PROJECT REPORT

ON
“A STUDY ON WORKING CAPITAL MANAGEMENT WITH REFERENCE TO
KOTAK MAHINDRA BANK”
Submitted for the partial Fulfillment of the requirement for the award of the degree of

BACHELOR OF COMMERCE
Submitted by:
SYEDA AYESHA BANU 125821405019
SANA FATIMA 125821405023
SABA FATIMA 125821405024
MAVIA FATIMA 125821405025
Under the guidance of
MRS. SHRENIKA VERMA
Associate Professor

PRESIDENCY COLLEGE
(Affiliated to Osmania University)
HYDERABAD
2021-2023
 DECLARATION

We , SYEDA AYESHA BANU 125821405019,SANA FATIMA 125821405023,SABA

FATIMA 125821405024,MAVIA FATIMA 125821405025,student of b.COM at
PRESIDENCY COLLEGE
Hyderabad hereby declare that the project “A STUDY ON WORKING CAPITAL MANAGEMENT
WITH REFERENCE TO KOTAK MAHINDRA BANK” Submitted for the award of degree of
Bahelor of business administration is a reward of bonafide work done by me under the guidance of
MRS. SHRENIKA VERMA
Associate professor It is original and genuine work done by me.

Place :

Date : Signature of the student

 ACKNOWLEDGEMENT

I deem it a privilege to owe a special acknowledge to PRESIDENCY COLLEGE

for giving me an opportunity to do the project. I convey my thanks to D.ANURADHA as Principal of
PRESIDENCY COLLEGE for giving the permission for the project I am greatly thankful to our project
MRS. SHRENIKA VERMA
for her valuable support advice and guidance throughout the project and given away to complete my
project.
 ASBTRACT

Working capital of a company reveals more about the financial condition of a business than almost any

other calculation. It tells you what would be left if a company raised all of its short term resources, and

used them to pay off its short term liabilities. The more working capital, the less financial strain a

company experiences
 TABLE OF CONTENTS

S.NO CONTENTS Page

CHAPTER-1 INTRODUCTION 1-8

Need for the study 4

Objectives of the study 6
Scope of study 5
Research methodology 7
Limitations 8

CHAPTER-2 REVIEW OF LITERATURE 9-11

CHAPTER-3 COMPANY PROFILE 13-35

CHAPTER- 4 DATA ANALYSIS AND INTERPRETION 36-53

CHAPTER-5 FINDINGS, CONCULSIONS & 54-56

SUGGESTIONS

BIBILOGRAPHY
 LIST OF TABLES

S NO LIST OF TABLES PAGE NO

4.1 Networking capital for 2010-15 36

4.2 Working capital turnover 37

ratio
4.3 Debtors turnover ratio for 38
2010-2015

4.4 Current ratio for 2010-2015 39

4.5 Quick ratio for 2010-2015 41

Composition of current
4.6 assets 42
for 2010-2015
4.7 Working capital turnover 44
ratio 2014-2015
4.8 Working capital turnover 46
ratio 2013-2014
4.9 Working capital turn over 48
ratio 2012-2013
4.10 Working capital turn over 50
ratio 2011-2010
 LIST OF GRAPHS

S NO LIST OF GRAPHS PAGE NO

4.1 Networking capital for 2010-15 36

4.2 Working capital turnover 37

ratio
4.3 Debtors turnover ratio for 38
2010-2015

4.4 Current ratio for 2010-2015 39

4.5 Quick ratio for 2010-2015 41

Composition of current
4.6 assets 42
for 2010-2015
4.7 Working capital turnover 45
ratio 2014-2015
4.8 Working capital turnover 47
ratio 2013-2014
4.9 Working capital turnover 49
ratio 2012-2013
4.10 Working capital turnover 51
ratio 2011-2010
 CHAPTER-I

INTRODUCTION
 INTRODUCTION

WORKING CAPITAL:

Cash is the lifeline of a company. If this lifeline deteriorates, the company's ability to fund

operations, reinvest and meet capital requirements and payments also deteriorate.

Understanding a company's cash flow health is essential for making investment decisions. A

good way to judge a company's cash flow prospects is to look at its working capital

management (WCM).

Working capital of a company reveals more about the financial condition of a business than

almost any other calculation. It tells you what would be left if a company raised all of its

short term resources, and used them to pay off its short term liabilities. The more working

capital, the less financial strain a company experiences.

Working capital also gives investors an idea of the company's underlying operational

efficiency. Money that is tied up in inventory or money that customers still owe to the

company can't be used to pay off any of its obligations. So, if a company is not operating in

the most efficient manner (slow collection) it will show up in the working capital. This can

be seen by comparing the working capital from one period of time to another; slow

collection may signal an underlying problem in the company's operations.

DEFINITION:

The definition of working capital is that it is the difference between an organization’s

current assets and its current liabilities. Of more importance is its function which is

primarily to support the day-to-day financial operations of an organization, including the

purchase of stock, the

payment of salaries, wages and other business expenses, and the financing of credit sales.

It’s a measure of both a company's efficiency and its short-term financial health.

The better a company manages its working capital, the less the company needs to borrow.

Even companies with cash surpluses need to manage working capital to ensure that those

surpluses are invested in ways that will generate suitable returns for investors. There are two

concepts of working capital. They are

→ Gross working capital and

→ Net working capital.

The term gross working capital, also referred to as working capital means the total current

assets.

