A Project Report On




SINHGAD INSTITUTE OF MANAGEMENT, Vadgaon, Pune (2009 ± 2011)
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I, the undersigned, hereby declare that the Project Report entitled A STUDY OF RATIO ANALYSIS IN KOTAK MAHINDRA GROUP written and submitted by me to Sinhgad Institute Of Management, Pune in the partial fulfillment of the requirement for the award of Post Graduation Diploma In Management under the Guidance of Prof. V Jain. This is my original work and the conclusions drawn therein are based on the material collected by myself.

Place: Pune


Date: / /

(Research Student)

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This is to certify that the Project Report entitled


MAHINDRA GROUP which is being submitted herewith for the award of the degree of Post

Graduation Diploma Management, is the result of the original research work completed by Ratio analysis under my supervision and guidance and to the best of my knowledge and belief the work embodied in this Project Report has not formed earlier the basis for the award of any degree or similar title of this or any other examining body.

Signature of Director

Signature of guide

Dr. Daniel Penkar Date: Place: Pune.

Prof. V Jain Date: Place: Pune

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Pune without his help completion of the project was highly impossible. invaluable guidance and help for completing the present research work. Shivaji U. NEERAJ TRIPATHI Page 4 of 68 . Director Dr. Head Research. Pune for their continuous encouragement.ACKNOWLEDGEMENT I take this opportunity as privilege to express my deep sense of gratitude to Dr. Jt. my project guide. Lastly. and Dr. Director. Sinhgad Institute of Management. Rupali Jain. V Jain. They have been a source of Inspiration to me and I am indebted to them for initiating me in the field of research. I would like to acknowledge all my family members & friends for their help and support. I convey my gratitude to all those who or directly or indirectly related to this project and helped me to complete this project report. Daniel Penkar. Gawade. Thanks and regards. I am deeply indebted to Prof. Sinhgad Institute of Management.

1Introduction of ratio analysis 1.CONTENTS CHAPTER NO.5 Limitation of the Project 2 Company profile 2.2 Classification of Ratio 1.2 Corporate Identity 2.3 Management Team 2.3Sampling design & plan 42-45 Page 5 of 68 .3 Objective of the research 1.4 Different Product And Services 25-41 3 Research Design and méthodology 3.2 Steps of Reseach process 3. * 1 PARTICULARS PAGE NO.1 Company Name & History 2. 7 8-24 Executive Summary Introduction 1.4 Scope of the Project 1.1 Meaning Of Research 3.

2 Balance sheet 4.1Main findings of study 5.2Suggestions 62-64 6 * Conclusion Bibliography 65-66 67-68 Page 6 of 68 .1 Data Interpretation 4.4 Data Interprétation and Présentation 4.4 Ratio¶s 46-61 5 Findings and Suggestions 5.3 Profit & Loss 4.

It's comparing the number against previous years. Ratios look at the relationships between individual values and relate them to how a company has performed in the past. other companies. and might perform in the future. If used in conjunction with other methods. Ration analysis can be classified into different categories. according to there necessities. These categories are:Liquidity ratio Leverage ratio Activity ratio Profitability ratio Page 7 of 68 . Ratio analysis isn't just comparing different numbers from the balance sheet. income statement. or even the economy in general. The other side considers tangible and measurable factors (quantitative). This means crunching and analyzing numbers from the financial statements. the industry. Fundamental Analysis has a very broad scope. quantitative analysis can produce excellent results.EXECUTIVE SUMMARY The project was done on the study of ratio analysis for kotak Mahindra group. and cash flow statement. One aspect looks at the general (qualitative) factors of a company.

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e. to increase the investor¶s wealth. If comparison shows a variance. Significance or Importance of ratio analysis: y Helps in evaluating the firms performance: With the help of ratio analysis conclusion can be drawn regarding several aspects such as financial health.(1. It ensures a fair return to its owners and secures optimum utilization of firms assets y Helps in inter-firm comparison: Ratio analysis helps in inter-firm comparison by providing necessary data. Ratio points out the operating efficiency of the firm i. It provides the relevant data for the comparison of the performance of different departments. It is defined as the systematic use of ratio to interpret the financial statements so that the strength and weaknesses of a firm as well as its historical performance and current financial condition can be determined. the possible reasons of variations may be identified and if results are negative. the action may be initiated immediately to bring them in line. whether the management has utilized the firm¶s assets correctly. Page 9 of 68 . profitability and operational efficiency of the undertaking. The term ratio refers to the numerical or quantitative relationship between two variables. An interfirm comparison indicates relative position.1) Introduction of ratio analysis Ratio Analysis Definition of ratio analysis: Ratio analysis is a widely used tool of financial analysis.

y Simplifies financial statement: The information given in the basic financial statements serves no useful Purpose unless it s interrupted and analyzed in some comparable terms. y Helps in determining the financial position of the concern: Ratio analysis facilitates the management to know whether the firms financial position is improving or deteriorating or is constant over the years by setting a trend with the help of ratios The analysis with the help of ratio analysis can know the direction of the trend of strategic ratio may help the management in the task of planning. The ratios can also serve as a basis for preparing budgeting future line of action. y Helpful in budgeting and forecasting: Accounting ratios provide a reliable data. The ability to met short term liabilities is reflected in the liquidity ratio of a firm. The liquidity position of a firm would be satisfactory if it is able to meet its current obligation when they become due. These ratios provide sound footing for future prospectus. y Liquidity position: With help of ratio analysis conclusions can be drawn regarding the Liquidity position of a firm. which can be compared. studied and analyzed. Page 10 of 68 . The ratio analysis is one of the tools in the hands of those who want to know something more from the financial statements in the simplified manner. forecasting and controlling.

Solvency ratio shows relationship between total liability and total assets. relevant from the View point of management is that it throws light on the degree efficiency in the various activity ratios measures this kind of operational efficiency. Page 11 of 68 . y Operating efficiency: Yet another dimension of usefulness or ratio analysis. The long term solvency s measured by the leverage or capital structure and profitability ratio which shows the earning power and operating efficiency.y Long term solvency: Ratio analysis is equally for assessing the long term financial ability of the Firm.

you should do both. calculate their financial ratios. progressive and successful competitor. y y INDUSTRY RATIOS: Ratios of industry to which the firm PROJECTED RATIOS: Ratios developed using the projected or proforma. belongs. A single ratio is itself does not indicate favourable or unfavourable condition.Trend and Industry Analysis That¶s where trend (time-series) and industry (cross-sectional) analysis come in. You can gather data from similar firms in the same industry. financial statements of the same firm. Ideally. to see how your firm is doing over a series of time periods. You can also compare your firm¶s ratios to industry data. It consists of: y y PAST RATIOS: Rations calculated from past financial statements of the same firm. which is data from other time periods for your firm. COMPETITORS RATIOS: Ratios of some selected firms. You can compare your firm¶s ratios to trend data. It should be compared with some standard. to get a good picture of the financial picture of your firm. STANDARDS OF COMPARISION: The ratio analysis involves comparison for a useful interpretation of the financial statements. Page 12 of 68 . especially most at the same point of time. and see how your firm is doing compared to the industry at large.

