MIRA INFORM REPORT
|
Report Date : |
26.12.2014 |
IDENTIFICATION DETAILS
|
Name : |
ICICI SECURITIES LIMITED (w.e.f. 26.03.2007) |
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Formerly Known
As : |
ICICI BROKERAGE SERVICES LIMITED |
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Registered
Office : |
ICICI Centre, H.T. Parekh Marg, Churchgate, Mumbai – 400 020, |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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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.1610.700 millions |
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CIN No.: [Company Identification
No.] |
U67120MH1995PLC086241 |
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IEC No.: |
Not Available |
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TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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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
: |
Information declined by the Management. |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (80) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a wholly owned subsidiary of ICICI Bank, offers broking
services to institutional and retail clients in the cash equity and
derivatives markets. It is a well-established company having excellent track record.
The rating reflects the company’s strong market position in retail
broking segment supported by robust risk management systems, strong financial
risk profile and adequate liquidity position of the company. 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 term 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 |
Non-Convertible Debentures: AAA |
|
Rating Explanation |
Highest degree of safety and carry lowest credit risk. |
|
Date |
April 30, 2014 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short Term Debt: A1+ |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
April 30, 2014 |
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
31-03-2014.
INFORMATION DECLINED
Management non-cooperative
(Tel. No.: 91-22-26531414/ 22882460)
LOCATIONS
|
Registered Office/ Institutional Services/ Corporate Office 1 : |
ICICI Centre, H.T. Parekh Marg, Churchgate, Mumbai – 400 020, |
|
Tel. No.: |
91-22-22882460/ 70/ 40701112/ 3/ 4 |
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Fax No.: |
91-22-22826455/ 22845572 |
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E-Mail : |
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Website: |
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Location : |
Owned |
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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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Direct Stores : |
Located at: ·
·
Ahmedabad ·
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Bhubneshwar ·
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Chennai ·
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Dehradun ·
Dhanbad ·
Dombivali ·
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Greater Noida ·
Gurgaon ·
Guwahati ·
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Hubli ·
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Jaipur ·
Jalandhar ·
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Kalyan ·
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Kolkata ·
Kottayam ·
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Mohali ·
Mumbai ·
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Nashik ·
Navi Mumbai ·
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Noida ·
Panchkula ·
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Pune ·
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Secunderabad ·
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Thane ·
Thrissur ·
Tirunelveli ·
Trichy ·
Tirupati ·
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Vadodara ·
Vapi ·
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Overseas Office : |
Located at: ·
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DIRECTORS
AS ON 27.06.2014
|
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)" |
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Date of Appointment : |
15.10.2008 |
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DIN No.: |
00043617 |
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Name : |
Mr. Uday Madhav Chitale |
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Designation : |
Director |
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Address : |
167-C, Poonawadi, |
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Date of Birth/Age : |
20.10.1949 |
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Qualification : |
B.Com , F.C.A. |
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Date of Appointment : |
27.06.2006 |
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DIN No.: |
00043268 |
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Name : |
Mr. Narendra Madhusudan Murkumbi |
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Designation : |
Director |
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Address : |
7th Floor, Devchand House, Shiv Sagar Estate, Dr. Annie Besant
Road, Worli, Mumbai – 400 018, Maharashtra, India |
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Date of Birth/Age : |
14.04.1970 |
