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Directors' Report For The Financial Year 2013 -14
To the Members,
thYour Directors are pleased to present the 28 Annual Report of the Company together with the Statement of Profit and Loss for stthe year ended 31 March, 2014 and the Balance Sheet as on that date.
Operating Results
Gross Income :
Financial Position
Other Selected Data
a) Fee based – Merchant Banking and Advisory fees 532.00 491.24
b) Income from Securities, Lease and Hire Purchase and other Income 62.62 58.53
Total 594.63 549.77
Profit before Provisions, Depreciation, Interest and Tax 442.69 428.51
Provisions 51.17 7.31
Depreciation 2.82 2.80
Interest - 0.01
Profit before Tax 388.70 418.39
Profit after Tax 265.28 296.00
Equity Share Capital 58.03 58.03
Reserves and Surplus 922.55 833.79
Earnings per Share (Rs.) 45.71 51.00
Return on Equity 27% 33%
Dividend per Share (Rs.) 26.00 26.00
Book Value per Share (Rs.) 164.22 151.44
Performance Highlights
Year ended March 31 2014 2013
(Rupees in Crs.)
Some major Performance Highlights are :
Awards & Recognition
Out of the current year’s profits, the Directors propose that a sum of Rs. 26.53 Crs. be transferred to the General Reserve. During
the year, the Board declared an Interim Dividend of Rs.26 per share on 27th March, 2014. The Directors propose that the Interim
Dividend of Rs.26 per share be declared as the Final Dividend.
Your Company continued to receive both domestic and international awards during the calendar year 2013, the most
prominent being:
• IFR Asia ‘India Loan House of the Year’ 2013 for the 5th consecutive year
• Thomson Reuters PFI - Industry Deal of the Year Award for 2013 (Asia-Pacific) for Tata Steel’s 6 MTPA Green field integrated
steel plant in Odisha.
• Euromoney Project Finance Asia Pacific Mining & Metals Deal of the Year 2013 for Tata Kalinganagar (Tata Steel Odisha)
• Business World-Grant Thornton's 'Top INR Bonds & Loan Deal-maker of the Year' award for maximum issues in 2013
• "Deal of the Year" Award for 2014 from M&A International
Your Company received top rankings from many ranking agencies. Significant among them are:
• Thomson Reuters-Project Finance International
• No. 1 Global Project Finance Book Runner with a market share of 8.3%
• No. 2 Global Mandated Lead Arranger with a market share of 4.9%
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Directors' Report For The Financial Year 2013 -14 (contd.)
•
• No.1 Book Runner Asia Pacific & Japan with market share of 26.4%
• Dealogic
• No. 1 Global Mandated Lead Arranger for Global Project Finance Loans for 5th consecutive year with a market share
of 5.7%
• No. 1 Global Arranger of Project Finance Loans for the 5th successive year with a market share of 5.7%
• No. 1 Financial Advisor of Global Project Finance Loans, for the 4th successive year with a market share of 13%
• No. 1 Asian Project Finance Loans for the 5th successive year with a market share of 23.6%
• Bloomberg League Tables
• No. 1 Mandated Lead Arranger Asia Ex-Japan Loans with a market share of 7.3%
• No.1 Book Runner Asia Ex-Japan Loans with a market share of 11%
• No. 1 India Loans Mandated Lead Arranger (both INR and foreign currencies) with a market share of 40.4%
• No.1 India Loans Mandated Arranger (INR) with a market share of 58.4%
• Prime Database
• Ranked No. 1 IPP in terms of number of issues handled for FY 2014 in India
• Ranked No. 2 in terms of total amount raised through Rights Issuances league tables for FY 2014
Management Discussion and Analysis is annexed to and forms part of this report (Annexure ‘A’).
The Directors’ Report on Corporate Governance for the year 2013-14 is attached (Annexure ‘B’).
The performance of the five subsidiaries during the year 2013-14 is as follows :-
A brief summary of the financial highlights in the FY 2013-14 is given hereunder:
No. 1 Mandated Arrangers Asia-Pacific & Japan with market share of 16.1%
Management Discussion and Analysis
Corporate Governance
SUBSIDIARIES
1. SBICAP Securities Limited (SSL)
Total Income 79.03 69.60
Expenses 87.88 65.91
Profit/(Loss) Before Tax (8.85) 3.69
Profit/(Loss) After Tax (8.19) 2.43
(Rupees in Crs.)
Particulars 2012-132013-14
• On the Institutional business side, SSL has ramped up its sales and research teams and set up an exclusive FII desk to cater
to institutional investors. SSL’s research now covers all key sectors and most NIFTY stocks.
• With ramp up of operations, the Institutional market volumes for the year increased by 25.16% and the share of DII cash
market volumes increased by 35 basis points.
• Despite a decline in the overall retail market volumes in the financial year, SSL was able to grow its Retail topline by about
9% over the previous year.
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Directors' Report For The Financial Year 2013 -14 (contd.)
(Rupees in Crs.)
2012-132013-14
Fee Income 3.04 16.89
Other Income 0.57 0.37
Gross Income 3.61 17.26
Expenses 4.22 3.48
Profit/(Loss) Before Tax (0.61) 13.78
Profit/(Loss) After Tax (0.56) 10.76
Particulars 2012-132013-14
(Rupees in Crs.)
2012-132013-14
Fee based – Trustee Remuneration Fees 18.89 13.61
Other Income 1.85 1.35
Total Income 20.74 14.96
Expenses 7.35 3.81
Profit/(Loss) Before Tax 13.39 11.15
Profit /(Loss) After Tax 8.81 7.52
Particulars 2012-132013-14
• New client acquisition remained a key focus area for SSL. With an increase of 70% over the new clients acquired in the
previous year, the total new client acquisition in the year was at a record high.
• SSL has made significant investments in its various growth initiatives which has lowered PAT but enhanced wherewithal for
future growth.
A brief summary of the major financial highlights is as under:
2. SBICAP (UK) Limited (SUL)
The Company earned Income of GBP 330,050 vis-a-vis the previous year level of GBP 1,903,461. The Company suffered a loss of
GBP 32,971 as against a PAT of GBP 1,164,337 during the previous year.
A brief summary of the financial highlights in the FY 2013-14 is given hereunder :
3. SBICAP Trustee Company Limited (STCL)
During the year the Company registered encouraging growth in gross Income of 38.64% and has also registered growth in
profit after tax of 17.15% as compared to previous year.
Presently, the Company is undertaking various Corporate Trusteeship activities viz. Security Trusteeship, Security Agent and
Safe Custody of Documents, Debenture/Bond Trusteeship, Escrow Agent, Escrow Trusteeship, Share Pledge Trusteeship,
Alternate Investment Fund Trusteeship etc. It proposes to undertake various other activities like Role of Facility Agent, Will
management and Will related Trusteeship etc.
During the year, the Company made a net loss of Rs.34,75,948/- due to payment of stamp duty and registration charges for
increase of the authorised share capital from Rs.25 crores to Rs.100 crores and employee cost. The authorised share capital of
the Company was increased to Rs.100 crores as the Company is in the process of acting as Sponsor/Asset Management
Company for the Alternative Investment Funds being set up with DFID and SBI Mutual Fund.
4. SBICAP Ventures Limited (SVL)
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Directors' Report For The Financial Year 2013 -14 (contd.)
(Rupees in Crs.)
2012-132013-14
Fee Income 1.34 -
Other Income - -
Gross Income 1.34 -
Expenses 4.14 3.09
Profit / (Loss) Before Tax (2.81) (3.09)
Profit / (Loss) After Tax (2.93) (3.10)
Particulars 2012-132013-14
5. SBICAP (Singapore) Limited (SSGL)
A brief summary of the major financial highlights is as under :
For facilitating underwriting, additional Capital of SGD 3 million was infused in SSGL during the year.
DIRECTORS
During the year under review, the following changes took place among the Directors of the Company :-
• Smt. Arundhati Bhattacharya resigned as Managing Director & CEO with effect from 2nd August, 2013.
• Shri Pratip Chaudhuri resigned as Director and as Chairman with effect from 30th September, 2013.
• Shri V.G. Kannan was appointed as Managing Director & CEO with effect from 8th October, 2013.
• Smt. Arundhati Bhattacharya was appointed as Director and as Chairman with effect from 25th October, 2013.
The Board extended a hearty welcome to Smt. Arundhati Bhattacharya as Director and as Chairman, and Shri V.G. Kannan as
Managing Director & CEO of the Company, and placed on record its deep appreciation to Smt. Arundhati Bhattacharya and
Shri Pratip Chaudhuri, for their valuable contributions during their tenure as Managing Director & CEO and Chairman,
respectively of the Company.
Shri D. Sundaram and Shri Ashok Kini, Directors retire by rotation at the 28th Annual General Meeting (AGM) of the Company.
Shri D. Sundaram has advised that he does not propose to seek re-election as an Independent Director at the ensuing AGM, as
he has been on the Board of the Company for over 12 years. The Board places on record its deep appreciation to Shri D.
Sundaram, for his valuable contributions during his tenure as Director and also as the Chairman of the Audit Committee,
Nomination and Remuneration Committee and HR Committee of the Company. Shri Ashok Kini, being eligible, has offered
himself for re-appointment.
The Company has received notices under Section 160 of the Companies Act, 2013 from State Bank of India (the member),
together with necessary Deposit, proposing the candidatures of Shri Bansi S. Mehta, Shri Narayan K. Seshadri and Smt. Aruna
Jayanthi for appointment as Independent Directors at the ensuing 28th AGM. Shri Bansi S. Mehta, Shri Narayan K. Seshadri and
Smt. Aruna Jayanthi, non-executive Directors have submitted declarations under Section 149(7) of the Companies Act, 2013,
confirming that they meet the criteria of independence prescribed for independent directors as stipulated under Section
149(6) of the said Act.
Subsequent to the year end, the following changes took place among the Directors of the Company :-
• Shri S. Vishvanathan resigned as Director consequent to his superannuation from the services of State Bank of India on
30th April, 2014.
• Shri V.G. Kannan resigned as Managing Director & CEO and as Director with effect from 17th July, 2014, consequent to his
promotion as Managing Director & GE (A&S), State Bank of India from that date.
• Shri V.G. Kannan, Managing Director & GE (A&S), State Bank of India was appointed as SBI Nominee Director with effect
from 23rd July, 2014, pursuant to Article 139(i) of the Articles of Association of the Company, Section 35A of the State Bank
of India Act, 1955, and Section 161 of the Companies Act, 2013.
• Shri Rajnish Kumar was appointed as Director and as Managing Director & CEO of the Company with effect from 31st July,
2014, pursuant to Articles 140, 168 and 169 of the Articles of Association of the Company, Section 35A of the State Bank of
India Act, 1955, and Sections 161 and 196 of the Companies Act, 2013 and as whole-time Key Managerial Personnel
pursuant to Section 203 of the Companies Act, 2013.
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Directors' Report For The Financial Year 2013 -14 (contd.)
The Board extends a hearty welcome to Shri V.G. Kannan as SBI Nominee Director and Shri Rajnish Kumar as Managing Director
& CEO of the Company and places on record its deep appreciation to Shri S. Vishvanathan and Shri V.G. Kannan for their
valuable contributions during their tenure as Director and as Managing Director & CEO respectively, of the Company.
Pursuant to Section 217 (2AA) of the Companies Act, 1956, the Directors confirm that :-
(i) In the preparation of the annual accounts, the applicable accounting standards have been followed;
(ii) Appropriate accounting policies have been selected and applied consistently and the judgements and estimates that have
been made are reasonable and prudent so as to give a true and fair view of the state of affairs of the company as on 31st
March, 2014 and of the profit or loss of the company for the year ended 31st March, 2014;
(iii) Proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the
provisions of the Companies Act for safeguarding the assets of the company and for preventing and detecting frauds and
other irregularities;
(iv) The annual accounts have been prepared on a going concern basis.
In terms of the above Rules issued by the Central Government, the following information is furnished:-
Conservation of Energy and Technology Absorption
Since the Company is engaged in Merchant Banking and Advisory Services, there is no information to report under this head.
Foreign Exchange Earnings and Outgo
During the year under review, the Company earned foreign exchange equivalent to Rs.52.97 Crs. towards advisory fee from
overseas clients and reimbursement of expenses. The total foreign exchange expended amounted to Rs.4.60 Crs. on account of
foreign travel and other expenses.
Being conscious of its obligation to society at large, your Company had undertaken the below mentioned activities during the
Financial Year 2013-14. The focus was to extend a helping hand to the under privileged, differently abled and the populace
affected by the natural calamity in Uttarakhand.
• Contributions to the Prime Minister’s Special Relief Fund for rehabilitation and rebuilding efforts post the devastating
floods in Uttarakhand in 2013.
• Donation of a 32+1 seater Eicher school bus to Little Flower Convent School for the Blind & Deaf in Chennai. The School is
a registered society working to assist underprivileged visually impaired children from the weaker sections of society and
provide them vocational training and career guidance. The bus will be utilized for transport of the school’s children.
• Funding support to a charity clinic for diabetic children run by the Hirabai Cowasji Jehangir Medical Research Institute
(HCJMRI) at Jehangir Hospital Pune. The Institute is involved with health related community programs and runs a charity
clinic, providing care for over 200 underprivileged children with insulin dependent diabetes. The clinic, apart from
assisting in diagnosis, medicine, counseling etc also aims to change attitudes and educate young patients and their
parents on how to cope with diabetes. The Company contributed Rs 20,00,000/- towards the medical expenses,
counselling and care of 50 underprivileged diabetic children for a period of one year.
AUDITORS
M/s. Shah & Taparia, Chartered Accountants, were appointed as the Statutory Auditors of the Company for the financial year
2013-14, by the Comptroller & Auditor General of India (CAG), under the provisions of Section 619(2) of the Companies Act
1956. They will hold office till the ensuing Annual General Meeting of the Company.
DIRECTORS' RESPONSIBILITY STATEMENT
COMPANIES (DISCLOSURES OF PARTICULARS IN THE REPORT OF THE BOARD OF DIRECTORS) RULES, 1988
CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES
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Directors' Report For The Financial Year 2013 -14 (contd.)
COMMENTS OF THE COMPTROLLER & AUDITOR GENERAL OF INDIA
PARTICULARS OF EMPLOYEES
ACKNOWLEDGEMENT
Comments of the Comptroller & Auditor General of India as per report dated 24th June, 2014, submitted under Section 619(4)
of the Companies Act, 1956 on the accounts of the Company for the year ended 31st March, 2014 is enclosed. It is reported
therein that they have decided not to review the report of the Statutory Auditor on the accounts of the Company for the year
ended 31st March, 2014 and as such have no comments to make under section 619(4) of the Companies Act, 1956.
The information as required under Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of
Employees) Amendment Rules, 2011, as amended, is given in Annexure ‘C’.
The Board of Directors would like to express its thanks to SEBI - the Company's Regulator, and to the Comptroller & Auditor
General of India (CAG), for the advices and guidance received. The Board is also grateful to the State Bank of India and its group
companies for providing significant business support, which has been mutually rewarding.
The Board of Directors places on record its appreciation for the valued support from clients for the company, which has been
very crucial for its standing in the industry. The Board would also like to thank the investing community, intermediaries in the
investment-banking field and the statutory authorities for the co-operation extended from time to time. The Board also places
on record its deep appreciation for the dedication and commitment of its employees at all levels and looks forward to their
continued contribution in the journey ahead.
For and on behalf of the Board of Directors
(Arundhati Bhattacharya)
Chairman
Place : Mumbai
Date : 2nd August, 2014SB
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Annexure A
Management Discussion and Analysis
1. Macroeconomic Review
At the beginning of the year, the decision of the US Federal Reserve to wind down its asset purchase program weighed heavily
on global markets and economic sentiments. The prospect of reduced stimulus and interest rate cycle reversal triggered sell-off
in stocks, bonds and currencies across the emerging markets, including India. Emerging market economies with structural
issues (high current account deficit, low growth, high inflation and ballooning fiscal deficit, etc.) were more vulnerable. The
currencies of Indonesia, South Africa, Brazil, Thailand, Turkey, Argentina and India were thus hammered down to multi years
low.
Owing to global macro factors and unfavorable domestic environment, Indian markets underperformed in the first half of fiscal
with Sensex and Nifty touching lows of 17448.71 and 5118.85 in the month of August 2013. Within sectoral indices cyclical
(high beta) Capital Goods, Banks, Realty, Power and Metal indices were badly hit, touching lows between 2 to 5 years. The 10-
year G-sec yields, which spiked 200 bps over three months till August, negatively impacted sentiments and raised short-term
borrowing risks.
A weak beginning to FY2014, was followed by strong FII inflows in February and March 2014 with inflows of Rs.264 billion. As
the year came to a close, the macroeconomic environment improved, as the government contained the current account deficit
and inflation. RBI intervention helped reverse the slide of the rupee.
Nifty and Sensex hit their all time high of 6730.05 and 22253.78 on March 31, 2014. Major contributors to this rally were IT,
Pharmaceuticals and Auto stocks, on the back of rupee depreciation and an uptick in global demand environment, whereas
Realty and PSU banks were the worst affected.
2. Investment Banking Strategies
During the year, the Company continued its thrust on synergy with State Bank of India and its Associate Banks.
The Capital Markets Group offers a bouquet of services such as pre-IPO advisory, valuation analysis, ESOP advisory, etc., and is
constantly exploring newer opportunities such as open offers, buy-backs, de-listings and QIP / IDR / GDR / FCCB.
The Debt Capital Markets Group has developed and strengthened relationships with almost all the key institutional investors
and has also developed the framework for executing structured finance transactions.
The Infra Group mainly concentrates on Infrastructure Industry segment and has launched newer businesses such as Arranging
of Private Equity, Advisory roles as well as Arrangement of Finance for M&A and Financial Restructuring, in a focused manner.
Besides continuing Advisory and Credit Syndications for large infrastructure projects, the Group has established relationships
with foreign lenders for ECB Syndications.
The Non-Infra Group has allocated various non-infra sectors amongst various teams so as to tap business relating to M&A, PE
and opportunities available in sale of distressed assets in a more focused manner.
3. SBICAP’s Performance
The performance of your Company during the year 2013-14 has been discussed hereunder :
3.1 Quantitative Performance
The Company booked a fee based income of Rs. 532 Crs. during the year and Profit after Tax (PAT) was Rs.265.28 Crs.
The performance in respect of various activities is as under:
3.1.1 Merchant Banking & Advisory Fees
3.1.1.(a) Capital Markets Group- Equity Capital Market (ECM)
The Indian equity markets faced one of the difficult years in FY 14, as the country witnessed an economic slowdown, resulting in
low investor sentiment and movement of capital out of equity to other asset class like gold and government bonds. With both
domestic as well FII shunning the markets, the Rupee witnessed a free fall to Rs. 68.80 against the USD in August 2013, post
which it recovered to an extent.
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Annexure A (contd.)
Under this tough market conditions, the Capital Markets Group (CMG) has been able to earn a fee income of Rs. 20.8 Crs in FY
14, an increase of 60% YoY. A total of 3 companies raised an amount of Rs. 8375 Crs through IPO/FPO out of which SBICAP was
involved in raising 83% of the total issue size. SBICAP was ranked 2nd in terms of the issues handled in the IPO/FPO market.
SBICAP was also ranked 2nd in the Rights issues market in terms of both size as well as the number of issues, assisting firms in
raising over Rs. 2400 Crs, representing 52.7% of overall amount raised through Rights offer as per league tables published by
Prime Database.
The group was also instrumental in setting up the Bharatiya Mahila Bank (BMB). Bharatiya Mahila Bank is the first Bank to be set
up in the country since 2004 and the first public sector bank set up by the Government of India. CMG advised the Bank on its
business model, selection of the core team, IT strategy, IT implementation, product roadmap, setting up forex and treasury
desks, branch rollout strategy, ATM network besides the launch marketing campaign. The CMG is actively on the lookout for
more such opportunities.
3.1.1(b) Debt Capital Markets – DCM
During FY14, the Group has handled debt issue (both Private and Public Issues) aggregating to around Rs. 69,964 crores. On the
Public Issue side, SBICAP handled three Public Issues of Tax Free Bonds as well as one public issue of taxable bonds from the
private sector in the current year. SBICAP was associated with the public issue of tax free bonds of IIFCL, IRFC and NTPC as the
lead merchant bankers to the issue. On the Private Placement side, SBICAP placed debt issues aggregating to Rs. 55,313 crores.
The debt distribution arm at SSL was further strengthened to provide a one-stop solution to the investors. The placement team
at SSL now provides complete solutions viz. primary issues and support for purchase/sale in secondary market to the
institutional market players.
As a part of the strategy to provide complete solutions to the corporates, we are proud that SBICAP is the first Indian Investment
Bank to help the companies raise funds through the international market via foreign currency bond issuances. During the
current year, SBICAP launched two foreign currency bond issues – one in US dollar issuance by the leading bank in the country
i.e. SBI and the other in SGD for a leading private sector player.
3.1.1(c) Infrastructure Group
After the global downturn the previous year, which saw the Indian debt syndication market decline by as much as 50%, the
market declined by a further 11% in CY 2013, with a drop in both the number of deals as well as the volume. However, despite
the challenges posed due to the macroeconomic environment, the Group’s fee income for the financial year 2013-14 posted a
4.21% increase over the previous year.
In the Indian loan arrangers’ market, the Group was able to maintain its standing as Rank No. 1 in the Global Project Finance
Loans Rankings by Dealogic along with Rank No. 1 in Indian Loans Mandated Arranger league tables by Bloomberg for the 5th
consecutive year, with a market share of 40.4% in CY 2013, providing testimony to the Group’s enduring perception as the go-to
loan house. The Company has also had the distinction of being accredited as India Loan House for CY 2013 for its leadership in
Loan Advisory by IFR Asia - Thomson Reuters, again for the 5th successive year since 2009, thereby consolidating its long-
standing leadership position.
Further, the Group achieved the following awards and rankings in FY 2013-14 :–
• Awarded Top INR Bonds & Loan Deal-maker of the Year for maximum issues in CY 2013 by BW-Grant Thornton
• Ranked by Dealogic as
4No.1 Arranger of Global Project Finance Loans
4No.1 Financial Adviser of Global Project Finance Loans
4No.1 in Asian Project Finance Loans
4No.2 Provider of Global Project Finance Loans
• Ranked by PFI – Thomson Reuters as
4No.1 Global Bookrunner
4No. 1 Mandated Arrangers Asia Pacific & Japan
4No.1 Book Runner Asia Pacific & Japan
4No.2 Global Mandated Lead Arranger
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Annexure A (contd.)
• Ranked by Bloomberg as
4No.1 Book Runner Asia ex-Japan Loans
4No.1 India Loans Mandated Arranger (INR).
The Tata Steel Odisha project was awarded PFI Industry Deal of the Year - 2013 by Thomson Reuters as well as Project Finance thAsia Pacific Mining & Metals Deal of the Year 2013 by Euromoney. It also had the distinction of being ranked 5 in the Global top
15 deals by Dealogic, Global top 10 deals by PFI – Thomson Reuters and Asia Pacific Ex -Japan top 10 deals by Bloomberg. It was ndranked 2 in the top 10 Asian deals by PFI – Thomson Reuters.
th thONGC Petro-additions Limited (OPaL) was ranked 11 in the Global top 15 deals by Dealogic, ranked 9 in the Global top 10 thdeals by PFI – Thomson Reuters and ranked 4 in the top 10 Asian deals by PFI – Thomson Reuters.
It is noteworthy that Tata Steel Odisha and OPaL were the only two Indian deals to feature in the global lists.
During the year, the aggregate banking facilities tied up, including those under the CDR mechanism, stood at Rs. 2,39,751 crs,
the highest ever achieved by the Group. While Tata Steel was the largest deal in INR market, the SBLC backed USD 1.9 bn ECB
facility for Aban Holdings Pte was the largest USD fund raising by any intermediary in India. The Zamin-Amapa deal in Brazil
helped launch the Group's project financing foray in Latin America, increasing the reach of our operations.
The Group closed 39 restructuring deals under the CDR mechanism aggregating to Rs. 92,875 crs during the year with lenders
actively referring many complex cases to the Group. Bombay Rayon was the fastest CDR mandate cleared by the CDR cell since
inception, with a 68 day completion time.
3.1.1(d) Non-Infra Group
The Non-Infrastructure Group successfully closed 21 transactions in the financial year in various areas of M&A Advisory
services, acquisition financing, debt syndication, debt restructuring feasibility services and business valuations.
During the year, the Group has successfully closed three notable cross-border deals. One of the deals involved Buy-side
advisory services to Kokuyu, a USD 3 bn Japanese conglomerate, in its acquisition of an Indian paper stationery manufacturer
Riddhi Enterprises. SBICAP won the prestigious 'Deal of the Year Award' in M&A International amongst 40 countries across the
globe for this deal.
The Group continues leveraging the funding strength and domestic reach of SBI coupled with the global reach and platform
provided by M&A International to explore both organic and inorganic growth opportunities.
3.1.2 Income from Securities - Treasury & Investments
stThe treasury income for the year ended 31 March, 2014 was Rs. 43.92 Crs as against Rs. 45.97 Crs in the corresponding period
last year. During the period, investments were done in the debt with focus on maximizing post-tax returns. During the year we
have locked funds in Fixed Maturity Plans of Mutual funds to take advantage of indexation benefits, thus lowering the incidence
of tax on income from investments. Anticipating the decline in interest rates long term funds were invested in tax free bonds
and Gilt Fund.
3.2 Qualitative Performance
3.2.1 Human Resources
The Company's mission to provide credible, professional and customer focused world class investment banking solutions has
been endorsed by the several awards and recognitions received by the Company.
The Company believes that “Human Resources” are the critical resource for achieving its objectives and values the resources as
“Intellectual Capital”. The Human Resources function in the Company focuses on transformational rather than transactional
processes and continuously strives to align and benchmark its HR policies/practices to the best industry practices. The Human
Resource function understands the needs of the product groups and collaborates with them, thus contributing to the
achievement of the business objectives of the Company.
The organization is growing rapidly and to keep pace and fuel the growth, experienced professionals were hired from the
market and through campus recruitments from the premier B-schools. Our people integration model ensures minimum
process time to board people in the Company for faster time to productivity.
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Annexure A (contd.)
Diverse set of professionals are integrated within the Company and by fostering performance behavior the performance driven
culture is well ingrained in the Company. Performances of individuals are differentiated and “Star Performers” who have
contributed significantly to the business goals of the Company are recognized. The employees are rewarded monetarily as well as
by investing in them for their skills development. During the year 2013-14, 37 officials attended Overseas Training/Conferences/
Seminars/Forums/Summits.
The work environment embraces diversity. The Company offers a challenging work environment, fostering a stimulating work
culture of innovation and individual growth.
The HR initiatives for talent development through learning and development programmes have ensured that the Company has
the right competencies and skill sets in its workforce to meet the challenging business objectives.
Focus on Talent Management, Competency Development, 360 Degrees Feedback Survey, Career Progression, Market Related
Compensation and Benefits has helped the Company to attract, motivate and retain talent as well as build a robust pipeline of
future leaders for the Company.
We are an employer providing equal opportunity to all the employees.
3.2.2 Information Technology
In the last financial year Information Technology Group has taken significant steps in enhancing the organisational efficiency.
Business Process Re-Engineering has been performed to enhance the efficiencies of the processes and procedures. An ERP
implementation covering Finance, HR and Project Management is in progress. A full fledged Unified Communication Solution
covering Video, Audio and Presence has been implanted to enhance the productivity. Continuous enhancements are done in
Enterprise Applications to make them more business centric.
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Annexure B
Corporate Governance Report
i) Composition of the Board
The principles of Corporate Governance are followed in letter and spirit reflecting our deep belief in such principles and the
pedigree of our parent shareholder. For your Company, Corporate Governance is not just an objective in isolation but a means
to an end - "To be the Best India based Investment Bank".
As on 31st March, 2014, the Board of Directors comprised ten Directors out of whom six are independent. Given hereunder is
the composition of the Board of Directors along with brief profiles of the Directors :
1. Smt. Arundhati Bhattacharya, Chairman [SBI Nominee]: Smt. Bhattacharya is the Chairman of State Bank of India (SBI) and
is also Head of the entire State Bank Group. Earlier she was MD & CFO of SBI. Prior to this, she was MD & CEO of SBI Capital
Markets Ltd. from 21st August, 2012 to 2nd August, 2013. Before her assignment in SBICAP, she was Deputy Managing
Director and Corporate Development Officer of SBI. She joined the Bank in the year 1977 and since then has held various
assignments spanning Credit, Forex, Treasury and Retail Operations. She has also had a stint in the Bank’s New York office
where she was in charge of monitoring branch performance, overseeing External Audit and Correspondent Relations. In
her extensive service in the Bank she has had the opportunity of working in Metro, Urban and Rural areas, criss-crossing
the length and breadth of the country. She has handled large Corporate Credit as well as initiatives like Financial Inclusion
and financing of Self Help Groups. She was involved in setting up several new companies / initiatives of the Bank including
SBI General Insurance, SBI Macquarie Infrastructure Fund, SBI SG Global Securities Services, etc., as well as the launch of
new IT platforms such as Mobile Banking and Financial Planning in the Bank.
2. Shri S. Vishvanathan, Non Executive Director [SBI Nominee]: Shri Vishvanathan was the Managing Director & GE
(Associates & Subsidiaries) of State Bank of India. He has over 37 years of Banking experience with SBI. He was appointed
as Managing Director of SBI with effect from 9th October, 2012. Earlier, he was Dy. Managing Director (Mid Corporate), SBI.
Prior to that, he was Managing Director & CEO of SBI Capital Markets Limited (SBICAP) for more than three years from June
2009 to August 2012. Earlier, he was Chief General Manager of State Bank of India’s North Eastern operations. He has
served the bank in several important capacities which include an assignment in New York Branch and stints as Regional
Manager and Deputy General Manager in Delhi Circle and as General Manager (Global Markets).
3. Smt. Bharati Rao, Non Executive Director [SBI Nominee]: Smt. Rao has over 37 years of experience in the banking sector.
She retired from State Bank of India in October, 2008. During her tenure with the Bank, she had held various responsible
positions. Her 36 years in the Bank have seen a range of assignments both in India and abroad in areas like Commercial
Banking, Project Finance, and International Banking. She was Dy. Managing Director & Chief Credit Officer, SBI, Corporate
Centre, Mumbai with an additional charge as Dy. Managing Director and Group Executive (Associate Banks) and Dy.
Managing Director & CDO at the time of retiring from the Bank’s service.
4. Shri Bansi S. Mehta, Non Executive Independent Director: Shri Mehta is a well-known practicing Chartered Accountant
and is a Senior Partner of Bansi S. Mehta & Co., Chartered Accountants. Shri Mehta has rich experience of over 54 years in
the fields of financial management, taxation, accounting and auditing.
5. Shri D. Sundaram, Non Executive Independent Director & Chairman of the Audit Committee: Shri Sundaram is the Vice
Chairman and Managing Director of TVS Capital Funds Ltd. and has over 37 years of experience in the areas of Finance and
Accounting. He was with the HUL group since 1975. He was seconded twice to Unilever, London. He had held important
positions such as Commercial Manager & Treasurer, Finance Member– TOMCO Integration Team, Finance Director BBLIL
and Sr. Vice President– Finance, Central Asia & Middle East Group and was the Vice Chairman & CFO of HUL.
6. Shri Narayan K. Seshadri, Non Executive Independent Director: Shri Seshadri is the Chairman and CEO of Halcyon Group
an Investment Advisory and Management Services enterprises specializing in 'turnaround' and 'turn up' activities. He is a
Chartered Accountant. He headed Andersen and KPMG Business Consulting businesses before founding Halcyon. He
carries a rich experience of over 29 years in Finance, Accounts, Audit, Advisory and Management Services. His experience
ranges across industries in different countries.
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Annexure B (contd.)
7. Shri Ashok Kini, Non Executive Independent Director: Shri Kini has over 39 years of experience in the Banking Sector. He
joined State Bank of India (SBI) in December 1967 and retired in December 2005. During his tenure with SBI, he had held
various responsible positions, including those of Managing Director & GE (National Banking), Dy. Managing Director –
Information Technology Dept., Chief General Manager – Information Technology Dept., Chief General Manager –
Technology Planning, General Manager (Commercial Banking), General Manager (Development & Personal Banking), Dy.
General Manager – Industrial Finance - Dept., and Dy. General Manager – Computer Planning & Services.
8. Shri Pradeep Kumar Sarkar, Non Executive Independent Director: Shri Sarkar has over 35 years of experience in the
Banking Sector. He joined State Bank of India (SBI) in November 1967 and retired in November 2001. During his tenure
with SBI, he had held various responsible positions in SBI and SBI Capital Markets Limited (SBICAP), including those of
Dy. Managing Director & GE (International Banking Group), Dy. Managing Director & Chief Financial Officer, Chief General
Manager - Kolkata, General Manager–SBICAP, New Delhi Regional Office, General Manager-Corporate Finance, SBICAP,
Dy. General Manager-Cadre Management and Dy. General Manager-Main Branch, Kolkata.
9. Smt. Aruna Jayanthi, Non Executive Independent Director: Smt. Jayanthi is the Chief Executive Officer (CEO) of Capgemini
India. Capgemini India is the Capgemini Group’s largest delivery centre and main innovation hub with over 36,000
employees. As the CEO of Capgemini India, Smt. Jayanthi manages the operations of all the business units in India
covering consulting, technology and outsourcing services. In addition, she plays a key role in Leadership Development
and building alignment between HR and Business. She has over 26 years experience in the IT services industry and has
worked in key roles in multinational and Indian system integrator companies. She holds a Masters in Management Studies
in Finance from Narsee Monjee Institute of Management Studies (NMIMS). She has been featured as one of the ‘Most
Powerful Women’ in India Inc. by India’s leading business magazine ‘Business Today’ in its eighth annual list (2011). She is
also ranked 4th in the List of 50 Most Powerful Indian Women by Fortune India magazine.
10. Shri V. G. Kannan, Managing Director & CEO [SBI Nominee]: Shri V.G. Kannan has assumed charge as MD & CEO of SBI
Capital Markets Ltd. on 8th October, 2013. Earlier, he was President & COO of SBICAP from 27th August, 2012. Prior to his
assignment in SBICAP, he was CGM (Mid Corporate Group), SBI Corporate Office at Mumbai. He joined SBI in the year
1978, and since then, he has held various assignments spanning Credit, Forex and Investments and Retail Banking. He has
had considerable experience of over 10 years in Credit and over 16 years in various aspects of Treasury and was actively
involved in the setting up of the first Integrated Forex and Treasury Module of the Bank. He was head of the Bank’s Forex
Department and later on moved back to credit. His assignments included heading the Delhi Mid Corporate Region as
General Manager and DGM Commercial Banking, Hyderabad. He has had a stint in Retail Banking having served as
General Manager of Bank’s Retail Network in Chennai for 2 years. He also worked in Hong Kong as Chief Manager Money
and Treasury desk.
