|
Report Date : |
23.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
KOTAK SECURITIES LIMITED |
|
|
|
|
Registered
Office : |
27 BKC, C 27, G
Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
20.07.1994 |
|
|
|
|
Com. Reg. No.: |
11-134051 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 16.000
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U99999MH1994PLC134051 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMK05839B |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACK3436F |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Providing Securities Brokerage Services. |
|
|
|
|
No. of Employees
: |
Information declined by the management
|
RATING & COMMENTS
|
MIRA’s Rating : |
A (68) |
|
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 77000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is a subsidiary of Kotak Group. It is well-established and
reputed company having fine track record. The ratings reflect KSL’s continued strong presence in retail equity
broking segment and the online broking segment, comfortable capitalization levels,
comfortable liquidity profile, negligible leverage levels and sound risk
management systems by the company. Directors are reported to be experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitment. 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.
INDIAN ECONOMIC OVERVIEW
Uptick in
agriculture and construction spread some cheer as the economy grew a
higher-than-expected 4.8 % in the three months through September. Manufacturing
rose an annual rate per cent during the quarter and mining fell by 0.4 %,
government data showed while farm output rose 46%.
India has emerged as
the most attractive investment destination, thanks to a relaxation in foreign
direct investment norms, says a report. India is followed by Brazil and China
in the ranking part of EY’s Capital Confidence Barometer report based on a
survey across 70 nations. The US, France and Japan have emerged as the top
three investors likely to invest in India.
India has been
ranked 83rd globally in terms of talent competitiveness of its human
capital. Switzerland, Singapore, Denmark, Sweden and Luxembourg are the
top five in the list of 103 nations compiled by INSEAD business school.
Tax rates for
companies in India are among the highest in the world and the number of
payments is also more than the global average putting the country at low, 158th
rank on the Paying Taxes. 2014 list by the World Bank and PWC. However, the time
taken for tax payments is relatively less in India which is rated ahead of
China and Japan.
1 billion smartphone
shipments in 2013, a 39.3 % growth over 2012. This was being driven by low cost
computing in emerging markets. By 2017, total smartphone shipments are expected
to approach 1.7 billion units, resulting in a compound annual growth rate of
18.4 % between 2013 and 2017, according to research from IDC.
20 % vacancy rate of
office space in Mumbai and Delhi in the third quarter, the highest in Asia
after Chengdu, in China. According to Cushman and Wakefield, six Indian cities
are among the 10 office markets with the worst vacancies.
Foreign banks will
not have to pay stamp duty and capital gains tax, if they convert their branch
operations into a wholly owned subsidiary, according to the Reserve Bank of
India.
The Reserve Bank of
India is planning to launch CPI – indexed bonds aimed to protecting the savings
of retail investors from the impact the price rise by December end.
Central Bureau of Investigation
has booked State Bank of India, Deputy Managing Director Shyamal Acharya and
others in a graft case related to distribution of a loan of over Rs 4000 mn.
