Global Investment Opportunities Fund Limited. Bigger. Bolder. Better.

Transcription

1 Global Investment Opportunities Fund Limited Bigger. Bolder. Better.

2 Directors Report Commentary of the Directors to the Shareholders of GLOBAL INVESTMENT OPPORTUNITIES FUND LIMITED The Directors present their report and the audited financial statements of Global Investment Opportunities Fund Limited (the Company ) for the year ended 31 March Principal activities The principal objective of the Company is to seek capital appreciation by investing in portfolio of securities comprising principally of shares of companies incorporated in India and elsewhere and debt instruments. Results and dividend The directors do not recommend the payment of dividend for the year under review (2013: nil). Statement of directors responsibilities in respect of the financial statements The Board of Directors is responsible for the preparation and fair presentation of the financial statements, comprising the statement of financial position at 31 March 2014, statement of comprehensive income, statement of changes in net assets attributable to participating shareholders and statement of cash flows for the year then ended, and the notes to the financial statements, which include a summary of significant accounting policies and other explanatory notes, in accordance with International Financial Reporting Standards and the Mauritius Companies Act The Board of Directors responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of these financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. The Board of Directors has made an assessment of the Company s ability to continue as a going concern and has no reason to believe that the business will not be a going concern in the year ahead. Directors interests (a) (b) (c) (d) There are no service contracts in existence between the Company and any of its directors, nor are any such contracts proposed. None of the directors have any interests either beneficial or non-beneficial, in the share capital of the Company. There are no existing or proposed contracts of service between any of its directors and the Company. Deven Coopoosamy and Riad Aubdool are officers of Cim Fund Services Ltd. Deven Coopoosamy is Head of Marketing and Sales. Riad Aubdool is a Senior Manager at Cim Fund Services Ltd. Ruchit Puri, is a director of Kotak Mahindra (UK) Limited, Kotak India Focus Fund II, Kotak WM India Fund Limited, Indian Multi Cap Fund (Mauritius) Limited, Kotak International Funds, PCC, INDIA MIDCAP (MAURITIUS) LTD, India Infrastructure & Realty Fund (Mauritius) Ltd, INDIA BLUECHIP (MAURITIUS) LTD, K Fixed Opportunities Fund Ltd, Kotak India Consumption Fund and Kotak India Focus Fund. By Order of the Board CORPORATE SECRETARY Cim Fund Services Limited 33, Edith Cavell Street Port Louis Mauritius Date: 21st April, 2014 Annual Report

3 Independent Auditors Report To The Members of Global Investment Opportunities Fund Limited. The financial statements of Global Investment Opportunities Fund Limited (the Company ) as at 31st March, 2014, being a company registered in the Mauritius, are audited by KPMG, Licensed Auditors, Mauritius and we have been furnished with their audit report dated 16th April, We are presented with the accounts in Indian Rupees prepared on the basis of aforesaid accounts to comply with requirements of section 212 of the Companies Act We give our report hereunder: Report on the Financial Statements We have audited the accompanying financial statements of Global Investment Opportunities Fund Limited, which comprise the Balance Sheet as at 31st March 2014, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information. s Responsibility for the Financial Statements The Company s is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ( The Act ) read with the General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013 and in accordance with the accounting principles generally accepted in India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Company s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: (a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2014; (b) (c) in the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and in the case of the Cash Flow Statement, of the cash flows for the year ended on that date. Report on Other Legal and Regulatory Requirements In view of the facts specified in Para 1 and 2 herein above, the requirements of Companies (Auditor s Report) Order, 2003, report under section 227(3) of the Act, report on directors disqualification in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956 and payment of cess under section 441A of the Companies Act, 1956 are not applicable. For V.C. Shah & Co. Chartered Accountants Firm Registration No W A.N Shah. Place : Mumbai Partner Date : 22nd April, 2014 Membership No.: Global Investment Opportunities Fund Limited

