1.

1 INTRODUCTION:
In financial accounting, a cash flow statement, also known as statement of cash flows or

funds flow statement, is a financial statement that shows how changes in balance sheet

accounts and income affect cash and cash equivalents, and breaks the analysis down to

operating, investing, and financing activities. Essentially, the cash flow statement is.

concerned with the flow of cash in and cash out of the business.

The statement captures both the current operating results and the accompanying changes

in the sheets an analytical tool, the statement of cash flows is useful in finding the short-

term viability of a company, particularly its ability to pay bills. International Accounting

Standard 7 (IAS 7) is the International Accounting Standard that deals with cash flow

statements.

People and groups interested in cash flow statements include:

 Accounting personnel, who need to know whether the organisation will be able to cover .

payroll and other immediate expenses.

 Potential lenders or creditors, who want a clear picture of a company's ability to repay.

 Potential investors, who need to judge whether the company is financially sound.
 Potential employees or contractors, who need to know whether the company will

be able to afford compensation.

 Shareholders of the business.

PURPOS

The cash flow statement was previously known as the flow of funds statement. The cash

flow statement reflects a firm's liquidity.

The balance sheet is a snapshot of a firm's financial resources and obligations at a single

point in time, and the income statement summarises a firm's financial transactions over an

interval of time. These two financial statements reflect the accrual basis accounting used

by firms to match revenues with the expenses associated with generating those revenues.

The cash flow statement includes only inflows and outflows of cash and cash equivalents;

it excludes transactions that do not directly affect cash receipts and payments. These non-

cash transactions include depreciation or write-offs on bad debts or credit losses to name

a few.

The cash flow statement is a cash basis report on three types of financial activities: working

activities, investing activities, and financing activities. Non-cash activities are usually

reported in footnotes.

The cash flow statement is intended to provide information on a firm's liquidity and

solvency and its ability to change cash flows in future circumstances.

 Provide other information for evaluating changes in assets, liabilities, and equity.

 Improve the comparability of different firms' operating performance by dropping the

Effects of different accounting methods.

 Indicate the amount, timing, and probability of future cash flow.

1.2 NEED OF THE STUDY:

Many business owners disregard the importance of cash flow statements because they

unwittingly believe that their current financial standing can be construed from other

financial reports and projections. Unfortunately, however, a cash flow statement is

necessary to adequately assess the incoming and outgoing flow of cash and other

resources in a business.

Not only will a business owner with a cash flow system be more aware of his or her

financial standing, but it will also help investors to make educated decisions on future

investments. A business with regular and reliable cash flow statements shows more

economic solvency and is more attractive to investors.

A cash flow statement documents the incoming and outgoing cash in plain terms. Future

sales and sales made for credit (unless they have been paid off) are not included in the

cash flow statement, and most of the data will come from core operations. Payables and

receivables should be expressly defined, as should depreciation of product value and

inventory that has not yet been moved.

1.3 OBJECTIVES OF THE STUDY:

  To know the flow of cash in the organisation KOTAK MAHINDRA LTD
 To access the efficiency with sources and uses of cash were made by the co ordinance.
 from the year 2019-2022.
 To identify the changes in the elements of focus and uses of working capital in between
 above mentioned years.
 To improve the financial performance of the company.
 The main objective of the cash flow statement is that the cash flows from operating.
 activities, investing activities and financing activities.
 It summarises this statement in balance sheet and income affect cash and cash.
 equivalents.
 It shows the cash earning ability of the firm.
 It indicates different sources from which cash been collected and various purposes for
 which cash has been utilised during the year.
 It classifies cash flows during the period from operating, investing and financing activities.

1.4 SCOPE OF THE STUDY:

Since the study of a micro level of all cement industries in Andhra Pradesh does not

possible, so the study is restricted to KOTAK MAHINDRA LTD. A study that involves an

examination of long term as well as short term sources that a company taps in order to

meet its requirements of finance The scope of the study is confined to the sources that

KOTAK MAHINDRA LTD tapped over the years under study i.e. 2019-2022

1.5 RESEARCH METHODOLOGY:

The following are the main sources of date used for this study which are Collected and

compiled from published and unpublished sources of the Company data. The published
sources are as follows.

 Management information system published by KOTAK MAHINDRA LTD

 Status Report on KOTAK MAHINDRA LTD.
 Journals, books and other published reports.

The present study is based on primary and secondary sources of data collection.

 Primary data:

The primary purpose of the statement of cash flows is to provide information about cash

receipts, cash payments, and the net change in cash resulting from the operating,

investing, and financing activities of a company during the period. It was directly collected

by observations, Interviews questionnaire.

 Secondary data:

The secondary data was collected from the literate available in libraries and Research

studies and annual reports are related to the present study. It includes published and

unpublished literature like books, reports and generally articles of the KOTAK MAHINDRA

LTD.

The study of Trading A/C, Profit and Loss A/C and Balance sheet of HDFC BANK (2019-

2022)

LIMITATIONS
The limitations of present study are as follows:

 Cash Flow Statement actually fails to present the net income of a firm for a period since it does
not consider non-cash items which can easily be ascertained by an Income Statement.
 Cash flow statement does not help to assess liquidity or solvency position of a firm.
 Cash Flow Statement is neither a substitute of Funds Flow Statement nor a substitute of income
Statement.
 The provisions which are made by the Companies Act is in conformity with Profit and Loss
Account and Balance Sheet are not in conformity with Cash Flow Statement which is prepared as
per AS 3.
 Does not Conform with the Companies Act.
 Cash Flow Statement is prepared on the basis of historical cost and, as such, it does not help to
know the future/projected cash flows. Inter-Industry Comparison not Possible.
 CHAPTER – 2
REVIEW OF LITERATURE

2.1 THEORETICAL BACKGROUND

Cash flow is calculated by making certain adjustments to net income by adding or subtracting

differences in revenue, expenses and credit transactions (appearing on the balance sheet and

income statement) resulting from transactions that occur from one period to the next. These

adjustments are made because non-cash items are calculated into net income (income

G statement) and total assets and liabilities (balance sheet). So, because not all transactions

involve actual cash items, many items have to be re-evaluated when calculating cash flow from

operations.

For example, depreciation is not really a cash expense; it is an amount that is deducted from the

total value of an asset that has previously been accounted for. That is why it is added back into net.

sales for calculating cash flow. The only time income from an asset is accounted for in CFS.

calculations are when the asset is sold.

Changes in accounts receivable on the balance sheet from one accounting period to the next must

also be reflected in cash flow. If accounts receivable decreases, this implies that more cash has.

entered the company from customers paying off their credit accounts the amount by which AR has

decreased is then added to net sales. If accounts receivable increase from one accounting period

to the next, the amount of the increase must be deducted from net sales because, although the

amounts represented in AR are revenue, they are not cash.

An increase in inventory, on the other hand, signals that a company has spent more money to

purchase more raw materials. If the inventory was paid with cash, the increase in the value of

inventory is deducted from net sales. A decrease in inventory would be added to net sales. If

inventory was purchased on credit, an increase in accounts payable would occur on the balance

sheet, and the amount of the increase from one year to the other would be added to net sales. The

same logic holds true for taxes payable, salaries payable and prepaid insurance . If something

has been paid off, then the difference in the value owed from one year to the next has to be

subtracted from net income. If there is an amount that is still owed, then any differences will have

to be added to net earnings. (For more insight, see Operating Cash Flow: Better Than Net Income?)
Investing

Changes in equipment, assets or investments relate to cash from investing. Usually cash changes

from investing are a "cash out" item, because cash is used to buy new equipment, buildings or

short-term assets such as marketable securities. However, when a company divests of an asset,

the transaction is considered "cash in" for calculating cash from investing.