The term net working capital can be defined in two ways:

 The most common definition of net working capital is the difference between the

current assets and the current liabilities.

 The alternate definition of NWC is that portion of current assets which is financed

with long term funds. Since the current liabilities represent the sources of short term
funds, as long as current assets exceed current liabilities, the excess must be financed

with long term funds.

The net working capital, as a measure of liquidity is quite useful for internal control. The net

working capital helps in comparing the liquidity of the same firm over time. Therefore:

Current Assets - Current Liabilities = Working Capital

A positive working capital means that the company is able to pay off its short-term

liabilities. A negative working capital means that a company currently is unable to meet its

short-term liabilities with its current assets (cash, accounts receivable, inventory).

Management must ensure that a business has sufficient working capital. Too little of the

working capital will result in cash flow problems highlighted by an organization exceeding

its agreed overdraft limit, failing to pay suppliers on time, and being unable to claim

discounts for prompt payment. In the long run, a business with insufficient working capital

will be unable to meet its current obligations and will be forced to cease trading even if it

remains profitable on paper.

On the other hand, if an organization ties up too much of its resources in working capital it

will earn a lower than expected rate of return on capital employed. Again this is not a

desirable situation.

As it is said that working capital is the difference between the current assets and the current

liabilities, the management of the company has to manage their current assets and current

liabilities.
Need for the study

Working capital management is one of the key areas of financial decision-making. It is

significant because, the management must see that an excessive investment in current assets

should protect the company from the problems of stock-out. Current assets will also

determine the liquidity position of the firm.

The goal of working capital management is to manage the firm current assets and current

liabilities in such a way that a satisfactory level of working capital is maintained. If the firm

cannot maintain a satisfactory level of working capital, it is likely to become insolvent and

may be even forced into bankruptcy.

SCOPE OF THE STUDY:

A study of the Working capital 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 Group tapped over the

years under study i.e. 2011-15.

OBJECTIVES OF THE STUDY

 To study the existing working capital management system of Kotak Mahindra

Group. (Formerly Kotak Mahindra bank Ltd.).

 To find the liquidity position of the current assets and current liabilities of the
company.

 To understand how the company finances its working capital

 To analyze the financial performance of the company with reference

to working capital.
 METHODOLOGY

 The study of Working Capital management is based on primary as well as secondary

data.

Data relating to. Has been collected through

SECONDARY SOURCES:

Published annual reports of the company for the year 2011-15.

PRIMARY SOURCES:

Detailed discussions with Vice-President.

Discussions with the Finance manager and other members of the Finance department.

DATA ANALYSIS

The collected data has been processed using the tools of

 Ratio analysis

 Graphical analysis

 Year-year analysis

These tools access in the interpretation and understanding of the Existing scenario of the

Capital Structure.
 The primary data was gathered through personal interaction with the director of the

company.

 The secondary data was collected from company’s annual reports from 2010-11 to

2014-15, various books and Internet.

 LIMITATIONS

 Due to the busy schedule of the executives in the company, all the required primary
data could not be collected, which might affect the results of the study.

 Recommendations of the study are only personal opinions. Hence the judgments may
be biased and could not be considered as ultimate and standard solutions.

 Short period of time is one of the limitations, due to which a detailed study could not be
conducted on the topic
 CHAPTER-II

LITERATURE REVIEW
 WORKING CAPITAL MANAGEMENT

Management of working capital plays a very important role in the financial management of

a company because maintaining a balance of income to debt can be difficult and owners

must be diligent to assure that it is kept. Sometimes it takes a little assistance to maintain

levels of fluidity or make major purchases.

If working capital dips too low, a business risks running out of cash. Even very profitable

businesses can run into trouble if they lose the ability to meet their short-term obligations.

Working capital financing can be used as a fast cash option to cushion the periods when the

flow is not ideal or readily available. Even when owners are meticulous in managing

working capital, finding the right levels to remain comfortable and competitive can be

difficult.

The Importance of Good Working Capital Management

Working capital constitutes part of the Company’s investment in a department. Associated

with this is an opportunity cost to the company. (Money invested in one area may "cost"

opportunities for investment in other areas.) If a department is operating with more working

capital than is necessary, this over-investment represents an unnecessary cost to the

Company

From a department's point of view, excess working capital means operating inefficiencies. In

addition, unnecessary working capital increases the amount of the capital charge which

departments are required to

ARTICLES:

The Research done by thachappily g., working capital management managers flow of funds

2009 describes that working capital is the cash the needed to carry on operations during the

cash convention cycle that is the day from paying for raw materials to collecting cash from

customers raw materials and operating suppliers must be bought and stored to ensure

standard in business only at the end of this cycle does cash flow in again

The Research done by Beneda Nancy L:Zhang Yilei uninterrupted production, wages, salary,

utility charges and other incidentals must be paid for converting the materials into finished

products. Customers must be allowed a credit periods that is 2008 working capital management

growth and performance and growth of new public companies. The study sheds light on the

relationship of working capital with debit level, firm risk, an industry. using a sample of initial

public offering (IPO’S) the study finds a significant positive association between higher level of

accounts receivable and operating performance. The study further finds that maintaining control

(i.e. lower amounts) over levels of cash and securities, inventory, fixed assets and Accounts

According To Mihir Dash And Ravi Ranipati (2006) Article “A liquidity probability trade of

model for working capital management” they proposed a goal programming model of working

capital management. Goal programming is necessary to model “vord.inl, capital decisions as to

be achieved between the conflicting objectives of liquidity and profitability. The model

determinants for given working capital turnover and fixed assets turnover ration, how funds

should be maintained between working capital/current assets and fixed assets to achieve targeted

level of liquidity and profitability while it minimizing the opportunity cost by losses of excess

liquidity.
Reheman and nasr (2007) studied the affect of different variables of working capital

management including the average collection period , inventory turnover in days, average

payment period , cast conversion cycle and current ration on the net operating profitability

Pakistani firms. The result shows that there was a significant negative relationship between

variable of the working capital management and profitability of firms meaning that has the

cash conversion cycle increasing it will be lead to decreasing profitability of the firms.