The Chairman has been appointed by State Bank of India (SBI) in terms of Articles 139(ii) & 157 of the Articles of Association of
the Company.
The Non-Executive Nominee Directors have been appointed by SBI in terms of Articles 139 and 140 of the Articles of
Association of the Company.
The Non-Executive Independent Directors were appointed as Directors liable to retire by rotation under Section 255 of the
Companies Act 1956.
The Managing Director & CEO has been appointed by SBI in terms of Article 168 of the Articles of Association of the Company.
The Board of Directors focuses on monitoring the business operations and the development of business strategies, while the
task of reviewing matters such as status of overdues, status of litigations etc., are delegated to a Committee of Directors (COD)
constituted for the purpose by the Board.
The Board has evolved a Calendar of Reviews, which has identified the various reports/reviews to be submitted on a periodical
basis to the Board/COD/Audit Committee and the said Calendar of Reviews is strictly followed.
ii) Tenure
iii) Responsibilities
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Annexure B (contd.)
Smt. Arundhati Bhattacharya,
Chairman (SBI Nominee) - (appointed w.e.f. 25th October, 2013)
Shri Pratip Chaudhuri,
Chairman, (SBI Nominee) 2 (resigned w.e.f. 30th September, 2013)
Shri S. Vishvanathan,
Nominee Director, (SBI Nominee) 6
Smt. Bharati Rao,
Nominee Director, (SBI Nominee) 4
Shri Bansi S. Mehta,
Non Executive Independent Director 4
Shri D. Sundaram,
Non Executive Independent Director 5
Shri Narayan K. Seshadri,
Non Executive Independent Director 4
Shri Ashok Kini,
Non Executive Independent Director 3
Shri P.K. Sarkar,
Non Executive Independent Director 6
Smt. Aruna Jayanthi,
Non Executive Independent Director 3
Smt. Arundhati Bhattacharya,
Managing Director & CEO, (SBI Nominee) 3 (resigned w.e.f. 2nd August, 2013)
Shri V. G. Kannan,
Managing Director & CEO, (SBI Nominee) 3 (appointed w.e.f. 8th October, 2013)
2013-14Name of the Director Number of Board Meetings attended
iv) Role of the Independent Directors
v) Board Meetings
The Independent Directors play a very crucial role in the Board meetings and their wide experience, expertise and knowledge of
economics, finance, capital markets, taxation, accounting, auditing etc., have benefited the Company immensely.
During the year under review, seven Board Meetings were held and the attendance record of each Director at the said Board
Meetings is given hereunder :-
vi) Composition and role of the Audit Committee and the scope of Internal Audit Function
vii) Strengthening of the compliance systems
The Audit Committee comprising of Shri D. Sundaram and Shri Narayan K. Seshdadri, Independent Directors and
Shri S. Vishvanathan, SBI Nominee Director, with Shri D. Sundaram, Independent Director being the Chairman. The composition
of the Audit Committee as well as its role and functions are broadly in conformity with the stipulations of the Kumar Mangalam
Birla Committee Report on Corporate Governance, and Section 292A of the Companies Act, 1956.
The Company has set in place an effective system to ensure compliance with all the applicable Laws/Statutes and the same
is monitored by the Compliance & Risk Management Dept.
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Annexure B (contd.)
viii) Compliance with SEBI 's Prohibition of Insider Trading Regulations
ix) Directors are duly qualified to act as such
With a view to preventing insider trading, a suitable Code of Conduct has been set in place to regulate the dealings in securities
by all the employees of the Company and compliance with the same is monitored by the Assistant Vice President (Compliance
& Risk Management). The Code of Conduct of the Company is in conformity with the SEBI (Prohibition of Insider Trading)
Regulations, 1992.
As per the declarations submitted to the Company, all the Directors are duly qualified to act as such and none of them is
disqualified under section 274(1)(g) of the Companies Act, 1956. This aspect has also been verified by the Statutory Auditors of
the Company.
______________________________________________________________________
DECLARATION
I confirm that all Board Members and Senior Management have affirmed compliance with the Company’s Code of Conduct
for the financial year ended 31st March, 2014.
(Rajnish Kumar)
Managing Director & CEO
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Annexure C
Name
STATEMENT PURSUANT TO SECTION 217(2A) OF THE COMPANIES ACT, 1956 AND COMPANIES (PARTICULARS
OF EMPLOYEES) RULES, 1975
Designation/
Nature of duties
Remuneration
(Rs.)
Date of
commencement of
employment
Qualification and
Experience/
Age – years
Last Employment
held, Designation
(A) Employed throughout the year and are in receipt of remuneration aggregating not less than
Rs. 60,00,000/- per annum
Shri Supratim Sarkar
Shri Rakesh Joshi
Shri Sanjeev Kumar
Agarwal
Shri Rajat Misra
Shri Vishal Gupta
Shri Mukul Modi
Shri Gopal Agarwal
Shri Rajesh Kumar
Agarwal
Executive Vice
President & Group
Head – Infra
Sr. Vice President
– Debt Capital
Market
Sr. Vice President -
Infra
Sr. Vice President -
Infra
Sr. Vice President -
Infra
Sr. Vice President -
Infra
Sr. Vice President –
Infra
Sr. Vice President –
Infra
1,04,78,665/-
62,57,406/-
67,12,687/-
68,94,519/-
69,58,924/-
60,29,649/-
64,10,187/-
64,14,785/-
7th Nov. 2000
5th April 2011
16th March, 2006
1st June, 1999
9th October, 2006
10th March, 2005
11th April, 2005
19th May, 2005
B.E. (Mech.
Engg.) M. Tech,
MBA, - 23 / 48
B. Sc. (Hons.),
CAIIB– Part I,
- 30/52
B.Sc. , B. Tech.,
DBF, ICFAI
- 26 /48
B. Tech (Mech.
Engg.), PGDBM
(Finance)- 20 /44
B. Chem., Engg,
MFM, Gen.
Management
Course IIM- 22/46
BE (Production
Engg.), BIT,
Ranchi, PGDBM
(Finance &
Marketing), CAIIB
- 24/46
CAIIB CA, CS,
ICWA,
B.Com(Hons)
– 20/42
JAIIB,CS,CA,
B.Com. – 23/45
IDBI LTD, DGM
J. P. Morgan
Services India
Private Limited,
Executive Director
IDBI Ltd., DGM
Sr. Engineer, BHEL
Advance Research
Project Div.
Reliance
Industries Limited,
DGM
Sterlite Industries
(I) Ltd
IDBI
IFCI Ltd
(B) Employed for part of the year and are in receipt of remuneration aggregating not less than Rs. 5,00,000/- per month
Nil
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Annexure C (contd.)
NOTES :
1) The above remuneration includes salaries, allowances, arrears of salary, leave encashment, performance linked variable
pay, monetary value of perquisites as per Income Tax Rules, reimbursement of Leave Travel Allowance and Medical
expenses claimed during the year, Company's contribution to Provident and Superannuation Funds.
2) Other terms and conditions of service include Company's contribution to Gratuity Fund.
3) The nature of employment – all employments are non contractual.
4) % of equity shares held by the employee in the Company within the meaning of sub-clause (iii) of clause (a) of Section
217(2A) of the Companies Act, 1956 – Nil.
5) The employees are not related to any Directors of the Company.
For and on behalf of the Board of Directors
(Arundhati Bhattacharya)
Chairman
Place : Mumbai :
ndDate : 2 August, 2014
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Independent Auditors' Report
To the Members of SBI Capital Markets Limited
Report on the Financial Statements
Management's Responsibility for the Financial Statements
Auditor's Responsibility
Opinion
Report on Other Legal and Regulatory Requirements
We have audited the accompanying financial statements of SBI Capital Markets Limited (“the Company”), which comprise the
Balance Sheet as at March 31, 2014, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and
a summary of significant accounting policies and other explanatory information.
Management is responsible for the preparation of these financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956 (“the Act”). This responsibility includes the design, implementation
and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true
and fair view and are free from material mis-statement, whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require
that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material mis-statement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material mis-
statement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the explanations given to us, the financial statements give
the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
1. As required by the Companies (Auditor's Report) Order, 2003 as amended by Companies (Auditor's Report Amendment)
Order, 2004 (together “the Order”), issued by the Central Government of India in terms of sub-section (4A) of section 227
of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations, which to the best of our knowledge and belief were necessary
for the purpose of our audit;
b. in our opinion proper books of account as required by law have been kept by the Company so far as appears from our
examination of those books;
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement
with the books of account ;
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d. in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash flow Statement comply with the Accounting
Standards referred to in sub-section(3C) of section 211 of the Companies Act, 1956;
e. on the basis of written representations received from the Directors as on March 31, 2014, and taken on record by the
Board of Directors, none of the Directors is disqualified as on March 31, 2014, from being appointed as a Director in
terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.
f. as the Central Government is yet to notify Cess payable under Section 441 A, the reporting requirement under
Section 227(3) (g) of the Companies Act, 1956 does not arise.
For SHAH AND TAPARIA
Chartered Accountants
Firm's Registration Number:-109463W
Rakesh Kumar Joshi
Partner
Membership Number:102880
Place: - MUMBAI
thDate: - 12 April, 2014
Independent Auditors' Report (contd.)
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Annexure To The Auditors’ Report
i. In respect of its fixed assets:
a. The Company has maintained proper records showing full particulars, including quantitative details and the
situation of fixed assets.
b. All fixed assets, except certain leased assets were physically verified by the management in the current year in
accordance with a planned programme of verifying them which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. Certain leased fixed assets have not been physically verified where,
as per the terms of the agreement, the Company obtains confirmation from the lessee on the regular basis. As
informed no material discrepancies were noted on such verification.
c. Fixed assets disposed off during the period were not substantial and therefore do not affect the going concern
assumption.
ii. In respect of inventories
a. The securities held as stock in trade and in custody of the Company have been physically verified by the
management at reasonable intervals. In our opinion, the frequency of such verification is reasonable.
b. The procedures of physical verification of inventory followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
c. The Company is maintaining proper records of inventory and no discrepancies were noticed on comparing the
physical securities/statement from the custodian with book records.
iii. According to the information and explanations given to us, the Company has not granted any loans, secured or
unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Act.
Accordingly sub clauses (b), (c), (d), (e), (f) and (g) of clause (iii) of the Order are not applicable.
iv. The Company has not taken any loans, secured or unsecured from companies, firms or parties covered in the register
maintained under Section 301 of the Act. Accordingly, paragraphs 4(iii)(e) to 4(iii)(g) of the Order are not applicable.
v. In our opinion and according to the information and explanations given to us, there is adequate internal control system
commensurate with the size of the Company and the nature of its business with regard to purchases of fixed assets and
sale of services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses
in the internal control system of the Company.
vi. According to the information and explanations provided by the management, we are of the opinion that the particulars
of contracts or arrangements referred to in section 301 of the Act that need to be entered into the register maintained
under section 301 have been so entered. Accordingly, sub clause (b) of clause (v) of the Order is not applicable to the
Company for the current period.
vii. The Company has not accepted any deposits from the public.
vii. In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.
viii. The provisions of Section 209(1) (d) of the Companies Act, 1956 are not applicable to the Company.
ix. In respect of Statutory Dues:
a. According to the information and explanations given to us, the Company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund, income-tax, sales-tax, service tax and other
material statutory dues applicable to it. The provisions of Investor Education and Protection Fund, wealth tax,
customs duty, excise duty and cess are not applicable to the Company in the current year.
b. According to the information and explanations given to us, no undisputed amounts payable in respect of provident
fund, income-tax, service tax, sales-tax, cess and other undisputed statutory dues were outstanding, at the year end,
for a period of more than six months from the date they became payable.
c. According to the records of the Company, the dues outstanding of income-tax , sales-tax, wealth-tax, service tax,,
custom duty, excise duty and cess on account of any dispute, are as follows:
(Referred to in our report of even date)
Re.: SBI CAPITAL MARKETS LIMITED
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Annexure To The Auditors’ Report (contd.)
x. The Company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current
and immediately preceding financial year.
xi. According to the information and explanations given to us, and based on checks carried out by us, the Company has not
defaulted in repayment of dues to financial institutions or banks. The Company has not issued any debentures during the
year.
xii. According to the information and explanations given to us, the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other securities.
xiii. According to the information and explanations given to us, the provisions of Chit Funds or Nidhi or mutual benefit fund or
society are not applicable to the Company; accordingly clause (xiii) of the Order is not applicable to the Company.
xiv. In respect of dealing/trading in shares, securities, debentures and other investments, in our opinion and according to the
information and explanations given to us, proper records have been maintained of the transactions and contracts and
timely entries have been made therein. The shares, securities, debentures and other investments have been held by the
Company, in its own name.
xv. According to information and explanations given to us, the Company has not given any guarantee for loans taken by
others from bank or financial institutions.
xvi. The Company did not have any term loans outstanding during the year.
xvii. According to the information and explanations given to us, and on an overall examination of the balance sheet of the
Company, funds raised on short-term basis have, prima facie, not been used during the year for making long-
term investments.
xviii. The Company has not made any preferential allotment of shares during the year.
xix. The Company has not issued any debentures during the year.
xx. The Company has not raised any money through a public issue.
xxi. Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements
and as per the information and explanations given by the management, we report that no fraud on or by the Company has
been noticed or reported during the course of our audit.
For SHAH AND TAPARIA CO.
Chartered Accountants
Firm Registration No.109463W
RAKESH KUMAR JOSHI
Partner
Membership No. 102880
Place: Mumbai
Dated: April 12, 2014
Name of the Statute Nature of the Dues Amount Period to which the Forum where the
(Rs. in Lacs) amount relates dispute is pending
Income Tax Act, 1961 Issue relating to 605.47 AY 2006 – 2007 & Commissioner Income
disallowance of Expenses AY 2011 – 2012 Tax (Appeals)
3531.05 AY 1989 – 1990 to Income Tax Appellate
AY 2010 – 2011 Tribunal (ITAT)
Sales Tax Issues relating to 23.13 AY 1991 – 1996 Commissioner Sales
(Central and State) Lease Tax Tax
Bombay Sales Tax Issues relating to 8.59 AY 1998-1999 to Commissioner Sales
Act, 1959 Sales Tax AY 2000-2001 Tax
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CAG Comments
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 619(4) OF THE COMPANIES
ACT, 1956 ON THE ACCOUNTS OF SBI CAPITAL MARKETS LIMITED FOR THE YEAR ENDED 31 MARCH 2014
The preparation of financial statements of SBI Capital Markets Limited for the year ended 31 March 2014 in accordance with
the financial reporting framework prescribed under the Companies Act, 1956 is the responsibility of the management of the
Company. The Statutory Auditor appointed by the Comptroller and Auditor General of India under Section 619(2) of the
Companies Act, 1956 is responsible for expressing opinion on these financial statements under Section 227 of the Companies
Act, 1956 based on independent audit in accordance with the Standards on Auditing prescribed by their professional body, the
Institute of Chartered Accountants of India. This is stated to have been done by them vide their Audit Report dated
07 May 2014.
I, on behalf of the Comptroller and Auditor General of India, have decided not to review the report of the Statutory Auditor on
the accounts of SBI Capital Markets Limited for the year ended 31 March 2014 and as such have no comments to make under
Section 619(4) of the Companies Act, 1956.
For and on behalf of the
Comptroller and Auditor General of India
(Y. N. Thakare)
Principal Director of Commercial Audit &
ex-officio Member, Audit Board-I, Mumbai
Place: Mumbai
Date : 24 June 2014
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Balance Sheet As At 31st March 2014
EQUITY AND LIABILITIES
ASSETS
SHAREHOLDERS' FUNDS
Share capital 2.1 5,803 5,803
Reserves and surplus 2.2 92,255 83,379
98,058 89,182 NON-CURRENT LIABILITIES
Other long-term liabilities 2.3 283 259
Long-term provisions 2.4 932 913
1,215 1,172 CURRENT LIABILITIES
Trade payables 2.5 2,042 1,853
Other current liabilities 2.6 3,055 2,152
Short-term provisions 2.4 2,654 2,523
7,751 6,528
TOTAL 107,024 96,882
NON-CURRENT ASSETS
Fixed Assets 2.7
Tangible Assets 1,028 960
Intangible Assets 64 74
Non-current Investments 2.8 32,337 20,521
Deferred tax assets (net) 2.21 2,756 1,298
Long-term loans and advances 2.9 6,507 5,861
Trade receivables 2.10 19 19
42,711 28,733 CURRENT ASSETS
Current investments 2.8 - 5,000
Inventories 2.12 30,873 19,530
Trade receivables 2.10 22,902 25,333
Cash and cash equivalents 2.13 8,898 16,774
Short-term loans and advances 2.9 378 338
Other current assets 2.11 1,262 1,174
64,313 68,149
TOTAL 107,024 96,882
NOTES TO ACCOUNTS 1 & 2
The accompanying notes are an integral part of the financial statements.
As per our report of even date
For SHAH & TAPARIA For and on behalf of Board of Directors
Firm Registration No. 109463W
Chartered Accountants
Rakesh Kumar Joshi Arundhati Bhattacharya V.G.Kannan Nilesh N. Shah
Partner Chairman Managing Director & CEO Company Secretary
Membership No.: 102880
Mumbai
April 12, 2014
As at
31-Mar-13
As at
31-Mar-14Notes
(Rupees in lacs unless otherwise stated)
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Statement Of Profit And Loss For The Year Ended 31st March 2014
INCOME
EXPENDITURE
PROFIT BEFORE TAX
PROFIT FOR THE YEAR
Revenue from operations 2.14 57,862 52,806
Other income 2.15 1,600 2,171
59,462 54,977
Employee benefit expenses 2.16 9,113 7,586
Interest expense 2.17 - 1
Depreciation and amortisation expense 2.7 282 280
Other expenses 2.18 6,080 4,540
Provisions 2.19 5,117 731
20,592 13,138
38,870 41,839
Provision for current income-tax (13,800) (13,100)
Deferred tax credit 2.21 1,458 861
26,528 29,600
Earning per share (Basic and Diluted in Rs.)
(Face value Rs.10/- per share) 45.71 51.00
NOTES TO ACCOUNTS 1 & 2
The accompanying notes are an integral part of the Financial Statements.
As per our report of even date
For SHAH & TAPARIA For and on behalf of Board of Directors
Firm Registration No. 109463W
Chartered Accountants
Rakesh Kumar Joshi Arundhati Bhattacharya V.G.Kannan Nilesh N. Shah
Partner Chairman Managing Director & CEO Company Secretary
Membership No.: 102880
Mumbai
April 12, 2014
Notes
(Rupees in lacs unless otherwise stated)
For the year ended
31-Mar-13
For the year ended
31-Mar-14
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Cash Flow Statement
Cash flow from operating activities :-
I. Net cash from operating activities
Cash flow from investing activities :-
II. Net cash from investing activities
Cash flow from financing activities :-
Net profit before taxation 38,870 41,839
Adjustments for -
(Profit) / Loss on sale of assets(net) 3 (1)
Profit on sale of long term investments (39) 84
Interest on long term investments (2,626) (1,636)
Dividend income (2,306) (2,034)
Interest expenses - 1
Depreciation 282 280
Provision on investments (net of write-back) 572 273
Provision on stock-in-trade (net of write-back) 22 -
Provision for doubtful debts (net of write-back) 4,064 405
(28) (2,628)
Operating profit before working capital changes 38,842 39,211
Decrease /(increase) in trade receivables - current (1,633) (12,721)
Decrease /(increase) in interest / dividend accrued 441 416
Decrease /(increase) in short-term loans & advances 753 (941)
Decrease /(increase) in long-term loans & advances (646) 884
Decrease/(increase) in stock-in-trade (11,365) (1,112)
(Decrease)/increase in current liabilities 1,091 (2,207)
(Decrease)/increase in long-term liabilities 24 (472)
(Decrease)/increase in provision for gratuity (90) 77
(Decrease)/increase in provision for compensated absences 124 174
(11,300) (15,902)
Cash generated from operations 27,542 23,309
Income tax paid (14,593) (12,345)
(14,593) (12,345)
12,949 10,964
Purchase of fixed assets (388) (216)
Sale of fixed assets 44 38
Interest on long term investments 2,064 1,274
Dividend income 2,306 2,034
Purchase of investments (13,401) (5,752)
Sale of investments 6,053 2,416
(3,322) (206)
Interest expenses - (1)
Dividend payment (15,089) (15,089)
Tax on dividend payment (2,448) (1,883)
(Rupees in lacs unless otherwise stated)
For the year ended
31-Mar-13
For the year ended
31-Mar-14
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Cash Flow Statement (contd.)
For the year ended
31-Mar-13
For the year ended
31-Mar-14
As per our report of even date
For SHAH & TAPARIA For and on behalf of Board of Directors
Firm Registration No. 109463W
Chartered Accountants
Rakesh Kumar Joshi Arundhati Bhattacharya V.G.Kannan Nilesh N. Shah
Partner Chairman Managing Director & CEO Company Secretary
Membership No.: 102880
Mumbai
April 12, 2014
(Rupees in lacs unless otherwise stated)
III. Net cash used in financing activities
Net change in cash & cash equivalents (I+II+III)
(17,537) (16,973)
(7,910) (6,215)
Cash & cash equivalents at the beginning of the year 16,773 22,988
Cash & cash equivalents at the end of the year 8,864 16,773
Cash and cash equivalent included in cash flow statement comprise the following balance sheet amounts :-
Cash on hand - -
Balances with scheduled banks current accounts 8,864 16,773
8,864 16,773
(Excludes amounts placed as deposits with scheduled
banks towards cash margin for various guarantees
issued by banks on behalf of the Company.) 34 1
The Cash flow statement and the notes to accounts form an integral part of the accounts.
As at
31-Mar-14
As at
31-Mar-13
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Notes To Financial StatementsFor The Year Ended 31st March 2014
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
a) Basis of preparation
b) Use of estimates
c) Fixed Assets and Depreciation
d) Intangible Assets
e) Impairment
f) Investments
The financial statements have been prepared to comply in all material respects with the standards notified by the
Companies Accounting Standards Rules, 2006 and the relevant provisions of the Companies Act, 1956. The financial
statements have been prepared under the historical cost convention on an accrual basis, except in case of assets for which
provision for impairment is made and revaluation is carried out. The accounting policies have been consistently applied
by the Company and are consistent with those used in the previous year.
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent liabilities at the date of the financial statements and the results of operations during the reporting period
end. Although these estimates are based upon management’s best knowledge of current events and actions, actual
results could differ from these estimates.
Fixed assets are stated at cost less accumulated depreciation and impairment loss, if any. Cost comprises the purchase
price and any attributable cost of bringing the asset to its working condition for its intended use.
Depreciation on fixed assets, other than leased fixed assets, software, computers, mobile phones and hand held devices is
provided using the written down value at the rates prescribed in Schedule XIV to the Companies Act, 1956, on a pro-rata
basis. Computers, mobile phones and hand held devices are depreciated over a period of three years on straight line basis.
The rates applied for all assets are equal to or higher than the rates based on the useful lives.
In case of fixed assets leased prior to April 1, 2001, depreciation is provided using the straight-line method at the rates
prescribed in Schedule XIV to the Companies Act, 1956, on a pro-rata basis, or amount worked out in the ratio of lease
rentals accrued as per the agreement to the lease rentals for the entire primary period of lease, whichever is higher (on a
cumulative basis). This method is followed in preference to the recommendations made by the Institute of Chartered
Accountants of India, in its Guidance Note, ‘Accounting for Lease’. This Guidance Note is recommendatory in nature.
The leasehold improvements have been written off over the balance period of lease.
Software is amortised over a period of three years on a straight line basis.
The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on
internal/external factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds its
recoverable amount. The recoverable amount is the greater of the asset’s net selling price and value in use. In assessing
value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.
After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.
Investments include equity shares, preference shares, debt instruments and units of mutual funds, which are intended to
be held to maturity or for a period of not less than one year are classified as long term investments. All other investments
are classified as Current investments.
Long-term investments are carried at cost arrived at on a weighted average basis and are stated net of provision. Cost
comprises purchase price, brokerage and stamp duty. Appropriate provision is made for, other than temporary
diminution in the value of investments.
Investment in Immovable property is valued at cost. Appropriate provision is made for, other than temporary diminution
in the value of investments.
(Rupees in lacs unless otherwise stated)
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g) Stock-in-trade
h) Revenue recognition
i) Foreign currency transactions
j) Retirement and other employee benefits
Securities acquired and held, principally for the purpose of selling them in the near term, are classified as stock-in-trade.
Quoted securities are valued at lower of cost and market value. Unquoted equity shares are valued at the lower of cost and
break-up value. Unquoted debt instruments are valued in accordance with the valuation guidelines issued by the Fixed
Income Money Market and Derivatives Association of India (FIMMDA). Accordingly, stock of government dated securities,
corporate/FI debentures/bonds are valued at lower of cost or market/fair value. Appropriate provisions, as prescribed by
Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998 are made for non-performing debt
instruments. The discount, if any, is amortised over the holding period of the instrument based on the original yields for
the residual maturities and the carrying value of the instrument is adjusted correspondingly. Units of mutual fund are
valued at lower of cost and net asset value.
Cost comprises purchase price, brokerage, stamp duty and any premium, if paid and is computed on weighted average
basis. The market value is the price at which the securities are traded in the market. In the absence of such market price, the
market value is derived based on market related spreads over the Government benchmark curve, as specified in FIMMDA
guidelines, for applicable securities.
Revenue is recognized to the extent that it is probable that economic benefits will flow to the Company and revenue can
be easily measured.
Fee-based Income:
• Issue management and advisory fees are recognised as per the terms of the agreement with the client, net of pass-
through.
• Fees for private placement are recognised on completion of assignment.
Income from securities:
• Gains and losses on the sale of securities are recognised on trade date.
• Dividend is accounted on an accrual basis where the right to receive the dividend is established.
• Interest is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable
except interest in respect of non-performing/doubtful assets which is recognised on cash basis.
Initial Recognition
Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the
exchange rate between the reporting currency and the foreign currency at the date of the transaction.
Conversion
Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of
historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and
non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are
reported using the exchange rates that existed when the values were determined.
Exchange Differences
Exchange differences arising on the settlement of monetary items or on the reporting date due to rates different from
those at which they were initially recorded during the year, or reported in previous financial statements, are recognised as
income or as expenses in the year in which they arise except those arising from investments in non-integral operations.
Retirement benefits to employees comprise gratuity, superannuation, provident fund and pension fund. The Company's
employees are covered under the employees' gratuity scheme and superannuation scheme established by the Life
Insurance Corporation of India ('LIC').
Notes To Financial StatementsFor The Year Ended 31st March 2014 (contd.)
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Notes To Financial StatementsFor The Year Ended 31st March 2014 (contd.)
Retirement benefits in the form of Provident Fund and Superannuation Fund are a defined contribution scheme and the
contributions are charged to the Profit and Loss Account of the year when the contributions to the respective funds are
due. There are no other obligations other than the contribution payable to the respective trusts.
Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit
credit method made at the end of each financial year.
Short term compensated absences are provided for based on estimates. Long term compensated absences are provided
for based on actuarial valuation. The actuarial valuation is done as per projected unit credit method made at the end of
each financial year.
Actuarial gains/losses are immediately taken to profit and loss account and are not deferred.
Tax expense comprises current and deferred taxes. Current income tax is measured at the amount expected to be paid to
the tax authorities in accordance with the Income Tax Act. Deferred income taxes reflect the impact of current year timing
differences between taxable income and accounting income for the year and reversal of timing differences of earlier
years.
Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet
date. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can be realised. Deferred tax assets are recognised on
carry forward of unabsorbed depreciation and tax losses only if there is virtual certainty supported by convincing
evidence that such deferred tax assets can be realised against future taxable profits.
At each balance sheet date the Company re-assesses unrecognised deferred tax assets. It recognises deferred tax assets
to the extent that it has become reasonably certain or virtually certain, as the case may be that sufficient future taxable
income will be available against which such deferred tax assets can be realised.
The carrying amount of deferred tax assets are reviewed at each balance sheet date. The Company writes-down the
carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case
may be, that sufficient future taxable income will be available against which deferred tax asset can be realised. Any such
write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that
sufficient future taxable income will be available.
Basic and diluted earnings per share are reported in accordance with AS 20, “Earnings Per Share”. Basic earnings per equity
share has been computed by dividing net profit after tax by weighted average number of equity shares outstanding for
the year. Diluted earnings per equity share have been computed using the weighted average number of equity shares and
dilutive potential equity shares outstanding during the year.
A provision is recognised when an enterprise has a present obligation as a result of a past event and it is probable that an
outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.
Provisions are not discounted to the present value and are determined based on the best estimate required to settle the
obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current
best estimates.
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will
be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the
control of the company or when there is a present obligation that arises from past events where it is either not probable
that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.
Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term, are
classified as operating leases. Operating lease payments are recognised as an expense in the profit and loss account on a
straight line basis over the lease term.
k) Income taxes
l) Earnings per share
m) Provisions and Contingent Liabilities
n) Operating Lease
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Notes To Financial StatementsFor The Year Ended 31st March 2014 (contd.)
o) Segment information – basis of preparation
p) Cash and cash equivalents
The Company’s primary segments are businesses, which are organised around the following service lines:
• Fee-based segment provides merchant banking and advisory services like issue management, underwriting
arrangement, project advisory and structured finance.
• Fund-based segment undertakes deployment of funds in leasing / hire purchase and dealing in various securities.
• ‘Other’ segment includes fee income and other corporate income and expenses, which are either not allocable to any
specific business segment or not material enough to warrant a separate disclosure as a reportable segment.
• The risk and returns of the business of the Company are neither associated with geographical segmentation nor are
the clients of the Company grouped geographically. Hence there is no secondary segment reporting based on
geographical segment. Common costs identifiable with each segment have been allocated, based on the relative
utilisation of such benefits by each segment, out of the total costs.
Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term investments with an
original maturity of three months or less.
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Notes To Financial StatementsFor The Year Ended 31st March 2014 (contd.)
NOTE - 2.1
SHARE CAPITAL
NOTE - 2.2
RESERVES AND SURPLUS
Securities premium account
Authorised
100,000,000 (2013: 100,000,000)
Equity shares of Rs.10/- each 10,000 10,000
1,000,000 (2013: 1,000,000)
Redeemable preference shares of Rs. 100/- each 1,000 1,000
11,000 11,000
Issued, subscribed and paid up
58,033,711 (2013: 58,033,711)
Equity shares of Rs.10/- each fully paid up 5,803 5,803
The Company is a wholly owned subsidiary of State Bank of India ('SBI') and along with its nominees and shareholders are
eligible for one vote per share held.
There has been no movement in the number of shares outstanding at the beginning of the period and at the end of
period, consequently the reconciliation of the number of the shares outstanding at the beginning and at the end of the
reporting period is not applicable.
6,347 6,347
General reserve
Balance as per the last financial statements 30,947 27,987
Add : amount transferred from surplus balance in the
statement of profit and loss 2,653 2,960
Closing balance 33,600 30,947
Surplus/(deficit) in the statement of profit and loss
Balance as per the last financial statements 46,086 36,983
Profit for the year 26,528 29,600
Less : Appropriations
Interim dividend 15,089 15,089
Dividend distribution tax 2,564 2,448
Transfer to general reserve 2,653 2,960
Total appropriations 20,306 20,497
Net surplus in the statement of profit and loss 52,308 46,086
TOTAL RESERVES AND SURPLUS 92,255 83,379
As at
31-Mar-13
As at
31-Mar-14
2. OTHER NOTES
(Rupees in lacs unless otherwise stated)
As at
31-Mar-13
As at
31-Mar-14
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Notes To Financial StatementsFor The Year Ended 31st March 2014 (contd.)
NOTE - 2.3
Other Long Term Liabilities
NOTE - 2.4
PROVISIONS
NOTE - 2.5
Trade Payables
NOTE - 2.6
Other Current Liabilities
Trade payables other than dues to Micro, Medium and
Small Enterprises 32 11
Lease Deposits 248 248
Other Deposits 3 -
283 259
Provision for employee benefits
Provision for gratuity 192 282 - -
Provision for compensated absences 740 631 90 75
Other provisions
Provision for dividend distribution tax - - 2,564 2,448
932 913 2,654 2,523
Other trade payables 2,042 1,853
2,042 1,853
Bonus payable 2,818 2,030
Advance received from customers 20 36
TDS payable 216 85
Professional tax payable 1 1
3,055 2,152
As at
31-Mar-13
As at
31-Mar-14
(Rupees in lacs unless otherwise stated)
As at
31-Mar-13
As at
31-Mar-14
Long-term Short-term
As at
31-Mar-14
As at
31-Mar-14
As at
31-Mar-13
As at
31-Mar-13
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Notes To Financial StatementsFor The Year Ended 31st March 2014 (contd.)
