MIRA
INFORM REPORT
|
Report Date : |
10.07.2008 |
IDENTIFICATION
DETAILS
|
Name : |
MICROSEC FINANCIAL SERVICES LIMITED |
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Formerly Known As : |
SATYAM FISCAL SERVICES PRIVATE LIMITED |
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Registered Office : |
Shivam Chambers, 53 Syed Amir, Avenue, 1st Floor, Kolkata -
700019, West Bengal |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
06.06.1989 |
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Com. Reg. No.: |
21-47002 |
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CIN No.: [Company
Identification No.] |
U65993WB1989PLC047002 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALM07541Cs |
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PAN No.: [Permanent
Account No.] |
AADCS7147N |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Subject provided services in the areas of Investment Banking, Equity
and Commodity Brokerage, Insurance Brokerage and Wealth Management. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 870000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. Trade
relations are fair. Financial position is satisfactory. Payments are usually correct
and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
Shivam Chambers, 53 Syed Amir, Avenue, 1st Floor, Kolkata -
700019, West Bengal, India |
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Tel. No.: |
91-33-22830172/ 22830124/ 30512100/ 175 |
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Fax No.: |
91-33-22830124/ 30512020 |
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E-Mail : |
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Website : |
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Factory : |
8/1 Lal Bazar Street, Kolkata – 700001. West Bengal, India |
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Corporate Office : |
Azimganj House 7, Camac Street, 2nd Floor, Kolkata –
700017, West Bengal, India |
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Email : |
DIRECTORS
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Name : |
Mr. Banwari Lal Mittal |
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Designation : |
Chairman Cum Managing Director |
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Address : |
25D, Harish Mukherjee Road, 3rd Floor, Flat No.3A and B, Kolkata –
700025, India |
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Date of Birth/Age : |
39 years |
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PAN No.: |
ADMPM0065G |
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Passport No.: |
F4841742 |
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Voter ID No.: |
HZG3561545 |
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Other Directorship : |
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Name : |
Mr. Sum Bose |
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Designation : |
Director |
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Address : |
34, Abinesh Chandra Banerjee Lane, Kolkata – 700010, West Bengal,
India |
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Date of Birth/Age : |
20.01.1968 |
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Date of Appointment : |
01.04.1990 |
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Name : |
Mr. Sunil Kumar Sharma |
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Designation : |
Director |
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Address : |
194 A, Maniektoll Main Road, Kolkata – 700054, West Bengal, India |
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Date of Birth/Age : |
10.01.1959 |
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Date of Appointment : |
31.05.1989 |
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Name : |
Mr. Parimal Kumat Chattaraj |
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Designation : |
Additional Director |
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Address : |
3 H Singhi Park, 48/3 Hunger Ford Street, Kolkata – 700019, West
Bengal, India |
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Date of Birth/Age : |
29.09.1945 |
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Date of Appointment : |
28.09.2007 |
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Other Directorship : |
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Name : |
Mr. Ravikant Sharma |
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Designation : |
Director |
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Address : |
Space Town Housing Complex, VIP Road, Raghynathpur, Block 10, Flat 3
L, Kolkata – 700052, India |
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Date of Birth/Age : |
33 years |
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PAN No.: |
AIWPS1830J |
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Passport No.: |
F6213987 |
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Voter ID No.: |
WB/21/143/255140 |
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Other Directorship : |
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Name : |
Mr. Rakesh Sony |
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Designation : |
Director |
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Address : |
Space Town Housing Complex, VIP Road, Raghynathpur, Block 10, Flat 3
L, Kolkata – 700052, India |
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Date of Birth/Age : |
31 years |
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PAN No.: |
ALDPS1789A |
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Passport No.: |
A6367913 |
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Other Directorship : |
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Name : |
Dr. Bidhubhusan
Samal |
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Designation : |
Independent
Director |
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Address : |
Flat- 1101, Lokhandwala
Galaxy, Junction of NM Joshi & KK Marg, Near S. Bridge, Byculla (West),
Mumbai- 400 011, India |
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Date of Birth/Age : |
64 Years |
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Other Directorship : |
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Name : |
Mr. Vinod Kumar Kothari |
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Designation : |
Independent Director |
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Address : |
1012, Krishna, 224, AJC Bose Road, Kolkata- 700 017, India
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Date of Birth/Age : |
46 years |
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Other Directorship : |
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KEY EXECUTIVES
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Name : |
Mr. Biplab Kumar Mani |
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Designation : |
Company Secretary |
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Address : |
82 R K Chatterjee Road, Kolkata – 700042, West Bengal, India |
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Date of Birth/Age : |
31.12.1974 |
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Date of Appointment : |
19.02.2007 |
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Name : |
Mrs. Laxmi Narayan Mandhana |
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Designation : |
Chief Finance Officer |
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Name : |
Mr. Shamik Bhose |
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Designation : |
Executive Director – Commodity
Markets |
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Name : |
Mr. S. Sengupta |
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Designation : |
President – Insurance Broking |
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Name : |
Mr. Sumit Agarwal |
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Designation : |
President – Corporate Finance |
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Name : |
Mr. Pankaj Harlalka |
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Designation : |
Senior Vice President – Merchant
Banking |
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Name : |
Mr. Sanjay Kumar Agarwal |
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Designation : |
Vice President - Investment
Banking |
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Name : |
Mr. Ajai Kumar Agrawal: |
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Designation : |
Vice President – Consulting |
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Name : |
Mr. Manish Kumar Agarwal |
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Designation : |
Asst.
Vice President – Compliance |
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Name : |
Mr. Yogesh Parasrampuria |
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Designation : |
Asst. Vice President – Business
Development |
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Name : |
Mr. Vishal Poddar |
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Designation : |
Asst. Vice President – Wealth
Management |
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Name : |
Mr. Bajrang Lal Agarwal |
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Designation : |
Asst. Vice President -
Operations and Finance |
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Name : |
Mr. Sumit Bhattacharya |
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Designation : |
Asst.
