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Bigger. Bolder. Better.

Kotak Securities Limited

Annual Report 2013-14 1

Directors’ ReportTo the Members ofKotak Securities Limited

Your Directors are pleased to present the 20th Annual Report and the Audited Accounts for the year ended 31st March 2014.

FINANCIAL HIGHLIGHTS

(` in Lakhs except per share data)

31st March, 2014 31st March, 2013

Gross Income 62,688.48 60,699.29

Profit / (Loss) before Depreciation and Tax 24,601.28 20,201.72

Depreciation 1,174.08 1,348.72

Profit / (Loss) before Tax 23,427.20 18,853.00

Provision for Tax 7,410.26 7,402.76

Profit / (Loss) After Tax 16,016.94 11,450.24

Transfer from Debenture Redemption Reserve - -

Balance brought forward from previous year 173,635.03 162,184.79

Amount available for appropriation 189,651.97 173,635.03

Transfer to Debenture Redemption Reserve - -

Profit / (Loss) carried forward to the Balance Sheet 189,651.97 173,635.03

Earnings per share on equity shares of ` 10 each (Basic and Diluted) 1,001.06 715.64

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 2013-2014 (hereinafter referred to as ‘current financial year’).

OPERATIONS

Liquidity in financial markets continued to be a dominant factor in Indian capital markets. Inflation and interest rates continued to remain high making debt instruments attractive. The end of the first quarter and the beginning of the second quarter of the financial year saw the Indian Rupee under severe pressure resulting in a volatile market. While the Indian Rupee did stabilize towards the end of the second half of the year, the adverse effect of a weak Indian Rupee on the economy and corporate performance played its part on investor sentiment. During the year the price of gold came off its highs. Results of assembly elections and anticipation of the results of general elections played some part on investor sentiment in later part of the year. Overall it was another year in which environment for equity investments was not conducive.

The Sensex which closed at 18,836 at the end of the financial year - 2012-13 (hereinafter referred to as ‘previous financial year’) closed at 22,386 at the end of the current financial year with a high of 22,467 and low of 17,449. Similarly, the benchmark Nifty which closed at 5,683 at the end of the previous financial year closed at 6,704 at the end of the current financial year with a high of 6,730 and low of 5,119.

Market average daily volumes increased to ` 13,412 crores from ` 13,204 crores in the previous financial year for the Cash Segment, and increased to ` 154,023 crores from ` 127,995 crores in the previous financial year for Derivatives Segment. The shift in mix from the Cash segment to Derivatives segment continued. It was skewed further in favour of derivatives, with cash segment being less than 10% of the total traded market volumes.

Retail Segment

There was no increase in retail investor participation in the Market as investors felt more comfortable with debt, gold and real estate. There was no significant increase in number of DP Accounts and most Mutual Funds reported steady withdrawals by the retail segment. Some increased activity was seen towards the end of the financial year. Your company has focused on increasing its share in the Cash Market Segment.

Customer acquisition resulted in addition of about 97,800 customers with a large part of them being online trading customers. Your company’s mobile trading application has emerged as a market leader. The total outlets stood at 1,157 at the end of the financial year. The number of registered sub brokers/ authorized persons stood at 1,896 for NSE and 1,361 for BSE.

Kotak Securities Limited2

Institutional Equities

The Company’s Institutional Equities division maintained its leading position in the Broking Segment. The overall Institutional cash and derivatives market volume grew by about 14% & 17% respectively however industry yields remained under pressure. Derivatives market volume mix was largely in favour of the Option segment. The division remained focused on derivatives segment and upgraded its systems and technology for Algorithmic & Direct Market Access trading. The Institutional Equity Research continued to be recognized for its in-depth high quality financial modeling, width of stock coverage and valuable investment insights, winning valuable votes from its clients.

Primary Market

Primary market issuances were virtually absent for the equity segment. Given the investor appetite for debt and the higher interest rates, a number of Debt issuances took place. This covered private as well as public sector companies/ corporations. The deadline, by SEBI, for promoters to decrease their holdings in their companies was June 2013. The first quarter saw a flurry of activity as there were a large number of Offers for Sale by promoters to meet the deadline. In the current financial year, your Company was associated with the distribution of 5 Equity Public Offer Issues, 33 Debt Public Offer Issues and 75 Offer for Sale.

AWARDS AND RECOGNITIONS

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

a) NSDL Star Performers Award 2013 – Top Performer in New Accounts Opened (Non-Bank Category)

b) Best Equity Broking House: Dun & Bradstreet Equity Broking Awards 2013

c) Depository Participant of the year: Dun & Bradstreet Equity Broking Awards 2013

d) Kotak Institutional Equities - Analysts ranked #1 in The Best Analysts of the Year; #3 in Institutional Investor’s All-India Research Team survey – 2013

e) Best Domestic Equity House by Asiamoney – 2013

f) Best Brokerage House - India in The Asset Country Awards - 2013

g) Best Local Brokerage in the Asiamoney Brokers Poll – 2013

India’s Best Local Brokerage - for the 8th year in a row

Ranked #1 for Most Independent Research Brokerage amongst all domestic and foreign brokerages

Ranked #2 for Best Overall Country Research amongst all domestic and foreign brokerages

Ranked #2 for Best Execution amongst all domestic and foreign brokerages

Ranked #3 for Best in Sales Trading amongst all domestic and foreign brokerages

FUTURE OUTLOOK

The benchmark Index, NIFTY and Sensex have shown a growth of ~17% over the previous financial year end, with major gains in the month of March 2014. GDP, IIP, Inflation and some of the other economic indicators continued to be under stress. With elections being announced, no major changes were introduced in the finance budget for Financial Year 2014-15. The economic indicators being under stress led to a virtual run on the Indian Rupee which saw a rapid drop to almost INR 69 to 1 USD. A number of steps taken by the Reserve Bank of India as well as some other factors saw the INR stabilizing at around INR 60 to 1 USD.

While the Rupee weakened, inflation continued to remain a concern for large part of the last year. However the last quarter has seen an easing of the inflation rate. Easing of inflation as well as stabilizing of the Rupee should help corporates in managing input costs. Oil prices have been stable and price of gold has also reduced both of which would have a positive impact on the demand for USD from an Indian perspective. Reduction in inflation could also signal lower interest rates and a positive for equity investments. In the Indian context, the outlook would be influenced by the outcome of the general elections. The third week of May would be crucial from this stand point.

US economy seems to have ridden the worst period and economic indicators seem to suggest that there are clear signs of recovery. US Capital Market indices also seem to suggest the same. Europe is still lagging behind and has also had other worries such as unrest in Turkey and more recently Ukraine. Tensions concerning Iran has reduced but the Syrian crisis continues. On the other hand North Korea continues with its aggressive nuclear stand. Global markets continue to see a mixed bag of performance.

Cash market volumes have declined further in last year as a proportion to the total market volumes. A stable government, post elections may result in an increase in Cash Market volumes. Post the rapid weakening of the Rupee, certain limits were imposed on the currency derivatives. With the Rupee stabilizing, it is expected that these limits would be removed leading to more volumes in this segment. Two new products have been introduced – Interest Rate Futures and Volatility Index Futures. Volumes in these segments will take some time to increase.


Regulatory changes are focused on ensuring greater onus on members on issues such as implementing new trading related software, surveillance alerts, KYC, greater transparency in dealing with clients and risks associated with Capital Markets. Your company has always been in the forefront while dealing with these issues and will continue to ensure compliance to such changes. Your company continues to focus on ensuring a high quality of service to clients while keeping a close watch on costs. In an industry with over capacity, realization rates are still under pressure. Your company being among the leaders in the industry is well positioned to meet future growth.

DIRECTORS

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

Mr. K.V.S Manian was appointed as Director on the Board of the company w.e.f. 19th June, 2013.

COMMITTEES

• AuditCommittee

The Committee consisted of Mr. Uday Kotak, Mr. C. Jayaram and Mr. Narayan S. A. as its members with Mr. Uday Kotak as the Chairman. The Committee was reconstituted on 19th June, 2013 consisting of Mr. Uday Kotak as chairman, Mr. C. Jayaram and Mr. K.V.S. Manian. During the year three meetings were held and all the members attended the meetings.

• Routine&AdministrativeFunction(RAF)Committee:

The Committee consisted of Mr. Narayan S. A., Mr. D. Kannan and Mr. C. Jayaram as its members with Mr. Narayan S. A. as the Chairman. The Committee was reconstituted on 19th June, 2013 consisting of Mr. K.V.S. Manian as chairman, Mr. C. Jayaram and Mr. D. Kannan. During the year nine meetings were held and all members attended the meetings.

• FirstTierAuditCommittee(FTAC)

The Committee consisted of Mr. C. Jayaram, Mr. Narayan S.A, Mr. D. Kannan and Mr. Jaimin Bhatt. The Committee was reconstituted on 19th June, 2013 consisting of Mr. C. Jayaram as chairman, Mr. K.V.S. Manian, Mr. D. Kannan and Mr. Jaimin Bhatt. During the year three meetings were held. Mr. Jaimin Bhatt attended two meetings and other members attended all the meetings.

• NominationCommittee

The Committee consisted of Mr. Narayan S.A., Mr. D. Kannan and Mr. C. Jayaram. . The Committee was reconstituted on 19th June, 2013 consisting of Mr. C. Jayaram as chairman, Mr. K.V.S. Manian and Mr. D. Kannan. During the year one meeting was held and all the members attended the meeting.

• RiskManagementCommittee(Board)

The Committee consisted of Mr. Narayan S.A, Mr. D. Kannan, Mr. C. Jayaram, as its members with Mr. C. Jayaram as the Chairman. The Committee was reconstituted on 19th June, 2013 consisting of Mr. C. Jayaram as chairman, Mr. K.V.S. Manian and Mr. D. Kannan. During the year one meeting was held and all the members attended the meeting.

• RiskManagementCommittee(Operations)

The committee consisted of Mr. D. Kannan, Mr. Trivikram Kamath and Mr. Mukul Rathi, as its members with Mr. D. Kannan as the Chairman. During the year two meetings were held and all the members attended the meetings.

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.

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 ` 735.21 Lakhs (` 530.14 Lakhs in previous financial year) and ` 1,856.34 Lakhs (` 1,682.03 Lakhs in previous financial year) respectively. The other particulars under the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, are not applicable since your Company is not a manufacturing company.


DIRECTORS’ RESPONSIBILITY STATEMENT

Based on representations from the management, the Directors state, in pursuance of Section 217 (2AA) of the Companies Act, 1956, that:

i) The Company has, in the preparation of the annual accounts for the year ended 31st March 2014, 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 2014 and of the profit of the Company for the financial year ended 31st March 2014.

iii) The Directors have taken proper and sufficient care to the best of their knowledge and ability, for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and

iv) The Directors have prepared the annual accounts on a going concern basis.

ACKNOWLEDGEMENTS

The Directors wish to thank Securities and Exchange Board of India, the Stock Exchanges, the Depositories and the 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. KotakChairman

Place: MumbaiDated: April 23, 2014


IndependentAuditors’ReportTo the Members of Kotak Securities LimitedReport on the Financial Statements

1. We have audited the accompanying financial statements of Kotak Securities Limited (the “Company”), which comprise the Balance Sheet as at March 31, 2014, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information, which we have signed under reference to this report.

Management’sResponsibilityfortheFinancialStatements

2. The Company’s Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards notified under the Companies Act 1956 of India (the “Act”) read with the General Circular 15/ 2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors’Responsibility

3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence, about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the Company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Management, as well as evaluating the overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

6. In our opinion, and to the best of our information and according to the explanations given to us, the accompanying financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014;

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

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

ReportonOtherLegalandRegulatoryRequirements

7. As required by ‘the Companies (Auditor’s Report) Order, 2003’, as amended by ‘the Companies (Auditor’s Report) (Amendment) Order, 2004’, issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act (hereinafter referred to as the “Order”), 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.

8. As required by section 227(3) of the Act, we report that:

(a) We have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit;

(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;

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

(d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this report comply with the Accounting Standards notified under the Act read with the General Circular 15/ 2013dated September 13, 2013 of theMinistry of Corporate Affairs in respect of Section 133 of the CompaniesAct, 2013;

(e) On the basis of written representations received from the directors as on March 31, 2014, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Act.

