund Current Year 25,975 4,031 30,006 Previous Year 1,441 357 1,798
Particulars
Reports
Surrender charge
Switching charge
Mortality charge
Its grt 2b 25
Total
115
116
Peak Guarantee Fund I Current Year 164,263 75,915 21,793 218,385 164,263 9 62,484,366 3,396 11,999,093 167,659 9 25,309,971 49,173,487 Previous Year Current Year Previous Year Current Year Discontinued Policy Fund Total Previous Year 32,862,329 23,600,170 7,289,012 49,173,487 Peak Guarantee Fund I Current Year 31,362 27,666 45,484 66,899 25,970 4,000 201,382 2,525 2,525 203,907 98.76% 1.24% 3,190 4,915 73,980 93.36% 6.64% 1,725 69,065 3,050 #DIV/0! #DIV/0! 12,012 33,739 4,079 16,185 Previous Year Current Year Previous Year #DIV/0! #DIV/0! Discontinued Policy Fund Current Year 7,197,220 9,879,076 10,066,379 31,402,582 6,226,697 472,385 65,244,340 2,195,189 2,195,189 67,439,528 96.74% 3.26% Total Previous Year 4,367,128 7,126,925 9,204,371 23,555,849 6,751,852 335,177 51,341,302 1,628,785 62,540 1,691,325 53,032,627 96.81% 3.19%
Particulars
Opening balance
Closing balance
Particulars
Government Bonds
Corporate Bonds
Equity
Money Market
Mutual Funds
Total
Other Investments
Corporate Bonds
Equity
Money Market
Mutual Funds
Total
GRAND TOTAL
CURRENT ASSETS Peak Guarantee Fund I Current Year 3,727 18,072 10 4,474 26,283 95,454 9 3,569,562 294 8,821 1,228,682 2 4,870 1,034 429,235 119,615 2,785,727 94,459 9 1,358,590 1,512,093 699 968,600 723,750 Previous Year Current Year Previous Year Current Year Previous Year Discontinued Policy Fund Total
Its grt 2b 25
Particulars
Accrued Interest
Cash & Bank Balance
Dividend Receivable
Total
CURRENT LIABILITIES Peak Guarantee Fund I Current Year (8,878) (1) (8,879) (5,286) (170) (5,116) Previous Year Current Year Previous Year Discontinued Policy Fund Current Year (1,145,057) (534) (1,145,591) Total Previous Year (1,352,901) (6,962) (1,359,863)
Particulars
Schedules
Unit Payable a/c
Total
OTHER EXPENSES* Peak Guarantee Fund I Current Year 4,523 3,656 4 8,183 638 276 362 Previous Year Discontinued Policy Fund Current Year Previous Year Current Year 893,544 1,041,970 101 513,300 63,514 13,981 2,526,410 Total Previous Year 657,364 383,328 30 368,950 46,086 6,840 1,462,599
Particulars
Reports
Surrender charge
Switching charge
Mortality charge
Its grt 2b 25
Total
117
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures DISCLOSURES FOR ULIP BUSINESS A)
G
Investment Management
Activities outsourced Custody of Equity & Debt securities was with Deutsche Bank for part of the year and then with Standard Chartered Bank
Fee paid for various activities charged to Policyholders Account Custody fees ` 8,326 (2010- 7131)
G
Basis of payment of fees Current year - The custodian fees for part of the year are based on a fixed percentage of the value of the debt and equity investments, and for the balance period based on a fixed amount as agreed with the custodian. Previous year - The custodian fees are paid on the basis of a fixed percentage of the value of the debt and equity investments. B) There are no Unclaimed redemption of Units During the year None of the Assets of the fund has been considered as doubtful and hence no provision for Doubtful debt has been made during the year
C)
118
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Reports
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Fund Performance of Unit Linked Funds as on 31.03.2011 (Absolute Growth % ) Sr Fund Names No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Kotak Guaranteed Money Market Fund Kotak Group Money Market Fund Money Market Fund Pension Money Market Fund II Kotak Dynamic Gilt Fund Kotak Guaranteed Gilt Fund Kotak Pension Gilt Fund Kotak Group Gilt Fund Gilt Fund Kotak Dynamic Bond Fund Kotak Guaranteed Bond Fund Kotak Pension Bond Fund Kotak Group Bond Fund Bond Fund Pension Bond Fund II Kotak Dynamic Floating Rate Fund Kotak Guaranteed Floating Rate Fund Kotak Pension Floating Rate Fund Kotak Group Floating Rate Fund Floating Rate Fund Kotak Group 36M FMP 02/01/2011 Kotak Group 36M FMP 12/09/2011 Kotak Group 60M FMP 27/11/2013 Kotak Group 50M FMP 27/02/2013 Kotak Group 59M FMP 08/12/2013 Kotak Dynamic Balanced Fund Kotak Guaranteed Balanced Fund Kotak Pension Balanced Fund Kotak Group Balanced Fund Balanced Fund Pension Balanced Fund II Kotak Dynamic Growth Fund Year of Inception 2003-04 2003-04 2009-10 2009-10 2003-04 2003-04 2003-04 2003-04 2009-10 2004-05 2004-05 2004-05 2004-05 2009-10 2009-10 2004-05 2004-05 2004-05 2004-05 2009-10 2007-08 2008-09 2008-09 2008-09 2008-09 2003-04 2003-04 2003-04 2003-04 2009-10 2009-10 2003-04 2011 5.70% 44.40% 5.02% 5.27% 6.79% 6.54% 6.66% 7.01% 6.11% 6.90% 6.94% 6.85% 8.37% 6.22% 7.08% 5.83% 5.73% 5.91% 6.28% 5.56% 3.52% 5.21% 3.33% 3.98% 4.06% 8.91% 6.93% 6.84% 9.41% 8.48% 8.08% 10.26% 2010 9.12% 8.81% NA NA 6.06% 5.77% 5.83% 6.50% NA 9.35% 9.68% 9.58% 11.59% NA NA 4.82% 4.90% 4.67% 5.33% NA 8.32% 8.84% 10.61% 9.61% 9.88% 36.85% 23.11% 22.64% 34.88% NA NA 44.21% 2009 12.98% 12.71% NA NA 12.16% 11.68% 12.42% 12.94% NA 14.68% 13.83% 15.12% 14.52% NA NA 8.92% 9.07% 9.07% 9.39% NA 11.54% NA NA NA NA -19.14% -13.06% -12.57% -18.75% NA NA -27.25% *Returns 2008 10.51% 10.40% NA NA 8.46% 8.49% 10.34% 8.69% NA 11.40% 10.99% 11.13% 11.63% NA NA 7.58% 7.41% 7.89% 8.11% NA NA NA NA NA NA 20.15% 17.52% 18.12% 21.03% NA NA 22.00% 2007 9.11% 8.95% NA NA 3.67% 4.09% 3.90% 4.66% NA 5.36% 5.86% 5.47% 5.13% NA NA 7.05% 7.20% 7.10% 7.58% NA NA NA NA NA NA 10.81% 9.12% 10.37% 11.32% NA NA 11.61% 2006 6.28% 6.10% NA NA 4.72% 4.69% 4.72% 4.71% NA 4.41% 4.42% 4.36% 4.46% NA NA 4.98% 5.03% 5.08% 5.14% NA NA NA NA NA NA 38.17% 35.45% 35.28% 37.04% NA NA 46.93% Inception 82.69% 147.25% 5.73% 6.25% 61.00% 60.18% 64.02% 65.05% 6.70% 71.61% 71.08% 72.21% 77.33% 7.59% 8.16% 49.24% 49.46% 49.98% 52.97% 6.13% 26.50% 27.44% 27.79% 19.14% 19.86% 218.00% 185.18% 189.83% 217.60% 12.83% 9.99% 267.86%
Its grt 2b 25
119
Sr Fund Names No 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 Kotak Guaranteed Growth Fund Kotak Pension Growth Fund Kotak Group Growth Fund Kotak Aggressive Growth Fund Kotak Group Agressive Growth Fund Kotak Advantage Multiplier Fund Kotak Advantage Plus Fund Kotak Advantage Fund Kotak Advantage Multiplier Fund II Kotak Advantage Plus Fund II Frontline Equity Fund Pension Frontline Equity Fund Kotak Opportunities Fund Kotak Pension Opportunities Fund Classic Opportunities Fund Pension Classic Opportunities Fund Dynamic Floor Fund Kotak Group Dynamic Floor Fund Kotak Pension Floor Fund Dynamic Floor Fund II Pension Floor Fund II Guarantee Fund Pension Guarantee Fund Peak Guarantee Fund I Discontinued Policy Fund
Year of Inception 2003-04 2008-09 2007-08 2004-05 2007-08 2005-06 2005-06 2005-06 2006-07 2006-07 2009-10 2009-10 2008-09 2009-10 2009-10 2009-10 2006-07 2009-10 2009-10 2009-10 2009-10 2009-10 2009-10 2009-10 2010-11
2011 7.57% 7.77% NA 10.97% NA 4.82% 5.94% NA 4.98% 4.50% 11.91% 11.34% 11.84% 11.51% 12.32% 11.82% 6.98% 6.76% 5.07% 7.19% 7.62% 7.62% 7.57% 6.34% NA
2010 26.22% 26.48% NA 74.61% NA 19.10% 17.83% NA 19.07% 17.37% NA NA 92.99% NA NA NA 22.34% NA NA NA NA NA NA NA NA
2009 -20.41% NA -30.31% -33.89% 10.67% -2.33% -0.69% 0.67% -2.52% -0.69% NA NA NA NA NA NA 9.97% NA NA NA NA NA NA NA NA
*Returns 2008 19.54% NA NA 25.43% NA 5.33% 5.00% 10.20% 5.84% 5.68% NA NA NA NA NA NA 19.16% NA NA NA NA NA NA NA NA
2007 9.93% NA NA 13.49% NA 0.76% 1.24% 1.88% NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
2006 45.39% NA NA 71.27% NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
Inception 228.23% 39.91% 22.82% 264.76% 97.21% 35.75% 36.91% 29.74% 35.91% 35.32% 13.11% 19.55% 114.38% 22.48% 16.94% 19.42% 71.62% 72.04% 10.99% 8.66% 7.75% 13.27% 8.37% 9.90% 0.00%
Note : Annual absolute returns are calculated in those funds for which units existed in the fund for the full financial year. In other cases, it has been mentioned as NA
120
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Reports
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Statement Showing Receipts and Payments made to Related Parties Sr. No. Related Parties Kotak Securities Ltd - Brokerage Paid 75 272 955 484 4 Kotak Mahindra Prime Ltd Interest Income on Debentures 159 107 182 681 660 Kotak Mahindra Prime Ltd Ammortisation Income on CPs 4 0 18 40 132 364 208 81 4 200 291 341 1,160 132 30 86 231 88 116 1 12 85 310 75 Kotak Mahindra Bank Ltd FD Interest Income earned 24 1,886 1,555 136 0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Kotak Guaranteed Money Market Fund Kotak Group Money Market Fund Money Market Fund Pension Money Market Fund II Kotak Dynamic Gilt Fund Kotak Guaranteed Gilt Fund Kotak Pension Gilt Fund Kotak Group Gilt Fund Gilt Fund Kotak Dynamic Bond Fund Kotak Guaranteed Bond Fund Kotak Pension Bond Fund Kotak Group Bond Fund Bond Fund Pension Bond Fund II Kotak Dynamic Floating Rate Fund Kotak Guaranteed Floating Rate Fund Kotak Pension Floating Rate Fund Kotak Group Floating Rate Fund Floating Rate Fund Kotak Group 36M FMP 02/01/2011 Kotak Group 36M FMP 12/09/2011 Kotak Group 60M FMP 27/11/2013 Kotak Group 50M FMP 27/02/2013 Kotak Group 59M FMP 08/12/2013 Kotak Dynamic Balanced Fund Kotak Guaranteed Balanced Fund Kotak Pension Balanced Fund Kotak Group Balanced Fund Balanced Fund
Its grt 2b 25
121
Sr. No.
Related Parties
Kotak Securities Ltd - Brokerage Paid 11 324 4,772 74 1,797 71 668 44 449 212 66 4,205 74 1,383 528 5,897 237 671 2,563 798 243 684 185 27,746
Kotak Mahindra Prime Ltd Interest Income on Debentures 7,155 555 184 9,681
Kotak Mahindra Prime Ltd Ammortisation Income on CPs 10,824 14,833
Kotak Mahindra Bank Ltd FD Interest Income earned 2 88 3,705 47 1,120 104 192 85 67 43 14 1,268 11 232 97 10,678
31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57
Pension Balanced Fund II Kotak Dynamic Growth Fund Kotak Guaranteed Growth Fund Kotak Pension Growth Fund Kotak Group Growth Fund Kotak Aggressive Growth Fund Kotak Group Agressive Growth Fund Kotak Advantage Multiplier Fund Kotak Advantage Plus Fund Kotak Advantage Fund Kotak Advantage Multiplier Fund II Kotak Advantage Plus Fund II Frontline Equity Fund Pension Frontline Equity Fund Kotak Opportunities Fund Kotak Pension Opportunities Fund Classic Opportunities Fund Pension Classic Opportunities Fund Dynamic Floor Fund Kotak Group Dynamic Floor Fund Kotak Pension Floor Fund Dynamic Floor Fund II Pension Floor Fund II Guarantee Fund Pension Guarantee Fund Peak Guarantee Fund I Discontinued Policy Fund Grand Total
122
Its grt 2b 25
Reports
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Statement Showing Company wise Details of Investments held in Promoter Group Sr. No. Fund name Kotak Mahindra Bank Ltd -FD Amount 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Kotak Guaranteed Money Market Fund Kotak Group Money Market Fund Money Market Fund Pension Money Market Fund II Kotak Dynamic Gilt Fund Kotak Guaranteed Gilt Fund Kotak Pension Gilt Fund Kotak Group Gilt Fund Gilt Fund Kotak Dynamic Bond Fund Kotak Guaranteed Bond Fund Kotak Pension Bond Fund Kotak Group Bond Fund Bond Fund Pension Bond Fund II Kotak Dynamic Floating Rate Fund Kotak Guaranteed Floating Rate Fund Kotak Pension Floating Rate Fund Kotak Group Floating Rate Fund Floating Rate Fund Kotak Group 36M FMP 02/01/2011 Kotak Group 36M FMP 12/09/2011 Kotak Group 60M FMP 27/11/2013 Kotak Group 50M FMP 27/02/2013 Kotak Group 59M FMP 08/12/2013 Kotak Dynamic Balanced Fund Kotak Guaranteed Balanced Fund Kotak Pension Balanced Fund Kotak Group Balanced Fund Balanced Fund Pension Balanced Fund II 17,711 8,752 Percentage 1.01% 0.14% Kotak Mahindra Mutual Fund - MFU Amount 282 155 123 351 1,207 548 440 713 4,488 3,252 398 216 13 5,250 8,298 32,177 150 161 Percentage 0.87% 0.40% 0.08% 0.10% 0.53% 0.52% 0.11% 0.19% 0.21% 0.97% 0.40% 0.19% 0.72% 0.30% 0.14% 1.92% 1.26% 0.74% Kotak Mahindra Prime Ltd - CP Amount 97 6 1,280 1,344 974 2,434 1,363 682 68 9,737 9,737 11,197 48,685 3,505 1,022 974 2,629 1,071 1,363 15 651 4,683 17,040 4,109 Its grt 2b 25 Percentage 4.55% 0.02% 3.95% 3.46% 0.66% 0.67% 0.59% 0.65% 0.55% 2.34% 2.55% 2.46% 2.31% 1.05% 2.42% 1.14% 1.31% 1.09% 1.18% 0.83% 0.27% 0.27% 0.28% 0.24%
123
Sr. No.
Fund name
Kotak Mahindra Bank Ltd -FD Amount Percentage 0.01% 0.11% 2.19% 2.52% 0.19% 0.05%
Kotak Mahindra Mutual Fund - MFU Amount 254 30,621 3,067 4,657 140 4,803 1,003 792 22,706 3,950 41,661 4,812 1,317 17,056 2,926 320 1,694 200,002 Percentage 0.03% 0.13% 0.81% 0.12% 0.28% 0.94% 0.97% 0.62% 0.68% 0.64% 0.53% 1.73% 0.15% 0.49% 0.36% 0.10% 0.77% 0.29%
Kotak Mahindra Prime Ltd - CP Amount 62,769 187,435 Percentage 0.27% 0.27%
32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57
Kotak Dynamic Growth Fund Kotak Guaranteed Growth Fund Kotak Pension Growth Fund Kotak Group Growth Fund Kotak Aggressive Growth Fund Kotak Group Agressive Growth Fund Kotak Advantage Multiplier Fund Kotak Advantage Plus Fund Kotak Advantage Fund Kotak Advantage Multiplier Fund II Kotak Advantage Plus Fund II Frontline Equity Fund Pension Frontline Equity Fund Kotak Opportunities Fund Kotak Pension Opportunities Fund Classic Opportunities Fund Pension Classic Opportunities Fund Dynamic Floor Fund Kotak Group Dynamic Floor Fund Kotak Pension Floor Fund Dynamic Floor Fund II Pension Floor Fund II Guarantee Fund Pension Guarantee Fund Peak Guarantee Fund I Discontinued Policy Fund Grand Total*
2,179 4,350 1,097 897 708 35,695
* This amount represents total exposure to promoter group as a percentage of total fund size
124
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Reports
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Kotak Guaranteed Money Market Fund % of Total Funds
Monetary Intermediation of Commercial,Saving,Postal Savings Bank Axis Bank CD - 20.09.2011 Bank of Baroda CD - 03.06.2011 Bank of India CD- 07.09.2011 Bank of India CD- 24.06.2011 Canara Bank CD - 02.05.2011 Corporation Bank CD - 07.09.2011 Corporation Bank CD - 20.8.2011 IDBI Bank CD - 10.05.11 Indian Overseas Bank CD - 05.03.2012 State Bank of Bikaner & Jaipur CD - 28.06.2011 State Bank of Patiala CD - 14.09.2011 State Bank of Travancore CD - 14.09.2011 Union Bank CD - 17.06.11 Vijaya Bank CD - 09.09.2011 Total Others Other Credit Granting Net Current Assets Grand Total 113 2 2,138 5.28% 0.10% 100.00% 177 105 16 178 183 167 20 190 169 72 187 192 178 191 2,023 8.26% 4.92% 0.73% 8.32% 8.54% 7.81% 0.93% 8.88% 7.91% 3.35% 8.75% 8.98% 8.31% 8.93% 94.62%
Its grt 2b 25
125
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Kotak Group Money Market Fund % of Total Funds
Others Monetary Intermediation of Commercial,Saving,Postal Savings Bank Other Credit Granting Net Current Assets Grand Total 136 19 25,000 25,155 0.54% 0.07% 99.38% 100.00%
126
Its grt 2b 25
Reports
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Money Market Fund % of Total Funds
Monetary Intermediation of Commercial,Saving,Postal Savings Bank Axis Bank CD - 20.09.2011 Bank of Baroda CD - 03.06.2011 Bank of India CD- 07.09.2011 Bank of India CD- 24.06.2011 Bank of India CD - 28.09.2011 Bank of India CD -19.12.2011 Canara Bank CD - 02.05.2011 Canara Bank CD - 25.08.2011 Corporation Bank CD - 07.09.2011 Corporation Bank CD - 20.8.2011 IDBI Bank CD - 10.05.11 Indian Overseas Bank CD - 05.03.2012 State Bank of Bikaner & Jaipur CD - 15.06.2011 State Bank of Bikaner & Jaipur CD - 28.06.2011 State Bank of Mysore CD - 02.06.2011 State Bank of Patiala CD - 14.09.2011 State Bank of Travancore CD - 07.02.2012 State Bank of Travancore CD - 11.07.2011 State Bank of Travancore CD - 22.02.2012 State Bank of Travancore CD - 23.08.2011 Union Bank CD - 17.06.11 Vijaya Bank CD - 09.09.2011 Total Others Other Credit Granting Activities Auxiliary to Financial Service Activities N.E.C. Net Current Assets Grand Total 2,593 665 9,894 32,429 8.00% 2.05% 30.51% 100.00% 1,527 1,487 157 1,014 201 303 975 878 1,781 200 1,944 1,509 1,065 101 774 991 203 179 202 834 1,247 1,708 19,277 4.71% 4.58% 0.48% 3.13% 0.62% 0.93% 3.01% 2.71% 5.49% 0.62% 6.00% 4.65% 3.28% 0.31% 2.39% 3.05% 0.63% 0.55% 0.62% 2.57% 3.84% 5.27% 59.44%
Its grt 2b 25
127
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Pension Money Market Fund II % of Total Funds
Monetary Intermediation of Commercial,Saving,Postal Savings Bank Axis Bank CD - 20.09.2011 Bank of Baroda CD - 03.06.2011 Bank of India CD- 24.06.2011 Bank of India CD - 28.09.2011 Canara Bank CD - 02.05.2011 Canara Bank CD - 25.08.2011 Corporation Bank CD - 07.09.2011 Corporation Bank CD - 20.8.2011 IDBI Bank CD - 10.05.11 Indian Overseas Bank CD - 05.03.2012 State Bank of Bikaner & Jaipur CD - 15.06.2011 State Bank of Bikaner & Jaipur CD - 28.06.2011 State Bank of Mysore CD - 02.06.2011 State Bank of Patiala CD - 14.09.2011 State Bank of Travancore CD - 07.02.2012 State Bank of Travancore CD - 11.07.2011 State Bank of Travancore CD - 23.08.2011 Union Bank CD - 17.06.11 Vijaya Bank CD - 09.09.2011 Total Others Other Credit Granting Activities Auxiliary to Financial Service Activities N.E.C. Net Current Assets Grand Total 2,969 365 568 38,852 7.64% 0.94% 1.46% 100.00% 2,959 3,141 2,505 301 2,355 1,101 3,016 400 2,505 2,926 388 1,790 2,085 1,848 101 378 1,320 2,616 3,215 34,950 7.62% 8.08% 6.45% 0.78% 6.06% 2.83% 7.76% 1.03% 6.45% 7.53% 1.00% 4.61% 5.37% 4.76% 0.26% 0.97% 3.40% 6.73% 8.27% 89.96%
128
Its grt 2b 25
Reports
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Kotak Dynamic Gilt Fund % of Total Funds
Government of India 10.25% GOI - 30.05.21 11.83% GoI 2014 6.90% OIL SPL - 04.02.2026 7.27% GOI - 03.09.13 7.40% GOI 2012 - 03.05.12 7.59% GOI 2016 7.94% GOI - 24.05.21 7.95% Oil Bond - 18.01.25 8.08% GOI - 02.08.2022 8.13% GOI - 21.09.2022 8.15% GOI FCI Bonds - 16.10.22 8.20% GOI - 15.02.22 8.24% GOI - 15.02.27 8.26% GOI - 02.08.27 8.30% GOI - 02.07.2040 8.32% GJ SDL - 09.10.2017 8.35% GOI - 14.05.22 Total State Development Loan 10.35% KA SDL - 08.05.2011 8.31% GJ SDL - 03.02.2020 8.33% GJ SDL - 06.01.2020 8.42% TN SDL - 25.08.2020 8.43% GJ SDL - 10.03.2018 8.50% TN SDL - 17.02.2021 8.52% GJ SDL - 19.01.2021 8.52% PN SDL - 17.02.2021 8.54% MAH SDL - 19.01.2021 Total 2,322 999 1,500 5,054 8,801 303 8,004 243 8,615 35,842 1.56% 0.67% 1.01% 3.40% 5.92% 0.20% 5.39% 0.16% 5.80% 24.12% 1,271 1,855 655 3,123 1,234 2,423 1,821 599 15,195 19,925 4,962 1,116 1,960 23,879 614 2,885 1,745 85,262 0.86% 1.25% 0.44% 2.10% 0.83% 1.63% 1.23% 0.40% 10.23% 13.41% 3.34% 0.75% 1.32% 16.07% 0.41% 1.94% 1.17% 57.39%
Its grt 2b 25
129
Industry Monetary Intermediation of Commercial,Saving,Postal Savings Bank 10.25% Axis Bank FD - 28.02.2013 Bank of Baroda CD - 03.06.2011 Bank of India CD- 07.09.2011 Bank of India CD - 05.03.2012 Bank of India CD - 28.09.2011 Canara Bank CD - 25.08.2011 Corporation Bank CD - 20.8.2011 IDBI Bank CD - 10.05.11 State Bank of Bikaner & Jaipur CD - 15.06.2011 State Bank of Mysore CD - 02.06.2011 State Bank of Travancore CD - 23.08.2011 Vijaya Bank CD - 24.05.2011 Total Others Other Credit Granting Activities Auxiliary to Financial Service Activities N.E.C. Net Current Assets Grand Total
Kotak Dynamic Gilt Fund
% of Total Funds
1,500 24 3,552 1,417 3,117 769 800 1,549 533 3,126 2,981 2,533 21,901
1.01% 0.02% 2.39% 0.95% 2.10% 0.52% 0.54% 1.04% 0.36% 2.10% 2.01% 1.70% 14.74%
974 290 4,307 148,576
0.66% 0.20% 2.90% 100.00%
130
Its grt 2b 25
Reports
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Government of India 10.25% GOI - 30.05.21 11.83% GoI 2014 6.90% OIL SPL - 04.02.2026 7.27% GOI - 03.09.13 7.40% GOI 2012 - 03.05.12 7.56% GOI 2014 - 03.11.14 7.59% GOI 2016 7.94% GOI - 24.05.21 7.95% Oil Bond - 18.01.25 8.08% GOI - 02.08.2022 8.13% GOI - 21.09.2022 8.15% GOI FCI Bonds - 16.10.22 8.20% GOI - 15.02.22 8.24% GOI - 15.02.27 8.26% GOI - 02.08.27 8.30% GOI - 02.07.2040 8.32% GJ SDL - 09.10.2017 8.32% GOI - 02.08.2032 8.35% GOI - 14.05.22 Total State Development Loan 10.35% KA SDL - 08.05.2011 8.31% GJ SDL - 03.02.2020 8.33% GJ SDL - 06.01.2020 8.42% TN SDL - 25.08.2020 8.43% GJ SDL - 10.03.2018 8.50% TN SDL - 17.02.2021 8.52% GJ SDL - 19.01.2021 8.52% PN SDL - 17.02.2021 8.54% MAH SDL - 19.01.2021 Total 3,293 1,498 500 12,651 22,365 728 20,287 588 20,312 82,221 0.90% 0.41% 0.14% 3.47% 6.14% 0.20% 5.57% 0.16% 5.57% 22.56% 3,516 4,675 1,603 5,689 1,353 3,915 9,418 4,790 1,434 44,848 48,986 4,962 2,902 7,074 57,583 853 7,414 1,560 4,100 216,675 0.96% 1.28% 0.44% 1.56% 0.37% 1.07% 2.58% 1.31% 0.39% 12.30% 13.44% 1.36% 0.80% 1.94% 15.80% 0.23% 2.03% 0.43% 1.12% 59.44% Kotak Guaranteed Gilt Fund % of Total Funds
Its grt 2b 25
131
Kotak Guaranteed Gilt Fund
% of Total Funds
3,600 758 9,401 3,496 8,105 1,948 1,800 5,983 1,384 1,649 7,611 7,154 52,890
0.99% 0.21% 2.58% 0.96% 2.22% 0.53% 0.49% 1.64% 0.38% 0.45% 2.09% 1.96% 14.51%
2,434 830 9,464 364,515
0.67% 0.23% 2.60% 100.00%
132
Its grt 2b 25
Reports
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Government of India 10.25% GOI - 30.05.21 11.83% GoI 2014 6.90% OIL SPL - 04.02.2026 7.27% GOI - 03.09.13 7.40% GOI 2012 - 03.05.12 7.56% GOI 2014 - 03.11.14 7.59% GOI 2016 7.94% GOI - 24.05.21 7.95% Oil Bond - 18.01.25 8.08% GOI - 02.08.2022 8.13% GOI - 21.09.2022 8.15% GOI FCI Bonds - 16.10.22 8.20% GOI - 15.02.22 8.24% GOI - 15.02.27 8.26% GOI - 02.08.27 8.30% GOI - 02.07.2040 8.32% GJ SDL - 09.10.2017 8.32% GOI - 02.08.2032 8.35% GOI - 14.05.22 Total State Development Loan 10.35% KA SDL - 08.05.2011 8.31% GJ SDL - 03.02.2020 8.33% GJ SDL - 06.01.2020 8.42% TN SDL - 25.08.2020 8.43% GJ SDL - 10.03.2018 8.50% TN SDL - 17.02.2021 8.52% GJ SDL - 19.01.2021 8.52% PN SDL - 17.02.2021 8.54% MAH SDL - 19.01.2021 Total 2,908 1,498 660 7,783 12,967 435 11,703 355 11,717 50,025 1.27% 0.65% 0.29% 3.39% 5.65% 0.19% 5.10% 0.15% 5.11% 21.80% 2,004 2,691 1,000 5,127 3,649 2,741 3,808 2,791 833 27,637 29,556 4,962 1,617 3,397 37,261 592 4,308 870 1,972 136,817 0.87% 1.17% 0.44% 2.23% 1.59% 1.19% 1.66% 1.22% 0.36% 12.05% 12.88% 2.16% 0.70% 1.48% 16.24% 0.26% 1.88% 0.38% 0.86% 59.63% Kotak Pension Gilt Fund % of Total Funds
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133
Industry Monetary Intermediation of Commercial,Saving,Postal Savings Bank 10.25% Axis Bank FD - 28.02.2013 Bank of Baroda CD - 03.06.2011 Bank of India CD- 07.09.2011 Bank of India CD - 05.03.2012 Bank of India CD - 28.09.2011 Canara Bank CD - 25.08.2011 Corporation Bank CD - 20.8.2011 IDBI Bank CD - 10.05.11 State Bank of Bikaner & Jaipur CD - 15.06.2011 State Bank of Mysore CD - 02.06.2011 State Bank of Travancore CD - 14.09.2011 State Bank of Travancore CD - 23.08.2011 Vijaya Bank CD - 24.05.2011 Total Others Other Credit Granting Activities Auxiliary to Financial Service Activities N.E.C. Net Current Assets Grand Total
Kotak Pension Gilt Fund
% of Total Funds
2,200 1,382 5,536 2,173 4,572 1,128 1,200 2,220 749 1,557 2,175 4,526 2,828 32,245
0.96% 0.60% 2.41% 0.95% 1.99% 0.49% 0.52% 0.97% 0.33% 0.68% 0.95% 1.97% 1.23% 14.05%
1,363 2,850 6,126 229,426
0.59% 1.24% 2.67% 100.00%
134
Its grt 2b 25
Reports
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Kotak Group Gilt Fund % of Total Funds
Government of India 10.25% GOI - 30.05.21 11.83% GoI 2014 6.90% OIL SPL - 04.02.2026 7.27% GOI - 03.09.13 7.40% GOI 2012 - 03.05.12 7.56% GOI 2014 - 03.11.14 7.59% GOI 2016 7.94% GOI - 24.05.21 7.95% Oil Bond - 18.01.25 8.08% GOI - 02.08.2022 8.13% GOI - 21.09.2022 8.15% GOI FCI Bonds - 16.10.22 8.20% GOI - 15.02.22 8.24% GOI - 15.02.27 8.26% GOI - 02.08.27 8.32% GJ SDL - 09.10.2017 8.35% GOI - 14.05.22 Total State Development Loan 10.35% KA SDL - 08.05.2011 8.31% GJ SDL - 03.02.2020 8.33% GJ SDL - 06.01.2020 8.42% TN SDL - 25.08.2020 8.43% GJ SDL - 10.03.2018 8.50% TN SDL - 17.02.2021 8.52% GJ SDL - 19.01.2021 8.52% PN SDL - 17.02.2021 8.54% MAH SDL - 19.01.2021 Total 1,215 999 2,731 3,742 5,568 182 5,244 152 4,561 24,394 1.16% 0.95% 2.61% 3.58% 5.32% 0.17% 5.01% 0.15% 4.36% 23.32% 756 1,168 419 2,089 486 2,294 1,690 1,188 258 12,335 12,428 4,623 699 1,546 16,556 1,854 661 61,047 0.72% 1.12% 0.40% 2.00% 0.46% 2.19% 1.62% 1.14% 0.25% 11.79% 11.88% 4.42% 0.67% 1.48% 15.83% 1.77% 0.63% 58.36%
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135
Kotak Group Gilt Fund
% of Total Funds
950 309 2,194 945 2,078 513 600 1,445 346 877 1,869 1,794 13,919
0.91% 0.30% 2.10% 0.90% 1.99% 0.49% 0.57% 1.38% 0.33% 0.84% 1.79% 1.71% 13.31%
682 1,295 3,274 104,610
0.65% 1.24% 3.13% 100.00%
136
Its grt 2b 25
Reports
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Government of India 10.25% GOI - 30.05.21 11.83% GoI 2014 6.90% OIL SPL - 04.02.2026 7.27% GOI - 03.09.13 7.40% GOI 2012 - 03.05.12 7.46% GOI - 28.08.17 7.56% GOI 2014 - 03.11.14 7.59% GOI 2016 7.94% GOI - 24.05.21 7.95% Oil Bond - 18.01.25 8.08% GOI - 02.08.2022 8.13% GOI - 21.09.2022 8.15% GOI FCI Bonds - 16.10.22 8.20% GOI - 15.02.22 8.24% GOI - 15.02.27 8.26% GOI - 02.08.27 8.32% GJ SDL - 09.10.2017 8.32% GOI - 02.08.2032 8.35% GOI - 14.05.22 Total State Development Loan 10.35% KA SDL - 08.05.2011 8.42% TN SDL - 25.08.2020 8.43% GJ SDL - 10.03.2018 8.50% TN SDL - 17.02.2021 8.52% GJ SDL - 19.01.2021 8.52% PN SDL - 17.02.2021 8.54% MAH SDL - 19.01.2021 Total Others Monetary Intermediation of Commercial,Saving,Postal Savings Bank Other Credit Granting Net Current Assets Grand Total 962 68 4,621 12,364 7.78% 0.55% 37.38% 100.00% Its grt 2b 25 96 210 492 10 429 10 405 1,652 0.78% 1.70% 3.98% 0.08% 3.47% 0.08% 3.27% 13.36% 163 92 25 168 103 11 214 186 206 14 878 956 338 34 217 1,212 145 2 97 5,061 1.32% 0.74% 0.20% 1.35% 0.83% 0.09% 1.73% 1.50% 1.66% 0.12% 7.10% 7.73% 2.74% 0.27% 1.76% 9.80% 1.17% 0.02% 0.79% 40.94% Gilt Fund % of Total Funds
137
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Government of India 11.83% GoI 2014 364 Days T Bill - 15.07.2011 6.90% OIL SPL - 04.02.2026 7.40% GOI 2012 - 03.05.12 7.56% GOI 2014 - 03.11.14 7.94% GOI - 24.05.21 7.95% GOI Fertilizer Bond - 18.02.26 8.08% GOI - 02.08.2022 8.13% GOI - 21.09.2022 8.20% GOI - 15.02.22 8.24% GOI - 15.02.27 8.26% GOI - 02.08.27 8.30% GOI - 02.07.2040 8.32% GJ SDL - 09.10.2017 8.35% GOI - 14.05.22 Total Monetary Intermediation of Commercial,Saving,Postal Savings Bank 10.10% SBH Bank FD - 12.03.2014 10.25% Axis Bank FD - 28.02.2013 10.25% IOB FD - 09.03.2013 10.30% Axis Bank FD - 14.03.2013 10.31% Union Bank FD - 30.03.2012 10.36% Union Bank FD - 28.03.2012 7.45% SBI - 05.05.2015 9.05% SBH Perpetual Bond Call- 20.09.2020 9.05% SBI Perpetual Bond Call - 27.01.2020 9.15% PNB - 16.04.2016 9.70% Canara Bank FD - 20.12.2012 9.85% HDFC Bank 2019 - 17.03.2024 CALL 17.03.2019 9.95% SBI 2026 - 16.03.2026 Call 16.03.2021 Axis Bank CD - 20.09.2011 10,000 4,000 20,000 10,000 8,200 2,052 8,923 13,681 18,015 597 15,200 969 4,048 1,938 2.40% 0.96% 4.81% 2.40% 1.97% 0.49% 2.15% 3.29% 4.33% 0.14% 3.65% 0.23% 0.97% 0.47% 2,274 1,763 18,403 4,761 3,993 9,095 3,633 7,623 25,730 1,791 7,329 397 328 4,108 165 91,394 0.55% 0.42% 4.42% 1.14% 0.96% 2.19% 0.87% 1.83% 6.19% 0.43% 1.76% 0.10% 0.08% 0.99% 0.04% 21.97% Kotak Dynamic Bond Fund % of Total Funds
138
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Reports
Industry Bank of India CD- 24.06.2011 Bank of India CD - 05.03.2012 Canara Bank CD - 25.08.2011 Corporation Bank CD - 20.8.2011 State Bank of Mysore CD - 02.06.2011 State Bank of Travancore CD - 07.02.2012 State Bank of Travancore CD - 23.08.2011 Total Other Credit Granting 10.90% REC - 30.09.13 11.25% HDFC - 04.09.18 11.40% PFC - 28.11.13 6.05% REC - 23.01.2014 7.85% Sundaram Finance - 25.03.2013 8.00% REC- 05.08.2014 8.23% Sundaram Finance - 27.07.12 8.35% REC - 04.09.2014 8.48% LIC Housing Finance - 27.09.2013 8.78% PFC- 11.12.2016 8.80% REC - 06.10.2019 8.80% REC - 25.10.2020 9.32% HDFC - 17.12.12 9.40% PFC - 25.03.13 9.45% HDFC - 11.01.2013 9.50% HDFC - 27.02.13 9.50% LIC Housing Finance - 18.02.2012 9.75% HDFC - 08.03.2016 9.75% HDFC - 28.01.2014 HDFC Ltd Floater 5 Year INBMK + 120 bps - 18.01.2016 HDFC Ltd ZCB - 08.02.2012 Kotak Mahindra Prime Ltd CP - 08.07.11 Total Activities Auxiliary to Financial Service Activities N.E.C. 6.20% IRFC - 12.08.2013 7.19% NABARD - 29.04.2013 7.45% IRFC - 27.04.2014 7.95% Tata Sons - 19.04.2013
Kotak Dynamic Bond Fund 2,951 1,982 6,012 4,101 10,349 2,072 9,960 155,050
% of Total Funds 0.71% 0.48% 1.45% 0.99% 2.49% 0.50% 2.39% 37.28%
3,842 70 2,421 574 4,875 2,722 3,841 1,052 2,953 669 1,571 340 583 498 3,965 59 1,191 3,102 418 5,870 402 9,737 50,756
0.92% 0.02% 0.58% 0.14% 1.17% 0.65% 0.92% 0.25% 0.71% 0.16% 0.38% 0.08% 0.14% 0.12% 0.95% 0.01% 0.29% 0.75% 0.10% 1.41% 0.10% 2.34% 12.20%
5,282 9,442 1,914 1,227
1.27% 2.27% 0.46% 0.30% Its grt 2b 25
139
Industry 8.20% IRFC - 27.04.2015 8.20% NHB - 30.08.2013 8.45% EXIM Bank - 08.09.2015 8.50% EXIM 2011 - 12.09.2011 8.80% Tata Sons 2015 - 21.09.2015 9.15% EXIM Bank 08.03.2021 9.50% Nabard - 15.10.12 9.80% Nabard - 10.09.12 BIRLA CASH PLUS - INSTITUTIONAL PREMIUM - GROWTH ICICI Prud Liquid Plan - SI Growth Kotak Floater Short Term- Growth Total Others State Development Loan Mfg - Commercial Vehicles Vans,Lorries,Over-The-Road Tractors Etc Colln,Dist.-Electric Energy To Households, Industrial, Commercial Activities of Basic Telecom Services: Telephone, Telex,Telegraph Providing Software Support and Maintenance to the Clients Financial Leasing Net Current Assets Grand Total
Kotak Dynamic Bond Fund 1,574 2,223 14,338 114 4,949 414 826 2,166 285 315 440 45,509
% of Total Funds 0.38% 0.53% 3.45% 0.03% 1.19% 0.10% 0.20% 0.52% 0.07% 0.08% 0.11% 10.94%
15,050 12,379 21,930 776 869 224 22,003 415,940
3.62% 2.98% 5.27% 0.19% 0.21% 0.05% 5.29% 100.00%
140
Its grt 2b 25
Reports
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Government of India 11.83% GoI 2014 364 Days T Bill - 15.07.2011 6.90% OIL SPL - 04.02.2026 7.40% GOI 2012 - 03.05.12 7.56% GOI 2014 - 03.11.14 7.94% GOI - 24.05.21 7.95% GOI Fertilizer Bond - 18.02.26 8.08% GOI - 02.08.2022 8.13% GOI - 21.09.2022 8.20% GOI - 15.02.22 8.24% GOI - 15.02.27 8.26% GOI - 02.08.27 8.32% GJ SDL - 09.10.2017 8.35% GOI - 14.05.22 Total Monetary Intermediation of Commercial,Saving,Postal Savings Bank 10.10% SBH Bank FD - 12.03.2014 10.25% Axis Bank FD - 28.02.2013 10.25% IOB FD - 09.03.2013 10.30% Axis Bank FD - 14.03.2013 10.31% Union Bank FD - 30.03.2012 10.36% Union Bank FD - 28.03.2012 7.45% SBI - 05.05.2015 9.05% SBH Perpetual Bond Call- 20.09.2020 9.05% SBI Perpetual Bond Call - 27.01.2020 9.15% PNB - 16.04.2016 9.70% Canara Bank FD - 20.12.2012 9.85% HDFC Bank 2019 - 17.03.2024 CALL 17.03.2019 9.95% SBI 2026 - 16.03.2026 Call 16.03.2021 Axis Bank CD - 20.09.2011 Bank of India CD- 24.06.2011 9,400 3,800 19,000 10,000 7,030 1,904 8,314 14,498 18,120 650 15,200 952 3,770 1,834 3,443 2.47% 1.00% 4.98% 2.62% 1.84% 0.50% 2.18% 3.80% 4.75% 0.17% 3.99% 0.25% 0.99% 0.48% 0.90% 2,066 1,763 17,085 4,372 3,700 4,592 3,403 9,546 23,844 2,114 5,180 381 4,108 239 82,394 0.54% 0.46% 4.48% 1.15% 0.97% 1.20% 0.89% 2.50% 6.25% 0.55% 1.36% 0.10% 1.08% 0.06% 21.61% Kotak Guaranteed Bond Fund % of Total Funds
Its grt 2b 25
141
Industry Bank of India CD - 05.03.2012 Canara Bank CD - 25.08.2011 Corporation Bank CD - 20.8.2011 State Bank of Mysore CD - 02.06.2011 State Bank of Travancore CD - 07.02.2012 State Bank of Travancore CD - 23.08.2011 Total Other Credit Granting 10.90% REC - 30.09.13 11.40% PFC - 28.11.13 6.05% REC - 23.01.2014 7.85% Sundaram Finance - 25.03.2013 8.00% REC- 05.08.2014 8.23% Sundaram Finance - 27.07.12 8.35% REC - 04.09.2014 8.48% LIC Housing Finance - 27.09.2013 8.78% PFC- 11.12.2016 8.80% REC - 06.10.2019 8.80% REC - 25.10.2020 9.32% HDFC - 17.12.12 9.40% PFC - 25.03.13 9.50% HDFC - 27.02.13 9.75% HDFC - 08.03.2016 9.75% HDFC - 28.01.2014 HDFC Ltd Floater 5 Year INBMK + 120 bps - 18.01.2016 HDFC Ltd ZCB - 08.02.2012 Kotak Mahindra Prime Ltd CP - 08.07.11 Total Activities Auxiliary to Financial Service Activities N.E.C. 6.20% IRFC - 12.08.2013 7.19% NABARD - 29.04.2013 7.45% IRFC - 27.04.2014 7.95% Tata Sons - 19.04.2013 8.20% IRFC - 27.04.2015 8.20% NHB - 30.08.2013 8.45% EXIM Bank - 08.09.2015 8.50% EXIM 2011 - 12.09.2011
Kotak Guaranteed Bond Fund 1,887 6,094 3,801 10,777 1,871 10,319 152,666
% of Total Funds 0.50% 1.60% 1.00% 2.83% 0.49% 2.71% 40.05%
3,650 2,324 860 4,392 1,648 3,841 1,720 2,827 748 429 331 326 612 92 2,899 388 5,950 1,376 9,737 44,149
0.96% 0.61% 0.23% 1.15% 0.43% 1.01% 0.45% 0.74% 0.20% 0.11% 0.09% 0.09% 0.16% 0.02% 0.76% 0.10% 1.56% 0.36% 2.55% 11.58%
5,357 5,297 1,747 1,244 1,494 2,315 13,586 369
1.41% 1.39% 0.46% 0.33% 0.39% 0.61% 3.56% 0.10%
142
Its grt 2b 25
Reports
Industry 8.80% Tata Sons 2015 - 21.09.2015 9.15% EXIM Bank 08.03.2021 9.50% Nabard - 15.10.12 9.80% Nabard - 10.09.12 BIRLA CASH PLUS - INSTITUTIONAL PREMIUM - GROWTH ICICI Prud Liquid Plan - SI Growth Kotak Floater Short Term- Growth Total Others State Development Loan Mfg - Commercial Vehicles Vans,Lorries,Over-The-Road Tractors Etc Colln,Dist.-Electric Energy To Households, Industrial, Commercial Activities of Basic Telecom Services: Telephone, Telex,Telegraph Providing Software Support and Maintenance to the Clients Financial Leasing Net Current Assets Grand Total
Kotak Guaranteed Bond Fund 4,868 384 768 2,031 462 510 713 41,144
% of Total Funds 1.28% 0.10% 0.20% 0.53% 0.12% 0.13% 0.19% 10.79%
14,896 8,941 15,981 776 839 298 19,126 381,209
3.91% 2.35% 4.19% 0.20% 0.22% 0.08% 5.02% 100.00%
Its grt 2b 25
143
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Government of India 11.83% GoI 2014 364 Days T Bill - 15.07.2011 6.90% OIL SPL - 04.02.2026 7.40% GOI 2012 - 03.05.12 7.56% GOI 2014 - 03.11.14 7.94% GOI - 24.05.21 7.95% GOI Fertilizer Bond - 18.02.26 8.08% GOI - 02.08.2022 8.13% GOI - 21.09.2022 8.20% GOI - 15.02.22 8.24% GOI - 15.02.27 8.26% GOI - 02.08.27 8.32% GJ SDL - 09.10.2017 8.35% GOI - 14.05.22 Total Monetary Intermediation of Commercial,Saving,Postal Savings Bank 10.10% SBH Bank FD - 12.03.2014 10.25% Axis Bank FD - 28.02.2013 10.25% IOB FD - 09.03.2013 10.30% Axis Bank FD - 14.03.2013 10.31% Union Bank FD - 30.03.2012 10.36% Union Bank FD - 28.03.2012 7.45% SBI - 05.05.2015 9.05% SBH Perpetual Bond Call- 20.09.2020 9.05% SBI Perpetual Bond Call - 27.01.2020 9.15% PNB - 16.04.2016 9.70% Canara Bank FD - 20.12.2012 9.85% HDFC Bank 2019 - 17.03.2024 CALL 17.03.2019 9.95% SBI 2026 - 16.03.2026 Call 16.03.2021 9.98% ICICI Perpetual Bond -CALL 13.09.16 Axis Bank CD - 20.09.2011 11,200 4,400 22,500 12,000 9,100 2,269 10,395 16,321 20,227 449 17,000 2,438 4,491 294 2,185 2.47% 0.97% 4.95% 2.64% 2.00% 0.50% 2.29% 3.59% 4.45% 0.10% 3.74% 0.54% 0.99% 0.06% 0.48% 2,386 2,008 20,164 5,344 4,479 5,334 3,920 14,387 27,464 2,088 8,554 445 4,509 352 101,434 0.53% 0.44% 4.44% 1.18% 0.99% 1.17% 0.86% 3.17% 6.04% 0.46% 1.88% 0.10% 0.99% 0.08% 22.32% Kotak Pension Bond Fund % of Total Funds
144
Its grt 2b 25
Reports
Industry Bank of India CD- 24.06.2011 Bank of India CD - 05.03.2012 Canara Bank CD - 25.08.2011 Corporation Bank CD - 20.8.2011 State Bank of Mysore CD - 02.06.2011 State Bank of Travancore CD - 07.02.2012 State Bank of Travancore CD - 23.08.2011 Total Other Credit Granting 10.90% REC - 30.09.13 11.40% PFC - 28.11.13 6.05% REC - 23.01.2014 8.00% REC- 05.08.2014 8.23% Sundaram Finance - 27.07.12 8.35% REC - 04.09.2014 8.48% LIC Housing Finance - 27.09.2013 8.78% PFC- 11.12.2016 8.80% REC - 06.10.2019 8.80% REC - 25.10.2020 9.00% Bajaj Auto Finance - 02.11.2012 9.32% HDFC - 17.12.12 9.40% PFC - 25.03.13 9.50% HDFC - 27.02.13 9.75% HDFC - 08.03.2016 9.75% HDFC - 28.01.2014 HDFC Ltd Floater 5 Year INBMK + 120 bps - 18.01.2016 HDFC Ltd ZCB - 08.02.2012 Kotak Mahindra Prime Ltd CP - 08.07.11 Total Activities Auxiliary to Financial Service Activities N.E.C. 6.20% IRFC - 12.08.2013 7.19% NABARD - 29.04.2013 7.45% IRFC - 27.04.2014 7.95% Tata Sons - 19.04.2013 8.20% IRFC - 27.04.2015 8.20% NHB - 30.08.2013 8.45% EXIM Bank - 08.09.2015
Kotak Pension Bond Fund 3,934 2,254 7,138 4,401 14,240 2,282 13,132 182,651
% of Total Funds 0.87% 0.50% 1.57% 0.97% 3.13% 0.50% 2.89% 40.20%
4,130 2,711 1,924 2,772 4,321 1,901 3,697 876 1,643 351 745 36 789 10 2,953 462 6,810 1,162 11,197 48,491
0.91% 0.60% 0.42% 0.61% 0.95% 0.42% 0.81% 0.19% 0.36% 0.08% 0.16% 0.01% 0.17% 0.00% 0.65% 0.10% 1.50% 0.26% 2.46% 10.67%
6,127 9,170 345 1,424 1,766 2,729 15,427
1.35% 2.02% 0.08% 0.31% 0.39% 0.60% 3.40%
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145
Industry 8.50% EXIM 2011 - 12.09.2011 8.80% Tata Sons 2015 - 21.09.2015 9.15% EXIM Bank 08.03.2021 9.50% Nabard - 15.10.12 9.80% Nabard - 10.09.12 Total Others State Development Loan Mfg - Commercial Vehicles Vans,Lorries,Over-The-Road Tractors Etc Colln,Dist.-Electric Energy To Households, Industrial, Commercial Activities of Basic Telecom Services: Telephone, Telex,Telegraph Providing Software Support and Maintenance to the Clients Financial Leasing Net Current Assets Grand Total
Kotak Pension Bond Fund 10 5,521 458 914 2,420 46,311
% of Total Funds 0.00% 1.22% 0.10% 0.20% 0.53% 10.19%
16,508 14,369 20,741 894 972 108 21,882 454,359
3.63% 3.16% 4.56% 0.20% 0.21% 0.02% 4.82% 100.00%
146
Its grt 2b 25
Reports
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Government of India 11.83% GoI 2014 364 Days T Bill - 15.07.2011 6.90% OIL SPL - 04.02.2026 7.40% GOI 2012 - 03.05.12 7.56% GOI 2014 - 03.11.14 7.59% GOI 2016 7.94% GOI - 24.05.21 7.95% GOI Fertilizer Bond - 18.02.26 8.08% GOI - 02.08.2022 8.13% GOI - 21.09.2022 8.24% GOI - 15.02.27 8.26% GOI - 02.08.27 8.30% GOI - 02.07.2040 8.32% GJ SDL - 09.10.2017 8.35% GOI - 14.05.22 Total Monetary Intermediation of Commercial,Saving,Postal Savings Bank 10.10% SBH Bank FD - 12.03.2014 10.25% Axis Bank FD - 28.02.2013 10.25% IOB FD - 09.03.2013 10.30% Axis Bank FD - 14.03.2013 10.31% Union Bank FD - 30.03.2012 10.36% Union Bank FD - 28.03.2012 7.45% SBI - 05.05.2015 8.85% SBI Upper Tier II - 04.10.2021 Call 04.10.2016 9.05% SBH Perpetual Bond Call- 20.09.2020 9.05% SBI Perpetual Bond Call - 27.01.2020 9.15% PNB - 16.04.2016 9.70% Canara Bank FD - 20.12.2012 9.85% HDFC Bank 2019 - 17.03.2024 CALL 17.03.2019 9.95% SBI 2026 - 16.03.2026 Call 16.03.2021 57,000 19,500 100,000 50,000 41,000 10,185 42,351 16,563 66,324 79,447 2,341 68,000 5,562 20,062 2.71% 0.93% 4.75% 2.38% 1.95% 0.48% 2.01% 0.79% 3.15% 3.78% 0.11% 3.23% 0.26% 0.95% 9,222 9,121 96,421 25,751 20,444 5,212 21,722 11,493 71,760 127,837 22,138 1,963 7,150 18,961 811 450,004 0.44% 0.43% 4.58% 1.22% 0.97% 0.25% 1.03% 0.55% 3.41% 6.08% 1.05% 0.09% 0.34% 0.90% 0.04% 21.39% Kotak Group Bond Fund % of Total Funds
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Industry Axis Bank CD - 20.09.2011 Bank of India CD- 24.06.2011 Bank of India CD - 05.03.2012 Canara Bank CD - 25.08.2011 Corporation Bank CD - 20.8.2011 State Bank of Mysore CD - 02.06.2011 State Bank of Travancore CD - 07.02.2012 State Bank of Travancore CD - 23.08.2011 Total Other Credit Granting 10.90% REC - 30.09.13 11.25% HDFC - 04.09.18 11.40% PFC - 28.11.13 6.05% REC - 23.01.2014 7.85% Sundaram Finance - 25.03.2013 8.00% REC- 05.08.2014 8.23% Sundaram Finance - 27.07.12 8.35% REC - 04.09.2014 8.48% LIC Housing Finance - 27.09.2013 8.70% PFC- 14.05.2015 8.78% PFC- 11.12.2016 8.80% REC - 06.10.2019 8.80% REC - 25.10.2020 9.32% HDFC - 17.12.12 9.45% HDFC - 11.01.2013 9.50% HDFC - 27.02.13 9.75% HDFC - 08.03.2016 9.75% HDFC - 28.01.2014 HDFC Ltd CP - 15.07.11 HDFC Ltd Floater 5 Year INBMK + 120 bps - 18.01.2016 HDFC Ltd ZCB - 08.02.2012 Kotak Mahindra Prime Ltd CP - 08.07.11 Total Activities Auxiliary to Financial Service Activities N.E.C. 6.20% IRFC - 12.08.2013 7.19% NABARD - 29.04.2013 7.45% IRFC - 27.04.2014
Kotak Group Bond Fund 9,601 9,836 9,936 33,633 20,705 16,387 10,389 69,116 757,938
% of Total Funds 0.46% 0.47% 0.47% 1.60% 0.98% 0.78% 0.49% 3.28% 36.02%
2,401 330 12,103 4,015 18,076 139 19,207 19,815 11,606 1,961 3,503 4,261 642 993 11,894 206 15,603 2,063 36,955 28,670 525 48,685 243,652
0.11% 0.02% 0.58% 0.19% 0.86% 0.01% 0.91% 0.94% 0.55% 0.09% 0.17% 0.20% 0.03% 0.05% 0.57% 0.01% 0.74% 0.10% 1.76% 1.36% 0.02% 2.31% 11.58%
27,630 53,740 14,820
1.31% 2.55% 0.70%
148
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Industry 7.95% Tata Sons - 19.04.2013 8.20% IRFC - 27.04.2015 8.20% NHB - 30.08.2013 8.45% EXIM Bank - 08.09.2015 8.50% EXIM 2011 - 12.09.2011 8.80% Tata Sons 2015 - 21.09.2015 9.15% EXIM Bank 08.03.2021 9.40% Tata Sons - 04.04.13 9.50% Nabard - 15.10.12 9.80% Nabard - 10.09.12 BIRLA CASH PLUS - INSTITUTIONAL PREMIUM - GROWTH ICICI Prud Liquid Plan - SI Growth Kotak Floater Short Term- Growth Total Others State Development Loan Mfg - Commercial Vehicles Vans,Lorries,Over-The-Road Tractors Etc Colln,Dist.-Electric Energy To Households, Industrial, Commercial Activities of Basic Telecom Services: Telephone, Telex,Telegraph Providing Software Support and Maintenance to the Clients Financial Leasing Net Current Assets Grand Total
Kotak Group Bond Fund 6,446 7,760 15,134 85,424 2,515 32,676 2,041 24,834 4,082 10,749 2,906 3,206 4,488 298,450
% of Total Funds 0.31% 0.37% 0.72% 4.06% 0.12% 1.55% 0.10% 1.18% 0.19% 0.51% 0.14% 0.15% 0.21% 14.18%
71,171 57,118 90,550 4,036 3,897 957 126,436 2,104,208
3.38% 2.71% 4.30% 0.19% 0.19% 0.05% 6.01% 100.00%
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Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Government of India 11.83% GoI 2014 364 Days T Bill - 15.07.2011 6.90% OIL SPL - 04.02.2026 7.27% GOI - 03.09.13 7.40% GOI 2012 - 03.05.12 7.46% GOI - 28.08.17 7.56% GOI 2014 - 03.11.14 7.59% GOI 2016 7.94% GOI - 24.05.21 7.95% GOI Fertilizer Bond - 18.02.26 8.08% GOI - 02.08.2022 8.13% GOI - 21.09.2022 8.24% GOI - 15.02.27 8.26% GOI - 02.08.27 8.30% GOI - 02.07.2040 8.32% GJ SDL - 09.10.2017 8.32% GOI - 02.08.2032 Total Monetary Intermediation of Commercial,Saving,Postal Savings Bank 10.10% SBH Bank FD - 12.03.2014 10.25% Axis Bank FD - 28.02.2013 10.25% IOB FD - 09.03.2013 10.30% Axis Bank FD - 14.03.2013 10.31% Union Bank FD - 30.03.2012 10.36% Union Bank FD - 28.03.2012 7.45% SBI - 05.05.2015 8.85% SBI Upper Tier II - 04.10.2021 Call 04.10.2016 9.05% SBH Perpetual Bond Call- 20.09.2020 9.05% SBI Perpetual Bond Call - 27.01.2020 9.15% PNB - 16.04.2016 9.70% Canara Bank FD - 20.12.2012 9.85% HDFC Bank 2019 - 17.03.2024 CALL 17.03.2019 9.95% SBI 2026 - 16.03.2026 Call 16.03.2021 6,000 2,000 10,100 5,000 6,368 1,134 5,310 920 6,151 11,249 3,392 5,000 371 2,237 1.79% 0.60% 3.02% 1.49% 1.90% 0.34% 1.59% 0.27% 1.84% 3.36% 1.01% 1.49% 0.11% 0.67% 679 647 10,549 91 3,109 68 1,948 569 4,451 1,160 7,710 14,454 4,495 409 249 1,302 50 51,939 0.20% 0.19% 3.15% 0.03% 0.93% 0.02% 0.58% 0.17% 1.33% 0.35% 2.30% 4.32% 1.34% 0.12% 0.07% 0.39% 0.02% 15.52% Bond Fund % of Total Funds
150
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Industry Axis Bank CD - 20.09.2011 Bank of India CD- 24.06.2011 Bank of India CD - 05.03.2012 Canara Bank CD - 25.08.2011 Corporation Bank CD - 07.09.2011 Corporation Bank CD - 20.8.2011 IDBI Bank CD - 10.05.11 State Bank of Mysore CD - 02.06.2011 State Bank of Travancore CD - 07.02.2012 State Bank of Travancore CD - 23.08.2011 Total Activities Auxiliary to Financial Service Activities N.E.C. 6.20% IRFC - 12.08.2013 7.19% NABARD - 29.04.2013 7.45% IRFC - 27.04.2014 7.95% Tata Sons - 19.04.2013 8.20% IRFC - 27.04.2015 8.20% NHB - 30.08.2013 8.45% EXIM Bank - 08.09.2015 8.50% Exim Bank Bonds 2011 8.80% Tata Sons 2015 - 21.09.2015 8.95% IRFC Ltd- 10.03.2025 9.15% EXIM Bank 08.03.2021 9.50% Nabard - 15.10.12 9.80% Nabard - 10.09.12 BIRLA CASH PLUS - INSTITUTIONAL PREMIUM - GROWTH ICICI Prud Liquid Plan - SI Growth Kotak Floater Short Term- Growth Total Others State Development Loan Mfg - Commercial Vehicles Vans,Lorries,Over-The-Road Tractors Etc Electric Power Generation By Non-Coal Based Thermal Colln,Dist.-Electric Energy To Households, Industrial, Commercial Activities of Basic Telecom Services: Telephone, Telex,Telegraph Providing Software Support and Maintenance to the Clients Other Credit Granting Net Current Assets Grand Total
Bond Fund 988 2,533 1,890 2,547 35 2,501 1,456 3,779 2,231 9,215 92,406
% of Total Funds 0.30% 0.76% 0.56% 0.76% 0.01% 0.75% 0.44% 1.13% 0.67% 2.75% 27.61%
1,951 4,630 2,029 459 802 1,658 7,421 3,366 4,121 178 228 455 1,191 2,106 2,323 3,252 36,170
0.58% 1.38% 0.61% 0.14% 0.24% 0.50% 2.22% 1.01% 1.23% 0.05% 0.07% 0.14% 0.36% 0.63% 0.69% 0.97% 10.81%
9,684 5,845 1,959 7,679 285 286 25,955 102,439 334,648
2.89% 1.75% 0.59% 2.29% 0.09% 0.09% 7.76% 30.61% 100.00%
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Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Government of India 11.83% GoI 2014 364 Days T Bill - 15.07.2011 6.90% OIL SPL - 04.02.2026 7.40% GOI 2012 - 03.05.12 7.56% GOI 2014 - 03.11.14 7.59% GOI 2016 7.94% GOI - 24.05.21 7.95% GOI Fertilizer Bond - 18.02.26 8.08% GOI - 02.08.2022 8.13% GOI - 21.09.2022 8.20% GOI - 15.02.22 8.24% GOI - 15.02.27 8.26% GOI - 02.08.27 8.32% GJ SDL - 09.10.2017 Total Monetary Intermediation of Commercial,Saving,Postal Savings Bank 10.10% SBH Bank FD - 12.03.2014 10.25% Axis Bank FD - 28.02.2013 10.25% IOB FD - 09.03.2013 10.30% Axis Bank FD - 14.03.2013 10.31% Union Bank FD - 30.03.2012 10.36% Union Bank FD - 28.03.2012 7.45% SBI - 05.05.2015 9.05% SBH Perpetual Bond Call- 20.09.2020 9.05% SBI Perpetual Bond Call - 27.01.2020 9.15% PNB - 16.04.2016 9.70% Canara Bank FD - 20.12.2012 9.85% HDFC Bank 2019 - 17.03.2024 CALL 17.03.2019 9.95% SBI 2026 - 16.03.2026 Call 16.03.2021 9.98% ICICI Perpetual Bond -CALL 13.09.16 Axis Bank CD - 20.09.2011 Bank of India CD- 24.06.2011 1,000 400 2,050 1,000 850 209 1,055 1,584 1,684 126 1,700 194 414 55 199 418 2.37% 0.95% 4.85% 2.37% 2.01% 0.49% 2.50% 3.75% 3.99% 0.30% 4.02% 0.46% 0.98% 0.13% 0.47% 0.99% 211 186 1,877 486 389 117 426 355 1,118 2,423 204 927 43 501 9,263 0.50% 0.44% 4.44% 1.15% 0.92% 0.28% 1.01% 0.84% 2.65% 5.74% 0.48% 2.19% 0.10% 1.19% 21.93% Pension Bond Fund II % of Total Funds
152
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Industry Bank of India CD - 05.03.2012 Canara Bank CD - 25.08.2011 Corporation Bank CD - 20.8.2011 State Bank of Mysore CD - 02.06.2011 State Bank of Travancore CD - 07.02.2012 State Bank of Travancore CD - 23.08.2011 Total Other Credit Granting 10.90% REC - 30.09.13 11.40% PFC - 28.11.13 7.75% REC - 17.11.2012 7.85% Sundaram Finance - 25.03.2013 8.00% REC- 05.08.2014 8.23% Sundaram Finance - 27.07.12 8.26% LIC Housing Finance - 08.07.2015 8.35% REC - 04.09.2014 8.48% LIC Housing Finance - 27.09.2013 8.5 % LIC Housing Finance 9 June 11 8.78% PFC- 11.12.2016 8.80% REC - 06.10.2019 8.80% REC - 25.10.2020 9.40% PFC - 25.03.13 9.50% HDFC - 27.02.13 9.75% HDFC - 08.03.2016 9.75% HDFC - 28.01.2014 HDFC Ltd Floater 5 Year INBMK + 120 bps - 18.01.2016 HDFC Ltd ZCB - 08.02.2012 Kotak Mahindra Prime Ltd CP - 08.07.11 Total Others State Development Loan Mfg - Commercial Vehicles Vans,Lorries,Over-The-Road Tractors Etc Electric Power Generation By Non-Coal Based Thermal Colln,Dist.-Electric Energy To Households, Industrial, Commercial Activities of Basic Telecom Services: Telephone, Telex,Telegraph Providing Software Support and Maintenance to the Clients Activities Auxiliary to Financial Service Activities N.E.C. Net Current Assets Grand Total
Pension Bond Fund II 198 1,085 350 974 208 933 16,686
% of Total Funds 0.47% 2.57% 0.83% 2.31% 0.49% 2.21% 39.50%
394 242 98 909 269 240 17 124 349 92 69 197 50 5 88 204 42 620 102 1,022 5,132
0.93% 0.57% 0.23% 2.15% 0.64% 0.57% 0.04% 0.29% 0.83% 0.22% 0.16% 0.47% 0.12% 0.01% 0.21% 0.48% 0.10% 1.47% 0.24% 2.42% 12.15%
1,444 1,376 42 2,086 79 92 4,181 1,860 42,240
3.42% 3.26% 0.10% 4.94% 0.19% 0.22% 9.90% 4.40% 100.00%
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Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Government of India 10.25% GOI - 30.05.21 11.83% GoI 2014 7.40% GOI 2012 - 03.05.12 7.59% GOI 2016 Total Monetary Intermediation of Commercial,Saving,Postal Savings Bank 10.25% Axis Bank FD - 28.02.2013 10.31% Union Bank FD - 30.03.2012 Bank of Baroda CD - 03.06.2011 Bank of India CD - 28.09.2011 Canara Bank CD - 25.08.2011 Corporation Bank CD - 07.09.2011 Corporation Bank CD - 20.8.2011 ICICI Bank Floater INBMK + 50 bps - 29.04.2011 State Bank of Mysore CD - 02.06.2011 State Bank of Patiala CD - 14.09.2011 State Bank of Travancore CD - 07.02.2012 State Bank of Travancore CD - 11.07.2011 State Bank of Travancore CD - 14.09.2011 State Bank of Travancore CD - 23.08.2011 UTI Bank Floater INBMK + 65 bps - 25.07.2012 Vijaya Bank CD - 24.05.2011 Total Other Credit Granting IDFC Ltd Floater Mibor+ 210 bps - 28.04.2011 Kotak Mahindra Prime Ltd CP - 08.07.11 PFC Floater Mibor +215 bps - 29.05.11 Total Activities Auxiliary to Financial Service Activities N.E.C. IRFC Floater INBMK - 10 bps - 22.06.2011 Tata Sons Floater Mibor+ 245 bps - 20.05.2011 Total Others State Development Loan Net Current Assets Grand Total 895 3,157 85,494 1.05% 3.69% 100.00% 7,288 6,587 13,875 8.52% 7.70% 16.23% 7,136 974 7,284 15,394 8.35% 1.14% 8.52% 18.01% 1,250 3,400 410 2,702 820 3,002 900 7,325 3,667 1,020 259 2,019 2,596 1,884 4,955 2,402 38,612 1.46% 3.98% 0.48% 3.16% 0.96% 3.51% 1.05% 8.57% 4.29% 1.19% 0.30% 2.36% 3.04% 2.20% 5.80% 2.81% 45.16% 1,214 1,049 5,634 5,663 13,560 1.42% 1.23% 6.59% 6.62% 15.86% Kotak Dynamic Floating Rate Fund % of Total Funds
154
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Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Government of India 10.25% GOI - 30.05.21 11.83% GoI 2014 7.40% GOI 2012 - 03.05.12 7.59% GOI 2016 Total Monetary Intermediation of Commercial,Saving,Postal Savings Bank 10.25% Axis Bank FD - 28.02.2013 10.31% Union Bank FD - 30.03.2012 Bank of Baroda CD - 03.06.2011 Bank of India CD - 28.09.2011 Canara Bank CD - 25.08.2011 Corporation Bank CD - 07.09.2011 Corporation Bank CD - 20.8.2011 ICICI Bank Floater INBMK + 50 bps - 29.04.2011 State Bank of Mysore CD - 02.06.2011 State Bank of Patiala CD - 14.09.2011 State Bank of Travancore CD - 11.07.2011 State Bank of Travancore CD - 14.09.2011 State Bank of Travancore CD - 23.08.2011 UTI Bank Floater INBMK + 65 bps - 25.07.2012 Vijaya Bank CD - 24.05.2011 Total Other Credit Granting IDFC Ltd Floater Mibor+ 210 bps - 28.04.2011 Kotak Mahindra Prime Ltd CP - 08.07.11 PFC Floater Mibor +215 bps - 29.05.11 Total Activities Auxiliary to Financial Service Activities N.E.C. IRFC Floater INBMK - 10 bps - 22.06.2011 Tata Sons Floater Mibor+ 245 bps - 20.05.2011 Total Others State Development Loan Net Current Assets Grand Total 1,757 6,901 200,707 0.88% 3.44% 100.00% 18,053 16,846 34,898 8.99% 8.39% 17.39% 18,264 2,629 17,842 38,736 9.10% 1.31% 8.89% 19.30% 3,000 8,000 196 5,716 2,255 7,004 2,001 18,004 6,074 2,753 7,363 5,116 4,761 7,433 6,613 86,289 1.49% 3.99% 0.10% 2.85% 1.12% 3.49% 1.00% 8.97% 3.03% 1.37% 3.67% 2.55% 2.37% 3.70% 3.29% 42.99% 3,161 2,779 12,460 13,726 32,126 1.57% 1.38% 6.21% 6.84% 16.01% Kotak Guaranteed Floating Rate Fund % of Total Funds
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Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Kotak Pension Floating Rate Fund % of Total Funds
Government of India 10.25% GOI - 30.05.21 11.83% GoI 2014 7.27% GOI - 03.09.13 7.40% GOI 2012 - 03.05.12 7.56% GOI 2014 - 03.11.14 7.59% GOI 2016 Total Monetary Intermediation of Commercial,Saving,Postal Savings Bank 10.25% Axis Bank FD - 28.02.2013 10.31% Union Bank FD - 30.03.2012 Bank of Baroda CD - 03.06.2011 Bank of India CD - 28.09.2011 Canara Bank CD - 25.08.2011 Corporation Bank CD - 07.09.2011 Corporation Bank CD - 20.8.2011 ICICI Bank Floater INBMK + 50 bps - 29.04.2011 State Bank of Mysore CD - 02.06.2011 State Bank of Patiala CD - 14.09.2011 State Bank of Travancore CD - 07.02.2012 State Bank of Travancore CD - 11.07.2011 State Bank of Travancore CD - 14.09.2011 State Bank of Travancore CD - 23.08.2011 UTI Bank Floater INBMK + 65 bps - 25.07.2012 Vijaya Bank CD - 24.05.2011 Total Other Credit Granting IDFC Ltd Floater Mibor+ 210 bps - 28.04.2011 Kotak Mahindra Prime Ltd CP - 08.07.11 PFC Floater Mibor +215 bps - 29.05.11 Total 7,251 1,071 7,375 15,697 7.36% 1.09% 7.49% 15.93% 1,450 3,900 512 2,390 697 3,402 1,000 7,225 4,513 1,071 1,014 2,919 1,940 1,989 5,946 2,518 42,487 1.47% 3.96% 0.52% 2.43% 0.71% 3.45% 1.02% 7.33% 4.58% 1.09% 1.03% 2.96% 1.97% 2.02% 6.04% 2.56% 43.13% 1,283 1,076 899 7,537 599 8,911 20,305 1.30% 1.09% 0.91% 7.65% 0.61% 9.05% 20.61%
156
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Industry Activities Auxiliary to Financial Service Activities N.E.C. BIRLA CASH PLUS - INSTITUTIONAL PREMIUM - GROWTH ICICI Prud Liquid Plan - SI Growth IRFC Floater INBMK - 10 bps - 22.06.2011 Kotak Floater Short Term- Growth Tata Sons Floater Mibor+ 245 bps - 20.05.2011 Total Others State Development Loan Net Current Assets Grand Total
Kotak Pension Floating Rate Fund
% of Total Funds
258 284 7,292 398 7,087 15,320
0.26% 0.29% 7.40% 0.40% 7.19% 15.55%
945 3,758 98,513
0.96% 3.82% 100.00%
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157
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Kotak Group Floating Rate Fund % of Total Funds
Government of India 10.25% GOI - 30.05.21 11.83% GoI 2014 7.40% GOI 2012 - 03.05.12 7.56% GOI 2014 - 03.11.14 7.59% GOI 2016 Total Monetary Intermediation of Commercial,Saving,Postal Savings Bank 10.25% Axis Bank FD - 28.02.2013 10.31% Union Bank FD - 30.03.2012 Bank of Baroda CD - 03.06.2011 Bank of India CD - 28.09.2011 Canara Bank CD - 25.08.2011 Corporation Bank CD - 07.09.2011 Corporation Bank CD - 20.8.2011 ICICI Bank Floater INBMK + 50 bps - 29.04.2011 State Bank of Mysore CD - 02.06.2011 State Bank of Patiala CD - 14.09.2011 State Bank of Travancore CD - 07.02.2012 State Bank of Travancore CD - 11.07.2011 State Bank of Travancore CD - 14.09.2011 State Bank of Travancore CD - 23.08.2011 UTI Bank Floater INBMK + 65 bps - 25.07.2012 Vijaya Bank CD - 24.05.2011 Total Other Credit Granting IDFC Ltd Floater Mibor+ 210 bps - 28.04.2011 Kotak Mahindra Prime Ltd CP - 08.07.11 PFC Floater Mibor +215 bps - 29.05.11 Total 9,128 1,363 9,993 20,484 7.91% 1.18% 8.66% 17.75% 1,700 4,600 564 2,692 1,128 4,002 1,200 9,908 3,396 1,658 1,015 4,043 1,714 2,530 7,436 3,427 51,014 1.47% 3.99% 0.49% 2.33% 0.98% 3.47% 1.04% 8.59% 2.94% 1.44% 0.88% 3.50% 1.49% 2.19% 6.44% 2.97% 44.21% 795 1,418 7,381 301 7,914 17,808 0.69% 1.23% 6.40% 0.26% 6.86% 15.43%
158
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Industry Activities Auxiliary to Financial Service Activities N.E.C. BIRLA CASH PLUS - INSTITUTIONAL PREMIUM - GROWTH ICICI Prud Liquid Plan - SI Growth IRFC Floater INBMK - 10 bps - 22.06.2011 Kotak Floater Short Term- Growth Tata Sons Floater Mibor+ 245 bps - 20.05.2011 Total Others State Development Loan Net Current Assets Grand Total
Kotak Group Floating Rate Fund
% of Total Funds
140 154 9,978 216 9,796 20,285
0.12% 0.13% 8.65% 0.19% 8.49% 17.58%
1,193 4,596 115,381
1.03% 3.98% 100.00%
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Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Government of India 10.25% GOI - 30.05.21 11.83% GoI 2014 7.40% GOI 2012 - 03.05.12 7.59% GOI 2016 Total Monetary Intermediation of Commercial,Saving,Postal Savings Bank 10.25% Axis Bank FD - 28.02.2013 10.31% Union Bank FD - 30.03.2012 Bank of Baroda CD - 03.06.2011 Bank of India CD - 28.09.2011 Canara Bank CD - 25.08.2011 Corporation Bank CD - 07.09.2011 Corporation Bank CD - 20.8.2011 ICICI Bank Floater INBMK + 50 bps - 29.04.2011 State Bank of Mysore CD - 02.06.2011 State Bank of Patiala CD - 14.09.2011 State Bank of Travancore CD - 11.07.2011 State Bank of Travancore CD - 14.09.2011 State Bank of Travancore CD - 23.08.2011 UTI Bank Floater INBMK + 65 bps - 25.07.2012 Vijaya Bank CD - 24.05.2011 Total Other Credit Granting IDFC Ltd Floater Mibor+ 210 bps - 28.04.2011 Kotak Mahindra Prime Ltd CP - 08.07.11 PFC Floater Mibor +215 bps - 29.05.11 Total Activities Auxiliary to Financial Service Activities N.E.C. BIRLA CASH PLUS - INSTITUTIONAL PREMIUM - GROWTH ICICI Prud Liquid Plan - SI Growth IRFC Floater INBMK - 10 bps - 22.06.2011 Kotak Floater Short Term- Growth Tata Sons Floater Mibor+ 245 bps - 20.05.2011 Total Others State Development Loan Net Current Assets Grand Total 12 493 1,762 0.70% 27.96% 100.00% 8 9 102 13 111 242 0.47% 0.51% 5.77% 0.72% 6.29% 13.76% 98 15 111 223 5.54% 0.83% 6.28% 12.65% 18 52 18 21 12 46 20 111 40 15 27 44 26 84 27 563 1.02% 2.95% 1.04% 1.18% 0.70% 2.61% 1.13% 6.32% 2.29% 0.87% 1.52% 2.52% 1.48% 4.78% 1.51% 31.94% 3 16 108 102 229 0.14% 0.89% 6.15% 5.80% 12.98% Floating Rate Fund % of Total Funds
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Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Kotak Group 36M FMP 02/01/2011 % of Total Funds 0.00% 0.00%
Others Grand Total
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Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Kotak Group 36M FMP 12/09/2011 % of Total Funds
Colln,Dist.-Electric Energy To Households, Industrial, Commercial 8.73% PGC 2011 Total Other Credit Granting 8.5 % LIC Housing Finance 9 June 11 Total Activities Auxiliary to Financial Service Activities N.E.C. 8.50% Exim Bank Bonds 2011 Total Others Net Current Assets Grand Total 431 10,271 4.19% 100.00% 4,142 4,142 40.33% 40.33% 1,824 1,824 17.76% 17.76% 3,874 3,874 37.72% 37.72%
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Manufacture of Other Petroleum N.E.C. 11.45% RIL - 25.11.13 Total Other Credit Granting 11.40% PFC - 28.11.13 11.50% REC - 26.11.13 Total Others Net Current Assets Grand Total 2,528 74,149 3.41% 100.00% 28,698 28,636 57,334 38.70% 38.62% 77.32% 14,287 14,287 19.27% 19.27%
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Other Credit Granting 9.50% HDFC - 27.02.13 Total Others Net Current Assets Grand Total 53 6,709 0.79% 100.00% 6,656 6,656 99.21% 99.21%
164
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Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level
Industry Manufacture of Other Petroleum N.E.C. 11.45% RIL - 25.11.13 Total Other Credit Granting 10.00% IDFC -16.12.13 Total Others Net Current Assets Grand Total
Kotak Group 59M FMP 08/12/2013
% of Total Funds
10,844 10,844
38.70% 38.70%
16,339 16,339
58.31% 58.31%
838 28,021
2.99% 100.00%
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Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Kotak Dynamic Balanced Fund % of Total Funds
Monetary Intermediation of Commercial,Saving,Postal Savings Bank 10.10% SBH Bank FD - 12.03.2014 10.15% IOB FD - 09.02.2013 10.25% Axis Bank FD - 28.02.2013 10.25% IOB FD - 09.03.2013 10.30% Axis Bank FD - 14.03.2013 10.31% Union Bank FD - 30.03.2012 10.36% Union Bank FD - 28.03.2012 7.00% HDFC FD1- 16.07.2011 7.00% HDFC FD2- 16.07.2011 7.05% HDFC FD- 24.07.2011 7.45% SBI - 05.05.2015 9.05% Canara Perpetual Bond Call- 03.08.2020 9.05% SBH Perpetual Bond Call- 20.09.2020 9.05% SBI Perpetual Bond Call - 27.01.2020 9.15% PNB - 16.04.2016 9.15% SBP Perpetual Bond CALL 18.01.2020 9.70% Canara Bank FD - 20.12.2012 9.85% HDFC Bank 2019 - 17.03.2024 CALL 17.03.2019 9.85% SBI - 27.06.2016 9.95% SBI 2026 - 16.03.2026 Call 16.03.2021 Axis Bank Ltd Bank of India CD - 05.03.2012 Canara Bank Canara Bank CD - 25.08.2011 Corporation Bank CD - 20.8.2011 HDFC Bank Ltd ICICI Bank Ltd Oriental Bank of Commerce State Bank of India State Bank of Patiala CD - 14.09.2011 State Bank of Travancore CD - 07.02.2012 State Bank of Travancore CD - 22.02.2012 Union Bank of India YES BANK LTD Total 2,500 783 2,300 372 840 780 1,211 162 75 158 1,040 1,943 2,032 1,195 1,317 845 1,050 197 309 3,543 2,492 944 2,072 2,454 1,001 5,773 7,857 153 4,872 1,237 2,535 2,020 1,402 2,108 59,570 1.04% 0.32% 0.95% 0.15% 0.35% 0.32% 0.50% 0.07% 0.03% 0.07% 0.43% 0.81% 0.84% 0.50% 0.55% 0.35% 0.44% 0.08% 0.13% 1.47% 1.03% 0.39% 0.86% 1.02% 0.42% 2.40% 3.26% 0.06% 2.02% 0.51% 1.05% 0.84% 0.58% 0.88% 24.73%
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Industry
Kotak Dynamic Balanced Fund
% of Total Funds
Other Credit Granting 11.25% HDFC - 04.09.18 11.40% PFC - 28.11.13 7.20% REC - 17.03.2012 7.20% REC - 17.03.2015 7.55% LIC Housing Finance - 28.06.2012 8.35% HDFC - 19.07.2015 8.35% REC - 04.09.2014 8.45% PFC - 15.10.2014 8.48% LIC Housing Finance - 27.09.2013 8.55% LIC Hsg Finance - 20.10.2011 8.60% PFC 2014 - 07.08.2014 8.78% PFC- 11.12.2016 8.80% REC - 25.10.2020 8.80% REC - 29.11.2020 8.95% HDFC - 19.10.2020 8.97% PFC - 15.01.2018 9.22% PFC - 28.12.12 9.32% HDFC - 17.12.12 9.45% HDFC - 11.01.2013 9.45% LIC Hsg Fin - 01.01.12 9.48% LIC Housing Finance - 11.01.2013 9.50% HDFC - 27.02.13 9.75% HDFC - 08.03.2016 9.75% HDFC - 28.01.2014 9.85% REC - 28.09.17 HDFC Ltd Floater 5 Year INBMK + 120 bps - 18.01.2016 HDFC Ltd ZCB - 30.08.2013 Housing Development Finance Corp. Ltd Infrastructure Development Finance Company Ltd Kotak Mahindra Prime Ltd CP - 08.07.11 Rural Electrification Corporation Ltd Shriram Transport Finance Co. Ltd Total 66 859 962 1,354 331 406 476 259 705 756 2,369 561 1,041 1,061 879 1,031 340 964 2,478 816 911 128 339 507 2,489 1,750 0 3,610 1,252 651 1,325 756 31,432 0.03% 0.36% 0.40% 0.56% 0.14% 0.17% 0.20% 0.11% 0.29% 0.31% 0.98% 0.23% 0.43% 0.44% 0.37% 0.43% 0.14% 0.40% 1.03% 0.34% 0.38% 0.05% 0.14% 0.21% 1.03% 0.73% 0.00% 1.50% 0.52% 0.27% 0.55% 0.31% 13.05%
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Industry Others Government of India State Development Loan On Shore Extraction of Crude Petroleum Manufacture of Other Dairy Products N.E.C. Manufacture or Refining of Sugar (Sucrose) From Sugercane Manufacture of Cigarettes, Cigarette Tobacco Manufacture of Other Petroleum N.E.C. Manufacture of Urea and Other Organic Fertilizers Manufacture of Other Agrochemical Products N.E.C. Manufacture of Paints and Varnishes, Enamels or Lacquers Manufacture of Other Perfumes and Toilet Preparations N.E.C. Manufacture of Synthetic or Artificial Filament Tow Manufacture of Allopathic Pharmaceutical Preparations Manufacture of Other Plastics Products N.E.C. Manufacture of Hot-Rolled and Cold-Rolled Products of Steel Manufacture of Copper From ore, & Other Copper Products & Alloys Manufacture of Power Generators, Motor Generator Sets Manufacture of Electricity Distribution and Control Apparatus Manufacture of Other General Purpose Machinery N.E.C. Manufacture of Passenger Cars Mfg - Commercial Vehicles Vans,Lorries,Over-The-Road Tractors Etc Manufacture of Motor Vehicles N.E.C. Mfg - Jewellery of Gold, Silver & Other Precious or Base Metal Electric Power Generation By Non-Coal Based Thermal Colln,Dist.-Electric Energy To Households, Industrial, Commercial Construction and Maintenance of Motorways, Streets, Roads Construction of Utility Projects N.E.C. Actvty-Commission Agent Dealing-Wholesale Trade Inwood,Paper,Skin Other Retail Sale Not In Stores, Stalls or Markets Storage and Warehousing N.E.C. Activities of Basic Telecom Services: Telephone, Telex,Telegraph Actvty-Maintain,Operating Cellur,Other Tetecommunication Network Providing Software Support and Maintenance to the Clients News Agency Activities Financial Leasing Activities Auxiliary to Financial Service Activities N.E.C. Net Current Assets Grand Total
Kotak Dynamic Balanced Fund
% of Total Funds
20,206 1,763 5,790 1,331 998 7,037 12,281 1,340 1,075 1,359 1,347 3,474 8,175 1,174 6,198 3,205 2,119 1,754 3,131 1,420 5,523 2,852 1,978 1,425 1,290 727 5,664 451 1,006 2,084 501 3,420 19,574 1,330 150 10,977 5,719 240,851
8.39% 0.73% 2.40% 0.55% 0.41% 2.92% 5.10% 0.56% 0.45% 0.56% 0.56% 1.44% 3.39% 0.49% 2.57% 1.33% 0.88% 0.73% 1.30% 0.59% 2.29% 1.18% 0.82% 0.59% 0.54% 0.30% 2.35% 0.19% 0.42% 0.87% 0.21% 1.42% 8.13% 0.55% 0.06% 4.56% 2.37% 100.00%
168
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Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Kotak Guaranteed Balanced Fund % of Total Funds
Government of India 11.43% GOI - 07.08.2015 364 Days T Bill - 15.07.2011 6.35% OMC GOI BOND - 23.12.2024 6.90% OIL SPL - 04.02.2026 7.40% GOI 2012 - 03.05.12 7.40% GOI 2035 - 09.09.35 7.59% GOI 2016 7.94% GOI - 24.05.21 7.95% Oil Bond - 18.01.25 8.07% GOI Jan 15, 2017 8.08% GOI - 02.08.2022 8.13% GOI - 21.09.2022 8.20% OMC GOI -15.09.24 8.24% GOI - 15.02.27 8.26% GOI - 02.08.27 8.35% GOI - 14.05.22 9.00% GOI - 24.05.2013 91 Days T Bill - 13.05.2011 Total Monetary Intermediation of Commercial,Saving,Postal Savings Bank 10.10% SBH Bank FD - 12.03.2014 10.15% IOB FD - 09.02.2013 10.25% Axis Bank FD - 28.02.2013 10.25% IOB FD - 09.03.2013 10.30% Axis Bank FD - 14.03.2013 10.31% Union Bank FD - 30.03.2012 10.36% Union Bank FD - 28.03.2012 7.00% HDFC FD1- 16.07.2011 7.00% HDFC FD2- 16.07.2011 7.05% HDFC FD- 24.07.2011 7.45% SBI - 05.05.2015 9.05% Canara Perpetual Bond Call- 03.08.2020 9.05% SBH Perpetual Bond Call- 20.09.2020 17,050 5,606 16,572 2,667 6,040 5,573 8,644 629 290 616 7,292 14,000 16,420 0.97% 0.32% 0.94% 0.15% 0.34% 0.32% 0.49% 0.04% 0.02% 0.04% 0.41% 0.80% 0.93% 2,427 8,141 6,531 5,398 1,285 3,640 11,222 24,295 20,465 1,927 41,930 29,910 6,616 15,031 25,555 738 3,733 9,127 217,972 0.14% 0.46% 0.37% 0.31% 0.07% 0.21% 0.64% 1.38% 1.16% 0.11% 2.39% 1.70% 0.38% 0.86% 1.45% 0.04% 0.21% 0.52% 12.40%
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Industry 9.05% SBI Perpetual Bond Call - 27.01.2020 9.15% PNB - 16.04.2016 9.15% SBP Perpetual Bond CALL 18.01.2020 9.50% Kotak Bank FD 31.01.2012 9.70% Canara Bank FD - 20.12.2012 9.85% HDFC Bank 2019 - 17.03.2024 CALL 17.03.2019 9.85% SBI - 27.06.2016 9.95% SBI 2026 - 16.03.2026 Call 16.03.2021 Axis Bank Ltd Bank of India CD - 05.03.2012 Canara Bank Canara Bank CD - 25.08.2011 Corporation Bank CD - 20.8.2011 HDFC Bank Ltd ICICI Bank Ltd Oriental Bank of Commerce State Bank of India State Bank of Patiala CD - 14.09.2011 State Bank of Travancore CD - 07.02.2012 State Bank of Travancore CD - 11.07.2011 State Bank of Travancore CD - 22.02.2012 State Bank of Travancore CD - 23.08.2011 Union Bank CD - 17.06.11 Union Bank of India Vijaya Bank CD - 09.09.2011 YES BANK LTD Total Other Credit Granting 10.85% REC - 14.08.18 11.15% PFC - 15.09.2011 11.40% PFC - 28.11.13 11.50% REC - 26.11.13 7.20% REC - 17.03.2012 7.20% REC -17.09.2012 7.55% LIC Housing Finance - 28.06.2012 7.80% Sundaram Finance 2011 - 28.07.2011 7.85% Sundaram Finance - 25.03.2013 8.00% REC- 05.08.2014 8.26% LIC Housing Finance - 08.07.2015 8.35% REC - 04.09.2014
Kotak Guaranteed Balanced Fund 8,385 11,414 11,774 17,711 12,500 13,500 2,266 25,376 8,999 6,773 8,940 17,214 7,168 22,633 31,952 2,139 19,114 8,796 22,673 3,193 1,313 17,081 8,921 5,712 20,093 8,966 426,003
% of Total Funds 0.48% 0.65% 0.67% 1.01% 0.71% 0.77% 0.13% 1.44% 0.51% 0.39% 0.51% 0.98% 0.41% 1.29% 1.82% 0.12% 1.09% 0.50% 1.29% 0.18% 0.07% 0.97% 0.51% 0.33% 1.14% 0.51% 24.24%
11,165 2,965 9,682 1,411 5,103 9,688 2,368 12,547 14,271 14,340 22,218 3,418
0.64% 0.17% 0.55% 0.08% 0.29% 0.55% 0.13% 0.71% 0.81% 0.82% 1.26% 0.19%
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Industry
Kotak Guaranteed Balanced Fund 5,551 22,798 990 2,691 27,448 3,946 7,274 2,835 6,252 7,059 7,384 1,358 3,750 2,461 3,949 7,434 3,019 4,557 992 4,995 2,456 3,623 22,316 12,500 10,390 8 14,189 6,799 4,683 5,725 2,921 12,926 334,453
% of Total Funds 0.32% 1.30% 0.06% 0.15% 1.56% 0.22% 0.41% 0.16% 0.36% 0.40% 0.42% 0.08% 0.21% 0.14% 0.22% 0.42% 0.17% 0.26% 0.06% 0.28% 0.14% 0.21% 1.27% 0.71% 0.59% 0.00% 0.81% 0.39% 0.27% 0.33% 0.17% 0.74% 19.03%
8.45% PFC - 15.10.2014 8.48% LIC Housing Finance - 27.09.2013 8.5 % LIC Housing Finance 9 June 11 8.55% LIC Hsg Finance - 20.10.2011 8.60% PFC 2014 - 07.08.2014 8.78% PFC- 11.12.2016 8.80% REC - 25.10.2020 8.80% REC - 29.11.2020 8.95% HDFC - 19.10.2020 8.95% PFC- 30.03.2015 8.97% PFC - 15.01.2018 8.98% HDFC - 26.11.2020 9.00% Bajaj Auto Finance - 02.11.2012 9.22% PFC - 28.12.12 9.32% HDFC - 17.12.12 9.45% HDFC - 11.01.2013 9.45% LIC Hsg Fin - 01.01.12 9.48% LIC Housing Finance - 11.01.2013 9.50% HDFC - 27.02.13 9.50% LIC Housing Finance - 18.02.2012 9.75% HDFC - 08.03.2016 9.75% HDFC - 28.01.2014 9.85% REC - 28.09.17 HDFC Ltd Floater 5 Year INBMK + 120 bps - 18.01.2016 HDFC Ltd ZCB - 08.02.2012 HDFC Ltd ZCB - 30.08.2013 Housing Development Finance Corp. Ltd Infrastructure Development Finance Company Ltd Kotak Mahindra Prime Ltd CP - 08.07.11 Rural Electrification Corporation Ltd Shriram Transport Finance Co. Ltd Sundaram Finance Ltd ZCB - 29.06.2012 Total Others State Development Loan On Shore Extraction of Crude Petroleum Manufacture of Other Dairy Products N.E.C. Manufacture of Biscuits, Cakes, Pastries, Rusks Etc. Manufacture or Refining of Sugar (Sucrose) From Sugercane Manufacture of Cigarettes, Cigarette Tobacco
25,859 23,318 5,482 271 3,751 29,118
1.47% 1.33% 0.31% 0.02% 0.21% 1.66%
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Industry
Kotak Guaranteed Balanced Fund 49,884 5,124 4,705 5,307 5,909 13,992 33,499 4,663 33,506 13,682 8,739 7,075 13,112 5,672 30,418 11,367 7,112 5,645 53,270 3,102 22,909 1,666 3,868 8,632 3,574 14,292 100,135 4,697 1,223 128,349 85,895 1,757,250
% of Total Funds 2.84% 0.29% 0.27% 0.30% 0.34% 0.80% 1.91% 0.27% 1.91% 0.78% 0.50% 0.40% 0.75% 0.32% 1.73% 0.65% 0.40% 0.32% 3.03% 0.18% 1.30% 0.09% 0.22% 0.49% 0.20% 0.81% 5.70% 0.27% 0.07% 7.30% 4.89% 100.00%
Manufacture of Other Petroleum N.E.C. Manufacture of Urea and Other Organic Fertilizers Manufacture of Other Agrochemical Products N.E.C. Manufacture of Paints and Varnishes, Enamels or Lacquers Manufacture of Other Perfumes and Toilet Preparations N.E.C. Manufacture of Synthetic or Artificial Filament Tow Manufacture of Allopathic Pharmaceutical Preparations Manufacture of Other Plastics Products N.E.C. Manufacture of Hot-Rolled and Cold-Rolled Products of Steel Manufacture of Copper From ore, & Other Copper Products & Alloys Manufacture of Power Generators, Motor Generator Sets Manufacture of Electricity Distribution and Control Apparatus Manufacture of Other General Purpose Machinery N.E.C. Manufacture of Passenger Cars Mfg - Commercial Vehicles Vans,Lorries,Over-The-Road Tractors Etc Manufacture of Motor Vehicles N.E.C. Mfg - Jewellery of Gold, Silver & Other Precious or Base Metal Electric Power Generation By Non-Coal Based Thermal Colln,Dist.-Electric Energy To Households, Industrial, Commercial Construction and Maintenance of Motorways, Streets, Roads Construction of Utility Projects N.E.C. Actvty-Commission Agent Dealing-Wholesale Trade Inwood,Paper,Skin Other Retail Sale Not In Stores, Stalls or Markets Storage and Warehousing N.E.C. Activities of Basic Telecom Services: Telephone, Telex,Telegraph Actvty-Maintain,Operating Cellur,Other Tetecommunication Network Providing Software Support and Maintenance to the Clients News Agency Activities Financial Leasing Activities Auxiliary to Financial Service Activities N.E.C. Net Current Assets Grand Total
172
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Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Government of India 11.43% GOI - 07.08.2015 364 Days T Bill - 15.07.2011 6.35% OMC GOI BOND - 23.12.2024 6.90% OIL SPL - 04.02.2026 7.00% GOI Fertilizer Bond - 10.12.22 7.02% GOI - 17.08.2016 7.40% GOI 2012 - 03.05.12 7.40% GOI 2035 - 09.09.35 7.56% GOI 2014 - 03.11.14 7.59% GOI 2016 7.75% OMC GOI BOND - 28.11.2021 7.94% GOI - 24.05.21 7.95% GOI - 28.08.32 7.95% Oil Bond - 18.01.25 8.07% GOI Jan 15, 2017 8.08% GOI - 02.08.2022 8.13% GOI - 21.09.2022 8.20% OMC GOI -15.09.24 8.20% OMC GOI Special Bond - 12.02.24 8.24% GOI - 15.02.27 8.26% GOI - 02.08.27 8.35% GOI - 14.05.22 9.00% GOI - 24.05.2013 91 Days T Bill - 13.05.2011 Total Monetary Intermediation of Commercial,Saving,Postal Savings Bank 10.10% SBH Bank FD - 12.03.2014 10.15% IOB FD - 09.02.2013 10.25% Axis Bank FD - 28.02.2013 10.25% IOB FD - 09.03.2013 10.30% Axis Bank FD - 14.03.2013 10.31% Union Bank FD - 30.03.2012 10.36% Union Bank FD - 28.03.2012 40,050 20,183 22,500 9,600 21,780 19,649 30,652 0.65% 0.33% 0.37% 0.16% 0.36% 0.32% 0.50% 7,824 29,488 29,280 19,142 79 8,130 442 12,918 2,047 4,916 5,315 86,422 8,905 73,280 7,025 126,059 98,383 21,562 1,108 48,676 113,494 5,355 13,251 42,082 765,181 0.13% 0.48% 0.48% 0.31% 0.00% 0.13% 0.01% 0.21% 0.03% 0.08% 0.09% 1.41% 0.15% 1.20% 0.11% 2.06% 1.61% 0.35% 0.02% 0.79% 1.85% 0.09% 0.22% 0.69% 12.49% Kotak Pension Balanced Fund % of Total Funds
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Industry
Kotak Pension Balanced Fund 17,280 504 2,147 991 2,110 9,849 45,268 61,281 11,428 54,919 19,285 8,752 55,000 40,169 7,930 90,190 32,780 8,394 2,370 24,392 31,651 1,215 798 1,510 25,183 79,635 113,679 1,007 7,749 1,510 67,255 806 11,803 86,403 17,455 2,452 20,199 38,889 1,208 20,172 31,917 1,221,946
% of Total Funds 0.28% 0.01% 0.04% 0.02% 0.03% 0.16% 0.74% 1.00% 0.19% 0.90% 0.31% 0.14% 0.90% 0.66% 0.13% 1.47% 0.53% 0.14% 0.04% 0.40% 0.52% 0.02% 0.01% 0.02% 0.41% 1.30% 1.86% 0.02% 0.13% 0.02% 1.10% 0.01% 0.19% 1.41% 0.28% 0.04% 0.33% 0.63% 0.02% 0.33% 0.52% 19.94%
11.10% IDBI - 26.09.13 11.50% ICICI SLR -19.08.2011 7.00% HDFC FD1- 16.07.2011 7.00% HDFC FD2- 16.07.2011 7.05% HDFC FD- 24.07.2011 7.45% SBI - 05.05.2015 9.05% Canara Perpetual Bond Call- 03.08.2020 9.05% SBH Perpetual Bond Call- 20.09.2020 9.05% SBI Perpetual Bond Call - 27.01.2020 9.15% PNB - 16.04.2016 9.15% SBP Perpetual Bond CALL 18.01.2020 9.50% Kotak Bank FD 31.01.2012 9.70% Canara Bank FD - 20.12.2012 9.85% HDFC Bank 2019 - 17.03.2024 CALL 17.03.2019 9.85% SBI - 27.06.2016 9.95% SBI 2026 - 16.03.2026 Call 16.03.2021 Axis Bank Ltd Bank of Baroda CD - 03.06.2011 Bank of India CD- 24.06.2011 Bank of India CD - 05.03.2012 Canara Bank Canara Bank CD - 06.05.2011 Canara Bank CD - 25.08.2011 Corporation Bank CD - 07.09.2011 Corporation Bank CD - 20.8.2011 HDFC Bank Ltd ICICI Bank Ltd IDBI Bank CD - 10.05.11 Oriental Bank of Commerce State Bank of Bikaner & Jaipur CD - 28.06.2011 State Bank of India State Bank of Mysore CD - 02.06.2011 State Bank of Patiala CD - 14.09.2011 State Bank of Travancore CD - 07.02.2012 State Bank of Travancore CD - 11.07.2011 State Bank of Travancore CD - 14.09.2011 State Bank of Travancore CD - 22.02.2012 State Bank of Travancore CD - 23.08.2011 Union Bank CD - 17.06.11 Union Bank of India YES BANK LTD Total
174
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Industry Other Credit Granting 10.00% IDFC -16.12.13 11.10% PFC - 15.09.13 11.15% PFC - 15.09.2011 11.15% REC - 24.10.2018 11.40% PFC - 28.11.13 7.20% REC - 17.03.2012 7.20% REC - 17.03.2013 7.20% REC - 17.03.2015 7.30% REC- 30.06.2011 7.35% HDFC- 15.02.2012 7.55% LIC Housing Finance - 28.06.2012 7.70% REC - 02.06.2014 7.80% Sundaram Finance 2011 - 28.07.2011 7.85% Sundaram Finance - 25.03.2013 8.00% REC- 05.08.2014 8.23% Sundaram Finance - 27.07.12 8.26% LIC Housing Finance - 08.07.2015 8.28 IDFC 2011 8.35% HDFC - 19.07.2015 8.35% REC - 04.09.2014 8.45% PFC - 15.10.2014 8.45% PFC - 17.09.2014 8.48% LIC Housing Finance - 27.09.2013 8.5 % LIC Housing Finance 9 June 11 8.55% LIC Hsg Finance - 20.10.2011 8.60% PFC 2014 - 07.08.2014 8.65% REC 2019- 15.01.2019 8.75% Bajaj Auto Finance - 24.06.2011 8.78% PFC- 11.12.2016 8.80% PFC - 15.01.2025 8.80% REC - 06.10.2019 8.80% REC - 25.10.2020 8.80% REC - 29.11.2020 8.88% LIC Housing Finance - 13.10.2020 8.95% HDFC - 19.10.2020 8.95% PFC- 30.03.2015 8.97% PFC - 15.01.2018 8.98% HDFC - 26.11.2020 9.00% Bajaj Auto Finance - 02.11.2012 9.07% REC - 28.02.2018
Kotak Pension Balanced Fund
% of Total Funds
4,868 13,304 10,646 6,203 30,474 3,728 1,961 10,228 17,400 26,697 8,359 13,114 30,372 48,048 8,739 24,372 76,489 7,814 7,800 12,370 24,620 29,206 78,902 1,243 6,941 74,160 2,916 8,705 14,021 19,425 31,605 26,569 21,204 29,254 22,173 26,121 26,891 16,119 19,690 5,977
0.08% 0.22% 0.17% 0.10% 0.50% 0.06% 0.03% 0.17% 0.28% 0.44% 0.14% 0.21% 0.50% 0.78% 0.14% 0.40% 1.25% 0.13% 0.13% 0.20% 0.40% 0.48% 1.29% 0.02% 0.11% 1.21% 0.05% 0.14% 0.23% 0.32% 0.52% 0.43% 0.35% 0.48% 0.36% 0.43% 0.44% 0.26% 0.32% 0.10%
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Industry
Kotak Pension Balanced Fund 9,094 3,452 14,967 15,865 8,293 8,493 1,662 31,335 30,835 12,871 82,902 45,500 23 49,932 29,294 24,490 17,040 2,259 20,203 10,666 15,283 1,283,191
% of Total Funds 0.15% 0.06% 0.24% 0.26% 0.14% 0.14% 0.03% 0.51% 0.50% 0.21% 1.35% 0.74% 0.00% 0.81% 0.48% 0.40% 0.28% 0.04% 0.33% 0.17% 0.25% 20.94%
9.22% PFC - 28.12.12 9.32% HDFC - 17.12.12 9.45% HDFC - 11.01.2013 9.45% LIC Hsg Fin - 01.01.12 9.45% REC - 04.04.13 9.48% LIC Housing Finance - 11.01.2013 9.50% HDFC - 27.02.13 9.50% LIC Housing Finance - 18.02.2012 9.75% HDFC - 08.03.2016 9.75% HDFC - 28.01.2014 9.85% REC - 28.09.17 HDFC Ltd Floater 5 Year INBMK + 120 bps - 18.01.2016 HDFC Ltd ZCB - 30.08.2013 Housing Development Finance Corp. Ltd IDFC Ltd Floater Mibor+ 210 bps - 28.04.2011 Infrastructure Development Finance Company Ltd Kotak Mahindra Prime Ltd CP - 08.07.11 PFC Floater Mibor +215 bps - 29.05.11 Rural Electrification Corporation Ltd Shriram Transport Finance Co. Ltd Sundaram Finance Ltd ZCB - 29.06.2012 Total Others State Development Loan On Shore Extraction of Crude Petroleum Manufacture of Other Dairy Products N.E.C. Manufacture of Biscuits, Cakes, Pastries, Rusks Etc. Manufacture or Refining of Sugar (Sucrose) From Sugercane Manufacture of Cigarettes, Cigarette Tobacco Manufacture of Other Petroleum N.E.C. Manufacture of Urea and Other Organic Fertilizers Manufacture of Other Agrochemical Products N.E.C. Manufacture of Paints and Varnishes, Enamels or Lacquers Manufacture of Other Perfumes and Toilet Preparations N.E.C. Manufacture of Synthetic or Artificial Filament Tow Manufacture of Allopathic Pharmaceutical Preparations Manufacture of Other Plastics Products N.E.C. Manufacture of Hot-Rolled and Cold-Rolled Products of Steel Manufacture of Copper From ore, & Other Copper Products & Alloys Manufacture of Power Generators, Motor Generator Sets
54,871 84,393 19,795 868 13,692 102,971 187,143 18,686 17,036 19,110 20,998 49,551 120,756 17,009 112,296 49,770 31,426
0.90% 1.38% 0.32% 0.01% 0.22% 1.68% 3.05% 0.30% 0.28% 0.31% 0.34% 0.81% 1.97% 0.28% 1.83% 0.81% 0.51%
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Industry
Kotak Pension Balanced Fund 25,643 46,868 20,538 108,774 40,095 25,472 26,230 228,790 11,317 80,723 5,906 13,972 30,767 12,962 50,665 351,193 16,698 2,264 572,661 265,694 6,127,923
% of Total Funds 0.42% 0.76% 0.34% 1.78% 0.65% 0.42% 0.43% 3.73% 0.18% 1.32% 0.10% 0.23% 0.50% 0.21% 0.83% 5.73% 0.27% 0.04% 9.35% 4.34% 100.00%
Manufacture of Electricity Distribution and Control Apparatus Manufacture of Other General Purpose Machinery N.E.C. Manufacture of Passenger Cars Mfg - Commercial Vehicles Vans,Lorries,Over-The-Road Tractors Etc Manufacture of Motor Vehicles N.E.C. Mfg - Jewellery of Gold, Silver & Other Precious or Base Metal Electric Power Generation By Non-Coal Based Thermal Colln,Dist.-Electric Energy To Households, Industrial, Commercial Construction and Maintenance of Motorways, Streets, Roads Construction of Utility Projects N.E.C. Actvty-Commission Agent Dealing-Wholesale Trade Inwood,Paper,Skin Other Retail Sale Not In Stores, Stalls or Markets Storage and Warehousing N.E.C. Activities of Basic Telecom Services: Telephone, Telex,Telegraph Actvty-Maintain,Operating Cellur,Other Tetecommunication Network Providing Software Support and Maintenance to the Clients News Agency Activities Financial Leasing Activities Auxiliary to Financial Service Activities N.E.C. Net Current Assets Grand Total
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Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Kotak Group Balanced Fund % of Total Funds
Monetary Intermediation of Commercial,Saving,Postal Savings Bank 10.10% SBH Bank FD - 12.03.2014 10.15% IOB FD - 09.02.2013 10.25% Axis Bank FD - 28.02.2013 10.25% IOB FD - 09.03.2013 10.30% Axis Bank FD - 14.03.2013 10.31% Union Bank FD - 30.03.2012 10.36% Union Bank FD - 28.03.2012 7.00% HDFC FD1- 16.07.2011 7.00% HDFC FD2- 16.07.2011 7.05% HDFC FD- 24.07.2011 7.45% SBI - 05.05.2015 9.05% Canara Perpetual Bond Call- 03.08.2020 9.05% SBH Perpetual Bond Call- 20.09.2020 9.05% SBI Perpetual Bond Call - 27.01.2020 9.15% PNB - 16.04.2016 9.15% SBP Perpetual Bond CALL 18.01.2020 9.70% Canara Bank FD - 20.12.2012 9.85% HDFC Bank 2019 - 17.03.2024 CALL 17.03.2019 9.85% SBI - 27.06.2016 9.95% SBI 2026 - 16.03.2026 Call 16.03.2021 Axis Bank Ltd Bank of India CD - 05.03.2012 Canara Bank Canara Bank CD - 25.08.2011 Corporation Bank CD - 20.8.2011 HDFC Bank Ltd ICICI Bank Ltd Oriental Bank of Commerce State Bank of India State Bank of Patiala CD - 14.09.2011 State Bank of Travancore CD - 07.02.2012 State Bank of Travancore CD - 11.07.2011 State Bank of Travancore CD - 22.02.2012 Union Bank of India YES BANK LTD Total 15,000 4,928 14,500 2,344 5,300 4,956 7,668 950 439 937 6,153 12,317 7,350 6,964 7,543 4,644 6,400 2,179 1,854 22,417 19,001 5,933 14,424 14,523 8,392 38,052 52,666 1,971 32,133 7,210 10,141 5,441 10,099 9,630 13,708 378,169 0.89% 0.29% 0.86% 0.14% 0.32% 0.30% 0.46% 0.06% 0.03% 0.06% 0.37% 0.73% 0.44% 0.42% 0.45% 0.28% 0.38% 0.13% 0.11% 1.34% 1.13% 0.35% 0.86% 0.87% 0.50% 2.27% 3.14% 0.12% 1.92% 0.43% 0.60% 0.32% 0.60% 0.57% 0.82% 22.55%
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Industry Other Credit Granting 11.25% HDFC - 04.09.18 11.40% PFC - 28.11.13 7.20% REC - 17.03.2012 7.20% REC - 17.03.2013 7.20% REC - 17.03.2015 7.20% REC -17.09.2012 7.55% LIC Housing Finance - 28.06.2012 7.85% Sundaram Finance - 25.03.2013 8.23% Sundaram Finance - 27.07.12 8.28 IDFC 2011 8.35% REC - 04.09.2014 8.45% PFC - 15.10.2014 8.48% LIC Housing Finance - 27.09.2013 8.60% PFC 2014 - 07.08.2014 8.70% PFC- 14.05.2020 8.78% PFC- 11.12.2016 8.80% REC - 25.10.2020 8.80% REC - 29.11.2020 8.95% HDFC - 19.10.2020 8.95% PFC- 30.03.2015 8.97% PFC - 15.01.2018 8.98% HDFC - 26.11.2020 9.00% Bajaj Auto Finance - 02.11.2012 9.22% PFC - 28.12.12 9.32% HDFC - 17.12.12 9.45% HDFC - 11.01.2013 9.45% LIC Hsg Fin - 01.01.12 9.48% LIC Housing Finance - 11.01.2013 9.50% HDFC - 27.02.13 9.50% LIC Housing Finance - 18.02.2012 9.75% HDFC - 08.03.2016 9.75% HDFC - 28.01.2014 9.85% REC - 28.09.17 HDFC Ltd Floater 5 Year INBMK + 120 bps - 18.01.2016 HDFC Ltd ZCB - 08.02.2012 HDFC Ltd ZCB - 30.08.2013 Housing Development Finance Corp. Ltd Infrastructure Development Finance Company Ltd Kotak Mahindra Prime Ltd CP - 08.07.11 Rural Electrification Corporation Ltd Shriram Transport Finance Co. Ltd Total
Kotak Group Balanced Fund
% of Total Funds
183 8,584 8,078 1,118 9,007 2,856 1,929 13,367 4,874 668 2,942 1,635 11,159 18,037 219 3,296 6,283 5,219 5,177 1,631 6,463 452 1,097 2,091 1,488 17,273 2,021 8,036 406 596 2,109 3,204 15,255 10,950 3,096 3 23,793 10,320 4,109 9,349 10,310 238,683
0.01% 0.51% 0.48% 0.07% 0.54% 0.17% 0.12% 0.80% 0.29% 0.04% 0.18% 0.10% 0.67% 1.08% 0.01% 0.20% 0.37% 0.31% 0.31% 0.10% 0.39% 0.03% 0.07% 0.12% 0.09% 1.03% 0.12% 0.48% 0.02% 0.04% 0.13% 0.19% 0.91% 0.65% 0.18% 0.00% 1.42% 0.62% 0.24% 0.56% 0.61% 14.23%
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Industry Others Government of India State Development Loan On Shore Extraction of Crude Petroleum Manufacture of Other Dairy Products N.E.C. Manufacture or Refining of Sugar (Sucrose) From Sugercane Manufacture of Cigarettes, Cigarette Tobacco Manufacture of Other Petroleum N.E.C. Manufacture of Urea and Other Organic Fertilizers Manufacture of Other Agrochemical Products N.E.C. Manufacture of Paints and Varnishes, Enamels or Lacquers Manufacture of Other Perfumes and Toilet Preparations N.E.C. Manufacture of Synthetic or Artificial Filament Tow Manufacture of Allopathic Pharmaceutical Preparations Manufacture of Other Plastics Products N.E.C. Manufacture of Hot-Rolled and Cold-Rolled Products of Steel Manufacture of Copper From ore, & Other Copper Products & Alloys Manufacture of Power Generators, Motor Generator Sets Manufacture of Electricity Distribution and Control Apparatus Manufacture of Other General Purpose Machinery N.E.C. Manufacture of Passenger Cars Mfg - Commercial Vehicles Vans,Lorries,Over-The-Road Tractors Etc Manufacture of Motor Vehicles N.E.C. Mfg - Jewellery of Gold, Silver & Other Precious or Base Metal Electric Power Generation By Non-Coal Based Thermal Colln,Dist.-Electric Energy To Households, Industrial, Commercial Construction and Maintenance of Motorways, Streets, Roads Construction of Utility Projects N.E.C. Actvty-Commission Agent Dealing-Wholesale Trade Inwood,Paper,Skin Other Retail Sale Not In Stores, Stalls or Markets Storage and Warehousing N.E.C. Activities of Basic Telecom Services: Telephone, Telex,Telegraph Actvty-Maintain,Operating Cellur,Other Tetecommunication Network Providing Software Support and Maintenance to the Clients News Agency Activities Financial Leasing Activities Auxiliary to Financial Service Activities N.E.C. Net Current Assets Grand Total
Kotak Group Balanced Fund
% of Total Funds
152,555 10,655 39,277 9,663 7,222 48,921 81,369 9,641 7,004 9,532 9,916 23,783 55,003 9,597 47,703 22,639 14,119 11,966 21,421 9,464 35,452 18,732 12,414 9,581 26,705 5,124 37,909 2,699 6,937 14,461 3,103 23,713 134,389 9,521 320 140,834 (22,985) 1,677,212
9.10% 0.64% 2.34% 0.58% 0.43% 2.92% 4.85% 0.57% 0.42% 0.57% 0.59% 1.42% 3.28% 0.57% 2.84% 1.35% 0.84% 0.71% 1.28% 0.56% 2.11% 1.12% 0.74% 0.57% 1.59% 0.31% 2.26% 0.16% 0.41% 0.86% 0.19% 1.41% 8.01% 0.57% 0.02% 8.40% -1.37% 100.00%
180
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Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Government of India 10.25% GOI - 30.05.21 11.43% GOI - 07.08.2015 364 Days T Bill - 15.07.2011 6.35% OMC GOI BOND - 23.12.2024 6.90% OIL SPL - 04.02.2026 7.40% GOI 2012 - 03.05.12 7.46% GOI - 28.08.17 7.95% Oil Bond - 18.01.25 8.08% GOI - 02.08.2022 8.13% GOI - 21.09.2022 8.24% GOI - 15.02.27 8.26% GOI - 02.08.27 8.30% GOI - 02.07.2040 Total Monetary Intermediation of Commercial,Saving,Postal Savings Bank 10.30% Axis Bank FD - 14.03.2013 7.00% HDFC FD1- 16.07.2011 7.00% HDFC FD2- 16.07.2011 7.05% HDFC FD- 24.07.2011 9.05% Canara Perpetual Bond Call- 03.08.2020 9.05% SBH Perpetual Bond Call- 20.09.2020 9.05% SBI Perpetual Bond Call - 27.01.2020 9.15% PNB - 16.04.2016 9.95% SBI 2026 - 16.03.2026 Call 16.03.2021 Axis Bank Ltd Bank of Baroda CD - 03.06.2011 Bank of India CD - 05.03.2012 Canara Bank Canara Bank CD - 02.05.2011 Canara Bank CD - 25.08.2011 Corporation Bank CD - 20.8.2011 HDFC Bank Ltd ICICI Bank Ltd Oriental Bank of Commerce State Bank of Bikaner & Jaipur CD - 28.06.2011 State Bank of India State Bank of Travancore CD - 07.02.2012 30 1 1 1 87 192 139 48 171 117 70 42 101 203 303 50 282 376 16 205 243 100 0.25% 0.01% 0.01% 0.01% 0.73% 1.61% 1.17% 0.40% 1.43% 0.98% 0.59% 0.36% 0.85% 1.70% 2.54% 0.42% 2.36% 3.15% 0.14% 1.71% 2.04% 0.84% 15 15 39 3 57 117 3 96 721 218 40 22 10 1,355 0.12% 0.12% 0.33% 0.03% 0.48% 0.98% 0.03% 0.80% 6.04% 1.83% 0.33% 0.19% 0.08% 11.36% Balanced Fund % of Total Funds
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Industry State Bank of Travancore CD - 11.07.2011 State Bank of Travancore CD - 14.09.2011 State Bank of Travancore CD - 22.02.2012 Union Bank of India YES BANK LTD Total Others State Development Loan On Shore Extraction of Crude Petroleum Manufacture of Other Dairy Products N.E.C. Manufacture or Refining of Sugar (Sucrose) From Sugercane Manufacture of Cigarettes, Cigarette Tobacco Manufacture of Other Petroleum N.E.C. Manufacture of Urea and Other Organic Fertilizers Manufacture of Other Agrochemical Products N.E.C. Manufacture of Paints and Varnishes, Enamels or Lacquers Manufacture of Other Perfumes and Toilet Preparations N.E.C. Manufacture of Synthetic or Artificial Filament Tow Manufacture of Allopathic Pharmaceutical Preparations Manufacture of Other Plastics Products N.E.C. Manufacture of Hot-Rolled and Cold-Rolled Products of Steel Manufacture of Copper From ore, & Other Copper Products & Alloys Manufacture of Power Generators, Motor Generator Sets Manufacture of Electricity Distribution and Control Apparatus Manufacture of Other General Purpose Machinery N.E.C. Manufacture of Passenger Cars Mfg - Commercial Vehicles Vans,Lorries,Over-The-Road Tractors Etc Manufacture of Motor Vehicles N.E.C. Mfg - Jewellery of Gold, Silver & Other Precious or Base Metal Electric Power Generation By Non-Coal Based Thermal Colln,Dist.-Electric Energy To Households, Industrial, Commercial Construction and Maintenance of Motorways, Streets, Roads Construction of Utility Projects N.E.C. Actvty-Commission Agent Dealing-Wholesale Trade Inwood,Paper,Skin Other Retail Sale Not In Stores, Stalls or Markets Storage and Warehousing N.E.C. Actvty-Maintain,Operating Cellur,Other Tetecommunication Network Providing Software Support and Maintenance to the Clients News Agency Activities Other Credit Granting Activities Auxiliary to Financial Service Activities N.E.C. Net Current Assets Grand Total
Balanced Fund 41 52 101 71 105 3,148
% of Total Funds 0.35% 0.43% 0.85% 0.59% 0.88% 26.39%
52 282 67 49 341 603 72 52 68 70 167 397 64 257 169 103 84 151 71 253 139 111 69 227 37 281 23 44 102 169 964 68 944 767 112 11,930
0.44% 2.36% 0.56% 0.41% 2.86% 5.05% 0.61% 0.44% 0.57% 0.59% 1.40% 3.33% 0.54% 2.15% 1.42% 0.86% 0.70% 1.26% 0.59% 2.12% 1.17% 0.93% 0.58% 1.90% 0.31% 2.35% 0.20% 0.37% 0.85% 1.42% 8.08% 0.57% 7.91% 6.43% 0.94% 100.00%
182
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Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Pension Balanced Fund II % of Total Funds
Monetary Intermediation of Commercial,Saving,Postal Savings Bank 10.30% Axis Bank FD - 14.03.2013 7.00% HDFC FD1- 16.07.2011 7.00% HDFC FD2- 16.07.2011 7.05% HDFC FD- 24.07.2011 9.05% Canara Perpetual Bond Call- 03.08.2020 9.95% SBI 2026 - 16.03.2026 Call 16.03.2021 Axis Bank Ltd Bank of Baroda CD - 03.06.2011 Bank of India CD - 05.03.2012 Canara Bank Canara Bank CD - 25.08.2011 Corporation Bank CD - 20.8.2011 HDFC Bank Ltd ICICI Bank Ltd Oriental Bank of Commerce State Bank of India State Bank of Mysore CD - 02.06.2011 State Bank of Travancore CD - 14.09.2011 Union Bank CD - 17.06.11 Union Bank of India YES BANK LTD Total Other Credit Granting 11.15% REC - 24.10.2018 11.40% PFC - 28.11.13 7.20% REC - 17.03.2015 8.35% HDFC - 19.07.2015 8.35% REC - 04.09.2014 8.45% PFC - 15.10.2014 8.95% PFC- 30.03.2015 8.97% PFC - 15.01.2018 9.45% LIC Hsg Fin - 01.01.12 9.75% HDFC - 08.03.2016 9.75% HDFC - 28.01.2014 9.85% REC - 28.09.17 62 121 206 112 39 46 489 89 16 32 44 467 0.28% 0.56% 0.94% 0.51% 0.18% 0.21% 2.25% 0.41% 0.07% 0.14% 0.20% 2.14% 80 4 2 4 166 314 197 88 83 181 407 90 507 693 32 437 106 310 314 125 186 4,325 0.37% 0.02% 0.01% 0.02% 0.76% 1.44% 0.90% 0.41% 0.38% 0.83% 1.87% 0.41% 2.33% 3.18% 0.14% 2.01% 0.48% 1.43% 1.44% 0.57% 0.85% 19.87%
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Industry HDFC Ltd Floater 5 Year INBMK + 120 bps - 18.01.2016 HDFC Ltd ZCB - 08.02.2012 Housing Development Finance Corp. Ltd Infrastructure Development Finance Company Ltd Rural Electrification Corporation Ltd Shriram Transport Finance Co. Ltd Total Others Government of India State Development Loan On Shore Extraction of Crude Petroleum Manufacture of Other Dairy Products N.E.C. Manufacture or Refining of Sugar (Sucrose) From Sugercane Manufacture of Cigarettes, Cigarette Tobacco Manufacture of Other Petroleum N.E.C. Manufacture of Urea and Other Organic Fertilizers Manufacture of Other Agrochemical Products N.E.C. Manufacture of Paints and Varnishes, Enamels or Lacquers Manufacture of Other Perfumes and Toilet Preparations N.E.C. Manufacture of Synthetic or Artificial Filament Tow Manufacture of Allopathic Pharmaceutical Preparations Manufacture of Other Plastics Products N.E.C. Manufacture of Hot-Rolled and Cold-Rolled Products of Steel Manufacture of Copper From ore, & Other Copper Products & Alloys Manufacture of Power Generators, Motor Generator Sets Manufacture of Electricity Distribution and Control Apparatus Manufacture of Other General Purpose Machinery N.E.C. Manufacture of Passenger Cars Mfg - Commercial Vehicles Vans,Lorries,Over-The-Road Tractors Etc Manufacture of Motor Vehicles N.E.C. Mfg - Jewellery of Gold, Silver & Other Precious or Base Metal Electric Power Generation By Non-Coal Based Thermal Colln,Dist.-Electric Energy To Households, Industrial, Commercial Construction and Maintenance of Motorways, Streets, Roads Construction of Utility Projects N.E.C. Actvty-Commission Agent Dealing-Wholesale Trade Inwood,Paper,Skin Other Retail Sale Not In Stores, Stalls or Markets Storage and Warehousing N.E.C. Actvty-Maintain,Operating Cellur,Other Tetecommunication Network Providing Software Support and Maintenance to the Clients News Agency Activities Activities Auxiliary to Financial Service Activities N.E.C. Net Current Assets Grand Total
Pension Balanced Fund II 160 125 320 132 116 64 2,640
% of Total Funds 0.74% 0.58% 1.47% 0.61% 0.53% 0.30% 12.13%
1,786 270 511 122 90 636 1,096 131 95 116 126 310 725 115 466 301 188 150 287 125 490 254 179 127 1,258 66 505 39 93 187 307 1,741 122 1,390 402 21,767
8.20% 1.24% 2.35% 0.56% 0.41% 2.92% 5.03% 0.60% 0.44% 0.53% 0.58% 1.42% 3.33% 0.53% 2.14% 1.38% 0.86% 0.69% 1.32% 0.57% 2.25% 1.17% 0.82% 0.58% 5.78% 0.30% 2.32% 0.18% 0.43% 0.86% 1.41% 8.00% 0.56% 6.38% 1.85% 100.00%
184
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Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Providing Software Support and Maintenance to the Clients 10.25% Tech Mahindra - 17.04.14 HCL Technologies Ltd Infosys Technologies Ltd Tata Consultancy Services Ltd Total Monetary Intermediation of Commercial,Saving,Postal Savings Bank 7.00% HDFC FD1- 16.07.2011 7.00% HDFC FD2- 16.07.2011 7.05% HDFC FD- 24.07.2011 7.45% SBI - 05.05.2015 9.15% PNB - 16.04.2016 9.15% SBP Perpetual Bond CALL 18.01.2020 9.35% BOI - 31.07.2021 Call 31.07.2016 9.85% HDFC Bank 2019 - 17.03.2024 CALL 17.03.2019 9.85% SBI - 27.06.2016 9.98% ICICI Perpetual Bond -CALL 13.09.16 Axis Bank Ltd Canara Bank HDFC Bank Ltd ICICI Bank Ltd Oriental Bank of Commerce State Bank of India State Bank of Travancore CD - 14.09.2011 Union Bank of India YES BANK LTD Total Other Credit Granting 10.35% HDFC 2017 - 16.05.17 10.95% REC - 14.08.11 11.15% REC - 24.10.2018 11.25% HDFC - 04.09.18 11.40% PFC - 28.11.13 11.50% REC - 26.11.13 897 125 2,135 127 3,389 999 0.11% 0.01% 0.25% 0.02% 0.40% 0.12% 772 356 743 4,693 1,915 2,933 892 2,750 641 482 11,523 9,456 26,593 36,103 1,022 22,357 2,221 6,407 9,591 141,451 0.09% 0.04% 0.09% 0.56% 0.23% 0.35% 0.11% 0.33% 0.08% 0.06% 1.37% 1.12% 3.16% 4.29% 0.12% 2.65% 0.26% 0.76% 1.14% 16.79% 115 6,422 42,973 38,356 87,867 0.01% 0.76% 5.10% 4.55% 10.43% Kotak Dynamic Growth Fund % of Total Funds
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Industry
Kotak Dynamic Growth Fund 2,463 3,898 2,122 951 1,418 67 3,398 558 1,448 5,491 2,860 3,648 1,219 635 3,261 465 516 103 3,991 3,040 3,846 16,566 6,120 6,062 3,415 85,234
% of Total Funds 0.29% 0.46% 0.25% 0.11% 0.17% 0.01% 0.40% 0.07% 0.17% 0.65% 0.34% 0.43% 0.14% 0.08% 0.39% 0.06% 0.06% 0.01% 0.47% 0.36% 0.46% 1.97% 0.73% 0.72% 0.41% 10.12%
7.00% PFC P/C 2009 - 24.12.2011 7.25% LIC Housing Finance - 10.06.2012 7.60% REC - 22.01.2013 7.70% REC - 02.06.2014 7.85% Sundaram Finance - 25.03.2013 8.28 IDFC 2011 8.35% REC - 04.09.2014 8.5 % LIC Housing Finance 9 June 11 8.70% PFC- 14.05.2020 8.80% PFC - 15.01.2025 8.80% REC - 29.11.2020 8.97% PFC - 15.01.2018 9.25% PFC - 20.02.2012 9.32% HDFC - 17.12.12 9.45% LIC Hsg Fin - 01.01.12 9.45% REC - 04.04.13 9.50% HDFC - 27.02.13 HDFC Ltd CP - 15.07.11 HDFC Ltd ZCB - 08.02.2012 HDFC Ltd ZCB - 24.08.2012 HDFC Ltd ZCB - 30.08.2013 Housing Development Finance Corp. Ltd Infrastructure Development Finance Company Ltd Rural Electrification Corporation Ltd Shriram Transport Finance Co. Ltd Total Others Government of India State Development Loan On Shore Extraction of Crude Petroleum Manufacture of Other Dairy Products N.E.C. Manufacture or Refining of Sugar (Sucrose) From Sugercane Manufacture of Cigarettes, Cigarette Tobacco Manufacture of Other Petroleum N.E.C. Manufacture of Urea and Other Organic Fertilizers Manufacture of Other Agrochemical Products N.E.C. Manufacture of Paints and Varnishes, Enamels or Lacquers Manufacture of Other Perfumes and Toilet Preparations N.E.C. Manufacture of Synthetic or Artificial Filament Tow Manufacture of Allopathic Pharmaceutical Preparations
50,740 3,154 26,637 6,073 4,538 32,132 55,972 6,173 5,003 6,077 6,150 16,117 37,548
6.02% 0.37% 3.16% 0.72% 0.54% 3.81% 6.64% 0.73% 0.59% 0.72% 0.73% 1.91% 4.46%
186
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Reports
Industry Manufacture of Other Plastics Products N.E.C. Manufacture of Hot-Rolled and Cold-Rolled Products of Steel Manufacture of Copper From ore, & Other Copper Products & Alloys Manufacture of Power Generators, Motor Generator Sets Manufacture of Electricity Distribution and Control Apparatus Manufacture of Other General Purpose Machinery N.E.C. Manufacture of Passenger Cars Mfg - Commercial Vehicles Vans,Lorries,Over-The-Road Tractors Etc Manufacture of Motor Vehicles N.E.C. Mfg - Jewellery of Gold, Silver & Other Precious or Base Metal Electric Power Generation By Non-Coal Based Thermal Colln,Dist.-Electric Energy To Households, Industrial, Commercial Construction and Maintenance of Motorways, Streets, Roads Construction of Utility Projects N.E.C. Actvty-Commission Agent Dealing-Wholesale Trade Inwood,Paper,Skin Other Retail Sale Not In Stores, Stalls or Markets Storage and Warehousing N.E.C. Actvty-Maintain,Operating Cellur,Other Tetecommunication Network News Agency Activities Activities Auxiliary to Financial Service Activities N.E.C. Net Current Assets Grand Total
Kotak Dynamic Growth Fund 5,243 23,976 14,627 9,700 8,120 14,049 6,549 17,581 12,422 8,435 9,004 12,668 3,371 26,082 2,058 4,654 9,471 15,672 5,911 38,028 23,918 842,403
% of Total Funds 0.62% 2.85% 1.74% 1.15% 0.96% 1.67% 0.78% 2.09% 1.47% 1.00% 1.07% 1.50% 0.40% 3.10% 0.24% 0.55% 1.12% 1.86% 0.70% 4.51% 2.84% 100.00%
Its grt 2b 25
187
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Government of India 10.25% GOI - 30.05.21 11.43% GOI - 07.08.2015 364 Days T Bill - 15.07.2011 6.35% OMC GOI BOND - 23.12.2024 6.83% GOI - 19.01.39 6.90% OIL SPL - 04.02.2026 7% Oil Bond - 09.09.12 7.00% GOI Fertilizer Bond - 10.12.22 7.17% GOI - 14.06.2015 7.27% GOI - 03.09.13 7.35% GOI 2024- 22.06.24 7.40% GOI 2012 - 03.05.12 7.40% GOI 2035 - 09.09.35 7.56% GOI 2014 - 03.11.14 7.59% GOI 2016 7.75% OMC GOI BOND - 28.11.2021 7.94% GOI - 24.05.21 7.95% GOI - 28.08.32 7.95% Oil Bond - 18.01.25 8.07% GOI Jan 15, 2017 8.08% GOI - 02.08.2022 8.13% GOI - 21.09.2022 8.20% GOI - 15.02.22 8.20% OMC GOI -15.09.24 8.20% OMC GOI Special Bond - 12.02.24 8.24% GOI - 15.02.27 8.26% GOI - 02.08.27 8.35% GOI - 14.05.22 9.39% GOI 02-July-2011 91 Days T Bill - 13.05.2011 91 Days T Bill - 22.04.2011 Total 26,028 6,729 109,350 150,872 4,165 87,689 5,228 24 19,481 8,985 2,188 9,184 28,500 366 21,393 9,663 39,438 7,587 270,575 26,191 485,726 490,137 2,604 13,984 983 220,495 390,187 12,563 1,419 40,545 149,399 2,641,677 0.11% 0.03% 0.48% 0.66% 0.02% 0.38% 0.02% 0.00% 0.09% 0.04% 0.01% 0.04% 0.12% 0.00% 0.09% 0.04% 0.17% 0.03% 1.18% 0.11% 2.12% 2.14% 0.01% 0.06% 0.00% 0.96% 1.70% 0.05% 0.01% 0.18% 0.65% 11.54% Kotak Guaranteed Growth Fund % of Total Funds
188
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Industry
Kotak Guaranteed Growth Fund
% of Total Funds
Monetary Intermediation of Commercial,Saving,Postal Savings Bank 10.10% SBH Bank FD - 12.03.2014 10.15% IOB FD - 09.02.2013 10.25% Axis Bank FD - 28.02.2013 10.25% IOB FD - 09.03.2013 10.30% Axis Bank FD - 14.03.2013 10.31% Union Bank FD - 30.03.2012 10.36% Union Bank FD - 28.03.2012 11.10% IDBI - 26.09.13 7.00% HDFC FD1- 16.07.2011 7.00% HDFC FD2- 16.07.2011 7.05% HDFC FD- 24.07.2011 7.45% SBI - 05.05.2015 8.80% PNB - 18.04.2012 8.85% SBI Upper Tier II - 04.10.2021 Call 04.10.2016 9.05% BOB Perpetual Bond Call- 27.08.2020 9.05% Canara Perpetual Bond Call- 03.08.2020 9.05% SBH Perpetual Bond Call- 20.09.2020 9.05% SBI Perpetual Bond Call - 27.01.2020 9.15% PNB - 16.04.2016 9.15% SBP Perpetual Bond CALL 18.01.2020 9.25% IDBI 2014 - 26.03.14 9.40% ICICI 28th December 2011 9.50% Kotak Bank FD 31.01.2012 9.70% Canara Bank FD - 20.12.2012 9.85% HDFC Bank 2019 - 17.03.2024 CALL 17.03.2019 9.85% SBI - 27.06.2016 9.95% SBI 2026 - 16.03.2026 Call 16.03.2021 9.98% ICICI Perpetual Bond -CALL 13.09.16 Axis Bank CD - 20.09.2011 Axis Bank Ltd Bank of Baroda CD - 03.06.2011 Bank of India CD- 07.09.2011 Bank of India CD - 05.03.2012 Bank of India CD - 23.08.2011 Bank of India CD - 28.09.2011 Bank of India CD -19.12.2011 Canara Bank Canara Bank CD - 25.08.2011 Corporation Bank CD - 20.8.2011 129,800 74,659 80,000 35,513 80,280 73,288 114,000 28,077 11,315 5,222 11,142 105,104 7,552 44,618 5,793 178,985 4,920 14,829 247,689 70,002 17,869 7,208 2,179 94,600 102,939 19,631 334,385 28,683 26,300 161,941 24,852 767 14,802 9,510 101 7,510 153,335 35,064 94,334 0.57% 0.33% 0.35% 0.16% 0.35% 0.32% 0.50% 0.12% 0.05% 0.02% 0.05% 0.46% 0.03% 0.19% 0.03% 0.78% 0.02% 0.06% 1.08% 0.31% 0.08% 0.03% 0.01% 0.41% 0.45% 0.09% 1.46% 0.13% 0.11% 0.71% 0.11% 0.00% 0.06% 0.04% 0.00% 0.03% 0.67% 0.15% 0.41%
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189
Industry
Kotak Guaranteed Growth Fund 389,622 7,017 553,026 2,633 39,018 9,684 329,062 8,737 11,247 35,348 11,527 98,213 403,603 154,338 4,511,874
% of Total Funds 1.70% 0.03% 2.42% 0.01% 0.17% 0.04% 1.44% 0.04% 0.05% 0.15% 0.05% 0.43% 1.76% 0.67% 19.71%
HDFC Bank Ltd ICICI Bank Floater INBMK + 50 bps - 29.04.2011 ICICI Bank Ltd IDBI Bank CD - 10.05.11 Oriental Bank of Commerce State Bank of Bikaner & Jaipur CD - 15.06.2011 State Bank of India State Bank of Patiala CD - 14.09.2011 State Bank of Travancore CD - 07.02.2012 State Bank of Travancore CD - 22.02.2012 State Bank of Travancore CD - 23.08.2011 Union Bank of India UTI Bank Floater INBMK + 65 bps - 25.07.2012 YES BANK LTD Total Other Credit Granting 10.00% IDFC -16.12.13 10.10% HDFC - 13.09.17 10.25% HDFC 2012 - 29.05.12. 10.35% HDFC 2017 - 16.05.17 10.75% PFC - 15.07.2011 10.85% REC - 30.09.18 10.95% REC - 14.08.11 11.10% PFC - 15.09.13 11.15% HDFC - 06.08.18 11.15% REC - 24.10.2018 11.25% HDFC - 04.09.18 11.40% PFC - 28.11.13 7.00% PFC P/C 2009 - 24.12.2011 7.20% REC - 17.03.2012 7.20% REC - 17.03.2013 7.20% REC - 17.03.2015 7.20% REC - 17.09.2011 7.20% REC -17.09.2012 7.30% REC- 30.06.2011 7.55% LIC Housing Finance - 28.06.2012 7.60% REC - 22.01.2013 7.70% REC - 02.06.2014 7.75% REC - 17.11.2012 7.80% Sundaram Finance 2011 - 28.07.2011
16,156 4,521 842 1,363 2,006 64,576 13,625 38,381 27,368 56,857 954 114,436 21,227 9,318 9,717 10,635 40,532 29,746 18,449 35,542 4,660 12,369 509 155,838
0.07% 0.02% 0.00% 0.01% 0.01% 0.28% 0.06% 0.17% 0.12% 0.25% 0.00% 0.50% 0.09% 0.04% 0.04% 0.05% 0.18% 0.13% 0.08% 0.16% 0.02% 0.05% 0.00% 0.68%
190
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Industry
Kotak Guaranteed Growth Fund 153,319 22,257 132,036 56,093 12,529 60,880 158,493 105,045 87,618 93,563 1,108 11,625 20,717 74,416 2,912 482 4,544 53,645 93,977 53,258 99,555 5,573 36,052 40,733 89,265 100,072 14,813 73,384 31,251 7,392 113,135 15,515 23,879 89 12,452 19,988 30,842 62,701 47,763 1,545 100,032
% of Total Funds 0.67% 0.10% 0.58% 0.25% 0.05% 0.27% 0.69% 0.46% 0.38% 0.41% 0.00% 0.05% 0.09% 0.33% 0.01% 0.00% 0.02% 0.23% 0.41% 0.23% 0.43% 0.02% 0.16% 0.18% 0.39% 0.44% 0.06% 0.32% 0.14% 0.03% 0.49% 0.07% 0.10% 0.00% 0.05% 0.09% 0.13% 0.27% 0.21% 0.01% 0.44% Its grt 2b 25
7.85% Sundaram Finance - 25.03.2013 7.90% REC - 06.10.2012 8.23% Sundaram Finance - 27.07.12 8.26% LIC Housing Finance - 08.07.2015 8.28 IDFC 2011 8.30% HDFC - 23.06.2015 8.35% REC - 04.09.2014 8.45% PFC - 15.10.2014 8.45% PFC - 17.09.2014 8.48% LIC Housing Finance - 27.09.2013 8.49% PFC 09-October-2011 8.5 % LIC Housing Finance 9 June 11 8.55% LIC Hsg Finance - 20.10.2011 8.60% PFC 2014 - 07.08.2014 8.70% PFC- 14.05.2020 8.70% PFC- 14.05.2025 8.75% Bajaj Auto Finance - 24.06.2011 8.78% PFC- 11.12.2016 8.80% PFC - 15.01.2025 8.80% REC - 06.10.2019 8.80% REC - 25.10.2020 8.80% REC - 29.11.2020 8.90% PFC- 15.03.2015 8.95% HDFC - 19.10.2020 8.95% PFC- 30.03.2015 8.97% PFC - 15.01.2018 8.99% PFC - 15.01.2021 9.00% Bajaj Auto Finance - 02.11.2012 9.22% PFC - 28.12.12 9.32% HDFC - 17.12.12 9.45% HDFC - 11.01.2013 9.45% LIC Hsg Fin - 01.01.12 9.45% REC - 04.04.13 9.48% LIC Housing Finance - 11.01.2013 9.50% HDFC - 27.02.13 9.50% HDFC - 28.02.2013 9.50% LIC Housing Finance - 18.02.2012 9.75% HDFC - 08.03.2016 9.75% HDFC - 28.01.2014 9.80% PFC - 20.09.12 9.85% REC - 28.09.17
191
Industry 9.90% HDFC - 11.03.2014 HDFC Ltd ZCB - 30.08.2013 Housing Development Finance Corp. Ltd IDFC Ltd Floater Mibor+ 210 bps - 28.04.2011 Infrastructure Development Finance Company Ltd Kotak Mahindra Prime Ltd CP - 08.07.11 PFC Floater Mibor +215 bps - 29.05.11 Rural Electrification Corporation Ltd Shriram Transport Finance Co. Ltd Sundaram Finance Ltd ZCB - 29.06.2012 Total Activities Auxiliary to Financial Service Activities N.E.C. 10.30% Tata Sons - 23.04.2014 6.45% EXIM Bank - 15.12.2012 6.50% NABARD - 30.06.2013 P/C 30.06.2011 6.85% SIDBI - 28.06.2013 P/C 29.06.2011 6.85% SIDBI - 29.06.2013 P/C 30.06.2011 7.19% NABARD - 29.04.2013 7.80% NABARD - 16.08.2013 P/C 16.08.2012 7.85% NHB - 13.09.2013 PC 11 8.10% EXIM - 15.07.2015 8.19% IRFC 2019 - 27.04.2019 8.19% SIDBI - 28.09.2013 PC 28.03.12 8.20% IRFC - 27.04.2015 8.20% NHB - 30.08.2013 8.40% IRFC 2013 - 26.12.2013 8.45% EXIM Bank - 08.09.2015 8.45% IRFC - 26.12.18 8.50% EXIM 2011 - 12.09.2011 8.50% Exim Bank Bonds 2011 8.50% IRFC - 22.06.2020 8.55% IRFC 2019-15.01.2019 8.60% IRFC 2019 - 11.06.2019 8.70% Tata Sons 2012 - 26.06.2012 8.80% Tata Sons 2015 - 21.09.2015 8.95% IRFC Ltd- 10.03.2025 9.15% EXIM Bank - 30.03.2021 9.15% EXIM Bank 08.03.2021 9.20% NABARD 2012- 16.08.2012 9.40% Tata Sons - 04.04.13 9.50% Exim - 12.12.13 9.50% Nabard - 15.10.12 9.80% Nabard - 10.09.12 9.90% Tata Sons - 20.05.11
Kotak Guaranteed Growth Fund 25,987 41,074 244,172 78,663 118,195 62,769 54,659 98,402 52,520 39,362 3,629,976
% of Total Funds 0.11% 0.18% 1.07% 0.34% 0.52% 0.27% 0.24% 0.43% 0.23% 0.17% 15.85%
34,978 23,773 22,440 24,849 110,480 82,761 90,338 1,004 109,548 5,762 150,804 90,149 371,290 201,167 214,760 29,478 13,803 24,463 19,517 31,722 21,059 6,595 47,843 940 73,287 74,744 85,611 50,110 96,960 42,833 41,100 79,380
0.15% 0.10% 0.10% 0.11% 0.48% 0.36% 0.39% 0.00% 0.48% 0.03% 0.66% 0.39% 1.62% 0.88% 0.94% 0.13% 0.06% 0.11% 0.09% 0.14% 0.09% 0.03% 0.21% 0.00% 0.32% 0.33% 0.37% 0.22% 0.42% 0.19% 0.18% 0.35%
192
Its grt 2b 25
Reports
Industry BIRLA CASH PLUS - INSTITUTIONAL PREMIUM - GROWTH ICICI Prud Liquid Plan - SI Growth IRFC Floater INBMK - 10 bps - 22.06.2011 IRFC Floater INBMK - 10 bps - 22.06.2012 Kotak Floater Short Term- Growth Tata Sons Floater Mibor+ 245 bps - 20.05.2011 Total Others State Development Loan On Shore Extraction of Crude Petroleum Manufacture of Other Dairy Products N.E.C. Manufacture of Biscuits, Cakes, Pastries, Rusks Etc. Manufacture or Refining of Sugar (Sucrose) From Sugercane Manufacture of Cigarettes, Cigarette Tobacco Manufacture of Other Petroleum N.E.C. Manufacture of Urea and Other Organic Fertilizers Manufacture of Other Agrochemical Products N.E.C. Manufacture of Paints and Varnishes, Enamels or Lacquers Manufacture of Other Perfumes and Toilet Preparations N.E.C. Manufacture of Synthetic or Artificial Filament Tow Manufacture of Allopathic Pharmaceutical Preparations Manufacture of Other Plastics Products N.E.C. Manufacture of Hot-Rolled and Cold-Rolled Products of Steel Manufacture of Copper From ore, & Other Copper Products & Alloys Manufacture of Power Generators, Motor Generator Sets Manufacture of Electricity Distribution and Control Apparatus Manufacture of Other General Purpose Machinery N.E.C. Manufacture of Passenger Cars Mfg - Commercial Vehicles Vans,Lorries,Over-The-Road Tractors Etc Manufacture of Motor Vehicles N.E.C. Mfg - Jewellery of Gold, Silver & Other Precious or Base Metal Electric Power Generation By Non-Coal Based Thermal Colln,Dist.-Electric Energy To Households, Industrial, Commercial Construction and Maintenance of Motorways, Streets, Roads Construction of Utility Projects N.E.C. Actvty-Commission Agent Dealing-Wholesale Trade Inwood,Paper,Skin Other Retail Sale Not In Stores, Stalls or Markets Storage and Warehousing N.E.C. Activities of Basic Telecom Services: Telephone, Telex,Telegraph Actvty-Maintain,Operating Cellur,Other Tetecommunication Network Providing Software Support and Maintenance to the Clients News Agency Activities Financial Leasing Net Current Assets Grand Total
Kotak Guaranteed Growth Fund 19,831 21,872 20,573 99,900 30,621 60,033 2,526,381
% of Total Funds 0.09% 0.10% 0.09% 0.44% 0.13% 0.26% 11.03%
162,892 407,658 95,685 4,232 66,693 501,455 889,554 93,725 82,417 92,962 100,936 241,167 588,257 85,346 571,008 242,415 151,678 126,964 226,894 99,558 410,449 195,946 123,765 167,785 502,482 53,893 394,974 29,202 70,729 148,789 66,686 246,437 1,459,428 85,088 6,244 791,599 22,894,898
0.71% 1.78% 0.42% 0.02% 0.29% 2.19% 3.89% 0.41% 0.36% 0.41% 0.44% 1.05% 2.57% 0.37% 2.49% 1.06% 0.66% 0.55% 0.99% 0.43% 1.79% 0.86% 0.54% 0.73% 2.19% 0.24% 1.73% 0.13% 0.31% 0.65% 0.29% 1.08% 6.37% 0.37% 0.03% 3.46% 100.00%
Its grt 2b 25
193
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Government of India 11.43% GOI - 07.08.2015 364 Days T Bill - 15.07.2011 6.05% GOI 2019 - 02.02.19 6.35% OMC GOI BOND - 23.12.2024 6.90% OIL SPL - 04.02.2026 7.02% GOI - 17.08.2016 7.56% GOI 2014 - 03.11.14 7.59% GOI 2016 7.95% Oil Bond - 18.01.25 8.08% GOI - 02.08.2022 8.13% GOI - 21.09.2022 8.20% GOI - 15.02.22 8.24% GOI - 15.02.27 8.26% GOI - 02.08.27 8.28% GOI - 15.02.32 8.35% GOI - 14.05.22 9.39% GOI 02-July-2011 Total Monetary Intermediation of Commercial,Saving,Postal Savings Bank 10.10% SBH Bank FD - 12.03.2014 10.15% IOB FD - 09.02.2013 10.25% Axis Bank FD - 28.02.2013 10.25% IOB FD - 09.03.2013 10.30% Axis Bank FD - 14.03.2013 10.31% Union Bank FD - 30.03.2012 10.36% Union Bank FD - 28.03.2012 7.00% HDFC FD1- 16.07.2011 7.00% HDFC FD2- 16.07.2011 7.05% HDFC FD- 24.07.2011 9.05% Canara Perpetual Bond Call- 03.08.2020 9.05% SBH Perpetual Bond Call- 20.09.2020 9.70% Canara Bank FD - 20.12.2012 9.85% HDFC Bank 2019 - 17.03.2024 CALL 17.03.2019 9.95% SBI 2026 - 16.03.2026 Call 16.03.2021 Axis Bank Ltd Bank of India CD - 05.03.2012 3,600 1,200 3,500 571 1,300 1,202 1,862 128 59 126 2,946 1,922 5,000 197 5,448 2,572 1,447 0.95% 0.32% 0.92% 0.15% 0.34% 0.32% 0.49% 0.03% 0.02% 0.03% 0.78% 0.51% 1.32% 0.05% 1.44% 0.68% 0.38% 1,930 1,685 56 271 1,163 1,865 3,375 2,893 3,460 7,529 7,018 1,376 1,847 3,372 3,966 42 519 42,366 0.51% 0.44% 0.01% 0.07% 0.31% 0.49% 0.89% 0.76% 0.91% 1.98% 1.85% 0.36% 0.49% 0.89% 1.04% 0.01% 0.14% 11.16% Kotak Pension Growth Fund % of Total Funds
194
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Industry Canara Bank Corporation Bank CD - 20.8.2011 HDFC Bank Ltd ICICI Bank Ltd Oriental Bank of Commerce State Bank of India State Bank of Mysore CD - 02.06.2011 State Bank of Travancore CD - 07.02.2012 State Bank of Travancore CD - 22.02.2012 Union Bank of India YES BANK LTD Total Other Credit Granting 10.85% REC - 30.09.18 10.90% REC - 30.09.13 11.15% REC - 24.10.2018 11.50% REC - 26.11.13 7.20% REC - 17.03.2012 7.20% REC - 17.03.2013 7.20% REC - 17.03.2015 7.25% LIC Housing Finance - 10.06.2012 7.35% HDFC- 15.02.2012 7.85% Sundaram Finance - 25.03.2013 8.23% Sundaram Finance - 27.07.12 8.35% HDFC - 19.07.2015 8.35% REC - 04.09.2014 8.45% PFC - 17.09.2014 8.55% LIC Hsg Finance - 20.10.2011 8.60% PFC 2014 - 07.08.2014 8.80% REC - 06.10.2019 8.80% REC - 25.10.2020 8.80% REC - 29.11.2020 8.95% PFC- 30.03.2015 8.97% PFC - 15.01.2018 9.22% PFC - 28.12.12 9.45% HDFC - 11.01.2013 9.45% LIC Hsg Fin - 01.01.12 9.45% REC - 04.04.13 9.48% LIC Housing Finance - 11.01.2013 9.75% HDFC - 08.03.2016 9.75% HDFC - 28.01.2014 HDFC Ltd CP - 15.07.11 HDFC Ltd ZCB - 30.08.2013
Kotak Pension Growth Fund 2,509 1,547 6,407 8,997 596 5,426 1,154 4,056 2,525 1,608 2,531 70,433
% of Total Funds 0.66% 0.41% 1.69% 2.37% 0.16% 1.43% 0.30% 1.07% 0.67% 0.42% 0.67% 18.56%
2,396 3,362 2,353 3,755 1,924 2,832 2,284 2,549 2,877 3,878 3,361 1,356 1,707 1,574 922 2,686 387 387 2,043 2,323 1,507 504 2,478 411 3,533 1,993 525 777 3,152 2
0.63% 0.89% 0.62% 0.99% 0.51% 0.75% 0.60% 0.67% 0.76% 1.02% 0.89% 0.36% 0.45% 0.41% 0.24% 0.71% 0.10% 0.10% 0.54% 0.61% 0.40% 0.13% 0.65% 0.11% 0.93% 0.53% 0.14% 0.20% 0.83% 0.00%
Its grt 2b 25
195
Industry Housing Development Finance Corp. Ltd Infrastructure Development Finance Company Ltd Rural Electrification Corporation Ltd Shriram Transport Finance Co. Ltd Total Others State Development Loan On Shore Extraction of Crude Petroleum Manufacture of Other Dairy Products N.E.C. Manufacture of Biscuits, Cakes, Pastries, Rusks Etc. Manufacture or Refining of Sugar (Sucrose) From Sugercane Manufacture of Cigarettes, Cigarette Tobacco Manufacture of Other Petroleum N.E.C. Manufacture of Urea and Other Organic Fertilizers Manufacture of Other Agrochemical Products N.E.C. Manufacture of Paints and Varnishes, Enamels or Lacquers Manufacture of Other Perfumes and Toilet Preparations N.E.C. Manufacture of Synthetic or Artificial Filament Tow Manufacture of Allopathic Pharmaceutical Preparations Manufacture of Other Plastics Products N.E.C. Manufacture of Hot-Rolled and Cold-Rolled Products of Steel Manufacture of Copper From ore, & Other Copper Products & Alloys Manufacture of Power Generators, Motor Generator Sets Manufacture of Electricity Distribution and Control Apparatus Manufacture of Other General Purpose Machinery N.E.C. Manufacture of Passenger Cars Mfg - Commercial Vehicles Vans,Lorries,Over-The-Road Tractors Etc Manufacture of Motor Vehicles N.E.C. Mfg - Jewellery of Gold, Silver & Other Precious or Base Metal Electric Power Generation By Non-Coal Based Thermal Colln,Dist.-Electric Energy To Households, Industrial, Commercial Construction and Maintenance of Motorways, Streets, Roads Construction of Utility Projects N.E.C. Actvty-Commission Agent Dealing-Wholesale Trade Inwood,Paper,Skin Other Retail Sale Not In Stores, Stalls or Markets Storage and Warehousing N.E.C. Actvty-Maintain,Operating Cellur,Other Tetecommunication Network Providing Software Support and Maintenance to the Clients News Agency Activities Activities Auxiliary to Financial Service Activities N.E.C. Net Current Assets Grand Total
Kotak Pension Growth Fund 4,019 1,898 1,610 838 68,204
% of Total Funds 1.06% 0.50% 0.42% 0.22% 17.97%
6,877 6,458 1,516 42 1,106 8,187 14,479 1,483 1,311 1,569 1,570 3,943 9,461 1,367 5,867 3,947 2,436 1,991 3,692 1,622 7,222 3,223 2,260 1,597 19,650 817 6,455 483 1,051 2,407 4,011 27,239 1,463 27,564 14,220 379,590
1.81% 1.70% 0.40% 0.01% 0.29% 2.16% 3.81% 0.39% 0.35% 0.41% 0.41% 1.04% 2.49% 0.36% 1.55% 1.04% 0.64% 0.52% 0.97% 0.43% 1.90% 0.85% 0.60% 0.42% 5.18% 0.22% 1.70% 0.13% 0.28% 0.63% 1.06% 7.18% 0.39% 7.26% 3.75% 100.00%
196
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Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Kotak Group Growth Fund % of Total Funds 0.00% 0.00%
Others Grand Total
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197
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Kotak Aggressive Growth Fund % of Total Funds
Providing Software Support and Maintenance to the Clients HCL Technologies Ltd Infosys Technologies Ltd Tata Consultancy Services Ltd Total Monetary Intermediation of Commercial,Saving,Postal Savings Bank 7.00% HDFC FD1- 16.07.2011 7.00% HDFC FD2- 16.07.2011 7.05% HDFC FD- 24.07.2011 9.40% ICICI 28th December 2011 9.50% Kotak Bank FD 31.01.2012 Axis Bank Ltd Bank of India CD - 23.08.2011 Bank of India CD -19.12.2011 Canara Bank Canara Bank CD - 25.08.2011 HDFC Bank Ltd ICICI Bank Ltd IDBI Bank CD - 10.05.11 Oriental Bank of Commerce State Bank of Bikaner & Jaipur CD - 28.06.2011 State Bank of India State Bank of Travancore CD - 07.02.2012 State Bank of Travancore CD - 22.02.2012 State Bank of Travancore CD - 23.08.2011 Union Bank of India YES BANK LTD Total Others On Shore Extraction of Crude Petroleum Manufacture of Other Dairy Products N.E.C. Manufacture or Refining of Sugar (Sucrose) From Sugercane Manufacture of Cigarettes, Cigarette Tobacco Manufacture of Other Petroleum N.E.C. 155,023 35,065 26,362 186,904 324,745 3.95% 0.89% 0.67% 4.77% 8.28% 4,145 1,913 4,103 6,202 4,350 67,650 19,635 2,506 55,079 15,986 155,429 211,691 3,269 6,149 5,992 130,624 27,314 24,008 50,027 37,288 55,976 889,336 0.11% 0.05% 0.10% 0.16% 0.11% 1.73% 0.50% 0.06% 1.40% 0.41% 3.96% 5.40% 0.08% 0.16% 0.15% 3.33% 0.70% 0.61% 1.28% 0.95% 1.43% 22.68% 37,889 249,032 222,680 509,602 0.97% 6.35% 5.68% 13.00%
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Industry
Kotak Aggressive Growth Fund 38,579 29,278 36,003 35,612 93,453 217,422 30,360 139,696 86,005 56,451 47,589 81,277 37,857 77,800 75,958 48,672 38,670 22,099 151,570 12,122 27,339 54,482 91,291 34,893 189,709 11,000 28,414 3,920,637
% of Total Funds 0.98% 0.75% 0.92% 0.91% 2.38% 5.55% 0.77% 3.56% 2.19% 1.44% 1.21% 2.07% 0.97% 1.98% 1.94% 1.24% 0.99% 0.56% 3.87% 0.31% 0.70% 1.39% 2.33% 0.89% 4.84% 0.28% 0.72% 100.00%
Manufacture of Urea and Other Organic Fertilizers Manufacture of Other Agrochemical Products N.E.C. Manufacture of Paints and Varnishes, Enamels or Lacquers Manufacture of Other Perfumes and Toilet Preparations N.E.C. Manufacture of Synthetic or Artificial Filament Tow Manufacture of Allopathic Pharmaceutical Preparations Manufacture of Other Plastics Products N.E.C. Manufacture of Hot-Rolled and Cold-Rolled Products of Steel Manufacture of Copper From ore, & Other Copper Products & Alloys Manufacture of Power Generators, Motor Generator Sets Manufacture of Electricity Distribution and Control Apparatus Manufacture of Other General Purpose Machinery N.E.C. Manufacture of Passenger Cars Mfg - Commercial Vehicles Vans,Lorries,Over-The-Road Tractors Etc Manufacture of Motor Vehicles N.E.C. Mfg - Jewellery of Gold, Silver & Other Precious or Base Metal Electric Power Generation By Non-Coal Based Thermal Construction and Maintenance of Motorways, Streets, Roads Construction of Utility Projects N.E.C. Actvty-Commission Agent Dealing-Wholesale Trade Inwood,Paper,Skin Other Retail Sale Not In Stores, Stalls or Markets Storage and Warehousing N.E.C. Actvty-Maintain,Operating Cellur,Other Tetecommunication Network News Agency Activities Other Credit Granting Activities Auxiliary to Financial Service Activities N.E.C. Net Current Assets Grand Total
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199
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Kotak Group Agressive Growth Fund % of Total Funds 0.00% 0.00%
Others Grand Total
200
Its grt 2b 25
Reports
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Kotak Advantage Multiplier Fund % of Total Funds
Government of India 12.30% GOI - 02.07.2016 7.02% GOI - 17.08.2016 7.56% GOI 2014 - 03.11.14 7.59% GOI 2016 8.35% GOI - 14.05.22 9.39% GOI 02-July-2011 Total Monetary Intermediation of Commercial,Saving,Postal Savings Bank 7.00% HDFC FD1- 16.07.2011 7.00% HDFC FD2- 16.07.2011 7.05% HDFC FD- 24.07.2011 7.45% SBI - 05.05.2015 9.15% PNB - 16.04.2016 9.40% ICICI 28th December 2011 9.50% Kotak Bank FD 31.01.2012 9.85% SBI - 27.06.2016 9.98% ICICI Perpetual Bond -CALL 13.09.16 Axis Bank Ltd Bank of India CD -19.12.2011 HDFC Bank Ltd ICICI Bank Ltd Punjab National Bank State Bank of Bikaner & Jaipur CD - 15.06.2011 State Bank of India Total Other Credit Granting 11.25% HDFC - 04.09.18 11.40% PFC - 28.11.13 7.85% Sundaram Finance - 25.03.2013 8.26% LIC Housing Finance - 08.07.2015 9.32% HDFC - 17.12.12 9.50% HDFC - 27.02.13 9.75% HDFC - 08.03.2016 Housing Development Finance Corp. Ltd Infrastructure Development Finance Company Ltd Total 36 148 347 1,493 39 11 2,391 744 137 5,346 0.07% 0.30% 0.69% 2.98% 0.08% 0.02% 4.77% 1.49% 0.27% 10.68% 42 19 43 101 1,275 1,247 1,097 749 366 298 531 673 1,029 133 2,060 575 10,238 0.08% 0.04% 0.09% 0.20% 2.55% 2.49% 2.19% 1.49% 0.73% 0.59% 1.06% 1.34% 2.06% 0.27% 4.11% 1.15% 20.44% 1,761 5,574 373 5,543 115 468 13,834 3.52% 11.13% 0.75% 11.07% 0.23% 0.93% 27.63%
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Industry
Kotak Advantage Multiplier Fund
% of Total Funds
Activities Auxiliary to Financial Service Activities N.E.C. 8.10% EXIM - 15.07.2015 8.45% EXIM Bank - 08.09.2015 8.80% Tata Sons 2015 - 21.09.2015 BIRLA CASH PLUS - INSTITUTIONAL PREMIUM - GROWTH ICICI Prud Liquid Plan - SI Growth Kotak Floater Short Term- Growth Total Others On Shore Extraction of Crude Petroleum Mining of Iron Ores Manufacture of Cigarettes, Cigarette Tobacco Manufacture of Other Petroleum N.E.C. Manufacture of Other Perfumes and Toilet Preparations N.E.C. Manufacture of Synthetic or Artificial Filament Tow Manufacture of Allopathic Pharmaceutical Preparations Manufacture of Portl & Aluminous,Slag & Similar Hydraulic Cement Manufacture of Hot-Rolled and Cold-Rolled Products of Steel Manufacture of Copper From ore, & Other Copper Products & Alloys Manufacture of Electricity Distribution and Control Apparatus Manufacture of Other General Purpose Machinery N.E.C. Manufacture of Passenger Cars Mfg - Commercial Vehicles Vans,Lorries,Over-The-Road Tractors Etc Manufacture of Motor Vehicles N.E.C. Manufacture of Motorcycles, Scooters, Mopeds Etc. & Their Engine Electric Power Generation By Non-Coal Based Thermal Colln,Dist.-Electric Energy To Households, Industrial, Commercial Construction and Maintenance of Motorways, Streets, Roads Construction of Utility Projects N.E.C. Storage and Warehousing N.E.C. Actvty-Maintain,Operating Cellur,Other Tetecommunication Network Providing Software Support and Maintenance to the Clients Financial Leasing Real Estate Activities with Own or Leased Property Net Current Assets Grand Total 483 97 843 1,725 269 133 531 197 669 445 114 274 153 403 293 305 415 3,183 90 798 176 400 2,175 38 84 50 50,076 0.96% 0.19% 1.68% 3.44% 0.54% 0.26% 1.06% 0.39% 1.34% 0.89% 0.23% 0.55% 0.30% 0.81% 0.58% 0.61% 0.83% 6.36% 0.18% 1.59% 0.35% 0.80% 4.34% 0.08% 0.17% 0.10% 100.00% 1,095 1,450 3,443 90 100 140 6,317 2.19% 2.90% 6.87% 0.18% 0.20% 0.28% 12.62%
202
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Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Kotak Advantage Plus Fund % of Total Funds
Others Net Current Assets Grand Total 2,919 2,919 100.00% 100.00%
Its grt 2b 25
203
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Kotak Advantage Fund % of Total Funds 0.00% 0.00%
Others Grand Total
204
Its grt 2b 25
Reports
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Government of India 7.02% GOI - 17.08.2016 7.27% GOI - 03.09.13 7.46% GOI - 28.08.17 7.56% GOI 2014 - 03.11.14 7.80% GOI - 03.05.2020 8.20% OMC GOI 2023-10.11.23 8.35% GOI - 14.05.22 9.39% GOI 02-July-2011 Total Monetary Intermediation of Commercial,Saving,Postal Savings Bank 7.00% HDFC FD1- 16.07.2011 7.00% HDFC FD2- 16.07.2011 7.05% HDFC FD- 24.07.2011 8.85% SBI Upper Tier II - 04.10.2021 Call 04.10.2016 9.40% ICICI 28th December 2011 9.50% Kotak Bank FD 31.01.2012 9.98% ICICI Perpetual Bond -CALL 13.09.16 Axis Bank Ltd Bank of India CD - 05.03.2012 Canara Bank CD - 02.05.2011 Canara Bank CD - 25.08.2011 HDFC Bank Ltd ICICI Bank Ltd Punjab National Bank State Bank of Bikaner & Jaipur CD - 15.06.2011 State Bank of India Total Other Credit Granting 10.35% HDFC 2017 - 16.05.17 8.26% LIC Housing Finance - 08.07.2015 8.5 % LIC Housing Finance 9 June 11 9.85% REC - 28.09.17 Housing Development Finance Corp. Ltd Infrastructure Development Finance Company Ltd Total 2,401 597 756 2,096 534 97 6,480 6.75% 1.68% 2.13% 5.89% 1.50% 0.27% 18.21% 26 12 28 920 605 897 60 212 500 507 708 488 752 95 628 418 6,857 0.07% 0.03% 0.08% 2.59% 1.70% 2.52% 0.17% 0.60% 1.41% 1.42% 1.99% 1.37% 2.11% 0.27% 1.76% 1.17% 19.27% 2,287 1,426 3,924 808 2,886 115 64 337 11,847 6.43% 4.01% 11.02% 2.27% 8.11% 0.32% 0.18% 0.95% 33.29% Kotak Advantage Multiplier Fund II % of Total Funds
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205
Industry Others On Shore Extraction of Crude Petroleum Mining of Iron Ores Manufacture of Cigarettes, Cigarette Tobacco Manufacture of Other Petroleum N.E.C. Manufacture of Other Perfumes and Toilet Preparations N.E.C. Manufacture of Synthetic or Artificial Filament Tow Manufacture of Allopathic Pharmaceutical Preparations Manufacture of Portl & Aluminous,Slag & Similar Hydraulic Cement Manufacture of Hot-Rolled and Cold-Rolled Products of Steel Manufacture of Copper From ore, & Other Copper Products & Alloys Manufacture of Electricity Distribution and Control Apparatus Manufacture of Other General Purpose Machinery N.E.C. Manufacture of Passenger Cars Mfg - Commercial Vehicles Vans,Lorries,Over-The-Road Tractors Etc Manufacture of Motor Vehicles N.E.C. Manufacture of Motorcycles, Scooters, Mopeds Etc. & Their Engine Electric Power Generation By Non-Coal Based Thermal Colln,Dist.-Electric Energy To Households, Industrial, Commercial Construction and Maintenance of Motorways, Streets, Roads Construction of Utility Projects N.E.C. Storage and Warehousing N.E.C. Actvty-Maintain,Operating Cellur,Other Tetecommunication Network Providing Software Support and Maintenance to the Clients Activities Auxiliary to Financial Service Activities N.E.C. Real Estate Activities with Own or Leased Property Net Current Assets Grand Total
Kotak Advantage Multiplier Fund II
% of Total Funds
342 69 604 1,161 187 98 380 141 486 323 84 204 105 272 208 217 292 2,105 67 552 130 269 1,577 58 61 412 35,589
0.96% 0.19% 1.70% 3.26% 0.53% 0.28% 1.07% 0.40% 1.37% 0.91% 0.24% 0.57% 0.29% 0.76% 0.58% 0.61% 0.82% 5.92% 0.19% 1.55% 0.37% 0.76% 4.43% 0.16% 0.17% 1.16% 100.00%
206
Its grt 2b 25
Reports
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Kotak Advantage Plus Fund II % of Total Funds
Monetary Intermediation of Commercial,Saving,Postal Savings Bank 7.00% HDFC FD1- 16.07.2011 7.00% HDFC FD2- 16.07.2011 7.05% HDFC FD- 24.07.2011 9.40% ICICI 28th December 2011 9.50% Kotak Bank FD 31.01.2012 Axis Bank Ltd HDFC Bank Ltd ICICI Bank Ltd Punjab National Bank State Bank of Bikaner & Jaipur CD - 15.06.2011 State Bank of Bikaner & Jaipur CD - 28.06.2011 State Bank of India State Bank of Mysore CD - 02.06.2011 State Bank of Travancore CD - 07.02.2012 Total Other Credit Granting 10.25% HDFC 2012 - 29.05.12. 7.20% REC - 17.03.2012 7.20% REC -17.09.2012 7.30% REC- 30.06.2011 7.35% HDFC- 15.02.2012 7.90% REC - 06.10.2012 8.49% PFC 09-October-2011 8.5 % LIC Housing Finance 9 June 11 8.75% Bajaj Auto Finance - 24.06.2011 9.25% PFC - 20.02.2012 9.32% HDFC - 17.12.12 9.45% LIC Hsg Fin - 01.01.12 9.80% PFC - 20.09.12 HDFC Ltd ZCB - 09.03.2012 HDFC Ltd ZCB - 24.08.2012 Housing Development Finance Corp. Ltd Infrastructure Development Finance Company Ltd Sundaram Finance Ltd ZCB - 29.06.2012 Total 1,059 6,057 7,954 9,659 982 4,762 3,860 20,965 18,725 4,037 6,124 1,210 4,877 2,649 7,637 5,461 976 7,654 114,648 0.29% 1.64% 2.16% 2.62% 0.27% 1.29% 1.05% 5.69% 5.08% 1.10% 1.66% 0.33% 1.32% 0.72% 2.07% 1.48% 0.26% 2.08% 31.12% 274 127 284 10,824 708 2,198 4,992 7,605 952 5,379 16,227 4,272 3,917 7,605 65,364 0.07% 0.03% 0.08% 2.94% 0.19% 0.60% 1.35% 2.06% 0.26% 1.46% 4.40% 1.16% 1.06% 2.06% 17.74%
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Industry Activities Auxiliary to Financial Service Activities N.E.C. 6.45% EXIM Bank - 15.12.2012 6.85% SIDBI - 29.06.2013 P/C 30.06.2011 7.85% NHB - 13.09.2013 PC 11 8.19% SIDBI - 28.09.2013 PC 28.03.12 8.70% Tata Sons 2012 - 26.06.2012 9.50% Nabard - 15.10.12 9.65% NABARD - 12.03.12 9.80% Nabard - 10.09.12 IRFC Floater INBMK - 10 bps - 22.06.2011 Total Others Government of India On Shore Extraction of Crude Petroleum Mining of Iron Ores Manufacture of Cigarettes, Cigarette Tobacco Manufacture of Other Petroleum N.E.C. Manufacture of Other Perfumes and Toilet Preparations N.E.C. Manufacture of Synthetic or Artificial Filament Tow Manufacture of Allopathic Pharmaceutical Preparations Manufacture of Portl & Aluminous,Slag & Similar Hydraulic Cement Manufacture of Hot-Rolled and Cold-Rolled Products of Steel Manufacture of Copper From ore, & Other Copper Products & Alloys Manufacture of Electricity Distribution and Control Apparatus Manufacture of Other General Purpose Machinery N.E.C. Manufacture of Passenger Cars Mfg - Commercial Vehicles Vans,Lorries,Over-The-Road Tractors Etc Manufacture of Motor Vehicles N.E.C. Manufacture of Motorcycles, Scooters, Mopeds Etc. & Their Engine Electric Power Generation By Non-Coal Based Thermal Colln,Dist.-Electric Energy To Households, Industrial, Commercial Construction and Maintenance of Motorways, Streets, Roads Construction of Utility Projects N.E.C. Storage and Warehousing N.E.C. Actvty-Maintain,Operating Cellur,Other Tetecommunication Network Providing Software Support and Maintenance to the Clients Real Estate Activities with Own or Leased Property Net Current Assets Grand Total
Kotak Advantage Plus Fund II
% of Total Funds
5,793 14,532 25,257 4,871 14,193 859 1,216 6,405 29,461 102,587
1.57% 3.94% 6.86% 1.32% 3.85% 0.23% 0.33% 1.74% 8.00% 27.84%
1,903 3,557 710 6,205 11,671 1,979 978 3,903 1,438 4,929 3,276 845 2,032 1,120 2,975 2,154 2,264 3,056 933 667 5,877 1,301 2,948 15,992 616 2,511 368,439
0.52% 0.97% 0.19% 1.68% 3.17% 0.54% 0.27% 1.06% 0.39% 1.34% 0.89% 0.23% 0.55% 0.30% 0.81% 0.58% 0.61% 0.83% 0.25% 0.18% 1.60% 0.35% 0.80% 4.34% 0.17% 0.68% 100.00%
208
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Reports
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Frontline Equity Fund % of Total Funds
Providing Software Support and Maintenance to the Clients HCL Technologies Ltd Infosys Technologies Ltd Tata Consultancy Services Ltd Total Monetary Intermediation of Commercial,Saving,Postal Savings Bank 7.00% HDFC FD1- 16.07.2011 7.00% HDFC FD2- 16.07.2011 7.05% HDFC FD- 24.07.2011 Axis Bank Ltd Bank of India CD - 05.03.2012 Bank of India CD - 23.08.2011 Canara Bank HDFC Bank Ltd ICICI Bank Ltd IDBI Bank CD - 10.05.11 Oriental Bank of Commerce State Bank of India State Bank of Patiala CD - 14.09.2011 State Bank of Travancore CD - 07.02.2012 State Bank of Travancore CD - 23.08.2011 Union Bank of India Vijaya Bank CD - 09.09.2011 YES BANK LTD Total Others On Shore Extraction of Crude Petroleum Manufacture of Other Dairy Products N.E.C. Manufacture or Refining of Sugar (Sucrose) From Sugercane Manufacture of Cigarettes, Cigarette Tobacco Manufacture of Other Petroleum N.E.C. Manufacture of Urea and Other Organic Fertilizers Manufacture of Other Agrochemical Products N.E.C. Manufacture of Paints and Varnishes, Enamels or Lacquers 18,266 4,469 3,358 22,736 37,941 4,467 3,262 4,415 3.59% 0.88% 0.66% 4.46% 7.45% 0.88% 0.64% 0.87% 225 104 222 8,780 6,857 3,530 6,696 17,723 24,508 170 931 14,958 901 5,004 2,006 4,472 4,019 6,371 107,476 0.04% 0.02% 0.04% 1.72% 1.35% 0.69% 1.31% 3.48% 4.81% 0.03% 0.18% 2.94% 0.18% 0.98% 0.39% 0.88% 0.79% 1.25% 21.10% 4,448 29,415 26,114 59,977 0.87% 5.77% 5.13% 11.77%
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Industry
Frontline Equity Fund 4,574 11,086 25,425 4,395 16,784 10,588 6,571 5,573 9,996 4,383 8,838 8,701 6,236 4,459 2,201 17,654 1,362 3,209 6,707 11,014 4,392 24,979 11,345 32,646 509,483
% of Total Funds 0.90% 2.18% 4.99% 0.86% 3.29% 2.08% 1.29% 1.09% 1.96% 0.86% 1.73% 1.71% 1.22% 0.88% 0.43% 3.47% 0.27% 0.63% 1.32% 2.16% 0.86% 4.90% 2.23% 6.41% 100.00%
Manufacture of Other Perfumes and Toilet Preparations N.E.C. Manufacture of Synthetic or Artificial Filament Tow Manufacture of Allopathic Pharmaceutical Preparations Manufacture of Other Plastics Products N.E.C. Manufacture of Hot-Rolled and Cold-Rolled Products of Steel Manufacture of Copper From ore, & Other Copper Products & Alloys Manufacture of Power Generators, Motor Generator Sets Manufacture of Electricity Distribution and Control Apparatus Manufacture of Other General Purpose Machinery N.E.C. Manufacture of Passenger Cars Mfg - Commercial Vehicles Vans,Lorries,Over-The-Road Tractors Etc Manufacture of Motor Vehicles N.E.C. Mfg - Jewellery of Gold, Silver & Other Precious or Base Metal Electric Power Generation By Non-Coal Based Thermal Construction and Maintenance of Motorways, Streets, Roads Construction of Utility Projects N.E.C. Actvty-Commission Agent Dealing-Wholesale Trade Inwood,Paper,Skin Other Retail Sale Not In Stores, Stalls or Markets Storage and Warehousing N.E.C. Actvty-Maintain,Operating Cellur,Other Tetecommunication Network News Agency Activities Other Credit Granting Activities Auxiliary to Financial Service Activities N.E.C. Net Current Assets Grand Total
210
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Reports
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Pension Frontline Equity Fund % of Total Funds
Providing Software Support and Maintenance to the Clients HCL Technologies Ltd Infosys Technologies Ltd Tata Consultancy Services Ltd Total Monetary Intermediation of Commercial,Saving,Postal Savings Bank 7.00% HDFC FD1- 16.07.2011 7.00% HDFC FD2- 16.07.2011 7.05% HDFC FD- 24.07.2011 Axis Bank Ltd Bank of Baroda CD - 03.06.2011 Bank of India CD - 23.08.2011 Canara Bank Canara Bank CD - 02.05.2011 HDFC Bank Ltd ICICI Bank Ltd IDBI Bank CD - 10.05.11 Oriental Bank of Commerce State Bank of India Union Bank of India YES BANK LTD Total Others On Shore Extraction of Crude Petroleum Manufacture of Other Dairy Products N.E.C. Manufacture or Refining of Sugar (Sucrose) From Sugercane Manufacture of Cigarettes, Cigarette Tobacco Manufacture of Other Petroleum N.E.C. Manufacture of Urea and Other Organic Fertilizers Manufacture of Other Agrochemical Products N.E.C. Manufacture of Paints and Varnishes, Enamels or Lacquers Manufacture of Other Perfumes and Toilet Preparations N.E.C. Manufacture of Synthetic or Artificial Filament Tow Manufacture of Allopathic Pharmaceutical Preparations 3,912 950 711 4,850 8,353 966 715 942 977 2,364 5,543 3.77% 0.91% 0.68% 4.67% 8.04% 0.93% 0.69% 0.91% 0.94% 2.28% 5.34% 36 17 39 1,838 1,205 908 1,432 338 3,798 5,258 239 297 3,266 959 1,435 21,065 0.03% 0.02% 0.04% 1.77% 1.16% 0.87% 1.38% 0.33% 3.66% 5.06% 0.23% 0.29% 3.14% 0.92% 1.38% 20.28% 950 6,304 5,619 12,873 0.91% 6.07% 5.41% 12.39%
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Industry
Pension Frontline Equity Fund 933 3,596 2,382 1,423 1,189 2,135 964 1,899 1,913 1,410 957 530 3,785 310 690 1,438 2,354 938 5,648 2,370 2,799 103,882
% of Total Funds 0.90% 3.46% 2.29% 1.37% 1.14% 2.06% 0.93% 1.83% 1.84% 1.36% 0.92% 0.51% 3.64% 0.30% 0.66% 1.38% 2.27% 0.90% 5.44% 2.28% 2.69% 100.00%
Manufacture of Other Plastics Products N.E.C. Manufacture of Hot-Rolled and Cold-Rolled Products of Steel Manufacture of Copper From ore, & Other Copper Products & Alloys Manufacture of Power Generators, Motor Generator Sets Manufacture of Electricity Distribution and Control Apparatus Manufacture of Other General Purpose Machinery N.E.C. Manufacture of Passenger Cars Mfg - Commercial Vehicles Vans,Lorries,Over-The-Road Tractors Etc Manufacture of Motor Vehicles N.E.C. Mfg - Jewellery of Gold, Silver & Other Precious or Base Metal Electric Power Generation By Non-Coal Based Thermal Construction and Maintenance of Motorways, Streets, Roads Construction of Utility Projects N.E.C. Actvty-Commission Agent Dealing-Wholesale Trade Inwood,Paper,Skin Other Retail Sale Not In Stores, Stalls or Markets Storage and Warehousing N.E.C. Actvty-Maintain,Operating Cellur,Other Tetecommunication Network News Agency Activities Other Credit Granting Activities Auxiliary to Financial Service Activities N.E.C. Net Current Assets Grand Total
212
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Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Kotak Opportunities Fund % of Total Funds
Providing Software Support and Maintenance to the Clients Infosys Technologies Ltd Oracle Financial Services Software Ltd Tata Consultancy Services Ltd Wipro Ltd Total Monetary Intermediation of Commercial,Saving,Postal Savings Bank 7.00% HDFC FD1- 16.07.2011 7.00% HDFC FD2- 16.07.2011 7.05% HDFC FD- 24.07.2011 Allahabad Bank Axis Bank Ltd Bank of Baroda Bank of India CD - 05.03.2012 Bank of India CD - 23.08.2011 Canara Bank CD - 25.08.2011 Corporation Bank CD - 07.09.2011 HDFC Bank Ltd ICICI Bank Ltd IndusInd Bank Limited State Bank of India State Bank of Travancore CD - 07.02.2012 State Bank of Travancore CD - 11.07.2011 State Bank of Travancore CD - 23.08.2011 Union Bank CD - 17.06.11 Union Bank of India Vijaya Bank CD - 09.09.2011 Total Others On Shore Extraction of Crude Petroleum Manufacture or Refining of Sugar (Sucrose) From Sugercane Mfg - Malted Foods Including Foods For Infants & Handicapped Manufacture of Cigarettes, Cigarette Tobacco Manufacture of Paper And Paper Rolls Not Further Processed 223,222 97,139 98,262 260,466 48,045 3.23% 1.40% 1.42% 3.76% 0.69% 4,966 2,292 4,987 49,013 129,891 96,832 9,142 50,430 70,845 15,562 229,227 331,611 124,983 208,965 121,178 979 111,605 208 93,891 17,381 1,673,988 0.07% 0.03% 0.07% 0.71% 1.88% 1.40% 0.13% 0.73% 1.02% 0.22% 3.31% 4.79% 1.81% 3.02% 1.75% 0.01% 1.61% 0.00% 1.36% 0.25% 24.19% 418,254 56,988 357,457 60,301 893,001 6.04% 0.82% 5.17% 0.87% 12.91%
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Industry Manufacture of Other Petroleum N.E.C. Manufacture of Urea and Other Organic Fertilizers Manufacture of Paints and Varnishes, Enamels or Lacquers Manufacture of Other Perfumes and Toilet Preparations N.E.C. Manufacture of Synthetic or Artificial Filament Tow Manufacture of Allopathic Pharmaceutical Preparations Manufacture of Other Plastics Products N.E.C. Manufacture of Hot-Rolled and Cold-Rolled Products of Steel Manufacture of Copper From ore, & Other Copper Products & Alloys Manufacture of Other Non-Ferrous Metals N.E.C. Mfg - Steam or Other Vapour Generating Boilers, Hot Water Boilers Manufacture of Power Generators, Motor Generator Sets Manufacture of Other Electronic and Electric Wires and Cables Mfg - Engines & Turbines, Except Aircraft, Vehicle & Cycle Engine Manufacture of Other General Purpose Machinery N.E.C. Manufacture of Motor Vehicles N.E.C. Manufacture of Motorcycles, Scooters, Mopeds Etc. & Their Engine Mfg - Parts & Accessories of Three Wheelers & Motorcycles Mfg - Jewellery of Gold, Silver & Other Precious or Base Metal Electric Power Generation By Non-Coal Based Thermal Construction of Utility Projects N.E.C. Other Civil Engineering Projects N.E.C. Actvty-Commission Agent Dealing-Wholesale Trade Inwood,Paper,Skin Other Retail Sale Not In Stores, Stalls or Markets Storage and Warehousing N.E.C. Other Land Transport Services N.E.C Service Activities Incidental To Water Transportation Actvty-Maintain,Operating Cellur,Other Tetecommunication Network News Agency Activities Financial Leasing Other Credit Granting Hospital Activities Net Current Assets Grand Total
Kotak Opportunities Fund 519,736 62,725 64,312 92,138 63,892 400,495 56,222 151,337 63,886 94,131 55,672 95,700 34,872 62,498 95,350 192,785 72,352 63,484 97,112 95,403 228,601 65,574 12,237 32,180 99,146 54,191 48,895 136,980 111,151 82,071 309,096 30,323 (19,527) 6,919,146
% of Total Funds 7.51% 0.91% 0.93% 1.33% 0.92% 5.79% 0.81% 2.19% 0.92% 1.36% 0.80% 1.38% 0.50% 0.90% 1.38% 2.79% 1.05% 0.92% 1.40% 1.38% 3.30% 0.95% 0.18% 0.47% 1.43% 0.78% 0.71% 1.98% 1.61% 1.19% 4.47% 0.44% -0.28% 100.00%
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Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Kotak Pension Opportunities Fund % of Total Funds
Providing Software Support and Maintenance to the Clients Infosys Technologies Ltd Oracle Financial Services Software Ltd Tata Consultancy Services Ltd Wipro Ltd Total Monetary Intermediation of Commercial,Saving,Postal Savings Bank 7.00% HDFC FD1- 16.07.2011 7.00% HDFC FD2- 16.07.2011 7.05% HDFC FD- 24.07.2011 Allahabad Bank Axis Bank Ltd Bank of Baroda Bank of Baroda CD - 03.06.2011 Bank of India CD - 23.08.2011 Bank of India CD -19.12.2011 HDFC Bank Ltd ICICI Bank Ltd IndusInd Bank Limited State Bank of India State Bank of Travancore CD - 07.02.2012 State Bank of Travancore CD - 23.08.2011 Union Bank CD - 17.06.11 Union Bank of India Total Others On Shore Extraction of Crude Petroleum Manufacture or Refining of Sugar (Sucrose) From Sugercane Mfg - Malted Foods Including Foods For Infants & Handicapped Manufacture of Cigarettes, Cigarette Tobacco Manufacture of Paper And Paper Rolls Not Further Processed Manufacture of Other Petroleum N.E.C. Manufacture of Urea and Other Organic Fertilizers Manufacture of Paints and Varnishes, Enamels or Lacquers 4,199 1,801 1,752 4,847 865 9,754 1,175 1,212 3.26% 1.40% 1.36% 3.77% 0.67% 7.58% 0.91% 0.94% 53 24 53 917 2,424 1,798 298 2,115 722 4,150 6,101 2,325 3,833 1,501 802 12 1,724 28,852 0.04% 0.02% 0.04% 0.71% 1.88% 1.40% 0.23% 1.64% 0.56% 3.22% 4.74% 1.81% 2.98% 1.17% 0.62% 0.01% 1.34% 22.41% 7,805 1,075 6,639 1,195 16,714 6.06% 0.83% 5.16% 0.93% 12.98%
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Industry
Kotak Pension Opportunities Fund 1,705 1,197 7,721 1,112 2,835 1,389 1,751 1,101 1,809 602 1,171 1,780 3,526 1,308 1,197 1,761 1,828 4,242 1,224 219 545 1,850 1,008 914 2,436 2,432 1,533 5,728 1,870 570 (813) 128,722
% of Total Funds 1.32% 0.93% 6.00% 0.86% 2.20% 1.08% 1.36% 0.86% 1.41% 0.47% 0.91% 1.38% 2.74% 1.02% 0.93% 1.37% 1.42% 3.30% 0.95% 0.17% 0.42% 1.44% 0.78% 0.71% 1.89% 1.89% 1.19% 4.45% 1.45% 0.44% -0.63% 100.00%
Manufacture of Other Perfumes and Toilet Preparations N.E.C. Manufacture of Synthetic or Artificial Filament Tow Manufacture of Allopathic Pharmaceutical Preparations Manufacture of Other Plastics Products N.E.C. Manufacture of Hot-Rolled and Cold-Rolled Products of Steel Manufacture of Copper From ore, & Other Copper Products & Alloys Manufacture of Other Non-Ferrous Metals N.E.C. Mfg - Steam or Other Vapour Generating Boilers, Hot Water Boilers Manufacture of Power Generators, Motor Generator Sets Manufacture of Other Electronic and Electric Wires and Cables Mfg - Engines & Turbines, Except Aircraft, Vehicle & Cycle Engine Manufacture of Other General Purpose Machinery N.E.C. Manufacture of Motor Vehicles N.E.C. Manufacture of Motorcycles, Scooters, Mopeds Etc. & Their Engine Mfg - Parts & Accessories of Three Wheelers & Motorcycles Mfg - Jewellery of Gold, Silver & Other Precious or Base Metal Electric Power Generation By Non-Coal Based Thermal Construction of Utility Projects N.E.C. Other Civil Engineering Projects N.E.C. Actvty-Commission Agent Dealing-Wholesale Trade Inwood,Paper,Skin Other Retail Sale Not In Stores, Stalls or Markets Storage and Warehousing N.E.C. Other Land Transport Services N.E.C Service Activities Incidental To Water Transportation Actvty-Maintain,Operating Cellur,Other Tetecommunication Network News Agency Activities Financial Leasing Other Credit Granting Activities Auxiliary to Financial Service Activities N.E.C. Hospital Activities Net Current Assets Grand Total
216
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Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Classic Opportunities Fund % of Total Funds
Providing Software Support and Maintenance to the Clients Infosys Technologies Ltd Oracle Financial Services Software Ltd Tata Consultancy Services Ltd Wipro Ltd Total Monetary Intermediation of Commercial,Saving,Postal Savings Bank 7.00% HDFC FD1- 16.07.2011 7.00% HDFC FD2- 16.07.2011 7.05% HDFC FD- 24.07.2011 Allahabad Bank Axis Bank Ltd Bank of Baroda Bank of India CD - 05.03.2012 Bank of India CD - 23.08.2011 Bank of India CD - 28.09.2011 Bank of India CD -19.12.2011 Canara Bank CD - 25.08.2011 HDFC Bank Ltd ICICI Bank Ltd IndusInd Bank Limited State Bank of India State Bank of Mysore CD - 02.06.2011 State Bank of Patiala CD - 14.09.2011 State Bank of Travancore CD - 07.02.2012 State Bank of Travancore CD - 11.07.2011 State Bank of Travancore CD - 23.08.2011 Union Bank of India Total Others On Shore Extraction of Crude Petroleum Manufacture or Refining of Sugar (Sucrose) From Sugercane Mfg - Malted Foods Including Foods For Infants & Handicapped Manufacture of Cigarettes, Cigarette Tobacco 98,563 41,222 42,488 111,473 2.93% 1.23% 1.26% 3.32% 928 428 937 20,279 53,630 41,094 59,503 36,685 3,319 14,228 15,377 95,631 137,113 52,196 86,015 1,505 10 70,057 5,015 12,538 41,271 747,755 0.03% 0.01% 0.03% 0.60% 1.60% 1.22% 1.77% 1.09% 0.10% 0.42% 0.46% 2.85% 4.08% 1.55% 2.56% 0.04% 0.00% 2.08% 0.15% 0.37% 1.23% 22.25% 173,970 27,190 154,079 27,716 382,955 5.18% 0.81% 4.58% 0.82% 11.39%
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Industry Manufacture of Paper And Paper Rolls Not Further Processed Manufacture of Other Petroleum N.E.C. Manufacture of Urea and Other Organic Fertilizers Manufacture of Paints and Varnishes, Enamels or Lacquers Manufacture of Other Perfumes and Toilet Preparations N.E.C. Manufacture of Synthetic or Artificial Filament Tow Manufacture of Allopathic Pharmaceutical Preparations Manufacture of Other Plastics Products N.E.C. Manufacture of Hot-Rolled and Cold-Rolled Products of Steel Manufacture of Copper From ore, & Other Copper Products & Alloys Manufacture of Other Non-Ferrous Metals N.E.C. Mfg - Steam or Other Vapour Generating Boilers, Hot Water Boilers Manufacture of Power Generators, Motor Generator Sets Manufacture of Other Electronic and Electric Wires and Cables Mfg - Engines & Turbines, Except Aircraft, Vehicle & Cycle Engine Manufacture of Other General Purpose Machinery N.E.C. Manufacture of Motor Vehicles N.E.C. Manufacture of Motorcycles, Scooters, Mopeds Etc. & Their Engine Mfg - Parts & Accessories of Three Wheelers & Motorcycles Mfg - Jewellery of Gold, Silver & Other Precious or Base Metal Electric Power Generation By Non-Coal Based Thermal Construction of Utility Projects N.E.C. Other Civil Engineering Projects N.E.C. Actvty-Commission Agent Dealing-Wholesale Trade Inwood,Paper,Skin Other Retail Sale Not In Stores, Stalls or Markets Storage and Warehousing N.E.C. Other Land Transport Services N.E.C Service Activities Incidental To Water Transportation Actvty-Maintain,Operating Cellur,Other Tetecommunication Network News Agency Activities Financial Leasing Other Credit Granting Activities Auxiliary to Financial Service Activities N.E.C. Hospital Activities Net Current Assets Grand Total
Classic Opportunities Fund 19,670 218,484 26,830 27,516 42,158 27,210 166,792 27,285 68,771 29,300 40,669 26,770 40,521 13,891 28,237 40,810 80,912 27,960 27,545 40,337 41,770 95,095 28,013 3,664 12,983 42,362 26,248 20,907 55,666 52,949 35,068 131,673 53,630 13,601 301,256 3,361,009
% of Total Funds 0.59% 6.50% 0.80% 0.82% 1.25% 0.81% 4.96% 0.81% 2.05% 0.87% 1.21% 0.80% 1.21% 0.41% 0.84% 1.21% 2.41% 0.83% 0.82% 1.20% 1.24% 2.83% 0.83% 0.11% 0.39% 1.26% 0.78% 0.62% 1.66% 1.58% 1.04% 3.92% 1.60% 0.40% 8.96% 100.00%
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Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Pension Classic Opportunities Fund % of Total Funds
Providing Software Support and Maintenance to the Clients Infosys Technologies Ltd Oracle Financial Services Software Ltd Tata Consultancy Services Ltd Wipro Ltd Total Monetary Intermediation of Commercial,Saving,Postal Savings Bank 7.00% HDFC FD1- 16.07.2011 7.00% HDFC FD2- 16.07.2011 7.05% HDFC FD- 24.07.2011 Allahabad Bank Axis Bank Ltd Bank of Baroda Bank of Baroda CD - 03.06.2011 Bank of India CD - 23.08.2011 Bank of India CD -19.12.2011 Canara Bank CD - 02.05.2011 HDFC Bank Ltd ICICI Bank Ltd IndusInd Bank Limited State Bank of Bikaner & Jaipur CD - 15.06.2011 State Bank of India State Bank of Travancore CD - 23.08.2011 Union Bank of India Vijaya Bank CD - 09.09.2011 Total Others On Shore Extraction of Crude Petroleum Manufacture or Refining of Sugar (Sucrose) From Sugercane Mfg - Malted Foods Including Foods For Infants & Handicapped Manufacture of Cigarettes, Cigarette Tobacco Manufacture of Paper And Paper Rolls Not Further Processed Manufacture of Other Petroleum N.E.C. Manufacture of Urea and Other Organic Fertilizers 19,727 8,577 8,935 23,041 4,293 45,829 5,542 3.22% 1.40% 1.46% 3.76% 0.70% 7.48% 0.90% 157 72 172 4,397 11,521 8,604 3,100 5,346 1,707 283 20,355 29,012 11,088 2,304 18,458 3,009 8,332 7,033 134,951 0.03% 0.01% 0.03% 0.72% 1.88% 1.40% 0.51% 0.87% 0.28% 0.05% 3.32% 4.73% 1.81% 0.38% 3.01% 0.49% 1.36% 1.15% 22.02% 36,983 5,165 31,769 5,469 79,386 6.04% 0.84% 5.18% 0.89% 12.96%
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Industry
Pension Classic Opportunities Fund 5,670 8,245 5,631 35,564 5,269 13,382 5,601 8,294 5,071 8,403 3,221 5,581 8,430 17,004 6,370 5,606 8,522 8,570 20,236 5,784 1,071 2,816 8,745 4,833 4,312 12,066 9,876 7,239 27,454 9,330 2,676 1,604 612,762
% of Total Funds 0.93% 1.35% 0.92% 5.80% 0.86% 2.18% 0.91% 1.35% 0.83% 1.37% 0.53% 0.91% 1.38% 2.78% 1.04% 0.91% 1.39% 1.40% 3.30% 0.94% 0.17% 0.46% 1.43% 0.79% 0.70% 1.97% 1.61% 1.18% 4.48% 1.52% 0.44% 0.26% 100.00%
Manufacture of Paints and Varnishes, Enamels or Lacquers Manufacture of Other Perfumes and Toilet Preparations N.E.C. Manufacture of Synthetic or Artificial Filament Tow Manufacture of Allopathic Pharmaceutical Preparations Manufacture of Other Plastics Products N.E.C. Manufacture of Hot-Rolled and Cold-Rolled Products of Steel Manufacture of Copper From ore, & Other Copper Products & Alloys Manufacture of Other Non-Ferrous Metals N.E.C. Mfg - Steam or Other Vapour Generating Boilers, Hot Water Boilers Manufacture of Power Generators, Motor Generator Sets Manufacture of Other Electronic and Electric Wires and Cables Mfg - Engines & Turbines, Except Aircraft, Vehicle & Cycle Engine Manufacture of Other General Purpose Machinery N.E.C. Manufacture of Motor Vehicles N.E.C. Manufacture of Motorcycles, Scooters, Mopeds Etc. & Their Engine Mfg - Parts & Accessories of Three Wheelers & Motorcycles Mfg - Jewellery of Gold, Silver & Other Precious or Base Metal Electric Power Generation By Non-Coal Based Thermal Construction of Utility Projects N.E.C. Other Civil Engineering Projects N.E.C. Actvty-Commission Agent Dealing-Wholesale Trade Inwood,Paper,Skin Other Retail Sale Not In Stores, Stalls or Markets Storage and Warehousing N.E.C. Other Land Transport Services N.E.C Service Activities Incidental To Water Transportation Actvty-Maintain,Operating Cellur,Other Tetecommunication Network News Agency Activities Financial Leasing Other Credit Granting Activities Auxiliary to Financial Service Activities N.E.C. Hospital Activities Net Current Assets Grand Total
220
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Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Dynamic Floor Fund % of Total Funds
Government of India 364 Days T Bill - 15.07.2011 6.05% GOI 2019 - 02.02.19 6.90% OIL SPL - 04.02.2026 7.00% GOI Fertilizer Bond - 10.12.22 7.27% GOI - 03.09.13 7.40% GOI 2012 - 03.05.12 7.40% GOI 2035 - 09.09.35 7.46% GOI - 28.08.17 7.56% GOI 2014 - 03.11.14 7.59% GOI 2016 7.75% OMC GOI BOND - 28.11.2021 7.80% GOI - 03.05.2020 7.95% Oil Bond - 18.01.25 8.07% GOI Jan 15, 2017 8.08% GOI - 02.08.2022 8.13% GOI - 21.09.2022 8.20% GOI - 15.02.22 8.24% GOI - 15.02.27 8.26% GOI - 02.08.27 8.35% GOI - 14.05.22 91 Days T Bill - 22.04.2011 Total Monetary Intermediation of Commercial,Saving,Postal Savings Bank 10.10% SBH Bank FD - 12.03.2014 10.15% IOB FD - 09.02.2013 10.25% Axis Bank FD - 28.02.2013 10.25% IOB FD - 09.03.2013 10.30% Axis Bank FD - 14.03.2013 10.31% Union Bank FD - 30.03.2012 10.36% Union Bank FD - 28.03.2012 7.00% HDFC FD1- 16.07.2011 7.00% HDFC FD2- 16.07.2011 7.05% HDFC FD- 24.07.2011 74,000 24,014 27,500 11,423 26,040 24,544 37,829 2,696 1,244 2,843 0.95% 0.31% 0.35% 0.15% 0.33% 0.31% 0.48% 0.03% 0.02% 0.04% 33,406 30,979 13,084 164 4,206 10,578 14,609 2,526 11,100 9,032 4,831 2,056 199,929 7,717 184,240 154,631 61,779 55,033 86,884 4,682 41,234 932,699 0.43% 0.40% 0.17% 0.00% 0.05% 0.14% 0.19% 0.03% 0.14% 0.12% 0.06% 0.03% 2.56% 0.10% 2.36% 1.98% 0.79% 0.70% 1.11% 0.06% 0.53% 11.94%
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Industry 8.80% PNB - 18.04.2012 8.85% SBI Upper Tier II - 04.10.2021 Call 04.10.2016 9.05% Canara Perpetual Bond Call- 03.08.2020 9.05% SBH Perpetual Bond Call- 20.09.2020 9.05% SBI Perpetual Bond Call - 27.01.2020 9.15% PNB - 16.04.2016 9.15% SBP Perpetual Bond CALL 18.01.2020 9.35% BOI - 31.07.2021 Call 31.07.2016 9.70% Canara Bank FD - 20.12.2012 9.85% HDFC Bank 2019 - 17.03.2024 CALL 17.03.2019 9.85% SBI - 27.06.2016 9.95% SBI 2026 - 16.03.2026 Call 16.03.2021 9.98% ICICI Perpetual Bond -CALL 13.09.16 Axis Bank Ltd Bank of India CD- 24.06.2011 Bank of India CD - 05.03.2012 Bank of India CD - 23.08.2011 Bank of India CD -19.12.2011 Corporation Bank CD - 07.09.2011 Corporation Bank CD - 20.8.2011 HDFC Bank Ltd ICICI Bank Ltd Indian Overseas Bank CD - 05.03.2012 Punjab National Bank State Bank of Bikaner & Jaipur CD - 28.06.2011 State Bank of India State Bank of Travancore CD - 07.02.2012 State Bank of Travancore CD - 14.09.2011 State Bank of Travancore CD - 22.02.2012 UTI Bank Floater INBMK + 65 bps - 25.07.2012 Vijaya Bank CD - 09.09.2011 Total Other Credit Granting 10.85% REC - 14.08.18 10.90% REC - 30.09.13 11.15% PFC - 15.09.2011 11.15% REC - 24.10.2018 11.25% HDFC - 04.09.18 11.40% PFC - 28.11.13 7.00% PFC P/C 2009 - 24.12.2011
Dynamic Floor Fund 386 254,611 60,870 6,548 6,298 89,449 17,513 28,824 65,050 1,912 6,591 141,215 4,347 51,893 10,120 28,969 71,224 59,700 606 31,619 118,172 180,168 126,028 22,905 7,450 101,174 15,040 857 74,748 49,250 33,378 1,899,047
% of Total Funds 0.00% 3.26% 0.78% 0.08% 0.08% 1.14% 0.22% 0.37% 0.83% 0.02% 0.08% 1.81% 0.06% 0.66% 0.13% 0.37% 0.91% 0.76% 0.01% 0.40% 1.51% 2.31% 1.61% 0.29% 0.10% 1.29% 0.19% 0.01% 0.96% 0.63% 0.43% 24.31%
22,753 102,639 12,777 17,494 370 45,326 2,950
0.29% 1.31% 0.16% 0.22% 0.00% 0.58% 0.04%
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Industry 7.20% REC - 17.03.2012 7.20% REC - 17.03.2013 7.20% REC - 17.03.2015 7.20% REC -17.09.2012 7.30% REC- 30.06.2011 7.55% LIC Housing Finance - 28.06.2012 7.70% REC - 02.06.2014 7.75% REC - 17.11.2012 7.85% Sundaram Finance - 25.03.2013 7.90% REC - 06.10.2012 8.23% Sundaram Finance - 27.07.12 8.26% LIC Housing Finance - 08.07.2015 8.28 IDFC 2011 8.35% REC - 04.09.2014 8.45% PFC - 15.10.2014 8.45% PFC - 17.09.2014 8.48% LIC Housing Finance - 27.09.2013 8.5 % LIC Housing Finance 9 June 11 8.55% LIC Hsg Finance - 20.10.2011 8.60% PFC 2014 - 07.08.2014 8.60% PFC 2024 - 07.08.2024 8.75% Bajaj Auto Finance - 24.06.2011 8.78% PFC- 11.12.2016 8.80% PFC - 15.01.2025 8.80% REC - 06.10.2019 8.80% REC - 25.10.2020 8.80% REC - 29.11.2020 8.88% LIC Housing Finance - 13.10.2020 8.95% HDFC - 19.10.2020 8.95% PFC- 30.03.2015 8.97% PFC - 15.01.2018 8.98% HDFC - 26.11.2020 8.99% PFC - 15.01.2021 9.00% Bajaj Auto Finance - 02.11.2012 9.07% REC - 28.02.2018 9.32% HDFC - 17.12.12 9.45% HDFC - 11.01.2013 9.45% LIC Hsg Fin - 01.01.12 9.45% REC - 04.04.13 9.48% LIC Housing Finance - 11.01.2013
Dynamic Floor Fund 8,408 11,583 5,468 25,860 3,866 49 29,013 835 79,119 2,470 10,747 84,844 5,830 144,122 28,898 173,662 162,165 3,812 15,702 8,886 1,858 17,934 12,486 2,513 4,098 27,406 1,935 18,330 20,415 49,469 29,786 20,594 12,353 304 2,989 4,428 22,886 3,506 2,610 39,865
% of Total Funds 0.11% 0.15% 0.07% 0.33% 0.05% 0.00% 0.37% 0.01% 1.01% 0.03% 0.14% 1.09% 0.07% 1.84% 0.37% 2.22% 2.08% 0.05% 0.20% 0.11% 0.02% 0.23% 0.16% 0.03% 0.05% 0.35% 0.02% 0.23% 0.26% 0.63% 0.38% 0.26% 0.16% 0.00% 0.04% 0.06% 0.29% 0.04% 0.03% 0.51%
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Industry 9.50% HDFC - 27.02.13 9.50% LIC Housing Finance - 18.02.2012 9.75% HDFC - 08.03.2016 9.75% HDFC - 28.01.2014 9.85% REC - 28.09.17 HDFC Ltd Floater 5 Year INBMK + 120 bps - 18.01.2016 HDFC Ltd ZCB - 08.02.2012 HDFC Ltd ZCB - 24.08.2012 HDFC Ltd ZCB - 30.08.2013 Housing Development Finance Corp. Ltd Infrastructure Development Finance Company Ltd Total Others State Development Loan On Shore Extraction of Crude Petroleum Mining of Iron Ores Manufacture of Cigarettes, Cigarette Tobacco Manufacture of Other Petroleum N.E.C. Manufacture of Other Perfumes and Toilet Preparations N.E.C. Manufacture of Synthetic or Artificial Filament Tow Manufacture of Allopathic Pharmaceutical Preparations Manufacture of Portl & Aluminous,Slag & Similar Hydraulic Cement Manufacture of Hot-Rolled and Cold-Rolled Products of Steel Manufacture of Copper From ore, & Other Copper Products & Alloys Manufacture of Electricity Distribution and Control Apparatus Manufacture of Other General Purpose Machinery N.E.C. Manufacture of Passenger Cars Mfg - Commercial Vehicles Vans,Lorries,Over-The-Road Tractors Etc Manufacture of Motor Vehicles N.E.C. Manufacture of Motorcycles, Scooters, Mopeds Etc. & Their Engine Electric Power Generation By Non-Coal Based Thermal Colln,Dist.-Electric Energy To Households, Industrial, Commercial Construction and Maintenance of Motorways, Streets, Roads Construction of Utility Projects N.E.C. Storage and Warehousing N.E.C. Activities of Basic Telecom Services: Telephone, Telex,Telegraph Actvty-Maintain,Operating Cellur,Other Tetecommunication Network Providing Software Support and Maintenance to the Clients Financial Leasing Activities Auxiliary to Financial Service Activities N.E.C. Real Estate Activities with Own or Leased Property Net Current Assets Grand Total
Dynamic Floor Fund 3,435 281 5,178 15,832 88,948 50,500 17,079 28,847 14 129,299 23,355 1,668,179
% of Total Funds 0.04% 0.00% 0.07% 0.20% 1.14% 0.65% 0.22% 0.37% 0.00% 1.65% 0.30% 21.35%
62,225 84,353 16,817 147,116 279,604 46,928 23,110 92,449 34,084 143,424 77,677 20,022 48,111 26,558 154,413 51,061 53,738 75,463 163,249 15,779 139,341 30,768 24,814 69,895 479,399 785 774,960 14,597 162,634 7,813,299
0.80% 1.08% 0.22% 1.88% 3.58% 0.60% 0.30% 1.18% 0.44% 1.84% 0.99% 0.26% 0.62% 0.34% 1.98% 0.65% 0.69% 0.97% 2.09% 0.20% 1.78% 0.39% 0.32% 0.89% 6.14% 0.01% 9.92% 0.19% 2.08% 100.00%
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Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Kotak Group Dynamic Floor Fund % of Total Funds
Government of India 364 Days T Bill - 15.07.2011 6.35% OMC GOI BOND - 23.12.2024 6.90% OIL SPL - 04.02.2026 7.00% GOI Fertilizer Bond - 10.12.22 7.40% GOI 2012 - 03.05.12 7.56% GOI 2014 - 03.11.14 7.59% GOI 2016 7.95% Oil Bond - 18.01.25 8.07% GOI Jan 15, 2017 8.08% GOI - 02.08.2022 8.13% GOI - 21.09.2022 8.20% GOI - 15.02.22 8.24% GOI - 15.02.27 8.26% GOI - 02.08.27 8.35% GOI - 14.05.22 91 Days T Bill - 22.04.2011 Total Monetary Intermediation of Commercial,Saving,Postal Savings Bank 10.10% SBH Bank FD - 12.03.2014 10.15% IOB FD - 09.02.2013 10.25% Axis Bank FD - 28.02.2013 10.25% IOB FD - 09.03.2013 10.30% Axis Bank FD - 14.03.2013 10.31% Union Bank FD - 30.03.2012 10.36% Union Bank FD - 28.03.2012 7.00% HDFC FD1- 16.07.2011 7.00% HDFC FD2- 16.07.2011 7.05% HDFC FD- 24.07.2011 8.85% SBI Upper Tier II - 04.10.2021 Call 04.10.2016 9.05% Canara Perpetual Bond Call- 03.08.2020 9.05% SBH Perpetual Bond Call- 20.09.2020 9.15% SBP Perpetual Bond CALL 18.01.2020 9.70% Canara Bank FD - 20.12.2012 2,500 829 2,500 394 900 858 1,284 139 64 142 8,833 2,117 1,897 1,104 2,500 0.90% 0.30% 0.90% 0.14% 0.32% 0.31% 0.46% 0.05% 0.02% 0.05% 3.17% 0.76% 0.68% 0.40% 0.90% 1,195 203 802 5 2,353 2,493 19 6,828 281 5,750 5,107 2,884 1,858 8,968 98 1,494 40,338 0.43% 0.07% 0.29% 0.00% 0.85% 0.90% 0.01% 2.45% 0.10% 2.07% 1.84% 1.04% 0.67% 3.22% 0.04% 0.54% 14.50%
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Industry
Kotak Group Dynamic Floor Fund 2,316 4,797 1,452 2,033 21 997 1,103 4,476 6,807 5,232 4,345 859 811 3,860 1,012 2,282 3,103 3,232 3,456 78,251
% of Total Funds 0.83% 1.72% 0.52% 0.73% 0.01% 0.36% 0.40% 1.61% 2.45% 1.88% 1.56% 0.31% 0.29% 1.39% 0.36% 0.82% 1.11% 1.16% 1.24% 28.12%
9.85% SBI - 27.06.2016 9.95% SBI 2026 - 16.03.2026 Call 16.03.2021 9.98% ICICI Perpetual Bond -CALL 13.09.16 Axis Bank Ltd Bank of Baroda CD - 03.06.2011 Bank of India CD - 05.03.2012 Corporation Bank CD - 20.8.2011 HDFC Bank Ltd ICICI Bank Ltd IDBI Bank CD - 10.05.11 Indian Overseas Bank CD - 05.03.2012 Punjab National Bank State Bank of Bikaner & Jaipur CD - 28.06.2011 State Bank of India State Bank of Mysore CD - 02.06.2011 State Bank of Travancore CD - 07.02.2012 State Bank of Travancore CD - 14.09.2011 State Bank of Travancore CD - 22.02.2012 Vijaya Bank CD - 09.09.2011 Total Other Credit Granting 10.35% HDFC 2017 - 16.05.17 10.90% REC - 30.09.13 11.15% REC - 24.10.2018 11.25% HDFC - 04.09.18 11.40% PFC - 28.11.13 11.50% REC - 26.11.13 7.00% PFC P/C 2009 - 24.12.2011 7.20% REC - 17.03.2012 7.30% REC- 30.06.2011 8.26% LIC Housing Finance - 08.07.2015 8.28 IDFC 2011 8.35% REC - 04.09.2014 8.5 % LIC Housing Finance 9 June 11 8.60% PFC 2024 - 07.08.2024 8.70% PFC- 14.05.2020 8.80% REC - 29.11.2020 8.95% PFC- 30.03.2015 8.97% PFC - 15.01.2018 9.32% HDFC - 17.12.12
21 1,921 1,363 11 1,452 592 848 249 373 7,021 116 4,239 1,872 55 1,955 230 1,872 1,090 53
0.01% 0.69% 0.49% 0.00% 0.52% 0.21% 0.30% 0.09% 0.13% 2.52% 0.04% 1.52% 0.67% 0.02% 0.70% 0.08% 0.67% 0.39% 0.02%
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Industry
Kotak Group Dynamic Floor Fund 787 1,495 102 354 538 2,410 1,840 1 4,889 912 38,661
% of Total Funds 0.28% 0.54% 0.04% 0.13% 0.19% 0.87% 0.66% 0.00% 1.76% 0.33% 13.89%
9.45% REC - 04.04.13 9.48% LIC Housing Finance - 11.01.2013 9.50% HDFC - 27.02.13 9.75% HDFC - 08.03.2016 9.75% HDFC - 28.01.2014 9.85% REC - 28.09.17 HDFC Ltd Floater 5 Year INBMK + 120 bps - 18.01.2016 HDFC Ltd ZCB - 30.08.2013 Housing Development Finance Corp. Ltd Infrastructure Development Finance Company Ltd Total Activities Auxiliary to Financial Service Activities N.E.C. 7.19% NABARD - 29.04.2013 7.45% IRFC - 27.04.2014 7.80% NABARD - 16.08.2013 P/C 16.08.2012 7.95% Tata Sons - 19.04.2013 8.10% EXIM - 15.07.2015 8.19% SIDBI - 28.09.2013 PC 28.03.12 8.20% IRFC - 27.04.2015 8.20% NHB - 30.08.2013 8.45% EXIM Bank - 08.09.2015 8.45% IRFC - 26.12.18 8.50% EXIM 2011 - 12.09.2011 8.50% IRFC - 22.06.2020 9.15% EXIM Bank - 30.03.2021 9.15% EXIM Bank 08.03.2021 9.40% Tata Sons - 04.04.13 9.80% Nabard - 10.09.12 9.90% Tata Sons - 24.02.2016 BIRLA CASH PLUS - INSTITUTIONAL PREMIUM - GROWTH ICICI Prud Liquid Plan - SI Growth Kotak Floater Short Term- Growth Total Others State Development Loan On Shore Extraction of Crude Petroleum Mining of Iron Ores Manufacture of Cigarettes, Cigarette Tobacco Manufacture of Other Petroleum N.E.C. Manufacture of Other Perfumes and Toilet Preparations N.E.C.
2,304 74 2,860 852 1,369 2,082 992 3,448 4,566 1,415 77 322 858 533 2,316 1,354 1,564 3,116 3,437 4,812 38,349
0.83% 0.03% 1.03% 0.31% 0.49% 0.75% 0.36% 1.24% 1.64% 0.51% 0.03% 0.12% 0.31% 0.19% 0.83% 0.49% 0.56% 1.12% 1.24% 1.73% 13.78%
2,158 3,226 644 5,630 10,679 1,793
0.78% 1.16% 0.23% 2.02% 3.84% 0.64%
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Kotak Group Dynamic Floor Fund 875 3,493 1,302 4,468 2,974 766 1,842 1,015 5,503 1,950 2,055 2,778 2,941 586 5,322 1,159 830 2,668 16,915 23 558 (1,479) 278,273
% of Total Funds 0.31% 1.26% 0.47% 1.61% 1.07% 0.28% 0.66% 0.36% 1.98% 0.70% 0.74% 1.00% 1.06% 0.21% 1.91% 0.42% 0.30% 0.96% 6.08% 0.01% 0.20% -0.53% 100.00%
Manufacture of Synthetic or Artificial Filament Tow Manufacture of Allopathic Pharmaceutical Preparations Manufacture of Portl & Aluminous,Slag & Similar Hydraulic Cement Manufacture of Hot-Rolled and Cold-Rolled Products of Steel Manufacture of Copper From ore, & Other Copper Products & Alloys Manufacture of Electricity Distribution and Control Apparatus Manufacture of Other General Purpose Machinery N.E.C. Manufacture of Passenger Cars Mfg - Commercial Vehicles Vans,Lorries,Over-The-Road Tractors Etc Manufacture of Motor Vehicles N.E.C. Manufacture of Motorcycles, Scooters, Mopeds Etc. & Their Engine Electric Power Generation By Non-Coal Based Thermal Colln,Dist.-Electric Energy To Households, Industrial, Commercial Construction and Maintenance of Motorways, Streets, Roads Construction of Utility Projects N.E.C. Storage and Warehousing N.E.C. Activities of Basic Telecom Services: Telephone, Telex,Telegraph Actvty-Maintain,Operating Cellur,Other Tetecommunication Network Providing Software Support and Maintenance to the Clients Financial Leasing Real Estate Activities with Own or Leased Property Net Current Assets Grand Total
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Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Kotak Pension Floor Fund % of Total Funds
Government of India 11.43% GOI - 07.08.2015 364 Days T Bill - 15.07.2011 6.35% OMC GOI BOND - 23.12.2024 6.90% OIL SPL - 04.02.2026 7.40% GOI 2012 - 03.05.12 7.59% GOI 2016 7.94% GOI - 24.05.21 7.95% Oil Bond - 18.01.25 8.07% GOI Jan 15, 2017 8.08% GOI - 02.08.2022 8.13% GOI - 21.09.2022 8.20% GOI - 15.02.22 8.24% GOI - 15.02.27 8.26% GOI - 02.08.27 9.39% GOI 02-July-2011 91 Days T Bill - 22.04.2011 Total Monetary Intermediation of Commercial,Saving,Postal Savings Bank 10.10% SBH Bank FD - 12.03.2014 10.15% IOB FD - 09.02.2013 10.25% Axis Bank FD - 28.02.2013 10.25% IOB FD - 09.03.2013 10.30% Axis Bank FD - 14.03.2013 10.31% Union Bank FD - 30.03.2012 10.36% Union Bank FD - 28.03.2012 7.00% HDFC FD1- 16.07.2011 7.00% HDFC FD2- 16.07.2011 7.05% HDFC FD- 24.07.2011 8.85% SBI Upper Tier II - 04.10.2021 Call 04.10.2016 9.05% Canara Perpetual Bond Call- 03.08.2020 9.05% SBH Perpetual Bond Call- 20.09.2020 9.15% PNB - 16.04.2016 9.15% SBP Perpetual Bond CALL 18.01.2020 5,800 2,806 3,500 1,335 3,000 2,796 4,329 299 138 312 28,798 6,961 3,363 339 4,655 0.66% 0.32% 0.40% 0.15% 0.34% 0.32% 0.49% 0.03% 0.02% 0.04% 3.28% 0.79% 0.38% 0.04% 0.53% 3,618 3,977 606 2,703 3,943 96 8,857 25,180 913 22,458 16,801 6,464 4,297 14,158 327 4,880 119,278 0.41% 0.45% 0.07% 0.31% 0.45% 0.01% 1.01% 2.86% 0.10% 2.55% 1.91% 0.74% 0.49% 1.61% 0.04% 0.56% 13.57%
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Industry
Kotak Pension Floor Fund 8,000 3,235 16,143 7,818 3,384 4,034 12,348 111 3,590 17,791 27,293 14,526 3,425 15,223 6,160 3,103 7,773 12,006 234,396
% of Total Funds 0.91% 0.37% 1.84% 0.89% 0.38% 0.46% 1.40% 0.01% 0.41% 2.02% 3.10% 1.65% 0.39% 1.73% 0.70% 0.35% 0.88% 1.37% 26.66%
9.70% Canara Bank FD - 20.12.2012 9.85% SBI - 27.06.2016 9.95% SBI 2026 - 16.03.2026 Call 16.03.2021 Axis Bank Ltd Bank of India CD - 05.03.2012 Bank of India CD - 23.08.2011 Bank of India CD -19.12.2011 Corporation Bank CD - 07.09.2011 Corporation Bank CD - 20.8.2011 HDFC Bank Ltd ICICI Bank Ltd Indian Overseas Bank CD - 05.03.2012 Punjab National Bank State Bank of India State Bank of Travancore CD - 07.02.2012 State Bank of Travancore CD - 14.09.2011 State Bank of Travancore CD - 22.02.2012 Vijaya Bank CD - 09.09.2011 Total Other Credit Granting 10.25% HDFC 2012 - 29.05.12. 10.90% REC - 30.09.13 11.15% PFC - 15.09.2011 11.40% PFC - 28.11.13 11.50% REC - 26.11.13 7.20% REC - 17.03.2012 7.20% REC - 17.03.2015 7.20% REC -17.09.2012 7.35% HDFC- 15.02.2012 8.23% Sundaram Finance - 27.07.12 8.26% LIC Housing Finance - 08.07.2015 8.35% REC - 04.09.2014 8.48% LIC Housing Finance - 27.09.2013 8.55% LIC Hsg Finance - 20.10.2011 8.80% REC - 17.11.2019 8.80% REC - 25.10.2020 8.80% REC - 29.11.2020 8.95% PFC- 30.03.2015 8.95% PFC- 30.03.2020 8.97% PFC - 15.01.2018
1,892 12,222 1,478 4,841 3,744 310 1,384 3,362 2,821 8,163 9,495 1,689 5,332 1,959 978 3,272 4,689 8,543 421 3,529
0.22% 1.39% 0.17% 0.55% 0.43% 0.04% 0.16% 0.38% 0.32% 0.93% 1.08% 0.19% 0.61% 0.22% 0.11% 0.37% 0.53% 0.97% 0.05% 0.40%
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Industry 8.98% HDFC - 26.11.2020 9.48% LIC Housing Finance - 11.01.2013 9.75% HDFC - 28.01.2014 9.85% REC - 28.09.17 HDFC Ltd Floater 5 Year INBMK + 120 bps - 18.01.2016 HDFC Ltd ZCB - 30.08.2013 Housing Development Finance Corp. Ltd Infrastructure Development Finance Company Ltd Total Others State Development Loan On Shore Extraction of Crude Petroleum Mining of Iron Ores Manufacture of Cigarettes, Cigarette Tobacco Manufacture of Other Petroleum N.E.C. Manufacture of Other Perfumes and Toilet Preparations N.E.C. Manufacture of Synthetic or Artificial Filament Tow Manufacture of Allopathic Pharmaceutical Preparations Manufacture of Portl & Aluminous,Slag & Similar Hydraulic Cement Manufacture of Hot-Rolled and Cold-Rolled Products of Steel Manufacture of Copper From ore, & Other Copper Products & Alloys Manufacture of Electricity Distribution and Control Apparatus Manufacture of Other General Purpose Machinery N.E.C. Manufacture of Passenger Cars Mfg - Commercial Vehicles Vans,Lorries,Over-The-Road Tractors Etc Manufacture of Motor Vehicles N.E.C. Manufacture of Motorcycles, Scooters, Mopeds Etc. & Their Engine Electric Power Generation By Non-Coal Based Thermal Colln,Dist.-Electric Energy To Households, Industrial, Commercial Construction and Maintenance of Motorways, Streets, Roads Construction of Utility Projects N.E.C. Storage and Warehousing N.E.C. Activities of Basic Telecom Services: Telephone, Telex,Telegraph Actvty-Maintain,Operating Cellur,Other Tetecommunication Network Providing Software Support and Maintenance to the Clients Activities Auxiliary to Financial Service Activities N.E.C. Real Estate Activities with Own or Leased Property Net Current Assets Grand Total
Kotak Pension Floor Fund 14,212 4,983 1,811 8,829 5,980 1 19,571 3,549 139,060
% of Total Funds 1.62% 0.57% 0.21% 1.00% 0.68% 0.00% 2.23% 0.40% 15.82%
3,890 12,683 2,531 22,141 41,890 7,049 3,523 13,923 5,136 17,683 11,702 3,018 7,329 3,985 19,870 7,684 8,081 10,898 7,502 2,406 20,916 4,692 1,748 10,473 65,027 68,887 2,200 (533) 879,069
0.44% 1.44% 0.29% 2.52% 4.77% 0.80% 0.40% 1.58% 0.58% 2.01% 1.33% 0.34% 0.83% 0.45% 2.26% 0.87% 0.92% 1.24% 0.85% 0.27% 2.38% 0.53% 0.20% 1.19% 7.40% 7.84% 0.25% -0.06% 100.00%
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Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Dynamic Floor Fund II % of Total Funds
Government of India 11.43% GOI - 07.08.2015 12.30% GOI - 02.07.2016 364 Days T Bill - 15.07.2011 6.35% OMC GOI BOND - 23.12.2024 6.90% OIL SPL - 04.02.2026 7.02% GOI - 17.08.2016 7.27% GOI - 03.09.13 7.35% GOI 2024- 22.06.24 7.40% GOI 2012 - 03.05.12 7.56% GOI 2014 - 03.11.14 7.59% GOI 2016 7.94% GOI - 24.05.21 7.95% Oil Bond - 18.01.25 8.07% GOI Jan 15, 2017 8.08% GOI - 02.08.2022 8.13% GOI - 21.09.2022 8.20% GOI - 15.02.22 8.24% GOI - 15.02.27 8.26% GOI - 02.08.27 91 Days T Bill - 22.04.2011 Total Monetary Intermediation of Commercial,Saving,Postal Savings Bank 10.10% SBH Bank FD - 12.03.2014 10.15% IOB FD - 09.02.2013 10.25% Axis Bank FD - 28.02.2013 10.25% IOB FD - 09.03.2013 10.30% Axis Bank FD - 14.03.2013 10.31% Union Bank FD - 30.03.2012 10.36% Union Bank FD - 28.03.2012 7.00% HDFC FD1- 16.07.2011 7.00% HDFC FD2- 16.07.2011 52,500 8,899 9,500 4,233 9,780 9,897 14,944 1,081 499 1.51% 0.26% 0.27% 0.12% 0.28% 0.28% 0.43% 0.03% 0.01% 3,618 2,935 10,845 182 9,332 17,582 3,412 2,013 3,607 7,333 3,201 6,703 83,927 2,368 73,382 66,095 18,973 11,166 28,975 12,948 368,596 0.10% 0.08% 0.31% 0.01% 0.27% 0.51% 0.10% 0.06% 0.10% 0.21% 0.09% 0.19% 2.42% 0.07% 2.11% 1.90% 0.55% 0.32% 0.83% 0.37% 10.61%
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Industry 7.05% HDFC FD- 24.07.2011 8.85% SBI Upper Tier II - 04.10.2021 Call 04.10.2016 9.05% Canara Perpetual Bond Call- 03.08.2020 9.05% SBH Perpetual Bond Call- 20.09.2020 9.05% SBI Perpetual Bond Call - 27.01.2020 9.15% PNB - 16.04.2016 9.35% BOI - 31.07.2021 Call 31.07.2016 9.70% Canara Bank FD - 20.12.2012 9.85% SBI - 27.06.2016 9.95% SBI 2026 - 16.03.2026 Call 16.03.2021 Axis Bank Ltd Bank of India CD - 05.03.2012 Bank of India CD - 23.08.2011 Bank of India CD - 28.09.2011 Bank of India CD -19.12.2011 Corporation Bank CD - 20.8.2011 HDFC Bank Ltd ICICI Bank Ltd IDBI Bank CD - 10.05.11 Indian Overseas Bank CD - 05.03.2012 Punjab National Bank State Bank of India State Bank of Travancore CD - 07.02.2012 State Bank of Travancore CD - 22.02.2012 UTI Bank Floater INBMK + 65 bps - 25.07.2012 Vijaya Bank CD - 09.09.2011 Total Other Credit Granting 10.90% REC - 30.09.13 10.95% REC - 14.08.11 11.15% PFC - 15.09.2011 11.15% REC - 24.10.2018 11.40% PFC - 28.11.13 11.50% REC - 26.11.13 7.20% REC -17.09.2012 7.25% LIC Housing Finance - 10.06.2012 7.85% Sundaram Finance - 25.03.2013
Dynamic Floor Fund II 1,148 73,145 23,751 12,419 23,215 63,311 16,255 20,000 2,266 55,854 24,614 10,671 28,786 12,694 26,432 12,883 55,913 85,263 9,241 47,056 10,703 47,688 23,903 32,013 15,268 49,433 895,258
% of Total Funds 0.03% 2.11% 0.68% 0.36% 0.67% 1.82% 0.47% 0.58% 0.07% 1.61% 0.71% 0.31% 0.83% 0.37% 0.76% 0.37% 1.61% 2.45% 0.27% 1.35% 0.31% 1.37% 0.69% 0.92% 0.44% 1.42% 25.77%
48,997 12,334 4,835 17,219 22,806 1,746 3,848 37,464 3,462
1.41% 0.36% 0.14% 0.50% 0.66% 0.05% 0.11% 1.08% 0.10%
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Industry 8.00% REC- 05.08.2014 8.23% Sundaram Finance - 27.07.12 8.26% LIC Housing Finance - 08.07.2015 8.35% REC - 04.09.2014 8.45% PFC - 15.10.2014 8.48% LIC Housing Finance - 27.09.2013 8.5 % LIC Housing Finance 9 June 11 8.60% PFC 2014 - 07.08.2014 8.78% PFC- 11.12.2016 8.80% REC - 25.10.2020 8.80% REC - 29.11.2020 8.90% PFC- 15.03.2015 8.95% HDFC - 19.10.2020 8.95% PFC- 30.03.2015 8.97% PFC - 15.01.2018 8.98% HDFC - 26.11.2020 8.99% PFC - 15.01.2021 9.32% HDFC - 17.12.12 9.45% LIC Hsg Fin - 01.01.12 9.45% REC - 04.04.13 9.48% LIC Housing Finance - 11.01.2013 9.75% HDFC - 08.03.2016 9.75% HDFC - 28.01.2014 9.85% REC - 28.09.17 HDFC Ltd Floater 5 Year INBMK + 120 bps - 18.01.2016 HDFC Ltd ZCB - 30.08.2013 Housing Development Finance Corp. Ltd Infrastructure Development Finance Company Ltd Total Others State Development Loan On Shore Extraction of Crude Petroleum Mining of Iron Ores Manufacture of Cigarettes, Cigarette Tobacco Manufacture of Other Petroleum N.E.C. Manufacture of Other Perfumes and Toilet Preparations N.E.C. Manufacture of Synthetic or Artificial Filament Tow
Dynamic Floor Fund II 1,166 27,273 15,181 4,777 4,722 75,827 1,610 17,251 4,339 8,454 5,074 4,939 6,935 5,461 9,198 20,594 26,171 0 8,500 1,466 17,441 4,237 6,262 61,385 15,650 7 61,009 11,073 578,714
% of Total Funds 0.03% 0.79% 0.44% 0.14% 0.14% 2.18% 0.05% 0.50% 0.12% 0.24% 0.15% 0.14% 0.20% 0.16% 0.26% 0.59% 0.75% 0.00% 0.24% 0.04% 0.50% 0.12% 0.18% 1.77% 0.45% 0.00% 1.76% 0.32% 16.66%
9,891 39,963 7,967 69,694 134,048 22,232 10,884
0.28% 1.15% 0.23% 2.01% 3.86% 0.64% 0.31%
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Industry Manufacture of Allopathic Pharmaceutical Preparations Manufacture of Portl & Aluminous,Slag & Similar Hydraulic Cement Manufacture of Hot-Rolled and Cold-Rolled Products of Steel Manufacture of Copper From ore, & Other Copper Products & Alloys Manufacture of Electricity Distribution and Control Apparatus Manufacture of Other General Purpose Machinery N.E.C. Manufacture of Passenger Cars Mfg - Commercial Vehicles Vans,Lorries,Over-The-Road Tractors Etc Manufacture of Motor Vehicles N.E.C. Manufacture of Motorcycles, Scooters, Mopeds Etc. & Their Engine Electric Power Generation By Non-Coal Based Thermal Colln,Dist.-Electric Energy To Households, Industrial, Commercial Construction and Maintenance of Motorways, Streets, Roads Construction of Utility Projects N.E.C. Storage and Warehousing N.E.C. Activities of Basic Telecom Services: Telephone, Telex,Telegraph Actvty-Maintain,Operating Cellur,Other Tetecommunication Network Providing Software Support and Maintenance to the Clients Activities Auxiliary to Financial Service Activities N.E.C. Real Estate Activities with Own or Leased Property Net Current Assets Grand Total
Dynamic Floor Fund II 43,579 16,140 56,712 36,796 9,485 22,788 12,581 61,215 24,184 25,456 34,360 70,933 7,431 66,010 14,489 5,832 33,117 209,097 308,875 6,913 270,304 3,473,545
% of Total Funds 1.25% 0.46% 1.63% 1.06% 0.27% 0.66% 0.36% 1.76% 0.70% 0.73% 0.99% 2.04% 0.21% 1.90% 0.42% 0.17% 0.95% 6.02% 8.89% 0.20% 7.78% 100.00%
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Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Government of India 12.30% GOI - 02.07.2016 364 Days T Bill - 15.07.2011 6.35% OMC GOI BOND - 23.12.2024 6.90% OIL SPL - 04.02.2026 7.40% GOI 2012 - 03.05.12 7.46% GOI - 28.08.17 7.94% GOI - 24.05.21 7.95% Oil Bond - 18.01.25 8.07% GOI Jan 15, 2017 8.08% GOI - 02.08.2022 8.13% GOI - 21.09.2022 8.20% GOI - 15.02.22 8.24% GOI - 15.02.27 8.26% GOI - 02.08.27 91 Days T Bill - 22.04.2011 Total Monetary Intermediation of Commercial,Saving,Postal Savings Bank 10.10% SBH Bank FD - 12.03.2014 10.15% IOB FD - 09.02.2013 10.25% Axis Bank FD - 28.02.2013 10.25% IOB FD - 09.03.2013 10.30% Axis Bank FD - 14.03.2013 10.31% Union Bank FD - 30.03.2012 10.36% Union Bank FD - 28.03.2012 7.00% HDFC FD1- 16.07.2011 7.00% HDFC FD2- 16.07.2011 7.05% HDFC FD- 24.07.2011 8.85% SBI Upper Tier II - 04.10.2021 Call 04.10.2016 9.05% Canara Perpetual Bond Call- 03.08.2020 9.05% SBI Perpetual Bond Call - 27.01.2020 9.15% PNB - 16.04.2016 6,800 2,409 3,000 1,146 2,620 2,499 3,855 281 130 305 24,658 6,180 7,035 2,410 0.83% 0.29% 0.37% 0.14% 0.32% 0.31% 0.47% 0.03% 0.02% 0.04% 3.02% 0.76% 0.86% 0.29% 8,218 3,341 570 2,407 2,573 9,747 9,757 20,270 783 15,012 14,476 2,904 3,827 20,380 4,183 118,450 1.01% 0.41% 0.07% 0.29% 0.31% 1.19% 1.19% 2.48% 0.10% 1.84% 1.77% 0.36% 0.47% 2.49% 0.51% 14.49% Pension Floor Fund II % of Total Funds
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Industry 9.15% SBP Perpetual Bond CALL 18.01.2020 9.70% Canara Bank FD - 20.12.2012 9.85% SBI - 27.06.2016 9.95% SBI 2026 - 16.03.2026 Call 16.03.2021 Axis Bank Ltd Bank of Baroda CD - 03.06.2011 Bank of India CD - 05.03.2012 Bank of India CD - 23.08.2011 Bank of India CD -19.12.2011 Corporation Bank CD - 20.8.2011 HDFC Bank Ltd ICICI Bank Ltd Indian Overseas Bank CD - 05.03.2012 Punjab National Bank State Bank of India State Bank of Travancore CD - 07.02.2012 State Bank of Travancore CD - 14.09.2011 State Bank of Travancore CD - 22.02.2012 Vijaya Bank CD - 09.09.2011 Vijaya Bank CD - 24.05.2011 Total Other Credit Granting 10.90% REC - 30.09.13 11.15% PFC - 15.09.2011 11.15% REC - 24.10.2018 11.25% HDFC - 04.09.18 11.40% PFC - 28.11.13 8.26% LIC Housing Finance - 08.07.2015 8.28 IDFC 2011 8.35% REC - 04.09.2014 8.48% LIC Housing Finance - 27.09.2013 8.5 % LIC Housing Finance 9 June 11 8.80% REC - 25.10.2020 8.80% REC - 29.11.2020 8.95% PFC- 30.03.2015 8.97% PFC - 15.01.2018 9.25% PFC - 20.02.2012
Pension Floor Fund II 4,655 7,400 3,706 14,369 5,840 243 2,910 5,547 12,727 3,226 13,310 20,261 12,643 2,599 11,307 6,506 19,948 7,575 9,317 376 227,792
% of Total Funds 0.57% 0.91% 0.45% 1.76% 0.71% 0.03% 0.36% 0.68% 1.56% 0.39% 1.63% 2.48% 1.55% 0.32% 1.38% 0.80% 2.44% 0.93% 1.14% 0.05% 27.87%
10,206 1,286 4,487 22 4,357 22,357 47 1,896 6,310 47 2,949 4,118 5,641 3,013 1,414
1.25% 0.16% 0.55% 0.00% 0.53% 2.74% 0.01% 0.23% 0.77% 0.01% 0.36% 0.50% 0.69% 0.37% 0.17%
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Industry 9.45% REC - 04.04.13 9.48% LIC Housing Finance - 11.01.2013 9.75% HDFC - 28.01.2014 9.85% REC - 28.09.17 HDFC Ltd CP - 15.07.11 HDFC Ltd Floater 5 Year INBMK + 120 bps - 18.01.2016 HDFC Ltd ZCB - 08.02.2012 HDFC Ltd ZCB - 30.08.2013 Housing Development Finance Corp. Ltd Infrastructure Development Finance Company Ltd Sundaram Finance Ltd ZCB - 29.06.2012 Total Others State Development Loan On Shore Extraction of Crude Petroleum Mining of Iron Ores Manufacture of Cigarettes, Cigarette Tobacco Manufacture of Other Petroleum N.E.C. Manufacture of Other Perfumes and Toilet Preparations N.E.C. Manufacture of Synthetic or Artificial Filament Tow Manufacture of Allopathic Pharmaceutical Preparations Manufacture of Portl & Aluminous,Slag & Similar Hydraulic Cement Manufacture of Hot-Rolled and Cold-Rolled Products of Steel Manufacture of Copper From ore, & Other Copper Products & Alloys Manufacture of Electricity Distribution and Control Apparatus Manufacture of Other General Purpose Machinery N.E.C. Manufacture of Passenger Cars Mfg - Commercial Vehicles Vans,Lorries,Over-The-Road Tractors Etc Manufacture of Motor Vehicles N.E.C. Manufacture of Motorcycles, Scooters, Mopeds Etc. & Their Engine Electric Power Generation By Non-Coal Based Thermal Colln,Dist.-Electric Energy To Households, Industrial, Commercial Construction and Maintenance of Motorways, Streets, Roads Construction of Utility Projects N.E.C. Storage and Warehousing N.E.C. Activities of Basic Telecom Services: Telephone, Telex,Telegraph Actvty-Maintain,Operating Cellur,Other Tetecommunication Network
Pension Floor Fund II 5,897 3,822 1,610 6,679 8,196 5,110 4,892 4 14,492 2,680 10,341 131,873
% of Total Funds 0.72% 0.47% 0.20% 0.82% 1.00% 0.63% 0.60% 0.00% 1.77% 0.33% 1.27% 16.13%
2,615 9,484 1,893 16,546 31,149 5,272 2,577 10,379 3,833 14,018 8,744 2,253 5,417 2,982 15,919 5,740 6,039 8,164 4,839 1,760 15,648 3,433 1,473 7,848
0.32% 1.16% 0.23% 2.02% 3.81% 0.65% 0.32% 1.27% 0.47% 1.72% 1.07% 0.28% 0.66% 0.36% 1.95% 0.70% 0.74% 1.00% 0.59% 0.22% 1.91% 0.42% 0.18% 0.96%
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Industry Providing Software Support and Maintenance to the Clients Financial Leasing Activities Auxiliary to Financial Service Activities N.E.C. Real Estate Activities with Own or Leased Property Net Current Assets Grand Total
Pension Floor Fund II 49,528 64 69,283 1,643 30,671 817,330
% of Total Funds 6.06% 0.01% 8.48% 0.20% 3.75% 100.00%
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Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Guarantee Fund % of Total Funds
Government of India 12.30% GOI - 02.07.2016 364 Days T Bill - 15.07.2011 6.90% OIL SPL - 04.02.2026 7.40% GOI 2012 - 03.05.12 7.95% Oil Bond - 18.01.25 8.07% GOI Jan 15, 2017 8.08% GOI - 02.08.2022 8.13% GOI - 21.09.2022 8.20% GOI - 15.02.22 8.24% GOI - 15.02.27 8.26% GOI - 02.08.27 Total Monetary Intermediation of Commercial,Saving,Postal Savings Bank 10.10% SBH Bank FD - 12.03.2014 10.15% IOB FD - 09.02.2013 10.25% Axis Bank FD - 28.02.2013 10.25% IOB FD - 09.03.2013 10.30% Axis Bank FD - 14.03.2013 10.31% Union Bank FD - 30.03.2012 10.36% Union Bank FD - 28.03.2012 7.00% HDFC FD1- 16.07.2011 7.00% HDFC FD2- 16.07.2011 7.05% HDFC FD- 24.07.2011 8.85% SBI Upper Tier II - 04.10.2021 Call 04.10.2016 9.05% Canara Perpetual Bond Call- 03.08.2020 9.15% PNB - 16.04.2016 9.70% Canara Bank FD - 20.12.2012 9.95% SBI 2026 - 16.03.2026 Call 16.03.2021 Axis Bank Ltd Bank of Baroda CD - 03.06.2011 Bank of India CD - 05.03.2012 2,000 884 2,600 420 960 924 1,412 111 51 117 9,293 2,280 3,564 2,600 5,271 2,030 1,838 1,066 0.65% 0.29% 0.85% 0.14% 0.31% 0.30% 0.46% 0.04% 0.02% 0.04% 3.04% 0.75% 1.17% 0.85% 1.73% 0.66% 0.60% 0.35% 2,348 1,254 882 5,153 3,705 301 12,859 4,744 593 1,418 10,663 43,918 0.77% 0.41% 0.29% 1.69% 1.21% 0.10% 4.21% 1.55% 0.19% 0.46% 3.49% 14.38%
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Industry Bank of India CD - 23.08.2011 Corporation Bank CD - 20.8.2011 HDFC Bank Ltd ICICI Bank Ltd Indian Overseas Bank CD - 05.03.2012 Punjab National Bank State Bank of India State Bank of Mysore CD - 02.06.2011 State Bank of Travancore CD - 07.02.2012 State Bank of Travancore CD - 22.02.2012 Vijaya Bank CD - 09.09.2011 Total Other Credit Granting 10.25% HDFC 2012 - 29.05.12. 10.90% REC - 30.09.13 11.40% PFC - 28.11.13 7.20% REC - 17.03.2013 7.20% REC - 17.03.2015 7.35% HDFC- 15.02.2012 8.26% LIC Housing Finance - 08.07.2015 8.35% REC - 04.09.2014 8.48% LIC Housing Finance - 27.09.2013 8.80% REC - 25.10.2020 8.88% LIC Housing Finance - 13.10.2020 8.97% PFC - 15.01.2018 9.48% LIC Housing Finance - 11.01.2013 9.75% HDFC - 28.01.2014 9.85% REC - 28.09.17 HDFC Ltd CP - 15.07.11 HDFC Ltd ZCB - 30.08.2013 Housing Development Finance Corp. Ltd Infrastructure Development Finance Company Ltd Total Activities Auxiliary to Financial Service Activities N.E.C. 7.19% NABARD - 29.04.2013 7.80% NABARD - 16.08.2013 P/C 16.08.2012 7.85% NHB - 13.09.2013 PC 11
Guarantee Fund 2,723 1,196 4,591 7,021 4,642 907 3,929 752 3,346 2,020 8,030 76,579
% of Total Funds 0.89% 0.39% 1.50% 2.30% 1.52% 0.30% 1.29% 0.25% 1.10% 0.66% 2.63% 25.07%
1,171 2,593 1,646 4,996 2,300 1,236 5,897 534 2,607 997 4,876 1,140 1,296 590 4,820 1,471 1 5,080 936 44,186
0.38% 0.85% 0.54% 1.64% 0.75% 0.40% 1.93% 0.17% 0.85% 0.33% 1.60% 0.37% 0.42% 0.19% 1.58% 0.48% 0.00% 1.66% 0.31% 14.46%
484 2,383 918
0.16% 0.78% 0.30%
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Industry 8.10% EXIM - 15.07.2015 8.19% IRFC 2019 - 27.04.2019 8.19% SIDBI - 28.09.2013 PC 28.03.12 8.20% IRFC - 27.04.2015 8.20% NHB - 30.08.2013 8.40% IRFC 2013 - 26.12.2013 8.45% EXIM Bank - 08.09.2015 9.15% EXIM Bank - 30.03.2021 9.15% EXIM Bank 08.03.2021 9.80% Nabard - 10.09.12 9.90% Tata Sons - 24.02.2016 BIRLA CASH PLUS - INSTITUTIONAL PREMIUM - GROWTH ICICI Prud Liquid Plan - SI Growth Kotak Floater Short Term- Growth Total Others State Development Loan On Shore Extraction of Crude Petroleum Mining of Iron Ores Manufacture of Cigarettes, Cigarette Tobacco Manufacture of Other Petroleum N.E.C. Manufacture of Other Perfumes and Toilet Preparations N.E.C. Manufacture of Synthetic or Artificial Filament Tow Manufacture of Allopathic Pharmaceutical Preparations Manufacture of Portl & Aluminous,Slag & Similar Hydraulic Cement Manufacture of Hot-Rolled and Cold-Rolled Products of Steel Manufacture of Copper From ore, & Other Copper Products & Alloys Manufacture of Electricity Distribution and Control Apparatus Manufacture of Other General Purpose Machinery N.E.C. Manufacture of Passenger Cars Mfg - Commercial Vehicles Vans,Lorries,Over-The-Road Tractors Etc Manufacture of Motor Vehicles N.E.C. Manufacture of Motorcycles, Scooters, Mopeds Etc. & Their Engine Electric Power Generation By Non-Coal Based Thermal Colln,Dist.-Electric Energy To Households, Industrial, Commercial Construction and Maintenance of Motorways, Streets, Roads Construction of Utility Projects N.E.C.
Guarantee Fund 1,400 2,603 5,706 1,059 8,662 10,174 1,218 924 583 1,479 1,668 207 228 320 40,016
% of Total Funds 0.46% 0.85% 1.87% 0.35% 2.84% 3.33% 0.40% 0.30% 0.19% 0.48% 0.55% 0.07% 0.07% 0.10% 13.10%
961 3,310 660 5,773 10,853 1,842 902 3,619 1,338 4,579 3,048 786 1,887 1,043 5,747 2,003 2,108 2,850 4,802 615 5,466
0.31% 1.08% 0.22% 1.89% 3.55% 0.60% 0.30% 1.18% 0.44% 1.50% 1.00% 0.26% 0.62% 0.34% 1.88% 0.66% 0.69% 0.93% 1.57% 0.20% 1.79%
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Industry Storage and Warehousing N.E.C. Actvty-Maintain,Operating Cellur,Other Tetecommunication Network Providing Software Support and Maintenance to the Clients Real Estate Activities with Own or Leased Property Net Current Assets Grand Total
Guarantee Fund 1,200 2,744 17,431 573 14,636 305,476
% of Total Funds 0.39% 0.90% 5.71% 0.19% 4.79% 100.00%
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Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Pension Guarantee Fund % of Total Funds
Government of India 12.30% GOI - 02.07.2016 364 Days T Bill - 15.07.2011 6.90% OIL SPL - 04.02.2026 7.27% GOI - 03.09.13 7.40% GOI 2012 - 03.05.12 7.95% Oil Bond - 18.01.25 8.07% GOI Jan 15, 2017 8.08% GOI - 02.08.2022 8.13% GOI - 21.09.2022 8.20% GOI - 15.02.22 8.24% GOI - 15.02.27 8.26% GOI - 02.08.27 91 Days T Bill - 13.05.2011 Total Monetary Intermediation of Commercial,Saving,Postal Savings Bank 10.10% SBH Bank FD - 12.03.2014 10.15% IOB FD - 09.02.2013 10.25% Axis Bank FD - 28.02.2013 10.25% IOB FD - 09.03.2013 10.30% Axis Bank FD - 14.03.2013 10.31% Union Bank FD - 30.03.2012 10.36% Union Bank FD - 28.03.2012 7.00% HDFC FD1- 16.07.2011 7.00% HDFC FD2- 16.07.2011 7.05% HDFC FD- 24.07.2011 8.85% SBI Upper Tier II - 04.10.2021 Call 04.10.2016 9.05% Canara Perpetual Bond Call- 03.08.2020 9.15% PNB - 16.04.2016 9.15% SBP Perpetual Bond CALL 18.01.2020 9.70% Canara Bank FD - 20.12.2012 9.95% SBI 2026 - 16.03.2026 Call 16.03.2021 5,000 2,226 6,500 1,059 2,430 2,406 3,624 288 133 309 21,161 5,797 7,267 6,554 6,000 13,498 0.63% 0.28% 0.82% 0.13% 0.30% 0.30% 0.45% 0.04% 0.02% 0.04% 2.66% 0.73% 0.91% 0.82% 0.75% 1.69% 5,870 2,949 3,369 2,629 8,140 20,583 672 19,413 13,928 2,238 3,172 24,652 615 108,230 0.74% 0.37% 0.42% 0.33% 1.02% 2.58% 0.08% 2.44% 1.75% 0.28% 0.40% 3.09% 0.08% 13.58%
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Industry Axis Bank Ltd Bank of India CD - 05.03.2012 Bank of India CD -19.12.2011 Corporation Bank CD - 07.09.2011 Corporation Bank CD - 20.8.2011 HDFC Bank Ltd ICICI Bank Ltd IDBI Bank CD - 10.05.11 Indian Overseas Bank CD - 05.03.2012 Punjab National Bank State Bank of India State Bank of Mysore CD - 02.06.2011 State Bank of Travancore CD - 07.02.2012 State Bank of Travancore CD - 22.02.2012 Vijaya Bank CD - 09.09.2011 Total Other Credit Granting 10.25% HDFC 2012 - 29.05.12. 10.90% REC - 30.09.13 11.15% PFC - 15.09.2011 11.15% REC - 24.10.2018 11.40% PFC - 28.11.13 11.50% REC - 26.11.13 7.25% LIC Housing Finance - 10.06.2012 7.35% HDFC- 15.02.2012 8.26% LIC Housing Finance - 08.07.2015 8.35% REC - 04.09.2014 8.48% LIC Housing Finance - 27.09.2013 8.50% PFC - 15.12.2014 8.80% REC - 25.10.2020 8.80% REC - 29.11.2020 8.97% PFC - 15.01.2018 9.45% HDFC - 11.01.2013 9.45% LIC Hsg Fin - 01.01.12 9.45% REC - 04.04.13 9.48% LIC Housing Finance - 11.01.2013 9.75% HDFC - 28.01.2014
Pension Guarantee Fund 5,653 2,681 11,210 7,822 3,118 12,794 19,513 10,430 11,720 2,505 10,940 4,124 7,910 5,050 17,456 217,178
% of Total Funds 0.71% 0.34% 1.41% 0.98% 0.39% 1.61% 2.45% 1.31% 1.47% 0.31% 1.37% 0.52% 0.99% 0.63% 2.19% 27.25%
1,242 6,243 1,197 2,097 4,067 2,288 4,819 1,477 18,381 1,358 6,275 2,924 2,305 4,202 2,597 2,864 2,893 6,760 5,980 1,511
0.16% 0.78% 0.15% 0.26% 0.51% 0.29% 0.60% 0.19% 2.31% 0.17% 0.79% 0.37% 0.29% 0.53% 0.33% 0.36% 0.36% 0.85% 0.75% 0.19%
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Industry 9.85% REC - 28.09.17 HDFC Ltd CP - 15.07.11 HDFC Ltd ZCB - 30.08.2013 Housing Development Finance Corp. Ltd Infrastructure Development Finance Company Ltd Total Others State Development Loan On Shore Extraction of Crude Petroleum Mining of Iron Ores Manufacture of Cigarettes, Cigarette Tobacco Manufacture of Other Petroleum N.E.C. Manufacture of Other Perfumes and Toilet Preparations N.E.C. Manufacture of Synthetic or Artificial Filament Tow Manufacture of Allopathic Pharmaceutical Preparations Manufacture of Portl & Aluminous,Slag & Similar Hydraulic Cement Manufacture of Hot-Rolled and Cold-Rolled Products of Steel Manufacture of Copper From ore, & Other Copper Products & Alloys Manufacture of Electricity Distribution and Control Apparatus Manufacture of Other General Purpose Machinery N.E.C. Manufacture of Passenger Cars Mfg - Commercial Vehicles Vans,Lorries,Over-The-Road Tractors Etc Manufacture of Motor Vehicles N.E.C. Manufacture of Motorcycles, Scooters, Mopeds Etc. & Their Engine Electric Power Generation By Non-Coal Based Thermal Colln,Dist.-Electric Energy To Households, Industrial, Commercial Construction and Maintenance of Motorways, Streets, Roads Construction of Utility Projects N.E.C. Storage and Warehousing N.E.C. Actvty-Maintain,Operating Cellur,Other Tetecommunication Network Providing Software Support and Maintenance to the Clients Activities Auxiliary to Financial Service Activities N.E.C. Real Estate Activities with Own or Leased Property Net Current Assets Grand Total
Pension Guarantee Fund 14,520 4,203 2 13,915 2,584 116,704
% of Total Funds 1.82% 0.53% 0.00% 1.75% 0.32% 14.64%
4,516 9,141 1,823 15,946 29,996 5,084 2,491 9,998 3,694 13,756 8,421 2,172 5,219 2,878 15,037 5,533 5,821 7,865 14,890 1,701 15,093 3,318 7,570 47,963 79,679 1,583 33,720 797,021
0.57% 1.15% 0.23% 2.00% 3.76% 0.64% 0.31% 1.25% 0.46% 1.73% 1.06% 0.27% 0.65% 0.36% 1.89% 0.69% 0.73% 0.99% 1.87% 0.21% 1.89% 0.42% 0.95% 6.02% 10.00% 0.20% 4.23% 100.00%
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Reports
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Peak Guarantee Fund I % of Total Funds
Government of India 12.30% GOI - 02.07.2016 364 Days T Bill - 15.07.2011 6.35% OMC GOI BOND - 23.12.2024 6.90% OIL SPL - 04.02.2026 7.40% GOI 2012 - 03.05.12 7.59% GOI 2016 7.95% Oil Bond - 18.01.25 8.08% GOI - 02.08.2022 8.13% GOI - 21.09.2022 8.20% GOI - 15.02.22 8.24% GOI - 15.02.27 8.26% GOI - 02.08.27 8.30% GOI - 02.07.2040 Total Monetary Intermediation of Commercial,Saving,Postal Savings Bank 10.10% SBH Bank FD - 12.03.2014 10.15% IOB FD - 09.02.2013 10.25% Axis Bank FD - 28.02.2013 10.25% IOB FD - 09.03.2013 10.30% Axis Bank FD - 14.03.2013 10.31% Union Bank FD - 30.03.2012 10.36% Union Bank FD - 28.03.2012 7.00% HDFC FD1- 16.07.2011 7.00% HDFC FD2- 16.07.2011 7.05% HDFC FD- 24.07.2011 8.85% SBI Upper Tier II - 04.10.2021 Call 04.10.2016 9.05% Canara Perpetual Bond Call- 03.08.2020 9.15% PNB - 16.04.2016 9.15% SBP Perpetual Bond CALL 18.01.2020 1,300 577 1,700 274 620 628 933 105 48 110 6,256 1,500 435 887 0.59% 0.26% 0.77% 0.12% 0.28% 0.28% 0.42% 0.05% 0.02% 0.05% 2.83% 0.68% 0.20% 0.40% 2,348 833 151 583 1,776 4,252 2,459 5,072 3,393 426 963 9,161 139 31,557 1.06% 0.38% 0.07% 0.26% 0.80% 1.92% 1.11% 2.29% 1.53% 0.19% 0.44% 4.14% 0.06% 14.26%
Its grt 2b 25
247
Industry 9.70% Canara Bank FD - 20.12.2012 9.95% SBI 2026 - 16.03.2026 Call 16.03.2021 Axis Bank Ltd Bank of Baroda CD - 03.06.2011 Bank of India CD - 05.03.2012 Corporation Bank CD - 20.8.2011 HDFC Bank Ltd ICICI Bank Ltd Indian Overseas Bank CD - 05.03.2012 Punjab National Bank State Bank of India State Bank of Mysore CD - 02.06.2011 State Bank of Travancore CD - 07.02.2012 State Bank of Travancore CD - 22.02.2012 Vijaya Bank CD - 09.09.2011 Total Other Credit Granting 10.25% HDFC 2012 - 29.05.12. 10.90% REC - 30.09.13 11.15% REC - 24.10.2018 11.40% PFC - 28.11.13 7.20% REC - 17.03.2013 7.35% HDFC- 15.02.2012 8.26% LIC Housing Finance - 08.07.2015 8.35% REC - 04.09.2014 8.80% REC - 25.10.2020 8.88% LIC Housing Finance - 13.10.2020 8.90% PFC- 15.03.2015 8.97% PFC - 15.01.2018 9.48% LIC Housing Finance - 11.01.2013 9.75% HDFC - 28.01.2014 9.85% REC - 28.09.17 HDFC Ltd CP - 15.07.11 HDFC Ltd ZCB - 30.08.2013 Housing Development Finance Corp. Ltd Infrastructure Development Finance Company Ltd Total
Peak Guarantee Fund I 1,800 3,478 1,445 153 696 814 3,186 4,845 3,012 628 2,743 1,102 4,736 1,313 4,837 50,164
% of Total Funds 0.81% 1.57% 0.65% 0.07% 0.31% 0.37% 1.44% 2.19% 1.36% 0.28% 1.24% 0.50% 2.14% 0.59% 2.19% 22.67%
1,007 1,633 235 1,082 1,393 725 4,043 350 706 3,705 2,469 763 897 388 5,887 378 1 3,512 649 29,822
0.45% 0.74% 0.11% 0.49% 0.63% 0.33% 1.83% 0.16% 0.32% 1.67% 1.12% 0.34% 0.41% 0.18% 2.66% 0.17% 0.00% 1.59% 0.29% 13.47%
248
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Reports
Industry Activities Auxiliary to Financial Service Activities N.E.C. 7.19% NABARD - 29.04.2013 7.80% NABARD - 16.08.2013 P/C 16.08.2012 8.10% EXIM - 15.07.2015 8.19% IRFC 2019 - 27.04.2019 8.19% SIDBI - 28.09.2013 PC 28.03.12 8.20% IRFC - 27.04.2015 8.20% NHB - 30.08.2013 8.40% IRFC 2013 - 26.12.2013 8.45% EXIM Bank - 08.09.2015 8.50% Exim Bank Bonds 2011 9.15% EXIM Bank - 30.03.2021 9.15% EXIM Bank 08.03.2021 9.80% Nabard - 10.09.12 9.90% Tata Sons - 24.02.2016 BIRLA CASH PLUS - INSTITUTIONAL PREMIUM - GROWTH ICICI Prud Liquid Plan - SI Growth Kotak Floater Short Term- Growth Total Others State Development Loan On Shore Extraction of Crude Petroleum Mining of Iron Ores Manufacture of Cigarettes, Cigarette Tobacco Manufacture of Other Petroleum N.E.C. Manufacture of Other Perfumes and Toilet Preparations N.E.C. Manufacture of Synthetic or Artificial Filament Tow Manufacture of Allopathic Pharmaceutical Preparations Manufacture of Portl & Aluminous,Slag & Similar Hydraulic Cement Manufacture of Hot-Rolled and Cold-Rolled Products of Steel Manufacture of Copper From ore, & Other Copper Products & Alloys Manufacture of Electricity Distribution and Control Apparatus Manufacture of Other General Purpose Machinery N.E.C. Manufacture of Passenger Cars Mfg - Commercial Vehicles Vans,Lorries,Over-The-Road Tractors Etc Manufacture of Motor Vehicles N.E.C. Manufacture of Motorcycles, Scooters, Mopeds Etc. & Their Engine
Peak Guarantee Fund I
% of Total Funds
315 2,383 360 1,475 4,269 689 5,121 6,405 907 196 628 384 962 1,091 1,097 1,210 1,694 29,185
0.14% 1.08% 0.16% 0.67% 1.93% 0.31% 2.31% 2.89% 0.41% 0.09% 0.28% 0.17% 0.43% 0.49% 0.50% 0.55% 0.77% 13.19%
638 2,295 457 4,005 7,536 1,274 622 2,470 927 3,178 2,117 545 1,312 721 3,866 1,386 1,459
0.29% 1.04% 0.21% 1.81% 3.41% 0.58% 0.28% 1.12% 0.42% 1.44% 0.96% 0.25% 0.59% 0.33% 1.75% 0.63% 0.66%
Its grt 2b 25
249
Industry Electric Power Generation By Non-Coal Based Thermal Colln,Dist.-Electric Energy To Households, Industrial, Commercial Construction and Maintenance of Motorways, Streets, Roads Construction of Utility Projects N.E.C. Storage and Warehousing N.E.C. Actvty-Maintain,Operating Cellur,Other Tetecommunication Network Providing Software Support and Maintenance to the Clients Real Estate Activities with Own or Leased Property Net Current Assets Grand Total
Peak Guarantee Fund I 3,359 5,730 417 3,780 825 1,894 11,970 397 17,404 221,311
% of Total Funds 1.52% 2.59% 0.19% 1.71% 0.37% 0.86% 5.41% 0.18% 7.86% 100.00%
250
Its grt 2b 25
Reports
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Industry wise disclosure of investments with exposure of 10% and above segregated at scrip level Industry Discontinued Policy Fund % of Total Funds
Others Net Current Assets Grand Total 9 9 100.00% 100.00%
Its grt 2b 25
251
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures NAV Highest Lowest & closing at the end of the year Sr . No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Fund Name Kotak Guaranteed Money Market Fund Kotak Group Money Market Fund Money Market Fund Pension Money Market Fund II Kotak Dynamic Gilt Fund Kotak Guaranteed Gilt Fund Kotak Pension Gilt Fund Kotak Group Gilt Fund Gilt Fund Kotak Dynamic Bond Fund Kotak Guaranteed Bond Fund Kotak Pension Bond Fund Kotak Group Bond Fund Bond Fund Pension Bond Fund II Kotak Dynamic Floating Rate Fund Kotak Guaranteed Floating Rate Fund Kotak Pension Floating Rate Fund Kotak Group Floating Rate Fund Floating Rate Fund Kotak Group 36M FMP 02/01/2011 Kotak Group 36M FMP 12/09/2011 Kotak Group 60M FMP 27/11/2013 Kotak Group 50M FMP 27/02/2013 Kotak Group 59M FMP 08/12/2013 Kotak Dynamic Balanced Fund Kotak Guaranteed Balanced Fund Kotak Pension Balanced Fund Kotak Group Balanced Fund Balanced Fund Highest NAV 18.27 24.72 10.57 10.62 16.12 16.04 16.42 16.52 10.68 17.16 17.11 17.22 17.73 10.76 10.82 14.92 14.95 15.00 15.30 10.61 12.65 12.74 12.78 11.91 11.99 33.40 29.09 29.57 33.31 11.84 Lowest NAV 17.29 17.12 10.07 10.09 15.06 15.03 15.37 15.41 10.05 16.06 16.00 16.12 16.37 10.13 10.10 14.10 14.14 14.16 14.39 10.05 12.22 12.11 12.37 11.46 11.52 28.28 26.48 26.94 28.20 10.04 Closing NAV 18.27 24.72 10.57 10.62 16.10 16.02 16.40 16.51 10.67 17.16 17.11 17.22 17.73 10.76 10.82 14.92 14.95 15.00 15.30 10.61 0.00 12.74 12.78 11.91 11.99 31.80 28.52 28.98 31.76 11.28
252
Its grt 2b 25
Reports
Sr . No 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57
Fund Name Pension Balanced Fund II Kotak Dynamic Growth Fund Kotak Guaranteed Growth Fund Kotak Pension Growth Fund Kotak Group Growth Fund Kotak Aggressive Growth Fund Kotak Group Agressive Growth Fund Kotak Advantage Multiplier Fund Kotak Advantage Plus Fund Kotak Advantage Fund Kotak Advantage Multiplier Fund II Kotak Advantage Plus Fund II Frontline Equity Fund Pension Frontline Equity Fund Kotak Opportunities Fund Kotak Pension Opportunities Fund Classic Opportunities Fund Pension Classic Opportunities Fund Dynamic Floor Fund Kotak Group Dynamic Floor Fund Kotak Pension Floor Fund Dynamic Floor Fund II Pension Floor Fund II Guarantee Fund Pension Guarantee Fund Peak Guarantee Fund I Discontinued Policy Fund Note: The above NAVs are without Appropriation/Expropriation Charges.
Highest NAV 11.57 39.50 33.86 14.42 0.00 40.21 0.00 14.07 13.99 0.00 14.06 13.97 12.39 13.15 24.08 13.77 13.09 13.41 17.79 17.80 11.69 11.29 11.16 11.72 11.25 11.39 10.00
Lowest NAV 9.81 31.82 30.05 12.81 0.00 30.76 0.00 12.46 12.38 0.00 12.46 12.43 9.48 10.07 18.09 10.33 9.84 10.09 15.51 15.54 10.24 9.72 9.65 10.19 9.70 10.00 10.00
Closing NAV 11.00 36.79 32.82 13.99 0.00 36.48 0.00 13.58 13.69 0.00 13.59 13.53 11.31 11.96 21.44 12.25 11.69 11.94 17.16 17.20 11.10 10.87 10.77 11.33 10.84 10.99 10.00
Its grt 2b 25
253
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Annualised Expense ratio to average daily assets of the Fund Sr. No. Fund Name Annualised Expense Average Daily Assets of the Funds 2,199 10,730 13,287 26,778 139,457 363,403 212,095 88,505 4,136 315,164 347,590 411,040 1,620,371 115,180 27,737 87,325 225,210 91,234 116,905 1,081 31,508 10,333 77,700 7,129 29,362 247,616 1,772,723 6,261,062 1,448,469 5,104 Annualised Expense Ratio
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
15 94 197 399 1,538 4,008 2,339 781 61 4,171 4,601 5,440 14,297 1,711 413 1,156 2,981 1,208 1,032 16 106 80 514 47 162 3,551 25,419 89,780 15,976 76
0.66% 0.88% 1.49% 1.49% 1.10% 1.10% 1.10% 0.88% 1.48% 1.32% 1.32% 1.32% 0.88% 1.49% 1.49% 1.32% 1.32% 1.32% 0.88% 1.49% 0.34% 0.77% 0.66% 0.66% 0.55% 1.43% 1.43% 1.43% 1.10% 1.49%
254
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Reports
Sr. No.
Fund Name
Annualised Expense 224 14,504 392,213 5,129 69,394 2,221 19,659 1,387 14,212 3,782 964 119,712 1,579 18,194 5,720 109,353 3,230 12,854 29,059 8,788 3,398 7,960 3,456 40 - Last unit redeemed on 10/03/2010 57 - First unit Created on 23/03/2011
Average Daily Assets of the Funds 15,044 876,624 23,704,846 310,032 3,932,042 67,124 593,646 41,921 429,460 254,199 64,798 5,426,937 71,575 1,223,589 384,309 5,665,836 234,296 665,987 1,952,578 590,327 228,289 534,741 180,700 5
Annualised Expense Ratio 1.49% 1.65% 1.65% 1.65% 1.76% 3.31% 3.31% 3.31% 3.31% 1.49% 1.49% 2.21% 2.21% 1.49% 1.49% 1.93% 1.38% 1.93% 1.49% 1.49% 1.49% 1.49% 1.91%
31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57
Pension Balanced Fund II Kotak Dynamic Growth Fund Kotak Guaranteed Growth Fund Kotak Pension Growth Fund Kotak Group Growth Fund Kotak Aggressive Growth Fund Kotak Group Agressive Growth Fund Kotak Advantage Multiplier Fund Kotak Advantage Plus Fund Kotak Advantage Fund Kotak Advantage Multiplier Fund II Kotak Advantage Plus Fund II Frontline Equity Fund Pension Frontline Equity Fund Kotak Opportunities Fund Kotak Pension Opportunities Fund Classic Opportunities Fund Pension Classic Opportunities Fund Dynamic Floor Fund Kotak Group Dynamic Floor Fund Kotak Pension Floor Fund Dynamic Floor Fund II Pension Floor Fund II Guarantee Fund Pension Guarantee Fund Peak Guarantee Fund I Discontinued Policy Fund 21 - Last unit redeemed on 09/11/2010 35 - Last unit redeemed on 08/03/2010 37 - Last unit redeemed on 16/02/2010
Its grt 2b 25
255
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Annualised Income ratio to Average daily assets of the Fund Sr. No. Fund Name Annualised Income Average Daily Assets of the Funds 2,199 10,730 13,287 26,778 139,457 363,403 212,095 88,505 4,136 315,164 347,590 411,040 1,620,371 115,180 27,737 87,325 225,210 91,234 116,905 1,081 31,508 10,333 77,700 7,129 29,362 247,616 1,772,723 6,261,062 1,448,469 5,104 Annualised Income Ratio
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
136 574 905 1,820 10,737 26,966 16,011 6,831 316 24,466 27,601 32,301 142,352 8,745 2,087 6,024 15,362 6,433 7,997 73 1,194 605 3,072 321 1,326 24,900 145,506 497,268 148,167 322
6.19% 5.35% 6.81% 6.80% 7.70% 7.42% 7.55% 7.72% 7.63% 7.76% 7.94% 7.86% 8.79% 7.59% 7.53% 6.90% 6.82% 7.05% 6.84% 6.78% 3.79% 5.85% 3.95% 4.50% 4.52% 10.06% 8.21% 7.94% 10.23% 6.30%
256
Its grt 2b 25
Reports
Sr. No.
Fund Name
Annualised Income 1,005 101,708 2,117,524 25,932 480,013 5,028 51,211 3,410 32,494 33,394 6,173 609,020 6,846 161,564 27,045 450,241 17,736 34,846 173,665 55,028 18,922 50,101 14,578 40 - Last unit redeemed on 10/03/2010 57 - First unit Created on 23/03/2011
Average Daily Assets of the Funds 15,044 876,624 23,704,846 310,032 3,932,042 67,124 593,646 41,921 429,460 254,199 64,798 5,426,937 71,575 1,223,589 384,309 5,665,836 234,296 665,987 1,952,578 590,327 228,289 534,741 180,700 5
Annualised Income Ratio 6.68% 11.60% 8.93% 8.36% 12.21% 7.49% 8.63% 8.13% 7.57% 13.14% 9.53% 11.22% 9.57% 13.20% 7.04% 7.95% 7.57% 5.23% 8.89% 9.32% 8.29% 9.37% 8.07% 0.00%
31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57
Pension Balanced Fund II Kotak Dynamic Growth Fund Kotak Guaranteed Growth Fund Kotak Pension Growth Fund Kotak Group Growth Fund Kotak Aggressive Growth Fund Kotak Group Agressive Growth Fund Kotak Advantage Multiplier Fund Kotak Advantage Plus Fund Kotak Advantage Fund Kotak Advantage Multiplier Fund II Kotak Advantage Plus Fund II Frontline Equity Fund Pension Frontline Equity Fund Kotak Opportunities Fund Kotak Pension Opportunities Fund Classic Opportunities Fund Pension Classic Opportunities Fund Dynamic Floor Fund Kotak Group Dynamic Floor Fund Kotak Pension Floor Fund Dynamic Floor Fund II Pension Floor Fund II Guarantee Fund Pension Guarantee Fund Peak Guarantee Fund I Discontinued Policy Fund 21 - Last unit redeemed on 09/11/2010 35 - Last unit redeemed on 08/03/2010 37 - Last unit redeemed on 16/02/2010
Its grt 2b 25
257
Kotak Mahindra Old Mutual Life Insurance Limited Registration No: 107; Date of Registration: January 10, 2001 Schedules forming part of the Financial Statements for the year ended 31 March 2011 (Currency: In thousands of Indian Rupees unless otherwise stated) 25E Unit Linked Disclosures - Other Disclosures Fundwise Disclosure of Appreciation /(Depreciation) in value of Investment Segregated Classwise Investment Type Sr No Fund Name Corporate Bonds Equities Government Guaranteed Bonds 89 348 147 53 9 79 83 87 159 (36) 5 3 5 3 4 0 17 175 325 61 1 Government Securities Grand Total
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
(2,014) (1,934) (2,141) (9,364) (649) (174) 551 1,816 0 (457) (628) (11,764) (44,094) (4,769) (18)
23,628 96,366 306,127 116,968 225
102 (50) 177 33 11 149 125 149 896 77 13 (38) (94) (29) (30) (1) (20) (779) (2,251) 4 (3)
191 298 323 86 20 (1,785) (1,726) (1,905) (8,310) (607) (156) (35) (89) (27) (26) (0) 551 1,816 0 (457) 22,996 83,997 260,108 112,263 206
258
Its grt 2b 25
Reports
Investment Type Sr No Fund Name Corporate Bonds (57) (1,972) (131,646) (2,077) (231) (181) (1,986) (39,153) (1,223) (2,724) (9,908) (3,002) (1,438) (3,075) (1,061) (275,374) Equities Government Guaranteed Bonds 1 33 1,094 5 1 (1) 829 27 84 253 68 16 64 11 4,101 Government Securities (4) (273) (1,654) (518) (229) (223) (44) 321 61 66 (276) (101) (54) (127) (75) (4,690) Grand Total
31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57
Pension Balanced Fund II Kotak Dynamic Growth Fund Kotak Guaranteed Growth Fund Kotak Pension Growth Fund Kotak Group Growth Fund Kotak Aggressive Growth Fund Kotak Group Agressive Growth Fund Kotak Advantage Multiplier Fund Kotak Advantage Plus Fund Kotak Advantage Fund Kotak Advantage Multiplier Fund II Kotak Advantage Plus Fund II Frontline Equity Fund Pension Frontline Equity Fund Kotak Opportunities Fund Kotak Pension Opportunities Fund Classic Opportunities Fund Pension Classic Opportunities Fund Dynamic Floor Fund Kotak Group Dynamic Floor Fund Kotak Pension Floor Fund Dynamic Floor Fund II Pension Floor Fund II Guarantee Fund Pension Guarantee Fund Peak Guarantee Fund I Discontinued Policy Fund Grand Total
480 109,925 1,555,363 17,592 649,393 778 525 6,018 26,212 4,679 770,230 7,391 158,332 28,243 75,593 2,899 8,264 39,177 8,393 2,692 8,941 2,244 4,026,678
420 107,714 1,423,158 15,002 649,393 319 119 3,988 26,212 4,679 770,230 7,391 158,332 28,243 37,589 1,764 5,690 29,246 5,358 1,216 5,803 1,119 3,750,715
Its grt 2b 25
259
(Amounts in thousands of Indian `) 26. Employee benefits a) Gratuity In accordance with Payment of Gratuity Act, 1972 the Company provides for gratuity, a defined benefit retirement plan covering all employees. The plan provides a lump sum payment to vested employees at retirement or termination of employment based on the respective employees salary and the years of employment with the Company subject to maximum of ` 10 lakhs per employee (limit enhanced w.e.f 24th May 2010). The additional liability due to the enhancement of the limit to ` 10 lakhs per employee has been fully charged to Revenue/Profit & Loss account. The gratuity benefit is provided through unfunded plan and annual contributions are charged to profit and loss account. Under the scheme, the settlement obligation remains with the Company. Reconciliation of opening and closing balance of the present value of the defined benefit obligation for gratuity benefits is given below. As of 31st March, 2011 Change in Defined benefit obligations as at Present value of Defined benefit obligations, 1st April Service cost Interest cost Liabilities Assumed on Acquisition/ (Settled on Divestiture) Benefits paid Actuarial (gain)/loss on obligations Past Service Cost Present value of Defined benefit obligations as at 31st March Reconciliation of present value of the obligation and the fair value of the plan assets Opening Fair Value of Plan assets as at 1st April Contributions by the employer for the year Benefits paid Closing Fair Value of Plan assets Net asset/ (liability) as at 31 March Cost recognised for the period Current service cost Interest cost Expected return on plan assets Actuarial (gain)/loss Past service cost Net gratuity cost Actuarial assumptions used Discount rate Salary escalation rate 8.26% 15% p.a. for first two year, 10.00% p.a for next two years & 6.00% p.a. thereafter. 8.01% 15% p.a. for first two year, 10.00% p.a for next two years & 6.00% p.a. thereafter. 28,581 7,898 Nil (15,792) 14,681 35,368 23,765 5,410 Nil (10,271) 18,904
st
As of 31st March, 2010
72,005 28,581 7,898 (5,337) (7,614) (15,792) 14,681 94,422
52,785 23,765 5,410 2,388 (2,072) (10,271) 72,005
Nil 7,614 (7,614) Nil Nil
Nil 2,072 (2,072) Nil Nil
The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.
260
Its grt 2b 25
Reports
b)
Superannuation The eligible permanent employees of the Company, who have opted for the scheme, are entitled to receive retirement benefits under the superannuation scheme operated by the Company. The contribution for the year amounts to ` 3,043 (2010- ` 3,037)
c)
Provident fund In accordance with Indian regulations, employees of the Company are entitled to receive benefits under the provident fund, a defined contribution plan, in which, both the employee and the Company contribute monthly at a determined rate. These contributions are made to a recognised provident and administered by a Board of Trustees. The employee contributes 12% of his or her basic salary and the Company contributes an equal amount. The investments of the funds are made according to rules prescribed by the Government of India. The companys contribution for the year amounts to ` 111,060 (2010- ` 106,741)
d)
Accumulated Compensated Absences The Company accrues the liability for compensated absences based on the actuarial valuation as at the balance sheet conducted by an independent actuary.
27
Details of penal actions taken by various Government Authorities (IRDA Cir No.005/IRDA/F&A/CIR/MAY-09 dtd May 07, 2009) Authority Non-compliance/ Penalty Awarded Violation 1. 2. 3. 4. 5. Insurance Regulatory and Development Authority Service Tax Authorities Income Tax Authorities Any other Tax Authorities Enforcement Directorate/Adjudicating Authority/ Tribunal or any Authority under FEMA Registrar of Companies/ NCLT/CLB/ Department of Corporate Affairs or any Authority under Companies Act, 1956 Penalty awarded by any Court/ Tribunal for any matter including claim settlement but excluding compensation Securities and Exchange Board of India * Competition Commission of India Nil Nil Nil Nil Nil Nil Nil Nil Amount Penalty Paid Penalty Waived/ Reduced Nil Nil Nil Nil Nil Nil Nil Nil
Nil
Nil
Nil
Nil
6.
Nil
Nil
Nil
Nil
7.
Nil Nil Nil
Nil Nil Nil
Nil Nil Nil
Nil Nil Nil
8. 9.
10. Any other Central/State/Local Government / Statutory Authority
Nil
Nil
Nil
Nil
Its grt 2b 25
261
(Amounts in thousands of Indian `) 28. Statement of Age-wise Analysis of the Unclaimed Amount of the Policyholders (IRDA circular no. -IRDA/F&I/CIR/CMP/174/11/ 2010, dated 04-11-2010 ) Particulars Total Amount 2010-11 Claims settled but not paid to the policyholders/Insured due to any reasons except under litigation from the insured/policyholders Sum due to the insured/ policyholders on maturity or otherwise Any excess collection of the premium/tax or any other charges which is refundable to the policyholders either as terms of conditions of the policy or as may be directed by the Authority but not refunded so far Cheques issued but not encashed by the policyholder/insured Total 29. 1-6 months 7-12 months Age-wise Analysis 13-18 months 19-24 months 25-30 months 31-36 Beyond months 36 months
169
17
32
72
48
2,041
965
350
427
33
234
32
1,527
1,239
146
126
91,196 94,933
51,855 54,059
12,296 12,809
6,723 7,189
3,508 3,739
4,103 4,389
2,899 2,901
9,812 9,847
Disclosures relating to discontinued policies. ( Notification F.No. IRDA/Reg/2/52/2010, dated 01-07-2010) 2010-11 1. 2. 3. 4. Amount refunded to the policyholders Amount transferred to the Funds for discontinued policies Number of policies discontinued during the financial year % of discontinued to total policies during the year : Product wise Kotak Ace Investment Plan (K42A) 5. Policies revived during the year No. of policies % of policies revived 6. Charges imposed on account of discontinued policies 0.06% 3 32 9.4% 1 Nil Nil Nil Nil Nil Nil 9 3 2009-10 Nil Nil Nil
262
Its grt 2b 25
Reports
30.
Prior year comparatives
Prior year amounts have not been reclassified except for the following in order to improve the disclosure and presentation of the accounts Account Head Balance reported on Reclassification Relclassified Balance 31.03.10 as on 31.03.10 Sch No Amount Amount 13 13 13 11 270,334 158,435 650,067 471,482 (18,120) (31,842) (7,305) 43,430 252,214 126,593 642,762 514,912 Remarks
Current liabilities Claim Outstanding Sundry Creditors Unallocated premium (Proposals/Deposit) Cash & Bank Balance (b) Current accounts Unclaimed Amount of the Policyholders Benefits Paid (Net) 1. Insurance claims (d) others benefits Claim Investigation fees Riders 2. (a) (d) Amount ceded in reinsurance Claims by Death Other Benefits Riders Net Impact Current liabilities Current accounts Benefits Paid (Net) 31.
To disclose age-wise Analysis of the Unclaimed Amount of the Policyholders as per IRDA circular no. -IRDA/F&I/CIR/CMP/ 174/11/2010,dated 04-112010)
13 4
100,698
100,698 To show separately the claim investigation fees from other benefits for better disclosure.
22,319 (360,510) (855)
(9,819) 3,787 6,032 855 (855)
12,500 3,787 6,032 (359,655)
13 11 4
2,599,778 869,540 4,966,829
43,430 43,430
2,643,208 912,970 4,966,829
Debit balance in the Profit & Loss Account (Shareholders Account) The debit balance in Profit and Loss Account (Shareholders Account) as on 31.03.2011 of ` 1,526,430 (2010: ` 2,551,175) comprises of Unabsorbed Depreciation of ` 573,089 (2010: ` 573,089) and Accumulated losses of ` 953,341 (2010: ` 1,978,086).
263
Its grt 2b 25
KOTAK MAHINDRA INVESTMENTS LIMITED
Its grt 2b 25
BOARD OF DIRECTORS : MR. DIPAK GUPTA, MR. C. JAYARAM, MR. JAIMIN BHATT, MR. JAIDEEP HANSRAJ, MR. NARAYAN S. A.
Directors Report
To the Members of KOTAK MAHINDRA INVESTMENTS LIMITED The Directors present their Twenty Third Annual Report together with the audited accounts of the Company for the year ended 31st March 2011. FINANCIAL HIGHLIGHTS For the year ended 31st March 2011 (` in lakhs) ` Gross Income Profit before tax Provision for tax Profit after tax Net Profit after tax Carried to Balance Sheet DIVIDEND With a view to conserve your Companys resources, the Directors do not recommend any Dividend (Previous Year: Nil) OPERATIONS Your Company is engaged in holding investments, providing finance against securities. The Current year witnessed a steady and improved capital market environment. Strong credit and collateral value monitoring mechanism put in place by your Company ensured robust growth in business. Your Companys strategy has been of continuous product innovation coupled with tight control on credit quality and effective risk management. Your Company is well positioned to explore all opportunities that may be offered in the current economic environment. CAPITAL ADEQUACY The Capital to Risk Assets Ratio (CRAR) of your Company as on 31st March 2011 was at 25.62%. CREDIT RATING The Companys short-term borrowing program from ICRA Limited continued to enjoy the highest rating of A1+. The long-term borrowings have been upgraded by ICRA Limited to LAA. A1+ indicates highest-credit-quality rating and LAA indicates high-credit-quality rating with stable outlook assigned by ICRA. DIRECTORS Mr. Jaimin Bhatt and Mr. Jaideep Hansraj, Directors, retire by rotation at the Twenty Third Annual General Meeting and being eligible, offer themselves for re-appointment. MANAGER At the Extra Ordinary General Meeting of the shareholders held on 16th August 2010, Mr. Sachin Samant had been re-appointed as the Manager of the Company for a period of two years i.e. up to 30th June 2012. COMMITTEES AUDIT COMMITTEE In view of the resignation of Ms. Shanti Ekambaram as a Director of the Company with effect from 9th April 2010, the Audit Committee was re-constituted at the Board Meeting held on 9th April 2010 and presently consists of Mr. Dipak Gupta, Mr. Jaimin Bhatt and Mr. Narayan S.A., with any two members forming the quorum. During the year, four meetings of the Committee were held on 28th April 2010, 22nd June 2010, 22nd October 2010 and 3rd February 2011. Mr. Dipak Gupta and Mr. Jaimin Bhatt attended all the four meetings. Mr. Narayan S.A. attended one meeting. Subsequently one meeting of the committee was held on 26th April 2011 which was attended by all members. 12,528.39 3,320.47 920.60 2,399.87 For the year ended 31st March 2010 (` in lakhs) 9,398.69 4,842.33 1,376.09 3,466.24
19,166.57
17,246.70
Its grt 2b 25
NOMINATION COMMITTEE In view of the resignation of Ms. Shanti Ekambaram as a Director of the Company with effect from 9th April 2010, the Nomination Committee was re-constituted at the Board Meeting held on 9th April 2010 and presently consists of Mr. Dipak Gupta, Mr. C. Jayaram and Mr. Narayan S.A. During the year, two meetings of the Committee were held on 9th April 2010 and 23rd April 2010. Mr. Dipak Gupta and Mr. C. Jayaram attended both the meetings. Ms. Shanti Ekambaram and Mr. Narayan S.A. attended one meeting each. Subsequently, one meeting of the committee was held on 25th April 2011 which was attended by Mr. Dipak Gupta and Mr. Narayan S.A. ALCO COMMITTEE (ALCO) ALCO was re-constituted at the Board Meeting held on 4th November 2010 and consists of (1) Mr. Narayan S.A., (2) Mr. Jaimin Bhatt, (3) Mr. Sachin Samant, and (4) Mr. N. R. Subramanian with any one member each from the first two and the last two members forming the quorum. Members of ALCO meet regularly to discuss various issues for the effective management of the assets and liabilities of the Company. RISK MANAGEMENT COMMITTEE OF THE BOARD OF DIRECTORS (RMC (BOARD)) Pursuant to the directive given by the RBI at its financial conglomerate meeting held on 22nd April 2010, the Board of Directors of the Company at their meeting held on 4th November 2010, constituted a Risk Management Committee of the Board of Directors (RMC (Board)). The Committee comprises of Mr. Dipak Gupta, Mr. Jaimin Bhatt and Mr. Narayan S.A., with any two members forming the quorum. RMC Board is a supervisory committee and would review the adequacy of the risk management process and upgradation thereof, internal control system, ensure compliance with the statutory / regulatory framework etc. AUDITORS The Companys Auditors, M/s. V.C. Shah & Co., Chartered Accountants, Mumbai, retire at the Annual General Meeting and are eligible for re-appointment. You are requested to re-appoint them and fix their remuneration. DEBENTURE TRUSTEES IDBI Trusteeship Services Limited and Axis Trustee Services Limited act as the Debenture Trustees for the redeemable non-convertible debentures issued by the Company. COMPLIANCE CERTIFICATE As required by the Companies (Appointment and Qualifications of Secretary) Amendment Rules, 2009, a copy of the Compliance Certificate is being attached with this Report. STATUTORY INFORMATION A statement giving the particulars of employees as required under Section 217 (2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975, is annexed. The Company did not accept any deposits from the public during the year. The Company had foreign exchange inflow of ` NIL (Previous Year : ` Nil) while the outgo of foreign exchange was ` NIL (Previous Year: Nil). The other requirements pursuant to the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, do not apply since the Company is not a manufacturing company. DIRECTORS RESPONSIBILITY STATEMENT The Directors, based on the representations received from the management, confirm in pursuance of Section 217 (2AA) of the Companies Act, 1956, that: i) ii) the Company has, in the preparation of the annual accounts, followed the applicable accounting standards along with proper explanations relating to material departures, if any; 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 as at 31st March 2011 and of the profit of the Company for the financial year ended 31st March 2011; the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and the Directors have prepared the annual accounts on a going concern basis.
iii) iv)
ACKNOWLEDGEMENTS The Board takes this opportunity to place on record its appreciation of the dedication and contribution of your Companys employees at all levels. The Board also acknowledges the faith reposed in the Company by the Companys lending institutions. For and on behalf of the Board of Directors C. Jayaram Director Jaimin Bhatt Director
Mumbai, 26th April 2011
Kotak Mahindra Investments Limited Annual Report 2010-11
Its grt 2b 25
Reports Compliance Certificate
Compliance Certificate
Registration No. of the Company: 047986. Nominal Capital: 70,00,00,000/-. To, The Members, KOTAK MAHINDRA INVESTMENTS LIMITED, 36-38A, Nariman Bhavan, 227, Nariman Point, Mumbai- 400 021. I have examined the registers, records, books and papers of KOTAK MAHINDRA INVESTMENTS LIMITED (hereinafter referred to as the Company) as required to be maintained under the Companies Act, 1956 (hereinafter referred to as the Act) and the rules made there under and also the provisions contained in the Memorandum and Articles of Association of the Company for the financial year ended on 31st March 2011. In my opinion and to the best of my information and according to the examinations carried out by me and explanations furnished to me by the Company, its officers and agents, I certify that in respect of the aforesaid financial year: 1. 2. The company has kept and maintained all registers as stated in Annexure A to this certificate, as per the provisions of the Act and the rules made there under and all entries therein have been duly recorded. The Company has duly filed all the forms and returns as stated in Annexure B to this certificate, with the Registrar of Companies, Regional Director, Central Government, Company Law Board or other authorities within the time prescribed under the Act, and the rules made there under. The Company, being a public limited company, has the prescribed minimum paid up capital. The Board of Directors duly met 23 (Twenty Three) times respectively on 9th April 2010, 28th April 2010, 5th May 2010, 1st June 2010, 8th June 2010, 14th June 2010, 22nd June 2010, 14th July 2010, 27th August 2010, 15th September 2010, 28th September 2010, 18th October 2010, 22nd October 2010, 4th November 2010, 23rd December 2010, 6th January 2011, 7th January 2011, 21st January 2011, 3rd February 2011, 1st March 2011, 21st March 2011, 25th March 2011 and 30th March 2011 in respect of which meetings proper notices were given and the proceedings were properly recorded and signed including the circular resolutions passed in the Minutes Book maintained for the purpose. The Company was not required to close its Register of Members or Debenture holders during the financial year. The annual general meeting for the financial year ended on 31st March 2010 was held on 28th May 2010 after giving due notice to the members of the company and other concerned and the resolutions passed thereat were duly recorded in Minutes Book maintained for the purpose. One extra-ordinary general meeting was held during the financial year after giving due notice to the members of the company and the resolutions passed thereat were duly recorded in the Minutes Book maintained for the purpose. The Company has not advanced any loan to its directors and/or persons or firms or companies referred in the section 295 of the Act. The company has not entered into any contracts falling within the purview section 297 of the Act during the year. The Company was not required to make any entries in the register maintained under section 301 of the Act. As there were no instances falling within the purview of section 314 of the Act, the company has not obtained any approvals from the Board of directors, members or Central Government. The company has not issued any duplicate share certificates during the financial year. (i) (ii) (iii) (iv) There was no allotment/ transfer/transmission of securities during the financial year. The Company has not deposited any amount in a separate Bank Account as no dividend was declared during the financial year. The Company has not posted warrants to any member of the company as no dividend was declared during the financial year. The Company was not required to transfer any amount to Investor Education and Protection Fund, since there were no amounts in unpaid dividend account and there was no application money due for refund, matured deposits, matured debentures and the interest accrued thereon which have remained unclaimed or unpaid for a period of seven years. The Company has duly complied with the requirements of section 217 of the Act.
3. 4.
5. 6.
7. 8. 9. 10. 11. 12. 13.
(v) 14.
The Board of directors of the company is duly constituted and the appointment of additional directors have been duly made. There was no appointment of alternate directors or directors to fill casual vacancy during the financial year.
Its grt 2b 25
15.
The appointment of manager has been made in compliance with the provisions of Section 269 read with Schedule XIII to the Act. Approval of the Central Government was not required to be obtained. The Company has not appointed any Managing Director/ Whole time Director during the financial year. The company has not appointed any sole selling agents during the financial year. The company was not required to obtain any approvals of the Central Government, Company Law Board, Regional Director, Registrar and/or such authorities prescribed under the various provisions of the Act during the financial year. The directors have disclosed their interest in other firms/companies to the Board of Directors pursuant to the provisions of the Act and the rules made there under. The company has issued 2400 Unsecured Redeemable Non Convertible Debentures of `10,00,000/- each, 200 Secured Gold Linked Debentures of ` 10,00,000/- and 5100 Secured Redeemable Non Convertible Debentures of `10,00,000/- each during the year and complied with the provisions of the act. The Company has not issued shares or any other securities during the financial year. The company has not bought back any shares during the financial year. The Company has redeemed 4950 Unsecured Redeemable Non Convertible Debentures of `10,00,000/- each, 1450000 Unsecured Fully Convertible Debentures of `100/- each and 3300 Secured Redeemable Non-Convertible Debenture of ` 10,00,000/- each during the financial year and complied with the provisions of the Act. There were no transactions necessitating the company to keep in abeyance rights to dividend, right shares and bonus shares pending registration of transfer of shares. The company has not invited/accepted or renewed any deposits including any unsecured loans falling within the purview of section 58A during the financial year. The amounts borrowed by the Company from others during the financial year ending 31st March 2011 are within the borrowing limits of the Company and that necessary resolutions as per section 293(1)(d) of the Act have been passed in duly convened extraordinary general meeting held on 18th July 2005. The company has made loans and investments to other bodies corporate in compliance with the provisions of the Act. It has not given any guarantees or provided securities to other bodies corporate. According to the information and explanation provided to us, the Company is not required to maintain a register u/s 372A of the Companies Act, 1956 as it is engaged in the business of investment and the provisions of Section 372A of the Act are not applicable to the Company. The company has not altered the provisions of the Memorandum with respect to situation of the companys registered office from one state to another during the year under scrutiny. The company has not altered the provisions of the Memorandum with respect to the objects of the company during the year under scrutiny. The company has not altered the provisions of the Memorandum with respect to name of the company during the year under scrutiny. The company has not altered the provisions of the Memorandum with respect to share capital of the company during the year under scrutiny. The company has not altered its Articles of Association during the financial year. There was/were no prosecution initiated against or show cause notices received by the company and no fines or penalties or any other punishment was imposed on the company during the financial year, for offences under the Act. The company has not received any money as security from its employees during the financial year. The company has deposited both employees and employers contribution to Provident Fund with prescribed authorities pursuant to section 418 of the Act.
16. 17. 18. 19.
20. 21.
22. 23. 24.
25.
26. 27. 28. 29. 30. 31. 32. 33.
Rupal D Jhaveri Company Secretary FCS: 5441 CP: 4225
Its grt 2b 25
Annexure A
REGISTERS AS MAINTAINED BY THE COMPANY: STATUTORY REGISTERS: 1. 2. 3. 4. 5. 6. 7. 8. Register of Members u/s 150. Register of debenture holders u/s 152. Register of Directors u/s 303. Register of Directors Shareholding u/s 307. Minutes Book of meetings of the Board of Directors u/s 193. Minutes Book of General Meetings of the members u/s 193. Books of Accounts u/s 209. Register of Particulars of Contracts in which Directors are interested u/s 301.
OTHER REGISTERS 1. Register of Transfers.
Annexure B
Forms and Returns as filed by the Company with Registrar of Companies, Regional Director, Central Government or other authorities during/ for the financial year ending 31st March 2011. Sr. No. Form No/Return Filed under Section For Date of filing Whether filed within prescribed time Yes/No. Yes. Yes. Yes Yes. If delay in filing whether requisite additional fee paid N.A. N.A. N.A N.A.
1. 2. 3. 4.
Annual Return with Form 20B Balance Sheet with Form 23AC & 23ACA Compliance Certificate With Form 66 Form 32
159(1) 220 383 303(2)
2009-2010 2009-2010 2009-2010 Appointment /Resignation of Directors Change in Designation Reappointment of Manager Creation of charge
14/07/10 09/06/10 01/06/10 13/04/10
4.
Form 32
303(2)
09/06/10
Yes.
N.A.
4.
Form 25C
269
18/08/10
Yes.
N.A.
5.
Form 8
125
27/01/11
Yes.
N.A.
Its grt 2b 25
Auditors Report
To, The Members of KOTAK MAHINDRA INVESTMENTS LIMITED 1. We have audited the attached Balance Sheet of KOTAK MAHINDRA INVESTMENTS LIMITED as at 31st March 2011 and the Profit and Loss Account of the company for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit. We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion. As required by Companies (Auditors Report) Order, 2003, as amended thereafter issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. Further to our comments in the Annexure referred to above, we report that: i) ii) iii) iv) v) We have obtained all the information and explanations, which to the best of our knowledge and belief, were necessary for the purposes of our audit; In our opinion, proper books of account as required by law have been kept by the company, so far as appears from our examination of those books; The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account; In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956; On the basis of the written representations received from the directors as on 31st March 2011, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956. In our opinion and to the best of our information and according to the explanations given to us, the said accounts read with the notes thereon, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: a) b) c) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2011; in the case of Profit and Loss Account, of the Profit for the year ended on that date; and in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
2.
3.
4.
vi)
For V. C. Shah & Co. Chartered Accountants Firm Registration No.109818W
V. C. Shah Partner. Membership No.: 10360 Mumbai, 26th April 2011
Its grt 2b 25
Reports