Vice President – HRD) |
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Name : |
Mr. Manav Goenka: |
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Designation : |
Asst. Vice President -
Investment Banking |
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Name : |
Mr. Ashish Bajaj |
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Designation : |
Asst. Vice President – Investment Banking |
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Name : |
Mr. Naveen Vyas |
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Designation : |
Senior Manager – Research |
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Name : |
Mr. Mahendra
Kumar Yadav: |
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Designation : |
Manager – Accounts |
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Name : |
Mr. Prabir
Kumar Sarkar |
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Designation : |
Sr. Research Analyst |
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Name : |
Mr. Soumesh Tripathi |
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Designation : |
Sr. Manager- Business Development |
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Name : |
Mr. Atanu Ghosh: |
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Designation : |
Technology - Head |
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Name : |
Mr. Avijit Majumder |
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Designation : |
Team Leader – Equity Sales |
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Name : |
Mr. Ashish Agarwal |
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Designation : |
Team Leader – Equity Sales |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 30.09.2005)
|
Names of Shareholders |
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No. of Shares |
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Mr. Sunil Kumar Sharma |
|
35000 |
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Mrs. Suman Bose |
|
240 |
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Uma Putrva Estate (Private) Limited |
|
10000 |
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Radhika Trading Company (Private) Limited |
|
94000 |
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Shoparna Securities (Private) Limited |
|
243900 |
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Bengal Poly Sacks (Private) Limited |
|
6000 |
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Chakaapani Viniyog (Private) Limited |
|
6000 |
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Narayan Resources (Private) Limited |
|
46000 |
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Gourav Kutir Fivers (Private) Limited |
|
46000 |
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Mr. Rajesh Butolia |
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28000 |
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Baba Bholanath Commercial company (Private) Limited |
|
229200 |
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Shoparna Bros (Private) Limited |
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46000 |
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Mrs. Durga Devi Sharma |
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12000 |
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Mrs. Rita Sharma |
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3000 |
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Total |
|
805340 |
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Names of Allotted |
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No. of Shares Allotted |
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Mr. Banwari lal Mittal |
|
4560000 |
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Mrs. Abha Mittal |
|
5700 |
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Mr. Ravi Kant Sharma |
|
5700 |
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Mrs. Bharati Shrma |
|
5700 |
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Mr. Prabhu Dayal Khaitan |
|
5700 |
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Mrs. Sushila Devi Khaitan |
|
5700 |
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Luv Kush Projects Limited |
|
1111500 |
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Total |
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5700000 |
(As on 31.03.2007)
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Category |
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Percentage |
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Directors or relatives of directors |
|
80.00 |
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Other than fifty shareholders (other than listed above) |
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20.00 |
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Total |
|
100.00 |
Their shareholding pattern as on date of the Draft Red
Herring Prospectus is as set out below:
|
Names of Shareholders |
No. of Shares |
Percentage
of Shares |
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Promoters |
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Mr.
Banwari Lal Mittal |
11360000 |
55.93 |
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Mr. Ravi
Kant Sharma |
876800 |
4.32 |
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Mr.
Rakesh Sony |
600000 |
2.95 |
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Sub Total (A) |
12836800 |
63.20 |
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Promoters Group |
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Mrs.
Abha Mittal |
15700 |
0.08 |
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Mrs.
Bharati Sharma |
323200 |
1.59 |
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Mr.
Prabhu Dayal Khaitan |
15700 |
0.08 |
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Mrs.
Sushila Devi Khaitan |
15700 |
0.08 |
|
M/s
Luv-Kush Projects Limited |
661500 |
3.26 |
|
Mrs.
Kavita Sony |
600000 |
2.95 |
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Ravi
Kant Sharma jointly with Luv-Kush Projects Limited as Trustees of Microsec
Vision Trust One |
1200000 |
5.91 |
|
Rakesh
Sony jointly with Luv-Kush Projects Limited as Trustees of Microsec Vision
Trust Two |
1200000 |
5.91 |
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Sub Total
(B) |
4031800 |
19.85 |
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Directors and employees |
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Mr. Laxmi
Narayan Mandhana, Mr. Sumit Kumar Agarwal and Mr. Manish Kr. Agarwal as
Trustees of Microsec Vision (Employees) Trust |
1206400 |
5.94 |
|
Employees
|
250000 |
1.23 |
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Sub Total (C) |
1456400 |
7.17 |
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Others |
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Others |
1985500 |
9.78 |
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Sub Total (D) |
1985500 |
9.78 |
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Total (A+B+C+D) |
20310500 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject provided services in the areas of Investment Banking, Equity and
Commodity Brokerage, Insurance Brokerage and Wealth Management. |
GENERAL
INFORMATION
|
No. of Employees : |
325 |
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|
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Bankers : |
HDFC Bank Limited HDFC Bank House
Senapati Bapat Marg, Lower Parel West, Mumbai – 400013, Maharashtra, India 3A Gurusaday Road, Kolkata- 700019, India. Tel: 91-33-22836924 Fax: 91-33-2283 6922 ICICI Bank Limited Rasoi Court, 20 Sir R.N. Mukherjee Road, Kolkata- 700 001,
India. Tel: 91-33-4002 4382 Fax: 91-33-2242 9083 ABN AMRO Bank Azimganj House, 7 Camac Street, Kolkata- 700017, India. Tel: 91-33-22820990 Fax: 91-33-2282 0844 Syndicate Bank Brabourne Road Branch |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Vidya and Company Chartered Accountant |
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Address : |
50 Weston Street, 4th Floor, Room No.404, Kolkata – 700012,
West Bengal, India |
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Statutory Auditors |
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Name : |
Arun Sawalka and Company Chartered Accountants |
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Address : |
1 Mullick Street, 3rd Floor, Kolkata- 700 007 India. |
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Associates/Subsidiaries : |
Microsec Capital Limited U51909WB1995PLC072876 Microsec Resources Private Limited U51109WB1994PTC066509 Microsec Insurance Brokers Limited U67200WB2002PLC095275 Microsec Commerze Limited U74140WB1994PLC066386 Mil Technologies Limited U72200WB2002PLC094642 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
35000000 |
Equity Shares |
Rs.10/- each |
Rs.350.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
12700000 |
Equity Shares |
Rs.10/- each |
Rs.127.000
Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
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1] Share Capital |
127.000 |
100.000 |
8.053 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
46.942 |
29.125 |
12.308 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
173.942 |
129.125 |
20.361 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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TOTAL |
173.942 |
129.125 |
20.361 |
|
|
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|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
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|
FIXED ASSETS [Net Block] |
56.751 |
29.923 |
0.000 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
128.166 |
131.032 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
0.000 |
20.290 |
|
|
Sundry Debtors |
0.766
|
5.060 |
0.000 |
|
|
Cash & Bank Balances |
6.925
|
0.239 |
0.027 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
5.064
|
8.451 |
0.008 |
|
Total
Current Assets |
12.755
|
13.750 |
20.325 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
19.958
|
32.815 |
0.002 |
|
|
Provisions |
3.772
|
12.765 |
0.003 |
|
Total
Current Liabilities |
23.730
|
45.580 |
0.005 |
|
|
Net Current Assets |
(10.975)
|
(31.830) |
20.320 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.041 |
|
|
|
|
|
|
|
|
TOTAL |
173.942 |
129.125 |
20.361 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
18.954 |
11.547 |
0.000 |
|
|
Other Income |
20.584 |
5.486 |
0.035 |
|
|
Total Income |
39.538 |
17.033 |
0.035 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
33.651 |
16.003 |
0.001 |
|
|
Provision for Taxation |
3.778 |
1.363 |
0.000 |
|
|
Profit/(Loss) After Tax |
29.873 |
14.640 |
0.001 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Salaries, Wages, Bonus, etc. |
0.426 |
0.140 |
0.016 |
|
|
Payment to Auditors |
0.120 |
0.100 |
0.002 |
|
|
Insurance Expenses |
0.022 |
0.000 |
0.000 |
|
|
Power & Fuel |
0.124 |
0.000 |
0.000 |
|
|
Depreciation & Amortization |
4.058 |
0.536 |
0.000 |
|
|
Other Expenditure |
1.137 |
0.254 |
0.016 |
|
Total Expenditure |
5.887 |
1.030 |
0.034 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
75.56
|
85.95 |
2.86 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
177.54
|
138.59 |
0.00 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
48.41
|
36.64 |
0.00 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.19
|
0.12 |
0.00 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.14
|
0.35 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.54
|
0.30 |
4065.00 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY AND CERTAIN CORPORATE MATTERS
Their
Company was incorporated as “Satyam Fiscal Services Private Limited” on June 6,
1989. The name of their Company was subsequently changed to “Microsec Financial
Services Private Limited” pursuant to a fresh certificate of incorporation
issued by the Registrar of Companies, West Bengal at Kolkata, dated October 17,
2005. Their status was subseqsuently changed to a public limited company and
the word “private” was deleted from the name of their Company by a special
resolution of the members of their Company passed at the Extra Ordinary General
Meeting held on October 19, 2005. The fresh certificate of incorporation
consequent to change of name was granted to their Company on October 20, 2005
by the Registrar of Companies, West Bengal at Kolkata. Their registered office
was initially situated at 8/1 Lal Bazar Street, Bikaner Building, Block –B,
Kolkata- 700 001 and subsequently it was shifted to 25D Harish Mukherjee Road,
1st Floor, Kolkata- 700 025 pursuant to a Board resolution dated March 28, 2005
and then it was shifted to Azimgunj House, 2nd floor, 7 Camac Street, Kolkata-
700017 pursuant to a Board resolution dated May 30, 2005 and thereafter the
registered office was shifted to their present address at “Shivam Chambers”,
1st Floor, 53 Syed Amir Ali Avenue, Kolkata - 700019 pursuant to a Board
resolution dated December 8, 2006.
