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Kotak Mahindra Bank Limited Non-discretionary Portfolio Management Advisory Services Disclosure Document June 2012

KEY INFORMATION AND DISCLOSURE DOCUMENT FOR PORTFOLIO MANAGEMENT SERVICES BY KOTAK MAHINDRA BANK LIMITED l l l l l l This Disclosure Document has been filed with the Securities and Exchange Board of India along with the certificate in the prescribed format in terms of Regulation 14 of the SEBI (Portfolio Managers) Regulations 1993. The purpose of the Document is to provide essential information about the portfolio services in a manner to assist and enable the investors in making informed decisions for engaging a Portfolio Manager. The necessary information about the Portfolio Manager required by an investor before investing is disclosed in the Disclosure document. Investors should carefully read the entire document before making a decision and should retain it for future reference. Investors may also like to seek further clarifications after the date of this document from the service provider. The Principal Officer designated by the Portfolio Manager is: Mr. Jaideep Hansraj Executive Vice President Tel no: +91 22 67206981 Email address: jaideep.hansraj@kotak.com Dated: 15th June 2012

...................... PORTFOLIO MANAGEMENT PERFORMANCE OF THE PORTFOLIO MANAGER............................................................................................................ GENERAL ...................................................................................................................................... 4 4 5 6 8 9 9 9 10 10 11 11 11 11 12 12 13 13 15 22 ........................................................................................... DETAILS OF SERVICES OFFERED BY THE PORTFOLIO MANAGER ................................................................................................... FINANCIAL PERFORMANCE OF THE PORTFOLIO MANAGER ...........................................................Contents DISCLAIMER ................. ACCOUNTING POLICY / VALUATIONS .................................................. DEFINITIONS .............. ENTITIES IN THE GROUP ............................................................................................................. Annexure A .............. CATEGORIES OF CLIENTS SERVICED .......................................................................................................................................................................... PROMOTERS AND DIRECTORS OF THE PORTFOLIO MANAGER AND THEIR BACKGROUND IN BRIEF ............................................................................................. NATURE OF COSTS AND EXPENSES FOR CLIENTS ............................. DISCLOSURES IN RESPECT OF TRANSACTIONS WITH RELATED PARTIES PERTAINING TO PORTFOLIO MANAGEMENT SERVICES ................ RISK FACTORS .......................................................................................................................................................................... INVESTOR SERVICES...................................................................................................................................... PENDING LITIGATIONS OR PROCEEDINGS ETC .................................................................................................................................................................... Annexure B ....................................... PENALTIES................................................................................................................................................................................. HISTORY........................................................................... PORTFOLIO STRATEGY SPECIFIC DETAILS ..... TAXATION IMPLICATIONS FOR CLIENTS................................................................................................................ PRESENT BUSINESS AND BACKGROUND OF THE PORTFOLIO MANAGER ...............................................................

scripts. • Government securities. “Kotak Mahindra Bank” or “Kotak Bank” means Kotak Mahindra Bank Limited. as the case may be. 1993. o Such other instruments as may be declared by the Central Government to be securities. bonds. "Regulations" means the Securities and Exchange Board of India (Portfolio Managers) Regulations. unless the context otherwise requires: "Act" means the Securities and Exchange Board of India. Nariman Bhavan. “Depository Account” or demat account means any account of the Client or for the Client with an entity registered as a depository participant as per the relevant regulations. 2002. 1956 and having its registered office at 36-38A. “Principal Officer” means a person who has been designated as Principal Officer by the Portfolio Manager as required under the SEBI (Portfolio Managers) Regulations. a company incorporated under the Companies Act. issued to an investor by any issuer being a special purpose distinct entity which possesses any debt or receivable. Mumbai 400 021. securities and funds belonging to the Client and advised upon by the Portfolio Manager. 227. 1992 (15 of 1992). Words and expressions used in this disclosure document and not expressly defined shall be interpreted according to their general meaning and usage. including mortgage debt. o any certificate or instrument (by whatever name called). “Portfolio Manager” means Kotak Mahindra Bank Limited. assigned to such entity. o security receipt as defined in clause (zg) of section 2 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act. Act. advises the Client to invest in any type of security entirely at the Client's risk. “Non-discretionary Investment / Portfolio Management Advisory Services” means Portfolio Management Services under which the Portfolio Manager. This Document has neither been approved nor disapproved by SEBI nor has SEBI certified the accuracy or adequacy of the contents of this Document. holding a certificate of registration as a Portfolio Manager issued by Securities and Exchange Board of India under Securities and Exchange Board of India (Portfolio Managers) Regulations. “Securities” include· Shares. 1993 and who will be responsible for the activities of Portfolio Manager. and acknowledging beneficial interest of such investor in such debt or receivable including mortgage debt. debenture stock or other marketable securities of a like nature in or of any incorporated company or other body corporate. They have been included only for the purpose of clarity and shall in addition be interpreted according to their general meaning and usage and shall also carry meanings assigned to them in regulations governing Portfolio Management Services. o derivative. 1993. for an agreed fee structure. “Portfolio” means the total holdings of all investments. DEFINITIONS In this Disclosure Document. stocks. The definitions are not exhaustive. “Financial year” means the year starting from 1st April and ending on 31 March the following year. o units or any other instrument issued by any collective investment scheme to the investors in such schemes. “Board” means the Securities and Exchange Board of India. o units or any other such instrument issued to the investors under any mutual fund scheme.DISCLAIMER This document has been prepared in accordance with the Securities and Exchange Board of India (Portfolio Managers) Regulations 1993 and filed with the Securities and Exchange Board of India (SEBI). and • Rights or interests in securities. Nariman Point. debentures. st 4 . “Client” or “investor” means any person who registers with the Portfolio Manager for availing the services of portfolio management.