For Price WaterhouseFirm Registration Number: 301112E

Chartered Accountants

VivekPrasadMumbai PartnerApril 25, 2014 Membership Number : 104941


AnnexuretoIndependentAuditors’ReportReferredtoinparagraph7oftheIndependentAuditors’ReportofevendatetothemembersofKotakSecuritiesLimitedonthefinancialstatements for the year ended March 31, 2014

i. (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 have been noticed on such verification.

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

ii. (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.

iii. (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 ` 146,237 lakhs and ` 131,458 lakhs respectively.

(b) In our opinion, the rate of interest and other terms and conditions of such deposits are not prima facie prejudicial to the interest of the Company.

(c) In respect of the aforesaid fixed deposits placed, the holding company is repaying the principal amounts, as stipulated, and is also regular in payment of interestas applicable.

(d) In respect of the aforesaid fixed deposits, there is no overdue amount more than ` One Lakh.

(e) The Company has taken secured overdraft facility from its holding company covered in the register maintained under Section 301 of the Act. The overdraft facility provided to the Company during the year aggregates ` 15,000 lakhs and the year end overdraft balance aggregates ` 384 lakhs.

(f) In our opinion, the rate of interest and other terms and conditions of such overdraft are not prima facie prejudicial to the interest of the Company.

(g) In respect of the aforesaid overdraft, the Company is regular in repaying the principal amounts, as stipulated, and is also regular in payment of interest, as applicable.

iv. In our opinion, and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business 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.

v (a) According to the information and explanations given to us, we are of the opinion that the particulars of all contracts or arrangements that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) In our opinion, and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements and exceeding the value of ` Five Lakhs in respect of any party during the year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

vi. 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.

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

viii. 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.


ix. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is regular in depositing the undisputed statutory dues, including provident fund, investor education and protection fund, employees’ state insurance, income tax, sales tax, wealth tax, service tax, customs duty, excise duty 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 and excise duty as at March 31, 2014 which have not been deposited on account of a dispute, are as follows:

Nameofthestatute Natureofdues

Amount(`inLakhs)

Period to which the amount relates

Forumwherethedisputeispending

The Central Excise Act, 1944

Service tax 33 Financial Years 1999- 2003 Custom Excise & Service Tax Appellate Tribunal


Service tax 10 Financial Years 2004-2007 Additional Commissioner of Service tax


Service tax 9 Financial Years 2002-2007 Joint Commissioner of Service tax


Service tax 50 Financial Years 2007-10 Commissioner of Service tax

The Income Tax Act, 1961

Income Tax 190* Assessment Year 2007-08 Commissioner of Income Tax (Appeal)

*Also refer note 27 (a) to the Financial Statements.

x. The Company has no accumulated losses as at the end of the financial year and it has not incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year.

xi. 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.

xii. In our opinion, the Company has maintained adequate documents and records in the cases where it has granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

xiii. As the provisions of any special statute applicable to chit fund/ nidhi/ mutual benefit fund/ societies are not applicable to the Company, the provisions of Clause 4(xiii) of the Order are not applicable to the Company.

xiv. 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.

xv. 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. Accordingly, the provisions of Clause 4(xv) of the Order are not applicable to the Company.

xvi. The Company has not raised any term loans. Accordingly, the provisions of Clause 4(xvi) of the Order are not applicable to the Company.

xvii. According to the information and explanations given to us and on an overall examination of the balance sheet of the company, we report that the no funds raised on short-term basis have been used for long-term investment.

xviii. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Act during the year. Accordingly, the provisions of Clause 4(xviii) of the Order are not applicable to the Company.

xix. The Company has not issued any debentures during the year and does not have any debentures outstanding as at the beginning of the year and at the year end. Accordingly, the provisions of Clause 4(xix) of the Order are not applicable to the Company

xx. The Company has not raised any money by public issues during the year. Accordingly, the provisions of Clause 4(xx) of the Order are not applicable to the Company.

xxi. 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 material fraud on or by the Company, noticed or reported during the year, nor have we been informed of any such case by the Management.

For Price WaterhouseFirm Registration Number: 301112E


VivekPrasadMumbai PartnerApril 25, 2014 Membership Number 104941


BalanceSheetas at 31st March, 2014

31st March 2014 31st March 2013

Notes ` in Lacs ` in Lacs

EQUITYANDLIABILITIES

Shareholders’Funds

Share Capital 3 160.00 160.00

Reserves and Surplus 4 209,284.26 193,267.32

Non-CurrentLiabilities

Other Long-Term Liabilities 5 2,808.86 2,114.28

Long-Term Provisions 6 863.55 1,117.05

CurrentLiabilities

Short-Term Borrowings 7 384.08 2,138.82

Trade Payables 8 83,493.86 59,156.29

Other Current Liabilities 9 7,817.13 6,346.17

Short-Term Provisions 10 2,222.72 2,673.55

Total 307,034.46 266,973.48

ASSETS

Non-currentassets

Fixed Assets 11

Tangible Assets 6,907.96 6,415.62

Intangible Assets 209.07 82.92

Non - Current Investments 12 83,352.98 69,866.23

Deferred Tax Asset (Net) 13 786.72 1,757.96

Long Term Loans and Advances 14 4,263.59 2,726.60

Other Non Current Assets 15 19,375.47 20,537.62

CurrentAssets

Current Investments 16 1,000.00 10,000.00

Stock in Trade (Securities) 17 18,857.53 8,113.13

Trade Receivables 18 43,555.18 35,957.18

Cash and Bank Balances 19 112,257.89 100,284.42

Short-Term Loans and Advances 20 13,998.20 8,832.39

Other Current Assets 21 2,469.87 2,399.41

Total 307,034.46 266,973.48

Significant Accounting Policies 2

The Notes to the financial statements form an intergral part of the Financial Statements

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

For Price Waterhouse For and on behalf of the Board of Directors

Firm Registration Number: 301112E


Uday S. Kotak D. Kannan C.Jayaram

Chairman Managing Director Director

VivekPrasad

Partner

Membership Number: 104941

K.V.S. Manian TrivikramKamath SandeepChordia

Director Executive Company Secretary

Vice President

Mumbai Mumbai

Date : April 25, 2014 Date : April 23,2014


StatementofProfitandlossfor the year ended 31st March 2014

Note 31st March 2014 31st March 2013

` in Lacs ` in Lacs

INCOME

Revenue from Operations 22 44,086.14 43,123.96

Other Income 23 18,602.34 17,575.33

TotalIncome 62,688.48 60,699.29

EXPENSES

Employee Benefit Expenses 24 18,633.32 18,011.53

Interest and Other Financial Costs 25 168.09 337.54

Loss on sale of Investments (net ) (Refer Note 37) - 2,826.99

Depreciation and Amortisation Expense 1,174.08 1,348.72

Other Expenses 26 19,285.79 19,321.51

TotalExpenses 39,261.28 41,846.29

ProfitBeforeTax 23,427.20 18,853.00

TaxExpenses

Current Tax 8,025.14 6,839.01

Deferred Tax 971.23 402.11

Tax for earlier years (net) (1,586.11) 161.64

ProfitForTheYear 16,016.94 11,450.24

Earnings per Share on Equity Shares of ` 10 each

Basic and Diluted (In `) 1,001.06 715.64

(Refer Note 41)

SignificantAccountingPolicies 2

TheNotestothefinancialstatementsformanintergralpartoftheFinancialStatements

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






VivekPrasad

Partner




Vice President

Mumbai Mumbai



CashFlowStatementfor the year ended 31st March, 2014


` in Lacs ` in Lacs

Cashflowfromoperatingactivities

Profit before tax 23,427.20 18,853.00

Add adjustments for :

Depreciation / amortisation 1,174.08 1,348.72

Interest and other financial costs 14.80 126.49

Interest income (16,894.51) (14,211.66)

Dividend income (113.57) (72.25)

Provision for doubtful debts (written back) / provided 125.00 (676.13)

Provision for contingencies written back (net) - (944.34)

(Profit)/loss on sale of fixed assets (net) (22.75) (31.32)

(Profit)/loss on sale of current investments (net) (286.03) (155.13)

(Profit)/loss on sale of non current investments (net) 106.47 2,982.12

Provision for diminution in value of Investments/ (write back) 11.50 -

Operatingprofitbeforeworkingcapitalchanges 7,542.19 7,219.50

Adjustmentsforchangesinworkingcapital:

- Other long term liabilities 694.58 13.73

- Trade payables 24,337.57 (16,263.91)

- Provisions- long term and short term 192.49 247.23

- Other current liabilities 1,470.96 3,388.76

- Loans and advances- long term and short term (4,943.85) (2,973.59)

-Trade receivables (7,723.00) 9,601.30

- Stock in trade (10,744.40) 17,640.72

Cashgeneratedfromoperations 10,826.54 18,873.74

- Taxes paid (net of refunds) (8,875.52) (7,589.88)

Netcashfromoperatingactivities(A) 1,951.02 11,283.86

Cashflowfrominvestingactivities:

Purchase of fixed assets (including capital advances) (2,035.84) (884.12)

Proceeds from sale of fixed assets 46.75 108.16

Sale of investments - non-current 436.27 18,219.27

Purchase of investments - non-current (14,040.99) (10,437.02)

Sale of investments - current 709,086.03 421,805.13

Purchase of investments - current (699,800.00) (431,650.00)

Proceeds from fixed deposits redeemed/(Amount placed in fixed deposits)(net) (11,171.75) (22,057.97)

Interest received 16,834.64 13,682.29

Dividend on investments 102.98 72.25

Netcashfrom/(usedin)investingactivities(B) (541.91) (11,142.01)



` in Lacs ` in Lacs

Cashflowfromfinancingactivities:

Proceeds /(repayments) from /of borrowings (net) (1,754.74) 250.94

Interest and other finance charges paid (14.80) (126.49)

Netcashusedinfinancingactivities(C) (1,769.54) 124.45

NetIncreaseinCashandcashequivalents(A)+(B)+(C) (360.43) 266.30

Cashandcashequivalentsatthebeginningoftheyear 532.93 266.63

Cashandcashequivalentsattheendoftheyear 172.50 532.93

Cashandcashequivalentscompriseof

Cash on hand 7.24 8.31

Balances with scheduled banks 165.26 524.62

TOTAL 172.50 532.93

The Notes to the financial statements form an integral part of the Financial Statements

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.

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

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






VivekPrasad

Partner




Vice President

Mumbai Mumbai


CashFlowStatementfor the year ended 31st March, 2014

12

Notes Forming Part of the Financial Statements for the Year Ended 31St March, 2014


1. CORPORATEINFORMATION

Kotak Securities Limited (The Company) provides securities broking in cash equities, equity and currency derivatives segment, depository and primary market distribution services. The Company is a member of Bombay Stock Exchange Limited (BSE), National Stock Exchange of India Limited (NSE), OTC Exchange of India (OTC), MCX Stock Exchange Limited (MCX-SX) and United Stock Exchange of India Limited (USEIL). The Company is also a depository darticipant of National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) and is also registered as a portfolio manager with Securities and Exchange Board of India. The Company is registered as Mutual Fund Advisor with Association of Mutual Funds in India and also acts as corporate agent of Kotak Mahindra Old Mutual Life Insurance Limited.

2. SIGNIFICANTACCOUNTINGPOLICIES:

A. BASISOFACCOUNTING

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under Section 211(3C) of the Companies Act, 1956 (“the 1956 Act”) (which continue to be applicable in respect of Section 133 of the Companies Act, 2013 (“the 2013 Act”) in terms of General Circular 15/2013 dated 13 September, 2013 of the Ministry of Corporate Affairs) and the relevant provisions of the 1956 Act/ 2013 Act, as applicable.

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.

All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria set out in the Schedule VI to the Companies Act, 1956. Based on the nature of the services and the time between the provision of services and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

B. REVENUERECOGNITION

Revenue is recognized 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. DEBENTUREREDEMPTIONRESERVE

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. DISCOUNTEDINSTRUMENTS

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. STRUCTUREDLIABILITIES

The structured liabilities wherein the return on these liabilities is linked to non-interest benchmarks 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 derivatives as per ‘K’ below).

F. FIXEDASSETS–TANGIBLEANDINTANGIBLEASSETS

1. Fixed assets are stated at cost inclusive of incidental expenses less accumulated depreciation.

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:

LeaseholdImprovements Overtheperiodofleasesubjecttoamaximumof6years

Premises 58 years

Furniture and Fixtures 6 years

Computers 3 years

Office Equipments 5 years

Motor Vehicles 4 years

Software (intangible) 3 years

3. Losses arising from the retirement of and gains or losses arising from disposal of fixed assets which are carried at cost, are recogonised in the Statement of Profit and Loss

4. Fixed assets costing less than ` 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. CASHANDCASHEQUIVALENTS

Cash and cash equivalents includes cash in hand, demand deposits with banks and other fixed deposits with bank with original maturities of three months or less.

