Head Office: Edelweiss, 14th Floor, Express Towers,
Nariman Point, Mumbai 400 021 • www.edelcap.com
Edelweiss
Auditors' Report on the Consolidated Financial Statements of
Edelweiss Capital Limited and its subsidiaries
The Board of Directors
Edelweiss Capital Limited
1.
We have audited the attached consolidated balance sheet of Edelweiss Capital Limited ('the Company') and its subsidiaries ('the
Group') as at 31 March 2007 and the consolidated profit and loss account and the consolidated cash flow statement for the year
ended on that date annexed thereto. These financial statements are the responsibility of the Company's management and have
been prepared by the management on the basis of separate financial statements and other financial information regarding
components. Our responsibility is to express an opinion on these financial statements based on our audit.
2.
We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit includes, examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant estimates made by the management, as well as
evaluating the overall financial statement. We believe that our audit provides a reasonable basis for our opinion.
3.
We did not audit the financial statements of certain subsidiaries whose financial statements reflect total assets of Rs 942,745
(000's) as at 31 March 2007, total revenues of Rs 99,758 (000's) and total cash flow of Rs. 1,410 (000’s) for the year then ended.
These financial statements and other financial information have been audited by other auditors whose reports have been furnished
to us, and in our opinion in so far as it relates to the amounts included in respect of the subsidiaries, are solely on the report of the
other auditors.
4.
We report that the consolidated financial statements have been prepared by the Group in accordance with the requirements of
Accounting Standards issued by the Institute of Chartered Accountants of India, to the extent applicable and on the basis of the
separate audited financial statements of the Company and its subsidiaries included in the consolidated financial statements.
5.
Based on our audit and on consideration of reports of other auditors on separate financial statements and on the other financial
information of the components, and to the best of our information and according to the explanations given to us, in our opinion
the consolidated financial statements give a true and fair view in conformity with the accounting principles generally accepted in
India :
-
In the case of the consolidated balance sheet, of the state of affairs of the Group as at 31 March 2007;
-
In the case of the consolidated profit and loss account, of the profit for the year ended 31 March 2007; and
-
In the case of the consolidated cash flow statement, of the cash flows for the year ended on that date.
For BSR & Associates
Chartered Accountants
Mumbai
Date: 5 June 2007
Akeel Master
Partner
Membership No.: 046768
33
Edelweiss
Consolidated Balance Sheet as at 31 March 2007
Schedules
2007
2006
Capital
2
50.44
37.84
Reserves and Surplus
3
5,770.26
1,746.17
5,820.70
1,784.01
Currency Indian Rupees in millions
SOURCES OF FUNDS
Shareholders' Funds
Minority Interest
4
1,398.79
3.43
Loan Funds
Secured Loans
Unsecured Loans
5
6
67.55
3,802.28
71.22
433.92
3,869.83
505.14
11,089.32
2,292.58
213.27
105.72
75.85
38.48
137.42
67.24
32.69
-
170.11
67.24
8
824.38
323.65
24.6
11.26
4.18
9
10
5,756.43
583.19
1,404.52
364.09
Cash and Bank Balances
Other Current Assets
11
12
2,650.82
75.49
636.52
10.33
Loans and Advances
13
2,615.71
698.78
11,681.14
3,114.14
14
1,464.04
1,171.65
15
134.03
45.08
1,598.07
1,216.73
Net Current Assets
10,083.57
1,897.51
TOTAL
11,089.32
2,292.58
TOTAL
APPLICATION OF FUNDS
Fixed Assets
7
Gross Block
Less : Depreciation
Net Block
Capital work in Progress
Investments
Deferred Tax Asset (Net)
Current Assets, Loans and Advances
Stock-in-trade
Sundry Debtors
Less : Current Liabilities and Provisions
Current Liabilities
Provisions
Significant Accounting Policies
1
Notes to Financial Statements
24
The Schedules referred to above form an integral part of the Balance Sheet.
As per our report attached.
34
For BSR & Associates
Chartered Accountants
For and on behalf of the Board of Directors
Akeel Master
Partner
Membership No: 046768
Rashesh Shah
Managing Director
Mumbai
Date : 5 June 2007
Mumbai
Date : 5 June 2007
Venkat Ramaswamy
Wholetime Director
Shilpa Soti
Company Secretary
Edelweiss
Consolidated Profit and Loss Account for the year ended 31 March 2007
Currency Indian Rupees in millions
Schedules
INCOME
Fee and commission income
Trading and arbitrage income
Investment and dividend income
Interest income
Other income
16
17
18
19
20
TOTAL INCOME
EXPENDITURE
Employee costs
Operating and other expenses
Financial expenses
Depreciation
Goodwill on consolidation written off
21
22
23
2007
2006
2,154.30
1,142.19
264.67
128.59
22.78
989.63
442.81
63.42
26.26
11.21
3,712.53
1,533.33
808.18
932.91
186.89
37.70
0.30
331.33
463.46
53.82
20.49
-
TOTAL EXPENDITURE
1,965.98
869.10
PROFIT BEFORE TAXATION
1,746.55
664.23
647.35
(7.07)
5.70
221.39
1.49
3.34
1100.57
438.01
-
28.74
(4.03)
(3.99)
Provision for taxation (excluding impact of extraordinary items)
- Current tax
- Deferred tax (credit) / charge
- Fringe benefit tax
PROFIT AFTER TAXATION AND BEFORE EXTRAORDINARY ITEM
Extraordinary item
Less: Tax on extraordinary item
Less: Deferred tax asset on extraordinary item
PROFIT AFTER TAXATION AND EXTRAORDINARY ITEM
Share of minority interest in profit for the year
Adjustment on account of change in minority interest
PROFIT AFTER TAXATION AND MINORITY INTEREST
PROFIT AND LOSS ACCOUNT BALANCE BROUGHT FORWARD
Less: Adjustment on account of minority interest
-
20.72
1100.57
417.29
1.67
-
0.32
0.40
1,098.90
416.57
653.79
-
296.67
0.70
653.79
295.97
PROFIT AVAILABLE FOR APPROPRIATION
1,752.69
712.54
APPROPRIATIONS
Transfer to Special Reserve under Section 45-IC of the RBI Act, 1934
Proposed dividend
Interim dividend
Dividend distribution tax
Dividend distribution tax for prior year
Transfer to general reserve
Transfer to debenture redemption reserve
Profit and loss account balance carried to balance sheet
22.96
11.27
1.58
27.06
1.88
1,687.94
6.55
4.88
0.68
0.07
4.39
42.18
653.79
1,752.69
712.54
Basic earning per share before extraordinary item (Rs.) (Face value Re. 1)
Basic earning per share after extraordinary item (Rs.) (Face value Re.1)
24.4
24.4
26.81
26.81
13.46
12.82
Diluted earning per share before extraordinary item (Rs.) (Face value Re.1)
Diluted earning per share after extraordinary item (Rs.) (Face value Re.1)
24.4
24.4
24.91
24.91
11.77
11.21
Significant Accounting Policies
Notes to Financial Statements
1
24
The Schedules referred to above form an integral part of the Profit and Loss Account.
As per our report attached .
For BSR & Associates
Chartered Accountants
For and on behalf of the Board of Directors
Akeel Master
Partner
Membership No: 046768
Rashesh Shah
Managing Director
Mumbai
Date : 5 June 2007
Mumbai
Date : 5 June 2007
Venkat Ramaswamy
Wholetime Director
Shilpa Soti
Company Secretary
35
Edelweiss
Cash flow statement for the year ended 31 March 2007
Schedules
Currency Indian Rupees in millions
A Cash flow from operating activities
Profit before taxation
Adjustments for
Depreciation
Net Provision for Loss on Equity Index/Stock Options
Miscellaneous balance written off
Provision for gratuity
Profit on sale of investments
Income from investments in partnership firm
Dividend on current investments
Diminution in value of long term investments written back (net)
Diminution in value of current investments written back (net)
Goodwill on consolidation written off
Profit on sale of fixed assets (net)
Provision for doubtful debts written back
Provision for doubtful debts
Bad debts and advances written off
Effect of change in foreign exchange
Financial expenses
Extraordinary item
Interest income (gross)
Operating cash flow before working capital changes
2007
2006
1,746.55
664.23
37.70
124.61
8.33
(200.08)
(19.20)
(12.88)
(1.37)
0.30
(0.01)
(1.06)
3.81
2.89
186.89
(68.27)
20.49
2.42
0.28
1.75
(45.59)
(2.72)
(0.70)
(2.77)
(1.50)
0.01
0.12
(0.11)
53.83
(28.74)
(25.50)
1,808.21
635.50
Adjustments for
Increase in stock in trade
Increase in sundry debtors
Increase in other current assets
Increase in loans and advances
Increase in current liabilities
(4,351.91)
(224.74)
(36.73)
(2,039.22)
268.35
(1,142.36)
(242.28)
(201.16)
723.80
Cash used in operations
Income taxes paid
(4,576.04)
566.89
(226.50)
218.33
Net cash used for operating activities during the year- A
(5,142.93)
(444.83)
39.84
19.20
(140.76)
0.20
(286.70)
18.64
0.70
(55.48)
0.01
(169.81)
(368.22)
(205.94)
2,942.99
1,393.69
7.65
(16.15)
(2.26)
3,368.37
(3.67)
(165.17)
834.80
1.95
(0.11)
(2.80)
(0.44)
372.14
12.63
(50.84)
7,525.45
1,167.33
2,014.30
516.56
636.52
2,650.82
119.91
636.52
B Cash flow from Investing Activities
Interest received
Dividend received on current investments
Purchase of fixed assets
Proceeds from sale of fixed assets
Purchase of investments (net)
Net cash used for investing activities during the year - B
C Cash flow from Financing activities
Proceeds from issue of share capital including premium received
Change in minority interest
Share application money
Change in foreign exchange translation reserve
Dividend paid
Dividend distribution tax paid
Proceeds from unsecured loans
(Repayment of) / Proceeds from secured loans
Interest paid on loans
Net cash generated from financing activities during the year - C
Net Increase in cash and cash equivalents (A+B+C)
Cash and cash equivalent as at the beginning of the year
Cash and cash equivalent as at the end of the year
11
11
As per our report attached .
36
For BSR & Associates
Chartered Accountants
For and on behalf of the Board of Directors
Akeel Master
Partner
Membership No: 046768
Rashesh Shah
Managing Director
Mumbai
Date : 5 June 2007
Mumbai
Date : 5 June 2007
Venkat Ramaswamy
Wholetime Director
Shilpa Soti
Company Secretary
Edelweiss
Schedules to the consolidated financial statements for the year ended
31 March 2007
(Currency Indian Rupees in millions)
1
Significant accounting policies
1.1
Principles of consolidation
a)
The consolidated financial statements relate to Edelweiss Capital Limited (‘the Company’) and its subsidiary
entities and associates (‘the Group’). The consolidated financial statements have been prepared on the following
basis:
•
In respect of Subsidiary Enterprises (including partnership firm), the financial statements have been
consolidated on a line-by-line basis by adding together the book values of like items of assets, liabilities,
income and expenses, after as far as possible eliminating intra-group balances and intra-group transactions
resulting in unrealised profits or losses in accordance with Accounting Standard 21 - Consolidated Financial
Statements issued by the Institute of Chartered Accountants of India.
•
In case of Associate Enterprises (including partnership firm), the financial statements have been consolidated
as per Accounting Standard 23 – Accounting for investment in Associates issued by the Institute of
Chartered Accountants of India.
•
Assets and liabilities of the foreign subsidiaries are translated into Indian Rupees at the rate of exchange
prevailing as at the balance sheet date. Revenue and expense are translated into Indian Rupees at the
average exchange rate prevailing during the year and the resulting net translation adjustment has been
disclosed as Foreign Exchange Translation Reserve in Reserves and Surplus.
•
The excess of cost over the Company’s investments in the subsidiary company is recognised in the
consolidated financial statements as Goodwill which has been charged off in the Profit and Loss Account
in the year of acquisition. The excess of Company’s share in equity and reserves of the subsidiary company
over the cost of acquisition is treated as Capital Reserve.
•
The share of Minority Interest in the net profit of subsidiaries / partnership firms for the year is identified and
adjusted against the income of the group to arrive at the net income attributable to the Company.
•
The share of Minority Interest in the net assets of subsidiaries / partnership firms is identified and presented
in the consolidated financial statements separate from liabilities and the equity of the Company.