owners and management. Similarly. A firm should ensure that it does not suffer from lack of liquidity and also that it does not have excess liquidity. 2. Management is interested in evaluating every aspect of the firm's performance. loss of creditors confidence or even in legal tangles resulting in the closure of company. The failure of the company to meet its obligations due to the lack of sufficient liquidity will result in a poor credit worthiness. but liquidity ratios by establishing a relationship between cash and other current assets to current obligations provide a quick measure of liquidity. In fact analysis is of liquidity needs in the preparation of cash budgets and cash and funds flow statements. The ability of the firm to meet its current obligations.(1. 1. it is necessary to strike a proper balance between high liquidity and lack of liquidity. Short term creditors main interest is I the liquidity position or short term solvency of the firm. idle assets earn nothing. Long term creditors on the other hand are more interested in the long term solvency and profitability of the firm.2) Classification of Ratios The parties interested in financial analysis are short and long term creditors. 3. Current ratio Quick ratio Interval measure Net working capital ratio Page 13 of 68 . 4. The firm's funds will be unnecessarily tied up to current assets. owners concentrate on the firm's profitability and financial condition. A very high degree of liquidity is also bad. Therefore. It is extremely essential for a firm to be able to meet its obligations as they become due liquidity ratio's measure. They are classified into 4 categories: y y y y Liquidity ratios Leverage ratios Activity ratios Profitability ratios Liquidity Ratios: Liquidity ratios measure the firms ability to meet current obligations.

debtors and inventories. accrued expenses. INTERVAL MEASURE: CURRENTASSETS±INVENTORY AVERAGE DAILY OPERATING EXPENSES Page 14 of 68 . Interval Measure: The ratio which assesses a firm's ability to meet its regular cash expenses is the interval measure. short term back loan. assets and current liabilities. income tax liability and long term debt maturing in current year. Inventories are considered to be less liquid. The current ratio represents margin of safety for creditors CURRENT RATIO = CURRENTS ASSETS CURRENT LIABILITIES 2. other assets which are considered to be relatively liquid and included in quick assets are debtors and bills receivables and marketable securities. Generally a quick ratio of 1:1 is considered to represent a satisfactory current financial condition QUICK RATIO: CURRENT . administrative and general expenses less depreciation divided by number of days in the year. The daily operating expenses will be equal to cost of goods sold plus selling. bills payable.INVENTORIES CURRENT LIABILITIES 3. The current ratio is a measure of firm's short term solvency. As a conventional rule a current ratio of 2:1 or more is considered satisfactory. Current Ratio: Current ratio is calculated by dividing current assets by current liabilities: Current assets include cash and those assets which can be converted into cash within a year. Interval measure relates the liquid assets to average daily operating cash outflows. Current liabilities include creditors. Quick Ratio: Quick ratio establishes a relationship between quick or liquid.1. such as marketable securities. Cash is the most liquid asset.

Net assets consist of net fixed assets and net current assets: DEBT RATIO: TOTAL DEBT NET ASSETS 2. long term creditors like debenture holders. 2. Debt Ratio: Several debt ratios may be used to analyse the long term solvency of the firm. like bankers and suppliers of raw material are more concerned with the firms current debt paying ability. financial leverage or capital structure. are more concerned with firms long term financial strength. On the other hand. Debt Ratio Debt Equity Ratio Capital employed to net worth ratio Other Debt Ratios 1. Net working capital is sometimes used as measure of firm's liquidity. 3. financial institutions etc. 1. NET W.4. As a general rule. These ratios indicate mix of funds provided by owners and lenders. In fact a firm should have short as well as long term financial position. It may therefore compute debt ratio by dividing total debt by capital employed or net assets.C RATIO: NETWORKING NET ASSETS CAPITAL Liverage Ratios: The short term creditors. To judge the long term financial position of the firm. 4. ratios are calculated. there should be an appropriate mix of debt and owners equity in financing the firm's assets. Net Working Capital Ratio: The difference between current assets and current liabilities excluding short term bank borrowing is called net working capital or net current assets. Debt Equity Ratio: Page 15 of 68 .

Activity ratios are employed to evaluate the efficiency with which the firm manages and utilizes its assets these ratios are also called turnover ratios because they indicate the speed with which assets are being Page 16 of 68 . The better the management of assets. Capital Employed To Net Worth Ratio: There is an another alternative way of expressing the basic relationship between debt and equity. Other Debt Ratios: To assess the proportion of total funds ± Short and Long term provided by outsiders to finance total assets. It helps in knowing. This can be found out by calculating the ratio of capital employed or net assets to net worth NET WORTH RATIO: CAPITAL EMPLOYED NET WORTH 4. the larger is an amount of sales.It is computed by dividing long term borrowed capital or total debt by Share holders fund or net worth. how much funds are being contributed together by lenders and owners for each rupee of owner's contribution. DEBT EQUITY RATIO: TOTAL DEBT NET WORTH DEBT EQUITY RATIO: LONG TERM BORROWED CAPITAL SHARE HOLDERS FUND 3. the following ratio may be calculated TL to TA RATIO: Other debt ratio: TOTAL LIABILITIES TOTAL ASSETS Activity Ratios: Funds of creditors and owners are invested in various assets to generate sales and profits.

the more efficient is the management of credit DEBTORS TURNOVER RATIO = CREDIT SALES AVERAGE DEBTORS 3. Average inventory consists of opening stock plus closing stock divided by 2. AVERAGE COLLECTION PERIOD= NO. Debtors turnover indicates the number of times debtors turnover each year. INVENTORY TURNOVER RATIO: COST OF GOODS SOLD AVERAGE INVENTORY 2. thus. 5.converted or turned over into sales. Inventory Turnover Ratio: Inventory turnover ratio indicates the efficiency of the firm in producing and selling its product. Inventory turnover ratio Debtors turnover ratio Collection period Net assets turnover ratio Working Capital turnover ratio 1. 1. involve a relationship between sales and assets. Activity ratios. OF DAYS IN A YEAR Page 17 of 68 . It is calculated by dividing cost of goods sold by average inventory. 2. 4. A proper balance between sales and assets generally reflects that assets are managed well. Generally the higher the value of debtors turnover. Collection Period: The average number of days for which debtors remain outstanding is called the average collection period. Debtors Turnover Ratio: Debtors turnover ratio is found out by dividing credit sales by average debtors. 3.