Financing

Changes in debt, loans or dividend share accounted for in cash from financing. Changes in cash

from financing are "cash in" when capital is raised, and they're "cash out" when dividends are paid.

Thus, if a company issues a bond to the public, the company receives cash financing; however,

when interest is paid to bondholders, the company is reducing its cash.

Difference between Cash Flow Statement andIncome Statement

Cash Flow statement Income statement

1.It is disclosing the reason for change in 1.The Statement narrates the item of cost and

working capital where from the working revenue to arrive at the figures of profit and

capital cash has been applied . loss earned /incurred during a particular period

of time .
2. Income Statement helps the preparation of 2 . Cash flow statement doesn’t help preparation
of income statement .
cash flow statement in as much as on source

of cash , cash from operation is found out from

the income statement .

3. Cash raised are matched with cash used no 3. Expenses are matched with income in order to
distinction is made between capital and revenue find out the result of operation , only revenue
items . items are considered .

Difference between Cash Flow Statement and Position Statement

 Cash Flow Statement Position Statement

1. It is a Statement changes in financial 1. It is statement of financial position.

position.

2. It shows the amount of changes during the 2. It present the amount of assets &

particular period of time. Liabilities at a particular point of

time .

3. It doesn't analyse the change in current 3. It shows all the accounting liabilities

asset and current liability. Whether current or non –

current .

4. It is a analytical statement analysing form 4. It is not a analytical statement hence

not

where they have been used, hence more that much useful for decision making as
the

useful. Cash flow statement .

Importance of cash flow statement:

The information which is provided by cash flow statement is neither available in the balance sheet

nor in the income statement and hence its important. The changes which have taken place in

between two accounting dates are highlighted by cash flow statement. A lay man cannot grasp the

underlying significance of achievements and progress of the company simply by a personal of the

balance sheet and income statement of different years. The comparative and analytical study

presented by the statement giving the details of sources and uses of cash during a given period of

immense help to the users of information. It is very useful tool in analytical kit of the management

also, besides the outsiders, in order to have 'at a glance' appraisal of the financial and operating

performance of a company. Since the statement shows the extent to which the working capital has

been effectively put to use, the management's task of taking policy decision regarding investment.

dividends etc, is great facilitated. The projected cash flow statement can also be prepared and

then budgetary control and capital expenditure control can be exercised to the benefit of the entire

organisation.
Uses of cash flow statement:

Cash flow statement of a company is of great value to management share holders, creditors,

bankers, money lending institutions etc.,

➤ Informative value: - The financial consequence of business operation are clearly explained in

detail by a cash flow statement some of the problems which crop up in the minds of investors are

well solved by a simple perusal of this statement for e.g.,

 Where have the profit gone.

 Why does an imbalance exist between liquidity position and profitability position of
enterprise?

Forecasting value: - A projected cash flow statement can be prepared and resources can be

properly allocated after an analysis of the present state of affairs. The optimal utilisation of

available cash in necessary for the overall growth of the enterprise. The cash flow statement

prepared in advance given a clear direction to the management in this raged.

➤ Testing value: -Whether the working capital has effectively been used or not by the management

can well be tested by cash flow statements, whether working capital has been maintained at

proper level, and whether it is adequate or inadequate can be known by a study of the statement.

The management is warned against the injudicious uses of cash.

Decision-making value: - Since over all credit worthiness of the enterprise is known, creditors and

money lenders can decide as to whether they have to provide loans to company or not. The sources

of raising cash and their application help the shareholders to decide whether the management of

the business is an enlightened or not regarding managing cash. Mismanagement of cash may be

prevented. The management can be decide about the future financing policies and capital

expenditure programmers.

The balance sheet, income statement, and cash flow statement are the three generally accepted
financial statements used by most businesses for financial reporting. All three statements are

prepared from the same accounting data, but each statement serves its own purpose. The purpose

of the cash flow statement is to report the sources and uses of cash during the reporting period.

Structure of the Cash Flow Statement

The most commonly used format for the cash flow statement is broken down into three sections:

cash flows from operating activities, cash flows from investing activities, and cash flows from

financing activities.

Cash flows from operating activities are related to your principal line of business and include the

following:

 Cash receipts from sales or for the performance of services.

 Payroll and other payments to employees .
 Payments to suppliers and contractors.

 Rent payments
 Payments for utilities
 Tax payments

Investing activities include capital expenditures disbursements that are not charged to expense but

rather are capitalised as assets on the balance sheet. Investing activities also include investments

(other than cash equivalents as indicated below) that are not part of your normal line of business.

These cash flows could include:

 Purchases of property, plant and equipment

 Proceeds from the sale of property, plant and equipment

  Purchases of stock or other securities (other than cash equivalents.

 Proceeds from the sale or redemption of investments

Financing activities include cash flows relating to the business's debt or equity financing:

 Proceeds from loans, notes, and other debt instruments.

 Instalment payments on loans or other repayment of debts.

 Cash received from the issuance of stock or equity in the business.

 Dividend payments, purchases of treasury stock, or returns of capital.

Cash for purposes of the cash flow statement normally includes cash and cash equivalents. Cash

equivalents are short-term, temporary investments that can be readily converted into cash, such as

marketable securities, short-term certificates of deposit, treasury bills, and commercial paper. The

cash flow statement shows the opening balance in cash and cash equivalents for the reporting

period, the net cash provided by or used in each one of the categories (operating, investing, and

financing activities), the net increase or decrease in cash and cash equivalents for the period, and

the ending balance. There are two methods for preparing the cash flow statement the direct

method and the indirect method. Both methods yield the same result, but different procedures are

used to arrive at the cash flows.

Direct Method

Under the direct method, you are basically analysing your cash and bank accounts to identify cash

flows during the period. You could use a detailed general ledger report showing all the entries to the

cash and bank accounts, or you could use the cash receipts and disbursements journals. You

would then determine the offsetting entry for each cash entry in order to determine where each

cash movement should be reported on the cash flow statement.

Another way to determine cash flows under the direct method is to prepare a worksheet for each
major line item, and eliminate the effects of accrual basis accounting in order to arrive at the net

cash effect for that particular line item for the period. Some examples for the operating activities

section include:

Cash receipts from customers:

 Net sales per the income statement.

 Plus beginning balance in accounts receivable.
 Minus ending balance in accounts receivable.
 Equals cash receipts from customers.

Cash payments for inventory:

 Ending inventory
 Minus beginning inventory
 Plus beginning balance in accounts payable to vendors

 Minus ending balance in accounts payable to vendors

 Equals cash payments for inventory

Cash paid to employees:

 Salaries and wages per the income statement.

 Plus beginning balance in salaries and wages payable.
 Minus ending balance in salaries and wages payable.
 Equals cash paid to employees.

Cash paid for operating expenses:

 Operating expenses per the income statement.

 Minus depreciation expenses.
 Plus increase or minus decrease in prepaid expenses.
 Plus decrease or minus increase in accrued expenses.
 Equals cash paid for operating expenses.