•
The consolidated financial statements are prepared using uniform accounting policies for like transactions
and other events in similar circumstances and are presented in the same manner as the Company’s
separate financial statements.
b)
Investments other than in subsidiaries and associates have been accounted as per Accounting Standard 13 on
Accounting for Investments.
c)
The subsidiaries enterprises and associates considered in the consolidated financial statements :
Name of the Entity
Country of
Incorporation
Proportion of
ownership interest
as on 31 March 2007
Edelweiss Securities Private Limited
India
100.00%
Crossborder Investments Private Limited
India
100.00%
Edelweiss Insurance Brokers Limited
India
71.91%
Edelweiss Commodities & Advisors Limited
India
100.00%
Edelweiss Capital USA, LLC
U.S.A.
100.00%
ECL Finance Limited
India
100.00%
EC Global Limited *
Mauritius
100.00%
Edelweiss Real Estate Advisors Private Limited
India
100.00%
Edelweiss Trustee Services Private Limited
India
100.00%
Edelcap Securities and Transaction Services Private Limited*
India
100.00%
(Formerly Tiffin Investments Private Limited)
* held through Crossborder Investments Private Limited
d)
During the year, the Company has increased its stake in Edelcap Securities and Transaction Services Private
Limited (Formerly Tiffin Investments Private Limited) from 49% to 100% on 12 December 2006 through Crossborder
Investments Private Limited, a 100% subsidiary of the Company.
37
Edelweiss
Schedules to the consolidated financial statements for the year ended
31 March 2007 (Continued)
(Currency Indian Rupees in millions)
1.1
1.2
Principles of consolidation (Continued)
e)
During the financial year 2005-06, the Company has diluted its interest in Edelweiss Insurance Brokers Limited, a
subsidiary company, from 99.95% to 79.96% on 24 October 2005 and from 79.96% to 71.91% on 31 March
2006. In the absence of separate financial statements drawn on the said dates of dilution, it is assumed that the
profits of the subsidiary has arisen evenly through out the year for arriving at the share of profit of the minority
interest in the consolidated financial statements.
f)
EC Global Limited, a subsidiary company of Crossborder Investments Private Limited, was incorporated on 29
December 2004. The first financial statements drawn by the subsidiary covering the period 29, December 2004
to 31 March 2006 has been considered for the purpose of consolidation for the previous year. The subsidiary had
no commercial operations during the period 29 December 2004 to 31 March 2006 and as such had no impact on
the previous year’s consolidated financial statements.
Basis of preparation of financial statements
The accompanying financial statements are prepared under the historical cost convention, on the accrual basis of accounting
and comply with the accounting standards issued by the Institute of Chartered Accountants of India (to the extent
applicable) and in accordance with the generally accepted accounting principles and the provisions of the Companies Act,
1956 as adopted consistently by the Company. The financial statements are presented in Indian rupees in millions.
1.3
Use of estimates
The preparation of the financial statements in conformity with the generally accepted accounting principles requires the
management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and
expenses and disclosure of contingent assets and liabilities. 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 differences of actual to such estimates are prospectively made in current or future periods.
1.4
38
Revenue recognition
•
Advisory and transactional services fee income is accounted for, on an accrual basis in accordance with the terms
& contracts entered into between the Company and the counterparty.
•
Brokerage income is recognised on trade date basis and is inclusive of service tax.
•
Profit / (loss) on Error trades are included in "Income from Arbitrage and Trading in Securities and Derivatives" and
"Income from Arbitrage and Trading in Commodity Derivatives" under the respective heads.
•
Brokerage and Commission income earned from Insurance companies is recognised on accrual basis exclusive of
service tax.
•
Portfolio management fees are accounted on accrual basis as follows:
a.
In case of percentage based fees, as a percentage of the unaudited Net Asset Value at the end of each
financial quarter, on a quarterly basis.
b.
In case of return based fee, as a percentage of the annual profit, on an annual basis.
•
Interest income is recognised on accrual basis.
•
Dividend income is recognised when the right to receive payment is established.
•
Revenue from fund management services is recognised in accordance with the terms and conditions of the
investment management agreement between the Company and the Fund. The amount recognised as revenue is
exclusive of service tax.
•
In respect of other heads of income, income from depository operations etc., the Company follows the practice of
accruing income on a prudent basis.
•
Revenue from rendering of trustee services is recognised in accordance with the terms and conditions of the
Compensation Agreement between the Company and the Fund. The amount recognised as revenue is exclusive
of service tax.
Edelweiss
Schedules to the consolidated financial statements for the year ended
31 March 2007 (Continued)
(Currency Indian Rupees in millions)
1.5
Equity index / stock - futures
a)
"Initial Margin", representing initial margin paid, and "Margin Deposits", representing additional margin over and
above initial margin, for entering into contracts for Equity index / stock futures, which are released on final settlement/
squaring-up of underlying contracts, are disclosed as under Loans and Advances.
b)
Equity index / stock futures are marked-to-market on a daily basis. Debit or credit balance disclosed under Loans
and Advances or Current Liabilities, respectively, in the "Mark-to-Market Margin - Equity Index / Stock Futures
Account", represents the net amount paid or received on the basis of movement in the prices of Index / Stock
Futures till the balance sheet date.
c)
As on the balance sheet date, profit / loss on open positions in index / stock futures are accounted for as follows:
d)
1.6
1.7
•
Credit balance in the "Mark-to-Market Margin - Equity Index / Stock Futures Account", being anticipated
profit, is ignored and no credit for the same is taken in the profit and loss account.
•
Debit balance in the "Mark-to-Market Margin - Equity Index / Stock Futures Account", being anticipated
loss is adjusted in the profit and loss account.
On final settlement or squaring-up of contracts for equity index / stock futures, the profit or loss is calculated as the
difference between settlement / squaring-up price and contract price. Accordingly, debit or credit balance pertaining
to the settled / squared-up contract in "Mark-to-Market Margin - Equity Index / Stock Futures Account" is
recognised in the profit and loss account. When more than one contract in respect of the relevant series of equity
index futures contract to which the squared-up contract pertains is outstanding at the time of the squaring-up of
the contract, the contract price of the contract so squared-up is determined using weighted average method for
calculating profit / loss on squaring-up.
Equity index / stock - options
a)
"Equity Index / Stock Options Margin Account", representing initial margin paid, and "Margin Deposit", representing
additional margin paid over and above initial margin, for entering into contracts for equity index / stock options,
which are released on final settlement / squaring-up of underlying contracts, are disclosed under Loans and
Advances.
b)
"Equity Index / Stock Option Premium Account" represents premium paid or received for buying or selling the
options, respectively.
c)
As at the balance sheet date, in the case of long positions, provision is made for the amount by which the premium
paid for those options exceeds the premium prevailing on the balance sheet date, and in the case of short
positions, for the amount by which premium prevailing on the balance sheet date exceeds the premium received
for those options, and reflected in "Provision for Loss on Equity Index / Stock Option Account".
d)
When the option contracts are squared-up before expiry of the options, the premium prevailing on that date is
recognised in profit and loss account. If more than one option contract in respect of the same index / stock with
the same strike price and expiry date to which the squared-up contract pertains is outstanding at the time of
squaring-up of the contract weighted average method is followed for determining profit or loss. On expiry of the
contracts and on exercising the options, the difference between final settlement price and the strike price is
transferred to the profit and loss account. In both the above cases premium paid or received for buying or selling
the option, as the case may be, is recognised in the profit and loss account for all squared-up / settled contracts.
Commodities stock - futures
a)
"Initial Margin", representing initial margin paid, and "Margin Deposits", representing additional margin over and
above initial margin, for entering into contracts for commodities futures, which are released on final settlement /
squaring-up of underlying contracts, are disclosed under Loans and Advances.
b)
Commodities futures are marked-to-market on a daily basis. Debit or credit balance disclosed under Loans and
Advances or Current Liabilities respectively, in the "Mark-to-Market Margin - Commodities Stock Futures Account",
represents the net amount paid or received on the basis of movement in the prices of Commodities Futures till the
balance sheet date.
c)
As on the balance sheet date, profit / loss on open positions in Commodities Futures are accounted for as follows:
•
Credit balance in the "Mark-to-Market Margin - Commodities Stock Futures Account", being anticipated
profit, is ignored and no credit for the same is taken in the profit and loss account.
•
Debit balance in the "Mark-to-Market Margin - Commodities Stock Futures Account", being anticipated
loss, is adjusted in the profit and loss account.
39
Edelweiss
Schedules to the consolidated financial statements for the year ended
31 March 2007 (Continued)
(Currency Indian Rupees in millions)
1.7
Commodities stock - futures (Continued)
d)
1.8
On final settlement or squaring-up of contracts for Commodities Futures, the profit or loss is calculated as the
difference between settlement / squaring-up price and contract price. Accordingly, debit or credit balance pertaining
to the settled / squared-up contract in "Mark-to-Market Margin - Commodities Stock Futures Account" is recognised
in the profit and loss account. When more than one contract in respect of the relevant series of commodities
futures contract to which the squared-up contract pertains is outstanding at the time of the squaring-up of the
contract, the contract price of the contract so squared-up is determined using weighted average method for
calculating profit / loss on squaring-up.
Fixed assets and depreciation
Fixed assets are stated at cost less accumulated depreciation. The cost of fixed assets comprises of purchase price and
any attributable cost of bringing the asset to its working condition for its intended use.
The Company provides pro-rata depreciation from the month in which asset is acquired / put to use. In respect of assets
sold, pro-rata depreciation is provided upto the month in which the asset is sold.
Depreciation is charged on written down value basis at the rates prescribed by the Schedule XIV of the Companies Act,
1956 as given below:
Class of asset
Rate of depreciation
Office equipment
13.91%
Computers
40.00%
Vehicles
25.00%
Electrical fittings
13.91%
Furniture and fixtures
18.10%
Leasehold improvements are amortized on a straight-line basis over the period of lease.
All fixed assets individually costing less than Rs. 5,000 are fully depreciated in the year of installation.
Software expense includes expenditure by way of license for various office applications which have been written off in the
year of purchase on a prudent basis.
1.9
Impairment of assets
The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any
such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the
asset or the recoverable amount of the cash generating unit which the asset belongs to, is less than its carrying amount,
the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized
in the profit and loss account. If at the balance sheet date there is an indication that a previously assessed impairment loss
no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a
maximum of depreciable historical cost.
1.10
1.11
Stock-in-trade
a)
The securities acquired with the intention of short-term holding and trading positions are considered as stock-intrade and disclosed as current assets.
b)
The securities and commodities held as stock-in-trade under current assets are valued at lower of average cost
and market value. In case of units of Mutual Funds, Net Asset Value is considered as market value.
Investments
Investments are classified into long term investments and current investments. Investments which are intended to be held
for one year or more are classified as long term investments and investments which are intended to be held for less than
one year are classified as current investments.
Long term investments are accounted at cost and any decline in the carrying value other than temporary in nature is
provided for. Current investments are valued at cost or market / fair value, whichever is lower. In case of investments in
units of a Mutual Fund, the Net Asset Value of units is considered as the market / fair value, whichever is lower.
40
Edelweiss
Schedules to the consolidated financial statements for the year ended
31 March 2007 (Continued)
(Currency Indian Rupees in millions)
1.12
Foreign currency transactions
Foreign currency transactions are recorded at the rates of exchange prevailing on the date of the transaction. Exchange
differences, if any arising out of transactions settled during the year are recognised in the profit and loss account.
Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing
exchange rate on that date. The exchange differences, if any, are recognised in the profit and loss account and related
assets and liabilities are accordingly restated in the balance sheet except those related to acquisition of fixed assets which
are adjusted in the carrying amount of the related fixed assets.
1.13
Retirement benefits
Contribution payable to the recognised provident fund, which is a defined contribution scheme, are charged to the profit
and loss account in the period in which they occur.
Gratuity which is a defined benefit is accrued based on the actuarial valuation as at the balance sheet date carried out by
an independent actuary.
Unused leave of staff lapses at year end and accordingly is not encashable.
1.14
Debenture redemption reserve
In terms of Section 117C of the Companies Act, 1956, amounts equivalent to the principal value of the debentures is
transferred to Debenture Redemption Reserve proportionately over the term of the debentures.
1.15
Taxation
Income-tax expense comprises of current tax (i.e. amount of tax for the period determined in accordance with the IncomeTax law), deferred tax charge or credit (reflecting the tax effect of timing differences between accounting income and
taxable income for the period) and fringe benefit tax.
Deferred taxation
The deferred tax charge or credit and the corresponding deferred tax liabilities and assets are recognized using the tax
rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognised only
to the extent there is reasonable certainty that the asset can be realised in future; however, where there is unabsorbed
depreciation or carried forward loss under taxation laws, deferred tax assets are recognised only if there is a virtual
certainty of realisation of the assets. Deferred tax assets are reviewed as at each balance sheet date and written down or
written-up to reflect the amount that is reasonable / virtually certain (as the case may be) to be realised.