GVK kumar (2014) international general of trade and global business according to him

abstract working capital is the life blood and never center of any business. No business can

run successfully without adequate working capital. Hence working capital management is

very important corporate finance because it directly effects the liquidity and profitability.
 CHAPTER-III

COMPANY PROFILE
Introduction:

As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently capitalised

and well-regulated. The financial and economic conditions in the country are far superior to

any other country in the world. Credit, market and liquidity risk studies suggest that Indian

banks are generally resilient and have withstood the global downturn well.

Indian banking industry is expected to witness better growth prospects in 2015 as a sense of

optimism stems from the Government’s measures towards revitalizing the industrial growth

in the country. In addition, RBI’s new measures may go a long way in helping the

restructuring of the domestic banking industry.

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,

bancassurance is prevalent, as most banks offer insurance services (and now real estate

services) to their clients.

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

2012, 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 technicals.

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 macella 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.

MARKET SIZE

The Indian banking system consists of 26 public sector banks, 25 private sector banks, 43

foreign banks, 56 regional rural banks, 1,589 urban cooperative banks and 93,550 rural

cooperative banks, in addition to cooperative credit institutions. Public-sector banks control

nearly 80 percent of the market, thereby leaving comparatively much smaller shares for its

private peers.

As of November 11, 2015, 192.1 million accounts had been opened under Pradhan Mantri

Jan Dhan Yojna (PMJDY) and 165.1 million RuPay debit cards were issued. These new

accounts have mustered deposits worth Rs 26,819 crore (US$ 4 billion).

Standard & Poor’s estimates that credit growth in India’s banking sector would improve to

12-13 per cent in FY16 from less than 10 per cent in the second half of CY14.

14
Investments/developments

In the past few months, there have been many investments and developments in the Indian

banking sector

 Global rating agency Moody's has upgraded its outlook for the Indian banking

system to stable from negative based on its assessment of five drivers including

improvement in operating environment and stable asset risk and capital scenario.

 Lok Capital, a private equity investor backed by US-based non-profit organisation

Rockefeller Foundation, plans to invest up to US$ 15 million in two proposed small

finance banks in India over the next one year.

 The Reserve Bank of India (RBI) has granted in-principle licences to 10 applicants

to open small finance banks, which will help expanding access to financial services

in rural and semi-urban areas.

 IDFC Bank has become the latest new bank to start operations with 23 branches,

including 15 branches in rural areas of Madhya Pradesh.

 The RBI has given in-principle approval to 11 applicants to establish payment banks.

These banks can accept deposits and remittances, but are not allowed to extend any

loans.
 The Bank of Tokyo-Mitsubishi (BTMU), a Japanese financial services group, aims

to double its branch count in India to 10 over the next three years and also target a 10

per cent credit growth during FY16.

  State Bank of India has tied up with e-commerce portal Snapdeal and payment

gateway Paypal to finance MSME businesses.

 The United Economic Forum (UEF), an organisation that works to improve socio-

economic status of the minority community in India, has signed a memorandum of

understanding (MoU) with Indian Overseas Bank (IOB) for financing entrepreneurs

from backward communities to set up businesses in Tamil Nadu

15

 The RBI has allowed third-party white label automated teller machines (ATM) to

accept international cards, including international prepaid cards, and said white label

ATMs can now tie up with any commercial bank for cash supply.

 The RBI has allowed Indian alternative investment funds (AIFs), to invest abroad, in

order to increase the investment opportunities for these funds.

 In order to boost the infrastructure sector and the banks financing long gestation

projects, the RBI has extended its flexible refinancing and repayment option for

long-term infrastructure projects to existing ones where the total exposure of lenders

is more than Rs 500 crore (US$ 75.1 million).

 RBI governor Mr Raghuram Rajan and European Central Bank President Mr Mario

Draghi have signed an MoU on cooperation in central banking. “The memorandum

of understanding provides a framework for regular exchange of information, policy

dialogue and technical cooperation between the two institutions. Technical

cooperation may take the form of joint seminars and workshops in areas of mutual

interest in the field of central banking,” RBI said on its website.

  RBL Bank informed that it would be the anchor investor in Trifecta Capital’s

Venture Debt Fund, the first alternative investment fund (AIF) in India with a

commitment of Rs 50 crore (US$ 7.51 million). This move provides RBL Bank the

opportunity to support the emerging venture debt market in India.

 Bandhan Financial Services raised Rs 1,600 crore (US$ 240.2 million) from two

international institutional investors to help convert its microfinance business into a

full service bank. Bandhan, one of the two entities to get a banking licence along

with IDFC, launched its banking operations in August 2015.

Government Initiatives

The government and the regulator have undertaken several measures to strengthen the

Indian banking sector.

