MIRA
INFORM REPORT
|
Report Date : |
06.01.2011 |
IDENTIFICATION DETAILS
|
Name : |
DEUTSCHE EQUITIES INDIA PRIVATE LIMITED |
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Registered
Office : |
Third Floor, Kodak House, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
03.10.2002 |
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Com. Reg. No.: |
137431 |
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CIN No.: [Company Identification
No.] |
U65990MH2002PTC137431 |
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TAN No.: [Tax Deduction & Collection
Account No.] |
MUMD08963D |
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|
Legal Form : |
Private Limited Liability Company |
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|
Line of Business
: |
The principal activity of the Company is to act as a stockbroker for foreign
institutional investors and domestic mutual funds. The Company also provides
merchant banking and advisory services. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (58) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 19000000 |
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|
|
|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a subsidiary of Deutsche India Holdings Private Limited. It
is a well established company having fine track. Financial position of the company
appears to be sound. Trade relations are reported as fair. Business is
active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INFORMATION DECLINED BY
Management non-cooperative
LOCATIONS
|
Registered Office : |
Third Floor, Kodak House, |
|
Tel. No.: |
91-22-66584600 |
|
Fax No.: |
91-22-22019094 |
|
E-Mail : |
DIRECTORS
(AS ON 24.09.2010)
|
Name : |
Mr. Pratik Gupta |
|
Designation : |
Director |
|
Address : |
605, Oyster Shell I, |
|
Date of Birth/Age : |
17.12.1968 |
|
Date of Appointment : |
21.08.2008 |
|
DIN No.: |
02262794 |
|
|
|
|
Name : |
Mr. Munish Ravindra Varma |
|
Designation : |
Director |
|
Address : |
112, |
|
Date of Birth/Age : |
25.09.1971 |
|
Date of Appointment : |
12.03.2009 |
|
DIN No.: |
02442753 |
|
|
|
|
Name : |
Mr. Sanjay Agarwal |
|
Designation : |
Director |
|
Address : |
M-21 Greater Kailash – II, |
|
Date of Birth/Age : |
17.08.1966 |
|
Date of Appointment : |
24.09.2010 |
|
DIN No.: |
02555524 |
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|
|
|
Name : |
Mr. Jigar Jayantilal Shah |
|
Designation : |
Director |
|
Address : |
3-15, Seema, |
|
Date of Birth/Age : |
23.03.1968 |
|
Date of Appointment : |
14.10.2002 |
|
DIN No.: |
00288821 |
KEY EXECUTIVES
(AS ON 24.09.2010)
|
Name : |
Mr. Bipin Singh |
|
Designation : |
Company Secretary |
|
Address : |
Flat No. C-304, 3rd Floor, |
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Date of Birth/Age : |
09.03.1968 |
|
Date of Appointment : |
17.06.2009 |
|
PAN No. : |
AAVPS1109H |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 24.09.2010)
|
Names of Shareholders |
No. Equity of
Shares |
No. Of
Preference Shares |
|
Deutsche India Holdings Private Limited, Mumbai |
1919999 |
-- |
|
Deutsche Asia Pacific Holdings Pte Limited, |
1 |
22560000 |
|
Total |
1920000 |
22560000 |
(AS ON 30.09.2010)
|
Category |
|
Percentage |
|
|
|
|
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
0.01 |
|
Bodies corporate |
|
99.99 |
|
|
|
|
|
Total
|
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
The principal activity of the Company is to act as a stockbroker for
foreign institutional investors and domestic mutual funds. The Company also
provides merchant banking and advisory services. |
GENERAL INFORMATION
|
No. of Employees : |
Not Divulged by the Management |
|
|
|
|
Bankers : |
Standard
Chartered Bank, 90, |
|
|
|
|
Banking
Relations : |
-- |
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|
|
|
Auditors : |
|
|
Name : |
B S R and Company Chartered Accountants |
|
Address : |
Lodha Excelus, 1st Floor, Apollo Mills Compound, N. M.