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Qualification : |
"B. E. (E & C) MBA (IIM-Ahmedabad)" |
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Date of Appointment : |
15.10.2008 |
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DIN No.: |
00009164 |
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Name : |
Ms. Zarin Bomi Daruwala |
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Designation : |
Director |
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Address : |
54/A, 5th Floor, Vikas Finlay Towers, Parel Tank Road,
Mumbai – 400 012, Maharashtra, India |
|
Date of Birth/Age : |
05.02.1965 |
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Qualification : |
ACA, ACS |
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Date of Appointment : |
25.05.2011 |
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DIN No.: |
00034655 |
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Name : |
Mr. Anup Animesh Bagchi |
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Designation : |
Managing Director and Chief Executive Officer |
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Address : |
A-801, 8th Floor, El-dorado Heights, Prabhadevi, Mumbai –
400 025, Maharashtra, India |
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Date of Birth/Age : |
26.07.1970 |
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Qualification : |
B. Tech, PGDM |
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Date of Appointment : |
08.01.2008 |
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DIN No.: |
00105962 |
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Name : |
Mr. Ajay Radhey Shyam Saraf |
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Designation : |
Whole Time Director |
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Address : |
Flat 1902, Tower B, Beaumonde, Appasaheb Marathe Marg, Old Mills
Compound, Prabhadevi, Mumbai – 400 025, Maharashtra, India |
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Date of Birth/Age : |
16.12.1969 |
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Qualification : |
CA, ICWA |
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Date of Appointment : |
25.05.2011 |
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DIN No.: |
00074885 |
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Name : |
Ms. Shilpa Naval Kumar |
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Designation : |
Director |
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Address : |
17, Sargent House, Jaallana Marg, Mumbai – 400 039, Maharashtra, India
|
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Date of Birth/Age : |
12.09.1966 |
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Qualification : |
B. Com and PGDM - IIM Calcutta |
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Date of Appointment : |
04.03.2014 |
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DIN No.: |
02404667 |
KEY EXECUTIVES
|
Name : |
Mr. Raju Nanikram Nanwani |
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Designation : |
Secretary |
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Address : |
B-503, Aakanksha, Vasari Hill, Goregoan (West), Mumbai – 400 062, |
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Date of Birth/Age : |
05.01.1973 |
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Date of Appointment : |
17.07.2007 |
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PAN No.: |
AABPN6479R |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 27.06.2014
|
Names of Shareholders |
No. of Shares |
|
Vaijayanti Naik jointly with ICICI Bank Limited |
500 |
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Ajay Radhey Shyam Saraf jointly with ICICI Bank Limited |
500 |
|
ICICI Bank Limited, India
|
805350000 |
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Anup Animesh Bagchi jointly with ICICI Bank Limited |
500 |
|
Vineet Arora jointly
with ICICI Bank Limited |
500 |
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Subir Saha jointly
with ICICI Bank Limited |
500 |
|
Piyush Garg jointly
with ICICI Bank Limited |
500 |
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ICICI Securities Primary Dealership Limited, India |
500 |
|
Total |
805353500 |
AS ON 27.06.2014
Equity Share Break up (Percentage of Total Equity)
|
Category |
Percentage of Holding |
|
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. |
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Products/ Services : |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
Not Divulged |
PRODUCTION STATUS –
NOT APPLICABLE
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
Information declined by the Management. |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
S.R. Batliboi and Company LLP Chartered Accountants |
|
Address : |
14th Floor, The Ruby, 29 Senapati
Bapat Marg, Dadar (West), Mumbai – 400 028, Maharashtra, India |
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PAN
No.: |
ACHFS9180N |
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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Holding Company : |
ICICI Bank
Limited, India CIN No.: L65190GJ1994PLC021012 |
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Subsidiary Companies : |
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Fellow Subsidiaries : |
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CAPITAL STRUCTURE
