The Directors present their Twenty Sixth Annual Report together with
 the audited accounts of your Bank for the year ended 31st March 2011.
 
 FINANCIAL HIGHLIGHTS
 
 (A) Kotak Mahindra Bank Limited – Consolidated financial highlights:
 
                               31st March 2011      31st March 2010
                                 Rs. crore                Rs. crore
 
 Total income                    11,029.27            10,053.30
 
 Total expenditure, excluding 
 provisions and contingencies     8,634.27             7,639.71
 
 Operating Profit                 2,395.00             2,413.59
 
 Provisions and contingencies, 
 excluding provision for tax        147.60               510.73
 
 Profit before tax                2,247.40             1,902.86
 
 Provision for taxes                678.16               575.50
 
 Profit after tax                 1,569.24             1,327.36
 
 Less: Share of minority interest    26.36                18.00
 
 Add: Share in profit of Associates  23.86                (2.36)
 
 Consolidated profit for the
  Group                           1,566.74             1,307.00
 
 Earnings per Equity Share 
 Basic (Rs.)                           21.73                18.84
 
 Diluted (Rs.)                         21.60                18.64
 
 (B) Kotak Mahindra Bank Limited – Standalone financial highlights:
 
                                 31st March 2011   31st March 2010
                                    Rs. crore           Rs. crore
 
 Total Income                       4,936.60          3,883.86
 
 Total expenditure, excluding 
 provisions and contingencies       3,611.81          2,586.86
 
 Operating Profit                   1,324.79          1,297.00
 
 Provisions and contingencies, 
 excluding tax provisions             137.09            485.89
 
 Profit before tax                  1,187.70            811.11
 
 Provision for taxes                  369.52            250.00
 
 Profit after tax                     818.18            561.11
 
 Add: Surplus brought forward from 
 the previous year                    965.91            648.94
 
 Amount available for appropriation 1,784.09          1,210.05
 
 Appropriations:
 
 Statutory Reserve under Section 17 
 of the Banking Regulation Act, 1949  204.55            140.28
 
 General Reserve                       40.91             28.06
 
 Transfer to / (from) Investment 
 Reserve Account                      (26.83)             1.19
 
 Transfer to Capital Reserve            0.69              6.96
 
 Transfer to Special Reserve           29.00             40.00
 
 Proposed Dividend                     36.88             29.66
 
 Corporate Dividend Tax                 4.37             (2.01)
 
 Surplus carried to Balance Sheet   1,494.52            965.91
 
 DIVIDEND
 
 Your Directors are pleased to recommend a dividend of Rs. 0.50 per equity
 share of the face value of Rs. 5 each (previous year Rs. 0.85 per equity
 share of the face value of Rs.10 each), entailing a payout of Rs. 41.25
 crore including dividend distribution tax (previous year Rs. 27.65
 crore). The dividend would be paid to all the shareholders, whose names
 appear on the Register of Members/Beneficial Holders list on the Book
 Closure date.
 
 CAPITAL
 
 Pursuant to the approval granted by the Members at an Extraordinary
 General Meeting held on 27th July 2010 and receipt of other necessary
 approvals, in August 2010 your Bank allotted 1,64,00,000 equity shares
 of face value of Rs.10/- each to Sumitomo Mitsui Banking Corporation, a
 public company registered under the laws of Japan on a preferential
 basis at a price per equity share of Rs. 833/- for a total consideration
 of Rs. 1366.12 crore.
 
 In September 2010, each equity share of your Bank having a face value
 of Rs. 10 was subdivided into two equity shares of the face value of Rs. 5
 each.
 
 During the year, your Bank has also allotted 77,88,550 equity shares
 (adjusted for stock split number) arising out of the exercise of
 Employee Stock Options granted to the employees and Executive Directors
 of the Bank and its subsidiaries.
 
 Post allotment of equity shares and sub-division of equity shares as
 aforesaid, the issued, subscribed and paid-up Share Capital of the Bank
 stands at Rs. 368.44 crore comprising of 73,68,71,504 equity shares of Rs.
 5 each.
 
 The Bank has a Capital Adequacy Ratio (CAR) under Basel II as at 31st
 March 2011 of 19.92% with Tier I being 17.98%. At a consolidated level
 the CAR was 19.46% under Basel II.
 