Bala
nce
As
at
1st
Ap
ril 12
1,6
00
653
544
290
39
55
4,0
20
156
7,3
57
Ad
dit
ion
s -
84
41
23
19
-
-
49
216
Ded
uct
ion
s/Tr
an
sfers
-
65
16
23
23
-
-
-
1
28
Bala
nce
As
at
31st
Mar
13
1,6
00
672
569
290
35
55
4,0
20
205
7,4
45
Bala
nce
As
at
1st
Ap
ril 12
1,1
02
450
378
143
26
11
4,0
20
92
6,2
22
Ad
dit
ion
s 2
5
112
52
34
4
15
-
3
9
280
Ded
uct
ion
s/Tr
an
sfers
-
49
13
15
14
-
-
-
9
1
Bala
nce
As
at
31st
Mar
13
1,1
27
513
417
162
16
26
4,0
20
131
6,4
11
As
at
31
st M
ar
13
473
159
152
128
19
29
-
7
4
1,0
34
Bala
nce
As
at
1st
Ap
ril 13
1,6
00
672
569
290
35
55
4,0
20
205
7,4
45
Ad
dit
ion
s -
90
17
182
50
48
388
Ded
uct
ion
s/Tr
an
sfers
-
63
14
50
35
-
-
-
1
62
Bala
nce
As
at
31st
Marc
h 1
4
1,6
00
699
572
422
50
55
4,0
20
253
7,6
72
-
Bala
nce
As
at
1st
Ap
ril 13
1,1
27
513
417
162
16
26
4,0
20
131
6,4
11
Ad
dit
ion
s
24
108
27
43
7
15
58
282
Ded
uct
ion
s/Tr
an
sfers
5
3
11
32
18
-
1
14
Bala
nce
As
at
31st
Marc
h 1
4
1,1
51
568
433
173
5
41
4,0
20
189
6,5
79
-
As
at
31
st M
arc
h 1
4 4
49
131
140
249
45
14
-
6
4
1,0
92
TA
NG
IBLE A
SS
ET
S
IN
TAN
GIB
LE
AS
SET
S
Bu
ildin
g
(R
efe
r N
ote
I)
Co
mp
ute
rs
Furn
itu
re &
Fixt
ure
s
Off
ice
Equ
ipm
en
ts
Veh
icle
s L
eas
eh
old
Imp
rove
men
t
Pla
nt,
Mac
hin
ery
&
Equ
ipm
en
tsSo
ftw
are
To
tal
GR
OS
S B
LOC
K
AC
CU
MU
LA
TED
DEP
REC
IAT
ION
/
AM
OR
TIS
AT
ION
NET
BLO
CK
GR
OS
S B
LOC
K
AC
CU
MU
LA
TED
DEP
REC
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ION
/
AM
OR
TIS
AT
ION
NET
BLO
CK
NO
TE -
2.7
No
te :
I. B
uild
ing
in
clu
des
cost
of
15 s
hare
s o
f R
s.100/-
each
held
by
the C
om
pan
y in
a c
o-o
pera
tive
ho
usi
ng
so
ciety
.
(Rupees in lacs unless otherwise stated)
FIX
ED
AS
SET
S
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Notes To Financial StatementsFor The Year Ended 31st March 2014 (contd.)
NOTE – 2.8
NON-CURRENT INVESTMENTS
Investment Property
Other investments
Investment in Equity Instruments (quoted)
Bonds (quoted)
(Long term, non trade, at cost unless otherwise stated)
Investment in Immovable Property 7,415 -
(Refer Note No. 2.32)
7,415 -
(Long term, non trade, at cost unless otherwise stated)
2,40,000 (2013: 2,40,000) shares of Re.1/- each 173 173
fully paid in Indian Hotels Ltd
(At cost less provision other than temporary diminution in
value Rs. 139 (2013: Rs. 139))
1,12,500 (2013:1,12,500) shares of Rs. 10/- each 345 345
fully paid in Hindustan Petroleum Corp. Ltd.
(At cost less provision other than temporary diminution in
value Rs. 70 (2013: Rs.70))
Nil (2013: 2,00,000) shares of Rs.10/- each - 265
fully paid in Gateway Distriparks Ltd.
(At cost less provision other than temporary diminution in
value Rs. Nil(2013: Rs.29))
Sub-total 518 783
Nil (2013 :5,000) 6.85% tax free bonds of India Infrastructure Finance - 5,000
Company Ltd of Rs. 1,00,000/- each fully paid
54,876 ( 2013 : 54,876) 8.20% bonds of National Highway Authority 549 549
of India Ltd (Tax free) of Rs. 1,000/- each fully paid
71,197( 2013 : 71,197) bonds of 8.20% Power Finance Corporation 712 712
Ltd (Tax free) of Rs. 1,000/- each fully paid
3,04,510 (2013 : 3,04,510) 8.10% bonds of India Railways Finance 3,045 3,045
Corporation Ltd (Tax free) of Rs. 1,000/- each fully paid
1,00,000 ( 2013 : 1,00,000) bonds of 7.38% Rural Electrification Corporation Ltd 1,000 1,000
(Tax free) of Rs. 1,000/- each fully paid
1,00,000 ( 2013 : 1,00,000) bonds of 7.34 % Indian Railways Finance 1,000 1,000
Corporation Ltd (Tax free) of Rs. 1,000/- each fully paid
As at
31-Mar-13
As at
31-Mar-14
(Rupees in lacs unless otherwise stated)
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Notes To Financial StatementsFor The Year Ended 31st March 2014 (contd.)
1,00,000 (2013 : Nil ) bonds of 8.63% Rural Electrification Corporation Ltd 1,000 -
(Tax free) of Rs. 1000/- each fully paid
1,00,000 (2013 : Nil ) bonds of 8.55% India Infrastructure Finance 1,000 -
Company Ltd (Tax free) of Rs. 1000/- each fully paid
Sub-total 8,306 11,306
Total quoted investments 8,824 12,089
19,50,000 (2013: 19,50,000) shares of Rs.10/- each 341 341
fully paid in National Stock Exchange of India Ltd
10,32,500 (2013: 10,32,500) shares of Rs.10/- each *- *-
fully paid in SBI Home Finance Ltd
(At cost less provision other than temporary diminution in
value Rs. 103 (2013: Rs.103))
11,00,000 (2013: 11,00,000) shares of Rs.10/- each - 110
fully paid in OTC Exchange of India
(At cost less provision other than temporary diminution in
value Rs. 110 (2013: Nil))
5,35,768 (2013: 5,35,768) shares of Rs.10/- each - 54
fully paid in Investor Services of India Ltd
(Refer Note No.2.33)
10,00,000 (2013: 10,00,000) shares of Rs.39.63/- each - 396
fully paid in ONGC Mittal Energy Ltd
(At cost less provision other than temporary diminution in
value Rs. 396 (2013: Nil))
Sub-total 341 901
6,81,818 (2013: 6,81,818) shares of FV Rs. 100/- each 750 750
fully paid in SBI DFHI Ltd (formerly SBI Gilts Ltd)
(Percentage holding in the Company is 3.12% (2013 : 3.12%)
60,00,000 (2013: 60,00,000) shares of Rs. 10/- each 601 601
fully paid in SBI Pension Funds Pvt. Ltd
(Percentage holding in the Company is 20% (2013 : 20%))
Sub-total 1,351 1,351
Investment in Equity Instruments (un-quoted)
Investment in Equity Instruments - Associates (un-quoted)
As at
31-Mar-13
As at
31-Mar-14
(Rupees in lacs unless otherwise stated)
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Notes To Financial StatementsFor The Year Ended 31st March 2014 (contd.)
Investment in Equity Instruments - wholly owned subsidiaries (un-quoted)
Investment in Mutual Funds (un-quoted)
Total un-quoted investments
Aggregate of quoted investments:
Aggregate of un-quoted investments:
8,12,50,000 (2013: 6,56,25,000) shares of Rs. 10/- each 10,000 7,500
fully paid in SBICAP Securities Ltd
2,00,000 (2013: 2,00,000) shares of GBP 1 (Rs.85.93) each 172 172
fully paid in SBICAP UK Ltd
10,00,000 (2013: 10,00,000) shares of Rs. 10/- each 5 5
fully paid in SBICAP Trustee Co. Ltd
41,62,000 (2013: 41,62,000) shares of Rs. 10/- each 416 416
fully paid in SBICAP Ventures Ltd
50,00,000 (2013: 20,00,000) shares of SGD 1 (Rs. 47.11 (2013 : Rs. 43.45) 2,355 869
each fully paid in SBICAP Singapore Ltd
Sub-total 12,948 8,962
Nil (2013: 28,28,854) units of Rs. 10/- each - 695
fully paid SBI Magnum Balanced Fund Dividend Payout
(At cost less provision other than temporary diminution in
value Rs. Nil (2013: Rs.305))
35,39,410 (2013: 35,39,410) units of Rs. 10/- each 642 642
fully paid FT India Balance Fund Dividend Payout
(At cost less provision other than temporary diminution in
value Rs. 358 (2013:Rs.358))
1,00,00,000 (2013: 1,00,00,000) units of Rs. 10/- each 816 881
fully paid SBI PSU Fund Growth
(At cost less provision other than temporary diminution in
value Rs. 184 (2013: 119))
Sub-total 1,458 2,218
16,098 13,432
Total investments 32,337 25,521
(i) Cost 9,033 12,328
(ii) Market Value 8,937 12,426
(iii) Book Value 8,824 12,089
(i) Cost 17,250 14,317
(ii) Book Value 16,098 13,432
Aggegrate of provision for diminution in value of investments 1,361 1,123
* Fully provided for.
As at
31-Mar-13
As at
31-Mar-14
(Rupees in lacs unless otherwise stated)
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Notes To Financial StatementsFor The Year Ended 31st March 2014 (contd.)
LOANS AND ADVANCES
Security Deposits
Loans and advances to related parties - - 38 16
Advances recoverable in cash or in kind or for value
to be received
Other loans and advances
(Unsecured and considered good unless otherwise stated)
415 562 36 17
Considered good 130 130 20 15
Considered doubtful - - - -
130 130 20 15
Less: Provision for doubtful advances - - - -
130 130 20 15
Advance tax and tax deducted at source [net of provision
for income-tax Rs 95,465 (2013: Rs.84,865)] 5,770 4,977 - -
Advance tax FBT [net of provision for FBT Rs 184 (2013: Rs.184)] - - - -
Advance interest tax [net of provision for interest tax Rs 139 152 152 - -
(2013: Rs 139)]
Prepaid expenses 3 3 88 86
Loans to employees 1 1 71 24
Advance for expenses - - 1 -
Balances with statutory/government authorities 36 36 124 180
Total 6,507 5,861 378 338
As at
31-Mar-14
As at
31-Mar-14
NOTE - 2.9
(Rupees in lacs unless otherwise stated)
As at
31-Mar-13
As at
31-Mar-13
Non-current Current
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Notes To Financial Statements For The Year Ended 31st March 2014 (contd.)
(Rupees in lacs unless otherwise stated)
NOTE - 2.10
Trade Receivables
NOTE - 2.11
Other Assets
Others
Unsecured, considered good unless stated otherwise
Debts outstanding for a period exceeding
six months from the date they
are due for payment 19 19 2,994 8,550
Other debts - - 19,908 16,783
19 19 22,902 25,333
Considered doubtful
Debts outstanding for a period exceeding
six months from the date they
are due for payment 121 121 4,606 541
Other debts - - - -
121 121 4,606 541
Less: Provision for doubtful debts 121 121 4,606 541
Total 19 19 22,902 25,333
Unsecured, considered good unless stated otherwise
Interest accrued on fixed deposits - - 152 626
Interest accrued on investments - - 224 257
Interest accrued - Downselling - - 886 291
- - 1,262 1,174
As at
31-Mar-14
As at
31-Mar-13
As at
31-Mar-14
As at
31-Mar-13
Non-current Current
Non-current Current
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Notes To Financial StatementsFor The Year Ended 31st March 2014 (contd.)
STOCK-IN-TRADE
Stock-in-trade for Downselling (quoted)
Nil (2013:400) 8.87% Power Finance Corporation Ltd series FV Rs. 10,00,000/- each - 4,000
(At cost less provision for temporary diminution in value Rs. Nil (2013: Nil))
250 (2013:250) 10.38% Jindal Saw Ltd. 9 yrs series-1 Debentures of FV Rs. 10,00,000/- each 2,500 2,500
(At cost less provision for temporary diminution in value Rs. Nil (2013: Nil))
250 (2013:250) 10.38% Jindal Saw Ltd. 9 yrs series-2 Debentures of FV Rs. 10,00,000/- each 2,500 2,500
(At cost less provision for temporary diminution in value Rs. Nil (2013: Nil))
Nil (2012:30) 8.90% Power Finance Corporation Bonds FV Rs. 10,00,000/- each - 300
(At cost less provision for temporary diminution in value Rs. Nil (2013: Nil))
Nil (2013:30) 8.90% Power Finance Corporation Bonds FV Rs. 10,00,000/- each - 300
(At cost less provision for temporary diminution in value Rs. Nil (2013: Nil))
Nil (2013:30) 8.90% Power Finance Corporation Bonds FV Rs. 10,00,000/- each - 300
(At cost less provision for temporary diminution in value Rs. Nil (2013: Nil))
Nil (2013:10) 8.80% Food Corporation of India Bonds FV Rs. 10,00,000/- each - 100
(At cost less provision for temporary diminution in value Rs. Nil (2013: Nil))
Nil (2013:350) 9.70% Deepak Ferlilizers & Petrochemicals Corp Bonds FV Rs. 10,00,000/- each - 3,500
(At cost less provision for temporary diminution in value Rs. Nil (2013: Nil))
Nil (2013:50) 9.71% Deepak Ferlilizers & Petrochemicals Corp Bonds FV Rs. 10,00,000/- each - 500
(At cost less provision for temporary diminution in value Rs. Nil (2013: Nil))
Nil (2013:550) 8.85% Chennai Petrochemicals Corp Bonds FV Rs. 10,00,000/- each - 5,500
(At cost less provision for temporary diminution in value Rs. Nil (2013: Nil))
1000 (2013:Nil) 9.5% Business Broadcast News Pvt Ltd Bonds FV Rs. 10,00,000/- each 9,988 -
(At cost less provision for temporary diminution in value Rs. 12 (2013: Nil))
Nil (2013:3) 7.41% India Infrastructure Finance Corp. Ltd series IV-C 20 year - 30
Taxfree Bonds FV Rs. 10 ,00,000 each
(At cost less provision for temporary diminution in value Rs. Nil (2013: Nil))
Sub Total 14,988 19,530
Total quoted stock-in-trade 14,988 19,530
As at
31-Mar-13
As at
31-Mar-14
NOTE - 2.12
(Rupees in lacs unless otherwise stated)
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Notes To Financial StatementsFor The Year Ended 31st March 2014 (contd.)
Investment in Equity Instruments (un-quoted)
15,400 (2013: 15,400) shares of Rs.10/- each fully *- *-
paid in Cremica Agro Foods Ltd
(At cost less provision for Rs. 3 (2013: 3))
Sub-total - -
Preference Shares (un-quoted)
1,40,000 (2013: 1,40,000) 0.0001% shares of Rs.10/- each fully *- *-
paid in Pasupati Fabrics Ltd
(At cost less provision Rs. 14 (2013: 14))
Sub Total - -
Mutual Funds (un-quoted)
2,62,290 (2013: Nil) Units of Reliance Liquidity Fund Daily Dividend Reinvestment 2,624
2,68,067 (2013: Nil) Units of Religare Invesco Liquid Fund Daily Dividend Reinvestment 2,684
2,89,654 (2013: Nil) Units of SBI Premier Liquid Fund Daily Dividend Reinvestment 2,906
2,00,00,000 (2013:Nil ) Units of SBI Debt Fund Series A -14 380 days - Direct- Growth 2,000 -
87,39,137 (2013:Nil ) Units of SBI Magnum Fund long Term Plan 1,001
(At cost less provision for temporary diminution in value Rs.10 (2013: Nil))
2,04,04,024 (2013: Nil) Units of HDFC Cash Management Savings Plan 2,170
2,50,00,000 (2013: Nil) Units of HDFC FMP 372 D 14 Feb 2014 Series 29 Regular Growth 2,500
Sub-total 15,885 -
Total unquoted stock-in-trade 15,885 -
Total stock-in-trade 30,873 19,530
Aggregate of quoted stock-in-trade:
(i) Cost 15,000 19,530
(ii) Market/realisable value 15,030 19,666
(iii) Book Value 14,988 19,530
Aggregate of unquoted stock-in-trade:
(i) Cost 15,912 17
(ii) Book Value 15,885 -
Aggegrate provision for diminution in value of investments 38 17
* Fully provided for.
As at
31-Mar-13
As at
31-Mar-14
NOTE - 2.12
(Rupees in lacs unless otherwise stated)
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055
Notes To Financial Statements For The Year Ended 31st March 2014 (contd.)
NOTE - 2.13
CASH AND BANK BALANCES
Cash and Cash equivalents
On Current Accounts - - 1,603 414
Deposits with original maturity of less than three months - - - 3,750
Cheques / drafts on hand - - 131 34
Cash on hand - -
Other Bank balances
Deposits with original maturity of more than twelve months - - - 11,561
Deposits with original maturity of more
than three months but less than 12 months - - 7,130 1,014
Margin money deposit - - 34 1
- - 8,898 16,774
Note :
Deposit accounts amounting to Rs. 34 (2013: Rs. 1) are with scheduled banks towards the cash margin for various guarantees
issued by banks on behalf of the Company.
As at
31-Mar-14
As at
31-Mar-13
(Rupees in lacs unless otherwise stated)
As at
31-Mar-14
As at
31-Mar-13
Non-current Current
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Notes To Financial Statements For The Year Ended 31st March 2014 (contd.)
NOTE - 2.14
REVENUE FROM OPERATIONS
NOTE - 2.15
OTHER INCOME
NOTE - 2.16
EMPLOYEE BENEFIT EXPENSES
Merchant Banking and Advisory Fees
Issue management 954 1,298
Underwriting commission 238 -
Arranger's fees 1,413 670
Advisory fees 50,595 47,156
Sub-total 53,200 49,124
Other Operations (Income from Securities)
Interest Income 2,626 1,636
Profit/(loss) on sale of investments (net) 39 (84)
Trading profits/(loss) on stock-in-trade (net) (309) 96
Dividend 2,306 2,034
Sub-total 4,662 3,682
57,862 52,806
Profit on sale of fixed assets (net) - 1
Rental income 51 305
Bad debts recovered 5 15
Foreign exchange fluctuation (net) - -
Unrealised Foreign Fluctuation 98 -
Interest on deposit with Banks 843 1,772
Others 53 25
Write-back of provision on:
Contribution to Gratuity 90 -
Doubtful debts 460 53
1,600 2,171
Salaries, wages and bonus 8,154 6,671
Contribution to provident and pension funds 265 258
Contribution to Gratuity 79 117
Contribution to Superannuation 303 198
Compensated Absences 124 174
Staff welfare 188 168
9,113 7,586
(Rupees in lacs unless otherwise stated)
For The Year Ended
31-Mar-14
For The Year Ended
31-Mar-13
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Notes To Financial Statements For The Year Ended 31st March 2014 (contd.)
(Rupees in lacs unless otherwise stated)
NOTE - 2.17
INTEREST EXPENSE
NOTE - 2.18
OTHER EXPENSES
NOTE - 2.19
PROVISIONS (Expense)
Bank and others - 1
- 1
Legal and professional fees 370 253
Conveyance and travelling 940 889
Rent 816 909
Rates and taxes 65 18
Royalty 531 591
Bad debts written off 1,417 203
Postage, telephone and telex 162 178
Advertisement 98 159
Printing and stationery 86 89
Electricity 140 138
Repairs and maintenance:
Building 71 69
Others 130 106
Insurance 115 69
Directors' sitting fees 6 6
Foreign exchange fluctuation (net) 39 13
Loss on sale of fixed assets (net) 3 -
Tax on perquisities - 37
Office Maintenance 73 72
Training Charges 185 189
Membership and Subscription 312 208
Filing Fees and other Charges (Issues) 285 44
Miscellaneous expenses 236 300
6,080 4,540
Provision for:
Diminution in value of investments 571 273
Fall in value of stock-in-trade 22 -
Doubtful debts 4,524 458
5,117 731
For The Year Ended
31-Mar-14
For The Year Ended
31-Mar-13
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Notes To Financial Statements For The Year Ended 31st March 2014 (contd.)
(Rupees in lacs unless otherwise stated)
NOTE - 2.20
NOTE - 2.21
Deferred taxes
Deferred tax assets
Deferred tax assets
Deferred tax credit / (expense) for the year
NOTE - 2.22
CONTINGENT LIABILITIES AND COMMITMENTS
NOTE - 2.23
Earnings per equity share (EPS)
I Basic and diluted EPS (Rs.) 45.71 51.00
II Nominal value per share (Rs.) 10 10
EPS has been calculated based on the net profit after taxation of Rs. 26,528 (2013: Rs. 29,600) and the weighted average
number of equity shares outstanding during the year of 5,803 (2013: 5,803).
Basic and diluted EPS has been computed by dividing net profit after tax by weighted average number of equity shares
outstanding during the year. There are no dilutive potential equity shares outstanding during the year.
Tax Assets/(Liabilities) due to temporary timing difference in respect of:
Depreciation on fixed assets 88 81
Provision on Gratuity 65 91
Provision on compensated leave 282 229
Provision for doubtful debts 1,607 215
Carry forward of Losses 714 682
2,756 1,298
Less : Opening Deferred Tax Asset 1,298 437
1,458 861
(I) Claims against the Company not acknowledged as debts 435 443
(ii) Guarantees issued 34 1
(iii) Capital Commitments 25 -
(iv) Underwriting Commitments 42,500 -
Based on the legal advice and favourable legal decisions by various authorities, no provision has been made in respect of
income tax demands aggregating to Rs.7,130 (2013: Rs.7,210) in excess of provision held. These demands have been
contested by the Company at various appellate authorities.
As at
31-Mar-14
As at
31-Mar-13
For The Year Ended
31-Mar-14
For The Year Ended
31-Mar-13
As at
31-Mar-14
As at
31-Mar-14
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Notes To Financial Statements For The Year Ended 31st March 2014 (contd.)
NOTE - 2.24
SUPPLEMENTARY PROFIT AND LOSS DATA
NOTE - 2.25
RELATED PARTIES
Name of the Party
Name of the Party
(a) Managerial remuneration
(i) The Managing Director & Chief Executive Officer is on secondment from SBI and their remuneration,
which is in accordance with the service rules of SBI, has been charged in the books of accounts.
(ii) Remuneration to Managing Director & CEO
Salary and bonus 38 24
Contribution to provident and pension funds 5 1
Perquisites - 12
43 37
As the future liability for Gratuity and Compensated leave absences is provided on actuarial basis for the Company as a
whole, the amount pertaining to the directors is not ascertainable and therefore not included above.
There is no commission payable to any director of the Company. Consequently, the computation of profits as required
under Section 349 of the Companies Act, 1956 has not been included.
(b) Payments to auditors (excluding service tax) (included in Legal and professional fees)
As auditors 12 12
For tax audit 1 1
For other matters 5 5
For out-of-pocket expenses 1 1
19 19
(c) Expenditure in foreign currency
Travel and other expenses 460 362
(d) Earnings in foreign currency
Advisory fees from overseas clients and reimbursement
of expenses 5,297 1,957
The following is the list of parties related due to control criteria as per
AS-18, Related Party Disclosure:
Relationship
State Bank of India Holding Company
The following is the list of parties related due to significant influence criteria as per AS-18 with whom the transactions
have taken place during the year:
Relationship
State Bank of Bikaner & Jaipur Fellow Subsidiary
State Bank of Hyderabad Fellow Subsidiary
State Bank of Mysore Fellow Subsidiary
State Bank of Patiala Fellow Subsidiary
State Bank of Travancore Fellow Subsidiary
SBI DFHI Limited Fellow Subsidiary
SBI Funds Management Pvt. Limited Fellow Subsidiary
SBI Life Insurance Company Limited Fellow Subsidiary
SBI Global Factors Ltd. Fellow Subsidiary
SBI Pension Funds Pvt. Ltd Fellow Subsidiary
SBI General Insurance Co Ltd Fellow Subsidiary
SBICAP Securities Limited Subsidiary
SBICAP Ventures Limited Subsidiary
SBICAP Trustee Company Limited Subsidiary
SBICAP (UK) Limited Subsidiary
SBICAP Singapore Ltd Subsidiary
Smt. Arundhati Bhattacharya, Managing Director & Chief Executive
Officer upto 02 August 2013 Key Management Personnel
Shri V.G.Kannan, Managing Director
& Chief Executive Officer from 08 October 2013 Key Management Personnel
(Rupees in lacs unless otherwise stated)
For The Year Ended
31-Mar-14
For The Year Ended
31-Mar-13
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Details of Transactions with the above related parties are as under :
Particulars Holding Company Subsidiaries Fellow Subsidiaries
Mar 14 Mar 13 Mar 14 Mar 13 Mar 14 Mar 13
Deputation of Employees* 250 268 - - - -
State Bank of Hyderabad - - - - - 6
Interest Expenses - 1 - - - -
Rent 54 45 - - - -
Bank & Other Charges 3 3 - - - -
SBI DFHI Limited - - - - - -
SBICAP Securities Ltd. - - - - - -
Legal & Professional Charges - - - - - -
SBICAP Securities Ltd. - - 12 35 - -
Royalty Expense 531 590 - - - -
Insurance Mediclaim - - - - - -
SBI Life Insurance Company Limited - - - - 25 10
SBI General Insurance Co Ltd - - - - 2 -
Office Maintenance 1 1 - - - -
Filing Fees & Other Charges - - - - - -
SBICAP Securities Ltd. - - - 8 - -
Issue Management Fees 267 10 - -
SBICAP Securities Ltd. - - 8 -
State Bank of Hyderabad - - - - - 8
State Bank of Mysore - - - - 20 -
SBI Funds Management Pvt. Ltd. - - - 15
Private Placement Fees 100 1 - - - -
SBICAP Securities Ltd. - - 2 98 - -
Arranger's Fees - - - - - -
SBICAP Securities Ltd. - - 11 - - -
Advisory Fees 149 893 - -
SBI Global Factors Ltd - - - - - 10
State Bank of Patiala - - - - 11 8
State Bank of Hyderabad - - - - 2 -
Bank Interest 556 618 - - - -
State Bank of Bikaner & Jaipur - - - - 54 195
State Bank of Patiala - - - - 116 134
State Bank of Travancore - - - - 1 332
Rent - - - - - -
SBI Funds Management Pvt. Ltd. - - - - 51 305
Dividend - - - - -
SBI DFHI Limited - - - - 123 65
SBICAP Trustee Company Ltd. - - 13 10 - -
Expenses during the year ended
Income during the year ended
(Rupees in lacs unless otherwise stated)
Notes To Financial Statements For The Year Ended 31st March 2014 (contd.)
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Notes To Financial Statements For The Year Ended 31st March 2014 (contd.)
Details of Transactions with the above related parties are as under :
Particulars Holding Company Subsidiaries Fellow Subsidiaries
Mar 14 Mar 13 Mar 14 Mar 13 Mar 14 Mar 13
Debtors 454 28 - - -
State Bank of Patiala - - - - 9 -
State Bank of Hyderabad - - - - - 9
SBICAP Securities Ltd. - - 6 119 - -
Cash at Bank 1,734 448 - -
Deposit with Bank 5,994 10,163 - - - -
State Bank of Bikaner & Jaipur - - - - - 2,277
State Bank of Patiala - - - - 1,170 1,089
State Bank of Travancore - - - - - 297
Loans & Advances 8 11 - - -
SBICAP Securities Ltd. - - 3 1 -
SBICAP Trustee Company Ltd. - - 1 - -
SBICAP Ventures Ltd - - 25 - - -
SBICAP Singapore Ltd - - - 4 -
Other Current Assets 126 184 - - - -
State Bank of Patiala - - - - 26 76
State Bank of Travancore - - - - - 38
State Bank of Bikaner & Jaipur - - - - - 152
Investments - - -
SBI Pension Funds Pvt. Ltd - - 601 601
SBI DFHI Limited - - 750 750
SBICAP Securities Ltd. - 10,000 7,500 -
SBICAP Ventures Ltd - 416 416 -
SBICAP Trustee Company Ltd. - 5 5 -
SBICAP UK Ltd - 172 172 -
SBICAP Singapore Ltd - 2,355 869 -
Creditors 548 598 - - - -
SBICAP Securities Ltd. - - 710 546 - -
SBICAP UK Ltd - - - 1 - -
Dividend paid 15,089 15,089 - - - -
Fees Shared (netted from Income) - - - - - -
SBICAP Securities Ltd. - - 10 884 - -
SBI DFHI Limited - - - - - -
Expenses shared
SBICAP Securities Ltd. - - 4 2 - -
Guarantees 34 1 - - - -
I. Included in expenses relating to deputation of employees are amounts aggregating to Rs. 43 (2013: Rs. 37) pertaining
to salaries paid to key management personnel.
Balance receivable as at
Balance payable as at
Others transactions during
the year ended
(Rupees in lacs unless otherwise stated)
II. * - Fully provided for
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Notes To Financial Statements For The Year Ended 31st March 2014 (contd.)
Ext
ern
al s
ale
s 5
,50
3
5,4
52
53,7
63
49,1
93
197
332
59,4
62
54,9
77
Inte
r-se
gm
ent sa
les
-
-
-
-
-
-
-
-
To
tal re
ven
ue
5,5
03
5,4
52
53,7
63
49,1
93
197
332
59,4
62
54,9
77
Segm
ent re
sult
4,8
86
5,1
61
40,6
31
42,1
25
197
332
45,7
13
47,6
18
Unallo
cate
d r
eve
nue
-
-
-
-
-
-
-
-
Unallo
cate
d c
orp
ora
te e
xpense
s -
-
-
-
-
-
6,8
43
5,7
79
Opera
ting p
rofit
-
-
-
-
-
-
38,8
71
41,8
39
Inte
rest
exp
ense
-
-
-
-
-
-
-
1
Inco
me tax
-
-
-
-
-
-
12,3
42
12,2
39
Pro
fit fro
m o
rdin
ary
act
iviti
es
-
-
-
-
-
-
26,5
29
29,6
00
Ext
raord
inary
item
, net
-
-
-
-
-
-
-
-
Net pro
fit -
-
-
-
-
-
26,5
29
29,6
00
Segm
ent ass
ets
64,2
47
58,8
27
23,0
58
25,5
63
-
-
87,3
06
84,3
90
Unallo
cate
d c
orp
ora
te a
ssets
-
-
-
-
-
-
19,7
18
12,4
92
Tota
l ass
ets
-
-
-
-
-
-
107,0
24
96,8
82
Segm
ent lia
bili
ties
15
8
3,2
47
582
-
-
3,2
61
589
Unallo
cate
d c
orp
ora
te li
abili
ties
-
-
-
-
-
-
5,7
05
7,1
10
Tota
l lia
bili
ties
-
-
-
-
-
-
8,9
66
7,6
99
Capita
l exp
enditu
res
-
-
-
-
-
-
388
216
Depre
ciatio
n
-
-
-
-
-
-
282
280
Identif
icatio
n o
f direct
cost
to e
ach
segm
ent, a
lloca
tion o
f co
mm
on c
ost
and u
nallo
cable
cost
are
base
d o
n m
anagem
ent's
judgm
ent.
RE
VE
NU
E
RE
SU
LT
As a
t
For
the y
ear
endin
g31st
Marc
h-2
014
31st
Marc
h-2
013
31st
Marc
h-2
014
31st
Marc
h-2
013
31st
Marc
h-2
014
31st
Marc
h-2
013
31st
Marc
h-2
014
31st
Marc
h-2
013
SEG
MEN
TAL
REP
OR
TIN
GFu
nd
Base
d S
eg
men
tFe
e B
ase
d S
eg
men
tC
orp
ora
te &
Oth
ers
Co
nso
lidate
d
31st
Marc
h-2
014
31st
Marc
h-2
013
31st
Marc
h-2
014
31st
Marc
h-2
013
31st
Marc
h-2
014
31st
Marc
h-2
013
31st
Marc
h-2
014
31st
Marc
h-2
013
Fun
d B
ase
d S
eg
men
tFe
e B
ase
d S
eg
men
tC
orp
ora
te &
Oth
ers
Co
nso
lidate
d
NO
TE -
2.2
6
(Ru
pees
in lacs
un
less
oth
erw
ise s
tate
d)
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063
(Rupees in lacs unless otherwise stated)
NOTE - 2.27
Gratuity and other post-employment benefit plans: (AS 15 120 (b))
Profit and Loss account
Net employee benefit expense (recognised in Employee Cost)
Balance sheet
Details of Provision for gratuity
Changes in the present value of the defined benefit obligation are as follows:
Closing defined benefit obligation 593 593
The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a
gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an
insurance company in the form of a qualifying insurance policy.
The following tables summarise the components of net benefit expense recognised in the profit and loss account and the
funded status and amounts recognised in the balance sheet for the respective plans.
[AS15 Revised (c) (i) to (x)]
Gratuity
2014 2013
Current service cost 76 77
Interest cost on benefit obligation 53 45
Expected return on plan assets (24) (21)
Net actuarial (gain) / loss recognised in the year (117) 15
Past service cost - -
Net benefit expense (13) 117
Actual return on plan assets 32 23
Gratuity
2014 2013
Defined benefit obligation 593 593
Fair value of plan assets (402) (312)
Less: Unrecognised past service cost - -
Plan asset / (liability) (191) (281)
[AS15 Revised 120(e) (i) to (viii)]
Gratuity
2014 2013
Opening defined benefit obligation 593 464
Interest cost 53 45
Current service cost 76 77
Benefits paid (20) (11)
Actuarial (gains) / losses on obligation (109) 18
Past Service Cost - -
Notes To Financial Statements For The Year Ended 31st March 2014 (contd.)
SB
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064
(Rupees in lacs unless otherwise stated)
Changes in the fair value of plan assets are as follows:
Closing fair value of plan assets 402 312
The major categories of plan assets as a percentage of the fair value of total plan assets are as follows:
The principal assumptions used in determining gratuity for the Company's plans are shown below:
Amounts for the current and previous period are as follows: [AS15 Revised 120(n)]
Gratuity
2014 2013
Opening fair value of plan assets 312 260
Expected return 24 21
Contributions by employer 78 39
Benefits paid (20) (11)
Actuarial gains / (losses) 8 3
The Company expects to contribute Rs.60 (2012-13: Rs. 60) to gratuity in 2013-14.
[AS15 Revised Para (h)]
Gratuity
2014 2013
% %
Investments with insurer 100 100
{AS15 Revised 120 (l) (i) to (v)}
2014 2013
% %
Discount rate 9.10 8.20
Expected rate of return on assets 7.50 7.50
Employee turnover
Age (Years) 21-44 8% 8%
Age (Years) 45-57 3% 3%
Healthcare cost increase rate N.A. N.A.
The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion
and other relevant factors, such as supply and demand in the employment market.
Gratuity
2014 2013
Defined benefit obligation 593 593
Plan assets 402 312
Surplus / (deficit) (191) (281)
Experience adjustments on plan liabilities (32) (6)
Experience adjustments on plan assets 8 3
Notes To Financial Statements For The Year Ended 31st March 2014 (contd.)
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Notes To Financial Statements For The Year Ended 31st March 2014 (contd.)