Their Promoters acquired the entire shareholding of the
Company from the previous shareholders on October 1, 2005. The Company also
held the entire shareholding of Microsec Capital Limited (“MCap”) on November 24, 2005 and
Microsec Resources Private Limited (“MRPL”)
on February 2, 2006. Since MCap, prior to its acquisition by the Company, held
the entire equity share capital of Microsec Commerze Limited (“MCL”) and Microsec Risk Management
limited (as it then was), on acquisition by the Company, MCL and Microsec Risk
Management Limited became the indirect subsidiaries of the Company. Further,
MIL Technologies Limited held the entire shareholding of Microsec Technologies
Limited as on October 1, 2005 and the entire share capital of MIL Technologies
Limited were held by their Company on March 31, 2006 respectively.
SUMMARY
OF BUSINESS, STRENGTHS AND STRATEGY:
They are a well-diversified financial services company
providing an array of services including investment banking, retail brokerage,
wealth management, insurance broking and financing services to
corporate/institutional/high net worth individual clients. Further, they are in
the process of launching institutional equities and portfolio management
services. They are headquartered in Kolkata and they operate from another
around 176 business-locations in 49 Indian cities / towns.
The Microsec Group operates through Company, and its
Subsidiaries. Company, the ultimate holding company of all the Subsidiaries, is
an NBFC, registered with the RBI and its main business includes giving loans
against shares and rendering advisory services to clients. Their Subsidiaries
are Microsec Capital Limited, Microsec Resources Private Limited, MIL
Technologies Limited, Microsec Insurance Brokers Limited and Microsec Commerze
Limited.
COMPETITIVE
STRENGTHS
- Strong regional presence
Over the last few years, they have built a superior position
in the eastern region both in the equity broking and in the investment banking
business. Of their total pan-India network of 176 branches covering 49 cities
and towns, 79 branches are located in Kolkata and 117 branches are located in
West Bengal as on January 19, 2008. 92.6 % of our gross revenues come from the
eastern region as on September 30, 2007.
- Top management involvement
Their Promoters are actively involved in the day to day
management of the affairs of the various companies of the Microsec Group. While
Mr. B. L. Mittal is in overall charge of the company, Mr. Ravi Kant Sharma
heads the brokerage business and Mr. Rakesh Sony heads the investment banking
business. Their Promoters are also supported by a number of professionals with
requisite expertise and experience in the various activities of the Company,
including investment banking, equity sales and trading and commodities. They
believe that the extensive experience and financial acumen of their management
and professionals and their active involvement in the operations of the Company
provides us with a significant competitive advantage.
- Integrated business model
They offer a wide range of financial products and services
to their investors which complement each other and this provides cross-selling
opportunities. In the retail spectrum, they offer equity brokerage, commodities
brokerage, personal financial services (including insurance brokerage and
distribution of savings-products), internet trading, LAS etc. In the wealth
spectrum, they offer PMS and wealth advisory services. In the institutional
spectrum, they offer institutional equity and commodity broking services,
investment banking, transaction advisory services and corporate loans.
- Strong relationships
They believe that their focus on nurturing long-term
relationships with companies and serving these companies throughout the course
of their development has enabled them to form strong relationships with these
clients. Based on their performance, they have received repeat business from
many of their clients. Their dedicated focus on client coverage and their
ability to provide ongoing and innovative solutions enables them to establish
long-term relationships with institutional and high net worth individual
clients. They believe that these relationships provide them with an advantage
in attracting deal flow and securing transactions. Their dedicated relationship
managers act as the single point contact between the client and various other
concerned persons in the division.
BUSINESS
STRATEGIES
- Geographic expansion:
They operate through approximately 176 business locations in
about 49 cities/towns of India. They now plan to expand their operations into
smaller cities and towns that are either, in their understanding,
under-serviced by financial service companies or where they believe they can
develop their business. Further,they propose to expand their existing
operations.
As at September 30, 2007, their operations in the equity
broking segment outside the eastern and north eastern region garnered only
Rs.3.48 million which constitutes 7.4% our gross revenues. They, therefore,
plan to establish a national footprint by entering regions where they do not
have a presence including Gujarat, Rajasthan and the southern states. Since
they do not have significant operations in these regions, they believe that
these regions will afford greater opportunities for growth and expansion. They
propose to expand by increasing the network of our branches and are open to
growth through the inorganic route including acquisitions. They believe that
their proposed expansion complemented by their client-focused relationship
management, will allow them to increase their client base and help them
increase their market share.
- Focus on Investment banking business:
To capitalise on the growth in the securities markets and
their growing list of clients in the investment banking business, they are
continuously strengthening their investment banking team. They propose to
increase their presence in this vertical, both in terms of team strength and
geographic reach. Expand their product portfolio: In accordance with their
strategy of creating an integrated business model, they propose to expand their
operations by offering a gamut of financial services including PMS and towards
this end, they have also obtained SEBI registration. Further, they have
obtained empanelment from a few institutions and have also acquired office
space in Mumbai for the purpose of providing institutional broking.
Additionally, they propose, through, improved client relationship management,
wealth management solutions, convenient and effective channels of distribution,
to expand their wealth management business both in overall terms and location
wise. They plan to significantly increase their financing, broking and
third-party wealth management and financial instruments distribution business.
They also plan to launch innovative new products and services in the background
of markets as they are foreseen to be emerging with.
- Strengthen research capabilities:
They intend to further widen their research coverage by
increasing the number of companies and business sectors that they cover. They
also propose to enlarge their team of research analysts, advisors and dealers
to strengthen relationships with their clients.
- Continue to develop client
relationships:
They plan to expand their business primarily by increasing
the number of client relationships, as they believe that increased client
relationships will add stability to their business. They seek to build on existing
relationships and also focus on increasing their client base. They also believe
that the rapid growth of the Small and Medium Enterprises (SMEs) offers us a
significant opportunity to provide a wide variety of financial services and
products to this segment. They also seek to offer their clients, diversified
products and services to increase their per capita revenues by selling
different products to the same client.