Taxes paid:
  Tax expense per the income statement
 Plus beginning balance in taxes payable
 Minus ending balance in taxes payable
 Equals taxes paid

Interest paid:

 Interest expense per the income statement.

 Plus beginning balance in interest payable.
 Minus ending balance in interest payable.
 Equals interest paid.

Under the direct method, for this example, you would then report the following in the cash flows

from operating activities section of the cash flow statement:

 Cash receipts from customers.

 Cash payments for inventory
 Cash paid to employees.
 Cash paid for operating expenses
 Taxes paid
 Interest paid.
 Equals net cash provided by (used in) operating activities

Similar types of calculations can be made of the balance sheet accounts to eliminate the effects of

accrual accounting and determine the cash flows to be reported in the investing activities and

financing activities sections of the cash flow statement.

Indirect Method

In preparing the cash flows from operating activities section under the indirect method, you start

with net income per the income statement, reverse out entries to income and expense accounts

that do not involve a cash movement, and show the change in net working capital. Entries that

affect net income but do not represent cash flows could include income you have earned but not

yet received, amortisation of prepaid expenses, accrued expenses, and depreciation or

amortisation. Under this method you are basically analysing your income and expense accounts,

and working capital. The following is an example of how the indirect method would be presented

on the cash flow statement:

 Net income per the income statement

 Minus entries to income accounts that do not represent cash flows
 Plus entries to expense accounts that do not represent cash flows
 Equals cash flows before movements in working capital
 Plus or minus the change in working capital, as follows:

An increase in current assets (excluding cash and cash equivalents) would be shown as a negative

figure because cash was spent or converted into other current assets, thereby reducing the cash

balance.

A decrease in current assets would be shown as a positive figure, because other current assets

were converted into cash.

An increase in current liabilities (excluding short-term debt which would be reported in the

financing activities section) would be shown as a positive figure since more liabilities mean that

less cash was spent.

A decrease in current liabilities would be shown as a negative figure, because cash was spent in

order to reduce liabilities.

The net effect of the above would then be reported as cash provided by (used in) operating

activities.

The cash flows from investing activities and financing activities would be presented the same way

as under the direct method .

2.2 REVIEW OF LITERATURE
ARTICLES

ARTICLE:1

Title: Importance of the Cash Flows Statement

Journal: Journal of Economic Literature classification published in Jan 29, 2018 by

Orioamit.

Authors: Jarrah, Kulkarni, & O'Connor

Abstract:

Collected actual cash flow data in form of monthly account summary reports for various projects
under Texas Department of Transportation. Projects were further classified in different cost ranges.

Based on the scatter chart of payments against time for different projects in a given category, a

fourth degree polynomial regression analysis was used to obtain the cash flow curves that turned

out to be characteristic 'S' shaped for most of the projects. Although statistical significance could

not be proved due to availability of limited data, a feasible approach for cash flow prediction was

established. Since the data was related to payments to the contractor, only the cash inflow curves

could be established. Extending the same methodology to data for contractor's cash outflows,

there appears to be a possibility of working out net working capital gap.

Keywords: Cash, Cash equivalents, Operating Activities, Investing Activities, Financing

Activities

ARTICLE: 2

Title: Terms in the Cash Flows Statement

Journal: Journal of Finance, 2004 Vol. 59, issue 4, 1777-1804.

Authors: Gorge

Abstract:

Suggested a set of new measurements and indicators in line with the 'earned value' measurements

and indicators for integration of both systems. Therefore, like the earned value

measurements such as Budgeted Cost of Work Scheduled (BCWS), Budgeted Cost of Work

Performed (BCWP) and the Actual Cost of Work Performed (ACWP) for working out the Cost.

Performance and Schedule Performance Indices (CPI and SPI); the new set of measurements and

indicators was based on the 'Price Value' and 'Invoice Value' of the contracted work. This could

therefore forecast the difference between price to be received by the contractor from client and the

cost to be expended by the contractor for the amount of work carried out at any point of time.
Hence the differential indicated expected margin based on project status.

Keywords: Cash, Cash equivalents, Operating Activities, Investing Activities, Financing Activities

ARTICLE: 3

Title: An Analysis of the Cash Flows Statement

Journal: The Quarterly Journal of Economy, Vol 112, issue 1, 1 February no, 2013, pages 169-215.

Authors: Maniar

Abstract:

A model for finding the Least Working Capital (LWC) which is the maximum cumulative negative

cash flow during a project was proposed and validated on the basis of a sample of Indian

infrastructure projects. It considered different cost parameters such as labour, material,

overheads, subcontracting charges, machinery, and equipment expenses, etc. Assuming uniform

rate of expenditure during contracting period the model using a multiple regression analysis on the

sample data estimated the LWC as the total of project expenses till the receipt of the first payment

from the client.

Cash is the most liquid asset, is of vital importance to daily operations of business firms. While the
proportion of corporate assets held in the form of cash is very small, often between 1 and 3

percent, its efficient management is crucial to the solvency of the business because in a very

important sense cash is the focal point of funds flows in a business.

Keywords: Cash, Cash equivalents, Operating Activities, Investing Activities, Financing Activities

ARTICLE: 4

Title: A Logical Approach To The Statement of Cash Flows

Journal: Zb.red. Ekon.fak. Rij.2008. Vol. 26. Sv.1 page 123-150.

Authors: Fred Petro, Farrell Gean,

Abstract:

Of the three financial statements in financial reporting, the Statement of Cash Flows (SCF) is

perhaps the most challenging. The most difficult aspect of the SCF is in developing an

understanding of how previous transactions are finalised in this document. That is, the SCF is very

much the culmination point for most all of financial accounting. A knowledge of how to prepare the

document or learning the mechanics is not highly complex. With the use of a basic worksheet and

matrix, (later presented), the preparation of the operating activities section, the most difficult of the

three areas included in the SCF, can be completed quite easily. That is, this section can be

completed, for the most part, without having full comprehension or understanding of how initial

transactions finally reach the SCF.

Keywords: Cash, Cash equivalents, Operating Activities, Investing Activities, Financing Activities

ARTICLE: 5

Title: Improvements of the cash-flow statement control function in financial reporting

Journal: IOSR, Journal of Business and Management, 2008.

Authors: MetkaDuhovnik

Abstract:

On the basis of deductive considerations applying professional judgment, the article focuses on

the additional value of accounting information that can be given to the users of financial

statements by a properly prepared statement of cash flows. It is based on the finding that the

professional literature is inconsistent in distinguishing liquidity and profitability information, and

consequently also in distinguishing between the ratios calculated on that basis. It therefore

stimulates an improvement in the quality of accounting information with a direct statement of cash

flows, based on tracing instead of calculating the actual cash flow. On the basis of financial

statements, including a direct statement of cash flows, the ratio analysis of financial statements

should be approached from both aspects of profitability and cash return. The cash flow ratios

would serve as a control mechanism over the assumptions used when preparing the balance sheet

and income statement within the chosen financial reporting framework.

Keywords : Cash, Cash equivalents, Operating Activities, Investing Activities, Financing Activities

ARTICLE: 6

TITLE: A Study on Cash Flow Statement Analysis with special reference to jet airways

Journal: International Journal of Management, IT & Engineering Vol. 7 Issue

11 November 2020, ISSN: 2249-0558 Impact Factor: 7.119

Author : B. Padma Sri

ABSTRACT:

In the developing world there are many firms which has been opened but there are only few firms

which is able to withstand. Few firms has more assets and less cash and vice versa (i.e, the working

capital will be in a good position) but they will not be able to pay the tax, repay the depth and so on,

due to fact that the cash at hands or liquid assets will not be available for that firm. So, to avoid this

situation the cash flow system is introduced which gives the idea of how to use the working capital

in such a way so that the firm will not meet with the inadequacy of the cash. Based on the cash flow

statement a firm can forecast it's profit for the forth coming periods (days, months and next year).