NO
TE -
2.2
8
(Ru
pees
in lacs
un
less
oth
erw
ise s
tate
d)
Deta
ils
of
tran
sact
ion
s u
nd
er
Sto
ck-i
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rad
e d
uri
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th
e p
eri
od
1st
Ap
ril,
20
13
to
31
st M
arc
h, 2
01
4
(Fig
ure
s re
lati
ng
to
fin
an
cial
year
20
12
-13
are
in
dic
ate
d i
n b
rack
et)
Sto
ck-I
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Pre
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are
s140,0
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*--
--
--
-140,0
00
*-
(140,0
00)
*-
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(
-)
(-)
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(-)
(
-)
(140,0
00)
*-
Eq
uit
y Sh
are
s 1
5,4
00
-
-
-
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-
-
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1
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00
-
(30,2
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(5)
(-)
(
-)
(-)
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(14,8
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(15,4
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-
Un
its
of
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tual Fu
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-
-
447,6
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-
-
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(377,2
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100,4
18
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14,9
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(920,8
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(125,9
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(918,9
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(106,4
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(1,8
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(19,5
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Co
mm
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-
-
-
-
-
-
-
-
-
-
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(500)
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-
(
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-
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l 1
9,5
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19
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SB
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Notes To Financial Statements For The Year Ended 31st March 2014 (contd.)
(Rupees in lacs unless otherwise stated)
NOTE - 2.29
NOTE - 2.30
NOTE - 2.31
NOTE - 2.32
NOTE - 2.33
NOTE - 2.34
PRIOR YEAR COMPARATIVES
Based on information available with the Company, there are no suppliers who are registered as micro, small or medium
enterprise under "The Micro, Small and Medium Enterprise Development Act, 2006" as at March 31, 2014
The Company has cheques in hand aggregating Rs. 131 (2013: Rs. 34), which have been included in the respective bank
accounts.
Office premises obtained on operating lease are cancellable and no restrictions are imposed by the lease agreement, hence no
disclosure is required. Lease rent paid during the year is disclosed in Note 2.18 to the Financial Statements.
During the year company has purchased a property for the purpose of giving it on lease to its wholly owned subsidiary. The
same is shown as Long term Investments as defined in Para 3 of Accounting Standard 13 issued by Institute of Chartered
Accountants of India and notified by Companies Act, 1956. Hence depreciation on Invesment Property is not charged to
Statement of Profit & Loss Account.
During the year company has received from liquidator of Investor Services of India Limited an amount of Rs. 54 lacs
representing full cost of investment. The Investor Services of India Ltd is in voluntary liquidation. Any amount received in
future will be recognised as income in the year of receipt.
The financial statements for the year have been presented as per the Revised Schedule VI. The figures of the previous year have
been regrouped/reclassified as appropriate, to correspond with those of the current year.
As per our report of even date
For SHAH & TAPARIA For and on behalf of Board of Directors
Firm Registration No. 109463W
Chartered Accountants
Rakesh Kumar Joshi Arundhati Bhattacharya V.G.Kannan Nilesh N. Shah
Partner Chairman Managing Director & CEO Company Secretary
Membership No.: 102880
Mumbai
April 12, 2014
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Notes To Financial Statements For The Year Ended 31st March 2014 (contd.)
(Ru
pees
in lacs
un
less
oth
erw
ise s
tate
d)
Sta
tem
en
t P
urs
uan
t to
Sect
ion
21
2 o
f th
e C
om
pan
ies
Act
, 1
95
6, re
lati
ng
to
Su
bsi
dia
ry C
om
pan
ies
Sr.
No
.N
am
e o
f th
e S
ub
sid
iary
Co
mp
an
yS
BIC
AP
S
BIC
AP
B
ICA
P T
rust
ee
SB
ICA
P U
K L
td.
SB
ICA
P
Secu
riti
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.V
en
ture
s Lt
d.
Co
mp
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td.
Sin
gap
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.
GB
PSin
gap
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Do
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1.
Th
e f
inan
cial ye
ar
of
the S
ub
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2.
(a)
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of
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are
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an
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as
on
Marc
h 3
1, 2
013
(b)
Ext
en
t o
f in
tere
st o
f S
BI C
ap
ital M
ark
ets
Lim
ited
in
the C
ap
ital o
f th
e S
ub
sid
iary
3.
Net
ag
gre
gate
am
ou
nt
of
Pro
fits
/Lo
sses
of
the
Su
bsi
dia
ry s
o f
ar
as
it c
on
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s th
e M
em
bers
of
SB
I
Cap
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ark
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th
e
Acc
ou
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SB
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ap
ital M
ark
ets
Lim
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(a)
Pro
fits
of
the S
ub
sid
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fo
r th
e f
inan
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ar
en
ded
on
Marc
h 3
1, 2
014
(b)
Pro
fits
fo
r th
e p
revi
ou
s fi
nan
cial ye
ars
of
the
Su
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dia
ry s
ince
it
beca
me S
ub
sid
iary
of
SB
I C
ap
ital
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ets
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ited
4.
Net
ag
gre
gate
am
ou
nt
of
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fits
/Lo
sses
of
the
Su
bsi
dia
ry s
o f
ar
as
dealt
wit
h o
r p
rovi
sio
ns
mad
e f
or
tho
se lo
sses
in t
he A
cco
un
ts o
f SB
I C
ap
ital M
ark
ets
Lim
ited
(a)
Pro
fits
of
the S
ub
sid
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fo
r th
e f
inan
cial ye
ar
en
ded
on
Marc
h 3
1, 2
013
(b)
Pro
fits
fo
r th
e p
revi
ou
s fi
nan
cial ye
ars
of
the
Su
bsi
dia
ry s
ince
it
beca
me S
ub
sid
iary
of
SB
I C
ap
ital
Mark
ets
Lim
ited
Marc
h 3
1, 2
014
81,2
50,0
00 E
qu
ity
Sh
are
s o
f R
s. 1
0/-
each
Fu
lly P
aid
-up
100%
(819)
4,0
79
- -
Marc
h 3
1, 2
014
41,6
2,0
00 E
qu
ity
Sh
are
s o
f R
s. 1
0/-
each
Fu
lly P
aid
-up
100%
(35)
58 - -
Marc
h 3
1, 2
014
10,0
0,0
00 E
qu
ity
Sh
are
s o
f R
s. 1
0/-
each
Fu
lly P
aid
-up
100%
881
1,7
48
- -
Marc
h 3
1, 2
014
200,0
00 O
rdin
ary
Sh
are
s o
f G
BP
1/-
each
Fu
lly P
aid
-up
100%
(27,2
14)
2,4
26,4
66
- -
Marc
h 3
1, 2
014
50,0
0,0
00 O
rdin
ary
Sh
are
s o
f Sin
gap
ore
Do
llars
1/-
each
Fu
lly
Paid
-up
100%
(592,4
84)
(940,3
47)
- -
Fo
r an
d o
n b
eh
alf
of
the B
oard
of
Dir
ect
ors
Pla
ce: M
um
bai
Aru
nd
hati
Bh
att
ach
ary
aV
. G
. K
an
nan
Nil
esh
N. S
hah
Date
: Ap
ril 12, 2
014
Ch
air
man
Man
ag
ing
Dir
ect
or
& C
EO
Co
mp
an
y S
ecr
eta
ry
SB
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069
Directors' Report For The Year 2013 -14
To,
The Members,
thYour Directors have pleasure in presenting the 9 Annual Report together with the Profit and Loss Account for the year ended st31 March 2014 and the Balance Sheet as on that date.
Operating Results
Gross Income 69.60 79.03
Profit before Provisions, Depreciation, Interest and Tax 5.41 0.70
Provisions 0.31 0.52
Depreciation 1.41 9.02
Interest - -
Profit/(Loss) before Tax 3.69 (8.85)
Profit/(Loss) after Tax 2.42 (8.19)
Financial Position
Equity Share Capital 65.63 81.25
Reserves 41.09 42.28
Debt Funds - -
Other Selected Data
Earnings per Share (Rs.) 0.38 (1.13)
Return on Equity (%) 2.27 (6.63)
Dividend per Share (Rs.) - -
Book Value per Share (Rs.) 16.26 16.82
(Rs. in crs)
Year ended March 31 2013 2014
Performance Highlights (Rs. in crores)
I Market Environment:
The financial year began on an ominous note, with the decision of the US Federal Reserve to wind down its asset purchase
program weighing heavily on global markets and economic sentiments. The prospect of reduced stimulus and interest
rate cycle reversal triggered sell-off in stocks, bonds and currencies across the emerging markets, including India.
Emerging market economies with structural issues (high current account deficit, low growth, high inflation and ballooning
fiscal deficit etc) were more vulnerable. The currencies of Indonesia, South Africa, Brazil, Thailand, Turkey, Argentina and
India were thus hammered down to multi years low.
Owing to these global macro factors and unfavorable domestic environment, Indian markets underperformed in the first
half of fiscal with Sensex and Nifty touching lows of 17448.71 and 5118.85 in the month of August 2013. Sectoral indices
like Capital Goods, Banks, Realty, Power and Metal indices were badly hit, touching lows of between 2 to 5 years.
As the year came to a close, the macroeconomic environment improved, as the government contained the current
account deficit & inflation. RBI intervention helped reverse the slide of the rupee. The weak beginning to the financial year
was followed by strong FII inflows in February and March 2014 leading to an upsurge in the Indian Equity Markets. Nifty
and Sensex hit their all time high of 6730.05 and 22253.78 on March 31, 2014. Major contributors to this rally, on the back
of rupee depreciation and an uptick in global demand environment, were IT, Pharmaceuticals and Auto stocks
The SENSEX returned 18.7% and the NIFTY increased 17.5% during the year.
DII cash market volumes, from where your Company sources most of its broking business, showed a modest growth and
the Retail investor continued to stay away from the markets, for a better part of the year.
SB
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ITIE
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Directors' Report (contd.)
II Operations:
III Financial Results:
IV. Dividend:
V. Personnel:
VI. Deposits:
VII. Directors:
Your Company aims to focus on expanding brand value and presence in the broking space and has undertaken various
growth initiatives, considered of critical importance towards an accelerated growth path for the Company. One of the
critical growth initiatives which came to fruition in the year was the development and launch of the new trading portal of
your company.The portal with several new features, will enhance the execution capabilities of your Company substantially
and enable it to serve the entire spectrum of capital market investors more efficiently.
Even as the benchmark indices clocked record highs during the year, total trading volumes in the cash segment of the
stock exchanges were around their lowest point in seven years. The lack-lustre performance of small and mid-cap stocks,
also affected retail volumes, as stocks in this segment have not yet reached their 2008 peak levels and investors have been
unable to book profits and get out.
Despite a decline in the overall retail market volumes in the current financial year, your Company with an expanded client
base and enhanced client servicing through advisory and call centre interactions, was able to grow its retail broking top
line by about 9% with an increase of close to 70%, in the number of new retail clients acquired in the previous year.
On the Institutional business side, your Company ramped up its sales and research capabilities and set up an exclusive FII
desk to cater to institutional investors. Your Company's research now covers all key sectors and most of the NIFTY stocks.
Gross Income of your Company stood at Rs.79.03 crores during the year under review, Income from broking activity
contributed Rs.46.55 crores, Sales and Distribution Rs.17.65 crores and the balance Rs.14.83 crores came from interest,
depository services fees, account opening charges and other income. The corresponding figures last year were Rs.45.33
crores, Rs.15.48 crores and Rs.8.79 crores respectively.
The investments in building capacity through various initiatives & the burden of depreciation on the new web platform,
resulted in a loss of Rs.8.19 crores for the year. The operations of your Company however continue to be cash positive and
despite the escalated level of front ended costs, the returns from which will be available over the next few years, your
company generated a small cash profit of Rs.0.17 crore While the investments made in building technology & teams
have lowered the PAT this year, these have enhanced wherewithal for future growth and your company intends to continue
its efforts in the next year for building business capabilities and market presence, that will lay the ground for future growth
of the Company.
No dividend is proposed, as the Company has not earned any profit during the year under review.
The company continues to lay great stress on human resources as the most valuable asset. As on 31st March 2014, the
strength of its workforce was 615 as compared to 555 as at the previous year's close and teams in various verticals have
been enhanced both quantitatively and qualitatively. Continuous learning and skill up-gradation is ensured through
interventions like induction and orientation programmes as also external training programmes.
The Company has not accepted any deposits from the public, during the period under review.
During the year under review, the following changes took place in the Board of Directors of the Company:-
nd1) Smt. Arundhati Bhattacharya resigned as Director & Chairman w.e.f. 2 Agust, 2013 consequent to her resignation as
Managing Director & CEO of SBI Capital Markets Limited.
th2) Shri V.G. Kannan was appointed as the Managing Director & CEO of SBI Capital Markets Ltd. w.e.f 8 October, 2013 and by
virtue of Article 155(a) of the Articles of Association of the Company, the Managing Director & Chief Executive Officer of
SBI Capital Markets Limited is the ex-officio Director of the Company and the Chairman of the Board of Directors.
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Directors' Report (contd.)
st3) Smt. Swati B. Desai resigned as the Director & Managing Director w.e.f 31 October, 2013 consequent to her
superannuation from the services of State Bank of India.
4) Shri Abhay C. Chaudhari, President & Chief Operating Officer, SBI Capital Markets Ltd. was appointed as Additional thDirector of the Company w.e.f 5 December, 2013.
th5) Shri Mani Palvesan was appointed as the Managing Director of the Company w.e.f 25 November, 2013.
In accordance with the provisions of the Companies Act, 1956 Shri Abhay C. Chaudhari, Director, holds office up to the thdate of the 9 Annual General Meeting. The Company has received Notice from a member under section 257 of the
Companies Act, 1956, proposing him as candidate for the office of Director liable to retire by rotation.
Shri Abhay C. Chaudhari has conveyed his consent for being appointed as Director liable to retire by rotation.
thShri M.P. Mehrotra and Shri H.N. Varma, Directors, retire by rotation at the 9 Annual General Meeting of the Company and
being eligible, offers themselves for re-appointment. The Board extended a hearty welcome to Shri Abhay C. Chaudhari
and Shri Mani Palvesan to the Board and placed on record its deep appreciation to Smt. Arundhati Bhattacharya and Smt.
Swati B. Desai for their valuable contributions during their tenure as Directors of the Company.
Pursuant to Section 217 (2AA) of the Companies Act, 1956, the Directors confirm that: -
i in the preparation of the annual accounts, the applicable accounting standards have been followed;
ii appropriate accounting policies have been selected and applied consistently, and the judgments and estimates that have
been made are reasonable and prudent so as to give a true and fair view of the state of affairs of the company as on 31st
March 2014 and of the profit or loss of the company for the period ended 31st March 2014;
iii proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the
provisions of the Companies Act for safeguarding the assets of the company and for preventing and detecting frauds and
other irregularities;
iv the annual accounts have been prepared on a going concern basis.
The Directors also wish to draw the kind attention of the Shareholders to the report of the Auditors to the Shareholders issued
by M/s. Sudit K. Parekh & Co. the Statutory Auditors, on the financial accounts for the year ended March 31, 2014.
M/s Sudit K. Parekh & Co., Chartered Accountants, the Statutory Auditors of the Company, retire at the conclusion of the Ninth
Annual General Meeting of the Company.
st thThe Board of Directors at their 41 Meeting held on 12 April, 2014, has recommended the reappointment of M/s Sudit K.
Parekh & Co. Chartered Accountants, as the Statutory Auditors of the Company to hold office from the conclusion of the Ninth
Annual General Meeting up to the conclusion of the Tenth Annual General Meeting of the Company. The Company has
received a Certificate from M/s Sudit K. Parekh & Co. to the effect that they are eligible to be appointed as Statutory Auditors in
accordance with the provisions of Section 141(3) of the Companies Act, 2013.
In terms of the above Rules issued by the Central Government, the following information is furnished:-
Conservation of Energy and Technology Absorption:
As the Company is engaged only in the business of stock broking activities and other financial services during the period under
review, there is no information to report under this head.
Foreign Exchange Earnings and Outgo:
During the year under review, the Company had foreign exchange earnings of Rs. 0.89 lac on account of research income.
The total foreign exchange expended amounted to Rs.0.91 lac on account of selling & distribution sub-commission, Rs. 2.53
lacs on travelling and Rs. 15.84 lacs on account of operating expenditure.
VIII. Directors' Responsibility Statement:
IX. Auditors:
X. Companies (Disclosures of Particulars in the Report of the Board of Directors) Rules, 1988:
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Directors' Report (contd.)
XI. Particulars of Employees:
XII. Acknowledgement:
The information as required under section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of
Employees) Amendment Rules, 2011, as amended, is given in Annexure A.
The Board of Directors would like to express its thanks to SEBI, the Company's Regulator, the National Stock Exchange of India
Limited and Bombay Stock Exchange Limited, Central Depository Services (India) Limited for their advice and guidance
received.
The Board is grateful to the State Bank of India and the SBICAPS family for their invaluable support and guidance to the
Company. The Board also records its appreciation of the unstinted support extended by all its staff members.
For and on behalf of the Board of Directors
V. G. Kannan
Chairman
thDate: 12 April, 2014
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Independent Auditor’s Report
To the Members of SBICAP Securities Limited
Report on the Financial Statements
Report on Other Legal and Regulatory Requirements
We have audited the accompanying financial statements of SBICAP Securities Limited (“the Company”), which comprise the
Balance Sheet as at March 31, 2014 and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and
a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in accordance with the Accounting Standards notified under
the Companies Act, 1956 (“the Act”) read with the General Circular No. 15/2013 dated 13th September 2013 of the Ministry of
Corporate Affairs in respect of section 133 of the Companies Act, 2013. This responsibility includes the design, implementation
and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true
and fair view and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.We conducted our audit in
accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require
that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company's preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used
and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of
the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the financial statements give
the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014;
(b) in the case of the Statement of Profit and Loss, of the loss for the year ended on thatdate; and
(c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
1. As required by the Companies (Auditor's Report) Order, 2003 as amended by Companies (Auditor's Report) (Amendment)
Order, 2004 (together 'the Order'), issued by the Central Government of India in terms of sub-section (4A) of section 227 of
the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations, which to the best of our knowledge and belief were necessary
for the purpose of our audit;
b. in our opinion proper books of account as required by law have been kept by the Company so far as appears from our
examination of those books;
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are in agreement
with the books of account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement comply with the Accounting
Standards notified under the Companies Act, 1956 read with the General Circular No. 15/2013 dated 13 September
2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013;
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e. on the basis of written representations received from the directors as on March 31, 2014, and taken on record by the Board
of Directors, none of the directors is disqualified as on March 31, 2014, from being appointed as a director in terms of
clause (g) of sub-section (1) of section 274 of the Companies Act, 1956;
For SUDIT K PAREKH & CO.
Chartered Accountants
Firm Registration No.: 110512W
(D.S. Khatri)
Partner
Membership Number: 16306
Mumbai, dated: April 12, 2014
Independent Auditor’s Report (contd.)
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Annexure To The Auditor’s Report
i. In respect of its fixed assets :
a. The Company has maintained proper records showing full particulars, including quantitative details and situation of
fixed assets.
b. Fixed assets have been physically verified by the management during the year. The frequency of verification is
reasonable with regards to size of the Company and the nature of its business and fixed assets. According to
information and explanation given to us, no material discrepancies were noticed on such verification.
c. Fixed assets disposed off during the year were not substantial and, therefore, do not affect the going concern
assumption.
ii. The Company is primarily in brokerage industry and it was not holding any inventory during the year.Hence, sub-clauses
(a) to (c) of clause (ii) are not applicable to the company.
iii. According to the information and explanations given to us, the Company has not granted/taken any loan secured or
unsecured to/from the company, firm or other parties covered in the register maintained under section 301 of the
Companies Act, 1956. Hence sub-clauses (a) to (g) of clause (iii) are not applicable to the Company.
iv. In our opinion and according to the information and explanations given to us, there exists adequate internal control
system commensurate with the size of the Company and the nature of its business with regard to purchases of fixed assets
and with regard to the sale of services. During the course of our audit, we have not observed any continuing failure to
correct major weakness in internal control system of company in respect of these areas.
v. According to the information and explanations given to us, there are no contracts and arrangementsthat needs to be
entered in the register to be maintained in pursuance of Section 301 of the Companies Act, 1956. Hence, sub-clauses (a)
and (b) of clause (v) is not applicable to the Company.
vi. According to the information and explanations given to us, the Company has not accepted any deposits from the public
within the meaning of provisions of sections 58A and 58AA and other relevant provisions of the Companies Act, 1956 and
the Companies (Acceptance of Deposit) Rules, 1975 made there under.
vii. The Company has an internal audit system commensurate with its size and the nature of its business.
viii. In our opinion, the central government has not prescribed the maintenance of the cost records under section 209(1) (d) of
the Companies Act, 1956 for the Company and hence this clause is not applicable to the Company.
ix. In respect of Statutory Dues:
a. According to the information and explanations given to us, the Company is generally regular in depositing
undisputed statutory dues in respect of income tax, service tax, provident fund, cess and other statutory dues as
applicable to it with appropriate authorities.
As informed to us, the provisions of Investor education and protection fund, sales tax, wealth tax, excise duty and
customs duty are currently not applicable to the Company.
According to the information and explanations given to us, there are no undisputed amounts payable in respect of
income tax, service tax, provident fund, cess and other statutory dues as applicable to it, that were in arrears, as at
March 31, 2014 for a period of more than six months from the date they became payable.
As informed to us, the provisions of Investor education and protection fund, sales tax, wealth tax, excise duty and
customs duty are currently not applicable to the Company.
b. According to the information and explanations given to us, there are no dues of income tax, service tax, provident
fund, cess and other statutory dues as applicable to the company, which have not been deposited on account of any
dispute.
As informed, the provisions of Investor education and protection fund, sales tax, wealth tax, excise duty and customs
duty are currently not applicable to the company.
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x. The Company does not have any accumulated losses at the end of the financial year and has not incurred cash losses
in the financial year and in the immediately preceding financial year.
xi. Based on our audit procedures and according to the information and explanations given to us, we are of the opinion
that the Company has not defaulted in repayment of dues to banks. The company does not have any outstanding dues to
financial institutions nor does it have any debentures outstanding during the financial year.
xii. According to the information and explanations given to us, the Company has not granted loans and advances on the basis
of security by way of pledge of shares, debentures and other securities.
xiii. The provisions of chit fund are not applicable to the Company; hence clause xiii is not applicable to the Company.
xiv. According to the information and explanations given to us, the Company is not dealing or trading in shares, securities,
debentures and other investments. Therefore the provisions of this clause of the Order are not applicable to the Company.
xv. In our opinion and according to information and explanations provided to us, the Company has not provided guarantees
for loans taken by others from banks and financial institutions.
xvi. The Company has not taken any term loans during the year and hence clause (xvi)is not applicable to the Company.
xvii. According to the information and explanations given to us, and on an overall examination of the Balance Sheet of the
Company, funds raised on short-term basis have not been used during the year for making long-term investments.
xviii. According to the information and explanations given to us, during the year the Company has not made any preferential
allotment of shares to parties and Companies covered in the Register maintained under Section 301 of the Companies Act,
1956.
xix. According to the information and explanation given to us, the company has not raised any money by way of issue of
debentures and hence clause xix is not applicable to the Company.
xx. The Company has not made any public issue of securities during the year.
xxi. According to the information and explanations given to us, no fraud on or by the Company was noticed or reported during
the year.
For SUDIT K PAREKH & CO.
Chartered Accountants
Firm Registration No.: 110512W
(D.S. Khatri)
Partner
Membership Number: 16306
Mumbai, dated: April 12, 2014
Annexure To The Auditor’s Report (contd.)
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EQUITY AND LIABILITIES
ASSETS
Shareholders' funds
Share capital 3 812,500,000 656,250,000
Reserves and surplus 4 422,765,693 410,917,602
1,235,265,693 1,067,167,602
Non-current liabilities
Long term borrowings 5 2,019,863 1,451,812
Other long term liabilities 6 385,067 2,099,875
Long-term provisions 7 11,819,748 8,708,673
14,224,678 12,260,360
Current liabilities
Trade payables 8 500,004,936 569,991,968
Other current liabilities 9 141,467,881 74,182,336
Short-term provisions 7 4,834,964 4,237,883
646,307,781 648,412,187
TOTAL 1,895,798,152 1,727,840,149
Non-current assets
Fixed assets
Tangible assets 10 171,687,452 18,932,536
Intangible assets 11 273,632,395 8,975,780
Capital work-in-progress - 194,200,420
Intangible assets under development 250,001 125,234,994
Deferred tax assets (net) 12 15,674,869 9,101,829
Long term loans and advances 13 167,007,076 128,033,790
628,251,793 484,479,349
Current assets
Trade receivables 14 553,728,895 521,458,054
Cash and bank balances 15 691,200,544 710,032,356
Short term loans and advances 13 22,616,920 11,870,390
1,267,546,359 1,243,360,800
TOTAL 1,895,798,152 1,727,840,149
Summary of significant accounting policies 2.1
The accompanying notes are an integral part of the financial statements.
As per our report of even date
For Sudit K Parekh & Co. For and on behalf of the Board of Directors of
Firm Registration No.: 110512W SBICAP Securities Limited
Chartered Accountants
D. S. Khatri V. G. Kannan Mani Palvesan Dhanashri Kenkre
Partner Chairman Managing Director Company Secretary
Membership No. : 16316
Mumbai Mumbai
Date: April 12, 2014 Date: April 12, 2014
Balance Sheet NotesAs at
31-Mar-14
As at
31-Mar-13
(Amount in Rs.)
Balance Sheet as at March 31, 2014
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Statement Of Profit And LossFor The Year Ended March 31, 2014
Revenue from operations
Expenses
Brokerage 465,482,960 432,002,666
Selling and distribution 16.1 176,543,449 176,159,744
Depository services income 16.2 42,927,700 26,633,621
Other operating income 16.3 66,385,466 22,167,110
Total Revenue from operations 751,339,575 656,963,141
Other non-operating income 17 38,954,421 39,078,446
Total Revenue 790,293,996 696,041,587
Employee benefit expenses 18 263,111,784 240,798,150
Operating expenses 19 298,122,977 206,653,272
Administration expenses 20 220,559,842 190,666,580
Depreciation and amortization expense 21 90,192,808 14,096,328
Finance costs 22 3,851,938 4,346,970
Total expense 875,839,349 656,561,300
Profit before prior period adjustments (85,545,353) 39,480,287
Add/Less: Prior period income/(expenses) 29 (2,929,596) (2,520,009)
Profit before tax (88,474,949) 36,960,278
Tax expenses
Current tax - 15,000,000
Deferred tax (6,573,040) (2,287,667)
Total tax expense (6,573,040) 12,712,333
Profit for the year from continuing operations (81,901,909) 24,247,945
Earnings per equity share [Nominal value of share Rs.10
(Previous year Rs.10)]
(Basic and diluted EPS computed on the basis of
total profit for the year) 35 (1.13) 0.38
Balance Sheet NotesAs at
31-Mar-14
As at
31-Mar-13
(Amount in Rs.)
Summary of significant accounting policies 2.1
The accompanying notes are an integral part of the financial statements.
As per our report of even date
For Sudit K Parekh & Co. For and on behalf of the Board of Directors of
Firm Registration No.: 110512W SBICAP Securities Limited
Chartered Accountants
D. S. Khatri V. G. Kannan Mani Palvesan Dhanashri Kenkre
Partner Chairman Managing Director Company Secretary
Membership No. : 16316
Mumbai Mumbai
Date: April 12, 2014 Date: April 12, 2014
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Cash Flow Statement For The Year Ended March 31, 2014
Cash flow from operating activities :-
Cash Flow from investing activities :-
Cash Flow from financing activities :-
Profit before tax after prior period expenses (88,474,949) 36,960,278
Non-cash adjustments
Depreciation and amortization 90,192,808 14,096,328
Provision for performance linked variable payments (PLVP) 12,500,000 14,000,000
Excess provision for PLVP written back (1,820,523) (2,020,179)
Excess provision for selling and distribution written back (1,599,163) (5,345,587)
Provision for doubtful debts 5,238,974 3,059,999
Loss on sale of fixed assets 83,050 359,836
Provision for leave encashment / gratuity 3,708,156 3,484,177
Operating profit before working capital changes 19,828,353 64,594,852
Movements in working capital:
Increase/(decrease) in current trade payables (69,987,032) 169,067,984
Increase/(decrease) in non-current trade payables - (346,846)
Increase/(decrease) in other current liabilities (421,461) 3,468,674
Increase/(decrease) in other long term liabilities (1,146,756) 105,360
Decrease/(increase) in non-current trade receivables (5,238,973) (3,059,999)
Decrease/(increase) in current trade receivables (32,270,841) (245,617,105)
Decrease/(increase) in margin and other deposits 34,373,933 (48,960,016)
Decrease/(increase) in long term loans and advances (25,228,885) (6,514,081)
Decrease/(increase) in short term loans and advances (10,746,530) (4,123,020)
Decrease/(increase) in other non-current assets - 1,211,732
Cash generated from operations before tax (90,838,191) (70,172,466)
Direct tax refund received - 2,495,343
Direct taxes paid (13,744,400) (19,014,893)
I. Net cash generated from operating activities (104,582,591) (86,692,016)
Purchase of fixed assets (129,902,621) (68,066,610)
Sale of fixed assets 27,335 511,944
II. Net cash used in investing activities. (129,875,286) (67,554,666)
Proceeds from issue of shares 250,000,000 250,000,000
III. Net cash provided by financing activities 250,000,000 250,000,000
Net change in cash & cash equivalents (I+II+III) 15,542,123 95,753,318
Cash & cash equivalents at the beginning of the year 422,210,878 326,457,560
Cash & cash equivalents at the end of the year 437,753,001 422,210,878
Balance Sheet NotesFor the year
ended 31-Mar-14
For the year
ended 31-Mar-13
(Amount in Rs.)
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Components of cash and cash equivalents
Balance with banks :
On current accounts 331,363,224 422,198,878
Deposits with original maturity less than 3 months - -
Investment in units of Liquid fund 106,386,426
Cash on hand 3,351 12,002
Total cash and cash equivalents (Note 15) 437,753,001 422,210,878
Balance Sheet NotesFor the year
ended 31-Mar-14
For the year
ended 31-Mar-13
(Amount in Rs.)
Summary of significant accounting policies 2.1
The accompanying notes are an integral part of the financial statements.
As per our report of even date
For Sudit K Parekh & Co. For and on behalf of the Board of Directors of
Firm Registration No.: 110512W SBICAP Securities Limited
Chartered Accountants
D. S. Khatri V. G. Kannan Mani Palvesan Dhanashri Kenkre
Partner Chairman Managing Director Company Secretary
Membership No. : 16316
Mumbai Mumbai
Date: April 12, 2014 Date: April 12, 2014
Cash Flow Statement For The Year Ended March 31, 2014 (contd.)
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Summary Of Significant Accounting Policies For The Year Ended March 31, 2014
1. Corporate information
2. Basis of preparation
d. Intangible assets
SBICAP Securities Ltd ('the Company') is a wholly-owned subsidiary of SBI Capital Markets Ltd., incorporated in 2005. It is a
member of the two premier stock exchanges of India, the National Stock Exchange of India Ltd and Bombay Stock
Exchange Ltd. The Company is engaged in the business of broking (retail and institutional) and third party distribution of
financial products.
The financial statements of the Company have been prepared in accordance with generally accepted accounting
principles in India ('Indian GAAP'). The Company has prepared these financial statements to comply in all material respects
with the accounting standards notified under Companies (Accounting Standards) Rules 2006 read with General Circular
15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act,
2013. The financial statements have been prepared on an accrual basis and under the historical cost convention. The
accounting policies adopted in the preparation of financial statements are consistent with those of previous year.
All assets and liabilities have been classified and disclosed as current or non-current as per the Company’s normal
operating cycle and other criteria set out in the Revised Schedule VI to the Companies Act, 1956. Based on the nature of
products and the time between the acquisition of assets for trading and their realisation in cash and cash equivalents, the
Company has ascertained its operating cycle as 12 months for the purpose of current/non-current classification of assets
and liabilities.
2.1 Summary of significant accounting policies
"The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the
disclosure of contingent liabilities at the end of the reporting period. Although these estimates are based on the
management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could
result in the outcomes requiring an adjustment to the carrying amounts of assets or liabilities in future periods."
"Fixed assets are stated at cost net of accumulated depreciation and accumulated impairment losses, if any. The cost
comprises purchase price and directly attributable cost of bringing the asset to its working condition for its intended
use.Gains or losses arising from derecognition of fixed assets are measured as the difference between the net disposal
proceeds and the carrying amount of the asset and are recognised in the statement of profit and loss when the asset is
derecognised."
Depreciation on fixed assets is calculated on a written down value basis using the rates arrived at based on the useful lives
estimated by the management, or those prescribed under the Schedule XIV to the Companies Act, 1956, whichever is
higher. The Company has used the following rates to provide depreciation on its fixed assets:
Rates (WDV)
Office equipments (except mobile phones) 13.91%
Furniture & fixtures 18.1%
Computers 40%
Mobile phones are depreciated on a straight-line basis over a period of three years.Leasehold improvements are depreciated
on a straight-line basis over the primary lease period.
Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible
assets are carried at cost less accumulated amortization and accumulated impairment losses, if any.
Intangible assets are amortized on a straight line basis over the estimated useful economic life of 3 years.
Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal
proceeds and the carrying amount of the asset and are recognised in the statement of profit and loss when the asset is
derecognised.
a. Use of estimates
b. Tangible fixed assets
c. Depreciation on tangible fixed assets
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e. Leases
f. Impairment of tangible and intangible assets
g. Cash and cash equivalents
h. Investments
i. Inventories
j. Revenue recognition
Leases where the lessor effectively retains substantially all the risks and the benefits of ownership of the leased term are
classified as operating leases. Operating lease payments, in respect of non-cancellable leases are recognised as an
expense in the Statement of Profit and Loss on a straight-line basis over the lease term.
The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on
internal/external factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds its
recoverable amount. An asset's recoverable amount is the higher of an asset's or cash-generating unit's (CGU) net selling
price and its value in use. The recoverable amount is determined for an individual asset unless the asset does not generate
cash inflows that are largely independent of those from other assets or groups of assets. In assessing value in use, the
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset.In determining net selling price, recent market
transactions are taken into account if available. If no such transactions can be identified, an appropriate valuation model
is used.
Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short-term
investments with an original maturity of three months or less.
"Investments which are readily realizable and intended to be held for not more than one year from the date on which such
investments are made, are classified as current investments. All other investments are classified as long-term
investments.On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly
attributable acquisition charges such as brokerage, fees and duties.Current investments are carried in the financial
statements at lower of cost and fair value determined on an individual investment basis. Long-term investments are
carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the
value of the investments.On disposal of an investment, the difference between its carrying amount and net disposal
proceeds is charged or credited to the statement of profit and loss."