- Pursue strategic acquisitions and
alliances:
They propose to pursue strategic acquisition opportunities
to enhance their capabilities, address specific industry opportunities to
further enhance their industry and technical expertise, expand their operations
geographically and benefit from an expanded client base. Presently, the Indian brokerage
industry is experiencing significant consolidation involving the growth of
corporate brokerage houses and increasing marginalization of small and regional
brokers. Stricter regulatory and higher capital requirements have hastened this
process, which provide opportunities for well-capitalized, professionally
managed corporate brokers to acquire smaller entities and brokers associated
with regional exchanges. In conjunction with their strategy of geographical
growth towards expansion of their retail business, they intend to selectively
target smaller and/ or regionally aligned brokers for acquisition.
Simultaneously they also propose to explore opportunities for enhancing
institutional equity partnership in the Company.
Microsec Financial
Services Limited- Consolidated
Statement of
Restated Profit And Loss
|
Particulars |
31.03.2007 |
30.09.2007 |
|
Income |
|
|
|
Operation: |
|
|
|
Income
from Operation |
185.540 |
181.350 |
|
Other
Income |
0.380 |
2.060 |
|
Increase (decrease) in inventory |
- |
- |
|
Total
Income |
185.920 |
183.410 |
|
|
|
|
|
Expenditure |
|
|
|
Operating
Expenses |
13.120 |
4.930 |
|
Staff costs |
25.270 |
24.680 |
|
Administrative
Expenses -Operational |
22.130 |
17.410 |
|
- Distribution |
22.710 |
2.450 |
|
Interest
|
0.130 |
0.830 |
|
Depreciation
|
14.520 |
10.260 |
|
Miscellaneous expenditure written off |
0.360 |
1.300 |
|
Total Expenditure |
98.240 |
61.840 |
|
|
|
|
|
Net
Profit before tax and extraordinary items |
87.680 |
121.570 |
|
Provision
for taxation |
|
|
|
Income
Tax (Including Short Provisions for earlier years, if any) |
7.490 |
20.740 |
|
Deferred
Tax Charges / (Benefits) |
3.470 |
6.160 |
|
Fringe
benefit Tax |
0.300 |
0.160 |
|
Net Profit
after tax and before extraordinary items |
76.420 |
94.510 |
|
Extraordinary
items (net of tax) |
- |
- |
|
Net
Profit after extraordinary items |
76.420 |
94.510 |
|
Earlier
year adjustments |
- |
- |
|
Net Profit after tax |
76.420 |
94.510 |
|
|
|
|
|
Balance
in Profit & Loss account brought forward |
28.070 |
83.170 |
|
|
|
|
|
Balance available for appropriation |
104.490 |
177.680 |
|
|
|
|
|
Appropriations |
|
|
|
Transfer to reserve |
|
|
|
General
reserve |
- |
- |
|
Transfer
to special reserve under section 45-IC of the
Reserve Bank of India Act, 1934,of India |
9.570 |
9.700 |
|
|
|
|
|
Capital
redemption reserve |
- |
27.000 |
|
Proposed
dividend |
10.450 |
10.000 |
|
Tax
on proposed dividend |
1.470 |
1.700 |
|
Balance
in Profit & Loss account |
83.000 |
129.280 |
|
|
|
|
|
Total |
104.490 |
177.680 |
Microsec
Financial Services Limited.-Consolidated
Statement pf Restated Assets and Liabilities
|
Particulars |
31.03.2007 |
30.09.2007 |
|
|
|
|
|
Assets |
|
|
|
Fixed
Assets- Gross Block |
159.950 |
168.700 |
|
Less
: Accumulated Depreciation |
35.910 |
46.170 |
|
Net
Block |
124.040 |
122.530 |
|
Less
: Revaluation Reserve |
- |
- |
|
Net Block after adjustment for Revaluation Reserve |
124.040 |
122.530 |
|
|
|
|
|
Investment |
48.150 |
64.810 |
|
|
|
|
|
Deferred tax assets (Net) |
- |
- |
|
|
|
|
|
Current
assets, loans and advances |
|
|
|
Stock
in trade |
2.060 |
0.850 |
|
Receivables
|
17.860 |
171.880 |
|
Cash
& bank balances (Including FDR's) |
41.860 |
57.440 |
|
Other
current assets |
1.860 |
- |
|
Loans
and advances |
97.240 |
241.460 |
|
Total
|
160.870 |
471.630 |
|
Total Assets |
333.060 |
658.970 |
|
|
|
|
|
Liabilities & Provisions |
|
|
|
|
|
|
|
Deferred tax liability (net) |
8.570 |
14.720 |
|
|
|
|
|
Loan
funds |
|
|
|
Secured
loans |
0.960 |
92.510 |
|
Unsecured
loans |
- |
- |
|
Sub-total
|
0.960 |
92.510 |
|
Current
liabilities and provision |
|
|
|
Current
liabilities |
67.380 |
208.370 |
|
Provisions
|
7.910 |
40.270 |
|
Sub-total
|
75.290 |
248.640 |
|
Total liabilities and provisions |
84.820 |
355.870 |
|
|
|
|
|
Net Worth |
248.240 |
303.100 |
|
|
|
|
|
Represented
by: |
|
|
|
Shareholders
funds |
|
|
|
Equity
Share Capital |
100.000 |
100.000 |
|
5%
Redeemable Preference Share Capital |
27.000 |
- |
|
Reserves
& surplus |
121.240 |
203.100 |
|
Less:
Revaluation Reserve |
- |
- |
|
Reserves
(Net of Revaluation Reserve) |
121.240 |
203.101 |
|
Less:
Miscellaneous expenditure not written off |
- |
- |
|
Total
|
121.240 |
203.100 |
|
Total Net Worth |
248.240 |
303.100 |
Business
Overview:
They are a well-diversified financial services company
providing an array of services including investment banking, retail brokerage,
wealth management, insurance broking and financing services to their clients.
Further, they are in the process of launching institutional equities and
portfolio management services. They are headquartered in Kolkata and they
operate from another around 176 business-locations in 49 Indian cities / towns.
The Microsec Group operates through Subject and its
Subsidiaries. Company, the ultimate holding company of all the Subsidiaries, is
an NBFC, registered with the RBI and its main business includes giving loans
against shares and rendering advisory services to clients. Their Subsidiaries
are Microsec Capital Limited, Microsec Resources Private Limited, MIL
Technologies Limited, Microsec Insurance Brokers Limited and Microsec Commerze
Limited.
MCap and MRPL are 100% subsidiaries of MFSL. Further, MIBL
and MCL are 100% subsidiaries of MCap. 80.00% and 20.00% of the shareholding in
MTL is held by MFSL and MCap respectively.
The group employs approximately 325 employees as of January
18, 2008. In Fiscal 2006 and 2007, their consolidated total income was
Rs.125.700 million and Rs.185.920 million respectively. In Fiscal 2006 and 2007,
their consolidated profit after taxation was Rs.42.390 million and Rs.76.420
million respectively. Consolidated total income and profit after tax in the 6
months’ period ended September 30, 2007 stands at Rs.183.410 million and
Rs.94.510 million respectively.
Subject
is an RBI registered NBFC and is the ultimate holding
company of all the subsidiary companies. Company provides financing (loans
against shares) to various Clients, including their broking Clients. Such
financing allows Clients to partially pay for a certain amount of stocks up to
a sanctioned limit and the balance is then funded by company.
