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Kotak Securities Limited

Kotak Secur i t ies L imited 1

Directors’ Report

To the Members ofKotak Securities Limited

Your Directors are pleased to present the 16th Annual Report and the Audited Accounts for the year ended 31st March 2010.

I. FINANCIAL HIGHLIGHTS

(Rupees in Lakhs except per share data)

31st March, 2010 31st March, 2009

Gross Income 83,786.39 71,987.44

Profit / (Loss) before Depreciation and Tax 42,345.93 19,305.84

Depreciation 1,958.31 2,628.50

Profit / (Loss) before Tax 40,387.62 16,677.34

Provision for Tax 14,377.58 6,028.96

Profit / (Loss) After Tax 26,010.04 10,648.38

Transfer from Debenture Redemption Reserve 8,828.04 25,143.73

Balance brought forward from previous year 99,812.93 77,161.02

Amount available for appropriation 1,34,651.01 1,12,953.13

Transfer to Debenture Redemption Reserve 7,264.67 13,140.20

Profit / (Loss) carried forward to the Balance Sheet 1,27,386.34 99,812.93

Earnings per share on equity shares of Rs. 10 each (Basic and Diluted) 1,625.63 665.52

II. DIVIDEND

In order to further consolidate your Company’s position, your Board proposes to employ the surplus resources to augment capital requirements, and does not recommend a dividend for the financial year 2009-2010 (hereinafter referred to as ‘current financial year’).

III. OPERATIONS

The current financial year started with the general elections around the corner. The results, in May 2009, with the UPA getting a clear majority were welcomed by the capital markets. This resulted in renewed appetite for Equity and the Sensex which closed at 9708 at the end of the financial year 2008-09 (hereinafter referred to as ‘previous financial year’) started moving up to close at 17528 at the end of the current financial year. Similarly, the benchmark Nifty which closed at 2523 at the end of the previous financial year closed at 5249 at the end of the current financial year. The average daily volumes went up to Rs. 22,784 crores from Rs. 16,135 crores in the previous financial year for the Cash Segment and to Rs. 72,938 crores from Rs. 45,687 crores in the previous financial year for Derivatives Segment. The year also saw a shift in the market volumes with a skew towards derivatives volumes towards the end of the current financial year.

RETAIL SEGMENT

The year had begun with a cautious approach. With the change in the environment post the general elections, there was a need to relook at the plan for the current financial year. Branches were opened on a selective basis and the focus to increase the Sub broker network continued. The total outlets have gone up to 1113 from 783 at the end of the previous financial year. The number of registered sub brokers stood at 1312 for NSE and 1105 for BSE. Customer acquisition has been stepped up. The number of customers added during the current financial year was around 66000. Most of the centralized functions of your Company have moved to a new state of the art office at Malad (E), in Mumbai. The premises have capacity to take care of your Company’s growth and expansion plans over the medium term.

INSTITUTIONAL EQUITIES

Kotak Institutional Equities (KIE), a division of Kotak Securities maintained its leading position in institutional segment of the broking business. Institutional volumes gained momentum post the General elections with increased participation by Foreign Institutional Investors (“FIIs”) and Domestic Institutional Investors (“DII”) alike. The division outperformed other syndicate members in marketing of several Indian equity offerings (IPOs, FPOs & QIPs) to FIIs & DIIs During the year, KIE expanded its footprint and provided its clients with comprehensive execution services including direct market access and algorithmic trading. KIE research continued to be recognized for its in-depth modeling, width of coverage and investment insights, winning valuable votes from its clients.

BOARD OF DIRECTORS: MR. UDAY KOTAK (C), MR. D. KANNAN (MD), MR. NARAYAN S. A. (D), MS. FALGUNI NAYAR (D), MR. C. JAYARAM (D), MR. VIKRAM SUD (D)

2 Kotak Secur i t ies L imited

PRIMARY MARKET

With the change in the capital market environment, corporates are back to raising equity capital through QIPs and Public Offerings. The Government of India has also accessed the capital markets for disinvestment of its stake in some PSUs. Retail participation in the primary capital markets is however left wanting. In the current financial year, your Company was syndicate/sub syndicate member in 44 Public Offer Issues, including some PSU disinvestment and a Reverse Book Building for Buyback.

PORTFOLIO MANAGEMENT SERVICES

The events of previous financial year continued to have an impact on this line of business. Fresh inflows were left wanting with the retail investors preferring to wait and watch. Some interest is seen returning in this asset class with a rise in valuations. The total equity Assets under management as on 31st March, 2010 was around Rs. 2302 crores.

IV. AWARDS AND RECOGNITIONS

Your Company has received following awards during current financial year for its performance:

a. Voted as the Best Local Brokerage firm by Asiamoney Brokers Poll for 2009 (for the 4th year in a row). KIE was also adjudged as No. 2 in Country Research, Sales Services and Sales Trading across domestic and international brokerages by Asiamoney.

b. Awarded Best Performing Equity Broker (National) by UTI MF – CNBC TV18 for 2009.

c. Awarded Best Broker in India by Finance Asia for 2009.

V. FUTURE OUTLOOK

Following the turmoil in global financial markets in the previous financial year, the current financial year was a year for the world to take steps for a recovery and confidence building. These steps seem to have paid off for Corporate India with companies declaring good results. FII interest in India is back resulting in the easing of the US dollar which had appreciated significantly. Inflation which had begun to rise is near its peak. On the global front there are still doubts on the economic scene with news of inability to service/ repay sovereign debt by certain countries coming in from time to time.

With a stable Government at the Centre, activity levels in the Indian capital markets have increased significantly and the benchmark Sensex and Nifty have gained significantly crossing 18000 and 5300 respectively. Market volumes have also seen an increase during this period.

The retail segment has still some concern on direct Equity as an asset class. This is visible in day to day traded volumes on Stock Exchanges as well as in the participation of public offerings in the primary markets. Full participation from this segment will result in enhanced business for your Company and your Company is focused in this direction.

There are a host of changes in regulations being introduced by the Securities and Exchange Board of India with special emphasis on investor service and protection. Your Company has always been focused on customer service and would be able to comply with these requirements. Competition has intensified with margins coming under severe pressure. Your Company is taking all necessary steps to meet these challenges among others to maintain its leadership position in the industry.

VI. DIRECTORS

Mr. Narayan S. A. and Mr. C. Jayaram retire by rotation at the ensuing Annual General Meeting and are eligible for re-appointment.

VII. COMMITTEES

The Company has Routine and Administrative Functions Committee, First Tier Audit Committee and the Audit Committee. The constitutions of the said Committees are as follows:

Routine and Administrative Functions Committee

1. Mr. Uday Kotak

2. Mr. Narayan S. A.

3. Mr. C. Jayaram

First Tier Audit Committee

1. Mr. C. Jayaram

2. Mr. Narayan S. A.


3. Mr. Vikram Sud

4. Mr. D. Kannan

5. Mr. Falguni Nayar

6. Mr. Jaimin Bhatt

Audit Committee

1. Mr. Uday Kotak

2. Mr. C. Jayaram

3. Mr. Vikram Sud

VIII. AUDITORS

The Company’s auditors, M/s Price Waterhouse, Chartered Accountants, Mumbai, retire at the ensuing Annual General Meeting and are eligible for re-appointment.

IX. 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 Rs. 155.31 Lacs (Rs. 422.97 Lacs in previous financial year) and Rs. 1103.49 Lacs (Rs. 1853.30 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.

X. 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 2010, 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 2010 and of the profit of the Company for the financial year ended 31st March 2010.

(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.

XI. ACKNOWLEDGEMENTS

The Directors wish to thank Securities and Exchange Board of India, the Stock Exchanges, the Depositories and the Company’s 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

UDAY S. KOTAK Place : Mumbai Chairman Dated : 28th April, 2010


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, 2010, 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 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 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.

3. 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.

4. Further to our comments in the Annexure referred to in paragraph 3 above, 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;

(b) 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 Auditor’s Report has been forwarded to us and have been appropriately dealt with;

(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;

(d) 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;

(e) On the basis of written representations received from the directors, as on March 31, 2010 and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2010 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Act;

(f) 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) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2010;

(ii) in the case of the Profit and Loss Account, of the profit for the year ended on that date; and

(iii) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

For Price WaterhouseFirm Registration Number: 301112EChartered Accountants

Vivek PrasadPartner Place : MumbaiMembership Number: F104941 Date : May 3, 2010


Referred to in paragraph 3 of the Auditors’ Report of even date to the members of Kotak Securities Limited on the financial statements for the year ended March 31, 2010.

1. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed assets.

(b) The fixed assets are physically verified by the Management according to a phased programme designed to cover all the items over a period of two years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, a portion of the fixed assets has been physically verified by the Management during the year and no material discrepancies between the book records and the physical inventory have been noticed.

(c) In our opinion and according to the information and explanations given to us, a substantial part of fixed assets has not been disposed of by the Company during the year.

2. (a) 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.

(b) 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.

(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.

3. (a) 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 Rs. 16,733,769 (‘000s) and Rs.15,612,724 (‘000s) respectively.

(b) 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.

(c) 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.

(d) In respect of the aforesaid fixed deposits, there is no overdue amount more than Rs. 100 (‘000s).

(e) The Company has taken secured overdraft facility from its holding company and issued unsecured debentures 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 Rs. 1,000,000 (‘000s), the maximum loan amount due to the director was Rs. 3,000 (‘000s) and the year end balance of such loans aggregates Rs. 87,103 (‘000s).

(f) 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.

(g) The repayment of principal amounts and payment of interest in case of the aforesaid overdrafts and debentures is as per stipulations.

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.

5. (a) 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.

(b) 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 Rs. 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.

Annexure to Auditors’ Report


6. 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.

7. In our opinion, the Company has an internal audit system commensurate with its size and nature of its business.

8. 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.

9. (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.

(b) 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, 2010 which have not been deposited on account of a dispute, are as follows:

Name of the statute Nature of dues Amount (Rs. (‘000s))

Period to which the amount relates

Forum where the dispute is pending

The Income Tax Act, 1961 Income tax 2,215 Assessment Year 2002-2003 Income-Tax Appellate Tribunal



The Income Tax Act, 1961 Income tax 764 Assessment Year 2005-2006 Income-Tax Appellate Tribunal

The Central Excise Act, 1944 Service tax 3,258 2000-2001 Commissioner (Appeals)

The Central Excise Act, 1944 Service tax 1,913 2002-2005 Assistant Commissioner of Service tax

10. The Company has no accumulated losses as at March 31, 2010 and it has not incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year.

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 WaterhouseFirm Registration Number: 301112EChartered Accountants

Vivek PrasadPartner Place : MumbaiMembership Number: F104941 Date : May 3, 2010


Balance Sheet as at 31st March, 2010

This is the Balance Sheet referred to in our report of even date

For Price Waterhouse For and on behalf of the Board of DirectorsFirm Registration Number: 301112EChartered Accountants

Uday S. KotakChairman

Narayan S. A.Director

D. KannanManaging Director

Vivek Prasad Falguni Nayar Sandeep Chordia Trivikram Kamath Partner Director Company Secretary Executive Vice PresidentMembership Number: F104941

Mumbai, Dated : May 3, 2010 Mumbai, Dated : April 28, 2010

Schedule 31st March, 2010

Rs. in Lacs 31st March, 2009

Rs. in Lacs

SOURCES OF FUNDS

Shareholders’ Funds :

Capital 1 160.00 160.00

Reserves and Surplus 2 151,041.12 125,031.08

Loan Funds :

Secured Loans 3 841.03 977.24

Unsecured Loans 4 19,289.54 30,279.03

Total 171,331.69 156,447.35

APPLICATION OF FUNDS

Fixed Assets : 5

Gross Block 17,664.30 13,589.55

Less : Depreciation/Amortisation 10,209.27 10,006.51

Net Block 7,455.03 3,583.04

Investments 6 57,377.26 56,858.78

Deferred Tax (Refer Note 4 on Schedule 20)

Deferred Tax Asset 3,722.97 3,553.79

Current Assets, Loans and Advances :

Stock In Trade 7 1,926.82 1,670.52

Sundry Debtors 8 53,504.49 21,626.56

Cash and Bank Balances 9 157,019.71 139,332.11

Other Current Assets 10 1,507.53 2,112.07

Loans and Advances 11 9,665.36 18,017.90

223,623.91 182,759.16

Less : Current Liabilities and Provisions

Liabilities 12 116,591.15 86,446.86

Provisions 13 4,256.33 3,860.56

120,847.48 90,307.42

Net Current Assets 102,776.43 92,451.74

Total 171,331.69 156,447.35

Notes to the Financial Statements 20

Schedules referred to above form an integral part of the Balance Sheet


Profit and Loss Account for the year ended 31st March, 2010

This is the Profit and Loss Account referred to in our report of even date







Schedule 31st March, 2010


Rs. in Lacs

INCOME

Income from Services 14 52,892.16 44,421.28

Interest Income 15 19,155.99 22,060.46

Other Income 16 11,738.24 5,505.70

Total Income 83,786.39 71,987.44

EXPENDITURE

Personnel 17 20,639.78 19,313.03

Interest and Other Finance Charges 18 2,170.30 7,291.50

Other Expenses 19 18,630.38 24,641.09

Diminution in Value of Investments — 1,435.98

Total Expenditure 41,440.46 52,681.60

Profit Before Depreciation/Amortisation and Taxation 42,345.93 19,305.84

Depreciation/Amortisation 1,958.31 2,628.50

Profit before Taxation 40,387.62 16,677.34

Provision for Taxation

Current Tax [Includes short provision for taxation relating to earlier years Rs. 380.63 Lacs (net) (Previous Year short provision for taxation relating to earlier years Rs. 70.21 Lacs (Net)]

14,546.76 5,956.97

Deferred Tax (Refer Note 4 on Schedule 20) (169.18) (143.01)

Fringe Benefits Tax — 215.00

Profit after Taxation 26,010.04 10,648.38

Transfer from Debenture Redemption Reserve 8,828.04 25,143.73

Balance Brought Forward 99,812.93 77,161.02

134,651.01 112,953.13

APPROPRIATIONS

Transfer to Debenture Redemption Reserve 7,264.67 13,140.20

Balance Carried Forward 127,386.34 99,812.93

134,651.01 112,953.13

Earnings per Share on Equity Shares of Rs. 10 each

Basic and Diluted (In Rupees)(Refer Note 21 on Schedule 20)