 During the year, your Bank has not issued any Capital under Tier II. As
 on 31st March 2011, outstanding Unsecured, Redeemable Non- Convertible,
 Subordinated Debt Bonds was Rs. 465.70 crore and outstanding Unsecured,
 Non-Convertible, Redeemable Debt Capital Instruments Upper Tier II
 stood at Rs. 336.68 crore.
 
 OPERATIONS
 
 Your Bank worked on a very balanced expansion plan of the network and
 added 72 branches and 246 ATMs and ended the year with 321 Branches and
 710 ATMs, and thereby increasing the presence to 183 locations. Your
 Bank added over half a million new customers this year across core
 banking products of savings and checking account, term deposits,
 overdrafts and non resident accounts.
 
 The robustness of the network manifested in the healthy growth in
 demand and time liabilities. The momentum gained last year in terms of
 distribution of asset products from the network continued in the
 current year. The initiatives launched last year on higher end segment
 of customers through a branded programme titled Privy League
 continued to show encouraging results. Your Bank maintained its
 ambition of becoming a bank of choice for the small and mid segment
 business enterprises and doubled the base of customers engaging in
 trade and foreign currency transactions. The increased network of ATMs
 benefitted your Bank by bringing in much higher usage from non
 customers and growing the interchange income manifold.
 
 Your Bank continued to put significant focus in reaching out to the NRI
 community last year. Lot of path breaking initiatives were rolled out.
 Many alliances were signed with leading exchange houses across Gulf
 countries to provide channels for attracting inward remittances.
 Through the strategic partnership with OIFC (Overseas India
 Facilitation Centre) your Bank participated in 3 global meets in Dubai,
 London and Birmingham which has firmly established your Bank as a key
 service provider with the NRI community. This alliance further helped
 your Bank to engage another 30 sub-alliances enabling the growth in
 business thru NRIs. Your Bank also reached out to a larger canvass of
 NRI customers by launching a variant to savings account targeted for
 the mid-income segment, P.O. Box facility in USA & UK. Your Bank
 launched a new remittance solution under the brand name Click2Remit.
 This is a multi currency platform and customers can send money into
 India from anywhere in the world in 8 different currencies. Your Bank
 also launched a credit card for the NRI customers and started the Home
 Loan product for NRIs in select markets. To provide higher convenience
 to the NRI customer your Bank launched a unique service called
 Click2Call & SMS2Call wherein the Bank calls back the customer within
 30 minutes of receiving the intimation. Your Bank focussed on the
 online space including social media engagement through a partner portal
 called NRIMatters.com; NRI Power Podium campaign which got 13000 NRI
 signups in one month and found its way into India Book of Records. The
 number of hits on the NRI website today stands at 150000 per month, up
 from 2000 per month last year.
 
 Your Bank implemented several initiatives aimed towards enhancing
 customer service and widening the product/ services bouquet. Some of
 the key ones being:
 
 - Annual Combined Statement on Net Banking - Customers can now view and
 download their Annual Combined Statement for Savings and Current
 account, Investment and Demat holdings for the previous financial year.
 This will help customers to file Tax Returns, apply for loan etc.
 
 - Card Protection Plan – Your Bank in association with CPP Assistance
 Service Pvt. Ltd. offers card protection to protect all Kotak customers
 cards (Credit, Debit, ATM etc) against loss and resultant fraud.
 
 - Multilingual ATMs - Multilingual (English, Hindi and Marathi) on all
 ATMs in Maharashtra has gone live. Other regional languages will get
 covered during the course of next fiscal year.
 
 - Recharge Services - This enables customers to recharge their pre-paid
 mobile and DTH services through Kotak Net Banking using Kotak Bill Pay.
 
 - Statement Registration on Net Banking - Customers now have the option
 to register for their preferred statement frequency and mode option on
 Net Banking.
 
 - Your Bank has also taken steps to participate in the eco drive. An
 E-Statement campaign was run through the year aiming to convert the
 customers who have registered for monthly physical statements &
 quarterly physical statements to register for monthly E-Statements with
 the theme of Save Trees, Save the Environment! Say no to Physical
 Statements.
 
 - Interbank Mobile Payment Service – This feature allows customers to
 transfer money instantly through mobile phone within own accounts &
 third party accounts within the IMPS member banks.
 
 - Kotak Stock Ace - This is loan (overdraft) against securities
 product. Under this product your Bank provides an overdraft to
 customers against equity shares and mutual funds.
 