Treasury and Corporate Banking. 2012 . Foreign Exchange activities include spot foreign exchange transactions (for value up to two business days). This facility is made available through the designated branches at present. Visa Money Transfer. foreign remittances and cash management. Kotak Mahindra Bank has acted as a collecting banker to IPOs of various corporates and handled the collection and refund of IPO proceeds on a large scale. Loans for small businesses (road transport operators.(13) Retailing of gold bars and gold coins through various branches. term loans. inward / outward remittances and inter-bank market dealings. Credit Cards and Agri Finance. (2) ATM cum Debit Cards (3) AT PAR and / or Pre-carbonated Cheque book. MF on Call . Post the conversion. Collection / Purchase of local and outstation cheques. Corporate. the Bank has two distinct streams – Liabilities & Assets. MF Standing Instructions. professionals. Corporate Banking The Bank offers corporate clients and institutions a complete range of highly focused banking services and solutions like Working Capital and Transaction Banking Products. offering best-in-class products and services and targeted at a wide range of customer segments. Present Business Retail Consumer Banking Under this business. (7) Virtual Keypad – towards enhancing online security for net banking users. (8) SMS and Mobile Banking. (4) NRO Cards (Domestic Use only). Demat Accounts. Fixed Deposit Accounts. Kotak Mahindra Bank's mission is to build a world-class commercial bank. NRI accounts and Deposits. The Bank's understanding of the specific business needs of the small and medium enterprises has helped it tailor products and services to suit the requirements of this segment. export financing. (6) Under Net Banking Services – Bill Payment. Transaction Banking products include Trade Finance. The key operations of the Bank are built around a state of the art. Unsecured Personal Loans. Kotak Mahindra Finance Limited was given the license for banking business by the Reserve Bank of India (RBI). cash flow-based financing. and Trust sectors. It was the first NBFC company in India to be converted into a bank. 40. letters of credit. RBI NEFT. The Bank also offers Receivable and Payable Management Products to clients under the cash management umbrella and handles dividend / interest warrant payments. The derivatives desk caters to the hedging needs of 5 . Kotak Mahindra Bank provides the full suite of banking services to its customers encompassing Retail Banking. indirect and direct agriculture loans. (5) Netc@rd for secure online shopping. providing a customer-centric approach to product offerings. weaker sections etc.HISTORY. This portfolio includes lending for working capital.394 Crores as on March 31. PRESENT BUSINESS AND BACKGROUND OF THE PORTFOLIO MANAGER Kotak Mahindra Bank Limited is the listed parent company of Kotak Group with a market capitalization of Rs. 2012). forward foreign exchange transactions (for value greater than two business days). The Money Market and Fixed Income desk is an active player in the Rupee markets and caters to the treasury requirements of clients across the Inter-Bank. forex and derivative products. RTGS. Current Accounts. centrally controlled technology platform. drafts. Kotak Mahindra Bank has built a network of 356 branches and 848 ATMs across 211 cities and towns in India (as of March 31. MF on Net (view Mutual Fund Holding. Co-operative bank. Construction Equipment Loans. Priority Sector Banking The Bank offers priority sector business loans to SSI / SME. bank guarantees. Cash Management. It also offers Constituent SGL facility to its clients. etc). bankers cheques. The key Asset products offered are Home loans. In February 2003. The key liabilities products offered are Savings Accounts.. Treasury The Bank's Treasury desk offers money market. Some of the key services with features offered with these products are: (1) Remittances through account transfer. (9) Facility for customers to de-register themselves from Bank product promotion related messages and (10) Online Tax Preparation 11) ASBA facility for applying in the IPOs. adopting a professional and entrepreneurial management style underpinned by conservative risk management. transport operators. structured products. Commercial Vehicle Loans. Purchase / Redeem Mutual fund holdings online). consistently meeting overall priority sector lending targets. The Bank is built on sound fundamentals displaying the highest standards of corporate governance. (12) Appointed as a Point of Presence for the New Pension Scheme by the Government of India. PCM services and Custody services.

investment banking. (Economics) from Harvard University. aged 53 years. financial institutions and non-banking finance companies.) from Oxford University and Ph. He has held several senior positions in the World Bank. He was re-appointed as the Non-Executive Chairman of the Bank at the Annual General Meeting held on 28th July 2009 for a period of three years with effect from 20th July 2009. Shankar Acharya. B. Mr. Independent Non-Executive Chairman Date Of Appointment: 20. The Bank also provides investment advisory services on a non-discretionary basis pursuant to receipt of approval from RBI and PMS license from SEBI.32 % of the equity share capital of Kotak Mahindra Bank Limited as on March 31. He also oversees the international subsidiaries and the alternate Kotak Mahindra Prime Limited Kotak Forex Brokerage Limited Kotak Securities Limited 6 . Uday Kotak. is the Executive Vice-Chairman and Managing Director of the Bank and its principal founder and promoter. Jayaram. Uday Kotak. along with his relatives and associates. Securities and Exchange Board of India (SEBI) and Member. many of the constituents of which are among the leading players in their respective fields. aged 66 years. Directors Dr. National Institute of Securities Markets and National Council of CII and Chairman of the CII Capital Markets Committee. life insurance and mutual funds. He is the Executive Vice-Chairman and Managing Director of the Bank and its principal founder and promoter.the clients. He is on the Board of Eros International Media Ltd. Ministry of Finance. Kotak's leadership. He is a member of the Government of India's high level committee on Financing Infrastructure. (Hons.11. Wealth Management The Bank is one of the leading wealth management and investment products distributors in India. Sri Lanka. including Director of World Development Report (1979) and Research Adviser.10. PROMOTERS AND DIRECTORS OF THE PORTFOLIO MANAGER AND THEIR BACKGROUND IN BRIEF Promoters Mr. A. the Primary Market Advisory Committee of SEBI. and The South Asia Institute for Research and Policy (Private) Limited.05. He is a Honorary Professor at the Indian Council for Research on International Economic Relations (ICRIER) and a Board Member of ICRIER and the Administrative Staff College of India (ASCI). Mr. 2012. Joint Managing Director Date Of Appointment: 01. Kotak Mahindra group established a prominent presence in every area of financial services from stock broking.A. Mumbai. C. car finance. Twelfth Finance Commission. aged 56 years. Shankar Acharya.1985 Mr. Member of the Board of Governors of Indian Council for Research on International Economic Relations. C. Uday Kotak. Kotak has been responsible for starting the business as a start-up venture in a limited range of activities and then building it up into a full financial services group. PGDM-IIM. He is on the Board of the following companies: Kotak Mahindra Asset Management Company Limited Kotak Mahindra Capital Company Limited Kotak Mahindra Old Mutual Life Insurance Limited Mr. Kotak is the recipient of several prestigious awards. (Economics). Asset Reconstruction Kotak Mahindra Bank is one of very few banks in India to have an asset reconstruction division that purchases NPAs from banks. He was Chief Economic Adviser. over the past 26 years. B. Executive Vice-Chairman and Managing Director Date Of Appointment: 21. Uday Kotak. has considerable experience in various fields of economics and finance. Mr.2003 Dr. Mr.D. Kolkata. holds a Bachelors degree in Commerce and an MBA from Jamnalal Bajaj Institute of Management Studies.99 Mr. Jayaram. Under Mr. Member. holds 45. is Joint Managing Director of the Bank and is currently in charge of the Wealth Management Business of the Kotak Group.