The securities acquired with the intention of holding for short-term and trading are classified as stock-in-trade. The
securities held as stock-in-trade are valued at lower of cost arrived at on first-in first-out (FIFO) basis or marketable fair
value.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the
revenue can be reliably measured. The following specific recognition criteria have been followed before revenue is
recognised:
Brokerage income in relation to stock broking activity is recognised on the trade date of transaction and includes stamp
duty, transaction charges and is net of scheme incentives paid. Amounts receivable from and payable to clients/stock
exchanges for broking transactions are disclosed separately as trades executed but not settled.
Commission relating to public issues is accounted for on finalization of allotment of the public issue/receipt of information
from intermediary. Brokerage Income relating to public issues / mutual fund / other securities is accounted for based on
mobilisation and intimation received from clients / intermediaries.
Depository income - Annual Maintenance Charges are recognised on accrual basis and transaction charges are
recognised on trade date of transaction.
Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate
applicable.
Summary Of Significant Accounting Policies For The Year Ended March 31, 2014 (contd.)
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k. Foreign currency transactions
l. Retirement and other employee benefits
m. Income taxes
Initial Recognition
Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the
exchange rate between the reporting currency and the foreign currency at the date of the transaction.
Conversion
Foreign currency monetary items are restated using the exchange rate prevailing at the reporting date. Non-monetary
items, which are measured in historical cost denominated in a foreign currency, are reported using the exchange rate at
the date of the transaction. Non-monetary items, which are measured at fair value or other similar valuation denominated
in a foreign currency, are translated using the exchange rate at the date when such value was determined.
Exchange Differences
All exchange differences are recognised as income or as expenses in the period in which they arise.
Retirement benefit in the form of provident fund is a defined contribution scheme. The contributions to the provident
fund are charged to the statement of profit and loss for the year when the contributions are due. The Company has no
obligation, other than the contribution payable to the provident fund.
The Company operates a gratuity plan for its employees, which is a defined benefit plan. The costs of providing benefits
under this plan is determined on the basis of actuarial valuation at each year-end, using the projected unit credit method.
Actuarial gains and losses are recognised in full in the period in which they occur in the statement of profit and loss.
"Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term employee benefit.
The Company measures the expected cost of such absences as the additional amount that it expects to pay as a result of
the unused entitlement that has accumulated at the reporting date.The Company treats accumulated leave expected to
be carried forward beyond twelve months, as long-term employee benefit for measurement purposes. Such long-term
compensated absences are provided for based on the actuarial valuation using the projected unit credit method at the
year-end. Actuarial gains/losses are immediately taken to the statement of profit and loss and are not deferred. "
"Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to be paid to
the tax authorities in accordance with the Income-tax Act, 1961 enacted in India. The tax rates and tax laws used to
compute the amount are those that are enacted or substantively enacted, at the reporting date.Deferred income taxes
reflect the impact of timing differences between taxable income and accounting income originating during the current
year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws
enacted or substantively enacted at the reporting date. Deferred tax liabilities are recognised for all taxable timing
differences. Deferred tax assets are recognised for deductible timing differences only to the extent that there is reasonable
certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. In
situations where the Company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are
recognised only if there is virtual certainty supported by convincing evidence that they can be realised against future
taxable profits."
At each reporting date, the company re-assesses unrecognised deferred tax assets. It recognizes unrecognised deferred
tax asset to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient future
taxable income will be available against which such deferred tax assets can be realised.
"The carrying amount of deferred tax assets are reviewed at each reporting date. The Company writes-down the carrying
amount of deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be,
that sufficient future taxable income will be available against which deferred tax asset can be realised. Any such write-
down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient
future taxable income will be available.Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable
right exists to set-off current tax assets against current tax liabilities and the deferred tax assets and deferred taxes relate
to the same taxable entity and the same taxation authority."
Summary Of Significant Accounting Policies For The Year Ended March 31, 2014 (contd.)
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n. Segment reporting
o. Earning per share
p. Provisions
q. Contingent liabilities
The Company's primary business segments are reflected based on the principal business carried out, i.e. share and stock
broking on the National Stock Exchange of India Limited,Bombay Stock Exchange Limited and other related ancillary
services and third party distribution of financial products.
The risk and returns of the business of the Company is neither associated with geographical segmentation nor the clients
of the Company are grouped geographically.
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders
by the weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all
dilutive potential equity shares.
A provision is recognised when the Company has a present obligation as a result of past event, it is probable that an
outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be
made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on
the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting
date and adjusted to reflect the current best estimates.
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present
obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the
obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised
because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence
in the financial statements.
Summary Of Significant Accounting Policies For The Year Ended March 31, 2014 (contd.)
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Notes To Financial Statement For The Year Ended March 31, 2014
3. Share capital
As at
31-Mar-14
As at
31-Mar-13
(Amount in Rs.)
Authorised share capital
100,000,000 (Previous year: 100,000,000) Equity Shares of Rs. 10 each 1,000,000,000 1,000,000,000
Issued, subscribed and paid-up share capital
81,250,000 (Previous year: 65,625,000) Equity Shares of Rs. 10 each 8,125,000,00 656,250,000
Total issued, subscribed and paid-up share capital 8,125,000,00 656,250,000
a. Reconciliation of shares outstanding as at March 31, 2014 and at March 31, 2013
March 31, 2014 March 31, 2013
Equity shares No. of shares Rupees No. of shares Rupees
Outstanding at the beginning of the year 65,625,000 656,250,000 50,000,000 500,000,000
Add: Issued during the year for cash 15,625,000 156,250,000 15,625,000 156,250,000
Outstanding at the end of the year 81,250,000 812,500,000 65,625,000 656,250,000
b. Terms/rights attached to equity shares
The Company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to
one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining
assets of the Company, after distribution of all preferential amounts in proportion to their shareholdings.
c. Shares held by holding/ultimate holding company and/or their subsidiaries/associates
March 31, 2014 March 31, 2013
SBI Capital Market Ltd., the holding company & its nominees
81,250,000 (Previous year: 65,625,000) Equity Shares of
Rs. 10 each fully paid up 812,500,000 656,250,000
d. Details of shareholders holding more than 5% shares capital in aggregate in the Company
March 31, 2014 March 31, 2013
No. of shares % of holding No. of shares % of holding
Equity shares of Rs.10 each fully paid up
SBI Capital Market Ltd., the holding
Company & its nominees 81,250,000 100% 65,625,000 100%
(Amount in Rs.)
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(Amount in Rs.)
(Amount in Rs.)
e. The Company does not have any shares reserved for issue under options, contract/commitments for sale of shares /
disinvestment as at 31st March 2014 and also as at 31st March 2013.
f. During the period of five years immediately preceding 31st March, 2014 as well as 31st March, 2013, the Company has
not issued any bonus shares or shares for consideration other than cash and also the Company has not bought back any
shares during this period.
g. The Company does not have any securities as at 31st March 2014 and as at 31st March 2013 which are convertible into
equity/preference shares.
4. Reserves and surplus
5. Long-term borrowings
6. Other long-term liabilities
March 31, 2014 March 31, 2013
Securities premium account
Opening Balance 9,37,50,000 -
Add: premium on issue of shares received during the year 93,750,000 9,37,50,000
Closing Balance 187,500,000 93,750,000
General Reserves
Opening Balance 3,051,832 3,051,832
Add : amount transferred from surplus balance in the statement
of profit and loss - -
Closing Balance 3,051,832 3,051,832
Surplus in the statement of profit and loss
Opening Balance 314,115,770 289,867,825
Add: Profit for the year (81,901,909) 24,247,945
Net surplus in the statement of profit and loss 232,213,861 314,115,770
Total 422,765,693 410,917,602
March 31, 2014 March 31, 2013
Deferred Payment Liabilities
Retention money for capital items 2,019,862 1,451,812
Total 2,019,862 1,451,812
March 31, 2014 March 31, 2013
Franchisee security deposits 385,067 2,099,875
Total 385,067 2,099,875
Notes To Financial Statement For The Year Ended March 31, 2014 (contd.)
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9. Other current liabilities
10. Tangible assets
March 31, 2014 March 31, 2013
Sundry creditors 102,499,594 38,293,462
Other payables 38,968,287 35,888,874
141,467,881 74,182,336
Office Furniture & Computers Leasehold Total
Equipments Fixtures Improvements
Cost or valuation
At April 1, 2012 12,758,448 4,049,516 49,947,727 2,172,827 68,928,518
Additions 1,113,752 237,648 2,591,927 36,690 3,980,017
Disposals (1,753,607) - (26,011) - (1,779,618)
At March 31, 2013 12,118,593 4,287,164 52,513,643 2,209,517 71,128,917
Additions 1,100,694 223,907 190,272,762 - 191,597,363
Disposals (281,748) (30,888) (126,266) - (438,902)
At March 31, 2014 12,937,539 4,480,183 242,660,139 2,209,517 262,287,378
7. Provisions
8. Trade Payables
Non-Current Current
March 31, 2014 March 31, 2013 March 31, 2014 March 31, 2013
Provision for employee benefits
Provision for gratuity 5,570,178 2,968,127 - -
Provision for leave benefits 6,249,569 5,740,546 4,834,964 4,237,883
Total 11,819,747 8,708,673 4,834,964 4,237,883
March 31, 2014 March 31, 2013
Trade payables
Trades executed not settled (exchanges) 3,838,238 -
Trade payables (relating to Brokerage business) 421,742,744 541,384,078
Trade payables (Selling and Distribution and others) 74,423,954 28,607,890
500,004,936 569,991,968
(Amount in Rs.)
(Amount in Rs.)
(Amount in Rs.)
(Amount in Rs.)
Notes To Financial Statement For The Year Ended March 31, 2014 (contd.)
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10. Tangible assets
11. Intangible assets
Office Furniture & Computers Leasehold Total
Equipments Fixtures Improvements
Depreciation
At April 1, 2012 4,975,892 2,173,110 36,093,016 2,150,125 45,392,143
Charge for the year 1,121,615 485,902 6,045,168 59,392 7,712,077
Disposals (883,098) (443) (24,296) - (907,837)
At March 31, 2013 5,214,409 2,658,569 42,113,888 2,209,517 52,196,383
Charge for the year 1,045,559 374,070 37,312,430 - 38,732,059
Disposals (187,393) (20,583) (120,540) - (328,516)
At March 31, 2014 6,072,575 3,012,056 79,305,778 2,209,517 90,599,926
Net block
At March 31, 2013 6,904,184 1,628,595 10,399,755 - 18,932,534
At March 31, 2014 6,864,964 1,468,127 163,354,361 - 171,687,452
Gross block Computer Software Total
At April 1, 2012 31,720,731 31,720,731
Additions 8,319,599 8,319,599
At March 31, 2013 40,040,330 40,040,330
Additions 316,117,362 316,117,362
At March 31, 2014 356,157,692 356,157,692
Amortization
At April 1, 2012 24,680,298 24,680,298
Charge for the year 6,384,250 6,384,250
At March 31, 2013 31,064,548 31,064,548
Charge for the year 51,460,749 51,460,749
At March 31, 2014 82,525,297 82,525,297
Net block
At March 31, 2013 8,975,782 8,975,782
At March 31, 2014 273,632,395 273,632,395
(Amount in Rs.)
(Amount in Rs.)
Notes To Financial Statement For The Year Ended March 31, 2014 (contd.)
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Notes To Financial Statement For The Year Ended March 31, 2014 (contd.)
12. Deferred tax asset (net)
13. Loans and advances
March 31, 2014 March 31, 2013
Deferred tax liability
Fixed assets : (Depreciation) 25,378,061 337,096
Gross deferred tax liability 25,378,061 337,096
Deferred tax asset
Provision for doubtful debts 4,711,240 3,083,156
Provision for arbitrage deposit 78,592 80,463
Provision for gratuity 1,807,244 985,938
Provision for performance linked variable plan 4,055,625 1,798,424
Provision for other employee benefits 3,768,635 3,490,944
Unrealized profit 1,253,534 -
Business loss 25,378,061 -
Gross deferred tax asset 41,052,931 9,438,925
Net deferred tax asset 15,674,870 9,101,829
Non-Current Current
March 31, 2014 March 31, 2013 March 31, 2014 March 31, 2013
Advances recoverable in
cash or kind
Unsecured, considered good 562,159 602,274 22,615,420 11,536,390
562,159 602,274 22,615,420 11,536,390
Security deposits
Unsecured, considered good 57,737,565 53,468,565 1,500 334,000
57,737,565 53,468,565 1,500 334,000
Other loans and advances
Unsecured, considered good
Advance income-tax
(net of provisions for taxation) 51,857,352 38,112,951 - -
Deposits with stock exchanges/
clearing house 56,850,000 35,850,000 - -
Unsecured, considered doubtful
Arbitration deposit 242,230 242,230 - -
108,949,582 74,205,181 - -
Arbitration deposit provision (242,230) (242,230)
108,707,352 73,962,951 - -
167,007,076 128,033,790 22,616,920 11,870,390
(Amount in Rs.)
(Amount in Rs.)
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Notes To Financial Statement For The Year Ended March 31, 2014 (contd.)
14. Trade receivables
15. Cash and bank balances
March 31, 2014 March 31, 201
Unsecured, considered good unless stated otherwise
Outstanding for a period exceeding six months
from the date they are due for payment
Secured, considered good 4,211,116 1,775,362
Unsecured, considered good 7,834,979 14,575,561
Doubtful 11,920,934 8,614,514
23,967,029 24,965,437
Provision for doubtful receivables 11,920,934 8,614,514
A) 12,046,095 16,350,923
Other receivables
Secured, considered good 186,939,950 318,693,218
Unsecured, considered good 354,742,850 187,081,124
Doubtful 2,599,763 667,209
544,282,563 506,441,551
Provision for doubtful receivables 2,599,763 667,209
(B) 541,682,800 505,107,131
Total (A+B) 533,728,895 521,458,054
March 31, 2014 March 31, 2013
Cash and cash equivalents
Balance with banks :
On current accounts 331,363,224 422,198,878
Deposits with original maturity less than 3 months - -
Investment in units of Liquid fund 106,386,426 -
Cash on hand 33,351 12,002
437,753,001 422,210,880
Other bank balances
Interest accrued on Deposits 4,147,543 3,821,476
Deposits with original maturity for less than 12 months 16,000,000 70,700,000
Deposits with original maturity for more than 12 months - -
Deposits with stock exchanges 233,300,000 213,300,000
253,447,543 287,821,476
Total 691,200,544 710,032,356
(Amount in Rs.)
(Amount in Rs.)
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Notes To Financial Statement For The Year Ended March 31, 2014 (contd.)
16. Revenue from operations
17. Other non-operating income
18. Employee benefit expense
March 31, 2014 March 31, 2013
16.1 Selling and distribution commission(S&D)
Mutual Funds 8,788,972 39,082,314
Initial Public Offerings(IPO) 11,431,945 37,191,187
Bonds 131,493,258 59,281,343
Wholesale Debt 11,757,754 12,002,618
Others 13,071,520 28,602,282
Total 176,543,449 176,159,744
16.2 Depository service income
Annual maintenance charges 30,624,579 20,512,303
Transaction charges 11,931,866 5,994,110
Dematerialisation charges 234,445 119,399
Others 136,810 7,810
Total 42,927,700 26,633,622
16.3 Other operating Income
Account opening charges 60,643,555 12,955,968
Research Income 1,494,774 4,289,943
Miscellaneous Income 4,247,137 4,921,199
Total 66,385,466 22,167,110
Interest Income 23,565,518 31,712,680
Provisions written back:
Performance linked variable payment 1,820,523 2,020,179
S&D sub-commission payable 1,599,163 5,345,587
Other payables 5,494,782 -
Profit on redemption of mutual fund units 2,610,870 -
3,863,565 -
Total 38,954,421 39,078,446
Salaries, wages and bonus 234,868,792 216,970,005
Contribution to provident and other funds 9,609,051 8,922,670
Gratuity expense 2,602,051 2,993,783
Staff welfare expenses 16,031,890 11,911,692
Total 263,111,784 240,798,150
(Amount in Rs.)
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Notes To Financial Statement For The Year Ended March 31, 2014 (contd.)
19. Operating expense
20. Administrative expense
March 31, 2014 March 31, 2013
Selling and distribution sub-commission 135,891,823 88,870,622
Stamp duty 12,953,453 12,275,290
Transaction charges 4,197,957 3,301,886
Depository charges 863,496 1,102,835
Insurance Charges-stock brokers Indemnity 656,370 609,445
Cost of outsourced staff 111,155,555 81,406,067
Other operating expenses 27,165,349 16,027,129
Provision for doubtful debts 5,238,974 3,059,999
Total 298,122,977 206,653,273
Lease rent 56,242,986 54,628,801
Repairs and maintenance 24,528,065 11,319,221
Hiring charges 23,998,472 28,621,012
Advertisement 266,302 139,359
Travelling and conveyance 11,985,991 9,949,423
Communication 26,157,329 29,388,344
Printing and stationery 14,406,606 11,813,186
Legal and professional fees 4,741,792 2,374,677
Director's sitting fees 62,000 43,000
Payments to auditor 1,000,250 1,064,202
Electricity charges 6,416,865 5,971,521
Membership and subscriptions 7,404,256 7,550,791
Office maintenance 5,644,637 5,066,916
Staff recruitment 3,071,534 2,867,388
Books and periodicals 267,010 364,904
Business promotion 16,588,636 4,546,126
Courier charges 15,128,568 12,290,009
Insurance charges 730,621 1,015,233
Registration charges 17,705 50,000
Rates and taxes 127,714 21,377
Stamping and franking charges 1,473,124 1,017,514
Loss on sale of fixed assets/assets written off 83,051 359,837
Miscellaneous expenses 216,328 203,739
Total 220,559,842 190,666,580
Payments to auditor
As auditor :
Audit fee 675,000 675,000
Tax audit fee 40,000 40,000
Quarterly limited review 150,000 150,000
In other capacity :
Other services (certification fees) 100,000 160,000
Reimbursement of expenses 35,250 39,202
Total 1,000,250 1,064,202
(Amount in Rs.)
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Notes To Financial Statement For The Year Ended March 31, 2014 (contd.)
23. Capital and other commitments
24. Contingent liabilities
25. Details of dues to micro and small enterprises as defined under the MSMED Act, 2006
26. Value of imports calculated on CIF basis
As at March 31, 2014, the Company has commitments of Rs. 39,79,750 (Previous year: Rs. 73,380,264) relating to mounts
payable on open purchase orders for fixed assets.
As at As at
March 31, 2014 March 31, 2013
Claims against the company not acknowleged as debts * 4,622 105,899
4,622 105,899
*Claims against the Company comprise action taken against the Company by certain customers in respect of transactions
related to purchase/sale of securities on behalf of these customers. The case for the current year is outstanding with Arbitration
Tribunal of National Stock Exchange at Delhi (during previous year, there were number of cases which were outstanding with
various appellate authorities). The Company has been advised by its legal counsel that it is possible, but not probable, that the
action will succeed and accordingly no provision for liability has been recognized in the financial statements.
Based on information available with the Company, there are no suppliers included in sundry creditors who are registered as
micro, small or medium enterprise under “The Micro, Small and Medium Enterprise Development Act, 2006” as at March 31,
2014.
March 31, 2014 March 31, 2013
Capital expenditure for Software licenses 17,044,326 -
17,044,326 -
21. Depreciation and amortization expense
22. Finance costs
March 31, 2014 March 31, 2013
Depreciation on tangible assets 38,732,059 7,712,077
Amortization of intangible assets 51,460,749 6,384,252
Total 90,192,808 14,096,329
March 31, 2014 March 31, 2013
Bank charges 3,851,938 4,346,970
Total 3,851,938 4,346,970
(Amount in Rs.)
(Amount in Rs.)
(Amount in Rs.)
(Amount in Rs.)
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Notes To Financial Statement For The Year Ended March 31, 2014 (contd.)
27. Expenditures in foreign currency (accrual basis)
28. Earnings in foreign currency (accrual basis)
29. Prior period expenses
March 31, 2014 March 31, 2013
Selling and distribution sub-commission 90,738 -
Other operating expense 1,584,080 1,426,414
Travelling Expense 252,549 181,791
1,927,367 1,608,205
Research income 89,874 48,126
89,874 48,126
Membership & subscription - 346,030
Lease line charges - 2,173,979
Transaction charges 2,929,596 -
2,929,596 2,520,009
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30. Gratuity
The Company has a defined benefit gratuity plan. Under this plan, every employee who has completed atleast five years of
service gets a gratuity on departure at the rate of 15 days of last drawn salary for each completed year of service. The scheme
is funded with an insurance company in the form of qualifying insurance policy.
The following tables summarise the components of net benefit expense recognised in the statement of profit and loss, the
funded status and amounts recognised in the balance sheet.
March 31, 2014 March 31, 2013
Statement of Profit and Loss
Net employee benefit expense (recognised in Employee Cost)
Current service cost 2,693,312 1,821,468
Interest cost on benefit obligation 873,028 627,694
Expected return on plan assets (522,498) (360,689)
Net actuarial (gain) / loss recognised in the year (441,791) 639,848
Past service cost - -
Net benefit expense 2,602,051 2,728,321
Actual return on plan assets 624,976 455,208
Balance Sheet
Present value of defined benefit obligation 11,924,708 9,241,837
Fair value of plan assets (6,354,530) (6,273,710)
5,570,178 2,968,127
Less: Unrecognised past service cost - -
Plan asset / (liability) 5,570,178 2,968,127
Changes in the present value of the defined benefit obligation are as follows:
Opening defined benefit obligation 9,241,837 6,310,366
Interest cost 873,028 627,694
Current service cost 2,693,312 1,821,468
Past service cost - -
Benefits paid (544,156) (252,058)
Actuarial (gains) / losses on obligation (339,313) 734,367
Closing defined benefit obligation 11,924,708 9,241,837
Changes in the fair value of plan assets are as follows:
Opening fair value of plan assets 6,273,710 4,841,681
Expected return on plan assets 522,498 360,689
Contributions by employer - 1,228,879
Benefits paid (544,156) (252,058)
Actuarial gains / (losses) 102,478 94,519
Closing fair value of plan assets 6,354,530 6,273,710
The major categories of plan assets as a percentage of the fair value of total
plan assets are as follows:
Investments with insurer (in %) 100% 100%
Total 100% 100%
The overall expected rate of return on assets is determined based on the market prices prevailing at the beginning of the
period, applicable to the period over which the obligation is to be settled.
(Amount in Rs.)
Notes To Financial Statement For The Year Ended March 31, 2014 (contd.)
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The principal assumptions used in determining gratuity obligation for the Company's plan are shown below :
March 31, 2014 March 31, 2013
Discount rate 8.85% p.a 7.80% p.a
Expected rate of return on assets 8.00% p.a 8.00% p.a
Employee turnover 20.00% p.a 20.00% p.a
Increase in compensation cost 8.00% p.a 8.00% p.a
The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion
and other relevant factors, such as supply and demand in the employment market.
Amounts for the current and previous four periods are as follows:
March 31, 2014 March 31, 2013 March 31, 2012 March 31, 2011 March 31, 2010
Plan assets 6,354,530 6,273,710 4,841,681 4,458,961 2,793,800
Surplus / (deficit) (5,570,178) (2,968,127) (1,468,685) (222,067) (837,135)
Experience adjustments
on plan liabilities 277,496 (163,061) (40,426) (369,907) (574,971)
Experience adjustments
on plan assets 102,478 94,519 167,581 41,375 110,658
The principal assumptions used in determining Leave encashment obligation for the Company's plan are shown below :
March 31, 2014 March 31, 2013
Discount rate 8.85% p.a 7.80% p.a
Increase in compensation cost 8.00% p.a 8.00% p.a
The Company's operations falls under a single business segment of agency/commission based services. The Company is
engaged in the business of securities broking and its allied services and third party distribution of financial products.
Further, all the transactions and the assets of the Company are recorded/located in India. Since the Company's business
activities primarily falls within a single business and geographical segment, no additional disclosure is to be provided
under AS 17 - Segment Reporting, other than those already provided in the financial statements.
Names of related parties and related party relationships
Names of related parties where control exists:
Name of the Party Relationship
State Bank of India Ultimate Holding Company
SBI Capital Markets Limited Holding Company
Related parties with whom transactions have taken place during the year:
Name of the Party Relationship
SBI Life Insurance Company Limited Fellow Subsidiary
SBI Mutual Funds Fellow Subsidiary
SBI DFHI Ltd. Fellow Subsidiary
State Bank of Bikaner and Jaipur Fellow Subsidiary
State Bank of Hyderabad Fellow Subsidiary
SBI Fund Management Ltd. Fellow Subsidiary
State Bank of Mysore Fellow Subsidiary
State Bank of Patiala Fellow Subsidiary
State Bank of Travancore Fellow Subsidiary
SBI Global Factors Ltd. Fellow Subsidiary
Swati B. Desai, Managing Director (upto 31st October 2013) Key Management Personnel
Mani Palvesan, Managing Director (from 1st November 2013) Key Management Personnel
Anil Bhandari, Whole-Time Director & Chief Operating Officer Key Management Personnel
Related parties defined under clause 3 of Accounting Standard – 18 “Related Party Disclosures” have been identified on
the basis of representation made by the management and information available with the Company.
31. Leave encashment
32. Segmental information
33. Related parties disclosures
(Amount in Rs.)
Notes To Financial Statement For The Year Ended March 31, 2014 (contd.)
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Notes To Financial Statement For The Year Ended March 31, 2014 (contd.)
Ult
imat
e h
old
ing
co
mp
any
Stat
e B
ank
of
Ind
iaM
ar 3
1, 2
014
-
980,1
55
- 35,7
17,1
79
7,9
21,9
37
39,0
95,3
80
Mar
31, 2
013
-
988,3
45
- 25,2
82,2
92
6,9
00,5
45
2,0
43,4
01
Ho
ldin
g c
om
pan
ySB
I C
apit
al M
arke
t M
ar 3
1, 2
014
- 365,5
51
1,2
70,3
41
84,2
03,7
69
50,6
47
1,2
00,0
00
250,0
00,0
00
-
Li
mited
Mar
31, 2
013
- 225,7
73
11,8
72,7
37
103,2
26,3
07
-
3,9
32,6
00
250,0
00,0
00
-
Fello
w s
ub
sid
iari
es
Stat
e B
ank
of
Bik
aner
and
M
ar 3
1, 2
014
-
23,1
07
2,2
82,5
61
Mar
31, 2
013
-
89,5
69
3,5
75,7
34
Stat
e B
ank
of
Hyd
era
bad
Mar
31, 2
014
-
-
3,5
29,6
28
Mar
31, 2
013
-
50,9
69
580,5
14
Stat
e B
ank
of
Trav
anco
reM
ar 3
1, 2
014
-
-
1,7
96,3
19
Mar
31, 2
013
-
213,0
07
6,1
63,0
30
Stat
e B
ank
of
Pat
iala
Mar
31, 2
014
-
11,4
93
326,6
88
Mar
31, 2
013
-
34,5
65
779,8
76
Stat
e B
ank
of
Mys
ore
Mar
31, 2
014
-
12,1
05
7,6
80,6
50
Mar
31, 2
013
-
4,3
34
13,7
12,9
80
SB
I Li
fe In
sura
nce
Mar
31, 2
014
20,2
66,1
14
624,9
76
-
5
44,1
56
Mar
31, 2
013
17,1
22,4
35
455,2
08
1,2
28,8
79
252,0
58
SB
I D
FHI Lt
d.
Mar
31, 2
014
22,4
72
Mar
31, 2
013
17,9
68
SB
I M
utu
al F
un
ds
Mar
31, 2
014
5,4
33,6
61
Mar
31, 2
013
2,3
97,8
52
8,9
80,6
10
Key
man
agem
ent
per
sonnel
Man
i Pal
vesa
n, M
anag
ing
M
ar 3
1, 2
014
1,5
99,2
29
Dir
ect
or
Mar
31, 2
013
-
Sw
ati B
. Desa
i, Ex
-Man
agin
gM
ar 3
1, 2
014
2,2
64,0
19
Dir
ect
or
Mar
31, 2
013
2,1
59,5
68
An
il B
han
dar
i, C
hie
f M
ar 3
1, 2
014
3,6
29,8
07
Op
era
tin
g O
ffic
er
Mar
31, 2
013
3,1
85,8
59
33
. R
ela
ted
part
ies
dis
clo
sure
s (C
on
td.)
Deta
ils
of
tran
sact
ion
du
rin
g t
he y
ear
Nam
e O
f R
ela
ted
Part
yYe
ar
En
ded
Emp
loye
e
Co
st
Exp
en
ses
du
rin
g t
he y
ear
en
ded
Inco
me d
uri
ng
th
e y
ear
en
ded
Oth
er
tran
sact
ion
du
rin
g t
he y
ear
Ren
tB
roke
rag
e Pa
id F
or
Selli
ng
An
d
Dis
trib
uti
on
Ban
k G
uara
ntee
Co
mm
issi
on
Selli
ng A
ndD
istr
ibut
ion
Co
mm
issi
on
(IPO
)A
nd B
ond
s
Bro
kera
ge
(sto
ckb
roki
ng
)
Rese
arc
h
Inco
me
Inte
rest
In
com
e
Inte
rest
Fr
om
G
ratu
ity
Fun
d
Oth
er
Inco
me
Inve
stm
en
tIn
Eq
uit
y C
ap
ital
Co
ntr
ibu
tio
nTo
Gra
tuit
y Fu
nd
Ben
efi
ts
Paid
Fro
mG
ratu
ity
Fun
d
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Notes To Financial Statement For The Year Ended March 31, 2014 (contd.)
Ult
imate
ho
ldin
g c
om
pan
y
State
Ban
k o
f In
dia
Marc
h 3
1, 2
014
1,2
97,7
39
-
427,1
31
150,4
00,9
90
100,0
00,0
00
20,1
55,0
30
Marc
h 3
1, 2
013
1,0
22,1
75
-
3,8
24,4
18
138,2
83,8
45
67,7
00,0
00
1,8
19,2
07
Ho
ldin
g c
om
pan
y
SB
I C
ap
ital M
ark
et
Lim
ited
Marc
h 3
1, 2
014
81,2
05,3
95
1,1
21
185,7
25
539,0
66
Marc
h 3
1, 2
013
45,8
23,5
77
10,7
83
51,8
38
Fell
ow
su
bsi
dia
ries
State
Ban
k o
f B
ikan
er
an
d J
aip
ur
Marc
h 3
1, 2
014
-
10,5
24,0
79
-
-
Marc
h 3
1, 2
013
445,3
20
20,4
58,9
70
45,3
00,0
00
-
State
Ban
k o
f H
ydera
bad
Marc
h 3
1, 2
014
405,1
33
11,2
68,7
76
8,3
00,0
00
-
Marc
h 3
1, 2
013
522,4
63
12,0
96,6
82
40,0
00,0
00
-
State
Ban
k o
f Tr
ava
nco
reM
arc
h 3
1, 2
014
329,8
44
11,2
30,5
06
20,0
00,0
00
-
Marc
h 3
1, 2
013
333,1
54
20,9
08,3
10
20,0
00,0
00
-
State
Ban
k o
f Pati
ala
Marc
h 3
1, 2
014
113,9
34
12,6
79,9
59
7,5
00,0
00
-
Marc
h 3
1, 2
013
19,2
66
17,1
18,6
54
1,0
00,0
00
-
State
Ban
k o
f M
yso
reM
arc
h 3
1, 2
014
2,0
00,8
98
12,1
42,4
17
113,5
00,0
00
-
Marc
h 3
1, 2
013
1,4
67,3
68
10,5
27,1
10
110,0
00,0
00
-
SB
I Li
fe In
sura
nce
Marc
h 3
1, 2
014
-
6,3
54,5
30
Marc
h 3
1, 2
013
1,1
15,8
86
6,2
73,7
10
SB
I M
utu
al Fu
nd
s M
arc
h 3
1, 2
014
471,1
55
Marc
h 3
1, 2
013
515,4
98
Bala
nce
s o
uts
tan
din
g a
s at
year
en
ded
Inte
rest
acc
rued
:
Year
en
ded
Nam
e o
f re
late
d p
art
y
Bala
nce
rece
ivab
le a
s at
Bala
nce
paya
ble
as
at
Selli
ng
an
d
dis
trib
uti
on
rece
ivab
le
Trad
e
rece
ivab
le
Ban
k
Bala
nce
s
Fixe
d
Dep
osi
tsG
ratu
ity
Fun
d
Oth
er
Rece
ivab
le
Oth
er
Liab
ility
Selli
ng
an
d
Dis
trib
uti
on
Paya
ble
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SBICAP TRUSTEECOMPANY LIMITED
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To,
The Members,
SBICAP Trustee Company Limited
Your Directors have pleasure in presenting the 9th Annual Report and the Audited Accounts of SBICAP Trustee Company
Limited for the year ended 31st March 2014.
During the year 2013-14, the Company has once again established itself as a prominent player in the Trusteeship
Business/ Market, with a remarkable growth in the business, in terms of number of new assignments as well as revenues.
The Company has bagged 218 new accounts during the year, as against 381 in the previous year. The revenues from
operations during the year at Rs. 2074.46 lakhs were also 39% higher than the figure of Rs. 1495.85 lakhs recorded in the
financial year 2012-13. The Profit after tax at 881.08 lakhs are also higher than previous year’s profit of Rs. 752.00 lakhs.
During the year 2013-14, the Company has made its presence felt and established itself as a prominent player in the
Debenture Trusteeship Business. As on date, the Company has concluded 341 Debenture Trusteeship assignments, which
were secured in spite of tough competition from other players in the market. We are proud to mention that SBICAP Trustee
Company Limited is a preferred Debenture Trustee for many Government Companies/Enterprises for their Debenture
Issues. The noteworthy being appointment of SBICTCL as Debenture Trustee in case of NHAI, IRFC Ltd, NHPC, NPCIL, REC
Ltd, IREDA, etc. Also, as per the instructions from SEBI, the Debenture Trustee portfolio of State Bank of India (SBI) was
successfully transferred to SBICTCL. The Directors of the Company are confident that the Company will establish itself as a
leader in the Debenture Trusteeship business in the days to come.
Your Directors are pleased to inform that the Company’s operations are streamlined and the Company is poised to
improve its market share during the financial year 2014-15. Presently, your Company is undertaking various Corporate
Trusteeship activities viz. Security Trusteeship, Security Agent, Debenture/Bond Trusteeship, Escrow Agent, Escrow
Trusteeship, Share Pledge Trusteeship, etc.