Generally. Working Capital Turnover Ratio: A firm may also like to relate net current assets to sales. Gross profit margin ratio Page 18 of 68 . Net assets include net fixed assets and net current assets NET ASSETS TURNOVER RATIO= SALES NET ASSETS 5. irrespective of social consequences. Profits are essential but it would be wrong to assume that every action initiated by management of a company should be aimed at maximizing profits. It may thus compute net working capital turnover by dividing sales by net working capital WORKING CAPITAL TURNOVER RATIO= SALES NET CURRENT ASSETS Profitability Ratios: A company should earn profits to survive and grow over a long period of time. The profitability ratios are calculated to measure the operating efficiency of the company. Therefore. 2. The relationship between sales and assets is called net assets turnover ratio. the financial manager should continuously evaluate the efficiency of the company in terms of profits. there are two types of profitability ratios 1. Profit is the ultimate output of a company and it will have no future if it fails to make sufficient profits. Profit is the difference between revenues and expenses over a period of time. Net Assets Turnover Ratio: A firm should manage its assets efficiently to maximise sales. Profitability in relation to sales Profitability in relation to investment a.DEBTORS TURNOVER 4.

This ratio is computed by dividing operating expenses like cost of goods sold plus selling expenses. GROSS PROFIT RATIO= GROSS PROFIT SALES b. Operating Expense Ratio: Operating expense ratio explains the changes in the profit margin ratio. Price earning ratio a. Net profit margin ratio c. general expenses and administrative expenses by sales. Earning per share g. The gross profit margin reflects the efficiency with which management produces each unit of product. This ratio indicates the average spread between the cost of goods sold and the sales revenue. Return on equity f. interest and taxes are subtracted from the gross profit. Net Profit Ratio: Net profit is obtained when operating expenses. Return on Investment e. The net profit margin is measured by dividing profit after tax or net profit by sales. Gross Profit Ratio: It is calculated by dividing gross profit by sales. Dividends per share h. Dividend pay out ratio i. Operating expenses ratio d. OPERATING EXPENSE RATIO= OPERATING EXPENSES SALES Page 19 of 68 .b. NET PROFIT RATIO= NET PROFIT SALES c.

RETURN ON EDQUITY= PROFIT AFTER TAX NET WORTH f. OF SHARES OUTSTANDING Page 20 of 68 . The earning of a satisfactory return is the most desirable objective of business. EARNINGS PER SHARE= PROFIT AFTER TAX NO. d. Return on equity indicates how well the firm has used the resources of owners. Return On Equity: Ordinary share holders are entitled to the residual profits. it does not reflect how much is paid as dividend and how much is retained in business. While PAT represent residue income of shareholders RETURN ON INVESTMENT= PROFIT AFTER TAX INVESTMENT e. Investment represents pool of funds supplied by shareholders and lenders. A return on shareholders equity is calculated to see the profitability of owners investment. Earnings Per Share: The measure is to calculate the earning per share. The earning per share is calculated by dividing profit after tax by total number of outstanding. EPS simply shows the profitability of the firm on a per share basis. Return On Investment: The term investment may refer to total assets or net assets.The higher operating expenses ratio is unfavorable since it will leave operating income to meet interest dividends etc. The conventional approach of calculating return on investment is to divide profit after tax by investment.

DPS= EARNINGS PAID TO SHARE HOLDERS NUMBER OF SHARES OUTSTANDING h. The price earning ratio is widely used by security analysts to value the firm's performance as expected by investors.g. a larger number of present and potential investors may be interested in DPS rather than EPS. the P/E ratios for industries very widely. But the income which they really receive is the amount of earnings distributed as cash dividends. Industries differ in their growth prospects. PRICE EARNING RATIO= MARKET VALUE PER SHARE EARNING PER SH Page 21 of 68 . Price Earning Ratio: The reciprocal of the earnings yield is called price earning ratio. Therefore. Accordingly. DIVIDEND PAY OUT RATIO= DIVIDEND PER SHARE EARNINGS PER SHARE i. Dividend Pay Out Ratio: The dividend pay out ratio is simply the dividend per share divided by Earnings Per Share. Price earning ratio reflects investors expectations about the growth of firm's earnings. DPS is the earnings distributed to ordinary shareholders divided by the number of ordinary shares outstanding. Dividends Per Share: The net profits after taxes belong to shareholders.

Ratios are highly important profit tools in financial analysis that help financial analysts implement plans that improve profitability. they can be predictive too. make an appropriate allowance for any changes in accounting that occurred during the same time span. y significantly affect Carefully examine any departures from industry norms. such as non-recurring items and inventory proforma adjustments. and interest coverage. leverage. reordering. There are several considerations you must be aware of when comparing ratios from one financial period to another or when comparing the financial ratios of two or more companies. financial structure. y Determine whether ratios were calculated before or after adjustments were made or the to the balance sheet or income statement.3) Objectives Of Project Purposes and Considerations of Ratios and Ratio Analysis. a method sometimes called trend analysis.(1. Page 22 of 68 . Ratio analysis is primarily used to compare a company's financial figures over a period of time. and adjust your business practices accordingly. In many cases. the y When comparing ratios from various fiscal periods or companies. Different accounting methods can result in a wide variety of reported figures. liquidity. both in and out of your industry. good and bad. Through trend analysis. y When comparing your business with others in your industry. you can identify trends. y If you are making a comparative analysis of a company's financial statements over a policies certain period of time. inquire about types of accounting policies used. allow for any material differences in accounting policies between your company and industry norms. Although ratios report mostly on past performances. You can also see how your ratios stack up against other businesses. these adjustments can ratios. and provide lead indications of potential problem areas.

as the analysis is done by using some basic ratios of the industry in which the firm under analysis belongs to (and specifically. creditors and management.(1.the analysis is based on a year-to-year comparison of a firm's ratios. The objective of ratio analysis is the comparative measurement of financial data to facilitate wise investment.ratios are used and compared between several firms of the same industry in order to draw conclusions about an entity's profitability and financial performance. to get useful information and draw useful conclusions. This analysis is primarily designed to meet informational needs of investors. It involves methods of calculating and interpreting financial ratios in order to assess a firm's performance and status. credit and managerial decisions. and y Cross-sectional analysis . y Vertical analysis . Page 23 of 68 .the comparison of balance sheet accounts either using ratios or not. Some examples of analysis. according to the needs to be satisfied. the average of all the firms of the industry) as benchmarks or the basis for our firm's overall performance evaluation.ratios which are derived from the information given in a company's financial statements(which must be from similar points in time and preferably audited financial statements and developed in the same manner). are: y Horizontal analysis .4) Scope Of Project Financial ratio analysis is the calculation and comparison of main indicators . Inter-firm analysis can be categorized under cross-sectional.

