MIRA
INFORM REPORT
|
Report Date : |
01.08.2012 |
IDENTIFICATION DETAILS
|
Name : |
ICICI SECURITIES LIMITED (w.e.f. 26.03. 2007) |
|
|
|
|
Formerly Known
As : |
ICICI BROKERAGE SERVICES LIMITED |
|
|
|
|
Registered
Office : |
ICICI Centre, H.T. Parekh Marg, Churchgate, Mumbai – 400 005, |
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|
Country : |
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|
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Financials (as
on) : |
31.03.2011 |
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|
|
|
Date of
Incorporation : |
09.03.1995 |
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|
|
|
Com. Reg. No.: |
11-086241 |
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|
|
|
Capital
Investment / Paid-up Capital : |
Rs.2110.707 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U67120MH1995PLC086241 |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACI0996E |
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|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
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|
|
|
Line of Business
: |
Subject is engaged
in the business of broking (institutional and retail), merchant banking and
advisory services. |
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|
|
|
No. of Employees
: |
4000 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (60) |
|
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 11651000 |
|
|
|
|
Status : |
Good |
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|
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject belongs
to ICICI Group Company. It is a well established and a reputed company having
fine track. Financial position of the company appears to be sound. Trade relations
are reported as decent. Business is active. Payments are reported to be
regular and as per commitments. The company can
be considered good for normal 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.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
A1+ (Short term debt programme) |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk |
|
Date |
August 10, 2011 |
|
Rating Agency Name |
CRISIL |
|
Rating |
AAA (Bond issue) |
|
Rating Explanation |
Highest degree of safety and lowest credit risk |
|
Date |
August 10, 2011 |
RBI DEFAILTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAILTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION PARTED BY
|
Name : |
Mr. Thomas Dsouza |
|
Designation : |
Assistant Vice President – Finance |
|
Contact No.: |
91-22-22882460 |
|
Date : |
31.07.2012 |
LOCATIONS
|
Registered Office/ Institutional Services/ Corporate Office 1 : |
ICICI Centre, H.T. Parekh Marg, Churchgate, Mumbai – 400 005, |
|
Tel. No.: |
91-22-22882460/ 70/ 40701112/ 3/ 4 |
|
Fax No.: |
91-22-22826455/ 22845572 |
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E-Mail : |
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Website: |
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|
Location : |
Owned |
|
|
|
|
Head Office 1 : |
7th Floor, Akruti Centre Point, Marol Naka, |
|
Tel. No.: |
91-22-67705394 |
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Head Office 2 : |
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Corporate Office 2 : |
ICICI Bank Towers, 3rd Floor, NBCC Place, North Tower
Pragati Vihar, Bisham Pitamah Marg, Lodi Road, New Delhi – 110 003, India |
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Tel. No.: |
91-11-24390000 |
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|
|
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Overseas Office : |
Located at: v
v
v
|
DIRECTORS
As on 21.06.2012
|
Name : |
Ms. Chanda Deepak Kochhar |
|
Designation : |
Chairperson |
|
Address : |
CCI Chambers, Flat No.45, |
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Date of Birth/Age : |
17.11.1961 |
|
Qualification : |
"MMS, ICWA, B.A. (Eco)" |
|
Date of Appointment : |
15.10.2008 |
|
DIN No.: |
00043617 |
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|
|
|
Name : |
Mr. Anup Animesh Bagchi |
|
Designation : |
Managing Director and Chief Executive Officer |
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Address : |
A-801, 8th Floor, El- |
|
Date of Birth/Age : |
26.07.1970 |
|
Qualification : |
B.Tech, PGDM |
|
Date of Appointment : |
08.01.2008 |
|