Annexure to the Auditors Report referred to in paragraph 3 of our report of even date i. (a) (b) (c) ii. (a) (b) (c) iii. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. The fixed assets of the Company have been physically verified by the management at reasonable intervals and no material discrepancies were noticed on such verification. In our opinion, the fixed assets disposed off during the year do not constitute a substantial part of the fixed assets of the Company and such disposal has not affected the going concern status of the Company. The physical verification of inventory has been conducted at reasonable intervals by the management. In our opinion, the procedure of physical verification of inventory followed by the management is reasonable and adequate in relation to the size of the Company and the nature of its business. The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification. The Company has neither granted nor taken any loans, secured or unsecured, to / from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Hence sub-clauses (b), (c), (d), (e), (f) & (g) of clause 4(iii) are not applicable to the Company during the year under report.
iv.
In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business, as regards purchase of securities and fixed assets and services rendered. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control systems. (a) There are no transactions that need to be entered into the register maintained under section 301 of Companies Act, 1956. Hence sub-clause (b) of this clause is not applicable to the Company during the year under report.
v. vi. vii. viii. ix.
The Company has not accepted any deposits from the public during the year under report. In our opinion, the Company has an internal audit system commensurate with its size and nature of its business. The provisions of section 209 (1) (d) of the Companies Act, 1956 in respect of maintenance of cost records as may be prescribed by the Central Government, are not applicable to the Company. (a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other material statutory dues, if any, applicable to it. According to the information and explanations given to us, there are no dues of sales tax, income tax, custom tax, wealth tax, service tax, excise duty, cess that have not been deposited on account of any dispute.
(b) x. xi. xii. xiii. xiv.
There are no accumulated losses of the Company at the end of the financial year. The Company has also not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year. In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to a financial institution or bank or debenture holders. In our opinion and according to the information and explanations given to us, the company has maintained adequate records in cases of loans and advances granted on the basis of security by way of pledge of shares, debentures or other securities. The Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company. The Company has maintained proper records of its transactions and contracts in shares, securities, and other investments and timely entries have been made therein. The shares, securities and other investments are held by the company, in its own name or are in the process of being transferred in the name of the Company. According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions.
xv.
Its grt 2b 25
xvi.
In our opinion and according to the information and explanation given to us, term loans were applied for the purpose for which they were obtained.
xvii. According to the information and explanations given to us and on an overall examination of the balance sheet of the Company, we report that no funds raised on short term basis have been used for long term investments. xviii. During the year under report, the Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Act. xix. xx. xxi. According to the information and explanations given to us, the company has created security or charge, in respect of secured debentures issued during the year under report. The Company has not raised any money by public issues, during the year under report. According to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the year under report.
V. C. Shah Partner Membership No.: 10360 Mumbai, 26th April 2011.
Its grt 2b 25
Reports
(` in lakhs)