AS ON 31.03.2014
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 |
|
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Total |
|
Rs.2500.000
millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
805353500 |
Equity Shares |
Rs.2/- each |
Rs.1610.700 millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)
Shareholders' Funds |
|
|
|
|
(a) Share Capital |
1610.700 |
2110.700 |
2110.700 |
|
(b) Reserves & Surplus |
1385.000 |
1157.600 |
897.500 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
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|
|
|
|
|
(2)
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
2995.700 |
3268.300 |
3008.200 |
|
|
|
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(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 |
404.500 |
460.200 |
385.800 |
|
(d) Long-term
provisions |
129.000 |
102.900 |
74.500 |
|
Total Non-current
Liabilities (3) |
533.500 |
563.100 |
460.300 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
3171.300 |
2199.100 |
2098.800 |
|
(b) Trade
payables |
8387.600 |
2378.900 |
3156.900 |
|
(c) Other
current liabilities |
1089.100 |
646.300 |
740.000 |
|
(d) Short-term
provisions |
26.500 |
28.900 |
16.900 |
|
Total Current
Liabilities (4) |
12674.500 |
5253.200 |
6012.600 |
|
|
|
|
|
|
TOTAL |
16203.700 |
9084.600 |
9481.100 |
|
|
|
|
|
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II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
193.500 |
174.500 |
173.900 |
|
(ii)
Intangible Assets |
154.100 |
154.700 |
145.900 |
|
(iii)
Capital work-in-progress |
6.000 |
1.800 |
4.400 |
|
(iv)
Intangible assets under development |
9.600 |
23.600 |
25.400 |
|
(b) Non-current Investments |
605.500 |
753.700 |
780.500 |
|
(c) Deferred tax assets (net) |
314.500 |
259.700 |
174.400 |
|
(d) Long-term Loan and Advances |
1419.500 |
1256.700 |
1293.000 |
|
(e) Other
Non-current assets |
119.900 |
121.900 |
81.400 |
|
Total Non-Current
Assets |
2822.600 |
2746.600 |
2678.900 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
1000.000 |
0.000 |
0.000 |
|
(b)
Inventories |
277.000 |
51.100 |
8.100 |
|
(c) Trade
receivables |
5384.100 |
970.900 |
1518.100 |
|
(d) Cash
and cash equivalents |
5888.100 |
4675.300 |
4132.400 |
|
(e)
Short-term loans and advances |
397.800 |
204.500 |
778.200 |
|
(f) Other
current assets |
434.100 |
436.200 |
365.400 |
|
Total
Current Assets |
13381.100 |
6338.000 |
6802.200 |
|
|
|
|
|
|
TOTAL |
16203.700 |
9084.600 |
9481.100 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
7495.300 |
6797.600 |
7182.000 |
|
|
|
Other Income |
622.100 |
580.800 |
0.000 |
|
|
|
TOTAL |
8117.400 |
7378.400 |
7182.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee benefit expense |
3162.100 |
|
5494.600 |
|
|
|
Other expenses |
3318.600 |
3059.600 |
|
|
|
|
TOTAL |
6480.700 |
5897.200 |
5494.600 |
|
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|
|
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|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION
AND AMORTISATION |
1636.700 |
1481.200 |
1687.400 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
242.600 |
307.900 |
372.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX, DEPRECIATION AND AMORTISATION |
1394.100 |
1173.300 |
1314.800 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
133.100 |
137.900 |
140.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
1261.000 |
1035.400 |
1174.600 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
511.600 |
353.300 |
403.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
749.400 |
682.100 |
771.300 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
181.500 |
114.200 |
136.100 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
0.90 |
0.80 |
0.86 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT/Sales) |
(%) |
10.00 |
10.03 |
10.74 |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/ Sales) |
(%) |
21.84 |
21.79 |
23.49 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.26 |
12.87 |
13.82 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.42 |
0.32 |
0.39 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.06 |
0.67 |
0.70 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.06 |
1.21 |
1.13 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(INR in Mlns.) |
(INR in Mlns.) |
(INR in Mlns.) |
|
Share Capital |
2110.700 |
2110.700 |
1610.700 |
|
Reserves & Surplus |
897.500 |
1157.600 |
1385.000 |
|
Money received against
share warrants |
0.000 |
0.000 |
0.000 |
|
Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Net worth |
3008.200 |
3268.300 |
2995.700 |
|
|
|
|
|
|
Long Term borrowings |
0.000 |
0.000 |
0.000 |
|
Short Term borrowings |
2098.800 |
2199.100 |
3171.300 |
|
Total borrowings |
2098.800 |
2199.100 |
3171.300 |
|
Debt/Equity ratio |
0.698 |
0.673 |
1.059 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(INR in Mlns) |
(INR in Mlns) |
(INR in Mlns) |
|
Revenue from Operations |
7,182.000 |
6,797.600 |
7,495.300 |
|
|
|
(5.352) |
10.264 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(INR in Mlns) |
(INR in Mlns) |
(INR in Mlns) |
|
Revenue from Operations |
7,182.000 |
6,797.600 |
7,495.300 |
|
Profit |
771.300 |
682.100 |
749.400 |
|
|
10.74% |
10.03% |
10.00% |
LOCAL AGENCY FURTHER INFORMATION
NOTE: Current
Maturities of Long Term Debts is Not Available.