DIN No.: |
00105962 |
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|
|
|
Name : |
Mr. Uday Madhav Chitale |
|
Designation : |
Director |
|
Address : |
167-C, Poonawadi, |
|
Date of Birth/Age : |
20.10.1949 |
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Qualification : |
B.Com , F.C.A. |
|
Date of Appointment : |
27.06.2006 |
|
DIN No.: |
00043268 |
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|
Name : |
Mr. Ketan Jagdishbhai Patel |
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Designation : |
Director |
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Address : |
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|
Date of Birth/Age : |
15.02.1962 |
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Qualification : |
MBA, Member CIMA, B.Sc. (Eco) |
|
Date of Appointment : |
15.10.2008 |
|
DIN No.: |
00935884 |
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|
|
|
Name : |
Mr. Narendra Madhusudan Murkumbi |
|
Designation : |
Director |
|
Address : |
7th Floor, Devchand House, Shiv Sagar Estate, Dr. Annie
Besant Road, Worli, Mumbai – 400 018, Maharashtra, India |
|
Date of Birth/Age : |
14.04.1970 |
|
Qualification : |
"B. E. (E & C) MBA (IIM-Ahmedabad)" |
|
Date of Appointment : |
15.10.2008 |
|
DIN No.: |
00009164 |
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|
|
|
Name : |
Mr. Pravir Vohra |
|
Designation : |
Director |
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Address : |
701, ICICI Apartments, |
|
Date of Birth/Age : |
18.05.1954 |
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Qualification : |
Post Graduate in Economics |
|
Date of Appointment : |
17.02.2009 |
|
DIN No.: |
00082545 |
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|
|
|
Name : |
Ms. Zarin Bomi Daruwala |
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Designation : |
Director |
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Address : |
54/A, 5th Floor, |
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Date of Birth/Age : |
05.02.1965 |
|
Qualification : |
ACA, ACS |
|
Date of Appointment : |
25.05.2011 |
|
DIN No.: |
00034655 |
|
|
|
|
Name : |
Mr. Ajay Radhey Shyam Saraf |
|
Designation : |
Whole Time Director |
|
Address : |
Flat 1902, Tower B, Beaumonde, Appasaheb Marathe Marg, Old Mills
Compound, Prabhadevi, Mumbai – 400 025, |
|
Date of Birth/Age : |
16.12.1969 |
|
Qualification : |
CA, ICWA |
|
Date of Appointment : |
25.05.2011 |
|
DIN No.: |
00074885 |
KEY EXECUTIVES
|
Name : |
Mr. Raju Nanikram Nanwani |
|
Designation : |
Secretary |
|
Address : |
B-503, Aakanksha, Vasari Hill, Goregoan (West), Mumbai – 400 062, |
|
Date of Birth/Age : |
05.01.1973 |
|
Date of Appointment : |
17.07.2007 |
|
PAN No.: |
AABPN6479R |
|
|
|
|
Name : |
Mr. Thomas Dsouza |
|
Designation : |
Assistant Vice President – Finance |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 21.06.2012
|
Names of Shareholders (Equity Shares) |
|
No. of Shares |
|
Vaijayanti Naik |
|
500 |
|
Ajay Radhey Shyam Saraf |
|
500 |
|
ICICI Bank Limited Address: Securities Market Services, Empire Complex, F7/E7, 1st
Floor, 414, Senapati Bapat Marg, Lower Parel, Mumbai – 400 013, |
|
805350000 |
|
Anup Animesh Bagchi |
|
500 |
|
Gopakumar Puthenveettil |
|
500 |
|
Subir Saha |
|
500 |
|
Charanjit Attra |
|
500 |
|
ICICI Securities Primary Dealership Limited Address: Securities Market Services, Empire Complex, F7/E7, 1st
Floor, 414, Senapati Bapat Marg, Lower Parel, Mumbai – 400 013, |
|
500 |
|
Total |
|
805353500 |
As on 21.06.2012
|
Names of Shareholders (Preference Shares) |
|
No. of Shares |
|
ICICI Home Finance Company Limited Address: |
|
5000000 |
|
Total |
|
5000000 |
As on 21.06.2012
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Nationalised or other banks |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged
in the business of broking (institutional and retail), merchant banking and
advisory services. |
|
|
|
|
Services : |
v Brokerage commission form primary market operations v Brokerage commission from secondary market operations v Income from Advisory Services |
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|
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Terms : |
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Selling : |
Cash and Credit |
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|