1,625.63 665.52

Notes to the Financial Statements 20

Schedules referred to above form an integral part of the Profit and Loss Account


Cash Flow Statement for the year ended 31st March, 2010

31st March, 2010 Rs. in Lacs


Cash flow from operating activities

Net profit before taxation 40,387.62 16,677.34

Add adjustments for :

Depreciation/amortisation 1,958.31 2,628.50

Interest and other finance charges 1,853.35 6,901.50

Interest income (19,155.99) (22,060.46)

Operating interest income 4,527.56 3,504.75

Provision for doubtful debts/(write back) 87.33 (2,131.66)

Provision for contingencies (net) 246.39 50.34

Dividend income (27.91) —

(Profit)/loss on sale of fixed assets (net) 107.77 77.53

(Profit)/loss on sale of investments (net) 272.14 (752.50)

(Profit)/loss on Buyback of debentures (net) (192.98) —

Provision for diminution in value of Investments/(write back) (1,361.25) 1,435.98

Operating profit before working capital changes 28,702.34 6,331.32

Adjustments for changes in working capital :

– Trade and other receivables (31,965.26) 31,883.18

– Stock in trade (256.30) 2,835.86

– Loans and advances 1,252.06 (2,684.91)

– Trade and other payables 30,548.27 (28,454.73)

Cash generated from operations 28,281.11 9,910.72

– Taxes paid including fringe benefits tax (net of refunds) (12,843.40) (7,114.00)

Net cash from operating activities (A) 15,437.71 2,796.72

Cash flow from investing activities :

Purchase of fixed assets (including capital advances) (1,095.10) (2,826.17)

Proceeds from sale of fixed assets 509.81 164.99

Sale of investments 1,153,526.80 1,673,816.72

Purchase of investments (1,152,956.16) (1,691,513.79)

Interest received 15,305.22 20,619.89

Net cash from investing activities (B) 15,290.57 261.64




Cash flow from financing activities :

Proceeds/(repayments) from/of borrowings (net) (12,085.61) (147,427.73)

Interest and other finance charges paid (955.07) (8,625.13)

Net cash (used in)/from financing activities (C) (13,040.68) (156,052.86)

Net Increase/(Decrease) in Cash and cash equivalents (A)+(B)+(C) 17,687.60 (152,994.50)

Cash and cash equivalents at the beginning of the year 139,332.11 292,326.61

Cash and cash equivalents at the end of the year 157,019.71 139,332.11

Cash and cash equivalents comprise of :

Cash on hand 12.43 14.86

Balances with scheduled banks 157,007.28 139,317.25

Total 157,019.71 139,332.11

Notes to the Financial Statements Schedule - 20

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. Balances with scheduled banks include fixed deposits of Rs. 125,640.72 Lacs (Previous Year Rs. 92,565.78 Lacs) which is under the lien of National Securities Clearing Corporation Limited and Rs. 11,891.45 Lacs (Previous Year Rs. 12,140.68 Lacs) which is under the lien of Bombay Stock Exchange Limited.

This is the Cash Flow Statement referred to in our report of even date







Cash Flow Statement for the year ended 31st March, 2010 (Contd.)


Schedules forming part of the Balance Sheet



Schedule 1 – Capital

Authorised

1,000,000 Preference Shares of Rs. 100 each 1,000.00 1,000.00

6,000,000 Equity Shares of Rs. 10 each 600.00 600.00

1,600.00 1,600.00

Issued and Subscribed

1,600,000 Equity Shares of Rs. 10 each fully paid up 160.00 160.00

{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

Schedule 2 – Reserves and Surplus

Securities Premium Account

Balance as per last Balance Sheet 2,350.35 2,052.77

Add : Premium on Nifty/Basket Linked Debentures — 297.58

2,350.35 2,350.35

General Reserve


Add : Transfer from Profit and Loss Account — —

6,286.51 6,286.51

Debenture Redemption Reserve


Transfer to Profit and Loss Account 8,828.04 25,143.73

7,753.25 3,441.09

Transfer from Profit and Loss Account 7,264.67 13,140.20

15,017.92 16,581.29

Profit and Loss Account 127,386.34 99,812.93

Total 151,041.12 125,031.08

Schedule 3 – Secured Loans

Overdraft From Banks 841.03 977.24

(Secured by a pari passu first charge on the stock in trade and business receivables)

Total 841.03 977.24




Schedule 4 – Unsecured Loans

Loan from Directors

3, (Previous Year – 3) Nifty Linked Optionally Convertible Debentures of Rs. 1,000,000 each. Date of redemption 31st January, 2011*. (Convertible into 60, 35% Redeemable Non cumulative Non Convertible Preference Shares of Rs. 100 each at a premium of Rs. 49,900 per share.)

30.00 30.00

Loan from Others

Nil, (Previous Year – 40) 9.95% Optionally Convertible Debentures of Rs. 10,000,000 each. Date of redemption 9th June, 2009. (Convertible into 8,000, 5% Redeemable Non Convertible Preference Shares of Rs. 100 each at a premium of Rs. 49,900 per share.)

— 4,000.00

Nil, (Previous Year – 25) 9.15% Optionally Convertible Debentures of Rs. 10,000,000 each. Date of redemption 6th April, 2009. (Convertible into 5,000, 5% Redeemable Non Convertible Preference Shares of Rs. 100 each at a premium of Rs. 49,900 per share.)

— 2,500.00

46, (Previous Year – 52) Nifty Linked Optionally Convertible Debentures of Rs. 1,025,000 each. Date of redemption 17th May, 2010*. Redeemable at Rs. 10 Lacs (Convertible into 920 (Previous Year 1,040), 35% Redeemable Non Cumulative Non Convertible Preference Shares of Rs.100 each at a premium of Rs. 49,900 per share.)

471.50 533.00

67, (Previous Year – 68) Nifty Linked Optionally Convertible Debentures of Rs. 1,000,000 each. Date of redemption 18th June, 2010*. (Convertible into 1,340 (Previous Year 1,360), 35% Redeemable Non Cumulative Non Convertible Preference Shares of Rs. 100 each at a premium of Rs. 49,900 per share.)

670.00 680.00

29, (Previous Year – 39) Nifty Linked Optionally Convertible Debentures of Rs. 1,000,000 each. Date of redemption 16th July, 2010*. (Convertible into 580 (Previous Year 780), 35% Redeemable Non Cumulative Non Convertible Preference Shares of Rs. 100 each at a premium of Rs. 49,900 per share.)

290.00 390.00

42, (Previous Year – 44) Nifty Linked Optionally Convertible Debentures of Rs. 1,000,000 each. Date of redemption 20th August, 2010*. (Convertible into 840 (Previous Year 880), 35% Redeemable Non Cumulative Non Convertible Preference Shares of Rs. 100 each at a premium of Rs. 49,900 per share.)

420.00 440.00

27, (Previous Year – 27) Nifty Linked Optionally Convertible Debentures of Rs. 1,000,000 each. Date of redemption 27th September, 2010*. (Convertible into 540, 35% Redeemable Non Cumulative Non Convertible Preference Shares of Rs. 100 each at a premium of Rs. 49,900 per share.)

270.00 270.00

95, (Previous Year – 95) 19% Optionally Convertible Debentures of Rs. 1,000,000 each. Date of redemption 10th May, 2010**. (Convertible into 1,900, 35% Redeemable Non Cumulative Non Convertible Preference Shares of Rs. 100 each at a premium of Rs. 49,900 per share.)

950.00 950.00

175, (Previous Year – 448) 19% Optionally Convertible Debentures of Rs. 1,000,000 each. Date of redemption 24th May, 2010**. (Convertible into 3,500 (Previous Year 8,960), 35% Redeemable Non Cumulative Non Convertible Preference Shares of Rs. 100 each at a premium of Rs. 49,900 per share.)

1,750.00 4,480.00

73, (Previous Year – 73) Nifty Linked Optionally Convertible Debentures of Rs. 1,000,000 each. Date of redemption 31st January, 2011*. (Convertible into 1,460, 35% Redeemable Non Cumulative Non Convertible Preference Shares of Rs. 100 each at a premium of Rs. 49,900 per share.)

730.00 730.00

100, (Previous Year – 100) Nifty Linked Optionally Convertible Debentures of Rs. 1,000,000 each. Date of redemption 28th January, 2011*. (Convertible into 2,000, 35% Redeemable Non Cumulative Non Convertible Preference Shares of Rs. 100 each at a premium of Rs. 49,900 per share.)

1,000.00 1,000.00

Schedules forming part of the Balance Sheet (Contd.)





Schedule 4 – Unsecured Loans (Contd.)


630.00 650.00

Nil, (Previous Year – 105) Nifty Linked Optionally Convertible Debentures of Rs. 1,000,000 each. — 1,050.00

138, (Previous Year – 138) Nifty Linked Optionally Convertible Debentures of Rs. 1,000,000 each. Date of redemption 7th March, 2011*. (Convertible into 2,760, 35% Redeemable Non Cumulative Non Convertible Preference Shares of Rs. 100 each at a premium of Rs. 49,900 per share.)

1,380.00 1,380.00

34, (Previous Year – 34) Nifty Linked Optionally Convertible Debentures of Rs. 1,000,000 each. Date of redemption 30th June, 2011*. (Convertible into 680, 35% Redeemable Non Cumulative Non Convertible Preference Shares of Rs. 100 each at a premium of Rs. 49,900 per share.)

340.00 340.00

445, (Previous Year – 585) 20% Optionally Convertible Debentures of Rs. 1,000,000 each. Date of redemption 3rd May, 2010**. (Convertible into 8,900 (Previous Year 11,700), 35% Redeemable Non Cumulative Non Convertible Preference Shares of Rs. 100 each at a premium of Rs. 49,900 per share.)

4,450.00 5,850.00

51, (Previous Year – 51) Nifty Linked Optionally Convertible Debentures of Rs. 1,000,000 each. Date of redemption 25th July, 2011*. (Convertible into 1,020, 35% Redeemable Non Cumulative Non Convertible Preference Shares of Rs. 100 each at a premium of Rs. 49,900 per share.)

510.00 510.00

51, (Previous Year – 51) Nifty Linked Optionally Convertible Debentures of Rs. 1,000,000 each. Date of redemption 26th August, 2011*. (Convertible into 1,020, 35% Redeemable Non Cumulative Non Convertible Preference Shares of Rs. 100 each at a premium of Rs. 49,900 per share.)

510.00 510.00


2,710.00 3,060.00

150, (Previous Year – 150) Nifty Linked Optionally Convertible Debentures of Rs. 1,000,000 each. Date of redemption 23rd August, 2011*. (Convertible into 3,000, 35% Redeemable Non Cumulative Non Convertible Preference Shares of Rs. 100 each at a premium of Rs. 49,900 per share.)

1,500.00 1,500.00

78, (Previous Year – 78) Nifty Linked Optionally Convertible Debentures of Rs. 1,000,000 each. Date of redemption 6th September, 2011*. (Convertible into 1,560, 35% Redeemable Non Cumulative Non Convertible Preference Shares of Rs. 100 each at a premium of Rs. 49,900 per share.)

780.00 780.00

44, (Previous Year – 44) Nifty Linked Optionally Convertible Debentures of Rs. 1,000,000 each. Date of redemption 12th September, 2011*. (Convertible into 880, 35% Redeemable Non Cumulative Non Convertible Preference Shares of Rs. 100 each at a premium of Rs. 49,900 per share.)

440.00 440.00

49, (Previous Year – 49) Nifty Linked Optionally Convertible Debentures of Rs. 1,000,000 each. Date of redemption 16th October, 2011*. (Convertible into 980, 35% Redeemable Non Cumulative Non Convertible Preference Shares of Rs. 100 each at a premium of Rs. 49,900 per share.)

490.00 490.00

20,321.50 32,563.00

Less : Discount Accreted 1,031.96 2,283.97

Total 19,289.54 30,279.03

* 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.

During the year the maximum amount of Commercial paper outstanding was Rs. 45,000 Lacs (Previous Year Rs. 111,533 Lacs).


Sch

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– F

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Ass

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(Rs.

in L

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Add

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year

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Apr

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the

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Particulars Face Value

Rs.