Schedule SOURCES OF FUNDS 1. Shareholders Funds (a) (b) 2. Share Capital Reserves and Surplus (1) (2) 305.03 25,128.21 305.03 22,728.34 As at 31st March 2011 As at 31st March 2010
Loan Funds (a) (b) Secured Unsecured Total (3) (4) 45,671.66 26,090.68 97,195.58 25,424.87 27,446.24 75,904.48
APPLICATION OF FUNDS 1. Fixed Assets (a) (b) (c) 2. 3. Gross Block Less : Depreciation Net Block (5) (6) 53.23 27.98 25.25 5,543.21 66.53 30.53 36.00 3,782.02
Investments Current Assets, Loans and Advances (a) (b) Cash and Bank Balances Loans and Advances
(7) (8)
14,675.48 82,866.52 97,542.00
9,102.59 67,632.72 76,735.31
Less: Current Liabilities and Provisions (a) (b) Current Liabilities Provisions (9) (10) 7,193.13 259.35 7,452.48 Net Current Assets 4. Deferred Tax Asset Total Significant Accounting Policies and Notes to the Financial Statements (18) (11) 90,089.52 1,537.60 97,195.58 5,271.47 62.56 5,334.03 71,401.28 685.18 75,904.48
As per our attached report of even date For V. C. Shah & Co. Chartered Accountants V. C. Shah Partner Membership No. 10360 Mumbai, 26th April 2011 Its grt 2b 25 For and on behalf of the Board of Directors
C. Jayaram Director
Jaimin Bhatt Director
N. R. Subramanian Sr. Vice President (Finance & Operations)
(` in lakhs)
Schedule INCOME Interest Income Income from investments Recoveries in excess of cost of NPAs purchased Provision for Diminution in value of Investments written back (net) Other Income Total EXPENDITURE Personnel Expenses Interest and Finance Charges Loss on Trading in Securities / Commodity Futures Administrative and Operating Expenses Provisions / Write offs (net of recovery) Provision for Diminution in value of Investments (net) Total Profit before Depreciation and Tax Depreciation Profit before Tax Provision for Taxation : Current Tax Deferred Tax Prior Years Tax Profit after Tax Balance brought forward from previous year Profit available for appropriation Appropriations Transfer to Special Reserve under section 45IC of Reserve Bank of India, Act 1934 Surplus carried to Balance Sheet 480.00 19,166.57 19,646.57 Earning per Share Basic and Diluted (18) 78.68 113.64 Significant Accounting Policies and Notes to the Financial Statements 694.00 17,246.70 17,940.70 (2,077.59) 852.42 304.57 2,399.87 17,246.70 19,646.57 (1,608.31) 115.71 116.51 3,466.24 14,474.46 17,940.70 (14) (15) (16) (17) 600.24 5,952.33 653.13 432.47 1,480.40 78.68 9,197.25 3,331.14 (10.67) 3,320.47 574.19 3,000.77 510.49 418.97 28.00 4,532.43 4,866.26 (23.93) 4,842.33 (12) (13) 11,754.04 565.37 68.42 140.56 12,528.39 7,389.11 1,157.20 108.20 652.33 91.85 9,398.69 For the year ended 31st March 2011 For the year ended 31st March 2010
As per our attached report of even date For V. C. Shah & Co. Chartered Accountants V. C. Shah Partner Membership No. 10360 Mumbai, 26th April 2011 For and on behalf of the Board of Directors
C. Jayaram Director
10
Its grt 2b 25
Reports
(` in lakhs)
Cash Flow statement for the year ended 31st March 2011
Particulars 2010-2011 Amount CASH FLOW FROM OPERATING ACTIVITIES Net Profit before taxation and extraordinary items Adjustments for : Depreciation Profit on Long Term Investments Profit on Current Investments Dividend on Long Term Investments Interest on Long Term Investments (Profit) / Loss on Trading in Equity Shares Provisions / Write offs (net of recovery) Provision / (Write Back) for Diminution in Investments Operating Profit before Working Capital Changes Increase in Loans and Advances Decrease in Other current Assets Increase / (Decrease) in Current Liabilities Increase in Provisions Cash generated used in Operations Income Taxes paid Net Cash generated used in Operating Activities CASH FLOW FROM INVESTING ACTIVITIES Interest on Long term Investments Purchase of Investments Sale of Investments Dividend on Long Term Investments Purchase of Fixed Assets Sale of Fixed Assets Net Cash from / (used in) Investing Activities (B) (777,696.01) 776,330.15 91.29 (6.35) 6.43 (1,274.49) 82.71 (442,048.02) 445,928.94 34.53 (12.41) 67.34 4,053.09 (A) 10.67 (7.68) (466.40) (91.29) 0.07 1,480.40 78.68 4,324.92 (16,816.72) 1,921.66 196.80 (10,373.34) (1,670.51) (12,043.85) 23.93 (732.51) (307.45) (34.53) (82.71) (18.98) 28.00 (652.33) 3,065.75 (35,648.05) 37.65 (167.17) 32.28 (32,679.54) (854.13) (33,533.67) 3,320.47 4,842.33 Amount 2009-2010 Amount Amount
Its grt 2b 25
11
(` in lakhs)
Particulars 2010-2011 Amount CASH FLOW FROM FINANCING ACTIVITIES Increase in Secured Loans Increase / (Decrease) in Unsecured Loans Net Cash from Financing Activities NET INCREASE / (DECREASE) IN CASH & CASH EQUIVALENTS CASH & CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR CASH & CASH EQUIVALENTS AT THE END OF THE YEAR (D) Notes : 1. Cash and cash equivalents include : Bank Balances Fixed Deposits Total cash and cash equivalents 2. 898.99 13,776.49 14,675.48 3,847.36 5,255.23 9,102.59 (C) 20,246.79 (1,355.56) 18,891.23 11,452.00 14,496.24 25,948.24 Amount 2009-2010 Amount Amount
(A + B + C)
5,572.89 9,102.59
(3,532.34)
12,634.93
14,675.48 5,572.89
9,102.59 (3,532.34)
The Cash Flow statement has been prepared under the Indirect Method as set out in the Accounting Standard -3 on Cash Flow Statements issued by The Institute of Chartered Accountants of India. The previous years figures have been re-grouped, wherever necessary in order to conform to this years presentation.
3.
As per our attached report of even date For V. C. Shah & Co. Chartered Accountants V. C. Shah Partner Membership No. 10360 Mumbai, 26th April 2011
C. Jayaram Director
12
Its grt 2b 25
Reports
(` in lakhs)