Microsec Capital Limited is the
Microsec Group’s flagship company and manages the group’s investment banking
and equity broking business. MCap is registered with SEBI as a stock broker, a
merchant banker, a depository participant and a portfolio manager. It is also
in the business of distribution of financial savings products.
Microsec Commerze Limited offers
services in the commodities market and is registered as a member of MCX and
NCDEX. We trade for their clients in a wide variety of commodities, including
agricultural products, bullion, industrial products, oil and oil seeds and
energy products.
Microsec Insurance Brokers
Limited offers insurance broking services and is registered with the
IRDA. It distributes products of both life insurance and non life insurance
companies.
Microsec Resources Private
Limited provides ‘loan against shares’ facility to the clients including
broking clients of the group. MRPL is an RBI registered NBFC.
MIL Technologies Limited is
engaged in the business of software development and data processing.
Key
Events and Milestones
Following are the key events and milestones achieved by their
Company and their Subsidiaries:
2000 MCap received certificate as Stock Broker of ISE Cash
Market
2000 MCap received certificate as sub-broker to ISE
Securities Services Limited for NSE
2003 MFSL received registration certificate as non banking
financial institution not accepting public deposit with RBI
2003 MCL received membership of NCDEX as “Trading –cum –
clearing member”
2003 MIBL received licence from IRDA to act as “ Insurance
Brokers”
2003 MCL received certificate enrollment as AMFI registered
mutual fund advisor.
2003 MCap received registration as Merchant Banker in the
Category –I from SEBI.
2004 MCap received membership of the NSE as Stock Broker
2004 MCap received membership of the Future and Options
Segment of the NSE
2004 MCL received membership of MCX as “Trading –cum –
clearing member”
2005 MCap received certificate from SEBI to act as
underwriter
2005 MCap received membership of the BSE as Stock Broker
2005 MCap received registration as Depository Participant
with NSDL
2006 MRPL received amended registration certificate as Non
Banking Financial Institution in MRPL name not accepting public deposit from
RBI (original registration in the old name of the company was received in the
year 2004)
2006 MCap received membership of NSE as Self Clearing member
2007 MCap received membership of the Future and Options
Segment of the BSE
2007 MTL received certificate under Software Technologies
Park.
2007 MCap empaneled as Institutional Broker with State Bank
of India and Allahabad Bank
2007 MCap received registration as Depository Participant
with CDSL
2007 MCap received registration as Portfolio Manager from
SEBI.
Brief
Biography of Directors
Mr.
Banwari Lal Mittal
Mr. Banwari Lal Mittal is the founder of the Microsec Group
and is the Chairman and Managing Director of the Company. He has 15 years of
experience in different fields including investment banking, wealth management
and corporate advisory. Mr. Mittal is a fellow member of the Institute of
Chartered Accountants of India, the Institute of Company Secretaries of India
and the Institute of Costs and Works Accountants of India. He has in the
earlier part of his career worked with the M.P. Birla Group in a managerial
position for about 8 years. Mr. Mittal has been, and is also presently, part of
a number of committees of chambers of commerce.
Mr.
Ravi Kant Sharma
Mr. Ravi Kant Sharma is the Managing Director and Chief
Executive Officer of the brokerage and wealth management business of MCap. Mr.
Sharma is the co-founder of the Microsec Group and is associated with itm since
1999. Mr. Sharma holds a bachelor’s degree in commerce from Calcutta University
and is a fellow member of the Institute of Chartered Accountants of India. He
has an experience of more than 10 years in wealth management and capital market
operations.
Mr.
Rakesh Sony
Mr. Rakesh Sony, the Managing Director and Chief Executive
Officer of the investment banking business of MCap, is a 31 year old Chartered
Accountant having more than 10 years of hands on experience in the investment
banking sphere. After finishing his graduation from St Xavier’s College,
Kolkata with a first class, he qualified as a Chartered Account in the year
1998. He started his professional career as an investment banker working
closely with the leading corporates in India and abroad. In the year 2002, he
co-promoted Microsec Group. He has handled various prestigious assignments in
India and abroad. He is also a part of the capital market committee of the
Institute of Chartered Accountants of India, Eastern Regional Council.
Dr.
Bidhubhusan Samal
Dr. Bidhubhusan Samal, aged 64 years, is an independent
Director of MFSL and has done Doctorate in Economics. He is having more than 35
years of experience in Banking & Financial Sector. He has been awarded the
Seva Ratna Award. In his professional career, he has been the Chairman and
Managing Director of Allahabad Bank, Industrial Investment Bank of India and
Chairman of All Bank Finance Limited. He was also a Member of Securities
Appellate Tribunal, Ministry of Finance, and Government of India. Presently, he
is a member of Employment Mission set up by the Govt. of Orissa under the
Chairmanship of the Hon’ble Chief Minister and a Member of Task Force (MOU)
nominated by Government of India, Ministry of Heavy Industries & Public
Enterprises, New Delhi. He is on the Board of several reputed companies in
India.
Mr.
Parimal Kumar Chattaraj
Mr. Chattaraj is the founder of Vertex Consulting
(Organization & HR Solutions) and has experience of over 30 years. His
professional background is BSC, PGDM, LLB, specializing in organizational
behaviour. He has worked in management positions in India and abroad
contributing to business strategy, aligning employee skill to business,
creating learning organization and leadership development. Associated with
reputed Management Institutes & Business Schools, he strongly believes in
academics/research as essential ingredient of business growth. He is also
Registered Advocate in Calcutta High Court providing legal support/advice to
corporate houses and selective clients.
Mr.
Vinod Kumar Kothari
Mr. Kothari is a Chartered Accountant and a Company
Secretary with a strong academic record. Mr. Kothari is an accomplished trainer
on securitization and offers training courses on securitization and credit
derivatives all over the world. Mr. Kothari is also the author of various
books, for example, ‘Securitization: The Financial Instrument of the Future’,
‘Credit Derivatives and Synthetic Securitization’, ‘Financing and
Hire-purchase’ and ‘Securitization, Asset Reconstruction and Enforcement of
Security Interests. Mr. Kothari is currently a visiting faculty at Indian
Institute of Management, Joka, and Kolkata and teaches corporate bankruptcy at
National University of Judicial Sciences, Kolkata, and a premier law college in
India.
Key Management Personnel
Details of the key managerial personnel of the Company and
its Subsidiaries are set out below.
Mrs. Laxmi Narayan Mandhana
(CFO)
As a Chartered Accountant and a qualified Company Secretary
with over 19 years of experience in handing the finance functions entailing
mergers, acquisitions and project activities, Mr. Mandhana is the in-charge of
financial and corporate functions of the Microsec Group. In addition to his
hands-on experience in asset financing business of about 7 years, he also has a
wide experience in corporate finance, taxation, accounts etc. He is also a part
of Finance Committee of CII (Confederation of Indian Industry), Eastern Region.
Prior to joining the Microsec Group, Mr. Mandhana was employed with the
Hindustan National Glass and Industries Limited. His date of joining was
September 11, 2007. His annual cost to company is Rs.1.200 million.