31st March, 2010

Quantity

31st March, 2009

Quantity

31st March, 2010

Rs. in Lacs

31st March, 2009

Rs. in Lacs

Schedule 6 – InvestmentsLong Term Investments (Other than Trade)(At Cost, less diminution other than temporary in nature)QuotedEquity Shares ING Vysya Bank Limited 10 548,386 548,386 824.02 824.02 UnquotedEquity Shares Bombay Stock Exchange Limited 1 260,000 260,000 262.75 262.75 Companies under the same Management: Kotak Mahindra Capital Company Limited 10 990,015 990,015 21,000.00 21,000.00 Kotak Mahindra Prime Limited 10 1,712,600 1,479,300 27,080.69 18,331.94 Kotak Forex Brokerage Limited 10 1,650,000 1,250,000 165.00 125.00 Investment in Subsidiary Kotak Mahindra Financial Services Limited (650,000 Shares of

USD 1 each) incorporated in Dubai, U.A.E. 650,000 — 304.08 —

Preference Shares Companies under the same Management: 8.5% Preference Share of Kotak Mahindra Asset Management

Company Limited10 8,500,000 — 850.00 —

14,311,001 4,527,701 50,486.54 40,543.71 Debentures Companies under the same Management: 8.5% Unsecured Fully Convertible Debentures of Kotak Forex

Brokerage Limited, convertible into equity shares of Rs. 10 each on 26th March, 2012

100,000 70 125 70.00 125.00

Venture Capital Fund: Kotak Alternate Opportunities India Fund — — 1,395.45 940.00

70 125 1,465.45 1,065.00 Total Long Term Investments 14,311,071 4,527,826 51,951.99 41,608.71 Less : Provision for Diminution in Value of Investment (74.73) (98.73)

(A) 14,311,071 4,527,826 51,877.26 41,509.98 Current Investments (Other than Trade) (At cost or fair value, whichever is lower) (Refer Note 8 on Schedule 20)QuotedEquity Shares KPR Mill Limited 10 — 1,700,000 — 348.80 Debentures 8.15% Unsecured Non Convertible Debentures of Kotak Mahindra Prime Limited (Date of Redemption on 23rd November, 2011)

1,000,000 300 — 3,000.00 —

7.10% Unsecured Non Convertible Debentures of Kotak Mahindra Prime Limited (Date of Redemption on 22nd October, 2010)

1,000,000 250 — 2,500.00 —

UnquotedDebentures 13.25% Unsecured Non Convertible Debentures of Kotak Mahindra Prime Limited (Date of Redemption 26th November, 2009, 5th December, 2009 and 10th December, 2009)

1,000,000 — 1,000 — 10,000.00

9.75% Unsecured Non Convertible Debentures of Kotak Mahindra Prime Limited (Date of Redemption on 23rd March, 2010)

1,000,000 — 500 — 5,000.00

(B) 550 1,701,500 5,500.00 15,348.80 Total (A+B) 14,311,621 6,229,326 57,377.26 56,858.78 Aggregate Value of Quoted Investments – At Book Value 6,324.02 1,172.82 – At Market Value (Value of debentures which are not traded have been taken at Book Value)

7,032.46 1,049.51

Aggregate Value of Unquoted Investments – At Book Value 51,053.24 55,685.96



Face Value

31st March,2010

Quantity

31st March,2009

Quantity

31st March, 2010

Rs. in Lacs

31st March,2009

Rs. in Lacs

Schedule 7 – Stock in Trade(At cost or market value whichever is lower) Equity SharesAhluwalai Contracts India Limited 2 — 14,977 — 4.79 Amara Raja Batteries Limited 2 — 40,000 — 14.66 Amtek Auto Limited* 2 1 1 — — Aurobindo Pharma Limited 5 — 46,603 — 76.97 Axis Bank Limited 10 3,150 — 36.80 — Bajaj Auto Limited 10 1,600 — 32.19 — Bajaj Hindusthan Limited 1 5,700 — 7.73 — Carborundum Universal Limited 2 13,000 — 18.99 — Chennai Petroleum Corporation Limited 10 8,000 203,900 21.94 181.37 Cairn India Limited 10 — 19,300 — 30.19 Consolidated Consotorium of India 10 — 2,307 — 2.67 Coromandel International Limited 2 20,614 — 55.32 — Entertainment Network (India) Limited 10 43,403 — 87.78 — GMR Infrastructure Limited 2 7,500 — 4.67 — GVK Power & Infrastructure Limited 1 — 356,250 — 67.50 Godawari Power And Ispat Limited 10 9,008 — 23.65 — Grasim Industries Limited 10 176 — 4.95 — Greaves Cotton Limited 10 40,366 — 110.46 — Gujarat NRE Coke Limited 10 40,000 — 32.14 — Hero Honda Motors Limited 2 200 — 3.88 — Hindalco Industries Limited 1 13,900 — 20.63 — Hindustan Construction Company Limited 1 42,000 — 56.32 — Hindustan Oil Exploration Company Limited 10 — 239,085 — 142.49 Hindustan Zinc Limited 10 — 7,100 — 24.48 Housing Development Finance Corporation Limited 10 — 2,577 — 36.39 HDFC Bank Limited 10 2,200 — 42.12 — ICICI Bank Limited 10 2,450 — 23.30 — ICRA Limited 10 — 9,049 — 39.56 Infrastructure Development Finance Company Limited 10 — 49,000 — 26.51 IFB Industries Limited 10 20,000 — 17.94 — Infosys Technologies Limited 5 100 2,500 2.62 29.09 Indian Overseas Bank 10 — 71,227 — 31.53 ING Vysya Bank Limited 10 — 12,156 — 15.18 IRB Infrastructure Developers Limited 10 — 33,781 — 27.38 Jindal Steel & Power Limited 1 1,920 — 13.50 — JSW Energy Limited 10 100,000 — 111.85 — Kalpataru Power Transmission Limited 10 — 2,959 — 9.57 Kirloskar Oil Engines Limited 2 17,000 — 27.11 — Kolar Biotech Limited 1 10,000 10,000 — — Larsen & Tourbo Limited 2 1,000 — 16.30 — Maruti Suzuki India Limited 5 2,800 — 38.82 — Mahindra & Mahindra Limited 10 624 — 2.97 — Monnet Ispat Limited 10 10,704 — 45.57 — Moser-Baer (India) Limited 10 29,700 — 21.68 — Motherson Sumi Systems Limited 1 77,000 9,516 95.44 5.80 Mphasis Limited 10 — 127,386 — 241.90 Nagarjuna Agrichem Limited 10 5,500 — 14.29 — Noida Toll Bridge Company Limited 10 — 246,074 — 52.61 Petronet LNG Limited 10 — 286,900 — 102.93 Piramal Healthcare Limited 2 — 1,600 — 3.13 Polaris Software Lab Limited 5 — 20,000 — 9.01 Subtotal 529,616 1,814,248 990.96 1,175.71



Face Value

31st March,2010

Quantity

31st March,2009

Quantity

31st March, 2010

Rs. in Lacs

31st March,2009

Rs. in Lacs

Schedule 7 – Stock in Trade (Contd.)

(At cost or market value whichever is lower)

Prism Cement Limited 10 — 50,000 — 10.63

Punj Lloyd Limited 2 10,500 — 18.62 —

Punjab National Bank 10 1,800 — 18.10 —

Ranbaxy Laboratories Limited 5 47,200 — 221.62 —

Rane Holdings Limited 10 10,500 — 12.40 —

Reliance Communications Limited 5 8,400 — 14.25 —

Reliance Infrastructure Limited 10 552 — 5.51 —

Reliance Natural Resources Limited 5 3,576 — 2.23 —

Sadbhav Engineering Limited 10 — 12,014 — 38.23

Shanthi Gears Limited 1 — 7,319 — 1.88

Spicejet Limited 10 258,000 — 146.79 —

State Bank of India 10 264 — 5.45 —

Suzlon Energy Limited 2 30,000 — 21.56 —

SBI Home Finance Limited 10 300 300 — —

Tamil Nadu Newsprint & Papers Limited 10 — 444 — 0.25

Tata Power Company Limited 10 — 3,600 — 24.30

Tata Steel Limited 10 24,448 — 154.52 —

Titan Industries Limited 10 3,000 — 53.57 —

The Phoenix Mills Limited 2 23,335 173,663 43.37 116.00

Torrent Pharmaceuticals Limited 5 2,762 — 12.16 —

Torrent Power Limited 10 — 49,500 — 34.58

Triveni Engineering & Industries Limited 1 11,550 — 15.77 —

Ultratech Cement Limited 10 — 28,609 — 144.11

Union Bank of India 10 10,588 — 30.95 —

Unitech Limited 2 9,000 — 6.55 —

United Spirits Limited 10 250 — 3.30 —

Wabco-Tvs (India) Limited 5 3,767 — 16.18 —

Subtotal for equity shares (A) 989,408 2,139,697 1,793.86 1,545.69

Exchange Traded Fund

Kotak Mutual Fund – Gold Exchange Traded Fund 100 882 213 14.17 3.18

Kotak Mahindra Mutual Fund – PSU Bank Exchange Traded Fund 10 9,793 3,043 33.21 4.76

Kotak Mahindra Mutual Fund – Kotak Sensex ETF 10 9,285 120,502 16.23 116.89

Kotak Mahindra Mutual Fund – Kotak Nifty ETF 10 13,268 — 69.35 —

Subtotal for exchange traded fund (B) 33,228 123,758 132.96 124.83

Total (A+B) 1,022,636 2,263,455 1,926.82 1,670.52

Aggregate Value of Stock-in-Trade

– At Book Value 1,926.82 1,670.52

– At Market Value 1,986.33 1,785.56

Refer Note 6 on Schedule 20

* Less than Rs. 0.01 Lac





Schedule 8 – Sundry Debtors

Sundry Debtors:

Considered Good*

Over Six Months 881.54 1,749.50

Others** 52,622.95 19,877.06

Considered Good 53,504.49 21,626.56

Considered Doubtful

Over Six Months 1,651.80 1,825.74

Others 495.86 234.59

Considered Doubtful 2,147.66 2,060.33

Sundry Debtors 55,652.15 23,686.89

Less : Provision for Doubtful Debts 2,147.66 2,060.33

Total 53,504.49 21,626.56

(Refer note 11 on Schedule 20)

* Sundry debtors – considered good include secured debtors Rs. 50,804.58 Lacs (Previous Year Rs. 18,577.62 Lacs)

** Due from Directors Rs. Nil (Previous Year Rs. Nil), maximum amount outstanding during the year from Directors Rs. 0.36 Lac (Previous Year Rs. 2.79 Lacs)

Schedule 9 – Cash and Bank Balances

Cash on Hand 12.43 14.86

Balances with Scheduled Banks in:

Current Account 552.43 296.41

Fixed Deposit Account (Refer Note 12 on Schedule 20) 156,454.85 139,020.84

Total 157,019.71 139,332.11

Schedule 10 – Other Current Assets

Interest Accrued on Fixed Deposits 1,255.64 1,652.87

Interest Accrued on Debentures 179.64 459.20

Dividend Accrued on Preference Shares 72.25 —

Total 1,507.53 2,112.07




Rs. in Lacs Rs. in Lacs 31st March, 2009

Rs. in Lacs

Schedule 11 – Loans and Advances(Unsecured, unless otherwise stated, considered good)Loans 47.14 54.54 Advances Recoverable in Cash or Kind or for Value to be Received 848.56 937.30 Capital Advances 189.29 5,542.07 Deposits with Exchanges/Depositories 287.00 312.22 Deposits – Others 818.01 1,337.21 Initial Margin – Equity Derivative Instrument 2,621.10 3,467.99 (Refer Note 1 J 2(a) on Schedule 20)Margin Deposits – Equity Derivative Instrument 2,569.51 3,747.74 (Refer Note 1 J 2(a) on Schedule 20)Mark-to-Market Margin – Equity Index/Stock Futures 33.35 66.06 (Refer Note 1 J 1 on Schedule 20)Less : Provision for Loss (Refer Note 1 J 1 on Schedule 20) 33.35 — 66.06 —Equity Index/Stock Option Premium (Refer Note 1 J 2(b) on Schedule 20)

2,450.03 952.91

Less : Provision for Loss 172.32 2,277.71 44.48 908.43 (Refer Note 1 J 1 on Schedule 20)Advance Tax (Net of Provision for Current Taxation and 7.04 1,710.40 Fringe Benefits Tax – Rs. 41,660.45 Lacs (Previous Year Rs. 48,967.01 Lacs)) Total 9,665.36 18,017.90

Schedule 12 – LiabilitiesCurrent LiabilitiesSundry Creditors (includes Trade Payables)*Micro and Small enterprises (Refer Note 24 on Schedule 20) 11.65 — Others 107,348.98 77,131.52 Income Received In Advance 212.41 176.97 Book Overdraft from Banks — 3.36 Security Deposits 2,327.76 1,757.42 Other Liabilities 211.31 399.86 Interest Accrued But Not Due 333.26 587.86 Equity Index/Stock Option Premium 3,521.87 2,909.33 (Refer Note 1 J 2(b) on Schedule 20)Add : Provision for Loss 589.48 4,111.35 — 2,909.33 (Refer Note 1 J 1 on Schedule 20)Mark-to-Market Margin – Equity Index/Stock Futures 27.02 152.00 (Refer Note 1 J 1 on Schedule 20)Embedded Option Value 2,007.41 993.22 Mark to Market – Embedded Option (Refer Note 1 J 1 on Schedule 20) — 2,335.32 Total 116,591.15 86,446.86

* There are no amounts due and outstanding to be credited to Investor Education and Protection Fund.

Schedule 13 – ProvisionsCompensated Absences and Leave Encashment 701.44 619.02 Gratuity (Refer Note 5(a) on Schedule 20) 535.70 468.75 Contingencies (Refer Note 13 on Schedule 20) 3,019.19 2,772.79

Total 4,256.33 3,860.56


Schedules forming part of the Profit and Loss Account (Contd.)


Rs. in Lacs Rs. in Lacs 31st March, 2009

Rs. in Lacs

Schedule 14 – Income from ServicesIncome from Brokerage – Gross {(Net of brokerage Income pertaining to earlier years written off Rs. 35.39 Lacs (Previous Year Rs. 97.54 Lacs)} 52,506.02 40,564.97 {Tax deducted at source Rs. 423.39 Lacs (Previous Year Rs. 392.82 Lacs)}Less : Sub Brokerage/Referral Fees and Expenses 6,730.36 3,557.34

45,775.66 37,007.63 Fee Income – Gross {Refer Note 15(a) on Schedule 20} 7,307.99 7,570.84 {Tax deducted at source Rs. 31.11 Lacs (Previous Year Rs. 63.61 Lacs)}Less : Referral Fees 191.49 157.19

7,116.50 7,413.65 Total 52,892.16 44,421.28

Schedule 15 – Interest IncomeInterest on Bank Deposits 12,843.40 18,104.87 {Tax deducted at source Rs. 1,818.55 Lacs (Previous Year Rs. 4,103.30 Lacs)}Interest on Staff Loans 4.66 4.95 Interest on Debentures 1,785.03 448.70 Interest on Income Tax Refund — 2.14 Interest – Others {Net of interest Income pertaining to earlier years written off Rs. 66.87 Lacs (Previous Year Rs. 97.88 Lacs)} {Refer Note 15(b) on Schedule 20} 4,522.90 3,499.80 {Tax deducted at source Rs. 11.70 Lacs (Previous Year Rs. 20.09 Lacs)} Total 19,155.99 22,060.46

Schedule 16 – Other IncomeProfit on Trading in Securities (net) (Refer Note 9 on Schedule 20) 8,720.64 —Profit on Buyback of Debentures 192.98 —Dividend Income (Refer Note 16 on Schedule 20) 82.47 20.15 Provision of Diminution in Value of Investments written back as No Longer Required

1,361.25 —

Add/(Less) : Profit/(Loss) on sale of Investments (net) (Refer Note 17 on Schedule 20) (272.14) 1,089.11 752.50 752.50 Liabilities Written Back as no Longer Required (Refer Note 18 on Schedule 20)

161.71 2,249.14

Provision of Doubtful Debts Written Back as no Longer Required — 2,131.66 Less : Bad Debts Written Off — — 799.07 1,332.59 Profit on Foreign Exchange Transactions — 33.08 Bad Debts Recovery 550.02 —Miscellaneous Income 941.31 1,118.24 Total 11,738.24 5,505.70

Schedule 17 – PersonnelSalaries, Allowances and Bonus (Refer Note 19 on Schedule 20) 19,541.98 18,207.77 Contribution to Provident and Other Funds 718.26 930.88 Compensated Absences and Leave Encashment 205.63 123.20 Gratuity 194.36 70.12 Staff Welfare 217.56 321.31 Total 20,877.79 19,653.28 Less : Recovery of Expenses (Refer Note 20 on Schedule 20) 238.01 340.25 Total 20,639.78 19,313.03


Schedules forming part of the Profit and Loss Account (Contd.)