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Purchasing : |
Cash and Credit |
GENERAL INFORMATION
|
Customers : |
End Users |
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No. of Employees : |
4000 (Approximately) |
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Bankers : |
ICICI Bank Limited, Capital Market Division, 30, Mumbai Samachar Marg,
Fort, Mumbai – 400 001, |
|||||||||||||||||||||
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|||||||||||||||||||||
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Facilities : |
Cash Credit and LC – Rs.3000.000 millions (From ICICI Bank Limited)
Notes: (A) Cash credit
facility (Secured against first charge on all receivables , book debts, cash flows,
and proceeds arising there from including but not limited to the Company's
cash in hand both present and future )
Notes: (A) (Repayable
within one year Rs. Nil Previous year Rs. Nil) (B) (Repayable within
one year Rs. Nil Previous year Rs. Nil) (C) Includes
Commercial paper (Maximum amount raised at any time during the year
Rs.3612.965 millions (Previous year Rs.3728.860 millions) (D) Includes Bank Overdraft (INR 1183.483 millions) and Commercial Paper
(INR 1104.257 millions) |
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|
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Banking
Relations : |
-- |
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|
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Auditors : |
|
|
Name : |
S.R. Batliboi and Company Chartered Accountants |
|
Address : |
6th Floor, |
|
Income-tax
PAN of auditor or auditor's firm : |
AALFS0506L |
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Holding Company
: |
ICICI Bank Limited, CIN No.: L65190GJ1994PLC021012 |
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Subsidiary
Companies : |
v
ICICI Securities Holding Inc., v
ICICI Securities Inc., |
|
|
|
|
Fellow
Subsidiaries : |
v ICICI Securities
Primary Dealership Limited, v ICICI Prudential
Life Insurance Company Limited, v ICICI Lombard
General Insurance Company Limited, v ICICI Prudential
Asset Management Company Limited, v ICICI Home
Finance Company Limited, v ICICI Venture
Funds Management Company Limited, v
ICICI Investment Management Company Limited, v
ICICI Bank |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1000000000 |
Equity Shares |
Rs.2/- each |
Rs.2000.000 Millions |
|
5000000 |
13.75% Cumulative Non-Convertible Redeemable Preference Shares |
Rs.100/- each |
Rs.500.000 Millions |
|
|
Total |
|
Rs.2500.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
805353500 |
Equity Shares |
Rs.2/- each |
Rs.1610.707 Millions |
|
5000000 |
13.75% Cumulative Non-Convertible Redeemable Preference Shares |
Rs.100/- each |
Rs.500.000 Millions |
|
|
Total |
|
Rs.2110.707 Millions |
Notes:
All the above,
805,353,500 Equity Shares of Rs.2/- each are held by ICICI Bank Limited
(Holding Company) and its nominees and 5,000,000 13.75% cumulative non-convertible
redeemable preference shares of Rs.100 each are held by ICICI Home Finance
Company Limited (Fellow Subsidiary). Preference shares are redeemable on 18th
December, 2013.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
2110.707 |
1110.707 |
1110.707 |
|
|
2] Share Application Money Pending Allotment |
0.000 |
1000.000 |
0.000 |
|
|
3] Reserves & Surplus |
802.128 |
691.169 |
624.126 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2912.835 |
2801.876 |
1734.833 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1324.218 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
1710.300 |
2787.740 |
4291.596 |
|
|
TOTAL BORROWING |
3034.518 |
2787.740 |
4291.596 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
5947.353 |
5589.616 |
6026.429 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
299.778 |
380.811 |
364.247 |
|
|
Capital work-in-progress (including capital advances) |
37.223 |
17.118 |
42.090 |
|
|
|
|
|
|
|
|
INVESTMENT |
784.458 |
738..959 |
2136.851 |
|
|
DEFERRED TAX ASSETS |
132.426 |
22.574 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.487
|
0.426
|
0.917
|
|
|
Sundry Debtors |
3070.124
|
1269.508
|
888.215
|
|
|
Cash & Bank Balances |
4269.841
|
3888.597
|
1941.244
|
|
|
Other Current Assets |
292.805
|
190.835
|
123.159
|
|
|
Loans & Advances |
1547.246
|
2173.091
|
2579.493
|
|
Total