Your Directors are also pleased to inform that SBICTCL has started new line of businesses as per the shareholder’s
approval obtained in the Extraordinary General Meeting held on 8th October 2013. SBICTCL has started offering its
services in the field of AIF Trusteeship. The management is confident that the Company will be able to generate good
business in other trusteeship activities such as Trustee for Private Trust, Will management, ESOP Trustee, etc in the years to
come.
Your Directors further inform you that the New Delhi, Kolkata and Bangalore branches are doing well in new business as
well as in ongoing work relating to the Security Trustee / Debenture Trustee and other Trusteeship assignments. The
management is planning to open further branches at Hyderabad, Chennai and Ahmedabad during the year 2014-15.
With the expected presence across the Country, the Directors are confident that we will be able to reach most of the
Corporate, intermediaries, bankers, etc and will be able to service the clients more efficiently.
During the period under review, the total Business Income of the Company was Rs. 1889.30 lakhs, apart from Other Income of
Rs. 185.16 lakhs. The Company incurred total Expenditure of Rs. 735.84 lakhs, with resultant Profit before Tax of Rs. 1338.63
lakhs before provision for income tax, as against the PBT of Rs. 1114.87 lakhs in the previous year.
During the year, the performance of the Company has been quite satisfactory, considering the growing intense
competition, with extremely low fees quoted by the competitors and offered by clients.
Out of the Current Year’s Profit, the Directors propose that a sum of Rs. 88.11 lakhs be transferred to the General Reserve. The
Directors have proposed a Dividend of Rs. 1.25 per share on the paid-up capital, subject to approval by the Members in the
Annual General Meeting.
The Company has not accepted any deposits from Public, during the year under review.
I. Operations
II. Financial Results
III. Dividend & Transfer to General Reserve
IV. Deposits
Directors' Report For The Year 2013-14
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Directors' Report (contd.)
V. Directors
VI. Directors' Responsibility Statement
VII. Auditors
VIII. Companies (Disclosures of Particulars in the Report of the Board of Directors) Rules, 1988
IX. Particulars of Employees
During the year under review, Mr. V. G. Kannan – MD & CEO, SBI Capital Markets Limited resigned from the Directorship of
the Company and Mr. Abhay Chaudhari – President & COO was inducted in the Board. Also, Mr. V. Muralidharan was
posted as a Chief Executive Officer and Whole-time Director of the Company. Mr. Muralidharan was earlier working as SVP
&Group CFO of SBI Capital Markets Limited and was already on the Board of the Company as a Director.
During the year, as a good Corporate Governance measure, Mr. Dilip K Sheth was inducted on the Board as an
Independent Director. Mr. Sheth is a Chartered Accountant and he also possesses Doctorate in Law. For the past 40 years,
he is practicing in the field of Counseling in International Tax, Foreign Collaboration, etc and many other legal matters.
Also, Mr. J. Chandrasekaran was appointed by SBICAP as its nominee on the SBICTCL Board. He is a Bachelor of Technology
(B.Tech - Chemical) from I.I.T. Madras. He was working with State Bank of India for the past 35 years, in the field of Credit,
Treasury, Forex and many other areas of Banking. He is also representing SBI on the Board of SIDBI.
With the appointment of such reputed persons in the Board of Directors, the Company will be benefitted by their
knowledge and vast experience, which will surely help the Company in the years to come.
Pursuant to Section 217 (2AA) of the Companies Act, 1956, the Directors confirm that:
(i) in the preparation of the annual accounts, the applicable accounting standards have been followed;
(ii) appropriate accounting policies have been selected and applied consistently, and the judgements and estimates
that have been made are reasonable and prudent so as to give a true and fair view of the state of affairs of the
Company as on 31st March 2014 and of the profit or loss of the Company for the year ended 31st March, 2014;
(iii) proper and sufficient care has been taken for the maintenance of adequate accounting records, in accordance with
the provisions of the Companies Act, for safeguarding the assets of the Company and for preventing and detecting
frauds and other irregularities; and
(iv) the annual accounts have been prepared on going concern basis.
The Directors also wish to draw the kind attention of the Shareholders to the Report of the Auditors to the Shareholders
issued by M/s. Sudit K Parekh & Co. - the Statutory Auditors, on the financial accounts for the year ended 31st March 2014.
As per the provisions of the Companies Act, 2013, the Statutory Auditors of the Company may be appointed for a term of
5 years. M/s. Sudit K Parekh & Co., Chartered Accountants, the Statutory Auditors of the Company were appointed in the
8th Annual General Meeting, and hence they are eligible for a term of 5 years. The Companies Act, 2013, provides that
every year the members of the Company may ratify their appointment in the Annual General Meeting.
The Board of Directors, at their 34th Meeting held on 10th April 2014, have recommended for the ratification of the
appointment of M/s. Sudit K. Parikh & Co., Chartered Accountants, as the Statutory Auditors of the Company for the
financial year 2014-15. The Company has received a Certificate/ Consent from M/s. Sudit K. Parikh & Co. to the effect that
their appointment, if made, would be within the limits prescribed under the Companies Act.
In terms of the above Rules issued by the Central Government, the following information is furnished:
Conservation of Energy and Technology Absorption
Since the Company is engaged only in Trusteeship activities, there is no information to report under this head.
Foreign Exchange Earnings and Outgo
During the period under review, the Company has not earned or expended any foreign exchange.
The information, as required under Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of
Employees) Rules, 1975, as amended, is furnished in Annexure ‘A’.
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Directors' Report (contd.)
X. Acknowledgement
The Board is grateful to the State Bank Group and SBICAP & its associates for providing all support to the Company. The
Board also conveys its appreciation to all employees of the Company for their sincere and hardworking these challenging
times and difficult environment.
For and on behalf of the Board of Directors
Sd/- Sd/-
Abhay Chaudhari V. Muralidharan
Director Director
Date: 10th April 2014
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Annexure A
STATEMENT PURSUANT TO SECTION 217(2A) OF THE COMPANIES ACT, 1956, AND THE COMPANIES
(PARTICULARS OF EMPLOYEES) RULES, 1975
(A) Employed throughout the year and in receipt of remuneration aggregating not less than Rs. 60,00,000/- per annum
NIL
(B) Employed for the part of the year and are in receipt of remuneration aggregating not less than Rs. 5,00,000/- per month
NIL
Name
Designation/
Nature of
Duties
Remuneration
(Rs.)
Qualifications
&
Experience
Date of
commencement of
employment
Last Employment
held and
Designation
Age
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Independent Auditor’s Report
To the Members of SBICAP Trustee Company Limited
Report on the Financial Statements
Management’s Responsibility for the Financial Statements
Auditor’s Responsibility
Opinion
Report on Other Legal and Regulatory Requirements
We have audited the accompanying financial statements of SBICAP Trustee Company Limited (“the Company”), which
comprise the Balance Sheet as at March 31, 2014 and the Statement of Profit and Loss and Cash Flow Statement for the year
then ended, and a summary of significant accounting policies and other explanatory information.
Management is responsible for the preparation of these financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in accordance with the Accounting Standards notified under
the Companies Act, 1956 (“the Act”) read with the General Circular No. 15/2013 dated 13September 2013 of the Ministry of
Corporate Affairs in respect of section 133 of the Companies Act, 2013. This responsibility includes the design, implementation
and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true
and fair view and are free from material misstatement, whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require
that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company’s preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used
and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of
the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the explanations given to us, the financial statements give
the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
1. As required by the Companies (Auditor’s Report) Order, 2003 as amended by Companies (Auditor’s Report)
(Amendment) Order, 2004 (together ‘the Order’), issued by the Central Government of India in terms of sub-section (4A) of
section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations, which to the best of our knowledge and belief were
necessary for the purpose of our audit;
b. in our opinion proper books of account as required by law have been kept by the Company so far as appears from
our examination of those books;
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are in agreement
with the books of account;
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d. in our opinion, the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement comply with the
Accounting Standards notified under the Act read with the General Circular No. 15/2013 dated 13 September 2013 of the
Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013; and
e. on the basis of written representations received from the directors as on March 31, 2014, and taken on record by the Board
of Directors, none of the directors is disqualified as on March 31, 2014, from being appointed as a director in terms of
clause (g) of sub-section (1) of section 274 of the Act.
For SUDIT K. PAREKH & CO.
Chartered Accountants
Firm Registration No.: 110512W
(Mayank Lakhani)
Partner
M. No.: 113732
Mumbai, dated: April 10, 2014
Independent Auditor’s Report (contd.)
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Annexure To The Auditor’s Report
(Referred to in our report of even date)
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of
fixed assets.
(b) The fixed assets of the Company have been physically verified by the management during the year and no material
discrepancies between the book records and the physical inventory have been noticed. In our opinion, the frequency
of verification is reasonable.
(c) In our opinion and according to the information and explanations given to us, a substantial part of fixed assets has
not been disposed off by the Company during the year.
(ii) Since the Company is a service provider, the provisions of clause (ii) of paragraph 4 of the Order are not applicable to the
Company.
(iii) (a) As informed, the Company has not granted any loans, secured or unsecured to companies, firms or other parties
covered in the register maintained under section 301 of the Act. Accordingly, the provisions stated in paragraph 4 (iii)
(b), (c) and (d) of the Order are not applicable to the Company.
(b) As informed, the Company has not taken any loans, secured or unsecured from companies, firms or other parties
covered in the register maintained under section 301 of the Act. Accordingly, the provisions stated in paragraph 4 (iii)
(f) and (g) of the Order are not applicable to the Company.
(iv) In our opinion and according to the information and explanations given to us, there exists an adequate internal control
system commensurate with the size of the Company and the nature of its business with regard to purchase of fixed assets
and rendering of services. During the course of our audit, we have not observed any major weakness or continuing failure
to correct any major weakness in the internal control system of the Company.
(v) Based on the audit procedures applied by us and according to the information and explanations provided by the
management, we are of the opinion that there are no transactions required to be entered into the register maintained
under section 301 of the Act.
(vi) In our opinion and according to the information and explanations given to us, the Company has not accepted any
deposits from the public within the meaning of sections 58A and 58AA of the Act and the rules framed there under.
(vii) In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.
(viii) The Central Government of India has not prescribed the maintenance of cost records under clause (d) of sub-section (1) of
section 209 of the Act for any of the products of the Company.
(ix) (a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including provident
fund, investor education and protection fund, income-tax, service tax, excise duty, cess and other material statutory
dues applicable to it.
(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident
fund, income-tax, service tax, excise duty, cess and other undisputed statutory dues were outstanding, at the year
end, for a period of more than six months from the date they became payable.
(c) According to the records of the Company, the dues outstanding of income-tax on account of any dispute are as
follows:
(x) The Company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current
and immediately preceding financial year.
(xi) The Company has not taken any loans from Financial Institutions, Banks and nor has it issued any debentures.
(xii) According to the information and explanations given to us and based on the documents and records produced to us, the
Company has not granted loans & advances on the basis of security by way of pledge of shares, debentures and other
securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, the provisions of clause
(xiii) of paragraph 4 of the Orderare not applicable to the Company.
Name of the
Statute
Period to which the
amount relates
Forum where dispute
is pendingNature of the Dues
Amount
(Rs.)
Income-tax Act, Income Tax 1,910,547/- A.Y. 2012-2013 Assessing Officer,
1961 Income Tax Department
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Annexure To The Auditor’s Report (contd.)
(xiv) The Company has not dealt or traded in shares, securities, debentures and other investments during the year.
(xv) In our opinion and according to the information and explanations given to us, the Company has not given any guarantee
for loans taken by others from banks or financial institutions during the year.
(xvi) The Company has not obtained any term loans during the year.
(xvii) According to the information and explanations given to us and on an overall examination of the Balance Sheet of the
Company, we report that no funds raised on short-term basis have been used for long-term investment.
(xviii) According to the information and explanation given to us, the Company has not made any preferential allotment of
shares to parties and companies covered in the Register maintained under section 301 of the Act.
(xix) According to the information and explanations given to us, no debentures have been issued by the Company during the
year.
(xx) The Company has not raised money by way of public issue during the year.
(xxi) Based on our audit procedures performed and as per the information and explanations given to us by the management,
we report that no fraud on or by the Company has been noticed or reported during the year.
For SUDIT K. PAREKH & CO.
Chartered Accountants
Firm Registration No.: 110512W
(Mayank Lakhani)
Partner
M. No.: 113732
Mumbai; dated: April 10, 2014
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For Sudit K. Parekh & Co. For and on behalf of the Board of Directors
Chartered Accountants
Firm Registration No. 110512W
Abhay C. Chaudhari V.Muralidharan
Director CEO & Whole Time Director
(Mayank Lakhani) Ajit Joshi
Partner Company Secretary
Membership No.: 113732
Place: Mumbai
Date: 10.04.2014
Summary of Significant Accounting Policies 1 & 2
The accompanying notes form an integral part of the financial statements.
As per our attached report of even date
EQUITY AND LIABILITIES
ASSETS
Shareholders' Funds
Share Capital 3 10,000,000 10,000,000
Reserves and Surplus 4 271,650,076 185,004,248
281,650,076 195,004,248
Non-Current Liabilities
Deferred Tax Liabilities (Net) 5 - 117,543
Other Long Term Liabilities 6 852,174 522,172
Long-Term Provisions 7 1,007,709 -
1,859,883 639,715
Current Liabilities
Trade Payables 8 3,168,160 640,593
Other Current Liabilities 9 18,251,252 4,815,116
Short-Term Provisions 10 6,590,597 6,462,438
28,010,009 11,918,147
TOTAL 311,519,968 207,562,110
Non-Current Assets
Fixed Assets 11
(i) Tangible Assets 5,726,369 2,904,674
(ii) Intangible Assets 257,765 354,769
Non-current Investments 12 15,000,000 -
Deferred Tax Assets (Net) 5 2,127,981 -
Long Term Loans and Advances 13 24,859,705 14,875,621
Other non-current assets 14 168,700,000 104,600,000
216,671,820 122,735,064
Current Assets
Trade Receivables 15 38,975,720 19,890,016
Cash and Bank Balances 16 49,413,943 54,989,403
Short Term Loans and Advances 17 6,458,485 9,947,627
94,848,148 84,827,046
TOTAL 311,519,968 207,562,110
Note Ref.As at
31-Mar-14
As at
31-Mar-13
(Amounts in Indian Rupees)
Balance Sheet As At March 31, 2014
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Statement Of Profit And Loss For The Year Ended 31 March, 2014
Particulars
For Sudit K. Parekh & Co. For and on behalf of the Board of Directors
Chartered Accountants
Firm Registration No. 110512W
Abhay C. Chaudhari V.Muralidharan
Director CEO & Whole Time Director
(Mayank Lakhani) Ajit Joshi
Partner Company Secretary
Membership No.: 113732
Place: Mumbai
Date: 10.04.2014
Summary of Significant Accounting Policies 1 & 2
The accompanying notes form an integral part of the financial statements.
As per our attached report of even date
INCOME
EXPENSES
Revenue from Operations 18 188,930,246 136,045,062
Other Income 19 18,516,124 13,539,640
Total Income 207,446,370 149,584,702
Employee Benefit Expenses 20 31,938,506 21,544,044
Depreciation and Amortisation Expenses 11 2,152,147 1,236,786
Administration and Other Expenses 21 38,150,530 15,316,684
Total Expenses 72,241,183 38,097,514
Profit before prior period items and tax 135,205,187 111,487,188
Prior period expense 27 1,342,445 -
Profit before tax 133,862,742 111,487,188
Tax Expense
- Current Tax 48,000,000 36,400,000
- Deferred Tax 5 (2,245,524) (112,358)
Profit after tax for the year 88,108,266 75,199,546
Earnings per equity share:
Basic and diluted 25 88.11 75.20
For the year ended
31 March 2013
For the year ended
31 March 2014Note Ref.
(Amounts in Indian Rupees)
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Cash Flow Statement For The Year Ended 31 March, 2014
For Sudit K. Parekh & Co. For and on behalf of the Board of Directors
Chartered Accountants
Firm Registration No. 110512W
Abhay C. Chaudhari V.Muralidharan
Director CEO & Whole Time Director
(Mayank Lakhani) Ajit Joshi
Partner Company Secretary
Membership No.: 113732
Place: Mumbai
Date: 10.04.2014
As per our attached report of even date
A. CASH FLOW FROM OPERATING ACTIVITIES
B. CASH FLOW FROM INVESTING ACTIVITIES
C. CASH FLOW FROM FINANCING ACTIVITIES
Net Profit Before Prior Period Items and Tax 135,205,187 111,487,188
Adjustment for :-
Depreciation 2,152,147 1,236,786
Provision for Doubtful Debts 6,089,460 602,758
Prior period expense (1,342,445) -
Interest income considered separately (17,903,754) (13,331,547)
Profit on sale of fixed assets considered separately (20,681) (93,453)
Operating Profit before Working Capital Changes 124,179,914 99,901,732
Increase in Trade Receivables (25,175,164) (14,323,840)
Increase in Loans and Advances and Other Current Assets (4,361,568) (664,663)
Increase in Current Liabilities and Provisions 17,099,571 3,662,255
Increase in Long term Liabilities 330,002 137,397
Income Tax paid (49,622,170) (38,666,818)
Net Cash Flow from Operating Activities 62,450,585 50,046,063
Purchase of Fixed Assets (5,034,885) (2,214,671)
Interest received 17,392,550 4,285,958
Proceeds from sale of fixed assets 178,728 341,132
Purchase of investments (15,000,000) -
Fixed Deposits placed during the year (164,500,000) (94,889,496)
Fixed Deposits matured during the year 125,937,896 45,089,496
Net Cash used in Investing Activities (41,025,711) (47,387,581)
Dividend & Dividend Distribution Tax Paid (1,462,438) (1,162,225)
Net Cash used in Financing Activities (1,462,438) (1,162,225)
Net change in Cash & Cash Equivalents (A+B+C) 19,962,436 1,496,257
Opening Balance of Cash & Cash Equivalents 4,551,507 3,055,250
Closing Balance of Cash & Cash Equivalents 24,513,943 4,551,507
For the year ended
31 March 2013
For the year ended
31 March 2014
(Amounts in Indian Rupees)
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Notes To Financial Statements
1. Company background:
2. Significant accounting policies:
thThe Company was incorporated on 28 December 2005 as a wholly owned subsidiary of SBI Capital Markets Limited and is
registered with Securities and Exchange Board of India (SEBI) as a Debenture Trustee. The Company has been providing
services to various types of Borrowers and Investors for getting funds from lenders and debenture issuers.
The Company carries out various corporate trusteeship activities viz. security trusteeship, debenture trusteeship, security
agent, share pledge trusteeship, safe custody of documents etc.
2.1 Basis of Preparation of Financial Statements:
The financial statements of the Company have been prepared in accordance with generally accepted accounting
principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects
with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956 (which continue to be applicable in respect of Section 133 of the
Companies Act, 2013 in terms of General Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate
Affairs). The financial statements have been prepared under the historical cost convention on an accrual basis, except in
case of assets for which provision for impairment is made and revaluation is carried out. The accounting policies have
been consistently applied by the Company and are consistent with those used in the previous year.
2.2 Use of estimates:
The preparation of the financial statements in conformity with generally accepted accounting principles (GAAP) requires
management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and
expenses and disclosure of contingent liabilities on the date of the financial statements. The estimates and assumptions
used in the accompanying financial statements are based upon management's evaluation of the relevant facts and
circumstances as of the date of the financial statements. Actual results may differ from the estimates and assumptions
used in preparing the accompanying financial statements. Any revision to accounting estimates is recognized
prospectively in current and future periods.
2.3 Recognition of Revenue:
Trusteeship Acceptance Fees are recognized on the acceptance of trusteeship assignment.
Trusteeship Service Charges are recognized / accrued on the basis of terms of Trusteeship Contracts / Agreements entered
into with clients.
Interest income is accounted for on time proportion basis taking into account the amount outstanding and the rate
applicable.
Dividend income is recognized when the right to receive dividend is established.
2.4 Fixed Assets and Depreciation:
Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation and impairment loss, if any.
Cost comprises the purchase price and any attributed cost of bringing the asset to its working condition for its intended
use.
The Company provides depreciation on fixed assets, other than laptops mobile phones and leasehold improvements, on
Written Down Value Method, at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956, on a
pro-rata basis.
Depreciation on laptops and mobile phones is provided on Straight Line Method, at 33.33% per annum on a pro-rata
basis.
The Leasehold Improvements are written-off over the remaining period of lease.
Assets individually costing less than Rs.5,000/- are fully depreciated in the year of acquisition.
(Amounts are in Indian Rupees, unless stated otherwise)
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Notes To Financial Statements (contd.)
2.5 Impairment:
The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on
internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable
amount. The recoverable amount is the greater of the asset's net selling price and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value at the weighted average cost of capital.
After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life
2.6 Foreign currency transactions:
Transactions in foreign currencies are recorded at the prevailing rate at the date of the transactions. At the year end, monetary
assets and liabilities denominated in foreign currencies are translated at the rates of exchange prevailing at the balance sheet
date. All foreign exchange gains and losses are taken to the statement of profit and loss.
2.7 Investments:
Investments are classified into Current Investments and Non-current Investments.
Current investments are stated at cost or net realisable value, whichever is lower.
Non-current investments are stated at cost. Provision for diminution is made to recognise a diminution, other than temporary,
determined separately for each individual investment.
2.8 Employee Benefits:
Short term employee benefits
All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee
benefits. Undiscounted value of benefits such as salaries and incentives are recognized in the year in which the employee
renders the related service.
Long term employee benefits
(i) Defined contribution plans
The Company contributes to the employees approved provident fund scheme. The Company’s contribution paid or
payable under the scheme is recognized as an expense in the statement of profit and loss during the year in which the
employee renders the related service.
(ii) Defined benefit plans
The Company's gratuity scheme is a defined benefit plan. The Company makes annual contributions to funds
administered by LIC. The amount of contribution is determined by the LIC on the basis of actuarial valuation. Long term
compensated absences are provided for, based on actuarial valuation as determined by an independent actuary.
The actuarial valuation is based on projected unit credit method. The liability is measured at the present value of the
estimated future cash flows. The discount rate used for determining the present value of future obligation under the
defined benefit plan, is based on the market yield on government securities as at the balance sheet date. Actuarial gains
and losses are recognized immediately in the statement of profit and loss.
2.9 Leases:
Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets are classified
as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on a straight
line basis over the lease term.
2.10 Earnings Per Share:
Basic and diluted earnings per share are reported in accordance with AS 20, “Earnings Per Share”. Basic earnings per equity
share have been computed by dividing net profit after tax by weighted average number of equity shares outstanding for the
year. Diluted earnings per equity share have been computed using the weighted average number of equity shares and dilutive
potential equity shares outstanding during the year.
(Amounts are in Indian Rupees, unless stated otherwise)
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Notes To Financial Statements (contd.)
2.11 Income taxes:
Tax expense comprises current and deferred taxes. Current income tax is measured at the amount expected to be paid to the
tax authorities in accordance with the Income Tax Act. Deferred income taxes reflect the impact of current year timing
differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.
Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.
Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will
be available against which such deferred tax assets can be realized. Deferred tax assets are recognized on carry forward of
unabsorbed depreciation and tax losses only if there is virtual certainty supported by convincing evidence that such deferred
tax assets can be realized against future taxable profits.
At each balance sheet date the Company re-assesses unrecognised deferred tax assets. It recognizes deferred tax assets to the
extent that it has become reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
The carrying amount of deferred tax assets are reviewed at each balance sheet date. The company writes-down the carrying
amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that
sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write-down is
reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable
income will be available.
2.12 Provisions & Contingent Liabilities:
A provision is recognized when an enterprise has a present obligation as a result of a past event and it is probable that an
outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are
not discounted to the present value and are determined based on the best estimate required to settle the obligation at the
balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be
confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the
company or when there is a present obligation that arises from past events where it is either not probable that an outflow of
resources will be required to settle or a reliable estimate of the amount cannot be made.
2.13 Segment Reporting:
As the Company’s business activity falls within a single primary business segment namely, Corporate Trusteeship Activities, and
a single geographical segment, i.e. India, the disclosure requirement of Accounting Standard 17 on Segment Reporting as
under Companies (Accounting Standards) Rules, 2006 is not applicable.
2.14 Cash and Cash Equivalents:
Cash and cash equivalents in the Balance Sheet comprise cash at bank and in hand, cheques in hand and short-term
investments with an original maturity of three months or less.
2.15 Provision for Doubtful Debts:
Provision for doubtful debts is made in the accounts based on the following management estimate:
Debts outstanding for period of Provisions for doubtful debts
More than 6 months but not exceeding 12 months 10%
More than 12 months 100%
(Amounts are in Indian Rupees, unless stated otherwise)
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Notes To Financial Statements (contd.)
22. Auditor's Remuneration (excluding service tax):
ParticularsFor the year ended
31-Mar-14
For the year ended
31-Mar-13
As Statutory Auditor 150,000 150,000
As Tax Auditor 60,000 60,000
Other Services 35,000 30,000
23. Foreign currency expenditure and earnings:
ParticularsFor the year ended
31-Mar-14
For the year ended
31-Mar-13
a. Expenditure in Foreign Currency Nil Nil
b. Earning in Foreign Currency Nil 393,656
24. Related Party Information:
(i) Relationships:-
Where control exists: -
A Name of Party Relationship
State Bank of India Ultimate Holding Company
SBI Capital Markets Ltd. Holding Company
B Fellow Subsidiary and Associates Relationship
SBICAP Ventures Ltd. Fellow Subsidiary
SBICAP Securities Ltd. Fellow Subsidiary
SBICAP (UK) Limited Fellow Subsidiary
SBICAP (Singapore) Limited Fellow Subsidiary
State Bank of Patiala Associate of State Bank of India
State Bank of Bikaner and Jaipur Associate of State Bank of India
C Key Management Personnel Designation
Mr. V. Muralidharan CEO & Whole Time Director (from 07.11.2013)
Mr. Vishwas Pathak Sr. Vice President & COO.
(Amounts are in Indian Rupees, unless stated otherwise)
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Notes To Financial Statements (contd.)
(iii) Details of transactions with Related Parties are as follows: -
Name of the Related
Party
For the year ended
31-Mar-14
For the year ended
31-Mar-13
SBI Capital Markets Ltd Payments made on behalf of the Company & 10,414,335 373,759
reimbursed
State Bank of India Royalty expenses 2,669,095 -
(Corporate Office) Reimbursement of expenses 730,407 -
Trade payables 2,732,085 -
State Bank of India Interest Income 1,478,617 23,946
(Cuffe Parade Branch, Fixed Deposits Balance 81,500,000 228,425
Mumbai) Accrued Interest on Fixed Deposits 1,315,682 43,048
State Bank of India Interest Income 13,713,520 12,743,173
(Fort Branch, Mumbai) Bank Balances 18,137,198 4,549,507
Fixed Deposits Balance 93,800,000 132,009,471
Accrued Interest on Fixed Deposits 10,157,207 13,366,661
Bank charges 20,292 10,591
State Bank of Bikaner Interest Income 1,603,193 547,386
and Jaipur Fixed Deposits Balance 16,500,000 16,500,000
(Fort Branch, Mumbai) Accrued Interest on Fixed Deposits 1,935,516 492,644
State Bank of Patiala Interest Income 604,782 17,042
(Colaba Branch, Mumbai) Fixed Deposits Balance 6,300,000 6,300,000
Accrued Interest on Fixed Deposits 559,640 15,337
SBI Cards & Payment Trusteeship Acceptance Fees 75,000 100,000
Services Pvt. Ltd. Trusteeship Service Charges 75,000 38,014
Trade Receivables 84,270 156,072
SBI Global Factors Ltd. Trusteeship Service Charges 36,448 -
Mr. Vishwas Pathak Gross Remuneration including allowances, 5,422,297 4,119,127
perquisites and contribution to Provident Fund
Gratuity payment made 318,482 -
Mr. V. Muralidharan Gross Remuneration including allowances, 1,166,687 -
perquisites and contribution to Provident Fund
Note: -
Related party relationships on the basis of Accounting Standard 18 as in (i) above are as given by the Company and relied upon
by the Auditors.
25. Earnings per equity share:
ParticularsFor the year ended
31-Mar-14
For the year ended
31-Mar-13
a. (Profit / Loss) attributable to equity shareholders’ (Rs.) 88,108,266 75,199,546
b. Weighted average number of equity shares outstanding during 1,000,000 1,000,000
the period (Nos.)
c. Basic/Diluted Earnings per equity share (a/b) (Rs.) 88.11 75.20
d. Face value of each equity share (Rs.) 10 10
(Amounts are in Indian Rupees, unless stated otherwise)
Particulars
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Notes To Financial Statements (contd.)
26. Deferred Tax:
Components of Net Deferred Tax Assets / (Liabilities) are as under:
ParticularsAs at
31-Mar-14
As at
31-Mar-13
Deferred Tax Asset
Provision for Doubtful Debts 2,069,807 195,565
Provisions for Long-term and Short-term Compensated Absences 386,082
Total 2,455,889 195,565
Deferred Tax Liability
Fixed Assets (Depreciation) 327,908 313,108
Net Deferred Tax Assets / (Liabilities) 2,127, 981 (117,543)
27. Employee Benefits:
Defined Contribution Plan
Employee Benefit Expenses includes Rs. 1,052,491 (PY: Rs. 737,048) recognized as an expense during the year in respect of
defined contribution plan.
Defined Benefit Plan
Gratuity:
The Company has adopted the Group Gratuity Scheme of Life Insurance Corporation of India and annual contributions,
determined by using actuarial valuation technique, have been paid to the scheme. Details of the same, to the extent available
from LIC of India, are as follows:
Valuation Method: Projected Unit Credit Method
Actuarial Assumptions
The estimates of future salary increases, considered in actuarial valuation, take into account inflation, seniority, promotion and
other relevant factors.
ParticularsFor the year ended
31-Mar-14
For the year ended
31-Mar-13
Mortality Rate LIC (1994-96) LIC (1994-96)
ultimate ultimate
Withdrawal Rate 1% to 3% 1% to 3%
depending on age depending on age
Discount Rate 8% p.a. 8% p.a.
Salary Escalation 7% 4%
ParticularsFor the year ended
31-Mar-14
For the year ended
31-Mar-13
Present value of obligation, as at the beginning of the year 612,237 321,616
Change in present value of past service benefit 23,600 113,512
Current service cost 226,244 177,109
Actual benefits paid (318,482) -
Present value of obligation, as at the end of the year 543,599 612,237
Change in defined benefit obligation
(Amounts are in Indian Rupees, unless stated otherwise)
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Notes To Financial Statements (contd.)
ParticularsFor the year ended
31-Mar-14
For the year ended
31-Mar-13
Fund value at the beginning of the year 612,237 321,616
Actual return on plan assets 31,624 20,891
Contribution by the Company 228,254 269,730
Actual benefits paid (318,482) -
Fund value at the end of the year 553,633 612,237
Change in plan assets
ParticularsAs at
31-Mar-14
As at
31-Mar-13
Asset (net) recognized in the Balance Sheet 10,034 -
Amount recognized in the Balance Sheet
ParticularsFor the year ended
31-Mar-14
For the year ended
31-Mar-13
Change in present value of past service benefit 23,600 113,512
Current service cost 226,244 177,109
Actual return on plan assets (31,624) (20,891)
LIC Premium 10,686 10,683
Net cost 228,906 280,413
Amount recognized in the Statement of Profit & Loss
Other employee benefits:
Other employee benefits comprise provision for long-term and short-term compensated absences (Sick Leave and Privilege
Leave). Actuarial assumptions used for determining the liability in respect of these benefits are as follows:
The Company has provided for long-term and short-term compensated absences, based on actuarial valuation, for the first
time during the year ended 31 March 2014. Out of the total leave expense of Rs.2,502,632 debited to the Statement of Profit
and Loss during the year, Rs.1,342,445 pertains to provision for earlier years omitted to be accrued in the books of account of
the Company. Accordingly, the same has been disclosed as prior period expense in the Statement of Profit and Loss for the year
ended 31 March 2014.
ParticularsFor the year ended
31-Mar-14
For the year ended
31-Mar-13
Discount rate 8.80% 8.05%
Rate of increase in compensation levels 8% 8%
(Amounts are in Indian Rupees, unless stated otherwise)
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Notes To Financial Statements (contd.)
28. Operating Lease:
Where the Company is a lessee:
Rent
The Company has entered into various agreements for lease of office spaces which expire over a period upto April 2016. Gross
rental expenses for the year ended 31 March 2014 aggregate to Rs.14,857,391 (31 March 2013 - Rs.6,445,520).
Minimum obligation on lease rentals payable as per the lease agreement is as under:-
ParticularsAs at
31-Mar-14
As at
31-Mar-13
Not later than one year 7,830,400 3,151,920
Later than one year but not later than five years Nil 2,947,120
Above five years Nil Nil
Amount recognized in the Balance Sheet
29. Managerial Remuneration:
(i) The Whole Time Director & Chief Executive Officer is on secondment from SBI and his remuneration, which is in
accordance with the service rules of SBI, has been charged in the books of account.
(ii) Remuneration, including allowances, to CEO & Whole Time Director (since November 7, 2013):
ParticularsFor the year ended
31-Mar-14
For the year ended
31-Mar-13
Salary and bonus 825,239 Nil
Contribution to provident and pension funds 172,596 Nil
Perquisites 86,895 Nil
Other allowances 81,957 Nil
Total 1,166,687 Nil
As the future liability for gratuity and compensated leave absences is provided on actuarial basis for the Company as a whole,
the amount pertaining to the directors is not ascertainable and therefore not included above.
There is no commission payable to any director of the Company. Consequently, the computation of profits as required under
Section 349 of the Companies Act, 1956 has not been included.
ParticularsAs at
31-Mar-14
As at
31-Mar-13
Income tax demand under dispute (AY 2012-13) 1,910,547 Nil
30. Contingent Liabilities and Commitments :
31. Trade Receivables:
Trade Receivables balances as on 31 March 2014 are subject to confirmation and reconciliation, if any. However, the
management does not expect any material variation.
(Amounts are in Indian Rupees, unless stated otherwise)
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Notes To Financial Statements (contd.)
32. Under Micro, Small and Medium Enterprises Development Act, 2006 which came into force from 2 October 2006, certain
disclosures are required to be made relating to Micro, Small and Medium Enterprises. Accordingly, information relating to
disclosure under the said Act has been given only to the extent such information is readily available with the Company. This
information has been relied upon by the auditors.