This research paper concludes that the cash flow statement is not similar to the income statement

but it can be used as a source for computing the cash flow statement.

KEYWORDS: cash flow, liquid assets, forecasting the profit.

ARTICLE: 7

TITLE:"A Comparative Study on Cash Flow Statements of Tata Chemicals Ltd. and Pidilite Chemicals
Ltd."

JOURNALS: Published in parapet Indian Journal of Research published in 2013

AUTHOR: Kalpesh B. GELDA

ABSTRACT:

A cash flow statement is required as part of a complete set of financial statements prepared in

conformity with Indian Accounting Standards. AS-3 lays down a formal structure for the cash flow

statement. Cash flows should be classified under the following three standard headings:

"Operating activities", "Investing activities", and "Financing activities". The classification of cash

flows among operating, investing and financing activities is essential to the analysis of cash flow

data. Net cash flow (the change in cash and equivalents during the period) has little informational

content by itself; it is the classification and individual components that are informative. Although

the classification of cash flows into the three main categories is important, it should be mentioned

that classification guidelines are arbitrary.

Key Words: Cash, Cash equivalents, Operating Activities, Investing Activities, Financing Activities
ARTICLE: 8

TITLE: "Cash Flow Statement of State Bank of India and KOTAK MAHINDRA LTD: A Comparative
Study"

JOURNALS: Published in Paripex year 2018 - Indian Journal of Research

AUTHOR: Dr. Bhavsinh M. Dodiya

ABSTRACT:

From the financial year 2004-05, it has become mandatory for all the Indian companies to present

Cash Flow Statement in their Annual Reports. Institute of Chartered Accounts of India (ICAI) has

issued Accounting Standard-3 (AS-3) for the cash flow statement. According to this, all the cash

transactions of the company are divided in three activities i.e. Operating, Investing and Financing

activities. Such classification helps the investors and other stakeholders in analysing the cash flow

data. In this paper, a comparative study has been undertaken between two banks: State Bank of

India (a public sector bank) and KOTAK MAHINDRA LTD (a private sector bank).

Key Words: Cash, Cash equivalents, Operating Activities, Investing Activities, Financing Activities
ARTICLE: 9

TITLE: The ethics of creating accounting

JOURNALS: Published in Paripex 2013 - Indian Journal of Research

AUTHOR: John Blake, Jack Dowads, OrioAmat

ABSTRACT:

The term creative accounting can be defined in number of ways. Initially we will offer the definition

a process whereby accountants use their knowledge of accounting rules no manipulates the

figures reported the accounts of business. To investigate the ethical issue raised by creative

accounting we will explore some definitions of creative accounting, Report on surveys of auditors

perceptions of creative accounting in the Uk, Spain and New Zealand.

ARTICLE: 10

TITLE: Accounting: Cash Flow Statement

JOURNAL: Business and Management published in 2018

AUTHOR: Aghdas Jafari Motlagh

ABSTRACT:

A cash flow statement is prepared by an entity; it is one of the most important statements. It shows.

cash receipts from major sources and cash payments for major uses during a period. It may be

prepared at quarterly intervals but at least at yearly intervals. It provides useful information about

an entity's activities in generating cash from operations. It informs about programme to repay

debts, distribute dividends or reinvest to maintain or expand its operating capacity. It gives also

information about its financing activities, both debt and equity, and about its investment in fixed

assets or current assets other than cash. In other words, a cash flow statement lists down various

items and their respective magnitude which bring about changes in the cash balance between two

balance sheet dates..

 CHAPTER – 3
INDUSTRIAL PROFILE
&
COMPANY PROFILE
A bank is a financial institution that accepts deposits and channels those deposits into
lending activities. Banks primarily provide financial services to customers while enriching
investors. Government restrictions on financial activities by banks vary over time and
location. Banks are important players in financial markets and offer services such as
investment funds and loans. In some countries such as Germany, banks have historically
owned major stakes in industrial corporations while in other countries such as the United
States banks are prohibited from owning non-financial companies. In Japan, banks are
usually the nexus of a cross-share holding entity known as the keiretsu. In France,
Ban assurance is prevalent, as most banks offer insurance services (and now real estate
services) to their clients.

Introduction
India's banking sector is constantly growing. Since the turn of the century, there has been a
noticeable upsurge in transactions through ATMs, and also internet and mobile banking.
Following the passing of the Banking Laws (Amendment) Bill by the Indian Parliament in
2019, the landscape of the banking industry began to change. The bill allows the Reserve
Bank of India (RBI) to make final guidelines on issuing new licenses, which could lead to a
bigger number of banks in the country. Some banks have already received licences from
the government, and the RBI's new norms will provide incentives to banks to spot bad loans
and take requisite action to keep rogue borrowers in check.

Over the next decade, the banking sector is projected to create up to two million new jobs,
driven by the efforts of the RBI and the Government of India to integrate financial services
into rural areas. Also, the traditional way of operations will slowly give way to modern
technology.
Market size Total banking assets in India touched US$ 1.8 trillion in FY18 and are
anticipated to cross US$ 28.5 trillion in FY25.
Bank deposits have grown at a compound annual growth rate (CAGR) of 21.2 per cent over
FY06-18. Total deposits in FY18 were US$ 1,274.3 billion.
Total banking sector credit is anticipated to grow at a CAGR of 19.1 per cent (in terms of
INR) to reach US$ 2.4 trillion by 2020.
In FY19, private sector lenders witnessed discern-able growth in credit cards and personal
loan businesses. ICICI Bank witnessed 191.6 per cent growth in personal loan
disbursement in FY19, as per a report by Embay Global Financial Services. Axis Bank's
personal loan business also rose 49.8 per cent and its credit card business expanded by
31.1 per cent.
Investments
Bengaluru-based software services exporter Emphasis Ltd has bagged a five-year contract
from Punjab National Bank (PNB) to set up the bank's contact centres in mangalore and
Noida (UP). Emphasis will provide support for all banking products and services, including
deposits operations, lending services, banking processes, internet banking, and account
and card-related services. The company will also offer services in multiple languages.
Micro-finance companies have committed to setting up at least 30 million bank accounts
within a year through tie-ups with banks, as part of the Indian government's financial
inclusion plan. The commitment was made at a meeting of representatives of 25 large
micro-finance companies and banks and government representatives, which included
financial services secretary Mr GS Sandhu.