y Seasonal factors may distort ratios and thus must be taken into account when making ratios are used for financial analysis.5) Limitations Of Ratios Analysis y Ratios are not predictive. y Not always easy to tell that a ratio is good or bad. y Comparisons with industry averages is difficult for a conglomerate firm since it operates in many different market segments. Page 24 of 68 . as they are usually based on historical information notwithstanding ratios can be used as a tool to assist financial analysis. Using the average of certain ratios for companies operating in a specific industry to make comparisons and draw conclusions may not necessarily be a indicator of good performance. as they ignore future action by management. y Different operating and accounting practices can distort comparisons. Must be always used as an additional tool to back up or confirm other financial information gathered. y However they do not reflect the future perspectives of a company. y They can be easily manipulated by window dressing or creative accounting and may be distorted by differences in accounting policies. perhaps a company should aim higher. y They help to focus attention systematically on important areas and summarise information in an understandable form and assist in identifying trends and relationships (see methods for facilitating the financial analysis above). y Inflation should be taken into consideration when a Ratio Analysis is being applied as it can distort comparisons and lead to inappropriate conclusions.(1.

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to life insurance. to stock broking. Jayaram Mr. C.2 million customer accounts.1) The Kotak Mahindra Group Kotak Mahindra is one of India's leading financial organizations. franchisees. The Group services around 6. offering a wide range of financial services that encompass every sphere of life.About The Company (2. The group has a net worth of over Rs. Mauritius and Singapore. 6. London. the group caters to the diverse financial needs of individuals and corporates. representative offices and satellite offices across cities and towns in India and offices in New York.523 crore and has a distribution network of branches. Uday Kotak Mr. Dipak Gupta Executive Vice Chairman & Managing Director Page 26 of 68 . to mutual funds. Dubai. San Francisco. to investment banking. From commercial banking. Group Management Mr.

Kotak Mahindra Capital Company The Auto Finance Business is hived off into a separate company . Kotak Mahindra ties up with Old Mutual plc. and that's when the company changed its name to Kotak Mahindra Finance Limited.kotaksecurities. for the Life Insurance business. Sidney A. This company was promoted by Uday Kotak. Takes over FICOM. one of India's largest financial retail marketing networks Enters the Funds Syndication sector Brokerage and Distribution businesses incorporated into a separate company .com). for financing Ford vehicles. Since then it's been a steady and confident journey to growth and success.Kotak Mahindra Prime Limited (formerly known as Kotak Mahindra Primus Limited). Kotak Mahindra 1996 takes a significant stake in Ford Credit Kotak Mahindra Limited. Commencement of private equity activity through setting up of Kotak Mahindra Page 27 of 68 .Formation Of The Company The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited. A. 2000 Kotak Securities launches its on-line broking site (now www.Kotak 1995 Securities. Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986. Pinto and Kotak & Company. Investment Banking division incorporated into a separate company . The launch of Matrix Information Services Limited marks the Group's entry into information distribution. 1998 Enters the mutual fund market with the launch of Kotak Mahindra Asset Management Company. 1986 1987 1990 1991 1992 Kotak Mahindra Finance Limited starts the activity of Bill Discounting Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market The Auto Finance division is started The Investment Banking Division is started.

Venture Capital Fund. a private equity fund. Launches India Growth Fund. converts to a commercial bank . Kotak Group realigns joint venture in Ford Credit. Launches a real estate fund 2006 Bought the 25% stake held by Goldman Sachs in Kotak Mahindra Capital Company and Kotak Securities Page 28 of 68 . 2001 2003 2004 Matrix sold to Friday Corporation Launches Insurance Services Kotak Mahindra Finance Ltd. Buys Kotak Mahindra Prime 2005 (formerly known as Kotak Mahindra Primus Limited) and sells Ford credit Kotak Mahindra.the first Indian company to do so.

2) Corporate Identity Kotak Mahindra Asset Management Company Limited (KMAMC) Kotak Mahindra Asset Management Company Limited (KMAMC). We are sponsored by Kotak Mahindra Bank Limited. KMMF offers schemes catering to investors with varying risk . Kotak Mahindra Asset Management Co. is our Investment Manager. is the Asset Manager for Kotak Mahindra Mutual Fund (KMMF). Page 29 of 68 . 1998. Different people have different investment needs. The ability to take risks while investing in financial products varies accordingly.return profiles and was the first fund house in the country to launch a dedicated gilt scheme investing only in government securities. We made a humble beginning in the Mutual Fund space with the launch of our first scheme in December. Ltd. a wholly owned subsidiary of the bank. one of India's fastest growing banks. a wholly owned subsidiary of KMBL.(2.. KMAMC started operations in December 1998 and has over 4 Lac investors in various schemes. with a pedigree of over twenty years in the Indian Financial Markets. Today we offer a complete bouquet of products and services suiting the diverse and varying needs and risk-return profiles of our investors. We are committed to offering innovative investment solutions and world-class services and conveniences to facilitate wealth creation for our investors.

Pradeep Kotak. Shankar Acharya retires at this Annual General Meeting and is eligible for re-appointment.(2. has reappointed Dr. Shankar Acharya as part-time Chairman of the Bank. Mr. Gherda and Mr. at its meeting held on 12th May 2010. Kotak during their tenure as Directors of the Bank. Asim Ghosh who was appointed as an Additional Director of the Bank with effect from 9th May 2008. Mr. was appointed as a Director of the Bank. pursuant to the proviso to Section 260 of the Companies Act. holds office as a Director up to the date of this Annual General Meeting but is eligible to be appointed as a Director. 500/. Dr. Shishir Bajaj for his appointment as a Director.proposing the candidature of Mr. Gherda retired as a Director of the Bank at the Twenty Third Annual General Meeting of the Bank held on 28th July 2008. the largest sugar and ethanol manufacturing company in India. He has Page 30 of 68 . M. In terms of Section 257 of the Companies Act. 1956. Shishir Bajaj was appointed as an Additional Director of the Bank with effect from 12th May 2009 and. Your Directors place on record their deep appreciation for the valuable advice and guidance rendered by Mr.3) Management Team DIRECTORS Mr. Shishir Bajaj is an MBA from the Stern School of Business. with effect from 20th July 2010 subject to the approval of the shareholders and of the Reserve Bank of India. Mr. New York University majoring in Finance. The approval of the shareholders in this regard is being sought at the ensuing Annual General Meeting of the Bank. Bajaj is presently the Chairman and Managing Director of Bajaj Hindustan Ltd. Kotak has expressed hisdesire not to seek reappointment. Mr. Director of the Bank retires by rotation at the Twenty Fourth Annual General Meeting. (BHL). The Board of Directors of the Bank. At the same meeting. K. Mr. 1956 the Bank has received notice in writing from a member along with a requisite deposit of Rs. Mr. for a period of three years.