31st March 2011 Schedule 1 - Share Capital Authorised 58,000,000 Equity Shares of ` 10/- each 1,200 Non Cumulative Redeemable Preference Shares of ` 1,00,000/- each Total Issued, Subscribed and Paid up 3,050,280 Equity Shares of ` 10/- each fully paid up All the above shares are held by Kotak Mahindra Bank Ltd, the holding company, and its nominees Total 305.03 305.03 305.03 305.03 5,800.00 1,200.00 7,000.00 5,800.00 1,200.00 7,000.00 31st March 2010 As at 31st March 2011 As at 31st March 2010
Schedule 2 - Reserves and Surplus Capital Redemption Reserve As per last Balance Sheet Securities Premium Account As per last Balance Sheet Tax effect on receipts and expenses General Reserve As per last Balance Sheet Special Reserve Under Section 45 IC of the Reserve Bank of India Act, 1934 As per last Balance Sheet Add: Transferred from Profit and Loss Account Profit and Loss Account Balance in Profit and Loss Account Total 19,166.57 25,128.21 17,246.70 22,728.34 3,810.20 480.00 3,116.20 694.00 4,290.20 3,810.20 431.10 431.10 236.49 198.36 38.13 236.49 236.49 1,003.85 1,003.85
Schedule 3 - Secured Loans 4,695 (P.Y.2,695) Secured Redeemable NonConvertible Debentures fully paid, privately placed Less : Unamortised Discount on Debentures (Refer Note No.I (J) of Schedule 18) Short Term Loan : From Banks Total
Notes A 46,260.00 613.34 26,260.00 835.13 45,646.66 25,424.87
25.00 45,671.66
25,424.87
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(` in lakhs)

Notes : A) The debentures are redeemable at par. The non Convertible debentures and Index/Gold Linked debentures are secured by way of a charge on specified receivables/current assets and Investments of the company, in favour of the debenture Trustees The details of debentures are as under: Description 377 Debentures of ` 10,00,000 each 190 Debentures of ` 10,00,000 each 90 Debentures of ` 10,00,000 each 70 Debentures of ` 10,00,000 each 29 Debentures of ` 5,00,000 each 109 Debentures of ` 5,00,000 each 200 Debentures of ` 10,00,000 each 80 Debentures of ` 10,00,000 each 250 Debentures of ` 10,00,000 each 200 Debentures of ` 10,00,000 each 200 Debentures of ` 10,00,000 each 250 Debentures of ` 10,00,000 each 300 Debentures of ` 10,00,000 each 300 Debentures of ` 10,00,000 each 250 Debentures of ` 10,00,000 each 400 Debentures of ` 10,00,000 each 250 Debentures of ` 10,00,000 each 250 Debentures of ` 10,00,000 each 200 Debentures of ` 10,00,000 each 250 Debentures of ` 10,00,000 each 150 Debentures of ` 10,00,000 each 300 Debentures of ` 10,00,000 each 250 Debentures of ` 10,00,000 each 100 Debentures of ` 10,00,000 each 50 Debentures of ` 10,00,000 each 100 Debentures of ` 10,00,000 each 100 Debentures of ` 10,00,000 each 250 Debentures of ` 10,00,000 each 250 Debentures of ` 10,00,000 each Total B) Amount 3,770.00 1,900.00 900.00 700.00 145.00 545.00 2,000.00 800.00 2,500.00 2,000.00 2,000.00 4,000.00 2,500.00 2,500.00 2,000.00 2,500.00 1,500.00 3,000.00 2,500.00 1,000.00 500.00 1,000.00 1,000.00 2,500.00 2,500.00 46,260.00 Amount (P.Y.) 3,770.00 1,900.00 900.00 700.00 145.00 545.00 800.00 2,500.00 2,000.00 2,000.00 2,500.00 3,000.00 3,000.00 2,500.00 26,260.00 Redemption Date 17-Oct-11 29-Nov-11 28-Nov-11 12-Dec-11 27-Jan-12 24-Feb-12 29-Nov-13 4-Apr-11 25-Apr-11 25-Apr-11 22-Apr-11 18-Jun-10 29-Jul-10 7-May-10 16-Jul-10 4-May-11 9-May-11 10-Jun-11 27-Jun-11 22-Aug-11 5-Sep-11 31-Aug-11 7-Sep-11 6-Sep-11 13-Sep-11 22-Sep-11 5-Apr-11 3-Aug-11 29-Nov-11
The Short Term loan from Bank is secured by way of a first charge on specified receivables of the company. Kotak Mahindra Investments Limited Annual Report 2010-11
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31st March 2011 Schedule 4 - Unsecured Loans Short Term Loans from others Unsecured Redeemable Non Convertible Debentures fully paid, privately placed (**) Commercial Paper Less : Unamortised Discount (Maximum amount outstanding during the year ` 50,000 lakhs (P.Y.`500 lakhs) Other Loans NIL (P.Y.1,450,000) Unsecured Fully Convertible Debentures of `100/- each, fully paid (Redeemable at par on or before, 28th February 2011, at the exercise of put or call option exercisable after 3 years from the date of allotment, being 28th February, 2006. If option to redeem is not exercised, the debentures shall be convertible in to equity shares of ` 10/- each on the maturity date, being 28th February 2011, at book value as per audited financials on 30th September, 2010.) Total (**) The debentures are redeemable at par. There is a pari passu mortgage and charge in favour of the Trustees on the Companys immovable property costing `10,25,656. The details of unsecured debentures are as under: Description NIL (2,550) Debentures of `10 lakh each Total Amount 27,000.00 909.32 500.00 3.76 26,090.68 31st March 2010 As at 31st March 2011
(` in lakhs) As at 31st March 2010
25,500.00
496.24
1,450.00
26,090.68
27,446.24
Amount 25,500.00 25,500.00
Schedule 5 - Fixed Assets Gross Block Description As at 01.04.2010 Additions during the year 0.65 2.68 3.02 6.35 12.41 Deductions As at 31.03.2011 Upto 31.03.2010 Depreciation For the year Deductions
(` in lakhs) Net Block Upto As at As at 31.03.2011 31.03.2011 31.03.2010
Premises Office Equipment Furniture & Fixtures Leasehold Improvements Computers Vehicles TOTAL Previous Year
10.26 10.19 2.47 8.12 35.48 66.52 206.09
6.86 0.27 0.16 12.36 19.64 151.97
10.26 3.98 2.20 10.64 26.14 53.23 66.53
1.42 5.33 2.31 6.34 15.13 30.53 91.23
0.18 0.74 1.79 7.96 10.67 23.93
3.48 0.11 0.05 9.57 13.21 84.63
1.60 2.59 2.20 8.08 13.51 27.98 30.53
8.66 1.39 0.01 2.56 12.63 25.25 36.00
8.84 4.86 0.16 1.79 20.35 36.00 114.85
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Face Value ` Schedule 6 - Investments (Non Trade) (I) A. LONG TERM : (Non Trade) (At Cost) Quoted and fully paid up Equity shares in: Aditya Birla Nuvo Ltd. Axis Bank Ltd BGR Energy Systems Ltd Corporation Bank Dewan Housing Finance Corporation Ltd. Development Credit Bank Ltd. Edelweiss Capital Ltd. Federal Bank Ltd. Geojit BNP Paribas Financial Services Ltd. Grasim Industries Ltd Hathway Cable & Datacom Ltd. HCL Technologies Ltd. HDFC Ltd. HDFC Bank Ltd Hindustan Construction Company Ltd IDFC Ltd. ING Vysya Bank Limited IDBI Bank Ltd. ICICI Bank Ltd India Infoline Ltd IndiaBulls Financial Services Ltd. IndiaBulls Real Estate Ltd. IndiaBulls Securities Ltd. IndusInd Bank Ltd. J M Financial Ltd. Jubiliant Foodworks Ltd. Karnataka Bank Ltd. Karur Vysya Bank Ltd. Lakshmi Vilas Bank Ltd. LIC Housing Finance Ltd. Motilal Oswal Financial Services Ltd. Reliance Capital Ltd Religare Enterprise Ltd State Bank of India Shriram Transport Finance Company Ltd. Dhanlakshmi Bank Ltd. The Southindian Bank Ltd. Yes Bank Ltd. Sub-total (A) 10 10 10 10 10 10 1 10 1 10 10 2 2 10 1 10 10 10 10 2 2 2 2 10 1 10 10 10 10 2 1 10 10 10 10 10 1 10 5 5 40,000 5 5 5 50 5 50 4,000 50,000 50,000 25 5 300,000 5 5 5 6 25 5 5 5 5 125 20,000 5 7 5 25 5 5 5 4,005 5 5 50 5 0.04 0.05 200.65 0.02 0.01 0.00 0.02 0.01 0.01 101.25 52.64 228.03 0.05 0.10 106.96 0.01 0.01 0.01 0.07 0.01 0.01 0.01 0.01 0.01 0.02 101.54 0.01 0.02 0.00 0.01 0.01 0.07 0.02 109.74 0.04 0.01 0.01 0.01 901.50 5 5 5 5 50 5 5 5 5 25 5 5 5 5 125 5 5 5 5 5 5 0.05 0.02 0.01 0.02 0.01 0.05 0.05 0.01 0.03 0.01 0.01 0.01 0.01 0.01 0.02 0.01 0.01 0.07 0.02 0.02 0.01 0.46 As at 31-03-2011 Quantity As at 31-03-2011 (` in lakhs) ` As at 31-03-2010 Quantity As at 31-03-2010 (` in lakhs)
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Face Value ` B. Unquoted and fully paid up units in Mutual Fund of: DSP BlackRock Mutual Fund DSP BlackRock Small and Midcap Fund HDFC Mutual Fund HDFC Mid-Cap Opportunities Fund Sub-total (B) C. Unquoted and fully paid up Equity shares in: DSP Merrill Lynch Ltd. Business Standard Ltd. Friday Content Solutions Limited Amitabh Bachchan Corporation Ltd. TAIB Capital Corporation Ltd. Snowcem Paints Pvt Ltd Elbee Express Pvt. Ltd Phoenix ARC Pvt. Ltd. Matrix Business Services (India) Pvt. Ltd. SIRO Clinpharm Pvt. Ltd. Arun Processors Ltd. Svasti Microfinance Pvt Ltd ACE Derivatives and Commodity Exchange Ltd. Less: Provision for Diminution Sub-total (C) D. Unquoted and fully paid up Preference shares in: Convertible Preference Shares - Indus Biotech Pvt. Ltd. Sub-total (D) E. Others India Growth Fund - Class A Units (Refer Note.II 1(a) of Schedule 18) Kotak India Real Estate Fund-I-Class B Units Kotak Alternate Oppurtunities (India) Fund Class B Units (Refer Note.II 1(b) of Schedule 18) Kotak India Venture Fund - Class A Units (Refer Note.II 1(c) of Schedule 18) Kotak India Venture Fund - Class B Units Kotak India Growth Fund -II-Class B Units Less: Provision for Diminution Sub-total (E) TOTAL INVESTMENTS (A+B+C+D+E) Aggregate of Quoted Investments at cost at market value at cost 901.50 905.03 4,641.71 0.46 0.66 3,781.56 1000 1 70,832 290,141 100 175,000 175.00 175.00 755.91 2.90 10.00 1000 0.10 1 125,000 5,000,000 500,000 488.01 5.00 5.00 1,266.83 5,543.21 100,000 5,000,000 500,000 52,500 500,000 175,000 175.00 175.00 504.63 5.00 7.50 350.00 5.00 5.00 61.86 815.27 3,782.02 10 10 10 10 10 10 10 10 10 10 10 10 10 5 1,000 12,275 325,000 245,000 26,438 400,000 19,950,000 150,000 998 643,125 1,373 900,000 0.01 0.20 254.05 260.00 15.54 94.00 225.00 1,995.00 336.54 300.00 0.00 50.14 99.00 829.59 2,799.89 5 1,000 12,275 325,000 245,000 26,438 400,000 19,950,000 150,000 998 643,125 0.01 0.20 254.05 260.00 15.54 94.00 225.00 1,995.00 336.54 300.00 0.00 689.05 2,791.29 10 1,396,648.045 200.00 400.00 10 1,213,813.194 200.00 As at 31-03-2011 Quantity As at 31-03-2011 (` in lakhs) ` As at 31-03-2010 Quantity As at 31-03-2010 (` in lakhs)
Aggregate of Unquoted Investments
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(` in lakhs)

31st March 2011 Schedule 7 - Cash and Bank Balances Balances with Scheduled Banks in current accounts in Fixed Deposit accounts Total 898.99 13,776.49 14,675.48 3,847.36 5,255.23 9,102.59 31st March 2010 As at 31st March 2011 As at 31st March 2010
Schedule 8 - Loans and Advances Advances recoverable in cash or in kind or for value to be received Secured, considered good Secured, considered doubtful Less: Provisions for doubtful advances Unsecured, considered good Unsecured, considered doubtful Less: Provisions for doubtful advances Advance Taxes paid and tax deducted at source (Net of Provision for Taxation ` 4096.56 lakhs (P.Y.4,912.91 lakhs) Initial Margin - Index/Commodity Derivative (Refer Note no. I (K) of Schedule 18) Total 82,866.52 67,632.72 989.21 633.15 244.99 (244.99) 85.03 (85.03) 664.46 766.98 1,145.19 (1,145.19) 19.85 (19.85) 3,941.11 1,307.09 77,271.74 64,925.50
Schedule 9 - Current Liabilities Sundry Creditors (Other than Micro, Medium & Small Enterprises) Interest accrued but not due Other Liabilities Equity Index/Stock Option Premium (Refer Note no. I (K) of Schedule 18) Mark - to - Market (Profit) / Loss Mark-to-Market Embedded Options Value (Refer Note no. I (K) of Schedule 18) Total 7,193.13 5,271.47 (944.80) (678.09) 34.16 4,747.35 300.87 3,290.04 978.96 978.96 2,038.91 243.07 1,319.09 302.30 129.64 59.17
Schedule 10 - Provisions Provision for Gratuity Provision for Accumulated Compensated Absences Provision for Standard Assets Total 31.08 23.03 205.24 259.35 16.83 20.73 25.00 62.56
Schedule 11 - Deferred Tax Asset Deferred tax asset as at 1st April, 2010 For the year Total 685.18 852.42 1,537.60 569.47 115.71 685.18
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(` in lakhs)
Schedules Forming Part of the Profit and Loss Account for the year ended 31st March 2011
For the year ended 31st March 2011 Schedule 12 - Interest Income Interest on Deposits, Loans and Advances (TDS `341.13 lakhs ; P.Y.` 515.42 lakhs) Interest - others Total Schedule 13 - Income from Investments Profit on sale of Current Investments (net) Interest on Long Term Investments Profit on sale of Long Term Investments (net) Dividend on Long Term Investments 11,592.73 161.31 11,754.04 For the year ended 31st March 2010 7,369.08 20.03 7,389.11
466.40 7.68 91.29 565.37
307.45 82.71 732.51 34.53 1,157.20
Schedule 14 - Personnel Expenses Salaries, Allowances and Bonus Contribution to Provident and Other Funds Staff Welfare Total Schedule 15 - Interest and Finance Charges Interest on Debentures and Fixed Period Loans Discount on Commercial Papers Bank Charges Total Schedule 16 - Loss on Trading in Securities / Commodity Futures Loss on trading in Index Options / Futures (net) Loss on trading in Commodity Futures (net) (Profit ) / Loss on trading in Equity Shares (net) Total Schedule 17 - Administrative and Operating Expenses Travelling and Conveyance Legal and Professional Charges Business Promotion Expenses Rent Expense Common Establishment Expenses - Reimbursements Electricity Expenses Demat Account Charges Office expenses Printing and Stationery Auditors Remuneration: Audit fees Tax Audit Fees In other capacity Out of Pocket Expense Rates, Taxes and Fees Repairs and Maintenance Telephone and Postage Loss on sale/ disposal of Fixed Assets
572.90 18.58 8.76 600.24
554.60 14.11 5.48 574.19
4,082.73 1,869.48 0.12 5,952.33
2,997.47 3.22 0.08 3,000.77
646.89 6.17 0.07 653.13
529.47 (18.98) 510.49
10.54 40.55 2.55 63.12 209.67 9.80 1.07 57.47 4.12 4.00 0.75 0.39 0.14 3.91 17.94 6.45 432.47
9.95 39.55 1.42 53.37 159.53 8.71 1.44 39.59 5.63 3.50 0.75 0.57 6.67 23.19 5.50 59.60 418.97
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Schedule 18 Significant Accounting Policies And Notes To The Accounts
I. A. SIGNIFICANT ACCOUNTING POLICIES BASIS OF ACCOUNTING The Financial Statements have been prepared on historical cost basis of accounting. The company adopts the accrual system of accounting and the financial statements conform with the Accounting Standards notified under the Companies (Accounting Standard) Rules, 2006, the guidelines issued by the Reserve Bank of India for Non-Banking Financial Companies, the generally accepted accounting principles prevailing in India and the relevant provisions of the Companies Act, 1956. The preparation of financial statements requires the management to make estimates and assumptions in the reported amounts of assets and liabilities (including contingent liabilities) as at the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Actual results could differ from these estimates. B. REVENUE RECOGNITION a. b. c. d. e. Interest income is recognised on accrual basis except in case of non-performing assets where it is recognised, upon realisation, as per RBI guidelines. Overdue/ penal interest is recognised as income on realisation. Interest income in respect of advances granted on assignment of retail receivables is accounted for by using the internal rate of return method to provide a constant periodic rate of return on the net investment outstanding on the contract. Dividend income is accounted on an accrual basis when the Companys right to receive the dividend is established. Fee income is recognized when due. In respect of non performing assets acquired from other banks / NBFCs / Financial Institutions / Companies, collections in excess of the consideration paid for acquisition at each asset level or portfolio level is treated as income.
C.
FIXED ASSETS a. b. Fixed assets are stated at cost inclusive of incidental expenses less accumulated depreciation. Depreciation: The Company adopts the Straight Line Method of depreciation so as to write off 100% of the cost of the assets, except in respect of premises, at rates higher than those prescribed under Schedule XIV to the Companies Act, 1956 based on the managements estimate of the useful lives of all the assets. Estimated useful lives over which assets are depreciated are as follows: Asset Type Premises Leasehold Improvements Office Equipment Computers Furniture and Fixtures Vehicles Useful life in years 58 Over the period of lease subject to a maximum of 6 years 5 3 6 4
Items costing less than `5,000 are fully depreciated in the year of purchase. D. INVESTMENTS Investments are classified into long term investments and current investments. Investments which are intended to be held for more than one year are classified as long term investments and investments which are intended to be held for less than one year are classified as current investments. Long term investments are accounted at cost (applying weighted average cost method) and any decline in value, other than temporary is provided for. Current investments are valued at cost (applying weighted average cost method) or fair value/ market value whichever is lower. Brokerage, stamping and additional charges paid are included in the cost of investments. E. BORROWING COST Borrowing costs other than those directly attributable to qualifying Fixed Assets are recognised as an expense in the period in which they are incurred. F. TAXES ON INCOME The Income Tax expense comprises Current tax and Deferred tax. Current tax is measured at the amount expected to be paid in respect of taxable income for the year in accordance with the Income tax Act, 1961. Deferred tax adjustments comprises of changes in the deferred tax assets and liabilities. Deferred tax assets and liabilities are recognised for the future tax consequences of timing
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differences being the difference between taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets on account of timing differences are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantially enacted before the balance sheet date. Changes in deferred tax assets / liabilities on account of changes in enacted tax rates are given effect to in the Profit and Loss Account in the period of change. The carrying amount of deferred tax assets are reviewed at each balance sheet date. The company writes down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which the deferred tax asset can be realised.. G. EMPLOYEE BENEFITS a. b. c. d. e. Provident fund is a defined contribution scheme and the contributions as required by the statute to Government Provident Fund are charged to profit and loss account when due. Gratuity liability is a defined benefit obligation and is wholly unfunded. The Company accounts for liability for future gratuity benefits based on actuarial valuation. Actuarial gains/losses are immediately taken to the profit and loss account and are not deferred. The amount of short term employee benefits expected to be paid in exchange for the services rendered by employee is recognized during the period when the employee renders the service. These benefits include performance incentives. The Company accrues the liability for compensated absences based on the actuarial valuation as at the balance sheet date conducted by an independent actuary.
H.
EMPLOYEE SHARE BASED PAYMENTS Cash-settled scheme: The cost of cash-settled scheme (stock appreciation rights) is measured initially using intrinsic value method at the grant date taking into account the terms and conditions upon which the instruments were granted. This intrinsic value is amortised on a straight-line basis over the vesting period with recognition of corresponding liability. This liability is remeasured at each balance sheet date up to and including the settlement date with changes in intrinsic value recognised in profit and loss account in Payments to and provision for employees
I.
COMMERCIAL PAPER The liability is recognised at face value at the time of issue of commercial paper. The discount on issue of commercial paper is amortised over the tenure of the commercial paper.
J.
STRUCTURED LIABILITIES The company has issued structured liabilities wherein the return on these liabilities is linked to non-interest benchmarks. Such structured liabilities have an embedded derivative which is the non-interest related return component. The embedded derivative is separated from the host contract and accounted separately (Refer accounting policy on Derivates as perk K below). The resultant debt component of such structured liabilities is recognised in the Balance Sheet under the head Secured loans and is measured at amortised cost using yield to maturity basis.
K.
DERIVATIVES Initial Margin - Index / Commodity Derivative representing the initial margin paid and /or additional margin paid over and above the initial margin, for entering into contracts for equity index/ commodity futures and equity index/ stock options, which are released on final settlement / squaring up of the underlying contracts, are disclosed under Loans and Advances. Equity Index/ Stock Option Premium Account represents the premium paid or received for buying or selling the options, respectively. On final settlement or squaring up of contracts for equity index/ stock futures, the realised profit or loss after adjusting the unrealized loss already accounted, if any, is recognised in the profit and loss account and shown as Profit / (Loss) on trading in Securities/ Commodity Futures. On settlement or squaring up of equity index/ stock options before expiry, the premium prevailing in Equity Index/Stock Option Premium Account on that date is recognised in the Profit and Loss Account. When more than one contract in respect of the relevant series of equity index/ commodity futures or equity index/ stock options contract to which the squared-up contract pertains is outstanding at the time of the squaring-up of the contract, the contract price of the contract so squared-up is determined using the weighted average cost method for calculating the profit/loss on squaring-up. Outstanding derivative contracts, including embedded derivatives, are measured at fair value as at each balance sheet date. Fair value of derivatives is determined using quoted market prices in an actively traded market, for the instrument, wherever available, as the
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best evidence of fair value. In the absence of quoted market prices in an actively traded market, a valuation technique is used to determine the fair value. In most cases the valuation techniques use observable market data as input parameters in order to ensure reliability of the fair value measure. The marked to market on derivative contracts is determined on a portfolio basis with net unrealized losses being recognised in the profit and loss account. Unrealized gains are not recognised in profit and loss account on grounds of prudence as enunciated in Accounting Standard 1, Disclosure of Accounting Policies. As at the balance sheet date, in case of long positions outstanding, the same has been represented in Other Current Assets as Equity Index Options Premium Account and provision is made for the amount by which the premium paid for those options exceeds the prevailing premium on the balance sheet date. In case of the short positions outstanding, the same has been represented in Current Liabilities and provision is made for the amount by which the fair value exceeds the premium received for those options. L. ADVANCES Advances are classified into standard, sub-standard, doubtful and loss assets in accordance with the RBI guidelines and are stated net of provisions made towards non-performing assets. Provision for standard assets and non-performing assets comprising sub-standard, doubtful and loss assets is made in accordance with the RBI guidelines. M. SEGMENTAL ACCOUNTING a. b. c. Segment revenue includes income directly attributable/allocable to the segment. Expenses that are directly attributable / allocable to segments are considered for determining the segments results. The expenses which relate to the Company as a whole and are not allocable to segments are included under Unallocable expenses Segment assets and liabilities include those directly identifiable with the respective segments. Unallocable corporate assets and liabilities represent the assets and liabilities that relate to the Company as a whole and not allocable to any segment. Unallocable assets mainly comprise Advance Payment of taxes and Tax deducted at source (net of provision of taxation) and Deferred tax. Unallocated liabilities include Provision for retirement benefits and Other liabilities
N.
PROVISIONS, CONTINGENT LIABILITIES & CONTINGENT ASSETS Provisions involving substantial degree of estimation in measurement are recognised when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but disclosed in the notes. Contingent assets are neither recognised nor disclosed in financial statements.
O.
LEASES Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term, are classified as operating leases. Operating lease payments are recognised as an expense in the Profit and Loss account on a straight-line basis over the lease term.
P.
IMPAIRMENT OF ASSETS The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/ external factors. An impairment loss is charged to Profit & Loss account in the year in which an asset is identified as impaired.
II. 1.
NOTES TO ACCOUNTS CONTINGENT LIABILITIES: a. b. c. d. e. f. Uncalled liability on capital commitment in respect of units of India Growth Fund Class A Units ` 27.13 lakhs (P.Y. ` NIL). Uncalled liability on capital commitment in respect of units of Kotak Alternate Opportunities (India) Fund - Class B units ` NIL (P.Y. ` 2.50 lakhs). Uncalled liability on capital commitment in respect of units of Kotak India Venture Fund Class A units ` 775 lakhs (P.Y. ` 650 lakhs). Claims in respect of Leasehold premises : ` 2.45 lakhs (P.Y. ` 2.45 lakhs). Contingent Liability in respect of open positions of Equity Index Futures contract outstanding as on balance sheet date ` 5,228.89 lakhs (P.Y. ` NIL) Contingent Liability in respect of open positions of Commodity Futures contract outstanding as on balance sheet date ` 1,368.34 lakhs (P.Y. ` NIL)
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2.
Open Interest in Equity Index Futures/Options and Commodity Futures: Index Futures As at 31st March 2011 S & P CNX Nifty As at 31st March 2010 S & P CNX Nifty Index Options As at 31st March 2011 S & P CNX Nifty As at 31st March 2010 S & P CNX Nifty Commodity Futures As at 31st March 2011 FUTCOM GOLD As at 31st March 2010 NIL NIL NIL NIL 04-Jun-2011 6800 6800 Expiration Date No. of Contracts 300.87 Open Long Position Quantity 34.16 29-Apr-2010 10 500 (` in lakhs) Total Premium carried Forward (Net of Provisions made) 28-Apr-2011 2175 108750 Expiration Date No. of Contracts Open Long Position Quantity
The Company enters into equity index futures/options and commodity futures for the purpose of hedging. 3. Employee Benefit Reconciliation of opening and closing balance of the present value of the defined benefit obligation for gratuity benefits is given below. (` in lakhs) As at 31st March 2011 Change in Unfunded benefit obligations Present value of unfunded benefit obligations (Opening) Current Service cost Interest cost Actuarial (gain)/loss on obligations Past service Cost Liability assumed on acquisition/(settled on Divestiture) Benefits paid Present value of unfunded benefit obligations Reconciliation of present value of the obligation and the fair value of the plan assets Fair value of plan assets Present value of unfunded benefit obligations Net Liability Cost recognised for the period Current service cost Interest cost Expected return on plan assets Actuarial (gain)/loss Past Service Cost Net gratuity cost 16.83 2.60 1.48 11.24 7.56 2.45 (11.08) 31.08 As at 31st March 2011 31.08 (31.08) For the year ended 31st March 2011 2.60 1.48 11.24 7.56 4.69 As at 31st March 2010 14.99 2.56 1.18 0.95 (1.50) (1.35) 16.83 As at 31st March 2010 16.83 (16.83) For the year ended 31st March 2010 2.56 1.18 0.95 4.69
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Actuarial assumptions used 31-Mar-11 Discount rate Salary escalation rate 8.26% p.a 15% p.a. for the first 2 years 10.0% p.a. for the next 2 years & 6% p.a. thereafter 31-Mar-10 8.01% p.a 15% p.a. for the first 2 years 10.0% p.a.for the next 2 years & 6% p.a. thereafter
The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market. Experience adjustments Amounts for the current and previous four years are as follows: (` in lakhs) Gratuity Year ended 31st March 2011 Defined benefit obligation Plan assets Surplus / (deficit) Experience adjustments on plan liabilities Experience adjustments on plan assets Gratuity In accordance with Payment of Gratuity Act, the Company provides for gratuity, a defined benefit retirement plan covering all employees. The plan provides a lump sum payment to vested employees at retirement or termination of employment based on the respective employees salary and the years of employment with the Company subject to maximum of ` 10 lakhs. The gratuity benefit is provided through unfunded plan and annual contributions are charged to profit and loss account. Under the scheme, the settlement obligation remains with the Company. Provident fund In accordance with Indian regulations, employees of the Company are entitled to receive benefits under the provident fund, a defined contribution plan, in which, both the employee and the Company contribute monthly at a determined rate. These contributions are made to a recognised provident fund and administered by a Board of Trustees. The employee contributes 12% of his or her basic salary and the Company contributes an equal amount. The investments of the funds are made according to rules prescribed by the Government of India. Accumulated Compensated Absences The Company provides for accumulated compensated absences as at the balance sheet date on the basis of an actuarial valuation. 4. Components of net deferred tax asset : As at 31st March 2011 Deferred Tax Assets Interest provided on Debentures to be allowable on crystallisation of liability Expenses allowable on payment basis Depreciation Provision for doubtful advances Provision for standard assets Total Deferred Tax Assets Deferred Tax Liabilities Unrealised Gain on Index Options Total Deferred Tax Liability Net Deferred Tax Asset 1,341.28 20.61 34.97 451.05 66.59 1,914.49 376.89 376.89 1,537.60 (` in lakhs) As at 31st March 2010 815.46 13.04 38.78 34.84 8.30 910.42 225.24 225.24 685.18 31.08 (31.08) 10.19 2010 16.83 (16.83) 1.12 2009 14.99 (14.99) (2.66) 2008 12.84 (12.84) 1.99 2007 15.22 (15.22) (12.53)
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5.
Investments: The Company has purchased and sold during the year the following Investments 31st March 2011 Quantity Mutual Funds Kotak Floater (Long Term) Growth Kotak Liquid (Institutional Premium) Growth Equity Shares Aban Offshore Limited Apollo Tyres Limited Ashok Leyland Limited Asian Paints Limited Areva T&D India Limted Axis Bank Limited Banco Products (I) Limited BGR Energy Systems Limited Bharati Airtel Limited Bharat Heavy Electricals Limited Cadila Healthcare Limited Cairn India Limited Cummins India Limited Dishman Pharmaceuticals & Chemicals Limited Deccan Chronicle Holdings Limited Educomp Solutions Limited Everest Kanto Cylinder Limited Exide Industries Limited Gail (India) Limited Godrej Consumer Products Limited Godrej Industries Limited HDFC Bank Limited Hexaware Technologies Limited Hindustan Construction Company Limited ICICI Bank Limited IDFC Limited Infosys Technologies Limited IRB Infra Development Limited ITC Limited IVRCL Infrastructure limited Jain Irrigation Systems Limited Jaiprakash Associates Limited Jubiliant Foodworks Limited KPIT Cummins Infosystems Limited Larsen & Toubro Limted Mahindra & Mahindra Limited Manappuram General Finance & Leasing Limited Maruti Suzuki India Limited Mindtree Limited 15,000 450,000 100,000 8,892 121,998 40,000 20,500 54,000 20,000 111,508 50,000 63,177 7,500 100,000 400,000 40,000 19,000 91,015 125,000 305,000 250,000 5,000 100,000 39,273 40,000 50,000 15,000 10,000 116.26 306.57 61.73 231.85 136.21 322.11 429.62 171.69 152.33 67.49 287.49 278.96 151.73 84.27 250.44 404.57 581.04 263.41 195.25 363.75 229.91 25.39 148.12 663.56 283.94 72.75 182.70 54.44 55,000 46,000 20,000 240,092 132,860 17,465 65,000 20,000 40,000 100,000 35,000 100,000 257,000 50,000 84,000 135,000 13,000 190,000 158,855 74,625 163.34 461.88 102.77 1,046.85 2,882.67 121.08 181.93 45.82 81.51 114.35 77.69 210.60 2,062.42 70.82 1,999.23 301.08 103.04 337.63 2,275.14 1,091.40 787,288,987 3,360,390,219 118,759.99 966,932,812 138,415.94 275,650.56 645,700.00 1,500,252,556 (` in lakhs) 31st March 2010 Quantity (` in lakhs)
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31st March 2011 Quantity Navbharat Ventures Limited NTPC Limited Oil And Natural Gas Corporation Limited Onmobile Global Limited Oracle Fin Services Software Limited Orient Paper & Industries Limited Patel Engineering Limited Persistent Systems Limited Power Finance Corporation Limited Punj Lloyd Limited Punjab National Bank Ranbaxy Laboratories Limited Reliance Industries Limited Rural Electrification Corporation Limited Shriram Transport Finance Limited Spicejet Limited Sterlite Industries (India) Limited Sterlite Technologies Limited Suzlon Energy Limited State Bank Of India Tata Power Company Limited Tata Consultancy Services Limited Tata Global Beverages Limited Tata Motors Limited Tata Steel Limited TechPro Systems Limited The Indian Hotel Company Limited Torrent Pharma Limited Voltas Limited Welspun Corporation Limited (b) Quantitative information in respect of trading in equity shares: Description 31st March 2011 Quantity Opening Stock Add : Purchases Less : Sales Closing Stock NIL 30,000 30,000 NIL (` In lakhs) NIL 134.16 134.09 NIL 10,000 101,991 9,217 10,000 79,000 45,000 20,000 150,000 100,000 190,000 200,000 60,500 105,000 35,000 175,449 40,000 100,000 8,701 65,000 55,000 (` in lakhs) 35.91 321.86 37.40 113.03 754.00 109.34 149.88 61.05 152.65 188.95 91.33 683.88 102.02 396.45 1,070.24 95.34 103.40 47.66 102.66 140.87
31st March 2010 Quantity 117,678 173,758 24,055 43,000 125,000 10,995 38,210 25,000 144,000 599,977 112,131 17,000 (` in lakhs) 261.03 1,966.37 97.22 951.62 67.43 52.63 86.97 122.29 2,177.38 1,217.95 2,200.43 216.06
31st March 2010 Quantity NIL 63,535 63,535 NIL (` In lakhs) NIL 800.64 819.61 NIL
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6.
Managerial remuneration under section 198 of the Companies Act, 1956 to the Manager for the year: (` in lakhs) As at 31st March 2011 Salaries and Allowances Contribution to Provident and Other Funds Employees Stock Option Plan (Refer Note No.7) Stock Appreciation Rights (Refer Note No.7) Total 77.81 2.59 6.69 11.91 99.00 As at 31st March 2010 39.40 2.16 11.79 53.35
Provision for Gratuity benefits and Accumulated Compensated Absences, which are based on actuarial valuation, done on an overall basis for the Company is excluded in the remuneration shown above. 7. Employee Share Based Payments : A) Equity Settled Options : At the General Meetings of the holding company, Kotak Mahindra Bank Limited, the shareholders of the Bank had unanimously passed Special Resolutions on 28th July, 2000, 26th July, 2004 & 26th July, 2005, 5th July,2007 and 21st August,2007, to grant options to the Eligible Employees of the Bank and its subsidiaries companies. Pursuant to these resolutions, the following four Employees Stock Option Schemes had been formulated and adopted: a) b) c) d) Kotak Mahindra Equity Option Scheme 2001-02 Kotak Mahindra Equity Option Scheme 2002-03 Kotak Mahindra Equity Option Scheme 2005 Kotak Mahindra Equity Option Scheme 2007
In accordance with SEBI (Employees Stock Option Scheme and Employee Stock Purchase) Guidelines, 1999 and the guidance note on Accounting for Employee Share-based Payments issued by the Institute of Chartered Accountants of India, the excess, if any, of the market price of share preceding the date of grant of the option under ESOPs over the exercise price of option is amortised on a straight-line basis over the vesting period. The Company has reimbursed the Bank ` 8.95 lakhs (Previous year ` 12.47 lakhs) during the year on account of such cost and the same is forming part of employee cost and included under the head Salaries, Allowances and Bonus B) Cash Settled Scheme : During the year, the management had approved Stock appreciation rights (SARs) of the holding company to be granted to eligible employees as and when deemed fit. The SARs are to be settled in cash and will vest in the manner as provided in the scheme / grant letters to employees. The contractual life (which is equivalent to the vesting period) of the SARs ranges from 0.465 year to 1.384 years. Detail of activity under each SARs is summarized below: Year Ended 31st March 2011* Outstanding at the beginning of the year Granted during the year Exercised during the year Expired during the year Forfeited during the year Outstanding at the end of the year 6,220 2,820 580 2,820 (` in lakhs) Year Ended 31st March 2010*
*The number of SARs have been adjusted for split of the underlying equity shares from ` 10 paid up to ` 5 paid up per share Effect of grant of employee based shared payments to employees on the profit and loss account and on its financial position : (` in lakhs) Year ended 31st March 2011 Total Employee Compensation Cost pertaining to employee share based payment Closing balance of liability for cash - settled scheme 30.61 7.64 Year ended 31st March 2010 12.47 NIL
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Had the company recorded the compensation cost computed on the basis of fair valuation method instead of intrinsic value method, employee compensation cost would have been higher by ` 21.73 lakhs (Previous year ` 39.95 lakhs) and the profit after tax would have been lower by ` 13.89 lakhs (Previous year ` 27.64 Lakhs). Consequently the basic and diluted EPS would have been ` 78.22 (Previous year ` 112.73) 8. Earnings Per Share (EPS) the numerators and denominators used to calculate Basic and Diluted Earnings Per Share: Particulars Profit attributable to the Equity Shareholders (` in lakhs) (A) Basic number of equity shares outstanding during the year (B) Nominal value of Equity Shares (`) Basic & Diluted Earnings per share (`) (A) / (B) 9. 10. 31st March 2011 2,399.84 30,50,280 10 78.68 31st March 2010 3,466.24 30,50,280 10 113.64
Rent Payments to holding / fellow subsidiary company for sharing of premises are recognized in Profit and Loss Account under the head Rent Expenses ` 62.64 lakhs (P.Y. ` 52.66 lakhs ) . Details of Non Performing Financial Assets purchased: 31st March 2011 No. of Accounts purchased during the year Aggregate Outstanding (` in lakhs) 1 3,145.30 31st March 2010 NIL 182.78
11.
The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been given. The Capital to Risk Assets Ratio (CRAR) for the Company is as follows : Items i) CRAR (%) ii) CRAR Tier I Capital (%) iii) CRAR Tier II Capital (%) 31st March 2011 25.62% 25.62% 0.00% 31st March 2010 31.33% 31.33% 0.00%
12.
13.
Exposures to Real Estate Sector (` in lakhs) Category a) Direct exposure i. Residential Mortgages Lending fully secured by mortgages on residential property that is or will be occupied by the borrower or that is rented; (Individual housing loans up to `15 lakh may be shown separately) ii Commercial Real Estate Lending secured by mortgages on commercial real estates (office buildings, retail space, multipurpose commercial premises, multi-family residential buildings, multi-tenanted commercial premises, industrial or warehouse space, hotels, land acquisition, development and construction, etc.). Exposure would also include non-fund based (NFB) limits; iii. Investments in Mortgage Backed Securities (MBS) and other securitised exposures a. Residential, b. Commercial Real Estate. b) Indirect Exposure Fund based and nonfund based exposures on National Housing Bank (NHB) and Housing Finance Companies (HFCs) NIL NIL NIL NIL NIL NIL 2010-11 2009-10
NIL
NIL
2,975.31
NIL
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14.
Asset Liability Management Maturity Pattern of certain items of assets and liabilities (` in lakhs) 1 day to 30/31 day (one month) Liabilities Borrowings from banks Market borrowings Assets Advances * Investments 15,822.78 NIL 12,093.95 NIL 12,603.69 NIL 20,610.58 NIL 20,267.03 NIL 1,318.48 NIL 150.00 NIL NIL 82,866.52 5,543.21 5,543.21 NIL 13,766.29 NIL 8,488.09 NIL 8,408.27 NIL 19,818.42 NIL 19,558.13 NIL 1,723.14 NIL NIL NIL NIL NIL 71.762.34 Over one months to 2 months Over 2 months upto 3 months Over 3 months to 6 months Over 6 months to 1 year Over 1 year to 3 years Over 3 years to 5 years Over 5 years Total
* Maturity Pattern of Overdraft Advances is estimated based on trends of past utilization. 15. Segment Reporting: In accordance with Accounting Standard 17 on Segment Reporting issued by the Institute of Chartered Accountants of India, the Company has determined the following segments with principal activities as under: Segment Lending Treasury and Investments Principal Activity Financing against securities, Purchasing of Non-performing assets Borrowings, Derivatives and Investments
Since the business operations of the Company are concentrated in India, the Company is considered to operate only in the domestic segment. Summary of the segments of the company are : (` in lakhs) Segment Revenue Lending Treasury and Investments Total Segment Results Lending Treasury and Investments Total Less: Unallocable expenditure Total profit before tax Segment Assets Lending Treasury and Investments 80,304.86 22,138.29 102,443.15 Less: Inter-segment Assets Total Segment Liabilities Lending Treasury and Investments 507.20 78,600.45 79,107.65 297.79 57,844.78 58,142.57 7,719.79 94,723.34 65,195.32 14,588.49 79,783.81 11,271.97 68,511.84 2,207.83 1,134.61 3,342.44 (21.97) 3,320.47 2,547.48 2,319.18 4,866.66 (24.33) 4,842.32 2010-11 10,921.38 1,607.01 12,528.39 2009-10 6,716.77 2,681.92 9,398.69
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Less: Inter-segment Liabilities Total Unallocated Assets net of liabilities Capital Expenditur Lending Treasury and Investments Total Depreciation Lending Treasury and Investments Total 16. Related Party Disclosures: A. Related Parties where control exists: Nature of relationship Holding Company Related Party
7,719.79 71,387.84 2,097.73
11,271.97 46,870.60 1,392.15
6.35 6.35
12.41 12.41
10.40 0.26 10.67
9.83 14.09 23.93
Kotak Mahindra Bank Limited (KMBL) (Holds 100% of the equity share capital) Uday S. Kotak along with relatives and entities controlled by him holds 45.56% (P.Y. 48.21%) of the equity share capital of Kotak Mahindra Bank Limited as on 31st March 2011.
B.
Other Related Parties: (i) Fellow Subsidiaries: Kotak Securities Limited Kotak Mahindra Prime Limited Kotak Mahindra Asset Management Company Limited Kotak Mahindra Trustee Company Limited Kotak Investment Advisors Limited. Kotak Mahindra Pension Fund Limited Kotak Forex Brokerage Limited Kotak Mahindra Old Mutual Life Insurance Ltd. (ii) Key Management personnel: Sachin Samant, Manager Matrix Business Services India Private Ltd. Phoenix ARC Private Limited ACE Derivatives & Commodity Exchange Ltd.
(iii) Associate Company (iv) Enterprises over which the Company/directors have significant influence: (v) Mutual Fund managed by Fellow Subsidiary (vi) Venture Capital / Private Trust Funds managed by the Fellow Subsidiary
Kotak Mahindra Mutual Fund managed by Kotak Mahindra Asset Management Company Limited Kotak India Realty Fund Ltd. Kotak India Real Estate Fund - I India Growth Fund Kotak Alternate Oppurtunities (India) Fund Kotak India Growth Fund -II
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The following transactions were carried out with the related parties in the ordinary course of business : Nature of Transaction Holding Fellow Key Company Subsidiaries Management Personnel Associate Company Enterprises Mutual Venture over which managed by Capital/ Company/ Fellow Private Trust Directors have Subsidiary/ Funds significant Holding managed by influence Company the Fellow Subsidiary
(` in lakhs) Total
Debentures issued Kotak Investment Advisors Limited Debentures redeemed Kotak Mahindra Trustee Company Limited Interest paid on Debentures Kotak Mahindra Trustee Company Limited Kotak Investment Advisors Limited Kotak Securities Limited Inter Corporate Deposits placed Kotak Forex Brokerage Limited Inter Corporate Deposits received back Kotak Forex Brokerage Limited Interest received on ICDs Kotak Forex Brokerage Limited Interest received on Deposits Kotak Securities Ltd. Term Deposits placed Term Deposits withdrawn Interest received on Term Deposits 21,816.09 (15,325.03) 13,294.84 (21,728.29) 878.83 (757.03)
2,500.00 () 2,500.00 () 1,450.00 () 1,450.00 () 193.84 (123.25) 111.43 (123.25) 77.90 () 4.51 () (1,800.00) (1,800.00) (1,800.00) (1,800.00) (5.33) (5.33) (11.42) (11.42)
2,500.00 () 2,500.00 () 1,450.00 () 1,450.00 () 193.84 (123.25) 111.43 (123.25) 77.90 () 4.51 () (1,800.00) (1,800.00) (1,800.00) (1,800.00) (5.33) (5.33) (11.42) (11.42) 21,816.09 (15,325.03) 13,294.84 (21,728.29) 878.83 (757.03)
OUTSTANDINGS
Debentures Kotak Mahindra Trustee Company Limited 2,500.00 (1,450.00) (1,450.00) 2,500.00 (1,450.00) (1,450.00) Its grt 2b 25
31
(` in lakhs) Nature of Transaction Holding Fellow Key Company Subsidiaries Management Personnel Associate Company Mutual Venture Enterprises over which managed by Capital/ Company/ Fellow Private Trust Directors have Subsidiary/ Funds significant Holding managed by influence Company the Fellow Subsidiary Total
Kotak Securities Limited Interest payable on Debentures Kotak Mahindra Trustee Company Limited Kotak Securities Limited Term Deposits placed Interest receivable on Term Deposits placed Balance in Current Account Demat Charges Payable 13,766.49 (5,255.23) 79.60 (48.58) 781.97 (3,774.02) 0.21 (0.09)
2,500.00 () 74.17 (410.77) (410.77) 74.17 ()
2,500.00 () 74.17 (410.77) (410.77) 74.17 () 13,766.49 (5,255.23) 79.60 (48.58) 781.97 (3,774.02) 0.21 (0.09)
INVESTMENTS
Purchases Kotak Mahindra Prime Limited India Growth Fund Kotak India Venture Fund Kotak Alternate Oppurtunities Fund Phoenix ARC Pvt Ltd Sales India Growth Fund Kotak India Real Estate Fund I Debentures sold Equity shares sold Kotak Investment Advisors Ltd (1,641.87) (29.74) (29.74) (1,193.20) 58.71 () 56.61 () 2.10 () 99.00 () 99.00 () 7.88 (15.75) 38.01 () 2.50 (2.80) (1,193.20) 48.39 (18.55) 147.39 (1,211.75) 99.00 () 7.88 (15.75) 38.01 () 2.50 (2.80) (1,193.20) 58.71 () 56.61 () 2.10 () (1,641.87) (29.74) (29.74)
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(` in lakhs) Nature of Transaction Holding Fellow Key Company Subsidiaries Management Personnel Associate Company Mutual Venture Enterprises over which managed by Capital/ Company/ Fellow Private Trust Directors have Subsidiary/ Funds significant Holding managed by influence Company the Fellow Subsidiary 2,094.00 (1,995.00) 99.00 () 755.91 (504.63) 5.00 (5.00) 493.01 (355.00) 10.00 (7.50) 2.90 (5.00) 1,995.00 (1,995.00) 336.54 (336.54) (61.86) (61.86) (54.97) (54.97) 1,266.82 (877.13) Total
Investments Gross ACE Derivative and Commodity Exchange Ltd. India Growth Fund Kotak India Growth FundII Kotak India Venture Fund Kotak Alternate Oppurtunities Fund Kotak India Real Estate Fund Phoenix ARC Pvt Ltd Matrix Business Services India Private Ltd Diminution in Investments India Growth Fund Interest received on Debentures Kotak Mahindra Prime Limited
336.54 (336.54)
3,697.36 (3,208.67) 99.00 () 755.91 (504.63) 5.00 (5.00) 493.01 (355.00) 10.00 (7.50) 2.90 (5.00) 1,995.00 (1,995.00) 336.54 (336.54) (61.86) (61.86) (54.97) (54.97)
MUTUAL FUND UNITS

Kotak Mahindra Mutual Fund: Purchases Sales Profit on Sale of Mutual Fund 764,459.99 (414,066.50) 764,909.64 (414,187.36) 449.66 (120.86) 764,459.99 (414,066.50) 764,909.64 (414,187.36) 449.66 (120.86)
OTHER SECURITIES
Purchases Kotak Securities Limited Sales Kotak Securities Limited 70,833.07 (72,468.75) 70,833.07 (72,468.75) 68,371.99 (77,075.54) 68,371.99 (77,075.54) 70,833.07 (72,468.75) 70,833.07 (72,468.75) 68,371.99 (77,075.54) 68,371.99 (77,075.54) Its grt 2b 25
33
(` in lakhs) Nature of Transaction Holding Fellow Key Company Subsidiaries Management Personnel Associate Company Enterprises Mutual Venture over which managed by Capital/ Company/ Fellow Private Trust Directors have Subsidiary/ Funds significant Holding managed by influence Company the Fellow Subsidiary Total
Outstanding Receivable Kotak Securities Limited
825.23 (974.17) 825.23 (974.17)
825.23 (974.17) 825.23 (974.17)
OTHER RECEIPTS & PAYMENTS