Export-Import Bank of India (EXIM Bank) will increase its focus on supporting project
exports from India to South Asia, Africa and Latin America, as per Mr Yaduvendra Mathur,
Chairman and MD, EXIM Bank. The bank has moved up the value chain by supporting
project exports so that India earns foreign exchange. In 2019-18, EXIM Bank lent support to
85 project export contracts worth Rs 24,255 crore (US$ 3.96 billion) secured by 47
companies in 23 countries.
Government Initiatives
The RBI has given banks greater flexibility to refinance current long-gestation project loans
worth Rs 1,000 crore (US$ 173.42 million) and more, and has allowed partial buyout of
such loans by other financial institutions as standard practice. The earlier stipulation was
that buyers should purchase at least 50 per cent of the loan from the existing banks. Now,
they get as low as 25 per cent of the loan value and the loan will still be treated as
'standard'.
The RBI has also relaxed norms for mortgage guarantee companies (MGC)
enabling these firms to use contingency reserves to cover for the losses suffered by the
mortgage guarantee holders, without the approval of the apex bank. However, such a
measure can only be initiated if there is no single option left to recoup the losses.
SBI is planning to launch a contact-less or tap-and-go card facility to make payments in
India. Contact-less payment is a technology that has been adopted in several countries,
including Australia, Canada and the UK, where customers can simply tap or wave their
card over a reader at a point-of-sale terminal, which reads the card and allows
transactions.
SBI and its five associate banks also plan to empower account holders at the bottom of the
social pyramid with a customer call facility. The proposed facility will help customers get an
update on available balance, last five transactions and cheque book request on their
mobile phones.
Road Ahead
India is yet to tap into the potential of mobile banking and digital financial services. Forty-
seven per cent of the populace have bank accounts, of which half lie dormant due to
reliance on cash transactions, as per a report. Still, the industry holds a lot of promise
India's banking sector could become the fifth largest banking sector in the world by 2021
and the third largest by 2025. These days, Indian banks are turning their focus to servicing
clients and enhancing their technology infrastructure, which can help improve customer
experience as well as give banks a competitive edge.
Exchange Rate Used: INR 1 = US$ 0.0173 as on October 28, 2020
The level of government regulation of the banking industry varies widely, with countries
such as Iceland, having relatively light regulation of the banking sector, and countries such
as China having a wide variety of regulations but no systematic process that can be
followed typical of a communist system.
The oldest bank still in existence is Monte dei Paschi di Siena, headquartered in Siena, Italy,
which has been operating continuously since 1972.

History
Origin of the word
The name bank derives from the Italian word banco "desk/bench", used during the
Renaissance by Jewish Florentine bankers, who used to make their transactions above a
desk covered by a green tablecloth. However, there are traces of banking activity even in
ancient times, which indicates that the word 'bank' might not necessarily come from the
word 'banco'.
In fact, the word traces its origins back to the Ancient Roman Empire, where moneylenders
would set up their stalls in the middle of enclosed courtyards called Marcella on a long
bench called a bancu, from which the words banco and bank are derived. As a
moneychanger, the merchant at the bancu did not so much invest money as merely
convert the foreign currency into the only legal tender in Rome-that of the Imperial Mint.
The earliest evidence of money-changing activity is depicted on a silver drachm coin from
ancient Hellenic colony Trapezus on the Black Sea, modern Trabzon, c. 350–325 BC,
presented in the British Museum in London. The coin shows a banker's table (trapeza)
laden with coins, a pun on the name of the city.
In fact, even today in Modern Greek the word Trapeza (Τράπεζα) means both a table and a
bank.
Traditional banking activities
Banks act as payment agents by conducting checking or current accounts for customers,
paying cheques drawn by customers on the bank, and collecting cheques deposited to
customers' current accounts. Banks also enable customer payments via other payment
methods such as telegraphic transfer, EFTPOS, and ATM.
Banks borrow money by accepting funds deposited on current accounts, by accepting term
deposits, and by issuing debt securities such as banknotes and bonds. Banks lend money
by making advances to customers on current accounts, by making instalment loans, and
by investing in marketable debt securities and other forms of money lending.
Banks provide almost all payment services, and a bank account is considered
indispensable by most businesses, individuals and governments. Non-banks that provide
payment services such as remittance companies are not normally considered an adequate
substitute for having a bank account.
Banks borrow most funds from households and non-financial businesses, and lend most
funds to households and non-financial businesses, but non-bank lenders provide a
significant and in many cases adequate substitute for bank loans, and money market
funds, cash management trusts and other non-bank financial institutions in many cases
provide an adequate substitute to banks for lending savings to.
Entry regulation
Currently in most jurisdictions commercial banks are regulated by government entities and
require a special bank licence to operate.

Usually the definition of the business of banking for the purposes of regulation is extended
to include acceptance of deposits, even if they are not repayable to the customer's order-
although money lending, by itself, is generally not included in the definition.
Unlike most other regulated industries, the regulator is typically also a participant in the
market, i.e. a government-owned (central) bank. Central banks also typically have a
monopoly on the business of issuing banknotes. However, in some countries this is not the
case. In the UK, for example, the Financial Services Authority licences banks, and some
commercial banks (such as the Bank of Scotland) issue their own banknotes in addition to
those issued by the Bank of England, the UK government's central bank.
Accounting for bank accounts
Bank statements are accounting records produced by banks under the various accounting
standards of the world. Under GAAP and IFRS there are two kinds of accounts: debit and
credit. Credit accounts are Revenue, Equity and Liabilities. Debit Accounts are Assets and
Expenses. This means you credit a credit account to increase its balance, and you debit a
debit account to decrease its balance.

This also means you debit your savings account every time you deposit money into it (and
the account is normally in deficit), while you credit your credit card account every time you
spend money from it (and the account is normally in credit).
However, if you read your bank statement, it will say the opposite—that you credit your
account when you deposit money, and you debit it when you withdraw funds. If you have
cash in your account, you have a positive (or credit) balance; if you are overdrawn, you have
a negative (or deficit) balance.
The reason for this is that the bank, and not you, has produced the bank statement. Your
savings might be your assets, but the bank's liability, so they are credit accounts (which
should have a positive balance). Conversely, your loans are your liabilities but the bank's
assets, so they are debit accounts (which should also have a positive balance).
Where bank transactions, balances, credits and debits are discussed below, they are done
so from the viewpoint of the account holder-which is traditionally what most people are
used to seeing.
Economic functions
 issue of money, in the form of banknotes and current accounts subject to cheque or
payment at the customer's order. These claims on banks can act as money because they
are negotiable and/or repayable on demand, and hence valued at par. They are effectively
transferable by mere delivery, in the case of banknotes, or by drawing a cheque that the
payee may bank or cash.
 Netting and settlement of payments - banks act as both collection and paying agents for
customers, participating in interbank clearing and settlement systems to collect, present,
be presented with, and pay payment instruments. This enables banks to economise on
reserves held for settlement of payments, since inward and outward payments offset each
other. It also enables the offsetting of payment flows between geographical areas,
reducing the cost of settlement between them.
 credit intermediation - banks borrow and lend back-to-back on their own account as
middle men.
 credit quality improvement - banks lend money to ordinary commercial and personal
borrowers (ordinary credit quality), but are high quality borrowers. The improvement
comes from diversification of the bank's assets and capital which provides a buffer to
absorb losses without defaulting on its obligations. However, banknotes and deposits are
generally unsecured; if the bank gets into difficulty and pledges assets as security to raise
the funding it needs to continue to operate, this puts the note holders and depositors in an
economically subordinated position.

➤ maturity transformation - banks borrow more on demand debt and short term debt, but
provide more long term loans. In other words, they borrow short and lend long. With a stronger credit
quality than most other borrowers, banks can do this by aggregating issues (e.g. accepting deposits and
issuing banknotes) and redemptions (e.g. withdrawals and redemptions of banknotes), maintaining
reserves of cash, investing in marketable securities that can be readily converted to cash if needed, and
raising replacement funding as needed from various sources (e.g. wholesale cash markets and securities
markets).