auditors of your Bank. R. Page 31 of 68 . The Bank standalone had around 8400 employees as of 31st March 2010. retire on the conclusion of Twenty Fourth Annual General Meeting and are eligible for re-appointment. 24 lacs or more per annum. 179 employees employed throughout the year and 88 employees employed for part of the year were in receipt of remuneration of Rs. Chartered Accountants. as compared to around 21000 employees a year ago. You are requested to appoint auditors for the current financial year and to fix their remuneration.been looking after the affairs of BHL since 1974 shouldering its overall responsibility and was made the Managing Director of BHL in 1988. 1998. EMPLOYEES The employee strength of Kotak Mahindra along with its subsidiaries as of 31st March 2010 was around 18000. He has over 35 years of extensive experience in the Indian Sugar Sector. STATUTORY INFORMATION The Companies (Disclosure of Particulars in the Report of Board of Directors) Rules.. AUDITORS Messrs S. Batliboi & Co. are not applicable to Kotak Mahindra .

Page 32 of 68 . Our Systematic Investment Plan is a tool. which span across the risk-reward spectrum (2. inject this discipline in your financial management efforts. which can help you.In this section we present our wide range of Mutual Fund schemes. many a times self-imposed.4) Different Company¶s Product Or Services Kotak 30 Kotak Lifestyle Kotak Equity Arbitrage Fund Kotak Indo World Kotak Midcap Kotak Contra Kotak Emerging Kotak Opportunities Kotak Tax Saver Kotak Global Equity Scheme Emerging Market Infrastructure Fund Management of one's finances to attain a defined goal calls for a lot of discipline. in the long term tends to iron out market fluctuations. thus making investments a mandatory component while you allocate your resources. SIPs help in arresting uncertainties associated with trying to time the market and thus. It also brings in the much needed investment discipline as you allocate a defined sum to your investments for a defined frequency. Our Systematic Investment Plan (SIP) provides you the facility to periodically invest a fixed sum over any defined period of time (6 months or more) in a disciplined manner.

As you would allocate a fixed sum every month. 2) Investors interested in booking gains at a regular interval. regular funds inflow from their investments. This facility caters to two segments of investor needs : 1) Investors wanting defined. you should opt for the Appreciation option.It brings down your average cost of acquisition of units. on account of inflation. Through our SWP you can redeem defined sums at a pre-defined frequency by giving a one-time instruction to us. Finally. through this arrangement. We call this Rupee Cost Averaging. If you require an exact amount regularly then the Fixed Option is suitable for you. You may choose to regularly withdraw either a fixed sum or just the appreciation on your investments. you would buy more units when the prices of our units are lower than when they are higher. Want to receive a regular stream of payouts in a defined frequency ? Want to book profits periodically ? Our Systematic Withdrawal Plan (SWP) is designed keeping in mind these requirements of yours. you stand to gain in terms of a more favourable entry load on your systematic investments. your funds otherwise lying idle (and if you know it. depleting in real value) in your bank account get channelised into future wealth creating investments. Page 33 of 68 . And of course. If you do not want this withdrawal to disturb your capital contribution and would like only to reap the appreciation generated in the investment.Ideally SWP should be opted from the growth options of our schemes.

allowing You can choose to transfer either a fixed sum every defined period or only the appreciation on your investments over that period from one scheme to another. The later is helpful. Such investors can invest in our Debt Schemes and choose a periodic transfer of investments into our equity schemes. Ideally STP should be opted from the growth options of our schemes. 2) Investors who are already invested in equity wanting to book profits regularly and the profits to earn returns in any of our Debt schemes. Our Direct Credit Facility comes automatically to you (unless you choose otherwise) if you hold an account with any of the 14 banks listed below : ABN AMRO Bank AXIS Bank Deutsche Bank HDFC Bank Indusind Bank Kotak Mahindra Bank Page 34 of 68 . Through our STP you can choose to switch your investments from one Kotak Mutual scheme to another at a predefined frequency by giving a one-time instruction to us. Our Systematic Transfer Plan (SWP) caters to your above needs. where you do not want the transfer to disturb your capital contribution. You also have a choice between switching a fixed sum or only the appreciation on your investments. Want to receive your dividend entitlement and redemption payouts faster and straight into your bank account. This 1) facility caters to two segments of investor needs : Investors wanting to time their exposure in the equity markets over a period of time instead of a point in time.Want a phased entry into the Equity markets rather than putting in all your money at one tranch? Want to book profits from your equity holdings and want your profits to continue earning for you ? Try our Systematic Transfer Plan (STP).

Besides. ECS as a mechanism for payout of Dividends is faster. convenient. This facility is currently offered across all banks in over 71 locations. you don't run the risk of loss of dividend instruments in transit and the associated delays in obtaining a duplicate instrument.Centurion Bank of Punjab Citibank Corporation Bank HSBC ICICI Bank IDBI Bank Standard Chartered Bank Yes Bank Direct Credit is safer. Opt in for ECS of Dividends. faster and convenient compared to the conventional cheque payout mechanism. To transact online you need to be an existing investor You can purchase or redeem Kotak Mutual Fund Units sitting at the your house or office at your convenient time. Page 35 of 68 comfort of . Tired of running to the bank for banking your dividend cheques and then waiting for it to clear. You can now do the following transaction online. No need to do paper work or travel to ISC¶s to transact. Leave your worries to us. ECS (Electronic Clearing Service) is a Reserve Bank of India offering to facilitate. This is a one stop shop for you to transact online. faster and seamless payout of dividends directly into your bank account. among others. cost-effective and hassle-free. Financial Transaction Purchase. Your first investment should be through your distributor / directly.

You should approach your clients as consultants and not as vendors and help them achieve their financial goals.in and Switch . based on establishing a high level of trust and credibility with the customer. ¤ Selling Models Page 36 of 68 . Your job is to create and keep a customer indefinitely. Redemption. Non Financial Transaction View your transaction status.Switch . View and print your account statement. Know latest market value. You keep your customer by continually investing in maintaining the quality of your relationships. The essence of professional selling today is building and maintaining of high quality relationships. Know latest unit balance.out. Change your PIN number.

The various choices/plans available and their advantages The nature of the scheme The potential of returns and the risk associated with it Tax benefits Operational Details Page 37 of 68 .¤ The Selling Process ¤ Before you start selling Mutual funds you need to understand the scheme you are selling. You should keep yourself updated on the track record of the scheme as well as the overall performance of the mutual fund. Thus before recommending an investment you should know: The strength of the Asset Management Company and sponsors of Mutual Fund. You should not only focus on the specific features of the scheme but focus also on the specific financial goals of the prospect and show how the scheme enables him to get what he really wants.