Schedule 18 – Interest and other Finance Charges

Interest/Discount Accretion on Debentures 1,518.37 2,409.57

Interest/Discount on Term Loan/Other Fixed Loans 289.55 4,466.34

Interest on Bank Overdraft 18.09 11.71

Bank Guarantee Commission and Other Charges 27.34 13.88

Interest – Other 316.95 390.00

Total 2,170.30 7,291.50

Schedule 19 – Other Expenses

Travelling, Conveyance and Motor Car 809.15 1,074.51

Professional and Legal 1,342.64 2,363.43

Auditors' Remuneration

Audit Fees 55.00 40.00

In Other Capacity — 10.25

Out of Pocket Expenses 0.79 0.43

Loss on Sale/Disposal of Fixed Assets (net) 107.77 77.53

Provision for Doubtful Debts 87.33 —

Provision for Contingencies (net) (Refer Note 13 on Schedule 20) 246.39 50.34

Commission to Director 10.00 10.00

Loss on Trading in Securities (net) (Refer Note 9 on Schedule 20) — 2,095.69

Repairs and Maintenance – Others 830.08 785.01

Office 257.72 273.08

Communication 1,819.23 2,361.99

Printing and Stationery 751.27 590.21

Stock Exchanges Expenses 15.01 78.82

Electricity 713.00 838.57

Membership and Subscription 681.09 660.98

Rent 3,197.07 3,733.17

Rates and Taxes 211.17 368.61

Advertising, Business Promotion and Entertainment 1,027.00 741.60

Donation 5.26 —

Securities Transaction Tax on Proprietory Trades 576.75 496.03

Bad Debts Written Off 148.76 —

Service Charges 334.08 643.17

Common Establishment Expenses – Reimbursement 3,959.50 5,034.99

Depository Charges 330.43 324.89

Stamp/Turnover/Transaction Charges (net of recovery) 517.82 1,261.07

Insurance 129.11 157.38

Loss on Account of Trades Not Confirmed by Clients, Error Trades (net) 110.83 267.07

Loss on Foreign Exchange Transactions 41.39 —

Miscellaneous 437.21 618.85

Total 18,752.85 24,957.67

Less : Recovery of Expenses (Refer Note 20 on Schedule 20) 122.47 316.58

Total 18,630.38 24,641.09


Schedules forming part of the Balance Sheet and Profit and Loss Account

Schedule 20 – 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 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 recognised when there is reasonable certainty of its ultimate realization/collection.

1. Placement and other fee based income are accounted for on the basis of the progress of the assignment.

2. 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. Interest Income is accounted on accrual basis.

4. Incentive on primary market subscription – mobilisation is accounted on the basis of intimation received by the Company.

5. 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) In case of fee based on fixed percentage of the corpus/fixed amount, income is accrued over the period of the agreement.

(b) 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.

(c) In case of an upfront non-refundable fee, income is accounted in the year of receipt.

(ii) 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. Fixed assets are stated at cost inclusive of incidental expenses less accumulated depreciation.


Schedules forming part of the Balance Sheet and Profit and Loss Account (Contd.)

2. 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 Management’s estimate of the useful lives of all the assets. Estimated useful lives over which assets are depreciated are as follows:

Leasehold Improvements Over the period of lease subject to a maximum of 6 yearsPremises 58 yearsFurniture and Fixtures 6 yearsComputers 3 yearsOffice Equipments 5 yearsMotor Vehicles 4 yearsSoftware 3 years

3. Fixed assets costing less than Rs. 5,000 are fully depreciated in the year of purchase/put to use.

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.

(b) “Equity Index/Stock Option Premium Account” represents the premium paid or received for buying or selling the options, respectively.

(c) 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.



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 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.

(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 company’s 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. 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.

M. 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.

N. 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.

O. 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.



2. Contingent Liabilities:

(a) Income tax matters in respect of which appeal is pending – Rs. Nil (Previous Year Rs. 476.01 Lacs). This is being contested by the Company and based on legal opinion received not provided for.

(b) Service tax matters in respect of which appeal is pending – Rs. 51.71 Lacs (Previous Year Rs. 41.19 Lacs). This is being disputed by the Company and hence not provided for.

(c) Capital commitments (net of advances) – Rs. 805.70 Lacs (Previous Year Rs. 1,315.87 Lacs).

(d) Claims against the Company not acknowledged as debt by the Company – Rs. 544.38 Lacs (Previous Year – Rs. 587.19 Lacs).

(e) Stamp duty payable in respect of Premises for which appeal is pending – Rs. 161.44 Lacs (Previous Year Rs. Nil). This is being disputed by the Company and hence not provided for.

Future cash outflows in respect of (a), (b), (d) and (e) above are determinable only on receipt of judgements/decisions pending with various forums/authorities.

3. (a) 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.

(b) Rent payments are recognised in the Profit and Loss Account under the head ‘Rent’ in Schedule 19.

(c) The future minimum lease payments under non-cancellable operating lease – not later than one year is Rs. 58.86 Lacs (Previous Year Rs. 618.41 Lacs) and later than one year but not later than five years is Rs. 102.89 Lacs (Previous Year Rs. 182.54 Lacs).

4. Deferred Tax:

Components of deferred tax balances as at 31st March 2010:

Particulars 31st March 2010 (Rupees in Lacs)

31st March 2009(Rupees in Lacs)

Deferred Tax Assets

Provision for Doubtful Debts and Contingencies 1,626.26 1,550.64

Provision for Gratuity 177.95 159.33

Provision for Leave Encashment 233.00 210.41

Depreciation 714.70 500.96

Interest on Debentures 769.35 395.88

Diminution in Value of Investments 24.82 488.09

Others 176.89 248.98

Total 3,722.97 3,553.79

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:-


31st March 2009 (Rupees in Lacs)

Change in Defined Benefit Obligation

Opening Defined Benefit Obligation 468.75 436.73

Current Service Cost 113.33 176.34

Interest Cost 37.71 46.35

Actuarial Losses/(Gain) 63.59 (152.57)

Liabilities Extinguished on Curtailment — —

Liabilities Extinguished on Settlements (20.40) —

Liabilities Assumed on Acquisition 6.25 (1.80)

Benefits Paid (133.53) (36.30)

Closing Defined Benefit Obligation 535.70 468.75



(ii) Reconciliation of present value of the obligation and the fair value of the plan assets

Particulars 31st March 2010(Rupees in Lacs)


Present Value of Funded Obligations — —

Fair Value of Plan Assets — —

Present Value of Unfunded Obligations 535.70 468.75

Unrecognized Past Service Cost — —

Net Liability 535.70 468.75

Amounts in the Balance Sheet:

Liabilities – Provisions (Schedule 13) 535.70 468.75

Assets — —

Net Liability 535.70 468.75

(iii) Cost recognised for the year



Current Service Cost 113.33 176.34

Interest on Defined Benefit Obligation 37.71 46.35

Expected Return on Plan Assets — —

Net Actuarial Losses/(Gains) Recognized in Year 63.59 (152.57)

Past Service Cost — —

Losses/(Gains) on “Curtailments and Settlements” (20.27) —

Losses/(Gains) on “Acquisition and Divestiture” — —

Total, Included in Schedule 17 – Personnel – Gratuity 194.36 70.12

Actual Return on Plan Assets — —

(iv) Principal actuarial assumption

Particulars Assumptions in 31st March 2010 Assumptions in 31st March 2009

Discount Rate 8.01% per annum 7.18% per annum

Salary Escalation Rate 15% per annum for first 2 years, 0% per annum for first year,

10% per annum for the next 2 years and 10% per annum for the next 2 years and

6% per annum there after 6% per annum there after

(v) Experience Adjustments for the current annual period and previous four periods






Defined Benefit Obligation 535.70 468.75 436.73 278.03 196.05

Plan Assets — — — — —

Surplus/(Deficit) (535.70) (468.75) (436.73) (278.03) (196.05)

Experience Adjustment on Plan Liabilities

57.98 (143.00) 45.34 36.64 —

Experience Adjustment on Plan Assets

— — — — —



(b) During the year, the Company has recognised the following amounts in the Profit and Loss Account:



Employers Contribution to Provident Fund 689.74 875.85

Superannuation Fund 8.00 10.00

Employees State Insurance Corporation 20.52 45.03

Total 718.26 930.88

6. Securities, which are not registered in the name of the Company, are held by the Company with valid transfer documents.

7. Securities received from clients as collateral for margins are held by the Company in its own name in a fiduciary capacity.

8. Current Investments Purchased/Allotted and Sold/Redeemed during the year:

Face Value Purchased/ Allotted

Sold/ Redeemed

Mutual Fund Schemes:

Kotak Mahindra Mutual Fund – Kotak Liquid (Institutional Premium) – Growth

10 4,864,766,927 4,864,766,927

Kotak Mahindra Mutual Fund – Kotak Floater Long Term – Growth 10 1,623,501,211 1,623,501,211

Non Convertible Debentures:

Shriram Transport Finance Company Limited 1,000 1,044,017 1,044,017

L&T Finance Limited 1,000 612,319 612,319

9. Quantitative Information in Respect of Trading in Securities#

31st March 2010 31st March 2009

QuantityNos./Kgs.

Value(Rupees in Lacs)

QuantityNos./Kgs.

Value(Rupees in Lacs)

Opening Stock (A)

Equity Shares 2,253,154 1,670.52 560,000 4,497.08

Total (A) 2,253,154 1,670.52 560,000 4,497.08

Purchases

Equity Shares 51,989,089 131,499.51 9,390,845 14,620.91

Gold 159 2,564.21 69 803.87

Bonds and Other Securities 3,165,002 3,211.38 4,295,023 3,967.38

Total (B) 55,154,250 137,275.10 13,685,937 19,392.16

Sales

Equity Shares 53,229,908 133,876.85 7,697,691 17,201.14

Gold 159 2,557.10 69 798.71

Bonds and Other Securities 3,165,002 3,217.99 4,295,023 3,979.48

Total (C) 56,395,069 139,651.94 11,992,783 21,979.33

Closing Stock (D)

Equity Shares 1,012,335 1,926.82 2,253,154 1,670.52

Total (D) 1,012,335 1,926.82 2,253,154 1,670.52

Profit/(Loss) on Trading in Options/ Futures (Net) (E)

— 6,087.50 — (1,856.30)

Profit/(Loss) (D+C-B-A+E) 8,720.64 (2,095.69)

# Transactions and stocks on account of error trades/trades not confirmed by clients have not been considered.



10. (a) Outstanding Future Contracts as on 31st March 2010:(Rupees in Lacs)

Particulars 31st March 2010 31st March 2009

Type of Derivative No. of Contracts

No. of Units

Notional Amount

No. of Contracts

No. of Units

Notional Amount

S&P CNX Nifty Futures 2,007 100,350 5,284.88 2,478 123,900 3,819.74

Bank Nifty Futures — — — 140 7,000 286.52

Stock Futures 3,058 3,061,738 13,410.78 1,577 3,297,339 5,319.16

(b) Outstanding Option Contracts as on 31st March, 2010:(Rupees in Lacs)

Particulars 31st March 2010 31st March 2009

Type of Derivative No. of Contracts

No. of Units

Total Premium

Carried Forward Net of Provisions

Made

No. of Contracts

No. of Units

Total Premium

Carried Forward Net of Provisions

Made

S&PCNX Nifty Options Long 12,405 620,250 2,276.12 33,501 1,675,050 905.77

S&PCNX Nifty Options Short 10,365 518,250 (4,108.69) 33,798 1,689,900 (2,906.44)

Stock Options Long 14 32,318 1.59 27 8,100 2.66

Stock Options Short 36 88,218 (2.66) 51 15,300 (2.89)

11. 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 Rs. 5,652.58 Lacs (Previous Year Rs. 8,797.58 Lacs) on account of loans granted under margin trading facility to clients against pledge of securities.

12. Fixed deposits with scheduled banks include Rs. 125,640.72 Lacs (Previous Year Rs. 92,565.78 Lacs) which is under the lien of National Securities Clearing Corporation Limited and Rs. 11,891.45 Lacs (Previous Year Rs. 12,140.68 Lacs) which is under the lien of Bombay Stock Exchange Limited.

13. Provision for Contingencies:(Rupees in Lacs)

Nature of Liability Provision as on 1st April 2009

Addition Amount Used

Unused Amount Reversed

Provision as on 31st March 2010

Stamp Duty on Trades 2,772.79 1,159.19 — 912.79 3,019.19

Total 2,772.79 1,159.19 — 912.79 3,019.19

Previous Year 2,722.45 776.86 — 726.52 2,772.79

Based on legal opinion, the Management is of the view that certain provisions for earlier years are no longer required and have reversed Rs. 912.79 Lacs (Previous Year Rs. 726.52 Lacs).

14. Until 31 March 2008, the Company was recognising debenture liability at cost. The return on these debentures is linked to non interest benchmark based on occurance of certain events. The interest on these debentures was accounted irrespective of the occurance of the said event. From 1 April 2008, the Company has adopted an accounting policy in relation to structured liabilities. The derivative embedded in such structured liabilities is separated and accounted for as per accounting policy in Note 1 E and 1 J. The probability of interest payout is considered in the embedded derivative valuation.