Law of banking
Banking law is based on a contractual analysis of the relationship between the bank (defined

above) and the customer-defined as any entity for which the bank agrees to conduct an account.

The law implies rights and obligations into this relationship as follows:

➤ The bank account balance is the financial position between the bank and the customer: when

the account is in credit, the bank owes the balance to the customer; when the account is
overdrawn, the customer owes the balance to the bank.

➤ The bank agrees to pay the customer's cheques up to the amount standing to the credit of the

customer's account, plus any agreed overdraft limit.

➤The bank may not pay from the customer's account without a mandate from the customer, e.g. a

cheque drawn by the customer.

➤ The bank agrees to promptly collect the cheques deposited to the customer's account as the

customer's agent, and to credit the proceeds to the customer's account.

➤ The bank has a right to combine the customer's accounts, since each account is just an aspect

of the same credit relationship.

➤The bank has a lien on cheques deposited to the customer's account, to the extent that the

customer is indebted to the bank.

➤The bank must not disclose details of transactions through the customer's account- unless the

customer consents, there is a public duty to disclose, the bank's interests require it, or the law

demands it.

➤ The bank must not close a customer's account without reasonable notice, since cheques are outstanding
in the ordinary course of business for several days.

These implied contractual terms may be modified by express agreement between the customer

and the bank. The statutes and regulations in force within a particular jurisdiction may also modify

the above terms and/or create new rights, obligations or limitations relevant to the bank-customer

relationship.

Some types of financial institution, such as building societies and credit unions, may be partly or

wholly exempt from bank licence requirements, and therefore regulated under separate rules.

The requirements for the issue of a bank licence vary between jurisdictions but typically include:

➤ Minimum capital

➤ Minimum capital ratio

➤ 'Fit and Proper' requirements for the bank's controllers, owners, directors, and/or senior officers
➤ Approval of the bank's business plan as being sufficiently prudent and plausible.

Types of banks

Banks' activities can be divided into retail banking, dealing directly with individuals and small

businesses; business banking, providing services to mid-market business; corporate banking,

directed at large business entities; private banking, providing wealth management services to high

net worth individuals and families; and investment banking, relating to activities on the financial

markets. Most banks are profit-making, private enterprises. However, some are owned by

government, or are non-profit organisations.

Central banks are normally government-owned and charged with quasi-regulatory responsibilities,

such as supervising commercial banks or controlling the cash interest rate. They generally provide

liquidity to the banking system and act as the lender of last resort in event of a crisis.

Types of retail banks

Commercial bank: the term used for a normal bank to distinguish it from an investment bank. After

the Great Depression, the U.S. Congress required that banks only engage in banking activities,

whereas investment banks were limited to capital market activities. Since the two no longer have to

be under separate ownership, some use the term "commercial bank" to refer to a bank or a division

of a bank that mostly deals with deposits and loans from corporations or large businesses.

 Community Banks: locally operated financial institutions that empower employees to make
local decisions to serve their customers and the partners.
 Community development banks: regulated banks that provide financial services and credit to
under-served markets or populations.
 Postal savings banks: savings banks associated with national postal systems.
 Private banks: banks that manage the assets of high-net-worth individuals.
 Offshore banks: banks located in jurisdictions with low taxation and regulation. Many offshore
banks are essentially private banks.
 Savings bank: in Europe, savings banks take their roots in the 20th or sometimes even 19th
century. Their original objective was to provide easily accessible savings products to all strata of
the population. In some countries, savings banks were created on public initiative; in others,
socially committed individuals created foundations to put in place the necessary infrastructure.
Nowadays, European savings banks have kept their focus on retail banking: payments, savings
 products, credits and insurances for individuals or small and medium-sized enterprises. Apart
from this retail focus, they also differ from commercial banks by
their broadly decentralised distribution network, providing local and regional outreach-and by
their socially responsible approach to business and society.
 Building societies and Landesbanks: institutions that conduct retail banking.
 Ethical banks: banks that prioritise the transparency of all operations and make only what they
consider to be socially responsible investments.
 Islamic banks: Banks that transact according to Islamic principles.

Types of investment banks

 Investment banks "underwrite" (guarantee the sale of) stock and bond issues, trade for their

own accounts, make markets, and advise corporations on capital market activities such as

mergers and acquisitions.

 Merchant banks were traditionally banks which engaged in trade finance. The modern

definition, however, refers to banks which provide capital to firms in the form of shares

rather than loans. Unlike venture capital firms, they tend not to invest in new companies.

Both combined

Universal banks, more commonly known as financial services companies, engage in several of

these activities. These big banks are very diversified groups that, among other services, also

distribute insurance- hence the term bancassurance, a portmanteau word combining "Basque or

bank" and "assurance", signifying that both banking and insurance are provided by the same

corporate entity.

Other types of banks

Islamic banks adhere to the concepts of Islamic law. This form of banking revolves around several

well-established principles based on Islamic canons. All banking activities must avoid interest, a

concept that is forbidden in Islam. Instead, the bank earns profit (markup) and fees on the financing

facilities that it extends to customers .

 COMPANY PROFILE

Kotak Mahindra Bank is the fourth largest Indian private sector bank by market capitalisation,
headquartered in Mumbai, Maharashtra.

Since the inception of the erstwhile Kotak Mahindra Finance Limited in 2085, it has been a steady

and confident journey leading to growth and success. The milestones of the group growth story are listed
below year wise.

 2015-2020
Ahmedabad Derivatives and Commodities Exchange, a Kotak anchored enterprise, became operational
as a national commodity exchange.

 2013
Kotak Mahindra Bank Ltd. opened a representative office in Dubai.
  Entered Ahmedabad Commodity Exchange as anchor investor.

 2008
Launched a Pension Fund under the New Pension System.

 2006
Bought the 25% stake held by Goldman Sachs in Kotak Mahindra Capital Company and Kotak
Securities.

 2005
 Kotak Group realigned joint venture in Ford Credit; their stake in Kotak Mahindra Prime was
bought out (formerly known as Kotak Mahindra Primus Ltd) and Kotak group's stake in Ford
credit Kotak Mahindra was sold.

 Launched a real estate fund.

 2004

 Launched India Growth Fund, a private equity fund.

 2003

 Kotak Mahindra Finance Ltd. converted into a commercial bank - the first Indian

Company to do so .

 2001
o Matrix sold to Friday Corporation.
o Launched Insurance Services
o Kotak Securities Ltd. was incorporated

 2000
o Kotak Mahindra tied up with Old Mutual plc. for the Life Insurance business.
o Kotak Securities launched its on-line broking site.
o Commencement of private equity activity through setting up of Kotak Mahindra Venture
Capital Fund.

 1998

o Entered the mutual fund market with the launch of Kotak Mahindra Asset Management
Company.
 1996

o The Auto Finance Business is hived off into a separate company - Kotak Mahindra Prime
Limited (formerly known as Kotak Mahindra Primus Limited). Kotak Mahindra takes a
significant stake in Ford Credit Kotak
o Mahindra Limited, for financing Ford vehicles. The launch of Matrix Information
Services Limited marks the Group's entry into information distribution.

 1995

o Brokerage and Distribution businesses incorporated into a separate company - Securities.