Fringe benefit tax
Provision for Fringe benefit tax (FBT) is made on the basis of applicable FBT on the taxable value of chargeable expenditure
of the Company as prescribed under the Income Tax Act, 1961.
Securities transaction tax
Securities transaction tax (STT) to the extent allowable u/s 88E of the Income Tax Act,1961 has been included in provision
for Income Tax.
1.16
Preliminary expenses
Preliminary expenses are charged to the profit and loss account in the year in which they are incurred.
1.17
Operating leases
Lease rentals in respect of operating lease are charged to the profit and loss account as per the terms of the lease
arrangement on a straight line basis.
1.18
Earnings per share
The basic earnings per share is computed by dividing the net profit attributable to the equity shareholders by weighted
average number of equity shares outstanding during the reporting year.
Number of equity shares used in computing diluted earnings per share comprises of the weighted average number of
shares considered for deriving basic earnings per share and also weighted average number of equity shares which would
have been issued on the conversion of all dilutive potential shares. In computing diluted earnings per share only potential
equity shares that are dilutive are included.
41
Edelweiss
Schedules to the consolidated financial statements for the year ended
31 March 2007 (Continued)
(Currency Indian Rupees in millions)
1.19
Employee Stock Option Plans
Pursuant to the Guidance Note issued by the Institute of Chartered Accountants of India on Accounting for Employee
Share-based Payments, the independent valuer computes the fair value of its shares using the earnings capitalization
method considering weighted average adjusted profit after tax for last 3 years of all the subsidiary companies. Accordingly
the difference, if any between the fair value and the issue price is charged to the profit and loss account as the compensation
cost on account of Employee Stock Option Plan over the period of grant and vesting date.
1.20
Provisions and contingencies
The Company creates a provision when there is present obligation as a result of a past event that probably requires an
outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent
liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an
outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of
outflow of resources is remote, no provision or disclosure is made.
Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer
probable that the outflow of resources would be required to settle the obligation, the provision is reversed.
Contingent assets are not recognised in the financial statements. However, contingent assets are assessed continually
and if it is virtually certain that an economic benefit will arise, the asset and related income are recognised in the period in
which the change occurs.
1.21
Reserve Bank of India Prudential Norms
Crossborder Investments Private Limited and ECL Finance Limited, the subsidiaries of the Company follow the guidelines
issued by the Reserve Bank of India, in respect of income recognition, provisioning for non-performing assets and
valuation of investments.
42
Edelweiss
Schedules to the consolidated financial statements as at
31 March 2007 (Continued)
(Currency Indian Rupees in millions)
2007
2006
92.50
92.50
7.50
7.50
100.00
100.00
44.92
37.84
0.86
-
2.06
-
2.60
-
50.44
37.84
13.82
13.82
2 Share capital
Authorised :
92,500,000 ( Previous year 92,500,000 ) Equity Shares of Re. 1 each
7,500,000 ( Previous year 7,500,000 ) Preference Shares of Re. 1 each
Issued, Subscribed and Paid-up:
44,916,806 ( Previous year 37,836,166 ) Equity Shares of Re. 1 each,
fully paid-up
861,486 ( Previous year Nil ) 0.01% Convertible Preference Shares
of Re.1 each,fully paid-up (#)
2,059,107 ( Previous year Nil ) 8% Convertible Preference Shares
of Re.1 each,fully paid-up (#)
2,600,000 ( Previous year Nil ) 12% Reedemable Preference Shares
of Re.1 each, fully paid-up
# These shares will be converted into equity shares before an intial public offering
of the Company
3 Reserves and surplus
Capital Reserve
General Reserve
As per last Balance Sheet
Add : Transfer from Profit and Loss account
4.39
-
27.06
4.39
31.45
4.39
Foreign Exchange Translation Reserve
As per last Balance Sheet
(0.13)
(0.02)
7.65
(0.11)
7.52
(0.13)
987.36
161.80
2,930.39
825.56
3,917.75
987.36
74.45
32.28
1.88
42.18
76.33
74.45
As per last Balance Sheet
12.49
5.94
Add : Transfer from Profit and Loss account
22.96
6.55
35.45
12.49
1,687.94
653.79
5,770.26
1,746.17
Add : Additions during the year
Securities Premium Account
As per last Balance Sheet
Add : Additions during the year
Debenture Redemption Reserve
As per last Balance Sheet
Add : Transfer from Profit and Loss account
Special Reserve under Section 45-IC of the Reserve Bank of
India Act, 1934, of India
Balance in Profit and Loss account
43
Edelweiss
Schedules to the consolidated financial statements as at
31 March 2007 (Continued)
(Currency Indian Rupees in millions)
2007
2006
697.44
-
697.44
-
0.05
0.05
0.03
0.02
-
-
0.05
3.38
1.67
0.01
1.95
1.10
0.32
5.05
3.38
696.30
-
696.30
-
1,398.79
3.43
25.45
30.17
7.21
-
6.05
6.02
26.12
-
2.72
35.03
67.55
71.22
172.22
1,800.00
23.50
444.70
85.25
1,300.00
26.34
162.36
271.55
-
1,273.66
2.95
433.91
0.01
3,802.28
433.92
4 Minority Interest
EC Global Limited
Opening Balance
Add: Investment by Minority
Edelcap Insurance Advisors
Opening Balance
Add: Share of profit for the year
Less: Adjustment on account of change in minority interest
Edelweiss Insurance Brokers Limited
Opening Balance
Add: Investment by Minority
Add: Adjustment on account of change in minority interest
Add: Share of profit for the year
Crossborder Investments Private Limited
Opening Balance
Add: Investment by Minority
5 Secured loans
Bank overdraft
(Secured by way of pledge of securities and fixed deposits)
Loan from Bank
(Secured by way of pledge of fixed deposit)
Vehicles loan
(Secured by hypothecation of vehicles acquired)
Housing loan
(Secured by hypothecation of flat acquired)
Other loans
(Demand loan secured by way of pledge of securities, placed with the
Company by customers, includes interest accrued and due Rs. 2.72,
(Previous year Rs. 35.03))
6 Unsecured loans
(Due within one year, unless otherwise stated)
Optionally fully convertible debentures
13.4% Fully Convertible Debentures
Nifty linked Debentures
Inter Corporate Deposit
Deposits accepted
Commercial Paper
Less: Unamortised discount on commercial paper
Other loans
44
Previous year
58.77
105.72
9.88
Vehicles
Total
3.13
Furniture and fixtures
46.51
0.87
Electrical fittings
Computers
13.10
Office equipment
-
32.23
As at
1 April
2006
Leasehold improvements
Land
Particulars
7 Fixed Assets
55.48
108.07
2.26
0.39
38.12
-
7.48
20.01
39.81
Additions
during
the year
8.53
0.52
-
-
0.52
-
-
-
-
Deductions
during
the year
Gross Block
105.72
213.27
12.14
3.52
84.11
0.87
20.58
52.24
39.81
As at
31 March
2007
-
18.01
38.48
2.31
1.61
19.01
0.01
2.47
13.07
As at
1 April
2006
20.49
37.70
2.00
0.53
16.66
0.12
2.55
15.84
-
0.02
0.33
-
-
0.33
-
-
-
-
On Additions On Deductions
during
during
the year
the year
Depreciation
-
38.48
75.85
4.31
2.14
35.34
0.13
5.02
28.91
As at
31 March
2007
67.24
137.42
7.83
1.38
48.77
0.74
15.56
23.33
39.81
As at
31 March
2007
-
67.24
7.57
1.52
27.50
0.86
10.62
19.16
As at
31 March
2006
Net Block
Edelweiss
Schedules to the consolidated financial statements as at
31 March 2007 (Continued)
(Currency Indian Rupees in millions)
45
Edelweiss
Schedules to the consolidated financial statements as at
31 March 2007 (Continued)
(Currency Indian Rupees in millions)
2007
2006
60.78
183.76
153.90
5.01
Long term investments in equity/preference shares - unquoted
38.55
61.51
Less : Diminution in value of investments
18.41
31.29
20.14
30.22
- Quoted investments in units of mutual fund/securities
179.54
106.20
- Unquoted investments in units of mutual fund
400.19
-
579.73
106.20
0.17
1.54
579.56
104.66
10.00
-
824.38
323.65
8 Investments
Long term investments - quoted
Long term investment in units of mutual fund/venture capital fund - unquoted
Current investments (others)
Less : Diminution in value of investments
Application for UTI Gold Fund (pending allotment)
Aggregate of quoted long term investment
- At book value
60.78
183.76
117.79
325.61
153.90
5.01
20.14
30.22
- At book value
179.37
104.66
- At market value
185.09
158.83
400.19
-
- At market value
Aggregate of unquoted long term investment in units of mutual fund/
venture capital fund
- At book value
Aggrigate of unquoted long term investment in equity/ preference shares
- At book value
Aggrigate of quoted Current investment
Aggrigate of unquoted Current investment
- At book value
46
Edelweiss
Schedules to the consolidated financial statements as at
31 March 2007 (Continued)
(Currency Indian Rupees in millions)
Face value
Rupees
Quantity
(Nos.)
10
65,775
2007
Quantity
(Nos.)
2006
48.35
-
-
9 Stock-in-trade
A. Equity Shares (Quoted)
A C C Limited
Aban Loyd Chiles Offshore Limited
2
3,600
6.85
-
-
Aban Offshore Limited
2
400
0.77
-
-
ABB Limited
10
34
0.12
604
1.77
Abhishek Industries Limited
10
-
-
100,000
2.89
Aditya Birla Nuvo Limited
10
187
0.20
-
-
Ador Welding Limited
10
-
-
2,572
1.03
Aegis Logistics Limited
10
-
-
4,635
1.16
Ahmednagar Forgings Limited
10
-
-
6,248
1.02
Aksh Optifibre Limited
5
-
-
18,693
1.18
Alfa Laval India Limited
10
5,017
4.26
-
-
Allahabad Bank
10
2,450
0.18
-
-
Alok Industries Limited
10
-
-
2,600
0.19
Alstom Project India Limited
10
-
-
32,950
12.15
Amtek Auto Limited
2
600
0.22
3,300
1.04
Apollo Tyre Limited
10
740
0.20
685
0.20
Aptech Limited
10
10
0.01
-
-
Arvind Mills Limited
10
210,700
9.15
-
-
Ashok Leyland Limited
1
-
-
22,000
0.67
Asian Hotels Limited
10
-
-
3,355
2.01
Asian Paints India Limited
10
282
0.20
-
-
Associated Cement Company Limited
10
254,625
187.20
67,009
52.39
Atlanta Limited
10
550
0.15
-
-
Atul Limited
10
-
-
17,300
2.01
Aurobindo Pharma Limited
5
-
-
1,130
0.76
Aventis Pharma Limited
10
160
0.19
-
-
Bajaj Auto Finance Limited
10
4,282
10.39
-
-
Bajaj Auto Limited
10
32,100
77.91
8,611
23.59
Bajaj Hindusthan Limited
1
347,665
61.37
-
-
Balaji Telefims Limited
2
-
-
1,095
0.20
Balkrishna Industry Limited
10
-
-
15,765
14.00
Balmer Lawrie & Company Limited
10
5,214
2.11
-
-
Balrampur Chini Mills Limited
1
276,600
16.18
-
-
Bank of Baroda
10
281,400
57.48
5,730
1.32
Bank Of India Limited
10
5,700
0.81
2,038
0.27
Bannari Amman Sugars Limited
10
-
-
740
1.00
Bata India Limited
10
8,400
1.16
-
-
Bharat Earth Movers Limited
10
1,400
1.52
927
1.34
Bharat Electronics Limited
10
1,375
2.07
-
-
Bharat Heavy Electricals Limited
10
6,346
14.33
20,880
45.30
Bharat Petroleum Corporation Limited
10
33,290
10.08
31
0.01
Bharti Airtel Limited
10
1,520
1.16
-
-
Bharti Tele-Ventures Limited
10
-
-
948
0.38
Biocon Limited
5
200
0.10
405
0.18
Birla Corporation Limited
10
-
-
690
0.21
Bombay Dyeing & Manufacturing Company Limited
10
13,535
7.32
350
0.20
47
Edelweiss
Schedules to the consolidated financial statements as at
31 March 2007 (Continued)
(Currency Indian Rupees in millions)
Face value
Rupees
Quantity
(Nos.)
2007
Quantity
(Nos.)