 The last year saw several regulatory changes in the third party
 investment and insurance products space. While these regulatory
 interventions put a significant amount of revenue pressure your Bank
 recognises the opportunity to create a well differentiated business if
 it is able to create a more robust platform to advise its customers.
 Hence significant focus was put to creating processes with an objective
 to bring maximum transparency in the Banks sales process of these
 products and to bring more internal accountability to ensure
 appropriateness of sale as per customer suitability and risk profile.
 Your Bank believes that its customers will benefit from such stringent
 internal standards and in the long run it will be able to build a
 sustainable and robust business model around these processes.
 
 Your Bank has always focussed on its employees as the key to building a
 sustainable franchise and has in the past won several awards as one of
 the best employers. Continuing with this emphasis your Bank launched an
 E-Learning platform for employees which again won accolades in the IBA
 Technology Awards. This platform enabled your Bank to introduce courses
 in real time. It also has features of individual learning plans, chat
 facilities to enable trainers and trainees to interact online, video
 streaming facility, online completion status tracking, etc. Your Bank
 believes this will improve the quality of training inputs and will
 result in raising the service standards.
 
 Your Bank took definitive steps towards risk control. These include set
 up of - N Vigil (Internal Cameras) in all the ATMs. This will ensure
 that the Bank has images of the customers who did the transactions at
 all times and can also facilitate during fraud investigations or
 customer complaints. A dedicated Risk Containment Unit has been put in
 place to do pre-on-boarding checks and transaction level checks to
 ensure conformity to AML guidelines and fraud prevention etc.
 
 Your Bank continued its in-depth coverage and servicing of large and
 mid market corporate clients during the year. Your Bank was able to
 build significant franchise with many well known, reputed large
 corporate groups during this year while focusing on deepening existing
 clients through an array of customized and regular product offerings.
 
 The year saw a strong trend in credit demand from the corporate and mid
 market business segments both for working capital and term facilities.
 This is in keeping with the strong underlying economic growth. Your
 Bank was able to tap this opportunity and increase its share of
 business by offering a variety of products and services.
 
 Your Bank added 160 new cash management service customers during the
 year by offering them technology driven working capital cycle
 enhancement & efficiency solutions to effectively enrich and optimize
 their cash flows and liquidity through an entire suite of CMS products
 and services. This has been made possible through constant innovation,
 continuous feedback sessions and a high degree of customization to
 cater to the dynamic and evolving industry scenario.
 
 Your Banks dedicated team of product solution experts strives to
 provide systemic structured solutions to suit to the customers needs.
 The in- depth understanding of the customers business and the superior
 delivery models has helped in achieving high levels of customer
 satisfaction.  The Commercial Vehicle and Infrastructure sectors
 continued the growth momentum through the year aided by the positive
 IIP (Index of Industrial Production) and Agriculture growth numbers.
 Commercial Vehicle operator margins improved as a result of higher
 freight realisations, which offset the increase in diesel cost. The
 growth in the core sector and focus on infrastructure led to a healthy
 growth in the order book position of contractors in the Infrastructure
 space. As a result, disbursement numbers touched record levels as did
 the bottom line.  The year also saw good growth in bank lines in both
 the sectors.
 
 The monsoon has been more than adequate this year. However the impact
 of the growing economy and increasing purchasing power of the rural
 population has meant a steep rise in prices of all agro commodities.
 Riding this boom the Agri Business of your Bank has shown a robust
 growth with the total portfolio slated to cross Rs. 4300 crore this year,
 up from last years portfolio of Rs. 3200 crore. This is a growth of 35%
 year-on-year. Your Bank also ensured to reach the targeted norms for
 lending to the Agri sector as laid out by the regulator for the second
 year running.
 
 The Agri business rode on an impressive growth in the tractor loans,
 commodity funding which doubled in portfolio size and an impressive
 growth in the working capital facilities to agro-processing sector.
 Delinquency levels in this portfolio have also been at all time lows
 and are even better than some of the other urban oriented advances
 indicating the financial strength of clients associated with
 agriculture who are riding the commodity price boom.
 
 The Agri business has also become the corner stone for your Banks
 targets for meeting financial inclusion and lending to the weaker
 sections of the society such as small and marginal farmers, village
 artisans and other socially deprived sectors identified by the
 government. These advances now have crossed a level of 8% of your
 Banks total advances. Your Bank is in the process of identifying more
 target segments in this sector to reach out to.
 