USA. of India. aged 51 years. B. and Japan Foundation. He is also on the Board of Husky Energy Inc. graduated from St. an Emeritus Professor & Member. Independent Non-Executive Director Date Of Appointment: 18. Mundle was Economic Advisor in the Ministry of Finance. is the Joint Managing Director of the Bank and has over 26 years of experience in the financial services sector. other Husky Group Companies and some Hutchison Whampoa Group Companies. in Economics from the Delhi School of Economics. Ahmedabad. Thereafter. Singapore. Trivandrum. and Reserve Bank of India Chair Professor at the National Institute of Public Finance and Policy. and also India Chief Economist at ADB's India Resident Mission. Ghosh commenced his career in consumer goods marketing with Procter & Gamble in the U. Ahmedabad and Centre for Development Studies. Reserve Bank of India. Prior to joining the Kotak Group. is a B. He was a Fulbright Scholar at Yale University. B. He is on the Board of the following companies: Kotak Forex Brokerage Limited Kotak Mahindra Capital Company Limited Kotak Mahindra Investments Limited Kotak Mahindra Prime Limited Kotak Mahindra Old Mutual Life Insurance Limited Kotak Mahindra Prime Limited Kotak Mahindra (UK) Limited Kotak Securities Limited Mr. and has a Ph. Asim Ghosh.2008 Mr. He was a Director in the Strategy & Policy Department. Prior to joining the Kotak Group. Ferguson & Company for approximately six years. Stephen College.2009 Dr.E. He has been with the Kotak Group for 22 years and has been instrumental in building a number of new businesses at Kotak Group. Japan. He is responsible for Group HR. Asim Ghosh. Board of Governors of Institute of Economic Growth. Dipak Gupta was responsible for leading the Kotak Group's initiatives into the banking arena. UK.S. Govt. PGDM-IIM. In his earlier career Dr.10. Joint Managing Director Date Of Appointment : 01. He was appointed as a Director of the Bank with effect from 21st July 2010.D. 20 years of which have been with the Kotak Group. Dipak Gupta. Independent Non-Executive Director Date Of Appointment: 09. is presently the Chairman of Syngenta India Limited. infrastructure. operations and IT. Netherlands. Institute of Social Studies. He was the Executive Director of Kotak Mahindra Prime Limited. National Statistical Commission. He is a Partner Director of The Governance Group. Monetary Policy Technical Advisory Committee.03.asset management business of the group. (Mechanical).05. he was with Overseas Sanmar Financial Ltd. He is also responsible for asset reconstruction business of the Bank. Mr. and had visiting assignments at Cambridge University. University of Pennsylvania.. National Institute of Public Finance and Policy. Government of India. IIT Delhi and MBA from the Wharton School. one of the leading agri 7 . F. Member. Independent Non-Executive Director Date Of Appointment: 27. Sudipto Mundle. Member.1999 Mr. He moved to Asia in 1989 as CEO of the Frito Lay (Pepsi Foods) start up in India. Board of Governors.E. He is also on the Board of the following companies: Kotak Investment Advisors Limited Kotak Mahindra Asset Management Company Limited Kotak Mahindra Investments Limited Kotak Mahindra Inc Mr. Dr. he was in executive positions with Hutchison in Hong Kong and India for 16 years. Dipak Gupta. and Canada and worked subsequently with Rothmans International as a Senior Vice President of one of Canada's major breweries. aged 64 years. He has varied experience of over 34 years in many areas of finance and business and was earlier the Managing Director of Kotak Securities Limited. Prakash Apte. and President of PREETI Foundation. he was with A. Mr. Prakash Apte. Mr. He has also served in other academic institutions including the Indian Institute of Management. aged 58 years. Asian Development Bank . administration.2011 Mr. Sudipto Mundle. He continued as the CEO of Vodafone Essar Limited till 31st March 2009 and as a Non-Executive Director till 9th February 2010.10.Tech. (Electronics). aged 63 years. Member.

686. Portfolio Manager Merchant banker and member of NSE in the Cash. Mr.164. he has gained varied knowledge in various aspects of Indian Agri Sector and has been involved with many initiatives for technology. Mr.99 318.. Independent Non-Executive Director Date Of Appointment: 18. is a Chartered Accountant for more than 40 years. Amit Desai.2011 Mr. Sarda.64 2.C. Mumbai (BSE).566.P. which is so vital for India's food security. B.Com. ENTITIES IN THE GROUP The following are the subsidiaries of Kotak Mahindra Bank Limited.business companies in India. He is a former partner of M/s. Depository Participant.88 11. N.Com.84 11. Apte.04. in a career spanning over 35 years has considerable experience in various areas of management and business leadership. knowledge and skills up gradation in this sector. N. Name of the company Type of activity handled Total Income for FY 2011-12 (in ` Lakhs) 180. Ltd. Sarda. is an eminent professional with 30 years of experience.43 6. LLB. aged 66 years. F.37 NIL 9.970. B. He is also on the Board of Kotak Mahindra Trustee Company Limited and Terra DeKM India Pvt.45 8.429.129.06 Kotak Mahindra Prime Limited Kotak Securities Limited Kotak Mahindra Capital Company Limited Kotak Mahindra Old Mutual Life Insurance Limited Kotak Mahindra Investments Limited Kotak Mahindra Asset Management Company Limited Kotak Mahindra Trustee Company Limited Kotak Mahindra (International) Limited Kotak Mahindra (UK) Limited Kotak Mahindra Inc.110.844. Amit Desai.844.P. Global Investment Opportunities Fund Limited Kotak Investment Advisors Limited Car Financing and other lending Stock Broking. He was instrumental in setting up the Syngenta Foundation India which focuses on providing knowledge and support for adopting scientific growing systems to resource poor farmers and enabling their access to market. He is a Director of Syngenta Foundation India and Kotak Mahindra Old Mutual Life Insurance Limited.60 1.2011 Mr.385.511. Chartered Accountants. Mr. the past President of the Institute of Chartered Accountants of India (in 1993) and was a public representative Director of the Stock Exchange.21 8 . F&O and Wholesale Debt segment and member of OTC Exchange of India Life Insurance Investments and Financing Mutual Fund Management Trustee of Kotak Mahindra Mutual Fund Financial & Advisory Services Broking and Advisory Services Broking and Advisory Services Investment Investment manager for alternate assets 60.A. During more than 15 years of very successful leadership experience in agri business.80 1. Non-Independent Non-Executive Director Date Of Appointment: 01. Deloitte Haskin & Sells. aged 53 years.03.