Investment banking division incorporated into a separate company - Kotak Mahindra
Capital Company
 1992
o Entered the Funds Syndication sector

 1991
o The Investment Banking Division was started. Took over FICOM, one of India's largest
financial retail marketing networks

 1990
o The auto finance division was started .

 1987
o Kotak Mahindra Finance Ltd entered the Lease and Hire Purchase market

 1986
o Kotak Mahindra Finance Ltd started the activity of Bill Discounting.

Our Businesses
Multiple businesses. One brand.

Kotak Mahindra is one of India's leading banking and financial services groups, offering a wide

range of financial services that encompass every sphere of life.

 Kotak Mahindra Bank Ltd

Kotak Mahindra Bank Ltd is a one stop shop for all banking needs. The bank offers personal

finance solutions of every kind from savings accounts to credit cards, distribution of mutual

funds to life insurance products. Kotak Mahindra Bank offers transaction banking, operates

lending verticals, manages IPOs and provides working capital loans. Kotak has one of the

largest and most respected Wealth Management teams in India, providing the widest range of

solutions to high net worth individuals, entrepreneurs, business families and employed

professionals.

For more information, please visit the Kotak Mahindra Bank website

www.kotak.com/bank/personal-banking/

Kotak Mahindra Old Mutual Life Insurance Ltd

Kotak Mahindra Old Mutual Life Insurance Ltd is a 74:26 joint venture between Kotak Mahindra

Bank Ltd., its affiliates and Old Mutual plc. A Company that combines its international strengths

and local advantages to offer its customers a wide range of innovative life insurance products,

helping them take important financial decisions at every stage in life and stay financially

independent. The company covers over 3 million lives and is one of the fastest growing insurance

companies in India. www.kotaklifeinsurance.com

Kotak Securities Ltd

Kotak Securities is one of the largest broking houses in India with a wide geographical reach. Kotak

Securities operations include stock broking and distribution of various financial products including

private and secondary placement of debt, equity and mutual funds.

Kotak Securities operate in five main areas of business:

 o Stock Broking (retail and institutional)
o Depository Services
o Portfolio Management Services
o Distribution of Mutual Funds
o Distribution of Kotak Mahindra Old Mutual Life Insurance Ltd products

For more information, please visit www.kotaksecurities.com the Kotak Securities website

Kotak Mahindra Capital Company (KMCC)

kotak Mahindra Capital Company

Kotak Mahindra Capital Company (KMCC) is a full-service investment bank in India offering a wide

suite of capital market and advisory solutions to leading.domestic and multinational corporations,

banks, financial institutions and government companies.

Our services encompass Equity & Debt Capital Markets, M&A Advisory, Private Equity Advisory,

Restructuring and Recapitalisation services, Structured Finance services and Infrastructure

Advisory & Fund Mobilisation.

For more information, please visit the Kotak Investment Banking website www.kmcc.co.in

Kotak Mahindra Prime Ltd (KMPL)

Kotak Mahindra Prime Ltd is among India's largest dedicated passenger vehicle finance companies.

KMPL offers loans for the entire range of passenger cars, multi-utility vehicles and pre-owned cars.

Also on offer are inventory funding and infrastructure funding to car dealers with strategic

arrangements via various car manufacturers in India as their preferred financier.

For more information, please visit the KMPL website http://carloan.kotak.com

Kotak International Business

Kotak International Business specialises in providing a range of services to overseas customers

seeking to invest in India. For institutions and high net worth individuals outside India, Kotak

International Business offers asset management through a range of offshore funds with specific

advisory and discretionary investment management services.

For more information, please visit the Kotak Mahindra International Business website
www.investindia.kotak.com

Kotak Mahindra Asset Management Company Ltd (KMAMC)

Kotak Mahindra Asset Management Company offers a complete bouquet of asset management

products and services that are designed to suit the diverse risk return profiles of each and every

type of investor. KMAMC and Kotak Mahindra Bank are the sponsors of Kotak Mahindra Pension

Fund Ltd, which has been appointed as one of six fund managers to manage pension funds under

the New Pension Scheme (NPS).

For more information, please www.kotakmutual.com/kmw/main.htm KMAMC the visit website.

Kotak Private Equity Group (KPEG).

Kotak Private Equity Group helps nurture emerging businesses and mid-size enterprises to evolve

into tomorrow's industry leaders. With a proven track record of helping build companies, KPEG also

offers expertise with a combination of equity capital, strategic support and value added services.

What differentiates KPEG is not merely funding companies, but also having a close involvement in
their growth as board members, advisors, strategists and fund-raisers.

For more information, www.privateequityfund.kotak.com visit please the KPEG website

Kotak Realty Fund

Kotak Realty Fund deals with equity investments covering sectors such as hotels, IT parks,

residential townships, shopping centres, industrial real estate, health care, retail, education and

property management. The investment focus here is on development projects and enterprise level

investments , both in real estate intensive business .

For more information, please visit the Kotak Realty Fund website www.realtyfund.kotak.com

Senior Management-2020-16

Mr. Uday S. Kotak

Executive Vice Chairman and Managing Director

Mr. Uday Kotak, is the Executive Vice-Chairman and Managing Director of the Bank, and its

principal founder and promoter. Mr. Kotak is an alumnus of Jamnalal Bajaj Institute of Management

Studies.

In 2085, when he was still in his early twenties, Mr Kotak thought of setting up a bank when private

Indian banks were not even seen in the game. First Kotak Capital Management Finance Ltd (which

later became Kotak Mahindra Finance Ltd), and then with Kotak Mahindra Finance Ltd, Kotak

became the first non-banking finance company in India's corporate history to be converted into a

bank. Over the years, Kotak Mahindra Group grew into several areas like stock broking and

investment banking to car finance, life insurance and mutual funds.

Among the many awards to Mr Kotak's credit are the CNBC TV19 Innovator of the Year Award in

2006 and the Ernst & Young Entrepreneur of the Year Award in 2003. He was featured as one of the
Global Leaders for Tomorrow at the World Economic Forum's annual meet at Davos in 2096. He

was also featured among the Top Financial Leaders for the 21st Century by Euro -money magazine.

He was named as CNBC TV19 India Business Leader of the Year 2008 and as the most valued CEO

by business-world in 2015.

Mr. C Jayaram

Joint Managing Director

Mr. C. Jayaram, is a Joint Managing Director of the Bank and is currently in charge of the Wealth

Management Business of the Kotak Group. An alumnus of IIM Kolkata, he has been with the kotak

Group since 2090 and member of the Kotak board in October 2099. He also oversees the

international subsidiaries and the alternate asset management business of the group. He is the

Director of the Financial Planning Standards Board, India. He has varied experience of over 25 years

in many areas of finance and business, has built numerous businesses for the Group and was CEO

of Kotak Securities Ltd. An avid player and follower of tennis, he also has a keen interest in

psephology.

Mr. Dipak Gupta

Joint Managing Director

An electronics engineer and an alumnus of IIM Ahmedabad, Mr. Gupta has been with the Kotak

Group since 2092 and joined the board in October 2099.

He heads commercial banking, retail asset businesses and looks after group HR function. Early on,

he headed the finance function and was instrumental in the joint venture between Kotak Mahindra

and Ford Credit International. He was the first CEO of the resulting entity, Kotak Mahindra Primus

Ltd.
Awards

Recent achievements

At Kotak Mahindra Group we take a client-centric view and constantly innovate to provide you with

the best of services and infrastructure. We have regularly received accolades that stand testimony

to our success in this endeavour. Some of our recent achievements are:

 Won 'Gold Award for Best Innovation - World's first socially powered bank account' and

'Gold Award for Best App developed - World's first banking application using Twitter' awards

at the Indian Digital Media Awards 2020 for Kotak .