I. STOCKINTRADE

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. The profit or loss on sale of securities is recognised on trade date in the Statement of Profit and Loss.

J. FOREIGNCURRENCYTRANSACTIONS

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 Statement of Profit and Loss. 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 Statement of Profit and Loss.

The financial statement of an integral foreign operations are translated using principle and procedures as if the transactions of the foreign operations are that of the Company itself.

K. 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 used as input parameters are 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 Statement of Profit and Loss. Net unrealized gains are not recognised in the Statement of Profit and Loss on grounds of prudence as enunciated in Accounting Standard – 1, Disclosure of Accounting Policies.

14



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 Statement of Profit and Loss 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 Statement of Profit and Loss.

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.

L. SECURITIESLENDINGANDBORROWING

(a) Initial margin and /or additional margin paid over and above the initial margin, for entering into contracts for equity stock which are released on final settlement / squaring – up of the underlying contracts, are disclosed under Loans and Advances.

(b) The marked to market on securities lending and borrowing instrument is determined on a portfolio basis with net unrealized losses being recognised in the Statement of Profit and Loss. Net unrealized gains are not recognised in the Statement of Profit and Loss on grounds of prudence as enunciated in Accounting Standard – 1, Disclosure of Accounting Policies.

(c) On final settlement or squaring up of contracts for equity stocks the realised profit or loss after adjusting the unrealized loss already accounted, if any, is recognised in the Statement of Profit and Loss.

M. EMPLOYEEBENEFITS

LongTermEmployeeBenefits

(a) Defined Contribution Plan

Contribution as required by the Statute made to the Government Provident Fund is debited to the Statement of Profit and Loss.

(b) Defined Benefit Plan

The Company has a defined benefit plan for post employment benefits in the form of gratuity. The Company has formed a Trust “Kotak Securities Employees Gratuity Trust” which has taken group gratuity policies with an insurance company which is funded. The Trust is recognised by the Income Tax Authorities and is administered through trustees and / or the insurance companies. 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. The fair value of assets available with the insurance companies is compared with the gratuity liability as per an independent actuarial valuation at the year end and shortfall, if any, is provided in the financial statements. Actuarial gains and losses are recognised in the Statement of Profit and Loss.

(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.

ShortTermEmployeeBenefits

Otheremployeebenefits

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.

N. EMPLOYEESTOCKAPPRECIATIONSCHEME

Cash-settledtransactions:

The cost of cash-settled transactions (stock appreciation rights and employee stock option plan ) is measured initially using intrinsic value method at the grant date taking into account the terms and conditions upon which the instruments are granted. This intrinsic value is



amortised on a straight-line basis over the vesting period with a recognition of corresponding liability. This liability is remeasured at each balance sheet date up to and including the settlement date with changes in intrinsic value recognised in Statement of Profit and Loss in Salaries, Allowances and Bonus.

O. POLICYONSUPERANNUATION

The Company contributes a sum equivalent to 15% of eligible employees’ salary subject to a maximum of ` 1.00 lac per eligible employee per annum, to the Superannuation Funds administered by trustees and managed by a Life Insurance Company. The Company recognises such contributions as an expense in the year they are incurred.

P. BORROWINGCOST

Borrowing costs are recognised as an expense in the period in which they are incurred.

Q. TAXESONINCOME

The Income Tax expense comprises Current tax and Deferred tax. Current tax is measured at the amount expected to be paid in respect of taxable income for the year in accordance with the Income tax Act, 1961.

Deferred tax adjustments comprise of changes in the deferred tax assets and liabilities. Deferred tax assets and liabilities are recognised for the future tax consequences of timing differences being the difference between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets 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 Statement of Profit and Loss 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.

R. IMPAIRMENTOFASSETS

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors in accordance with Accounting Standard – 28, Impairment of Assets. The carrying amount is reduced to the recoverable amount and reduction is recognised as an impairment loss in the Statement of Profit and Loss.

S. PROVISIONS,CONTINGENTLIABILITIES&CONTINGENTASSETS

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.

T. OPERATINGLEASE

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 Statement of Profit and Loss on a straight-line basis over the lease term.

U. EARNINGSPERSHARE

The Company reports basic and diluted earnings per share (EPS) in accordance with Accounting Standard 20 on “Earnings Per Share”. Basic EPS is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year. Diluted EPS is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year as adjusted for the effects of all dilutive potential equity shares, except where the results are anti-dilutive.

V. POLICYONSEGMENT

The accounting policies adopted for segment reporting are in conformity with the accounting policies adopted for the Company.

Revenue and expenses have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue and expenses, which relate to the Company as a whole and are not allocable to segments on a reasonable basis, have been included under

“Unallocated corporate expenses/income”.

16




` in Lacs ` in Lacs

NOTE3:SHARECAPITAL

Authorised

1,000,000 Preference Shares of ` 100 each 1,000.00 1,000.00

6,000,000 Equity Shares of ` 10 each 600.00 600.00

1,600.00 1,600.00

Issued, Subscribed and Paid Up

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

TOTAL 160.00 160.00

Equity shares held by holding company and subsidiary of holding company

Particulars 31st March 2014 31st March 2013

No.ofshares ` in Lacs No. of shares ` in Lacs

Kotak Mahindra Bank Limited (Jointly with nominees) 1,199,990 120.00 1,199,990 120.00

Kotak Mahindra Capital Company Limited 400,010 40.00 400,010 40.00

1,600,000 160.00 1,600,000 160.00

Reconciliation of number of shares and equity share capital

Particulars 31st March 2014 31st March, 2013

No.ofshares ` in Lacs No. of shares ` in Lacs

Opening Balance at the beginning of the year 1,600,000 160.00 1,600,000 160.00

Add : Issued during the year - - - -

Less : Buy back during the year - - - -

ClosingBalanceattheendoftheyear 1,600,000 160.00 1,600,000 160.00

Equity Shares: The Company has one class of equity shares having a par value of ` 10 per share. Each shareholer is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amount, in proportion to their shareholding.

List of Shareholders holding more than 5 % of equity share capital

NameofShareholder 31st March, 2014 31st March, 2013

No.ofshares % No. of shares %

Kotak Mahindra Bank Limited and its nominees 1,199,990 75 1,199,990 75

Kotak Mahindra Capital Company 400,010 25 400,010 25


` in Lacs ` in Lacs

NOTE4:RESERVESANDSURPLUS

SecuritiesPremiumAccount

Balance as at the beginning and end of the year 2,350.35 2,350.35

GeneralReserve

Balance as at the beginning and end of the year 17,281.94 17,281.94

SurplusinStatementofProfitandLoss

Balance at the beginning of the year 173,635.03 162,184.79

Profit for the year 16,016.94 11,450.24

Balance as at the end of the year 189,651.97 173,635.03

TOTAL 209,284.26 193,267.32




` in Lacs ` in Lacs

NOTE5:OTHERLONGTERMLIABILITIES

Security Deposits 2,808.86 2,114.28

TOTAL 2,808.86 2,114.28

NOTE6:LONG-TERMPROVISIONS

Provisionforemployeebenefits

Leave Encashment and Compensated Absenses 650.52 661.74

Stock Appreciation Rights (Refer Note 39 (b)) 213.03 455.31

TOTAL 863.55 1,117.05

NOTE7:SHORTTERMBORROWINGS

Secured

Overdraft from Banks- repayable on demand 384.08 2,138.82

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

384.08 2,138.82

NOTE8:TRADEPAYABLES*

Trade Payables 83,258.69 59,043.97

Sundry Creditors 235.17 112.32

TOTAL 83,493.86 59,156.29

* 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 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.


` in Lacs ` in Lacs ` in Lacs ` in Lacs

NOTE9:OTHERCURRENTLIABILITIES

Income Received in Advance 264.19 292.15

Statutory Dues 730.77 823.77

Mark-to-Market Margin - Equity Index/Stock Futures 245.10 353.73

Less: Unrealised Gain (Refer Note 2 K 1 ) (245.10) - (353.73) -

Equity Index/Stock Option Premium 4,493.97 3,237.48

(Refer Note 2 K 2 ( b ) )

Add/(Less):Unrealised Loss/(Gain) 1,317.71 5,811.68 809.93 4,047.41

(Refer Note 2 K 1 )

Other Liabilities 1,010.49 1,157.26

Gratuity Payable (Refer Note 29 (a)) - 25.58

TOTAL 7,817.13 6,346.17

NOTE10:SHORT-TERMPROVISIONS

(a) ProvisionforEmployeeBenefits

Leave Encashment and Compensated Absenses 140.97 128.70

Stock Appreciation Rights (Refer Note 39 (b)) 710.39 276.67

(b) Others

Provision for Tax {Net of Advance Tax and Fringe Benefits Tax - ` 16,205.85 Lacs ( Previous year ` 32,427.93 Lacs)} 1,051.36 1,948.18

Contingencies (Refer Note 34) 320.00 320.00

TOTAL 2,222.72 2,673.55

18



NOTE11:FIXEDASSET ` in Lacs

DESCRIPTIONS GrossBlock Depreciation/Amortisation NetBlock

Asat1April2013

Additionsfor the

year

Disposals for the

year

Asat31March

2014

Asat1April2013

Chargefor the

year

Ondisposals

Asat31March

2014

Asat31March

2014

Asat31March

2013

TANGIBLE ASSETS

Leasehold Improvements 1,808.51 140.84 190.54 1,758.81 1,558.74 175.57 186.98 1,547.33 211.48 249.77

Premises (a) & (b) 5,270.49 - - 5,270.49 348.19 90.65 - 438.84 4,831.65 4,922.30

Furniture and Fixtures 262.91 17.78 27.66 253.03 256.03 15.17 27.34 243.86 9.17 6.88

Computers 6,279.65 1,025.82 367.13 6,938.34 5,745.80 458.63 366.99 5,837.44 1,100.90 533.85

Office Equipments ( c) 2,747.55 119.27 222.88 2,643.94 2,449.08 121.20 207.69 2,362.59 281.35 298.47

Motor Vehicles 829.76 293.34 109.99 1,013.11 425.41 219.49 105.20 539.70 473.41 404.35

TOTALTANGIBLEASSETS 17,198.87 1,597.05 918.20 17,877.72 10,783.25 1,080.71 894.20 10,969.76 6,907.96 6,415.62

Previousyear 16,882.57 804.04 487.74 17,198.87 9,974.14 1,220.03 410.92 10,783.25 6,415.62 6,908.44

INTANGIBLEASSETS

Software (d) 2,401.38 219.52 - 2,620.90 2,318.46 93.37 - 2,411.83 209.07 82.92

TOTALINTANGIBLEASSETS 2,401.38 219.52 - 2,620.90 2,318.46 93.37 - 2,411.83 209.07 82.92

Previousyear 2,322.78 80.08 1.48 2,401.38 2,191.23 128.69 1.46 2,318.46 82.92 131.55

a Includes value of shares in the co-operative society , aggregating to ` 4.00 Lacs (Previous Year ` 4.00 Lacs) registered in the name of the Company. The depreciation for the year is ` 0.06 Lacs (Previous Year ` 0.06 Lacs) and the written down value of the asset as on 31st March,2014 is ` 2.96 Lacs (Previous Year ` 3.02 Lacs)

b Includes assets given on operating lease aggregating to ` 2,437 Lacs (Previous Year ` 2,448.77 Lacs). The depreciation for the year is ` 41.92 Lacs (Previous Year ` 50.55 Lacs) and the written down value of the assets as on 31st March,2014 is ` 2,234.42 Lacs (Previous Year ` 2,292.01 Lacs).

c Includes asset given on operating lease aggregating to ` 329.68 Lacs (Previous Year ` 352.22 Lacs).The depreciation for the year is ` 0.29 Lacs (Previous Year ` 3.26 Lacs) and the written down value of the asset as on 31st March,2012 is ` Nil Lacs (Previous Year ` 0.29 Lacs )

d Includes asset given on operating lease aggregating to ` 177.35 Lacs (Previous Year ` 177.35 Lacs).The depreciation for the year is ` Nil (Previous Year ` Nil) and the written down value of the asset as on 31st March,2014 is ` Nil (Previous Year ` Nil ).