Service Charges Received Kotak Mahindra Pension Fund Ltd. Kotak Mahindra Prime Ltd. Service Charges Paid Kotak Securities Ltd. Expense reimbursement to other company Kotak Mahindra Prime Limited Kotak Securities Ltd Expense reimbursement from other company Kotak Mahindra Prime Limited Kotak Investment Advisors Ltd Kotak Securities Ltd Asset Transfer to other Company Kotak Investment Advisors Ltd Asset Transfer from other Company Kotak Securities Ltd Kotak Mahindra Prime Limited Licence Fees paid Kotak Securities Ltd 60.45 (51.55) (1.23) (9.76) 243.62 (183.62) 8.12 (16.47) 15.00 (14.35) 0.60 (1.10) 14.40 (13.25) 6.00 (6.00) 6.00 (6.00) 4.86 (0.57) 0.07 (0.10) 4.79 (0.47) 3.34 (260.69) 1.67 (1.67) (257.35) 1.67 (1.67) 3.64 (3.71) 3.64 (3.71) 549.57 () 3.02 () 546.55 () 2.19 (2.47) 2.19 (2.47) 15.00 (14.35) 0.60 (1.10) 14.40 (13.25) 14.12 (22.47) 6.00 (6.00) 248.48 (184.19) 0.07 (0.10) 4.79 (0.47) 3.34 (270.45) 1.67 (1.67) (257.35) 1.67 (1.67) 3.64 (4.94) 3.64 (3.71) 549.57 () 3.02 () 546.55 () 62.64 (54.02) 2.19 (2.47)
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(` in lakhs) Nature of Transaction Holding Fellow Key Company Subsidiaries Management Personnel Associate Company Mutual Venture Enterprises over which managed by Capital/ Company/ Fellow Private Trust Directors have Subsidiary/ Funds significant Holding managed by influence Company the Fellow Subsidiary Total
Demat Charges paid Kotak Securities Limited IPA Fees paid Bank Charges Brokerage paid Kotak Securities Limited Kotak Mahindra Prime Limited Insurance Premium Paid Kotak Mahindra Old Mutual Life Insurance Ltd Outstandings Payable Kotak Securities Limited Outstandings Receivable Kotak Securities Limited Kotak Investment Advisors Ltd Remuneration* Sachin Samant
0.82 (0.92)
0.27 (0.27) 0.27 (0.27)
1.09 (1.19) 0.27 (0.27) 1.00 () 0.11 (0.08)
1.00 () 0.11 (0.08) 147.20 (175.96) 146.85 (175.96) 0.35 () (0.23) (0.23) 16.26 (4.16) 0.01 (0.01) 0.01 (0.01) 3.02 (2.52) 3.02 () (2.52) 99.00 (53.35) 99.00 (53.35)
147.20 (175.96) 146.85 (175.96) 0.35 () (0.23) (0.23) 16.27 (4.17) 0.01 (0.01) 3.02 (2.52) 3.02 (2.52) 99.00 (53.35) 99.00 (53.35)
*Excludes provision for gratuity and accumulated compensated absences Figures in bracket indicates previous year figures
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17.
Schedule in terms of paragraph 9BB of Non Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998. Particulars Liabilities Side 1. Loans and advances availed by the NBFCs inclusive of interest accrued thereon but not paid: (a) Debentures: Secured Unsecured (other than falling within the meaning of public deposits *) (b) (c) (d) (e) (f) (g) Deferred Credits Terms Loans Inter-corporate loans and borrowing Commercial Paper Public Deposits * Other Loans (specify nature) * Please see Note a) below 2. Break-up of (1) (f) above (Outstanding public deposits inclusive of interest accrued thereon but not paid): (a) (b) (c) In the form of unsecured debentures: In the form of partly unsecured debentures: Other public deposits * Please see Note a) below Amount Outstanding Assets Side 3. Break-up of Loans and Advances including bills receivables (other than those included in (4) below: (a) (b) 4. Secured Unsecured 77,271.74 4,930.32 (` in lakhs) NIL NIL NIL NIL NIL NIL NIL 25.00 NIL 26,090.68 NIL NIL NIL NIL NIL NIL NIL NIL 52,432.92 NIL NIL Amount Outstanding (` in lakhs) Amount Overdue (` In lakhs)
Break-up of Leased Assets and stock on hire and hypothecation loans counting towards EL / HP activities (i) Leased Assets including lease rentals under sundry debtors (a) Financial Lease (b) Operating Lease (ii) Stock on hire including hire charges under sundry debtors (a) Assets on hire (b) Repossessed Assets (iii) Hypothecation loans counting towards EL / HP activities (a) Loans where assets have been repossessed (b) Loans other than (a) above NIL NIL NIL NIL NIL NIL
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5.
Break-up of Investments: Current Investments: 1. (i) (ii) (iii) (iv) (v) 2. (i) (ii) (iii) (iv) (v) Long Term Investments: 1. (i) (ii) (iii) (iv) (v) 2. (i) (ii) (iii) (iv) (v) Quoted: Shares: Debentures and Bonds Units of Mutual Funds Government Securities Others (please specify) Unquoted: Shares: Debentures and Bonds Units of Mutual Funds Government Securities Others - Units of Venture Capital Fund / Pvt. Trust Fund Borrower group-wise classification of all leased assets, stock-on-hire and loans and advances: Please see Note b) below Category Secured Amount Net of provisions Unsecured NIL 908.00 NIL 4,022.32 4,930.32 Total NIL 908.00 NIL 81,294.05 82,202.05 (a) Equity (b) Preference 2,799.89 175.00 NIL NIL NIL 1,266.83 (a) Equity (b) Preference 901.50 NIL NIL 400.00 NIL NIL Quoted: Shares: Debentures and Bonds Units of Mutual Funds Government Securities Others (please specify) Unquoted: Shares: Debentures and Bonds Units of Mutual Funds Government Securities Others (please specify) (a) Equity (b) Preference NIL NIL NIL NIL NIL NIL (a) Equity (b) Preference NIL NIL NIL NIL NIL NIL
6.
1.
Related Parties ** (a) (b) (c) Subsidiaries Companies in the same group Other related parties NIL NIL NIL 77,271.74 77,271.74
2.
Other Than Related Parties Total
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7.
Investor group-wise classification of all investments (current and long term) in the shares and securities (both quoted and unquoted): Please see Note c) below Category Amount Net of provisions Market Value / Break up or fair value or NAV Book Value (Net of Provisions) NIL NIL 3,697.37 1,845.84 5,543.21
1.
Related Parties ** (a) (b) (c) Subsidiaries Companies in the same group Other related parties NIL NIL 3,697.37 1,869.59 5,566.96 ** As per Accounting Standard of ICAI (Please see Note 3)
2.
Other than related Parties Total
8. (i)
Other information: Particulars Gross NonPerforming Assets (a) (b) Related parties Other than related parties Related parties Other than related parties NIL 1,415.18 NIL 25.00 NIL Amount
(ii)
Net NonPerforming Assets (a) (b)
(iii) Notes: a) b) c)
Assets acquired in satisfaction of debt
As defined in Paragraph 2(1) (xii) of the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998. Provisioning norms shall be applicable as prescribed in the Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998. All Accounting Standards and Guidance Notes issued by ICAI are applicable including for valuation of investments and other assets as also assets acquired in satisfaction of debt. However, market value in respect of quoted investments and break up/fair value/ NAV in respect of unquoted investments should be disclosed irrespective of whether they are classified as long term or current in column (5) above.
18.
Previous years figures have been regrouped / reclassified wherever necessary to conform to figures of the current period.
As per our attached report of even date For V. C. Shah & Co. Chartered Accountants V. C. Shah Partner Membership No. 10360 Mumbai, 26th April 2011 For and on behalf of the Board of Directors
C. Jayaram Director
38
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Reports
Additional information pursuant to Part IV of Schedule V of the Companies Act , 1956

I. Registration Details Registration No. Balance Sheet Date II. 3 1 3 4 7 9 8 6 2 0 1 1 State Code 1 1
Capital raised during the year: (Amount in ` in Lakhs) Public Issue N Bonus Issue N I L I L Rights Issue N Private Placement N I L I L
III.
Position of mobilisation and deployment of funds: (Amount in ` in Lakhs) Total Liabilities 9 7 1 9 6 Source of Funds Paid-up Capital 3 0 5 Secured Loans 4 5 6 7 2 Application of Funds Net Fixed Assets 2 5 Net Current Assets 9 0 0 9 0 Accumulated Losses N I L Deferred Tax 1 5 3 8 Investments 5 5 4 3 Miscellaneous Expenditure N I L Reserves and Surplus 2 5 1 2 8 Unsecured Loans 2 6 0 9 1 Total Assets 9 7 1 9 6
IV.
Performance of Company: (Amount in ` in Lakhs) Turnover 1 2 5 2 8 Profit before Tax 3 3 2 0 Earnings per Share (in `) (Basic) 7 8 . 6 8 Total Expenditure 9 1 9 8
Profit after Tax 2 4 0 0 Earnings per Share (in `) (Diluted) 7 8 . 6 8
Dividend Rate (%) N V. I L
Item Code No.
Generic names of three principal products, services of the Company (As per monetary terms): N A L E N D I N G & I N V E S T M E N T
Product Description
For and on behalf of the Board of Directors C. Jayaram Director Mumbai, 26th April 2011 Jaimin Bhatt Director N. R. Subramanian Sr. Vice President (Finance & Operations) Its grt 2b 25
39
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KOTAK MAHINDRA ASSET MANAGEMENT COMPANY LIMITED
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BOARD OF DIRECTORS : MR. UDAY KOTAK, MR. ROMESH C. KHANNA, MR. BIPIN SHAH, MR. C. JAYARAM, MR. SUKANT KELKAR, MR. GAURANG SHAH
Directors Report
To the Members of KOTAK MAHINDRA ASSET MANAGEMENT COMPANY LIMITED The Directors present their Seventeenth Annual Report together with the audited accounts of your Company for the year ended 31st March 2011. FINANCIAL RESULTS The financial results of the company for the year ended 31st March 2011 is as under : (` In Lakhs) ` 2010 - 2011 Gross income Profit before Depreciation and Tax Depreciation Profit before Tax Profit after Tax Balance of Profit from previous years Amount available for appropriation Appropriations Dividend on Preference Shares Dividend on Equity Shares Corporate Dividend Tax thereon Transfer to General Reserves Surplus carried forward to the Balance Sheet 72.25 693.00 124.14 106.25 2,637.23 72.25 3960.00 674.29 656.00 2570.87 10,811.06 1,721.87 253.84 1,468.03 1,062.00 2,570.87 3,632.87 2009 - 2010 17,548.26 10,108.37 203.18 9,905.19 6,551.45 1,381.96 7,933.41
The revenue of the company reduced during the year largely on account of a 13% reduction in the average assets under management and accompanied by a reduction in the management fee charged. The management fee charged were lower largely on account of the shift in the investors preference towards FMPs, wherein the levels of management fees are generally lower and also lower fees charged on other debt products as compared to the previous year. DIVIDEND Your Directors recommend a dividend on the preference shares at the coupon rate i.e. 8.5% the financial year ended on 31st March 2011. Your Directors also recommend a dividend of ` 3.50 per equity share. This will entail an outgo of ` 8,89,39,269 (including dividend distribution tax of ` 1,24,14,269) CAPITAL The Authorized Share Capital of the Company is ` 35 crores, divided into 2,50,00,000 Equity Shares of ` 10 each and 1,00,00,000 Preference Shares of ` 10 each. There was no change in the Capital Structure of the Company during the year. MANAGEMENT DISCUSSION AND ANALYSIS Market related developments affecting the Schemes of the Mutual Fund The financial year 2010-2011 which started well with the economys strong growth momentum driven by strong consumption growth, saw a plethora of domestic & global events acting as hindrance to growth. Inflation raised its ugly head since the beginning of the year itself at double digits, and consequentially RBI raised policy rates regularly to tame it. However, inflation still remains a cause for concern. Governance issues at the centre also had a sentimental impact on the markets. Global factors such as political unrest in the Middle East & the tsunami in Japan also added to market worries. Nonetheless, Indian equities were able to attract net FII inflow for FY-11 to the tune of US $ 24.29 billion. The union budget 2011-12 focused on condusive investment climate, inclusive growth, education, good governance standards & fiscal prudence. One important change which could effect our industry is the parity in dividend distribution tax for all debt schemes for corporate investors w.e.f 01st June 2011, bringing it in line with bank fixed deposits. Allowing FIIs and foreign nationals to invest directly into Indian Mutual Funds giving it an entire new customer base was a positive step. Its grt 2b 25
The financial year 2011 began on a positive note for the fixed income segment with a liquidity overhang in the money markets. In April-May 2010, short term yields such as 3 month Bank CDs, fell to a low of around 4.5%. But, the telecom auction saw outflow of over ` 1 lakh crores which led to liquidity tightness resulting in large scale redemption from money market schemes. This occurred when inflation too was on the upswing. The yields at the shorter end went up by 400 to 500 bps during the financial year The debt market represented by the 10 year benchmark bond yield remained volatile throughout the year. Starting the year at 7.83%, the 10 year benchmark bond closed at 7.99% on 31st March 2011 before making an interim high of 8.25%.Similarly, the BSE Sensex also saw a high of 21004 and a low of 16022 before closing the year at 19445. There were a few changes in the regulation pertaining to the mutual fund industry during FY-11; the highlights of such changes are as given below: Listing of Interval schemes For all Interval schemes/plans, SEBI has mandated that they be compulsorily listed and no redemption will be allowed except the specified transaction period. It also stated that Investments shall be permitted only in such securities which mature on or before the opening of the immediately following specified transaction period. Consolidation or merger of schemes SEBI in an attempt to consolidate similar fund mandates and reduce clutter had decided that merger or consolidation shall not be seen as change in fundamental attribute of the surviving scheme if mutual funds are able to demonstrate that the circumstances merit merger. Additional mode of payment through ASBA(Applications Supported by Blocked amount) in mutual funds Through this circular, SEBI mandated mutual fund houses to provide ASBA facility to investors for all NFOs launched on or after 01st October 2010. Valuation of Debt & Money market instruments with effect from 01st August 2010 SEBI mandated mutual funds to value money market & debt securities with residual maturity of over 91 (from the extant 182 days) days at the weighted average price at which they were traded on a particular day or when such securities are not traded, they shall be valued at benchmark yield / matrix of spread over risk free benchmark yield obtained from agencies entrusted for the said purpose by AMFI. This led to increased transparency in valuation of debt mutual funds. Mutual Fund Industry developments and segment wise performance: The total industry AUM (Assets Under Management) fell from ` 6,13,979 crores in March 2010 to ` 5, 92,250 crores in March 2011, fall of 3.54% in FY-11. During the same period, AUM with Kotak Mahindra Asset Management Company increased 1.59% i.e. from ` 24071.19 crores in March 2010 to 24,454.93 crores in March 2011. Equity schemes in the industry saw a net outflow of ` 11,795 crores for the FY-11 as markets remained volatile. With its focus on SIP Investments, Kotak Mahindra Asset Management Company saw its live SIP accounts increase from 1,01,088 in March 2010 to 1,14,592 accounts in March 2011. Mutual funds continue to be the cheapest vehicle for accessing capital markets. The issue is about reaching the investors in a most cost effective manner. The distribution in that sense is extremely important. The distribution is also trying to realign its business models in line with the new regulatory pattern introduced with the abolition of entry loads in FY-2010. The industry on its part is undertaking all India investor awareness programs in a standard format. A total of 5817 programs were done pan India covering about 340,383 Investors. While we at Kotak have undertaken about 653 investor meets covering about 19,862 investors. During the year under review, FMPs as an industry gained in size due to attractive interest rates from the investor point of view. AUM of Close ended Income schemes & Interval schemes (majority of which are FMPs), in the industry, increased from ` 56,923 crores in March 2010 to ` 1,38,754 crores in March 2011 forming around 23% of the total AUM in the Industry. During the year, Kotak Flexi Debt, Kotak Liquid Institutional Premium Plan & Kotak Gilt were awarded 5 Star ranking over three years by Value Research. Also, Kotak Flexi Debt & Kotak Floater Long Term have been ranked 7 star and have been awarded the Gold Award for Best Performance in the category of Open Ended Ultra Short Term-IP and Open Ended Floating Rate Fund respectively for one year period ending 31st December 2010. Kotak Bond Regular has been awarded most Consistent Performer (based on the annual performance of the past 10 years) in the NDTV Profit Mutual Fund Awards 2010. Certain statements in the Management Discussion and Analysis section may be forward-looking and are stated as may be required by applicable laws and regulations. Many factors may affect the actual results, which could be different from what the Directors envisage in terms of future performance and outlook. Your Company does not undertake to update these statements.
Kotak Mahindra Asset Management Company Limited Annual Report 2010-11
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New Schemes launched during 2010-2011 Other than FMPs two new products were launched successfully in FY-11 namely Kotak Credit Opportunities Fund and Kotak Multi Asset Allocation Fund, garnering ` 361.19 crores and ` 160.89 crores respectively. Kotak Multi Asset Allocation as the name suggests is a hybrid fund with asset allocation across 3 asset classes viz. Debt, Equity & Gold, allowing investors to take exposure into all the 3 asset classes through investment in a single scheme. SUBSIDIARY Kotak Mahindra Pension Fund Limited (KMPFL), subsidiary of your Company has been selected by the Pension Fund Regulatory and Development Authority for the pension fund management business of the unorganized sector. KMPFL commenced its business on 29th April 2009. KMPFL manages 7 (Seven) schemes and the combined assets under management on 31st March 2011 was ` 330.09 Lakhs. The pension business is currently at a nascent stage of operations and considering this fact along with the low rates of management fees, the revenue generated for the year ended 31st March 2011 is ` 164. KMPFL has made a net loss of ` 57.25 lakhs for the financial year. DIRECTORS During the year, six meetings of the Board of Directors were convened. During the year, Mr. Narayan S. A., resigned as a Director of the Company. The Directors placed on record their sincere appreciation of the valuable service rendered by Mr. Narayan, during his tenure as a Director. Mr. Gaurang Shah, had been appointed as Additional Director on the Board of the Company w.e.f. 1st May 2010. He was confirmed as a Director at the Annual General Meeting held on 10th June 2010. Mr. Uday Kotak retires by rotation at the ensuing Annual General Meeting and being eligible, offers himself for re-appointment. Mr. Sukant Kelkar retires by rotation at the ensuing Annual General Meeting and being eligible, offers himself for re-appointment. AUDIT COMMITTEE Pursuant to Section 292A of the Companies Act, 1956, your Company has constituted an Audit Committee of the Board consisting of Mr. R. C. Khanna, Mr. Uday Kotak, Mr. B. R. Shah and Mr. Sukant Kelkar. Mr. R. C. Khanna, independent Director on the Board, is the Chairman of the Audit Committee. The committee met five times during the year to review accounts, operations and internal controls. APPOINTMENT COMMITTEE As per the directives laid down by Reserve Bank of India (RBI), your company has constituted an Appointment Committee consisting of Mr. Sukant Kelkar, Mr. Bipin Shah and Mr. Gaurang Shah. The Scope of the Committee is to ensure fit & proper status of proposed/existing Directors and Senior Management Personnel of the organization. AUDITORS M/s. S. V. Ghatalia & Associates, Mumbai Statutory Auditors of your Company retire on the conclusion of the Seventeenth Annual General Meeting and are eligible for re-appointment on such remuneration as may be fixed by the Board of the Directors of your Company. STATUTORY INFORMATION A statement giving the information required under Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975, is annexed. During the year under review your Company did not accept any deposits. Your Companys foreign exchange income during the year under review were ` 2,05,75,550 (Previous year ` 3,94,69,925), while the outgo was ` 7,27,604 (Previous year 1,31,233). The other requirements pursuant to the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, do not apply since your Company is not a manufacturing company. EMPLOYEES/HUMAN RESOURCES At the start of the year, your Company had 304 employees on board. While your Company had some attrition, and some fresh intake, the overall headcount has reached 328 persons by the end of the year.
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DIRECTORS RESPONSIBILITY STATEMENT Based on representations from the management, the Directors state, in pursuance of Section 217 (2AA) of the Companies Act, 1956, that: i. Your Company has, in the preparation of the annual accounts for the year ended 31st March 2011, followed the applicable accounting standards along with proper explanations relating to material departures, if any; 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 your Company as at 31st March 2011 and of Profit and Loss of your Company for the financial year ended 31st March 2011; The Directors have taken proper and sufficient care to the best of their knowledge and ability, for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of your Company and for preventing and detecting fraud and other irregularities; and The Directors have prepared the annual accounts on a going concern basis.
ii.
iii.
iv.
ACKNOWLEDGEMENT Your Directors would like to place on record their gratitude for the valuable guidance and support received from the Securities and Exchange Board of India, Reserve Bank of India and other Government and Regulatory agencies. Your Directors acknowledge and wish to place their appreciation of employees for their commendable efforts, teamwork and professionalism.
For and on behalf of the Board of Directors Uday Kotak Chairman Mumbai, 27th April 2011
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Reports
Auditors Report
To the Members of KOTAK MAHINDRA ASSET MANAGEMENT COMPANY LIMITED 1. We have audited the attached balance sheet of Kotak Mahindra Asset Management Company Limited ('the Company') as at 31st March 2011 and also the profit and loss account and the cash flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As required by the Companies (Auditor's Report) Order, 2003 (as amended) issued by the Central Government of India in terms of subsection (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. Further to our comments in the Annexure referred to above, we report that: i. ii. iii. iv. v. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit; In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books; The balance sheet, profit and loss account and cash flow statement dealt with by this report are in agreement with the books of account; In our opinion, the balance sheet, profit and loss account and cash flow statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956; On the basis of the written representations received from the directors, as on 31st March 2011, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956; In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India; a) b) c) in the case of the balance sheet, of the state of affairs of the Company as at 31st March 2011; in the case of the profit and loss account, of the profit for the year ended on that date; and in the case of the cash flow statement, of the cash flows for the year ended on that date.
2.
3.
4.
vi.
For S.V. Ghatalia & Associates Firm Registration Number: 103162W Chartered Accountants per Amit Kabra Partner Membership No.: 094533 Mumbai, 27th April 2011
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Annexure referred to in paragraph 3 of our report of even date Re: Kotak Mahindra Asset Management Company Limited (the Company) (i) (a) (b) (c) (ii) (iii) (iv) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. Fixed assets have been physically verified by the management during the year and no material discrepancies were identified on such verification. There was no substantial disposal of fixed assets during the year.
The Company is an asset management company; therefore, the provisions of clause 4(ii) of the Companies (Auditors Report) Order, 2003 (as amended) related to inventory are not applicable. As informed, the Company has not granted or taken any loans, secured or unsecured to / from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business, for the purchase of fixed assets and provision of services. During the course of our audit, no major weakness has been noticed in the internal control system in respect of this area. During the course of our audit, we have not observed any continuing failure to correct major weakness in internal control system of the Company. According to the information and explanations provided by the management, we are of the opinion that there are no transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956. The Company has not accepted any deposits from the public. In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.
(v) (vi) (vii)
(viii) To the best of our knowledge and as explained, the Central Government has not prescribed maintenance of cost records under clause (d) of sub-section (1) of section 209 of the Companies Act, 1956 for the products of the Company. (ix) (a) Undisputed statutory dues including provident fund, investor education and protection fund, or employees state insurance, incometax, sales-tax, wealth-tax, service tax, customs duty, excise duty, cess and other material statutory dues applicable to it have generally been regularly deposited with the appropriate authorities. Further, since the Central Government has till date not prescribed the amount of cess payable under section 441 A of the Companies Act, 1956, we are not in a position to comment upon the regularity or otherwise of the Company in depositing the same. (b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, investor education and protection fund, employees state insurance, income-tax, wealth-tax, service tax, sales-tax, customs duty, excise duty, cess and other undisputed material statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable. According to the information and explanation given to us, there are no dues of income tax, sales-tax, wealth tax, service tax, customs duty, excise duty and cess which have not been deposited on account of any dispute.
(c) (x) (xi) (xii)
The Company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current and immediately preceding financial year. According to information and explanations given to us and based on our examination of documents and records, the Company has not taken any loans from financial institutions or banks or issued debentures. According to the information and explanations given to us and based on the documents and records produced to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditors Report) Order, 2003 (as amended) are not applicable to the Company. (xiv) In respect of dealing/trading in shares, securities, debentures and other investments, in our opinion and according to the information and explanations given to us, proper records have been maintained of the transactions and contracts and timely entries have been made therein. The shares, securities, debentures and other investments have been held by the Company, in its own name. (xv) According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from bank or financial institutions.
(xvi) The Company did not have any term loans outstanding during the year.
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(xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the Company, we report that no funds raised on short-term basis have been used for long-term investment. (xviii) The Company has not made any preferential allotment of shares to parties or companies covered in the register maintained under section 301 of the Companies Act, 1956. (xix) The Company did not have any outstanding debentures during the year. (xx) The Company has not raised any money by public issues.
(xxi) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit. For S. V. Ghatalia & Associates Firm Registration Number: 103162W Chartered Accountants per Amit Kabra Partner Membership No.: 094533 Mumbai, 27th April 2011
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Schedules SOURCES OF FUNDS Shareholders Funds : Share capital Reserves and Surplus Total 1 2 283,000,000 385,747,464 668,747,464 As at 31st March 2011
(`) As at 31st March 2010
283,000,000 368,486,402 651,486,402
APPLICATION OF FUNDS Fixed Assets Gross Block Less:Accumulated Depreciation Net Block 3 150,958,726 95,534,360 55,424,366 134,275,257 86,091,120 48,184,137
Investments Deferred Tax Asset
358,000,000 22,102,065
108,000,000 14,870,105
Current Assets, Loans and Advances: Sundry debtors Cash and bank balances Loans and advances 5 6 7 87,972,256 348,287,186 119,198,582 555,458,024 Less: Current Liabilities and Provisions : (a) Liabilities (b) Provisions 8 125,253,026 196,983,965 322,236,991 Net Current Assets Total Significant Accounting Policies and Notes to the Accounts 12 233,221,033 668,747,464 217,635,050 357,104,889 574,739,939 480,432,160 651,486,402 100,222,460 918,843,150 36,106,489 1,055,172,099
As per our report of even date For S. V. Ghatalia and Associates Firm Reg. No. 103162W Chartered Accountants per Amit Kabra Partner Membership No.:094533 Mumbai, 27th April 2011 For and on behalf of the Board of Directors
Uday S. Kotak Chairman Hariharan R Manager
R. C. Khanna Director Jolly Bhatt Company Secretary
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Reports
Schedule INCOME Management fees (Gross) (TDS ` 112,648,349 , Previous Year ` 186,099,576) Portfolio Advisory Services (Gross) (TDS ` 1,150,472, Previous Year ` 6,101,923) Dividend Income Other income Total EXPENDITURE Employee costs Administrative and Other expenses Depreciation Total PROFIT BEFORE TAX Provision for taxation: Current Tax (Including Wealth Tax Provision ` 195,000 Previous year ` 150,000) Deferred Tax Income Tax Prior Years Profit after tax Profit brought forward from previous year Profit Available for Appropriation Appropriations Proposed Dividend on Preference Shares Proposed Dividend on Equity Shares Interim Dividend Corporate Dividend Tax Transfer to General Reserve Profit carried to Balance Sheet Basic and Diluted earnings per share of Face value of ` 10 each (in `) (Refer Note III (G) of Schedule 12) Significant Accounting Policies and Notes to the Accounts As per our report of even date For S. V. Ghatalia and Associates Firm Reg. No. 103162W Chartered Accountants per Amit Kabra Partner Membership No.:094533 Mumbai, 27th April 2011 For and on behalf of the Board of Directors 12 7,225,000 69,300,000 12,414,269 10,625,000 263,722,464 5.36 (47,835,000) 7,231,960 106,200,331 257,086,402 363,286,733 10 11 383,914,346 525,004,933 25,383,511 934,302,790 146,803,371 9 27,519,717 7,295,882 1,081,106,161 25,000,000 1,021,290,562
(`) For the Year Ended For the Year Ended 31st March 2011 31st March 2010
1,624,634,491 65,191,901 12,579,400 52,420,368 1,754,826,160
406,408,376 337,581,168 20,317,756 764,307,300 990,518,860
(335,860,000) 2,565,196 (2,079,220) 655,144,836 138,196,063 793,340,899
7,225,000 277,200,000 118,800,000 67,429,497 65,600,000 257,086,402 33.09
R. C. Khanna Director Jolly Bhatt Company Secretary Its grt 2b 25
For the Year Ended 31st March 2011 A) CASH FLOW FROM OPERATING ACTIVITIES Net Profit before taxation and extraordinary items Add / (Less) Adjustments for: Depreciation Provision for gratuity and Leave Encashment Interest on Income tax refund Interest / Dividend (Profit) / Loss on sale of assets 25,383,511 10,087,126 (34,571,215) (1,479,012) 146,803,371
(`) For the Year Ended 31st March 2010
990,518,860
20,317,756 5,407,708 (5,922,402) (12,579,400) (493,313)
OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES (Increase) / Decrease in loans and advances (Increase) / Decrease in Sundry Debtors Increase / (Decrease) in Current liabilities (6,197,987) 12,250,204 (19,957,024)
146,223,781 42,848,884 (5,833,327) 131,354,060 (13,904,807)
997,249,209
168,369,617 1,165,618,826 (256,229,015) 909,389,811
CASH GENERATED FROM OPERATIONS Payment of Taxes (Net of refund) NET CASH FLOW FROM OPERATING ACTIVITIES (A)
132,318,974 (124,636,987) 7,681,987
B) CASH FLOW FROM INVESTING ACTIVITIES Purchase of Fixed assets (owned) Sale of Fixed assets (owned) Purchase of Investments Sale of Investment Interest received Dividend received (34,195,350) 3,050,621 (4,681,529,996) 4,431,529,996 7,051,498 27,519,717 (23,852,799) 1,659,172 4,118,336,965 (4,226,336,965) 12,579,400
NET CASH FLOW FROM INVESTMENT ACTIVITIES (B)
(246,573,514)
(117,614,227)
C) CASH FLOW FROM FINANCING ACTIVITIES Dividend paid Dividend Tax paid NET CASH FLOW FROM FINANCING ACTIVITIES (C) (284,425,000) (47,239,437) (331,664,437) (120,482,534) (20,476,007) (140,958,541)
10
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Reports
For the Year Ended 31st March 2011
NET INCREASE / (DECREASE) IN CASH & CASH EQUIVALENTS (A + B + C)
(570,555,964)
650,817,044
CASH & CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR CASH & CASH EQUIVALENTS AT THE END OF THE YEAR
918,843,150 348,287,186
268,026,106 918,843,150
Note: 1. Cash and cash equivalent include : Bank Balances in Fixed Deposit Bank Balances in Current Account Total cash and cash equivalents 2. 331,000,000 17,287,186 348,287,186 10,900,000 907,943,150 918,843,150
The Cash Flow Statement has been prepared under the Indirect Method as set out in the Accounting Standard - 3 on Cash Flow Statement issued by the Institute of Chartered Accountants of India. The corresponding amounts of previous year have been re-grouped, wherever necessary.
3.
As per our report of even date For S. V. Ghatalia and Associates Firm Reg. No. 103162W Chartered Accountants per Amit Kabra Partner Membership No.:094533 Mumbai, 27th April 2011 For and on behalf of the Board of Directors
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11
Schedules forming part of Balance Sheet

As at 31st March 2011 Schedule 1 - Share Capital Authorised 2,50,00,000 equity shares of `10/- each 1,00,00,000 Preference shares of `10/- each Issued, subscribed and paid-up 19,800,000 (Previous Year 19,800,000) equity shares of `10/- each, fully paid up All the above shares are held by Kotak Mahindra Bank Ltd., the holding company and its nominees. 8,500,000(Previous Year 8,500,000) 8.5% Compulsory Convertibile Preference shares of `10/- each, fully paid up. Conversion date 5th January 2019. All the above shares are held by Kotak Securities Ltd. Total 283,000,000 85,000,000 198,000,000 250,000,000 100,000,000
250,000,000 100,000,000
198,000,000
85,000,000
283,000,000
Schedule 2 - Reserves and Surplus Capital Redemption Reserve Opening Balance Transfer from Profit & Loss Account Closing Balance General Reserve Opening Balance Transfer from Profit & Loss Account Closing Balance Balance in Profit and Loss Account Total 69,400,000 10,625,000 80,025,000 263,722,464 385,747,464 3,800,000 65,600,000 69,400,000 257,086,402 368,486,402 42,000,000 42,000,000 42,000,000 42,000,000
Schedule 3 - Fixed Assets Gross Block Description As on 1st April 2010 21,915,830 29,132,943 41,309,703 12,145,828 5,693,961 24,076,993 134,275,258 120,845,870 Additions 'Deductions As on 31st March 2011 26,880,633 25,708,634 47,204,167 14,859,583 5,988,332 30,317,377 As on 1st April 2010 Depreciation For the year Net Block
(`)
As on As on Deductions 31st March 31st March 2011 2011 18,866,752 6,392,728 1,362,938 14,777 67,777 8,102,051 15,940,271 9,257,551 15,013,039 37,940,230 10,186,463 4,508,465 9,019,411 95,534,360 86,091,120 8,013,881 10,695,595 9,263,937 4,673,120 1,479,867 21,297,966 55,424,366
As on 31st March 2010 7,705,323 12,539,526 7,996,579 4,088,601 2,674,902 13,179,207
A. Intangible Assets Software B. Tangible Assets Leasehold Improvement Computers Office Equipments Furniture & Fixtures Vehicles Total Previous Year 3,346,477 7,257,403 2,741,880 420,047 15,464,740 34,195,350 23,852,799 6,770,786 1,362,939 28,125 125,676 9,224,356 16,593,417 4,812,350 33,313,124 5,990,044 8,057,227 2,144,013 3,019,059 1,557,183 10,897,786 6,223,676 86,091,120 25,383,511 75,030,916 20,317,756 4,964,803 14,210,507 4,656,245
17,511,882 150,958,726 10,423,410 134,275,258
48,184,138
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Schedules forming part of Balance Sheet (Contd.)

As at 31st March 2011 Schedule 4 - Investments (Non-trade, unquoted, fully paid): Long Term Investments (at cost) In Equity Shares of Subsidary Company 10,800,000 (Previous year10,800,000) Equity shares of face value of `10/- each, of Kotak Mahindra Pension Fund Ltd. 108,000,000
108,000,000
In Preference Shares of Fellow Subsidiary Company 25,000,000 (Previous Year Nil) Preference shares of face value of `10/- each, of Kotak Mahindra Prime Ltd 250,000,000
Total Investments purchased and sold during the year in units: Particulars
358,000,000
108,000,000
Purchase Units
Sold Units
Investment in Units of Mutual Fund

Kotak Mahindra Liquid Scheme - Institutional Premium Plan - Daily Dividend 173,240,109 (167,981,943) Kotak Mahindra Floater Short term - Daily Dividend Option Kotak Mahindra Floater Long term - Daily Dividend Option 89,295,983 142,593,732 (214,255,994) Figures in bracket are for Previous Year 173,240,109 (167,981,943) 89,295,983 142,593,732 (214,255,994)
Schedule 5 - Sundry Debtors (Unsecured, considered good) Debts outstanding for less than six months 87,972,256 87,972,256 Note:Due from Companies under the same management Kotak Securities Ltd. Outstanding Maximum Outstanding Kotak Investment Advisors Ltd Outstanding Maximum Outstanding Kotak Mahindra (UK) Limited Outstanding Maximum Outstanding 3,314,205 6,998,271 1,809,026 2,092,160 86,070 137,579 2,297,918 2,183,020 100,222,460 100,222,460
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As at 31st March 2011 Schedule 6 - Cash and Bank Balances Balances with scheduled banks in current accounts Balances with scheduled banks in Fixed Deposits 17,287,186 331,000,000 348,287,186 Include in above, balances with Holding Company Balances with scheduled banks in current accounts Balances with scheduled banks in Fixed Deposits 15,273,546 331,000,000
907,943,150 10,900,000 918,843,150
906,442,248 10,900,000
Schedule 7 - Loans and Advances (Unsecured, considered good) Loans to employees Advance payment of taxes and Tax deducted at source (Net of provision for taxation of ` 542,415,538, Previous Year ` 427,967,065) Advances recoverable in cash or in kind or for value to be received Other Deposits Total Note:Due from Companies under the same management Kotak Mahindra Old Mutual Life Insurance Limited Outstanding Maximum Outstanding Kotak Securities Limited Outstanding Maximum Outstanding Kotak Mahindra Trustee Company Limited Outstanding Maximum Outstanding 4,413,981 786,391 13,611 13,611 94,850 94,850 16,341 16,341 15,111,100 2,375,861 1,164,414
87,393,613 21,909,122 7,519,986 119,198,582
10,396,625 17,570,935 6,871,633 36,003,607
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As at 31st March 2011 Schedule 8 - Current Liabilities and Provisions Current liabilities Sundry creditors a) total outstanding dues of micro enterprises and small enterprises; and (Refer Note III (N) of Schedule 12) total outstanding dues of creditors other than micro enterprises and small enterprises
b)
112,657,125 112,657,125 89,005,325 8,629,725 97,635,050
Other liabilities
12,595,901 125,253,026
Provisions Gratuity Accumulated Compensated Leave Balances Other Provisions Wealth Tax Proposed Dividend on Equity share Proposed Dividend on Preference share Tax on Dividend 19,877,558 15,069,964 72,425,000 672,174 69,300,000 7,225,000 12,414,269 196,983,965 Total 322,236,991 12,304,397 12,555,999 120,000,000 477,174 277,200,000 7,225,000 47,239,437 477,002,007 574,637,057
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Schedules forming part of Profit and Loss Account

For the Year ended 31st March 2011 Schedule 9 - Other Income Interest on Deposits (Gross) (TDS ` 651,369, Previous Year Nil) Interest on Bank Deposits (Gross):(TDS ` 39,309, Previous Year ` 2,736,937) Interest on loans to staff Interest on income-tax refunds Rebate Received From Overseas Investment Manager Miscellaneous Income Total Schedule 10 - Employee Costs Salaries and allowances (Refer Note III (J) of Schedule 12) Contribution to provident and other funds Staff welfare 372,514,260 15,807,122 3,076,172 391,397,554 Less: Recovery of common establishment expenses Total Schedule 11 - Administrative and Other Expenses Rent, Society Property Expenses Rates and taxes Insurance Legal and professional fees Reimbursement of common administrative cost Travel and conveyance Communication expenses Business promotion, Distribution and Mutual Fund expenses Printing and stationery Membership subscription Electricity Computer and software related expenses Directors sitting fees Repairs and maintenance - Others Recruitment Expenses Filing Fees 52,496,502 1,671,981 5,734,674 10,607,961 21,495,247 24,986,180 16,276,456 314,337,629 5,406,304 17,254,401 9,737,532 9,004,724 450,000 4,564,581 157,294 4,200,500 7,483,208 383,914,346 6,513,699
(`) For the Year ended 31st March 2010
393,087
19,272,070
144,712 244,384 7,295,882
90,875 5,922,402 26,959,706 175,315 52,420,368
397,354,041 13,948,385 2,352,069 413,654,495 7,246,119 406,408,376
61,931,903 1,211,959 3,431,069 8,466,498 9,478,242 19,607,516 14,185,067 160,950,512 3,729,848 13,398,214 7,902,387 5,779,897 495,000 4,068,715 87,875 3,154,650
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Schedules forming part of Profit and Loss Account (Contd.)

For the Year ended 31st March 2011 Auditors Remuneration and expenses Audit Fees In any other manner - Certification Out of pocket expenses Service tax on above services Service tax input credit 1,150,000 118,450 (118,450) 1,150,000 Loss/(Profit) on sale of fixed assets (net) Office upkeep expenses Miscellaneous expenses (1,479,012) 12,227,693 15,678,046 525,958,693 Less: Recovery of common administrative expenses Total 953,760 525,004,933
(`) For the Year ended 31st March 2010
1,000,000 15,000 4,145 104,972 (104,972) 1,019,145 (493,313) 9,677,528 11,193,499 339,276,212 1,695,044 337,581,168
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SCHEDULES FORMING PART OF THE BALANCE SHEET AND THE PROFIT AND LOSS ACCOUNT Schedule 12 - Significant Accounting Polices and Notes to the Accounts I. NATURE OF OPERATIONS: Kotak Mahindra Asset Management Company Limited has been appointed as the Asset Management Company, to provide management and administrative services to the Trust (Kotak Mahindra Mutual Fund) and to deploy the funds raised by the Mutual Fund under the Schemes. The company also provides portfolio advisory services. II. SIGNIFICANT ACCOUNTING POLICIES: A. BASIS OF ACCOUNTING The Financial Statements have been prepared to comply in all material aspects with the Accounting Standards notified by Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. USE OF ESTIMATES The preparation of financial statements are in conformity with generally accepted accounting policies which requires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities as of the date of the financial statements, the reported income and expenses during the reporting period and disclosure of contingent liabilites. Although these estimates are based upon managements best knowledge of current events and actions, actual results could differ from these estimates and assumptions. REVENUE RECOGNITION Fees from mutual fund operations Investment management fees are recognized net of service tax on an accrual basis as a percentage of the average daily net assets of the schemes of Kotak Mahindra Mutual Fund (excluding investments made by the Company in the schemes), such that it does not exceed the rates prescribed by the Securities and Exchange Board of India (SEBI) (Mutual Fund) Regulations, 1996 (the SEBI Regulations) on an annual basis. D. Fees from rendering Portfolio Advisory Services Portfolio advisory fees are recognized net of service tax on an accrual basis, and are in accordance with the terms of agreement. Dividend income is accounted when the right to receive dividend is established. Purchase and sale of Investment is recorded on trade date. The profit / loss on sale of investments are recognized in the profit and loss account on the trade date, using weighted average cost method.
B.
C.
FIXED ASSETS AND DEPRECIATION Fixed assets are stated at cost less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Depreciation is provided using the Straight Line Method as per the useful lives of the assets estimated by the management at rates higher than those prescribed under Schedule XIV to the Companies Act, 1956. Estimated useful lives over which assets are depreciated are as follows: Asset Motor vehicles Computers Furniture and fixtures Office equipment Leasehold Improvements Intangible Assets - Software Useful life in years 4 3 6 5 Over the period of lease subject to a maximum of 6 years. 3
Assets costing less than ` 5,000 are depreciated at 100% in the year of purchase. E. IMPAIRMENT The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and risks specific to the asset. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.
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F.
INVESTMENTS Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of the investments. EMPLOYEE BENEFITS Defined contribution scheme a. The contributions as required by the statute to Government Provident Fund are charged to profit and loss account when due. b. The company contributes a sum equivalent to 15% of basic subject to a maximum of ` 1 lakh per annum per employee, of eligible employees eligible salary to a Superannuation Fund administered by trustees and managed by a Life Insurance Company. The company recognises such contributions as an expense in the year they are incurred.
G.
Defined Benefit Plan a. The company accounts for the liability for future gratuity benefits based on an actuarial valuation. The gratuity obligation is unfunded. The net present value of the companys obligation towards the same is determined based on the projected unit credit method as at the Balance Sheet date. b. Actuarial gains/losses are immediately recognised in the profit and loss account and are not deferred. Other Long term Employee Benefit a. The company accrues the liability for compensated absences based on the actuarial valuation as at the balance sheet date conducted by an independent actuary. The net present value of the companys obligation is determined based on the projected unit credit method as at the Balance Sheet date. Other Employee Benefits a. The undiscounted amount of employee benefits expected to be paid in exchange for the services rendered by employees is recognised during the period when the employee renders the service. These benefits include performance incentives. H. TAXES ON INCOME Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that they can be realised against future taxable profits. At each balance sheet date the Company re-assesses unrecognised deferred tax assets. It recognises unrecognised deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be realised. The carrying amount of deferred tax assets are reviewed at each balance sheet date. The company writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realised. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available I. OPERATING LEASE Leases, where the lessor retains substantially all the risks and benefits of ownership of the leased item, are classified as Operating Leases. Operating lease payments are recognized as an expense in the Profit and Loss account on a straight-line basis over the lease term. BORROWING COSTS Borrowing costs other than those directly attributable to qualifying Fixed Assets are recognised as an expense in the period in which they are incurred. FOREIGN CURRENCY TRANSACTIONS (A) Initial Recognition Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction. (B) Conversion Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction; Its grt 2b 25
J.
K.
19
and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined. (C) Exchange Differences Exchange differences arising on the settlement of monetary items not covered above, or on reporting such monetary items of company at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.
L.
SCHEME EXPENSES Annual recurring expenses relating to schemes of Kotak Mahindra Mutual Fund which are in excess of internal expense limits are borne by the Company. The internal expense limits are within the overall expense limits prescribed by the SEBI. EARNINGS PER SHARE Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period are adjusted for events of bonus issue; bonus element in a rights issue to existing shareholders; share split; and reverse share split (consolidation of shares). For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
M.
N.
PROVISIONS AND CONTINGENT LIABILITIES Provision is recognized when there is a present obligation as a result of past event, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements. EMPLOYEE STOCK OPTION SCHEME Cash-settled scheme: The cost of cash-settled scheme (stock appreciation rights) is measured initially using intrinsic value method at the grant date taking into account the terms and conditions upon which the instruments were granted. This intrinsic value is amortised on a straight-line basis over the vesting period with a recognition of corresponding liability. This liability is remeasured at each balance sheet date up to and including the settlement date with changes in intrinsic value recognised in profit and loss account in Employee Costs CASH AND CASH EQUIVALENTS Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and short-term investments with an original maturity of three months or less.
O.
P.
III.
NOTES TO THE ACCOUNTS A. Contingent Liabilities not provided for Particulars Contingent Liability for Income Tax Demand Contingent Liability for Service Tax Demand Contingent liability towards Property Tax B. C. 2011 3,951,875 1,690,736 14,319,398 2010 4,222,375 1,641,184 `
Capital Commitments Estimated amount of contracts remaining to be executed on capital account and not provided for ` 1,726,302 (Previous year ` 2,278,489). Managerial remuneration under Section 198 of the Companies Act 1956 paid to the Manager for the year: Particulars Salaries & Allowances Contribution to provident and other funds * Perquisites in cash or in kind Employees Stock Option Scheme Total 2011 3,309,884 243,520 48,396 84,739 3,686,539 2010 1,777,299 217,600 142,006 59,108 2,196,013 `
Note :* The above excludes provision for gratuity benefits and accumulated compensated absences, which are based on actuarial valuation done on an overall basis for the Company.
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D.
Additional information pursuant to the provisions of paragraph 4B and 4D of part II of Schedule VI to the Companies Act, 1956 to the extent applicable is given below: Expenditure in Foreign Currency : Travelling ` Nil (Previous year ` 131,233) Professional Charges ` 727,604 (Previous Year ` Nil) Portfolio Advisory Fees ` 19,000,000 (Previous Year ` 12,500,000). Rebate received ` NIL (Previous Year ` 26,959,706) Reimbursement for Expenses ` 1,730,872 (Previous Year ` Nil) Exchange Gain/(Loss) ` (155,322) (Previous Year ` 10,219).
Earnings/Receipts in Foreign Currency
E.
The year-end foreign currency exposures which have not been hedged by a derivative instrument or otherwise. Amounts receivable in foreign currency ` 3,314,205 Previous Year (7,227,948) $ 74,318 (160,337) `
F.
Employee Benefits Reconciliation of opening and closing balance of the present value of the defined benefit obligation for gratuity benefits is given below. Particulars 2011 12,304,397 2,596,301 1,109,096 848,988 5,806,815 (637,300) (2,150,739) 19,877,558 2011 19,877,558 19,877,558 2010 9,645,941 2,536,753 817,213 700,469 (255,440) (1,140,539) 12,304,397 2010 12,304,397 12,304,397
Change in Unfunded benefit obligations

Present value of unfunded benefit obligations, at the beginning of the year Service cost Interest cost Actuarial (gain)/loss on obligations Past Service cost Liabilities assumed Benefits paid Present value of unfunded benefit obligations as at year end Reconciliation of present value of the obligation and the fair value of the plan assets Fair value of plan assets as at the beginning of the year Present value of benefit obligations as at year end Net asset / (liability) as at year end Cost recognised for the period Current service cost Interest cost Expected return on plan assets Actuarial (gain)/loss Past Service cost Net gratuity cost Experience Adjustments for the current annual period and previous four annual periods: Particulars 2007 Defined Benefit Obligation Plan Assets Surplus/(Deficit) Experience Adjustment on Plan Liabilities Experience Adjustment on Plan Assets 4,877,877 (4,877,877) 2,371,214 2008 7,700,717 (7,700,717) 728,910 Year Ended 2009 9,645,941 (9,645,941) (477,320) 2010 12,304,397 (12,304,397) 567,276 Its grt 2b 25 2011 19,877,558 (19,877,558) 1,325,502 2,596,301 1,109,096 848,988 5,806,815 10,361,200 2,536,753 817,213 700,469 4,054,435
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Actuarial assumptions used Discount rate Expected rate of return on Plan Assets Salary escalation rate 8.26% p.a. 0% 15% p.a. for first 2 years, 10% p.a. for next 2 years & 6% p.a. thereafter 8.01% p.a 0% 15% p.a. for first 2 years, 10% p.a. for next 2 years & 6% p.a. thereafter
The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market. The above information is as certified by the actuary and relied upon by the auditors. G. Earnings Per Share (EPS) The numerators and denominators used to calculate Basic and Diluted Earnings Per Share: Particulars (a) Nominal Value of an Equity Share (`) (b) Net profit available to Equity Shareholders (`) (c) Weighted average number of shares outstanding (d) Basic and Diluted EPS* (`) = (b) / (c) 2011 10 106,200,331 19,800,000 5.36 2010 10 655,144,836 19,800,000 33.09
* Since conversion price of shares is not determined, convertible preference shares have not been considered for arriving at diluted earning per share. H. Operating Leases: The company has taken office and residential premises under operating lease or leave and license agreements. These are generally cancelable in nature and range between 11 months to 55 months. These leave and license agreements are generally renewable or cancelable at the option of the Company. The lease payments (net of recoveries) recognised in the profit and loss account is ` 18,798,012 (Previous Year ` 34,794,502). The future minimum lease payments under non-cancelable operating lease Not later than one year Nil (Previous Year ` Nil). The Company had given a loan to a fellow subsidiary during the year in excess of the limit specified under section 372A of the Companies Act. The loan has been repaid by the fellow subsidiary during the year, and the shareholders of the Company have approved, ratified and confirmed the loan subsequently; the approval could not be obtained earlier due to exceptional circumstances. Equity-settled options At the General Meetings of the holding company, Kotak Mahindra Bank Limited, the shareholders of the Bank had unanimously passed Special Resolutions on 28th July 2000, 26th July 2004 & 26th July 2005, 5th July 2007 and 21st August 2007, to grant options to the Eligible Employees of the Bank and its subsidiaries. Pursuant to these resolutions, the following four Employees Stock Option Schemes had been formulated and adopted: a) b) c) d) Kotak Mahindra Equity Option Scheme 2001-02 Kotak Mahindra Equity Option Scheme 2002-03 Kotak Mahindra Equity Option Scheme 2005 Kotak Mahindra Equity Option Scheme 2007
I.
J.
In accordance with SEBI (Employees Stock Option Scheme and Employee Stock Purchase) Guidelines, 1999 and the guidance note on Accounting for Employee Share-based Payments issued by the Institute of Chartered Accountants of India, the excess, if any, of the market price of share preceding the date of grant of the option under ESOPs over the exercise price of option is amortised on a straight-line basis over the vesting period. The Company has reimbursed the Bank ` 7,606,325 (Previous year 13,579,426) during the year on account of such cost and the same is forming part of employee cost and included under the head Employee Costs under schedule 10. Cash Settled Employee Stock Option Scheme - Stock appreciation rights (SARs): During the year, the management had approved (SARs) to be granted to eligible employees as and when deemed fit based on underlying shares of Holding company. The SARs are to be settled in cash and will vest in the manner as provided in the scheme / grant letters to employees. The contractual life (which is equivalent to the vesting period) of the SARs ranges from 0.50 years to 1.50 years.
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Detail of activity under SARs is summarized below: Particulars Outstanding at the beginning of the year Granted during the year Exercised during the year Expired during the year Forfeited during the year Outstanding at the end of the year 2011* Nil 34,020 17,800 Nil Nil 16,220
No. of SARs 2010* Nil Nil Nil Nil Nil Nil
* The number of SARs have been adjusted for split of the underlying equity shares from ` 10 paid up to ` 5 paid up per share. Effect of grant of SARs to employees on the profit and loss account and on its financial position ` in crores Year ended 31 March Total Employee Compensation Cost pertaining to share-based payment plans Closing balance of liability for cash-settled options
st
2011 2.01 0.44
2010 1.36 Nil
Had the company recorded the compensation cost computed on the basis of fair valuation method instead of intrinsic value method, employee compensation cost would have been higher by ` 21,895,967 (Previous year ` 23,031,829) and the profit before tax would have been lower by same amount. Consequently the basic and diluted EPS would have been lower by ` 0.73 (Previous year ` 1.16). K. Deferred Income taxes Components of net deferred tax balances are as follows: Particulars Deferred Tax Assets Provisions for Employee Benefits Depreciation on Fixed Assets Lease Equalisation Net Deferred Tax Asset L. 12,959,342 7,423,138 1,719,585 22,102,065 8,457,975 6,412,131 14,870,106 2011 (`) 2010
Segmental Reporting The segmental reporting disclosure as required by Accounting Standard (AS) 17 on Segment Reporting, issued by the Institute of Chartered Accountants of India has not been made. The Companys operations predominantly relate to providing investment management services to the schemes floated by Kotak Mahindra Mutual Fund and advisory services to other subsidiaries of Kotak Mahindra Bank Ltd. The risks and rewards relating to both these services are similar and hence there is no reportable business / geographic segment.
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23
M.
Related Party Disclosures Parties where control exist: Holding Company Kotak Mahindra Bank Limited holds 100% of equity share capital Uday S. Kotak along with relatives and entities controlled by him holds 45.56% of the equity share capital of Kotak Mahindra Bank Limited as on 31st March 2011. Subsidiary Company Other related parties: Fellow Subsidiaries Kotak Mahindra Trustee Company Limited Kotak Mahindra Trusteeship Services Limited Kotak Mahindra Investments Limited Kotak Investment Advisors Limited Kotak Mahindra (International) Limited Kotak Mahindra (UK) Limited Kotak Securities Limited Kotak Mahindra Capital Company Limited Kotak Mahindra Prime Limited. Kotak Mahindra Old Mutual Life Insurance Ltd Kotak Mahindra, Inc. Global Investment Opportunities Fund Ltd. Kotak Mahindra Financial Services Limited Mr. Uday S Kotak, Chairman Mr. Sandesh Kirkire, Chief Executive Officer Mr. Hariharan R, Manager Kotak Mahindra Pension Fund Limited.
Others: Enterprises over which Key Management Personnel / relatives have significant influence Mr. Uday S Kotak Aero Agencies Ltd Komaf Financials Services Ltd Kotak Commodity Services Limited Kotak Mahindra Mutual Fund
Mutual Fund managed by the company Details of Transactions are attached as per Annexure A N. O. P.
The Company has not received any intimation from its vendors regarding their status under Micro, Small and Medium Enterprises Development Act, 2006. Figures of the previous year have been regrouped / reclassified wherever necessary to conform to current years presentation. Figures of previous year has been audited by Firm of Chartered Accountants other than S. V. Ghatalia & Associates. Figures have been rounded off to the nearest rupee For and on behalf of the Board of Directors
For S. V. Ghatalia and Associates Firm Reg. No. 103162W Chartered Accountants per Amit Kabra Partner Membership No.:094533 Mumbai, 27th April 2011
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Annexure A Nature of Transaction Holding Company Fellow Subsidiaries Key Management Personnel Enterprises over which Director/ relatives/Key Management Personnel have significant influence Kotak Mahindra Mutual Fund Kotak Mahindra Pension Fund Subsidiary
Balance in Current Account Subscription of Preference Shares of Company Kotak Securities Ltd. Komaf Financial Services Ltd Investments: Subscription of Preference Shares Purchases / Subsriptions Sales Dividend Investment in Fixed Deposit Fixed Deposit Placed Fixed Deposit Matured Interest on Fixed Deposit Interest Receivable on Fixed Deposit ICD Placed Kotak Investment Advisors Ltd ICD Matured Kotak Investment Advisors Ltd Balance as on Year end Kotak Mahindra Prime Limited:Preference Shares Investments of Equity Shares
15,273,546 (906,442,248)
85,000,000 (85,000,000)
Nil (85,000,000)
250,000,000 4,431,529,998 (4,238,916,365) 4,459,049,715 (4,226,336,964) 27,519,717 (12,579,400) 331,000,000 (10,900,000) 330,000,000 (595,900,000) 9,900,000 (850,000,000) 393,087 (19,272,070) 388,794 (699,737)
(108,000,000)
500,000,000
500,000,000
250,000,000 108,000,000 (108,000,000)
DepositsKotak Mahindra Old Mutual Life Insurance Co.Ltd.
158,510
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25
Holding Company
Fellow Subsidiaries
Enterprises over which Director/ relatives/Key Management Personnel have significant influence
Kotak Mahindra Pension Fund Subsidiary
Fixed Assets: Purchase of Fixed assets Kotak Securities Ltd. Sale of Fixed assets Kotak Mahindra Old Mutual Life Insurance Limited Kotak Securities Ltd. Other Receipts and Payments: Recovery of common establishment expenses Kotak Mahindra Trustee Company Ltd. Recovery of common administrative expenses (575,100) Kotak Mahindra Trustee Company Ltd. Kotak Investment Advisors Ltd Miscellaneous Income Kotak Mahindra Trustee Company Ltd. Interest Receipt-Kotak Investment Advisors Ltd Reimbursement of Common administrative cost Kotak Commodity Services Ltd. Other Expenses / Reimbursement of other expenses Kotak Securities Ltd. Kotak Mahindra Capital Company Ltd. Kotak Mahindra Old Mutual Life Insurance Limited Kotak Mahindra Prime Limited 40,065,094 (22,871,813) 2,226,108 (1,677,827) 706,893 (816,467) 1,785,186 (321,129) 12,066 (22,893) 21,495,247 (9,478,242) 108,498 63,801 (69,080) 6,513,699 969,862 (844,944) 309,867 (124,731) 37,381 (275,000) 7,483,208 (7,246,119) 544,387 (257,703) (94,850) (101,400)
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Reports
Holding Company
Fellow Subsidiaries
Management Fees (Net of Repaid) Payments to Mutual Fund for Expenses Borne Reciepts from Mutual FundBrokerage Recovered Advance paid for Scheme License Fees Paid Kotak Mahindra Capital Company Ltd. Kotak Mahindra Prime Limited Aero Agencies Limited Cost of travel tickets purchased (Net of Discount) Remuneration to Key Management Personnel Sandesh Kirkire Hariharan R License Fees Received Advisory Fees Kotak Mahindra (UK) Limited Kotak Securities Ltd. Kotak Mahindra Old Mutual Life Insurance Limited Miscellaneous Receipts Kotak Mahindra Old Mutual Life Insurance Limited Kotak Securities Ltd. Kotak Mahindra (UK) Limited Miscellaneous Payments 13,426,337 (6,884,124) 210,694 (261,806) 16,461 (18,229) 13,711 (1,126,650) 1,730,872 (757,141) 19,000,000 (12,499,995) 6,000,000 (12,499,995) (39,000,000) 317,664 (264,000) 23,815,248 (11,263,666) 3,686,539 (2,196,013) 25,134,990 (22,798,798) 3,730,560 (3,419,680) 126,600 (126,600) 3,041,997 (2,574,833)
1,021,290,562 (1,624,634,491) 116,745,587 (17,274,264)
6,288,561 (12,783,651) 42,976
(2,226,980)
284,686 Its grt 2b 25
27
Holding Company
Fellow Subsidiaries
Dividend Paid Dividend Paid - Komaf Financial Services Ltd Dividend Paid - Kotak Securities Ltd. Other Miscellaneous Kotak Mahindra Old Mutual Life Insurance Limited Kotak Securities Limited Outstandings Receivables Kotak Securites Ltd. Kotak Mahindra (UK) Ltd Kotak Mahindra Old Mutual Life Insurance Limited Kotak Commodity Services Ltd Outstandings Payables Kotak Securities Ltd. Note: Previous year figures are in brackets
277,200,000 (118,800,000) (1,682,534) 7,225,000 (7,225,000)
2,463,075 (602,508) (22,382) 7,987 (73,040) 13,611 (94,850) 3,314,205 (1,809,026) 16,341 19,438 4,625,183 (1,635,820) 7,225,000 (7,225,000) 84,606,320 (92,934,955) (272,992)
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Reports
W. Balance Sheet Abstract and Company's general business profile as per Part IV, Schedule VI of the Companies Act, 1956.
I.
Registration Details Registration No. Balance Sheet Date 1 1 3 1 8 3 0 0 0 9 State Code 1 1
2 0 1 1
II.
Capital raised during the year: (Amount in ` Thousand) Public Issue N Bonus Issue N I L I L Rights Issue N Private Placement N I L I L
III.
Position of mobilisation and deployment of funds: (Amount in ` Thousand) Total Liabilities 6 6 8 7 4 7 Source of Funds Paid-up Capital 2 8 3 0 0 0 Secured Loans N Application of Funds Net Fixed Assets 5 5 4 2 4 Deferred Tax Asset 2 2 1 0 2 Miscellaneous Expenditure N I L Investments 3 5 8 0 0 0 Net Current Assets 2 3 3 2 2 1 Accumulated Losses N I L I L Reserves and Surplus 3 8 5 7 4 7 Unsecured Loans N I L Total Assets 6 6 8 7 4 7
IV.
Performance of Company: (Amount in ` Thousand) Turnover / Income 1 0 8 1 1 0 6 +/- Profit/(Loss) before Tax + 1 4 6 8 0 3 + Total Expenditure 9 3 4 3 0 3
+/- Profit/(Loss) after Tax 1 0 6 2 0 0
(Please tick apporpriate box + for profit, - for loss) Earnings per Share (in `) 5 V. . 3 6 N A A S S E T M A N A G E M E N T
Dividend Rate (%) 3 5
Generic names of three principal products, services of the Company (As per monetary terms): Item Code No. (ITC Code) Product Description
For and on behalf of the Board of Directors Uday S. Kotak Chairman Hariharan R Manager R. C. Khanna Director Jolly Bhatt Company Secretary Its grt 2b 25
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KOTAK MAHINDRA TRUSTEE COMPANY LIMITED
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Reports Directors Reports
BOARD OF DIRECTORS : MR. AMIT DESAI, MR. CHANDRASHEKHAR SATHE, MR. GIRISH SHAREDALAL, MR. BALAN WASUDEO, MR. NOSHIR DASTUR
Directors Report
To the Members of KOTAK MAHINDRA TRUSTEE COMPANY LIMITED The Directors present their Sixteenth Annual Report together with the audited accounts of your Company for the year ended 31st March 2011. FINANCIAL RESULTS The financial results of the company for the year ended 31st March 2011 is as under: (` In Lakhs) ` 2010 - 2011 Gross income Profit before Depreciation and Tax Depreciation Profit before Tax Profit after Tax Balance of Profit from previous years Amount available for appropriation Proposed dividend including dividend distribution tax Transfer to General reserves Surplus carried forward to the Balance Sheet 1083.51 990.14 0 990.14 668.10 2458.93 3127.03 349.16 70.00 3127.03 2009- 2010 1,142.90 1,052.25 0.00 1,052.25 694.98 2,067.50 2,762.47 233.54 70.00 2458.93
The trusteeship income during the period under consideration has decreased by 5% as compared to the previous year and consequently the profit before tax has reduced by 6%. This is on account of a 13% reduction in Average Assets under management for the year as compared to the previous year. DIVIDEND Your Directors also recommend a final dividend of ` 600/-per equity share. CAPITAL The Authorized Share Capital of the Company is ` 1 crore, comprising of 10,00,000 Equity Shares of ` 10 each. The issued and paid up capital of the Company is ` 5,00,700 comprising of 50,070 Equity Shares of ` 10 each. OPERATIONS MARKET RELATED DEVELOPMENTS AFFECTING THE SCHEMES OF THE MUTUAL FUND The financial year 2010-2011 which started well with the economy's strong growth momentum driven by strong consumption growth, saw a plethora of domestic & global events acting as hindrance to growth. Inflation raised its ugly head since the beginning of the year itself at double digits, and consequentially RBI raised policy rates regularly to tame it. However, inflation still remains a cause for concern. Governance issues at the centre also had a sentimental impact on the markets. Global factors such as political unrest in the Middle East & the tsunami in Japan also added to market worries. Nonetheless, Indian equities were able to attract net FII inflow for FY-11 to the tune of US $ 24.29 billion. The union budget 2011-12 focused on condusive investment climate, inclusive growth, education, good governance standards & fiscal prudence. One important change which could effect our industry is the parity in dividend distribution tax for all debt schemes for corporate investor's w.e.f June 01, 2011, bringing it in line with bank fixed deposits. . Allowing FII's and foreign nationals to invest directly into Indian Mutual Funds giving it an entire new customer base was a positive step. The financial year 2011 began on a positive note for the fixed income segment with a liquidity overhang in the money markets. In April-May 2010, short term yields such as 3 month Bank CDs, fell to a low of around 4.5%. But, the telecom auction saw outflow of over ` 1 lakh crores which led to liquidity tightness resulting in large scale redemption from money market schemes. This occurred when inflation too was on the upswing. The yields at the shorter end went up by 400 to 500 bps during the financial year
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The debt market represented by the 10 year benchmark bond yield remained volatile throughout the year. Starting the year at 7.83%, the 10 year benchmark bond closed at 7.99% on 31st March 2011 before making an interim high of 8.25%.Similarly , the BSE Sensex also saw a high of 21004 and a low of 16022 before closing the year at 19445. There were a few changes in the regulation pertaining to the mutual fund industry during FY-11; the highlights of such changes are as given below: Listing of Interval schemes - For all Interval schemes/plans, SEBI has mandated that they be compulsorily listed and no redemption will be allowed except the specified transaction period. It also stated that Investments shall be permitted only in such securities which mature on or before the opening of the immediately following specified transaction period. Consolidation or merger of schemes - SEBI in an attempt to consolidate similar fund mandates and reduce clutter had decided that merger or consolidation shall not be seen as change in fundamental attribute of the surviving scheme if mutual funds are able to demonstrate that the circumstances merit merger Additional mode of payment through ASBA(Applications Supported by Blocked amount) in mutual funds - Through this circular, SEBI mandated mutual fund houses to provide ASBA facility to investors for all NFO's launched on or after 1st October 2010 Valuation of Debt & Money market instruments -with effect from 1st August 2010 SEBI mandated mutual funds to value money market & debt securities with residual maturity of over 91 ( from the extant 182 days ) days at the weighted average price at which they were traded on a particular day or when such securities are not traded, they shall be valued at benchmark yield / matrix of spread over risk free benchmark yield obtained from agencies entrusted for the said purpose by AMFI. This led to increased transparency in valuation of debt mutual funds.
MUTUAL FUND INDUSTRY DEVELOPMENTS AND SEGMENT WISE PERFORMANCE The total industry AUM (Assets Under Management) fell from ` 6,13,979 crores in March 2010 to ` 5, 92,250 crores in March 2011, fall of 3.54% in FY-11. During the same period, AUM with Kotak Mahindra Asset Management Company increased 1.59% i.e. from ` 24071.19 crores in March 2010 to 24,454.93 crores in March 2011. Equity schemes in the industry saw a net outflow of Rs 11,795 crores for the FY-11 as markets remained volatile. With its focus on SIP Investments, Kotak Mahindra Asset Management Company saw its live SIP accounts increase from 1,01,088 in March 2010 to 1,14,592 accounts in March 2011. Mutual funds continue to be the cheapest vehicle for accessing capital markets. The issue is about reaching the investors in a most cost effective manner. The distribution in that sense is extremely important. The distribution is also trying to realign its business models in line with the new regulatory pattern introduced with the abolition of entry loads in FY-2010. The industry on its part is undertaking all India investor awareness programs in a standard format. A total of 5817 programs were done pan India covering about 340,383 Investors While we at Kotak have undertaken about 653 investor meets covering about 19,862 investors. During the year under review, FMPs as an industry gained in size due to attractive interest rates from the investor point of view. AUM of Close ended Income schemes & Interval schemes (majority of which are FMPs), in the industry, increased from ` 56,923 crores in March 2010 to ` 1,38,754 crores in March 2011 forming around 23% of the total AUM in the Industry. During the year, Kotak Flexi Debt, Kotak Liquid Institutional Premium Plan & Kotak Gilt were awarded 5 Star ranking over three years by Value Research. Also, Kotak Flexi Debt & Kotak Floater Long Term have been ranked 7 star and have been awarded the Gold Award for 'Best Performance' in the category of 'Open Ended Ultra Short Term-IP' and 'Open Ended Floating Rate Fund' respectively for one year period ending 31st December 2010. Kotak Bond Regular has been awarded most Consistent Performer (based on the annual performance of the past 10 years) in the NDTV Profit Mutual Fund Awards 2010. Certain statements in the 'Management Discussion and Analysis' section may be forward-looking and are stated as may be required by applicable laws and regulations. Many factors may affect the actual results, which could be different from what the Directors envisage in terms of future performance and outlook. Your Company does not undertake to update these statements. NEW SCHEMES LAUNCHED DURING 2010-2011 Other than FMPs two new products were launched successfully in FY-11 namely Kotak Credit Opportunities Fund and Kotak Multi Asset Allocation Fund, garnering ` 361.19 crores and ` 160.89 crores respectively. Kotak Multi Asset Allocation as the name suggests is a hybrid fund with asset allocation across 3 asset classes viz. Debt, Equity & Gold, allowing investors to take exposure into all the 3 asset classes through investment in a single scheme. DIRECTORS Your Company has five Directors on the Board, three of whom are Independent. During the year, seven meetings of the Board of Directors were convened.
Kotak Mahindra Trustee Company Limited Annual Report 2010-11
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Reports Directors Reports
We report with profound grief and sorrow, the untimely demise of our Director Mr. Anirudha Barwe. The valuable inputs and guidance provided by Mr. Anirudha Barwe was immense. Mr. Noshir Dastur, was appointed as a Director on 21st January 2011 in the casual vacancy caused by the demise of Mr. Anirudha Barwe. Mr. Girish Sharedalal retires by rotation at the Annual General Meeting and being eligible, offers himself for re-appointment. COMMITTEES Pursuant to SEBI circular MFD/CIR/010/024/2000 dated January 17, 2000, your Company has constituted an Audit Committee of the Board consisting of Mr. Girish Sharedalal, Mr. Amit Desai, Mr. Anirudha Barwe and Mr. Balan Wasudeo. Mr. Girish Sharedalal, Independent Director on the Board, is the Chairman of the Audit Committee. The committee met five times during the year to review accounts, operations and compliance relating to schemes. Post the demise Mr. Anirudha Barwe , the Audit Committee comprises of Mr. Girish Sharedalal, Mr. Amit Desai and Mr. Balan Wasudeo. APPOINTMENT COMMITTEE As per the directives laid down by Reserve Bank of India (RBI), your company has constituted an Appointment Committee consisting of Mr. Balan Wasudeo and Mr. Noshir Dastur. The Scope of the Committee is to ensure 'fit & proper' status of proposed/existing Directors of the organization. AUDITORS Your Company's Auditors, M/s. Price Waterhouse, Chartered Accountants, Mumbai, retire at conclusion of the Sixteenth Annual General Meeting and being eligible, offer themselves for re-appointment on such remuneration as may be fixed by the Board of the Directors of your Company. STATUTORY INFORMATION Your Company did not have any employees during the year, nor did it accept any deposits during the year. It had no foreign exchange earnings or outgo. The other particulars prescribed under the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 are not applicable since your Company is not a manufacturing company. EMPLOYEES/HUMAN RESOURCES Your Company does not have personnel or infrastructure of its own and uses the services of Kotak Mahindra Asset Management Company Limited. DIRECTORS' RESPONSIBILITY STATEMENT Based on representations from the Management of KMAMCL who is entrusted with maintenance of the books of account of your Company, in pursuance of Section 217 (2AA) of the Companies Act, 1956, we state that: i. ii. Your Company has, in the preparation of the annual accounts for the year ended 31st March 2011, followed the applicable accounting standards along with proper explanations relating to material departures, if any; they 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 profit and fair view of the state of affairs of your Company as at 31st March 2011 and of the Profit and loss of your Company for the financial year ended 31st March 2011; they have taken proper and sufficient care to the best of their knowledge and ability, for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of your Company and for preventing and detecting fraud and other irregularities; and they have prepared the annual accounts on a going concern basis.
iii.
iv.
ACKNOWLEDGEMENTS Your Directors would like to place on record their gratitude for the valuable guidance and support received from the Securities and Exchange Board of India, Reserve Bank of India and other Government and Regulatory agencies. For and on behalf of the Board of Directors Girish Sharedalal Director Place: Mumbai Dated: 27th April 2011 Its grt 2b 25 Balan Wasudeo Director
Auditors Report
To the Members of KOTAK MAHINDRA TRUSTEE COMPANY LIMITED 1. We have audited the attached Balance Sheet of Kotak Mahindra Trustee Company Limited ("The Company"), as at 31st March 2011 and the related Profit and Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto, which we have signed under reference to this report. These financial statements are the responsibility of the Company's Management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As required by the Companies (Auditor's Report) Order, 2003 as amended by the Companies (Auditor's Report) (Amendment) Order, 2004 (together the "Order") issued by the Central Government of India in terms of sub-section (4A) of Section 227 of 'The Companies Act,1956' of India (the "Act") and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order. Further to our comments in paragraph 3 above, we report that: (a) (b) (c) (d) (e) We have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit; In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books; The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account; In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Act. On the basis of written representations received from the directors, as on 31st March 2011, and taken on record by the Board of Directors, none of the directors are disqualified as on 31st March 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Act; In our opinion and to the best of our information and according to the explanations given to us, the said financial statements together with the notes thereon and attached thereto give, in the prescribed manner, the information required by the Act, and give a true and fair view in conformity with the accounting principles generally accepted in India: (i) (ii) (iii) in the case of the Balance Sheet, of the state of affairs of the company as at 31st March 2011; in the case of the Profit and Loss Account, of the profit for the year ended on that date; and in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
2.
3.
4.
(f)
For Price Waterhouse Firm Registration Number: 301112E Chartered Accountants Vivek Prasad Partner Membership Number: F-104941 Place: Mumbai Dated: 27th April 2011
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Reports

Referred to in paragraph 3 of the Auditors' Report of even date to the members of Kotak Mahindra Trustee Company Limited on the financial statements for the year ended 31st March 2011 1. 2. 3. 4. The Company did not have any fixed assets at anytime during the year. Hence, the requirements of clause (i) of paragraph 4 of the said Order are not applicable to the Company. The Company did not have any inventory at anytime during the year. Hence, the requirements of clause (ii) of paragraph 4 of the said Order are not applicable to the Company. The Company has neither granted nor taken any loans, secured or unsecured, to/from companies, firms or other parties covered in the register maintained under Section 301 of the Act. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the sale of services. Further, on the basis of our examination of the books and records of the Company, and according to the information and explanations given to us, no major weakness have been noticed or reported. According to the information and explanations given to us, there have been no contracts or arrangements referred to in Section 301 of the Act during the year to be entered in the register required to be maintained under that Section. Accordingly, the question of commenting on transactions made in pursuance of such contracts or arrangements does not arise. The Company has not accepted any deposits from the public within the meaning of Sections 58A and 58AA of the Act and the rules framed there under. In our opinion, the Company has an internal audit system commensurate with its size and nature of its business. The Central Government of India has not prescribed the maintenance of cost records under clause (d) of sub-section (1) of Section 209 of the Act for any of the products of the Company. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is regular in depositing the undisputed statutory dues including income-tax, service tax, cess and other material statutory dues as applicable with the appropriate authorities. According to the information and explanations given to us and the records of the company examined by us, investor education and protection fund, employees' state insurance, sales-tax, wealth tax, customs duty and excise duty are not applicable to the company in the current year. According to the information and explanations given to us and the records of the company examined by us, there are no dues of income-tax, service tax, and cess which have not been deposited on account of any dispute. Sales tax, wealth tax, customs duty and excise duty are not applicable to the company for the current year.
5.
6. 7. 8. 9.
(b)
10. 11. 12. 13. 14.
The Company has no accumulated losses as at 31st March 2011 and it has not incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year. According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of dues to any financial institution or bank or debenture holders as at the balance sheet date. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. The provisions of any special statute applicable to chit fund / nidhi / mutual benefit fund/ societies are not applicable to the Company. In our opinion, the Company has maintained proper records of transactions and contracts relating to dealing or trading in shares, securities, debentures and other investments during the year and timely entries have been made therein. Further, such securities have been held by the Company in its own name or are in the process of transfer in its name, except to the extent of the exemption granted under Section 49 of the Act. In our opinion and according to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions during the year. The Company has not obtained any term loans. On the basis of an overall examination of the balance sheet of the Company, in our opinion and according to the information and explanations given to us, there are no funds raised on a short-term basis which have been used for long-term investment. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Act during the year.
15. 16. 17. 18.
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19. 20. 21.
The Company has not issued any debentures during the year. The Company has not raised any money by public issues during the year. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the Management.
For Price Waterhouse Firm Registration Number: 301112E Chartered Accountants Vivek Prasad Partner Membership Number: F-104941 Place: Mumbai Dated: 27th April 2011
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Reports

Schedules Sources of Funds Shareholders' Funds: Capital Reserves and Surplus 1 2 500,700 291,970,397 292,471,097 Deferred Tax Liability (Refer Schedule 8 - Note 3) Total Application of Funds Investments Current Assets, Loans and Advances Trusteeship Remuneration Receivable Cash and Bank Balances Other Current Assets Loans and Advances 4 5 6 8,130,332 223,072,996 72,123 123,175 231,398,626 Less: Current Liabilities and Provisions Current Liabilities Provisions 7 1,327,467 36,335,325 37,662,792 Net Current Assets Total Notes to the financial statements 8 193,735,834 292,471,097 1,304,725 23,594,548 24,899,273 8,451,407 20,693,785 42,020,612 144,008 71,309,812 3 98,735,263 292,471,097 As at 31st March 2011
500,700 260,075,879 260,576,579 123,700 260,700,279
214,289,740
46,410,539 260,700,279
This is the Balance Sheet referred to in our report of even date For Price Waterhouse Firms Registration Number: 301112E Chartered Accountants Vivek Prasad Partner Membership No. F-104941 Mumbai Dated: 27th April 2011 For and on behalf of the Board of Directors
Girish Sharedalal Director
Balan Wasudeo Director
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Schedules 1st April 2010 to 31st March 2011
(`) 1st April 2009 to 31st March 2010
Income Trusteeship fees - Gross (Tax deducted at source `10,286,345 (Previous year `11,417,474)) Dividend on units of mutual fund Interest on debentures - Gross (Tax deducted at source `1,114,315 (Previous year ` 1,232,500)) Interest on Fixed Deposit - Gross (Tax deducted at source `12,873 (Previous year ` 258,541)) Profit on sale of current investments Profit on sale of long term investments Total Expenditure Compliance and administrative Directors' sitting fees Insurance Legal and professional Rent, rate and taxes Auditors' remuneration (Refer Schedule 8 -Note 5) Miscellaneous Total Profit Before Tax Provision For Taxation Less: Current tax (including `27,442 (Previous Year `Nil) for prior year) Deferred tax Profit After Tax Profit and loss account balance brought forward from previous year Appropriations Proposed dividend Corporate dividend tax Transfer to general reserve Profit and loss account balance carried forward to the Balance Sheet Earnings per share - Basic and Diluted Face Value of `10 each (Refer Schedule 8 - Note 9) Notes to the financial statements 8 30,042,000 4,873,564 7,000,000 270,787,397 1,334 20,028,000 3,326,400 7,000,000 245,892,879 1,388 32,327,442 (123,700) 66,810,082 245,892,879 35,730,000 (2,950) 69,497,589 206,749,690 7,547,006 450,000 101,863 49,938 955,260 102,510 130,667 9,337,244 99,013,824 7,315,199 600,000 100,740 79,755 859,844 103,430 6,217 9,065,185 105,224,639 93,257,915 1,791,713 11,143,151 128,731 715,558 1,314,000 108,351,068 99,895,235 129,472 12,325,000 1,838,649 101,468 114,289,824
This is the Profit and Loss Account referred to in our report of even date For Price Waterhouse Firms Registration Number: 301112E Chartered Accountants Vivek Prasad Partner Membership No. F-104941 Mumbai Dated: 27th April 2011 For and on behalf of the Board of Directors
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Reports
2010-11 CASH FLOW FROM OPERATING ACTIVITIES Profit before taxation Adjustments for: Dividend income Interest on debentures/ Fixed Deposit Profit on sale of Current investments Profit on sale of Long Term investments OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES (Increase) / Decrease in trusteeship remuneration receivable (Increase) / Decrease in loans and advances Increase / (Decrease) in current liabilities CASH GENERATED FROM OPERATIONS Payment of taxes (net of refunds) NET CASH FROM OPERATING ACTIVITIES (A) CASH FLOW FROM INVESTING ACTIVITIES (Purchase) / sale of Investments(net) Interest received on Fixed Deposit and Debentures Dividend received NET CASH FROM / (USED) IN INVESTMENT ACTIVITIES (B) CASH FLOW FROM FINANCING ACTIVITIES Dividend/ Dividend Tax paid CASH FLOW FROM FINANCING ACTIVITIES (C) NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (A + B + C) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR (23,354,400) (23,354,400) 202,379,211 20,693,785 223,072,996 (202,379,211) 117,584,035 53,220,371 1,791,713 172,596,119 321,075 20,833 22,742 364,650 84,285,321 (31,147,829) 53,137,492 (1,791,713) (11,271,882) (715,558) (1,314,000) 83,920,671 (3,845,731) (22,650) 416,488 99,013,824
(`) 2009-10
105,224,639 (129,472) (14,163,649) (101,468) 90,830,050
(3,451,893) 87,378,157 (34,011,245) 53,366,912 (70,502,273) 1,827,424 129,472 (68,545,377) (15,178,465) 35,872,250 20,693,785 15,178,465
Note: The above cash flow statement has been prepared under the indirect method setout in (1) Accounting Standard (AS-3) issued by the Institute of Chartered Accountants of India. (2) Cash and cash equivalent at the year end includes bank balances of `123,072,996 (Previous year ` 5,993,785) and fixed deposits of `100,000,000 (Previous year `14,700,000). This is the Cash Flow Statement referred to in our report of even date For Price Waterhouse Firms Registration Number: 301112E Chartered Accountants Vivek Prasad Partner Membership No. F-104941 Place: Mumbai Dated: 27th April 2011 For and on behalf of the Board of Directors
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Schedules Forming Part of the Balance Sheet

As at 31st March 2011 Schedule 1 - Capital Authorised 1,000,000 equity shares of ` 10 each Issued, Subscribed and Paid Up 50,070 equity shares of ` 10 each, fully paid up (all the above shares are held by Kotak Mahindra Bank Limited, the Holding Company and its nominees) 500,700 500,700 10,000,000
10,000,000
500,700
500,700
Schedule 2 - Reserves and Surplus General Reserve As per last Balance Sheet Transferred from Profit and Loss Account 14,183,000 7,000,000 21,183,000 Profit and Loss Account 270,787,397 291,970,397 7,183,000 7,000,000 14,183,000 245,892,879 260,075,879
Schedule 3 - Investments Long Term Investments: (Non Trade) (At Cost) Unquoted, fully paid up Nil (Previous year - 1,450,000) debentures of `100 each of Kotak Mahindra Investments Limited (rate of interest 8.5% per annum) Current Investments: (At Cost or Market Value whichever is lower) Unquoted, fully paid up 6,812,558.677 (Previous Year 4,952,144.786) units of `10 each of Kotak Floater Long Term - Growth 98,735,263 98,735,263 Aggregate value of unquoted investments - At book value 98,735,263 70,603,741 214,289,740 214,289,740 143,685,999
Schedule 4 - Cash and Bank Balances Balances with scheduled banks on current account fixed deposit account 123,072,996 100,000,000 223,072,996 5,993,785 14,700,000 20,693,785
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Schedules Forming Part of the Balance Sheet (Contd.)