Mr. Shamik Bhose
(Executive Director – Commodity Markets)
Mr. Bhose has served as a senior trader and in senior
managerial positions with major trading houses and e-commerce ventures. A
Master in Economics with over 21 years of working experience, Mr. Bhose has
been a nominee member at world trade bodies like Grain and Feed Trade
Association (GAFTA) and Federation of Oils, Seeds and Fats (FOSFA), Indian
trade bodies like Bombay Oils & Oilseeds Exchange, a founding committee
member of Coffee Futures Exchange of India - Bangalore (COFEI) and has also
been a speaker and panelist in conferences organized by Futures Market
Commission (FMC), Associated Chambers of Commerce and Industry of India
(ASSOCHAM) and Indian Chamber of Commerce on development of the commodity
futures market and warehouse receipt finance in India. He has also been advisor
to some sugar companies, MCX and a product committee member of NCDEX. Prior to
joining the Microsec Group, Mr. Bhose was employed with the Balrampur Chini
Mills as an advisor. His date of joining was May 2, 2007. His remuneration for
the Fiscal Year 2007 was Rs. 1.4 million.
Mr. S. Sengupta
(President – Insurance Broking)
A qualified Associate of Chartered Insurance Institute,
London, and Mr. Sengupta has experience of over four decades in the insurance
field. He is an Ex-Regional Head of the New India Assurance Company Limited and
Ex-Chairman of the Fire Sub-Committee of Calcutta Regional Committee of Tariff
Advisory Committee. He has a deep knowledge of risk management together with
knowledge of the insurance business. Prior to joining the Microsec Group, Mr.
Sengupta was employed with Birla Technical Services. His date of joining was
July 1, 2003. His remuneration for the Fiscal Year 2007 was Rs.0.390 million.
Mr. Sumit Agarwal
(President – Corporate Finance)
A Chartered Accountant, Sumit is finance professional and
specializes in providing banking solutions. He has over six years of experience
in corporate finance mostly in steel, infrastructure and the power industries.
His date of joining was July 12, 2002. His remuneration for the Fiscal Year
2007 was Rs.0.520 million.
Mr. Pankaj Harlalka
(Senior Vice President – Merchant Banking)
Mr. Harlalka is a Company Secretary and has more than 10
years of experience in the area of corporate legal affairs. He is responsible
for conducting the due diligence process, preparing of all statutory documents
and liaisoning with statutory authorities to get the necessary clearances and
approvals. Prior to joining the Microsec Group, Mr. Harlalka was an independent
practicising company secretary. His date of joining was November 7, 2003. His
remuneration for the Fiscal Year 2007 was Rs.0.520 million.
Mr. Sanjay Kumar Agarwal
(Vice President - Investment Banking)
A Chartered Accountant and a Cost Accountant, Mr. Agarwal
has 9 years of experience in handling corporate banking, treasury of a large
corporate and general managerial functions in several corporate sectors. Due to
the outstanding performance in effecting savings in interest cost of the
Company, he has been awarded a special appreciation letter from IDBI Bank and
Atul Limited. Prior to joining the Microsec Group; Mr. Agarwal was employed
with Nilon. His date of joining was September 24, 2007. His annual cost to
company is Rs.1.4 million.
Mr. Ajai Kumar Agrawal:
(Vice President – Consulting)
A science graduate and a Cost and Works Accountant, Mr.
Agarwal has a post qualification experience of 19 years in different companies
like Birla Corporation Limited, SWIL Limited, Electrosteel Castings Limited He
has developed several accounting systems, target costing techniques, suggested
procedures for optimization of working capital etc. He is an expert in
budgeting, analysis & tracking systems, formulation of operating strategy,
cost and investment feasibility analysis etc. He is working with our investment
banking division and his key responsibilities include making business plans,
involvement in valuation of firms, preparing project reports and liaising with
banks for corporate finance proposals. His write-ups are also published in the
ICWAI Journal - “The Management Accountant”. Due to the outstanding performance
in effecting savings in interest cost of the company, he has also been awarded
a special appreciation letter from M/s. Birla Corporation Limited. Prior to
joining the Microsec Group, Mr. Agarwal was employed with Birla Corporation.
His date of joining was November 4, 2006. His remuneration for the Fiscal Year
2007 was Rs.0.192 million.
Mr. Manish Kumar Agarwal
(Asst. Vice President –
Compliance)
A Chartered Accountant and a Company Secretary having more
than 8 years of post qualification experience in the field of finance and
equity broking, Mr. Agarwal is holds a significant position as in-charge of compliance
and registration matters of the Company. He is responsible for ensuring
compliance with all relevant rules and regulations. Additionally, he is also
involved in the daily administration work of the company. Prior to joining the
Microsec Group, Mr. Agarwal was employed with the Bachhawat group. His date of
joining was July 1, 2005. His remuneration for the Fiscal Year 2007 was
Rs.0.325 million.
Mr. Yogesh Parasrampuria
(Asst. Vice President – Business Development)
A commerce graduate, Mr. Parasrampuria has completed a
professional course in network centric computing, and had joined Microsec Group
as a Manager - Depository Services subsequently being promoted to Head -
Depository Services. Prior to joining the Microsec Group, Mr. Parasrampuria was
employed with Vedika Securities (P) Limited His date of joining was May 7,
2005. His remuneration for the Fiscal Year 2007 was Rs. 0.273 million.
Mr. Vishal Poddar
(Asst. Vice President – Wealth Management)
A post graduate diploma holder in business administration
with a specialization in finance, Mr. Poddar is responsible for distribution of
wealth management products. He joined Microsec Group as a Business Development
Manager and was gradually promoted to Assistant Vice President. His date of
joining was February 15, 2005. His remuneration for the Fiscal Year 2007 was
Rs.0.334 million.
Mr. Bajrang Lal Agarwal
(Asst. Vice President - Operations and Finance)
A Chartered Accountant with a total experience of 6 years
and a post qualification experience of 4 years in the stock market, Mr. Agarwal
holds a key position in finance operations of equity market division of the
Company that involves supervision of the dayto- day operations of back office
and monitoring net debtors positions. He has also been assigned an additional
responsibility of looking after total risk management of stock broking division
of the Company. Prior to joining the Microsec Group, Mr. Agarwal was employed
with Lohia Securities Limited His date of joining was November 1, 2006. His
remuneration for the Fiscal Year 2007 was Rs.0.154 million.
Mr. Sumit Bhattacharya
(Asst. Vice President – HRD)
With a gold medalist MBA with a diploma in Labour Laws &
Administrative Laws and having a post qualification experience of over 7 years
in core human resources, personnel and administrative functions in different
divisions like retail, IT, education, manufacturing and financial services, Mr.
Bhattacharya is heading Microsec Group’s human resources department. He has a
vast exposure in the area of formulation and implementation of human resources
policies, organization restructuring and employee development measures,
performance management system, compensation & benefits management and
rewards & recognition system implementation and statutory compliances. His
current responsibilities include talent acquisition & engagement,
organisational restructuring in alignment with the ambitious growth plans of
the Company, streamlining human resources policies & procedures, employee
training & development, introducing social security systems and compliance
with laws relating to these and employee counseling. Prior to joining the
Microsec Group, Mr. Bhattacharya was employed with Khadim India Limited. His
date of joining was September 19, 2006. His remuneration for the Fiscal Year
2007 was Rs.0.123 million.
Mr. Manav Goenka:
(Asst. Vice President - Investment Banking)
Mr. Goenka is an MBA, with a specialization in finance and
has more than 3 years of experience in investment banking. He is responsible for
conducting the due diligence process, preparing of all statutory documents and
liaising with statutory authorities to get the necessary clearances and
approvals. He is also handling assignments relating to mergers, acquisitions
and valuations. His date of joining was April 11, 2005. His remuneration for
the Fiscal Year 2007 was Rs.0.390 million.