2006
-
-
9 Stock-in-trade (Continued)
Bongaigaon Refinery & Petrochemicals Limited
48
10
9,000
0.37
Britannia Industries Limited
10
2,955
3.54
-
-
C & C Constructions Limited
10
111,815
18.99
-
-
Cadila Healthcare Limited
5
-
-
2,040
1.10
Cairn India Limited
10
70,000
8.71
-
-
Canara Bank
10
156,800
30.36
12,910
3.45
Carborundum Universal Limited
2
-
-
6,000
0.92
Centurion Bank Of Punjab Limited
1
11,200
2.18
-
-
Century Textiles & Industries Limited
10
239,700
129.70
-
-
CESC Limited
10
30,800
10.86
-
-
Chambal Fertilizers & Chemicals Limited
10
13,800
0.43
-
-
Chennai Petroleum Corporation Limited
10
1,100
0.20
-
-
622
0.15
20,031
12.87
-
-
400
0.20
CIPLA Limited
2
CMC Limited
10
Colgate Palmolive (India) Limited
10
-
-
10,500
4.35
Corporation Bank Limited
10
-
-
594
0.22
Crew B.O.S. Products Limited
10
100
0.02
-
-
CRISIL Limited
10
826
2.07
-
-
Cummins India Limited
2
70,300
17.94
-
-
Dabur India Limited
1
690
0.06
60
0.01
Deccan Aviation Limited
10
Deccan Chronicle Holdings Limited
2
4,238
0.39
-
-
109,105
13.65
2,800
1.16
Dena Bank
10
200
0.01
-
-
Development Credit Bank Limited
10
320
0.02
-
-
Disa India Limited
10
256
0.34
-
-
Divi's Laboratories Limited
10
1,250
3.72
-
-
Dolphin Offshore Enterprises Limited
10
2,197
0.42
-
-
Dr. Reddy's Laboratories Limited
5
7,334
5.04
3,308
4.70
East India Hotel Limited
10
-
-
7,112
4.97
Elder Pharamaceuticals Limited
10
-
-
700
0.20
Emkay Share and Stock Brokers Limited
10
5
0.01
-
-
Escorts Limited
10
4,800
0.55
-
-
Essar Oil Limited
10
1,491,432
77.26
-
-
Essar Shipping Limited
10
11,956,402
514.71
-
-
Everest Industries Limited
10
-
-
2,450
0.45
Financial Technologies (India) Limited
2
-
-
760
0.94
Firstsource Solutions Limited
10
100
0.01
-
-
GAIL (India) Limited
10
17,928
4.70
90
0.03
Gateway Distriparks Limited
10
14,000
2.31
-
-
Gayatri Projects Limited
10
350
0.08
-
-
Gemini Communication Limited
5
33,438
9.33
-
-
Geodesic Information System Limited
2
GlaxoSmithKline Pharmaceuticals Limited
10
Glenmark Pharmaceuticals Limited
2
-
-
10,000
2.03
668
0.74
-
-
2,400
1.47
9
0.01
Global Broadcast News Limited
10
274
0.15
-
-
GMR Infrastructure Limited
10
443,000
159.61
-
-
Godavari Fertilisers & Chemicals Limited
10
3,160
0.38
-
-
Edelweiss
Schedules to the consolidated financial statements as at
31 March 2007 (Continued)
(Currency Indian Rupees in millions)
Face value
Rupees
Quantity
(Nos.)
2007
Quantity
(Nos.)
2006
9 Stock-in-trade (Continued)
Goodlass Nerolac Paints Limited
1
-
-
1,200
1.01
Graphite India Limited
10
Grasim Industries Limited
10
-
-
1,650
0.48
68,149
142.62
11
0.02
Great Eastern Shipping Limited
10
55,800
11.17
5,500
0.89
Great Offshore Limited
10
340
0.20
-
-
GTL Limited
10
177,000
23.93
1,665
0.23
Gujarat Alkalies and Chemicals Limited
10
Gujarat Ambuja Cement Limited
2
Gujrat Heavy Chemicals Limited
10
46,200
5.37
-
-
1,162,122
123.97
128,142
12.10
-
-
9,780
1.17
Gujrat Sidhee Cement Limited
10
-
-
198,609
3.00
Hanung Toys and Textiles Limited
10
5,523
0.65
-
-
HCL Technologies Limited
2
44,072
12.84
176
0.11
HDFC Bank Limited
10
254
0.24
1,347
1.03
Hero Honda Motors Limited
2
160
0.11
7,221
6.43
Hexaware Technologies Limited
2
2,000
0.33
20,000
2.14
Himachal Futuristic Communication Limited
10
-
-
94,280
2.15
Hindalco Industries Limited (Partly paid up shares)
1
608,625
70.91
5,643
1.03
Hinduja TMT Limited
10
1,297
0.89
460
0.20
Hindustan Composites Limited
10
36,685
2.96
-
-
Hindustan Construction Company Limited
1
243,600
21.80
8,039
1.29
Hindustan Lever Limited
1
2,768
0.55
231
0.06
Hindustan Petroleum Corporation Limited
10
9,372
2.32
1,987
0.64
Hindustan Zinc Limited
10
2,600
1.47
1,380
0.51
Housing Development Finance Corporation Limited
10
200
0.30
1,226
1.64
IBP Limited
10
162,083
65.90
-
-
ICICI Bank Limited
10
2,821
2.41
7,638
4.50
Idea Cellular Limited
10
47,816
4.17
-
-
IFCI Limited
10
2,764,125
77.66
-
-
I-Flex Solutions Limited
5
37,570
74.88
-
-
India Cements Limited
10
732,250
118.59
-
-
Indiabulls Financial Services Limited
2
1,500
0.63
890
0.23
Indiabulls Real Estate Limited
2
2,901
0.87
-
-
Indian Bank
10
2,416
0.22
-
-
Indian Hotels Company Limited
10
-
-
40
0.05
Indian Oil Corporation Limited
10
30,939
12.36
125,000
5.53
Indian Overseas Bank Limited
10
-
-
2,597
0.25
Indian Petrochemicals Corporation Limited
10
251,898
67.48
97
0.03
Indian Resorts Hotels Limited
1
251
0.10
-
-
Indraprasta Gas Limited
10
-
-
1,360
0.20
Indus Fila Limited
10
337
0.05
-
-
IndusInd Bank Limited
10
46,200
1.94
-
-
Industrial Development Bank of India Limited
10
31,350
2.43
-
-
Infosys Technologies Limited
5
88,398
178.32
44,331
132.17
Infotech Enterprises Limited
5
3,355
1.21
345
0.18
Infrastructure Development Finance Company Limited
10
67,850
5.68
-
-
Ingersoll Rand (India) Limited
10
700
0.20
-
-
International Travel House Limited
10
21,885
3.32
-
-
49
Edelweiss
Schedules to the consolidated financial statements as at
31 March 2007 (Continued)
(Currency Indian Rupees in millions)
Face value
Rupees
Quantity
(Nos.)
1
81,764
IVRCL Infrastructure and Projects Limited
2
J.K. Industries Limited
10
Jain Irrigation System Limited
10
2007
Quantity
(Nos.)
2006
12.18
160,847
31.33
13,000
3.79
14,000
3.89
-
-
10,560
1.13
-
-
8,400
2.03
9 Stock-in-trade (Continued)
ITC Limited
50
Jaiprakash Associates Limited
10
69,300
36.78
-
-
Jaiprakash Hydro-Power Limited
10
406,250
11.52
-
-
Jet Airways (India) Limited
10
5,270
3.34
9
0.01
Jindal Steel & Power Limited
5
1,000
2.36
-
-
JSW Steel Limited
10
42,900
19.19
-
-
Jyoti Structured Limited
10
-
-
6,820
2.76
Kalpataru Power Transmissions Limited
10
-
-
25
0.05
KEC International Limited
10
4,500
2.32
-
-
Kirloskar Brothers Limited
2
Kotak Mahindra Bank Limited
10
-
-
3,040
1.01
24,205
10.60
320
0.08
KPIT Cummins Infosystems Limited
2
-
-
1,727
0.52
Krone Communications Limited
10
-
-
104
0.02
Lanco Infratech Limited
10
226,950
35.99
-
-
Larsen & Toubro Limited
2
1,629
2.62
2,014
4.90
LML Limited
10
-
-
17,425
0.61
Lupin Limited
10
1,050
0.64
700
0.67
Mahanagar Telephone Nigam Limited
10
30,904
4.54
66
0.01
Maharastra Seamless Limited
5
-
-
1,470
0.97
Mahindra & Mahindra Limited
10
39,571
30.11
23,774
14.91
Maruti Udyog Limited
5
232
0.19
60,210
51.81
Matrix Laboratries Limited
2
43,597
7.63
50,000
14.08
Mawana Sugars Limited
10
-
-
2,415
0.30
Mc Dowell and Company Limited
10
-
-
3,680
2.49
Moser-Baer Limited
10
-
-
4,000
0.90
Mphasis BFI Limited
10
167,497
46.51
1,600
0.33
Nagarjuna Construction Company Limited
2
6,000
0.95
3,000
1.02
Nahar Capital Financial Services Limited
5
18,300
2.58
-
-
Nahar Exports Limited
5
20,512
0.66
-
-
Natco Pharma Limited
10
-
-
16,585
2.22
Natioanal Thermal Power Corporation Limited
10
-
-
13,000
1.74
National Aluminium Company Limited
10
516
0.12
1,222
0.36
NELCO Limited
10
-
-
20,000
2.67
Network 18 Fincap Limited
5
436
0.15
-
-
New Delhi Television Limited
4
268,400
83.17
27,500
6.62
Neyvelilignite Corporation Limited
10
41,300
2.08
-
-
Nicholas Piramal India Limited
2
-
-
61
0.02
NIIT Technologies Limited
10
65
0.03
-
-
Nirma Limited
5
1,260
0.20
405
0.20
Northgate Technologies Limited
10
-
-
1,800
0.74
NTPC Limited
10
37,375
5.38
-
-
Nucleus Software Exports Limited
10
16,111
9.26
7,500
2.48
Oil and Natural Gas Corporation Limited
10
5,285
4.43
151
0.09
Orchid Chemicals & Pharmaceuticals Limited
10
448,350
114.80
-
-
Edelweiss
Schedules to the consolidated financial statements as at
31 March 2007 (Continued)
(Currency Indian Rupees in millions)
Face value
Rupees
Quantity
(Nos.)
Oriental Bank of Commerce
10
334,200
2007
Quantity
(Nos.)
2006
62.69
50,068
11.76
9 Stock-in-trade (Continued)
Oriental Hotels Limited
10
-
-
7,720
2.73
Pantaloon Retail Limited
2
-
-
3,590
3.65
Parsvnath Developers Limited
10
431,150
111.60
-
-
Patni Computer Systems Limited
2
-
-
650
0.29
Petronet LNG Limited
10
-
-
41,710
2.29
Pfizer Limited
10
270
0.20
-
-
Phoenix Lamps Limited
10
1
0.01
-
-
Polaris Software Lab Limited
5
37,800
6.83
-
-
Power Finance Corporation Limited
10
31,200
3.25
-
-
Praj Industries Limited
2
484,983
171.65
-
-
Prithvi Information Solutions Limited
10
3,501
0.93
-
-
Provogue Limited
10
-
-
9,000
1.24
PSL Limited
10
4,900
0.97
-
-
Punj Lloyd Limited
2
34,500
5.55
-
-
Punjab National Bank
10
113,694
52.92
155,547
73.17
Punjab Tractors Limited
10
40,530
12.40
1,640
0.39
Ranbaxy Laboratories Limited
5
241,395
81.49
248,049
107.24
Raymond Limited
10
-
-
2,460
1.13
Recron Synthetics Limited
10
-
-
80,000
0.77
Reliance Capital Limited
10
299,226
197.51
136,300
69.12
Reliance Capital Ventures Limited
10
-
-
770,000
18.73
Reliance Communication Ventures Limited
5
-
-
3,500
1.08
Reliance Communications Limited
5
507,038
209.02
-
-
Reliance Energy Limited
10
45,834
22.50
37,425
22.89
Reliance Energy Ventures Limited
10
-
-
462,146
20.06
Reliance Industries Limited
10
62,916
84.90
66,147
52.61
Rolta India Limited
10
-
-
780
0.20
Royal Orchid Hotels Limited
10
-
-
4,500
0.89
Sakthi Sugars Limited
10
-
-
10,800
2.02
Satnam Overseas Limited
10
Satyam Computers Services Limited
2
Sesa Goa Limited
10
-
-
10,000
0.75
6,528
3.01
361
0.30
182,485
310.85
5,291
6.32
Shanthi Gears Limited
1
-
-
7,450
0.55
Sharyans Resources Limited
10
991
0.23
-
-
Shipping Corporation of India Limited
10
-
-
31
0.01
Siemens Limited
2
12,886
13.85
-
-
Sobha Developers Limited
10
2,450
1.79
-
-
SRF Limited
10
663,000
80.39
19,500
6.47
SSI Limited
10
37,714
6.87
-
-
State Bank of India
10
358,672
355.48
203,763
197.34
Steel Authority of India Limited
10
257,110
28.16
-
-
Sterlite Industires India Limited
2
646,625
294.40
172
0.26
Sterlite Opticals Telenologies Limited
5
-
-
40,752
3.94
10,000
1.21
-
-
154
0.16
18
0.02
2,750
4.16
-
-
Sujana Metal Products Limited
10
Sun Pharmaceuticals Industries Limited
5
Sun TV Network Limited
10
51
Edelweiss
Schedules to the consolidated financial statements as at
31 March 2007 (Continued)
(Currency Indian Rupees in millions)
Face value
Rupees
Quantity
(Nos.)