governments. 9 . advise in relation to investment in portfolio management schemes or have the funds of the Client advised through any other portfolio manager and such other eligible modes of investment and/or forms of deployment within the meaning of the Regulation issued by SEBI as amended from time to time and such other products as the Bank and the Client may agree from time to time and which the Bank is permitted to advise on as per the applicable regulations. Foreign Exchange Brokerage Services Pension Fund Management Arranging credit / deals in investments. There have been no instances of penalties imposed for any economic offence in its capacity as a Portfolio Manager. Notes on the Non-discretionary Services offered by the Portfolio Manager The Portfolio Manager may advise the Client to invest in products and financial instruments issued by group companies. with the Portfolio Manager only advising the Client. banking products. negotiable instruments. The Portfolio Manager's role will be limited to providing research. PORTFOLIO STRATEGY SPECIFIC DETAILS Under this portfolio strategy. unlisted securities. DETAILS OF SERVICES OFFERED BY THE PORTFOLIO MANAGER Non-discretionary Investment Advisory Services The Portfolio Manager will provide Advisory Portfolio Management Services on a non-discretionary basis. There have been no instances of any deficiency in systems and operations of the Portfolio Manager observed by the Board or any regulatory agency. it is up to the Client to decide the extent of investment in such products. guidance and trade/investment execution / servicing at the client's request. statutory corporations and other persons. treasury bills . The Portfolio Manager may advise the Client to invest in capital and money market instruments. which shall be in the nature of non-discretionary investment advisory and shall include the responsibility of advising on the portfolio strategy and investment and divestment of individual securities on the client's portfolio. investment advice. insurance products. arranging custody 166. commercial paper.56 47. units or other instruments representing the beneficial interest of the investors in any schemes or funds floated by a trust. Since the advice of the Portfolio Manager is completely non-discretionary in nature. trade execution. guidelines and notifications in force from time to time. investments in bank and / or company deposits. investment advice. debt instruments. participation certificates. securities. certificates of deposit. Regulations. PENDING LITIGATIONS OR PROCEEDINGS ETC. bullion and commodity products.Name of the company Type of activity handled Total Income for FY 2011-12 (in ` Lakhs) Kotak Mahindra Trusteeship Services Limited Kotak Forex Brokerage Limited Kotak Mahindra Pension Fund Limited Kotak Mahindra Financial Services Limited Trustee of alternate asset funds and trusteeship business. equity and fixed income derivatives.13 61. The Portfolio Manager's role is limited to providing research. the Clients decide their own investments.91 PENALTIES. and client servicing at the Client's request. advising. The rights and obligations of the Portfolio Manager shall be exercised strictly in accordance with the relevant Acts. against the Portfolio Manager in its capacity as a Portfolio Manager. fixed income instruments. various financial products issued/ offered by incorporated companies. venture capital fund investments and other instruments or units of other mutual funds (whether listed or unlisted). for an agreed fee structure. in terms of the Regulations. including securities as defined under the Securities Contract (Regulation) Act. The Portfolio Manager does not undertake clients' funds for management and provides only advisory services on a non-discretionary basis. guidance. Under these Services. entirely at the Client's risk. structured products.or units or other instrument issued by any collective investment scheme to the investors in such scheme. debt instruments.01 659. trusts. l l l There have been no instances of penalties imposed by the Board or the directions issued by the Board under the Act or Regulations made there under. investment in equity and preference shares. Periodical statements in respect of the clients' portfolio shall be sent to the respective client. government securities. the client will decide their own investments. government securities. whether incorporated or not. 1956. securitized debt instruments. including but not limited to. with the Portfolio Manager only advising the Client on investments.

The performance in equity may be adversely affected by the performance of individual companies. changes in the market place and industry specific and macro economic factors. Any action taken by the client based on the advice of the Portfolio Manager is not the responsibility of the Portfolio Manager. either of principal or appreciation on the portfolio.RISK FACTORS l Kotak Mahindra Bank has limited previous experience / track record as a Portfolio Manager. liquidity risk. The past performance of the Portfolio Manager does not indicate its future performance.March 2010 April 2010 – March 2011 April 2011 – March 2012 683 1148 1129 Non-discretionary advisory services 10 . advice investments in lower rated/unrated securities offering higher yield. considering the overall level of risk of the portfolio under advice. The direction of the market may turn out to be different than that indicated by the Portfolio Manager while rendering the investment advice. rates and indices. l l l l l l l l l l l CATEGORIES OF CLIENTS SERVICED Category of clients No of clients NIL Funds Managed (` in cr) Not applicable as only non-discretionary advisory services are provided Discretionary / Nondiscretionary (if available) NA Associate / Group Companies last 3 years Others July 2009 . The debt investments and other fixed income securities may be subject to Interest rate risk. pharmaceutical stocks and some of the investments in niche sectors run the risk of volatility. There is no assurance or guarantee that by acting on the advice given by the Portfolio Manager the objectives of investments will be achieved. Investors are not being offered any guaranteed or indicative returns by the Portfolio Manager. Small price movements in the underlying security may have a large impact on the value of derivatives and futures and options. Also. Investors are not being offered any guaranteed or assured return/s i. Kotak Mahindra Bank has launched its Non-discretionary Portfolio Management Advisory Services from May 2009 pursuant to its registration as a Portfolio Manager with the Securities and Exchange Board of India. Portfolio strategies using derivative / futures and options products are affected by risks different from those associated with stock and bonds. since the nature of services offered by the Portfolio Manager are non-discretionary and only advisory in nature. Some of the risks relate to mis-pricing or the improper valuation of derivatives and futures and options and the inability to correlate the positions with underlying assets. Technology. high valuation. and reinvestment risk. This may increase the risk of the portfolio. diligence and expertise. The future prices or the band of prices as indicated by the Portfolio Manager at the time of rendering scrip specific investment advice may turn out to be incorrect. the past performance of the Portfolio Manager can not be measured and is not applicable.e. Further. The Portfolio Manager may. obsolescence and low liquidity. Such investments shall be subject to the scope of investments as laid down in the Advisory Agreement. the derivatives and futures and options market is nascent in India. credit risk. There is no assurance that past performances will be repeated. Such products are highly leveraged instruments and their use requires a high degree of skill. Investments in securities are subject to market risks which include price fluctuation risks.

open offers and the like to various entities. The below mentioned fees. NATURE OF COSTS AND EXPENSES FOR CLIENTS The following are indicative types of costs and expenses for clients availing the Non-discretionary Portfolio Management Advisory Services. as agreed between the client and the Portfolio Manager. in the same portfolio strategy or in different portfolio strategy. as required by Accounting Standard 18. not exceeding the rate specified. Advisory fees can vary from client to client. Advisory fees as an entry or exit charge or as a percentage of the value of Portfolio advised upon shall each be charged. Kotak Mahindra Bank Limited and Kotak Securities Limited also act as bankers to issue and syndicate member/subsyndicate member. charges and expenses shall be directly debited to the clients' account as and when the same becomes due for payment. 2012 are as mentioned in Annexure A. The Portfolio Manager may advise the Clients to open their bank account(s) as per the requirement of the portfolio strategy. Advisory Fees Advisory fees relate to the Non-discretionary Portfolio Management Advisory Services offered to clients. “Related Party Disclosures” issued by the Institute of Chartered Accountants of India and transactions carried out with related parties in the ordinary course of business as per accounts for the year ended 31st March. These charges. Related party disclosures. at such rate as may be agreed between the Portfolio Manager and the Client from time to time. the past performance of the Portfolio Manager can not be measured and is not applicable FINANCIAL PERFORMANCE OF THE PORTFOLIO MANAGER Financial performance of Kotak Mahindra Bank on an overall basis for the last three years (2012. Where the advisory fees is a percentage of the value of the Portfolio advised upon. The Bank may receive fees and commissions from Kotak Group entities and other third party product or service providers for the distribution of products/services of such entities/providers as also for any introduction of the Banks' Clients to such entities/providers. 2011. will be applicable irrespective of whether the client is advised for the whole year or part of the year. l l l PORTFOLIO MANAGEMENT PERFORMANCE OF THE PORTFOLIO MANAGER Since the nature of services offered by the Portfolio Manager are non-discretionary and only advisory in nature. the Portfolio Manager reserves the right to advise the Client to invest in securities in which Kotak Mahindra Bank Limited or any of its subsidiaries is appointed in the capacity as described above. with Kotak Mahindra Bank Limited and for this purpose the Client may be required to maintain a minimum balance with the Bank. The Portfolio Manager may advise the Client to invest uninvested amounts in Kotak Mahindra Bank Limited as deposits. 2010) has been included in Annexure B. The fee may be in the form of an entry or exit charge or a recurring charge in the nature of a fixed charge (which can be an absolute amount or a percentage of the value of Portfolio advised upon). the Portfolio Manager may charge advisory fees based on the annual opening value of Portfolio or on the average value of Portfolio (calculated on a daily/ weekly/ monthly or quarterly basis). 11 . Referral Charges The Bank may provide or cause to be provided Referral Services to the Client by introducing the Client to service providers providing such services which the Client desires and assisting the Client in contacting such service providers to enable the Client to avail the said services from the service providers.DISCLOSURES IN RESPECT OF TRANSACTIONS WITH RELATED PARTIES PERTAINING TO PORTFOLIO MANAGEMENT SERVICES l l Kotak Mahindra Bank Limited is also a distributor of mutual fund schemes and other financial products and is corporate agent of Kotak Mahindra Old Mutual Life Insurance Limited (Kotak Life Insurance). The exact basis of charge relating to each of the following services shall be annexed to the Portfolio Management Agreement and the agreements in respect of each of the services availed at the time of execution of such agreements or supplemental agreement or document. Subject to regulatory requirements. life insurance policies of Kotak Life Insurance and other products of the group companies. respectively in public issues and Kotak Mahindra Capital Company Limited is appointed as Lead Manager or underwriter or renders advisory services in fund raising. The Portfolio Manager may advise the Client to invest in the units of schemes of mutual fund issued by Kotak Mahindra Asset Management Company Limited.