 The Government of India is looking to set up a special fund, as a part of National

Investment and Infrastructure Fund (NIIF), to deal with stressed assets of banks. The

special fund will potentially take over assets which are viable but don’t have

additional fresh equity from promoters coming in to complete the project.

 The Reserve Bank of India (RBI) plans to soon come out with guidelines, such as

common risk-based know-your-customer (KYC) norms, to reinforce protection for

consumers, especially since a large number of Indians have now been financially

included post the government’s massive drive to open a bank account for each

household.
 To provide relief to the state electricity distribution companies, Government of India

has proposed to their lenders that 75 per cent of their loans be converted to state

government bonds in two phases by March 2017. This will help several banks,

especially public sector banks, to offload credit to state electricity distribution

companies from their loan book, thereby improving their asset quality.

 The Reserve Bank of India (RBI), the Department of Industrial Policy & Promotion

(DIPP) and the Finance Ministry are planning to raise the Foreign Direct Investment

(FDI) limit in private banks sector to 100 per cent from 74 per cent.

 Government of India aims to extend insurance, pension and credit facilities to those

excluded from these benefits under the Pradhan Mantri Jan Dhan Yojana (PMJDY).<

 The Government of India announced a capital infusion of Rs 6,990 crore (US$ 1.05

billion) in nine state run banks, including State Bank of India (SBI) and Punjab

National Bank (PNB). However, the new efficiency parameters would include return

on assets and return on equity. According to the finance ministry, “This year, the

Government of India has adopted new criteria in which the banks which are more

efficient would only be rewarded with extra capital for their equity so that they can

further strengthen their position."

 To facilitate an easy access to finance by Micro and Small Enterprises (MSEs), the

Government/RBI has launched Credit Guarantee Fund Scheme to provide guarantee

cover for collateral free credit facilities extended to MSEs upto Rs 1 Crore (US$ 0.15

million). Moreover, Micro Units Development & Refinance Agency (MUDRA) Ltd.

was also established to refinance all Micro-finance Institutions

 (MFIs), which are in the business of lending to micro / small business entities

engaged in manufacturing, trading and services activities upto Rs 10 lakh (US$

0.015 million).

 The central government has come out with draft proposals to encourage electronic

transactions, including income tax benefits for payments made through debit or

credit cards.

 The Union cabinet has approved the establishment of the US$ 100 billion New

Development Bank (NDB) envisaged by the five-member BRICS group as well as

the BRICS “contingent reserve arrangement” (CRA).

 The government has plans to set up a fund that will provide surety to banks against

loans given to students for higher education.

Road Ahead

The Indian economy is on the brink of a major transformation, with several policy initiatives

set to be implemented shortly. Positive business sentiments, improved consumer confidence

and more controlled inflation are likely to prop-up the country’s the economic growth.

Enhanced spending on infrastructure, speedy implementation of projects and continuation of

reforms are expected to provide further impetus to growth. All these factors suggest that

India’s banking sector is also poised for robust growth as the rapidly growing business

would turn to banks for their credit needs.

Also, the advancements in technology have brought the mobile and internet banking services to

the fore. The banking sector is laying greater emphasis on providing improved services to
their clients and also upgrading their technology infrastructure, in order to enhance the

customer’s overall experience as well as give banks a competitive edge.

Many banks, including HDFC, ICICI and AXIS are exploring the option to launch contact-

less credit and debit cards in the market shortly. The cards, which use near field

communication (NFC) mechanism, will allow customers to transact without having to insert

or swipe.

Indian banking sector credit growth has grown at a healthy pace

• Credit off-take has been surging ahead over the past decade, aided by strong economic

growth, rising disposable incomes, increasing consumerism and easier access to credit

• Total credit extended went up to US$ 1,089 billion by FY15

• Credit to non-food industries increased 9.75 per cent to US$ 1,073.4 billion in FY15, from

the previous financial year

• Demand has grown for both corporate and retail loans

Reserve Bank of India (RBI) in its

fifth bi-monthly monetary policy review has maintained status status quo in key policy
interest rate. The key policy interest rates were kept unchanged on the basis of an

assessment of the current and evolving macroeconomic

situation in the country. The Key policy interest rates are Repo rate under the liquidity

adjustment facility (LAF): unchanged at 6.75 per cent. Reverse repo rate under the LAF:

unchanged at 5.75 per cent Marginal standing facility (MSF) rate and the Bank Rate has

unchanged at 7.75 per cent. Cash Reserve Ratio (CRR) of scheduled banks: Unchanged at

4.0 per cent of net demand and time liability (NDTL). Continuation of liquidity under

overnight repos at 0.25 per cent of bank-wise NDTL at the LAF repo rate.

`
 COMPANY PROFILE

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

Since the inception of the erstwhile Kotak Mahindra Finance Limited in 1985, 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

Reserve Bank of India (RBI) approves merger of ING Vysya Bank with Kotak Mahindra
Bank effective April 1, 2015.

2014

Thrust on digital and social with the launch of innovative solutions - first-of-its-kind fully
integrated social bank account - 'Jifi', and world's first bank agnostic instant funds transfer
platform using Facebook - 'KayPay'. Subsequently in Jan 2015, 'Jifi Saver' - a savings bank
account with secure and seamless transactions on popular social networks was launched.