|
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 |
No |
|
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 |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
LITIGATION
DETAILS:
|
Case Details |
|
|
Bench:-Bombay |
|
|
|
|
|
|
|
Presentation
Date:- |
11/02/2014 |
|
||||||
|
|
|
|
|||||||
|
|
Lodging No.:- |
ITXAL/340/2014 |
Filing Date:- |
11/02/2014 |
Reg. No.:- |
ITXA/991/2014 |
Reg. Date:- |
10/06/2014 |
|
|
|
Petitioner:- |
THE
COMMISSIONER OF INCOME TAX-4 MUMBAI |
Respondent:- |
ICICI SECURITIES LIMITED
(EARLIER KNOWN AS ICICI BROKERAGE SERVICES LIMITED) |
|
||||
|
|
Petn. Adv.:- |
PADMA DIVAKAR (0) |
Resp. Adv.:- |
ATUL K. JASANI (0) |
|
||||
|
|
|
|
|
|
District:- |
MUMBAI |
|
|
|
|
|
|
|
Bench:- |
DIVISION |
|
|
|
|
|
Status:- |
Pre-Admission |
Category:- |
TAX APPEALS |
|
|
|
Next Date:- |
19/01/2015 |
Stage:- |
FOR REJECTION [ORIGINAL SIDE MATTERS] |
|
|
|
Coram:- |
ACCORDING TO SITTING LIST |
|
|
|
|
ACCORDING TO SITTING LIST |
|
|
|
|
|
|
|
Act :- |
Income Tax Act, 1961 |
Under Section:- |
260A |
|
INDUSTRY OVERVIEW
Equities
During
fiscal 2014, overall macroeconomic indicators continued to remain weak with low
growth in Gross Domestic Product (GDP), persistent inflationary concerns and
volatility in financial markets. Given global developments and certain domestic
structural concerns such as the high fiscal and current account deficits during
the first half of the year, there was a sharp depreciation in the Indian rupee
compared to the US dollar. However, measures taken by the Government and the
Reserve Bank of India (RBI) to reduce imports and attract NRI deposit flows
resulted in stability in the currency in the second half.
With
an improvement in foreign investment flows in the second half of the year, on
an overall basis, the equity markets gained 18.6% in fiscal 2014. However, institutional
daily cash turnover in the equity market (NSE and BSE) increased only by 6% to
Rs.118570.000 millions in fiscal 2014. The cap on mutual fund brokerage rates
for trades and shift to direct trading during fiscal 2014 resulted in a decline
in revenues for the stock broking industry. The derivatives market, however,
showed an improvement in the volumes over the last fiscal.
Corporate Finance
During
fiscal 2014, there was a decline in the number of Qualified Institutional
Placements (QIPs) for primary fund raising. The fresh equity issuances during
fiscal 2014 amounted to Rs.178 billion. During the first quarter of fiscal
2014, there was a sharp increase in number of Offer for Sale (OFS) and
Institutional Private Placements (IPP) to meet SEBI’s deadline for minimum
public shareholding norms. On an overall basis, during fiscal 2014, the OFS
volume was Rs.62 billion and IPP volume was Rs.48 billion. Fiscal 2014 saw
significant activity from multinational companies aiming to achieve
consolidation of their holdings in Indian subsidiaries with 11 delistings
amounting to Rs.8589 millions, open offer deals of Rs.541 billion and buyback
deals of Rs.112 billion.
During
fiscal 2014, activity in debt markets was driven by issuance of tax free bonds
from infrastructure and infrastructure financing companies. Tax free bond
issuances increased from seven issuances amounting to Rs.145 billion in fiscal
2013 to eleven issuances amounting to Rs.320 billion in fiscal 2014.
During
fiscal 2014, USD 8.18 billion was raised in private equity deals as compared to
USD 8.25 billion raised in fiscal 2013. Information technology and information
technology enabled services, healthcare and life sciences, banking, financial
services and insurance, manufacturing and energy were the dominant sectors by
deal value in fiscal 2014.