33. Previous year figures have been regrouped/reclassified/restated to correspond with the figures of the current year.
As per our attached report of even date For and on behalf of the Board of Directors
For Sudit K. Parekh & Co.
Chartered Accountants
Firm Registration No. 110512W
Abhay C. Chaudhari V. Muralidharan
Director CEO & Whole Time
Director
(Mayank Lakhani)
Partner
Membership No. 113732 Ajit Joshi
Company Secretary
Place: Mumbai
Date: 10.4.2014
(Amounts are in Indian Rupees, unless stated otherwise)
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Notes To The Balance Sheet As At 31 March, 2014
As at
31 March 2013
As at
31 March 2014Particulars
NOTE "3"
SHARE CAPITAL
NOTE "4"
RESERVES AND SURPLUS
Authorised Capital
20,00,000 (previous year 20,00,000) Equity Shares of Rs.10/- each 20,000,000 20,000,000
20,000,000 20,000,000
Issued, Subscribed and Paid up capital
10,00,000 (previous year 10,00,000) Equity Shares of Rs. 10/- each fully paid up 10,000,000 10,000,000
at par. [10,00,000 Equity shares (previous year 10,00,000) of Rs.10/- each
fully paid are held by SBI Capital Markets Limited, the Holding Company.]
TOTAL 10,000,000 10,000,000
Details of shareholder holding more than 5% shares is set out below :
SBI Capital Markets Limited
No. of Shares held 999,880 999,880
% of shareholding 99.99 99.99
Reconciliation of the number of shares outstanding is set out below:
Number of shares at the beginning 1,000,000 500,000
Add: Bonus Shares issued on captialisation of reserves - 500,000
Number of shares at the end 1,000,000 1,000,000
Aggregate number of bonus shares issued during the period of five years immediately preceding the balance sheet
date
During the five-year period ended 31 March 2014, 950,000 (Previous year: 950,000) equity shares of Rs. 10 each, fully paid
up have been allotted as bonus shares by capitalisation of general reserve.
General reserve
Opening balance 10,214,210 7,694,255
Add: Transferred from surplus in the Statement of Profit & Loss 8,810,827 7,519,955
Less: Utilised for issue of bonus shares - (5,000,000)
19,025,037 10,214,210
Surplus/(Deficit) in Statement of Profit and Loss
Opening Balance 174,790,038 108,572,885
Add: Net profit after tax transferred from Statement of Profit & Loss 88,108,266 75,199,546
Amount available for appropriation 262,898,304 183,772,431
Appropriations:
Final Dividend 1,250,000 1,250,000
Tax on Dividend 212,438 212,438
Transfer to General reserve 8,810,827 7,519,955
Net Surplus/(Deficit) in the Statement of Profit and Loss 252,625,039 174,790,038
TOTAL 271,650,076 185,004,248
As at
31 March 2013
As at
31 March 2014Name of shareholder
As at
31 March 2013
As at
31 March 2014Particulars
(Amounts in Indian Rupees)
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Notes To The Balance Sheet As At 31 March, 2014 (contd.)
As at
31 March 2013
As at
31 March 2014
NOTE "5"
DEFERRED TAX (LIABILITIES) / ASSETS [NET]
NOTE "6"
OTHER LONG TERM LIABILITIES
NOTE "7"
LONG TERM PROVISIONS
NOTE "8"
TRADE PAYABLES
NOTE "9"
OTHER CURRENT LIABILITIES
NOTE "10"
SHORT TERM PROVISIONS
(a) Deferred Tax Assets
Provision for Doubtful Debts 2,069,807 195,565
Provision for Long-term and Short-term Compensated Absences 386,082 -
2,455,889 195,565
(b) Deferred Tax Liabilities
Fixed Assets (Depreciation) 327,908 313,108
327,908 313,108
NET DEFERRED TAX (LIABILITIES) / ASSETS 2,127,981 (117,543)
Trust Settlement Fees 462,197 322,197
Retention monies 389,977 199,975
TOTAL 852,174 522,172
Provision for employee benefits:
Provision for Long-term Compensated Absences 1,007,709 -
TOTAL 1,007,709 -
Trade Payables to Micro, Small and Medium Enterprises (Refer note 32) - -
Others 3,168,160 640,593
TOTAL 3,168,160 640,593
Advances received from customers - 600,000
Advances received for CERSAI & Others 16,106,769 1,787,430
Income received in advance 617,129 1,696,366
Other Payables
(a) Statutory dues 882,296 309,291
(b) Provision for expenses 575,383 387,391
(c) Retention monies 36,975 9,938
(d) Trust Settlement Fees 31,700 24,700
(e) Other payables 1,000 -
TOTAL 18,251,252 4,815,116
Provision for employee benefits:
Performance linked variable pay 5,000,000 5,000,000
Provision for Short-term Compensated Absences 128,159 -
Proposed Dividend 1,250,000 1,250,000
Tax on Proposed Dividend 212,438 212,438
TOTAL 6,590,597 6,462,438
Particulars
(Amounts in Indian Rupees)
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I.Tan
gib
le A
ssets
Su
b-t
ota
l
II. In
tan
gib
le A
ssets
Su
b-t
ota
l
1.
Lease
ho
ld Im
pro
vem
en
ts -
6
44,0
00
-
644,0
00
-
184,1
78
-
184,1
78
459,8
22
-
2.
Co
mp
ute
rs:
Co
mp
ute
rs o
ther
than
Lap
top
s 1
,142,6
75
1,0
15,7
58
-
2,1
58,4
33
488,9
01
431,3
75
-
920,2
76
1,2
38,1
57
653,7
74
Lap
top
s 2
,422,9
38
1,4
52,5
20
438,5
41
3,4
36,9
17
1,0
63,1
00
888,9
19
306,6
96
1,6
45,3
23
1,7
91,5
94
1,3
59,8
38
3.
Off
ice E
qu
ipm
en
ts:
O
ffic
e E
qu
ipm
en
t (o
ther
than
mo
bile
ph
on
e h
an
dse
ts)
576,5
50
562,0
51
-
1,1
38,6
01
180,0
40
96,4
37
-
276,4
77
862,1
24
396,5
10
Off
ice E
qu
ipm
en
t (m
ob
ile p
ho
ne h
an
dse
ts )
452,4
28
120,9
00
51,8
61
521,4
67
146,0
11
181,4
45
25,6
59
301,7
97
219,6
70
306,4
17
4.
Furn
itu
re &
Fix
ture
s 3
17,0
82
1,1
47,6
82
-
1,4
64,7
64
128,9
47
205,4
90
-
334,4
37
1,1
30,3
27
188,1
35
5.
Air
Co
nd
itio
ners
-
26,9
44
-
26,9
44
-
2,2
69
-
2,2
69
24,6
75
-
4,9
11
,67
3
4,9
69
,85
5
49
0,4
02
9
,39
1,1
26
2
,00
6,9
99
1
,99
0,1
13
3
32
,35
5
3,6
64
,75
7
5,7
26
,36
9
2,9
04
,67
4
1. C
om
pu
ter
So
ftw
are
518,3
12
65,0
30
-
583,3
42
269,9
89
119,4
56
389,4
45
193,8
97
248,3
23
2. W
eb
sit
e h
ost
ing
210,0
00
-
-
210,0
00
103,5
54
42,5
78
146,1
32
63,8
68
106,4
46
72
8,3
12
6
5,0
30
-
79
3,3
42
3
73
,54
3
16
2,0
34
-
53
5,5
77
2
57
,76
5
35
4,7
69
Tota
l 5
,63
9,9
85
5
,03
4,8
85
4
90
,40
2
10
,18
4,4
68
2
,38
0,5
42
2
,15
2,1
47
3
32
,35
5
4,2
00
,33
4
5,9
84
,13
4
3,2
59
,44
3
Pre
vio
us
Year
3,8
98
,41
9
2,2
14
,67
1
47
3,1
05
5
,63
9,9
85
1
,36
9,1
82
1
,23
6,7
86
2
25
,42
6
2,3
80
,54
2
3,2
59
,44
3
AS A
T
AD
DIT
ION
SD
ELE
TIO
NS
AS A
T
UP
TO
FOR
TH
EO
N
UP
TO
AS A
TA
S A
T
31.0
3.2
013
31.0
3.2
014
31.0
3.2
013
YEA
RD
ELE
TIO
N31.0
3.2
014
31.0
3.2
014
31.0
3.2
013
NO
TE "
11
"
GR
OS
S B
LOC
KD
EP
REC
IAT
ION
& A
MO
RT
IZA
TIO
NN
ET
BLO
CK
Part
icu
lars
Fixed Assets As At 31 March, 2014
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Notes To The Balance Sheet As At 31 March, 2014 (contd.)
As at
31 March 2013
As at
31 March 2014
NOTE "12"
NON - CURRENT INVESTMENTS
NOTE "13"
LONG TERM LOANS AND ADVANCES
NOTE "14"
OTHER NON - CURRENT ASSETS
NOTE "15"
TRADE RECEIVABLES
Bonds (quoted)
15,000 (2013: Nil) @8.01% tax free bonds of India Infrastructure 15,000,000 -
Finance Company Ltd of Rs.1,000/- each fully paid-up
TOTAL 15,000,000 -
Market value of quoted investment 12,924,000 -
Book value of quoted investment 15,000,000 -
Cost of quoted investment 15,000,000 -
(Unsecured and considered good unless otherwise stated)
Advance Income Tax (Net of Provisions) 7,495,476 5,873,306
Prepaid Expenses 262,540 -
Rental & Other Deposits 7,541,260 3,905,260
Accrued Interest on Fixed Deposits * 9,099,580 5,097,055
Accrued Interest on Investment (IIFCL Tax Free Bonds) 460,849 -
TOTAL 24,859,705 14,875,621
*Refer note 24 for related party disclosures
Other Bank Balance*
In Fixed Deposits (with maturity of more than 12 months from 168,700,000 104,600,000
the date of Balance sheet)
TOTAL 168,700,000 104,600,000
*Refer note 24 for related party disclosures
(Unsecured)
Debts Outstanding for period exceeding six months
- Considered Good 12,339,308 5,424,807
- Considered Doubtful 6,776,710 687,250
19,116,018 6,112,057
Less: Provision for doubtful debts 6,776,710 687,250
12,339,308 5,424,807
Others
- Considered Good 26,636,412 14,465,209
- Considered Doubtful - -
26,636,412 14,465,209
TOTAL 38,975,720 19,890,016
Particulars
(Amounts in Indian Rupees)
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Notes To The Balance Sheet As At 31 March, 2014 (contd.)
As at
31 March 2013
As at
31 March 2014
NOTE "16"
CASH AND BANK BALANCES
NOTE "17"
SHORT TERM LOANS & ADVANCES
Cash and Cash Equivalents
- Cash on hand 4,166 2,000
- Cheques in hand 1,872,579 -
- Balances with Banks*
In Current Account 1,927,359 2,762,077
In Current Account - Escrow accounts 16,209,839 1,787,430
In Deposit accounts (with maturity of less than 3 months) 4,500,000 -
Other Bank Balances*
In Fixed Deposits (with maturity of less than 12 months) 24,900,000 50,437,896
TOTAL 49,413,943 54,989,403
*Refer note 24 for related party disclosures
(Unsecured, Considered Good)
Balance with Government authorities:
Cenvat Credit Receivable 555,262 115,845
Service Tax paid in advance - 208,387
Others:
Prepaid Expenses 219,601 372,242
Expenses Recoverable from customers 806,393 430,518
Accrued Interest on Fixed Deposits * 4,868,465 8,820,635
Advance Paid to Suppliers 8,764 -
TOTAL 6,458,485 9,947,627
*Refer note 24 for related party disclosures
Particulars
(Amounts in Indian Rupees)
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Notes To The Statement of Profit And Loss For The Year Ended 31 March, 2014
As at
31 March 2013
As at
31 March 2014Particulars
NOTE "18”
REVENUE FROM OPERATIONS
NOTE "19”
OTHER INCOME
NOTE "20”
EMPLOYEE BENEFIT EXPENSES
NOTE "21”
ADMINISTRATION AND OTHER EXPENSES
Trusteeship Acceptance Fees 44,739,000 27,767,519
Trusteeship Service Charges 144,191,246 108,277,543
TOTAL 188,930,246 136,045,062
Interest Income 17,903,754 13,331,547
Miscellaneous Income 591,689 114,640
Profit on Sale of Fixed Asset 20,681 93,453
TOTAL 18,516,124 13,539,640
Employee Salary, Allowances and Benefits 27,819,673 19,728,341
Contribution to Gratuity Fund 228,906 280,413
Contribution to Provident Fund (Employer's) 1,052,491 737,048
Leave Expenses 1,160,187 -
Staff Welfare Expenses 1,677,249 798,242
TOTAL 31,938,506 21,544,044
Rent 14,965,339 6,485,468
Rates & Taxes 266,704 141,644
Insurance 149,858 143,985
Legal and Professional Fees 2,816,664 2,475,116
Payment to Auditor
a) for statutory audit 150,000 150,000
b) for tax audit 60,000 60,000
c) other services 35,000 30,000
Printing and Stationery 629,212 283,626
Conveyance 2,496,098 1,352,990
Advertisement and business development charges 1,598,016 295,535
Electricity Charges 1,451,759 620,212
House Keeping & Security Expenses 1,273,890 544,483
Repairs and Maintenance 1,241,051 396,592
Royalty Expenses 2,669,095 -
SEBI Application & Registration Fees 252,802 333,029
Communication Expenses 1,038,605 871,941
Provision for Doubtful Debts 6,089,460 602,758
Bad Debt - 183,617
Miscellaneous Expenses 966,977 345,688
TOTAL 38,150,530 15,316,684
(Amounts in Indian Rupees)
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Directors' Report For The Year 2013 -14
To,
The Members,
thYour Directors have pleasure in presenting the 9 Annual Report and the Audited Accounts of SBICAP Ventures Limited for stthe year ended 31 March 2014.
During the year under review, the Company has made a net loss of Rs. 34,75,948/- due to payment of stamp duty and
registration charges for increase of the authorised capital from Rs. 25 crs to Rs. 100 crs and employee cost.
The Authorised Capital of the Company was increased from Rs. 25 crs to Rs. 100 crs as the Company is in the process of acting
as Sponsor/Asset Management Company for Alternative Investment Funds being set up with DFID and SBI Mutual Fund.
No dividend is proposed for the Financial Year 2013-14.
The Company has not accepted any deposits from Public during the year under review.
During the year under review, the following changes took place among Directors of the Company :-
nd• Smt. Arundhati Bhattacharya resigned as Director w.e.f. 2 August, 2013 consequent to her resignation as Managing ndDirector & CEO of SBI Capital Markets Ltd. with effect from the close of business hours on 2 August, 2013.
st• Shri Abhay C. Chaudhari was appointed as Director w.e.f. 31 October, 2013, in terms of Article 148(iii) of the Articles of
Association of the Company.
th•? Shri Rajat Misra was appointed as Director w.e.f. 18 December, 2013, in terms of Article 148(v) of the Articles of
Association of the Company.
The Board places on record its deep appreciation of the valuable contributions made by Smt. Arundhati Bhattacharya during
her tenure as Chairman and Director and extends a hearty welcome to Shri Abhay C. Chaudhari and Shri Rajat Misra as
Directors of the Company.
thFurther, consequent to appointment of Shri V.G. Kannan as Managing Director & CEO of SBICAP w.e.f. 8 October, 2013, he
now holds the office as ex-officio Director and also as ex-officio Chairman of the Company in terms of Article 148(ii) of the
Articles of Association of the Company.
thShri V. G. Kannan and Shri Rajat Misra, Directors, will retire by rotation at the ensuing 9 Annual General Meeting. Shri V. G.
Kannan, being eligible, has offered himself for re-appointment as Director liable to retire by rotation. Shri Rajat Misra, being
eligible, has offered himself for re-appointment as Director liable to retire by rotation.
Pursuant to Section 217 (2AA) of the Companies Act, 1956, the Directors confirm that :-
(i) in the preparation of the annual accounts, the applicable accounting standards have been followed;
(ii) appropriate accounting policies have been selected and applied consistently, and judgements and estimates that have stbeen made are reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company as on 31
stMarch 2014, including the profit or loss of the Company for the year ended 31 March, 2014;
(iii) proper and sufficient care has been taken for maintenance of adequate accounting records in accordance with the
provisions of the Companies Act for safeguarding the assets of the Company and for preventing and detecting fraud
and other irregularities; and
(iv) the annual accounts have been prepared on a going concern basis.
I. Financial Results
III. Dividend
IV. Deposits
V. Directors
VI. Directors' Responsibility Statement
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The Directors also wish to draw the attention of the Shareholders to the Report of the Auditors to the Shareholders by
M/s. D.S.K. & Associates, the Statutory Auditors, on the financial accounts for the year ended March 31, 2014.
thM/s. D. S. K. & Associates, Chartered Accountants, who are the Company's Statutory Auditors, retire at the conclusion of the 9 th thAnnual General Meeting of the Company. The Board of Directors, at its 37 Meeting held on 12 April, 2014, has recommended
for re-appointment of M/s. D. S. K. & Associates, Chartered Accountants, as the Statutory Auditors of the Company to hold th thoffice from the conclusion of the 9 Annual General Meeting upto the conclusion of the 10 Annual General Meeting of the
Company. The Company has received a Certificate from M/s. D.S.K. & Associates to the effect that their appointment, if made,
would be within the limits prescribed under Section 224(1B) of the Companies Act, 1956/Section 139 of the Companies Act
2013.
In terms of the above Rules issued by the Central Government, the following information is furnished :-
Conservation of Energy and Technology
Absorption since the Company has not undertaken business activities during the year under review, there is no
information to report under this head.
Foreign Exchange Earnings and Outgo
During the year under review, the Company has neither earned nor expended any foreign exchange.
There is no information to report in terms of the Companies (Particulars of Employees) Rules, 1975.
The Board is grateful to State Bank of India and to the SBICAP family for providing every support during the year.
For and on behalf of the Board of Directors
(V. G. Kannan) (Abhay C. Chaudhari)
Chairman Director
Place : Mumbai,
Date : 12th April, 2014
VII. Auditors
VIII. Companies (Disclosures of Particulars in the Report of the Board of Directors) Rules, 1988
IX. Particulars of Employees
X. Acknowledgement
Directors' Report (contd.)
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Independent Auditor's Report For Year 2013-14
We have audited the accompanying financial statements of SBICAP Ventures Limited ('the Company'), which comprise the Balance Sheet as at 31March 2014 and the Statement of Profit and Loss and Cash flow statement for the year ended, a summary
of significant accounting policies and other explanatory information.
Management is responsible for the preparation of these financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956 (“the Act”). This responsibility includes the design, implementation,
maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and
fair view and are free from material mis-statement, whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require
that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material mis-statement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company's preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the explanations given to us, the financial statements give
the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014;
b) in the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
1. As required by the Companies (Auditor's Report) Order, 2003 (“the Order”) issued by the Central Government of India in
terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the best of our knowledge and belief were necessary
for the purposes of our audit;
b. in our opinion, proper books of account as required by law have been kept by the Company so far as appears from
our examination of those books;
a) the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement
with the books of account.
b) in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the
Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956;
c) on the basis of written representations received from the directors as on March 31, 2014, and taken on record by the
Board of Directors, none of the directors is disqualified as on March 31, 2014, from being appointed as a director in
terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.
d) since the Central Government has not issued any notification as to the rate at which the cess is to be paid under
section 441A of the Companies Act, 1956 nor has it issued any Rules under the said section, prescribing the manner
in which such cess is to be paid, no cess is due and payable by the Company
For D.S.K. & Associates
Chartered Accountants
Firm Registration No.117710W
(Santosh T. Shinde)
Partner
Membership No. 133613
Place : Mumbai,
Date : 12th April, 2014
To the Member’s of SBICAP Ventures Ltd.
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Annexure To The Auditors' Report
The Annexure referred to in paragraph 1 of the Auditors' report to the members of SBICAP Ventures Limited (the Company) for
the year ended March 31, 2014. We report that:
i. In respect of its Fixed Assets:
a. The Company has maintained proper records showing full particulars, including quantitative details and situation of
fixed assets.
b. As explained to us, the fixed assets have been physically verified by the management at reasonable intervals; no
material discrepancies were noticed on such verification.
c. In our opinion and according to the information and explanations given to us, no fixed asset has been disposed
during the year and therefore does not affect the going concern assumption.
ii. In respect of its inventories:
The company being an investing company, clause 4(ii) of the Order is not applicable to the company.
iii. In respect of Loans and advances given or taken:
a. The Company has neither granted nor taken any loans, secured or unsecured to or from companies, firms or other
parties covered in the register maintained under section 301 of the Companies Act, 1956.
b. Therefore other sub-clauses under this para are not applicable.
iv. The Company has neither purchased inventory and Fixed Assets nor sold goods and services during the year; hence
clause 4(iv) is not applicable to the Company.
v. According to the information provided and explanation given by the management, the Company has not executed any
transaction which is required to be entered in the register maintained in pursuance of section 301 of the Act.
vi. The Company has not accepted any deposits from the public and consequently, the directives issued by the Reserve Bank
of India, the provisions of Sections 58A and 58AA of the Companies Act, 1956 and the rules framed thereunder are not
applicable.
vii. In our opinion, the Company has an internal audit system commensurate with its size and the nature of its business.
viii. To the best of our knowledge and according to the information and explanations given to us, the Central Government has
not prescribed the maintenance of cost records under clause (d) of sub-section (1) of Section 209 of the Companies Act,
1956 in respect of services carried out by the Company.
ix. a) According to the information and explanations given to us and on the basis of our examination of the books of
account, the Company is generally regular in depositing undisputed statutory dues including provident fund,
income-tax, sales-tax, customs duty, investor education and protection fund, wealth and any other statutory dues
during the year with the appropriate authorities. As explained to us, the Company did not have any dues on account
of employee state insurance, excise duty and cess etc.
b) According to the information and explanations given to us, no undisputed dues payable in respect of income-tax,
sales tax, wealth tax, customs duty and cess were outstanding at 31 March 2014 for a period of more than six months
from the date they became payable
c) According to the information and explanations given to us, there are no dues in respect of sales tax, income tax, sales
tax, customs duty, wealth tax, excise duty, and cess that have not been deposited with the appropriate authorities on
account of any dispute.
x. The Company has no accumulated losses and the Company has incurred cash losses during the financial year covered by
our audit but not in preceding financial year.
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xi. On the basis of our examination and according to the information and explanations given to us, the Company has not
defaulted in repayment of dues to any bank or financial institution. The Company has not obtained any borrowings by way
of debentures.
xii. The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and
other securities.
xiii. The Company is not a chit fund, nidhi, mutual benefit fund or a society.
xiv. In our opinion and according to the information and explanations given to us, the Company is not dealing or trading in
shares, securities, debentures and other investments.
xv. According to the information and explanations given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions.
xvi. The Company did not have any term loans outstanding during the year.
xvii. In our opinion, and on the basis of our examination and according to the information and explanations given to us, and on
overall examination of the balance sheet of the company, we report that the Company has not, prima facie, used the funds
borrowed on short term basis during the year for long term investment and vice versa.
xviii. The Company has not made any preferential allotment of shares to parties and companies covered in the register
maintained under section 301 of the Act.
xix. The Company does not have any outstanding debentures during the year.
xx. The Company has not raised any money by public issues during the year.
xxi. According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported
during the year.
For D.S.K. & Associates
Chartered Accountants
Firm Registration No. 117710W
(Santosh T. Shinde)
Partner
Membership No. 133613
Place : Mumbai
Date : 12th April, 2014
Annexure To The Auditors' Report (contd.)
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Balance Sheet As At 31st March 2014
EQUITY AND LIABILITIES
ASSETS
Shareholders' Funds
Share Capital 2.1 41,620,000 41,620,000
Reserves and Surplus 2.2 11,744,114 15,220,062
Current Liabilities
Other Current Liabilities 2.3 2,577,616 50,623
55,941,730 56,890,685
Non-current Assets
Fixed Assets
Tangible Assets 2.5 3,130 3,636
Long-term Loans and Advances 2.7 872,101 18,900
Other Non-Current Assets 2.8 13,182,346 14,691,084
14,057,577 14,713,620
Current Assets
Cash and Cash Equivalents 2.9 40,029,880 40,830,953
Other Current Assets 2.10 1,854,273 1,346,112
41,884,153 42,177,065
55,941,730 56,890,685
Significant Accounting Policies & Notes to Accounts 1 & 2
Notes referred to above form an integral part of the Accounts
NotesAs at
31-Mar-14
As at
31-Mar-13
(Amount in Rs.)
For D.S.K. & Associates
Chartered Accountants
(Santosh T. Shinde)
Partner
FOR AND ON BEHALF OF THE BOARD
SBICAP Ventures Limited
V. G. Kannan Abhay Chaudhari
(Chairman) (Director)
Membership No. 133613
Place : Mumbai
Date : 12th April, 2014
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Statement Of Profit And LossFor The Year Ended March 31, 2014
INCOME
EXPENSES
PROFIT/(LOSS) BEFORE TAXATION
NET PROFIT/(LOSS)
Revenue from Operations
Other Income 2.11 4,894,995 4,712,571
Total 4,894,995 4,712,571
Employee Benefit Expense 2.12 2,161,250 309,948
Depreciation and Amortisation expense 2.5 506 588
Other expenses 2.13 6,209,187 107,121
Total 8,370,943 417,657
(3,475,948) 4,294,914
Adjustment for :
Current Tax Expenses - 1,327,133
Shortfall of provision for tax in earlier years - 1,614,835
MAT Credit created - (2,165,633)
- 776,335
(3,475,948) 3,518,579
Earnings per Equity Share
Basic/Diluted Earning Per Share (EPS) (0.84) 0.85
Notes to Accounts
Notes referred to above form an integral part of the Accounts
As per our attached audit report as on even date
Statement of Profit and Loss NotesFor the Period
ended 31-Mar-14
For the Year
ended 31-Mar-13
(Amount in Rs.)
For D.S.K. & Associates
Chartered Accountants
(Santosh T. Shinde)
Partner
FOR AND ON BEHALF OF THE BOARD
SBICAP Ventures Limited
V. G. Kannan Abhay Chaudhari
(Chairman) (Director)
Membership No. 133613
Place : Mumbai
Date : 12th April, 2014
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Statement of Cash Flow
A. CASH FLOW FROM OPERATING ACTIVITIES
B. CASH FLOW FROM INVESTMENT ACTIVITIES
C. CASH FLOW FROM FINANCING ACTIVITIES
Net Profit /(Loss) before Taxation (3475948) 4,294,914
Adjustment for :
Depreciation 506 588
Interest received during the year (4,860,571) (3,216,892)
Interest Accrued - 953,065
Operating Profit / (Loss) before Working Capital Changes (8,336,013) 2,031,675
(Increase)/Decrease in Current Assets (159,423)
Increase/(Decrease) in Current Liabilities 2,526,993 (34,899)
Cash generated from operations (5,968,443) 1,996,776
Tax paid during the year (693,201) (804,178)
NET CASH FROM OPERATING ACTIVITIES (6,661,644) 1,192,598
Investments in
Fixed Deposit (4,043,758) 1,868,152
Interest received during the year 4,860,571 3,216,892
Interest accrued during the year -
NET CASH FROM INVESTING ACTIVITIES 816,813 5,085,044
NET CASH FROM FINANCING ACTIVITIES - -
NET INCREASE IN CASH AND EQUIVALENT (5,844,831) 6,277,642
CASH AND CASH EQUIVALENT (OPENING BALANCE) 6,830,953 553,311
CASH AND CASH EQUIVALENT (CLOSING BALANCE) 986,122 6,830,953
Notes:
1) Cash and Cash equivalents include:
Balances with bank 986,122 6,830,953
Fixed Deposit - -
986,122 6,830,953
2) Fixed Deposits includes
More than 3 Months 51,043,758 47,000,000
Less than 3 Months - -
Total Fixed Deposits 51,043,758 47,000,000
3) Previous year's figures have been re-grouped/ rearranged to conform
to the current year's presentation, whenever necessary
(Amount in Rs.)
ParticularsFor the Period
ended 31-Mar-14
For the Year
ended 31-Mar-13
For D.S.K. & Associates
Chartered Accountants
(Santosh T. Shinde)
Partner
Membership No. 133613
FOR AND ON BEHALF OF THE BOARD
SBICAP Ventures Limited
V. G. Kannan Abhay Chaudhari
(Chairman) (Director)
Place : Mumbai
Date : 12th April, 2014
As per our attached audit report as on even date
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Notes To Financial StatementFor The Year Ended 31st March 2014
NOTE 2.1 : SHARE CAPITAL
NOTE 2.2 : RESERVES & SURPLUS
Authorised
10,00,00,000 (PY: 2,50,00,000) Equity Shares of Rs.10 each 1,000,000,000 250,000,000
Issued, Subscribed & Paid-up
41,62,000 (PY: 41,62,000) Equity Shares of Rs.10 each fully paid up 41,620,000 41,620,000
(Of the above shares, 100% (PY: 100%) held by the holding company
SBI Capital Markets Limited & its nominees)
41,620,000 41,620,000
The company has only one class of shares referred to as equity shares. Each holder of equity shares is entitled to one vote
per share.
a) Reconciliation of the shares outstanding at the beginning and at the end of the reporting period equity Shares
At the beginning of the period 4,162,000 41,620,000 4,162,000 41,620,000
Outstanding at the end of the period 4,162,000 41,620,000 4,162,000 41,620,000
Capital Redemption Reserve
Balance as per the last Financial Statement 9,380,000 9,380,000
Add : Transfer from Profit and Loss account
Closing Balance 9,380,000 9,380,000
Profit and Loss account balance
Opening Balance 5,840,062 2,321,483
Profit during the year (3,475,948) 3,518,579
Less : Appropriations
Transfer to Capital Redemption Reserve - -
Closing Balance 2,364,114 5,840,062
TOTAL RESERVES AND SURPLUS 11,744,114 15,220,062
ParticularsAs at
31-Mar-14
As at
31-Mar-13
(Amount in Rs.)
ParticularsNo. Rs. No. Rs.
31-Mar-14 31-Mar-13
ParticularsAs at
31-Mar-14
As at
31-Mar-13
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Notes To Financial StatementFor The Year Ended 31st March 2014 (contd.)
NOTE 2.3 : OTHER CURRENT LIABILITIES
NOTE 2.7 : LOANS AND ADVANCES
NOTE 2.8 OTHER NON-CURRENT ASSETS
NOTE 2.9 : CASH AND CASH EQUIVALENTS
NOTE 2.10 : OTHER CURRENT ASSETS
Sundry Creditors for Expenses 2,577,616 44,450
Others 6,173
2,577,616 50,623
(Unsecured and considered good unless otherwise stated)
Other loans and advances 160,000
Taxes Paid (Advance Tax and TDS)
Taxes Paid FY 11-12 - 1,308,728
Taxes Paid FY 12-13 825,088 801,848
Taxes Paid FY 13-14 690,836 -
Less: Provision for Tax 803,823 2,091,676
Taxes Paid (Net) 712,101 18,900
Deposits with maturity of more than twelve months 12,000,000 13,000,000
MAT Credit Entitlement 1,691,084 2,165,633
Less : MAT Credit availed for AY 2013-2014 508,738 474,549
1,182,346 1,691,084
Cash and cash equivalents
Balances with banks
Current Account 986,122 6,830,953
Deposits with original maturity of less than three months - -
986,122 6,830,953
Other Bank balances
Deposits with original maturity of more than 12 months 20,000,000 13,000,000
Deposits with original maturity of more than three months but less 31,043,758 34,000,000
than 12 months 51,043,758 47,000,000
Less : Amount disclosed under non-current assets 12,000,000 13,000,000
40,029,880 40,830,953
Interest Accrued 1,854,273 1,346,112
1,854,273 1,346,112
-
(Amount in Rs.)
ParticularsFor the Period
ended 31-Mar-14
For the Year
ended 31-Mar-13
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Notes To Financial StatementFor The Year Ended 31st March 2014 (contd.)
NOTE 2.11 : OTHER INCOME
NOTE 2.12 : EMPLOYEE COST
NOTE 2.13 : OTHER EXPENSE
Interest on FDR 4,860,571 4,712,571
Interest on Income Tax refund 34,424 -
4,894,995 4,712,571
Salaries and Allowances 1,939,642 281,808
Contribution to Provident and other Funds 86,280 11,945
Leave Travel Expenses 106,672 9,435
Contribution to Pension 8,656 2,042
Medical Expenses 20,000 4,718
2,161,250 309,948
Auditor's Remuneration 44,944 44,944
Travelling Expenses 169,583 -
Legal & Professional Fees 70,271 21,186
Profession Tax 2,500 2,500
Rates and Taxes 620,664 29,899
Bank Charges 2,391 163
Directors Sitting Fees 7,500 7,500
Other Expenses 2,899 929
Telephone 16,337 -
Licence Fees 21,667 -
Printing & Stationery 431 -
Share Issue Expenses 5,250,000 -
6,209,187 107,121
ParticularsAs at
31-Mar-14
As at
31-Mar-13
(Amount in Rs.)
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Notes To Financial StatementFor The Year Ended 31st March 2014 (contd.)
Off
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qu
ipm
en
t 8
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-
-
8,6
00
4,9
64
506
-
5
,470
3,1
30
3,6
36
TO
TA
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,60
0
-
-
8,6
00
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,96
4
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6
-
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-
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(Am
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NO
TE 2
.5 : F
IXED
AS
SET
S
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Notes To Financial StatementFor The Year Ended 31st March 2014 (contd.)
2.15) Payment to Auditors
2.16) As at 31 March 2014, no amount is outstanding in respect of the any enterprises covered under The
Micro, Small and Medium Enterprise Development Act, 2006.
2.17) Transactions with Related Party:
2.18) Earnings per Equity Share (EPS)
Audit Fees 30,000 30,000
For other matters 10,000 10,000
Service Tax 4,944 4,944
Total 44,944 44,944
a) SBI Capital Markets Ltd. Holding
b) State Bank of India Ultimate
1) Expenses
Deputation Cost 2,161,250 309,948
Bank Charges 2,391 163
2) Income
Dividend
Interest on FDR 4,860,571 4,712,571
3) Assets
a) Investments
b) Bank Account 986,122 6,830,953
Deposit with Bank 43,043,758 47,000,000
Interest Accrued 1,854,273 1,346,112
I Profit/(Loss) after tax (3,475,948) 3,518,579
II Basic and diluted EPS (Rs.) (0.84) 0.85
III Nominal value per share (Rs.) 10 10
IV Weighted average number of equity shares 4,162,000 4,914,970
(Amount in Rs.)