NOTE12:NON-CURRENTINVESTMENTS

Particulars Face Value

31st March 2014

31st March 2014

31st March 2013

31st March 2013

` Quantity ` in Lacs Quantity ` in Lacs

LongTermInvestments(OtherthanTrade)

(At Cost, less diminution other than temporary in nature)

Quoted

Debentures(fullypaid)

InvestmentinFellowSubsidiary

9.50%,Unsecured Non Convertible Debentures of Kotak Mahindra Prime Limited (Date of Redemption on 30th August, 2017) 1,000,000 500 5,000.00 500 5,000.00

10.50%,Unsecured Non Convertible Debentures of Kotak Mahindra Prime Limited (Date of Redemption on 23rd April, 2021) 1,000,000 1,500 15,000.00 1,500 15,000.00




31st March 2014

31st March 2014

31st March 2013

31st March 2013


11.00%,Unsecured Non Convertible Debentures of Kotak Mahindra Prime Limited (Date of Redemption on 23rd September, 2021) 1,000,000 500 5,000.00 500 5,000.00

11.25%,Unsecured Non Convertible Debentures of Kotak Mahindra Prime Limited (Date of Redemption on 28th September, 2021) 1,000,000 400 4,000.00 400 4,000.00

10.40% Unsecured Non Convertible Debentures of Kotak Mahindra Prime Limited (Date of Redemption on 25th September, 2022) 1,000,000 250 2,500.00 250 2,500.00

10.50% Unsecured Non Convertible Debentures of Kotak Mahindra Prime Limited (Date of Redemption on 22th Jun, 2023) 1,000,000 400 4,000.00 400 4,000.00

UnitsofMutualFund(fullypaid)

Others

Birla Sun Life Mutual Fund (FMP Series KT 380 days (Date of Redemption on 2nd April, 2015)) 10 17,000,000 1,700.00 - -

Kotak Mahindra Mutual Fund (FMP Series 145-390 days (Date of Redemption on 6th April, 2015)) 10 25,000,000 2,500.00 - -

Kotak Mahindra Mutual Fund (FMP Series 146 - 388 Days (Date of Redemption on 6th April, 2015)) 10 15,000,000 1,500.00 - -

DSP Black Rock Mutual Fund (FMP - Series 152 - 12.5M (Date of Redemption on 6th April, 2015)) 10 20,000,000 2,000.00 - -

ICICI Prudential Mutual Fund (FMP Series 72 -409 Days Plan S (Date of Redemption on 9th April, 2015)) 10 15,000,000 1,500.00 - -

HDFC Mutual Fund (FMP Series 29 (Date of Redemption on 14th April, 2015)) 10 10,000,000 1,000.00 - -

Birla Sun Life Mutual Fund (FMP Series KP (405 days) (Date of Redemption on 15th April, 2015)) 10 7,500,000 750.00 - -

ICICI Prudential Mutual Fund (Series 73 -407 Days Plan C (Date of Redemption on 16th April, 2015)) 10 10,000,000 1,000.00 - -

Kotak Mahindra Mutual Fund (FMP Series 142-420 days (Date of Redemption on 24th April, 2015)) 10 20,000,000 2,000.00 - -

HDFC Mutual Fund (HDFC Debt fund for cancer cure 2014 (Date of Redemption on 17th March, 2017)) 10 500,000 50.00 - -

SubTotal:(a) 140,003,550 49,500.00 3,550 35,500.00

Unquoted

EquityShares(fullypaid)

InvestmentinSubsidiary:

Kotak Mahindra Financial Services Limited incorporated in USD 1 1,239,000 585.57 1,239,000 585.57

Dubai, U.A.E.

20




31st March 2014

31st March 2014

31st March 2013

31st March 2013


InvestmentinFellowsubsidiary

Kotak Mahindra Prime Limited 10 1,712,600 27,080.69 1,712,600 27,080.69

Kotak Forex Brokerage Limited 10 - 1,989,706 198.97

Less : Provision for Diminution in Value of Investment - (180.00)

Others

Bombay Stock Exchange Limited 1 260,000 262.75 260,000 262.75

Siro Clinpharma Private Limited 10 998 446.29 998 446.29

Less : Provision for Diminution in Value of Investment (180.00) -

PreferenceShares(fullypaid)

InvestmentinFellowsubsidiary

8.5%,Cumulative Preference Share of Kotak Mahindra Asset 10 8,500,000 850.00 8,500,000 850.00

Management Company Limited (Date of Conversion on 05th January, 2019) )

Non Cumulative Preference Share of Kotak Mahindra Prime Limited (Date of Redemption on 15th April, 2016) 10 250,000 2,773.80 250,000 2,773.80

7.5% Cumulative Preference Share of Kotak Forex Brokerage Limited 500,000 - - 14 70.00

Others

Optionally convertible redeemable Preference Share of Indus Biotech Limited 100 175,000 605.33 175,000 605.33

UnitsofVentureCapitalFund:

Kotak Alternate Opportunities India Fund - 1,290.91 - 1,548.26

Kotak India Growth Fund II (partly paid up) - 159.84 - 135.27

Less : Provision for Diminution in Value of Investment (22.20) (10.70)

SubTotal:(b) 12,137,598 33,852.98 14,127,318 34,366.23

TotalLong-TermInvestments(a+b): 152,141,148 83,352.98 14,130,868 69,866.23

Aggregate Value of Quoted Investments

-At Book Value 49,500.00 35,500.00

-At Market Value ( Value of debentures which have not traded have been taken at Book Value and MF units which have not traded have been taken at Net Asset Value of the fund) 50,639.97 35,500.00

Aggregate Value of Unquoted Investments

-At Book Value 33,852.98 34,366.23

Aggregate provison for diminution in value of Investment 202.20 190.70




` in Lacs ` in Lacs

NOTE13:DEFERREDTAXASSET(Net)

DeferredTaxAsset

Provision for Doubtful Debts and Contingencies 531.94 489.46

Provision for Leave Encashment 269.03 268.67

Depreciation 256.31 570.03

Others 329.48 429.80

1,386.76 1,757.96

DeferredTaxLiability

Accured Interest on Debentures 363.16 -

Unrealised Gain on derivative contracts 230.16 -

Others 6.72 -

600.04 -

TOTAL 786.72 1,757.96

NOTE14:LONGTERMLOANSANDADVANCES

Unsecured,ConsideredGood

Advances Recoverable in Cash or Kind or for Value to be Received 12.59 18.94

Capital Advances 296.19 76.92

Prepaid Expenses 13.45 76.21

Advance Tax {Net of Provision of Tax and Fringe Benefit Tax - ` 14,031.73 Lacs ( Previous year ` 28,861.22 Lacs)}

2,718.71 1,179.03

Deposits with Exchanges/Depositories 421.42 460.32

Deposits -Others 801.23 915.18

TOTAL 4,263.59 2,726.60

NOTE15:OTHERNONCURRENTASSETS

Long-TermTradeRecievables:

Unsecured

Over Six Months 1,393.89 1,142.13

Others 122.16 248.92

Considered Doubtful (Refer Note 33) 1,516.05 1,391.05

Less : Provision for Doubtful Debts 1,516.05 1,391.05

- -

OtherBankBalances

Fixed Deposits (with maturity of more than 12 months)* 19,375.47 20,537.62

TOTAL 19,375.47 20,537.62

* Fixed deposits include ` 19,247.68 Lacs (Previous Year ` 15,676.80 Lacs) which is under the lien of National Securities Clearing Corporation Limited and ` 102.79 Lacs (Previous Year ` 4,782.70 Lacs) which is under the lien of Bombay Stock Exchange Limited and ` 25 Lacs (Previous year ` 25.00 Lacs) which is under the lien of Multi Commodity Exchange Limited

22



Face Value

31st March 2014

31st March 2014

31st March 2013

31st March 2013


NOTE16:CURRENTINVESTMENTS(OTHERTHANTRADE)

(At cost or fair value, whichever is lower)

Quoted

Debentures(fullypaid)

8.95% Unsecured Redeemable Non Convertible Debentures of Marico Industries (Date of Redemption 22nd Feb 2016) 1,000,000 - - 1,000 10,000.00

UnitsofMutualFund(fullypaid)

Kotak Mahindra Mutual Fund (FMP Series 138- 370 days (Date of Redemption on 25th Feburary, 2015)) 10 10,000,000 1,000.00 - -

10,000,000 1,000.00 1,000 10,000.00

Aggregate Value of Quoted Investments

-At Book Value 1,000.00 10,000.00

-At Market Value 1,000.00 10,000.00

NOTE17:STOCKINTRADE(SECURITIES)