Gold and jewellery worth Rs 6.7 mn have been recovered from the residence
of Acharya.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Long term debt programme : AA |
|
Rating Explanation |
High degree of safety and very low credit
risk. |
|
Date |
July 2013 |
|
Rating Agency Name |
ICRA |
|
Rating |
Short term debt programme : A1+ |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
|
Date |
July 2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ 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 DECLINED
MANAGEMENT NON-COOPERATIVE
(CONTACT NO.: 91-22-66529191)
LOCATIONS
|
Registered Office : |
27 BKC, C 27, G
Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra,
India |
|
Tel. No.: |
91-22-43360000/ 66529191 |
|
Fax No.: |
91-22-67132430 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
AS ON 27.09.2013
|
Name : |
Devarajan Kannan |
|
Designation : |
Managing director |
|
Address : |
41, 4th Shubhagan CTS, G/4, V.P. Road, Santacruz, Mumbai -
400054, Maharashtra, India |
|
Date of Birth/Age : |
08.06.1961 |
|
Qualification : |
B.Com, C.A. and I.C.W.A. |
|
Date of Appointment : |
11.08.2006 |
|
PAN No.: |
AESPK5717N |
|
DIN No.: |
00498935 |
|
|
|
|
Name : |
Mr. Uday Suresh Kotak |
|
Designation : |
Director |
|
Address : |
62, NCPA, Apartments, Dorabjee Tata Marg, Nariman Point, Mumbai – 400021,
Maharashtra, India |
|
Date of Birth/Age : |
16.03.1959 |
|
Qualification : |
B.Com, MBA |
|
Date of Appointment : |
20.07.1994 |
|
PAN No.: |
AABPK8999F |
|
DIN No.: |
00007467 |
|
|
|
|
Name : |
Chengalath Jayaram |
|
Designation : |
Director |
|
Address : |
Satguru Simran, 7th Floor, 3rd Road, Almeida
Park, Bandra (West), Mumbai – 400050, Maharashtra, India |
|
Date of Birth/Age : |
18.04.1956 |
|
Qualification : |
B.A, PGDM |
|
Date of Appointment : |
09.01.1995 |
|
PAN No.: |
ACLPJ5511E |
|
DIN No.: |
00012214 |
|
|
|
|
Name : |
Narayan Subramaniam Ayypankav |
|
Designation : |
Director |
|
Address : |
2nd Floor, Silvaresh (Clare Villa), Plot No. 502, 13th
Road, Mumbai – 400071, Maharashtra, India |
|
Date of Birth/Age : |
09.11.1960 |
|
Qualification : |
B.Com, F.C.A. |
|
Date of Appointment : |
20.05.1997 |
|
PAN No.: |
AACPN3743P |
|
DIN No.: |
00007404 |
|
|
|
|
Name : |
Venkat Krishnan Subramanian |
|
Designation : |
Director |
|
Address : |
31-32, Solitaire, Central Avenue Road, Santacruz, Mumbai – 400054,
Maharashtra, India |
|
Date of Birth/Age : |
05.10.1961 |
|
Date of Appointment : |
27.09.2013 |
|
DIN No.: |
00031794 |
KEY EXECUTIVES
|
Name : |
Mr. Sandeep Shantilal Chordia |
|
Designation : |
Secretary |
|
Address : |
G-1602, Eternity CHS, Behind Eternity Mall, Near Teen Naka, Thane
(West), Mumbai – 400064, Maharashtra, India |
|
Date of Birth/Age : |
02.05.1976 |
|
Date of Appointment : |
26.06.2006 |
|
PAN No.: |
ACNPC1772A |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 27.09.2013
|
Names of Shareholders |
|
No. of Shares |
|
Dipak Brij Gupta jointly with Kotak Mahindra Bank Limited, India |
|
1 |
|
K.V.S. Manian jointly with Kotak Mahindra Bank Limited, India |
|
1 |
|
Shanti Ekambaram jointly with Kotak Mahindra Bank Limited, India |
|
1 |
|
Jaimin Mukund Bhatt jointly with Kotak Mahindra Bank Limited, India |
|
1 |
|
Kotak Mahindra Bank Limited, India |
|
1199985 |
|
Kotak Mahindra Capital Company Limited, India |
|
400010 |
|
Raghunath Tirupattur Venkataraman jointly with Kotak Mahindra Bank
Limited, India |
|
1 |
|
|
|
|
|
Total |
|
1600000 |
AS ON 27.09.2013
|
Equity Share Breakup |
Percentage of Holding |
|
Category |
|
|
Nationalised or other banks |
75.00 |
|
Bodies
corporate |
25.00 |
|
|
|
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Providing Securities Brokerage Services. |
||||
|
|
|
||||
|
Products/ Services : |
|
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management
|
|||||||||||||||
|
|
|
|||||||||||||||
|
Bankers : |
· Centurion Bank of Punjab Limited, Durga Niwasm G Road, Panaji - 403001, Goa, India Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan,
227,D, Nariman Point, Mumbai - 400021, Maharashtra, India |
|||||||||||||||
|
|
|
|||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Financial Institutions : |
· Kotak Mahindra Primus Limited, 36-38B Nariman Bhavan, 227, Nariman Point, Mumbai - 400021, Maharashtra, India IDBI Trusteeship Services Limited, Asian Building, Ground