4 Balance Sheet as at 31st March, 2014 Particulars Note No. As at 31st March 2014 As at 31st March 2013 ` ` ` ` ` ` I. EQUITY AND LIABILITIES 1 Shareholders funds (a) Share capital 3.1 9, , ,663 9,594 1,332,737 1,342,331 (b) Reserves and surplus 3.2 2,689 3,565,634,567 3,565,637,256 1,557 4,097,055,651 4,097,057,208 2 Current liabilities (a) Trade payables - 3,306,349 3,306,349-2,744,866 2,744,866 (b) Other current liabilities 3.3-2,308,850 2,308, , ,988 TOTAL 12,283 3,572,135,835 3,572,148,118 11,151 4,102,083,242 4,102,094,393 II. ASSETS 1 Current assets (a) Current investments 3.4-3,519,792,474 3,519,792,474-4,041,171,261 4,041,171,261 (b) Cash and bank balance ,283 52,343,361 52,355,644 11,151 58,477,842 58,488,993 (c) Other current assets ,434,139 2,434,139 TOTAL 12,283 3,572,135,835 3,572,148,118 11,151 4,102,083,242 4,102,094,393 Significant accounting policies and notes to the financial statements 2 & 3 In terms of our report of even date For V. C. Shah & Co. For and on behalf of the Board of Directors Chartered Accountants A. N. Shah Deven Coopoosamy Riad Aubdool Partner Director Director Mumbai Dated: 22 April, 2014 Dated: 21 April 2014 Annual Report

5 Statement of Profit and loss for the year ended 31st March 2014 Particulars Note No. As at 31st March 2014 As at 31st March 2013 ` ` ` ` ` ` I. Revenues from operations a) Writeback of Provision on investments - 294,672, ,672, ,070, ,070,735 II. Foreign Exchange gain - 2,292,062 2,292, III. Revenue (I + II) 296,964, ,964, ,070, ,070,735 IV. Expenses: Realised loss on sale of investments - 51,020,307 51,020,307-82,692,138 82,692,138 Foreign Exchange loss on investments - 137,126, ,126,322-84,100,779 84,100,779 Other expenses ,553,556 21,553,556-19,505,793 19,505,793 expenses - 209,700, ,700, ,298, ,298,710 V. PROFIT BEFORE TAX - 87,263,954 87,263,954-62,772,025 62,772,025 VI. Tax expense VII. PROFIT FOR THE PERIOD - 87,263,954 87,263,954-62,772,025 62,772,025 Significant accounting policies and notes to the financial statements 2 & 3 In terms of our report of even date For V. C. Shah & Co. For and on behalf of the Board of Directors Chartered Accountants A. N. Shah Deven Coopoosamy Riad Aubdool Partner Director Director Mumbai Dated: 22 April, 2014 Dated: 21 April Global Investment Opportunities Fund Limited

6 Cash Flow Statement for the year ended 31st March, 2014 Particulars Cash Flow from Operating Activities For the year ended 31st March, 2014 For the year ended 31st March, 2013 ` ` Net Profit before taxation 87,263,954 62,772,025 Adjustments for: - Net realised (gain)/loss on sale of investments 51,020,307 82,692,138 - Change in unrealised (gain)/loss on revaluation of investments (294,672,077) (249,070,735) - Dividend Income - Exchange Adjustments 433,067, ,281,008 Operating Profit before Working Capital Changes 276,679, ,674,436 Adjustments for: (Increase) / Decrease in Other current assets 2,434,139 (2,434,139) Increase / (Decrease) in Current Liabilities 1,358,862 (271,878) Increase / (Decrease) in Trade Payables 561, ,462 Cash Generated from Operations 281,034, ,087,881 Direct taxes paid NET CASH FLOW FROM OPERATING ACTIVITIES (A) 281,034, ,087,881 Cash Flow from Investing Activities Purchase of Investments (587,869,713) (1,014,071,569) Proceeds from sale of Investment 1,352,900,270 1,485,631,702 Dividend Income NET CASH FLOW FROM INVESTING ACTIVITIES (B) 765,030, ,560,133 Cash Flow from Financing Activities Proceeds from issue of shares 603,615, ,095,870 Redemption of shares capital (1,655,813,990) (1,202,955,679) NET CASH FLOW USED IN FINANCING ACTIVITIES (C) (1,052,198,122) (724,859,809) Net Increase in Cash and Cash Equivalents (A + B + C) (6,133,350) (59,211,795) Cash and Cash Equivalents at the beginning of the year 58,488, ,700,788 Cash and Cash Equivalents at the end of the year 52,355,644 58,488,993 Notes: (6,133,349) (59,211,795) 1. The Cash Flow Statement has been prepared under the Indirect Method as set out in the Accounting Standard -3 on Cash Flow Statements notified pursuant to the Companies (Accounting Standards) Rules, 2006, as amended. 2. Figures in brackets indicate cash outflow. 3. The previous year s figures have been re-grouped, wherever necessary in order to conform to current year s presentation. This is the Cash Flow Statement referred to in our report of even date In terms of our report of even date For V. C. Shah & Co. For and on behalf of the Board of Directors Chartered Accountants A. N. Shah Deven Coopoosamy Riad Aubdool Partner Director Director Mumbai Dated: 22 April, 2014 Dated: 21 April 2014 Annual Report