Joshi Marg, Mahalakshmi, Mumbai – 400011, |
|
Tel. No.: |
91-22-39896000 |
|
Fax No.: |
91-22-39836000 |
|
|
|
|
Ultimate Holding Company : |
Deutsche Bank AG (and its branches) |
|
|
|
|
Holding Company : |
Deutsche India Holdings Private Limited U67120MH2004PTC146800 |
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|
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|
Fellow Subsidiaries : |
|
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2,000,000 |
Equity Share |
Rs. 10/- each |
Rs. 20.000 Millions |
|
23,000,000 |
13.25 % Non cumulative redeemable Preference Shares |
Rs. 10/- each |
Rs. 230.000 Millions |
|
|
Total |
|
Rs. 250.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1,920,000 |
Equity Share, fully paid up |
Rs. 10/- each |
Rs. 19.200
Millions |
|
22,560,000 |
13.25 % Non cumulative redeemable Preference
Shares, fully paid up |
Rs. 10/- each |
Rs. 225.600
Millions |
|
|
Total |
|
Rs. 244.800 Millions |
1,919,999 equity shares of Rs. 10/- each held by Deutsche India Holdings
Private Limited, the Holding Company and 1 equity share of Rs. 10/- each held
by Deusche Asia Pacific Holdings Pte. Limited
22,560,000 13.25 % Non cumulative redeemable
Preference Shares of Rs. 10/- each are held by Deutsche Asia Pacific Holdings
Pte. Limited. Te preference shares are redeemable at par or premium and on such
date (not exceeding 20 years from the date of issue of shares i.e. 4th
July 2003) as may be determined by the Board of Directors.
FINANCIAL
DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
244.800 |
244.800 |
244.800 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
4391.712 |
3510.318 |
2584.360 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
4636.512 |
3755.118 |
2829.160 |
|
|
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 |
|
|
|
|
|
|
|
|
TOTAL |
4636.512 |
3755.118 |
2829.160 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
64.406 |
53.710 |
34.714 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
1050.660 |
451.381 |
156.447 |
|
|
DEFERREX TAX ASSETS |
153.575 |
141.987 |
138.141 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
0.000 |
0.000 |
|
|
Sundry Debtors |
1334.004
|
1462.840 |
994.445 |
|
|
Cash & Bank Balances |
37543.588
|
13874.228 |
17739.011 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
659.093
|
495.297 |
270.113 |
|
Total
Current Assets |
39536.685
|
15832.365 |
19003.569 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
5104.908
|
3224.434 |
3858.442 |
|
|
Other Current Liabilities |
31003.337
|
9453.008 |
12595.215 |
|
|
Provisions |
60.569
|
46.883 |
50.054 |
|
Total
Current Liabilities |
36168.814
|
12724.325 |
16503.711 |
|
|
Net Current Assets |
3367.871
|
3108.040 |
2499.858 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
4636.512 |
3755.118 |
2829.160 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Commission Income |
2175.300 |
1765.294 |
2483.558 |
|
|
|
Fee Income |
311.402 |
763.807 |
1533.205 |
|
|
|
Interest on deposits with banks |
754.652 |
892.612 |
673.534 |
|
|
|
Other Income |
53.702 |
53.940 |
39.297 |
|
|
|
TOTAL (A) |
3295.056 |
3475.653 |
4729.594 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee Costs |
1182.532 |
1095.644 |
1039.666 |
|
|
|
Operating and Administration costs |
736.556 |
905.604 |
776.117 |
|
|
|
TOTAL (B) |
1919.088 |
2001.248 |
1815.783 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1375.968 |
1474.405 |
2913.811 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
3.537 |
0.110 |
3.555 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1372.431 |
1474.295 |
2910.256 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
20.804 |
15.530 |
10.614 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1351.627 |
1458.765 |
2899.642 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
435.376 |
497.835 |
1055.449 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
916.251 |
960.930 |
1844.193 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
3510.318 |
2584.360 |
775.139 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Preference Dividend |
29.892 |
29.892 |
29.892 |
|
|
|
Tax on Preference Dividend |
4.965 |
5.080 |
5.080 |
|
|
BALANCE CARRIED
TO THE B/S |
4391.712 |
3510.318 |
2584.360 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
459.06 |
482.27 |
942.30 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
27.81
|
27.65 |
38.99 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
41.02
|
41.97 |
61.31 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.41
|
9.18 |
15.23 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.29
|
0.39 |
1.02 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
7.80
|
3.39 |
5.83 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.09
|
1.24 |
1.15 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS
Rs In Millions
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
|
|
|
Trade Creditors |
4237.155 |
2107.964 |
3079.043 |
|
Sundry Creditors of expenses |
867.753 |
1116.470 |
779.399 |
|
Total |
5104.908 |
3224.434 |
3858.442 |
|
|
|
|
|
Note
Registered office of the company has been shifted from GR Floor D B
House Hazarimal Somani Marg, Fort, Mumbai – 400001,
BACKGROUND
Deutsche Equities India Private Limited (‘DEIPL’ or the Company”) was
incorporated on 3 October 2002 as a private Limited company under the Companies
Act, 1956). Deutsche India Holdings Private Limited., a private limited company
incorporated in
The Company has acquired corporate membership of the National Stock
Exchange (‘NSE’) and Bombay Stock Exchange Limited (‘BSE’), on 11 July 2003 and
9 October 2003 respectively and is also registered with the Securities and
Exchange Board of India (SEBI’). The Company commenced operations on ii August
2003. The Company has also acquired the membership of the derivatives segment
of the NSE. The Company has a licence from the SEBI to act as a Merchant Banker
and Underwriter.