Floor, 17, R. Kamani Marg, Ballard Estate, Mumbai - 400001 - 400001,
Maharashtra, India |
|
|
|
|
Auditors : |
|
|
Name : |
Price Waterhouse Chartered Accountants |
|
Address : |
Mumbai, Maharashtra, India |
|
Income-tax
PAN of auditor or auditor's firm : |
AAEFP3641G |
|
|
|
|
Enterprises which are owned, or have significant
influence of or are partners with Key management personnel and their
relatives : |
· ACE Derivatives and Commodity Exchange Limited [U67100GJ1956PLC000597] Aero Agencies Limited [U51220MH1949PLC007791] Infina Finance Private Limited [U67120MH1996PTC098584] Komaf Financial Services Limited [U65910MH1987PLC045544] Kotak Commodity Services Limited [U65910MH1987PLC042230] Asian Machinery and Equipment Private Limited
[U51900MH1959PTC011548] Matrix Business Services India Private Limited
[U74140TN2003PTC051482] Business Standard Limited [U00000DL1970PLC100242] |
|
|
|
|
Fellow Subsidiary company : |
· Kotak Alternative Oppurtunties India Fund Kotak Forex Brokerage Limited [U65910MH1988PLC048450] Kotak India Growth Fund II Kotak Investment Advisors Limited [U65990MH1994PLC077472] Kotak Mahindra (UK) Limited Kotak Mahindra Asset Management Company Limited [U65991MH1994PLC080009] Kotak Mahindra Capital Company Limited
[U67120MH1995PLC134050] Kotak Mahindra Inc Kotak Mahindra International Limited Kotak Mahindra Investments Limited [U65900MH1988PLC047986] Kotak Mahindra Mutual Fund Kotak Mahindra Old Mutual Life Insurance Limited
[U66030MH2000PLC128503] Kotak Mahindra Prime Limited [U67200MH1996PLC097730] Kotak Mahindra Trustee Company Limited
[U65990MH1995PLC090279] |
|
|
|
|
Holding company
: |
Kotak Mahindra
Bank Limited [L65110MH1985PLC038137] |
|
|
|
|
Subsidiary
company : |
Kotak Mahindra
Financial Services Limited |
|
|
|
|
Mutual fund /
venture capital fund managed by fellow subsidiary : |
· Kotak Mahindra Mutual Fund Managed by Kotak Mahindra Asset Management Company Limited Kotak Alternate Opportunities India Fund managed by Kotak
Investment Advisors Limited Kotak India Growth Fund II |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
6,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 60.000 Millions |
|
1,000,000 |
Preference Shares |
Rs. 100/- each |
Rs. 100.000 Millions |
|
|
Total |
|
Rs. 160.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1,600,000 |
Equity Shares |
Rs. 10/- each |
Rs. 16.000
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
16.000 |
16.000 |
16.000 |
|
(b) Reserves & Surplus |
19326.732 |
18181.708 |
16923.491 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
19342.732 |
18197.708 |
16939.491 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long
term liabilities |
211.428 |
210.055 |
190.973 |
|
(d) long-term
provisions |
111.705 |
94.477 |
159.947 |
|
Total Non-current
Liabilities (3) |
323.133 |
304.532 |
350.920 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
213.882 |
188.788 |
934.880 |
|
(b)
Trade payables |
5915.629 |
7542.020 |
8058.450 |
|
(c)
Other current liabilities |
634.617 |
295.741 |
1876.210 |
|
(d) Short-term
provisions |
267.355 |
434.036 |
210.401 |
|
Total Current
Liabilities (4) |
7031.483 |
8460.585 |
11079.941 |
|
|
|
|
|
|
TOTAL |
26697.348 |
26962.825 |
28370.352 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
641.562 |
690.844 |
701.541 |
|
(ii)
Intangible Assets |
8.292 |
13.155 |
30.854 |
|
(iii) Capital
work-in-progress |
0.000 |
0.000 |
0.000 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
6986.623 |
8063.060 |
7173.124 |
|
(c) Deferred tax assets (net) |
175.796 |
216.007 |
326.559 |
|
(d) Long-term Loan and Advances |
272.660 |
299.725 |
148.260 |
|
(e) Other
Non-current assets |
2053.762 |
5042.004 |
8854.649 |
|
Total Non-Current
Assets |
10138.695 |
14324.795 |
17234.987 |
|
|
|
|
|
|
(2) Current
assets |
|
|
|
|
(a)
Current investments |
1000.000 |
0.000 |
549.651 |
|
(b)
Inventories |
811.313 |
2575.385 |
277.791 |
|
(c)
Trade receivables |
3595.718 |
4488.235 |
3757.870 |
|
(d) Cash
and cash equivalents |
10028.442 |
4807.773 |
5332.158 |
|
(e)
Short-term loans and advances |
883.239 |
579.633 |
1000.236 |
|
(f)
Other current assets |
239.941 |
187.004 |
217.659 |
|
Total