 In the Home Finance business while there was strong growth in the first
 half of the year, the second half of the year saw stabilisation and
 slight drop in demand from customers. Your Bank introduced innovative
 new products during the year such as part tenure fixed home loans and
 loan against property. Your Bank branches continued to play an
 important part and evolved into a stable contributor month on month.
 There was an increased focus on existing Bank customers and their
 contribution among the secured asset products went up.
 
 The Personal Finance business saw good growth and established your Bank
 as one of the leading lenders of unsecured loans in the market.
 High-ticket products continued to be the focus and were the biggest
 contributor to the overall volumes. The Personal Finance business also
 added new products to their existing bouquet of financial services for
 businessmen. Working capital products in Rs. 50 lacs to Rs. 1.5 crore range
 (both fund based as well as non-fund based) were some of the new
 offerings.
 
 Your Bank resolved several NPA accounts pertaining to stressed assets
 acquisition. Supreme Court upheld the NPA assignment between banks and
 other financial institutions. This landmark judgment will further help
 in resolving several NPA accounts, which were litigated in several
 courts for the past few years. The NPA portfolio sale by banks
 continued to be sluggish and the serious pricing mismatch between the
 buyers and sellers continued, this year as well.
 
 Your Bank continued to invest in large single asset transactions, with
 good prospects of turnaround in stressed companies. Further, your Bank
 has diversified in buying large retail NPA loans from other banks.
 
 During the year, your Bank saw a robust growth in its overall advances
 portfolio. This was primarily driven by the overall growth of the
 corporate sector, spurred by strong domestic consumption demand for
 their products post the recessionary period. A robust NPA management
 practice and strong internal controls, aided by a strong economic
 growth, has led to a reduction in your Banks gross/net NPAs.
 
 On Treasury side, your Bank has an active proprietary desk trading in
 all products such as Fixed Income, Money Markets, Derivatives, Foreign
 Exchange and Bullion. The Treasury plays an important role in balance
 sheet management and implementation of Funds Transfer Price between
 various business units. In the area of Debt Capital Markets (DCM) your
 Bank offered the following products: syndication of loans, bonds,
 mezzanine financing, promoter funding and acquisition financing and
 securitisation. During the year, your Banks Treasury started
 Correspondent Banking Division to build and leverage on relationships
 with offshore banks for improving quality and international reach for
 its customers.
 
 Your Banks credit card business has issued 1.5 lac cards and is in its
 third year of operations. The card design and product benefits have
 received overwhelming response from customers. The customer spends
 across all variants of cards have been amongst the top three in
 industry. The premium range of our products – VISA Platinum and VISA
 Signature have driven the spends growth in the portfolio and it
 contributes to 34% of the spends while accounting for 12% of customer
 base. This has reaffirmed the customer acceptability of the product.
 Credit card business clocked Rs. 600 crore of total spends in the year
 with a book size of Rs. 300 crore. Industry credit cards spends has shown
 sign of growth after last years recessionary economic conditions.
 
 Your Bank entered into a strategic arrangement with PVR Cinemas, one of
 the elite name in entertainment industry, to distribute credit card
 products aimed at upmarket customers. This partnership opens up the
 opportunity to tap new customer segment hitherto untapped by your Bank.
 
 Your Banks technology team concentrated on innovation to provide new
 products and conveniences to the customers. This ranged from mobile to
 mobile payments (IMPs) to providing ATMs at remote locations on an air
 card.
 
 System upgrades for continuous improvement in customer experience were
 a focus. The excellence of the CRM and Call Center which were rolled
 out across the Kotak Group, were recognized by awards from the Indian
 Banking Association and Asian Bankers Technology Summit respectively.
 
 In preparation of the planned Core Banking upgrade, the technology
 foundation has been enhanced. Service Oriented Architecture was
 introduced with the use of a world class product for system
 integration. Standard frameworks for digitization and internal
 development expedite deployment of new systems.
 
 SUBSIDIARIES
 
 Your Banks subsidiaries are established players in the different areas
 of financial services, viz. car finance, investment banking, stock
 broking, asset management and life insurance.
 
 While the Indian economy continued its growth path the businesses in
 which the subsidiaries operate had its own share of challenges on
 account of market fragmentation, change in market mix, dramatic
 regulatory changes and the like.
 