Equity Shares

Aanjaneya Lifecare Limited 10 - - 2,183 2.92

Aditya Birla Nuvo Limited 10 10,000 108.19 - -

Amtek Auto Limited 2 1 - 1 -

Apollo Tyres Limited 1 - - 4,783 3.99

Arvind Mills Limited 10 30,000 42.51 10,000 7.30

Associated Cement Companies Limited 10 250 3.19 - -

Bajaj Auto Limited 10 125 2.47 - -

Bajaj Corp Limited 1 - - 75,982 165.91

Bajaj Electricals Limited 2 30,000 65.31 - -

Bajaj Finance Limited 10 10,000 157.04 - -

Bharat Heavy Electricals Limited 2 - - 11 0.02

Bharat Petroleum Corporation Limited 10 - - 1,000 3.76

Birla Corporation Limited 10 15,000 38.21 - -

Bombay Rayon Fashions Limited 10 - - 10,000 24.71

Cairn India Limited 10 - - 99,000 268.99

CESC Limited 10 - - 1,000 2.58

Cipla Limited 2 - - 25,000 94.94

City Union Bank Limited 1 - - 5,748 0.57

Colgate-Palmolive (India) Limited 1 - - 1,500 18.55

Credit Analysis & Research Limited 10 12,000 93.53 - -

Cummins India Limited 2 - - 55,404 272.56

D. B. Corp Limited 10 300 0.90 25,438 57.34

DCB Bank Limited 10 150,000 90.09 - -

Dish TV India Limited 1 51,000 26.55 - -

Dr Reddy’s Laboratories Limited 5 3,500 89.74 - -

Emami Limited 1 55,000 239.42 46,064 273.14

Gillette India 10 5,000 98.68 - -

372,176 1,055.83 363,114 1,197.28



Face Value

31st March 2014

31st March 2014

31st March 2013

31st March 2013


Equity Shares

Glaxo Smithkline Consumer Healthcare Limited 10 1,500 64.51 - -

Glenmark Pharmaceuticals Limited 1 10,000 52.76 - -

Godrej Properties Limited 5 50,000 89.35 - -

Grasim Industries Limited 10 37,375 1,034.40 - -

HCL Technologies Limited 2 2,000 27.81 - -

HDFC Bank Limited 2 933,000 6,926.28 - -

Hero Motocorp Limited 2 10,125 202.79 - -

Housing Development Finance Corporation Limited 2 500 4.20 - -

ICICI Bank Limited 10 30 0.37 94 0.98

Infosys Technologies Limited 5 20,500 672.97 3,000 86.28

Infrastructure Dev Finance Company Limited 10 604,000 709.37 - -

Ingersoll-Rand (India) Limited 10 - - 23,096 89.30

Ipca Laboratories Limited 2 51,000 390.86 - -

IRB Infrastructure Developers Limited 10 21,009 20.33 - -

ITC Limited 1 154,000 543.39 - -

Jagran Prakashan Limited 2 5,000 5.05 - -

JSW Energy Limited 10 95,055 54.77 - -

JSW Steel Limited 10 500 5.16 - -

Jubilant Foodworks Limited 10 100 1.01 - -

Karur Vysya Bank Limited 10 - - 25,212 113.55

Kolar Biotech Limited 1 10,000 - 10,000 -

Larsen & Toubro Limited 2 500 6.23 - -

Lupin Ltd 2 219,689 2,032.83 - -

Mahindra & Mahindra Ltd 5 24,000 235.37 - -

Mahindra And Mahindra Financial Services Limited 2 1,000 2.45 - -

Mahindra Satyam Limited 2 - - 60,000 75.93

Mangalam Cement Limited 10 - - 51,577 68.62

Maruti Suzuki India Limited 5 56,250 1,041.24 4,000 51.06

MINDTREE Limited 10 9,500 125.51 - -

Monsanto Chemicals 10 5,000 52.46 - -

Multi Commodity Exchange Of India Limited 10 - - 10,000 82.75

National Buildings Construction Corp Limited 10 - - 60,000 73.08

Nestle India Ltd 10 5,000 251.44 - -

Oberoi Realty Limited 10 59,200 119.53 - -

Oil India Limited 10 - - 80,000 408.60

Oracle Financial Services Software Limited 5 - - 12,000 307.24

Pantaloon Retail (India) Limited 2 - - 206,000 308.38

2,385,833 14,672.44 544,979 1,665.77

24



Face Value

31st March 2014

31st March 2014

31st March 2013

31st March 2013


Equity Shares

Punjab & Sind Bank 10 - - 97,478 56.78

Punjab National Bank 10 37,500 202.31 223,000 1,600.92

Rallis India Limited 1 100,000 160.43 - -

Ranbaxy Laboratories Limited 5 28,000 97.26 - -

Reliance Capital Limited 10 20,000 66.62 - -

Reliance Industries Limited 10 39,655 355.93 - -

Reliance Infrastructure Limited 10 - - 255,500 822.14

Reliance Power Limited 10 3,530 2.43 - -

SBI Home Finance Limited 10 300 - 300 -

Schenectady-Beck India Limited 10 11,049 63.52 - -

Shree Cement Limited 10 3,000 130.34 3,067 124.01

Sobha Developers Limited 10 36,700 121.49 32,500 113.13

Solar Industries India Limited 10 - - 3,400 33.52

Spice Jet Limited 10 - - 750,000 199.88

Standard Chartered PLC IDR 23 - - - 57,000 60.28

Sun Pharmaceuticals Industries Limited 1 500 2.86 - -

Swaraj Engines Limited 10 - - 13,834 54.71

Tata Consultancy Services Limited 1 30,625 653.28 - -

Tata Motors Limited 2 103,000 401.56 - -

Tata Motors Limited DVR 2 28,000 53.56 8,000 12.22

Tata Steel Limited 10 18,000 64.87 25,000 77.35

Tech Mahindra Limited 10 1,000 17.95 - -

TITAN Company Limited 1 58,000 147.96 - -

United Spirits Limited 10 - - 98,500 1,845.00

Va Tech Wabag Limited 2 200 1.04 - -

Wipro Limited 2 45,000 244.44 - -

Zee Entertainment Enterprises Limited 1 100,000 266.35 - -

Zydus Wellness Limited 10 - - 20,000 85.68

Subtotalforequityshares(A) 3,422,068 18,782.47 2,495,672 7,948.67

Exchange Traded Fund

Kotak Mahindra Mutual Fund-Gold Exchange Traded Fund 100 900 24.05 1,930 53.73

Kotak Mahindra Mutual Fund - PSU Bank Exchange Traded Fund 10 3,339 9.02 2,675 8.25

Kotak Mahindra Mutual Fund-Kotak Sensex Exchange Traded Fund 10 9,922 21.95 9,256 17.99

Kotak Mahindra Mutual Fund-Kotak Nifty Exchange Traded Fund 10 3,031 20.04 14,597 84.49

Subtotalforexchangetradedfund(B) 17,192 75.06 28,458 164.46

TOTAL(A+B) 3,439,260 18,857.53 2,524,130 8,113.13

(Refer Note 30 and 31)

Aggregate Value of Stock-In-Trade

-At Book Value 18,857.53 8,113.13

-At Market Value 19,458.57 8,172.30




` in Lacs ` in Lacs

NOTE18:TRADERECEIVABLES

ConsideredGood*

Trade Recievable outstanding for a period exceeding six months 1,566.42 1,314.67

from the date they were due for payment

Others ** 41,988.76 34,642.51

TOTAL 43,555.18 35,957.18

(Refer note 33)

* Trade Receivable - considered good include secured debtors ` 37,834.34 Lacs (Previous Year ` 31,419.99 Lacs)

** Due from Directors ` Nil Lacs (Previous Year ` Nil Lacs), maximum amount outstanding during the year from Directors ` 13.54 Lacs (Previous Year ` 12.35 Lacs)

NOTE19:CASHANDBANKBALANCES

Cash and Cash Equivalents

Cash on Hand 7.24 8.31

Balances with Banks in :

Current Account 165.26 524.62

Other Bank Balances

Fixed Deposits (with maturity of less than 12 months) * 112,085.39 99,751.49

TOTAL 112,257.89 100,284.42

* Fixed deposits include ` 95,379.66 Lacs (Previous Year ` 76,202.76 Lacs) which is under the lien of National Securities Clearing Corporation Limited and ` 8,659.52 Lacs (Previous Year 2,757.62 Lacs) which is under the lien of Bombay Stock Exchange Limited and ` 3,016.51 Lacs (Previous year ` 4,142.79 Lacs) which is under the lien of Multi Commodity Exchange Limited


` in Lacs ` in Lacs ` in Lacs ` in Lacs

NOTE20:SHORTTERMLOANSANDADVANCES

Unsecured,ConsideredGood

Loans 457.52 191.02

Advances Recoverable in Cash or Kind or for Value to be Received 602.99 87.07

Prepaid Expenses 572.39 652.21

Initial Margin - Equity Derivative Instrument ( Refer Note 2 K 2 (a) ) 10,688.33 7,156.75

Mark-to-Market Margin - Equity Index/Stock Futures 250.63 42.73

Less: Provision for Loss ( Refer Note 2 K 1 ) (250.63) - (42.73) -

Equity Index/Stock Option Premium ( Refer Note 2 K 2 (b) ) 1,186.85 1,045.25

Add/(Less) :Unrealised Gain/(Loss) ( Refer Note 2 K 1 ) 427.43 1,614.28 (340.13) 705.12

Gratuity Recievable (Refer Note 29 (a)) - -

Other Advances 62.69 40.22

13,998.20 8,832.39

NOTE21:OTHERCURRENTASSETS

Interest Accrued on Fixed Deposits 1,318.58 1,162.27

Interest Accured on Debentures 1,068.45 1,164.89

Dividend Accrued on Preference Shares 82.84 72.25

TOTAL 2,469.87 2,399.41

26




` in Lacs ` in Lacs

NOTE22:REVENUEFROMOPERATIONS

(A)RevenueFromOperations

Income from Brokerage {(Net of brokerage Income pertaining to earlier years written off 34,390.93 34,746.21

` 26.41 Lacs (Previous Year ` 1.00 Lacs)}

Less : Sub Brokerage/Referral Fees and Expenses 3,152.99 3,568.18

31,237.94 31,178.03

Fee Income - Gross (Refer Note 35) 4,071.62 4,039.91

Less : Referral Fees 94.57 123.98

3,977.05 3,915.93

(B)RevenueFromOtherFinancialServices

Interest Income- Others (Net of interest Income pertaining to earlier years written off 3,003.21 3,603.50

` 133.74 Lacs (Previous Year ` 108.52 Lacs))

Profit on Trading in Securities (net) (Refer Note 31) 5,867.94 4,426.50

8,871.15 8,030.00

TOTAL 44,086.14 43,123.96

NOTE23:OTHERINCOME

Interest on Bank Deposits 13,085.84 10,809.69

Interest on Staff Loans 12.46 10.52

Interest on Debentures 3,796.21 3,391.45

Liabilities Written Back as no Longer Required (Refer Note 38) 61.06 349.73

Provision for Contingencies Written Back (net) - 944.34

Profit on Sale of Fixed Assets (net) 22.75 31.32

Provision for Doubtful Debts Written Back (net) - 676.13

Dividend Income (Refer Note 36) 248.24 192.50

Profit on sale of Investments (Refer Note 37) 179.56 -

Rent 557.99 539.99

Bad Debts Recovery 91.06 -

Miscellaneous Income 547.17 629.66

TOTAL 18,602.34 17,575.33

NOTE24:EMPLOYEEBENEFITEXPENSES

Salaries, Allowances and Bonus 17,348.92 16,590.90

Contribution to Provident and Other Funds (Refer Note 29(b)) 941.42 910.68

Compensated Absences and Leave Encashment 47.27 20.60

Gratuity 25.95 222.68

Reimbursement of expense on ESOP Scheme (Refer Note 39 (a)) 43.70 130.56

Staff Welfare 421.45 342.10

Total: 18,828.71 18,217.52

Less : Recovery of Expenses (Refer Note 40) 195.39 205.99

TOTAL 18,633.32 18,011.53




` in Lacs ` in Lacs

NOTE25:INTERESTANDOTHERFINANCIALCOSTS

Interest/Discount on Term Loan/Other Fixed Loans - 81.41

Interest on Bank Overdraft 7.51 35.80

Bank Guarantee Commission and Other Charges 7.29 9.28

Interest-Other 153.29 211.05

TOTAL 168.09 337.54

NOTE26:OTHEREXPENSES

Travelling, Conveyance and Motor Car 1,071.00 900.43

Professional and Legal 2,528.57 2,473.67

Auditors' Remuneration

Audit Fees 57.50 57.50

In Other Capacity 1.00 1.50

Out of Pocket Expense 0.81 0.75

Provision for Doubtful Debts 125.00 -

Provision for Diminution in Value of Investments 11.50 -

Repairs and Maintenance - Others 994.80 972.79

Office 306.06 297.66

Communication 1,803.46 1,494.79

Printing and Stationery 394.91 401.08

Stock Exchanges Expenses 10.89 85.60

Electricity 774.10 713.16

Membership and Subscription 717.29 690.66

Rent 3,261.89 2,828.73

Rates and Taxes (Net of recoveries) 949.69 769.79

Advertising, Business Promotion and Entertainment 1,114.58 805.39

Securities Transaction Tax on Proprietory Trades 603.61 826.01

Bad Debts Written Off - 865.13

Service Charges 498.10 648.13

Common Establishment Expenses-Reimbursement 3,278.67 3,640.80

Depository Charges 199.44 186.41

Insurance 239.73 233.56

Loss on Account of Trades Not Confirmed by Clients, Error Trades and Other Settlements Cost (net) 91.60 67.39

Miscellaneous 283.68 382.70

Total 19,317.88 19,343.63

Less : Recovery of Expenses (Refer Note 40) 32.09 22.12

TOTAL 19,285.79 19,321.51

28



27. ContingentLiabilities:-

(a) Income tax matters in respect of which appeal is pending - ̀ 258.35 Lacs (Previous Year ̀ 258.35 Lacs). This is being disputed by the Company and hence not provided for. Out of the total demand of ` 2,188.84 Lacs (Previous Year ` 2,188.84 Lacs), the Company has already paid an amount of ` 1,998.39 lacs (Previous Year ` 728.55 Lacs). The balance of ` 190.45 lacs (Previous Year ` 1,460.29 Lacs) has not been paid as the Company has filed a rectification application with the Income tax authorities for incorrect charging of interest under section 234B.

(b) Service tax matters in respect of which appeal is pending - ̀ 104.03 Lacs (Previous Year ̀ 104.03 Lacs). This is being disputed by the Company and hence not provided for.

(c) Capital commitments (net of advances) - ` 518.41 Lacs (Previous Year ` 394.90 Lacs)

(d) Claims against the Company not acknowledged as debt by the Company – ` 384.36 Lacs (Previous Year – ` 397.20 Lacs)

(e) Property tax payable in respect of Premises - ` 71.80 Lacs (Previous Year ` Nil Lacs). This is being disputed by the Company and hence not provided for.

28. (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 61 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 Statement of Profit and Loss under the head ‘Rent’ in Note 26.

(c) The future minimum lease payments under non-cancellable operating lease – not later than one year is ` 46.46 Lacs (Previous Year ` 103.64 Lacs) and later than one year but not later than five years is ` 257.90 Lacs (Previous Year ` 6.30 Lacs).

29.EmployeeBenefits:-

(a) Gratuity

The Company has formed a Trust “Kotak Securities Employees Gratuity Trust” which has taken group gratuity policies with an insurance company which is funded. The Trust is recognised by the Income Tax Authorities and is administered through trustees and / or the insurance companies.

(i) Reconciliation of opening and closing balances of the present value of the defined benefit obligation for gratuity benefits is given below.