OPERATIONAL REVIEW
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.
On
the retail front, the Company introduced newer products which were well
received. The counter-cyclical businesses like Wealth Management and
Distribution have helped in reducing the impact of adverse broking market
conditions. The Corporate Finance business continued to build a deal pipeline
of diverse products whereas the Institutional Broking segment enhanced
corporate access through various conferences and events.
Equities
The
Institutional research team increased its coverage from 132 to 150 companies,
spread across 16 sectors and mid-cap stocks. The Company continued to enhance
its business with its domestic and foreign institutional clients. Fiscal 2014
also saw new foreign clients being added, creating the base for future growth.
During fiscal 2014, the Company hosted several conferences and delegations to
provide its clients an opportunity for interaction with policy makers and
corporate leaders. The 12th India Unlimited conference held during
fiscal 2014 attracted over 35 corporates and experts with participation of over
100 funds. Overall the conference saw more than 650 investor meetings.
The
Company has a retail research team of 40 analysts covering around 200 companies
spread across sectors as well as mutual fund, technical and derivatives desks
to deliver quality research to over 2.9 million customers of ICICIdirect.com.
In addition to the quarterly earnings reports and regular event updates, the
team published various sector reports, thematic reports, IPO recommendation, mutual
fund advice and technical and derivative picks. The Company continued to
strengthen its customer base and market share across the retail segment by
introducing several new features in a challenging market scenario with muted
retail participation.
Recognizing
the needs of investors and traders, the Company offered its customers various
innovative products like Stop Loss based products in the F&O segment
offering discipline in customer trading and margin optimisation. The Company
also introduced a new version of its trading platform named Trade Racer to
enhance the customer experience. Currently, the Company has the largest retail
customer account base of 2.9 million and one of the largest pan-India
distribution networks of over 200 ICICIdirect offices and over 900 sub-brokers
across 500 cities and towns in India.
Corporate Finance
During
fiscal 2014, they saw a mix of fund raising exercises through IPOs, debt public
issues, rights issues and IPPs and consolidation exercises through open offers
and buyback offers. The amount raised through equity issuances (IPOs and FPOs)
managed by the Company during fiscal 2014 was Rs.74559 millions amounting to
89% market share (by amount). Some of the key deals in fiscal 2014 were the FPO
of Power Grid Corporation of India Limited and Engineers India Limited. There
were a series of open offers handled by the Company in fiscal 2014 including
those of Alstom T&D India Limited, Wheels India Limited, Hexaware
Technologies Limited, Kalindee Rail Nirman Limited, Intec Capital Limited and
Thinksoft Global Services Limited. Some of the key OFS deals that the Company
managed were Hindustan Copper Limited, Marathon Nextgen Realty Limited, Essar
Shipping Limited, AstraZeneca Pharma India and Essar Ports Limited. The Company
advised Gillete India Limited on achieving compliance with minimum public
shareholding norms through OFS and also executed the IPP of Neyveli Lignite
Corporation Limited, Thomas Cook (India) Limited and Alstom T&D India
Limited. The Company continued to showcase its expertise in managing
consolidation for multinational companies through delisting of Denso India
Limited. Moreover, the Company successfully accomplished the buyback of shares
by Jagran Prakashan Limited during fiscal 2014.
The
Company continued to perform well in debt capital markets in fiscal 2014 with a
75% market share. The Company managed issuances with aggregate fund raising of
Rs.266 billion in fiscal 2014. The debt issuances during the year included both
NCDs and tax free bonds for public and private companies. Some of the key debt
issues for private companies were those of Shriram Transport Finance Company
Limited, Muthoot Finance Limited and Shriram City Union Finance Limited. Some
PSU deals included Rural Electrification Corporation Limited, India
Infrastructure Finance Company Limited and NTPC Limited. The Company also
executed ten tax free bonds out of total seventeen tax free bonds this fiscal,
where total amounts raised were Rs.235 billion and garnering 74% market share.