Kotak Mahindra Bank acquires 15% equity stake in Multi Commodity Exchange of India
Limited (MCX)

Kotak Mahindra Asset Management Company Ltd. acquires schemes of Pinebridge Mutual
Fund

Kotak Mahindra Group announces its foray into General Insurance business

2010-2014 ∙ Ahmedabad Derivatives and Commodities Exchange, a Kotak

anchored enterprise, became operational as a national commodity
exchange.

 Kotak Mahindra Bank Ltd. opened a representative office in Dubai

 Entered Ahmedabad Commodity Exchange as anchor investor.

2009
 201
9 ∙ Launched a Pension Fund under the New Pension System.
201
8 ∙ Bought the 25% stake held by Goldman Sachs in Kotak Mahindra Capital
Company and Kotak Securities.
201
7 ∙ 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.

201
6 ∙ Launched India Growth Fund, a private equity fund.
201
5 ∙ Kotak Mahindra Finance Ltd. converted into a commercial bank - the first
Indian company to do so.
201
4 ∙ Matrix sold to Friday Corporation.
∙ Launched Insurance Services.
∙ Kotak Securities Ltd. was incorporated

2000 ∙ Kotak Mahindra tied up with Old Mutual plc. for the Life Insurance business.

 Kotak Securities launched its on-line broking site.

 Commencement of private equity activity through setting up of Kotak Mahindra

Venture Capital Fund.

1998 ∙ Entered the mutual fund market with the launch of Kotak Mahindra Asset
Management Company.

199 ∙ The Auto Finance Business is hived off into a separate company - Kotak
6
Mahind
ra Prime Limited (formerly known as Kotak Mahindra Primus
Limited). Kotak Mahindra takes a significant stake in Ford Credit Kotak
Mahind
∙ ra Limited, for financing Ford vehicles. The launch of Matrix
 Information Services Limited marks the Group's entry into information
distribution.

199
5 ∙ Brokerage and Distribution businesses incorporated into a separate company -
Securities. Investment banking division incorporated into a separate company
-
Kotak Mahindra Capital Company
199
2 ∙ Entered the Funds Syndication sector

199
1 ∙ The Investment Banking Division was started. Took over FICOM, one of
India's largest financial retail marketing networks
199
0 ∙ The Auto Finance division was started
198
7 ∙ Kotak Mahindra Finance Ltd entered the Lease and Hire Purchase market
198
6 ∙ 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 the Kotak Securities website

www.kotaksecurities.com

Kotak Mahindra Capital Company (KMCC)

 Kotak Investment Banking (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 Recapitalization services, Structured Finance
services and Infrastructure Advisory & Fund Mobilization.

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 visit the KMAMC
website www.kotakmutual.com/kmw/main.htm
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, please visit the KPEG

website www.privateequityfund.kotak.com

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
businesses.

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

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 2019 for
Kotak Jifi

 Recognised as Highest Fundraising Company in Corporate Challenge category in

Standard Chartered MuBBAi Marathon 2019

 Kotak Mahindra Bank was ranked 292nd among India's most trusted brands
according to the Brand Trust Report 2018, a study conducted by Trust Research
Advisory. In the Brand Trust Report 2018, Kotak Mahindra Bank was ranked 861st
among India's most trusted brands and subsequently, according to the Brand Trust
Report 2018, Kotak Mahindra Bank was ranked 114th among India's most trusted
brands.

 Adjudged Best Bank among Emerging Banks at Outlook Money Awards 2017

Banking

FY2018-19

Kotak Mahindra Bank Ltd. (KMBL)

Uday Kotak - Ernst & Young World Entrepreneur Of The Year Award 2019

Uday Kotak - 'Transformational Business Leader Award' at the AIMA Managing India

Awards 2019

Uday Kotak - 'Entrepreneur of the Decade' by BoBBAy Management Association (BMA)

Uday Kotak - Banker of the year 2019 by Businessworld magazine

Shanti EkaBBAram - Woman of the Year award in the Banking and Financial Services

category for 2013-2019 by IMC Ladies Wing

Shanti EkaBBAram - Among Business Today's Most Powerful Women in Indian Business

Best Bank in 2019 by Business India

Most Imminent Bank 2019 by Outlook Money

 Euromoney

Best Private Banking Services (India), 2019.

 ICAI Award

Excellence in Financial Reporting under Category 1 - Banking Sector for the year

ending 31st March, 2012

 Asiamoney

Best Local Cash Management Bank 2012

 IDG India

Kotak won the CIO 100 'The Agile 100' award 2011

 IDRBT

Banking Technology Excellence Awards Best Bank Award in IT Framework and

Governance Among Other Banks' - 2010

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, 2009

 FinanceAsia

Best Private Bank in India, for Wealth Management business, 2009

 Kotak Royal Signature Credit Card

Was chosen "Product of the Year" in a survey conducted by Nielsen in 2009

 IBA Banking Technology Awards

Best Customer Relationship Achievement - Winner 2008 & 2009

Best overall winner, 2007

Best IT Team of the Year, 4 years in a row from 2006 to 2009

Best IT Security Policies & Practices, 2007

 Euromoney

Best Private Banking Services (overall), 2009

 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 & Forfaiting Review awarded Kotak Mahindra Bank Ltd. the

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

2011.