As at 31st March 2011 Schedule 5 - Other Current Assets Interest Accrued On Fixed Deposits Debentures 72,123 72,123
943,277 41,077,335 42,020,612
Schedule 6 - Loans and Advances (Unsecured, considered good) Advances recoverable in cash or in kind or for value to be received 123,175 123,175 144,008 144,008
Schedule 7 - Current Liabilites and Provisions Current Liabilities Sundry creditors* (other than small scale industrial undertakings/ Companies registered under Micro, Small and Medium Enterprise Development Act, 2006 #) Other Liabilites 397,959 929,508 1,327,467 There are no amounts due and outstanding to be credited to Investor Education and Protection Fund * Includes Rs 250,000 (Previous year `250,000) received from Kotak Mahindra Bank Limited towards corpus of Kotak Mahindra Mutual Fund # Determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors Provisions Taxation (Net of advance tax and tax deducted at source `160,964,753 (Previous Year - `129,816,924 )) Proposed dividend Corporate dividend tax 1,419,761 30,042,000 4,873,564 36,335,325 Total 37,662,792 240,148 20,028,000 3,326,400 23,594,548 24,899,273 411,193 893,532 1,304,725
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11
SCHEDULES FORMING PART OF THE BALANCE SHEET AND THE PROFIT AND LOSS ACCOUNT Schedule 8 - Notes to the Financial Statements 1. Significant Accounting Policies (a) The financial statements are prepared under the historical cost convention on the accrual basis of accounting and in accordance with the standards on accounting issued by the Institute of Chartered Accountants of India and referred to in Section 211(3C) of the Companies Act,1956. Investments are classified into long term investments and current investments. Investments which are intended to be held for more than one year, are classified as long term investments and investments, which are intended to be held for less than one year, are classified as current investments. Long term investments are accounted at cost and any decline in the carrying value, other than temporary in nature is provided for. Current investments are valued at cost or market/fair value whichever is lower. In case of investment in mutual funds, the net asset value of units is considered as market/fair value. Revenue is recognised when no significant uncertainty as to measurability or collectability exists. The Income Tax expense comprises of Current Tax and Deferred Tax.Current tax is measured at the amount expected to be paid in respect of taxable income for the year in accordance with Income Tax Act, 1961. Deferred tax adjustment comprises of changes in the deferred tax assets and liabilities.Deferred tax asset and liabilities are recognized for the future tax consequences of timing differences being the difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.Deferred tax assets on account of timing differences are reognised only to the extent that there is reasonable certainity that sufficient future taxable income will be available against which such deferred tax asset can be realised. Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantially enacted before the Balance Sheet date. Changes in deferred tax assets / liabilities on account of changes in enacted tax rates are given effect to in the Profit and Loss Account in the period of the change.The Company writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realised. 2. Contingent Liabilities: Taxation matters in respect of which appeal is pending `178,673 (Previous Year: `263,683) 3. Components of deferred tax balances 31st March 2011 Deferred tax liability Interest accrued and not due on debentures Net deferred tax liability 4. The following Investments have been purchased and sold during the year: Purchase Units of `10 each of Kotak Liquid Instituitional Scheme - Daily Dividend Option Units of `10 each of Kotak Floater Long Term - Growth Option Units of `10 each of Kotak Floater Long Term - Daily Dividend Option Units of `10 each of Kotak Floater Short Term - Daily Dividend Option 5. Auditors' remuneration: 31st March 2011 Audit fees Out of pocket expenses 100,000 2,510 102,510 6. 7. 5,087,925.027 3,824,358.571 505,774.322 23,222,726.636 Sale 5,087,925.027 1,963,944.680 505,774.322 23,222,726.636 (`) 31st March 2010 100,000 3,430 103,430 (`) 31st March 2010 (123,700) (123,700)
(b)
(c) (d)
Information with regard to matters specified in paragraph 4, 4A, 4C and 4D of Part II of Schedule VI to the Companies Act,1956 is either nil or not applicable to the Company for the year ended 31st March 2011. Segment information: The Company acts as a Trustee for the schemes of Kotak Mahindra Mutual Fund. As the Company is engaged only in one business segment and no geographical segments, the Balance Sheet as at 31st March 2011 and the Profit and Loss Account for the year ended 31st March 2011 pertain to one business segment.
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8.
Related Parties Disclosures: (I) Relationships (During the year) A. Related Parties where control exists: Nature of relationship Holding Company Related Party Kotak Mahindra Bank Limited (Holds 100% of the equity share capital) Uday S. Kotak along with relatives and companies controlled by him holds 45.56% of the equity share capital of Kotak Mahindra Bank Limited B. Other Related Parties: (i) Fellow Subsidiaries: (ii) (II) Mutual Fund managed by Fellow Subsidiary Kotak Mahindra Asset Management Company Limited (KMAMC) Kotak Mahindra Investments Limited (KMIL) Kotak Mahindra Mutual Fund (KMMF), managed by Kotak Mahindra Asset Management Company Limited (`) Mutual Fund Managed by Fellow Subsidiary (KMMF) () () 358,655,471 (164,782,665) 331,239,507 (94,280,392) 1,791,713 (129,472) () () () () 93,257,915 (99,895,235) () () () 8,130,332 (8,451,407) () () () Holding Company Fellow Subsidiary Company
The following transactions were carried out with related parties in the ordinary course of business Nature of Transactions
Finance Outstanding Bank Balance Fixed deposit Investments Purchase / Subscription of Units Sale / Redemption of Units Dividend received from investment in Units Purchase / Subscription of Debentures from KMAMC (KMIL) Sale/Redemption of Debentures (KMIL) Investment in Fixed Deposit Fixed Deposit Matured Income Trusteeship Fees Interest on Fixed Deposit Interest on Debentures(KMIL) Other Receipts and Payments Reimbursement of Expenses (KMAMC) Outstandings Receivables Payables Interest accrued on Debentures (KMIL) Interest accrued on Fixed Deposits Figures in brackets relate to the previous year.
122,702,124 (5,798,181) 100,000,000 (14,700,000) () () () () () 100,000,000 (14,700,000) 14,700,000 (34,000,000) () 128,731 (1,838,649) () () () 250,000 (250,000) () 72,123 (943,277)
() () () () () () 145,000,000 () () () () () 11,143,151 (12,325,000) 8,516,871 (8,160,143) () () (41,077,335) ()
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13
9.
Earnings Per Share: 31st March 2011 Profit after tax (Rupees) (A) Number of equity shares (B) Earnings per Share - basic and diluted (Rupees) (A/B) Nominal Value of Equity Share (Rupees) 66,810,082 50,070 1,334 10
(`) 31st March 2010 69,497,589 50,070 1,388 10
10.
Previous year's figures have been reclassified,wherever necessary,to confirm with current year's classification
This is the Profit and Loss Account referred to in our report of even date For Price Waterhouse Firms Registration Number: 301112E Chartered Accountants Vivek Prasad Partner Membership No. F-104941 Place: Mumbai Dated: 27th April 2011 For and on behalf of the Board of Directors
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VI) BALANCE SHEET ABSTRACT AND COMPANY'S GENERAL BUSINESS PROFILE
I.
Registration Details Registration No. Balance Sheet Date U65 990 MH1 3 995 1 PLC 3 090 279 2 0 1 1 State Code 1 1
II.
III.
Position of mobilisation and deployment of funds: (Amount in ` Thousand) Total Liabilities 3 7 6 6 3 Source of Funds Paid-up Capital 5 0 1 Secured Loans N Deferred Tax Liability N Application of Funds Net Fixed Assets N Net Current Assets 1 9 3 7 3 6 I L Investments 9 8 7 3 5 Miscellaneous Expenditure N I L I L I L Reserves and Surplus 2 9 1 9 7 0 Unsecured Loans N I L Total Assets 3 3 0 1 3 4
IV.
Performance of Company: (Amount in ` Thousand) Turnover / Income 1 0 8 3 5 1 + / Profit/(Loss) before Tax + 9 9 0 1 4 Earnings per Share (in `) 1 3 3 4 + Total Expenditure 9 3 3 7
+ / Profit/(Loss) after Tax 6 6 8 1 0 Dividend Rate (%) 6 0 0 0
V.
Generic names of three principal products services of the Company (As per monetary terms): Item Code No. (ITC Code) Product Description N A T R U S T E E F O R M U T U A L F U N D S
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KOTAK MAHINDRA (INTERNATIONAL) LIMITED
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BOARD OF DIRECTORS : MR. RAVILOCHAN POLA, MR. RAMTOOLA ASHRAF, MR. LOUIS DIDIER MERLE, MR. SOW MAN AH YUK SHING MR. SOMEY MASSEY, MR. VISWANATHAN VARADARAJAN, MR. BILAL IBRAHIM SASSA, MR. GIJO JOSEPH
Directors Report
To the shareholders of KOTAK MAHINDRA (INTERNATIONAL) LIMITED The directors present their report and the audited financial statements of Kotak Mahindra (International) Limited (the Company) for the year ended 31st March 2011. PRINCIPAL ACTIVITY The Companys principal activity is to carry on business in financial services, corporate advisory services, underwriting services, investment in shares, bonds and other securities. It acts as distributor for schemes/products of various Kotak funds and is an investment manager of various Kotak funds. RESULTS AND DIVIDEND The Companys profit for the financial year ended 31st March 2011 amounted to ` 460,542,017 (2010: ` 672,380,234). The directors did not recommend the payment of any dividend for the year under review (2010: ` nil). STATEMENT OF DIRECTORS RESPONSIBILITIES IN RESPECT OF THE FINANCIAL STATEMENTS The Board of Directors is responsible for the preparation and fair presentation of the financial statements, comprising the statement of financial position at 31 March 2011, statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and the notes to the financial statements, which include a summary of significant accounting policies and other explanatory notes, in accordance with International Financial Reporting Standards and the Mauritius Companies Act 2001. The Board of Directors responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of these financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. The Board of Directors has made an assessment of the Funds ability to continue as a going concern and has no reason to believe that the business will not be a going concern in the year ahead. AUDITORS The auditors, KPMG, have indicated their willingness to continue in office. By order of the Board
International Management (Mauritius) Ltd Company secretary
Date: 27th April 2011
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Auditors Report
To the members of Kotak Mahindra International Limited. The financial statements of Kotak Mahindra International Limited as at 31st March 2011, being a company registered in the Mauritius, are audited by KPMG, Public Accountants, Mauritius and we have been furnished with their audit report dated 21st April 2011. We are presented with the accounts in Indian Rupees prepared on the basis of aforesaid accounts to comply with requirements of section 212 of the Companies Act 1956. We give our report hereunder: We have audited the attached Balance Sheet of Kotak Mahindra International Limited as at 31st March 2011, the Profit and Loss account and also the Cash Flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the companys management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, on the basis of information and explanations given to us and relying upon the above referred financial statements and auditors report thereon, the accounts read with the notes thereon give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: (a) (b) (c) in the case of the Balance Sheet of the state of affairs of the Company as at 31st March 2011; in the case of the Profit and Loss account of the Profit for the year ended on that date; and in the case of the Cash Flow Statement, of the cash flows for the year ended on the date.
For V. C. Shah & Co. Chartered Accountants Firm Registration No.:109818W
A. N. Shah Partner Membership No. 42649 Mumbai, 27th April 2011.
Kotak Mahindra (International) Limited Annual Report 2010-11
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Schedule Sources of Funds Shareholders Funds : Share Capital Reserves and Surplus Loan Fund Secured Loans Total 3 1,810,949,146 3,694,240,493 812,465,902 2,254,747,183 1 2 161,597,644 1,721,693,703 161,597,644 1,280,683,637 As at 31st March 2011 ` As at 31st March 2010 `
Application of Funds Fixed Assets : Gross Block Less : Depreciation Net Block Investments Current Assets, Loans and Advances : A) Current Assets Interest Accrued on investments Sundry Debtors Cash and Bank Balances B) Loans and Advances 6 7 8 27,327,200 20,948,107 130,460,943 110,939,022 289,675,272 Less: Current Liabilities and Provisions : Current Liabilities Provisions 9 10 62,521,409 4,205,631 66,727,040 Net Current Assets Total Significant Accounting Policies and Notes to Financial Statements Schedules referred to above form an integral part of the Balance Sheet 15 222,948,232 3,694,240,493 40,692,037 3,617,426 44,309,463 47,219,729 2,254,747,183 11,448,406 2,760,460 25,943,001 51,377,325 91,529,192 5 4 1,240,089 865,740 374,349 3,470,917,912 1,147,517 763,094 384,423 2,207,143,031
In terms of our report of even date For V . C. Shah & Co. Chartered Accountants A. N. Shah Partner Mumbai, 27th April 2011 For and on behalf of the Board of Directors
Bilal Ibrahim Sassa Director Mumbai, 27th April 2011
Ramtoola Ashraf Director
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For the year ended 31st March 2011 ` For the year ended 31st March 2010 `
Schedule Income Income from Services (net) Income from Investments (net) Other Income Total Income Expenditure Personnel Cost Interest and Other Financial Charges Establishment and other expenses Total Expenditure Profit before depreciation and Taxation Depreciation Profit before Taxation Provision for Taxation Current Tax 12 13 14 11
327,988,952 231,518,045 2,895,016 562,402,013
298,593,874 462,161,033 2,456,749 763,211,656
3,990,394 26,774,695 58,745,993 89,511,082 472,890,931 110,149 472,780,782
38,970,349 24,597,428 15,087,312 78,655,089 684,556,567 1,165,087 683,391,480
12,238,765 460,542,017 1,268,583,062 1,729,125,079
11,011,246 672,380,234 596,202,828 1,268,583,062
Profit after Taxation Add: Balance brought forward from Previous Year Profit carried to Balance Sheet Earnings per Share (Refer Note 9 - Schedule 15) Basic and diluted (`) Face value per share ($) Significant Accounting Policies and Notes to Financial Statements Schedules referred to above form an integral part of the Profit and Loss Account 15
112.83 1.00
164.73 1.00
In terms of our report of even date For V . C. Shah & Co. Chartered Accountants A. N. Shah Partner Mumbai, 27th April 2011 For and on behalf of the Board of Directors
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For the year ended 31st March 2011 ` Cash Flow from Operating Activities Net Profit before taxation Adjustments for: Depreciation Dividend Income Interest Income Interest and other Financial Charges Exchange Adjustments Amortisation of premium/ accretion of discount on bonds and convertible bonds Unrealised loss on investments Realised loss/ (gain) on investments Realised loss/ (gain) on disposal of available-for-sale investments OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES Adjustments for: (Increase) / Decrease in Loans and advances (Increase) / Decrease in Sundry Debtors Increase / (Decrease) in Current Liabilities Increase / (Decrease) in Provisions CASH GENERATED FROM OPERATIONS Income taxes paid NET CASH FLOW FROM OPERATING ACTIVITIES (A) (59,396,662) (18,187,647) 21,829,372 (499,728) 321,565,648 (11,150,832) 310,414,816 48,020,878 57,120,509 (2,145,464) (2,206,944) 402,411,132 (10,483,794) 391,927,338 110,149 (827,606) (39,175,248) 20,458,545 (19,334,941) 59,407,449 47,815,692 (23,966,469) (139,448,040) 377,820,313 1,165,087 (167,615) (23,239,962) 18,183,654 (137,545,657) (63,961,693) 9,366,197 (185,569,338) 301,622,153 472,780,782 683,391,480 For the year ended 31st March 2010 `
CASH FLOW FROM INVESTING ACTIVITIES Purchase of current investments Sale of current investments Proceeds from conversion Purchase of fixed assets Sale of fixed assets Short term loan granted Short term loan repaid Dividend Received Interest Received NET CASH FLOW (USED IN) / FROM INVESTING ACTIVITIES (B) (12,267,441,757) 10,792,589,485 267,268,759 (297,085) (165,035) 827,606 23,296,454 (1,183,921,573) (7,505,770,507) 6,983,442,481 (471,720) 1,841,708 1,661,300,000 (1,661,300,000) 167,615 15,962,938 (504,827,485)
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CASH FLOW FROM FINANCING ACTIVITIES Movement in share capital Short term loan accepted Short term loan repaid Interest and other Financial Charges Paid 998,483,244 (20,458,545) 497,191,486 (372,240,000) (18,183,654)
NET CASH FLOW (USED IN) / FROM FINANCING ACTIVITIES NET INCREASE /(DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
(C) (A + B + C)
978,024,699 104,517,942 25,943,001 130,460,943 104,517,942
106,767,832 (6,132,315) 32,075,316 25,943,001 (6,132,315)
Notes: 1. 2. 3. The Cash Flow Statement has been prepared under the Indirect Method as set out in the Accounting Standard -3 on Cash Flow Statements issued by the Institute of Chartered Accountants of India. Figures in brackets indicate cash outflow. The previous years figures have been re-grouped, wherever necessary in order to conform to this years presentation.
This is the Cash Flow Statement referred to in our report of even date For V . C. Shah & Co. Chartered Accountants A. N. Shah Partner Mumbai, 27th April 2011 For and on behalf of the Board of Directors
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As at 31st March 2011 ` Schedule 1 - Share Capital Authorised 4,081,650 ordinary shares of US $ 1 each paid up As at 31st March 2010 `
Issued, Subscribed and Paid up 4,081,650 (Previous Year 4,081,650) ordinary shares of US $ 1 each fully paid up Of the above, 2,081,650 shares (Previous year 2,081,650) of US $ 1 each are held by the holding company, Kotak Mahindra Bank Limited Total 161,597,644 161,597,644 161,597,644 161,597,644
Schedule 2 - Reserves and Surplus Profit and Loss Account 1,729,125,079 1,268,583,062
Translation Reserve Balance brought forward from previous year Increase / (Decrease) during the year 12,100,575 (19,531,951) (7,431,376) Total 1,721,693,703 149,953,360 (137,852,785) 12,100,575 1,280,683,637
Schedule 3 - Secured Loans Loan from fellow subsidiary Bank Overdraft & Short term Loan Total 200,677,500 1,610,271,646 1,810,949,146 246,950,000 565,515,902 812,465,902
Schedule 4 - Fixed Assets Gross Block Description As at Additions 1st April /Adjustments 2010 Sales/ As at Adjustments* 31st March 2011 As at 1st April 2010 Depreciation For the year Net Block As at 31st March 2010
Sales/ As at As at Adjustments* 31st March 31st March 2011 2011
Assets Office Equipments and Furniture Vehicles Computers Total Previous Year 428,695 327,905 390,917 1,147,517 7,146,023 283,733 297,085 471,720 13,352 1,991 (2,228) (204,276) (204,513) (6,470,226) 444,038 325,677 470,374 1,240,089 1,147,517 74,882 327,905 360,307 763,094 25,521 110,150 84,629 (2,300) (2,228) (2,976) (7,504) (4,321,390) 157,211 325,677 382,852 865,740 763,094 286,827 87,522 374,349 384,423 353,813 30,610 384,423
3,919,397 1,165,087
* Sales/Adjustments includes effect of Translation Reserve.
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As at 31st March 2011 ` Schedule 5 - Investments Long Term Investment (Unquoted) (At Cost, less diminution other than temporary in nature) Current Investments (At cost or fair value, whichever is lower) Quoted Equity Investment Bonds and Convertible Bonds Unquoted Equity and other similar funds (Refer note 7a of schedule 15) Total 3,470,917,912 2,207,143,031 964,930,617 899,149,530 103,481,010 2,376,213,846 60,942,463 1,220,758,599 26,292,439 26,292,439 As at 31st March 2010 `
Schedule 6 - Sundry Debtors (Unsecured, considered good unless otherwise stated) Over six months Others Total 20,948,107 20,948,107 2,760,460 2,760,460
Schedule 7 - Cash and Bank balances Cash on hand Balances with scheduled Banks in: Current Account Deposit Account Total 130,290,358 153,745 130,460,943 25,876,064 25,943,001 16,840 66,937
Schedule 8 - Loans and advances (Unsecured, considered good unless otherwise stated) Loans and Advances to fellow subsidiary Advances recoverable in cash or in kind or for value to be received Total 3,573,843 107,365,179 110,939,022 3,408,808 47,968,517 51,377,325
Schedule 9 - Liabilities Sundry creditors Total 62,521,409 62,521,409 40,692,037 40,692,037
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As at 31st March 2011 ` As at 31st March 2010 `
Schedule 10 - Provisions Provision for gratuity Provision for tax {Net of Advance Tax ` 7,845,197 (Previous Year ` 7,360,053)} Total 63,196 4,142,435 4,205,631 562,924 3,054,502 3,617,426

For the year ended 31st March 2011 ` Schedule 11 - Other Income Interest on Term Loan Total 2,895,016 2,895,016 2,456,749 2,456,749 For the year ended 31st March 2010 `
Schedule 12 - Personnel cost Salaries and other allowances Gratuity Total 3,914,888 75,506 3,990,394 38,202,738 767,611 38,970,349
Schedule 13 - Interest and other financial charges Interest paid to bank & bank charges Interest on Borrowing Total 6,316,150 20,458,545 26,774,695 17,491,910 7,105,518 24,597,428
Schedule 14 - Establishment and other expenses Foreign Exchange Loss (Net) Rent Custodial charges Legal and consultancy charges Communication expenses Travelling expenses Foreign Auditors remuneration Audit Fees Out of Pocket Exp Other expenses Less: Recovery of expenses Total 1,412,874 17,842,184 (1,965,369) 58,745,993 1,785,980 22,069 12,789,540 (49,935,798) 15,087,312 25,118,746 1,962,653 43,436 13,524,055 305,731 501,683 33,986,008 5,966,423 68,449 7,438,863 1,420,841 1,544,937
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SCHEDULE 15 - SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO THE ACCOUNTS
I. Significant Accounting Policies: A. Method of Accounting The accounts are prepared in accordance with accounting principles generally accepted in India. The Company follows accrual method of accounting. The preparation of financial statements requires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Actual results could differ from these estimates. B. Conversion to Indian Rupees For the purpose of accounts, all income and expense items are converted at the average rate of exchange applicable for the period. All assets and liabilities are translated at the closing rate as on the Balance Sheet date. The Share Capital and investments in associate/ fellow subsidiary are carried forward at the rate of exchange prevailing on the transaction date. The resulting exchange difference on account of translation at the year end is being treated as translation reserve and transferred to Translation Reserve Account and the said account is being treated as Reserves and Surplus. C. Revenue Recognition Commission, fees and other revenue are invoiced and recognised on an accrual basis to the extent there is reasonable certainty of its ultimate realisation/ collection and the revenue can be reliably measured. Interest income is recognised in the Profit & Loss Account as accrued using the effective interest rate which exactly discounts estimated future cash flows through the expected life of the related asset. Dividends are recognised as income on the dates the securities are first quoted ex-dividend to the extent that information thereon is reasonably available to the group and the Company. D. Fixed assets Fixed assets are stated at cost less accumulated depreciation. Depreciation is calculated so as to write off the cost of the fixed assets on a straight-line basis over the expected useful lives of such assets. The estimated useful life over which assets are depreciated are as follows:: Office Equipment Furniture and Fixtures Computers 5 years 3 years 3 years
Gains and losses on disposal of property, plants and equipments are determined by reference to the written down value and are included in determining operating profits. Depreciation methods, useful lives and residual values are reviewed at each reporting date. E. Investments Investment in fellow subsidiary is stated at cost. The Company has classified its investments in equity securities and debt securities as current investment. Investments are initially recognised at cost, including transaction costs. The equity securities are subsequently carried at cost or market value whichever is less. The market values are based on the quoted prices. When quoted are unavailable, the price of the most recent transaction is used. The debt securities are subsequently measured at amortized cost using the effective interest method or market value, whichever is less. All derivative financial instruments are classified as held for trading. Derivative financial instruments are initially recognised at cost and subsequently measured at cost or market value whichever is less. Futures contracts are collateralised by cash and changes in the futures contracts values are settled with the exchange on a daily basis. The fair values of open positions in futures contracts are calculated as the difference between the contract prices and the settlement prices established each day by the exchange on which the contracts are traded. All investment transactions are recognised using trade date accounting. In case of unlisted open-ended investments funds, the net asset value per share as reported by the administrator of such funds is considered market value.
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F.
Employee benefits Provision for employees end of service benefits represents the liability that would arise if the employment of all eligible staff of the representative office were terminated as of the balance sheet date and is calculated in accordance with the UAE Federal Labour Law.
G.
Taxes Current tax is expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the balance sheet date and any adjustments payable in respect of previous years. Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.
H.
Earnings per share Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
I.
Provisions A provision is recognised when there is a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. Provision is not discounted to its present value and is determined based on the best estimate required to settle the obligation at the year end date. These are reviewed at each year end date and adjusted to reflect the current best estimate. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.
II.
Notes to the accounts 1. General information Kotak Mahindra (International) Limited (KMIL or the Company) which was incorporated on 29th March 1994 in Mauritius as a private Company with limited liability holds a Category 1 Global Business License and is regulated by the Financial Services Commission. The Company has by special resolution converted itself into a public Company on 12th June 2007. The Companys principal activity is to carry on business in financial services, corporate advisory services, underwriting services, investment in shares, bonds and other securities. It acts as distributor for schemes / products of various Kotak funds and is an investment manager of various Kotak funds. The Company operates a representative office (the representative office) in Abu Dhabi, United Arab Emirates and has an associate/fellow subsidiary in the United Kingdom, Kotak Mahindra (UK) Limited (KMUK). During the year, the representative office has shifted from Dubai to Abu Dhabi. The Company is a subsidiary of Kotak Mahindra Bank Limited (KMBL). The accounts have been prepared and audited to attach with the accounts of KMBL, the holding Company to comply with the provisions of the Indian Companies Act, 1956. 2. The transactions are in local currency, which have been converted into Indian currency for reporting and the rate applied is as per para (B) of the significant accounting policies. Contingent Liability: Guarantee to third parties given by the Companys bankers outstanding at the year end amounted to ` 312,165,000 (previous year `314,300,000). No loss is expected on this guarantee at the balance sheet date. Guarantee secured against margin deposit in Dubai amounted to ` 1,916,426 (previous year ` 2,395,056) 4. Capital Commitment: The Company has made a total commitment of ` 111,487,500 (Previous year ` 112,250,000) of which ` 55,743,750 (Previous year NIL) was called upon by Kotak India Focus Fund II till 31st March 2011. The Company will be called upon later date to pay `55,743,750 (Previous year ` 112,250,000) to meet its total commitment in Kotak India Focus Fund II. 5. The Company has a banking facility of ` 1,560,825,000 (Previous year ` 1,571,500,000/-) of which ` 445,950,000 is secured by guarantee of Kotak Mahindra Capital Company Limited., a fellow subsidiary Company and the balance of ` 1,114,875,000 is against floating charge on the assets of the Company. Interest is payable on the amounts drawn at Libor plus 1.0% to 2.5%. The Company is subject to income tax in Mauritius at 15%. It is entitled, however, to a tax credit equivalent to the higher of the actual foreign tax suffered and 80% of the Mauritius tax on its foreign source income. Its grt 2b 25
3.
6.
11
7 a. Investments Script Name Quantity 31st March 2011 Quantity 31st March 2010 Book Value as at 31st March 2011 ` Long Term (Unquoted) at cost Kotak Mahindra, Inc. Global Investment Opportunities Fund Kotak Mahindra (UK) Limited Total Long Term (Unquoted) at cost 1 100 470,000 1 100 470,000 45 4,818 26,287,576 26,292,439 45 4,818 26,287,576 26,292,439 Book Value as at 31st March 2010 `
Current Investment: Quoted Equity HDFC Bank Ltd- Adr ICICI Bank Ltd Adr Infosys Technologies Ltd Adr Sterlite Ind. Ltd. Adr Tata Comm. Ltd. Sponsored Adr Tata Motors Adr Wipro Ltd. Adr Mahanagar Telephone Nigam Ltd. Mphasis Limited Rural Electrification Corpn Limited Coal India Limited Shree Cements Ltd Tata Motors Limited Total Quoted 1,650 2,500 4,000 35,823 22,000 21,500 1,900 48,000 12,000 16,000 5,000 2,000 90,133 11,614,549 5,109,917 11,953,372 23,317,281 9,464,014 25,754,443 912,585 1,847,759 4,611,561 3,735,669 1,732,232 3,427,538 103,481,010 60,942,463 60,942,463
Bonds and Convertible Bonds (Quoted) Foreign Currency Convertible Bonds ZC Ranbaxy Laboratories Limited 18/03/2011 ZC Hotel Leela 25/04/2012 ZC Glenmark Pharmaceuticals Limited 11/01/2011 ZC Pidilite Industries Limited 07/12/2012 0.5% Bharat Forge Limited 20/04/2010 ZC Jubilant Organosys 20/05/2011 ZC 3I Infotech 27/07/2012 ZC 3I Infotech Limited 17/03/2011 ZC Amtek Auto 16/06/2011 ZC Aurobindo Pharma 17/05/2011 ZC Ballarpur Industries 13/07/2010 ZC Bharat Forge Limited 28/04/2012 460,000 1,500,000 955,000 700,000 150,000 700,000 500,000 1,000,000 926,000 1,900,000 40,000 1,700,000 500,000 474,000 300,000 100,000 29,813,176 94,234,809 52,064,105 35,689,197 7,446,611 28,501,106 27,047,479 48,052,619 53,341,189 107,311,958 1,927,341 96,002,033 26,598,254 28,234,663 17,899,214 5,287,788
12
Its grt 2b 25
Reports
7 a. Investments (Contd.) Script Name Quantity 31st March 2011 Quantity 31st March 2010 Book Value as at 31st March 2011 ` ZC Bharat Forge Limited 28/04/2013 ZC Financial Technologies India 21/12/2011 ZC India Cements 12/05/2011 ZC Sintex 13/03/2013 4.50 % Videocon Industries 25/07/2011 ZC Punj Lloyd Ltd 0% 04/08/11 ZC Hindustan Construction 0% 04/01/2011 ZC Jaiprakash Asso. 09/12/12 ZC Sintex 3/13/13 4.5% Tata Steel Ltd 11/21/14 ZC 3I Infotech Ltd 04/03/12 Total Foreign Currency Convertible Bonds 850,000 800,000 900,000 1,500,000 2,000,000 1,132,640 7,000,000 800,000 650,000 800,000 1,100,000 785,000 46,837,482 49,130,811 52,861,664 69,837,893 102,223,266 62,127,399 639,381,356 658,360,049 44,561,554 Book Value as at 31st March 2010 ` 41,731,314 37,247,356 48,343,600 44,263,909 39,123,615
Foreign Currency Bonds 5.25 % Axis Bank 30/09/2015 7.125 % Axis Bank 28/06/2022 7.167 % Axis Bank 31/12/2049 4.3/4% Axis Bank Limited 05/02/16 6.625 % Bank of Baroda 25/05/2022 4.75% Bank of Baroda 10/07/15 5% Bank Of Baroda 08/24/16 6.994 % Bank of India Jersey 29/03/2049 6.625 % Bank of India 22/09/2021 4.75% Bank Of India 09/30/15 Ex-Im Bk Of India Float 03/28/12 Bank Of India Var 09/21 22/09/2021 6.365 % Canara Bank 28/09/2021. 5.125% Canara Bank London 09/09/16 6.375 % ICICI Bank 30/04/2022 6.625 % ICICI Bank 02/10/2012 7.25 % ICICI Bank 29/04/2049 6.375 % ICICI Bank 01/08/2049 5.75% ICICI Bank Ltd. 12/01/2012 5% ICICI Bank Ltd 01/15/16 8.25 % Reliance Industries 9.375 % Reliance industries 24/06/2026 7.14 % State Bank of India 29/06/2049 3,000,000 4,000,000 1,000,000 500,000 40,000 5,792,000 1,900,000 1,000,000 100,000 1,395,000 300,000 138,116,107 181,765,652 46,781,759 26,333,401 1,701,023 273,687,193 1,250,000 250,000 2,230,000 1,200,000 84,556,981 41,773,302 4,773,646 58,116,499 12,043,003 3,000,000 250,000 3,000,000 3,000,000 1,300,000 800,000 55,898,887 11,017,864 101,131,422 53,510,708 210,000 1,850,000 2,000,000 42,000 1,000,000 133,584,323 11,371,725 135,702,139 135,542,935 52,788,763 36,314,203 9,658,879 83,532,009 89,493,782 1,784,225 38,316,104
Its grt 2b 25
13
7 a. Investments (Contd.) Script Name Quantity 31st March 2011 Quantity 31st March 2010 Book Value as at 31st March 2011 ` Book Value as at 31st March 2010 `
6.439 % State Bank of India Hybrid Perpetual 29/03/2049 4.1/2% State Bank of India 11/30/15 7.25 % UTI Bank 12/08/2021 HUWHY Strnt 12/29/49 4.1/4% Relecl 01/25/16 4.3/4% IDBI Bank Difc 02/05/16 Total Foreign Currency Bonds Total Bonds and Convertible 2,000,000 1,000,000 3,000,000 2,831,600
1,060,000 124,768,613 930,000 88,092,759 44,191,921 133,871,960 1,736,832,490 2,376,213,846
46,618,323
42,390,930
562,398,550 1,220,758,599
Equity and other similar funds (Unquoted) Kotak India Focus Fund (Class B) Kotak India Realty Fund (Class B) Kotak India Venture (Class B) Seaf India International Growth Fund Kotak Infinity Fund Class R Kotak Liquid Fund (R) Kotak WM India Fund - Class C- Kotak India Dynamic Fund (Series I) Kotak India Private Equity Fund GIOFL-Kotak India Income Fund(R.) India Absolute Opportunities Fund (Class C) Investment in Kotak India Focus Fund II Kotak India Real Estate Fund I Kotak India Private Equity Fund Ltd Daily Range Accrual Notes Total Equity and other similar funds Grand Total 20,000 210,617,726 38,952,060 44,550 44,595 89,190,000 964,930,617 3,470,917,912 899,149,530 2,207,143,030 164,171,002 44,595 307,893 461,558,250 224,500,000 44,855 44,900 309,945 451,245,000 218,469,930 44,900 4,490,000
14
Its grt 2b 25
Reports
7 b. Derivatives: The open futures contracts as at 31st March 2011 are as follows: Scrip Name Exchange: NSE HDFC Bank Ltd ICICI Bank Ltd Infosys Technologies Ltd. Mahanagar Telephone Nigam Ltd. Mphasis Limited Rural Electrification Corpn Limited Sterlite Industries (India) Ltd. Tata Communications Limited Tata Motors Limited Wipro Ltd Crompton Greaves Ltd Havells India Limited HCL Technologies Ltd Hindalco Industries Ltd. Polaris Software Lab Limited Interest rate futures June 11 CBT 5 Yr T Note (Sell) 30 June 2011 170 lots 5,208.21 (Sell) (Sell) (Sell) (Sell) (Sell) (Sell) (Sell) (Sell) (Sell) (Sell) Buy Buy Buy Buy Buy 28 April 2011 28 April 2011 28 April 2011 28 April 2011 28 April 2011 28 April 2011 28 April 2011 28 April 2011 28 April 2011 28 April 2011 28 April 2011 28 April 2011 28 April 2011 28 April 2011 28 April 2011 (5,250) (5,250) (4,000) (48,000) (12,000) (16,000) (144,000) (75,000) (20,500) (3,000) 10,000 5,000 10,000 10,000 10,000 Buy/(Sell) Expiry Quantity Price at 31st March 2011 ` 2,356.70 1,120.90 3,255.40 45.90 419.85 255.95 174.75 241.60 1,230.35 481.65 275.15 374.60 477.60 209.80 190.85
Currency forwards
During the year, the Company has entered into various currency forwards, both deliverable and non-deliverable in order to hedge its investments in Indian Rupee and Great Britain Pounds. The details of outstanding contracts as at 31 March 2011 and the corresponding mark to market are shown below: Non deliverable forwards: Currency Pair USD-INR USD-GBP Currency option: Currency Pair USD-INR 8. Leases There is no long-term lease agreement. Hence, there are no material non-cancellable operating lease rentals. 9. Earnings per equity share Particulars Weighted average number of equity shares used in computation of basic earnings per share Basic and diluted earnings per share (`) Earnings used in the computation of basic and diluted earnings per share As at 31st March 2011 4,081,650 112.83 460,542,017 As at 31st March 2010 4,081,650 164.73 672,380,234 Its grt 2b 25 Gain/(Loss) ` (2,180,189) Notional Contract Value ` Long: 250,638,300 Gain/(Loss) ` (12,970,805) (8,531,682) Notional Contract Value ` Long: 672,166,350 Short: 250,638,300 Long: 183,809,015
15
10.
Related Party Transactions Nature of relationship Nature of transactions Volume of transaction for the period ended Debit/(credit) Balance as at 31st March 2011 31st March 2010 17,057,249 80,798 1,033,191 (52,318,540) 64,551,966 4,111,166 (49,935,801) 11,901,308 6,072,350 (71,723,020)
Related parties
31st March 2011 31st March 2010 3,573,843 59,702,314 (6,980,054) (320,638) (89,190) (200,677,500) (855,689) (440,465) 3,408,808 24,606,098 4,971,736 2,408,984 11,079,689 (246,950,000) (789,611) (515,677)
Kotak Mahindra (UK) Limited
Associate and Fellow Subsidiary
Facilitation charges/ Brokerage Conversion / Custodial charges Interest Expense Referral fees Subordinated loan Current account
20,961,018 508,705 (42,672,082) 79,692,999 2,303,867 (1,965,369) 9,804,332 5,980,458 (68,091,591)
Kotak Investment Advisors Limited Kotak Securities Limited
Fellow Subsidiary
Advisory Fees
Broker/ investment Reconversion advisory services Margin Derivatives Brokerage Cost Recovery Referral fees
Kotak Mahindra, INC.
Fellow Subsidiary
Loan Referral fees Interest Expense
Kotak India Private Equity Fund Kotak Mahindra Bank Limited
Investment Manager Holding Company
Investment Management Fee & Fund Expense Clearing Charges & ESOP cost Reimbursement Bank Balances
1,644,370
1,397,116
19,265
313,627
(211,517,398) (19,749,204)
(222,758,582) (20,573,442)
125,334,827
22,762,854 (281,972)
Kotak India Realty Fund
Investment Manager
Investment Management Fee Investment Management fee & fund expense Interest Income
Kotak India Venture Investment (Offshore) Limited Manager Global Investment Fellow Opportunities Subsidiary Fund Limited Kotak Mahindra Fellow Financials Services Subsidiary Limited
(1,703,201)
(617,143)
Transfer of assets
3,979,702
3,743,538
Current year ` Directors remuneration included in personnel cost During the year compensation to Key Managerial Personnel was ` 3,860,832 (2010: ` 32,759,111) 3,860,832
Previous year ` 32,759,111
16
Its grt 2b 25
Reports
11.
Stock Option Scheme Kotak Mahindra Bank Limited, the Parent Company of Kotak Mahindra (International) Limited has formulated and adopted the following Employee Stock Option Schemes (ESOS) in accordance with the SEBI (Employee Stock Option Scheme) Guidelines, 1999 issued by the Securities and Exchange Board of India (SEBI). a. b. c. Kotak Mahindra Equity Option Scheme 2002-03 Kotak Mahindra Equity Option Scheme 2005 Kotak Mahindra Equity Option Scheme 2007
These schemes provide for the grant of options to employees of the Bank and its subsidiaries to acquire equity shares of the Bank that vest in a graded manner and that are to be exercised within a specified period. In accordance with the SEBI guidelines, the excess, if any, of the market price of the share at the date of the grant of the option under ESOS over the exercise price of the option is amortised on a straight line basis over the vesting period and is recovered from the subsidiary to the extent that it pertains to its employees. These options are accounted for as being equity settled in the consolidated accounts of the Parent. Had the Company recorded the compensation cost computed on the basis of fair valuation method instead of Intrinsic value method, employee compensation cost would have been higher by ` 67,575 (Previous Year ` 580,304) and the profit after tax would have been lower by the same amount. 12. 13. Previous year figures have been regrouped and reclassified wherever necessary. Holding Company: Kotak Mahindra Capital Company Limited and Kotak Mahindra Bank Limited, companies incorporated in India, are the Companys shareholders. Kotak Mahindra Bank Limited is the Companys holding Company. Signatures to Schedules 1 to 15
As Per our Report attached For V. C. Shah & Co Chartered Accountants A. N. Shah Partner Mumbai, 27th April 2011
Mr Bilal Ibrahim Sassa Director Mumbai, 27th April 2011
Mr Ramtoola Ashraf Director
Its grt 2b 25
17
Its grt 2b 25
KOTAK MAHINDRA (UK) LIMITED
Its grt 2b 25
BOARD OF DIRECTORS : MR. HASAN ASKARI, MR. ABHISHEK BHALOTIA, MR. CHENGALATH JAYARAM, MR. GIJO JOSEPH MR. PAUL VARGHESE PARAMBI, MR. RUCHIT PURI, MR. VISWANATHAN VARADARAJAN
Directors Report
KOTAK MAHINDRA (UK) LIMITED The Directors present their Directors' Report and the audited financial statements of the Company for the year ended 31st March 2011. PRINCIPAL ACTIVITY AND BUSINESS REVIEW The Company's primary focus is investment management, broker dealing and corporate finance. As a broker dealer the Company arranges deals in bonds as well as in depository receipts. The Company is authorised and regulated by the Financial Services Authority ("FSA") and is a member of the London Stock Exchange ("LSE"). The Company has two branches - Dubai (regulated by the Dubai Financial Services Authority) and Singapore (regulated by the Monetary Authority of Singapore). The Indian equity markets were range bound in year 2010-11. The markets witnessed a rise of about 10% which was primarily captured in the first half of the year; for the remainder of the year markets have been volatile yet range bound. The year was a difficult one with many India dedicated funds seeing net outflow of funds. However, in this environment the Company introduced a number of equity mutual funds into the markets, including an Indian equity fund of funds investing in best of breed Indian funds and an Indian consumption fund investing in companies likely to benefit from the growth in consumption in India. During the year the Company also saw the launch of a US open ended fund investing in Indian equities. The Company also raised INR 11,400 million in debt funds investing into India. The assets managed/ advised by the Company closed the year at INR 84,909 million (2010: USD 70,403 million). POLITICAL AND CHARITABLE DONATIONS The Company has made no political or charitable donations during the year (2010: NIL). FUTURE OUTLO\OK With the sharp rise of Indian markets in the year 2011-12 to levels close to pre-crisis levels and with high inflation, international investors are looking at India cautiously. The Company with its wide suite of equity mutual funds for India and its large sales team in different locations is well positioned to take advantage of any requirements of the international investor in India. The Indian equity fund launched in the US will help the Company in gaining visibility and raising assets in the United States of America. There is also a concerted effort that is in place to build retail distribution for the Company's equity funds. With the high short term interest rates prevailing in India, the fixed income markets in India also look quite compelling for the international investor and the Company is looking to provide debt solutions to such investors. The Company has also added to its trading and sales teams for the fixed income trading business. This should help increase the revenues of this activity going forward. The Company shall look to further strengthen its already extensive network of market counterparties and clients, which we believe should be a key to sustenance and future growth of the fixed income trading business. The Company is positive on the outlook for business in the coming year. FINANCIAL RESULTS The profit on ordinary activities after taxation for the year ended 31st March 2011 was ` 91,854,036 (2010: ` 131,732,711). DIVIDEND The Directors do not recommend payment of any dividend (2010: NIL). KEY RISKS The activity profile of the Company is focused on India and hence the Company is significantly exposed to an emerging market economy risk. The services rendered as a Foreign Institutional Investor are dependent on continued registration with the Indian Securities Regulator. The reporting currency of the Company is the US Dollar and the Company is consequently exposed to the currency risk posed by adverse movements in US Dollar vis--vis Pound Sterling and the Singapore Dollar. DIRECTORS The Directors as at the date of this Report and who served during the period are: Mr. Viswanathan Varadarajan Mr. Paul Verghese Parambi Mr. S. Shyam Kumar (Resigned w.e.f 1st October 2010) Mr. Abhishek Bhalotia Mr. C. Jayaram Mr. Hasan Askari Mr. Ruchit Puri Mr. Gijo Joseph (Appointed w.e.f 1st October 2010) Its grt 2b 25
QUALIFYING THIRD PARTY INDEMNITIES There are no qualifying third party indemnities in force for the benefit of one or more of the directors and officers at the time of this report. GOING CONCERN The Directors have considered the Company's ability to continue as a going concern and after due inquiry to the management, believe that the Company has sufficient resources to continue operating for the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis. FIXED ASSETS Information on the tangible fixed assets of the Company is given in the financial statements. DIRECTORS DECLARATION The directors who held office at the date of approval of this Directors' Report confirm that, so far as they are each aware, there is no relevant audit information of which the Company's auditors are unaware; and each director has taken all the steps that he ought to have taken as a director to make himself aware of any relevant audit information and to establish that the Company's auditors are aware of that information. AUDITORS In accordance with Section 485 of the Companies Act 2006, a resolution to reappoint KPMG Audit Plc as auditor of the Company will be proposed at the next Annual General Meeting. By Order of the Board of Directors, VISWANATHAN VARADARAJAN Director and MLRO Registered Office: Farringdon Place, 20 Farringdon Road London EC1M 3AP
Date: 26th April 2011
Kotak Mahindra (UK) Limited Annual Report 2010-11
Its grt 2b 25
Reports
Auditors Report
To the members of Kotak Mahindra (UK) Limited. The financial statements of Kotak Mahindra (UK) Limited as at 31st March 2011, being a company registered in the United Kingdom, are audited by KPMG Audit Plc, Chartered Accountants, London and we have been furnished with their audit report dated 20th April 2011. We are presented with the accounts in Indian Rupees prepared on the basis of aforesaid accounts to comply with requirements of section 212 of the Companies Act 1956. We give our report hereunder: We have audited the attached Balance Sheet of Kotak Mahindra (UK) Limited as at 31st March 2011, the Profit and Loss account and also the Cash Flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the company's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, on the basis of information and explanations given to us and relying upon the above referred financial statements and auditor's report thereon, the accounts read with the notes thereon give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: (a) in the case of the Balance Sheet of the state of affairs of the Company as at 31st March 2011; (b) in the case of the Profit and Loss account of the Profit for the year ended on that date; and (c) in the case of the Cash Flow Statement, of the cash flows for the year ended on the date. For V. C. Shah & Co. Chartered Accountants Firm Registration No :109818W
A.N. Shah Partner Membership No. 42649 Mumbai, 26th April 2011.
Its grt 2b 25

Schedule Sources of Funds Shareholders' Funds Share Capital Reserves and Surplus Unsecured Loans Total Application of Funds Fixed Assets Gross Block Less : Depreciation Net Block Investments (Refer note 4 of Schedule 14) Deferred Tax Asset Current Assets, Loans and Advances Sundry Debtors Cash and Bank Balances Loans and Advances 5 6 7 1,159,168,994 1,395,336,521 29,769,991 2,584,275,506 Less: Current Liabilities and Provisions Liabilities Provisions 8 9 1,615,665,563 25,563,600 1,641,229,163 Net Current Assets Total Significant Accounting Policies and Notes to Financial Statements Schedules referred to above form an integral part of the Balance Sheet 14 943,046,343 959,157,609 868,272,614 34,791,856 903,064,470 564,680,725 875,001,862 666,389,158 766,931,891 34,424,146 1,467,745,195 4 59,185,096 43,073,830 16,111,266 44,689,906 35,501,747 9,188,159 297,561,587 3,571,391 1 2 3 70,078,422 885,505,344 3,573,843 959,157,609 70,078,422 801,514,632 3,408,808 875,001,862 31st March 2011 ` 31st March 2010 `
In terms of our report of even date For V. C. Shah & Co Chartered Accountants A. N. Shah Partner Mumbai Dated: 26th April 2011
V. Varadarajan Director Dated: 26th April 2011
A. Bhalotia Director
Its grt 2b 25
Reports
Schedule For the year ended 31st March 2011 ` For the year ended 31st March 2010 `
Income Service Income (net) Interest Income Foreign Exchange Gain (Net) Other Income Total Income Expenditure Personnel Cost Interest and Other Financial Charges Establishment and Other Expenses Total Expenditure Profit before Depreciation and Taxation Depreciation Profit Before Taxation Provision for Taxation Current Tax Deferred Tax Profit After Taxation Add: Balance brought forward from Previous Year Profit carried to Balance Sheet Earnings per Share (Refer Note 8 - Schedule 14) Basic and diluted (`) Face value per share () Significant Accounting Policies and Notes to Financial Statements Schedules referred to above form an integral part of the Profit and Loss Account 14 95.76 1.00 137.34 1.00 33,077,281 3,624,731 91,854,036 768,014,939 859,868,975 54,989,484 (3,776,010) 131,732,711 636,282,228 768,014,939 11 12 13 367,726,241 1,771,651 160,262,812 529,760,704 136,540,213 7,984,165 128,556,048 389,466,962 3,121,194 118,100,411 510,688,567 192,530,325 9,584,140 182,946,185 10 617,517,424 19,517,285 3,211,140 26,055,068 666,300,917 664,597,055 26,300,583 8,997,339 3,323,915 703,218,892
Its grt 2b 25
For the year ended 31st March 2011 ` Cash Flow from Operating Activities Net Profit before taxation Adjustments for: Interest Income Amortisation of premium on bonds Gain on sale of Investment Interest Expenses Exchange Adjustments Depreciation (7,998,424) (6,636,570) (6,118,693) 1,046,850 (7,858,845) 7,984,165 108,974,531 (7,892,216) 2,346,459 (103,510,921) 9,584,140 83,473,647 128,556,048 182,946,185 For the year ended 31st March 2010 `
Operating Profit before Working Capital Changes Adjustments for: (Increase) / Decrease in Loans and Advances (Increase) / Decrease in Sundry Debtors Increase / (Decrease) in Current Liabilities Increase / (Decrease) in Other Liabilities & Provisions Cash Generated from Operations Direct taxes paid NET CASH FLOW FROM OPERATING ACTIVITIES (A) Cash Flow from Investing Activities Purchase of Investments Sale of Investment Purchase of fixed assets Interest Income on Term Loan Interest Income on Investments NET CASH FLOW FROM / (USED IN) INVESTING ACTIVITIES (B) Cash Flow from Financing Activities Short term loan given during the year Short term loan given above returned during the year Interest Expenses
4,654,155 (492,779,836) 747,392,949 13,990,966 382,232,765 (56,296,503) 325,936,262
3,050,232 (297,691,668) 299,479,724 1,413,101 89,725,036 (53,270,573) 36,454,463
310,316,850 (14,800,055) 508,705 7,489,718 303,515,218
(297,561,587) (2,172,756) 1,033,170 6,859,046 (291,842,127)
(1,046,850)
(372,240,000) 372,240,000 (2,346,459)
Its grt 2b 25
Reports
(Continued) For the year ended 31st March 2011 ` For the year ended 31st March 2010 ` (2,346,459) (257,734,123) 1,024,666,014 766,931,891 (257,734,123)
NET CASH FLOW USED IN FINANCING ACTIVITIES (C) Net Increase / (Decrease) in Cash and Cash Equivalents (A + B + C) Cash and Cash Equivalents at the beginning of the year Cash and Cash Equivalents at the end of the year
(1,046,850) 628,404,630 766,931,891 1,395,336,521 628,404,630
1. 2.
The Cash Flow Statement has been prepared under the 'Indirect Method' as set out in the Accounting Standard -3 on Cash Flow Statements issued by the Institute of Chartered Accountants of India. Figures in brackets indicate cash outflow. The previous year's figures have been re-grouped, wherever necessary in order to conform to current year's presentation.
3.
This is the Cash Flow Statement referred to in our report of even date
Its grt 2b 25

31st March 2011 ` Schedule 1 - Share Capital Authorised 1,000,000 Ordinary shares of 1 each Issued and Subscribed and fully paid up 959,200 (Previous year 959,200) Equity shares of 1 each fully paid up (Of the above 489,200 shares are held by Kotak Mahindra Bank Limited, the holding company) Total 70,078,422 70,078,422 31st March 2010 `
70,078,422
70,078,422
Schedule 2 - Reserves and Surplus Profit and Loss Account Translation Reserve Balance brought forward from previous year Increase / (decrease) during the year 33,499,693 (7,863,324) 25,636,369 Total 885,505,344 138,558,713 (105,059,020) 33,499,693 801,514,632 859,868,975 768,014,939
Schedule 3 - Unsecured Loans Loan from Others (Refer note 6, Schedule 14) Total 3,573,843 3,573,843 3,408,808 3,408,808
Schedule 4 - Fixed Assets Gross Block Description As at 1st April 2010 2,293,544 19,566,705 19,692,412 926,618 2,210,627 44,689,906 48,028,288 Additions Sales/ Adjustments* As at 31st March 2011 2,530,788 30,625,629 22,912,745 920,324 2,195,610 59,185,096 44,689,906 As at 1st April 2010 1,965,524 15,831,962 14,567,016 926,618 2,210,627 35,501,747 29,863,760 Depreciation For the year Sales/ Adjustments* As at 31st March 2011 2,278,415 19,372,534 18,306,947 920,324 2,195,610 43,073,830 35,501,747 Net Block As at 31st March 2011 252,373 11,253,095 4,605,798 16,111,266 9,188,159
As at 31st March 2010 328,020 3,734,743 5,125,396 9,188,159 18,164,528
Assets Office Equipments Fixtures and fittings Computers Motor Vehicle Leasehold Improvements Total Previous Year 252,809 11,193,167 3,354,079 14,800,055 2,172,756 (15,565) (134,243) (133,746) (6,294) (15,017) (304,865) (5,511,138) 333,380 3,727,920 3,922,865 7,984,165 9,584,140 (20,489) (187,348) (182,934) (6,294) (15,017) (412,082) (3,946,153)
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Reports
31st March 2011 ` Schedule 5 - Sundry Debtors (Unsecured, considered good unless otherwise stated) Considered good Over six months Others Total 1,159,168,994 1,159,168,994
31st March 2010 `
666,389,158 666,389,158
Schedule 6 - Cash and Bank Balances Bank Balance Scheduled Bank In Current Account In Deposit Account Other than Scheduled Bank In Current Account Total 650,865,220 1,395,336,521 211,381,074 766,931,891 127,465,841 617,005,460 20,738,919 534,811,898
Schedule 7 - Loans and Advances (Unsecured, considered good unless otherwise stated) Advances recoverable in cash or in kind or for value to be received Total 29,769,991 29,769,991 34,424,146 34,424,146
Schedule 8 - Current Liabilities Sundry Creditors Total Schedule 9 - Provisions Provision for Taxation {Net of Advance Tax ` 20,572,797 (Previous Year ` 18,302,262)} Provision for Gratuity & other statutory provision Provision for Stock Appreciation Rights Total 1,067,298 16,680,568 7,815,734 25,563,600 24,286,520 10,505,336 34,791,856 1,615,665,563 1,615,665,563 868,272,614 868,272,614
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Schedules Forming Part of the Profit and Loss Account

For the year ended 31st March 2011 ` Schedule 10 - Interest Income Interest on Bank Deposit Interest on Term Loan Interest on Investments Total 11,518,861 508,705 7,489,719 19,517,285 18,408,367 1,033,170 6,859,046 26,300,583 For the year ended 31st March 2010 `
Schedule 11 - Personnel Cost Salaries and Allowances Social Security Costs Directors Remuneration Total 315,519,247 11,199,189 41,007,805 367,726,241 346,665,767 8,823,847 33,977,348 389,466,962
Schedule 12 - Interest and Other Financial Charges Loan Bank Charges Total 1,046,850 724,801 1,771,651 2,346,459 774,735 3,121,194
Schedule 13 - Establishment and Other Expenses Travelling Expenses Foreign Auditors Remuneration Audit Fees In Other Capacity Legal and Professional Expenses Communication Expenses Rent, Rates & Taxes Recruitment Expenses Advertising, Business Promotion and Entertainment Repairs & Maintainance Other Expenses Total 4,603,218 273,424 69,159,941 11,716,758 22,088,709 5,241,245 7,268,441 2,731,724 9,098,628 160,262,812 4,546,619 284,835 30,858,997 11,703,475 27,255,374 857,508 6,714,549 3,702,794 9,912,902 118,100,411 28,080,724 22,263,358
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Reports
Schedule 14 SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO THE ACCOUNTS I. Significant Accounting Policies: A. Method of Accounting The accounts are prepared in accordance with accounting principles generally accepted in India. The Company follows accrual method of accounting B. Use of estimates The preparation of financial statements requires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as on the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Actual results could differ from these estimates. C. Conversion to Indian Rupees For the purpose of accounts, all income and expense items are converted at the average rate of exchange applicable for the period. All assets and liabilities are translated at the closing rate as on the Balance Sheet date. The Share Capital is carried forward at the rate of exchange prevailing on the transaction date. The resulting exchange difference on account of translation at the year end is transferred to Translation Reserve Account and the said account is being treated as Reserves and Surplus. D. Revenue Recognition Commission, fees and other revenue are invoiced and recognised on an accrual basis. Interest income is recognised in the income statement as accrued. Premium or discount is amortised or accreted on debt securities over the maturity period of such investments using effective interest rate method. E. Taxes Current tax is expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the balance sheet date and any adjustments payable in respect of previous years. Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. F. Fixed assets Fixed assets are stated at cost less accumulated depreciation. Depreciation is provided on a straight-line basis over the expected useful lives of such assets as estimated by the Management. Additions during the year bear a due proportion of the annual depreciation charge. The estimated useful lives over which assets are depreciated are as follows: Furniture and Fittings Computers Other Equipment Motor Vehicles Leasehold Equipments G. Investments All investment transactions are recorded on a trade date basis and cost of investments is determined on a first-in, first-out basis. The Company has classified its investments in debt securities as current investments. Investments are initially recognised at cost, including transaction costs. Investments are subsequently carried at cost or market value whichever is less, based on the quoted bid and offer prices, respectively. When current bid and offer prices are unavailable, the price of the most recent transaction is used. H. Operating Leases Leases which do not transfer to the Company substantially all the risks and benefits incidental to ownership of the leasing assets are operating leases. Costs in respect of operating leases are charged on a straight line basis over the lease term. I. Earnings per share Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. Its grt 2b 25 3 years 3 years 5 years 3 years 3 years
11
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares. J. Provisions and Contingencies Provision is recognised when there is a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent Liabilities are not recognized but are disclosed in the notes unless the outflow of resources is remote. Contingent assets are neither recognised nor disclosed in the financial statements. K. Employee Stock Option Scheme
Cash-settled scheme:
The cost of cash-settled scheme (stock appreciation rights) is measured initially using intrinsic value method at the grant date taking into account the terms and conditions upon which the instruments were granted. This intrinsic value is amortised on a straight-line basis over the vesting period with a recognition of corresponding liability. This liability is remeasured at each balance sheet date up to and including the settlement date with changes in intrinsic value recognised in profit and loss account in Payments to and provision for employees II. Notes to the Accounts: 1. The Companys primary business is investment management, broker dealing and corporate finance. As a broker dealer the Company arranges deals in bonds as well as in depository receipts. The Company is authorised and regulated by the Financial Services Authority (FSA) and is a member of the London Stock Exchange (LSE). The Company has two branches Dubai (regulated by the Dubai Financial Services Authority) and Singapore (regulated by Monetary Authority of Singapore). The Company is a subsidiary of Kotak Mahindra Bank Ltd (KMBL). The accounts have been prepared and audited to attach with the accounts of KMBL, the Holding Company to comply with the provisions of the Indian Companies Act, 1956. 2. 3. The transactions are in local currency, which have been converted into Indian Currency for reporting and the rate applied is as per para (C) of the significant accounting policies. Leases:
The total annual commitments of the Company under non-cancellable operating leases are as under: Land and Buildings 31st March 2011 ` Operating leases which expire : Within one year Between one to five years 4. Investments Script Name Quantity 31st March 2011 Current Investment: Bonds and Convertible Bonds (Quoted) ZC Ranbaxy Laboratories Ltd 18/03/2011 ZC Ballarpur Industries 13/07/2010. 8.75% Vedanta Resources 15/01/2014 Total Bonds and Convertible Bonds 2,000,000 900,000 3,000,000 5,900,000 106,845,926 53,713,047 137,002,614 297,561,587 Quantity 31st March 2010 Book Value as at 31st March 2011 ` Book Value as at 31st March 2010 ` 14,764,874 28,071,490 16,343,600 9,967,800 31st March 2010 `
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Reports
5.
Details of Bank Balances * As on 31st March 2011 ` Scheduled Banks Others Euroclear Bank, Brussels Total 650,865,220 1,395,336,521 211,381,074 766,931,891 744,471,301 As on 31st March 2010 ` 555,550,817
* Includes client money deposits aggregating ` 420,986,006 (previous year ` 138,761,390) earmarked in a separate bank account held in the name of the Company 6. Unsecured loan from Others represents a long term subordinated loan of ` 3,573,843 (Previous Year ` 3,408,808) from fellow subsidiary company, Kotak Mahindra (International) Limited. The loan is unsecured and interest free and constitutes regulatory capital as approved by the Regulatory Authority Financial Service Authority. It is repayable upon giving or receiving two years notice to or from the fellow subsidiary company. No such notice had been given or received as on 31st March 2011. Components of deferred tax balances are as follows: 31st March 2011 Deferred tax asset Unrealized gains on investments Net Deferred Tax Asset 8. Earnings per equity share As at 31st March 2011 959,200 95.76 91,854,036 As at 31st March 2010 959,200 137.34 131,732,711 3,571,391 3,571,391 31st March 2010
7.
Particulars Weighted average number of equity shares used in computation of basic earnings per share Basic and diluted earnings per share (`) Earnings used in the computation of basic and diluted earnings per share 9.
The Company has taken advantage of the exemptions in Financial Reporting Standard No. 8 Related Party transactions, not to disclose transactions with Kotak Mahindra Bank Limited and other group companies as it is a subsidiary of Kotak Mahindra Bank Limited (see note 12 below) The following amounts are due from directors as at 31st March 2011. Mr. S. ShyamKumar * Maximum balance due during the year is ` 2,563 (Previous Year ` 427,784) Mr. V. Varadarajan Maximum balance due during the year is ` 450,905 (Previous Year ` 144,560) Mr. Abhishek Bhalotia Maximum balance due during the year is ` 1,323,672 (Previous Year ` 438,970) Mr. Gijo Joseph Maximum balance due during the year is ` 326,393 (Previous Year `Nil) * Resigned w.e.f 1st October 2010 ` 212,941 (Previous Year ` Nil) ` 8,005 (Previous Year ` 292,647) ` 63,464 (Previous Year ` Nil) ` Nil (Previous Year ` 1,776)
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10.
Stock Option Scheme Kotak Mahindra Bank Limited, the Parent Company of Kotak Mahindra (UK) Limited has formulated and adopted the following Employee Stock Option Schemes (ESOS) in accordance with the SEBI (Employee Stock Option Scheme) Guidelines, 1999 issued by the Securities and Exchange Board of India (SEBI). a) b) Kotak Mahindra Equity Option Scheme 2005 Kotak Mahindra Equity Option Scheme 2007
In accordance with SEBI (Employees Stock Option Scheme and Employee Stock Purchase) Guidelines, 1999 and the guidance note on Accounting for Employee Share-based Payments issued by the Institute of Chartered Accountants of India, the excess, if any, of the market price of share preceding the date of grant of the option under ESOPs over the exercise price of option is amortised on a straight-line basis over the vesting period. The Company has reimbursed the Bank ` 4,712,689 (Previous year ` 15,044,642) during the year on account of such cost and the same is forming part of employee cost and included under the head Personnel Cost Stock appreciation rights (SARs) During the year, the Management had approved (SARs) to be granted to eligible employees as and when deemed fit. The SARs are to be settled in cash and will vest in the manner as provided in the scheme / grant letters to employees. The contractual life (which is equivalent to the vesting period) of the SARs ranges from 1.38 years to 3.64 years. Detail of activity under each plan is summarized below: No. of SARs Particulars Outstanding at the beginning of the year Granted during the year Exercised during the year Expired during the year Forfeited during the year Outstanding at the end of the year Year Ended 31st March 2011* 64,490 17,810 5,950 40,730
*The number of SARs have been adjusted for split of the underlying equity shares from ` 10 paid up to ` 5 paid up per share. Effect of share based payment to employees on the profit and loss account and on its financial position Year ended 31st March Total Employee Compensation Cost pertaining to share-based payment plans Closing balance of liability for cash-settled options 2011 22,368,472 7,815,734
Had the Company recorded the compensation cost computed on the basis of fair valuation method instead of intrinsic value method, employee compensation cost would have been higher by ` 8,275,680 (Previous Year ` 18,731,698) and the profit after tax would have been lower by the same amount. 11. 12. For the purpose of comparison, figures for the previous year have been given, which have been regrouped / reclassified wherever necessary. The Companys parent company is Kotak Mahindra Bank Limited which is a banking company incorporated in India.
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KOTAK MAHINDRA INC.
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BOARD OF DIRECTORS : MR. RAVILOCHAN POLA, MR. VISWANATH VARDARAJAN, MR. PAUL PARAMBI, MR. C. JAYARAM
Directors Report
To the shareholders of Kotak Mahindra, Inc. The Directors have pleasure in presenting their Annual Report together with the audited accounts of your Company for the year ended 31st March 2011. OPERATIONS The Company is a 'broker- dealer' registered with the FINRA. FINANCIAL RESULTS AND DIVIDEND The Company's loss for the financial year ended 31st March 2011 amounted to ` 38,058,462 (Previous Year profit - ` 13,874,284). The Directors do not recommend any dividend for the year under review. DIRECTOR 'S RESPONSIBILITY STATEMENT The Directors state as an averment of their responsibility that: (a) (b) the Company has, in the preparation of the annual accounts for the year ended 31st March 2011, followed the applicable accounting standards along with proper explanations relating to material departures, if any; the Directors have selected such accounting policies and applied them consistently and made judgment and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March 2011 and of the profit/loss of the Company for the financial year ended 31st March 2011; the Directors have taken proper and sufficient care to the best of their knowledge and ability, for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and the Directors have prepared the annual accounts on a going concern basis.
(c)
(d)
Ravilochan Pola Director
Varadarajan Viswanathan Director Date: 26th April 2011
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Auditors Report
To the members of Kotak Mahindra, Inc. The financial statements of Kotak Mahindra, Inc. as at 31st March 2011, being a company registered in the United States of America, are audited by Rothstein Kass & Company, P.C., Certified Public Accountants, New Jersey, and we have been furnished with their audit report dated 18th April 2011. We are presented with the accounts in Indian Rupees prepared on the basis of aforesaid accounts to comply with requirements of section 212 of the Companies Act 1956. We give our report hereunder: We have audited the attached Balance Sheet of Kotak Mahindra, Inc. as at 31st March 2011, the Profit and Loss account and also the cash flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the company's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, on the basis of information and explanations given to us and relying upon the above referred financial statements and auditor's report thereon, the accounts read with the notes thereon give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: (a) in the case of the Balance Sheet of the state of affairs of the Company as at 31st March 2011; (b) in the case of the Profit and Loss account of the Loss for the year ended on that date; and (c) in the case of the Cash Flow Statement, of the cash flows for the year ended on the date
A. N. Shah Partner Membership No. 42649 Mumbai, 26th April 2011
Kotak Mahindra, Inc. Annual Report 2010-11
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Reports

Schedule Sources of Funds Shareholders Funds : Share Capital Reserves and Surplus Total 1 2 698,645 272,914,981 273,613,626 698,645 312,284,723 312,983,368 As at 31st March 2011 ` As at 31st March 2010 `
Application of Funds Fixed Assets : Gross Block Less : Depreciation Net Block 3 3,896,429 3,585,780 310,649 3,623,960 3,244,920 379,040
Investments
3,128,339
6,735
Deferred Tax Asset
21,277,516
Current Assets, Loans and Advances: Sundry Debtors Cash and Bank Balances Loans and Advances 5 6 7 6,572,501 33,408,081 218,373,506 258,354,088 Less: Current Liabilities and Provisions : Current Liabilities Net Current Assets Total Significant Accounting Policies and Notes to Financial Statements Schedules referred to above form an integral part of the Balance Sheet 13 8 9,456,966 248,897,122 273,613,626 23,504,398 312,597,593 312,983,368 5,878,322 61,722,605 268,501,064 336,101,991
In terms of our report of even date For V. C. Shah & Co. Chartered Accountants A. N. Shah Partner Mumbai, 26th April 2011 For and on behalf of the Board of Directors
Ravilochan Pola Director Mumbai, 26th April 2011
V. Varadarajan Director
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Schedule
Income Income from Services Interest Income Other Income Total Income Expenditure Personnel Cost Establishment and Other Expenses Total Expenditure Profit/ (Loss) before Depreciation and Taxation Depreciation Profit/ (Loss) before Taxation Current Tax Deferred Tax Profit/ (Loss) After Taxation Add: Balance brought forward from Previous Year Profit /(Loss) Carried to Balance Sheet Earnings per Share (Refer Note (6) - Schedule 13) Basic and diluted (`) Face value per share ($) Significant Accounting Policies and Notes to Financial Statements Schedules referred to above form an integral part of the Profit and Loss Account In terms of our report of even date For V. C. Shah & Co. Chartered Accountants A. N. Shah Partner Mumbai, 26th April 2011 For and on behalf of the Board of Directors 13 (24.86) 0.01 9.06 0.01 11 12 122,190,979 40,859,636 163,050,615 (53,910,436) 370,840 (54,281,276) (5,520,195) 21,743,009 (38,058,462) 267,332,161 229,273,699 114,575,148 22,250,842 136,825,990 23,616,244 700,261 22,915,983 (9,041,699) 13,874,284 253,457,877 267,332,161 9 10 102,992,448 6,147,731 109,140,179 153,514,034 6,787,434 140,766 160,442,234
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Reports
For the year ended 31st March 2011 ` Cash Flow from Operating Activities Net (Loss) / Profit before taxation Adjustments for: Interest Exchange Adjustments Depreciation (5,980,474) (744,057) 370,840 (60,634,967) (6,072,347) (39,093,446) 700,261 (21,549,549) (54,281,276) 22,915,983 For the year ended 31st March 2010 `
Operating Loss before Working Capital Changes Adjustments for: (Increase) / Decrease in Loans and Advances (Increase) / Decrease in Sundry Debtors Increase / (Decrease) in Current Liabilities Cash Generated from Operations Direct taxes paid NET CASH FLOW (USED IN) / FROM OPERATING ACTIVITIES Cash Flow from Investing Activities Purchase of fixed assets Purchase of Investments NET CASH FLOW (USED IN) / FROM INVESTING ACTIVITIES Cash Flow from Financing Activities Interest Loan to fellow subsidiary NET CASH FLOW FROM / (USED IN) / FROM FINANCING ACTIVITIES Net Increase in Cash and Cash Equivalents (A + B + C) Cash and Cash Equivalents at the beginning of the year Cash and Cash Equivalents at the end of the year (C) (B) (A)
(1,772,231) (694,179) (14,047,432) (77,148,809) (77,148,809)
(772,086) 3,694,100 20,309,792 1,682,257 (12,226,613) (10,544,356)
(297,085) (3,121,604) (3,418,689)
(85,265) (85,265)
5,980,474 46,272,500 52,252,974 (28,314,524) 61,722,605 33,408,081 (28,314,524)
6,072,347 (120,150,000) (114,077,653) (124,707,274) 186,429,879 61,722,605 (124,707,274)
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Notes: 1. The Cash Flow Statement has been prepared under the 'Indirect Method' as set out in the Accounting Standard -3 on Cash Flow Statements issued by the Institute of Chartered Accountants of India. Figures in brackets indicate cash outflow. The previous year's figures have been re-grouped, wherever necessary in order to conform to this year's presentation.
2. 3.
This is the Cash Flow Statement referred to in our report of even date For V. C. Shah & Co. Chartered Accountants A. N. Shah Partner Mumbai, 26th April 2011 For and on behalf of the Board of Directors
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Reports

As at 31st March 2011 ` Schedule 1 - Share Capital Authorised 2,000,000 Common stock, US$ 0.01 each (Previous year 2,000,000 Common stock, US$ 0.01 each) As at 31st March 2010 `
Issued ,Subscribed and Paid up 1,530,621 (Previous year 1,530,621 Common stock of US $ 0.01 each fully paid up) (Of the above, 780,620 common stocks are held by Kotak Mahindra Bank Limited, the holding company) Total 698,645 698,645 698,645 698,645
Schedule 2 - Reserves and Surplus Share Premium Account Profit and Loss account Translation Reserve Balance brought forward from previous year Addition during the year 10,918,837 (1,311,280) 9,607,557 Total 272,914,981 50,099,166 (39,180,329) 10,918,837 312,284,723 34,033,725 229,273,699 34,033,725 267,332,161
Schedule 3 - Fixed Assets Gross Block Description As at 1st April 2010 Additions Sales/ As at Adjustments* 31st March 2011 As at 1st April 2010 Depreciation For the year Net Block
Sales/ As at As at Adjustments* 31st March 31st March 2011 2011
As at 31st March 2010
Assets Office Equipments Furniture Computers Total Previous Year 444,657 680,326 2,498,977 3,623,960 3,997,413 283,733 297,085 85,265 13,352 (3,020) (4,621) (16,975) (24,616) (458,718) 454,989 675,705 2,765,735 3,896,429 3,623,960 444,657 638,417 2,161,846 3,244,920 2,917,367 4,868 23,693 342,279 370,840 700,261 (3,124) (4,843) (22,013) (29,980) (372,708) 446,401 657,267 2,482,112 3,585,780 3,244,920 8,588 18,438 283,623 310,649 379,040 41,909 337,131 379,040
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As at 31st March 2011 ` Schedule 4 - Investments Current Investments 300 Warrrants of National Association of Security Dealers (Face Value 50 Cents) (PY 300 Warrents) 7000 Units of Alps Kotak India Growth Fund (PY Units Nil) Total 6,689 3,121,650 3,128,339 6,735 6,735 As at 31st March 2010 `
Schedule 5 - Sundry Debtors (Unsecured, considered good unless otherwise stated) More than six months Others Total 232,920 6,339,581 6,572,501 5,878,322 5,878,322
Schedule 6 - Cash and Bank balances Bank Balances Scheduled Bank Current Account Deposit 1,723,084 24,623,162 1,740,954 35,863,388
Other than Scheduled Bank Current Account Deposit Total 6,988,138 73,697 33,408,081 23,606,116 512,147 61,722,605
Schedule 7 - Loans and advances (Unsecured, considered good unless otherwise stated) Loan to fellow subsidiary Advances recoverable in cash or in kind or for value to be received Advance Taxes (Net of Provision for Taxes) Total 200,677,500 5,228,290 12,467,716 218,373,506 246,950,000 3,456,060 18,095,004 268,501,064
Schedule 8 - Current Liabilities Expenses Payable Total 9,456,966 9,456,966 23,504,398 23,504,398
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Reports

For the year ended 31st March 2011 ` Schedule 9 - Income from Services Commission and Fees Total 102,992,448 102,992,448 153,514,034 153,514,034 For the year ended 31st March 2010 `
Schedule 10 - Interest Income Interest on Bank Deposit Interest on Term Loan Total 167,257 5,980,474 6,147,731 715,087 6,072,347 6,787,434
Schedule 11 - Personnel cost Salaries and other allowances Directors Remuneration Contribution to statutory dues Total 101,783,107 12,930,088 7,477,784 122,190,979 95,087,727 11,369,874 8,117,547 114,575,148
Schedule 12 - Establishment and Other Expenses Foreign Auditors' Remuneration Audit Fees Advertising, Business Promotion and Entertainment Legal and Professional Expense Communication Expenses Insurance Rent, Rates & Taxes Recruitment Travelling and Conveyance Unrealised loss on Investment Other Expenses Total 1,279,622 2,398,069 15,970,912 3,960,665 346,676 6,822,228 2,460,812 6,327,147 1,293,505 40,859,636 1,709,010 514,127 3,145,615 3,997,688 443,119 6,223,368 4,946,278 411,729 859,908 22,250,842
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I. Significant Accounting Policies: A. Method of Accounting The accounts are prepared in accordance with accounting principles generally accepted in India. The Company follows accrual method of accounting. B. Conversion to Indian Rupees For the purpose of accounts, all income and expense items are converted at the average rate of exchange applicable for the period. All assets and liabilities are translated at the closing rate as on the Balance Sheet date. The Share Capital is carried forward at the rate of exchange prevailing on the transaction date. The resulting exchange difference on account of translation at the year end is transferred to Translation Reserve Account and the said account is being treated as "Reserves and Surplus". C. Use of estimates The preparation of financial statements requires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Actual results could differ from these estimates. D. Revenue Recognition The Company receives referral fees for referring clients to fellow subsidiaries of the Company. Referral fees are based (a) on the month-end net asset value of the clients' holdings and (b) on the equity brokerage and derivative trades as a percentage of each trade. The percentage of commissions is determined based on a pre-defined fee structure agreed by the clients at the time of opening the accounts or as per an amendment. The Company also receives advisory fees for providing research to clients and records the income at the time the services are provided. E. Fixed assets Fixed assets are stated net of depreciation. Depreciation has been provided on Straight Line Method over an estimated useful life between three and five years The rates of depreciation are determined after considering the management's estimation of the useful life of the asset. F. Investments Investments are classified into long term investments and current investments. Investments which are intended to be held for more than one year are classified as long term investments and investments which are intended to be held for less than one year are classified as current investments. Current investments are valued at cost or market value / fair value which ever is lower. G. Taxes Current tax is expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the balance sheet date and any adjustments payable in respect of previous years Deferred Tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets arising mainly on account of carry forward of losses and unabsorbed depreciation under tax laws are recognised only if there is virtual certainty supported by convincing evidence that there will be sufficient future taxable income against which such deferred tax assets can be realised. Deferred tax assets on account of other timing differences are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised H. Earnings per share Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
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Reports
I.
Provisions and Contingencies Provision is recognised when there is a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates Contingent Liabilities are not recognized but are disclosed in the notes unless the outflow of resources is remote. Contingent assets are neither recognised nor disclosed in the financial statements.
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Employee Stock Option Scheme Cash-settled scheme: The cost of cash-settled scheme (stock appreciation rights) is measured initially using intrinsic value method at the grant date taking into account the terms and conditions upon which the instruments were granted. This intrinsic value is amortised on a straight-line basis over the vesting period with a recognition of corresponding liability. This liability is remeasured at each balance sheet date up to and including the settlement date with changes in intrinsic value recognised in profit and loss account in 'Payments to and provision for employees'
II.
Notes to the accounts 1. 2. 3. The Company is the subsidiary of Kotak Mahindra Bank Ltd (KMBL). The accounts have been prepared and audited to attach with the accounts of KMBL, the holding company to comply with the provisions of the Indian Companies Act, 1956. The transactions are in local currency (US Dollars), which have been converted into Indian Currency (Indian Rupees) for reporting and the rate applied is as per para I.B of the significant accounting policies. In November 2007, the Company provided ` 112,250,000 three-month term loan to Kotak Mahindra International Limited, a stock holder and fellow subsidiary, which was renewable upon notice. The note was last renewed in February 2011 and bears interest of 2.80% per annum and is due 30th April 2011. In May 2009 and October 2009, the Company provided additional 3 months term loans of ` 89,800,000 and ` 44,900,000, respectively to Kotak Mahindra International Limited. The ` 89,800,000 term loan was last renewed in March 2011 and bears interest of 2.31% per annum and is due 31st May 2011. The ` 44,900,000 term loan was not renewed and repaid in full in October of 2010. As of 31st March 2011, the total notes receivable outstanding was ` 200,677,500. The Company earned interest income of approximately ` 5,969,748 related to the notes, which is included in Interest Income in the accompanying profit and loss account of which approximately ` 445,950 was included in sundry debtors in the accompanying Balance Sheet. The Company appointed Kotak Mahindra (UK) Limited, a fellow subsidiary, as its clearing agent to execute and process the settlement of its ADR and GDR business. For the year ended 31st March 2011, there were no commissions earned for transactions that cleared through Kotak Mahindra (UK) Limited. There were no amounts due from the said Company at 31st March 2011 related to the ADR and GDR business. The Company received referral fees from two fellow subsidiaries who managed accounts referred to them by the Company. The Company had referral fees from these two fellow subsidiaries of approximately ` 74,052,225 (Previous year ` 117,494,438) for the year ended 31st March 2011. Amounts due from these two fellow subsidiaries at 31st March 2011 were approximately ` 5,351,400 (Previous year ` 4,759,400) Earnings per equity share Particulars Weighted average number of equity shares used in computation of basic earnings per share Basic and diluted earnings / (loss) per share (`) Earnings / (loss) used in the computation of basic and diluted earnings per share 7. As at 31st March 2011 1,530,621 (24.86) (38,058,462) As at 31st March 2010 1,530,621 9.06 13,874,284
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The Company has entered into a non-cancelable operating lease for office facilities in White Plains, New York and Sant Clara, CA, which expires in April 2011 and August 2011, respectively. These leases are subject to escalations for increases in real estate taxes and other operating costs. In July 2010, the Company entered into a six-month operating lease for office facilities in New York, NY, which was renewed and expires in July of 2011. These operating leases are renewed on a three month to annual term.
Aggregate future minimum rental payments under the leases are as follows (assuming automatic extension options are not renewed): Year ending 31 March 2011 Amount in ` 981,090
Office rent expenses amounted to approximately ` 5,468,472 for the year ended 31st March 2011. (Previous Year ` 4,319,998) Its grt 2b 25
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8.
Stock appreciation rights (SARs) During the year, the Management had approved (SARs) to be granted to eligible employees as and when deemed fit. The SARs are to be settled in cash and will vest in the manner as provided in the scheme / grant letters to employees. The contractual life (which is equivalent to the vesting period) of the SARs ranges from 1.38 years to 3.64 years Detail of activity under SAR is summarized below: No. of SARs Year Ended 31st March 2011* Outstanding at the beginning of the year Granted during the year Exercised during the year Expired during the year Forfeited during the year Outstanding at the end of the year * The number of SARs have been adjusted for split of the underlying equity shares from ` 10 paid up to ` 5 paid up per share. Effect of share based payment to employees on the profit and loss account and on its financial position Year ended 31st March, Total Employee Compensation Cost pertaining to share-based payment plans Closing balance of liability for cash-settled options 2011 4,619,675 3,804,579 25,020 1,490 23,530
Had the company recorded the compensation cost computed on the basis of fair valuation method instead of intrinsic value method, employee compensation cost would have been lower by ` 46,634 (Previous year ` Nil) and the profit after tax would have been higher by the same amount. 9. Previous years figures have been regrouped, reclassified wherever necessary to confirm to figures of the current year.
As Per our Report attached For V. C. Shah & Co. Chartered Accountants A. N. Shah Partner Mumbai, 26th April 2011 For and on behalf of the Board of Directors
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KOTAK MAHINDRA FINANCIAL SERVICES LIMITED
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BOARD OF DIRECTORS : MR. K V S MANIAN, MR. SOMER MASSEY, MR. ABHISHEK BHALOTIA
Directors Report
To The Members of, KOTAK MAHINDRA FINANCIAL SERVICES LIMITED Your Directors are pleased to present the 1st Annual Report of your Company together with the Audited Statement of Accounts and the Auditors Report of your Company for the financial year ended, 31st March 2011. The summarized financial results for the year ended 31st March 2011 are as under: FINANCIAL HIGHLIGHTS Amt in USD For the period 17th Nov 2009 to 31st March 2011 Gross Income Less: Expenses Profit/(Loss) Before Tax REVIEW OF OPERATIONS The first year under review was very eventful as the business was being set up. The Company is mainly in the business of advisory services with a client base consisting of customers with a net worth equivalent or more than 0.5 Mn USD. The Company is registered with the DIFC and has got a Category IV license, and is governed by the rules/Bye laws of the DFSA (being the regulatory body of the DIFC). The Company advises its clients on investments in various financial instruments after assessing their risk profile and arranges for these investments to be made with various Fund houses/Financial Institutions. During the year the Company focused on establishing relationships with clients and building Assets under Management. During the period under the review, the Company earned an Income of USD 1.7 Mn. Being the first year of business, the expenses were at USD 2.15 Mn. The Loss for the year ended 31st March 2011 was at USD 0.4 Mn. DIVIDEND In view of the losses incurred by the Company the board of Directors has not recommended any dividend. SHARE CAPITAL The Company started with a base capital of USD 0.65 Mn and subsequently allotted further capital of USD 0.3 Mn. The Authorized Share capital is at USD 1 Mn (1 Mn Shares of USD 1 /- each) against which USD 0.95 Mn has been Issued, Subscribed and Paid up. The Companys shares were wholly subscribed and Paid up by Kotak Securities Ltd (India) by virtue of which it has become the Holding Company. BUSINESS OUTLOOK UAE is a key financial market in the GCC region and has roughly an expatriate population of 76% across various nationalities with highest percentage of Indian expatriates. Our business model therefore suits the best interests of NRIs based in UAE, as they gain access both to Indian banking/financial services and the international basket of investment products. By virtue of our presence in the DIFC we are competing with some of the market leaders in the private banking space offering a much wider suite of financial services. Our strategy is therefore to match them in terms of international product basket and provide additional benefit in terms of India specific solutions. In addition as part of our strategy, we are building partnerships with leading international banks to increase our offerings covering multi currency deposits and credit products. We are scaling up our Manpower, Infrastructure, Product, Operations and IT resources to best meet the challenges of growth in our business. UAE MARKET CURRENT & FUTURE OUTLOOK1 1,717,487 (2,156,517) (439,030) Amt in INR For the period 17th Nov 2009 to 31st March 2011 78,266,905 (95,539,377) (17,272,472)
Political Stability: The political scene will remain broadly stable, there is a risk that some political protests will be held, but these are likely to be limited and non-violent. The president of the UAE and the ruler of Abu Dhabi, Sheikh Khalifa bin Zayed al-Nahyan, has the backing of the ruling families in the other six emirates, including the ruler of Dubai and prime minister of the UAE, Sheikh Mohammed bin Rashid al-Maktoum. International Relations: The UAEs relationship with Asia, especially China and India, will play an increasingly prominent role in trade, security and investments in the region.
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Policy Trends: The UAE will remain reliant on the hydrocarbons sector, which is the main engine of growth. That said, the government will continue to pursue its diversification programme through large-scale investment in infrastructure, industry and services. The Abu Dhabi Urban Planning Council awarded tenders worth US$5.7bn to real estate developers at Cityscape, an annual property show, to build 7,500 homes for Emirati families. The Dubai government, in contrast, will concentrate on paying off its debts and will reduce government spending in 2011-15. Dubai will refocus its efforts on promoting important sectors such as trade and tourism. The Dubai government recently amended the laws governing the Dubai International Financial Centre to improve transparency and improve co-ordination between its main bodies. Economic Growth: According to the revised data from the National Bureau of Statistics (NBS), real GDP fell by 1.6% in 2009. The Economist Intelligence Unit estimates that the economy grew by 2.1% in 2010 and forecasts that GDP growth in 2011 will pick up strongly, to 3.6%, owing to high oil prices and production. Real GDP growth is forecast to average 5% in 2011-15, much higher than the estimated rate of 3.4% in 2006-10. Inflation: The NBS compiles monthly statistical data at a federal level and has changed its base year for inflation to 2007 for data from 2008 onwards. Official estimates indicate that average annual inflation was by 0.9% in 2010. As the economy recovers and oil and international commodity prices increase, inflationary pressures would re-emerge gradually, especially in light of the projected expansion in infrastructure development. Economist Intelligence Unit estimates inflation in 2011 to average 2.5% owing to an increase in prices of grains, sugar and other basic items. However, low housing costs will keep inflation at a manageable level, at an average of 2.2% in 2011-15 as per estimates. Exchange Rates: The UAE dirhams peg to the US dollar (at Dh3.673:US$1) is expected to remain in place for some time. However, questions about its effectiveness will re-emerge, as the Central Bank of the UAE has established a panel of international experts to advise it on future policy. The Central Bank remains committed to the existing system. The peg has provided stability for decades, and, having ridden out the problems that a fixed currency brings for this long, the authorities seem keen not to change the system.
*1.Source: Extracts from The Economist Intelligence Unit , country report dated 9th May 2011 DIRECTORS During the period, Mr. S. A. Narayan has resigned from the Board of the Company. The Board places on record its gratitude for the services rendered by Mr. Narayan during his tenure as member of the Board. Mr. K.V.S. Manian was appointed as Director with effect from 2nd March 2011. COMMITTEES The Company has Governance Risk and Audit committee (GRAC). The constitution of the said committee is as follows: 1. Somer A Massey 2. Puneet Narula 3. Srinivasa Rao Nandiraju AUDITORS The Board had appointed M/s Ernst & Young, Chartered Accountants UAE as the auditors for the Financial year ending 2011. The Companys auditors retire at the ensuing Annual General Meeting and are eligible for re-appointment. DIRECTORS RESPONSIBILITY STATEMENT Based on representation from the management, the Directors state, I. II. the Company has, in the preparation of the annual accounts for the year ended 31st March 2011, followed the applicable accounting standards along with proper explanations relating to material departures, if any; the Directors have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March 2011 and of the loss of the Company for the financial year ended 31st March 2011. the Directors have taken proper and sufficient care to the best of their knowledge and ability for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and the Directors have prepared the annual accounts on a going concern basis.
III.
IV.
ACKNOWLEDGEMENTS The Directors wish to thank the Dubai International Financial Corporation, Dubai Financial Services Authority, Dubai Government and the Companys Bankers for the assistance, Co-operation and encouragement they extended to the Company. The Directors commend the employees of the Company for their dedicated efforts. For and on behalf of the Board of Directors Somer A Massey Place: Dubai Dated:
Kotak Mahindra Financial Services Limited Annual Report 2010-11
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Reports
Auditors Report
To the Members of Kotak Mahindra Financial Services Limited The financial statements of Kotak Mahindra Financial Services Limited as at 31st March 2011, being a company registered in the United Arab Emirates (UAE), are audited by Ernst & Young, Dubai, United Arab Emirates and we have been furnished with their audit report dated 28th April 2011. We are presented with the accounts in Indian Rupees prepared on the basis of aforesaid accounts to comply with requirements of section 212 of the Companies Act 1956. We give our report hereunder: We have audited the attached Balance Sheet of Kotak Mahindra Financial Services Limited as at 31st March 2011, the Profit and Loss account and the Cash Flow statement for the period ended on that date annexed thereto. These financial statements are the responsibility of the company's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, on the basis of information and explanations given to us and relying upon the above referred financial statements and auditor's report thereon, the accounts read with the notes thereon give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: (a) (b) (c) in the case of the Balance Sheet of the state of affairs of the Company as at 31st March 2011; in the case of the Profit and Loss account of the Loss for the period ended on that date; and in the case of the Cash Flow Statement, of the cash flows for the period ended on the date.
A. N. Shah Partner Membership No. 42649 Mumbai, 2nd May 2011.
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(`)