The
Company also renewed its focus on mid-market M&A advisory deals and was
ranked third among financial advisors for Indian mid-market M&A for the
calendar year ended December 31, 2013. The Company closed several transactions
during the year in sectors ranging across infrastructure, financial services,
pharmaceuticals, IT and ITES, and auto components.
In
the advisory space, some of the transactions completed by the Company included
the following:
·
Advised
BPL Limited on a Private Equity fund raise of Rs110 Crore from Goldman Sachs
PE;
·
Advisory
services to Texmaco Rail and Engineering Limited on its acquisition of Kalindee
Rail Nirman Limited;
·
Advised
ONGC Mangalore Petrochemicals Limited on a suitable strategy for equity fund
raising;
·
Advised
Intec Capital Limited on its second tranche PE fund raise from Motilal Oswal
PE;
·
Advised
Manappuram Finance Limited for its acquisition of Milestone Home Finance
Company Limited from Jaypee Hotels; and
·
Advised
Indian Oil Corporation Limited for a Joint Venture formation with Coal India
Limited for explosives unit.
Distribution of Retail Financial Products
In
fiscal 2014, the Company further consolidated its position amongst the leading
mutual fund distributors. In the life insurance space, the Company continued to
grow its share of new business premium. The Company also established itself as
one of the leading distributors in the retail debt market through Tax Free
Bonds, Inflation Index Bonds and Corporate Bonds.
Investment Education
The
Company undertook various activities towards investment education through its
initiative ICICIdirect Centre for Financial Learning (ICFL). ICFL imparts
investment education through multiple mediums including classroom and online
training. The classroom programmes take place every month in the form of one or
two day workshops conducted by experts with practical investment experience in
all major cities of the country. The online learning programmes are available
anywhere and anytime based on a learner?s preference. These programs help
enrich the learning experience for the learner through animation and
interactivity.
StockMIND
The
Company launched StockMIND Season 2, a nation-wide contest aimed at college
students, seeking to educate the youngsters on stock market investments. In
fiscal 2014, StockMIND was conducted separately for graduate and post graduate
students. StockMIND Season 2 reached out to over 550 colleges and 75,000
students.
Private Wealth Management
In
fiscal 2014, the Company maintained its focus on strengthening its Private
Wealth Management business with an added objective of de-risking the business
by diversifying the revenue streams. The Company leveraged its strong
relationship with clients and its strength in the product and advisory platform
to offer innovative and best in class financial solutions to its clients and
maintain the organization’s competitive positioning.
OUTLOOK
Equities
Expectations
of an improvement in the domestic macro scenario, a stable government post elections
and positive global cues led to renewed FII interest and triggered the late
rally in fiscal 2014. While the recently improving investor confidence bodes
well for Indian equities market, it is also important to see sustained
improvements in the macroeconomic conditions for the country. Growth and
Industrial Production (IIP) data, RBI actions to balance growth and inflation,
tapering by the US Federal Reserve and the outlooks for other emerging markets
and China would be crucial in providing further direction to Indian equities.
We
continue to invest in technology and on higher yielding business segments,
while continuing to explore new segments of clients and enhance products and
services to maintain our leadership position.
Corporate Finance
In
light of the challenging operating conditions, businesses will need to focus on
managing their existing cash and credit pools. The Company has a rich pipeline
of fund raising and consolidation mandates in fiscal 2015.
Distribution of Retail Financial Products
During
fiscal 2014, SEBI provided its in-principle approval for the Institution for
Mutual Fund Intermediaries (IMFI), promoted by the Association of Mutual Funds
of India (AMFI) to set up the country's first Self-Regulatory Organisation
(SRO) for mutual fund distributors. The setting up of a SRO to monitor
distributors of mutual fund products will increase product transparency and in
turn will improve customer confidence. The Company is well positioned to
capture a reasonable share of this business opportunity.
Private Wealth Management
The
Indian market offers good scope for growth due to its long-term economic
prospects, positive demographics and current low penetration. We expect that
the long term growth trajectory for the country would result in increase in the
overall addressable HNI market for their savings and investments needs.