15. (a) Fee Income:-

Particulars 31st March 2010(Rupees in Lacs)


Client Money Management Services 3,954.04* 4,037.50

Depository Fees 2,759.63 2,324.95

Loan Syndication and Arrangement Fees 11.39 84.76

Advisory Fees 158.96 418.18

Other Fees 423.97 705.45

Total 7,307.99 7,570.84

* Net of Income pertaining to earlier years written off Rs. Nil (Previous Year Rs. 11.71 Lacs).

(b) Interest Income – Others comprises interest on delayed payments from clients.

16. Dividend income represents dividend on current investments (other than trade) Rs. 27.91 Lacs (Previous Year Rs. Nil) and on stock in trade Rs. 54.56 Lacs (Previous Year Rs. 20.15 Lacs).

17. Loss on sale of investments (net) represents loss on sale of current investments (net) (other than trade) Rs. 272.14 Lacs (Previous Year Profit (net) of Rs. 752.50 Lacs).

18. Liabilities written back comprises of provision no longer required in respect of sub brokerage Rs. 48.99 Lacs (Previous Year Rs. 429.54 Lacs) and expenses Rs. 112.72 Lacs (Previous Year Rs. 1,819.60 Lacs).

19. During the year the Company has paid Rs. 519.19 Lacs (Previous Year Rs. 1,534.40 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.

20. Recovery of expenses in Schedule 17 and Schedule 19 are amounts recovered from fellow subsidiaries towards the value of costs apportioned of the Company’s employees and facilities in accordance with the agreements on allocation of expenses with holding company, fellow subsidiary and associate companies.

21. Earnings per share (Face value Rs. 10)

Earnings 2009-10 2008-09

Net profit for the year (Rupees in Lacs) 26,010.04 10,648.38

Weighted average number of shares (in Lacs) 16 16

Earnings per share (Basic and Diluted) – in Rupees 1,625.63 665.52

22. (a) Managerial Remuneration:-

Particulars 2009-2010 (Rupees in Lacs)

2008-2009 (Rupees in Lacs)

Salaries and Incentives # 230.93 749.06

Contribution to Provident and Other Funds 11.28 11.28

Employee Stock Option Plan (Refer Note 19) 174.83 313.44

Commission to Non Whole-Time Director 10.00 10.00

Total 427.04 1,083.78

# 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:

Particulars

2009-2010(Rupees in Lacs)

2008-2009(Rupees in Lacs)

Profit Before Tax 40,387.62 16,677.34

Add:

Depreciation/Amortisation as per Profit and Loss Account 1,958.31 2,628.50

Provision for Doubtful Debts 87.33 —

Provision for Contingencies (Net) 246.39 50.34

Diminution in Value of Investments — 1,435.98

Directors Remuneration 427.04 1,083.78

43,106.69 21,875.94

Less:

Depreciation Under Section 350 of Companies Act 1,958.31 2,628.50

Provision of Diminution in Value of Investments written back as no longer required (Net of Loss on sale of investments)

1,089.11 —

Profit on Sale of Investments (Net) — 752.50

Profit on Buyback of Debentures 192.98 —

Provision for Doubtful Debts Written Back as no Longer Required — 1,332.59

Liabilities Written Back as no Longer Required (Net) 161.71 2,249.14

Net Profit 39,704.58 14,913.21

Commission Payable to Non Whole-Time Director @1% 397.05 149.13

Commission restricted to 10.00 10.00

23. (a) Expenditure in Foreign Currency (on accrual basis):-

(i) Travelling Rs. 16.72 Lacs (Previous Year Rs. 12.19 Lacs).

(ii) Membership and Subscription Rs. 83.12 Lacs (Previous Year Rs. 65.86 Lacs).

(iii) Conference and Meetings Rs. 151.41 Lacs (Previous Year Rs. 280.25 Lacs).

(iv) Software Rs. 14.68 Lacs (Previous Year Rs. 27.16 Lacs).

(v) Business Promotion Rs. 26.69 Lacs (Previous Year Rs. 61.19 Lacs).

(vi) Common Establishment Expenses – Reimbursement Rs. 578.92 Lacs (Previous Year Rs. 1,244.60 Lacs).

(vii) Professional Charges Rs. Nil (Previous Year Rs. 32.40 Lacs).

(viii) Communication Rs. 82.83 Lacs (Previous Year Rs. 27.78 Lacs).

(ix) Data Processing Charges Rs. 17.38 Lacs ( Previous Year Rs. 14.22 Lacs).

(x) Salary Rs. 49.15 Lacs (Previous Year Rs. 55.43 Lacs).

(xi) Branch Expenses Rs. 82.59 Lacs (Previous Year Rs. 31.20 Lacs).

(xii) Others Rs. Nil (Previous Year Rs. 1.02 Lacs).

(b) Earnings in Foreign Currency (on accrual basis):-

(i) Advisory Fees Rs. 142.71 Lacs (Previous Year Rs. 418.18 Lacs).

(ii) Interest Income Rs. 11.69 Lacs (Previous Year Rs. 4.79 Lacs).

(iii) Mutual Fund Commission Rs. 0.91 Lacs (Previous Year Rs. Nil).

(c) Remittance in Foreign Currency:-

Towards formation of subsidiary Rs. 304.08 Lacs (Previous Year Rs. Nil).

24. 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.

25. 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.



26. Segment Information for the year ended 31st March 2010

(a) Information about Primary Business Segments(Rupees in Lacs)

Particulars Broking Trading and Principal

Investments

Portfolio Management

Unallocated Total

Segment RevenueIncome from external customers 55,349.87 24,325.16 3,949.65 — 83,624.68Previous year 44,594.66 19,535.15 5,557.96 50.53 69,738.30Income from inter segments — — — — —Previous year — — — — —Liabilities written back as no longer required 55.51 — — 106.20 161.71Previous year 1,799.52 — — 449.62 2,249.14Total 55,405.38 24,325.16 3,949.65 106.20 83,786.39Previous year 46,394.18 19,535.15 5,557.96 500.15 71,987.44Segment result 18,353.68 19,229.25 2,706.14 98.55 40,387.62Previous year 6,497.96 7,622.04 2,098.07 459.27 16,677.34Income Tax – Current, Deferred and Fringe Benefit Tax — — — 14,377.58 14,377.58Previous year — — — 6,028.96 6,028.96Net Profit — — — — 26,010.04Previous year — — — — 10,648.38Other InformationCarrying amount of segment assets 55,789.08 225,329.37 115.31 10,945.41 292,179.17Previous year 25,533.29 208,098.59 171.13 12,951.76 246,754.77Carrying amount of segment liabilities 111,397.40 26,624.19 196.97 2,759.49 140,978.05Previous year 80,999.25 38,237.36 29.32 2,297.76 121,563.69Cost to acquire tangible fixed assets 589.89 48.26 21.97 5,787.76 6,447.88Previous year 1,188.13 2.63 84.54 585.33 1,860.63Depreciation/Amortisation 1,131.42 15.96 38.10 772.83 1,958.31Previous year 1,648.94 11.11 84.95 883.50 2,628.50

(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) Unallocated revenue consists of:



Fee Income — 43.93Interest Income — 6.60Liabilities Written Back as no Longer Required 106.20 449.62Miscellaneous Income — —Total 106.20 500.15

(iii) Unallocated expenses comprise of general administrative expenses and taxation provided at an enterprise level.

(iv) Segment assets comprise mainly of trade and other receivables, stock-in-trade, accrued income receivable and advances. Unallocated assets represent mainly fixed asset, deferred tax assets and loans and advances. Segment liabilities include loans, trade and other payables and sundry creditors. Unallocated liabilities mainly include retirement benefits, outstanding expenses and statutory liabilities.



27. 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 Related Party Holding Company 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 48.21% of the equity share capital of KMBL

Subsidiary Kotak Mahindra Financial Services Limited, Dubai

B. Other Related Parties: (i) Fellow Subsidiaries: Kotak Mahindra Capital Company Limited

Kotak Mahindra Prime LimitedKotak Mahindra Asset Management Company LimitedKotak Forex Brokerage LimitedKotak Mahindra International Limited Kotak Mahindra Investments Limited

Kotak Investment Advisors LimitedKotak Mahindra Old Mutual Life Insurance Company Limited

(ii) Key management personnel Mr. Uday S. Kotak, Non Executive ChairmanMr. Narayan S. A., Managing DirectorMs. Falguni Nayar, Non Executive DirectorMr. C. Jayaram, Non Executive DirectorMr. D. Kannan, Executive DirectorMr. Vikram Sud, Non Executive DirectorMr. Shivaji Dam, Independent Director (up to 25th July 2008)

(iii) Relatives of key management Personnel Mr. A. K. S. ManiMrs. Rekha NarayanMr. Sanjay NayarMrs. Rashmi MehtaMr. Hemant Mehta Mr. Suresh Kotak Mrs. Indira KotakMaster Jay KotakMaster Dhawal KotakMrs. N. RajambalMr. D. G. SubramanianMs. Lakshmi S.Mrs. Shalini SudMrs. Suchandra Dam

(iv) Enterprises over which Director/key management personnel/relatives of key management personnel have significant influence

Aero Agencies Limited Komaf Financial Services LimitedKotak Commodity Services LimitedInfina Finance Private LimitedAhmedabad Commodity Exchange Limited

(v) 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 LimitedKotak Alternate Opportunities India Fund managed by Kotak Investment Advisors Limited.



(Amount in Lacs)

Nature of Transactions Name of Related Party 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

Grand Total

Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year

Finance

Interest Paid on Margin Money

Kotak Mahindra Investments Limited

— — — — 11.42 33.62 — — — — — — 11.42 33.62

Kotak Mahindra Prime Limited

— — — — 31.61 92.33 — — — — — — 31.61 92.33

Infina Finance Pvt. Ltd. — — — — — — — — — — 43.64 — 43.64 —

Interest Paid on Margin Money Total

— — — — 43.03 125.95 — — — — 43.64 — 86.67 125.95

Debentures Taken Kotak Mahindra Prime Limited

— — — — 5,500.00 15,000.00 — — — — — — 5,500.00 15,000.00

Debentures Taken Total — — — — 5,500.00 15,000.00 — — — — — — 5,500.00 15,000.00

Debentures Redeemed/Converted

Kotak Forex Brokerage Limited

— — — — 55.00 — — — — — — — 55.00 —


— — — — 5,000.00 — — — — — — — 5,000.00 —

Debentures Redeemed/Converted Total

— — — — 5,055.00 — — — — — — — 5,055.00 —

Sale of Warrants/Debentures

Kotak Mahindra Bank Limited

19,284.70 — — — — — — — — — — — 19,284.70 —

Sale of Warrants/Debentures Total

19,284.70 — — — — — — — — — — — 19,284.70 —

Dividend on Preference shares

Kotak Mahindra Asset Management Company Limited

— — — — 72.25 — — — — — — — 72.25 —

Dividend on Preference shares Total

— — — — 72.25 — — — — — — — 72.25 —

Investments Kotak Mahindra Financial Services Limited

— — 304.08 — — — — — — — — — 304.08 —

Kotak Alternative Oppurtunties India Fund

— — — — 455.45 200.00 — — — — — — 455.45 200.00


— — — — 40.00 — — — — — — — 40.00 —


— — — — 8,748.75 781.30 — — — — — — 8,748.75 781.30

Investments Total — — 304.08 — 9,244.20 981.30 — — — — — — 9,548.28 981.30

Deposits Redeemed Kotak Mahindra Old Mutual Life Insurance Limited

— — — — 5.00 0.90 — — — — — — 5.00 0.90

Deposits Redeemed Total

— — — — 5.00 0.90 — — — — — — 5.00 0.90

Purchase of Units of Exchange Traded Fund

Kotak Mahindra Mutual Fund

— — — — 9,875.89 4,034.59 — — — — — — 9,875.89 4,034.59

Purchase of Units of Exchange Traded Fund Total

— — — — 9,875.89 4,034.59 — — — — — — 9,875.89 4,034.59

Following transactions were carried out with related parties in the ordinary course of business


(Amount in Lacs)






Grand Total


Finance

Interest Paid on Margin Money


— — — — 11.42 33.62 — — — — — — 11.42 33.62


— — — — 31.61 92.33 — — — — — — 31.61 92.33


Interest Paid on Margin Money Total

— — — — 43.03 125.95 — — — — 43.64 — 86.67 125.95

Debentures Taken Kotak Mahindra Prime Limited

— — — — 5,500.00 15,000.00 — — — — — — 5,500.00 15,000.00

Debentures Taken Total — — — — 5,500.00 15,000.00 — — — — — — 5,500.00 15,000.00

Debentures Redeemed/Converted


— — — — 55.00 — — — — — — — 55.00 —


— — — — 5,000.00 — — — — — — — 5,000.00 —

Debentures Redeemed/Converted Total

— — — — 5,055.00 — — — — — — — 5,055.00 —

Sale of Warrants/Debentures


19,284.70 — — — — — — — — — — — 19,284.70 —

Sale of Warrants/Debentures Total

19,284.70 — — — — — — — — — — — 19,284.70 —

Dividend on Preference shares


— — — — 72.25 — — — — — — — 72.25 —

Dividend on Preference shares Total

— — — — 72.25 — — — — — — — 72.25 —


— — 304.08 — — — — — — — — — 304.08 —


— — — — 455.45 200.00 — — — — — — 455.45 200.00


— — — — 40.00 — — — — — — — 40.00 —


— — — — 8,748.75 781.30 — — — — — — 8,748.75 781.30

Investments Total — — 304.08 — 9,244.20 981.30 — — — — — — 9,548.28 981.30

Deposits Redeemed Kotak Mahindra Old Mutual Life Insurance Limited

— — — — 5.00 0.90 — — — — — — 5.00 0.90

Deposits Redeemed Total

— — — — 5.00 0.90 — — — — — — 5.00 0.90

Purchase of Units of Exchange Traded Fund


— — — — 9,875.89 4,034.59 — — — — — — 9,875.89 4,034.59

Purchase of Units of Exchange Traded Fund Total

— — — — 9,875.89 4,034.59 — — — — — — 9,875.89 4,034.59




(Amount in Lacs)






Grand Total


Deposits Taken Kotak Commodity Services Ltd.