Currently. expenses pertaining to storage/retrieval of documents etc shall be payable by the Clients. provided the shares are sold on a recognized stock exchange in India and such transaction is subjected to Securities Transaction Tax in accordance with Chapter VII of the Finance (No. opening and operation of bank accounts. ACCOUNTING POLICY / VALUATIONS This is not applicable since the Portfolio Manager proposes to carry out only a non-discretionary. Incidental Expenses Charges in connection with the courier expenses. The Portfolio Manager shall not be responsible for assisting in or completing the fulfillment of the client's tax obligations. stamp duty. notarizations etc for certifications. Alternatively. Short term capital gains arising on transfer of equity shares in a company/units of equity oriented mutual fund are chargeable to tax @ 15% (plus applicable Surcharge & Education Cess and Secondary & Higher Education Cess). postal. 2004. telegraphic. 12 . long term capital gains arising on transfer of equity shares in a company or on redemption of equity oriented mutual fund units is exempt from capital gains tax. taxation and legal services. However. provided the shares are sold on a recognized stock exchange in India and such transaction is subjected to Securities Transaction Tax in accordance with Chapter VII of the Finance (No. Advance tax installment obligations It shall be the Client's responsibility to meet the obligation on account of advance tax installments payable on the due dates under the Income tax Act. solely for the purpose of calculating the Advisory fees to the Client by Kotak Mahindra Bank (which may be based on the value of assets placed by the Client under Kotak Mahindra Bank's advice). Currently. each Client is advised to consult his / her / its tax advisor with respect to the specific tax consequences to him/ her / it on investment through Portfolio Management Services. Long term capital gains The extent of long term capital gains applicable shall be determined on the basis of extant provisions and subject to change based on change in the provisions of law from time to time. attestations required by bankers or regulatory authorities shall be payable by the Clients. 2004 Short term capital gains The extent of short term capital gains applicable shall be determined on the basis of extant provisions and subject to change based on change in the provisions of law from time to time. the following accounting and valuation policies may be used Investments in Equities. the Clients may wish to open (by entering into an agreement or filling an application form separate from those related to Non-discretionary Portfolio Management Advisory Services) bank account and demat account with Kotak Mahindra Bank and in this regard the Clients will have to pay charges as per schedule of charges forming part of such separate account opening forms signed by them. the last available prices on the exchange or the most recent NAV will be reckoned.2) Act. Bank and Depositary charges For executing the advice under the Portfolio Management Service. TAXATION IMPLICATIONS FOR CLIENTS General In view of the individual nature of tax consequences on the income. shares held in Company or any other security listed on recognized stock exchange in India or Units of mutual fund held for not more than 12 months would be classified as short term capital assets and gains on its transfer are added to total income.2) Act.Certification and professional charges Charges payable for outsourced professional services like accounting. service tax. The tax implications mentioned herein are effective as on the date of issue of this document and may change due to modifications in existing legislation. advisory service and there is no management of funds being carried out. Mutual Funds and Debt instruments except Reference Linked debentures will be valued at the closing market prices of the exchange (BSE or NSE as the case may be) or the Repurchase Net Asset Value declared for the relevant scheme on the date of the report or any cut off date or the market value of the debt instrument at the cut off date. capital gains or otherwise. arising from investments through Portfolio Management Service . Each Client is advised to consult his/her/its tax advisor with respect to the tax consequences to him/ her/it in respect of transaction in derivative products.

modification or reenactment thereof. claims and questions whatsoever arising between the Client and the Portfolio Manager and/or their respective representatives shall be settled in accordance with and subject to the provisions of The Arbitration and Conciliation Act 1996.iyer@kotak. Mutual Fund units placed under Portfolio Manager's advice are valued and accounted at the latest available NAV on the date of addition to the portfolio. The interest on debt instruments shall be accounted on cash /receipt basis. Such Arbitration proceedings shall be held at Mumbai or such other place as the Portfolio Manager thinks fit. The Portfolio Manager and the client can adopt any specific norms or methodology for valuation of investments or accounting the same as may be mutually agreed between them on a case specific basis. GENERAL The Portfolio Manager and the client can mutually agree to be bound by specific terms through a written two. INVESTOR SERVICES Contact information Name. for whatever reason.com dilip. The securities placed under the Portfolio Manager's advice. Sales are accounted based on proceeds net of brokerage in case of equities and exit loads in case of units of mutual fund. Santacruz (East). The securities removed from Portfolio Manager's advice are valued and accounted at the closing rate of BSE on the date of withdrawal.com rajesh. CST Road. Dilip Rajput Kotak Mahindra Bank Ltd. The investor may contact the customer services official of the Portfolio Manager for the purpose of clarifying or elaborating on any of the above policy issues.s. 13 .Reference Linked debentures are valued at closing market prices of the exchange (BSE or NSE as the case may be) or on the latest valuation as given to Portfolio manager by the Issuer or at Cost.khetan@kotak. stock lending fees earned etc. which are sold and not added to the portfolio are accounted at the net selling price. 3rd Floor. Dividends on shares shall be accounted on accrual basis on the respective ex dates. independence and the wherewithal to handle investor complaints. Mumbai 400 098 91. Mutual fund units removed from Portfolio Manager's advice are valued and accounted at the latest available NAV on the date of on the date of removal. Pending listing on NSE/BSE. 8. the investor and the Portfolio Manager shall abide by the following mechanisms. shall be accounted on receipt basis. Bonus and split of securities are accounted on the ex-date (BSE or NSE as the case may be) thereof. Grievance redressal and dispute settlement mechanism The Portfolio Manager will endeavor to address all complaints regarding service deficiencies or causes for grievance. interest. Purchases are accounted at the cost of acquisition inclusive of brokerage in case of equities and entry loads in case of units of mutual funds. securities resulting from a de-merger are valued at their apportioned cost as per the ratios/book values published by the companies. Kalina. INGS Point.com Telephone Email : : The officials mentioned above will ensure prompt investor services. or any statutory requirement. in a reasonable manner and time. Plot No. The Portfolio Manager will ensure that these officials are vested with the necessary authority.way agreement between themselves in addition to the standard agreement. differences. Ashish Khetan / Mr.22-67206720 ashish.rajput@kotak. address and telephone number of the investor relations officers who shall attend to the investor queries and complaints Name Address : : Mr. Rajesh Iyer / Mr. If the investor remains dissatisfied with the remedies offered or the stand taken by the Portfolio Manager. Dividends on units in mutual funds. All disputes.