 LACP Vision Awards 2010 for Annual Report 2010-11

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 100 Annual Reports

 Businessworld

'Most Valuable CEO' overall, 2010 awarded to Mr. Uday Kotak, Executive Vice

Chairman & Managing Director

 CNBCTV 18

'Best Performing CFO in the Banking/Financial Services sector by CNBCTV 18

CFO Awards 2010 awarded to Mr. Jaimin Bhatt

 GIREM

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

2009
  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

10th Best Employer in India, 2007, 2008 & 2009

 Financial Insights Innovation Award

Best Innovation in Enterprise Security Management in the Asia Pacific Region, 2009

 Frost & Sullivan

Best Passenger Vehicle Finance Company in India, 2006

 CNBC TV 18

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, an 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:

Market Scrip
Sr.NoName & Address of Stock Exchange Code

The BoBBAy Stock Exchange Limited

Phiroze Jeejeebhoy Towers
1 500247
Dalal Street, Fort,
MuBBAi 400 023

National Stock Exchange of India Limited

Exchange Plaza, 5th Floor,
2 KOTAKBANK
Bandra-Kurla Complex,
 Bandra, MuBBAi 400 051

Luxembourg Stock Exchange BP 165, L-2011

3
Luxembourg
Trading of shares to be in compulsorily dematerialized form:The 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

INE237A01028.

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,

Karvy Computershare 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 Computershare 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 5:30 p.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
competencies in three areas:

 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.

 CHAPTER-IV
DATA ANALYSIS AND INTERPRETATION
INTRODUCTION: These chapter analysis the data gathered from the company.

Different ratios are calculated and analysed.

Size and growth of current assets and liabilities and Net working capital of

TABLE NO: 4.1

Kotak Mahindra during the period 2010-17 to2018-
19. (All amounts are in Cr)

Curre Growth Rate Net

Year nt Growth Current (%) W.C
Assets Rate (%) Liabilities

2010- 31800. 10 23803.0

11 29 0 6 100 7997.23
2012- 41713. 29197.7
13 78 131.174213 5 122.663851 12516
2014- 52158. 125.038153 32664.9 111.874751 19493.2
15 14 1
2016- 55487. 36584.6
17 68 106.383548 5 111.999849 18903
2018- 72423. 58092.1
19 07 130.520991 5 158.788317 14330.9

GRAPH NO: 4.1

80000

70000

60000

2010-
50000 11

2012-
13
40000
30000
2014-
15
2016-
17
 20000 Interpretation:
2018-
The Current assets
19 and the current
10000
liabilities of Kotak Mahindra are In the
increasing stage but at the
financial year 2018-2019 it is in the
0 decreasing stage because of
Current Growth Curre Growth Net
increasing in the current
liabilities nt W.C and the growth rate is 130.52.
The net Assets Rate (%) Liabili Rate (%) working capital is also in the
increasing stage. ties
TABLE: 4.2

WORKING CAPITAL TURNOVER RATIO

(All amounts are in Cr)

Year
Networking
Sales(Income) Capital Ratio

2010-11 4811.12
7997.23 0.601598
2012-13 7028.66
12516.03 0.561573
2014-15 9203.15
19493.20 0.472121
2016-17 10166.83
18903.03 0.537841
2018-19 11748.32
14330.92 0.8197882

GRAPH NO:4.2

Turnover Ratio:
Debtors Turnover Ratio expresses the relationship between debtors and sales. A high
Debtors Turnover Ratio or low Debt collection period is indicative of sound credit
management policy.
TABLE NO:4.3

shows Debtors Turnover Ratio of Kotak Mahindra. During 2010-11 to 2014-15.

Net Credit
Year Sales(Income) Avg. Debt Ratio
2010-11 4811.12 40984.92
0.117388
2011-12 7028.66 55132.04
0.127488
2013-14 9203.15 71439.39
0.128824
2016-17 10166.83 71967.91
0.141268
2018-19 11748.32 87010.02
0.135022

GRAPH NO:4.3
DEBTORS TURNOVER RATIO 2018-19

Ratio

2010-11 2011-12 2013-14 2016-17 2018-19

From the above table, it is observed that the Kotak Mahindra debtor’s turnover ratio
shows a good sigh. The company noted a maximum ratio of 14.12 in the year 2014-15
and the minimum ratio in the year of 2016-17 is 11.73. present year i.e on 2018-19 is
13.50.

If we observed the above table the ratio is increasing the is 11.73 in the year 2016-
17 in the year but it is decreased in the year 2018-19. It shows a good sign for the
company.
Current Ratio:

It is the ratio of the current assets current liabilities this ratio is used to know the
company’s ability to meet its current obligations. The standard norm for the current ratio is
2:1

Current ratio = current Assets / Current liabilities.

TABLE NO :4.4
Table showing current ratio of Kotak Mahindra Ltd during the period 2010-17 to
2018-19

(All amounts are in Cr)

Current
Year Assets Current Liabilities Ratio

2010-11 31800.29 23803.06

1.335975

2012-13 41713.78 29197.75

1.428664

2014-15 52158.14 32664.91

1.596763

2016-17 55487.68 36584.71

1.516690

2018-19 72423.07 58092.15

1.246692
It is observed that the Kotak Mahindra current rationing a increasing trend; the company’s
liquidity position is satisfactory

The current ratio increased slightly up to 2011-12 is 1.42. But in 2010-11 it declined
because of increase in current liabilities, and then it started to decrease further in2018-19 as
0.33. if the company maintains to increase the ratio it can meet obligations.

Quick Ratio:
Quick ratio is relation between quick assets and current liabilities. The term quick assets,
which can be converted into cash with a short notice. This category also includes cash bank
balances short – term investments and receivables.