— — — — — — — — — — 3.74 — 3.74 —

Ahmedabad Commodity Exchange Limited

— — — — — — — — — — 5.87 — 5.87 —

Deposits Taken Total — — — — — — — — — — 9.61 — 9.61 —

Sales/Redeemption of Units of Exchange Traded Funds


— — — — 9,990.24 3,929.65 — — — — — — 9,990.24 3,929.65

Sales/Redeemption of Units of Exchange Traded Funds Total

— — — — 9,990.24 3,929.65 — — — — — — 9,990.24 3,929.65

Purchase of Preference shares

Komaf Financial Services Ltd.

— — — — — — — — — — 894.34 — 894.34 —

Purchase of Preference shares Total

— — — — — — — — — — 894.34 — 894.34 —

Purchase of Equity Shares Kotak Mahindra Bank Limited

— 2,510.07 — — — — — — — — — — — 2,510.07


— — — — — 781.30 — — — — — — — 781.30

Purchase of Equity Shares Total

— 2,510.07 — — — 781.30 — — — — — — — 3,291.37

Sale of Equity Shares Kotak Mahindra Capital Company Limited

— — — — 916.39 — — — — — — — 916.39 —

Sale of Equity Shares Total

— — — — 916.39 — — — — — — — 916.39 —

Fixed Deposits Placed during the Year


196,556.40 238,638.87 — — — — — — — — — — 196,556.40 238,638.87

Fixed Deposits Placed during the Year Total

196,556.40 238,638.87 — — — — — — — — — — 196,556.40 238,638.87

Fixed Deposits Repaid during the Year


176,739.84 314,288.91 — — — — — — — — — — 176,739.84 314,288.91

Fixed Deposits Repaid during the Year Total

176,739.84 314,288.91 — — — — — — — — — — 176,739.84 314,288.91

Interest Received on Fixed Deposits


12,697.30 13,956.14 — — — — — — — — — — 12,697.30 13,956.14

Interest Received on Fixed Deposits Total

12,697.30 13,956.14 — — — — — — — — — — 12,697.30 13,956.14

Interest on Debentures Recd.


— — — — 10.56 10.62 — — — — — — 10.56 10.62


— — — — 640.19 438.08 — — — — — — 640.19 438.08

Interest on Debentures Recd. Total

— — — — 650.75 448.70 — — — — — — 650.75 448.70


(Amount in Lacs)






Grand Total


Deposits Taken Kotak Commodity Services Ltd.

— — — — — — — — — — 3.74 — 3.74 —


— — — — — — — — — — 5.87 — 5.87 —

Deposits Taken Total — — — — — — — — — — 9.61 — 9.61 —

Sales/Redeemption of Units of Exchange Traded Funds


— — — — 9,990.24 3,929.65 — — — — — — 9,990.24 3,929.65

Sales/Redeemption of Units of Exchange Traded Funds Total

— — — — 9,990.24 3,929.65 — — — — — — 9,990.24 3,929.65

Purchase of Preference shares


— — — — — — — — — — 894.34 — 894.34 —

Purchase of Preference shares Total

— — — — — — — — — — 894.34 — 894.34 —

Purchase of Equity Shares Kotak Mahindra Bank Limited

— 2,510.07 — — — — — — — — — — — 2,510.07


— — — — — 781.30 — — — — — — — 781.30

Purchase of Equity Shares Total

— 2,510.07 — — — 781.30 — — — — — — — 3,291.37

Sale of Equity Shares Kotak Mahindra Capital Company Limited

— — — — 916.39 — — — — — — — 916.39 —

Sale of Equity Shares Total

— — — — 916.39 — — — — — — — 916.39 —

Fixed Deposits Placed during the Year


196,556.40 238,638.87 — — — — — — — — — — 196,556.40 238,638.87

Fixed Deposits Placed during the Year Total

196,556.40 238,638.87 — — — — — — — — — — 196,556.40 238,638.87

Fixed Deposits Repaid during the Year


176,739.84 314,288.91 — — — — — — — — — — 176,739.84 314,288.91

Fixed Deposits Repaid during the Year Total

176,739.84 314,288.91 — — — — — — — — — — 176,739.84 314,288.91

Interest Received on Fixed Deposits


12,697.30 13,956.14 — — — — — — — — — — 12,697.30 13,956.14

Interest Received on Fixed Deposits Total

12,697.30 13,956.14 — — — — — — — — — — 12,697.30 13,956.14

Interest on Debentures Recd.


— — — — 10.56 10.62 — — — — — — 10.56 10.62


— — — — 640.19 438.08 — — — — — — 640.19 438.08

Interest on Debentures Recd. Total

— — — — 650.75 448.70 — — — — — — 650.75 448.70




(Amount in Lacs)






Grand Total

Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous YearMutual Fund InvestmentsPurchase Kotak Mahindra Mutual

Fund— — — — 1,121,599.50 1,670,816.72 — — — — — — 1,121,599.50 1,670,816.72

Purchase Total — — — — 1,121,599.50 1,670,816.72 — — — — — — 1,121,599.50 1,670,816.72 Sale/Redemption Kotak Mahindra Mutual

Fund— — — — 1,121,599.50 1,670,816.72 — — — — — — 1,121,599.50 1,670,816.72

Sale/Redemption – Total

— — — — 1,121,599.50 1,670,816.72 — — — — — — 1,121,599.50 1,670,816.72

Dividend Received/Profit Earned


— — — — 302.15 750.54 — — — — — — 302.15 750.54

Dividend Received/Profit Earned Total

— — — — 302.15 750.54 — — — — — — 302.15 750.54

OutstandingsOverdraft from Banks Kotak Mahindra Bank

Limited 841.03 816.01 — — — — — — — — — — 841.03 816.01

Overdraft from Banks Total

841.03 816.01 — — — — — — — — — — 841.03 816.01

Debentures Taken Kotak Forex Brokerage Limited

— — — — 70.00 125.00 — — — — — — 70.00 125.00


— — — — 5,500.00 15,000.00 — — — — — — 5,500.00 15,000.00

Debentures Taken Total — — — — 5,570.00 15,125.00 — — — — — — 5,570.00 15,125.00 Debentures Issued Narayan S. A. — — — — — — 30.00 30.00 — — — — 30.00 30.00 Debentures Issued Total — — — — — — 30.00 30.00 — — — — 30.00 30.00 Interest Accrued on Debenture


— — — — 14.93 21.55 — — — — — — 14.93 21.55


— — — — 164.71 437.65 — — — — — — 164.71 437.65

Interest Accrued on Debenture Total

— — — — 179.64 459.20 — — — — — — 179.64 459.20


— — 304.08 — — — — — — — — — 304.08 —


— — — — 1,395.45 940.00 — — — — — — 1,395.45 940.00


— — — — 165.00 125.00 — — — — — — 165.00 125.00


— — — — 850.00 — — — — — — — 850.00 —

Kotak Mahindra Capital Company Limited

— — — — 21,000.00 21,000.00 — — — — — — 21,000.00 21,000.00


— — — — 27,080.69 18,331.94 — — — — — — 27,080.69 18,331.94

Investments Total — — 304.08 — 50,491.14 40,396.94 — — — — — — 50,795.22 40,396.94 Units of Exchange Traded Funds


— — — — 132.96 124.83 — — — — — — 132.96 124.83

Units of Exchange Traded Funds Total

— — — — 132.96 124.83 — — — — — — 132.96 124.83


(Amount in Lacs)






Grand Total

Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous YearMutual Fund InvestmentsPurchase Kotak Mahindra Mutual

Fund— — — — 1,121,599.50 1,670,816.72 — — — — — — 1,121,599.50 1,670,816.72

Purchase Total — — — — 1,121,599.50 1,670,816.72 — — — — — — 1,121,599.50 1,670,816.72 Sale/Redemption Kotak Mahindra Mutual

Fund— — — — 1,121,599.50 1,670,816.72 — — — — — — 1,121,599.50 1,670,816.72

Sale/Redemption – Total

— — — — 1,121,599.50 1,670,816.72 — — — — — — 1,121,599.50 1,670,816.72

Dividend Received/Profit Earned


— — — — 302.15 750.54 — — — — — — 302.15 750.54

Dividend Received/Profit Earned Total

— — — — 302.15 750.54 — — — — — — 302.15 750.54

OutstandingsOverdraft from Banks Kotak Mahindra Bank

Limited 841.03 816.01 — — — — — — — — — — 841.03 816.01

Overdraft from Banks Total

841.03 816.01 — — — — — — — — — — 841.03 816.01

Debentures Taken Kotak Forex Brokerage Limited

— — — — 70.00 125.00 — — — — — — 70.00 125.00


— — — — 5,500.00 15,000.00 — — — — — — 5,500.00 15,000.00

Debentures Taken Total — — — — 5,570.00 15,125.00 — — — — — — 5,570.00 15,125.00 Debentures Issued Narayan S. A. — — — — — — 30.00 30.00 — — — — 30.00 30.00 Debentures Issued Total — — — — — — 30.00 30.00 — — — — 30.00 30.00 Interest Accrued on Debenture


— — — — 14.93 21.55 — — — — — — 14.93 21.55


— — — — 164.71 437.65 — — — — — — 164.71 437.65

Interest Accrued on Debenture Total

— — — — 179.64 459.20 — — — — — — 179.64 459.20


— — 304.08 — — — — — — — — — 304.08 —


— — — — 1,395.45 940.00 — — — — — — 1,395.45 940.00


— — — — 165.00 125.00 — — — — — — 165.00 125.00


— — — — 850.00 — — — — — — — 850.00 —


— — — — 21,000.00 21,000.00 — — — — — — 21,000.00 21,000.00


— — — — 27,080.69 18,331.94 — — — — — — 27,080.69 18,331.94

Investments Total — — 304.08 — 50,491.14 40,396.94 — — — — — — 50,795.22 40,396.94 Units of Exchange Traded Funds


— — — — 132.96 124.83 — — — — — — 132.96 124.83

Units of Exchange Traded Funds Total

— — — — 132.96 124.83 — — — — — — 132.96 124.83




(Amount in Lacs)






Grand Total

Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous YearDeposits Given Kotak Mahindra Old

Mutual Life Insurance Limited

— — — — — 5.00 — — — — — — — 5.00

Deposits Given Total — — — — — 5.00 — — — — — — — 5.00 Deposits Taken Kotak Commodity

Services Ltd.— — — — — — — — — — 26.11 22.37 26.11 22.37


— — — — — — — — — — 5.87 — 5.87 —

Deposits Taken Total — — — — — — — — — — 31.98 22.37 31.98 22.37 Interest Accrued on Fixed Deposits – Receivable


1,248.05 1,520.17 — — — — — — — — — — 1,248.05 1,520.17

Interest Accrued on Fixed Deposits – Receivable Total

1,248.05 1,520.17 — — — — — — — — — — 1,248.05 1,520.17

Fixed Deposits Placed Kotak Mahindra Bank Limited

156,127.24 136,310.68 — — — — — — — — — — 156,127.24 136,310.68

Fixed Deposits Placed Total

156,127.24 136,310.68 — — — — — — — — — — 156,127.24 136,310.68

Broking Transactions(Secondary and Primary Market Operations)Purchases (Broking) Kotak Investment Advisors

Limited— — — — 1,866.67 1,175.52 — — — — — — 1,866.67 1,175.52


— — — — 918.00 — — — — — — — 918.00 —

Kotak Mahindra International Limited

— — — — 26,642.74 1,105.23 — — — — — — 26,642.74 1,105.23


— — — — 72,468.75 87,090.38 — — — — — — 72,468.75 87,090.38


— — — — 286,846.57 66,540.34 — — — — — — 286,846.57 66,540.34

Kotak Mahindra Old Mutual Life Insurance Limited

— — — — 93,697.35 27,416.67 — — — — — — 93,697.35 27,416.67


— — — — 36,581.98 39,112.71 — — — — — — 36,581.98 39,112.71

D. Kannan — — — — — — 15.60 7.75 — — — — 15.60 7.75 Narayan S. A. — — — — — — 74.25 4.65 — — — — 74.25 4.65 D. G. Subramanian — — — — — — — — 5.11 0.78 — — 5.11 0.78 Hemant Mehta — — — — — — — — — * — — — — Lakshmi S. — — — — — — — — 32.72 — — — 32.72 — Rashmi Mehta — — — — — — — — — 0.04 — — — 0.04 Rekha Narayan — — — — — — — — 38.29 29.23 — — 38.29 29.23 Sanjay Nayar — — — — — — — — 24.95 287.43 — — 24.95 287.43 Sudhandra Dam — — — — — — — — — 1.25 — — — 1.25 Suresh Kotak — — — — — — — — 1.46 — — — 1.46 — Infina Finance Pvt. Ltd. — — — — — — — — — — 256,742.89 — 256,742.89 —

Purchases (Broking) Total

— — — — 519,022.06 222,440.85 89.85 12.40 102.53 318.73 256,742.89 — 775,957.33 222,771.98


(Amount in Lacs)






Grand Total

Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous YearDeposits Given Kotak Mahindra Old

Mutual Life Insurance Limited

— — — — — 5.00 — — — — — — — 5.00

Deposits Given Total — — — — — 5.00 — — — — — — — 5.00 Deposits Taken Kotak Commodity

Services Ltd.— — — — — — — — — — 26.11 22.37 26.11 22.37


— — — — — — — — — — 5.87 — 5.87 —

Deposits Taken Total — — — — — — — — — — 31.98 22.37 31.98 22.37 Interest Accrued on Fixed Deposits – Receivable


1,248.05 1,520.17 — — — — — — — — — — 1,248.05 1,520.17

Interest Accrued on Fixed Deposits – Receivable Total

1,248.05 1,520.17 — — — — — — — — — — 1,248.05 1,520.17

Fixed Deposits Placed Kotak Mahindra Bank Limited

156,127.24 136,310.68 — — — — — — — — — — 156,127.24 136,310.68

Fixed Deposits Placed Total

156,127.24 136,310.68 — — — — — — — — — — 156,127.24 136,310.68

Broking Transactions(Secondary and Primary Market Operations)Purchases (Broking) Kotak Investment Advisors