Clients may vary. Some of the categories are given below Young and Accumulating: These clients are typically under 40. Page 38 of 68 . seeking capital appreciation.Receptive. earning capacity. The earlier you identify which of these you are talking to the more productive will be your selling efforts. family commitments and ability to take risk. Independent minded clients: These are clients who prefer investing directly and do not use financial advisors. potential and independent minded.Knowing your client is a strategic step. Working closely with them could make them Receptive clients. banks. They have the discipline to invest regularly and believe in the merits of professional financial advisors. They can be cultivated over time. trusts and wealthy investors who seek an appropriate combination of tax efficient growth and income depending upon their return expectation. Their financial needs and choice of investment differs depending on their age. Potential: They are the people who have neither the discipline nor the patience to invest but do have the desire to become a successful investor. Receptive: They are clients who will work in close association with you to develop a financial plan. Middle aged with family commitments: Ideally between 40-60 and looking at stable investments and lower risks Retired: They are above 60 years seeking income to meet their regular expenses. They are willing to take high risks for high returns. There are three types of prospects . Safety of their principal is their prime concern Institutions and high net worth individuals: These include corporates.

Encourage regular investment Page 39 of 68 .5) Quality Policy& Objectives Before you recommend a financial plan you must understand the needs and priorities of your client. Be completely focused on helping your client to make a good buying decision. You should be honest and straightforward. For this you need to understand your clients Investment objectives Risk tolerance Return Expectation Cash flow requirement Tax benefits Organization Plans Help them choose their investments After having understood your client's needs. Here are some of the alternatives that can be presented to your client. You should help him see synergies between his financial goals and your financial plan objectives.(2. priorities and financial goals you have to advice him on where to invest. Your relationship depends a lot on the advice you give to your client.

sales. Page 40 of 68 . Try and help him in any way you can. It is by doing the things that go beyond what the client anticipates that you build high levels of goodwill that leads to testimonials.service The last and the most important part of the sales process is the augmented element. It is in this area of exceeding expectations that you can set yourself apart from other distributors. Provide personalized after. application forms and other documents required for the sale. These are the extra things that you include in your service that go beyond expectations. Go a step further and be ready with all kinds of paperwork.You should ask your clients to start investing early and invest regularly. resale¶s and referrals to other prospective clients. Be sure that the client gives you his commitment to invest. Commit them to invest The best investment advice and investment plans are a waste unless they are backed by the commitment of the client to invest. This will help them to make more money because of the power of compounding of the rupee.

At the end of all remember the golden rule. Getting in touch with them when there is a lot of fluctuation in the market prices and advising them accordingly. Since you represent the interest of both the investor and the mutual fund you must regularly follow up with the mutual fund if your clients have experienced any service related problem. Continuously assessing any change in their personal circumstances and recommending a change in investment plan if need be. Be completely honest and straightforward.Some of the personalized services that you can provide are as follows Making periodic calls to see if your clients need any help with their investments. Focus on helping them achieve their financial goals and see the results. Keeping your clients updated of the new schemes and products. which could be useful for them. Be thoroughly prepared and knowledgeable. Page 41 of 68 . Treat every client as a special and important person.

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´ Thus. Definitions According to Clifford Woody ³Research comprises defining and redefining problems. It may be understood as Science of studying how research is done. Research in common parlance refers to a search for knowledge. Page 43 of 68 . Research Methodology is a strategy that guides a researcher in providing answers to research questions and for this research survey is being done.(3. ³Accuracy of the study depends on the systematic application of the method.´ The researcher has to decide the method to be used that helps him to get a desired direction in a systematic way.1) Meaning of Research Research Methodology is a way to systematically solve the research problem. formulating or hypothesis or suggested solutions collecting: organizing and evaluating data making deductions and reaching conclusions to determine whether they fit the formulating hypothesis. In fact research is an act of scientific investigation. Scientifically in it we study the various steps that generally adopted by a researcher in studying his research problem along with the logic behind them.

2) Steps of Research process The seven major steps Determine or define the problem or opportunity that is faced Specify what information is needed Identify the sources of the information.(3. Decide on the techniques for accruing the information Gather and process the information Analyze and interpret the meaning. Present the findings to the decision makers. Page 44 of 68 .

Profit & Loss Account. Primary data collection 2. Secondary data Collection Secondary Data Collection ± In my project I have taken secondary data for analysis it is through Website.3) Sampling DesignSampling is the selection of some part of aggregate or totality on the basis of which a judgment or inference about the aggregate or totality is made.(3. Sampling UnitThe sampling unit of my survey includes the Balance Sheet. Data CollectionData Collection was done in two ways they were1. Page 45 of 68 . Sampling MethodIn my survey. I have used Observation Method. Analysis and InterpretationData collected was compiled up and on the basis of percentage method depicted through bar diagrams Interpretation was done and recommendations was given. . Quarterly Results etc. Journals etc.

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00 382.00 2.49 2941.00 1025.00 575.00 Page 47 of 68 .59 0.51 8030.97 0.92 2765.30 3454.58 0.(4.01 0.74 0. in Millions) March2009 December2008 March2008 [4 Quarter] [3 Quarter] Sales Turnover Other Income Total Income Total Expenditure Operating Profit Interest Gross Profit Depreciation Tax ReportedPAT Equity Capital Extra Ordinary Items Adjusted Profit After Extra Ordinary Item Book Value EPS Dividend 8030.67 1974.21 2610.00 711.24 4209.00 123.1) Data Interpretation Quarterly Results First Quarterly Results (Rs.59 5419.06 0.08 3446.00 2.62 9180.98 1025.73 3456.73 112.08 0.25 6184.30 0.00 692.30 9125.62 3728.36 2564.00 8035.97 6414.29 1150.95 3850.75 692.74 0.73 0.00 711.00 [4 Quarter] 7636.88 1690.80 2.19 1090.69 0.70 393.

00 44.21 0.29 0.21 0.00 50.88 0. 2008 5.06 0.00 48.37 3.06 5.68 0.73 -8.96 3.00 December.Quarterly Results (in %) % Change over % Change over March.76 0.21 0.40 14.15 192. 2008 Sales Turnover Other Income Total Income Total Expenditure Operating Profit Interest Gross Profit Depreciation Tax ReportedPAT Equity Capital Extra Ordinary Items Adjusted Profit After Extra Ordinary Item Book Value EPS Dividend -0.00 Page 48 of 68 .61 -5.26 51.53 0.54 29.17 0.00 365.21 0.00 47.44 48.95 18.00 44.33 5.78 44.