The
Company expects to continue to build its competitive advantage through
innovative products and strong advisory services. The Company is continuously
expanding its client base through a wider geographical reach. It is also
focusing on acquiring large family office relationships.
SUBSIDIARY COMPANIES
The
Company has two subsidiaries in the United States of America (US), namely,
ICICI Securities Holdings, Inc. (ISHI) and ICICI Securities, Inc. (I-Sec.
Inc.).
During
fiscal 2014, ISHI did not have any business operations. It will continue to
grow its wholly owned subsidiary, namely ICICI Securities, Inc. in its efforts
to increase business from the institutional segment in US and Singapore. I-Sec.
Inc. is registered with the Securities and Exchange Commission and is a member
of the Financial Industry Regulatory Authority. I-Sec. Inc. has its main office
in New York, US and the branch office in Singapore which holds a Capital Market
Services license granted by the Monetary Authority of Singapore (MAS) for the
purpose of dealing in securities in Singapore.
During
fiscal 2014, I-Sec. Inc. has strengthened its positioning among its US and
Singapore based institutional investors. I-Sec. Inc. has strived to
continuously add value to the decision-making process of its clients by
providing differentiated research, access to corporate managements as well as
experts from various fields. This approach has helped I-Sec. Inc. penetrate new
clients as well as strengthen its positioning among existing clients. I-Sec.
Inc. has obtained approval to act as an International Dealer from the Canadian
Securities Regulatory Authorities (CSRA) which has enabled the Company to
expand its reach to institutional investors in three provinces of Canada.
ACHIEVEMENTS
During the year, the Company received several accolades for its
initiatives.
During the year, the Company in association with NSE organized, ‘Pragati
Ki Neev’ - an investor education initiative which covered over 100 cities till
March 2014. These free investor education programmes were attended by more than
6,000 participants. This initiative won the Company the ‘Award for Outstanding
Social Impacts’ at the Global Sustainability Leadership Awards 2014. These
awards recognize institutions for their contribution to the society in their
domain as well as businesses that deliver products and services in ways that
takes full account of their responsibility towards the communities they touch.
For the ninth time, ICICIdirect.com, won the Outlook Money ' Best e-
Brokerage Award'.
The Company was amongst the early entrants in India to an online
application for customers to trade while on the move. This widely used
application won the Company the Mobbys award for the ‘Best Mobile application
in Mobile Trading’. ICICI Securities Business Partners has been conferred the
Franchise India Awards 2013, for being the 'Franchisor of the year' in the
Financial Services category.
ICICIdirect.com won the award for Innovation at Banking Frontiers
Finnoviti Awards 2013. The award was conferred for its Valid Till Cancel Order'
(VTC) facility which was awarded amongst the top 3 innovations in BFSI industry
by 'Peer Voting'.
The Company won the Outlook Smart use Technology eRetailer of the year
2013 conferred by FIHL in association with HomeShop18.com.
The Company also won the Innovation Award for Oracle Fusion Middleware.
The Company has consistently demonstrated the best usage of Oracle Tuxedo as an
OLTP engine. These Asia-Pacific awards honour Oracle customers for their
optimum and innovative solutions using Oracle Fusion Middleware.
UNSECURED LOANS
|
PARTICULAR |
31.03.2014 (Rs.
In Millions) |
31.03.2013 (Rs.
In Millions) |
|
SHORT TERM
BORROWINGS |
|
|
|
Commercial paper (Repayable within one year) |
3171.300 |
2124.900 |
|
Total |
3171.300 |
2124.900 |
INDEX OF CHARGES
|
S. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number
(SRN) |
|
1 |
10272126 |
05/01/2011 |
1,500,000,000.00 |
ICICI BANK LIMITED |
CAPITAL MARKET DIVISION,
30, MUMBAI SAMACHAR MARG, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA |
B04565370 |
FIXED ASSETS:
Tangible Assets
· Computers
· Furniture and Fixtures
· Office Equipment
· Vehicles
· Leasehold Improvements
Intangible Assets
· Software
· 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 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.63.46 |
|
|
1 |
Rs.98.51 |
|
Euro |
1 |
Rs.77.31 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
-- PROFITABILITY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
80 |
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.