Mr. Ashish Bajaj
(Asst. Vice President – Investment Banking)
Mr Bajaj is a member of the Institute of Company Secretaries
of India. He was top ranker in Company Secretary final examination. He has more
than 8 years of experience in finance, legal and the secretarial fields. Prior
to joining our Company he was employed with Tantia Constructions Limited as
Company Secretary and Compliance Officer and handled the public issue of Tantia
Constructions Limited. Prior to joining the Microsec Group, Mr. Bajaj was
employed with Tantia Constructions. His date of joining was July 15, 2006. His
remuneration for the Fiscal Year 2007 was Rs. 0.276 million.
Mr. Biplab Kumar Mani
(Company Secretary)
As a Company Secretary with more than 3 years of experience
in the area of corporate law and Stock Exchange compliances, Mr Mani is the
Company Secretary of MFSL. He has had substantial exposure in independent
management of the secretarial department at the corporate level. In Microsec
Group, Biplab manages the processes concerning company legislation and
regulations. Prior to joining the Microsec Group, Mr. Mani was employed with
Vinay Cements Ltd. His date of joining was February 19, 2007. His remuneration
for the Fiscal Year 2007 was Rs. 0.029 million.
Mr. Naveen Vyas
(Senior Manager – Research)
An MBA (Finance), having a post qualification experience of
over 3 years in financial services industries, Mr Vyas specializes in doing in-depth
analysis of the companies, their financial strength and valuation. He is
responsible for doing research on the companies and also for assembling of
fundamental reports on these. His thorough study of the macro factors of Indian
economy is an important basis for the same. His date of joining was October 4,
2005. His remuneration for the Fiscal Year 2007 was Rs.0.260 million.
Mr. Mahendra Kumar Yadav
(Manager – Accounts)
As a qualified Chartered Account, Mr. Yadav holds more than
5 years of experience in the areas of Accounts, Audit, MIS and Taxation. He is
presently looking after these functions. Prior to joining the Microsec Group,
Mr. Yadav was employed with Jumac Manufacturing Private Limited; His date of
joining was February 12, 2007. His remuneration for the Fiscal Year 2007 was
Rs.0.03 million.
Mr. Prabir Kumar Sarkar
(Sr. Research Analyst)
Mr. Sarkar is a diploma holder in mechanical engineering
with a diploma in business management and has successfully undergone different
courses in technical studies. He has also qualified NSE Certification in
Financial Markets (NCFM) Certification from NSE and Multi Commodity Exchange
Certified Professional (MCCP) from MCX. He has had experience over 9 years as a
specialized technical analyst in the arena of security, currency and commodity
in various companies. He was the head of technical analysis throughout his
previous employments. He also ensures proper presentation of technical research
reports and plays a role in generating the intra-day or short term positional
calls for trading purpose. Prior to joining the Microsec Group, Mr. Sarkar was
employed with Reymont Commodities Private Limited;. His date of joining was
November 6, 2006. His remuneration for the Fiscal Year 2007 was Rs.0.073
million.
Mr. Soumesh Tripathi:
(Sr. Manager- Business Development)
A Commerce Graduate with a diploma in computer software
applications from NIIT, Mr Tripathi is a senior member in the commodities
department. With 4 years of experience, he specializes in corporate hedging in
the futures market and holds good knowledge in the metals sector (steel,
copper, aluminum, zinc). Presently he is undergoing MBA (Marketing) from IISWBM
to enhance his expertise. Prior to joining the Microsec Group, Mr. Tripathi was
employed with Micro Network Systems. His date of joining was July 1, 2004. His
remuneration for the Fiscal Year 2007 was Rs.0.195 million.
Mr. Atanu Ghosh:
(Technology - Head)
A diploma holder in computer science along with CISCO
Certified Network Associate (CCNA) & Microsoft Certified Professional (MCP)
and having more than 5 years of experience in network administration, IT
infrastructure planning and implementation. He heads Microsec Group’s
technology department. Prior to joining the Microsec Group, Mr. Ghosh was employed
with Infrotonix Channel. His date of joining was May 8, 2006. His remuneration
for the Fiscal Year 2007 was Rs.0.156 million.
Mr. Avijit Majumder
(Team Leader – Equity Sales)
Having more than 5 years of experience as a team leader, Mr
Majumder has successfully handled trading of HNI and retail clients. He is also
having good leadership skills in achieving defined target by motivating team
members Prior to joining the Microsec Group, Mr. Agarwal was employed with the
Bachhawat group.with Indiabulls Securities Ltd. as team leader. His date of
joining was May 8, 2007. His annual cost to company is Rs. 0.349 million.
Mr. Ashish Agarwal
(Team Leader – Equity Sales)
A post graduate diploma holder in management, with a
specialization in finance, Mr. Agarwal has had more than 3 years of experience
in acquisition, handling and retention of HNI and retail clients. Prior to
joining the Microsec Group, Mr. Agarwal was employed with Indiabulls Securities
Ltd. as Associate Relationship Manager (ARM). His date of joining was October
3, 2006. His remuneration for the Fiscal Year 2007 was Rs.0.132 million.
Form 8:
|
Corporate
identity number of the company |
U65993WB1989PLC047002 |
|
Name of the
company |
MICROSEC FINANCIAL SERVICES LIMITED |
|
Address of the registered
office or of the principal place of
business in India of the company |
Shivam Chambers, 53 Syed Amir, Avenue, 1st Floor, Kolkata -
700019, West Bengal, India |
|
This form is for |
|
|
Type of charge |
Creation of
charge |
|
Particular of
charge holder |
HDFC Bank Limited HDFC Bank House
Senapati Bapat Marg, Lower Parel West, Mumbai – 400013, Maharashtra, India |
|
Nature of
instrument creating charge |
Declaration – cum
– Undertaking Dated 17th May 2007 |
|
Date of
instrument Creating the charge |
17.05.2007 |
|
Amount secured by
the charge |
Rs.60.000
Millions |
|
Brief of the principal
terms an conditions and extent and operation of the charge |
Rate of
Interests: 12.5% p.a. any
such rate as may be advice by the Bank to the company from time to time for
the credit facilities. Terms of
Repayments: On Demand Margin: As may be prescribed
by the Bank from time to time for the credit facility. Extent and
operation of the charge: First exclusive
charge on the company property i.e. the entire the first floor inter alia including
all the unit/ office thereat being unit Nos. 1A, 1B, 1C, 1D, 1E, 1F, 1G and
1Hcontaining a super built up area of 8854 sq. ft. more or less together with
8.8631% of undivided indivisible imparible share situated and laying at
Municipal Premises No.53 Syed Amir Ali Avenue, Kolkata – 700019 Under police
station karaya, Word No.68 with in Kolkata Municipal Corporation. |
|
Particulars of
the property charged |
First exclusive
charge on the company property i.e. the entire the first floor inter alia including
all the unit/ office thereat being unit Nos. 1A, 1B, 1C, 1D, 1E, 1F, 1G and
1Hcontaining a super built up area of 8854 sq. ft. more or less together with
8.8631% of undivided indivisible imparible share situated and laying at
Municipal Premises No.53 Syed Amir Ali Avenue, Kolkata – 700019 Under police
station karaya, Word No.68 with in Kolkata Municipal Corporation. |
|
Particulars of
the present modification |
NA |
Website Details:
Microsec India: A bridge between
clients and bankers
The Kolkata-based Microsec India Limited is an integrated
business and financial services group promoted by a team of professionals to
provide value-added business solutions and services to clients. The promoters
possess significant professional competence in their respective fields of
specialisation. Over the last one year the company has handled business worth
Rs.4000.000 Millions.