(` in Lacs)


ChangeinDefinedBenefitObligation

OpeningDefinedBenefitObligation 1,130.45 1,027.14

Current Service Cost 204.60 179.09

Interest Cost 103.76 99.90

Actuarial Losses / (Gain) (144.05) 51.20

Liabilities Extinguished on Settlements 6.54 (26.02)

Benefits Paid (152.06) (200.86)

ClosingDefinedBenefitObligation 1,149.24 1,130.45

(ii) Reconciliation of Change in fair value of plan assets

(` in Lacs)


Opening fair value of assets 1,104.88 1,085.81

Expected return on plan assets 77.98 76.38

Actuarial gain/(loss) 60.38 23.69

Contributions by employer 91.64 119.86

Benefit Paid (152.06) (200.86)

Closingfairvalueofassets 1,182.82 1,104.88



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

(` in Lacs)


Present Value of Obligations as at year end 1,149.25 1,130.45

Fair Value of Plan Assets (1,182.82) (1,104.87)

Net(Asset)/Liability–Current (33.57) 25.58

Net(Asset)/Liability–Non-Current - -

(iv) Cost recognised for the year

(` in Lacs)


Current Service Cost 204.60 179.09

Interest on Defined Benefit Obligation 103.76 99.90

Expected Return on Plan Assets (77.98) (76.38)

Net Actuarial Losses / (Gains) Recognized in Year (204.43) 27.52

Others - (7.45)

Total,IncludedinNoteNo24EmployeeBenefitExpenses-Gratuity 25.95 222.68

Actual Return on Plan Assets 138.37 100.07

(v) Asset information


Insurer managed funds 100% 100%

(` in Lacs)

Type of Investment 31st March 2014 31st March 2013

% Amount % Amount

Equity 53.97% 638.37 54.69% 604.22

Government securities 24.53% 290.15 17.16% 189.64

Bonds, debentures and other fixed income instruments 10.02% 118.52 16.75% 185.08

Money market instruments 11.49% 135.79 11.40% 125.93

1,182.83 1,104.87

(vi) Principal actuarial assumption

Particulars Assumptionsin31stMarch 2014

Assumptions in 31st March 2013

Discount Rate 9.34% per annum 8.24% per annum

Expected Rate of Return on Assets 7.50% per annum 7.50% per annum

Salary Escalation Rate 8.50% per annum 8.50% per annum

30



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

(` in Lacs)

31st March, 2014

31st March, 2013

31st March, 2012

31st March, 2011

31st March, 2010

Defined Benefit Obligation 1149.25 1130.45 1027.14 880.14 535.7

Plan Assets 1182.82 1104.87 1085.81 - -

Surplus/ (Deficit) 33.57 (25.58) 58.67 (880.14) (535.7)

Experience Adjustment on Plan Liabilities (10.14) 53.61 7.21 14.96 57.98

Experience Adjustment on Plan Assets 60.39 23.69 13.15 - -

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

(` in Lacs)


Employers Contribution to Provident Fund 875.22 839.24

Superannuation Fund 4.50 5.79

Employees State Insurance Corporation 56.38 63.12

Contribution to National Pension Scheme 5.32 2.53

Total 941.42 910.68

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

31. Quantitative Information in Respect of Trading in Securities#


Quantity Value Quantity Value

Nos. (`inLacs) Nos. (` in Lacs)

OpeningStock(A)

Equity Shares and ETFs 2,513,829 8,113.13 13,367,649 25,753.85

TOTAL(A) 2,513,829 8,113.13 13,367,649 25,753.85

Purchases


Bonds & Other Securities 1,271,979 61,462.67 2,847,819 49,213.90

TOTAL(B) 57,015,218 258,542.10 90,871,060 274,972.43

Sales


Bonds & Other Securities 1,271,979 61,596.03 2,847,819 49,281.11

TOTAL(C) 56,100,588 250,576.80 101,724,880 293,394.96

ClosingStock(D)


TOTAL(D)# 3,428,459 18,852.39 2,513,829 8,113.13

ProfitonTradinginOptions/Futures(Net)(E) 3,093.98 3,644.69

Profit(D+C-B-A+E) 5,867.94 4,426.50

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



32. (a) Outstanding Future Contracts as on 31st March, 2014.

(` in Lacs)


Type of Derivative NoofContracts

NoofUnits NotionalAmount

No of Contracts

No of Units Notional Amount

S&P CNX Nifty Futures 419 20,950 1,468.37 1,135 56,750 3,281.40

Bank Nifty 277 6,925 888.25 26 650 72.87

Stock Futures 7,539 5,740,625 25,538.40 7,428 7,686,000 18,265.32

Currency Futures 1,239 1,239,000 750.46 1,785 1,785,000 976.40

The above contracts are held for trading purposes.

(b) Outstanding Option Contracts as on 31st March, 2014.

(` in Lacs)


Type of Derivative No.ofContracts

No.ofUnits TotalPremium Carried

Forward

No. of Contracts

No. of Units Total Premium

Carried Forward

Bank Nifty option long 480 12,000 13.61 126 3,150 4.71

Bank Nifty option short 828 20,700 56.87 105 2,625 7.19

S&P CNX Nifty Options Long 11,898 594,900 1,150.86 9,353 467,650 1,008.58

S&P CNX Nifty Options Short 16,504 825,200 4,396.64 12,121 606,050 3,227.93

Currency option long - - - 1,933 1,933,000 31.96

Currency option short 3,006 3,006,000 20.82 1,979 1,979,000 1.61

Stock Options Long 298 746,000 22.38 - - -

Stock Options Short 211 620,250 19.64 12 12,000 0.75

The above contracts are held for trading purposes.

(c) Particulars of unhedged foreign currency exposures as at the reporting date.


Investments (in US Dollars) 1,239,000 1,239,000

Receivables (in Bahrain Dinars) - 396,766

Payables (in Bahrain Dinars) - 396,766

33. 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. Trade Receivables include ` Nil Lacs (Previous Year ` 4,449.89 Lacs) on account of loans granted under margin trading facility to clients against pledge of securities.

34. Provision for Contingencies: -

(` in Lacs)

Nature of Liability Provision as on 1st April, 2013

Addition Amount Used

Unused Amount Reversed

Provisionason31st March, 2014

Stamp Duty on Trades 320.00 - - - 320.00

Total 320.00 - - - 320.00

PreviousYear 1,264.34 - - 944.34 320.00

Based on legal opinion and past trends, the Management is of the view that certain provisions for earlier years are no longer required and have reversed ` Nil Lacs (Previous Year ` 944.34 Lacs).

32



35. Fee Income: -

(` in Lacs)


Client Money Management Services * 103.11 171.99

Depository Fees 2,997.09 2,968.22

Advisory Fees 637.95 320.12

Other Fees 333.47 579.58

Total 4,071.62 4,039.91

* Net of Income pertaining to earlier years written off ` 69.45 lacs (Previous Year ` 136.45 Lacs)

36. Dividend income represents dividend on long term investments (other than trade) ` 113.57 Lacs (Previous Year ` 72.25 Lacs) and on stock in trade ` 134.67 Lacs (Previous Year ` 120.25 Lacs).

37. Profit on sale of investments represents profit on sale of current investments (other than trade) ` 286.03 Lacs (Previous Year ` 155.13 Lacs) and loss on sale of long term investments (other than trade) ` 106.47 Lacs (Previous Year profit of ` 2,982.12 Lacs).

38. Liabilities written back comprises of provision no longer required in respect of sub brokerage ` 33.55 Lacs (Previous Year ` 324.58 Lacs) and expenses ` 27.51 Lacs (Previous Year ` 25.15 Lacs).

39. EMPLOYEESHAREBASEDPAYMENTS:-

(a) At the General Meetings of the holding company, Kotak Mahindra Bank Limited, (“the Bank”), the shareholders of the Bank had unanimously passed Special Resolutions on 5th July, 2007 and 21st August, 2007 to grant options to the eligible Employees of the Bank and its subsidiary companies. Pursuant to these resolutions, ‘Kotak Mahindra Equity Option Scheme 2007’ had been formulated and adopted.

Consequent to the above, the Bank has granted stock options to employees of the Company In accordance with the SEBI Guidelines and the guidance note on “Accounting for Employee Share based payments”, the excess, if any, of the market price of the share, preceding the date of grant of the option under ESOSs over the exercise price of the option is amortised on a straight-line basis over the vesting period. The Company has reimbursed the Bank ` 43.70 Lacs (Previous Year ` 130.56 lacs) during the year on account of such costs and the same is forming part of Employee costs and included under the head “Reimbursement of expense on ESOP Scheme” under Note 24 Employee Benefit Expenses.

(b) STOCKAPPRECIATIONRIGHTS

The Holding Company has granted stock appreciation rights (SARs) to select employees of the Company which will be settled in cash. These options will vest on the respective due dates in a graded manner as per the terms and conditions of grant. The contractual life of the SARs range from 0.25 years to 2.75 years. The intrinsic value of SARs is measured at the grant date taking into account terms and conditions upon which the instruments are granted.

Detail of activity under SARs is summarized below: -

No. of SARs

Particulars 31 March 2014 31 March 2013Outstanding at the beginning of the year 200,935 186,170Granted during the year 75,102 105,934Exercised during the year 91,941 72,002Expired/ Transferred during the year 3,483 19,167Outstanding at the end of the year 180,613 200,935

Effect of the employee share-based payment plans on the statement of profit and loss and on its financial position:

(` in Lacs)

Particulars 31 March 2014 31 March 2013

Total Employee Compensation Cost pertaining to share-based payment plans 896.53 840.32

Closing balance of provision for cash-settled options - Current 710.39 276.67

Closing balance of provision for cash-settled options – Non-Current 213.03 455.31

40. Recovery of expenses in Note 24 and Note 26 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.



41. Earnings per share (Face value ` 10) -

Earnings 2013-14 2012-13

Profit for the year (in lacs) 16,016.94 11,450.24

Weighted average number of shares (in lacs) 16 16

Earnings per share (Basic and Diluted) – in ` 1,001.06 715.64

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

i. Travelling ` 22.85 Lacs (Previous Year ` 16.02 Lacs) ii. Membership and Subscription ` 119.41 Lacs (Previous Year ` 151.40 Lacs) iii. Software ` 94.19 Lacs (Previous Year ` 147.85 Lacs) iv. Business Promotion ` 564.93 Lacs (Previous Year ` 207.39 Lacs) v. Common Establishment Expenses - Reimbursement ` 422.68 Lacs (Previous Year ` 626.51 Lacs) vi. Communication ` 441.40 Lacs (Previous Year ` 207.51 Lacs) vii. Data Processing Charges ` 28.90 Lacs ( Previous Year ` 28.53 Lacs) viii. Salary ` Nil Lacs (Previous Year ` 126.22 Lacs) ix. Branch Expenses ` Nil Lacs (Previous Year ` 4.41 Lacs) x. Others ` 4.68 Lacs (Previous Year ` 15.50 Lacs) xi. Professional Fees ` 157.30 Lacs (Previous Year ` 150.69 Lacs).

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

i. Advisory Fees ` 637.95 Lacs (Previous Year ` 320.12 Lacs) ii. Interest Income ` 7.38 Lacs (Previous Year ` 11.56 Lacs) iii. Other Income ` 89.88 Lacs (Previous Year ` 198.46 Lacs).

(c) Remittance in Foreign Currency:

Towards further capitalization of subsidiary ` Nil Lacs (Previous Year ` 13.33 Lacs) Towards remittance to branch ` Nil Lacs (Previous Year ` 88.17 Lacs)

43. Segment Information for the year ended 31st March, 2014

(a) Information about Primary Business Segments

Particulars Broking TradingandPrincipal

Investments

Unallocated Total

SegmentRevenueIncome from external customers 45,946.50 16,565.51 115.42 62,627.43Previous year 47,565.13 11,575.13 264.96 59,405.22Liabilities written back as no longer required 61.06 - - 61.06Previous year 1,294.07 - - 1,294.07Total 46,007.56 16,565.51 115.42 62,688.49Previous year 41,859.20 18,575.13 264.96 60,699.29Segment result 9,318.30 14,091.77 17.13 23,427.20Previous year 12,939.57 5,719.79 193.64 18,853.00IncomeTax–Current,DeferredandFringeBenefitTax 7,410.26 7,410.26Previous year 7,402.76 7,402.76NetProfit 16,016.94Previous year 11,450.24OtherInformationCarrying amount of segment assets 124,261.07 178,666.32 4,107.07 307,034.46Previous year 111,021.96 146,805.30 9,146.22 266,973.48Carrying amount of segment liabilities 89,261.08 6,395.76 1,933.36 97,590.20Previous year 66,021.96 5,337.84 2,186.36 73,546.16Cost to acquire tangible fixed assets 1,376.13 0.74 439.70 1,816.57Previous year 380.86 2.32 500.94 884.12Depreciation / Amortisation 1,067.08 102.54 4.46 1,174.08Previous year 955.78 330.88 62.06 1,348.72

34



(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 fixed deposit and 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.