7 Notes Forming Part of the Financial Statements for the Year Ended 31St March, Organisation and Nature of business Global Investment Opportunities Fund Limited (the Company ) was previously incorporated under the name of Kotak Mahindra Investment Company Limited, PCC as a private company limited by shares with a protected cell company status on 31 January 2001 in the Republic of Mauritius. On 13 June 2003, the company has by a special resolution converted itself into a public company and on 25 July 2003 changed its name to Global Investment Opportunities Fund Limited. The Company is a holder of a Category 1 Global Business Licence under the Financial Services Act 2007 and has been authorised to operate as a Collective Investment Scheme under Section 97 of the Securities Act 2005 and to operate as a Global Scheme under Regulation 16 of the Securities (Collective Investment Scheme and Closed-end Funds) Regulations Since the Company operates in an international environment and conducts most of its transactions in foreign currencies the Company has chosen to retain the United States dollar ( USD ) as its reporting currency SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO THE ACCOUNTS 2 Summary of Significant Accounting policies The following accounting policies have been consistently applied in dealing with items which are considered material in relation to the company s financial statements. i. Basis of preparation ii. iii. iv. The Financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under Section 211(3C) of the Companies Act, 1956 (the 1956 Act) (which continue to be applicable in respect of Section 133 of the Companies Act, 2013 (the 2013 Act) in terms of General Circular 15/2013 dated 13 September, 2013 of the Ministry of Corporate Affairs) and the relevant provisions of the 1956 Act/ 2013 Act, as applicable. Use of estimates The preparation of financial statements requires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses during the reporting period. believes that the estimates used in preparation of the financial statements are prudent and reasonable. Actual results could differ from these estimates. Conversion to Indian Rupees The transactions are in US Dollars, which have been converted into Indian currency for reporting purposes. All income and expense items are converted at the average rate of exchange applicable for the period. All assets and liabilities are translated at the closing rate as on the Balance Sheet date. Share Capital is carried forward at the rate of exchange prevailing on the transaction date. The resulting exchange difference on account of translation at the year end is being treated transferred to Translation Reserve Account and the said account is being treated as Reserves and Surplus. Revenue recognition Revenue is recognised to the extent it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Commission, fees and other revenue invoiced are recognised on an accrual basis. Interest income is recognised in the Profit and Loss account as accrued. Dividend income relating to listed long equity securities are recognized in the income statement on the ex-dividend date. v. Share capital vi. On issue of participating shares, the difference between the issue price and the nominal value is credited to the share premium account. On redemption, the nominal value is debited to the share capital account and any excess to share premium and retained earnings account. Investments The Company classified its investments in equity securities / futures and options as current investments. Investments are initially recognised at cost, including transaction costs. Investments are subsequently carried at cost or market value, whichever is lower on an overall category basis, based on the quoted bid and offer prices, respectively. When current bid and offer prices are unavailable, the price of the most recent transaction is used. All investment transactions are recorded on a trade date basis and costs of investments are determined on an average cost basis. vii. Cash and Cash Equivalents Cash and cash equivalents comprise deposits with banks and highly liquid financial assets with maturities of three months or less from the acquisition date that are subject to an insignificant risk of changes in their fair value and are used by the Company in the management of short-term commitments. 6 Global Investment Opportunities Fund Limited