00 91.811.65 1. From FY 2008 ± 2010 (In Millions) Balance Sheet (Rs.545.56 0.619.09 16.89 68.00 91.261.456.78 1.21 1.040.472.000.617.937.133.2) Balance Sheet Kotak Mahindra Bank Ltd.81 3.36 13.58 39.52 164.914.490.08 177.619.69 35.449.91 251.72 2. in millions) MarchLiabilities 2010 March2009 (12 Months) Share Capital Reserves & Surplus Net Worth (1) Secured Loans (2) Unsecured Loans (3) Total Liabilities(1+2+3) March2008 (12 Months) (12 Months) 3.997.27 59.69 35.410.46 110.357.53 50.(4.735.71 156.51 2.56 32.366.73 3.87 0.598.49 0.68 MarchAssets 2010 March2009 (12 Months) March2008 (12 Months) (12 Months) Fixed Assets Gross Block (-) Acc.236.07 2.25 51. (B) Investments (C) 4.324.101.34 254. Depreciation Net Block (A) Capital Work in Progress.606.192.65 Page 49 of 68 .446.31 3.00 2.419.102.055.

Inventories Sundry Debtors Cash And Bank Loans And Advances (i) Current Liab.455.31 31.31 32.00 0.00 11.68 Page 50 of 68 .843.43 161.601.44 107.94 0.617.959.545.123.68 193.70 182.24 129.00 0.11 31.106.406.Current Assets.10 21.573.269.58 116. Assets (i .67 12.757.37 0.00 251.00 254.08 177.536.16 0. Loans & Advs.494.883. & Provs. Expenses (E) Total (A+B+C+D+E) Assets 0.12 303.00 0.309.00 0.40 302.66 168.366.00 0.67 32.51 157.476.587.00 21. Current Liabilities Provisions (ii) Net Curr.02 189.ii) (D) Misc.54 21.

60 2.00 22.97 259.80 +0.48 4.038.465.00 0.046.97 +0.78 28.945.520.57 4.01 228.202.2010 % (12 months) Sales Other Income Total Income Raw Material Cost Excise Other Expenses Operating Profit Interest Name Gross Profit Depreciation Profit Bef.928.920.49 +0.677.499.55 3.22 2.01 - March . Tax Tax Net Profit Other Income Reported Profit Equity Dividend NonRecurring 32.20 508.77 0.54 5.17 +.472.00 15.966.02 347.11 11.85 +0.095.08 +0.10 1.47 -0.65 +0.29 15.76 0.85 +0.026.02 +0.00 0.63 -7.48 2. FROM YEAR 2008 TO 2010 (IN MILLION) Profit & Loss Accounts (Rs.80 13.99 +0.13 +0.09 +.04 +0.00 +0.315.39 +0.20 2.74 2.09 +0.00 33.00 5.59 1.408.579.00 - +0.98 140.36 +0.106.2008 % (12 months) +1.00 59.13 +0.44 -0.61 +1.01 +0.992.24 2.90 0.04 618.00 0.257.10 1.626.33 +0.26 -4.70 March .98 -10.343.44 13.04 +0.623.00 28.46 6.14 +0.(4.605.413.05 +0.40 -0. in millions) March .32 15.01 Page 51 of 68 .00 +0.2009 % (12 months) 28.69 695.33 258.939.08 +0.760.58 +0.77 420.02 +0.14 2.54 +0.84 1.00 +0.979.14 +0.758.29 +0.55 +0.3) PROFIT & LOSS ACCOUNT.

29 1.00 0.80 8.01 0 .07 2.62 0 .31 7.93 18.00 5.82 8.17 10.32 6.84 Page 52 of 68 .00 7.21 0.50 18.35 8.54 12.57 0 .33 0.35 March-2009 (12 months) 19.43 0 .06 10.37 March-200 (12 months) 14.82 13.40 4.00 7.(4.08 0.4) Ratios From Year 2008 to Year 2010 Ratios Profitability Ratios % March-2010 (12 months) Operating Profit Margin Gross Profit Margin Net Profit Margin Turnover Ratios Inventory Turnover Ratio Debtor Turnover Ratio Fixed Asset Turnover Ratio Solvency Ratio Current Ratio Debt Equity Ratio Interest Covering Ratio Performance Ratio % Return On Investment Return On Networth Dividend Yield 2.91 0 .13 10.29 0 .00 0.85 11.72 8.00 0.50 4.

charts and explanations of each ratio. The operating margin ratio is included in the financial statement ratio analysis spreadsheets highlighted in the left column.85 2010 2009 19.54 0 5 10 15 20 Page 53 of 68 . The operating margin ratio determines whether the fixed costs are too high for the production volume. calculation. definitions. Operating Profit Margin 13.93 2008 14. or EBIT to sales ratio. which provide formulas.OPERATING MARGIN RATIO Formula to calculate operating margin: Operating Margin = (earnings before interest and taxes) sales Operating margin definition and explanation: The operating margin is also referred to as operating profit margin.


Indicates what the company's pricing policy is and what the true mark-up margins are. Revenue - Cost of Goods Sold Revenue

Gross Profit Margin Analysis: The gross margin is not an exact estimate of the company's pricing strategy but it does give a good indication of financial health. Without an adequate gross margin, a company will be unable to pay its operating and other expenses and build for the future.

Gross Profit Margin 2010 11.72








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First some basic profitability equations: Net Profit Net Profit Margin = Turnover Remember: Net Profit = Gross Profit - Expenses Why do we have two versions of this ratio - one for net profit and the other for profit before interest and taxation? Well, in some cases, you will find they use the term net profit and in other cases, especially published accounts, they use profit before interest and taxation. * 100 = Turnover Profit before Interest and Taxation * 100

Net Profit Margin











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Fixed assets turnover ratio establishes a relationship between net sales and net fixed assets. This ratio indicates how well the fixed assets are being utilised.

Fixed Assets Turnover Ratio = Net Sales/Net Fixed Assets In case Net Sales are not given in the question cost of goods sold may also be used in place of net sales. Net fixed assets are considered cost less depreciation. This ratio expresses the number to times the fixed assets are being turned over in a stated period. It measures the efficiency with which fixed assets are employed. A high ratio means a high rate of efficiency of utilization of fixed asset and low ratio means improper use of the assets.