(ii) Unallocated revenue consists of Income from external customers ̀ 115.42 Lacs (Previous year ̀ 264.96 Lacs). and Liabilities Written Back as no longer required ` Nil (Previous Year ` 59.43 Lacs)

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

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

(v) The company operates in single geographical segment, accordingly the reporting requirements of secondary segement disclosure prescribed under paragraph 39 to 51 of Accounting Standard 17 on ‘Segment Reporting’ have not been provided in the financial statements.

44. 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: Natureofrelationship RelatedParty 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

43.58% of the equity share capital of KMBL Subsidiary Kotak Mahindra Financial Services Limited

B. Other Related Parties: (i) Fellow Subsidiaries: Kotak Mahindra Capital Company Limited Kotak Mahindra Prime Limited Kotak Mahindra Asset Management Company Limited Kotak Forex Brokerage Limited Kotak Mahindra Inc. Kotak Mahindra International Limited Kotak Mahindra Investments Limited Kotak Investment Advisors Limited Kotak Mahindra Old Mutual Life Insurance Company Limited Kotak Mahindra Trustee Company Limited Kotak Mahindra (Uk) Limited

(ii) Key management personnel Mr. Uday S. Kotak, Non Executive Chairman Mr. Narayan S. A., Non Executive Director Mr. C.Jayaram, Non Executive Director Mr. D. Kannan, Managing Director Mr. K.V.S Manian Director

(iii) Relatives of key management Mrs. Rekha Narayan personnel Mr. D G Subramanian Mrs. Lakshmi S Mr. A.K.S Mani Mr. Dhawal kotak Mrs. Indira Suresh Kotak Mrs. N Rajambal Mr. Suresh Kotak



(iv) Enterprises over which Director/ Aero Agencies Limited key management personnel/ relatives of Komaf Financial Services Limited key management personnel have Kotak Commodity Services Limited significant influence Infina Finance Private Limited ACE Derivatives and Commodity Exchange Limited Matrix Business Services India Private Limited Asian Machinery and Equipment Private Limited

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

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

Debentures Taken Kotak Mahindra Prime

Limited - - - - - 6,500.00 - - - - - - - 6,500.00

Debentures Taken

Total - - - - - 6,500.00 - - - - - - - 6,500.00

Dividend on

Preference shares

Kotak Mahindra

Asset Management

Company Limited - - - - 72.25 72.25 - - - - - - 72.25 72.25

Kotak Mahindra Prime

Limited - - - - 2.50 - - - - - - - 2.50 -

Dividend on

Preference shares

Total - - - - 74.75 72.25 - - - - - - 74.75 72.25

Dividend on Equity

shares


Limited - - - - 10.28 - - - - - - - 10.28 -

Dividend on Equity

shares Total - - - - 10.28 - - - - - - - 10.28 -

Investments Taken Kotak Mahindra

Financial Services

Limited - - - 13.33 - - - - - - - - - 13.33

Kotak Forex Brokerage

Limited - - - - - 70.00 - - - - - - - 70.00


Limited - - - - - 2,773.80 - - - - - - - 2,773.80

Investments Taken

Total - - - 13.33 - 2,843.80 - - - - - - - 2,857.13

Investments

Redeemned


Limited - - - - 88.97 - - - - - - - 88.97 -

Kotak Mahindra

Capital Company

Limited - - - - - 21,000.00 - - - - - - - 21,000.00

Investments

Redeemned Total - - - - 88.97 21,000.00 - - - - - - 88.97 21,000.00

Loss on sale of

Investment

Kotak Mahindra Bank

Limited 179.07 949.20 - - - - - - - - - - 179.07 949.20

Kotak Mahindra

Capital Company

Limited - - - - - 2,082.03 - - - - - - - 2,082.03

36



Nature of

Transactions




Companies

Key Management

Personnel

Relatives of Key






Grand Total

Current

Year

Previous

Year

Current

Year

Previous

Year

Current

Year

Previous

Year

Current

Year

Previous

Year

Current

Year

Previous

Year


Loss on sale of

Investment Total 179.07 949.20 - - - 2,082.03 - - - - - - 179.07 3,031.23

Deposits Taken Kotak Commodity

Services Limited - - - - - - - - - - 1.84 1.57 1.84 1.57

Deposits Taken Total - - - - - - - - - - 1.84 1.57 1.84 1.57

Deposits Repaid Kotak Commodity


Deposits Repaid Total - - - - - - - - - - 31.66 1.86 31.66 1.86

Deposits paid Kotak Commodity

Services Limited - - - - - - - - - - 3.15 - 3.15 -

Deposits paid Total - - - - - - - - - - 3.15 - 3.15 -

Fixed Deposits Placed

During The Year

Kotak Mahindra Bank

Limited 283,186.16 252,994.07 - - - - - - - - - - 283,186.16 252,994.07


During The Year

Total 283,186.16 252,994.07 - - - - - - - - - - 283,186.16 252,994.07

Fixed Deposits Repaid

During The Year

Kotak Mahindra Bank

Limited 271,581.23 230,972.50 - - - - - - - - - - 271,581.23 230,972.50

Fixed Deposits

Repaid During The

Year Total 271,581.23 230,972.50 - - - - - - - - - - 271,581.23 230,972.50

Interest Received On

Fixed Deposits

Kotak Mahindra Bank

Limited 13,078.13 10,797.42 - - - - - - - - - - 13,078.13 10,797.42

Interest Received On

Fixed Deposits Total 13,078.13 10,797.42 - - - - - - - - - - 13,078.13 10,797.42

Interest On

Debentures


Limited - - - - 3,730.00 3,298.27 - - - - - - 3,730.00 3,298.27

Interest On

Debentures Total - - - - 3,730.00 3,298.27 - - - - - - 3,730.00 3,298.27

Outstandings

Overdraft From Banks Kotak Mahindra Bank

Limited 380.80 2,138.82 - - - - - - - - - - 380.80 2,138.82

Overdraft From Banks

Total 380.80 2,138.82 - - - - - - - - - - 380.80 2,138.82

Debentures Taken Kotak Mahindra Prime

Limited - - - - 35,500.00 35,500.00 - - - - - - 35,500.00 35,500.00

Debentures Taken

Total - - - - 35,500.00 35,500.00 - - - - - - 35,500.00 35,500.00

Interest Accrued On

Debenture


Limited - - - - 1,068.45 1,071.71 - - - - - - 1,068.45 1,071.71

Interest Accrued On

Debenture Total - - - - 1,068.45 1,071.71 - - - - - - 1,068.45 1,071.71

Investments Kotak Mahindra

Financial Services

Limited - - 585.57 585.57 - - - - - - - - 585.57 585.57



Nature of

Transactions




Companies

Key Management

Personnel

Relatives of Key






Grand Total

Current

Year

Previous

Year

Current

Year

Previous

Year

Current

Year

Previous

Year

Current

Year

Previous

Year

Current

Year

Previous

Year



Limited - - - - - 88.97 - - - - - - - 88.97

Kotak Mahindra

Asset Management

Company Limited - - - - 850.00 850.00 - - - - - - 850.00 850.00


Limited - - - - 29,854.49 29,854.49 - - - - - - 29,854.49 29,854.49

Investments Total - - 585.57 585.57 30,704.49 30,793.46 - - - - - - 31,290.06 31,379.03

Deposits Paid Kotak Commodity


ACE Derivatives and

Commodity Exchange

Limited - - - - - - - - - - 2.00 2.00 2.00 2.00

Deposits Paid Total - - - - - - - - - - 5.15 2.00 5.15 2.00

Deposits Taken Kotak Commodity


Deposits Taken Total - - - - - - - - - - 6.95 36.77 6.95 36.77

Interest Accrued

On Fixed Deposits-

Receivable

Kotak Mahindra Bank

Limited

1,318.51 1,154.90 - - - - - - - - - - 1,318.51 1,154.90

Interest Accrued

On Fixed Deposits-

Receivable Total 1,318.51 1,154.90 - - - - - - - - - - 1,318.51 1,154.90

Fixed Deposits Placed Kotak Mahindra Bank

Limited 131,457.86 119,852.93 - - - - - - - - - - 131,457.86 119,852.93


Total 131,457.86 119,852.93 - - - - - - - - - - 131,457.86 119,852.93

Broking Transactions

(Secondary And

Primary Market

Operations)

Purchases (Broking) Kotak Mahindra Bank

Limited 4,384.06 2,202.23 - - - - - - - - - - 4,384.06 2,202.23

Kotak Mahindra

Capital Company

Limited - - - - 181.91 - - - - - - - 181.91 -

Kotak Mahindra

International Limited - - - - 63,295.18 25,600.61 - - - - - - 63,295.18 25,600.61

Kotak Mahindra

Investments Limited - - - - 13.57 4,799.74 - - - - - - 13.57 4,799.74

Kotak Mahindra Old

Mutual Life Insurance

Limited - - - - 97,706.54 89,627.31 - - - - - - 97,706.54 89,627.31


Limited - - - - 67,476.65 79,869.25 - - - - - - 67,476.65 79,869.25

D Kannan - - - - - - 76.02 283.60 - - - - 76.02 283.60

38



Nature of

Transactions




Companies

Key Management

Personnel

Relatives of Key






Grand Total

Current

Year

Previous

Year

Current

Year

Previous

Year

Current

Year

Previous

Year

Current

Year

Previous

Year

Current

Year

Previous

Year


Narayan S A - - - - - - - 220.58 - - - - - 220.58

D G Subramanian - - - - - - - - 4.92 1.89 - - 4.92 1.89

Rekha Narayan - - - - - - - - 14.45 27.48 - - 14.45 27.48

Infina Finance Private

Limited - - - - - - - - - - 497,749.63 725,239.50 497,749.63 725,239.50

Kotak Commodity

Services Limited - - - - - - - - - - 2,576.91 12,614.76 2,576.91 12,614.76

Purchases (Broking)

Total 4,384.06 2,202.23 - - 228,673.85 199,896.91 76.02 504.18 19.37 29.37 500,326.54 737,854.26 733,479.84 940,486.95

Sales (Broking) Kotak Mahindra Bank

Limited 3,794.62 7,472.72 - - - - - - - - - - 3,794.62 7,472.72

Kotak Investment

Advisors Limited - - - - - 369.90 - - - - - - - 369.90

Kotak Mahindra

Capital Company

Limited - - - - 181.91 409.96 - - - - - - 181.91 409.96

Kotak Mahindra

International Limited - - - - 27,911.33 21,035.23 - - - - - - 27,911.33 21,035.23

Kotak Mahindra

Investments Limited - - - - 6,721.72 5,803.99 - - - - - - 6,721.72 5,803.99

Kotak Mahindra Old


Limited - - - - 135,372.16 97,682.86 - - - - - - 135,372.16 97,682.86


Limited - - - - 82,390.63 74,668.53 - - - - - - 82,390.63 74,668.53

C.Jayaram - - - - - - 534.44 1,143.21 - - - - 534.44 1,143.21

D Kannan - - - - - - 680.50 963.93 - - - - 680.50 963.93

Narayan S A - - - - - - 180.46 165.47 - - - - 180.46 165.47

D G Subramanian - - - - - - - - 6.58 5.22 - - 6.58 5.22

Rekha Narayan - - - - - - - - 22.33 48.03 - - 22.33 48.03


Limited - - - - - - - - - - 544,717.78 768,729.31 544,717.78 768,729.31

Kotak Commodity

Services Limited - - - - - - - - - - 2,555.98 12,687.34 2,555.98 12,687.34

Sales (Broking) Total 3,794.62 7,472.72 - - 252,577.75 199,970.47 1,395.40 2,272.61 28.91 53.25 547,273.76 781,416.65 805,070.44 991,185.70