Quick ratio = Quick Assets / current liabilities

TABLE NO:4.5
Table showing quick ratio of Kotak Mahindra during the period
2010-11 to 2014-15
Year Quick Assets Current Liabilities Ratio

2010-11 31800.29 23803.06 1.335975

2012-13 41713.78 29197.75 1.428664

2014-15 52158.14 32664.91 1.596763

2016-17 53987.54 36584.71 1.475685
2018-19 62548.67 58092.15 1.076714

It is observed that the Kotak Mahindra current rationing a increasing trend; the company’s
liquidity position is satisfactory

The current ratio increased slightly up to 2010-11 is 1.33. But in 2016-17 it declined
because of increase in current liabilities, and then it started to decrease further in2018-19 as
1.07. if the company maintains to increase the ratio it can meet obligations
TABLE NO:4.6
Composition of current Assets
(all the amounts are in Cr)

2010- 2014-
Particulars 11 2012-13 15 2016-17 2018-19 Avg.

71439.3
Sundry 40984.92 55132.04 9 71967.91 87010.02 326534.28
Debtors

Cash 2107.7
and 2 2016.49 2207.90 2,948.23 3928.30 13208.64
Balance with
RBI
Advanc 48468.9
es 29329.31 39079.23 8 53,027.63 66160.71 236065.86

Balance with 363.26 618.06 1481.26 3,031.66 2334.06 7828.3

bank

72785. 123597. 159433.0

Total 2 96845.8 5 130975.43 9
The income statement is also called as income statement, it is considered to be the most
useful of all financial statements. It prepared by a business concern in order to know the
profit earned and loss sustained during a specified period. It explains what as happened to a
business as a result of operations between two balance sheet dates. For this purpose it
matches the revenues and cost incurred in the process of earning revenues and shows the net
profit earned or loss suffered during a particular period.

The nature of Income which is a focus of the income statement can be well understood if
business is taken as an organization that uses “Input” to produce “Output”. The output of the
goods and services that the business provides to its customers. The values of these outputs
are the goods and services that the business provides to its customers. The values of these
outputs art the amounts paid by the customers for them. These amounts are called
“revenues” in the accounting. The inputs are the economic resources used by the business in
providing these goods and services. These are termed “expenses” in accounting.

The comparative balance sheet analysis is the study of the same items, group of items and
computed items in two or more balance sheets of the same enterprise on different dates. The
changes in periodic balance sheet items reflect the conduct of a business. The changes can
be observed by comparison of the balance sheet at the beginning and at the end of a period
and these changes can help in informing an opinion about the progress of and enterpris

Working capital turnover ratio Of Kotak Mahindra limited

Implementing an effective working capital management system is an excellent way
for many companies to improve their earnings. The two main aspects of working
capital management are ratio analysis and management of individual components of
working capital.
TABLE NO:4.7

Working capital turnover ratio 2019

Working capital turnover ratio 2018 2019
Total current Assets
71967.91 87010.02
Sundry Debtors
Cash and Balances with RBI 2,948.23 3928.3
Balance with Bank 3,031.66 2334.06
Advances 53,027.63 66160.71

130975.4
3 159433.09
Total
Total Current Liabilities

Borrowings 12,895.58 12149.71

Other Liabilities 3,333.82 4857.97
Contingent Liabilities 46,903.54 68092.15

63,132.94 85099.83
Total

67842.49 74333.26
Net working capital
6490.7
Increase\decrease in net working capital 7
GRAPH NO:4.7

1800
00
1600
00
1400
00
1200
00
1000
00
8000
0
6000
0
4000 Р
0 я
д
2000 1
0
Р
я
д
0 2
Ряд3

Interpretation:The networking capital of Kotak Mahindra has been increased to 6490.77

Cr the financial position i.e. the performance of Kotak Mahindra has increased and the
current assets defects its current liability.
TABLE NO:4.8

Working capital turnover ratio Of Kotak Mahindra limited

Working capital turnover ratio 2019

Working capital turnover ratio 2018 2019
Total current Assets
71439.39 71967.91
Sundry Debtors
Cash and Balances with RBI 2207.90 2,948.23
Balance with Bank 1481.26 3,031.66
Advances 48468.98 53,027.63

123597.5
3 130975.43
Total
Total Current Liabilities

Borrowings 20410.62 12,895.58

Other Liabilities 2789.81 3,333.82
Contingent Liabilities 42117.47 46,903.54

65317.90 63,132.94
Total

58279.63 67842.49
Net working capital
9562.8
Increase\decrease in net working capital 6
 GRAPH NO:4.8
WORKING CAPITAL TURNOVER RATIO 2013-14

1400
00
1200
00
1000
00
8000
0
6000
0
4000
0
2000 Р
0 я
д
1
0 Р
я
д
2

Interpretation:
The networking capital of Kotak Mahindra has been increased to 9562.86 Cr the financial
position i.e. the performance of Kotak Mahindra has increased and the current assets defects
its current libility
TABLE NO:4.9

Working capital turnover ratio 2019

Working capital turnover ratio 2018 2019
Total current Assets
55132.04 71439.39
Sundry Debtors
2016.49 2207.90
Cash and Balances with RBI
618.06 1481.26
Balance with Bank
39079.23 48468.98
Advances