Fixed Asset Turnover Ratio 2010 7.08










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liabilities. this ratio is less than 2:1. Where current assets are those assets which are either in the form of cash or easily convertible into cash within a year. This ratio measures the ability of the business to pay its current liabilities.4 0. Current Ratio = Current Assets/Current Liabilities Current Assets include Cash in hand. In case. Current Liabilities include Sundry Creditors. the short-term financial position is not supposed to be very sound and in case.e. Bills Receivable. Bills Payable. current assets must be twice the current liabilities. it indicates idleness of working capital. This ratio is also called working capital ratio. Bank Overdraft. Sundry Debtors. Accrued Incomes etc. Cash at Bank.CURRENT RATIO Current ratio is calculated in order to work out firm¶s ability to pay off its short-term liabilities. Current Ratio 0. Outstanding Expenses etc. This ratio explains the relationship between current assets and current liabilities of a business. Similarly.4 2008 0. it is more than 2:1. which are to be paid within an accounting year. Stock of Goods. Prepaid Expenses.2 0. Objective and Significance: Current ratio shows the short-term financial position of the business.5 2010 2009 0. Short-term Investments.6 Page 57 of 68 . are called current liabilities. The ideal current ratio is suppose to be 2:1 i.32 0 0.

The normally acceptable debt-equity ratio is 2:1. Debt Equity Ratio = Debt/Equity Where Debt (long term loans) include Debentures. Page 58 of 68 . Public Deposits.01 2009 4.62 0 2 4 6 8 This ratio is a measure of owner¶s stock in the business. Loan from financial institution etc. Proprietors are always keen to have more funds from borrowings because: (i) (ii) Their stake in the business is reduced and subsequently their Interest on loans or borrowings is a deductible expenditure while risk too computing taxable profits.57 2008 6.DEBT-EQUITY RATIO Debt equity ratio shows the relationship between long-term debts and shareholders funds¶. Dividend on shares is not so allowed by Income Tax Authorities. It is also known as µExternal-Internal¶ equity ratio. Bank Loan. Mortgage Loan. Equity (Shareholders¶ Funds) = Share Capital (Equity + Preference) + Reserves and Surplus ± Fictitious Assets Debt Equity Ratio 2010 4.

INTEREST COVERAGE RATIO A ratio used to determine how easily a company can pay interest on outstanding debt.6 Page 59 of 68 .2 0. its ability to meet interest expenses may be questionable. The interest coverage ratio is calculated by dividing a company's earnings before interest and taxes (EBIT) of one period by the company's interest expenses of the same period: INTEREST COVERAGE RATIO = EBIT INTEREST EXPENSES The lower the ratio. the more the company is burdened by debt expense. An interest coverage ratio below 1 indicates the company is not generating sufficient revenues to satisfy interest expenses Interest Covering Ratio 0.29 2010 2009 0.4 0. When a company's interest coverage ratio is 1.43 2008 0.33 0 0.5 or lower.

Return on Investment is a key ratios for investors.31 2009 2.8 2008 1.RETURN ON INVESTMENT Formula to calculate return on investment: RETURN ON INVESTMENT RATIO = NET PROFITS BEFORE TAX SHAREHOLDERS EQUITY The return on investment ratio provides a standard return on investor's equity. R tur On Investment 2010 2.82 0 1 2 3 Page 60 of 68 . The return on investment ratio is also referred to as return on investment or ROI.

Return on Net Worth indicates how well a company leverages the investment in it. This ratio measures return relative to investment in the company. this is the 'final measure' of profitability to evaluate overall return. Put another way. Return On Networth 7.5 0 5 10 Page 61 of 68 . May appear higher for startups and sole proprietorships due to owner compensation draws accounted as net profit.17 2008 8.06 2010 2009 8.RETURN ON NET WORTH Net After Tax Profit divided by Net Worth.

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82 crore including dividend distribution tax (previous year Rs.13%. 27. The life insurance subsidiary.75 per share). 30. Kotak Mahindra Capital Company Limited.24 crore. car finance. (5. 465. outstanding Unsecured. Redeemable Non-Convertible.70 crore and outstanding Unsecured. Redeemable Debt Capital Instruments Upper Tier II stood at Rs. 364. The CAR under Basel II was 20. At a consolidated level the CAR is 22. The CAR as at 31st March 2010 was 19. asset management and life insurance.75 per share (previous year Rs. entailing a payout of Rs. 0.01%. The dividend would be paid to all the shareholders. The key business segments where the subsidiaries operate include investment banking. the Directors recommend a dividend of Rs. Kotak Mahindra Old Mutual Life Insurance Limited has controlled growth in premium and branch infrastructure and has recorded profit for the first time.86% with Tier I being 16. SUBSIDIARIES Kotak Mahindra along with its subsidiaries offers complete financial solutions to its customers.01% with Tier I being 16. Subordinated Debt Bonds was Rs. CAPITAL The Bank has a high Capital Adequacy Ratio (CAR). 0.1) FINDINGS OF THE STUDY DIVIDEND Keeping in mind the overall performance and the outlook for Kotak Mahindra . Non-Convertible. As on 31st March 2010.(5.27 crore). whose names appear on the Register of Members/Benefcial Holders list on the Book Closure date. Kotak Mahindra has not issued any Capital under Tier II.2) Suggestion Page 63 of 68 . stock broking. During the year. Kotak Mahindra Prime Limited posted a good financial performance.84% under Basel I.

There has a lot to be recommended. The main reason is that. It should provide this facility by tie up with the other Insurance organizations as well. This will definitely add to the goodwill & profit for the bank. the entire customers do not want Insurance of only one company.The study has provided with the useful data from the respondents. They should have choice while selecting a suitable Insurance plans. Following are the recommendations: y There is a need for better promotion for the investment products & services. As the bank provides the Insurance facility to its customers. The bank should advertise its products through television because it will reach to the masses. y More returns should be provided on Insurance plans. Page 64 of 68 .

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Page 66 of 68 . Players in the Insurance Sector has expanded the product segment to meet the different level of the requirement of the customers. that increases the confidence level of the customers to the private players.(6. The entry of more Pvt. It has brought about greater choice to the customers. we come at the conclusion that y There are very tough competitions among the private insurance companies on the level of new trend of advertising to lull a major part of Customers. y y Kotak is not left behind in the present race of advertisement. y Kotak has vast market and very firm grip on its traditional customers and monopoly of life insurance products IRDA is also playing very comprehensive role by regulating norms mandating to private players in this sector. Companies associated with multinational in the Insurance Sector to give befitting competition to the established behemoth Kotak in private sector.1) Conclusion After overhauling the all situation that boosted a number of Pvt.

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M.(7.indiainfoline.1) Books Money outlook.corpbank. Shukla Saklecha (7.2) Websites www. Shukla Saklecha S.com Page 68 of 68 . January edition 2010 Marketing management Principals of life Assurance Financial Management Corporate Accounting Cost Accounting Income Tax : : : : : : kotler & keller CI-23 S.insuranceworld.com www.kotaklife.com www.com www.M.about.com www.