Current Assets |
16558.653 |
12638.030 |
11135.365 |
|
|
|
|
|
|
TOTAL |
26697.348 |
26962.825 |
28370.352 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
4312.396 |
4457.500 |
5701.291 |
|
|
|
Other Income |
1757.533 |
1639.545 |
1674.244 |
|
|
|
TOTAL (A) |
6069.929 |
6097.045 |
7375.535 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee benefit Expenses |
1801.153 |
1982.940 |
2356.085 |
|
|
|
Other Expenses |
2214.850 |
1972.249 |
1926.429 |
|
|
|
TOTAL (B) |
4016.003 |
3955.189 |
4282.514 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2053.926 |
2141.856 |
3093.021 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
33.754 |
80.927 |
198.772 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2020.172 |
2060.929 |
2894.249 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
134.872 |
146.037 |
178.523 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1885.300 |
1914.892 |
2715.726 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
740.276 |
656.675 |
896.347 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1145.024 |
1258.217 |
1819.379 |
|
|
|
|
|
|
|
|
|
|
TRANSFER FROM
DEBENTURE REDEMPTION RESERVE |
0.000 |
0.000 |
783.625 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
16218.479 |
14960.262 |
12738.634 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to Debenture Redemption Reserve |
0.000 |
0.000 |
381.376 |
|
|
BALANCE CARRIED
TO THE B/S |
17363.503 |
16218.479 |
14960.262 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Advisory Fees |
32.012 |
34.798 |
29.338 |
|
|
|
Interest Income |
1.156 |
1.052 |
1.301 |
|
|
|
Other Income |
19.846 |
5.142 |
0.000 |
|
|
TOTAL EARNINGS |
53.014 |
40.992 |
30.639 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
715.64 |
786.39 |
1137.11 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
18.86
|
20.64 |
24.67 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
43.72
|
42.96 |
47.63 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.65
|
10.25 |
13.01 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.10
|
0.11 |
0.16 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.01
|
0.01 |
0.06 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.35
|
1.49 |
1.01 |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG TERM DEBT
|
Particulars |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
31.03.2011 (Rs.
In Millions) |
|
|
|
|
|
|
Current maturities of long-term debt |
0.000 |
0.000 |
1102.305 |
|
|
|
|
|
|
Sr. No. |
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 |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
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 |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
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] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director,
if available |
Yes |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
LITIGATION DETAILS
|
HIGH COURT OF
BOMBAY |
|
CASE DETAILS BENCH: BOMBAY |
|
Lodging No: NMAL/1791/2012 Filing Date:
06.06.2012 Reg. No.: NMA/1333/2012 Reg. Date: 06.06.2012 |
|
Main Matter Lodging No: RPAL/39/2012
Reg. No.: RPA/44/2013 |
|
Petitioner: THE COMMISSIONER OF INCOME TAX-4 Respondent: M/S. KOTAK
SECURITIES LIMITED Petn. Adv : A.R. MALHOTRA (0) District: MUMBAI |
|
Bench: DIVISION Status: Pre-Admission
Category: NOTICE OF MOTION (TAX) Last Date: 12.07.2013
Stage: Last Coram: HON’BLE SHRI JUSTICE DR. D.Y. CHANDRACHUD HON’BLE SHRI JUSTICE
R.D. DHANUKA |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10007605 |
19/06/2009 * |
1,500,000,000.00 |
KOTAK MAHINDRA BANK LIMITED |
36-38A, NARIMAN BHAVAN, 227,D, NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA |
A67232751 |
* Date of charge modification
OPERATIONS
The global economic turmoil continued to dominate with risk averseness playing
predominant factor in the equity related markets. Markets were largely driven
by liquidity in financial markets. This liquidity saw limited periods during
the year with slightly higher market volumes. With inflation and interest rates
being high, investor sentiment was partisan towards debt and bank deposits. In
addition, there continued to be significant interest in investing in gold as
liquidity was also available in the form of an active loan against gold market.