Current Assets |
9180.503
|
7522.457
|
5533.028
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
3568.653 |
2056.963
|
1711.649
|
|
|
Other Current Liabilities |
828.146
|
970.077
|
301.176
|
|
|
Provisions |
90.236
|
65.263
|
36.962
|
|
Total
Current Liabilities |
4487.035
|
3092.303
|
2049.787
|
|
|
Net Current Assets |
4693.468
|
4430.154
|
3483.241
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
5947.353 |
5589.616 |
6026.429 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Operating revenue, net |
6765.799 |
7251.951 |
5182.050 |
|
|
|
Other Income |
315.915 |
194.665 |
|
|
|
|
TOTAL (A) |
7081.714 |
7446.616 |
5182.050 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing service costs |
944.882 |
|
4401.371 |
|
|
|
Employee related expenses |
2307.603 |
2167.090 |
|
|
|
|
Administrative selling other expenses |
1700.086 |
2016.831 |
|
|
|
|
TOTAL (B) |
4952.571 |
5105.307 |
4401.371 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2129.143 |
2341.309 |
780.679 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST
FINANCIAL CHARGES (D) |
276.871 |
409.899 |
575.221 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1852.272 |
1931.410 |
205.458 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
152.350 |
151.831 |
138.158 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAX
(E-F) (G) |
1699.922 |
1779.579 |
67.300 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
567.967 |
552.737 |
23.121 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1131.955 |
1226.842 |
44.179 |
|
|
|
|
|
|
|
|
|
|
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
253.131 |
355.781 |
635.159 |
|
|
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
|
|
|
1187.895 |
68.750 |
19.401 |
|
|
|
Interim Dividend on Equity Shares |
|
920.017 |
240.061 |
|
|
|
Tax on Dividends |
|
168.041 |
44.095 |
|
|
|
Transfer to General Reserve |
|
122.684 |
20.000 |
|
|
|
Transfer to Debenture redemption Reserve |
|
50.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
297.191 |
253.131 |
355.781 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Income from services |
116.586 |
83.048 |
149.300 |
|
|
TOTAL EARNINGS |
116.586 |
83.048 |
149.300 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
1.45 |
3.75 |
0.07 |
|
|
|
Diluted |
0.00 |
3.74 |
0.07 |
|
|
Particulars |
|
|
31.03.2012 |
|
Sales Turnover (Approximately) |
|
|
7180.000 |
|
|
|
|
|
Expected Sales (2012-2013): Rs.7150.000 millions
The above information has been parted by Mr. Thomas Dsouza (Assistant
Vice President – Finance).
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
15.98
|
16.48
|
0.85 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
25.13
|
24.54
|
1.31 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
17.93
|
22.52
|
1.14 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.58
|
0.64
|
0.04 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.58
|
2.10
|
3.65 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.05
|
2.43
|
2.70 |
LOCAL AGENCY FURTHER INFORMATION
Details of Sundry Creditors:
|
Particulars |
31.03.2011 (Rs. in millions) |
31.03.2010 (Rs. in millions) |
31.03.2009 (Rs. in millions) |
|
Sundry Creditors |
|
|
|
|
- Creditors due small micro enterprises |
0.000 |
0.000 |
0.000 |
|
- Creditors due others |
3568.653 |
2056.963
|
1711.649
|
|
Total |
3568.653 |
2056.963 |
1711.649 |
|
Check List by Info Agents |
Available in Report (Yes /
No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
No |
|
5) Type of Business |
Yes |
|
6) Line of Business |
Yes |
|
7) Promoter’s background |
Yes |
|
8) No. of employees |
Yes |
|
9) Name of person contacted |
Yes |
|
10) Designation of contact person |
Yes |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
Yes |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
Yes |
|
20) Export / Import details (if applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter involved in |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
Yes |
|
31) PAN of Proprietor/Partner/Director, if available |
No |
|
32) Passport No of Proprietor/Partner/Director, if available |
No |
|
33) Voter ID No of Proprietor/Partner/Director, if available |
No |
OVERVIEW
The Company, incorporated
in 1995, is a public company engaged in the business of broking (institutional
and retail), merchant banking and advisory services.