96845.82 123597.53
Total
Total Current Liabilities

Borrowings 16595.52 20410.62

Other Liabilities 2553.67 2789.81
Contingent Liabilities 17319.52 42117.47

36468.71 65317.90
Total

60377.11 58279.63
Net working capital
2097.4
Increase\decrease in net working capital 8
GRAPH NO:4.9
WORKING CAPITAL TURNOVER RATIO 2012-13
25000

20000

15000

Ряд1

Interpretation:
The networking capital of Kotak Mahindra has been decreased to 2097.48 Cr the financial
position i.e. the performance of Kotak Mahindra has increased and the current assets
defects its current liability.
TABLE NO:4.10

Working capital turnover ratio 2019

Working capital turnover ratio 2018 2019
Total current Assets
40984.9
2 55132.04
Sundry Debtors
2107.72 2016.49
Cash and Balances with RBI
363.26 618.06
Balance with Bank
29329.3
1 39079.23
Advances

72785.2
1 96845.82
Total
Total Current Liabilities

11723.9
Borrowings 5 16595.52
Other Liabilities 3032.36 2553.67
12291.3
Contingent Liabilities 0 17319.52

27047.6
1 36468.71
Total

45737.6 60377.11
Net working capital
14639.5
Increase\decrease in net working capital 1
GRAPH NO:4.10
WORKING CAPITAL TURNOVER RATIO 2019

120000

100000

80000

60000

Interpretation:
The networking capital of Kotak Mahindra has been increased to 60377.11 Cr the financial
position i.e. the performance of Kotak Mahindra has increased and the current assets
defects its current liability.
TABLE NO:4.11

Working capital turnover ratio 2019

Working capital turnover ratio 2018 2019

Total current Assets
30026.98 40984.92
Sundry Debtors
2085.67 2107.72
Cash and Balances with RBI
214.59 363.26
Balance with Bank
20775.05 29329.31
Advances

53102.29 72785.21
Total
Total Current Liabilities

Borrowings 6140.51 11723.95

Other Liabilities 2869.42 3032.36
Contingent Liabilities 4156.15 12291.30

13166.08 27047.61
Total

39936.21 45737.6
Net working capital
5801.3
Increase\decrease in net working capital 9

Interpretation:
The networking capital of Kotak Mahindra has been increased to 45737.60 Cr the financial
position i.e. the performance of Kotak Mahindra has increased and the current assets
defects its current liability.
 CHAPTER-V

FINDINGS, SUGGESTIONS & CONCLUSIONS

 FINDINGS :

1. The Kotak Mahindra net working capital is satisfactory between the years 2014-19

since it shows increasing trend ; but after that it is in declining position.

2. The current ratio of Kotak Mahindra is satisfactory during the period of study 2016-

17 to 2018-19. It is increased but after that it is declining.

3. The average quick ratio of Kotak Mahindra is not good though the quick ratio is

showing maximum value of 1.07 in the year 2018-19 and then it is declining to be

deal.

4. Fixed assets turnover ratio of Kotak Mahindra increased. The company has to

maintain this.

5. Inventory turnover ratio of Kotak Mahindra is also increased gradually, without any

fit falls up to 2016-17. In the year 2018-19 it is inclined, and again it has increased

in the year 2018-19. Good inventory management is good sign for efficient

management

6. Total Assets turnover ratio of Kotak Mahindra is not satisfactory because it is

always below one, except in the year 2018-19 having a value of 5.67

7. Return on investment is not satisfactory. This indicates that the company’s funds are

not being utilized in a better way.

CONCLUSIONS

1. The Kotak Mahindra Net Profit Ratio is showing profit in the year 2018-19 These

event is an expected one because since from the previous two years it is showing the

decline stage in Net Profit Ratio.

2. Profit Margin of Kotak Mahindra is decreasing and showing negative profit because

there is increase in the price of banking services.

3. The Kotak Mahindra Net Working Capital Ratio is satisfactory.

4. The Kotak Mahindra return on Total Assets ratio shows a negative sign in the year

2018-19

5. The Operating Ratio of Kotak Mahindra increase in the year 2018-19, in the year

2016-17 and reached in the year 2018-19 So the company has to reduce its operating

costs.

6. The Operating Ratio of Kotak Mahindra satisfactory. Due to increase in cost of

production, this ratio is decreasing. So the has to reduce its office administration

expenses
SUGGESTIONS

1. Improve position funds should be utilized properly.

2. Better Awareness to increase the sales is suggested.

3. Cost cut down mechanics can be employed.

4. Better production technique can be employed.

5. The investment on raw material should be made as per the requirement. Unnecessary

investment may block up the funds.

6. Neither too high nor too low inventory turnover ratios may reduce profit and

liquidity position of the industry. So, proper balance should be made to increase

profits and to ensure liquidity.

7. The raw material should be acquired from the right source at right quality and at

right cost.

8. The process that was being used by Kotak Mahindra Group with the purchasing

department should undergo changes; so that, it seeks enhance the celerity of the

delivery of a product without compromising its quality by improving the utilization

of materials, labor and equipment.

BIBLIOGRAPHY
 BIBLIOGRAPHY
BOOKS
L.M Pandey (1995) Financial management vikas publishers seventh revised edition pp 855-
871

Shashi k guptha (2011) Financial management seventh revised enlarged edition pp 22.1 -
23.55

l.m pandey (2005) financial managemen t ninth edition pp 577-658

Annual reports of Kotak Ltd: 2018-2019.

www.kotak.com

www.bankingindia.com

www.evanimics.com

www.damodaram.com

www.investopedia.com

www.valuebasedmanagement.net