8 Notes Forming Part of the Financial Statements for the Year Ended 31St March, 2014 viii. Provisions A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. All known liabilities have been accounted for in the preparation of the financial statements. The materiality of the events occurring after the reporting date has been considered and appropriate adjustments and provisions have been made in the financial statements where necessary. ix. Taxation Income tax on the profit or loss for the year comprises current and deferred tax. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted at the Balance Sheet date, and any adjustment to tax payable in respect of prior years. Deferred tax is provided using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted at the Balance Sheet date. Deferred tax assets are recognised on carry forward of unabsorbed depreciation and tax losses only if there is virtual certainty that suchderferred tax asset can be realised against future profits. 3 Notes to the accounts 3.1 (A) Share Capital Share Capital As at 31st March 2014 As at 31st March 2013 ` ` ` ` ` ` Issued, Subscribed and fully Paid up 205 (Previous year 205) shares of USD 1 each 9,594 9,594 9,594 9,594 60,007 (Previous year 74,114) Class A Participating shares 21,998 21,998 30,517 30,517 50,617 (Previous year 73,467) Class C Participating shares 11,907 11,907 25,743 25,743 9,457 (Previous year 36,619) Class I Participating shares 5,606 5,606 22,040 22,040 2,618 (Previous year 2,618) Class A (series 1) Participating shares 1,295 1,295 1,295 1,295 2,003,440 (Previous year 2,678,574) Kotak Fund of Funds 845, ,263 1,253,142 1,253,142 9, , ,663 9,594 1,332,737 1,342,331 Annual Report

9 Notes Forming Part of the Financial Statements for the Year Ended 31St March, 2014 (B) Equity shares As at 31st March 2014 As at 31st March 2013 Quantity Amount (`) Quantity Amount (`) Number of shares at the beginning 205 9, ,594 Issued during the period Number of shares at the end 205 9, ,594 (C) Terms/rights attached to equity shares shares shall only be issued at par value and shall be non redeemable shares. The shares shall not be class shares. All proceeds of allotment of shares shall be kept separately identifiable from class portfolios. shares shall confer on the holders thereof: (a) (b) (c) voting rights in any members meeting other than class meetings of holders of class shares. Each share shall carry one vote. the right to participate in so much only of the profits and assets of the Company as are attributable to the shares; and in a winding up the right set out in Article 49 of the Constitution. No shares shall at any time be held otherwise than by the subscribers set out in the first schedule to the Constitution or such person as may be approved by an unanimous resolution of the Board of Directors. The shares are currently held by Kotak Mahindra Bank Limited and Kotak Mahindra (International) Limited. Participating shares The Participating shares shall: (a) (b) (c) be issued in respect of a specifically designated class, at a price not below the nominal value of the shares or at such higher price as the Directors may determine from time to time; carry a right to class dividend; and confer upon the holders thereof in a winding up to the rights set out in Article 49 of the Constitution. The Participating shares shall be divided into such number of classes as the Board may from time to time determine. On or before the issue or allotment of a Participating share, the Directors shall determine to which class it shall be attributable and each Participating share shall be issued or allotted as a Participating share or a designated class. The Directors shall at their sole discretion determine the voting rights for Participating shares of a designated class. Each Participating share of a class will confer upon the holder thereof the same voting rights as every other share of that class. The Directors at their sole discretion may determine that all Participating shares of a class, but not some, may be issued with no voting rights. (D) held by holding/ultimate holding company and/or their subsidiaries/associates Out of equity and preference shares issued by the company, shares held by its holding company, ultimate holding company and their subscidiaries/associates are as below: As at 31 March 2014 As at 31 March 2013 Kotak Mahindra Bank Limited, the holding company Kotak Mahindra (International) Ltd, subsidiary of Kotak Mahindra Bank Limited Global Investment Opportunities Fund Limited