Reserve Bank of
India (RBI) had, vide its circular dated July 4, 2006, prohibited a Primary
Dealer (PD) from having a subsidiary. Accordingly, ICICI Securities Primary
Dealership Limited, the then holding company of the Company, was required to
restructure the ownership of its subsidiaries. Accordingly, in May 2007, ICICI
Securities Primary Dealership Limited and ICICI Trusteeship Services (ICICI
Equity Fund) transferred their respective holdings in the Company to ICICI Bank
Limited. As a result, the Company became a 100% subsidiary of ICICI Bank
Limited.
During May 2007,
the Company also acquired the holdings of ICICI Securities Primary Dealership
Limited in ICICI Securities Holding Inc. and with this acquisition; the Company
has a subsidiary - ICICI Securities Holdings Inc. and a step-down subsidiary -
ICICI Securities Inc.
As a part of RBI
approved restructuring plan of ICICI Securities Primary Dealership Limited, the
merchant banking business of ICICI Securities Primary Dealership Limited was to
be carried on by the Company. Accordingly, the Company, on July 9, 2007,
obtained merchant banking license from Securities and Exchange Board of India
(SEBI). After completion of the aforesaid reorganization, the Company is now
engaged in following activities:
· Broking
(institutional and retail)
· Merchant banking
· Advisory
services
· Distribution of financial
products
Employees
associated with the merchant banking businesses as well as with other service
functions were transferred from ICICI Securities Primary Dealership Limited to
the Company.
INDUSTRY OVERVIEW:
Equities
Fiscal 2011 was a
mixed year for the Indian stock market. The major Indian stock indices ended up
about 10% in fiscal 2011, after a strong rally until November 2010 but a
subsequent correction in the later part of the fiscal. Robust earnings growth
coupled with lower-than-budgeted fiscal deficit were the key highlights of the
Indian economy during fiscal 2011.
Foreign
Institutional Investor (FII) fund inflows into the Indian equity markets
continued to be strong at USD 24.00 billion. The overall turnover in the equity
market grew by about 39% in fiscal 2011 but retail participation within the
same saw mixed participation. The mix of turnover between the cash segment and
the derivatives segment changed substantially in fiscal 2011 as compared to
fiscal 2010 as NSE cash volumes dipped nearly 16% y-o-y. Within the derivatives
segment, the proportion of options turnover continued to remain stronger at 63%
of the F&O segment.
Corporate Finance
During the year,
the total funds raised by way of public issues were Rs.608.00 billion as against
Rs.494.00 billion in fiscal 2010. A large part of public issuances in fiscal
2011 comprised the Government’s disinvestment programme in companies like Coal
India Limited, Power Grid Corporation of India Limited, MOIL Limited, The
Shipping Corporation of India Limited, SJVN Limited and Engineers India
Limited. The bankers to the public sector issuances were chosen through a
competitive bidding process leading to significantly discounted pricing for
managing these issues. The capital raised through international offerings was
Rs.487.00 billion in fiscal 2011 as against Rs.453.00 billion in fiscal 2010.
The year also saw
a number of retail bond issues, including long term infrastructure bond
issuances, which were introduced as a tax saving instrument in fiscal year
2011. The total amount raised through these retail bond issuances amounted to
Rs.94.00 billion in fiscal 2011, which included Rs.24.00 billion raised through
the issuance of long term infrastructure bonds.