Schedule Sources of Funds Shareholders Funds : Share Capital Reserves and Surplus Total 1 2 44,338,427 (1,603,392) 42,735,035 As at 31st March 2011
Application of Funds Fixed Assets : Gross Block Less : Depreciation Net Block Capital Work in Progress Total 3 1,836,852 1,429,619 407,233 2,283,987 2,691,220
Current Assets, Loans and Advances: A) Current Assets Sundry Debtors Cash and Bank Balances B) Loans and Advances 4 5 6 3,197,443 10,194,323 20,515,806 33,907,572 Less: Current Liabilities and Provisions : Current Liabilities 7 11,136,229 11,136,229 Net Current Assets Profit and Loss Account Total Significant Accounting Policies and Notes to Financial Statements Schedules referred to above form an integral part of the Balance Sheet 11 22,771,343 17,272,472 42,735,035
In terms of our report of even date For V. C. Shah & Co. Chartered Accountants A. N. Shah Partner Mumbai, 2nd May 2011 For and on behalf of the Board of Directors
K. V. S. Manian Director Mumbai, 2nd May 2011
Somer Massey Senior Executive Officer
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Reports
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Profit and Loss Account for the period from 17th November 2009 to 31st March 2011
Schedule Income Income from Services Total Income Expenditure Personnel Cost Interest and Other Financial Charges Establishment and other expenses Total Expenditure Profit / (Loss) before depreciation and Taxation Depreciation Net Profit / (Loss) Net Profit / (Loss) carried to Balance Sheet Earnings per Share (Refer Note 3 - Schedule 11) Basic and diluted (Rs) Face value per share ($) Significant Accounting Policies and Notes to Financial Statements 11 (22.23) 1.00 8 9 10 74,796,370 36,643 19,245,470 94,078,483 (15,811,578) 1,460,894 (17,272,472) (17,272,472) 78,266,905 78,266,905 Period ended 31st March 2011
In terms of our report of even date For V. C. Shah & Co. Chartered Accountants A. N. Shah Partner Mumbai, 2nd May 2011 For and on behalf of the Board of Directors
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(`)
Cash Flow Statement for the period from 17th November 2009 to 31st March 2011
For the period ended 31st March 2011 Cash Flow from Operating Activities Net Profit / (Loss) before taxation Adjustments for: Exchange Adjustments Depreciation (1,634,666) 1,460,894 (17,446,244) (17,272,472)
Operating Profit before Working Capital Changes Adjustments for: (Increase) / Decrease in Loans and Advances (Increase) / Decrease in Sundry Debtors Increase / (Decrease) in Current Liabilities Cash Generated from Operations Direct taxes paid NET CASH FLOW (USED IN)/ FROM OPERATING ACTIVITIES Cash Flow from Investing Activities Purchase of fixed assets NET CASH FLOW (USED IN) / FROM INVESTING ACTIVITIES (B) Cash Flow from Financing Activities Proceeds from Issue of Share Capital NET CASH FLOW (USED IN) / FROM FINANCING ACTIVITIES (C) Net Increase in Cash and Cash Equivalents (A + B + C) Cash and Cash Equivalents at the end of the period (A)
(20,515,806) (3,197,443) 11,136,229 (30,023,264) (30,023,265)
(4,120,839) (4,120,839)
44,338,427 44,338,427 10,194,323 10,194,323 10,194,323
Notes: 1. 2. The Cash Flow Statement has been prepared under the 'Indirect Method' as set out in the Accounting Standard -3 on Cash Flow Statements issued by the Institute of Chartered Accountants of India. Figures in brackets indicate cash outflow.
This is the Cash Flow Statement referred to in our report of even date For V. C. Shah & Co. Chartered Accountants A. N. Shah Partner Mumbai, 2nd May 2011 For and on behalf of the Board of Directors
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Reports
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As at 31st March 2011 Schedule 1 - Share Capital Authorised 1,000,000 Shares, US$ 1 each
Issued, Subscribed and Paid up 950,000* shares of US$ 1 each (All of the above shares are held by Kotak Securities Limited, the holding Company) Total 44,338,427 44,338,427
* As at the reporting date, the Company's issued and paid up capital as per the articles of association is USD 600,000. During the current period, additional 350,000 shares of USD 1 each were issued and legal formalities in respect of these additional shares issued are ongoing with the DIFC Registrar of Companies.
Schedule 2 - Reserves and Surplus Translation Reserve Total Schedule 3- Fixed Assets Gross Block Description Computers Office Equipments Total Capital work in progress Total Fixed Assets * Sales/Adjustments includes effect of Translation Reserve. As at 31st March 2011 Schedule 4 - Sundry Debtors (Unsecured, considered good unless otherwise stated) More than six months Others Total Schedule 5 - Cash and Bank Balances Cash on hand Balances with scheduled Banks in: Current Account Total 10,082,249 10,194,323 112,074 3,197,443 3,197,443 Additions / Adjustments 720,381 1,116,471 1,836,852 Sales/ Adjustments* As at 31st March 2011 720,381 1,116,471 1,836,852 For the year 370,953 1,089,941 1,460,894 Depreciation Sales/ Adjustments* (7,941) (23,334) (31,275) As at 31st March 2011 363,012 1,066,607 1,429,619 Net Block As at 31st March 2011 357,369 49,864 407,233 2,283,987 2,691,220 (1,603,392) (1,603,392)
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As at 31st March 2011 Schedule 6 - Loans and Advances (Unsecured, considered good unless otherwise stated) Advances recoverable in cash or in kind or for value to be received Total 20,515,806 20,515,806
Schedule 7 - Current Liabilities Sundry creditors Total 11,136,229 11,136,229
Schedule 8 - Personnel Cost Salaries, Allowances and Incentives Staff Welfare Less : Recovery of Expenses Total 94,514,582 38,692 (19,756,904) 74,796,370
Schedule 9 - Interest and Other Financial Charges Bank Charges Total 36,643 36,643
Schedule 10 - Establishment and other expenses Travelling, Conveyance and Motor Car expenses Legal and Professional charges Foreign Auditor's remuneration Audit Fees Out of pocket expenses Communication expenses Printing and Stationery Rent Recruitment Expenses Advertising, Business Promotion and Entertainment Insurance Loss on Foreign Exchange Transactions Miscellaneous expenses Less : Recovery of Expenses Total 501,277 7,822 3,095,037 359,432 5,257,900 1,409,552 354,532 1,482,896 67,777 1,755,658 (3,593,325) 19,245,470 3,929,818 4,617,094
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Reports
I. Significant Accounting Policies: A. Method of Accounting The accounts are prepared in accordance with accounting principles generally accepted in India. The Company follows accrual method of accounting B. Conversion to Indian Rupees For the purpose of accounts, all income and expense items are converted at the average rate of exchange applicable for the period. All assets and liabilities are translated at the closing rate as on the Balance Sheet date. The Share Capital is carried forward at the rate of exchange prevailing on the transaction date. The resulting exchange difference on account of translation at the year end is transferred to Translation Reserve Account and the said account is being treated as "Reserves and Surplus". C. Use of estimates The preparation of financial statements requires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as on the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Actual results could differ from these estimates. D. Revenue Recognition Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when payment is being made. Revenue is measured at the fair value of consideration received or receivable, taking into account contractually defined terms of payment, excluding discounts, rebates and sales tax or duty. Commission income is recognised when the services have been rendered or in accordance with the terms of the contracts. E. Fixed assets Fixed assets are stated at cost less accumulated depreciation. Depreciation is provided on a straight-line basis over the expected useful lives of such assets as estimated by the Management. Additions during the year bear a due proportion of the annual depreciation charge. The estimated useful lives over which assets are depreciated are as follows: Furniture and fixtures Computer equipment F. Leases Leases which do not transfer to the Company substantially all the risks and benefits incidental to ownership of the leasing assets are operating leases. Costs in respect of operating leases are charged on a straight line basis over the lease term. G. Earnings per share Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares. H. Provisions and Contingencies Provision is recognised when there is a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent Liabilities are not recognized but are disclosed in the notes unless the outflow of resources is remote. Contingent assets are neither recognised nor disclosed in the financial statements. I. Employee Stock Option Scheme Cash-settled scheme The cost of cash-settled scheme (stock appreciation rights) is measured initially using intrinsic value method at the grant date taking into account the terms and conditions upon which the instruments were granted. This intrinsic value is amortised on a straight-line basis over the vesting period with a recognition of corresponding liability. This liability is remeasured at each balance sheet date up to and including the settlement date with changes in intrinsic value recognised in profit and loss account in 'Salaries, allowances and incentives'. Its grt 2b 25 4 years 4 years
II.
Notes to the accounts 1. Kotak Mahindra Financial Services Limited (the "Company") is a Company limited by shares registered and incorporated in the Dubai International Financial Centre in Dubai, United Arab Emirates. The Company's shareholder is Kotak Securities Limited ("shareholder" or "parent"), an entity incorporated in India and its ultimate holding Company is Kotak Mahindra Bank Limited, an entity incorporated in India and publicly listed on the Bombay Stock Exchange (BSE), National Stock Exchange of India (NSE) and the Luxembourg Stock Exchange. The Company has been granted a prudential "category 4" license by the Dubai Financial Services Authority (DFSA) and is engaged in "arranging credit or deals in investments", "advising on financial products or credit" and "arranging custody" as per provisions of the DFSA Prudential Rulebooks. The Company was incorporated on 17 November 2009 and these financial statements represent the first period of operations of the Company. The Company is a wholly owned subsidiary of Kotak Securities Limited. The accounts have been prepared and audited for the purpose of attachment to the accounts of the holding company to comply with the provisions of the Indian Companies Act, 1956. 2. 3. The transactions in local currency have been converted into Indian Currency (Indian Rupees) for reporting and the rate applied is as per para I.B of the significant accounting policies. Earnings per equity share Particulars Weighted average number of equity shares used in computation of basic earnings per share Basic and diluted earnings / (loss) per share (`) Earnings / (loss) used in the computation of basic and diluted earnings per share 4. Stock Option Scheme Kotak Mahindra Bank Limited, the Ultimate Holding Company of Kotak Mahindra Financial Services Limited has formulated and adopted the following Employee Stock Option Schemes (ESOS) in accordance with the SEBI (Employee Stock Option Scheme) Guidelines, 1999 issued by the Securities and Exchange Board of India (SEBI). Kotak Mahindra Equity Option Scheme 2007 In accordance with SEBI (Employees Stock Option Scheme and Employee Stock Purchase) Guidelines, 1999 and the guidance note on "Accounting for Employee Share-based Payments" issued by the Institute of Chartered Accountants of India, the excess, if any, of the market price of share preceding the date of grant of the option under ESOPs over the exercise price of option is amortised on a straight-line basis over the vesting period. The Company has reimbursed the Kotak Mahindra Bank ` 606,365 during the period on account of such cost and the same is forming part of employee cost and included under the head 'Personnel Cost' 5. Stock appreciation rights (SARs) During the year, the Management had approved (SARs) to be granted to eligible employees as and when deemed fit. The SARs are settled in cash and will vest in the manner as provided in the scheme / grant letters to employees. The contractual life (which is equivalent to the vesting period) of the SARs ranges from 0.47 years to 1.38 years. Detail of activity under SAR is summarized below: No. of SARs Year Ended 31 Mar 2011* Outstanding at the beginning of the year Granted during the year Exercised during the year Expired during the year Forfeited during the year Outstanding at the end of the year *The number of SARs have been adjusted for split of the underlying equity shares from ` 10 paid up to ` 5 paid up per share. 1,660 830 830 As at 31st March 2011 777,100 (22.23) (17,272,472)
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Reports
Effect of share based payment to employees on the profit and loss account and on its financial position Year ended 31st March 2011 Total Employee Compensation Cost pertaining to share-based payment plans Closing balance of liability for cash-settled options 1,254,303 223,110
Had the Company recorded the compensation cost computed on the basis of fair valuation method instead of intrinsic value method, employee compensation cost and the net loss would have been higher by ` 2,734,418. 6. Related Party Transaction Related parties represent associated companies, shareholder, directors and key management personnel of the Company, and entities controlled, jointly controlled or significantly influenced by such parties. Pricing policies and terms of these transactions are approved by the Company's management. Transactions with related parties are as follows: Related parties Nature of relationship Nature of transactions Amount (17th November 2009 to 31st March 2011) Transaction for the year Kotak Securities Ltd Kotak Mahindra (UK) Limited Kotak Mahindra Bank Limited Holding Company Recovery of Expenses Investment Manager Investment manager income 23,350,239 30,701,733 606,365 2,013,107 109,213 3,974,306 31st March 2011 Receivable Payable 620,584 `
Holding Company ESOP Transfer of assets & deposits
Kotak Mahindra Fellow Subsidiary (International) Ltd
Outstanding balances at the period-end arise in the normal course of business and are unsecured, interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. Director Remuneration: The remuneration of directors and other key members of management of the Company during the period were as follows: Particulars Salaries and other benefits Share based payments 7. Leases: The total annual commitments of the Company under non-cancellable operating leases are as under: 31st March ,2011 Rupees Operating leases which expire : Within one year Between one to five years Total 8. Capital Expenditure Commitments Capital expenditure contracted for at the reporting date but not recognised in the financial statements amounted to ` 6,361,165 which relates to expenditure on leasehold improvements. 7,260,735 13,779,186 21,039,921 Amount (17th November 2009 to 31st March 2011) 13,038,308 346,826
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9.
Holding Company The Company's immediate parent company is Kotak Securities Limited. The ultimate holding Company is Kotak Mahindra Bank Limited, company incorporated in India
10.
The Company was incorporated on 17th November 2009. The current financials are for the period from 17th November 2009 to 31st March 2011. This being the first period of Company's operations, comparable information has not been given in the financial statements.
As Per our Report attached For V. C. Shah & Co. Chartered Accountants A. N. Shah Partner Mumbai, 2nd May 2011 For and on behalf of the Board of Directors
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GLOBAL INVESTMENT OPPORTUNITIES FUND LIMITED
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BOARD OF DIRECTORS : MR. ABDOOL AZIZE OWASIL, MR. LOUIS DIDIER MERLE, MR. SOW MAN AH YUK SHING, MR. RAVI LOCHAN POLA, MR. RIAD AUBDOOL, MR. RUCHIT PURI
Directors Report
Commentary of the Directors to the Shareholders of GLOBAL INVESTMENT OPPORTUNITIES FUND LIMITED The directors present their report and the audited financial statements of Global Investment Opportunities Fund Limited (the Company) for the year ended 31st March 2011. PRINCIPAL ACTIVITIES The principal objective of the Company is to seek capital appreciation by investing in portfolio of securities comprising principally of shares of companies incorporated in India and elsewhere and debt instruments. RESULTS AND DIVIDEND The directors do not recommend the payment of dividend for the year under review (2010: nil). STATEMENT OF DIRECTORS RESPONSIBILITIES IN RESPECT OF THE FINANCIAL STATEMENTS The Board of Directors is responsible for the preparation and fair presentation of the financial statements, comprising the statement of financial position at 31st March 2011, statement of comprehensive income, statement of changes in net assets attributable to participating shareholders and statement of cash flows for the year then ended, and the notes to the financial statements, which include a summary of significant accounting policies and other explanatory notes, in accordance with International Financial Reporting Standards and the Mauritius Companies Act 2001. The Board of Directors responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of these financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. The Board of Directors has made an assessment of the Companys ability to continue as a going concern and has no reason to believe that the business will not be a going concern in the year ahead. DIRECTORS INTERESTS (a) There are no service contracts in existence between the Company and any of its directors, nor are any such contracts proposed. (b) None of the directors have any interests either beneficial or non-beneficial, in the share capital of the Company. (c) There are no existing or proposed contracts of service between any of its directors and the Company. (d) Abdool Azize Owasil and Riad Aubdool are officers of Multiconsult Limited. Ravilochan Pola, is a director of Kotak Mahindra Inc. and Kotak Mahindra (International) Limited. Ruchit Puri is a director of Kotak India Focus Fund II, Kotak WM India Fund Limited, Indian Multi Cap Fund (Mauritius) Limited, Kotak International Funds, PCC, India Midcap Fund (Mauritius) Ltd, India Infrastructure & Realty Fund (Mauritius) Ltd, India Bluechip Fund Ltd, Kotak Absolute Opportunities Fund, Kotak India Consumption Fund, Kotak India Focus Fund, Kotak Funds (LUX), Kotak India Infrastructure Fund Ltd (Guernsey) and India Focused Infrastructure Portfolio (Mauritius). By Order of the Board CORPORATE SECRETARY Multiconsult Limited 10, Frre Flix de Valois Street Port Louis
Date: 2nd May 2011
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Auditors Report
To the members of Global Investment Opportunities Fund Limited The financial statements of Global Investment Opportunities Fund Limited as at 31st March 2011, being a company registered in the Mauritius, are audited by KPMG Public Accountants, Mauritius, and we have been furnished with their audit report dated 27th April 2011. We are presented with the accounts in Indian Rupees prepared on the basis of aforesaid accounts to comply with requirements of section 212 of the Companies Act 1956. We give our report hereunder: We have audited the attached Balance Sheet of Global Investment Opportunities Fund Limited as at 31st March 2011, the Profit and Loss account and the Cash Flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the companys management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, on the basis of information and explanations given to us and relying upon the above referred financial statements and auditors report thereon, the accounts read with the notes thereon give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: (a) (b) (c) in the case of the Balance Sheet of the state of affairs of the Company as at 31st March 2011; in the case of the Profit and Loss account of the Profit for the year ended on that date; and in the case of the Cash Flow Statement, of the cash flows for the year ended on the date.
For V. C. Shah & Co. Chartered Accountants Firm Regn No :109818W
A.N. Shah Partner Membership No. 42649 Mumbai, 2nd May 2011.
Global Investment Opportunities Fund Limited Annual Report 2010-11
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Reports
Balance Sheet as at 31st March, 2011

Schedule As on 31st March 2011 Management Consolidated Shares Class Accounts ` ` Sources of Funds Shareholders Funds : Share Capital Reserves and Surplus Total Application Of Funds Investments Current Assets, Loans And Advances : Sundry Debtors Cash and Bank Balances Loans and Advances 4 5 6 9,142 9,142 Less : Current Liabilities and Provisions : Liabilities Net Current Assets Total Significant Accounting Policies and Notes to Financial Statements 8 Schedules referred to above form an integral part of the Balance Sheet 7 9,142 9,142 10,226,258 198,413,858 10,226,258 198,423,000 9,205 9,205 53,086,189 331,180,678 53,086,189 331,189,883 2,187,920 202,809,052 3,643,144 208,640,116 2,187,920 202,818,194 3,643,144 208,649,258 9,205 9,205 76,633,256 306,511,668 1,121,943 384,266,867 76,633,256 306,520,873 1,121,943 384,276,072 3 4,509,682,798 4,509,682,798 5,706,017,186 5,706,017,186 1 2 9,594 842,033 851,627 9,594 (389) 9,205 2,450,829 2,460,423 Total ` As on 31st March 2010 Management Consolidated Shares Class Accounts ` ` Total `
(452) 4,707,254,623 4,707,254,171 9,142 4,708,096,656 4,708,105,798
6,034,747,035 6,034,746,646 6,037,197,864 6,037,207,069
4,708,096,656 4,708,105,798
6,037,197,864 6,037,207,069
In terms of our report of even date For V . C. Shah & Co. Chartered Accountants A N Shah Partner Mumbai, 2nd May 2011 Its grt 2b 25 For and on behalf of the Board of Directors
Abdool Azize Owasil Director
Riad Aubdool Director
Profit and Loss Account for the year ended 31st March, 2011
Schedule For the year ended 31st March 2011 Management Consolidated Shares Class Accounts ` ` Income Dividend Service Income Profit on Sale of Investments(net) Profit on derivative contracts Change in unrealised gain on investments (net) Total Income Expenditure Interest paid Transaction and Custody Charges Insurance Other Operating Expenses Foreign Auditors Remuneration Legal Charges Investment Advisory and facilitator fees Option Premium Paid (net) Exchange loss Total Expenditure Profit/ (Loss) Before Taxation Provision for Taxation Profit / (Loss) After Taxation Add: Balance Brought Forward From Previous Year Less: Redemption proceeds Balance Carried Forward Significant Accounting Policies and Notes to Financial Statements 8 Schedules referred to above form an integral part of the Profit and Loss Account 4,466,375 410,135 1,736,650 911,412 455,706 12,541,986 3,448,555 4,970,841 28,941,660 945,254,550 945,254,550 4,466,375 410,135 1,736,650 911,412 455,706 12,541,986 3,448,555 4,970,841 28,941,660 945,254,550 945,254,550 617,143 12,808,763 427,253 5,969,250 949,450 949,450 117,018,789 6,848,313 407,717,406 553,305,817 617,143 12,808,763 427,253 5,969,250 949,450 949,450 117,018,789 6,848,313 407,717,406 553,305,817 2,167,360,390 2,167,360,390 65,299,499 (737,893,928) 1,494,765,961 4,687,027 964,982,428 4,526,755 974,196,210 4,687,027 964,982,428 4,526,755 974,196,210 32,773,594 1,361,823 32,773,594 1,361,823 1,921,183,965 71,862,496 693,484,329 2,720,666,207 Total ` For the year ended 31st March 2010 Management Consolidated Shares Class Accounts ` ` Total `
1,921,183,965 71,862,496 693,484,329
2,720,666,207
2,167,360,390
2,167,360,390 65,299,499 (737,893,928)
1,494,765,961 1,494,765,961
2,440,020,511 2,440,020,511
1,494,765,961
In terms of our report of even date For V . C. Shah & Co. Chartered Accountants A N Shah Partner Mumbai, 2nd May 2011 For and on behalf of the Board of Directors
Abdool Azize Owasil Director
Riad Aubdool Director
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Reports
Cash Flow Statement for the year ended 31st March, 2011
For the year ended For the year ended 31st March 2011 31st March 2010 ` ` Cash Flow from Operating Activities Net Profit before taxation Adjustments for: Net realised (gain)/loss on sale of investments Change in unrealised (gain)/loss on revaluation of investments Net realised (gain)/loss derivatives Net option premium paid/(received) Change in unrealised loss on options Dividend Income Exchange Adjustments Unrealised loss/ (gain) on currency forwards (967,078,402) 3,448,555 (2,430,781) (4,687,027) (146,080,256) (171,573,361) (2,521,201) 74,445,336 (42,859,931) (142,509,157) (A) (142,509,157) (6,188,620,609) 8,352,033,382 2,430,781 (3,448,555) 4,687,027 (B) 2,167,082,026 4,187,526,461 (6,315,802,009) (C) (A + B + C) (2,128,275,548) (103,702,679) 306,520,873 202,818,194 (103,702,679) (1,921,183,965) (655,903,241) (74,394,731) 6,848,313 2,532,234 (32,773,594) (1,515,495,804) 270,911,902 (1,752,098,496) (42,382,447) 25,590,417 (1,768,890,526) (1,768,890,526) (8,144,947,877) 17,866,927,968 70,769,532 (6,848,313) 32,921,933 9,818,823,243 4,557,253,472 (12,581,279,143) (8,024,025,671) 25,907,046 280,613,827 306,520,873 25,907,046 945,254,550 2,167,360,390
Operating Profit before Working Capital Changes Adjustments for: (Increase) / Decrease in Loans and Advances (Increase) / Decrease in Sundry Debtors Increase / (Decrease) in Current Liabilities Cash Generated from Operations Direct taxes paid NET CASH FLOW FROM OPERATING ACTIVITIES Cash Flow from Investing Activities Purchase of Investments Proceeds from sale of Investment Net (gain)/loss derivatives Net option premium received / (paid) Dividend Income NET CASH FLOW FROM INVESTING ACTIVITIES Cash Flow from Financing Activities Proceeds from issue of shares Payments on redemption of shares NET CASH FLOW USED IN FINANCING ACTIVITIES Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents at the beginning of the year Cash and Cash Equivalents at the end of the year
The Cash Flow Statement has been prepared under the Indirect Method as set out in the Accounting Standard -3 on Cash Flow Statements issued by the Institute of Chartered Accountants of India. Figures in brackets indicate cash outflow. The previous years figures have been re-grouped, wherever necessary in order to conform to current years presentation. This is the Cash Flow Statement referred to in our report of even date For V. C. Shah & Co. Chartered Accountants A N Shah Partner Mumbai, 2nd May 2011 Abdool Azize Owasil Director Riad Aubdool Director Its grt 2b 25 For and on Behalf of the Board of Directors

31st March 2011 Management Consolidated Shares Class Accounts ` ` Schedule 1 - Share Capital Issued Subscribed and paid up 205 (Previous year 205) Management shares of USD 1 each (Of the above 105 shares are held by Kotak Mahindra Bank Limited, the holding company). 115,489 (Previous year 126,789) Class A Participating shares Nil (Previous year 1,651) Class B Participating shares 105,483 (Previous year 121,608) Class C Participating shares Nil (Previous year 1,020) Class D Participating shares 245,404 (Previous year 375,175) Class F Participating shares 115,507 (Previous year 36,437) Class I Participating shares Nil (Previous year 2,049,500) Class L Participating shares Nil (Previous year 2,487,602) Class Q Participating shares Nil (Previous year 9,230) Class R Participating shares 800 (Previous year 272) Class A (series 1) Participating shares 1,287,821 (Previous year Nil) Kotak Fund of Funds Total Total ` 31st March 2010 Management Consolidated Shares Class Accounts ` ` Total `
9,594 9,594
51,506 42,444 95,869 64,975 371 586,868 842,033
9,594 51,506 42,444 95,869 64,975 371 586,868 851,627
9,594 9,594
56,655 1,287 49,793 757 155,006 28,943 972,949 1,180,927 4,381 131 2,450,829
9,594 56,655 1,287 49,793 757 155,006 28,943 972,949 1,180,927 4,381 131 2,460,423
Schedule 2 - Reserves and Surplus Share Premium (Refer note 3 (a) of Schedule 8) As per last Balance sheet Add: Received during the year from participating shareholders Less: Paid on redemption to participating shares Less: Paid others 4,209,605,540 4,186,350,934 4,209,605,540 4,186,350,934 1,525,224,786 4,554,859,777 1,525,224,786 4,554,859,777
(6,313,017,686) (6,313,017,686) 2,082,938,788 2,440,020,511 184,295,324 4,707,254,623 2,082,938,788 2,440,020,511 184,294,872 4,707,254,171
(1,870,479,023) (1,870,479,023) (389) (389) 4,209,605,540 1,494,765,961 330,375,534 6,034,747,035 4,209,605,540 1,494,765,961 330,375,145 6,034,746,646
Profit and Loss Account Translation Reserve Total
(452) (452)
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Reports

31st March 2011 Management Consolidated Shares Class Accounts ` ` Schedule 3 - Investments As per list in note no. 4 of schedule 8 Total Total ` 31st March 2010 Management Consolidated Shares Class Accounts ` ` Total `
4,509,682,798 4,509,682,798
4,509,682,798 4,509,682,798
5,706,017,186 5,706,017,186
5,706,017,186 5,706,017,186
Schedule 4 - Sundry Debtors (Unsecured) Considered good Over six months Others Total 2,187,920 2,187,920 2,187,920 2,187,920 76,633,256 76,633,256 76,633,256 76,633,256
Schedule 5 - Cash and Bank Balances Bank balances Total 9,142 9,142 202,809,052 202,809,052 202,818,194 202,818,194 9,205 9,205 306,511,668 306,511,668 306,520,873 306,520,873
Schedule 6 - Loans and Advances (Unsecured, considered good unless otherwise stated) Advances recoverable in cash or in kind or for value to be received Total
3,643,144 3,643,144
3,643,144 3,643,144
1,121,943 1,121,943
1,121,943 1,121,943
Schedule 7 - Liabilities Sundry Creditors Total 10,226,258 10,226,258 10,226,258 10,226,258 53,086,189 53,086,189 53,086,189 53,086,189
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SCHEDULE 8 I. SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO THE ACCOUNTS

A. GENERAL INFORMATION Global Investment Opportunities Fund Limited (the Company) was previously incorporated under the name of Kotak Mahindra Investment Company Limited, PCC as a private company limited by shares with a protected cell company status on 31st January 2001 in the Republic of Mauritius. On 13th June 2003, the Company has by a special resolution converted itself into a public company and on 25th July 2003 changed its name to Global Investment Opportunities Fund Limited. The Company as a holder of a Category 1 Global Business Licence under the Companies Act 2001 and the Financial Services Act 2007 is required to carry on its business in a currency other than the Mauritian rupee. Since the Company operates in an international environment and conducts most of its transactions in foreign currencies the Company has chosen to retain the United States dollar (USD) as its reporting currency. B. SIGNIFICANT ACCOUNTING POLICIES The following accounting policies have been consistently applied in dealing with items which are considered material in relation to the companys financial statements. i.
Basis of preparation
The financial statements have been prepared under the historical cost convention on accrual basis.
ii.
Use of estimates
The preparation of financial statements requires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Actual results could differ from these estimates.
iii.
Conversion to Indian Rupees

For the purpose of accounts, all income and expense items are converted at the average rate of exchange applicable for the period. All assets and liabilities are translated at the closing rate as on the Balance Sheet date. The Management Shares comprised in the Share Capital are carried forward at the rate of exchange prevailing on the transaction date. The resulting exchange difference on account of translation at the year end is being treated transferred to Translation Reserve Account and the said account is being treated as Reserves and Surplus.
iv.
Revenue recognition
Revenue is recognised to the extent it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Commission, fees and other revenue invoiced are recognised on an accrual basis. Interest income is recognised in the Profit and Loss account as accrued. Dividend income relating to listed long equity securities are recognized in the income statement on the ex-dividend date.
v.
Share capital
On issue of participating shares, the difference between the issue price and the nominal value is credited to the share premium account. On redemption, the nominal value is debited to the share capital account and any excess to share premium and retained earnings account.
vi.
Investments
The Company classified its investments in equity securities / futures and options as available for sale. Investments are initially recognised at cost, including transaction costs are subsequently carried at cost or market value, whichever is lower on an overall category basis, based on the quoted bid and offer prices, respectively. When current bid and offer prices are unavailable, the price of the most recent transaction is used. All investment transactions are recorded on a trade date basis and costs of investments are determined on an average cost basis.
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Reports
vii.
Taxation
Income tax on the profit or loss for the year comprises current and deferred tax. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted at the balance sheet date, and any adjustment to tax payable in respect of prior years. Deferred tax is provided using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted at the balance sheet date.
II.
NOTES TO THE ACCOUNTS 1. 2. The Company is a subsidiary of Kotak Mahindra Bank Limited (KMBL). The accounts have been prepared and audited to attach with the accounts of KMBL, the holding company to comply with the provisions of the Indian Companies Act, 1956. The transactions are in local currency, which have been converted into Indian Currency for reporting and the rate applied is as per para I (B) (iii) of the significant accounting policies. Share Capital and Share Premium (Refer note 3(a)) MANAGEMENT SHARES Management shares shall only be issued at par value and shall not be redeemed. The Management shares shall not be class shares. All proceeds of allotment of Management shares shall be kept separately identifiable from class portfolio. Management shares shall confer on the holders thereof: (a) (b) (c) Voting rights in any members meeting other than class meetings of holders of class shares. Each Management share shall carry one vote. The right to participate in so much only of the profits and assets of the company as are attributable to the Management shares; and in a winding up the right set out in Article 52 of the Constitution. No Management shares shall at any time be held otherwise than by the subscribers set out in the first schedule to the Constitution or such person as may be approved by an unanimous resolution of the Board of Directors. The Management shares are currently held by Kotak Mahindra (International) Limited and Kotak Mahindra Bank Limited. The par value of management share is USD 1 each. PARTICIPATING SHARES The Participating shares consist of class A to S shares and shares: (a) (b) (c) be issued in respect of a specifically designated class, at a price not below the nominal value of the shares or at such higher price as the Directors may determine from time to time; carry a right to class dividend; and confer upon the holders thereof in a winding up to the rights set out in Article 52 of the Constitution. The Participating shares shall be divided into such number of classes as the Board may from time to time determine. On or before the issue or allotment of a Participating share, the Directors shall determine to which class it shall be attributable and each Participating share shall be issued or allotted as a Participating share or a designated class. The Directors shall at their sole discretion determine the voting rights for Participating shares of a designated class. Each Participating share of a class will confer upon the holder thereof the same voting rights as every other share of that class. The Directors at their sole discretion may determine that all Participating shares of a class, but not some, may be issued with no voting rights. The par value of participating share is USD 0.01each.
3.
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3(a) Share Capital and Share Premium KOTAK INDIA MID-CAP FUND INDIA EQUITY FUND OF FUND FMG OPPORTUNITIES FUND KOTAK LIQUID FUND KOTAK LIQUID FEEDER FUND (J1) GIOFL KOTAK FMP FEEDER FUND (L) GIOFL KOTAK FMP FEEDER FUND (Q) KOTAK INDIA INCOME FUND (R) KOTAK GIOFL INDIAN KOTAK GROWTH FUND OF FUND FUNDS SERIES 1 INVESTMENT ACCOUNT Total
10
LSP Class C Class D Class F Class I Class J1 MCP FOF FMG LF J1 121,610 73,989 (90,116) 105,483 ` 49,793 33,717 (41,066) 42,444 ` 924,354,931 1,236,582,687 (1,452,644,253) 708,293,365 57,751,301 63,994,524 24,616,675 (868,884,359) (154,756,866) 733,903,669 193,804,908 192,731,991 24,946,482 24,616,675 971,975,939 ` ` ` ` ` ` 1,179,664,328 95,869 64,975 (757) (401,076) (142,834) (972,949) (1,180,927) 341,939 178,866 (4,381) ` 1,995,058 (1,995,058) 757 155,006 28,943 972,949 1,180,927 4,381 ` ` ` ` ` ` ` ` 131 360 (120) 371 ` 5,166,375 245,404 115,507 800 (1,020) (880,121) (313,434) (2,049,500) (2,487,602) (9,230) (262) 750,350 392,504 790 1,292,781 (4,960) 1,287,821 ` 589,128 (2,260) 586,868 ` 14,992,352 573,504,672 (5,164,920) 1,020 375,175 36,437 2,049,500 2,487,602 9,230 272 5,209,284 2,579,574 (5,918,355) 1,870,503 ` 2,450,829 1,175,527 (2,784,323) 842,033 ` 4,209,605,540 4,186,350,934 (2,012,403) (6,313,017,686) 14,993,807 571,492,269 2,082,938,788 ` 9594 9,594 851,627 ` ` (971,975,939) (1,179,664,328)
KOTAK INDIAN GROWTH FUND
KOTAK INDIAN LIFE SCIENCES FUND
(a) Participating shares
IGP
Class A
Class B
Number of shares
At 1 April 2010
126,789
1,651
Issued during the period
69,161
Redeemed during the period
(80,460)
(1,651)
At 31 March 2011
115,489
Share capital
At 1 April 2010
56,655
1,287
31,517
(36,666)
(1,287)
At 31 March 2011
51,506
Share premium
At 1 April 2010
884,369,113
(215,352)
1,433,562,646
(1,676,134,912)
215,352
At 31 March 2011
641,796,847
Management Shares
At 31 March 2010
At 31 March 2011
Total Share Capital
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Reports
4.
LIST OF INVESTMENTS Quantity as at 31st March 2011 ` as at 31st March 2011 Quantity as at 31st March 2010 ` as at 31st March 2010
Scrip Name Quoted Adhunik Metaliks Limited Alembic Limited Anant Raj Industries Ltd Ansal Properties And Infrastructure Limited Asian Paints India Ltd Axis Bank Limited Bajaj Auto Limited Balrampur Chini Mills Ltd Bank Of India Bharti Airtel Ltd BHEL Biocon Limited Birla Sunlife Income Plus - Growth Cadila Healthcare Limited Cesc Ltd. Cipla Ltd. Colgate Palmolive India Ltd Crompton Greaves Ltd Diamond Power Infrastructure Limited Dish TV India Ltd Dishman Pharmaceuticals And Chemicals Ltd Divis Laboratories Limited DQ Entertainment(International) Limited Dr. Reddys Laboratories Ltd. Ess Dee Aluminium Limited Everonn Education Limited Exide Industries Ltd. Giofl Kotak Indian Growth Fund Glaxosmithkline Pharmaceuticals Limited Glenmark Pharmaceuticals Ltd Godawari Power and Ispat Ltd Godrej Consumer Products Limited Great Eastern Shipping Co. Ltd. New Greaves Cotton Limited Gvk Power And Infrastructure Limited Hathway Cable & Datacom Limited
235,000 71,000 74,000 80,901 107,456 85,958
11,220,414 7,459,985 14,472,817 4,828,211 12,082,257 18,645,972
150,000 7,611 110,000 195,000 40,356 28,784 5,664 254,900 80,925 84,000 11,077 3,139 56,504 1,495 85,250 76,014 32,000 368,125 4,300 50,406 306,401 1,252 36,000 26,871 506,346 271 528 117,282 50,738 174,761 153,975 102,862 1,547,485 17,372
14,230,567 469,161 11,469,702 15,042,832 57,070,685 30,268,725 9,181,737 23,861,852 43,204,396 37,667,214 18,252,141 805,446 2,230,196 421,701 33,324,233 18,220,573 15,695,235 44,214,412 1,058,872 30,994,634 32,505,614 902,108 12,266,293 10,526,726 39,247,861 4,936,269 524,113 27,767,688 11,701,134 38,347,342 39,090,339 22,516,725 56,904,383 3,584,609
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11
Scrip Name HDFC Bank Ltd HeidelbergCement India Limited Hindustan Construction Co. Ltd Hindustan Petroleum Corporation Ltd. Hindustan Zinc Limited ICICI Bank Ltd IDBI Bank Limited India Infoline IndusInd Bank Limited Infosys Technologies Ltd. Infotech Enterprises Ltd ITC Ltd IVR Prime Urban Developers Ltd IVRCL Assets & Holdings Ltd IVRCL Infrastructures & Projects Ltd. Jagran Prakashan Limited Jaiprakash Associates Ltd Jindal Steel And Power Ltd. JSW Steel Limited Jubilant Organosys Limited Jyoti Structures Ltd Kalpataru Power Transmission Ltd KNR Constructions Limited Lakshmi Energy And Foods Limited Lanco Infratech Ltd Larsen And Toubro Ltd. LIC Housing Finance Ltd Lupin Limited Magma Fincorp Limited Mahindra and Mahindra Ltd. Mindtree Consulting Limited Mphasis Limited Nagarjuna Construction Company Natco Pharma Limited National Thermal Power Corporation Limited Novartis India Ltd Oil And Natural Gas Corpn Ltd Oracle Financial Services Software Limited
Quantity as at 31st March 2011 42,000 53,811 97,000 120,628 302,942 39,799
` at 31st March 2011 13,548,006 12,109,683 13,252,118 13,262,865 17,934,147 11,217,070
Quantity as at 31st March 2010 22,000 280,000 210,000 145,000 24,000 102,205 200,000 171,500 195,937 29,925 113,358 147,000 84,955 121,000 273,494 254,611 48,000 35,000 196,766 70,000 47,000 115,000 50,000 500,000 28,875 49,250 41,442 36,000 58,000 44,316 125,326 78,750 1,250 28,875 14,175
` as at 31st March 2010 28,509,749 11,546,573 21,788,151 40,402,096 17,856,167 66,574,169 18,145,326 21,836,551 22,548,547 50,050,575 29,686,660 26,934,222 14,825,293 14,983,085 30,587,837 27,627,214 16,659,999 27,360,174 57,525,534 10,624,272 31,255,908 12,452,850 4,638,474 19,430,462 31,720,372 36,201,622 35,050,863 18,046,531 33,541,920 18,071,616 19,211,983 18,325,049 736,597 27,044,098 30,911,071
12
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Reports
Scrip Name Orbit Corporation Ltd Oriental Bank of Commerce Panacea Biotec Ltd. Pantaloon Retail (India) Ltd. Patel Engineering Ltd Persistent Systems Limited Petronet Lng Limited Pfizer Ltd. Piramal Healthcare Limited Provogue (India) Limited Punj Lloyd Limited Puravankara Projects Limited PVR Limited Ranbaxy Laboratories Ltd Redington India Limited Reliance Capital Limited Reliance Industries Ltd Reliance Infrastructure Limited Sesa Goa Ltd. Shree Cements Ltd Shriram Transport Finance Co Ltd Sintex Industries Ltd. Smithkline Beecham Consumer Healthcare Ltd Sobha Developers Ltd Spicejet Limited State Bank Of India Sterlite Industries (India) Ltd. Strides Arcolab Limited Sun Pharmaceuticals Industries Ltd Sunil Hitech Engr Ltd Tata Chemicals Ltd. Tata Consultancy Services Limited Tata Power Co. Ltd. Tata Steel Limited The Dhampur Sugar Mills Ltd The Federal Bank Ltd The Jammu And Kashmir Bank Ltd. Thermax Ltd
Quantity as at 31st March 2011 57,500 57,000
` at 31st March 2011 22,120,101 15,010,231
Quantity as at 31st March 2010 170,000 74,508 1,715 55,000 111,900 6,898 374,953 834 52,041 330,750 75,000 240,073 207,453 3,912 96,484 22,000 70,500 30,800 30,000 6,500 70,000 50,000 18,000 80,000 411,768 23,656 49,875 910 74,145 110,000 46,025 21,525 70,875 131,740 91,000 28,798 26,333
` as at 31st March 2010 44,642,771 19,387,628 419,611 21,201,720 51,108,292 2,136,477 27,987,974 644,861 13,848,190 19,577,074 19,893,621 23,253,235 25,816,488 1,192,652 23,509,821 18,830,888 58,277,165 25,951,485 6,702,408 7,768,077 21,818,456 10,133,336 15,948,884 15,862,211 23,122,640 44,587,477 29,769,110 923,206 16,480,990 28,629,941 18,569,403 24,428,262 31,900,810 16,970,591 20,841,701 17,290,400 16,443,894
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Scrip Name Torrent Power Limited TTK Prestige Ltd. Ultratech Cement Limited Union Bank Of India United Phosphorous Ltd. United Spirits Ltd Usha Martin Limited Voltas Ltd. Wipro Ltd Wyeth Lederle Ltd. Yes Bank Limited Zee Entertainment Enterprises Ltd Birla Sunlife Frotline Equity Fund - Plan A - Growth Camson Bio Technologies Ltd HDFC Midcap Opportunites Fund Growth HDFC Top 200 Fund Growth ICICI Prudential Discovery Fund - Growth ICICI Prudential Focused Bluechip Equity Fund Retain Growth Jain Irrigation Systems Limited Kotak Nifty ETF Total Unquoted HDFC FMP 13M Growth- Series XI Kotak Bond (Regular) Growth Kotak FMP 370 Days Series 1 - Growth Kotak Fund of Funds Mutual Fund Growth Option Kotak Funds - India Blue Chip Fund Ltd KIOFL - Kotak FMP Feeder Fund(K) Kotak Funds - India Blue Chip Fund Ltd-SERIES 1 Kotak Funds - India Midcap Fund Total Grand Total
Quantity as at 31st March 2011 1,208,087 37,307 3,530,446 507,657 1,110,638 6,589,782 50,200 195,000 14,654,112
` at 31st March 2011 108,017,385 4,345,069 54,040,310 108,017,028 54,008,648 108,017,340 9,230,273 113,465,154 746,305,084
Quantity as at 31st March 2010 81,690 23,296 18,000 137,500 163,624 13,000 83,962 404,847 39,532 859 85,000 221,310 12,862,985
` as at 31st March 2010 25,373,053 11,228,836 9,160,845 22,534,715 23,107,080 14,394,473 8,197,627 67,450,776 11,458,892 560,851 13,934,804 54,862,527 2,629,353,357
4,977,858 33,315 3,098,269 8,109,442 22,763,554
2,281,885,256 14,967,777 1,466,524,681 3,763,377,714 4,509,682,798
113,812,585 91,248 51,227,000 405,959 2,402,404 941,718 168,880,914 181,743,899
1,083,814,436 2,230,220 488,965,200 6,156,959 1,077,599,993 417,897,003 3,076,663,811 5,706,017,168
14
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5.
DERIVATIVES There are no open derivative contracts as at 31st March 2011. The open positions as on 31st March 2010 are as follows:
Instrument Type
Underlying
Expiry date
Notional amount of contracts outstanding 11,264 11,900 36,000 38,250 33,500
Fair value of assets 2010 USD (9,731) (904) 19,682 (537) 24,342 32,852
Fair value of liabilities 2010 USD
FUTSTK-Grasim FUTSTK - Pantaloon FUTSTK - Sesagoa FUTSTK- Tata Motors OPTSTK -NIFTY
Equity prices Equity prices Equity prices Equity prices Index
April 2010 April 2010 April 2010 April 2010 April 2010
The above options are out-of-the money and hence have nil value. 6. TAXATION The company is subject to income tax in Mauritius at the rate of 15%. However, it is entitled to a tax credit equivalent to the higher of the actual foreign tax suffered and 80% of the Mauritian tax on its foreign source income. RELATED PARTY TRANSACTIONS During the year ended 31st March 2011, the companys transactions with related party are as follows: ` Related Parties Nature of Relationship Nature of Transactions Volume of transaction for the period ended 31st March 2011 Kotak Mahindra (UK) Limited Fellow Subsidiary Management fee Regulatory & administrative services fee 10,452,346 1,262,930 2010 77,942,487 39,076,324 Debit / (credit) balance at 31st March 2011 2010
7.
(1,223,954)
(6,968,929)
All related party transactions entered during the year by the Company are priced on commercial terms and conditions. 8. Previous year figures have been regrouped and reclassified wherever necessary to conform to current years presentation.
Signatures to Schedules 1 to 8 As Per our Report attached For V. C. Shah & Co. Chartered Accountants A N Shah Partner Mumbai, 2nd May 2011 Abdool Azize Owasil Director Riad Aubdool Director For and on behalf of the Board of Directors
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15
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KOTAK INVESTMENT ADVISORS LIMITED
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BOARD OF DIRECTORS : MR. C. JAYARAM, MR. JAIMIN BHATT, MS. SHANTI EKAMBARAM, MS. FALGUNI NAYAR, MR. NITIN DESHMUKH, MR. S. SRINIWASAN
Directors Report
To the Members of: KOTAK INVESTMENT ADVISORS LIMITED The Directors have pleasure in presenting their Seventeenth Annual Report together with the audited accounts of the Company for the year ended March 31, 2011. FINANCIAL RESULTS AND OPERATIONS For the year ended 31st March 2011 (`) ` Gross Income Profit before Tax Provision for Tax Net Profit after Tax carried to Balance Sheet 96,09,81,861 49,22,23,536 16,50,82,566 32,71,40,970 For the year ended 31st March 2010 (`) 99,11,05,231 59,82,63,685 20,07,49,000 39,75,14,685
The Company acts as investment manager to five domestic venture capital / private equity and realty funds operating in the alternate assets domain, the aggregate corpus of which as on March 31, 2011, is ` 3,427 crores. During the year ended March 31, 2011, certain funds managed by the Company exited from few portfolio investments aggregating to a total consideration of ` 739.59 crores (aggregate cost of investments ` 302.10 crores) and made distributions to the investors. The Company also provides non-binding advisory services to offshore funds managed by Kotak Groups international subsidiaries. Fee income from the business of investment management/advisory was ` 85.69 crores for the year ended March 31, 2011 as compared to ` 91.88 crores for the previous year The profit before tax of the Company for the year ended March 31, 2011 was ` 49.22 crores as compared to ` 59.83 crores for the previous year. The profit after tax for the year ended March 31, 2011 was ` 32.71 crores as against ` 39.75 crores during the previous year. The earnings per share of the Company was ` 71.24 per share for the year ended March 31, 2011 as compared to ` 86.57 per share during the previous year. DIVIDEND The Directors do not recommend any dividend for this financial year. DIRECTORS Ms. Falguni Nayar and Mr. S. Sriniwasan retire by rotation at the ensuing Annual General Meeting and, being eligible, offer themselves for re-appointment. AUDIT COMMITTEE The audit committee consists of (1) Mr. C. Jayaram (2) Mr. Jaimin Bhatt (3) Ms. Shanti Ekambaram with any two members forming the quorum. During the year, 3 meetings of the audit committee were held on April 28, 2010, June 16, 2010 and March 17, 2011. AUDITORS The Companys Auditors, M/s Price Waterhouse, Chartered Accountants, Mumbai, retire at the ensuing Annual General Meeting and are eligible for reappointment. STATUTORY INFORMATION a. b. During the year under review, the Company has not accepted any deposits from the public. A statement giving the particulars of employees as required under Section 217 (2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975, is annexed.
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c.
The Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, require the disclosure of particulars regarding Conservation of Energy in Form A and Technology Absorption in Form B prescribed by the Rules. Since the Company is not a manufacturing company, Forms A & B are not applicable to it. Foreign Exchange Earnings and Outgo: (i) (ii) Foreign exchange inflow: `10.44 crores Foreign exchange outgo: ` 1.07 crores
d.
EMPLOYEES The Company recognizes that human capital is the key to success and growth in the Companys business. As on March 31, 2011, the Company had 47 employees. The employees are highly qualified with approx. 55% graduates from premier business schools and approx. 26% being professionals like CAs, CSs and Lawyers. DIRECTORS RESPONSIBILITY STATEMENT The Directors, based on representations received from the operational management, confirm in pursuance of section 217(2AA) of the Companies Act, 1956 that: i) ii) the Company has, in the preparation of the annual accounts for the year ended March 31, 2011, followed the applicable accounting standards along with proper explanations relating to material departures, if any; 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 as at March 31, 2011 and of the profit of the Company for the year ended March 31, 2011; the Directors have taken proper and sufficient care to the best of their knowledge and ability, for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and Directors have prepared the annual accounts on a going concern basis.
iii)
iv)
ACKNOWLEDGEMENTS We thank our Members, Trustee, investors of funds under management, Investee Companies and Bankers for their continued support during the year. We place on record our appreciation for the contributions made by the employees at all levels for their commendable efforts, teamwork and professionalism. We would like to place on record the gratitude for the valuable guidance and support received from the Securities and Exchange Board of India and other Government and Regulatory agencies and look forward to their continued support in the future. For and on behalf of the Board of Directors 26th April 2011 Mumbai Nitin Deshmukh Whole time Director S Sriniwasan Whole time Director
Kotak Investment Advisors Limited Annual Report 2010-11
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Auditors Report
TO THE MEMBERS OF KOTAK INVESTMENT ADVISORS LIMITED 1. We have audited the attached Balance Sheet of Kotak Investment Advisors Limited (The Company), as at March 31, 2011 and the related Profit and Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto, which we have signed under reference to this report. These financial statements are the responsibility of the Companys Management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion. As required by the Companies (Auditors Report) Order, 2003 as amended by the Companies (Auditors Report) (Amendment) Order, 2004 (together the Order) issued by the Central Government of India in terms of sub-section (4A) of Section 227 of The Companies Act,1956 of India (the Act) and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order. Further to our comments in paragraph 3 above, we report that: (a) (b) (c) (d) (e) We have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit; In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books; The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account; In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Act. On the basis of written representations received from the directors, as on March 31, 2011, and taken on record by the Board of Directors, none of the directors are disqualified as on March 31, 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Act; In our opinion and to the best of our information and according to the explanations given to us, the said financial statements together with the notes thereon and attached thereto give, in the prescribed manner, the information required by the Act, and give a true and fair view in conformity with the accounting principles generally accepted in India: (i) (ii) (iii) in the case of the Balance Sheet, of the state of affairs of the company as at March 31, 2011; in the case of the Profit and Loss Account, of the profit for the year ended on that date; and in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
2.
3.
4.
(f)
For Price Waterhouse Firm Registration Number: 301112E Chartered Accountants Vivek Prasad Partner Membership Number: F-104941 Place: Mumbai Date: 26th April 2011
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Referred to in paragraph 3 of the Auditors Report of even date to the members of Kotak Investment Advisors Limited on the financial statements for the year ended March 31, 2011 1. (a) (b) (c) 2. 3. The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed assets. The fixed assets of the Company have been physically verified by the Management during the year and no material discrepancies between the book records and the physical inventory have been noticed. In our opinion, the frequency of verification is reasonable. In our opinion and according to the information and explanations given to us, a substantial part of fixed assets has not been disposed off by the Company during the year.
The Company did not have any inventory at anytime during the year. Hence, the requirements of clause (ii) of paragraph 4 of the said Order are not applicable to the Company. (a) (b) The Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under Section 301 of the Act. The Company has taken unsecured loans, from one company covered in the register maintained under Section 301 of the Act. The maximum amount involved during the year and the year-end balance of such loans aggregates to ` 300,000,000 and ` NIL respectively. In our opinion, the rate of interest and other terms and conditions of such loans are not prima facie prejudicial to the interest of the Company. In respect of the aforesaid loans, the Company is regular in repaying the principal amounts as stipulated and is also regular in payment of interest, where applicable.
(c) (d) 4.
In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of fixed assets and for the sale of services. Further, on the basis of our examination of the books and records of the Company, and according to the information and explanations given to us, no major weakness have been noticed or reported. (a) (b) In our opinion and according to the information and explanations given to us, the particulars of contracts or arrangements referred to in Section 301 of the Act have been entered in the register required to be maintained under that section. In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements and exceeding the value of Rupees Five Lakhs in respect of any party during the year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.
5.
6. 7. 8. 9.
The Company has not accepted any deposits from the public within the meaning of Sections 58A and 58AA of the Act and the rules framed there under. In our opinion, the Company has an internal audit system commensurate with its size and nature of its business. The Central Government of India has not prescribed the maintenance of cost records under clause (d) of sub-section (1) of Section 209 of the Act for any of the products of the Company. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing the undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, income-tax, sales-tax, wealth tax, service tax, customs duty, excise duty, cess and other material statutory dues as applicable with the appropriate authorities. According to the information and explanations given to us and the records of the Company examined by us, there are no dues of income-tax, sales-tax, wealth-tax, service-tax, customs duty, excise duty and cess which have not been deposited on account of any dispute.
(b)
10. 11. 12. 13.
The Company has no accumulated losses as at March 31, 2011 and it has not incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year. According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of dues to any financial institution or bank or debenture holders as at the balance sheet date. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. The provisions of any special statute applicable to chit fund / nidhi / mutual benefit fund / societies are not applicable to the Company.
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Reports
14.
In our opinion, the Company has maintained proper records of transactions and contracts relating to dealing or trading in shares, securities, debentures and other investments during the year and timely entries have been made therein. Further, such securities have been held by the Company in its own name or are in the process of transfer in its name, except to the extent of the exemption granted under Section 49 of the Act. In our opinion and according to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions during the year. The Company has not obtained any term loans. On the basis of an overall examination of the balance sheet of the Company, in our opinion and according to the information and explanations given to us, there are no funds raised on a short-term basis which have been used for long-term investment. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Act during the year. The Company has not issued any debentures during the year. The Company has not raised any money by public issues during the year. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the Management.
15. 16. 17. 18. 19. 20. 21.
For Price Waterhouse Firm Registration Number: 301112E Chartered Accountants Vivek Prasad Partner Membership Number: F-104941 Place: Mumbai Date: 26th April 2011
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Schedule SOURCES OF FUNDS SHAREHOLDERS FUNDS Capital RESERVES AND SURPLUS TOTAL APPLICATION OF FUNDS FIXED ASSETS Gross Block Less: Depreciation Net Block Capital Work In Progress INVESTMENTS DEFERRED TAX (Refer note 4 on Schedule 14) Deferred Tax Asset (net) CURRENT ASSETS, LOANS AND ADVANCES Sundry Debtors Cash and Bank Balances Other Current Assets Loans and Advances LESS: CURRENT LIABILITIES AND PROVISIONS Liabilities Provisions NET CURRENT ASSETS TOTAL Notes to Financial Statements 14 9 10 57,626,949 25,439,986 83,066,935 84,676,130 1,560,773,268 53,024,743 25,198,449 78,223,192 624,685,799 1,233,632,298 5 6 7 8 8,978,501 79,848,296 57,036,002 21,880,266 167,743,065 7,772,872 653,756,586 11,174,205 30,205,328 702,908,991 10,853,061 4,525,627 4 3 25,658,021 14,806,705 10,851,316 10,851,316 1,454,392,761 22,666,946 9,911,972 12,754,974 102,324 12,857,298 591,563,574 1 2 45,920,000 1,514,853,268 1,560,773,268 45,920,000 1,187,712,298 1,233,632,298 31st March 2011 ` ` ` 31st March 2010 `
Schedules referred to above form an integral part of the Balance Sheet
This is the Balance Sheet referred to in our report of even date For Price Waterhouse Firms Registration Number: 301112E Chartered Accountants Vivek Prasad Partner Membership No. F-104941 Place: Mumbai Date: 26th April 2011 For and on behalf of the Board of Directors
Naozad Sirwalla Chief Operating Officer
Deepak Mukhija Company Secretary
Nitin Deshmukh Whole time Director
S Sriniwasan Whole time Director
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Schedule Income Management and Advisory Fees (Net) (Refer note 5 on Schedule 14) Profit on sale of current investments Interest on : Fixed Deposits (Gross) (Tax deducted at source `634,361- (Previous year ` 1,556,018)) Long Term Investments Current Investments (Gross) (Tax deducted at source ` Nil (Previous year ` 391,118)) Income Tax Refund Dividend on current investments Other income Write back of provision on dimunition in value of long term investments (Net) TOTAL EXPENDITURE Personnel Loss on Sale of Current Investment (Net) Loss on Sale of Long Term Investment Interest and other financial charges Administrative, operating and other expenses Depreciation Provision for dimunition in value of long term investments TOTAL Profit Before Taxation Current tax Deferred tax (Refer Note 4 on Schedule 14) Profit After Taxation Balance brought forward from previous year Balance carried to balance sheet Earnings per share on equity shares of Rs 10 each Basic and Diluted (Refer Note 17 on Schedule 14) Notes to Financial Statements 14 Schedules referred to above form an integral part of the Profit and Loss Account 11 856,885,964 918,751,257 10,253,476 ` 31st March 2011 ` 31st March 2010 `
6,343,616 61,587,219 14,115,068 82,045,903 5,225,653 394,878 16,429,463 960,981,861 12 263,127,200 65,687,639 3,241,579 6,513,699 123,757,942 6,430,266 468,758,325 492,223,536 171,410,000 (6,327,434) 165,082,566 327,140,970 1,182,212,298 1,509,353,268 71.24
10,639,053 42,403,551 1,726,027 83,684 6,544,906 703,277 991,105,231 234,159,957 323,336 62,224 135,359,289 5,781,240 17,155,500 392,841,546 598,263,685 197,500,000 3,249,000 200,749,000 397,514,685 784,697,613 1,182,212,298 86.57
13
This is the Profit and Loss Account referred to in our report of even date For Price Waterhouse Firms Registration Number: 301112E Chartered Accountants Vivek Prasad Partner Membership No. F-104941 Mumbai Date: 26th April 2011 Its grt 2b 25 For and on behalf of the Board of Directors
2010-2011 ` CASH FLOW FROM OPERATING ACTIVITIES Net Profit before taxation Adjustments for: Depreciation (Profit) / Loss on sale of Current Investments (Profit) / Loss on sale of Long term Investments (Profit) / Loss on disposal of Fixed assets Dividend on Current Investments Diminution / (Write back) in value of Long Term Investments Interest on Long term investments Interest on other financial charges Interest on Current investments/Fixed deposit OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES Adjustments for: (Increase) / Decrease in loans and advances (Increase) / Decrease in sundry debtors (Increase) / Decrease in other current assets, excluding purchase interest Increase / (Decrease) in current liabilities Increase / (Decrease) in provision for gratuity and leave encashment CASH (USED IN) / GENERATED FROM OPERATIONS Direct taxes paid (net of refunds and Interest thereon) NET CASH FLOW FROM OPERATING ACTIVITIES (A) CASH FLOW FROM INVESTING ACTIVITIES Purchase of fixed assets (net) Purchase of investments, including purchase interest Sale of investments Interest / dividend received on Investments NET CASH FLOW (USED IN) / FROM INVESTING ACTIVITIES (B) CASH FLOW FROM FINANCING ACTIVITIES Interest on other financial charges NET CASH FLOW FROM FINANCING ACTIVITIES (C) Net Increase /(Decrease) In Cash and Cash Equivalents (A + B + C) Cash and Cash Equivalents at the beginning of the Year Cash and Cash Equivalents at the end of the Year (6,513,699) (6,513,699) (573,908,290) 653,756,586 79,848,296 (573,908,290) 382,744,722 271,011,864 653,756,586 382,744,722 (4,029,406) (3,825,397,406) 2,907,693,015 87,271,556 (834,462,241) (5,605,881) (2,355,501,057) 2,281,200,893 61,313,537 (18,592,508) 10,347,943 (1,205,629) (43,486,348) 4,602,206 6,597,531 446,856,525 179,788,875 267,067,650 12,671,816 2,146,343 18,431,747 22,292,764 3,123,338 608,775,580 207,438,351 401,337,229 6,430,266 65,687,639 3,241,579 (394,878) (5,225,653) (16,429,463) (61,587,219) 6,513,699 (20,458,684) 470,000,822 5,781,240 (10,253,476) 323,336 152,825 (6,544,906) 17,155,500 (42,403,551) (12,365,080) 550,109,573 492,223,536 598,263,685 2009-2010 `
Notes: 1. The above Cash Flow Statement has been prepared under the Indirect Method as set out in Accounting Standard-3 on Cash Flow Statements issued by the Institute of Chartered Accountants of India. 2. Cash and cash equivalent at the year end includes cash balance ` Nil (Previous year ` 226) and bank balances ` 79,848,296 (Previous year ` 653,756,360). This is the Cash Flow Statement referred to in our report of even date For Price Waterhouse Firms Registration Number: 301112E Chartered Accountants Vivek Prasad Partner Membership No. F-104941 Mumbai, 27th April 2011 Naozad Sirwalla Chief Operating Officer For and on behalf of the Board of Directors
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Reports

31st March 2011 ` SCHEDULE 1 - CAPITAL Authorised 5,000,000 (Previous Year 5,000,000) equity shares of ` 10 each TOTAL Issued and Subscribed 4,592,000 (Previous year 4,592,000) equity shares of ` 10 each fully paid up (Of the above 2,341,930 (previous year 2,341,930) equity shares of ` 10 each are held by the holding company, Kotak Mahindra Bank Limited) TOTAL 45,920,000 45,920,000 45,920,000 45,920,000 50,000,000 50,000,000 50,000,000 50,000,000 31st March 2010 `
SCHEDULE 2 - RESERVES AND SURPLUS Capital Redemption Reserve Profit and Loss Account 5,500,000 1,509,353,268 1,514,853,268 5,500,000 1,182,212,298 1,187,712,298
SCHEDULE 3 - FIXED ASSETS (at cost) (Refer note 1(C) on Schedule 14) Cost / Book Value Description As at 1st April 2010 Additions Deductions/ As at Adjustments/ 31st March Transfers 2011 As at 1st April 2010 Depreciation / Amortisation For the year Net Block As at 31st March 2010
Deductions/ As at As at Adjustments/ 31st March 31st March Transfers 2011 2011
ASSETS Vehicles Computers Office Equipments TOTAL Previous Year 17,495,926 3,903,276 1,267,744 22,666,946 17,875,355 3,994,476 1,205,914 353,546 5,553,936 7,151,056 2,562,861 18,927,541 2,562,861 2,359,465 5,109,190 1,621,290 25,658,021 22,666,946 7,634,203 4,757,480 1,939,892 1,350,479 337,877 322,307 1,535,533 10,856,150 1,535,533 559,141 3,290,371 660,184 14,806,705 9,911,972 10,851,316 102,324 12,857,298 8,071,391 1,818,819 961,106 10,851,316 9,861,723 1,963,384 929,867 12,754,974
9,911,972 6,430,266 4,689,873 5,781,240
Capital Work in progress (including advances) (Refer note 2 on Schedule 14)
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SCHEDULE 4 - INVESTMENTS (Refer note 15 on Schedule 14) Face value (`) Long Term Investments (Non Trade) (At cost, less dimunition other than temporary in nature) Quoted Equity Shares Reliance Industries Limited Diamond Power Infrastructure Limited* Minda Corporation Limited Debentures in Companies under the same management 11.25% Secured Non Convertible Debentures of Kotak Mahindra Prime Limited 8% Secured Non Convertible Debentures of Kotak Mahindra Prime Limited 8.3% Secured Non Convertible Debentures of Kotak Mahindra Prime Limited Debentures in other Companies 15% Unsecured Non Convertible Debentures of Starlight Systems Private Limited 23.75% Redeemable Secured Non-Convertible Debentures of Akarsh Residential Private Limited 23% Secured Non Convertible Debentures of Ultra Space Developers Private Limited ( FV on 31/03/2010 - 1,000,000) 16.5% Redeemable Secured Non Convertible Debentures of EMAAR MGF Land Limited 20.4% Redeemable Secured Non Convertible Debentures of Three C Projects Private Limited 20.4% Redeemable Secured Non Convertible Debentures of Total Environment Living Spaces Private Limited 20% Redeemable Secured Non Convertible Debentures of Century Real Estate Holdings Private Limited Unquoted Equity Shares IVR Hotels and Resorts Limited Lemon Tree Hotels Private Limited (Formerly known as Krizm Hotel Private Limited) Bharat Serums and Vaccines Limited Class A Equity Shares of S H Mangalam Realty Private Limited Class B Equity Shares of S H Mangalam Realty Private Limited Matrix Business Services India Private Limited Muthoot Finance Limited Mahindra Aerospace Private Limited 5 10 10 10 10 10 29,151 647 3,881 13,255 160,106 224,439 29,151 647 3,881 13,255 6,291,488 6,470 38,810 2,981,400 21,294,098 4,385,538 6,291,488 6,470 38,810 2,981,400 10 10 1,762 82,396 1,762 82,396 43,022,754 19,206,070 43,022,754 19,206,070 100,000 100,000 415 320 415 320 41,500,784 32,011,412 41,500,784 32,011,412 1,000,000 1,000,000 1,000,000 100 500 150 150,000,000 100,000,000 10 10 10 44,160 10,563 30,500 8,999,808 8,450,400 33,543,174 31st March 2011 Quantity 31st March 2010 Quantity 31st March 2011 (`) ` 31st March 2010 (`)
100 100,000,000 500,000,000
789,234 980,876 1,000
43 67 27,500
43
33,938,451 65,720,130 27,501,500
43,001,376
10,000,000
20,003,000
1,000,000
39
39,003,001
10
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Reports
SCHEDULE 4 - INVESTMENTS (Refer note 15 on Schedule 14) (Continued) Face value (`) Preference Shares in Companies under the same management Redeemable Non-cumulative Non-convertible Preference Shares of Kotak Mahindra Prime Limited. Preference Shares in other Companies Convertible Redeemable Preference Shares of Bharat Serum and Vaccines Limited Compulsorily Convertible Preference shares of Manipal Health Enterprises Private Limited Debentures 0.001% Optionally Convertible Reedemable Debenture of Fortune Estate Developer Private Limited 0.01% Series A Optionally Convertible Reedemable Debenture of S H Mangalam Realty Private Limited (Refer Note 3 (b) on Schedule 14) In Units of Venture Capital Funds (Partly Paid Up) Kotak India Growth Fund II (Refer Note 3(a) on Schedule 14) SBI Macquarie Infrastructure Trust (Refer Note 3(a) on Schedule 14) Less: Provision for Dimunition in Value of Long Term Investments TOTAL Aggregate Value of Quoted Investments Aggregate Value of Unquoted Investments * Under Lock in period Book Value Market Value Book Value 100,000 10 4,000 7,000,000 4,000 152,000,000 20,648,349 1,490,683,929 36,291,168 1,454,392,761 877,128,486 874,929,318 613,555,443 644,284,204 52,720,630 591,563,574 400,056,746 399,290,397 191,506,828 104,000,000 100 474,383 474,383 47,438,300 47,438,300 5 10 26,938 2,500,000 26,938 8,314,286 25,000,000 8,314,286 10 250,000 250,000,000 31st March 2011 Quantity 31st March 2010 Quantity 31st March 2011 (`) ` 31st March 2010 (`)
10
1,292,788
1,292,788
12,927,880
12,927,880
31st March, 2011 (`) ` SCHEDULE 5 - SUNDRY DEBTORS (Unsecured) Considered good Over six months Others (Refer Note 7 on Schedule 14) 8,978,501 8,978,501
31st March, 2010 (`)
7,772,872 7,772,872
TOTAL
SCHEDULE 6 - CASH AND BANK BALANCES Cash on hand Balances with scheduled banks on - current account TOTAL 79,848,296 79,848,296 226 653,756,360 653,756,586
Its grt 2b 25
11
31st March 2011 (`) ` SCHEDULE 7 - OTHER CURRENT ASSETS Interest accrued on debentures Receivable on sale of investments Share application money pending allotment TOTAL 53,453,749 3,082,030 500,223 57,036,002
31st March 2010 (`)
11,136,005 38,200 11,174,205
SCHEDULE 8 - LOANS AND ADVANCES (Unsecured, considered good) Advances recoverable in cash or in kind or for value to be received (Refer Note 8 on Schedule 14) Other Deposits Advance Fringe Benefit tax (Net of Provision for Tax `7,215,405 (Previous year ` 7,215,405)) Advance tax and Tax Deducted at Source (Net of Provision for Tax `750,993,000 (Previous year ` NIL)) TOTAL 21,880,266 30,205,328 8,357,790 18,705,733
2,150,000 9,349,595 2,022,881
2,150,000 9,349,595
SCHEDULE 9 - LIABILITIES Sundry creditors (Refer note 10 on schedule 14) Other liabilities * There are no amounts due and outstanding to be credited to investor education and protection fund. TOTAL 57,626,949 53,024,743 43,787,345 13,839,604 35,596,969 17,427,774
SCHEDULE 10 - PROVISIONS Gratuity Leave encashment Provision for tax (Net of advance tax paid ` NIL; Previous year ` 573,227,006) TOTAL 9,624,064 15,815,922 25,439,986 4,288,228 14,554,227 6,355,994 25,198,449
12
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Reports
SCHEDULES FORMING PART OF THE PROFIT AND LOSS ACCOUNT 31st March 2011 ` (`) SCHEDULE 11 - Other Income Profit on disposal of fixed assets Miscellaneous Income 394,878 394,878 703,277 703,277 31st March 2010 (`)
SCHEDULE 12 - PERSONNEL Salaries, allowances and bonus (Refer Note 6 on Schedule 14) Gratuity and leave encashment Staff Welfare Contribution to provident and other funds 242,601,680 7,369,752 1,131,554 12,024,214 263,127,200 218,632,925 3,373,562 1,588,292 10,565,178 234,159,957
SCHEDULE 13 - ADMINISTRATIVE, OPERATING AND OTHER EXPENSES Rent Common Establishment Expenses - reimbursement Advisory / Referral Fees Advertisement and Business Promotion Rates and Taxes Repairs and Maintenance Travel and Conveyance Membership, subscription and conference Office Expenses Marketing Support Services Auditors remuneration Audit fees Out of pocket expenses Legal and Professional charges Insurance Stamping Exchange Loss (net) Loss on disposal of fixed assets Other expenses 750,000 5,690 2,428,498 1,356,418 7,080 283,052 7,910,461 123,757,942 500,000 4,164 20,056,258 41,774 27,966 43,237 152,825 5,128,782 135,359,289 22,890,496 31,655,424 13,547,077 350,189 71,977 1,012,021 18,915,411 10,779,280 6,133,521 5,661,347 31,676,308 32,276,751 16,427,748 112,943 6,398 1,714,317 11,989,145 12,252,896 2,003,781 943,996
Its grt 2b 25
13
SCHEDULE 14 - NOTES TO THE FINANCIAL STATEMENTS 1. SIGNIFICANT ACCOUNTING POLICIES A. BASIS OF ACCOUNTING The financial statements have been prepared on historical cost basis of accounting. The Company adopts the accrual system of accounting and the financial statements conform with the Accounting Standards notified under the Companies (Accounting Standard) Rules, 2006, the generally accepted accounting principles prevailing in India and the relevant provisions of the Companies Act, 1956. The preparation of financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as on the date of the financial statements and the reported income and expenses during the reporting year. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Actual results could differ from these estimates. B. REVENUE RECOGNITION i. ii. C. Management fee is recognized on accrual basis at the rates specified in the investment management agreement from the date of initial closing of funds under management. Advisory fee is recognized on accrual basis as per terms of contract.
FIXED ASSETS AND DEPRECIATION a. b. Fixed assets are stated at cost inclusive of incidental expenses less accumulated depreciation / amortisation. The Company has adopted the Straight Line Method of depreciation so as to write off 100% of the cost of the assets at rates higher than those prescribed under Schedule XIV to the Companies Act, 1956 for all assets other than premises, based on the Managements estimates of useful lives of these assets. Estimated useful lives over which assets are depreciated are as follows: Computers and software Vehicles Office Equipment c. Fixed assets costing less than `. 5,000 are fully depreciated in the year of purchase. 3 years 4 years 5 years
D.
INVESTMENTS Investments are classified into long term investments and current investments. Investments, which are intended to be held for more than one year are classified as long term investments and investments, which are intended to be held for less than one year, are classified as current investments. Long term investments are accounted at cost and any decline in value, other than temporary is provided for. Current investments are valued at cost (calculated by applying weighted average cost method) or market / fair value whichever is lower. Brokerage, stamping and additional charges paid are included in the cost of investments. In case of investments in mutual funds, the net asset value of units is considered as market / fair value.
E.
TAXATION The Income Tax expense comprises Current tax and Deferred tax. Current tax is measured at the amount expected to be paid in respect of taxable income for the year in accordance with the Income tax Act, 1961. Deferred tax adjustments comprises of changes in the deferred tax assets and liabilities. Deferred tax assets and liabilities are recognised for the future tax consequences of timing differences being the difference between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets arising mainly on account of carry forward losses and unabsorbed depreciation under tax laws are recognised only if there is virtual certainty of its realisation, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantially enacted before the balance sheet date. Changes in deferred tax assets / liabilities on account of changes in enacted tax rates are given effect to in the Profit and Loss Account in the period of the change. The carrying amount of deferred tax assets are reviewed at each balance sheet date. The Company writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized.
F.
FOREIGN CURRENCY TRANSACTIONS Transactions in foreign currencies are recorded at the rate of exchange prevailing on the date of the transaction. Monetary assets and liabilities contracted in foreign currencies are restated at the rate of exchange ruling at the Balance Sheet date. Exchange differences arising on settlement of the transaction and on account of restatement of assets and liabilities are dealt with in the Profit and Loss Account.
14
Its grt 2b 25
Reports
G.
EMPLOYEE BENEFITS (a) Long Term Employee Benefits: Defined Contribution Plan Contribution as required by the Statute made to the Government Provident Fund is debited to the Profit and Loss Account. The Company contributes a sum equivalent to 15% of eligible employees salary subject to a maximum of ` 1 lakh per annum per employee to a Superannuation Fund administered by trustees and managed by a Life Insurance Company. The Company recognises such contributions as an expense in the year they are incurred. Defined Benefit Plan The Company accounts for the liability for future gratuity benefits based on an actuarial valuation. The gratuity obligation is wholly unfunded. The net present value of the Companys obligation towards the same is actuarially determined based on the projected unit credit method as at the Balance Sheet date. Actuarial gains / losses are immediately recognised in the profit and loss account and are not deferred. Other Long term Employee Benefit The Company accrues the liability for compensated absences based on the actuarial valuation as at the balance sheet date conducted by an independent actuary. The net present value of the Companys obligation is determined based on the projected unit credit method as at the Balance Sheet date. (b) EMPLOYEE STOCK OPTION SCHEME Cash-settled scheme: The cost of cash-settled scheme (stock appreciation rights) is measured initially using intrinsic value method at the grant date taking into account the terms and conditions upon which the instruments were granted. This intrinsic value is amortised on a straight-line basis over the vesting period with a recognition of corresponding liability. This liability is remeasured at each balance sheet date up to and including the settlement date with changes in intrinsic value recognised in profit and loss account in Salaries allowances and bonuses under Schedule 12. (c) Other Employee Benefits: The undiscounted amount of employee benefits expected to be paid in exchange for the services rendered by employees is recognised during the period when the employee renders the service. These benefits include performance incentives. There could be some in the form of deferred incentive etc.
H.
PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS Provision is recognised when there is a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.
2.
Estimated amount of contracts (net of advances) remaining to be executed on capital account and not provided for is ` NIL (Previous year ` 2,202,212). Contingent Liabilities: a) The Company is contingently liable in respect of : i) ii) b) c) calls on 4,000 partly paid units of Kotak India Growth Fund II aggregating ` 248,000,000 (Previous year ` 296,000,000), calls on 7,000,000 partly paid units of SBI Macquarie Infrastructure Trust aggregating ` 49,351,653 (Previous year ` NIL)
3.
The Company is contingently liable in respect of future investment commitment to S. H. Mangalam Realty Private Limited ` 5,075,340 (Previous year ` 5,075,340) The Company had filed an appeal against the Refund Order of Income Tax Department pertaining to assessment year 2007-2008 and had estimated a contingent liability of ` 320,877. Based on the latest intimation received by the Company from the Income Tax Department, there is no contingent liability for assessment year 2007-2008 (Previous year ` 320,877)
Its grt 2b 25
15
4.
Components of deferred tax balances are as follows: 31st March 2011 Deferred tax liability Depreciation Broken Period Interest Total Deferred tax asset Provision for gratuity / leave encashment Depreciation Deferred incentive Unabsorbed capital loss Others Total Net Deferred Tax (Liability) / Asset 8,290,053 1,482,711 360,279 8,938,816 2,578,276 21,650,135 10,853,061 NIL 10,797,074 10,797,074
(`) 31st March 2010 819,639 2,226,938 3,046,577 6,258,992 NIL NIL 236,060 1,077,152 7,572,204 4,525,627
In assessing the realizability of deferred tax assets, Management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. Based on the level of historical taxable income and projections for future taxable income over the period in which the deferred tax assets are deductible, Management is of the view that it is more likely than not that the Company will realize the benefits of these deductible differences. 5. 6 Management and advisory fees is net of fees paid aggregating ` 5,988,723 (Previous year ` 6,249,500). At the General Meetings of the holding company, Kotak Mahindra Bank Limited, the shareholders of the Bank had unanimously passed Special Resolutions on 28th July, 2000, 26th July, 2004, 26th July, 2005, 5th July, 2007 and 21st August, 2007, to grant options to the Eligible Employees of the Bank and its subsidiaries companies. Pursuant to these resolutions, the following four Employees Stock Option Schemes had been formulated and adopted: Kotak Mahindra Equity Option Scheme 2001-02 Kotak Mahindra Equity Option Scheme 2002-03 Kotak Mahindra Equity Option Scheme 2005 Kotak Mahindra Equity Option Scheme 2007 In accordance with SEBI (Employees Stock Option Scheme and Employee Stock Purchase) Guidelines, 1999 and the guidance note on Accounting for Employee Share-based Payments issued by the Institute of Chartered Accountants of India, the excess, if any, of the market price of share preceding the date of grant of the option under ESOPs over the exercise price of option is amortised on a straight-line basis over the vesting period. The Company has reimbursed the Bank ` 5,271,144 (Previous year ` 13,356,840) during the year on account of such cost and the same is forming part of employee cost and forming part of Salaries allowances and bonuses under Schedule 12 Stock appreciation rights (SARs) During the year, the management had approved (SARs) to be granted to eligible employees as and when deemed fit. The SARs are to be settled in cash and will vest in the manner as provided in the scheme / grant letters to employees. The contractual life (which is equivalent to the vesting period) of the SARs ranges from May 2010 to September 2011 Detail of activity under SARs is summarized below: Number of SARs Year Ended 31 Mar 2011* Outstanding at the beginning of the year Granted during the year Exercised during the year Expired during the year Forfeited during the year Outstanding at the end of the year NIL 8,200 4,100 NIL NIL 4,100 Year Ended 31 Mar 2010* Nil Nil Nil Nil Nil Nil
*The number of SARs have been adjusted for split of the underlying equity shares from ` 10 paid up to ` 5 paid up per share.
16
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Reports
Effect of grant of SARs to employees on the profit and loss account and on its financial position Year ended 31st March Total Employee Compensation Cost pertaining to share-based payment plans Closing balance of liability for cash-settled options 7. Sundry Debtors represents management and advisory fees (net) and include amounts: Due from companies under same management: Kotak Mahindra (UK) Limited Maximum balance outstanding during the year Kotak Mahindra (International) Limited Maximum balance outstanding during the year 8. : : : : ` 2,000,000 (Previous year ` 2,799,198) ` 4,933,352 (Previous year ` 10,645,848) ` 6,978,500 (Previous year ` 4,973,674) ` 18,808,629 (Previous year ` 8,972,090) 2011 3,149,318 1,110,430
(`) 2010 NIL NIL
Advances recoverable in cash or in kind include amounts due from companies under same management as under: Kotak Mahindra (UK) Limited Maximum balance outstanding during the year Kotak Mahindra Capital Company Limited Maximum balance outstanding during the year : : : : ` NIL (Previous year ` NIL) ` NIL (Previous year ` 184,030) ` NIL (Previous year ` NIL) ` NIL (Previous year ` 184,917)
9.
Assets taken on lease i. ii. iii. The Company has taken residential premises under leave and license agreements. These are generally renewable or cancelable at the option of the Company and range between 11 months to 36 months. Lease payments recognized in the Profit and Loss Account for the year is ` Nil (Previous year ` 16,609,800). The future minimum lease payments under non-cancelable operating lease not later than one year as at 31st March, 2011 aggregate to ` 1,198,000 (Previous year ` 2,022,000) and those for period between one to five years aggregate to ` Nil (Previous year ` 1,198,000).
10.
The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been given. (a) (b) The Company has provided for liability towards compensated absence and leave encashment on the basis of an actuarial valuation. (i) (ii) The Accounting Standard 15 (AS-15) (Revised 2005) on Employee Benefits issued by the Institute of Chartered Accountants of India had been adopted by the Company with effect from April 1, 2006. The Company has classified the various benefits provided to employees as under:
11.
Defined Contribution Plan - Provident Fund During the year, the Company has recognised the following amounts in the Profit and Loss Account: Employers Contribution to Provident Fund Superannuation Fund ` 11,824,214* (Previous year ` 10,365,178) ` 200,000 (Previous year ` 200,000)
* Included in Contribution to provident and other funds (Refer Schedule 12) Defined Benefit Plan - Contribution to Gratuity Fund In accordance with Accounting Standard 15 (Revised 2005), actuarial valuation was done in respect of the aforesaid defined benefit plan of gratuity based on the following assumptions: Particulars Discount rate (per annum) Rate of increase in compensation levels Rate of return on plan assets Expected average remaining working lives of employees Assumptions in 31st March 2011 8.26% p.a. 15% for first two years, 10% for next 2 years & 6% thereafter Not applicable The employees are assumed to retire at the age of 58 years Assumptions in 31st March 2010 8.01% p.a. 15% for first year, 10% for next 2 years & 6% thereafter Not applicable The employees are assumed to retire at the age of 58 years Its grt 2b 25
17
Changes in the Present Value of Obligation 2010-11 Present value of obligation as at April 1, 2010 / 2009 Interest cost Past service cost Current service cost Curtailment cost Settlement cost Exchange Difference on Foreign Plans Actuarial (gain) / loss on obligations Liabilities assumed on acquisition / (settled on divestiture) Benefits Paid Present value of obligation as at March 31, 2011 / 2010 Amount recognized in the Balance Sheet 2010-11 Present value of obligation as at March 31, 2011 / 2010 Fair value of plan assets as at March 31, 2011 / 2010 Liability recognized in the Balance Sheet ** Included in Provisions Gratuity (Refer Schedule 10) Expenses / (write backs) recognized in the Profit and Loss Account 2010-11 Current service cost Past service cost Interest cost Net actuarial (gain) / loss recognized during the year Total expense / (write backs) recognized in the Profit and Loss Account * Included in Personnel - Gratuity and leave encashment (Refer Schedule 12) Experience Adjustment: Gratuity Defined benefit obligation Plan assets Surplus / (deficit) Experience adjustments on plan liabilities Experience adjustments on plan assets 2010-11 9,624,064 NIL (9,624,064) 180,070 NIL 2009-10 4,288,228 NIL (4,288,228) (542,882) NIL 2008-09 4,106,851 NIL (4,106,851) (327,551) NIL 2007-08 2,736,281 NIL (2,736,281) (1,365,043) NIL 617,822 4,830,553 367,323 181,248 5,996,946* 9,624,064 Nil 9,624,064** 4,288,228 367,323 4,830,553 617,822 NIL NIL NIL 181,248 NIL (661,110) 9,624,064
(`) 2009-10 4,106,851 324,608 NIL 719,897 NIL NIL NIL (685,899) 433,046 (610,275) 4,288,228 ` 2009-10 4,288,228 Nil 4,288,228
` 2009-10 719,897 NIL 324,608 (685,899) 358,606
2006-07 16,098 NIL (16,098) 14,940 NIL
18
Its grt 2b 25
Reports
12.
Related parties disclosures (i) Relationships (During the year) Related parties where control exists: Nature of relationship Holding Company Related Party Kotak Mahindra Bank Limited (holds 51% of the equity share capital) Effective October 15, 2007, Uday S. Kotak along with relatives and entities controlled by him ceased to hold more than 50% of the equity share capital of Kotak Mahindra Bank Limited. Uday S. Kotak along with relatives and entities controlled by him holds 45.56% of the equity share capital of Kotak Mahindra Bank Limited as on March 31, 2011. Kotak Mahindra Capital Company Limited (KMCC) (holds 49% of the equity share capital) Other Related parties: (i) Fellow Subsidiaries Kotak Mahindra Capital Company Limited Kotak Securities Limited Kotak Mahindra Asset Management Company Ltd. Kotak Mahindra Prime Limited Kotak Mahindra Investments Limited Kotak Mahindra (International) Limited Kotak Mahindra (UK) Limited (ii) Funds managed by the Company Kotak SEAF India Fund Kotak India Venture Fund I Kotak India Growth Fund II Kotak Mahindra Realty Fund Kotak Alternate Opportunities (India) Fund Kotak Employees Investment Trust (iii) Mutual Fund managed by the fellow Subsidiaries (iv) Key management personnel Kotak Mahindra Mutual Fund Managed by Kotak Mahindra Asset Management Company Limited Mr. Nitin Deshmukh, Whole-time Director Mr. Sriniwasan Subramanian, Whole-time Director Mr. C. Jayaram, Director Mr. Jaimin Bhatt, Director Ms. Falguni Nayar, Director Ms. Shanti Ekambaram, Director
Its grt 2b 25
19
(ii) The following transactions were carried out with related parties in the ordinary course of business Kotak Securities Limited Kotak Mahindra Prime Limited Kotak Mahindra (UK) Limited Kotak Mahindra Mutual Fund Kotak Life Total
20
` `
Kotak Mahindra Investments Limited `
Holding Company
Kotak Mahindra Kotak Mahindra (International) Capital Company Limited Limited ` `
Kotak Mahindra Asset Management Company `
Finance Interest paid
Inter corporate deposits taken
Inter corporate deposits repaid
Fixed deposit placed
Fixed deposit withdrawn
Interest received
1,300,000,000 (111,800,000) 1,300,000,000 (371,800,000) 6,343,616 (31,603,094)
48,943,153 (21,976,370)
7,790,404
6,513,699 500,000,000 500,000,000
6,513,699 500,000,000 500,000,000 1,300,000,000 (111,800,000) 1,300,000,000 (371,800,000) 63,077,173 (53,579,464)
Outstanding Bank balance Fixed deposit account 33,278,085 (6,704,110)
Current account
78,323,006 (653,394,594)
78,323,006 (653,394,594) 33,278,085 (6,704,110)