2007
Quantity
(Nos.)
2006
9 Stock-in-trade (Continued)
52
Sundaram Fasteners Limited
1
1,081
0.07
-
-
Suven Life Science Limited
2
-
-
35,380
2.84
Suzlon Energy Limited
10
230
0.23
23,200
30.21
Syndicate Bank
10
-
-
2,178
0.19
Syngenta India Limited
10
29
0.01
-
-
Taj GVK Hotels & Resorts Limited
2
-
-
4,400
0.84
Tamil Nadu Newsprint & Papers Limited
10
-
-
12,000
1.17
Tata Chemicals Limited
10
-
-
6,023
0.97
Tata Coffee Limited
10
Tata Consultancy Services Limited
1
Tata Iron and Steel Company Limited
Tata Metaliks Limited
Tata Motors Limited
-
-
3,000
1.03
2,784
3.44
2,300
4.41
10
-
-
2,000
0.85
10
-
-
7,000
0.83
10
74,880
54.35
12,415
11.30
Tata Power Company Limited
10
158
0.08
20
0.01
Tata Sponge Iron Limited
10
-
-
1,450
0.20
Tata Steel Limited
10
84,166
37.18
236,328
124.20
Tata Tea Limited
10
-
-
6
0.01
Tata Teleservices (Maharashtra) Limited
10
700,150
14.77
-
-
Tech Mahindra Limited
10
400
0.57
-
-
Television Eighteen India Limited
5
-
-
364
0.09
The Dhampur Sugar Mills Limited
10
-
-
2
0.01
The Federal Bank Limited
10
-
-
520
0.10
The Karnataka Bank Limited
10
62,500
10.69
22,500
2.25
The Phoenix Mills Limited
10
9,125
13.14
-
-
Thermax Limited
2
-
-
6,510
2.03
Titan Industries Limited
10
54,053
45.56
17,062
14.04
7,700
0.38
-
-
20
0.01
-
-
3,000
0.36
5,610
0.51
Triveni Engineering & Industries Limited
1
Tulip IT Services Limited
10
TV Today Network Limited
5
TVS Motor Company Limited
1
8,900
0.53
-
-
UltraTech Cement Limited
10
20,800
16.06
-
-
Union Bank Of India
10
378,000
37.73
2,106
0.26
Unitech Limited
2
6,000
2.32
-
-
United Breweries Holdings Limited
10
4,722
0.73
-
-
United Phosphorus Limited
2
42,568
9.95
-
-
UTI Bank
10
-
-
1,170
0.40
Varun Shipping Limited
10
-
-
25,600
1.94
Videsh Sanchar Nigam Limited
10
240,153
96.60
98,705
46.10
Vijaya Bank
10
55,200
2.24
-
-
VIP Industries Limited
10
2,228
0.22
-
-
Voltas Limited
1
9,000
0.75
-
-
Wartsila India Limited
10
2,277
1.36
-
-
Welspun India Limited
10
1,010
0.07
-
-
Wipro Limited
2
13,154
7.36
150
0.08
Wire and Wireless (India) Limited
1
6
0.01
-
-
Wockhardt Limited
5
6,000
2.37
3,000
1.52
Yokogawa India Limited
10
35
0.02
-
-
Edelweiss
Schedules to the consolidated financial statements as at
31 March 2007 (Continued)
(Currency Indian Rupees in millions)
Face value
Rupees
Quantity
(Nos.)
2007
Quantity
(Nos.)
2006
9 Stock-in-trade (Continued)
Zee Entertainment Enterprises Limited
1
649
0.16
-
-
Zee News Limited
1
399
0.01
-
-
Zee Telefilms Limited
1
2,800
0.69
22,543
5.08
Zen Technologies Limited
10
-
-
22,000
3.68
Zensar Technologies Limited
10
-
-
2,430
0.49
31,812,343
5,522.68
4,513,672
1,404.18
Sub Total (A)
B. Equity Shares (Unquoted)
Ispat Industries Limited
10
9,000
0.12
9,000
0.20
Citigroup (erst while E-Serve International Limited)
10
1
0.01
1
0.01
9,001
0.13
9,001
0.21
6,000
0.13
6,000
0.13
6,000
0.13
6,000
0.13
9
0.01
-
-
9
0.01
-
-
737
0.11
-
-
737
0.11
-
-
Silver
7,713.3856
150.90
-
-
Gold
62.0000
57.74
-
-
Goldmini
26.2000
24.18
-
-
29,815.0000
0.55
-
-
37,616.5856
233.37
-
-
Sub Total (B)
C. Preference Shares (Unquoted)
Ispat Industries Limited
10
Sub Total (C)
D . Non Convertible Debentures (Unquoted)
Trent Limited
1000
Sub Total (D)
E. Warrants - Quoted
Trent Limited
Sub Total (E)
10
F . Commodity (Quantity in Kgs.)
Gaur Seeds
Sub Total (F)
Grand Total (A+B+C+D+E+F)
5,756.43
1,404.52
- At book value
5,522.68
1,404.18
- Market value
5,627.76
1,433.18
0.13
0.21
0.13
0.13
0.01
-
- At book value
0.11
-
- Market value
0.11
-
- At book value
233.37
-
- Market value
234.36
-
Aggregate of quoted stock in equity shares
Aggregate of unquoted stock in equity shares
- At book value
Aggregate of unquoted stock in preference shares
- At book balue
Aggregate of unquoted stock in debentures
- At book value
Aggregate of quoted stock in warrants
Aggregate of stock in commodities
53
Edelweiss
Schedules to the consolidated financial statements as at
31 March 2007 (Continued)
(Currency Indian Rupees in millions)
Face value
Rupees
Quantity
(Nos.)
2007
Quantity
(Nos.)
2006
9 Stock-in-trade (Continued)
Note :
Of the above, the following shares are pledged with the bank/
clearing member for availing overdraft / margin facility
54
Associated Cement Company Limited
10
231,750
170.39
67,009
52.39
Abhishek Industries Limited
10
-
-
10,000
0.29
Ador Welding Limited
10
-
-
2,572
1.03
Ahmednagar Forgings Limited
10
-
-
6,248
1.02
Aksh Optifibre Limited
5
-
-
18,693
1.18
Alok Industries Limited
10
-
-
2,600
0.19
Alstom Projects India Limited
10
-
-
22,950
8.48
Amtek Auto Limited
2
-
-
3,300
1.04
Asian Hotels Limited
10
-
-
3,355
2.01
Apollo Tyre Limited
10
740
0.20
-
-
Aptech Limited
10
10
0.01
-
-
Arvind Mills Limited
10
86,000
3.74
-
-
Asian Paints India Limited
10
282
0.20
-
-
Atul Limited
10
-
-
17,300
2.01
Aventis Pharma Limited
10
160
0.19
-
-
Bajaj Auto Limited
10
5,600
13.59
8,611
23.59
Bajaj Hindusthan Limited
1
28,250
5.02
-
-
Balaji Telefims Limited
2
-
-
1,095
0.20
Bannari Amman Sugars Limited
10
-
-
740
1.00
Balrampur Chini Mills Limited
1
59,600
3.45
-
-
Bank of Baroda Limited
10
252,000
51.47
-
-
Bank of India Limited
10
5,700
0.81
-
-
Biocon Limited
5
200
0.10
-
-
Bombay Dyeing & Manufacturing Company Limited
10
35
0.02
-
-
Bharat Petroleum Corporation Limited
10
5,500
1.67
-
-
Bharat Earth Movers Limited
10
-
-
700
1.04
Bharat Heavy Electricals Limited
10
-
-
1,800
3.90
Cairn India Limited
10
69,925
8.70
-
-
Canara Bank Limited
10
114,200
22.24
-
-
Cadila Healthcare Limited
5
-
-
2,040
1.10
Carborundum Universal Limited
2
-
-
6,000
0.92
CIPLA Limited
2
-
-
1,000
0.64
Century Textiles & Industries Limited
10
195,925
105.90
-
-
CESC Limited
10
2,200
0.70
-
-
Chennai Petroleum Corporation Limited
10
1,100
0.20
-
-
Crew B.O.S. Products Limited
10
100
0.02
-
-
Cummins India Limited
2
68,400
17.46
-
-
Development Credit Bank Limited
10
300
0.02
-
-
Dena Bank
10
200
0.01
-
-
Deccan Chronicle Holding Limited
10
-
-
2,800
1.16
Dr. Reddy's Laboratories Limited
5
800
0.55
-
-
Essar Oil Limited
10
1,031,550
53.43
-
-
East India Hotel Limited
10
-
-
6,400
4.47
Edelweiss
Schedules to the consolidated financial statements as at
31 March 2007 (Continued)
(Currency Indian Rupees in millions)
Face value
Rupees
Quantity
(Nos.)
2007
Quantity
(Nos.)
2006
9 Stock-in-trade (Continued)
Elder Pharamaceuticals Limited
10
-
-
700
0.20
Everest Industries Limited
10
-
-
2,450
0.45
GAIL (India) Limited
10
17,250
4.52
-
-
Gateway Distriparks Limited
10
14,000
2.31
-
-
Global Broadcast News Limited
10
274
0.15
-
-
GMR Infrastructure Limited
10
393,900
141.92
-
-
Grasim Industries Limited
10
18,663
39.06
11
0.02
Great Offshore Limited
10
340
0.20
-
-
GTL Limited
10
156,500
21.16
-
-
Gujarat Alkalies and Chemicals Limited
10
43,400
5.05
-
-
Gujarat Ambuja Cement Limited
2
1,069,922
114.16
-
-
Geodesic Information System Limited
2
-
-
10,000
2.03
Gujrat Heavy Chemicals Limited
10
-
-
9,780
1.17
Goodlass Nerolac Paints Limited
1
-
-
1,200
1.01
HCL Technologies Limited
2
25,350
7.39
176
0.11
Hindalco Industries Limited
1
304,215
39.64
-
-
Hindustan Construction Company Limited
1
242,200
21.68
7,500
1.21
Hindustan Petroleum Corporation Limited
10
3,900
0.97
-
-
HDFC Bank Limited
10
-
-
1,347
1.03
Hero Honda Motors Limited
2
-
-
1,000
0.89
Himachal Futuristic Communication Limited
10
-
-
80,000
1.83
Hinduja TMT Limited
10
-
-
460
0.20
Hindustan Lever Limited
1
-
-
231
0.06
I-Flex Solutions Limited
5
10,550
21.33
-
-
IBP Limited
10
1,319
0.54
-
-
Industrial Development Bank of India Limited
10
5,750
0.45
-
-
Infrastructure Development Finance Company Limited
10
67,850
5.68
-
-
IFCI Limited
10
1,527,750
42.70
-
-
India Cements Limited
10
403,100
65.28
-
-
Indian Oil Corporation Limited
10
3,000
1.20
-
-
Indus Fila Limited
10
337
0.05
-
-
Infosys Technologies Limited
5
64,050
129.19
3,500
10.43
Infotech Enterprises Limited
5
3,355
1.21
-
-
Ingersoll Rand (India) Limited
10
700
0.20
-
-
Indian Petrochemicals Corporation Limited
10
166,406
44.59
-
-
Ispat Industries Limited
10
9,000
0.12
-
-
IVRCL Infrastructure and Projects Limited
2
13,000
3.79
3,600
1.00
Jaiprakash Associates Limited
10
24,300
13.10
-
-
JSW Steel Limited
10
25,300
11.57
-
-
J.K.Industries Limited
10
-
-
10,560
1.13
Jain Irrigation System
10
-
-
6,000
1.45
Jyoti Structured Limited
10
-
-
6,000
2.43
221,850
35.19
-
-
605
0.97
8
0.02
11,060
0.39
Lanco Infratech Limited
10
Larsen & Toubro Limited
2
LML Limited
10
-
-
Mahindra & Mahindra Limited
10
30,625
23.13
-
-
Matrix Laboratries Limited
2
12,347
2.16
-
-
55
Edelweiss
Schedules to the consolidated financial statements as at
31 March 2007 (Continued)
(Currency Indian Rupees in millions)
Face value
Rupees
Quantity
(Nos.)