Sudipto Mundle Sd/- 7 Mr. Asim Ghosh Sd/- 6 Mr. No. P. Prakash Apte Sd/- 8 Mr. Name of the Director Signature 1 Dr. Shankar Acharya Sd/- 2 Mr. Uday Kotak Sd/- 3 Mr. Sarda Sd/- 14 . C. N.Approved by the Directors of Kotak Mahindra Bank Limited Sr. Jayaram Sd/- 4 Mr. Dipak Gupta Sd/- 5 Mr. Amit Desai Sd/- 9 Mr.

Kotak along with relatives and enterprises in which he has beneficial interest holds 45.32% of the equity share capital of Kotak Mahindra Bank Limited as on 31st March.Annexure A Related Party Transactions (31 March 2012) A. Global Investment Opportunities Fund Limited Kotak Investment Advisors Limited Kotak Mahindra Trusteeship Services Limited Kotak Forex Brokerage Limited Kotak Mahindra Pension Fund Limited Kotak Mahindra Financial Services Limited Subsidiary Companies 15 . 2012 Kotak Mahindra Prime Limited Kotak Securities Limited Kotak Mahindra Capital Company Limited Kotak Mahindra Old Mutual Life Insurance Limited Kotak Mahindra Investments Limited Kotak Mahindra Asset Management Company Limited Kotak Mahindra Trustee Company Limited Kotak Mahindra (International) Limited Kotak Mahindra (UK) Limited Kotak Mahindra Inc. Parties where control exists: Nature of relationship Individual having control over the enterprise Related Party Uday S.

Joint Managing Director Mr. Anita Gupta Ms. Insurekot Investments Pvt.B. C Jayaram. Aarti Chandaria Ms. Ltd. Kotak. Ltd. Dipak Gupta. Other Related Parties: Nature of relationship Related Party Associates ACE Derivatives and Commodity Exchange Ltd. Kotak Trustee Company Pvt. Uday S. Indira Kotak Mr. Ltd. Urmila Gupta Ms. Palko Properties Private Limited Kotak Chemicals Limited Kotak Ginning & Pressing Industries Limited Kotak Commodity Services Limited Harisiddha Trading and Finance Private Limited Relatives of Key Management Personnel* Ms. Usha Jayaram 16 . (Formerly known as Ahmedabad Commodity Exchange Limited) Infina Finance Private Limited Matrix Business Services India Private Limited Phoenix ARC Private Limited Add Albatross Properties Private Limited (Effective 28 Nov 2011) th Key Management Personnel* Mr. Executive Vice Chairman and Managing Director Mr. Dhawal Kotak Ms. Jay Kotak Mr. Suresh Kotak Ms. Joint Managing Director Enterprise over which Key Management Personnel have significant Influence* Aero Agencies Limited Kotak & Company Limited Komaf Financial Services Limited Asian Machinery & Equipment Pvt. Ltd. Pallavi Kotak Mr. Cumulus Trading Company Pvt.

947.56) 426.15 (2.14) 17 .86 (2.93 (29.93 (29.72) 24.31 (0.00 (0.99) 10.18) 1.57 (4.38 0.66) 6.15 (2.00 (30.851.56) 8.95 (91.14) 0.26 (0.66 (41.14 (0.00 (6.57 (50.59 (5.82 (14.77 (810.00) (0.21) 9.05 (0.77 (810.13) – (–) 574.12) 8.560.05) 8.50) 0.40) 0.40) 1.13 (2.87) 3.63) 20.14 (0.99) 0.31) 131.25) 122.73 (78.00) 0.93) 18.31) 1.76 (219.35 (0.93) (-) 0.57 (50.55 (142.41 (7.41 (7.80) (-) (-) (–) (-) 9.72) 24.851.64 (7.60) 11.35) 80.25) 122.54) 2.98 (189.79 (1.04) 8.07) 149.98) 9.00) 0.10 (0.30) 9.(` in Crores) Enterprise over which Relative of Key Management Personnel have control/ Relatives of Key significant Management influence Personnel Items/Related Party Liabilities Deposits Interest Payable Other Liabilities Assets Advances Investments-Gross Diminution on Investments Commission Receivable Others Expenses Salaries/fees (Include ESOP) Interest Paid Others Income Dividend Interest Received Others Other Transactions Sale of investment Purchase of Investment Purchase of Loan Repo .67 (0.06) 48.28 (85.16) 16.05) 1.87) – 10.17) 5.26) 0.99 (13.00 0.02 (0.34) 69.35) 199.34) 69.19 (364.00 (0.50) 9.01) 149.00) 0.13) 341.19 (0.51) 0.40) 0.41 (2.00 (0.79 (8.89 (1.01) – (–) – – (–) – (–) 620.01 (545.07) 149.17) 5.63 (70.43 (9.23 (4.851.79 (8.08) 2.59 (16.88) 11.11) – (–) 45.66 (4.19) 16.075.60 (2.687.63 (5.63 20.17 (9.14 (226.58) 0. Liabilities: Other liabilities Other Payable Individual having Control Subsidiary Companies Associates Key Management Personnel Total 2.27 (1.59 (5.31 (0.16) 0.419.59 (16.76 (515.19 (2.35) 138.Paid Dividend paid Reimbursement to companies Reimbursement from companies Purchase of Fixed assets Sale of Fixed assets Swaps/Fprward/options contracts Guarantees/Lines of Credit I.73) 1.01) 149.04) 0.86 (81.851.00 (30.90) 2.25 (29.06 (1.00) 2.63 (5.35) 77.687.64 (7.94 (2.00 (0.72 (14.95) 1.02) 2.Borrowings Repo.46 (84.28 (69.05) 15.74) 0.56) 407.