Limited— — — — 1,866.67 1,175.52 — — — — — — 1,866.67 1,175.52


— — — — 918.00 — — — — — — — 918.00 —


— — — — 26,642.74 1,105.23 — — — — — — 26,642.74 1,105.23


— — — — 72,468.75 87,090.38 — — — — — — 72,468.75 87,090.38


— — — — 286,846.57 66,540.34 — — — — — — 286,846.57 66,540.34


— — — — 93,697.35 27,416.67 — — — — — — 93,697.35 27,416.67


— — — — 36,581.98 39,112.71 — — — — — — 36,581.98 39,112.71

D. Kannan — — — — — — 15.60 7.75 — — — — 15.60 7.75 Narayan S. A. — — — — — — 74.25 4.65 — — — — 74.25 4.65 D. G. Subramanian — — — — — — — — 5.11 0.78 — — 5.11 0.78 Hemant Mehta — — — — — — — — — * — — — — Lakshmi S. — — — — — — — — 32.72 — — — 32.72 — Rashmi Mehta — — — — — — — — — 0.04 — — — 0.04 Rekha Narayan — — — — — — — — 38.29 29.23 — — 38.29 29.23 Sanjay Nayar — — — — — — — — 24.95 287.43 — — 24.95 287.43 Sudhandra Dam — — — — — — — — — 1.25 — — — 1.25 Suresh Kotak — — — — — — — — 1.46 — — — 1.46 — Infina Finance Pvt. Ltd. — — — — — — — — — — 256,742.89 — 256,742.89 —

Purchases (Broking) Total

— — — — 519,022.06 222,440.85 89.85 12.40 102.53 318.73 256,742.89 — 775,957.33 222,771.98




(Amount in Lacs)






Grand Total


Sales (Broking) Kotak Mahindra Bank Limited

25,015.53 3,018.80 — — — — — — — — — — 25,015.53 3,018.80

Kotak Investment Advisors Limited

— — — — 333.05 1,052.81 — — — — — — 333.05 1,052.81


— — — — 591.91 — — — — — — — 591.91 —


— — — — 27,827.85 2,543.00 — — — — — — 27,827.85 2,543.00


— — — — 77,075.54 95,665.42 — — — — — — 77,075.54 95,665.42


— — — — 273,225.98 62,995.73 — — — — — — 273,225.98 62,995.73


— — — — 69,149.54 24,617.19 — — — — — — 69,149.54 24,617.19


— — — — 42,123.30 43,337.52 — — — — — — 42,123.30 43,337.52

C. Jayaram — — — — — — 673.41 489.46 — — — — 673.41 489.46

D. Kannan — — — — — — 357.00 149.24 — — — — 357.00 149.24

Narayan S. A. — — — — — — 269.97 757.05 — — — — 269.97 757.05

A. K. S. Mani — — — — — — — — — 0.27 — — — 0.27

D. G. Subramanian — — — — — — — — 5.03 — — — 5.03 —

Hemant Mehta — — — — — — — — 0.39 0.14 — — 0.39 0.14

Lakshmi S. — — — — — — — — 4.14 6.19 — — 4.14 6.19

Rajambal N. — — — — — — — — — 0.05 — — — 0.05

Rekha Narayan — — — — — — — — 43.73 122.87 — — 43.73 122.87

Sanjay Nayar — — — — — — — — 59.81 309.88 — — 59.81 309.88

Suchandra Dam — — — — — — — — — 1.06 — — — 1.06

Suresh Kotak — — — — — — — — 0.08 — — — 0.08 —

Kotak Commodity Services Ltd.

— — — — — — — — — — 0.86 5.62 0.86 5.62

Infina Finance Pvt. Ltd. — — — — — — — — — — 242,692.57 344.46 242,692.57 344.46

Sales (Broking) Total 25,015.53 3,018.80 — — 490,327.17 230,211.67 1,300.38 1,395.75 113.18 440.46 242,693.43 350.08 759,449.69 235,416.76

Brokerage Earned Kotak Mahindra Bank Limited

30.69 4.53 — — — — — — — — — — 30.69 4.53


— — — — 1.21 2.75 — — — — — — 1.21 2.75


— — — — 3.74 14.16 — — — — — — 3.74 14.16


— — — — 1.59 — — — — — — — 1.59 —


— — — — 13.57 4.67 — — — — — — 13.57 4.67


(Amount in Lacs)






Grand Total


Sales (Broking) Kotak Mahindra Bank Limited

25,015.53 3,018.80 — — — — — — — — — — 25,015.53 3,018.80


— — — — 333.05 1,052.81 — — — — — — 333.05 1,052.81


— — — — 591.91 — — — — — — — 591.91 —


— — — — 27,827.85 2,543.00 — — — — — — 27,827.85 2,543.00


— — — — 77,075.54 95,665.42 — — — — — — 77,075.54 95,665.42


— — — — 273,225.98 62,995.73 — — — — — — 273,225.98 62,995.73


— — — — 69,149.54 24,617.19 — — — — — — 69,149.54 24,617.19


— — — — 42,123.30 43,337.52 — — — — — — 42,123.30 43,337.52

C. Jayaram — — — — — — 673.41 489.46 — — — — 673.41 489.46

D. Kannan — — — — — — 357.00 149.24 — — — — 357.00 149.24

Narayan S. A. — — — — — — 269.97 757.05 — — — — 269.97 757.05

A. K. S. Mani — — — — — — — — — 0.27 — — — 0.27

D. G. Subramanian — — — — — — — — 5.03 — — — 5.03 —

Hemant Mehta — — — — — — — — 0.39 0.14 — — 0.39 0.14

Lakshmi S. — — — — — — — — 4.14 6.19 — — 4.14 6.19

Rajambal N. — — — — — — — — — 0.05 — — — 0.05

Rekha Narayan — — — — — — — — 43.73 122.87 — — 43.73 122.87

Sanjay Nayar — — — — — — — — 59.81 309.88 — — 59.81 309.88

Suchandra Dam — — — — — — — — — 1.06 — — — 1.06

Suresh Kotak — — — — — — — — 0.08 — — — 0.08 —


— — — — — — — — — — 0.86 5.62 0.86 5.62

Infina Finance Pvt. Ltd. — — — — — — — — — — 242,692.57 344.46 242,692.57 344.46

Sales (Broking) Total 25,015.53 3,018.80 — — 490,327.17 230,211.67 1,300.38 1,395.75 113.18 440.46 242,693.43 350.08 759,449.69 235,416.76

Brokerage Earned Kotak Mahindra Bank Limited

30.69 4.53 — — — — — — — — — — 30.69 4.53


— — — — 1.21 2.75 — — — — — — 1.21 2.75


— — — — 3.74 14.16 — — — — — — 3.74 14.16


— — — — 1.59 — — — — — — — 1.59 —


— — — — 13.57 4.67 — — — — — — 13.57 4.67




(Amount in Lacs)






Grand Total



— — — — 175.96 215.02 — — — — — — 175.96 215.02


— — — — 681.45 342.45 — — — — — — 681.45 342.45


— — — — 191.59 93.59 — — — — — — 191.59 93.59


— — — — 63.61 25.37 — — — — — — 63.61 25.37

C. Jayaram — — — — — — 1.11 1.22 — — — — 1.11 1.22

D. Kannan — — — — — — 0.56 0.24 — — — — 0.56 0.24

Narayan S. A. — — — — — — 0.52 1.14 — — — — 0.52 1.14

A. K. S. Mani — — — — — — — — — * — — — —

D. G. Subramanian — — — — — — — — 0.06 * — — 0.06 —

Hemant Mehta — — — — — — — — * * — — — —

Lakshmi S. — — — — — — — — 0.06 0.01 — — 0.06 0.01

Rajambal N. — — — — — — — — — * — — — —

Rashmi Mehta — — — — — — — — — * — — — —

Rekha Narayan — — — — — — — — 0.12 0.23 — — 0.12 0.23

Sanjay Nayar — — — — — — — — 0.06 0.30 — — 0.06 0.30

Suchandra Dam — — — — — — — — — 0.01 — — — 0.01

Suresh Kotak — — — — — — — — — * — — — —

Infina Finance Pvt. Ltd. — — — — — — — — — — 68.39 0.13 68.39 0.13

Brokerage Earned Total 30.69 4.53 — — 1,132.72 698.01 2.19 2.60 0.30 0.55 68.39 0.13 1,234.29 705.82

Liabilities Written Back Kotak Mahindra Capital Company Limited

— — — — 42.94 364.54 — — — — — — 42.94 364.54

Liabilities Written Back Total

— — — — 42.94 364.54 — — — — — — 42.94 364.54

Dividend Receivable Kotak Mahindra Asset Management Company Limited

— — — — 72.25 — — — — — — — 72.25 —

Dividend Receivable Total

— — — — 72.25 — — — — — — — 72.25 —

Outstandings Secondary

Receivable Kotak Mahindra Bank Limited

0.07 * — — — — — — — — — — 0.07 —


— — — — * 0.02 — — — — — — — 0.02


— — — — 0.15 — — — — — — — 0.15 —


— — — — 0.01 0.09 — — — — — — 0.01 0.09


— — — — 10.75 211.85 — — — — — — 10.75 211.85


(Amount in Lacs)






Grand Total



— — — — 175.96 215.02 — — — — — — 175.96 215.02


— — — — 681.45 342.45 — — — — — — 681.45 342.45


— — — — 191.59 93.59 — — — — — — 191.59 93.59


— — — — 63.61 25.37 — — — — — — 63.61 25.37

C. Jayaram — — — — — — 1.11 1.22 — — — — 1.11 1.22

D. Kannan — — — — — — 0.56 0.24 — — — — 0.56 0.24

Narayan S. A. — — — — — — 0.52 1.14 — — — — 0.52 1.14

A. K. S. Mani — — — — — — — — — * — — — —

D. G. Subramanian — — — — — — — — 0.06 * — — 0.06 —

Hemant Mehta — — — — — — — — * * — — — —

Lakshmi S. — — — — — — — — 0.06 0.01 — — 0.06 0.01

Rajambal N. — — — — — — — — — * — — — —

Rashmi Mehta — — — — — — — — — * — — — —

Rekha Narayan — — — — — — — — 0.12 0.23 — — 0.12 0.23

Sanjay Nayar — — — — — — — — 0.06 0.30 — — 0.06 0.30

Suchandra Dam — — — — — — — — — 0.01 — — — 0.01

Suresh Kotak — — — — — — — — — * — — — —


Brokerage Earned Total 30.69 4.53 — — 1,132.72 698.01 2.19 2.60 0.30 0.55 68.39 0.13 1,234.29 705.82

Liabilities Written Back Kotak Mahindra Capital Company Limited

— — — — 42.94 364.54 — — — — — — 42.94 364.54

Liabilities Written Back Total

— — — — 42.94 364.54 — — — — — — 42.94 364.54

Dividend Receivable Kotak Mahindra Asset Management Company Limited

— — — — 72.25 — — — — — — — 72.25 —

Dividend Receivable Total

— — — — 72.25 — — — — — — — 72.25 —

Outstandings Secondary


0.07 * — — — — — — — — — — 0.07 —


— — — — * 0.02 — — — — — — — 0.02


— — — — 0.15 — — — — — — — 0.15 —


— — — — 0.01 0.09 — — — — — — 0.01 0.09


— — — — 10.75 211.85 — — — — — — 10.75 211.85




(Amount in Lacs)






Grand Total



— — — — 9.83 4.33 — — — — — — 9.83 4.33


— — — — * 437.66 — — — — — — — 437.66

Kotak Mahindra Venture Capital Fund

— — — — — * — — — — — — — —

C. Jayaram — — — — — — * * — — — — — —

Narayan S. A. — — — — — — * 0.01 — — — — — 0.01

A. K. S. Mani — — — — — — * * — — — — — —

D. G. Subramanian — — — — — — — * — — — — — —

Hemant Mehta — — — — — — — — 0.01 0.01 — — 0.01 0.01

Indira Suresh Kotak — — — — — — — — — * — — — —

Rajambal N. — — — — — — — — * * — — — —

Rekha Narayan — — — — — — — — 6.46 0.01 — — 6.46 0.01

Sanjay Nayar — — — — — — — — * 0.01 — — — 0.01

Shalini Sud — — — — — — — — 0.02 — — — 0.02 —

Suresh Kotak — — — — — — — — * 0.01 — — — 0.01


— — — — — — — — — — 0.01 0.01 0.01 0.01


— — — — — — — — — — 1.74 — 1.74 —


Receivable – Total 0.07 — — — 20.74 653.95 — 0.01 6.49 0.04 174.60 0.01 201.90 654.01

Payable Kotak Mahindra Bank Limited

91.91 1.48 — — — — — — — — — — 91.91 1.48


— — — — 23.86 24.10 — — — — — — 23.86 24.10


— — — — 974.17 232.84 — — — — — — 974.17 232.84


— — — — 968.56 925.55 — — — — — — 968.56 925.55

D. Kannan — — — — — — 0.01 1.36 — — — — 0.01 1.36

Narayan S. A. — — — — — — — 0.03 — — — — — 0.03

Shivaji Dam — — — — — — — 0.18 — — — — — 0.18

Vikram Sud — — — — — — 0.05 0.05 — — — — 0.05 0.05

D. G. Subramanian — — — — — — — — 0.09 0.08 — — 0.09 0.08

Dhawal Kotak — — — — — — — — * * — — — —

Lakshmi S. — — — — — — — — 1.82 0.01 — — 1.82 0.01

Rashmi Mehta — — — — — — — — 0.04 0.05 — — 0.04 0.05

Shalini Sud — — — — — — — — — 0.01 — — — 0.01

Suchandra Dam — — — — — — — — — 0.20 — — — 0.20


— — — — — — — — — — — 0.01 — 0.01


Payable – Total 91.91 1.48 — — 1,966.59 1,182.49 0.06 1.62 1.95 0.35 39.28 0.01 2,099.79 1,185.95


(Amount in Lacs)






Grand Total



— — — — 9.83 4.33 — — — — — — 9.83 4.33


— — — — * 437.66 — — — — — — — 437.66

Kotak Mahindra Venture Capital Fund

— — — — — * — — — — — — — —

C. Jayaram — — — — — — * * — — — — — —

Narayan S. A. — — — — — — * 0.01 — — — — — 0.01

A. K. S. Mani — — — — — — * * — — — — — —

D. G. Subramanian — — — — — — — * — — — — — —

Hemant Mehta — — — — — — — — 0.01 0.01 — — 0.01 0.01

Indira Suresh Kotak — — — — — — — — — * — — — —

Rajambal N. — — — — — — — — * * — — — —

Rekha Narayan — — — — — — — — 6.46 0.01 — — 6.46 0.01

Sanjay Nayar — — — — — — — — * 0.01 — — — 0.01

Shalini Sud — — — — — — — — 0.02 — — — 0.02 —

Suresh Kotak — — — — — — — — * 0.01 — — — 0.01


— — — — — — — — — — 0.01 0.01 0.01 0.01


— — — — — — — — — — 1.74 — 1.74 —


Receivable – Total 0.07 — — — 20.74 653.95 — 0.01 6.49 0.04 174.60 0.01 201.90 654.01