2007
Quantity
(Nos.)
2006
Mphasis BFL Limited
10
78,800
22.28
-
-
Maruti Udyog Limited
5
-
-
60,210
51.81
Nagarjuna Construction Company Limited
2
6,000
0.95
-
-
New Delhi Television Limited
4
225,200
70.03
-
-
NIIT Technologies Limited
10
50
0.02
-
-
9 Stock-in-trade (Continued)
56
Nirma Limited
5
1,260
0.20
-
-
Natioanal Thermal Power Corporation Limited
10
-
-
13,000
1.74
Oil and Natural Gas Corporation Limited
10
3,572
2.97
151
0.09
Orchid Chemicals & Pharmaceuticals Limited
10
383,650
98.43
-
-
Oriental Bank of Commerce
10
301,200
56.52
-
-
Oriental Hotels Limited
10
-
-
7,720
2.73
Parsvnath Developers Limited
10
361,150
93.54
-
-
Pfizer Limited
10
270
0.20
-
-
Petronet LNG Limited
10
-
-
41,710
2.29
Polaris Software Lab Limited
5
18,200
3.29
-
-
Power Finance Corporation Limited
10
12,000
1.25
-
-
Praj Industries Limited
2
433,583
152.95
-
-
PSL Limited
10
4,900
0.97
-
-
Punjab National Bank
10
16,642
7.75
-
-
Punjab Tractors Limited
10
1,202
0.37
1,000
0.24
Punj Lloyd Limited
2
2,400
0.39
-
-
Ranbaxy Laboratories Limited
5
181,211
61.28
225,000
97.28
Raymond Limited
10
-
-
2,190
1.00
Reliance Capital Ventures Limited
10
-
-
770,000
18.73
Reliance Communications Limited
5
126,000
51.93
-
-
Reliance Capital Limited
10
109,050
72.02
136,300
69.12
Reliance Energy Limited
10
3,650
1.80
462,146
20.06
Rolta India Limited
10
-
-
280
0.07
Reliance Industries Limited
10
30,850
41.54
-
-
Sakti Sugars Limited
10
-
-
5,000
0.94
Steel Authority of India Limited
10
62,030
6.79
-
-
Satyam Computers Services Limited
2
3,000
1.38
361
0.30
Sesa Goa Limited
10
92,800
158.08
3,000
3.59
Shanthi Gears Limited
1
-
-
7,450
0.55
Siemens Limited
2
2,875
3.09
-
-
SRF Limited
10
562,500
68.20
-
-
State Bank of India
10
307,466
304.74
30,000
29.06
Sterlite Opticals Telecommunications Limited
5
-
-
30,752
2.97
Sterlite Industries (India) Limited
2
504,518
229.72
-
-
Sundaram Fasteners Limited
1
1,081
0.07
-
-
Suven Life Science Limited
2
-
-
35,380
2.84
Suzlon Energy Limited
10
-
-
7,500
9.77
Syndicate Bank
10
-
-
700
0.06
Taj GVK Hotels & Resorts Limited
2
-
-
3,810
0.73
Tata Consultancy Services Limited
1
-
-
700
1.34
Tata Motors Limited
10
23,504
17.05
12,415
11.30
Tata Teleservices (Maharashtra) Limited
10
700,150
14.77
-
-
Edelweiss
Schedules to the consolidated financial statements as at
31 March 2007 (Continued)
(Currency Indian Rupees in millions)
Face value
Rupees
Quantity
(Nos.)
2007
Quantity
(Nos.)
2006
9 Stock-in-trade (Continued)
Tata Steel Limited
10
8,900
3.94
16,000
8.41
Titan Industries Limited
10
37,888
31.93
17,062
14.04
TV Today Network Limited
5
3,000
0.36
-
-
TVS Motor Company Limited
1
8,900
0.53
-
-
The Great Eastern Shipping Company Limited
10
42,800
8.56
-
-
The Karanataka Bank Limited
10
-
-
12,500
1.25
Thermax Limited
2
-
-
2,500
0.78
UltraTech Cement Limited
10
9,100
7.03
-
-
Union Bank of India
10
218,400
22.71
-
-
Varun Shipping Limited
10
-
-
25,600
1.94
Videsh Sanchar Nigam Limited
10
133,950
53.88
3,000
1.40
Voltas Limited
1
7,200
0.60
-
-
Wipro Limited
2
9,600
5.37
-
-
Wire and Wireless (India) Limited
1
6
0.01
-
-
Zee Entertainment Enterprises Limited
1
301
0.07
-
-
Zee News Limited
1
209
0.01
-
-
Zensar Technologies Limited
10
-
-
2,430
0.49
12,082,653
2,940.33
2,276,663
491.64
Total
Note 2
Of the above , following shares are pledged with the fellow subsidiary
Edelweiss Securities Private Limited
A C C Limited
10
63,000
46.32
-
-
Aban Loyd Chiles Offshore Limited
2
3,585
6.82
-
-
Aban Offshore Limited
2
400
0.77
-
-
Alfa Laval India Limited
10
5,017
4.26
-
-
Alstom Project India Limited
10
-
-
10,000
3.67
Arvind Mills Limited
10
120,400
5.23
-
-
Ashok Leyland Limited
1
-
-
22,000
0.67
Associated Cement Companies Limited
10
20,250
14.89
-
-
Bajaj Auto Finance Limited
10
6,800
16.51
-
-
Bajaj Hindusthan Limited
1
128,215
22.40
-
-
Balmer Lawrie & Company Limited
10
5,214
2.11
-
-
Balrampur Chini Mills Limited
1
12,000
0.75
-
-
Bank of Baroda
10
1,400
0.29
-
-
Bata India Limited
10
8,400
1.16
-
-
Bharat Earth Movers Limited
10
1,400
1.52
150
0.19
Bharat Heavy Electricals Limited
10
6,346
14.33
-
-
Bombay Dyeing & Manufacturing Company Limited
10
7,200
3.90
-
-
Bongaigaon Refinery & Petrochemicals Limited
10
9,000
0.37
-
-
Britannia Industries Limited
10
2,955
3.54
-
-
C & C Constructions Limited
10
111,815
18.99
-
-
Canara Bank
10
17,600
3.25
-
-
Centurion Bank of Punjab Limited
1
11,200
2.18
-
-
Century Textiles & Industries Limited
10
24,225
13.22
-
-
CESC Limited
10
28,600
10.17
-
-
57
Edelweiss
Schedules to the consolidated financial statements as at
31 March 2007 (Continued)
(Currency Indian Rupees in millions)
Face value
Rupees
Quantity
(Nos.)
2007
Quantity
(Nos.)
2006
9 Stock-in-trade (Continued)
58
Chambal Fertilizers & Chemicals Limited
10
6,900
0.22
-
-
CRISIL Limited
10
326
0.82
-
-
Deccan Aviation Limited
10
Deccan Chronicle Holdings Limited
2
4,238
0.39
-
-
109,105
13.66
-
-
Dolphin Offshore Enterprises (India) Limited
10
25
0.01
-
-
Dr. Reddy's Laboratories Limited
5
4,800
3.31
-
-
Escorts Limited
10
4,800
0.55
-
-
Essar Oil Limited
10
434,882
22.53
-
-
Glenmark Pharmaceuticals Limited
2
2,400
1.47
-
-
GMR Infrastructure Limited
10
29,000
10.45
-
-
Gujarat Alkalies & Chemicals Limited
10
2,800
0.33
-
-
Gujarat Ambuja Cements Limited
2
25,163
2.65
95,000
8.70
HCL Technologies Limited
2
18,200
5.30
-
-
Hexaware Technologies Limited
2
-
-
19,975
2.14
Hindalco Industries Limited
1
47,850
6.23
-
-
Hindustan Zinc Limited
10
2,600
1.47
-
-
IBP Limited
10
121,698
49.48
-
-
ICICI Bank Limited
10
5
0.01
-
-
Idea Cellular Limited
10
20,435
1.79
-
-
IFCI Limited
10
1,236,375
34.96
-
-
I-Flex Solutions Limited
5
27,020
53.56
-
-
India Cements Limited
10
279,850
45.32
-
-
Indian Bank
10
1,616
0.15
-
-
Indian Oil Corporation Limited
10
4,982
1.99
-
-
Indian Petrochemicals Corporation Limited
10
17,600
4.71
-
-
IndusInd Bank Limited
10
15,400
0.65
-
-
Infosys Technologies Limited
5
16,000
32.30
-
-
ITC Limited
1
36,000
5.38
-
-
Jaiprakash Associates Limited
10
45,000
23.67
-
-
Jaiprakash Hydro-Power Limited
10
406,200
11.52
-
-
Jindal Steel & Power Limited
5
1,000
2.36
-
-
JSW Steel Limited
10
17,600
7.62
-
-
KEC International Limited
10
4,500
2.32
-
-
Kotak Mahindra Bank Limited
10
7,705
3.40
-
-
Lanco Infratech Limited
10
3,400
0.54
-
-
Mahanagar Telephone Nigam Limited
10
28,800
4.23
-
-
Mahindra & Mahindra Limited
10
8,321
6.49
-
-
Moser-Baer Limited
10
-
-
4,000
0.90
Mphasis BFL Limited
10
61,897
16.65
-
-
Nagarjuna Construction Company Limited
2
-
-
3,000
1.02
Nahar Capital Financial Services Limited
5
16,500
2.33
-
-
Network 18 Fincap Limited
5
436
0.15
-
-
Neyvelilignite Corporation Limited
10
35,400
1.78
-
-
NIIT Technologies Limited
10
15
0.01
-
-
NTPC Limited
10
22,750
3.28
-
-
Nucleus Software Exports Limited
10
16,111
9.26
7,500
2.48
Orchid Chemicals and Pharmaceuticals Limited
10
5,250
1.29
-
-
Edelweiss
Schedules to the consolidated financial statements as at
31 March 2007 (Continued)
(Currency Indian Rupees in millions)
Face value
Rupees
Quantity
(Nos.)
2007
Quantity
(Nos.)
2006
Oriental Bank of Commerce
10
30,400
5.68
10,000
2.36
Pantaloon Retail (India) Limited
2
-
-
3,590
3.65
9 Stock-in-trade (Continued)
Parsvnath Developers Limited
10
21,800
5.58
-
-
Power Finance Corporation Limited
10
19,200
2.00
-
-
Praj Industries Limited
2
28,600
10.62
-
-
Provogue (India) Limited
10
-
-
9,000
1.24
Punjab National Bank
10
3,000
1.42
-
-
Punjab Tractors Limited
10
39,131
11.97
-
-
Ranbaxy Laboratories Limited
5
19,097
6.31
-
-
Reliance Capital Limited
10
12,263
8.16
-
-
Reliance Communications Limited
5
1,400
0.59
-
-
Reliance Industries Limited
10
4,967
6.78
-
-
Satnam Overseas Limited
10
-
-
10,000
0.75
Sesa Goa Limited
10
5,100
8.69
-
-
SRF Limited
10
69,000
8.37
-
-
State Bank of India
10
37,250
36.89
-
-
Sterlite Industries ( India ) Limited
2
45,500
20.71
-
-
Sun TV Network Limited
10
2,249
3.41
-
-
Tamil Nadu Newsprint & Papers Limited
10
-
-
11,725
1.14
Tata Chemicals Limited
10
-
-
6,000
0.96
Tata Coffee Limited
10
Tata Consultancy Services Limited
1
Tata Iron and Steel Company Limited
10
-
-
3,000
1.03
1,980
2.44
-
-
-
-
2,000
0.85
Tata Metaliks Limited
10
-
-
7,000
0.83
Tata Motors Limited
10
16,068
11.70
-
-
Tata Steel Limited
10
7,425
3.28
-
-
Tech Mahindra Limited
10
400
0.57
-
-
Television Eighteen India Limited
5
-
-
364
0.09
The Great Eastern Shipping Limited
10
-
-
5,500
0.89
Titan Industries Limited
10
6,165
5.20
-
-
UltraTech Cement Limited
10
10,200
7.88
-
-
Union Bank of India
10
159,600
15.02
-
-
Unitech Limited
2
6,000
2.32
-
-
United Phosphorus Limited
2
42,568
9.95
-
-
Videsh Sanchar Nigam Limited
10
17,325
6.97
-
-
VIP Industries Limited
10
1,364
0.15
-
-
Voltas Limited
1
1,800
0.15
-
-
Welspun India Limited
10
1,010
0.07
-
-
Wipro Limited
2
1,800
1.01
-
-
Wockhardt Limited
5
2,400
0.94
-
-
Zee News Limited
1
190
0.01
-
-
4,361,229
794.39
229,804
33.56
Total
59
Edelweiss
Schedules to the consolidated financial statements as at
31 March 2007 (Continued)
(Currency Indian Rupees in millions)
2007
2006
13.61
38.76
10 Sundry debtors
(Unsecured and considered good, unless otherwise stated)
Debts outstanding for a period exceeding six months
- unsecured and considered good
- unsecured and considered doubtful
Other debts
Less : Provision for doubtful debts
-
0.40
573.39
325.33
587.00
364.49
3.81
0.40
583.19
364.09
583.19
364.09
0.87
0.15
11 Cash and bank balances
Cash in hand
Balances with scheduled banks
- in current accounts
223.99
266.90
2,425.96
369.47
2,650.82
636.52
Accrued interest on deposits
37.46
9.02
Receivable on trading of securities
28.46
-
9.57
1.31
75.49
10.33
Secured - considered good
785.10
206.12
Unsecured - considered good
211.79
8.66
Advances to staff
44.36
-
Loan to Edelweiss Employee Welfare Trust
47.45
-
- in fixed deposits
12 Other current assets
Interest receivable on loan against shares
13 Loans and advances
(Unsecured and considered good, unless otherwise stated)
Advances recoverable in cash or in kind or for value to be received
Deposits
23.11
39.41
Margin deposit
240.12
93.47
Initial margin
173.22
5.78
Mark-to-Market Margin - Equity Index/Stock Futures
108.48
-
Less: Provision for loss on Equity Index/Stock Futures
108.48
-
-
-
Mark-to-Market Margin - Commodity Futures
13.81
73.14
Less: Provision for loss on Commodity Futures
13.81
73.14
-
-
Equity Index/Stock Options Premium Account
205.87
21.58
9.73
1.97
Less: Provision for loss on Equity Index/Stock Options
Deposits placed with commodity/ stock exchange
Inter corporate deposits placed
60
196.14
19.61
867.22
325.73
27.20
-
2,615.71
698.78
Edelweiss
Schedules to the consolidated financial statements as at
31 March 2007 (Continued)
(Currency Indian Rupees in millions)
2007
2006
632.90
710.83
Book overdraft
72.26
183.75
Premium Received on Equity Index/Stock Options
71.51
29.05
2.32
0.45
14 Current liabilities
Sundry creditors
[Including dues to small scale industrial undertakings Rs. Nil ;
(Previous year Rs. Nil)]
(The Company did not have any outstanding dues to any micro or small
enterprises as defined under Micro, Small and Medium Enterprises
Development Act, 2006 at any point during the year that were outstanding
for a period of more than 45 days from the date of acceptance.)