Rs.302.00 billion
was raised from 286 private equity deals in fiscal 2011 compared to Rs.245.00
billion raised from 269 private equity deals in fiscal 2010. Energy, Banking,
Financial Services and Insurance (BFSI), Engineering and Construction,
IT&ITES and Telecom were the dominant sectors in both years by deal value.
Average deal size in fiscal 2011 was approximately USD 28.0 million as compared
to approximately USD 21.0 million in fiscal 2010.
Subdued market
appetite due to inflation concerns and volatility in the market led to a three
month hiatus in fund raising by issuers in the latter part of the year.
Distribution of Retail Financial Products
Fiscal 2011 saw
several key regulatory developments in the financial services sector. Investors
welcomed the fresh tax relief granted towards Infrastructure Bonds in the
Budget 2010. High interest rate also made FMPs more attractive leading to an
increase in the number of FMPs available in the market.
The Mutual Fund
industry showed positive net additions towards the end of fiscal 2011. However the
Life Insurance industry faced challenges on account of the revised regulations
on Unit Linked Insurance Plans (ULIPs). For the year gross sale of Equity
Mutual Funds was at Rs. 740.80 billion, a growth of 7% from Fiscal 2010. Gross
sale of Life insurance business (till Feb 11) was Rs. 416.79 billion (Weighted
New premium).
Private Wealth Management
The Indian economy
has emerged strongly from the financial crisis of fiscal 2009. GDP growth has
increased from 6.8% in fiscal 2009 to 8 % in fiscal 2010 and the anticipated
growth is 8.5 % in fiscal 2011. The Indian equity markets have rebounded in
line with the growth of GDP as the markets have more than doubled from the
bottom over the last two years. This has resulted in a sharp increase in HNI
wealth in
FINANCIAL
HIGHLIGHTS:
Profit after tax
for the year ended March 31, 2011 decreased to Rs.1131.900 millions from
Rs.1226.800 millions in the previous year, primarily due to an overall decrease
in income by Rs.364.900 millions.
After taking into
account the balance of Rs.253.100 millions (previous year: Rs. 355.800
millions) brought forward from the previous year, the profit available for
appropriation is Rs.1435.100 millions (previous year: Rs.1582.600 million), of
which Rs.113.200 millions (previous year: Rs.122.700 millions) has been
transferred to General Reserve.
OPERATIONAL REVIEW
The Company has
set its vision as 'Creating Informed Access to the Wealth of the Nation' for
its diversified set of clients that include corporates, financial institutions,
high net-worth individuals and retail investors. The Company continued to
expand its client base across various business segments, assisting its
customers in meeting their financial goals by providing them with research,
advisory and execution services.
Equities
The Company
launched the most comprehensive research offering in
Institutional
research, apart from its company coverage, produced a number of thematic
reports on sectors such as banking, cement, IT services, media, metals, oil and
gas, pharmaceuticals, power, real estate, shipyards and telecom.
The institutional
equities business of the Company continued to empanel new domestic and foreign
institutional clients.
The Company joined
Fidessa’s connectivity network in readiness to receive international CARE and
Direct Market Access (DMA) flow from the 2,400 buy-sides and 550 brokers
already connected to the network. The Company enhanced its own trading platform
as well to provide DMA trading to its institutional clients.
The India
Unlimited investor conference series was extended successfully in
ICICIdirect.com, the
online trading platform of the Company continued to strengthen its customer
base across the retail segment by introducing several new features to serve its
customers.
During the year,
‘F&O@FingerTips’ was launched to provide real-time advanced information on
Derivative contracts to its customers.
Recognizing the
need of active traders to minimise their transaction costs during intra-day
trading, the Company introduced an innovative order-based brokerage structure
in the options segment.
The Company launched
Equity SIP, a first-of-its-kind comprehensive facility in
The Company was
the first Indian broking firm to offer ‘Life Time Prepaid Brokerage Plans’
aimed at helping customers to optimize their transaction costs and spread their
trading over a period of time. One of the unique features of these plans is
that unutilized brokerage is refunded to the customer post the validity period.