ParticularsAs at
31-Mar-14
As at
31-Mar-13
Name of Related PartyNature of
Nature of Transaction Ultimate Holding Company Holding Company
31-Mar-2014 31-Mar-2013 31-Mar-2014 31-Mar-2013
Particulars 31-Mar-2014 31-Mar-2013
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Notes To Financial StatementFor The Year Ended 31st March 2014 (contd.)
2.19) There is no contingent liability as at 31 March 2014 (Nil as at 31 March 2013).
2.20) Segment information
2.21) No other information under para 3, 4C and 4D of Part II of Schedule VI of The Companies Act, 1956 is
applicable to the Company and hence not given.
2.22) The figures for the previous year have been regrouped/rearranged wherever necessary.
2.23) The Company has not recognized Deferred Tax Asset on Carried Forward Losses on the basis of
prudence.
The operations of the Company fall under single business and geographical segment, hence no additional
disclosure is required other than those disclosed in financial statements.
Notes referred to above form an integral part of the Accounts
For D.S.K. & Associates
Chartered Accountants
(Santosh T. Shinde)
Partner
FOR AND ON BEHALF OF THE BOARD
SBICAP Ventures Limited
V. G. Kannan Abhay Chaudhari
(CHAIRMAN) (DIRECTOR)
Membership No. 133613
Place : Mumbai
Date : 12th April, 2014
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Notes To Financial StatementFor The Year Ended 31st March 2014 (contd.)
(1) Significant Accounting Policies
1. Accounting Convention
2. Use of Estimates
3. Revenue Recognition
4. Fixed Assets
5. Depreciation/ Amortisation
6. Investments
7. Translation of Foreign Currency Items
8. Retirement Benefits
The Financial Statements have been prepared under the historical cost convention on an accrual basis in compliance with
all material aspects of the applicable Accounting Standards in India and the relevant provisions of the Companies Act,
1956. Except otherwise mentioned, the accounting policies have been consistently applied by the Company and are
consistent with those used in the previous year.
The preparation of Financial Statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent liabilities at the date of the Financial Statements and the results of operations during the reporting period
end. Although these estimates are based upon management’s best knowledge of current events and actions, actual
results could differ from these estimates.
Revenue is recognised to the extent that it is probable that economic benefits will flow to the Company and revenue can be
easily measured. Dividend income on investments is accounted for when the right to receive the payment is established.
Fixed assets are stated at cost, less accumulated depreciation and impairment if any. Cost comprises the purchase price
and any attributable cost of bringing the asset to its working condition for its intended use.
Depreciation on fixed assets is provided on Written down Value Method at the rates and in the manner specified in the
Schedule XIV of the Indian Companies Act, 1956.
Depreciation in Fixed Assets added / disposed of / discarded during the year has been provided on pro rata basis with
reference to the date of addition / disposition / discardation.
Current Investments are stated at lower of cost and market/fair value. Long Term Investments are stated at cost after
deducting provision made, if any, for other than temporary diminution in the value.
Transactions in foreign currency are recorded at the rate of exchange prevailing on the date of transaction. Foreign
currency monetary items are reported using closing rate of exchange at the year end. The resulting exchange gain/loss is
reflected in the profit and loss account. Other items, like fixed assets, investments in equity shares are carried in terms of
historical cost using the exchange rate at the date of transaction.
The Company makes defined contribution to Provident Fund which is recognized in the Profit and Loss Account on accrual
basis.
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Notes To Financial StatementFor The Year Ended 31st March 2014 (contd.)
9. Taxation
10. Contingent Liabilities
11. Earnings per Share
12. Provisions
13. Cash and Cash Equivalents
Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance
with the Income Tax Act, 1961.
Deferred tax for timing differences between the book and tax profits for the year is accounted for, using the prevailing
enacted or substantially enacted tax rates and laws as of the Balance Sheet date. Deferred tax assets arising from timing
differences are recognised to the extent there is reasonable certainty that these would be realised in future. Deferred tax
assets in case of unabsorbed losses and unabsorbed depreciation are recognised only if there is virtual certainty that such
deferred tax asset can be realised against future taxable profits.
Contingent liabilities are possible but not probable obligation as on Balance Sheet date, based on available evidences.
Provisions are recognised when there is a present obligation, as a result of past event, and it is probable that an outflow of
resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are
determined, based on best estimate required to settle the obligation at the Balance Sheet date.
Basic and diluted earnings per share are reported in accordance with AS 20, “Earnings Per Share”. Basic earnings per equity
share has been computed by dividing net profit after tax by weighted average number of equity shares outstanding for the
year. Diluted earnings per equity share have been computed using the weighted average number of equity shares and
dilutive potential equity shares outstanding during the year.
A provision is recognised when an enterprise has a present obligation as a result of past event; it is probable that an outflow
of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not
discounted to its present value and are determined based on best estimate required to settle the obligation at the balance
sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.
Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term investments with an
original maturity of three months or less.
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Directors' Report For The Year 2013 -14
Principal activity
Review of business
Directors
Statement of directors' responsibilities
The principal activity of the company in the year under review was that of the arrangement of Corporate Finance
and providing Advisory Services.
For the financial year 2013-14, the Company has achieved a Turnover of (excluding interest income) of
GBP330,050 against that of the previous year level of GBP1,903, 461 and loss of GBP32,971/- against PAT of
GBP1,164,337 booked during the previous year. Amongst all the assignments that the Company has handled
during this financial year, two major deals deserve mention. One was arranging syndication of acquisition
finance for a London Based company for acquisition of an integrated iron ore mine in Brazil. The other deal was
related to lead managing the Bond issuance of SBI along with other global banks. These two signature deals
contributed to SUL's income stream but were not adequate to cover the costs. On account of volatile markets
triggered by various economic events/factors like Fed tapering, Rupee depreciation and capital flight out of
India, slowing of the economy, twin deficits etc- had a negative impact on the investor sentiments, thus drying
up the deal pipeline in capital markets and syndications. Further, the impending elections only forced the
investors to have a wait and watch policy. We, however, hope to achieve better results as the markets improve
next year. The Company has arranged successful investor roadshows under OFS and QIP mandates though they
did not yield procurements for the reasons cited above. During the financial year 2014-15, the Company
proposes to concentrate on matched principal broking and managing international debt capital market
issuances for Indian Corporates including M&A Advisory services and maintaining investor connect.
The directors during the year under review were:
Madhumita Chatterjee
Mrutyunjay Mahapatra
Arundhati Bhattacharya - resigned 17/9/2013
V G Kannan
Bharati Rao
S Vishvanathan
Abhay C Chaudhari - appointed 21/11/2013
The directors holding office at 31 March 2014 did not hold any beneficial interest in the issued share capital of the
company at 1 April 2013 (or date of appointment if later) or 31 March 2014.
The directors are responsible for preparing the Directors' Report and the financial statements in accordance with
applicable law and regulations.
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Directors' Report For The Year 2013 -14 (contd.)
Company law requires the directors to prepare financial statements for each financial year. Under that law the
directors have elected to prepare the financial statements in accordance with United Kingdom Generally
Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law
the directors must not approve the financial statements unless they are satisfied that they give a true and fair
view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing
these financial statements, the directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and accounting estimates that are reasonable and prudent;
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain
the Company's transactions and disclose with reasonable accuracy at any time the financial position of the
Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They
are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the
Companies Act 2006) of which the Company's auditors are unaware, and each director has taken all the steps that
he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit
information and to establish that the Company's auditors are aware of that information.
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006
relating to small companies.
On behalf of the board:
Madhumita Chatterjee
Director
8 April 2014
Statement of directors' responsibilities - continued
Statement as to disclosure of information to auditors
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Independent Auditor's Report For Year 2013 -14
We have audited the financial statements of SBICAP (UK) Limited for the year ended 31 March 2014 which comprise the Profit
and Loss Account, the Balance Sheet and the related notes. The financial reporting framework that has been applied in their
preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting
Practice).
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act
2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to
state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company and the Company's members as a body, for our audit work, for this
report, or for the opinions we have formed.
As explained more fully in the Statement of Directors' Responsibilities, the directors are responsible for the preparation of the
financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an
opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and
Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give
reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This
includes an assessment of: whether the accounting policies are appropriate to the company's circumstances and have been
consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors;
and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in
the Directors' Report to identify material inconsistencies with the audited financial statements and to identify any information
that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of
performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the
implications for our report.
In our opinion the financial statements:
- give a true and fair view of the state of the Company's affairs as at 31 March 2014 and of its loss for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
In our opinion the information given in the Directors' Report for the financial year for which the financial statements are
prepared is consistent with the financial statements.
Respective responsibilities of directors and auditors
Scope of the audit of the financial statements
Opinion on financial statements
Opinion on other matter prescribed by the Companies Act 2006
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Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in
our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches
not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a
Strategic Report or in preparing the Directors' Report.
Kalbinder Sanghera
(Senior Statutory Auditor)
for and on behalf of Haines Watts
177-181 Farnham Road
Slough SL1 4XP
177-181 Farnham Road
Slough
Berkshire
SL14XP
9 April 2014
Independent Auditor's Report For Year 2013 -14 (contd.)
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Turnover 330,050 1,903,461
Administrative expenses (422,252) (411,273)
Operating (loss)/profit (92,202) 1,492,188
Interest receivable and similar income 4 59,231 40,335
(Loss)/profit on ordinary activities before taxation 5 (32,971) 1,532,523
Tax on (loss)/profit on ordinary activities 6 (5,757) 368,186
(Loss)/profit for the financial year (27,214) 1,164,337
Continuing operations
None of the Company's activities were acquired or discontinued during the current year or previous year.
Total recognised gains and losses
The Company has no recognised gains or losses other than the loss for the current year and the profit for the previous
year.
Notes2014 2013
£ £
Profit And Loss AccountFor The Year Ended 31 March 2014
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Balance Sheet As On 31st March 2014
Fixed assets
Current assets
Creditors
Capital and reserves
Tangible assets 7 12,492 15,553
Debtors 8 38,710 36,909
Cash at bank 2,602,036 2,998,427
2,640,746 3,035,336
Amounts falling due within one year 9 53,986 424,423
Net current assets 2,586,760 2,610,913
Total assets less current liabilities 2,599,252 2,626,466
Called up share capital 11 200,000 200,000
Profit and loss account 12 2,399,252 2,426,466
Shareholders' funds 16 2,599,252 2,626,466
The financial statements were approved by the Board of Directors on 8 April 2014 and were signed on its behalf by:
Madhumita Chatterjee
Director
Notes2014 2013
£ ££ £
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Notes To The Financial StatementsFor The Year Ended 31st March 2014
Accounting policies
Accounting convention
The financial statements have been prepared under the historical cost convention.
Financial reporting standard number 1
Exemption has been taken from preparing a cash flow statement on the grounds that the Company qualifies as a small
company.
Turnover
Turnover represents amounts receivable for advisory and transaction services provided in the year and is stated net of VAT.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Short leasehold - Straight line over the life of the lease
Fixtures and fittings - Straight line over the life of the lease
Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet
date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of
transaction. Exchange differences are taken into account in arriving at the operating result.
Hire purchase and leasing commitments
Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of
the lease.
Pension costs and other post-retirement benefits
The Company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme
are charged to the profit and loss account in the period to which they relate.
2014£
2013£
2014£
2013£
2. Staff costs
Wages and salaries 151,119 128,513
Social security costs 11,070 6,699
Other pension costs 1,251 10,748
163,440 145,960
The average monthly number of employees during the year was as follows:
Management 1 1
Operations 2 2
3 3
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3. Directors' emoluments
Directors' remuneration 78,480 62,256
2014£
2013£
4. Interest receivable and similar income
Deposit account interest 59,231 40,335
2014£
2013£
5. (Loss)/profit on ordinary activities before taxation
The loss on ordinary activities (2013 - profit on ordinary activities) is stated after charging/(crediting):
Other operating leases 53,982 53,982
Depreciation - owned assets 3,061 3,805
Auditors' remuneration 4,850 4,850
Foreign exchange differences 4,212 (652)
2014£
2013£
5. Taxation
Analysis of the tax (credit)/charge
The tax (credit)/charge on the loss on ordinary activities for the year was as follows:
Current tax:
UK corporation tax (5,757) 368,186
Tax on (loss)/profit on ordinary activities (5,757) 368,186
Factors affecting the tax (credit)/charge
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained
below:
(Loss)/profit on ordinary activities before tax (32,971) 1,532,523
(Loss)/profit on ordinary activities
multiplied by the standard rate of corporation tax
in the UK of 23% (2013 - 24%) (7,583) 367,806
Effects of:
Expenses not deductible for tax purposes 1,345 70
Depreciation in excess of capital allowances 481 310
Current tax (credit)/charge (5,757) 368,186
2014£
2013£
2014£
2013£
Notes To The Financial StatementsFor The Year Ended 31st March 2014 (contd.)
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7. Tangible fixed assets
Cost
At 1 April 2013
and 31 March 2014 39,487 2,712 42,199
Depreciation
At 1 April 2013 25,074 1,572 26,646
Charge for year 2,602 459 3,061
At 31 March 2014 27,676 2,031 29,707
Net book value
At 31 March 2014 11,811 681 12,492
At 31 March 2013 14,413 1,140 15,553
Fixtures and
fittings TotalShort leashold
£ £ £
8. Debtors: amounts falling due within one year
Trade debtors - 3,086
Other debtors 3,230 3,230
Tax 5,757 -
VAT 3,622 3,428
Prepayments and accrued income 26,101 27,165
38,710 36,909
2014£
2013£
9. Creditors: amounts falling due within one year
Corporation tax - 368,186
Social security and other taxes 37,102 26,085
Accruals and deferred income 16,884 30,152
53,986 424,423
2014£
2013£
Notes To The Financial StatementsFor The Year Ended 31st March 2014 (contd.)
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10. Operating lease commitments
The following operating lease payments are committed to be paid within one year:
Expiring:
Between one and five years 53,982 53,982
11. Called up share capital
Allotted, issued and fully paid:
200,000 Ordinary £1 200,000 200,000
2014£
Land and Building
2013£
2014£
Land and Building
2013£
Nominal
Value
£1Number : Class :
12. Reserves
At 1 April 2013 2,426,466
Deficit for the year (27,214)
At 31 March 2014 2,399,252
Profit and loss account
£
13. Ultimate parent company
14. Related party disclosures
15. Ultimate controlling party
The immediate parent company is SBI Capital Markets Limited, a company incorporated in India.
During the year, the company paid expenses of £Nil (2013: £3,044) on behalf of SBI Capital Markets Limited, its immediate
parent. At the year end, £Nil (2013: £2,099) was owed by SBI Capital Markets Limited to the company.
The ultimate parent company is State Bank of India, a company incorporated in India.
16. Reconciliation of movements in shareholders' funds
(Loss)/profit for the financial year (27,214) 1,164,337
Net (reduction)/addition to shareholders' funds (27,214) 1,164,337
Opening shareholders' funds 2,626,466 1,462,129
Closing shareholders' funds 2,599,252 2,626,466
2014£
2013£
Notes To The Financial StatementsFor The Year Ended 31st March 2014 (contd.)
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Sales 330,050 1,903,461
Other income
Deposit account interest 59,231 40,335
389,281 1,943,796
Expenditure
Wages 110,494 93,303
Social security 11,070 6,699
Pensions 1,251 10,748
Rent 53,982 53,982
Service charges 25,407 17,661
Insurance 516 1,086
Light and heat 3,963 2,989
Officers residence rent 58,763 58,231
Directors' salaries 40,625 35,210
News distribution 2,122 1,926
Telephone 5,959 7,095
Post and stationery 1,333 1,652
Travelling 23,402 21,675
Repairs and renewals 654 92
Canteen and cleaning 1,677 2,097
Sundry expenses (194) 593
Regulatory fees and levies 1,070 1,331
Subscriptions 21,375 24,275
Training 4,184 1,195
Professional fees 22,740 51,146
Work permit applications - 500
Auditors' remuneration 4,850 4,850
Foreign exchange losses 4,212 (652)
Entertainment 5,847 291
Seminars and conventions 13,653 9,322
418,955 407,297
(29,674) 1,536,499
Finance costs
Bank charges 236 171
Carried forward (29,910) 1,536,328
Brought forward (29,910) 1,536,328
Depreciation
Short leasehold 2,602 3,185
Fixtures and fittings 459 620
3,061 3,805
Net (loss)/profit (32,971) 1,532,523
2014 2013£ ££ £
Profit And Loss Account For The Year Ended 31st March 2014
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Directors' Report For The Year 2013 -14
We are pleased to submit this Annual Report to the members of the Company together with the audited financial
statements for the financial year ended 31 March 2014.
The directors in office at the date of this report are as follows:
M Rajaram
Ravi Shankar
VG Kannan (Appointed on 5 July 2013)
Abhay Chaudhari (Appointed on 5 July 2013)
According to the register kept by the Company for the purposes of Section 164 of the Singapore Companies Act, Chapter
50 (the Act), particulars of interests of directors who held office at the end of the financial year (including those held by
their spouses and infant children) in shares, debentures, warrants and share options in the Company and in related
corporation are as follows:
Directors
Directors’ interests
VG Kannan
State Bank of India – Ultimate Holding Company
- Ordinary shares INR 10.00 each 361 361
SBI Capital Markets Limited – Immediate Holding Company
- Ordinary shares INR 10.00 each (held as nominee of State Bank of India) 1 6
Abhay Chaudhari
State Bank of India – Ultimate Holding Company
- Ordinary shares INR 10.00 each 325 325
SBI Capital Markets Limited – Immediate Holding Company
- Ordinary shares INR 10.00 each (held as nominee of State Bank of India) – 1
Holdings
at end
of the year
Name of director and corporation
in which interests are held
Holdings at
beginning of the
year / date of
appointment
Except as disclosed in this report, no director who held office at the end of the financial year had interests in shares, debentures,
warrants or share options of the Company or of related corporations, either at the beginningof the financial year (or date of
appointment, if later) or at the end of the financial year.
Neither at the end of, nor at any time during the financial year, was the Company a party to any arrangement whose objects are,
or one of whose objects is, to enable the directors of the Company to acquire benefits by means of the acquisition of shares in
or debentures of the Company or any other body corporate.
Except for salaries, bonuses and fees and those benefits that are disclosed in this report and in note 12 to the financial
statements, since the end of the last financial year, no director has received or become entitled to receive, a benefit by reason of
a contract made by the Company or a related corporation with the director, or with a firm of which he is a member or with a
company in which he has a substantial financial interest.
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Directors' Report For The Year 2013 -14 (contd.)
Auditors
The auditors, KPMG LLP, have expressed their willingness to accept appointment.
Signed by the Board of Directors
───────────────────M Rajaram
Director
───────────────────Ravi Shankar
Director
11 April 2014
Statement by Directors
In our opinion:
(a) the financial statements set out on pages FS1to FS16 are drawn up so as to give a true and fair view of the state of affairs of
the Company as at 31 March 2014 and the results, changes in equity and cash flows of the Company for the year ended on
that date in accordance with the provisions of the Singapore Companies Act, Chapter 50 and Singapore Financial
Reporting Standards; and
(b) at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debts as and
when they fall due.
The Board of Directors has, on the date of this statement, authorised these financial statements for issue.
Signed by the Board of Directors
───────────────────M Rajaram
Director
───────────────────Ravi Shankar
Director
11April 2014
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Independent Auditors' Report
Member of the Company
We have audited the accompanying financial statements of (the “Company”), which comprise the statement of financial
position of the Company as at, the statement of comprehensive income, statement of changes in equity and statement of cash
flows for the year then ended, and a summary of significant accounting policies and other explanatory information, as set out
on pages FS1 to FS16.
Management's responsibility for the financial statements
Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the
provisions of the Singapore Companies Act, Chapter 50 (the Act) and Singapore Financial Reporting Standards, and for
devising and maintaining a system of internal accounting controls sufficient to provide a reasonable assurance that assets are
safeguarded against loss from unauthorised use or disposition; and transactions are properly authorised and that they are
recorded as necessary to permit the preparation of true and fair profit and loss accounts and balance sheets and to maintain
accountability of assets.
Auditors' responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material
mis-statement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation of financial statements that give a true and fair view in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control.An audit also includes evaluating the appropriateness of accounting policies used
and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements are properly drawn up in accordance with the provisions of the Act and Singapore
Financial Reporting Standards to give a true and fair view of the state of affairs of the Company as at and the results, changes in
equity and cash flows of the Company for the year ended on that date.
In our opinion, the accounting and other records required by the Act to be kept by the Company have been properly kept in
accordance with the provisions of the Act.
KPMG LLP
Public Accountants and
Chartered Accountants
Singapore
11April2014
Report on the financial statements
Report on other legal and regulatory requirements
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Particulars2014
S$
2013
S$
Non-current asset
Plant and equipment 4 – 1,535
Trade and other receivables 5 8,650 –
8,650 1,535
Current assets
Trade and other receivables 5 82,046 73,798
Cash and cash equivalents 6 3,403,825 1,015,726
3,485,871 1,089,524
Total assets 3,494,521 1,091,059
Equity
Share capital 7 5,000,000 2,000,000
Accumulated losses (1,532,831) (940,347)
Total equity 3,467,169 1,059,653
Current liability
Accrued operating expenses 27,352 31,406
Total liability 27,352 31,406
Total equity and liability 3,494,521 1,091,059
Note
Statement Of Financial Position As At 31st March 2014
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Statement Of Comprehensive Income Year Ended 31st March 2014
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Particulars2014
S$
2013
S$
Non-current asset
Revenue 8 281,250 –
Finance income 9 1,421 –
Operating expenses 10 (875,155) (691,198)
Loss before income tax (592,484) (691,198)
Income tax expense 11 – –
Loss for the year (592,484) (691,198)
Other comprehensive income, net of tax – –
Total comprehensive loss for the year (592,484) (691,198)
Note
Statement Of Comprehensive IncomeYear Ended 31st March 2014
Statement Of Changes In Equity Year Ended 31st March 2014
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ParticularsShare Capital
losses S$
Total
S$
At 1 April 2012 300,000 (249,149) 50,851
Loss for the year – (691,198) (691,198)
Other comprehensive income – – –
Total comprehensive loss for the year – (691,198) (691,198)
Transactions with owners, recorded
directly in equity
Contributions by owners
Issue of ordinary shares 7 1,700,000 – 1,700,000
Total transactions with owners 1,700,000 – 1,700,000
At 31 March 2013 2,000,000 (940,347) 1,059,653
At 1 April 2013 2,000,000 (940,347) 1,059,653
Loss for the year – (592,484) (592,484)
Other comprehensive income – – –
Total comprehensive loss for the year – (592,484) (592,484)
Transactions with owners, recorded directly
in equity contributions by owners
Issue of ordinary shares 7 3,000,000 – 3,000,000
Total transactions with owners 3,000,000 – 3,000,000
At 31 March 2014 5,000,000 (1,532,831) (3,467,169)
Accumulated
losses S$Notes
Statement Of Changes in Equity Year Ended 31st March 2014
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Statement Of Cash FlowsYear Ended 31st March 2014
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Particulars2014
S$
2013
S$
Cash flows from operating activities
Loss before income tax (592,484) (691,198)
Adjustments for:
Depreciation of plant and equipment 1,535 3,536
(590,949) (687,662)
Changes in working capital:
Trade and other receivables (16,898) (42,668)
Accrued operating expenses (4,054) 13,904
Net cash flows used in operating activities (611,901) (716,426)
Cash flows from investing activities
Acquisition of plant and equipment – (3,069)
Net cash flows used in investing activities – (3,069)
Cash flows from financing activities
Proceeds from issue of share capital 3,000,000 1,700,000
Net cash flows from financing activities 3,000,000 1,700,000
Net increase in cash and cash equivalents 2,388,099 980,505
Cash and cash equivalents at beginning of year 1,015,726 35,221
Cash and cash equivalents at end of year 3,403,825 1,015,726
Statement Of Cash FlowsYear Ended 31st March 2014
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Notes To The Financial Statements
These notes form an integral part of the financial statements.
The financial statements were authorised for issue by the Board of Directors on 6 May 2014.
(the “Company”) is incorporated in the Republic of Singapore and has its registered office at 9 Raffles Place #32-00
Republic Plaza' Singapore 048619.
The principal activities of the Company are those relating to business and management consultancy services.
On 30 November 2012, the Company obtained the Capital Markets Services Licence (the “CMSL”) under the Securities
and Futures Act (the “SFA”) issued by the Monetary Authority of Singapore (the “MAS”) to conduct the regulated activity
of dealing in securities as defined in the Second Schedule to the SFA.
The immediate holding company during the financial year is SBI Capital Markets Limited, which is incorporated in
Mumbai, India. The ultimate holding company during the financial year is the State Bank of India, which is also
incorporated in India.
2.1 Statement of compliance
The financial statements have been prepared in accordance with Singapore Financial Reporting Standards (FRS).
2.2 Basis of measurement
The financial statements have been prepared on the historical cost basis except as disclosed in the accounting policies
below.
2.3 Functional and presentation currency
The financial statements are presented in Singapore dollars, which is the Company's functional currency.
2.4 Use of estimates and judgements
The preparation of the financial statements in conformity with FRSs requires management to make judgements,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions
are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates
are revised and in any future periods affected.
The Company adopted new/revised financial reporting standards/interpretations which became effective during the
year. The initial adoption did not have a material impact on the financial statements.
The accounting policies set out below have been applied consistently by the Company to all periods presented in these
financial statements.
3.1 Foreign currency transactions
Transactions in foreign currencies are translated to the functional currency of the Company at the exchange rates at the
dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are
re-translated to the functional currency at the exchange rate at the reporting date. Foreign currency differences arising on
r-etranslation are recognised in profit or loss.
Non-monetary assets and liabilities measured at cost in foreign currencies are re-translated using exchange rates at the
date of the transactions. Non-monetary assets and liabilities measured at fair values in foreign currencies are
re-translated to the functional currency at foreign exchange rates at the date the fair values were determined.
1 Domicile and activities
2 Basis of preparation
3 Significant accounting policy
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3.2 Plant and equipment
Plant and equipment are stated at cost' less accumulated depreciation and impairment losses. Depreciation is
recognised in the statement of comprehensive income on a straight-line basis over the estimated useful lives of each part
of an item of plant and equipment.
(i) Recognition and measurement
Plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Cost
includes expenditure that is directly attributable to the acquisition of the asset.
The gain or loss on disposal of an item of plant and equipment is determined by comparing the proceeds from disposal
with the carrying amount of the plant and equipment, and is recognised net within other income/other expenses in profit
or loss.
(ii) Subsequent costs
The cost of replacing a component of an item of plant and equipment is recognised in the carrying amount of the item if it
is probable that the future economic benefits embodied within the component will flow to the Company, and its cost can
be measured reliably. The carrying amount of the replaced component is de-recognised. The costs of the day-to-day
servicing of plant and equipment are recognised in profit or loss as incurred.
(iii) Depreciation
Depreciation is based on the cost of an asset' less its residual value. Significant components of individual assets are
assessed and if a component has a useful life that is different from the remainder of that asset, that component is
depreciated separately.
Depreciation is recognised as an expense in profit or loss on a straight-line basis over the estimated useful lives of each
component of an item of plant and equipment, unless it is included in the carrying amount of another asset.
Depreciation is recognised from the date that the plant and equipment are installed and are ready for use, or in respect of
internally constructed assets, from the date that the asset is completed and ready for use.
The estimated useful lives for the current and comparative period are as follows:
Cost
At 1 April 2012 4,003
Additions 3,069
At 31 March 2013, 1 April 2013 and 31 March 2014 7,072
Accumulated depreciation
At 1 April 2012 2,001
Depreciation charge for the year 3,536
At 31 March 2013 5,537
At 1 April 2013 5,537
Depreciation charge for the year 1,535
At 31 March 2014 7,072
Carrying amount
At 1 April 2012 2,002
At 31 March 2013 1,535
At 31 March 2014 –
Computer
Hardware
S$
4. Plant and equipment
Notes To The Financial Statements (contd.)
Notes To Financial StatementFor The Year Ended 31st March 2014
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Particulars
Particulars
Particulars
2014
S$
2014
S$
2014
S$
2013
S$
2013
S$
2013
S$
Amount due from immediate holding company – 7,041
Amount due from ultimate holding company 10,247 –
Deposits 46,850 55,950
GST 6,965 –
Accrued interest receivable 1,421 –
Loans and receivables 65,483 62,991
Prepayments 25,213 10,807
90,696 73,798
Amount due from immediate holding company – 7,041
Non-current 8,650 –
Current 82,046 73,798
90,696 73,798
Cash at bank and in hand 3,403,825 1,015,726
5 Trade and other receivables
6 Cash and cash equivalents
The amounts due from immediate and ultimate holding companies are unsecured, interest-free and repayable on demand.
There is no allowance for doubtful debts arising from the outstanding balance.
Particulars2014
S$
2013
S$
Fully paid ordinary shares, with no par value:
At 1 April 2,000,000 300,000
Issued during the financial year 3,000,000 1,700,000
At 31 March 5,000,000 2,000,000
7 Share Capital
The holder of ordinary shares is entitled to receive dividends as declared from time to time and is entitled to one vote per share
at meetings of the Company. All shares rank equally with regard to the Company's residual assets.
During the year, the Company issued 3,000,000 (: 1,700,000) ordinary shares of S$1.00 each. All issued shares are fully paid.
Capital management
The Company defines “capital” as including all components of equity plus any loans from its immediate holding company or its
related corporations with no fixed terms of repayment. Trading balances that arise as a result of trading transactions with other
group companies are not regarded by the Company as capital.
The Company's capital management policies are to diversify its sources of capital, to allocate capital efficiently, guided by the
need to maintain a prudent relationship between available capital and the risks of its underlying businesses and to meet the
expectations of key constituencies, including investors and regulators.
Notes To The Financial Statements For The Year Ended 31st March 2014
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Notes To Financial StatementFor The Year Ended 31st March 2014 (contd.)
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8 Revenue
Revenue consists of fee income recognised for services rendered for corporate finance activities during the year.
Particulars2014
S$
2013
S$
Interest income from banks 1,421 -
9 Finance Income
Particulars2014
S$
2013
S$
Salaries and related costs 333,840 314,560
Contributions to defined contribution plans 18,299 12,075
Operating lease expense 243,927 237,963
Depreciation of plant and equipment 1,535 3,536
10 Operating Expenses
The capital management process, which is centrally supervised by senior management, includes periodic reviews of both the
demand for and supply of capital. To maintain or adjust the capital structure, the Company may take certain actions like
adjusting the amount of dividend payment and issuing new shares.
In obtaining the CMSL, the Company is also required to provide to MAS a Banker's Guarantee of S$100,000 which will remain in
force as long as the Capital Markets Services License remains valid.
The Company has complied with the above regulatory requirement during the year.
There were no significant changes in the Company's approach to capital management during the year.
The following items have been included in operating expenses:
Particulars2014
S$
2013
S$
Reconciliation of effective tax rate
Loss before income tax (592,484) (691,198)
Tax calculated using Singapore tax rate of 17% (100,722) (117,504)
Deferred tax assets not recognised 100,722 117,504
11 Income tax expense
Particulars2014
S$
2013
S$
Unutilised tax losses 1,532,781 940,297
Deferred tax assets have not been recognised in respect of the following items:
Notes To The Financial Statements For The Year Ended 31st March 2014 (contd.)
Notes To Financial StatementFor The Year Ended 31st March 2014 (contd.)
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12 Significant related party transactions
For the purpose of these financial statements, parties are considered to be related to the Company if the Company has the
ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and
operating decisions, or vice versa, or where the Company and the party are subject to common control or common significant
influence. Related parties may be individuals or other entities.
Particulars2014
S$
2013
S$
Directors’ remuneration comprised:
- Short-term employee benefits 187,233 150,403
Other related party transactions
During the financial year, other than those disclosed elsewhere in the financial statements, there were the following significant
related party transactions carried out based on terms agreed between the parties:
Particulars2014
S$
2013
S$
Reimbursement of marketing expenses from immediate holding company – 7,041
Reimbursable payments made on behalf of ultimate holding company 10,247 –
Professional fees paid to Straits Law Practice (the legal firm where Mr. M Rajaram, 112,524 –
Secretary and Director of the Company, is a Partner)
13 Commitments
At 31 December, the Company has commitments for future minimum lease payments under non-cancellable operating lease
as follows:
Particulars2014
S$
2013
S$
Within 1 year 102,096 236,752
Within 2 to 5 years 30,400 56,496
132,496 293,248
The Company leases office and residential premises under operating lease. Lease terms do not contain restrictions on the
Company activities concerning dividends, additional debt or entering into other leasing agreements. The lease contains
renewal option at rental rates to be based on negotiations and prevailing market rates.
14 Financial risk management
Overview
The Company has exposure to the following risks from its use of financial instruments:
• credit risk
• currency risk
• liquidity risk
The exposure to each of the above risks arises in the normal course of the Company’s business. The financial risk management
approach of the Company seeks to minimise the potential material adverse effects from these exposures.
There are interest-bearing assets but no interest-bearing liabilities at the statement of financial position date.
Notes To The Financial Statements For The Year Ended 31st March 2014 (contd.)
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Currency Risk
The Company is not exposed to any significant currency risk at the date of the statement of financial position as most of its
financial assets and all financial liabilities are denominated in the Company’s functional currency.
Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counter party to a financial instrument fails to meet its
contractual obligations. At the statement of financial position date, the maximum exposure to credit risk is represented by the
carrying amount of each financial asset on the statement of financial position.
Cash is placed with a financial institution which is regulated.
Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to
ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and
stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.
The following are the contractual maturities of the Company’s financial liability, including estimated interest payments and
excluding the impact of netting agreements:
Particulars
2014
Accrued operating expenses 27,352 27,352 27,352
2013
Accrued operating expenses 31,406 31,406 31,406
Contractual cash flowsCarrying
amount
S$Total
S$
Within 1 year
S$
Fair values
Cash and cash equivalents, current trade and other receivables and accrued operating expenses
The carrying amounts approximate fair values due to the relatively short term to maturity of these financial instruments.
Non-current financial assets
Financial assets not carried at fair value but for which fair values are disclosed:
Particulars
2014
Trade and other receivables 8,650 7,985 Level 2
Carrying
amount
S$
Level 2
Fair value
S$
Fair Value
hierachy
The fair value of non-current trade and other receivables is estimated at the present value of future cash flows, discounted at
the market rate of interest at the reporting date of 5% per annum.
Notes To The Financial Statements For The Year Ended 31st March 2014 (contd.)