Add:Provision for Loss on Equity Index/Stock Options
73.83
29.50
Mark-to-Market Margin - Equity Index/Stock Futures
72.45
39.42
Mark-to-Market Margin - Commodity Futures
13.63
1.44
Interest accured but not due on unsecured loan
24.71
2.99
Shares sold but not purchased
74.17
-
500.09
203.72
1,464.04
1,171.65
11.84
3.51
-
4.88
Other liabilities
15 Provisions
Gratuity
Proposed dividend
Dividend distribution tax
Taxation (Net of advance taxes and tax deducted at
-
0.68
116.08
29.90
6.11
6.11
134.03
45.08
Source Rs. 311.13 , Previous year: Rs. 298.41)
Other provisions
61
Edelweiss
Schedules to the consolidated financial statements for the year ended
31 March 2007 (Continued)
(Currency Indian Rupees in millions)
2007
2006
1,408.07
683.67
746.23
305.96
2,154.30
989.63
167,002.85
87,529.33
1,404.52
262.17
171,367.31
88,393.44
5,523.06
1,414.55
(245.92)
288.27
1,257.10
108.11
(6.30)
0.31
137.31
46.12
1,142.19
442.81
16 Fee and commission income
Brokerage income
(Tax deducted at source Rs. 2.33, Previous year Rs. 1.33)
Fee income
(Tax deducted at source Rs. 32.17, Previous year Rs. 12.97)
17 Trading and arbitrage income
Profit on trading of securities
Sales
Less : Cost of sales
Opening stock
Purchases
Less: Closing stock
Profit on trading in equity derivative instruments (net)
Profit/(loss) on trading of physical commodity (net)
Profit on arbitrage and trading in commodity derivatives (net)
18 Investment and dividend income
Income from investments in partnership firm (associate)
-
2.72
200.08
45.59
Dividend on stock-in-trade
31.14
10.14
Dividend on current investment
19.20
0.70
Diminution in value of long term investments written back (net)
12.88
1.50
1.37
2.77
264.67
63.42
51.22
6.05
-
0.76
5.20
-
68.27
17.29
3.90
2.16
128.59
26.26
Profit on sale of investments (net)
Diminution in value of current investments written back (net)
19 Interest income
Interest received from loan against shares
(Tax deducted at source Rs. 1.07, Previous year Rs. 0.90)
Foreign exchange gain
Interest income on advances
(Tax deducted at source Rs. 6.43, Previous year Rs. Nil)
Interest on fixed deposit (gross)
(Tax deducted at source Rs. 10.04, Previous year Rs. 3.99)
Interest - others
(Tax deducted at source Rs. 30.14, Previous year Rs. 5.63)
62
Edelweiss
Schedules to the consolidated financial statements for the year ended
31 March 2007 (Continued)
(Currency Indian Rupees in millions)
2007
2006
10.62
1.73
0.01
-
20 Other income
Marketing and promotional expenses reimbursement
(Tax deducted at source Rs. 0.25, Previous year Rs. 0.01)
Profit on sale of fixed assets (net)
Provision for doubtful advances written back
1.06
-
11.09
9.48
22.78
11.21
791.49
327.20
Gratuity
8.59
1.75
Staff welfare
8.10
2.38
808.18
331.33
Miscellaneous income
(Tax deducted at source Rs. 1.11, Previous year Rs. 0.12)
21 Employee costs
Salaries and bonus
63
Edelweiss
Schedules to the consolidated financial statements for the year ended
31 March 2007 (Continued)
(Currency Indian Rupees in millions)
2007
2006
24.74
1.59
-
0.41
4.37
3.56
22 Operating and other expenses
Advertisement and business promotion
Amortisation of preliminary expenses
Auditors' remuneration
Bad- debts written off
2.89
0.12
Commission and brokerage
40.70
31.53
Communication
18.29
14.12
Computer software
15.87
11.37
Donation
8.83
5.03
Foreign exchange loss (net)
6.50
-
Insurance
2.49
1.91
IRDA license fees
0.05
-
106.44
56.16
-
0.01
7.66
2.51
Legal and professional fees
Loss on sale of fixed assets (net)
Market data network services
Membership and subscription
Miscellaneous
Office expenses
Postage and courier
Printing and stationery
Provision for doubtful debts
2.47
1.33
14.23
9.92
8.21
6.68
5.27
2.38
16.70
8.77
3.81
0.40
Rates and taxes
16.43
6.39
Rent
61.32
36.51
Repairs and maintenance - others
6.04
5.95
SEBI turnover fees
34.48
37.65
Securities transaction tax
54.32
-
Service tax expenses
148.46
66.36
Stock exchange expenses
268.06
118.80
Travelling and conveyance
43.34
26.99
Utilities
10.43
7.01
0.51
-
932.91
463.46
- Optionally fully convertible debentures
31.06
17.15
- Inter-corporate deposits
64.96
7.78
Interest on bank overdraft
26.02
2.88
Warehousing charges
23 Financial expenses
Interest on fixed loans
Interest on deposits
64
2.70
-
Interest - others
14.09
1.18
Discount on commercial paper
14.17
-
Financial charges
33.89
24.83
186.89
53.82
Edelweiss
Schedules to the consolidated financial statements for the year ended
31 March 2007 (Continued)
(Currency Indian Rupees)
24
Notes to the accounts
24.1
Segment reporting
The Company's business is organised and management reviews the performance based on the business segments as
mentioned below:
-
Broking
-
Trading / investments in securities, commodities and derivative instruments
-
Advisory and transactional services
-
Portfolio management services
-
Financing activity
-
Others
Liabilities are either specifically identifiable with individual segments or have been allocated to segments on a systematic
basis.
Based on such allocations, segmental balance sheet as at 31 March 2007 and segmental profit & loss account for the year
ended 31 March 2007 have been prepared.
The following table gives information on the segment revenue, expenses and result for the year ended 31
March 2007:
65
66
2006
2007
Profit after tax
0.02
19.65
Depreciation
Other non cash expenditure
46.68
307.43
Carrying amount of segment liabilities
Capital expenditure
1,194.24
Carrying amount of segment assets
Other information
-
-
Extraordinary item (net of tax)
-
7.97
36.73
770.89
737.08
20.72
-
-
Income tax
Current tax
Deferred tax
Fringe Benefit tax
224.54
640.40
483.13
1,423.25
15.70
-
-
624.70
2006
Segment result
Total
8.08
-
Excess provision written back
Brokerage, interest & other income
-
1,415.17
2007
Broking
Income from inter segments
Income from external customers
Segment Revenue
Particulars
(i) Business Segment
24.1 Segment reporting (Continued)
24 Notes to the accounts (Continued)
2.87
-
-
115.63
93.64
2007
-
-
-
445.95
697.54
-
-
-
697.54
2007
0.12
8.97
6.81
40.73
73.22
2006
-
-
-
-
4.04
9.31
410.58
8,134.61
2007
-
-
-
1,063.10
1,403.15
337.82
149.65
-
12.88
-
1,390.27
2007
1.50
1.79
10.33
116.99
1,983.46
2006
-
-
-
399.93
513.93
6.81
3.65
-
503.47
2006
Trading/ investments in securities,
Commodities & Derivatives
-
-
-
337.82
2006
Advisory and transactional services
(in millions)
Edelweiss
Schedules to the consolidated financial statements for the year ended
31 March 2007 (Continued)
(Currency Indian Rupees)
-
Brokerage, interest & other income
2006
-
2007
Profit after tax
-
Depreciation
Other non cash expenditure
4.21
Carrying amount of segment liabilities
Capital expenditure
10.13
Carrying amount of segment assets
Other information
-
-
Extraordinary item (net of tax)
-
0.64
0.49
8.23
19.97
-
-
-
Income tax
Current tax
Deferred tax
Fringe Benefit tax
17.49
-
-
-
3.03
891.75
2007
-
-
-
40.16
51.68
28.57
6.15
-
-
-
51.68
2007
2006
-
-
-
4.07
6.06
-
-
-
6.06
2006
-
-
-
35.46
181.48
Financing activity
-
-
-
28.57
2006
Segment result
15.07
-
Excess provision written back
Total
-
15.07
2007
Portfolio Management Services
Income from inter segments
Income from external customers
Segment Revenue
Particulars
(i) Business Segment (Continued)
24.1 Segment reporting (Continued)
24 Notes to the accounts (Continued)
-
14.01
84.77
6,025.81
2,363.02
2007
-
-
647.35
(7.07)
5.70
(291.94)
121.84
100.35
-
-
21.49
2007
Un-allocated
-
1.12
1.12
753.00
514.10
2006
-
-
221.39
1.49
3.34
(131.45)
6.55
3.98
-
-
2.57
2006
2.89
37.70
140.76
6,866.69
12,687.39
2007
1,100.57
-
647.35
(7.07)
5.70
1,746.55
3,712.53
108.43
12.88
-
3,591.22
2007
Total
1.62
20.49
55.48
1,725.30
3,509.31
2006
417.29
20.72
221.39
1.49
3.34
664.23
1,533.33
26.49
3.65
-
1,503.19
2006
(in millions)
Edelweiss
Schedules to the consolidated financial statements for the year ended
31 March 2007 (Continued)
(Currency Indian Rupees)
67
Edelweiss
Schedules to the consolidated financial statements for the year ended
31 March 2007 (Continued)
(Currency Indian Rupees)
24
Notes to the accounts
24.2
Related parties
(A)
Ke
Keyy management personnel
Rashesh Shah
Venkat Ramaswamy
Nilesh Shah
Naresh Kothari
Sunil Wadhwani
Ramanan Raghavendran
(B)
Relatives of key management personnel with whom transactions have taken place during the year:
Vidya Shah
Roopa Shah
Aparna T. C.