91.91 1.48 — — — — — — — — — — 91.91 1.48


— — — — 23.86 24.10 — — — — — — 23.86 24.10


— — — — 974.17 232.84 — — — — — — 974.17 232.84


— — — — 968.56 925.55 — — — — — — 968.56 925.55

D. Kannan — — — — — — 0.01 1.36 — — — — 0.01 1.36

Narayan S. A. — — — — — — — 0.03 — — — — — 0.03

Shivaji Dam — — — — — — — 0.18 — — — — — 0.18

Vikram Sud — — — — — — 0.05 0.05 — — — — 0.05 0.05

D. G. Subramanian — — — — — — — — 0.09 0.08 — — 0.09 0.08

Dhawal Kotak — — — — — — — — * * — — — —

Lakshmi S. — — — — — — — — 1.82 0.01 — — 1.82 0.01

Rashmi Mehta — — — — — — — — 0.04 0.05 — — 0.04 0.05

Shalini Sud — — — — — — — — — 0.01 — — — 0.01

Suchandra Dam — — — — — — — — — 0.20 — — — 0.20


— — — — — — — — — — — 0.01 — 0.01


Payable – Total 91.91 1.48 — — 1,966.59 1,182.49 0.06 1.62 1.95 0.35 39.28 0.01 2,099.79 1,185.95




(Amount in Lacs)






Grand Total


Other Receipts and Payments

Fee Income Kotak Mahindra Bank Limited

0.02 — — — — — — — — — — — 0.02 —


— — — — * 0.55 — — — — — — — 0.55


— — — — 2,874.82 318.72 — — — — — — 2,874.82 318.72


— — — — 0.27 19.38 — — — — — — 0.27 19.38

C. Jayaram — — — — — — * * — — — — — —

D. Kannan — — — — — — 0.01 0.02 — — — — 0.01 0.02

Narayan S. A. — — — — — — * 0.01 — — — — — 0.01

Vikram Sud — — — — — — * * — — — — — —

A. K. S. Mani — — — — — — — * — — — — — —

D. G. Subramanian — — — — — — — — 0.01 * — — 0.01 —

Hemant Mehta — — — — — — — — 0.01 0.01 — — 0.01 0.01

Indira Suresh Kotak — — — — — — — — — 0.01 — — — 0.01

Lakshmi S. — — — — — — — — * — — — — —

Rajambal N. — — — — — — — — — * — — — —

Rekha Narayan — — — — — — — — * * — — — —

Sanjay Nayar — — — — — — — — 0.01 0.01 — — 0.01 0.01

Shalini Sud — — — — — — — — * * — — — —

Suresh Kotak — — — — — — — — 0.02 0.01 — — 0.02 0.01


— — — — — — — — — — * * — —


— — — — — — — — — — 140.79 48.53 140.79 48.53


Fee Income Total 0.02 — — — 2,875.09 338.65 0.01 0.03 0.05 0.04 141.44 50.53 3,016.61 389.25

Personnel Expense Kotak Mahindra Bank Limited

519.19 1,534.40 — — — — — — — — — — 519.19 1,534.40

Personnel Expense Total

519.19 1,534.40 — — — — — — — — — — 519.19 1,534.40

Expense Reimbursement to Other Companies


4,645.25 4,885.52 — — — — — — — — — — 4,645.25 4,885.52


— — — — 11.27 8.90 — — — — — — 11.27 8.90


— — — — 645.15 767.76 — — — — — — 645.15 767.76

Kotak Mahindra Inc. — — — — 0.58 — — — — — — — 0.58 —


— — — — 441.61 1,103.38 — — — — — — 441.61 1,103.38



(Amount in Lacs)






Grand Total



— — — — 1.67 0.50 — — — — — — 1.67 0.50


— — — — 13.05 26.67 — — — — — — 13.05 26.67


— — — — — 0.91 — — — — — — — 0.91


— — — — — — — — — — 6.24 3.03 6.24 3.03


— — — — — — — — — — 16.54 — 16.54 —

Expense Reimbursement to Other Companies Total

4,645.25 4,885.52 — — 1,113.33 1,908.12 — — — — 22.78 3.03 5,781.36 6,796.67

Expense Reimbursement by Other Companies


83.36 68.26 — — — — — — — — — — 83.36 68.26

Kotak Mahindra Financial Services Limited

— — 18.16 — — — — — — — — — 18.16 —


— — — — 0.03 0.09 — — — — — — 0.03 0.09


— — — — 13.27 32.59 — — — — — — 13.27 32.59


— — — — 342.86 672.51 — — — — — — 342.86 672.51


— — — — 2.94 2.16 — — — — — — 2.94 2.16


— — — — 104.90 91.87 — — — — — — 104.90 91.87


— — — — — — — — — — 133.02 136.33 133.02 136.33


— — — — — — — — — — 94.36 — 94.36 —

Expense Reimbursement by Other Companies Total

83.36 68.26 18.16 — 464.00 799.22 — — — — 227.38 136.33 792.90 1,003.81

Other Expenses Kotak Mahindra Bank Limited

96.68 170.17 — — — — — — — — — — 96.68 170.17

Uday S. Kotak 8.24 8.24 — — — — — — — — — — 8.24 8.24


— — — — 125.00 125.00 — — — — — — 125.00 125.00


(Amount in Lacs)






Grand Total



— — — — 1.67 0.50 — — — — — — 1.67 0.50


— — — — 13.05 26.67 — — — — — — 13.05 26.67


— — — — — 0.91 — — — — — — — 0.91


— — — — — — — — — — 6.24 3.03 6.24 3.03


— — — — — — — — — — 16.54 — 16.54 —

Expense Reimbursement to Other Companies Total

4,645.25 4,885.52 — — 1,113.33 1,908.12 — — — — 22.78 3.03 5,781.36 6,796.67

Expense Reimbursement by Other Companies


83.36 68.26 — — — — — — — — — — 83.36 68.26


— — 18.16 — — — — — — — — — 18.16 —


— — — — 0.03 0.09 — — — — — — 0.03 0.09


— — — — 13.27 32.59 — — — — — — 13.27 32.59


— — — — 342.86 672.51 — — — — — — 342.86 672.51


— — — — 2.94 2.16 — — — — — — 2.94 2.16


— — — — 104.90 91.87 — — — — — — 104.90 91.87


— — — — — — — — — — 133.02 136.33 133.02 136.33


— — — — — — — — — — 94.36 — 94.36 —

Expense Reimbursement by Other Companies Total

83.36 68.26 18.16 — 464.00 799.22 — — — — 227.38 136.33 792.90 1,003.81

Other Expenses Kotak Mahindra Bank Limited

96.68 170.17 — — — — — — — — — — 96.68 170.17

Uday S. Kotak 8.24 8.24 — — — — — — — — — — 8.24 8.24


— — — — 125.00 125.00 — — — — — — 125.00 125.00




(Amount in Lacs)






Grand Total



— — — — 112.40 348.00 — — — — — — 112.40 348.00

Aero Agencies Private Limited

— — — — — — — — — — 35.63 31.91 35.63 31.91

Other Expenses Total 104.92 178.41 — — 237.40 473.00 — — — — 35.63 31.91 377.95 683.32

Other Income Kotak Mahindra Investments Limited

— — — — 6.00 4.60 — — — — — — 6.00 4.60


— — — — 300.20 875.73 — — — — — — 300.20 875.73

Other Income Total — — — — 306.20 880.33 — — — — — — 306.20 880.33

Purchase of Fixed Asset Kotak Mahindra Bank Limited

10.57 — — — — — — — — — — — 10.57 —


— — — — 0.95 — — — — — — — 0.95 —


— — — — — 3.63 — — — — — — — 3.63

Purchase of Fixed Asset Total

10.57 — — — 0.95 3.63 — — — — — — 11.52 3.63

Sale of Fixed Asset Kotak Mahindra Bank Limited

4.68 27.78 — — — — — — — — — — 4.68 27.78


— — — — 1.01 2.00 — — — — — — 1.01 2.00


— — — — 1.19 — — — — — — — 1.19 —


— — — — — 0.02 — — — — — — — 0.02


— — — — 239.31 2.65 — — — — — — 239.31 2.65

Sale of Fixed Asset Total

4.68 27.78 — — 241.51 4.67 — — — — — — 246.19 32.45

Remuneration to Key Management Personnel

D. Kannan — — — — — — 178.75 483.19 — — — — 178.75 483.19

Falguni Nayar — — — — — — 10.00 10.00 — — — — 10.00 10.00

Narayan S. A. — — — — — — 238.29 590.59 — — — — 238.29 590.59

Remuneration to Key Management Personnel Total

— — — — — — 427.04 1,083.78 — — — — 427.04 1,083.78

Other Outstanding


2.58 51.47 — — — — — — — — — — 2.58 51.47


— — 18.16 — — — — — — — — — 18.16 —


(Amount in Lacs)






Grand Total



— — — — 112.40 348.00 — — — — — — 112.40 348.00


— — — — — — — — — — 35.63 31.91 35.63 31.91

Other Expenses Total 104.92 178.41 — — 237.40 473.00 — — — — 35.63 31.91 377.95 683.32

Other Income Kotak Mahindra Investments Limited

— — — — 6.00 4.60 — — — — — — 6.00 4.60


— — — — 300.20 875.73 — — — — — — 300.20 875.73

Other Income Total — — — — 306.20 880.33 — — — — — — 306.20 880.33

Purchase of Fixed Asset Kotak Mahindra Bank Limited

10.57 — — — — — — — — — — — 10.57 —


— — — — 0.95 — — — — — — — 0.95 —


— — — — — 3.63 — — — — — — — 3.63

Purchase of Fixed Asset Total

10.57 — — — 0.95 3.63 — — — — — — 11.52 3.63

Sale of Fixed Asset Kotak Mahindra Bank Limited

4.68 27.78 — — — — — — — — — — 4.68 27.78


— — — — 1.01 2.00 — — — — — — 1.01 2.00


— — — — 1.19 — — — — — — — 1.19 —


— — — — — 0.02 — — — — — — — 0.02


— — — — 239.31 2.65 — — — — — — 239.31 2.65

Sale of Fixed Asset Total

4.68 27.78 — — 241.51 4.67 — — — — — — 246.19 32.45

Remuneration to Key Management Personnel

D. Kannan — — — — — — 178.75 483.19 — — — — 178.75 483.19

Falguni Nayar — — — — — — 10.00 10.00 — — — — 10.00 10.00

Narayan S. A. — — — — — — 238.29 590.59 — — — — 238.29 590.59

Remuneration to Key Management Personnel Total

— — — — — — 427.04 1,083.78 — — — — 427.04 1,083.78

Other Outstanding


2.58 51.47 — — — — — — — — — — 2.58 51.47


— — 18.16 — — — — — — — — — 18.16 —




(Amount in Lacs)






Grand Total



— — — — — 17.79 — — — — — — — 17.79


— — — — 360.82 350.99 — — — — — — 360.82 350.99


— — — — 19.06 66.57 — — — — — — 19.06 66.57

D. Kannan — — — — — — — * — — — — — —


— — — — — — — — — — — * — —


— — — — — — — — — — 9.62 41.89 9.62 41.89



— — — — — — — — — — 88.53 — 88.53 —

Receivable Total 2.58 51.47 18.16 — 379.88 435.35 — — — — 98.18 41.89 498.80 528.71


213.72 42.75 — — — — — — — — — — 213.72 42.75

Uday S. Kotak 0.69 — — — — — — — — — — — 0.69 —


— — — — 0.95 0.85 — — — — — — 0.95 0.85


— — — — 52.19 91.82 — — — — — — 52.19 91.82


— — — — 110.56 250.30 — — — — — — 110.56 250.30


— — — — — 0.39 — — — — — — — 0.39

Falguni Nayar — — — — — — 10.00 10.00 — — — — 10.00 10.00


— — — — — — — — — — 2.10 1.96 2.10 1.96


— — — — — — — — — — 6.09 0.08 6.09 0.08


— — — — — — — — — — 16.54 — 16.54 —

Payable Total 214.41 42.75 — — 163.70 343.36 10.00 10.00 — — 24.73 2.04 412.84 398.15

* less than Rs. 0.001 Lacs



28. Balance sheet abstract and company’s General Business Profile:

(a) Registration Details Registration Number : U 99999 MH 1994 PLC 134051 State Code : 11 Balance Sheet Date : 31-03-2010

(b) Capital raised during the period Amount in Rs. ’000 Public Issue : Nil Rights Issue : Nil Bonus Issue : Nil Private Placement : Nil

(c) Position of Mobilization and Deployment of Funds Amount in Rs. ’000 Total Liabilities : 17,133,169 Total Assets : 17,133,169 Source of Funds Paid-up Capital : 16,000 Reserves and Surplus : 15,104,112 Secured Loans : 84,103 Unsecured Loans : 1,928,954 Application of Funds Amount in Rs. ’000 Net Fixed Assets : 745,503 Investments : 5,737,726 Deferred Tax Asset 377,297 Net Current Assets : 10,277,643 Miscellaneous Expenditure : Nil Accumulated Losses : Nil

(d) Performance of Company Amount in Rs. ’000 Turnover/Other Income : 8,378,639 Total Expenditure : 4,339,877 Profit before Tax : 4,038,762 Profit after Tax : 2,601,004 Earnings Per Share (in Rs.) : 1,625.63 Dividend Rate (%) : 0%

(e) Generic Names of Three Principal Products/Services of Company Item Code No. : N.A. Product Description : Broking, Depository Services, Proprietary Trading,

Portfolio Management Services, Investments, Mobilisation of Deposits and Marketing of Public Issues.

29. Figures for the previous year have been regrouped wherever necessary to conform to current year’s 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.







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