(1,524,640) (134,294) 364,327 (370,632) 256,440,904 750,000,000 (100,000,000) 150,000,000 (50,000,000) 250,000,000 250,000,000 (2,973,892) 250,000,000 1,142,688,581 (1,937,727,579) 1,147,089,395 (1,947,229,305) 254,169,657 2,142,688,581 (2,040,701,471) 1,297,089,395 (2,247,229,305) 1,010,610,561 364,327 (1,710,532) (1,524,640) 917,496 (596,250) 298 (120,737) (25,735,351) 187,619 309,867 (124,731) 72,255,198 (79,164,265) 79,795,724 (63,920,491) 6,978,500 (4,973,674) 2,652,988 8,700 (446) (251,840) 25,575,475 (35,001,650) 2,000,000 (2,799,198) 4,688,581 (6,527,579) 2,652,988 4,688,581 (6,527,579) 105,371,199 (98,922,141) 8,978,500 (7,772,872) 6,596,164 (1,781,501)
Interest accrued on fixed deposits / interest accrued on debenture
Investments Purchase / subscription
Sale / redemption
Tranferred / Sale Other Receipts and Payments Purchase of Fixed Assets
(250,000,000)
(1,205,606)
Reimbursement of expenses from other companies
Service / other expenses / Reimbursement of expenses paid / payable to other Companies
70,839,918 (52,587,196)
Brokerage Paid / Payable on Purchase & Sale of Securities
Dividend Received
Management and Advisory Fees
Receivables
Payables
6,587,464 (1,529,215)
(ii) The following transactions were carried out with related parties in the ordinary course of business Funds managed by the Company Kotak SEAF India Fund Kotak India Venture Fund I Kotak India Growth Fund II Kotak Mahindra Realty Fund Kotak Employees Investment Trust Total
Its grt 2b 25
Kotak Alternate Opportunities (India) Fund `
Finance Interest paid
Inter corporate deposits taken
Inter corporate deposits repaid
Fixed deposit placed
Fixed deposit withdrawn
Interest received
Outstanding Bank balance Fixed deposit account
Current account
Schedules
Interest accrued on fixed deposits / interest accrued on debenture
Investments Purchase / subscription 48,000,000 (52,000,000)
Sale / redemption
Tranferred / Sale Other Receipts and Payments Purchase of Fixed Assets
48,000,000 (52,000,000)
Reimbursement of expenses from other companies
Service / other expenses / Reimbursement of expenses paid / payable to other Companies
Brokerage Paid / Payable on Purchase & Sale of Securities
Dividend Received
Reports
Management and Advisory Fees
Receivables
Payables
1,116 (49,737) 166,665,398 (176,758,282)
367,860 (6,280) 50,382,000 (50,382,000) 148,905
615,891 (1,609,352) 185,519,408 (206,894,333) 899,935
1,458 (164,084) 87,667,278 (91,400,000)
79,722 (7,713,647) 260,619,405 (299,994,000) 84,876
650,000 (650,000)
1,066,047 (9,543,100) 751,503,489 (826,078,615) 1,133,716
Its grt 2b 25
Remuneration to key management personnel* Nitin Deshmukh
S. Sriniwasan
21,895,766 (20,161,326) 26,115,860 (23,322,983)
21
Figures in brackets relates to the previous year. * The above excludes current year incentive and provision for gratuity.
13.
(Income) / Expenditure in foreign currency 31st March 2011 (`) ` Travel, Conveyance and car hire Advisory fees Membership and subscription Advisory Fees 122,575 10,220,233 324,414 (104,383,024) 31st March 2010 (`) 134,263 12,093,252 NIL (9,101,220)
14.
Managerial Remuneration Particulars Salaries and Incentives # Contribution to Provident and Other Funds Employee Stock Option Plan (Refer Note 6) Total # The above excludes incentive for current year and provision for gratuity. Computation of net profit in accordance with Section 309(5) of the Companies Act, 1956 has not been made as no commission is payable to the Directors. 2010-2011 ` in Lakhs 443.80 21.23 15.09 480.12 2009-2010 ` in Lakhs 376.25 19.44 39.16 434.85
15.
Details of Units purchased and redeemed during the year Particulars Kotak Floater Long Term Scheme - Growth Kotak Floater Long Term Scheme - Daily Dividend Details of Shares / Futures purchased and sold during the year Particulars Allied Digital Services Limited Amara Raja Batteries Limited Andhra Bank Limited Apollo Tyres Limited Asian Paints Limited Axis Bank Limited Bajaj Finance Limited BGR Energy Systems Limited Bharat Heavy Electricals Limited Bombay Rayon Fashions Limited Chambal Fertilizers & Chemicals Limited Corporation Bank Limited Educomp Solutions Limited Electrosteel Castings Limited Eros International Media Limited Escorts Limited Purchased 35,000 105,410 50,000 175,000 9,000 45,000 11,589 79,000 35,000 100,000 100,000 17,000 10,000 200,000 61,120 95,479 Redeemed/ Sold 35,000 105,410 50,000 175,000 9,000 45,000 11,589 79,000 35,000 100,000 100,000 17,000 10,000 200,000 61,120 95,479 Purchased 22,645,479.196 79,137,342.122 Redeemed/ Sold 22,645,479.196 79,137,342.122
22
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Reports
Particulars GAIL (India) Limited Gujarat Alkalies & Chemicals Limited Gujarat NRE Coke Limited HDFC Bank Limited Hexaware Technologies Limited Hindustan Construction Company Limited ICICI Bank Limited India Infoline Limited Infosys Technologies Limited Infrastructure Development Finance Company Limited IRB Infrastructure Developers Limited IVRCL Limited Jammu and Kashmir Bank Limited Jubilant Foodworks Limited Karnataka Bank Limited Larsen & Toubro Limited LIC Housing Finance Limited Mahindra & Mahindra Limited Manappuram General Finance & Leasing Limited Onmobile Global Limited Persistent Systems Limited Piramal Healthcare Limited Reliance Industries Limited Shriram Transport Finance Company Limited Sintex Industries Limited SKS Microfinance Limited State Bank Of India Sterlite Technologies Limited Syndicate Bank Limited Tata Consultancy Services Limited Tata Motors Limited Tata Steel Limited Tecpro Systems Limited Titagarh Wagons Limited Torrent Pharmaceuticals Limited Va Tech Wabag Limited Welspun Corp Limited Tata Steel Limited ( Futures)
Purchased 10,000 93,867 150,000 15,795 50,000 200,000 30,000 377,207 7,000 95,000 210,000 45,000 20,000 18,197 50,000 29,400 15,000 10,000 75,000 108,021 18,241 26,450 32,000 32,097 50,000 40,000 9,000 300,000 100,000 25,000 49,000 25,000 15,000 20,000 11,454 10,000 91,039 190,500
Redeemed/ Sold 10,000 93,867 150,000 15,795 50,000 200,000 30,000 377,207 7,000 95,000 210,000 45,000 20,000 18,197 50,000 29,400 15,000 10,000 75,000 108,021 18,241 26,450 32,000 32,097 50,000 40,000 9,000 300,000 100,000 25,000 49,000 25,000 15,000 20,000 11,454 10,000 91,039 190,500
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23
16.
Segmental Information The Company operations predominantly relate to providing investment management / advisory services to private equity / venture capital and realty funds. As the Company is engaged only in one business segment and there are no geographical segments, the segmental reporting disclosure as required by Accounting Standard 17 on Segment Reporting issued by the Institute of Chartered Accountants of India has not been made.
17.
Earnings Per Share (EPS) The numerators and denominators used to calculate Basic and Diluted Earnings Per Share: 31st March 2011 Profit attributable to equity shareholders (`) Weighted / Basic number of equity Shares outstanding during the year Earnings per share (basic and diluted) (`) Nominal value of equity shares (`) 71.24 10.00 86.57 10.00 327,140,970 4,592,000 31st March 2010 397,514,685 4,592,000
18. 19.
Information with regard to other matters specified in paragraphs 4A, 4C and 4D of Part II of Schedule VI to the Companies Act 1956 is not applicable to the Company for the financial year ended 31st March 2011. Previous years figures have been regrouped / rearranged, wherever considered necessary.
Signatures to Schedules 1 to 14 forms part of the financial statements and to the above notes.
For Price Waterhouse Firms Registration Number: 301112E Chartered Accountants Vivek Prasad Partner Membership No. F-104941 Mumbai Date: 26th April 2011
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Reports
BALANCE SHEET ABSTRACT AND COMPANY'S GENERAL BUSINESS PROFILE
Registration Details Registration No. Balance Sheet Date U 6 5 9 9 0 M H 3 1 1 9 9 0 3 4 P L L 0 1 7 7 4 7 2 State Code 1 1
2 0 1
Position of mobilisation and deployment of funds: (Amount in ` Thousand) Total Liabilities 8 3 0 6 7 Source of Funds (Amount in ` Thousand) Paid-up Capital 4 5 9 2 0 Secured Loans N Deferred Tax Liability N I L I L Reserves and Surplus 1 5 1 4 8 5 3 Unsecured Loans N I L Total Assets 1 6 4 3 8 4 0
Application of Funds (Amount in ` Thousand) Net Fixed Assets 1 0 8 5 1 Deferred Tax Asset 1 0 8 5 3 Miscellaneous Expenditure N I L Investments 1 4 5 4 3 9 3 Net Current Assets 8 4 6 7 6 Accumulated Losses N I L
Performance of Company: (Amount in ` Thousand) Turnover / Income 9 6 0 9 8 2 Profit/(Loss) before Tax 4 9 2 2 2 4 Earnings per Share (in `) 7 1 . 2 4 Total Expenditure 4 6 8 7 5 8
Profit/(Loss) after Tax 3 2 7 1 4 1 Dividend Rate (%) N I L
Generic names of three principal products, services of the Company (As per monetary terms): Item Code No. (ITC Code) Product Description N A I N V E S T M E N T M A N A G E M E N T A N D A D V I S O R Y S E R V I C E S
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25
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KOTAK MAHINDRA TRUSTEESHIP SERVICES LIMITED
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BOARD OF DIRECTORS: MR. K. M. GHERDA (C), MR. CHANDRASHEKHAR SATHE, MR. SHIVAJI DAM, MR. TUSHAR MAVANI, MR. CHETAN DESAI
Directors Report
To the Members of KOTAK MAHINDRA TRUSTEESHIP SERVICES LIMITED The Directors have pleasure in presenting their Eleventh Annual Report together with the audited accounts of the Company for the year ended March 31, 2011. FINANCIAL RESULTS For the year ended 31st March 2011 ( `) Gross Income Profit before Tax Provision for Tax Net Profit after Tax carried to Balance Sheet DIVIDEND The Directors do not recommend any dividend for the year ended on March 31, 2011. OPERATIONS The Company acts as trustee to five domestic venture capital / private equity and realty funds operating in the alternate assets domain. The aggregate commitment as on March 31, 2011, across five domestic funds where the Company acts as trustee, is ~ ` 3,427 crores. During the year ended March 31, 2011, certain funds for which the Company acts as Trustee exited from few portfolio investments aggregating to a total consideration of ~ ` 739.59 (aggregate cost of investments ~ ` 302.10 cr) and made distributions to the investors. The Company's business of Estate Planning Services, in which the Company assists in setting up private family trust for high net worth individuals to achieve their succession and financial planning has also seen a growth in the year ended March 31, 2011. The Company has, till date been appointed as trustees to 21 such private trusts and is acting as an Executor and Trustee for 5 wills. Total income for the Company for the current year was ` 1.38 crores. The profit before tax of the Company for the year ended March 31, 2011 was ` 1.09 crores as compared to ` 0.96 crores for the previous year. The profit after tax for year ended March 31, 2011 was ` 0.73 crores as against ` 0.65 crores during the previous year. The earning per share of the Company was ` 145.75 per share for the year ended March 31, 2011 as compared to ` 131.24 per share during the previous year. DIRECTORS Mr. Chandrashekhar Sathe and Mr. Tushar Mavani, retire by rotation at the ensuing Annual General Meeting and, being eligible, offer themselves for re-appointment. Mr. Chetan Desai was appointed as Additional Director w.e.f. April 21, 2011 and he would hold office till the ensuing Annual General Meeting. The Company had received a notice in writing from a member proposing the candidature of Mr. Chetan Desai for the office of Director. Mr. Vikram Sud has resigned from the Board of Directors of the Company, w.e.f. March 01, 2011. Directors place on record the invaluable contribution of Mr. Vikram Sud to the Company during his tenure as Director. AUDITORS Messers Deloitte Haskins & Sells, Chartered Accountants, Mumbai, ("Deloitte - Mumbai"), Statutory Auditors of the Company are due for retirement at the ensuing Annual General Meeting ("AGM") and have expressed their unwillingness to continue as Statutory Auditors of the Company for the year 2011-2012. Messers Deloitte Haskins & Sells, Chartered Accountants, Baroda, ("Deloitte - Baroda"), vide their letter dated April 19, 2011, have confirmed that their appointment, if made, would be in accordance with the provisions of section 224 (1B) of the Companies Act, 1956. STATUTORY INFORMATION The Company did not have any employee during the year nor did it accept any deposits during the year. It had no foreign exchange earnings or out go. The other particulars prescribed under the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 are not applicable since the Company is not a manufacturing company. 13,839,612 10,968,624 3,681,257 7,287,367 For the year ended 31st March 2010 (`) 1,19,23,103 96,34,074 30,72,000 65,62,074
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DIRECTORS' RESPONSIBILITY STATEMENT Based on the representations of the operational management of Kotak Investment Advisors Limited, who is entrusted with the maintenance of the books of accounts of the Company, the Directors confirm that in pursuance of Section 217 (2AA) of the Companies Act, 1956: a. b. the Company has, in the preparation of the annual accounts for the year ended March 31, 2011, followed the applicable accounting standards along with proper explanations relating to material departures, if any; they have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2011 and of the profit of the Company for the financial year ended March 31, 2011; they have taken proper and sufficient care to the best of their knowledge and ability, for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and the annual accounts have been prepared on a going concern basis.
c.
d.
ACKNOWLEDGEMENTS We thank our Members, Investors of Funds for which the Company acts as trustee and Bankers for their continued support during the year.
21st April 2011 Mumbai
K. M. Gherda Chairman
Kotak Mahindra Trusteeship Services Limited Annual Report 2010-11
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Reports
Auditors Report
TO THE MEMBERS OF KOTAK MAHINDRA TRUSTEESHIP SERVICES LIMITED 1. We have audited the attached Balance Sheet of KOTAK MAHINDRA TRUSTEESHIP SERVICES LIMITED (the Company) as at 31st March, 2011, the Profit and Loss Account and the Cash Flow Statement of the Company for the year ended on that date, both annexed thereto. These financial statements are the responsibility of the Companys Management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and the disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As required by the Companies (Auditors Report) Order, 2003 (CARO) issued by the Central Government in terms of Section 227(4A) of the Companies Act, 1956, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. Further to our comments in the Annexure referred to in paragraph 4 above, we report that: (i) (ii) (iii) (iv) (v) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit; in our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books; the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt with by this report are in agreement with the books of account; in our opinion, the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt with by this report are in compliance with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956; in our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: (a) (b) (c) 5. in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2011; in the case of the Profit and Loss Account, of the profit of the Company for the year ended on that date and in the case of the Cash Flow Statement, of the cash flows of the Company for the year ended on that date.
2.
3. 4.
On the basis of the written representations received from the Directors as on 31st March, 2011 taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March, 2011 from being appointed as a director in terms of Section 274(1)(g) of the Companies Act, 1956.
For DELOITTE HASKINS & SELLS Chartered Accountants (Registration No.117366W)
R. Laxminarayan Partner (Membership No.33023) Mumbai 21st April 2011
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(Referred to in paragraph 3 of our report of even date) (i) (ii) Having regard to the nature of the Company's business / activities / result, clauses (i), (ii), (viii), (xi), (xii), (xiii), (xiv), (xv), (xvi) and (xix) of CARO are not applicable. The Company has neither granted nor taken any loans, secured or unsecured, to / from companies, firms or other parties listed in the Register maintained under Section 301 of the Companies Act, 1956. In view of what has been stated above, clauses (b), (c), (d), (e), (f) and (g) of clause (iii) of paragraph 4 of the Order are not applicable to the company for the year. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to sale of services. During the course of our audit, we have not observed any major weakness in such internal control system. In respect of contracts or arrangements entered in the Register maintained in pursuance of Section 301 of the Companies Act, 1956, to the best of our knowledge and belief and according to the information and explanations given to us: (a) (b) The particulars of contracts or arrangements referred to Section 301 that needed to be entered in the Register maintained under the said Section have been so entered. Where each of such transaction is in excess of ` 5 lakhs in respect of any party, the transactions have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time except in respect of certain purchases for which comparable quotations are not available and in respect of which we are unable to comment.
(iii)
(iv)
(v) (vi) (vii)
According to the information and explanations given to us, the Company has not accepted any deposit from the public during the year. In our opinion, the internal audit function carried out during the year by a firm of Chartered Accountants appointed by the Management is commensurate with the size of the Company and the nature of its business. According to the information and explanations given to us in respect of statutory dues: (a) The Company has generally been regular in depositing undisputed dues, including Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it with the appropriate authorities. There were no undisputed amounts payable in respect of Income-tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other material statutory dues in arrears as at 31st March, 2011 for a period of more than six months from the date they became payable. There are no dues of Income Tax, Wealth Tax, Service Tax, and Cess which have not been deposited on account of any dispute. We have been informed that the provision of Sales Tax, Custom Tax and Excise duty are not applicable to the company for the year.
(b)
(c)
(viii) The company has no accumulated losses as at 31st March 2011 and has not incurred any cash loss during the financial year ended on that date and in the immediately preceding financial year. (ix) According to the information and explanations given to us and on an overall examination of the Balance Sheet and other records of the company, we report that no funds have been raised on short term basis and hence the reporting requirement under clause (xvii) of Paragraph 4 of the order is not applicable to the company. The company has not made any preferential allotment of shares during the year to parties and companies covered in the Register maintained under section 301 of the Companies Act, 1956. The company has not raised any money by public issues during the year. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no fraud on the Company has been noticed or reported during the year.
(x) (xi) (xii)
For DELOITTE HASKINS & SELLS Chartered Accountants (Registration No.117366W) R. Laxminarayan Partner Membership No. 33023 Mumbai 21st April 2011
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Reports

Schedule I. Sources of Funds Shareholders Funds Share Capital Reserves & Surplus Total II. Application of Funds Current Assets, Loans And Advances Sundry Debtors Cash And Bank Balances Other Current Assets Loans And Advances 3 4 5 6 1,981,058 27,308,372 364,267 43,824 29,697,521 Less : Current Liabilities And Provisions Current Liabilities Provisions 7 8 573,188 514,379 1,087,567 Net Current Assets Total Significant Accounting Policies and Notes on Accounts 9 28,609,954 28,609,954 495,604 597,073 1,092,677 21,322,587 21,322,587 1,441,219 20,913,814 5,185 55,046 22,415,264 1 2 500,000 28,109,954 28,609,954 500,000 20,822,587 21,322,587 As at 31st March 2011 ` As at 31st March 2010 `
In terms of our report attached For Deloitte Haskins & Sells Chartered Accountants R. Laxminarayan Partner Mumbai Dated: 21st April 2011
Shivaji Dam Director
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Profit and Loss Account for the Year ended 31st March 2011
Schedule Income Trusteeship Fees (TDS ` 772,108; Previous Year ` 827,802) Dividend Income on Mutual Fund-Current investments, Non trade Interest Earned on Deposits with banks (TDS ` 128,983; Previous Year ` 42,748) 13,839,612 Expenditure Sharing of Common Expenses Auditors Remuneration Audit Fees Service Tax on Above Services Service Tax Input Credit 125,000 12,875 (12,875) 125,000 Directors Sitting Fees Professional Fees Bad Debts written off Miscellaneous Expenses Total Profit Before Tax Provision For Tax - Current Tax Taxes Paid - Previous Years Profit After Tax Surplus Brought Forward From Previous Year Surplus Carried To Balance Sheet Basic And Diluted Earnings Per Share (Face Value of ` 10/-) (Refer Note B (V) of Schedule 9) Significant Accounting Policies and Notes on Accounts 9 110,000 582,356 200,000 33,131 2,870,988 10,968,624 3,650,000 31,257 7,287,367 20,822,587 28,109,954 145.75 125,000 12,875 (12,875) 125,000 150,000 457,486 38,543 2,289,029 9,634,074 3,072,000 6,562,074 14,260,513 20,822,587 131.24 1,820,501 1,518,000 11,923,103 137,432 1,289,820 573,965 214,377 12,412,360 11,134,761 31st March 2011 ` 31st March 2010 `
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Reports
Cash Flow Statement for the year ended 31st March, 2011
2010-11 ` Cash Flow From Operating Activities Net Profit After Taxes Adjustment For : Dividend Income from Mutual Funds Income Tax Expense Operating Profit Before Working Capital Changes Adjustments For : Increase / ( Decrease) In Current Liabilities (Increase) / Decrease in Other Current Assets (Increase) / Decrease in Sundry Debtors (Increase) / Decrease In Loans & Advances Cash Generated From Operating Activities Income Taxes Paid (Net of Refund) Net Cash From Operating Activities Cash Flow From Investing Activities Dividend Income from Mutual Funds Purchase of Investment Sale of Investment Net Cash From / (Used In) Investment Activities Net Cash Flow From Financing Activities Net Increase In Cash & Cash Equivalents Cash & Cash Equivalents at the beginning of the year Cash & Cash Equivalents at the end of the year Notes : 1. Cash and cash equivalent include : Cash on hand Fixed Deposits with Banks Bank balances Total cash and cash equivalents 2. 3. 26,848,341 460,031 27,308,372 591 1,300,000 19,613,223 20,913,814 (B) (C) (A + B + C) 137,432 (22,137,432) 22,137,432 137,432 NIL 6,394,558 20,913,814 27,308,372 573,965 (36,873,965) 36,873,965 573,965 NIL 6,624,144 14,289,670 20,913,814 (A) 77,584 (359,082) (539,839) 11,222 10,021,077 (3,763,951) 6,257,126 101,245 392,500 (803,730) 56,687 8,806,810 (2,756,631) 6,050,179 (137,432) 3,681,257 10,831,192 (573,965) 3,072,000 9,060,108 7,287,367 6,562,073 2009-10 `
The Cash Flow statement has been prepared under the 'Indirect Method' as set out in the Accounting Standard - 3 on Cash Flow Statement issued by the Institute of Chartered Accountants of India. The corresponding amounts of previous year have been re-grouped, wherever necessary.
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As at 31st March 2011 ` Schedule 1 - Share Capital Authorised 50,000 Equity Shares of Rs 10/- Each Issued and Subscribed 50,000 Equity Shares of Rs 10/- Each, Fully Paid Up (All the above shares are held by Kotak Mahindra Bank Limited, the Holding Company and its Nominees) Total Schedule 2 - Reserves And Surplus Balance In Profit And Loss Account Total Schedule 3 - Sundry Debtors (Unsecured, Considered Good) Debts Outstanding For Less Than Six Months Total Schedule 4 - Cash And Bank Balances Cash in hand Balance With Scheduled Bank In Current Accounts In Deposit Accounts Total Schedule 5 - Other Current Assets Interest accrued on Fixed Deposits As at 31st March 2010 `
500,000 500,000
500,000 500,000
500,000
500,000
28,109,954 28,109,954
20,822,587 20,822,587
1,981,058 1,981,058
1,441,219 1,441,219
460,031 26,848,341 27,308,372
591 19,613,223 1,300,000 20,913,814
364,267 364,267
5,185 5,185
Schedule 6 - Loans And Advances (Unsecured, Considered Good) Refund Receivable Other Receivables Service Tax Input Credit Total Schedule 7 - Current Liabilities Sundry Creditors (Other Than Micro, Small & Medium Enterprises) Other Liabilities Total Schedule 8 - Provisions Provision For Taxation (Net of Advance Tax `12,592,878 Previous Year ` 8,828,927) Total
12,346 31,478 43,824
12,346 10,000 32,700 55,046
188,613 384,575 573,188
188,100 307,504 495,604
514,379 514,379
597,073 597,073
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Reports
SCHEDULE 9: SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH, 2011
A. Significant Accounting Policies i) Basis of Accounting The Financial Statements have been prepared on historical cost basis of accounting. The Company adopts the accrual system of accounting and the financial statements conform with the Accounting Standards notified under the Companies (Accounting Standard) Rules, 2006, the generally accepted accounting principles prevailing in India and the relevant provisions of the Companies Act, 1956. The preparation of financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as on the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Actual results could differ from these estimates. Revenue Recognition Revenue is recognized when no significant uncertainty as to measurability or collectability exists. Investments Investments are classified into long term investments and current investments. Investments, which are intended to be held for more than one year, are classified as long term investments and investments, which are intended to be held for less than one year, are classified as current investments. Long term investments are accounted at cost and any decline in value, other than temporary is provided for. Current investments are valued at cost calculated by applying weighted average cost method or market / fair value whichever is lower. Brokerage, stamping and additional charges paid are included in the cost of investments. Taxes on Income The Income Tax expense comprises Current tax and deferred tax. Current tax is measured at the amount expected to be paid in respect of taxable income for the year in accordance with the Income tax Act, 1961. Deferred tax adjustments comprises of changes in the deferred tax assets and liabilities. Deferred tax assets and liabilities are recognised for the future tax consequences of timing differences being the difference between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantially enacted before the balance sheet date. Changes in deferred tax assets / liabilities on account of changes in enacted tax rates are given effect to in the Profit and Loss Account in the period of the change. The carrying amount of deferred tax assets are reviewed at each balance sheet date. The Company writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Provisions, Contingent Liabilities and Contingent Assets Provision is recognised when there is a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.
ii) iii)
iv)
v)
B.
Notes To Accounts i) The corresponding amounts of previous year have been re-grouped, wherever necessary. ii) Segment Reporting The segmental reporting disclosure as required by Accounting Standard (AS) - 17 on Segment Reporting, issued by The Institute of Chartered Accountants of India has not been made, since the Company has a single reportable business segment of providing services in the capacity of trustee to private equity / venture capital funds and estate planning services. iii) Related Party Disclosure : Parties where control exists: Holding Company Kotak Mahindra Bank Limited holds 100 % of the share capital along with its nominees. Uday S. Kotak along with his relatives and entities controlled by him holds 45.56% of the equity share capital of Kotak Mahindra Bank Limited as on March 31, 2011 Kotak Mahindra Mutual Fund (managed by Kotak Mahindra Asset Management Company Limited) Kotak SEAF India Fund Kotak Mahindra Realty Fund Kotak Alternate Opportunities (India) Fund Kotak India Venture Fund I Kotak India Growth Fund II Its grt 2b 25
Mutual Fund Managed by Fellow Subsidiary Enterprise where the Company is the trustee
The following transactions were carried out with related parties in the ordinary course of the business: Amount in ` Nature of Transaction Holding Company Enterprise where the Company is a Trustee Mutual Fund Managed by Fellow Subsidiary
I)
Income Interest on Fixed Deposits 1,289,820 (214,376) 137,432 (573,965)
Income from Mutual Funds
II)
Income : Trustee Fees Kotak SEAF India Fund 1,500,000 (1,500,000) 1,500,000 (1,500,000) 1,500,000 (1,500,000) 1,000,000 (1,000,000) 1,500,000 (1,500,000)
Kotak Mahindra Realty Fund
Kotak Alternate Opportunities (India) Fund Kotak India Venture Fund I
Kotak India Growth Fund II
III)
Expenses : Sharing of Common Expenses 1,820,501 (1,518,000)
IV)
Investments Deposits with Kotak Mahindra Bank 29,848,341 (18,100,000) 4,300,000 (30,900,000) 22,137,432 (36,873,965) 22,137,432 (36,873,965)
Deposits Matured during the year
Purchase of Mutual Fund Investments
Sale of Mutual Fund Investments
V)
Receivables: Fixed Deposits 26,848,341 ( 1,300,000)
(Figures in brackets represent previous years figures)
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iv)
During the year the Company has purchased and sold the following investments held as current investments: Current Year Nature of Investment Units of Kotak Mahindra Mutual Fund: Kotak Floater Long Term - Daily Dividend Face Value 10 No. of units 2,196,217 Amount (`) ` 22,137,432 Previous Year No. of units 3,658,204 Amount (`) ` 36,873,965
v)
Earnings Per Share (EPS) The numerators and denominators used to calculate Basic and Diluted Earnings Per Share Ref Profit attributable to the Equity Shareholders (`) Weighted Average number of Equity Shares outstanding during the year Nominal Value of Equity Share (`) Basic and Diluted Earnings Per Share (`) A B C D =(A) / (B) For the year ended March 31, 2011 7,287,367 50,000 10 145.75 For the year ended March 31, 2010 6,562,074 50,000 10 131.24
vi)
The Company has requested its suppliers to confirm the status as to whether they are covered under the Micro, Small and Medium Enterprises Development Act 2006. In the absence of confirmations from the suppliers, disclosures, if any, relating to unpaid as at the year end together with interest paid / payable as required under the said Act have not been given. The Company has not entered into any derivative instrument during the year. The Company does not have any foreign currency exposures towards receivables, payables or any other derivative instrument that have not been hedged. As per the best estimate of the management, no provision is required to be made as per AS - 29 Provisions, Contingent Liabilities and Contingent Assets, in respect of any present obligation as a result of a past event that could lead to a probable outflow of resources, which would be required to settle the obligation.
vii) viii)
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11
VI) BALANCE SHEET ABSTRACT AND COMPANY'S GENERAL BUSINESS PROFILE
I.
REGISTRATION DETAILS REGISTRATION NO. BALANCE SHEET DATE 3 1 1 2 5 0 0 8 0 3 2 0 1 1 STATE CODE 1 1
II.
CAPITAL RAISED DURING THE YEAR: (AMOUNT IN ` THOUSAND) PUBLIC ISSUE N BONUS ISSUE N I L I L
RIGHTS ISSUE N PRIVATE PLACEMENT N I L I L
III.
POSITION OF MOBILISATION AND DEPLOYMENT OF FUNDS: (AMOUNT IN ` THOUSAND) TOTAL LIABILITIES 2 8 6 1 0 SOURCE OF FUNDS PAID-UP CAPITAL 5 0 0 SECURED LOANS N APPLICATION OF FUNDS NET FIXED ASSETS N NET CURRENT ASSETS 2 8 6 1 0 ACCUMULATED LOSSES N I L I L INVESTMENTS N I L I L RESERVES AND SURPLUS 2 8 1 1 0 UNSECURED LOANS N I L TOTAL ASSETS 2 8 6 1 0
MISCELLANEOUS EXPENDITURE N I L
IV.
PERFORMANCE OF COMPANY: (AMOUNT IN ` THOUSAND) TURNOVER 1 3 8 4 0 PROFIT/(LOSS) BEFORE TAX + 1 0 9 6 9 TOTAL EXPENDITURE 2 8 7 1
PROFIT/(LOSS) AFTER TAX + 7 2 8 7 DIVIDEND RATE (%) N I L
EARNINGS PER SHARE (IN `) 1 4 5 V. . 7 5
GENERIC NAMES OF THREE PRINCIPAL PRODUCTS, SERVICES OF THE COMPANY (AS PER MONETARY TERMS): ITEM CODE NO. (ITC CODE) PRODUCT DESCRIPTION N A T R U S T E E S H I P S E R V I C E S
SIGNATURES TO SCHEDULES 1 TO 9 For and on behalf of the Board of Directors
Mumbai Dated: 21st April, 2011
K. M. GHERDA Chairman
SHIVAJI DAM Director
12
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KOTAK FOREX BROKERAGE LIMITED
Its grt 2b 25
BOARD OF DIRECTORS : MR. UDAY KOTAK, MR. DIPAK GUPTA, MR. CHANDRASHEKHAR SATHE, MR. MOHAN SHENOI
Directors Report
To the Members of KOTAK FOREX BROKERAGE LIMITED The Directors present their Twenty Third Annual Report together with the audited accounts of the Company for the year ended 31st March 2011. FINANCIAL RESULTS AND OPERATIONS During the year under review, the total income of the Company was ` 5,745,372/- as compared to ` 6,402,496/- in the previous year. The Company incurred a loss of ` 4,553,477 in the year as compared to `5,197,370/DIVIDEND In view of the losses, no dividend is recommended. OPERATIONS The company will continue to focus on enhancing its customer base and to improve its revenue streams. DIRECTORS Mr. Chandrashekhar Sathe retires by rotation and being eligible, offers himself for re-appointment. AUDITORS The Companys Auditors, M/s V. C. Shah & Co., Chartered Accountants, Mumbai, retire at the ensuing Annual General Meeting and are eligible for re-appointment. You are requested to re-appoint them and fix their remuneration. COMPLIANCE CERTIFICATE As required by proviso to Section 383A of the Companies Act, 1956, a copy of the Compliance Certificate is being attached with this Report. STATUTORY INFORMATION The Company did not have any employees falling within the scope of sub-section (2A) of Section 217 of the Companies Act, 1956, nor did it accept any deposits from the public during the year. There were no earnings or outgo of foreign exchange and the other requirements pursuant to the Companies (Disclosure of Particulars in Report of Board of Directors) Rules, 1988, do not apply since the company is not a manufacturing company. DIRECTORS RESPONSIBILITY STATEMENT In pursuance of Section 217 (2AA) of the Companies Act, 1956, the Directors state, as an averment of their responsibility, that: i) ii) the Company has, in the preparation of the annual accounts, followed the applicable accounting standards along with proper explanation relating to material departures, if any. the Directors have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March 2011 and of the loss of the Company for the financial year ended 31st March 2011; the Directors have taken proper and sufficient care to the best of their knowledge and ability, for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and the Directors have prepared the annual accounts on a going concern basis.
iii)
iv)
Dipak Gupta Director Mumbai, 26th April 2011
Mohan Shenoi Director
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Compliance Certificate
Registration No. of the Company: 11-48450. Nominal Capital: 4,50,00,000/-. To, The Members, KOTAK FOREX BROKERAGE LIMITED, Bakhtawar, 1st Floor, 229, Nariman Point, Mumbai- 400 021. I have examined the registers, records, books and papers of KOTAK FOREX BROKERAGE LIMITED (hereinafter referred to as the Company) as required to be maintained under the Companies Act, 1956 (hereinafter referred to as the Act) and the rules made there under and also the provisions contained in the Memorandum and Articles of Association of the Company for the financial year ended on 31st March 2011. In my opinion and to the best of my information and according to the examinations carried out by me and explanations furnished to me by the Company, its officers and agents, I certify that in respect of the aforesaid financial year: 1. 2. The company has kept and maintained all registers as stated in Annexure A to this certificate, as per the provisions of the Act and the rules made there under and all entries therein have been duly recorded. The Company has duly filed all the forms and returns as stated in Annexure B to this certificate, with the Registrar of Companies, Regional Director, Central Government, Company Law Board or other authorities within the time prescribed under the Act, and the rules made there under. The Company, being a public limited company has the prescribed minimum paid up capital. The Board of Directors duly met 7 (Seven) times respectively on 28th April 2010, 6th September 2010, 21st September 2010, 1st October 2010, 22nd October 2010, 28th December 2010 and 2nd February 2011 and in respect of which meetings proper notices were given and the proceedings were properly recorded and signed in the Minutes Book maintained for the purpose. There were no circular resolutions passed during the financial year. The Company was not required to close its Register of Members or Debenture holders during the financial year. The annual general meeting for the financial year ended on 31st March 2010 was held on 1st June 2010 after giving due notice to the members of the company and other concerned and the resolutions passed thereat were duly recorded in Minutes Book maintained for the purpose. One extra-ordinary general meeting was held during the financial year at a short notice with the requisite consent of the members and after complying with provisions of the Act. The resolutions passed thereat were duly recorded in the Minutes Book maintained for the purpose. The Company has not advanced any loan to its directors and/or persons or firms or companies referred in the section 295 of the Act. The company has not entered into any contracts falling within the purview of section 297 of the Act. The company has made necessary entries in the register maintained under section 301 of the Act. As there were no instances falling within the purview of section 314 of the Act, the company has not obtained any approvals from the Board of directors, members or Central Government. The company has not issued any duplicate share certificates during the financial year. The Company: (i) (ii) (iii) (iv) has delivered all the certificates on allotment of securities in accordance with the provisions of the Act. There was no transfer/ transmission of securities during the financial year. has not deposited any amount in a separate Bank Account as no dividend was declared during the financial year. has not posted warrants to any member of the company as no dividend was declared during the financial year. was not required to transfer any amount to Investor Education and Protection Fund, since there were no amounts in unpaid dividend account and there was no application money due for refund, matured deposits, matured debentures and the interest accrued thereon which have remained unclaimed or unpaid for a period of seven years. has duly complied with the requirements of section 217 of the Act.
3. 4.
5. 6.
7.
8. 9. 10. 11. 12. 13.
(v) 14.
The Board of directors of the company is duly constituted and the appointment of Directors has been duly made. There was no appointment of additional directors, alternate directors or directors to fill casual vacancy during the financial year. Kotak Forex Brokerage Limited Annual Report 2010-11
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Compliance Certificate (Contd.)

15. 16. 17. 18. 19. 20. 21. 22. 23. 24. The Company has not appointed any Managing Director/Whole-time Director/Manager during the financial year. The company has not appointed any sole selling agents during the financial year. The company was not required to obtain any approvals of the Central Government, Company Law Board, Regional Director, Registrar and/or such authorities prescribed under the various provisions of the Act during the financial year. The directors have disclosed their interest in other firms/companies to the Board of Directors pursuant to the provisions of the Act and the rules made there under. The company has issued 7,00,000 Equity Shares of `10/- during the year and complied with the provisions of the act. The Company has not issued debentures or any other securities during the financial year. The company has not bought back any shares during the financial year. The company has redeemed 60 Fully Convertible Redeemable debentures of ` 1,00,000/- during the financial year and complied with the provisions of the Act. There were no transactions necessitating the company to keep in abeyance rights to dividend, right shares and bonus shares pending registration of transfer of shares. The company has not invited/accepted or renewed any deposits including any unsecured loans falling within the purview of section 58A during the financial year. The amounts borrowed by the Company from others during the financial year ending 31st March 2011 are within the borrowing limits of the Company and that necessary resolutions as per section 293(1)(d) of the Act have been passed in duly convened extraordinary general meeting held on 18th July 2005. The company has not made any loans or advances or given guarantees or provided securities to other bodies corporate. The company has not altered the provisions of the Memorandum with respect to situation of the companys registered office from one state to another during the year under scrutiny. The company has not altered the provisions of the Memorandum with respect to the objects of the company during the year under scrutiny. The company has not altered the provisions of the Memorandum with respect to name of the company during the year under scrutiny. The company has altered the provisions of the Memorandum with respect to share capital of the company during the year under scrutiny and complied with the provisions of the Act. The company has not altered its Articles of Association during the financial year. As per the information and explanations given by officers of the Company, there was no prosecution initiated against or show cause notices received by the company and no fines or penalties or any other punishment was imposed on the company during the financial year for offences under the Act. The company has not received any money as security from its employees during the financial year. As per the information and explanations given by officers of the Company, the Company is not required to make any contribution under the Provident Fund Act. However the company has voluntarily made contribution to the Provident Fund.
25. 26. 27. 28. 29. 30. 31.
32. 33.
Place : Mumbai Dated : 24th April 2011
Rupal D. Jhaveri Company Secretary FCS : 5441, CP:4225
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Annexure A
REGISTERS AS MAINTAINED BY THE COMPANY: STATUTORY REGISTERS: 1. 2. 3. 4. 5. 6. 7. 8. Register of Members u/s 150. Register of debenture holders u/s 152. Register of Directors u/s 303. Register of Directors Shareholding u/s 307. Minutes Book of meetings of the Board of Directors u/s 193. Minutes Book of General Meetings of the members u/s 193. Books of Accounts u/s 209. Register of Particulars of Contracts in which Directors are interested u/s 301.
OTHER REGISTERS 1. Register of Transfers.
Annexure B
Forms and Returns as filed by the Company with Registrar of Companies, Regional Director, Central Government or other authorities during/ for the financial year ending 31st March, 2011. Sr. No. 1. 2. 3. 4. 5. Form No/Return Filed under Section 159(1) 220 383A 303(2) 75 For Date of filing 14/07/10 10/06/10 02/06/10 03/06/10 23/04/10 Whether filed within prescribed time Yes/No. Yes. Yes. Yes. Yes. Yes. If delay in filing whether requisite additional fee paid N.A. N.A. N.A. N.A. N.A.
Annual Return with Form 20B Balance Sheet with Form 23AC & 23ACA Compliance Certificate With Form 66 Form 32 Form 2
2009-2010 2009-2010 2009-2010 Appointment of director Return of Allotment of shares Return of Allotment of shares Increase in authorized share capital
5.
Form 2
75
08/10/10
Yes.
N.A.
6.
Form 5
95/97 94A (2)/ 81(4)
09/09/10
Yes.
N.A.
Kotak Forex Brokerage Limited Annual Report 2010-11
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Reports
Auditors Report
To, The Members of KOTAK FOREX BROKERAGE LIMITED 1. We have audited the attached Balance Sheet of KOTAK FOREX BROKERAGE LIMITED as at 31st March 2011 and the Profit and Loss Account and Cash Flow Statement of the company for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit. We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion. As required by Companies (Auditors Report) Order, 2003 as amended thereafter, issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. Further to our comments in the Annexure referred to above, we report that: i) ii) iii) iv) v) We have obtained all the information and explanations, which to the best of our knowledge and belief, were necessary for the purposes of our audit; In our opinion, proper books of account as required by law have been kept by the company, so far as appears from our examination of those books; The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account; In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956; On the basis of the written representations received from the directors, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March 2011 from being appointed as a director in terms of clause (g) of subsection (1) of section 274 of the Companies Act, 1956. In our opinion and to the best of our information and according to the explanations given to us, the said accounts read with the notes thereon, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: a) b) c) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2011; in the case of Profit and Loss Account, of the loss for the year ended on that date; and in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
2.
3.
4.
vi)
A. N. Shah Partner. Membership No.: 42649 Mumbai, 26th April 2011
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Annexure to the Auditors Report referred to in paragraph 3 of our report of even date i. (a) (b) (c) ii. iii. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets; The assets of the Company have been physically verified by the management at reasonable intervals and no material discrepancies were noticed on such verification; In our opinion, the fixed assets disposed off during the year do not constitute a substantial part of the fixed assets of the Company and such disposal has not affected the going concern status of the Company;
The Company, being engaged in foreign exchange broking business, does not have any inventory hence sub-clause (a), (b) and (c) of this clause are not applicable; (a) (b) The Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under section 301 of the Act and hence sub-clauses (b), (c) and (d) of this clause are not applicable; The Company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Act and hence sub-clauses (f) and (g) of this clause are not applicable.
iv.
In our opinion and according to the information and explanations given to us, there is adequate internal control system commensurate with the size of the Company and the nature of its business for purchase of fixed assets and for services rendered. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system; (a) (b) The particulars of contracts or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section; In our opinion and according to the information and explanations given to us, transactions made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time;
v.
vi. vii. viii. ix.
The Company has not accepted any deposits from the public during the year under report; In our opinion, the Company has an internal audit system commensurate with its size and nature of its business. The provisions of section 209 (1) (d) of the Companies Act, 1956 in respect of maintenance of cost records as may be prescribed by the Central Government, are not applicable to the Company; (a) The Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other material statutory dues, if any, applicable to it; According to the information and explanations given to us, there are no dues of income tax, sales tax, wealth tax, service tax, custom duty, excise duty or cess that have not been deposited on account of any dispute;
(b) x. xi. xii. xiii. xiv. xv. xvi.
In our opinion, the accumulated losses of the Company at the end of the financial year are more than fifty percent of its net worth. The Company has also incurred cash loss of `10,23,156/- during the year and ` 13,41,271/- in the immediately preceding financial year; In our opinion and according to the explanations given to us, the Company has not defaulted in repayment of dues to debenture holders. There are no borrowings from a financial institution or a bank; The company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities during the year under report. The Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company; The Company is not dealing or trading in shares, securities, debentures or other investments and hence clause 4(xiv) is not applicable; According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions; The company has not taken any term loans during the year under report.
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Reports
Annexure to the Auditors Report (Contd.)

xvii. According to the information and explanations given to us and on an overall examination of the balance sheet of the Company, we report that no funds raised on short-term basis have been used for long term investment; xviii. The Company has not made any preferential allotment of shares to parties or companies covered under section 301 of the Companies Act, 1956. xix. xx. xxi. The Company has not issued any debentures during the year under report. The Company has not raised any money by public issues, during the year under report; According to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the year under report;
A. N. Shah Partner. Membership No. 42649 Mumbai, 26th April 2010
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(` in thousands)

Schedule I. SOURCES OF FUNDS Shareholders Funds Share Capital Reserves & Surplus Loan Funds Unsecured TOTAL II. APPLICATION OF FUNDS Fixed Assets Gross Block Less: Depreciation Net Block Investments Current Assets, Loans & Advances Sundry Debtors Cash and Bank Balances Loans and Advances 6 7 8 595,781 3,313,358 2,606,199 6,515,338 Less : Current Liabilities & Provisions Current Liabilities Provisions 9 10 556,725 669,145 1,225,870 Net Current Assets Profit and Loss Account TOTAL Significant Accounting Policies and Notes to the Financial Statements 15 5,289,469 38,559,602 43,900,000 1,990,191 539,747 2,529,938 5,370,950 34,006,125 42,900,000 610,111 4,279,704 3,011,072 7,900,888 5 4 58,437,388 (58,386,460) 50,928 1 58,379,062 (54,856,139) 3,522,923 1 3 1,000,000 43,900,000 7,000,000 42,900,000 1 2 41,000,000 1,900,000 34,000,000 1,900,000 As at 31st March 2011 As at 31st March 2010
As per our attached report of even date For V. C. Shah & Co. Chartered Accountants A. N. Shah Partner Mumbai, 26th April 2011 For and on behalf of the Board of Directors
Dipak Gupta Director
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Reports
(` in thousands)
Schedule INCOME Income from services Interest - others (TDS `23,131/- ; P.Y.`68,278/-) Income from Investments Other Income TOTAL EXPENDITURE Interest on Fixed period loans/deposits and Debentures Personnel Expenses Other Expenses TOTAL PROFIT / (LOSS) BEFORE DEPRECIATION AND TAX Depreciation PROFIT / (LOSS) BEFORE TAX Provision for Taxation: Current Tax Deferred Tax Fringe Benefit Tax PROFIT / (LOSS) AFTER TAX Add : Surplus/ (Deficit) brought forward from previous year BALANCE CARRIED TO BALANCE SHEET Basic and Diluted earnings per share (Refer Note no.II (5) of Schedule 15) Significant Accounting Policies and Notes to the Financial Statements 15 (4,553,477) (34,006,125) (38,559,602) (1.21) (5,197,370) (28,808,755) (34,006,125) (1.73) 13 14 326,726 3,253,063 3,188,739 6,768,528 (1,023,156) 3,530,321 (4,553,477) 1,588,699 2,750,348 3,404,719 7,743,766 (1,341,271) 3,856,099 (5,197,370) 12 11 5,392,535 352,254 583 5,745,372 4,197,838 808,025 1,393,148 3,484 6,402,495 For the year ended 31st March 2011 For the year ended 31st March 2010
As per our attached report of even date For V. C. Shah & Co. Chartered Accountants A. N. Shah Partner Mumbai, 26th April 2011 Its grt 2b 25 For and on behalf of the Board of Directors
(` in thousands)
Cash Flow statement for the year ended 31st March 2011
Particulars 2010-2011 ` CASH FLOW FROM OPERATING ACTIVITIES Net Loss after Taxes Adjustments for : Depreciation Dividend on Current Investments Profit on Current Investments Operating Profit Before Working Capital Changes Adjustments for : (Increase)/Decrease in Sundry Debtors Decrease in Loans & Advances (Decrease) in Current Liabilites Increase in Provisions Cash Used In Operations (Income Taxes paid) / Refund Received Net Cash flow (Used in)/ from Operating Activities CASH FLOW FROM INVESTING ACTIVITIES Purchase of Fixed Assets Purchase of Investment Sale of Investment Dividend received on investments Investment in Debentures Sale of Debentures Redemption of Fixed Deposits Net Cash flow (Used in)/ from Investing Activities Cash Flow from Financing Activities Increase in Equity Share Capital Decrease in Unsecured Loans 7,000,000 (6,000,000) 4,000,000 (5,500,000) (B) (58,326) 375,000 316,674 (180,590,498) 180,590,498 90,498 (182,180,890) 183,483,540 2,000,000 3,393,148 (A) 14,330 134,158 (1,433,466) 129,398 (2,178,734) 270,714 (1,908,020) (163,897) 155,178 (304,577) 31,419 (3,016,295) 1,394,609 (1,621,686) 3,530,321 (1,023,156) 3,856,099 (90,498) (1,302,650) (2,734,419) (4,553,477) (5,197,370) ` 2009-2010 ` `
10
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Reports
(` in thousands)
Particulars ` Net Cash flow from Financing Activities NET INCREASE/( DECREASE) IN CASH & CASH EQUIVALENTS CASH & CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR CASH & CASH EQUIVALENTS AT THE END OF THE YEAR (C) 2010-2011 ` 1,000,000 ` 2009-2010 ` (1,500,000)
(A + B + C)
(591,346)
271,462
779,704
508,242
188,358 (591,346)
779,704 271,462
Notes : 1. Cash and cash equivalent include : Cash on hand Bank Balances Total cash and cash equivalents 2. 188,358 188,358 363 779,341 779,704
The Cash Flow statement has been prepared under the Indirect Method as set out in the Accounting Standard -3 on Cash Flow Statement issued by the Institute of Chartered Accountants of India. The corresponding amounts of previous year have been re-grouped, wherever necessary.
3.
11
(` in thousands)

As at 31st March 2011 Schedule 1 - Share Capital Authorised 45,00,000 (P.Y. 40,00,000)Equity Shares of ` 10 each Issued, subscribed and paid up 41,00,000 (P.Y.34,00,000) Equity Shares of ` 10 each, fully paid up Of the above : (i) 21,10,294 (P.Y. 17,50,000 )equity shares are held by Kotak Mahindra Bank Limited, the holding company and its nominees. (ii) 19,89,706 (P.Y.16,50,000 ) equity shares are held by Kotak Securities Limited, a subsidiary of the holding company. Total 41,000,000 34,000,000 41,000,000 34,000,000 45,000,000 45,000,000 40,000,000 40,000,000 As at 31st March 2010
Schedule 2 - Reserves and Surplus Capital Redemption Reserve As per last Balance Sheet Total 1,900,000 1,900,000 1,900,000 1,900,000
Schedule 3 - Unsecured Loans 8.50% 10 (P.Y. 70 ) Unsecured Fully Convertible Debentures of `1,00,000/- each fully paid up (Redeemable at par on or before 25th March 2012, at the exercise of put or call option exercisable after 3 years from the date of allotment, being 26th March 2007. If option to redeem is not exercised, the debentures shall be convertible into equity shares of `10/- each on maturity date, I.e.25th March 2012, at book value as per audited financials on 30th September 2011.) (Refer Note(II) No.4 of Schedule 15) Total Schedule 4- Fixed Assets Gross Block Description As at 1st April 2010 18,840,000 941,271 85,355 212,436 38,300,000 58,379,062 58,379,062 Additions Deductions As at 31st March 2011 18,840,000 978,771 85,355 233,262 38,300,000 58,437,388 58,379,062 Upto 1st April 2010 18,840,000 941,271 85,355 200,346 Depreciation / Amortisation For the year 4,089 15,399 Deductions 1,000,000 7,000,000 Amount in ` Net Block Upto As at 31st March 31st March 2011 2011 18,840,000 945,360 85,355 215,745 38,300,000 58,386,460 54,856,138 33,411 17,517 50,928 3,522,924 As at 31st March 2010 12,090 3,510,833 3,522,923 7,379,023 1,000,000 7,000,000
Goodwill Office Equipment Furniture & Fixtures Computers Forex Broking Business Rights Total Total
37,500 20,826 58,326
34,789,167 3,510,833 54,856,139 3,530,321 51,000,039 3,856,099
12
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Reports
(` in thousands)

Schedule 5 - Investments Long Term Investments : (Non Trade, at cost) In Debentures (Unquoted and fully paid) : Kitply Industries Ltd. Total 10,000 1,567 1 1 1,567 1 1 Face Value Quantity Amount (`) as ` 31st March on 31st March 2011 2011 Quantity Amount (`) as 31st March on 31st March 2010 2010
Aggregate of Unquoted Investments - at cost
1 As at 31st March 2011
1 As at 31st March 2010
Schedule 6 - Sundry Debtors Unsecured, considered good more than six months others TOTAL 595,781 595,781 610,111 610,111
Schedule 7 - Cash and Bank Balances Cash on hand Balance with scheduled banks - in current accounts in Fixed Deposit TOTAL 188,358 3,125,000 3,313,358 363 779,341 3,500,000 4,279,704
Schedule 8 - Loans and Advances (Unsecured, considered good) Advances recoverable in cash or in kind or for value to be received Advance payment of Taxes and Tax deducted at source (Net of Provision for Taxation ` 83,128 (P.Y.83,128) TOTAL 2,606,199 3,011,072 1,177,823 1,428,376 1,311,982 1,699,090
Schedule 9 - Current Liabilities Sundry Creditors (other than Micro,Medium and Small enterprises) Interest accrued but not due Other Liabilities TOTAL 184,232 289,829 82,664 556,725 305,447 1,493,303 191,441 1,990,191
Schedule 10 - Provisions Provision for Gratuity Provision for Compensated Absences TOTAL 461,812 207,333 669,145 343,414 196,333 539,747 Its grt 2b 25
13
(` in thousands)

For the year ended 31st March, 2011 Schedule 11 - Income from Services Brokerage (Gross) Less: Sub brokerage and discounts TOTAL 6,107,445 714,910 5,392,535 5,624,315 1,426,477 4,197,838 For the year ended 31st March, 2010
Schedule 12 - Income from Investments Income from Long term Investments Profit on sale of Current Investments Dividend on Current Investments 1,000,000 302,650 90,498 1,393,148
Schedule 13 - Personnel Expenses Salaries, Allowances and Bonus Contribution to Provident Fund and other Funds Staff Welfare TOTAL 2,969,477 157,548 126,038 3,253,063 2,536,866 141,042 72,440 2,750,348
Schedule 14 - Other Expenses Rent Electricity Charges Maintenance expenses Telephone Expenses Membership and Subscription Business Promotion Expenses Common Establishment Expenses - Reimbursements Legal and Professional Charges Filing Fees Auditors Remuneration: Audit Fees Tax Audit Fees In other capacity 50,000 20,000 5,278 31,558 42,000 11,140 26,828 397 60,000 3,188,739 50,000 20,000 2,013 31,077 74,000 2,500 216,314 24,308 70,360 3,404,719 1,458,828 129,953 132,814 250,072 541,286 178,026 140,232 106,815 3,510 1,360,800 154,117 139,316 244,987 592,377 246,810 172,240 3,500
Travel and Conveyance Share Issue Expenses Rates and Taxes Sundry balances written off Miscellaneous Expenses Demat account charges Exchange Rate Loss TOTAL
14
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Reports
Schedule 15 - Significant Accounting Policies and Notes Forming Part of the Financial Statments for the year ended 31st March 2011
I. A. SIGNIFICANT ACCOUNTING POLICIES ACCOUNTING METHODOLOGY The accounts have been prepared on historical cost basis of accounting in accordance with the generally accepted accounting principles. The Company adopts accrual method of accounting. B. REVENUE RECOGNITION Brokerage is recognized as income on accrual basis. Dividend on investments is recognised when the right to receive payment is established. Interest income is recognised on accrual basis. C. FIXED ASSETS a. b. Fixed Assets have been stated at cost less accumulated depreciation. Depreciation/Amortization Policy (i) The Company adopts the Straight Line Method of depreciation at rates higher than those prescribed in Schedule XIV to the Companies Act, 1956, based on the managements estimates of useful life of the assets as follows: Asset Type Computers Office Equipment Furniture & Fixture Useful Life in Years 3 5 6
Items costing less than `5,000 are fully depreciated in the year of purchase. (ii) Forex Broking Business right acquired is treated as an asset and the value paid to acquire such right is amortised over a period of 10 years from the date of acquisition on prorata basis, as considered appropriate by the management.
D.
INVESTMENTS Investments are classified into long term investments and current investments. Investments which are intended to be held for more than one year are classified as long term investments and investments which are intended to be held for less than one year are classified as current investments. Long term investments are accounted at cost and any decline in value, other than temporary is provided for. Current investments are valued at cost (applying weighted average cost method) or fair value whichever is lower. Brokerage, stamping and additional charges paid are included in the cost of investments.
E.
EMPLOYEE BENEFITS a. b. c. d. e. Provident fund is a defined contribution scheme and the contributions as required by the statute to Government Provident Fund are charged to profit and loss account when due. Gratuity liability is a defined benefit obligation and is wholly unfunded. The Company accounts for liability for future gratuity benefits based on actuarial valuation conducted by an inpendent. Actuarial gains/losses are immediately taken to the profit and loss account and are not deferred. The amount of short-term employee benefits expected to be paid in exchange for the services rendered by employee is recognized during the period when the employee renders the service. These benefits include performance incentives. The Company accrues the liability for compensated absences based on the actuarial valuation as at the balance sheet dated conducted by an independent actuary.
F.
TAXES ON INCOME The Income Tax expense comprise of Current tax and Deferred tax. Current tax is measured at the amount expected to be paid in respect of taxable income for the year in accordance with the Income tax Act. Deferred tax adjustments comprises of changes in the deferred tax assets and liabilities. Deferred tax assets and liabilities are recognised for the future tax consequences of timing differences being the difference between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax asset is recognised subject to prudence and judgement that realisation is more likely than not. Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantially enacted before the balance sheet date. Changes in deferred tax assets / liabilities on account of changes in enacted tax rates are given effect to in the Profit and Loss Account in the period of the change. Its grt 2b 25
15
G.
BORROWING COST Borrowing costs other than those directly attributable to qualifying Fixed Assets are recognised as an expense in the period in which they are incurred.
H.
SEGMENTAL ACCOUNTING a. b. c. Segment revenue includes income directly attributable / allocable to the segment. Expenses that are directly attributable / allocable to segments are considered for determining the Segment Results. The expenses which relate to the Company as a whole and are not allocable to segments are included under Unallocable expenses. Segment assets and liabilities include those directly identifiable with the respective segments. Unallocable corporate assets and liabilities represent the assets and liabilities that relate to the Company as a whole and not allocable to any segment. Unallocated assets mainly comprise of Advance payment of taxes and tax deducted at source (net of provision for taxation).
I.
PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS Provisions involving substantial degree of estimation in measurement are recognised when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but disclosed in the notes. Contingent assets are neither recognised nor disclosed in financial statements.
J.
IMPAIRMENT OF ASSETS The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is charged to Profit & Loss account in the year in which an asset is identified as impaired.
II. 1.
NOTES TO ACCOUNTS In terms of Section 117C of the Companies Act, 1956, the Company is required to create a Debenture Redemption Reserve of an adequate amount in respect of debentures issued. However, in the absence of adequate profits no Redemption Reserve has been created by the Company. Employee Benefit Scheme Reconciliation of opening and closing balance of the present value of the defined benefit obligation for gratuity benefits is given below. Amount in ` As at 31st March 2011 As at 31st March 2010
2.
Change in Unfunded defined benefit obligations Present value of unfunded benefit obligations, 1st April 2010 Current Service cost Interest cost Benefits paid Actuarial (gain)/loss on obligations Present value of unfunded benefit obligations 343,414 50,159 30,611 37,628 461,812 246,426 45,090 20,327 31,571 343,414
Reconciliation of present value of the obligation and the fair value of the plan assets Fair value of plan assets Present value of unfunded benefit obligations Net liability 461,812 461,812 343,414 343,414
Cost recognised for the period Current service cost Interest cost Actuarial (gain)/loss Net gratuity cost 50,159 30,611 37,628 118,398 45,090 20,327 31,571 96,988
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Actuarial assumptions used As at 31st March 2011 Discount rate Salary escalation rate 8.26% p.a. 15 % p.a. for first 2 years 10.0 % p.a. for next 2 years & 6 % p.a. thereafter As at 31st March 2010 8.01% p.a. 15 % p.a. for first 2 years 10.0 % p.a. for next 2 years & 6 % p.a. thereafter
The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market. Experience adjustments Amounts for the current and previous four years are as follows: Gratuity Year ended 31st March 2011 Defined benefit obligation Plan assets Surplus / (deficit) Experience adjustments on plan liabilities Experience adjustments on plan assets Gratuity In accordance with Payment of Gratuity Act, the Company provides for gratuity, a defined benefit retirement plan covering all employees. The plan provides a lump sum payment to vested employees at retirement or termination of employment based on the respective employees salary and the years of employment with the Company subject to maximum of ` 10.00 lakhs. The gratuity benefit is provided through unfunded plan. Under the scheme, the settlement obligation remains with the Company. Provident fund In accordance with Indian regulations, employees of the Company are entitled to receive benefits under the provident fund, a defined contribution plan, in which, both the employee and the Company contribute monthly at a determined rate. These contributions are made to a recognised provident and administered by a Board of Trustees. The employee contributes 12% of his or her basic salary and the Company contributes an equal amount. The investments of the funds are made according to rules prescribed by the Government of India. Accumulated Compensated Absences The Company accrues the liability for compensated absences based on the actuarial valuation as at the balance sheet date conducted by an independent actuary. 3. Quantitative information in respect of investment in units of mutual funds: Description 31st March 2011 Quantity Kotak Liquid (Institutional) Daily Dividend Opening Stock Add: Purchases Less: Sales Closing Stock 14,762,140.5377 14,762,140.5377 Its grt 2b 25 180,512,931 180,512,931 Amount ` 31st March 2010 Quantity Amount ` 461,812 (461812) 14,063 2010 343,414 (193,146) 21,552 2009 246,426 (246,426) 8,187 2008 193,146 (193,146) (1,142) 2007 132,142 (132,142) (14,017)
17
Description
31st March, 2011 Quantity Amount `
31st March, 2010 Quantity Amount `
Kotak Floater Long Term - Daily Dividend Opening Stock Add: Purchases Less: Sales Closing Stock 4. Related Party Disclosures: Parties where control exist : Nature of relationship Holding Company Related Party Kotak Mahindra Bank Limited holds 51.47% ( P.Y. 51.47%) of the share capital along with its nominees Uday S. Kotak along with relatives and entities controlled by him holds 45.56% (P.Y.48.21%) of the equity share capital of Kotak Mahindra Bank Limited as on 31st March, 2011. Fellow Subsidiary Other related parties: Fellow Subsidiary Others: Mutual Fund managed by Fellow Subsidiary Kotak Mahindra Mutual Fund (managed by Kotak Mahindra Asset Management Company Limited) Kotak Mahindra Investments Limited Kotak Securities Limited holds 48.53% (P.Y.48.53%) of the share capital 17,916,079.5070 17,916,079.5070 180,590,498 180,590,498
The following transactions were carried out with the related parties in the ordinary course of business: Amount ` Nature of Transaction Finance Shares issued Kotak Mahindra Bank Limited Kotak Securities Limited Debentures redeemed Kotak Securities Limited Intercorporate deposit borrowed Kotak Mahindra Investments Limited Intercorporate deposit repaid Kotak Mahindra Investments Limited Unsecured Loans Debentures Kotak Securities Limited Liabilities Outstandings payable Interest accrued but not due Kotak Securities Limited 39,418 (44,215) 289,829 (1,493,303) 1,000,000 (7,000,000) 3,602,940 () 3,397,660 (4,000,000) 6,000,000 (5,500,000) (180,000,000) (180,000,000) Holding Company Fellow Subsidiaries Mutual Fund managed by Fellow Subsidiary
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Reports
Amount ` Nature of Transaction Outstandings Balance in Current accounts Term Deposits placed Interest receivable on Term Deposits placed Income Interest on Fixed Deposits Expenses Rent Paid Demat Charges Interest on Debentures Kotak Securities Limited Interest on Intercorporate Deposits borrowed Kotak Mahindra Investments Limited Other Transactions Expense Reimbursements to companies Kotak Securities Limited Kotak Mahindra Capital Company Ltd. Investments - Mutual Fund units Purchases Sales Figures in bracket indicates previous year figures. 5. Earnings Per Share (EPS) The numerators and denominators used to calculate Basic and Diluted Earnings Per Share: Particulars For the year ended 31st March, 2011 (A) (4,553,477) For the year ended 31st March, 2010 (5,197,370) (361,103,429) (361,103,429) 368,140 (335,763) (2,540) (1,375) (532,603) 326,726 (1,056,096) 1,458,828 (1,360,800) 397 (70,360) 123,229 (319,910) 88,925 (625,509) 1,625,000 (2,000,000) 43,518 (55,864) Holding Company Fellow Subsidiaries Mutual Fund managed by Fellow Subsidiary
Loss attributable to the Equity Shareholders (`) Weighted average number of equity shares outstanding during the period Nominal Value of Equity Share (`) Basic and Diluted Earnings Per Share (`) `
(B) (C ) D = (A) / (B )
3,768,219 10 (1.21)
3,006,575 10 (1.73)
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The Company has issued fully convertible debentures to be converted into equity shares of `10/- each , if not redeemed, at book value based on the audited accounts as on 30th September 2011. The break up value of the equity shares as on the date of issue of debentures being negative, the potential equity shares have an anti-dilutive effect and hence have been ignored for the purpose of calculation of diluted EPS. 6. Segment Reporting In accordance with Accounting Standard 17 on Segment Reporting issued by the Institute of Chartered Accountants of India, the Company has determined one geographical segment, i.e. India and the following two business segments with principal activities as under: Segment Forex Investments Principal Activity Broking in Forex Markets and other related activities Investment Activity
In accordance with Accounting Standard 17 on Segment Reporting issued by the Institute of Chartered Accountants of India,the Company has determined business segments as outlined in Note H of Significant Accounting Polices: Segment information: 1. Segment Revenue a. b. Forex broking Investment Total 5,745,372 5,745,372 5,009,347 1,393,148 6,402,496 2010-11 Amount ` 2009-10 Amount `
2.
Segment Results a. b. Forex broking Investment Total Profit Before Tax (4,553,477) (4,553,477) (6,590,518) 1,393,148 (5,197,370)
3.
Segment Assets a. b. Forex broking Investment Total 5,137,891 1 5,137,892 6,252,726 1 6,252,727
4.
Segment Liablites a. b. Forex broking Investment Total 2,225,870 2,225,870 3,613,066 3,613,066
5.
Unallocated Assets net of Liabilities
1,428,376
1,699,090
6.
Capital expenditure a. b. Forex broking Investment Total 58,326 58,326
7.
Depreciation a. b. Forex broking Investment Total 3,530,321 3,530,321 3,856,099 3,856,099
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7. 8.
The Company has taken office premise under operating lease It is cancelable and renewable by mutual consent on mutually agreeable terms. Lease payments recognized in Profit and Loss Account under the head Rent Expenses `14,58,828/- (P.Y. `13,60,800/-). At the General Meetings of the holding company, Kotak Mahindra Bank Limited, the shareholders of the Bank had unanimously passed Special Resolutions on 28th July 2000, 26th July 2004 & 26th July 2005, 5th July 2007 and 21st August 2007, to grant options to the Eligible Employees of the Bank and its subsidiaries subsidiary companies. Pursuant to these resolutions, the following four Employees Stock Option Schemes had been formulated and adopted: a) b) c) d) Kotak Mahindra Equity Option Scheme 2001-02 Kotak Mahindra Equity Option Scheme 2002-03 Kotak Mahindra Equity Option Scheme 2005 Kotak Mahindra Equity Option Scheme 2007
In accordance with SEBI (Employees Stock Option Scheme and Employee Stock Purchase) Guidelines, 1999 and the guidance note on Accounting for Employee Share-based Payments issued by the Institute of Chartered Accountants of India, the excess, if any, of the market price of share preceding the date of grant of the option under ESOPs over the exercise price of option is amortised on a straight-line basis over the vesting period. The Company has reimbursed the Bank ` 80,109 (Previous year ` Nil) during the year on account of such cost and the same is forming part of employee cost and included under the head Salaries, Allowances and Bonus Had the company recorded the compensation cost computed on the basis of fair valuation method instead of intrinsic value method, employee compensation cost would have been higher by `19,558 (Previous year ` Nil) and the loss after tax would have been higher by `19,558 (Previous year `Nil). Consequently the basic and diluted EPS would have been `(1.21) (Previous year `(1.73) 9. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given. Previous years figures have been regrouped / reclassified wherever necessary to conform to figures of the current year.
10.
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KOTAK MAHINDRA PENSION FUND LIMITED
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BOARD OF DIRECTORS : MR. JAIMIN BHATT, MR. RAGHUNATH T. V, MR. GAURANG SHAH, MR. TUSHAR MAVANI, MR. BALAN WASUDEO, MR. SHIVAJI DAM
Directors Report
To the Members of KOTAK MAHINDRA PENSION FUND LIMITED The Directors present their Second Annual Report together with the audited accounts of your Company for the year ended 31st March 2011. FINANCIAL RESULTS (`) 2010-2011 Gross income Profit / (Loss) before Depreciation and Tax Depreciation Profit / (Loss) before Tax Provision after Tax Balance of Profit/(Loss) from previous years Loss carried forward to the Balance Sheet DIVIDEND Your Directors do not recommend any dividend on equity shares for this financial year. OPERATIONS Your company was appointed as a Pension Fund Manager (PFM) by the Pension Fund Regulatory and Development Authority (PFRDA), on 30th April 2009 for a period of three years ending 30th April 2012 for managing the funds under New Pension System (NPS), as per the terms of the Investment Management Agreement dated 30th April 2009. As per the terms of the appointment your Company manages the funds received in the Trustee Bank (Bank of India) and as per the pension fund subscription information provided by the Central record keeping agency (National Securities Depository Limited). The assets are under the custody of the NPS Trustee appointed custodian viz., Stock Holding Corporation of India Limited. Your Company manages seven schemes, and the combined assets under management on 31st March 2011 were ` 330.09 Lakhs. PFRDA has, during the year, introduced new scheme NPS LITE to promote small savings specifically targeting the weaker and economically disadvantaged sections of the society. The scheme wise assets under management as on 31st March 2011 is given below: Scheme NPS Trust A/c Kotak Pension Fund Scheme E NPS Trust A/c Kotak Pension Fund Scheme C NPS Trust A/c Kotak Pension Fund Scheme G NPS Trust A/c Kotak Pension Fund Scheme E Tier II NPS Trust A/c Kotak Pension Fund Scheme C Tier II NPS Trust A/c Kotak Pension Fund Scheme G Tier II NPS Trust A/c Kotak Mahindra Pension Fund Limited NPS Lite Scheme Govt Pattern Aum as on 31st March 2011 (`.in Lakhs) 117.14 82.87 91.16 17.34 11.30 10.28 330.09 The pension fund management business is currently at a nascent stage and considering the low rates of management fees, the revenue generated for the year ended 31st March 2011 is ` 164 (Previous year - `16). Your company has made a net loss of ` 5,724,680 for the financial year. DIRECTORS During the year, Mr. Narayan S. A., resigned as a Director of the Company. The Directors placed on record their sincere appreciation of the valuable service rendered by Mr. Narayan, during his tenure as a Director. Mr. Gaurang Shah, had been appointed as Additional Director on the Board of the Company w.e.f. 1st May 2010. He was elected as a Director at the Annual General Meeting held on 10th June 2010. We report with profound grief and sorrow, the demise of our Director Mr. Anirudha Barwe. The inputs and guidance provided by Mr. Anirudha Barwe were invaluable. Mr. Balan Wasudeo, was appointed as a Director on the Board of the Company on 31st March 2011 in the casual vacancy caused by the demise of Mr. Anirudha Barwe. 390,274 (5,724,680) (5,724,680) (6,217,970) (11,942,650) 2009- 2010 376,843 (6,217,970) (6,217,970) (6,217,970)
Its grt 2b 25
In accordance with the Articles of Association, Mr. Tushar Mavani and Mr. Shivaji Dam retire by rotation from the Board at the forthcoming Annual general Meeting and being eligible have offered their candidature for re-appointment. The Board met four times during the year. AUDIT COMMITTEE In view of the sad demise of Mr. Anirudha Barwe, the Audit Committee was re-constituted at the Board Meeting held on 31st March 2011 and presently consists of Mr. Tushar Mavani, Mr. Jaimin Bhatt and Mr. Balan Wasudeo. The Committee met four times during the year to review the operations and internal controls. APPOINTMENT COMMITTEE As per the directives of Reserve Bank of India (RBI), your company has constituted an Appointment Committee consisting of Mr. Jaimin Bhatt and Mr. Gaurang Shah. The scope of the Committee is to ensure that fit & proper persons are appointed as Directors and Senior Management Personnel of the organization. RISK COMMITTEE Pursuant to the Investment Management Agreement with PFRDA, your company has constituted a Risk Committee consisting of Mr. Tushar Mavani, Mr. Gaurang Shah and Mr. V.R. Narasimhan. The scope of the Risk Committee is to analyse and review the risk associated with managing the Pension Fund business and risk mitigants put in place.. The Risk Committee met twice during the year. INVESTMENT MANAGEMENT COMMITTEE Pursuant to the Investment Management Agreement with PFRDA, your company has constituted an Investment Management Committee. In view of the sad demise of Mr. Anirudha Barwe, the Investment Management Committee was reconstituted at the Board Meeting held on 31st March 2011 and presently consists of Mr. Jaimin Bhatt, Mr. Gaurang Shah, Mr. Shivaji Dam, Mr. Balan Wasudeo and Mr. V.R. Narasimhan. The scope of the Investment Management Committee is the ensure that all investments are carried out as per the provisions of PFRDA Guidelines/ directions. The Investment Management Committee met twice during the year. AUDITORS The Auditors of your Company M/s. Deloitte Haskins & Sells, Chartered Accountants, Mumbai, retire at the conclusion of the forthcoming Annual General Meeting and being eligible, offer themselves for re-appointment on such remuneration as may be fixed by the Board of the Directors of your Company. STATUTORY INFORMATION Your Company did not have any employees falling within the scope of sub-section (2A) of Section 217 of the Companies Act, 1956, nor did it accept any deposits during the year. It had no foreign exchange earnings or outgo. The other particulars prescribed under the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 are not applicable since your Company is not a manufacturing company. EMPLOYEES/HUMAN RESOURCES Mr. Krishnan Ramchandran resigned as the Chief Executive Officer of the Company effective 1st October 2010 and Mr. V. R. Narasimhan has been appointed in his place. Ms. Darshana Baliya has been appointed as the Company Secretary of the Company. DIRECTORS RESPONSIBILITY STATEMENT Based on representations from the Management, the Directors state, in pursuance of Section 217 (2AA) of the Companies Act, 1956, that: i. Your Company has, in the preparation of the annual accounts for the year ended 31st March 2011, followed the applicable accounting standards along with proper explanations relating to material departures, if any; 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 your Company as at 31st March 2011 and of Profit and Loss of your Company for the financial year ended 31st March 2011; iii. The Directors have taken proper and sufficient care to the best of their knowledge and ability, for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of your Company and for preventing and detecting fraud and other irregularities; and iv. The Directors have prepared the annual accounts on a going concern basis. ACKNOWLEDGEMENTS Your Directors would like to place on record their gratitude for the valuable guidance and support received from the Pension Fund Regulatory and Development Authority and other Government and Regulatory agencies.
For and on behalf of the Board of Directors Jaimin Bhatt Chairman Place: Mumbai Dated: 21st April 2011
Kotak Mahindra Pension Fund Limited Annual Report 2010-11
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Reports
Auditors Report
To the members of KOTAK MAHINDRA PENSION FUND LIMITED 1. We have audited the attached Balance Sheet of KOTAK MAHINDRA PENSION FUND LIMITED ("the Company") as at 31st March 2011, the Profit and Loss Account and the Cash Flow Statement of the Company for the year ended on that date, both annexed thereto. These financial statements are the responsibility of the Company's Management. Our responsibility is to express an opinion on these financial statements based on our audit. 2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and the disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by the Management as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. As required by the Companies (Auditor's Report) Order, 2003 (CARO) issued by the Central Government in terms of Section 227(4A) of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. 4. Further to our comments in the Annexure referred to in paragraph 3 above, we report as follows: (a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit; (b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books; (c) the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt with by this report are in agreement with the books of account; (d) in our opinion, the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt with by this report are in compliance with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956; (e) in our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: (i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2011; (ii) in the case of the Profit and Loss Account, of the loss of the Company for the year ended on that date and (iii) in the case of the Cash Flow Statement, of the cash flows of the Company for the year ended on that date. 5. On the basis of the written representations received from the Directors as on 31st March 2011 taken on record by the Board of Directors, none of the Directors is disqualified as on 31st March 2011 from being appointed as a director in terms of Section 274(1)(g) of the Companies Act, 1956.
For DELOITTE HASKINS & SELLS Chartered Accountants (Registration No. 117366W)
Nalin M. Shah Partner (Membership No.15860) Place: Mumbai Dated: 21st April 2011. NMS /VP
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Annexure to the Auditors' Report

(Referred to in paragraph 3 of our report of even date) 1. (i) (ii) Having regard to the nature of the Company's business / activities / transactions, etc., clauses (i), (ii), (viii), (x), (xi), (xii), (xiii), (xiv), (xv), (xvi), (xviii), (xix) and (xx) of CARO are not applicable. The Company has neither granted nor taken any loan, secured or unsecured, to/from companies, firms or other parties listed in the Register maintained under Section 301 of the Companies Act, 1956.
(iii) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to sale of services. During the course of our audit, we have not observed any major weakness in such internal control system. (iv) To the best of our knowledge and belief and according to the information and explanations given to us, there were no contracts or arrangements that needed to be entered in the Register maintained under Section 301 of the Companies Act, 1956. (v) According to the information and explanations given to us, the Company has not accepted any deposit from the public within the meaning of Sections 58A and 58AA of the Companies Act, 1956.
(vi) In our opinion, the Company has an adequate internal audit system commensurate with the size and the nature of its business. (vii) According to the information and explanations given to us in respect of statutory dues: (a) (b) (c) The Company has been regular in depositing undisputed dues, including Provident Fund, Income-tax, Cess and other material statutory dues applicable to it with the appropriate authorities. There were no undisputed amounts payable in respect of Income Tax, Cess and other material statutory dues in arrears as at 31st March 2011 for a period of more than six months from the date they became payable. There were no disputed tax demands which remained to be deposited with the appropriate authorities.
(viii) In our opinion and according to the information and explanations given to us and on an overall examination of the Balance Sheet, we report that funds raised on short-term basis have not been used during the year for long- term investment. (ix) To the best of our knowledge and according to the information and explanations given to us, no fraud by or on the Company has been noticed or reported during the year.
For DELOITTE HASKINS & SELLS Chartered Accountants (Registration No. 117366W)
Nalin M. Shah Partner (Membership No.15860) Mumbai, 21st April 2011 NMS /VP
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Reports

Schedule Sources of Funds Shareholders Funds Share Capital Total 1 120,000,000 120,000,000 As at 31st March 2011 As at 31st March 2010
(`)
120,000,000 120,000,000
Application of Funds Investments 2 105,010,742 105,010,742
Current Assets, Loans and Advances Cash & Bank balance Sundry Debtors Loans and Advances 3 4 5 6,221,088 264 203,622 6,424,974 Less: Current Liabilities and Provisions Current Liabilities Provisions 6 2,759,941 618,424 3,378,365 Net Current Assets Deficit as per Profit and Loss Account Total 3,046,608 11,942,650 120,000,000 957,694 205,060 1,162,754 8,771,288 6,217,970 120,000,000 9,785,334 16 148,692 9,934,042
Notes to Accounts
The Schedules referred to above & notes to accounts form an integral part of the Balance Sheet
In terms of our report attached For DELOITTE HASKINS & SELLS Chartered Accountants Nalin M. Shah Partner Mumbai, 21st April 2011 For and on behalf of the Board of Directors
A. Vinod Manager
Tushar Mavani Director
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Schedule Income Investment Management fees Dividend on current investments Interest on Fixed Deposits - Gross ( Tax deducted at source ` 173, Previous Year - 10,617) Total 164 388,384 1,726 390,274 For the Year Ended 31st March 2011 For the Year Ended 31st March 2010
(`)
16 325,286 51,541 376,843
Expenditure Payments to and provisions for Employees Salaries, Allowances and Incentives Contribution to Provident Fund Provision for Gratuity (Refer Schedule 7 Note II A) Provision for Compensated Absences 3,593,751 148,642 14,211 139,538 1,726,302 83,317 26,572 64,214
Operating and Other Expenses Membership & Subscription I T Expenses Directors sitting fees Rates and taxes Printing and Stationery Travel Expenses Legal and Professional Fees Auditors Remuneration: Audit Fees Company Law Matters Service Tax Filing Fees Reimbursement of common administrative costs Miscellaneous Expenditure Total 150,000 15,450 165,450 12,329 509,359 55,143 6,114,954 150,000 15,000 16,995 181,995 1,176,780 424,655 10,627 6,594,813 333,863 551,526 210,000 118,544 17 61,937 200,644 1,259,205 1,103,000 180,000 10,200 96,372 71,094 180,480
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Profit and Loss Account for the year ended 31st March 2011 (Contd.)
Schedule For the Year Ended 31st March 2011
Net Loss Before Tax Net Loss After Tax PROFIT / (LOSS) Previous Year C/F loss Net Loss carried forward to the Balance Sheet Earnings per share - Basic and Diluted (Equity Shares, par value of ` 10/- each fully paid up) (Refer Schedule 7 - Note II B) Notes to Accounts 7
(5,724,680) (5,724,680) (5,724,680) (6,217,970) (11,942,650) (0.48)
(6,217,970) (6,217,970) (6,217,970)
(6,217,970) (0.70)
The Schedules referred to above & notes to accounts form an integral part of the Profit and Loss Account
A. Vinod Manager
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Year Ended 31st March 2011 CASH FLOW FROM OPERATING ACTIVITIES Loss Before Tax Adjustments for: Dividend income Provision for Employee Benefits Interest on Fixed Deposits OPERATING LOSS BEFORE WORKING CAPITAL CHANGES Increase in Sundry debtors Increase in Loans and Advances Increase in Current Liabilities and Provisions (248) (54,757) 2,061,862 2,006,858 CASH USED IN OPERATIONS Direct Taxes Paid NET CASH USED IN OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Purchase of Investments (net) Interest received on Fixed Deposits Dividend received NET CASH USED IN INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of Share Capital CASH FLOWS FROM FINANCING ACTIVITIES (C) (B) 1,726 388,384 390,110 (A) (3,954,183) (173) (3,954,356) (388,384) 153,749 (1,726) (5,961,041) (16) (138,075) 1,071,968 (5,724,680)
(`) Period Ended 31st March 2010
(6,217,970)
(325,286) 90,786 (51,541) (6,504,011)
933,877 (5,570,134) (10,617) (5,580,751)
(105,010,742) 51,541 325,286 (104,633,915)
120,000,000 120,000,000
NET INCREASE IN CASH AND CASH EQUIVALENTS (A + B + C)
(3,564,246)
9,785,334
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
9,785,334 6,221,088 (3,564,246)
9,785,334
A. Vinod Manager
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Reports

As at 31st March 2011 Schedule 1 - Share Capital Authorised 15,000,000 equity shares of ` 10 each Issued, Subscribed and Paid up 12,000,000 equity shares of Rs 10 each, fully paid up (Of the above 10,799,940 shares are held by Kotak Mahindra Asset Management Company Ltd. The ulimate holding company is Kotak Mahindra Bank Ltd.) Total 120,000,000 150,000,000
150,000,000
120,000,000
120,000,000
120,000,000
Schedule 2 - Investments Current Investments (At Cost or Market Value whichever is lower) Non Trade, Unquoted Kotak Floater Long Term Scheme - Growth Option & Daily Dividend Total Notes: i) Following investments were purchased and sold during the year: 982,452.08 units (Previous Year - 1,221,705.18 units) of Kotak Floater Long Term Scheme Daily Dividend Option 782937.23 units (Previous Year - Nil units) of Kotak Floater Short Term Scheme - Daily Dividend Option Nil units (Previous Year - 981,434.28 units) of Kotak Liquid Institutional Scheme - Daily Dividend Option 32,714.37 units (Previous Year - 8,587,658.10 units) of Kotak Liquid Institutional Premium Scheme Daily Dividend Option ii) iii) Aggregate amount of mutual fund investments at Net Asset Value Aggregate amount of unquoted investments at cost 105,010,742 105,010,742 105,010,742 105,010,742
9,902,920 7,920,349
12,314,544 12,001,077
400,034 115,954,475 105,010,742
105,010,742 108,711,227 105,010,742
Schedule 3 - Cash & Bank Balance
Balance with Scheduled Bank in Current Accounts Balance with Scheduled Bank in Fixed Deposits
221,088 6,000,000 6,221,088
9,785,334 9,785,334
Its grt 2b 25

As at 31st March 2011 Schedule 4 - Sundry Debtors (Unsecured, considered good) Debts outstanding for a period Less than six months Total 264 264
16 16
Schedule 5 - Loans and Advances (Unsecured, considered good) Advances recoverable in cash or in kind or for value to be received Tax Deducted At Source Total 192,832 10,790 203,622 138,075 10,617 148,692
Schedule 6 - Current Liabilites and Provisions A. Current Liabilities Sundry Creditors (Other Than Micro,Small and Meduim Enterprises) Amount Payable to Kotak Mahindra Asset Management Company Ltd. Amount Payable to Kotak Mahindra Bank Ltd. Other Liabilities 2,061,986 458,461 239,494 2,759,941 B. Provisions Gratuity Compensated Absenses 343,132 275,292 618,424 69,306 135,754 205,060 620,176 272,992 64,526 957,694
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Reports
Schedule 7 - Significant Accounting Policies and Notes to the Accounts
I. SIGNIFICANT ACCOUNTING POLICIES A. BASIS OF ACCOUNTING The Financial Statements have been prepared on historical cost basis of accounting. The Company adopts the accrual system of accounting and the financial statements conform with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006, the generally accepted accounting principles prevailing in India and the relevant provisions of the Companies Act, 1956. The preparation of financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements, the reported income and expenses during the reporting period. The Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Actual results could differ from these estimates and assumptions. B. REVENUE RECOGNITION Investment Management Fee is recognised at specific rates agreed with the relevant schemes, applied on the average monthly net assets managed. Dividend income is accounted when the right to receive dividend is established. Revenue is recognised only when it is reasonably certain that the ultimate collection will be made. C. INVESTMENTS Investments are classified into long term investments and current investments. Investments which are intended to be held for more than one year are classified as long term investments and investments which are intended to be held for less than one year are classified as current investments. Long term investments are accounted at cost and any decline in value, other than temporary, is provided for. Current investments are valued at cost (calculated by applying weighted average cost method) or market value whichever is lower. Brokerage, stamping and additional charges paid are included in the cost of investments. In case of investments in units of mutual funds, the net asset value of units is considered as the market value. D. EMPLOYEE BENEFITS Defined contribution scheme a. The contributions as required by the statute to Government Provident Fund are charged to the Profit and Loss account when due. Defined Benefit Plan b. The Company accounts for the liability for future gratuity benefits based on an independent actuarial valuation. The gratuity obligation is wholly unfunded. The net present value of the Company's obligation towards the same is actuarially determined based on the projected unit credit method as at the Balance Sheet date. Actuarial gains/losses are immediately recognised in the Profit and Loss Account and are not deferred. Other Long -term Employee Benefits d. The Company accrues the liability for compensated absences based on an actuarial valuation as at the Balance Sheet date conducted by an independent actuary. The net present value of the Company's obligation is determined based on the projected unit credit method as at the Balance Sheet date. Other Employee Benefits e. The undiscounted amount of employee benefits expected to be paid in exchange for the services rendered by employees is recognised during the period when the employee renders the service. These benefits include performance incentives. TAXES ON INCOME The Income Tax expense comprises Current tax, Deferred tax. Current tax is measured at the amount expected to be paid in respect of taxable income for the year in accordance with the Income Tax Act, 1961. Deferred tax adjustments comprise of changes in the deferred tax assets and liabilities. Deferred tax assets and liabilities are recognised for the future tax consequences
c.
E.
Its grt 2b 25
11
of timing differences being the difference between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets on account of timing differences are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. In situations where the Company has unabsorbed depreciation or carried forward losses, deferred tax assets are recognised only if there is virtual certainity supported by convincing evidence that the same can be realised against future taxable profits. Deferred tax assets and liabilities are measured using tax rates and tax laws that have been substantially enacted before the Balance Sheet date. Changes in deferred tax assets / liabilities on account of changes in enacted tax rates are given effect to in the Profit and Loss Account in the period of the change. The Company writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realised. II. NOTES TO THE ACCOUNTS A. Employee Benefits Reconciliation of opening and closing balance of the present value of the defined benefit obligation for gratuity benefits is given below. (`) As at 31st March 2011 Change in Unfunded benefit obligations Present value of unfunded benefit obligations, at the beginning of the year Current Service cost Interest cost Actuarial (gain)/loss on obligations Past Service Cost Liabilities assumed Benefits paid Present value of unfunded benefit obligations as at year end Cost recognised for the year/period Current service cost Amount transferred from Holding Company Interest cost Expected return on plan assets Actuarial (gain)/loss Past Service Cost Net gratuity cost Actuarial assumptions used Particulars Discount rate Salary escalation rate Year Ended 31st March 2011 8.26% p.a. 15% p.a. for first the year, 10% p.a. for next 2 years & 6% p.a. thereafter Period Ended 31st March 2010 8.01% p.a. 15% p.a. for first 2 years, 10% p.a. for next 2 years & 6% p.a. thereafter 69,306 34,653 8,076 (95,248) 66,730 2,59,615 3,43,132 Year Ended 31st March 2011 34,653 8,076 (95,248) 66,730 14,211 69,306 69,306 Period Ended 31st March 2010 69,306 (42,734) 26,572 As at 31st March 2010
The estimates of future salary increases considered in actuarial valuation take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market. B. Earnings Per Share (EPS) The numerators and denominators used to calculate Basic and Diluted Earnings Per Share: Year ended 31st March 2011 (a) (b) (c) (d) Nominal Value of an Equity Share (`) Net loss available to Equity Shareholders (`) Weighted average number of shares outstanding Basic and Diluted Loss Per Shares (`) = (b) / (c) 10 5,724,680 12,000,000 0.48 Period ended 31st March 2010 10 6,217,970 8,906,986 0.70
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Reports
C.
Segmental Reporting The Companys operations predominantly relate to providing investment management services to the Pension Fund Schemes of the New Pension System Trust and hence there are no separate reportable business / geographic segments.
D.
Related Party Disclosures Parties where control exist: Holding Company Ultimate Holding Company Other related parties: Fellow Subsidiaries with whom there are transactions. Key Management Personnel Kotak Mahindra Investments Limited Narasimhan V.R. Vinod A.N (`) Year Ended 31st March 2011 Period Ended 31st March 2010 Kotak Mahindra Asset Management Company Limited Kotak Mahindra Bank Limited
Statement of Material Related Party Transactions. Particulars Kotak Mahindra Asset Management Company Ltd (Holding Company) 1. Payables 2. Subscription towards Equity Shares 3. Expenses Reimbursed 4. Reimbursement of common administrative cost Kotak Mahindra Bank Limited (Ultimate Holding Company) 1. Payables 2. Balance in Current Account 3. Subscription towards Equity Shares 4. Fixed Deposits placed 5. Fixed Deposits Matured 6. Interest income on Fixed Deposit 7. Reimbursement of common administrative cost. Kotak Mahindra Investments Limited (Fellow Subsidiary) 1. Reimbursement of common administrative cost Key Management Personnel Particulars Salaries, Bonus & Incentives Contribution to provident fund 2010-11 2,614,100/98,500/-
Nil Nil 39,086/284,686/458,461/180,679/Nil 6,000,000/Nil 1,726/588,960 66,180/-
272,992/108,000,000/2,226,980/303,325/Nil 9,776,437/12,000,000/119,500,000/119,500,000/51,541/Nil 121,330/-
2009-10 Nil Nil
Note - As the future liability for gratuity and leave encashment is provided on an actuarial basis for the Company as a whole, the amount pertaining to the key management personnel is not ascertainable and, therefore, not included above. E. F. There are no amounts / interest payable to any vendors covered under the Micro, Small and Medium Enterprises Development Act, 2006. Previous period figures have been regrouped and reclassified wherever necessary to confirm with current years classification.Previous period was the period from 23rd March 2009 (Date of Incorporation) to 31st March 2010.
For and on behalf of the Board of Directors A. Vinod Manager Jaimin Bhatt Director Tushar Mavani Director
Mumbai, 21st April 2011.
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13
L. I.
Balance Sheet Abstract and Company's General Business Profile as per Part IV, Schedule VI of the Companies Act, 1956 Registration Details Registration No. U 6 7 2 0 0 M H 3 1 2 0 3 0 9 P L C 1 9 1 1 4 4 State Code 1 1
Balance Sheet Date II.
2 0 1 1
Capital raised during the year: (Amount in ` Thousand) Public Issue N Bonus Issue N I L I L
Rights Issue N Private Placement N I L I L
III.
Position of mobilisation and deployment of funds: (Amount in ` Thousand) Total Liabilities 1 2 0 0 0 0 Source of Funds Paid-up Capital 1 2 0 0 0 0 Secured Loans N Application of Funds Net Fixed Assets N Deferred Tax Asset N I L I L Investments 1 0 5 0 1 1 Net Current Assets 3 0 4 6 Accumulated Losses L 1 1 9 4 3 I L Reserves and Surplus N I Unsecured Loans N I L L Total Assets 1 2 0 0 0 0
Miscellaneous Expenditure N IV. I
Performance of Company: (Amount in ` Thousand) Turnover / Income 3 9 0 + / Profit/(Loss) before Tax 5 7 2 5 Total Expenditure 6 1 1 5
+ / Profit/(Loss) after Tax 5 7 2 5 Dividend Rate (%) 0 0
(Please tick appropriate box + for profit, for loss) + / Earnings per Share (in `) V. 0 . 4 8
Generic names of three principal products, services of the Company (As per monetary terms): Item Code No. (ITC Code) Product Description N A P E N S I O N F U N D C O M P A N Y
For and on behalf of the Board of Directors A. Vinod Manager Jaimin Bhatt Director Tushar Mavani Director
Mumbai, 21st April 2011
14

Annual Report 2010 2011

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Annual Report 2010 2011

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Its grt 2b 25

ANNUAL REPORT 2010-11

Consolidated financial statements

Bank reports & statements

Its also grt 2 win...

Its grt 2b 25 Its grt 2b 25

Consolidated Financial Statements

Bank Reports & Statements

Maybe because were just 25.

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Consolidated Financial Statements

Bank Reports & Statements

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Shankar Acharya @25: Got my PhD from

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Uday Kotak @25: Gave up pursuing a plum

Anand Mahindra @25: Successfully

Kotak Mahindra Bank Limited Annual Report 2010-11

or Ceased to be Direct rch 2011 effective 21st Ma

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Consolidated Financial Statements

Bank Reports & Statements

Dipak Gupta @25: Turned

Dipak Gupta C Jayaram

C Jayaram @25: Narrowly

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Ceased to be Dir ect effective 21st Ma or rch 2011

Asim Ghosh @25: Single,

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Kotak Mahindra Bank Limited Annual Report 2010-11

Its grt 2b 25 Its grt 2b 52

Consolidated Financial Statements

Bank Reports & Statements

Executive Vice Chairman & Managing Director

branches of Kotak Mahindra Bank

branches and franchises in India

Kotak Mahindra Bank Limited Annual Report 2010-11

Its grt 2b 25 Its grt 2b 52

Consolidated Financial Statements

Bank Reports & Statements

employees across the Group

capital adequacy ratio

Kotak Mahindra Bank Limited Annual Report 2010-11

Its grt 2b 25 Its grt 2b 52

Consolidated Financial Statements

Bank Reports & Statements

Auto Finance division was established.

Entered the Funds Syndication sector.

The Investment Banking Division incorporated as Kotak Mahindra Capital Company.

Kotak Mahindra Bank Limited Annual Report 2010-11

Its grt 2b 25 U nme it, v r in it

Consolidated Financial Statements

Bank Reports & Statements

eal Launched R ate Fund. Est

Launched India Growth F und, a private eq uity fund.

Financial First Non Banking nvert into Corporation to co . a commercial bank