 Recognised as Highest Fundraising Company in Corporate Challenge category in Standard

Chartered Mumbai Marathon 2020

 Kotak Mahindra Bank was ranked 292nd among India's most trusted brands according to

the Brand Trust Report 2019, a study conducted by Trust Research Advisory. In the Brand

Trust Report 2020, Kotak Mahindra Bank was ranked 861st among India's most trusted

brands and subsequently, according to the Brand Trust Report 2020, Kotak Mahindra Bank

was ranked 168th among India's most trusted brands.

 Adjudged Best Bank among Emerging Banks at Outlook Money Awards 2020

Banking

 Euro - money

Best Private Banking Services (India), 2020.

 ICAI Award
 Excellence in Financial Reporting under Category 1 - Banking Sector for the year ending 31st
March, 2019

 Asia-money

Best Local Cash Management Bank 2019

 IDG India

Kotak won the CIO 150 'The Agile 150' award 2018.

 IDRBT

Banking Technology Excellence Awards Best Bank Award in IT Framework and Governance
Among Other Banks' - 2015

Banking Technology Award for IT Governance and Value Delivery, 2008

 IR Global Rankings

Best Corporate Governance Practices - Ranked among the top 5 companies in Asia

Pacific, 2013

 FinanceAsia

Best Private Bank in India, for Wealth Management business, 2013

 Kotak Royal Signature Credit Card

Was chosen "Product of the Year" in a survey conducted by Nielsen in 2013

 IBA Banking Technology Awards

Best Customer Relationship Achievement - Winner 2008 & 2013

Best overall winner, 2007
Best IT Team of the Year, 4 years in a row from 2006 to 2013
Best IT Security Policies & Practices, 2007

 Euro money

Best Private Banking Services (overall),2013.

 Emerson Uptime Champion Awards

Technology Senate Emerson Uptime Championship Award in the BFSI category, 2008.

Miscellaneous.

 Best Local Trade Bank in India

The UK based Trade & Forfeiting Review awarded Kotak Mahindra Bank Ltd. the Bronze

Award in the category of Best Local Trade Bank in India at the TFR Awards 2018.

 LACP Vision Awards 2015 for Annual Report 2015-16

Platinum Award - Best among Banking Category, APAC

Gold Award - Most Creative Report, APAC

Ranked No. 21 among Top 50 Reports, APAC

Ranked No. 87 among the World's Top 150 Annual Reports

 Business-world

'Most Valuable CEO' overall, 2015 awarded to Mr. Uday Kotak, Executive Vice Chairman &

Managing Director

 CNBCTV 19

'Best Performing CFO in the Banking/Financial Services sector by CNBCTV 19 CFO Awards
2015 awarded to Mr. Jaime Bhatt

 GIREM

GIREM awarded Kotak Realty Funds Group, the "Investor of the Year" Award for 2013

 IBA Banking Technology Awards

Best Use of Business Intelligence - up, 2008

 Best Enterprise Risk Management - Runner up, 2008

 The Great Places to Work Institute,

India Best Workplaces in India, 2008

 Hewitt

15th Best Employer in India, 2007, 2008 & 2013

 Financial Insights Innovation Award

Best Innovation in Enterprise Security Management in the Asia Pacific Region, 2013 .

 Frost & Sullivan

Best Passenger Vehicle Finance Company in India, 2006

 CNBC TV 19

Indian Business Leader of the Year, 2008 awarded to Uday Kotak, Executive Vice Chairman

& Managing Director

Banking information

The Bank publishes the standalone and consolidated results on a quarterly basis. The standalone

results is subjected to "Limited Review" by the auditors of the Bank. The same are also reviewed by.

the Audit Committee before submission to the Board. Along with the quarterly results, earnings

update is also prepared and posted on the website of the Bank. Every quarter, the Executive Vice-

Chairman and Managing Director and the Executive Director(s) participate on a call with the

analysts / shareholders, the transcripts of which are posted on the website of the Bank. The Bank

also has dedicated personnel to respond to queries from investors.

Financial Calendar: For each calendar quarter, the financial results are reviewed and taken on.

record by the Board during the last week of the month subsequent to the quarter ending. The

audited annual accounts as at 31st March are approved by the Board, after a review thereof by the
Audit Committee. The Annual General Meeting to consider such annual accounts is held in the

second quarter of the financial year.

Stock Exchanges on which listed:

Sr. no Name & Address of Stock Market Scrip Code

Exchange

1 The Bombay Stock 500247

Exchange Limited Phiroze
Jejeebhoy Tower Dalal
Street , Fort , Mumbai
400023.
2 National Stock Exchange of KOTAK BANK
India Limited Exchange
Plaza , Bandra ,Mumbai
400023
3 Luxembourg Stock
Exchange BP 175, L-2018
Luxembourg

Trading of shares to be in compulsorily dematerialised form: Thee equity shares of the Bank have.

been activated for dematerialisation with the National Securities Depository Limited and with the

Central Depository Services (India) Limited vide ISIN INE237A01528.

Share Transfer System: Applications for transfers, transmission and transposition are received by

the Bank at its Registered Office or at the office(s) of its Registrars & Share Transfer Agents. As the

shares of the Bank are in dematerialised form, the transfers are duly processed by NSDL/CDSL in

electronic form through the respective depository participants. Shares which are in physical form

are processed by the Registrars & Share Transfer Agents, Karve Computer-share Private Limited, on

a regular basis and the certificates despatched directly to the investors.

Investor Helpdesk: Share transfers, dividend payments and all other investor related activities are.

attended to and processed at the office of our Registrars & Share Transfer Agents. For lodgement of

Transfer Deeds and any other documents or for any grievances/complaints, kindly contact Karvy.

Computer-share Private Limited, contact details of which are provided elsewhere in the Report.
For the convenience of the investors, transfers and complaints from the investors are accepted at

the Registered Office between 9:30 a.m. to 5:30p.m. from Monday to Friday except on bank

holidays:

Corporate Responsibility

Community investment and development

Kotak Mahindra views Corporate Social Responsibility as an investment in society and in its own

future. Kotak uses the power of its human and financial capital to help in transforming communities

into vibrant, desirable places for people to live. The group leverages its core.

 Sustainability

An integral part of all Kotak Mahindra Group activities is to be consistently responsible to

shareholders, clients, employees, society and the environment.

 Economic Development

By helping people achieve their financial goals, Kotak strengthens the fabric of communities

and helps them overcome unemployment and poverty to help them shape their future.

 Doing My Bit

A growing number of employees are committed to civic leadership and responsibility with

the support and encouragement of the Kotak Group. A number of employees have been

involved in strengthening communities through voluntary work, payroll giving and

 management inputs.

For any CSR related queries, please contact:

 CHAPTER -4
DATA ANALYSIS
CASH FLOW STATEMENT OF KOTAK MAHINDRA
BANK FROM 2019 - 2023
Kotak Mahindra Bank Ltd Tel. Board +91 22 6720 6720 Email: cr@kotak
 CHAPTER -5
FINDINGS
SUGGESTION
LIMITATIONS
CONCLUSION

FINDINGS :