63 (0.22 (0.08 (1.73 (52.00) 260.46) 0.45 (0.Uday Kotak Mr.32 (0.63) 18.16 (2.00) 0.45 (0.73) 29.93 (27. Expenses: Salaries/fees(Include ESOP) Mr.41) 1.85 (2.98 (29.07) 260.07) 8.18) 6.32 (0.32 (7.40 (2.41) 0.90 (2.95) 0.07) 2.84) 2.73) 3.63) 5.72) 3.00) 5.04) 0.72) 3.00) 0.25 (0.16 (2.63 (0. Income: Dividend Kotak Mahindra Asset Management Company Limited Kotak Mahindra Trustee Co Ltd Individual having Control Subsidiary Companies 0.73 (52.15 (2.95) 0.00 (0.26 (0.73) 29.85 (2.78) 3.65) 1.(` in Crores) Enterprise over which Relative of Key Management Personnel have control/ Relatives of Key significant Management influence Personnel Items/Related Party Kotak Mahindra Prime Limited Kotak Mahindra Capital Company Kotak Mahindra (International) Limited Other Subsidiaries II.25 (260.18) 1.18 (1.98) 9.25) 202.92) 52.42 (4.93 (27.46) 0.16 (2.73) 3.25) 202.32 (7.Dipak Gupta Other Expenses Brokerage Kotak Securities Limited Kotak MahindraFinancial Services Limited Premium Kotak Mahindra Old Mutual Life Insurance Limited Other Expenses: Aero Agencies Limited Kotak & Company Limited Other subsidiaries / Associates IV.18 (1.78) 3.67 (0.65) 1.84) 0.07) Associates Key Management Personnel Total 0.00 18 .04) 0.96 (1.42 (4.25 (260. C Jayaram Mr.45) 1.96 (1.59) 0.98 (29.00 (0.32 (0.98) 9.15 (2.92 (202.40 (2.25 (0.81) 0.81) 0.01) 18.92) 52.32 (0.22 (0.67 (0. Assets: Investments Kotak Mahindra Old Mutual Life Insurance Limited Kotak Mahindra Prime Ltd Other Subsidiaries ACE Derivatives and Commodity Exchange Ltd Add Albatross Properties Private Ltd Commission Receivable Kotak Mahindra Old Mutual Life Insurance Limited Others Kotak Mahindra Prime Limited Kotak Securities Limited Other Subsidiaries/Associates III.07 ) 8.00 6.45) 1.59) 1.92 (202.06) 0.08 (1.

07) 0.16) 0.03) 0.03 (0.94 (9.03 (0.01) 16.66 (14.03 (0.59 (9.01) 0.00 (30.03) 0.24) 9. C.03 (12. Kotak Mahindra Prime Limited Purchase of Investments Kotak Mahindra Old Mutual Life Insurance Ltd.01 (0. Uday Kotak Mr.05) 147.60 (3.63 (5.06 (0.36) 18.77 (810.00 (0.41) 260.16) 149.03) 0.56) 60.25) 5.01) 149.00 (42.76 (172.(` in Crores) Enterprise over which Relative of Key Management Personnel have control/ Relatives of Key significant Management influence Personnel Items/Related Party Individual having Control Subsidiary Companies (2.00 (5.627.66 (14. Other Transactions: Sale of Investment Kotak Mahindra Old Mutual Life Insurance Ltd.01) 0.35 0.63 (5.11 (11.83 (4.03) 0. Dividend paid Mr.00 (6.41) 260.63 (5. Dipak Gupta Ms.38 (0.16) 0.00 (5.12 (28.01) 0.65) 19 .16) 0.00 (0.24) 9.851.77 (810. Pallavi Kotak Ms.16) 149. Indira Kotak Others Reimbursements to companies 16.03 (0.25) 5.06 (0.627.03 (12.03 (0.16) 0.00 (0.12 (28. Repo Paid Kotak Mahindra Old Mutual Life Insurance Ltd.07) 147.01 (0.00 (42.01) 149.56) 60.95) 4.76 (172.00) 0.38 (0.63 (5.65) 34.60 (3.00) Associates Key Management Personnel Total (2.36) 18.84) 5.00) 1.852.851.05) 1.06) 0.11 (11. Kotak Mahindra Prime Limited Kotak Securities Limited Kotak Forex Brokerage Limited Add Albatross Properties Private Ltd Komaf Financial Services Limited Purchase of Loan Kotak Mahindra Prime Limited Repo Borrowings Kotak Mahindra Old Mutual Life Insurance Ltd.00 – 10.06) 0.00 (30.00 (6.95) 4.83 (4.84) 5.03 (0. Jayaram Mr.00) 10.852.00) 34.03) 0.00) 0.03) 0.00) Other Income Insurance Commission and Rental Income Kotak Mahindra Old Mutual Life Insurance Limited Rental and other Income Kotak Securities Limited Kotak Mahindra Capital Company Limited Kotak Mahindra Asset Management Company Limited Kotak Mahindra Prime Limited Other Subsidiaries/entities V.00) 0.00 (0.

02) 0.00 (0.00) 112.05 (0.00 (0.10) 0.49) 11.57 (50. 2.10 (0.27) 40.04) 0.03) 0.49) 11.02) 0.25 (44.10 (0.95 (12.00) 10.81) 2. However above includes transactions done on NDS with known related parties.02) 0.68) 9.00 (0.00) 0.59 (9.10 (0.04 (0.02) 0.01 (0. * List of related parties identified by management and relied upon by the auditors.00 (0.25 (44.06) 0.00 (0.04) 0. # in the above table denotes amount less than ` 50.55 (15.26) 0.000. The above does not include any transactions in relation to listed securities done on recognised stock exchange during the year.68) 9.20) 0.04 (0.05 (0.10 (0.66 (10.30) 0. 20 .00) 0.15 (0.00 (0.57 (50.15 (0.03) 0.20) 0.27) 40. Figures in brackets represent previous year's figures.02) 112.59 (9.00) 10.00 (0.10) Note: 1. 3.33) Associates Key Management Personnel Total 4.00) 0.93) 14.41 (4.60 (2.00 (0.81) 11.66 (10.00 (0.00 (0.(` in Crores) Enterprise over which Relative of Key Management Personnel have control/ Relatives of Key significant Management influence Personnel Items/Related Party Kotak Mahindra Capital Company Limited Kotak Mahindra Prime Limited Kotak Mahindra Old Mutual Life Insurance Limited Kotak Securities Limited Other Subsidiaries Purchase of Fixed assets Kotak Mahindra Prime Limited Kotak Securities Limited Kotak Mahindra Capital Company Limited Kotak Mahindra International Limited Other Subsidiaries Sale of Fixed assets Kotak Mahindra Old Mutual Life Insurance Limited Kotak Securities Limited Kotak Mahindra Prime Ltd Swaps/Forward/Options Contact Kotak Mahindra Prime Ltd Kotak Mahindra International Limited Guarantees/Lines of credit Kotak Mahindra Prime Ltd Kotak Mahindra Asset Management Company Limited Individual having Control Subsidiary Companies 4.01 (0.06) 0.02) 0.41 (4.30) 0.