10 Notes Forming Part of the Financial Statements for the Year Ended 31St March, 2014 (E) Details of shareholders holding more than 5% shares in the company Equity shares of USD 1 fully paid up As at 31 March 2014 As at 31 March 2013 Number of shares % holding Number of shares % holding Kotak Mahindra Bank Limited, the holding company Kotak Mahindra (International) Ltd, subsidiary of Kotak Mahindra Bank Limited Reserves & Surplus As at 31 March 2014 As at 31 March 2013 ` ` ` ` ` ` a. Securities Premium Account Opening Balance 1,605,817,434 1,605,817,434 1,850,226,440 1,850,226,440 Add : Securities premium credited on Share issue (net) (1,051,751,454) (1,051,751,454) (724,794,863) (724,794,863) Add : Transfer from retained earnings 219,349, ,349, ,385, ,385,857 Closing Balance - 773,415, ,415,037 1,605,817,434 1,605,817,434 b. Translation Reserve Opening Balance 1,557 1,094,542,069 1,094,543, ,261, ,262,618 Additions during the year 1, ,066, ,067, ,280, ,281,008 Adjustments during the year Closing Balance 2,689 1,527,608,484 1,527,611,173 1,557 1,094,542,069 1,094,543,626 c. Surplus in the statement of profit and loss Opening balance 1,396,696,149 1,396,696,149 1,814,309,981 1,814,309,981 (+) Net Profit/(Net Loss) For the current year 87,263,954 87,263,954 62,772,025 62,772,025 (-) Transfer to securities premium (219,349,057) (219,349,057) (480,385,857) (480,385,857) Closing Balance - 1,264,611,046 1,264,611,046-1,396,696,149 1,396,696,149 2,689 3,565,634,567 3,565,637,256 1,557 4,097,055,652 4,097,057, Other current liabilities Expenses payable to group companies - 1,260,312 1,260, Other liabilities - 1,048,538 1,048, , ,988-2,308,850 2,308, , ,988 Annual Report

11 Notes Forming Part of the Financial Statements for the Year Ended 31St March, Investments Scrip Name As at 31 March 2014 As at 31 March 2013 Quantity Book Value Quantity Book value Qty ` Qty ` Current Investments Equity and other similar funds (Quoted) Birla Sunlife Frotline Equity Fund - Plan A - Growth 2,508, ,946, Franklin India Bluechip Fund-Growth - - 1,041, ,819,089 HDFC Midcap Opportunities Fund Growth - - 4,596,526 83,016,108 HDFC Top 200 Fund Growth , ,940,747 ICICI Prudential Discovery Fund - Growth 540,364 32,753,673 1,547,188 84,719,799 ICICI Prudential Focused Bluechip Equity Fund Retain Growth 11,050, ,019,029 15,189, ,352,447 SBI BLUE CHIP FUND-REGULAR PLAN GROWTH 9,358, ,198, SBI MSFU Emerging Businesses Fund - Growth 1,169,496 69,992,427 1,374,429 73,894,633 UTI - Equity Fund-Growth Option 3,150, ,968,626 4,410, ,499,308 27,777, ,878,413 28,698,496 1,151,242,131 Less: Provision for dminution in value of investments : Equity and other similar funds (Quoted) 27,777, ,878,413 28,698,496 1,151,242,131 Equity and other similar funds (Unquoted) Kotak Funds - India Blue chip Fund Limited 2,671,704 1,613,839,022 3,309,478 1,813,085,165 Kotak Funds - India Blue chip Fund Limited - SERIES 1 Kotak Funds - India Midcap Fund 1,536, ,075,039 2,352,023 1,341,605,798 4,207,836 2,580,914,061 5,661,501 3,154,690,963 Less: Provision for dminution in value of investments ,761,833 : Equity and other similar funds (Unquoted) 4,207,836 2,580,914,061 5,661,501 2,889,929,130 Current Investments 31,985,402 3,519,792,474 34,359,997 4,041,171,260 Aggregate value of quoted investment 938,878,413 1,151,242,131 Aggregate market value of quoted investment 1,036,089,245 1,110,313,090 Aggregate value of unquoted investment 2,580,914,061 3,154,690,963 investments 3,519,792,474 4,041,171, Cash and bank balances As at 31st March 2014 As at 31st March 2013 ` ` ` ` ` ` Cash and cash equivalents Balances with banks: On current accounts 12,283 52,343,361 52,355,644 11,151 58,477,842 58,488,993 12,283 52,343,361 52,355,644 11,151 58,477,842 58,488, Global Investment Opportunities Fund Limited