The principal activity of the Company is to act as a stockbroker for
foreign institutional investors and domestic mutual funds. The Company also
provides merchant banking and advisory services.
BUSINESS OUTLOOK
The financial year 2009-10 turned out to be year another eventful year
for global financial markets and even more so for
In April 2009, when the global financial system had just begun to find
its feet,
During this eventful year, the business continued to build on the
franchise strengths gathered over the year – and undeniably due to Deutsche
Bank’s unwavering commitment to
The Futures and Options market has also continued to show growth –
although the products – mix has altered substantially in favour of options –
driven by investors heightened need to hedge cash portfolios dovetailing with
the revival of risk taking at the options writers end. The Directors see a lot
of growth potential in this segment in the coming years as well, especially
with the sharp rise of Algos –driven Direct market Access competing the missing
piece of the bundled product offering.
The first 3 months of the current financial year have been
OPERATIONS
The total income for the year amounted to Rs. 3295.056 Millions as
compared to Rs. 3475.653 Millions in the previous year. After deducting total
expenditure, Depreciable and Tax, the Company has earned at Net Profit after
Tax of Rs. 916.251 Millions as compared to Rs. 960.930 Millions in the previous
year and the same has been carried forward to balance sheet.
Contingent Liabilities
Rs in Millions
|
Particulars |
31.03.2010 |
31.03.2009 |
|
|
|
|
|
Income Tax Demand – Assessment Year 2005-06 |
81.986 |
81.986 |
|
Income Tax Demand – Assessment Year 2006-07 |
123.664 |
0.000 |
|
Total |
205.650 |
81.986 |
Bankers Charges
Report as per Registry
|
Name of the company |
DEUTSCHE
EQUITIES INDIA PRIVATE LIMITED |
|
Presented By |
Standard Chartered Bank, 90, |
|
1) Date and description of instrument creating the change |
Agreement of Hypothecation
of Book Debts of Broking Firms / Companies dated 24th March, 2004 |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 500.000
Millions |
|
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Hypothecation by
way of first charge to the Bank on All the book
debts, outstanding moneys, receivable claims and bills which are now due and
owing or which may at any time hereafter during the continuance of this
facility and security become dye and owing to the borrower in the course of
its business by any of the Borrowers Customers / Constituents / their Broker
/ Agents / Custodians and all / any Stock Exchange Body / Authority or
person, firm, company or body corporate or by the Government Department or
office or any Municipal or Local or Public or semi Government Body or
authority or any body corporate or undertaking or project whatever in the
public section. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
ROI : As would be
determined by bank from time to time. |
|
5) Name and Address and description of the person entitled to the charge. |
Standard
Chartered Bank, 90, |
|
6) Date and brief description of instrument modifying the charge |
Not Applicable |
|
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Not Applicable |
FIXED ASSETS
- Office
Equipment
- Computer
(Hardware)
- Telecommunication
Equipment
- Furniture and
Fixtures
- Computer
(Software)
Key developments for Deutsche Equities India Private
Limited
Deutsche Equities India Private Limited
Presents at DB Access
03/1/2010
Deutsche Equities India Private
Limited Presents at DB Access
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.45.20 |
|
|
1 |
Rs.70.27 |
|
Euro |
1 |
Rs.59.99 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
58 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.