During the year,
the Company also partnered with Microsoft to offer Rich Internet Application
(RIA) on ICICIdirect.com to give its online investors and traders a
personalized, intuitive and immersive end-user experience. During the year, the
Company also launched reports on the impact of International Financial
Reporting Standards (IFRS) on Indian corporates.
ICICIdirect’s
research team has coverage of 206 Indian companies in over 20 sectors. Strong
research support with regular updates has ensured customer satisfaction and
loyalty.
Currently, the
Company has the largest customer account base of 2.2 million and one of the
largest pan-India distribution networks of over 220 ICICI direct stores in 66
cities and over 900 sub-brokers across 500 cities in
Corporate Finance
The Company
continued to consolidate its position as one of the leaders in the domestic
equity capital markets. Some of the key capital market issuances lead managed
by the Company were:
• Follow-on public offering (FPO) of Powergrid Corporation of India
Limited, Shipping Corporation of India Limited and Engineers India Limited
• IPO of Jaypee
Infratech Limited, A2Z Maintenance and Engineering Services Limited, Punjab and
Sind Bank, Nitesh Estates Limited, Parabolic Drugs Limited and Commercial
Engineers and Body Builders Company Limited (CEEBCO); and
• Qualified Institutional Placement (QIP) of Adani Enterprises Limited
and GMR Infrastructure Limited.
In the advisory
space, some of the transactions advised by the Company included the following:
·
· Pre-IPO
placement of Muthoot Finance with Barings Private Equity;
· Pre-IPO
placement of CEEBCO with Tata Capital Limited;
· De-merger of rail
and engineering Assets of Texmaco Limited into a separate company and;
· Preferential allotment in Apar Industries Limited to Franklin
Templeton
To tap the growth
opportunities in the mid market advisory space, and to offer investment
opportunities to the numerous private equity funds looking to invest in India,
the Company setup a dedicated team to originate advisory transactions in the
sub US$ 10 million space.
Distribution of Retail Financial Products
In fiscal 2011,
the Company consolidated its position among the leading mutual fund
distributors. In the Life Insurance space, the Company increased its share in
the distribution of ICICI Prudential schemes. The Company also established
itself as one of the leading distributors in alternate products like Portfolio
Management Services.
During the year,
the Company launched the National Pension System (NPS) facility on its online
broking site, ICICIdirect.com. The Company was the first financial service
provider to offer such an online facility in
OUTLOOK
Equities
Fiscal 2012 is
expected to witness head winds of inflation and volatile global scenario, while
the corporate results are expected to remain strong. Additionally, the
developed markets are expected to give reasonable double digit returns and
thus, the inflows into the Indian markets are expected to be lower than last
year.
The competitive
intensity for institutional equities in
The participation
of retail investors in the direct equity markets is expected to remain in line
with that of last year. The main trigger for a spurt in account openings seem
to be attractively priced IPO issues. The Company will continue to uncover
newer segments of clients and enhance products and services to maintain its
leadership position.
Corporate Finance
The Company
expects fund raising activity to gain momentum in the coming year after the
first quarter. There has been a prolonged phase of corporates not being able to
raise capital from the market due to market volatility. A healthy pipeline of
issues is waiting to come into the market.
In the current
year, the Company’s focus will be on sectors that are ready to tap
opportunities that the growing Indian economy presents. In fiscal 2012, the
Company expects public sector divestment to continue. The Company will continue
to play a meaningful role in equity issuances including the PSU divestment
program. The key themes for fiscal 2012 that are expected to drive fund raising
activity through either the capital market or private equity route are infrastructure
and real estate development, healthcare and the rapid growth of small and
medium sized companies.
Distribution of Retail Financial Products
The regulations
around distribution of retail financial products are expected to stabilise. Fresh
regulations are expected to focus on disclosure and client protection. The
Company is well positioned to capture a significant share of this business
opportunity.
SUBSIDIARY COMPANIES
The Company has
two subsidiaries in the
During the year,
ISHI proceeded with its plans to divest its investment advisory business for
individuals in the
I-Sec. Inc. is
registered with the Securities and Exchange Commission (SEC) and is a member of
the Financial Industry Regulatory Authority (FINRA).