86 (0.93 (64.224.00) 574.98) Investments-Gross Commission Receivable Others 21 .00 (0.15 (9.85) 0.54) 2.87) 0.79 (3.33 (3.635.90) 5.00 (0.01) 23.32 (31.25 (29.76 (515.25 (0.79) 2.Maximum Balance outstanding during the year Enterprise over which Relative of Key Management Personnel have control/ significant influence Items/Related Party Individual having Control Subsidiary Companies Associates Key Management Personnel Relatives of Key Management Personnel Liabilities Deposits 3.98) 21.259.88) 2.08 (26.23) 0.81) Other Liabilities Assets Advances 0.282.52 (1.00) 45.00 (0.69) 239.

322 4.126.033.692.658 548.671 61.955.866 374.206.607 171.686 117.945 21.165 369.592 3.658 19.293.534.017 238.758.415 41.601 215.362 3.077.742 2.660.726 6.365.256.363.274 508.448 75.145.359.750.617 15.625 207.942 3.123 390.165 21.658 343.724 656.694.856.206 165.609.205 25.792.536.202 6.499.703.668.207 385.492 14.276.195 374.323.Annexure B The following exhibit captures key financial data pertaining to the Portfolio Manager as per the financial statements Balance Sheet Audited As at 31st March 2012 (Rupees in thousands) Capital and Liabilities Capital Reserves and Surplus Employees’ Stock Options (Grants) Outstanding Deposits Borrowings Other Liabilities and Provisions Total Assets Cash and Balances with Reserve Bank of India Balances with Banks and Money at Call and Short Notice Investments Advances Fixed Assets Other Assets Total Contingent Liabilities Bills for Collection 3.083 656.180.172 292.280.732 369.067 4.915 125.241 22 .398 10.506.632.073 15.596 508.732 384.369.541 4.864.484 30.755.684.214.493.405.242 20.164.664.239.363.132 28.664.481.395 293.735 Audited As at 31st March 2011 (Rupees in thousands) Audited As at 31st March 2010 (Rupees in thousands) 348.506.766.358 64.

840.712.09 8.Profit and Loss Account As at 31st March 2012 (Rupees in thousands) As at31st March 2011 (Rupees in thousands) As at 31st March 2010 (Rupees in thousands) Income Interest earned Other income Total Expenditure Interest expended Operating expenses Provisions and Contingencies Total Profit Net Profit for the year Add: Surplus brought forward from previous year Total Appropriations Transfer to Statutory Reserve Transfer to General Reserve Transfer to Special Reserve u/s 36(i)(viii) of Income Tax Act Transfer to Capital Reserve Transfer to Investment Reserve Account Proposed Dividend Corporate Dividend Tax Balance carried over to Balance Sheet Total Earnings Per Share (Face value of Rs.189 25.838.290 20.600 400.974.358.227.053 12.755 11.897.000 6.945.078 41.066.178 21.492 36.725.402.874 5.840.530 14.458 71.831 43.61 11.903 33.057 6.677.520 7.35 11.893.912 25.649 23 .700 542.934 7.531 60.592 61.805.771.820 41.067.600 250.300) 368.869 31.045.795.821 9.719 2.048 13.850.348.000 200 145.945.719 8.900 (268.768 15.533.659.795.100.800 280.699.5/Basic Diluted Note: 1.200 444.69 14.659. The audited financial statements shall be made available on request.199 7.181.489.349 49.611.654 14.362 9.460 18.074) 9.521.500 409.053 17.100.929 72.900 296.00 2. 14.450 38.435 12.702.000 69.189 17.202 5.627.921.299 5.600 11.100 290.802.613 (20.28 8.773.492 10.575.874 1.

INGS Point.400 098. Plot No. 8. Kalina. Santacruz (East). 1st Floor. : +91 22 22651186 / 3023 / 3024 / 66345630 Partner Ms. Hamam House.400 098. Mumbai 400 021. Nariman Point. Plot No. 1993 (Regulation 14) KOTAK MAHINDRA BANK LIMITED Registered Office : 36-38A. Fort. 3rd Floor. 8. Phone : 022-67206981 Fax : 022-67206560 We confirm that: (i) the Disclosures Document forwarded to the Board is in accordance with the SEBI (Portfolio Managers) Regulations. Vidya Barje Membership No. Mumbai . 1993 and the guidance and directives issued by the Board from time to time. Ambalal Doshi Marg. 104994) on 15th June 2012. CST Road. Santacruz (East). Date : 15th June 2012 Place : Mumbai 24 . (ii) (iii) *The Portfolio Manager only provides non-discretionary investment advisory services. Chartered Accountants (Registration No. 101851W dated 01/011956). Correspondence Address : 3rd Floor. Mumbai . Kalina. University Campus. Sd/Jaideep Hansraj Principal Officer Kotak Mahindra Bank Ltd.Form C Securities and Exchange Board of India (Portfolio Managers) Regulations. CST Road. fair and adequate to enable the investors to make a well informed decision regarding entrusting the management of the portfolio to us / investment in the Portfolio Management*. the disclosures made in the document are true. INGS Point. Opp. A copy of the Chartered Accountant’s Certificate is enclosed. Phone No. Mumbai 400 001. the disclosure document has been duly certified by an independent chartered accountant M/s M P Chitale & Co.

1993 by Kotak Mahindra Bank Ltd. Mumbai . Chartered Accountants Firm Reg. 5th Floor. This certificate has been issued on request of Kotak Mahindra Bank Ltd.. : 43474301-03 Fax : 43474304 Certificate From External Auditors The Principal Officer. having its registered office at 36-38A. June 15. We are unable to comment on the some. fair and adequate to enable the investors to make a well informed decision. Prabhadevi. Prabhadevi Ind. No.101851W Sd/Vidya Barje Partner M. Kotak Infiniti. 1st Floor. We have relied on the representations given by the management about the penalties or litigations against the Portfolio Manager mentioned in the disclosure document. General AK Vaidya Marg. Chitale & Co.25 Tel. 104994 Mumbai. For submission to Securities and Exchange Board of India under SEBI (Portfolio Management) Regulations 1993 and should not be used or referred to for any other purpose without our prior written consent. No. Veer Savarkar Marg. P.M. Off Western Express Highway. Chitale & Co. We have examined the attached Disclosure Document dated June 15. and other relevant records and information furnished by Management. 2012 for Portfolio Management prepared in accordance with Regulation 14 of SEBI (Portfolio Managers) Regulations. P. audited accounts of Kotak Mahindra Bank Ltd. Estate. Building No. Kotak Mahindra Bank Ltd. 21. Infinity Park. For M. Chartered Accountant 1/11. Malad (E). Nariman Point. 2012 25 . Nariman Bhavan 227. Siddhivinayak Temple. Mumbai 400 021. Opp. we certify thet the disclosures made in the attached Disclosure Document for Portfolio Management are true. Based on our examination of Disclosure Document.