 Kotak Mahindra Prime Limited, the car finance company continues to have
 robust growth in lending coupled with fall in delinquencies. Kotak
 Securities Limited, the stock broking company continued to face adverse
 effects of changes in mix in market volumes shifting to the low-yield
 equity derivative segment. The company also continues to face
 competition in the market place due to continuous entry of new players.
 Kotak Mahindra Capital Company Limited had a relatively better year,
 thanks to handling primary issues. But nevertheless, the investment
 banking industry continues to face pressure. Kotak Mahindra Asset
 Management Company Limited faced an outflow of a large portion of
 liquid funds.  Coupled with changes in regulations in the mutual fund
 industry it had to tweak its business strategy. Kotak Mahindra Old
 Mutual Life Insurance Limited had to deal with regulatory changes that
 changed the direction of the industry. Business strategy, product mix
 and management of costs had to be continuously worked upon to stay on
 course. Due to range bound secondary equity markets and net outflows in
 many India dedicated International funds, the International
 subsidiaries reported drop in profits.
 
 The various activities of the subsidiaries are outlined in the
 Management Discussion and Analysis section appended to this Report.
 
 In terms of the general exemption granted by the Central Government
 vide their General Circular No.2/2011 dated 8th February 2011 under
 Section 212(8) of the Companies Act, 1956, abridged Annual Report which
 consists of the financial statements of your Bank on standalone basis
 as well as consolidated financial statements of the group for the year
 ended 31st March 2011, have been sent to all the members of the Bank.
 It does not contain Annual Reports of the Banks subsidiary companies.
 The Bank will make available full Annual Report (including the Annual
 Reports of all subsidiaries) upon request by any member of the Bank.
 These Annual Reports will be available on the Banks website viz. URL :
 http://ir.kotak.com/annual-reports and will also be available for
 inspection by any member at the Registered Office of the Bank.
 
 CORPORATE GOVERNANCE
 
 Pursuant to Clause 49 of the Listing Agreement with the Stock
 Exchanges, a separate section entitled Corporate Governance has been
 included in this Annual Report. The Bank has implemented number of
 recommendations given in the Corporate Governance Voluntary Guidelines
 2009 by the Ministry of Corporate Affairs and is examining the
 possibility of implementing the remaining recommendations.
 
 DIRECTORS
 
 Mr. Asim Ghosh retires by rotation at the Twenty Sixth Annual General
 Meeting and is eligible for re-appointment.
 
 Mr. Prakash Apte and Mr. Amit Desai were appointed with effect from
 18th March 2011 and Mr. N.P. Sarda with effect from 1st April 2011 as
 Additional Directors of the Bank. Pursuant to the proviso to Section
 260 of the Companies Act, 1956, they hold office as Directors up to the
 date of this Annual General Meeting but are eligible to be appointed as
 Directors. In terms of Section 257 of the Companies Act, 1956 the Bank
 has received notice in writing from members along with a requisite
 deposit of Rs. 500/- each proposing the candidature of Mr. Prakash Apte,
 Mr. Amit Desai and Mr. N. P. Sarda for their appointment as Directors.
 
 Mr. Prakash Apte is presently the Non-Executive Chairman of Syngenta
 India Limited with considerable experience in agricultural sector.  Mr.
 Amit Desai is an eminent professional with 30 years experience. Mr.
 N.P. Sarda is a Chartered Accountant for more than 40 years and past
 President of ICAI.
 
 Mr. Anand Mahindra, Mr. Cyril Shroff and Mr. Shivaji Dam have retired
 as Directors of the Bank effective 21st March 2011 due to completion of
 their eight years tenure pursuant to the provisions of Section
 10A(2A)(i) of the Banking Regulation Act, 1949. Your Directors place on
 record their appreciation for the valuable advice and guidance rendered
 by each one of them during their tenure as Directors of the Bank.
 
 The Board of Directors of the Bank, at its meeting held on 5th May
 2011, has re-appointed Mr. Uday Kotak as Whole-time Director of the
 Bank designated as Executive Vice-Chairman and Managing Director for a
 period from 22nd March 2012 to 31st December 2014, subject to the
 approval of the shareholders and of the Reserve Bank of India. Mr.
 Dipak Gupta and Mr. C. Jayaram have been re-appointed as Whole- time
 Directors of the Bank designated as Joint Managing Directors for a
 period from 1st January 2012 to 31st December 2014, subject to the
 approval of the shareholders and of the Reserve Bank of India. The
 approval of the shareholders in this regard is being sought at the
 ensuing Annual General Meeting of the Bank.
 