12 Notes Forming Part of the Financial Statements for the Year Ended 31St March, Other current assets As at 31st March 2014 As at 31st March 2013 ` ` ` ` ` ` Receivable from fellow subsidiary ,434,139 2,434, ,434,139 2,434, Other expenses Exchange loss - - 1,555,886 1,555,886 Auditors remuneration 1,057,308 1,057, , ,304 Investment Advisory and facilitator fees 11,921,359 11,921,359 8,570,861 8,570,861 Legal and Professional fees 3,795,917 3,795,917 3,843,099 3,843,099 Transaction and Custody Charges 397, , , ,344 Upfront Placement fees 973, ,086 1,480,387 1,480,387 Directorship fees 181, , , ,182 Miscellaneous expenses 3,227,206 3,227,206 2,616,730 2,616,730-21,553,556 21,553,556-19,505,793 19,505, The Company is a subsidiary of Kotak Mahindra Bank Limited (KMBL). The accounts have been prepared and audited to attach with the accounts of KMBL, the holding company to comply with the provisions of the Indian Companies Act, Derivatives There are no open derivative contracts as at 31st March 2014 and Taxation The Company is subject to income tax in Mauritius at the rate of 15%. However, it is entitled to a tax credit equivalent to the higher of the actual foreign tax suffered and 80% of the Mauritian tax on its foreign source income Related party transactions During the year ended 31st March, 2014, the company s transactions with related party are as follows: (all figures in `) Related Parties Nature of Relationship Nature of Transactions Volume of transaction for the period ended Debit / (credit) balance at 31st March st March st March st March 2013 ` ` ` ` Kotak Mahindra (UK) Limited Fellow Subsidiary fee Regulatory & administrative services fee Cim Fund Services Ltd Administrator Administrator fees 11,921,359 8,570,861 (1,260,312) 2,434,139 2,917,687 2,514,580 (718,980) (1,200,241) Annual Report

13 Notes Forming Part of the Financial Statements for the Year Ended 31St March, 2014 All related party transactions entered during the year by the Company are priced on commercial terms and conditions Events after the reporting date Further to a meeting held on 27 December 2013, the Board had approved the transfer of 205 shares held by Kotak Mahindra (International) Limited and Kotak Mahindra Bank Limited (the transferors ) to Premier Equity Promoters Limited (the transferee ) subject to approval received from the Financial Services Commission ( FSC ). The Company had received approval from the FSC on 11 April 2014 to transfer the 205 management shares to PEPL for a period not exceeding six months after which same would be transferred to another entity as deemed acceptable by the FSC. Further to the above, it is to be noted that the change in management shares shall be effective for the Company s financial statements ending 31 March Previous year figures have been regrouped and reclassified wherever necessary to conform to current year s presentation. In terms of our report of even date For V. C. Shah & Co. For and on behalf of the Board of Directors Chartered Accountants A. N. Shah Deven Coopoosamy Riad Aubdool Partner Director Director Mumbai Dated: 22 April, 2014 Dated: 21 April Global Investment Opportunities Fund Limited

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