Executive Director Rakesh Sony calls the company a bridge
between the clients and the bankers - it serves as advisors to the clients so
they are just a phone call away from designing and sending perfect solutions to
any client in a few hours.
During the last three years of its existence the company has handled a number
of projects some of which are listed below:
The company is a leading name, especially in the eastern parts of the country,
in investment banking and corporate finance. It helps its clients in raising
finance, devising structure and identifying appropriate planning for
acquisitions. It undertakes consultancy and wealth management activity. It also
claims to have a personal package for NRIs in every field. It is currently
handling the power project of Jai Balaji Sponge Limitedworth Rs.460.000
Millions. The Rs.580.000 Millions project of White Water East Projects Pvt.
Ltd, Rs.90.000 Millions sponge iron project of Shiv Shakthi Private Limited and
Rs.100.000 Millions air pre-heater basket project of IMECO Ltd are some of the
other projects currently being handled by Microsec.
The opening up of the insurance sector has provided the company another area to
spread its wings. The company has already registered itself as direct insurance
broker, for both life and non-life sectors. According to Rakesh Sony,
"Microsec is not just arranging insurance, it encompasses all activities
undertaken to tackle loss exposures arising out of risk."
The company is planning to introduce some innovative schemes of financing in
the future. One such plan is to securitise the future fees of certain schools
in Kolkata and in turn raise funds for the development of the school. The
scheme is still in a nascent stage.
Microsec Financial Services IPO can
hit the markets soon as it has recently filed its DRHP with SEBI. Microsec is a
Financial Services company which provides services in the area of Equities,
Investment Banking , Wealth Management and other Brokerage areas. Microsec IPO
plans to raise an amount of Rs. 160 crore from the capital markets. More
information and the price band of the Microsec Financial Services IPO will be
known after it receives the approval from the SEBI. Microsec IPO information
will be updated here soon.
CRISIL
assigns IPO grade 2/5 to Microsec
CRISIL has come out with a research report on Microsec
Financial Services IPO. It has assigned a CRISIL IPO Grade 2/5 to the company's
IPO. Microsec Financial Services aims to raise around Rs.1600 million by this
proposed public issue of 8 million equity shares.
CRISIL's report on Microsec Financial Services' IPO:
CRISIL has assigned a CRISIL IPO Grade "2/5" to
the proposed initial public offer of Microsec Fiancial Services (MFSL). This
grade indicates that the fundamentals of the issue are below average
relative to other listed equity securities in India. However, this grade is not
an opinion on whether the issue price is appropriate in relation to the
issue fundamentals. The offer price for the issue may be higher or lower
than the level justified by its fundamentals. The grade is not a
recommendation to buy/ sell or hold the graded instrument, the graded
instrument's future market price or its suitability for a particular
investor.
The grading reflects MSFL's strength in the retail equity
broking and investment banking business in eastern India region. The
company's existing network of HNI clients in its broking business serves
as a ready client base for its LAS business. In investment
banking business the company is active in small ticket deals originating
in eastern India region. The competitive advantage of the company lies in
its access to its clients for deals originating in the eastern
India region.
Grading is tempered by the inadequacy of the present
risk management systems, which need to evolve considering the increased
focus on LAS business post-IPO. Going forward, Microsec will have to
increasingly delink the management of broking and risk management functions,
which otherwise might lead to conflict between business and risk
management needs for the company. The company currently has a majority of
its revenues coming from its own branches and its ability to successfully
manage a largefranchisee model remains to be seen. The company is a small
player in the overall investment banking industry, which limits its
ability to offer services in large ticket and cross-border deals. Ability
to attract talent at competitive rates without a big name will be
a challenge for the company's investment banking business. Further, there
is inherent volatility in all key businesses of the company due to
linkages with the equity markets.
The undifferentiated nature of broking business and the
downward trend in brokerage charges due to competition limits the growth
opportunities in the equity broking business. The ability to differentiate
through client servicing would dictate the growth prospects for the company.
Further, the management needs to improve its understanding of risk
management systems and be more proactive in implementing them as the LAS
portfolio is expected to increase significantly in size post-IPO.
About the company and the issue
MFSL is a financial services company providing primarily
retail broking, loan against shares (LAS) to support the broking business and
investment banking services. It also offers commodity broking, insurance
broking and distribution of financial products to complete the bouquet of offerings.
Further, the company is in the process of launching institutional equities
broking and portfolio management services in the current year. MFSL is
headquartered in Kolkata and operates from around 196 business-locations in 49
Indian cities. Of the total 196 branches the company owns around 17 branches
and the rest are franchisee-based. The company derives a major portion of its
revenues from the eastern India region.
The Microsec group was started by Mr. B.L. Mittal and Mr. Ravi
Kant Sharma in 2000. Later Mr. Rakesh Sony joined the company as a promoter in
2002 to build its investment banking business. The group started operations as
Microsec India Limited in 2000. The company was registered as a Merchant banker
with SEBI in 2003 and obtained the NSE membership in 2004, followed up with BSE
membership in 2005. The company was registered as a depository participant of
NSDL in 2005, followed up by CDSL in 2007. In 2003, the company started
insurance broking through its wholly-owned subsidiary Microsec Insurance
Brokers Limited as an IRDA registered insurance broker. It also started
commodity broking through its subsidiary Microsec Commerze Ltd. on NCDEX in
2003 and MCX in 2004. In 2005, the name of Microsec India Ltd. was changed to
Microsec Capital Ltd. In the same year, the promoters acquired RBI registered
NBFC - Satyam Fiscal Services Private Limited. The name of the company was
changed to MFSL and the promoters transferred their holding in Microsec Capital
Ltd. to MFSL.
MFSL aims to rise around Rs.1600 million by this proposed
public issue of 8 million equity shares.
Microsec
Financial to tap market, files draft prospectus
Kolkata,
Feb. 9
The city-based Microsec Financial Services Limited, a
diversified financial services company engaged in investment banking, retail
brokerage (equity and commodities), wealth management, insurance broking, IPO
and mutual funds distribution, proposes to enter the capital market with a
public issue of Rs.1600.000 Millions.
The company has filed the Draft Red Herring Prospectus
(DRHP) with SEBI for the purpose. SBI Capital Markets is the BRLM for the
issue.
Microsec, headquartered in Kolkata, in a statement,
announced that it plans to launch institutional equities and portfolio
management services. It is stated that the company operates from around 176
business locations in 49 Indian cities and towns.
The Group operates through Microsec Financial Services Ltd
(MFSL), the holding company for all the group subsidiaries. MFSL is an NBFC,
and is principally engaged in the businesses of loans against shares and
advisory financial services.
Some of the group subsidiaries are Microsec Capital Limited,
Microsec Resources Private Limited, MIL Technologies Limited, Microsec
Insurance Brokers Limited and Microsec Commerze Limited.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government official
or a family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.43.13 |
|
UK Pound |
1 |
Rs.85.02 |
|
Euro |
1 |
Rs.67.77 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|