 AUDITORS
 
 Messrs S. R. Batliboi & Co., Chartered Accountants, auditors of your
 Bank, retire on the conclusion of Twenty Sixth Annual General Meeting.
 
 Pursuant to the guidelines issued by the Reserve Bank of India, an
 audit firm is allowed to continue as the Statutory Central Auditor of a
 bank for a continuous period of four years only. Accordingly, it is
 proposed to appoint, subject to regulatory approvals, Messrs S. B.
 Billimoria & Co., Chartered Accountants as the statutory auditors of
 the Bank for the current financial year in place of Messrs S. R.
 Batliboi & Co. who have completed four years as the statutory auditors.
 The approval of the shareholders in this regard is being sought at the
 ensuing Annual General Meeting of the Bank.
 
 STATUTORY INFORMATION
 
 The Companies (Disclosure of Particulars in the Report of Board of
 Directors) Rules, 1998, are not applicable to your Bank.
 
 EMPLOYEES
 
 The employee strength of your Bank along with its subsidiaries as of
 31st March 2011 was around 20,500 as compared to around 20,000
 employees a year ago.
 
 The Bank standalone had around 11,000 employees as of 31st March 2011.
 102 employees employed throughout the year and 23 employees employed
 for part of the year were in receipt of remuneration of Rs. 60 lacs or
 more per annum.
 
 Your Bank was adjudged amongst Top 25 in Indias Best Companies to Work
 For in 2010 by The Great Places to Work Institute and continues to be
 amongst Top 25 Best Employers in India consistently from 2007 till date
 as adjudged by the AON Hewitt Best Employers Survey.
 
 While your Bank and its subsidiaries continued to focus on various
 initiatives to provide the best employment experience to the employees,
 new and innovative products and processes were introduced to further
 enhance both quality and productivity of our human capital.
 Substantial investments were made in training and developing employees
 across levels to improve productivity, service quality, personal
 effectiveness and supervisory capability. Structured leadership
 development programs and customized courses in association with leading
 academic institutions were also rolled out to groom future leaders and
 build a talent pool that has depth in knowledge and competence.
 
 The best in class Talent Management practices and HR processes have
 enabled the organization to build a cadre of highly committed and
 engaged employees who consistently excel in delivering our customer
 value proposition.
 
 In accordance with the provisions of Section 217(2A) of the Companies
 Act, 1956 and the rules framed thereunder, the names and other
 particulars of employees are set out in the annexure to the Directors
 Report. In terms of the provisions of Section 219 (1)(b)(iv) of the
 Companies Act, 1956, the Directors Report is being sent to all the
 shareholders of the Bank excluding the aforesaid annexure. The annexure
 is available for inspection at the Registered Office of the Bank. Any
 shareholder interested in obtaining a copy of the said annexure may
 write to the Company Secretary at the Registered Office of the Bank.
 
 DIRECTORS RESPONSIBILITY STATEMENT
 
 The Directors, based on the representations received from the
 operational management, confirm in pursuance of Section 217 (2AA) of
 the Companies Act, 1956 that:
 
 (i) your Bank has, in the preparation of the annual accounts for the
 year ended 31st March 2011, followed the applicable accounting
 standards along with proper explanations relating to material
 departures, if any;
 
 (ii) they have selected such accounting policies and applied them
 consistently and made judgements and estimates that are reasonable and
 prudent so as to give a true and fair view of the state of affairs of
 the Bank as at 31st March 2011 and of the profit of your Bank for the
 financial year ended 31st March 2011;
 
 (iii) they have taken proper and sufficient care to the best of their
 knowledge and ability, for the maintenance of adequate accounting
 records in accordance with the provisions of the Act for safeguarding
 the assets of the Bank and for preventing and detecting fraud and other
 irregularities; and
 
 (iv) the annual accounts have been prepared on a going concern basis.
 
 ACKNOWLEDGEMENTS
 
 Your Directors would like to place on record their gratitude for the
 valuable guidance and support received from the Reserve Bank of India,
 Securities and Exchange Board of India, Insurance Regulatory and
 Development Authority and other Government and Regulatory agencies.
 Your Directors acknowledge the support of the shareholders and also
 wish to place on record their appreciation of employees for their
 commendable efforts, teamwork and professionalism.
 
 For and on behalf of the Board of Directors
 
 Dr. Shankar Acharya                                Place: Mumbai,
 
 Chairman                                     Date : 5th May 2011