Some policy initiatives from the government spurred positive sentiments, albeit
for a very limited period of time. It was another year in which environment for
equity investments was not conducive.
The Sensex which closed at 17,404 at the end of the financial year -
2011-12 (hereinafter referred to as ‘previous financial year’) closed at 18,836
at the end of the current financial year with a high of 20,204 and low of
15,749. Similarly, the benchmark Nifty which closed at 5,296 at the end of the
previous financial year closed at 5,683 at the end of the current financial
year with a high of 6,112 and low of 4,770.
The average daily volumes decreased to Rs. 132040.000 Millions from Rs.
141100.000 Millions in the previous financial year for the Cash Segment, after
being below the levels of last year for most parts of the year and increased to
Rs. 1279950.000 Millions from Rs. 1273270.000 Millions in the previous
financial year for Derivatives Segment. The mix between Cash and Derivatives
was approximately 1:10 for the large part of the year, but the last two months
saw a further shift towards derivatives. The mix has changed significantly from
cash segment contributing 15% to 20% of total volumes prevalent 2 to 3 years
ago.
RETAIL SEGMENT
The retail investor behavior and sentiment virtually mirrored the
previous financial year. With high inflation and interest rates, bank deposits
continued to be a preferred asset. The interest in gold also continued with
gold prices touching record highs. Few corporates and Public Sector
Undertakings issued Debt paper – taxable and tax free, at very attractive
coupons. These issues received a good response and resulted in more liquidity
being taken away from equity markets. To attract first time investors to
equity, the government introduced the Rajiv Gandhi Equity Savings Scheme. First
time investors are still buying their time to make an entry into equity.
The online trading platform was made more feature rich including a
quantum leap in the speed of executing orders. To complement the online
platform, a mobile trading application was launched during the year which works
on a very wide range of handsets and tablets. The mobile application has been
very well received. Other enhancements have been made to reduce transaction
time and providing more trade information to the customer.
Customer acquisition resulted in addition of about 84,000 customers with
a large part of them being online trading customers. The total outlets stood at
1,330 at the end of the financial year. The number of registered sub brokers/
authorized persons stood at 2,119 for NSE and 1,560 for BSE.
INSTITUTIONAL
EQUITIES
The equity market was subdued and the institutional market volume did
not grow during FY13. Despite flat FII Volumes, net FII investment in India
during the fiscal was to the tune of INR 1400 billion. Institutional volumes
continued to grow in Index Options, which commanded a disproportionate share in
the overall Institutional Derivatives volumes. Electronic Trading continued to
remain the focus area for Kotak Institutional Equities and it expanded its
client coverage in both Algorithmic & Direct Market Access trading. The
Company was ranked as Best Local Brokerage, the Research Team was ranked second
for Overall Country Research and third for Overall Country Sales in the Asia
Money Brokers Poll 2012.
PRIMARY MARKET
The market environment has been left wanting for facilitating IPOs and
over all the IPO market for Equities was lack luster. However, there were
number of debt offers, both from the private sector and from Public Sector
Undertakings. Towards the end of the last financial year, Offer for Sale on the
electronic platforms of the Stock Exchanges was introduced. During the year,
number of promoters used this platform to lower their holdings. However barring
few offers, participation has largely been from Institutional investors. In the
current financial year, the Company was associated with the distribution of 12
Equity Public Offer Issues, 20 Debt Public Offer Issues and 23 Offer for Sale.