During the year,
I-Sec. Inc. continued to make its presence felt in the FII community by
servicing its institutional clientele. Meetings and road shows were organised
with Indian corporates to meet institutional investors in both
ACHIEVEMENTS
During the year,
the Company received several accolades for its pioneering initiatives.
ICICI direct.com
was adjudged 'Best E-Brokerage House 2010' at the Outlook Money NDTV Profit
Awards. The Company has won the award for six consecutive years since the
institution of the award.
The Company also
won the CMO Asia Awards for Excellence in Branding and Marketing for Brand
Leadership Award (overall), 'Campaign of the Year' for the Trade Racer
Campaign, Brand Excellence in Banking and Financial Services for the store
format, Award for Brand Excellence in the Internet Business.
Frost and Sullivan
conferred the Award for Customer Service Leadership to the Company.
In the technology
space, the Company received several awards for its path breaking innovations on
ICICIdirect.com. The Company was conferred with the Gold CIO award jointly by
CIOL and Dataquest at the Enterprise Awards 2010.
IDG India's CIO
magazine recognized Joydeep Dutta, the Chief Technology Officer of the Company
as a recipient of CIO100 award in 2010.
CFO Institute of
India conferred the ‘CFO100 recognising the Winning Edge in 2010’ to Charanjit
Attra, the Chief Financial Officer of the Company.
CONTINGENT LIABILITIES: (AS ON 31.03.2011)
The following are details
of contingent liabilities.
a. Income tax
matters disputed by the Company are Rs.762.153 millions.
b. Service tax
matters disputed by the Company are Rs.100.956 millions.
c. I CICI
Securities, Inc., the step down subsidiary of the Company, has sub-leased its
premises. As per the prevailing practice in the New York City sub-lease market,
the Company has provided guarantee in favour of sub lessee, amounting to USD
4000 thousand to secure ICICI Securities Inc.’s performance of its lease
obligations.
Bankers Charges
Report as per Registry
|
Corporate
identity number of the company |
U67120MH1995PLC086241 |
|
Name of the
company |
ICICI SECURITIES LIMITED |
|
Address of the
registered office or of the principal place of business in |
ICICI Centre, H.T. Parekh Marg, Churchgate, Mumbai – 400 005, E-Mail: raju.nanwani@icicisecurities.com |
|
This form is for |
Creation of
charge |
|
Type of charge |
Others
(Receivables) |
|
Particular of
charge holder |
CIN No.: L65190GJ1994PLC021012 ICICI Bank Limited, Capital Market Division, 30, Mumbai Samachar Marg,
Fort, Mumbai – 400 001, E-Mail: jalketu.chinoy@icicibank.com |
|
Nature of
description of the instrument creating or modifying the charge |
Deed of
Hypothecation (DOH ) |
|
Date of
instrument Creating the charge |
05.01.2011 |
|
Amount secured by
the charge |
Rs.1500.000
millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest: I Base + 3.75%
(Presently it is 12%) Terms of
Repayment: Charge is created
for Cash Credit facility of Rs.3000.000 millions and The Loan can be taken
and repaid any time during the tenure of loan. Margin: Margin is 50% the
loan amount. Extent and
Operation of the charge: First and
exclusive charge |
|
Short particulars
of the property charged |
Charge is created
on "Receivables" of ICICI Securities Limited. Receivables-All
amounts owing and received and/or receivable, all book debts, all cash flows,
receivables and proceeds including rights, interest, title, benefits, claims
and demands, both present and future |
FIXED ASSETS:
Tangible Assets
v Computers
v Furniture and Fixtures
v Office Equipment
v Vehicles
v Leasehold Improvements
Intangible Assets
v Software
v CMA Membership Right
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.55.80 |
|
|
1 |
Rs.87.67 |
|
Euro |
1 |
Rs.68.45 |
INFORMATION DETAILS
|
Information
Gathered by : |
PJA |
|
|
|
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
60 |
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.