Brokerage Earned Kotak Mahindra Bank

Limited 12.45 8.97 - - - - - - - - - - 12.45 8.97

Kotak Investment

Advisors Limited - - - - - 0.05 - - - - - - - 0.05

Kotak Mahindra

Asset Management

Company Limited - - - - 0.38 1.13 - - - - - - 0.38 1.13

Kotak Mahindra

Capital Company

Limited - - - - 0.07 0.17 - - - - - - 0.07 0.17



Nature of

Transactions




Companies

Key Management

Personnel

Relatives of Key






Grand Total

Current

Year

Previous

Year

Current

Year

Previous

Year

Current

Year

Previous

Year

Current

Year

Previous

Year

Current

Year

Previous

Year


Kotak Mahindra

International Limited - - - - 80.07 19.66 - - - - - - 80.07 19.66

Kotak Mahindra

Investments Limited - - - - 14.21 11.44 - - - - - - 14.21 11.44

Kotak Mahindra Old


Limited - - - - 149.23 154.61 - - - - - - 149.23 154.61


Limited - - - - 100.06 104.40 - - - - - - 100.06 104.40

C.Jayaram - - - - - - 0.80 1.71 - - - - 0.80 1.71

D Kannan - - - - - - 0.98 1.83 - - - - 0.98 1.83

Narayan S A - - - - - - 0.22 0.58 - - - - 0.22 0.58

D G Subramanian - - - - - - - - 0.07 0.04 - - 0.07 0.04

Rekha Narayan - - - - - - - - 0.04 0.11 - - 0.04 0.11


Limited - - - - - - - - - - 184.82 267.90 184.82 267.90

Kotak Commodity


Brokerage Earned

Total 12.45 8.97 - - 344.02 291.46 2.00 4.12 0.11 0.15 185.08 269.24 543.66 573.94

Dividend Recievable Kotak Mahindra

Asset Management

Company Limited - - - - 72.25 72.25 - - - - - - 72.25 72.25

Dividend Recievable

Total - - - - 72.25 72.25 - - - - - - 72.25 72.25

Outstandings

Secondary - -

Receivable-Secondary Kotak Mahindra Bank

Limited 183.52 0.10 - - - - - - - - - - 183.52 0.10

Kotak Investment

Advisors Limited - - - - 0.01 - - - - - - - 0.01 -

Kotak Mahindra

Capital Company

Limited - - - - 0.04 0.01 - - - - - - 0.04 0.01

Kotak Mahindra

International Limited - - - - 8.89 0.84 - - - - - - 8.89 0.84

Kotak Mahindra

Investments Limited - - - - - 0.03 - - - - - - - 0.03

Kotak Mahindra Old


Limited - - - - 14.67 1.74 - - - - - - 14.67 1.74

Kotak Mahindra

Trustee Company

Limited - - - - 0.02 0.02 - - - - - - 0.02 0.02

A K S Mani - - - - - - - - - - - - - -

40



Nature of

Transactions




Companies

Key Management

Personnel

Relatives of Key






Grand Total

Current

Year

Previous

Year

Current

Year

Previous

Year

Current

Year

Previous

Year

Current

Year

Previous

Year

Current

Year

Previous

Year


Indira Suresh Kotak - - - - - - - - - - - - - -

Lakshmi S - - - - - - - - 0.01 0.01 - - 0.01 0.01

Rajambal N - - - - - - - - - - - - - -

Suresh Kotak - - - - - - - - - - - - - -

Rekha Narayan - - - - - - - - 0.01 - - - 0.01 -


Limited - - - - - - - - - - 11.01 63.69 11.01 63.69

Kotak Commodity

Services Limited - - - - - - - - - - - 13.12 - 13.12

Asian Machinery and

equipment Private

Limited - - - - - - - - - - - - - -

Komaf Financial


Receivable-Secondary

Total 183.52 0.10 - - 23.63 2.64 - - 0.02 0.01 11.03 76.81 218.20 79.56

Payable-Secondary Kotak Mahindra Bank

Limited - 1.53 - - - - - - - - - - - 1.53

Kotak Mahindra



Limited - - - - 1,983.89 2,209.97 - - - - - - 1,983.89 2,209.97

D Kannan - - - - - - 7.72 0.01 - - - - 7.72 0.01

D G Subramanian - - - - - - - - 1.56 0.01 - - 1.56 0.01

Dhawal Kotak - - - - - - - - - - - - - -

Rekha Narayan - - - - - - - - - 5.76 - - - 5.76

Kotak Commodity


Payable-Secondary

Total - 1.53 - - 2,095.98 2,240.89 7.72 0.01 1.56 5.77 4.83 221.23 2,110.09 2,469.43

OtherRecieptsAnd

Payments

Fee Income Kotak Mahindra Bank

Limited 0.04 0.01 - - - - - - - - - - 0.04 0.01

Kotak Mahindra

Capital Company

Limited - - - - 571.76 1,530.96 - - - - - - 571.76 1,530.96

Kotak Mahindra



Limited - - - - 0.02 0.01 - - - - - - 0.02 0.01

Kotak Mahindra

Trustee Company

Limited - - - - 0.01 0.02 - - - - - - 0.01 0.02

D Kannan - - - - - - 0.01 - - - - - 0.01 -



Nature of

Transactions




Companies

Key Management

Personnel

Relatives of Key






Grand Total

Current

Year

Previous

Year

Current

Year

Previous

Year

Current

Year

Previous

Year

Current

Year

Previous

Year

Current

Year

Previous

Year


D G Subramanian - - - - - - - - 0.01 0.01 - - 0.01 0.01


Limited - - - - - - - - - - 0.03 0.02 0.03 0.02

Kotak Commodity


Komaf Financial


Fee Income Total 0.04 0.01 - - 572.97 1,531.27 0.01 - 0.01 0.01 232.03 391.17 805.06 1,922.46

Personnel Expense Kotak Mahindra Bank

Limited 43.70 130.56 - - - - - - - - - - 43.70 130.56

Personnel Expense

Total 43.70 130.56 - - - - - - - - - - 43.70 130.56

Expense

Reimbursement To

Other Companies

Kotak Mahindra Bank

Limited

4,869.69 4,662.91 - - - - - - - - - - 4,869.69 4,662.91

Kotak Mahindra

Financial Services

Limited - - 422.68 625.76 - - - - - - - - 422.68 625.76

Kotak Mahindra

Asset Management

Company Limited - - - - - 12.49 - - - - - - - 12.49

Kotak Mahindra

Capital Company

Limited - - - - 448.50 187.83 - - - - - - 448.50 187.83

Kotak Mahindra Inc - - - - 148.41 1.73 - - - - - - 148.41 1.73

Kotak Mahindra


Kotak Mahindra Old


Limited - - - - 19.13 20.53 - - - - - - 19.13 20.53


Limited - - - - 3.78 1.18 - - - - - - 3.78 1.18

Kotak Mahindra (Uk)

Limited - - - - 283.66 138.74 - - - - - - 283.66 138.74


Limited - - - - - - - - - - 2.25 2.25 2.25 2.25

Kotak Commodity


ACE Derivatives and

Commodity Exchange

Limited - - - - - - - - - - 2.31 2.58 2.31 2.58

Matrix Business

Services India

Private Ltd - - - - - - - - - - 10.36 10.70 10.36 10.70

42



Nature of

Transactions




Companies

Key Management

Personnel

Relatives of Key






Grand Total

Current

Year

Previous

Year

Current

Year

Previous

Year

Current

Year

Previous

Year

Current

Year

Previous

Year

Current

Year

Previous

Year


Expense

Reimbursement To

Other Companies

Total 4,869.69 4,662.91 422.68 625.76 922.30 382.66 - - - - 140.05 420.49 6,354.72 6,091.82

Expense

Reimbursement By

Other Companies

Kotak Mahindra Bank

Limited

577.14 516.42 - - - - - - - - - - 577.14 516.42

Kotak Investment

Advisors Limited - - - - 0.04 4.42 - - - - - - 0.04 4.42

Kotak Mahindra

Asset Management

Company Limited - - - - 15.01 29.60 - - - - - - 15.01 29.60

Kotak Mahindra

Capital Company

Limited - - - - 300.55 290.64 - - - - - - 300.55 290.64

Kotak Mahindra


Kotak Mahindra Old


Limited - - - - 10.33 6.71 - - - - - - 10.33 6.71


Limited - - - - - 0.06 - - - - - - - 0.06

Kotak Commodity


ACE Derivatives and

Commodity Exchange

Limited - - - - - - - - - - 4.63 3.54 4.63 3.54

Expense

Reimbursement By

Other Companies

Total 577.14 516.42 - - 329.62 335.14 - - - - 202.33 196.26 1,109.09 1,047.82

Other Expenses Kotak Mahindra Bank

Limited 164.63 191.57 - - - - - - - - - - 164.63 191.57

Uday S Kotak 8.24 8.24 - - - - - - - - - - 8.24 8.24

Kotak Mahindra

Capital Company

Limited - - - - - 424.06 - - - - - - - 424.06

Aero Agencies Limited - - - - - - - - - - 5.59 35.24 5.59 35.24

Other Expenses Total 172.87 199.81 - - - 424.06 - - - - 5.59 35.24 178.46 659.11

Other Income Kotak Mahindra


Kotak Mahindra Old


Limited - - - - 28.44 85.20 - - - - - - 28.44 85.20

Other Income Total - - - - 29.64 86.40 - - - - - - 29.64 86.40



Nature of

Transactions




Companies

Key Management

Personnel

Relatives of Key






Grand Total

Current

Year

Previous

Year

Current

Year

Previous

Year

Current

Year

Previous

Year

Current

Year

Previous

Year

Current

Year

Previous

Year


Purchase Of Fixed

Asset

Kotak Mahindra Bank

Limited 29.22 - - - - - - - - - - - 29.22 -

Kotak Mahindra

Investments Limited - - - - 12.58 - - - - - - - 12.58 -

Purchase Of Fixed

Asset Total 29.22 - - - 12.58 - - - - - - - 41.80 -

Sale Of Fixed Asset Kotak Mahindra


Sale Of Fixed Asset

Total - - - - - 17.80 - - - - - - - 17.80

Remuneration To

Key Management

Personnel *

D Kannan

- - - - - - 188.35 183.77 - - - - 188.35 183.77

Remuneration To

Key Management

Personnel * Total - - - - - - 188.35 183.77 - - - - 188.35 183.77

OtherOutstanding

Receivable (Others) Kotak Mahindra Bank

Limited - 2.14 - - - - - - - - - - - 2.14

Kotak Investment

Advisors Limited - - - - 0.01 - - - - - - - 0.01 -

Kotak Mahindra

Asset Management

Company Limited - - - - 0.82 2.24 - - - - - - 0.82 2.24

Kotak Mahindra

Capital Company

Limited - - - - 203.71 415.36 - - - - - - 203.71 415.36

Kotak Mahindra


Kotak Mahindra Old


Limited - - - - 6.92 10.19 - - - - - - 6.92 10.19


Limited - - - - - - - - - - 0.21 - 0.21 -

Kotak Commodity


ACE Derivatives and

Commodity Exchange

Limited - - - - - - - - - - - 2.60 - 2.60

Receivable (Others)

Total - 2.14 - - 211.46 442.71 - - - - 53.51 44.79 264.97 489.64

Payable (Others) Kotak Mahindra Bank

Limited 59.40 82.68 - - - - - - - - - - 59.40 82.68

Uday S Kotak 0.69 0.69 - - - - - - - - - - 0.69 0.69

44



Nature of

Transactions




Companies

Key Management

Personnel

Relatives of Key






Grand Total

Current

Year

Previous

Year

Current

Year

Previous

Year

Current

Year

Previous

Year

Current

Year

Previous

Year

Current

Year

Previous

Year


Kotak Mahindra

Financial Services

Limited - - 50.63 64.63 - - - - - - - - 50.63 64.63

Kotak Mahindra

Capital Company

Limited - - - - - 46.89 - - - - - - - 46.89

Kotak Mahindra Inc - - - - 145.18 - - - - - - - 145.18 -

Kotak Mahindra


Kotak Mahindra (Uk)

Limited - - - - 143.38 - - - - - - - 143.38 -

Kotak Commodity

Services Limited - - - - - - - - - - - 4.80 - 4.80

ACE Derivatives and

Commodity Exchange

Limited - - - - - - - - - - 1.77 - 1.77 -

Aero Agencies Limited - - - - - - - - - - 5.05 3.05 5.05 3.05

Payable (Others) Total 60.09 83.37 50.63 64.63 288.56 65.86 - - - - 6.82 7.85 406.10 221.71

715,309.16 634,140.61 1,058.88 1,289.29 557,331.55 508,922.04 1,669.50 2,964.69 49.98 88.56 1,048,490.32 1,520,976.19 2,323,909.39 2,668,381.38

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

The attached notes to the financial statements form an integral part of the financial statements.

Signatures to the above notes to the financial statements.






VivekPrasad

Partner




Vice President

Mumbai Mumbai


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