AWARDS AND
RECOGNITIONS
The Company has received following awards during current financial year
for its performance:
a) Fastest growing Equity Broking House’ by BSE IPF – D&B Equity
Broking Awards for 2012
b) The Best Equity House in India by Finance Asia for the year 2012
c) Best Brokerage in India by Finance Asia – 2012
d) Ranked #1 on a weighted formula basis in Institutional Investor’s
All-India Research Team survey - 2012
e) Kotak Institutional Equities - Analysts ranked #1 in financial
services; #3 in the media sector in the Wall Street Journal survey of Asia's
best analysts – 2012
f) Best Local Brokerage in the Asiamoney Brokers Poll – 2012
Ø Ranked #2 for Best Overall Country Research amongst all domestic and foreign
brokerages
Ø Ranked #2 for Best Execution amongst all domestic and foreign
brokerages
Ø Ranked #2 for Most Independent Research Brokerage amongst all domestic
and foreign brokerages
Ø Ranked #3 for Best in Sales Trading amongst all domestic and foreign
brokerages
FUTURE OUTLOOK
The year started on an optimistic note. However, key economic indicators
– GDP, IIP, Inflation, BoP etc did not provide sufficient cheer. The finance
budget for Financial Year 2013-14 has few provisions aimed at increasing
investment in manufacturing and investments in capital markets. The USD Rupee
has been stable around Rs 54 to Rs 55.
Inflation which was high, but stable, during the last quarter has now
shown signs of easing. Price of gold has fallen sharply along with some other
commodities, including crude which has come off recent highs. Reduction in
inflation should result in lowering of interest rates. In India a key
determining factor for Capital Markets would be the ensuing elections. Capital
Markets would wait and watch for developments on new government formation, key
ministries and expected policy initiatives.
US markets have rallied and benchmark indices have posted record highs
during the year on the back of a relatively stable economy. Europe continues to
be a worry, with Cyprus being one more country to be rocked by a crisis. Apart
from tensions in the middle east, there is heightened tension between North and
South Korea.
Cash market volumes have been declining and could show an increase if
some of the above parameters turn positive for capital markets. Regulatory
changes continue with an aim to make the market more transparent and protecting
investor interests. Towards this end, KYC and Surveillance by members has been
in focus. As a leader and responsible Capital Market intermediary, the company
is taking all suitable steps to ensure adherence to the above.
At present, over capacity in the industry continues with a continuing
and incessant pressure on realization rates. As a business leader, the company
is combating the same through focus on its products as well as service. These
measures will ensure that the company would be well positioned as and when the
appetite for Equity increases. The company has been judicially improving and
enhancing its service while keeping a close watch and control on costs.
CONTINGENT
LIABILITIES (AS ON 31.03.2013):
1. Income tax matters in respect of which appeal is pending - Rs. 25.835 Millions (Previous Year Rs. 48.788 Millions). This is being disputed by the Company and hence not provided for. Out of the total demand of Rs. 218.884 Millions, the Company has already paid an amount of Rs. 72.855 Millions. The balance of Rs. 146.029 Millions has not been paid as the Company has filed an application with the Income tax authorities to adjust this amount against the refund arising in subsequent year.
2. Service tax matters in respect of which appeal is pending - Rs. 10.403 Millions (Previous Year Rs. 10.171 Millions). This is being disputed by the Company and hence not provided for.
3. Capital commitments (net of advances) - Rs. 39.490 Millions (Previous Year Rs. 15.928 Millions)
4. Claims against the Company not acknowledged as debt by the Company – Rs. 39.720 Millions (Previous Year – Rs. 77.352 Millions)
FIXED ASSETS:
· Buildings
Furniture
and fixtures
Vehicles
Motor
vehicles
Office
equipment
Computer
equipments
Other
equipments
Leasehold
improvements
Computer
software
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 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 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. 62.24 |
|
|
1 |
Rs. 101.81 |
|
Euro |
1 |
Rs. 84.88 |
INFORMATION DETAILS
|
Information
Gathered by : |
HNA |
|
|
|
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
68 |
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.