Kirtilal Shah
Sharda Shah
Rushil Shah
Neel Shah
Sharmishtha Shah
A.V. Ramaswamy
(C)
Enterprises in which key management personnel exercise significant influence, with whom transactions
have taken place during the year:
Rashesh Shah HUF
Nilesh Shah HUF
E-Cap Partners (the Company retired as partner since 15 November 2005)
Niranjan Nanavati H.U.F
68
(4.07)
(7.30)
2006
2007
(13.27)
(0.01)
0.73
13.81
62.57
(59.17)
(0.08)
-
-
3.94
22.12
149.70
(158.35)
(0.38)
-
-
(8.00)
-
(5.00)
5.00
(0.98)
-
2006
-
(2.60)
2007
Rashesh Shah
Figures in brackets indicate income / liabilities
Sundry debtors
Sundry creditors
Bonus payable
Income from partnership f irms
Share of profits
Secondary market
transactions:
Dividend paid
Remuneration
Purchase of securities
Sale of securities
Brokerage income
Fees received
Current account transactions
Amounts taken
Amounts given
Equity shares capital
Equity shares-partly paid
shares alloted at premium
Capital account transactions
Prefrence shares capital
Particulars
(D) Transactions with related parties
24.2 Related parties (Continued)
24 Notes to the accounts (Continued)
(13.27)
2007
-
1.79
22.28
(0.37)
(0.01)
-
-
-
-
-
2007
(4.64)
2006
(0.01)
0.26
9.11
1.44
(0.01)
-
-
(8.00)
(0.98)
-
2006
Venkat Ramaswamy
(24.88)
2007
-
39.34
47.17
(36.20)
(0.21)
-
-
-
-
-
2007
(10.95)
2006
-
17.74
7.36
(13.97)
(0.06)
-
-
-
-
-
2006
Nilesh Shah
-
2007
-
0.15
-
-
-
-
-
-
2007
2.68
-
2006
-
0.05
-
(2.43)
-
-
-
-
2006
Sunil Wadhwani
Key Management Personnel
-
2007
-
-
(0.06)
-
-
-
-
2007
0.23
-
2006
-
-
(0.21)
-
-
-
-
2006
Ramanan
Raghavendran
(13.27)
2007
-
23.44
-
-
-
-
-
-
2007
(6.63)
2006
-
12.57
-
-
-
-
-
-
2006
Naresh Kothari
(64.69)
2007
-
5.88
107.18
196.86
(194.92)
(0.59)
(0.06)
(5.00)
5.00
-
-
(2.60)
2007
Total
2.91
(4.07)
(29.52)
2006
(0.02)
1.04
53.23
71.37
(73.14)
(0.14)
(2.64)
-
(16.00)
(1.96)
-
2006
(in millions)
Edelweiss
Schedules to the consolidated financial statements for the year ended
31 March 2007 (Continued)
(Currency Indian Rupees)
69
70
-
Amounts given
Figures in brackets indicate income / liabilities
-
2006
2007
Sundry creditors
(0.01)
(0.12)
Brokerage income
-
-
(26.88)
0.15
Sale of securities
-
Remuneration
0.10
20.13
0.44
Dividend paid
1.16
-
-
-
2006
Purchase of securities
1.16
Rent paid
Secondary market transactions:
-
-
2007
Aparna T.C.
Amounts taken
Current Account transactions
alloted at premium
Equity shares-partly paid shares
Share application
Particulars
(D) Transactions with related parties (Continued)
24.2 Related parties (Continued)
24 Notes to the accounts (Continued)
(1.46)
2007
(0.13)
(27.31)
26.04
4.09
1.10
-
5.00
(5.00)
-
2007
Vidya Shah
-
2006
(0.02)
(1.77)
6.72
4.20
0.23
-
-
-
(0.93)
2006
-
2007
(0.13)
(28.94)
23.68
-
-
-
-
-
-
2007
(2.01)
2006
-
-
-
-
-
-
-
-
-
2006
Roopa N Shah
Relatives of Key Management Personnel
-
2007
(0.02)
(5.36)
4.33
-
0.44
-
-
-
-
2007
Others
(0.05)
2006
(0.01)
(0.66)
0.08
-
0.10
-
-
-
-
2006
(1.46)
2007
(0.40)
(88.49)
74.18
4.09
1.98
1.16
5.00
(5.00)
-
2007
Total
(2.06)
2006
(0.04)
(2.43)
6.95
4.20
0.43
1.16
-
-
(0.93)
2006
(in millions)
Edelweiss
Schedules to the consolidated financial statements for the year ended
31 March 2007 (Continued)
(Currency Indian Rupees)
Figures in brackets indicate income / liabilities
0.49
-
2.84
2006
2007
Sundry debtors
Loans and advances
(0.30)
(0.08)
(0.01)
(0.08)
(0.01)
-
(0.61)
(0.28)
(0.01)
(0.13)
(0.01)
(0.01)
(0.06)
Reimbursements
Rent
Utilities
Communication
Leasehold improvement expenses
Office expenses
Printing & stationery
Legal & professional fees
(2.72)
(0.16)
-
(82.31)
62.68
(0.01)
2006
-
201.95
(307.83)
(0.04)
(3.29)
-
-
2007
E-Cap Partners
0.42
-
2007
-
-
-
-
(4.00)
(376.00)
-
2007
-
2006
-
-
-
-
-
2006
Oak Holdings Pvt. Ltd.
-
2007
-
-
61.27
(69.05)
(0.19)
-
-
2007
-
2006
-
-
143.90
(147.78)
(0.28)
-
-
2006
Nilesh Shah HUF
-
2007
-
-
-
-
-
2007
-
2006
-
-
1.83
(1.85)
(0.01)
-
-
2006
Rashesh Shah HUF
2007
2.84
2006
2007
0.91
-
(0.30)
(0.08)
(0.01)
(0.08)
(0.01)
-
(2.72)
(0.16)
145.73
(149.63)
(0.29)
(82.31)
62.68
(0.61)
(0.28)
(0.01)
(0.13)
(0.01)
(0.01)
(0.06)
-
263.22
(376.88)
(0.23)
(3.29)
-
(0.01)
2006
(in millions)
Total
(4.00)
(376.00)
-
Enterprises in which Key Management Personnel and the Company exercise Significant Influence
Income from Partnership Firms
Share of profits
Interest received
Secondary market transactions:
Purchases
Sales
Brokerage received
Amounts taken
Amounts given
Capital Account
Equity shares capital
Securities premium
Amount invested
Amount withdrawn
Current Account Transactions
Particulars
(D) Transactions with related parties (Continued)
24.2 Related parties (Continued)
24 Notes to the accounts (Continued)
Edelweiss
Schedules to the consolidated financial statements for the year ended
31 March 2007 (Continued)
(Currency Indian Rupees)
71
Edelweiss
Schedules to the consolidated financial statements for the year ended
31 March 2007 (Continued)
(Currency Indian Rupees)
24
Notes to the accounts (Continued)
24.3
Income from arbitrage and trading in securities and derivatives includes loss of Rs. 10.86 millions (Previous year loss of
Rs. 1.17 millions) on account of error trades.
24.4
Earning per share
In accordance with Accounting Standard 20 on Earnings Per Share issued by the Institute of Chartered Accountants of
India, the computation of earnings per share is set out below :
(in millions)
a)
2007
2006
1,100.57
438.01
0.19
-
1,100.38
438.01
0.19
-
1,100.57
438.01
1,100.57
417.29
0.19
-
1,100.38
417.29
0.19
-
1,100.57
417.29
37,836,166
28,603,500
7,080,640
9,232,666
44,916,806
37,836,166
41,040,453
32,546,688
3,138,091
4,668,952
Shareholders earnings (as per profit and loss account - before
extraordinary item)
Less: Preference dividend declared by the Company (including
dividend distribution tax)
Net profit available to equity shareholders for the purpose of
calculating basic earnings per share (before extraordinary item)
Add: Savings in net profit on account of conversion of dilutive
potential equity shares (including savings in tax)
Net profit available to equity shareholders for the purpose of
calculating diluted earnings per share (before extraordinary item)
b)
Shareholders earnings (as per profit and loss account - after
extraordinary item)
Less: Preference dividend declared by the Company (including
dividend distribution tax)
Net profit available to equity shareholders for the purpose of
calculating basic earnings per share (after extraordinary item)
Add: Savings in net profit on account of conversion of dilutive
potential equity shares (including savings in tax)
Net profit available to equity shareholders for the purpose of
calculating diluted earnings per share (after extraordinary item)
c)
Calculation of weighted average number of Equity
Shares of Rs 1 each:
(A)
Number of shares at the beginning of the year
(B)
Number of Shares issued during the year
Total number of equity shares outstanding at the end of the year
Weighted average number of equity shares outstanding during the
year (based on the date of issue of shares)
Number of dilutive potential equity shares
72
d)
Basic earnings per share before extraordinary item (in rupees) (a/c)
26.81
13.46
e)
Basic earnings per share after extraordinary item (in rupees) (b/c)
26.81
12.82
f)
Diluted earnings per share before extraordinary item (in rupees) (a/c)
24.91
11.77
g)
Diluted earnings per share after extraordinary item (in rupees) (b/c)
24.91
11.21
Edelweiss
Schedules to the consolidated financial statements for the year ended
31 March 2007 (Continued)
(Currency Indian Rupees)
24
Notes to the accounts (Continued)
24.5
Managerial remuneration
(in millions)
Salary and bonus
2007
2006
106.77
50.47
0.41
2.66
-
0.03
107.18
53.16
Rent
Perquisite *
Total
Provision for gratuity are based on actuarial valuation done on an overall Company basis.
* Valued as per Income Tax Act, 1961, of India
24.6
Deferred tax
The primary components that gave rise to deferred tax liabilities and assets are as follows:
(in millions)
2007
2006
-
(1.23)
4.03
2.37
3.40
1.37
0.09
1.18
3.99
0.13
0.11
11.26
4.18
2007
2006
2.33
5.61
6.88
0.53
5.18
0.06
1.48
5.80
0.07
0.33
0.46
-
Total
20.59
8.14
Income earned in foreign currency (on accrual basis)
Fee income (gross)
Other income
34.33
0.14
17.22
0.04
Total
34.47
17.26
Deferred tax liability
Tax effect of the timing difference between book and tax depreciation
Deferred tax assets
Tax effect of Provision for Gratuity
The timing difference between book and tax depreciation
Difference on account of Section 43B disallowances
Difference of extraordinary item
Difference of provision for doubtful debts
Preliminary expenses allowed under section 35 D
Net deferred tax asset / (liability)
24.7
Foreign currency transactions
The Company has undertaken the following transactions in foreign currency:
(in millions)
Expenditure incurred in Foreign Currency (on accrual basis)
Travel
Professional fees
Employee cost
License fees
Miscellaneous
Equity dividend paid
Preference dividend paid
73
Edelweiss
Schedules to the consolidated financial statements for the year ended
31 March 2007 (Continued)
(Currency Indian Rupees)
24
Notes to the accounts (Continued)
24.8
Operating leases
The Company has taken premises on operating lease. Gross rental expenses for the year ended 31 March 2007 aggregated
to Rs. 61.32 millions (Previous year Rs 36.51 millions) which has been included under the head Operating expenses - Rent
in the profit and loss account.
Details of future minimum lease payments for the non-cancellable operating lease are as follows:
24.9
(in millions)
2007
2006
Minimum lease payments for non cancellable lease
- not later than one year
- later than one year and not later than five years
- later than five years
49.39
33.44
-
9.77
7.39
-
Total
82.83
17.16
Contingent liability
a)
Edelweiss Securities Private Limited, a subsidiary of the Company has provided bank guarantees aggregating to
Rs. 1,815.00 millions (Previous year Rs. 685.00 millions) as on 31 March, 2007 for the following purposes to:
i)
The National Stock Exchange of India Limited - Rs. 300.50 millions (Previous year Rs. 125.50 millions) and
Rs. 2.50 millions (Previous year Rs. 2.50 millions) for meeting margin requirements and towards security
deposit respectively.
ii)
Bombay Stock Exchange Limited - Rs. 240.00 millions (31 March, 2006 Rs. 110.00 millions) and Rs. 1.00
million (Previous year Rs. 1.00 million) for meeting margin requirements and towards security deposit
respectively.
iii)
Infrastructure Leasing & Financial Services Limited - Rs. 1,271.00 millions (Previous year Rs. 446.00
millions) towards initial margin.
It has pledged fixed deposits with banks aggregating of Rs. 910.00 millions (Previous year Rs. 354.67 millions) for
obtaining the above bank guarantees.
Further, it has pledged the fixed deposits with the following:
b)
i)
OTCEI Rs. 0.30 million (Previous year Rs. 0.30 million) for meeting base capital requirements.
ii)
Bombay Stock Exchange Limited Rs. 13.00 millions (Previous year Rs. 1.00 million) for meeting base
capital requirements.
iii)
Central Depository Services Limited Rs. 2.84 millions (Previous year Rs. 5.00 millions) for meeting claims
and rebates.
iv)
National Stock Exchange of India Limited Rs. 20.00 millions (Previous year Rs. Nil) for meeting base capital
requirements.
v)
Infrastructure Leasing & Financial Services Limited - Rs. 80.00 millions (Previous year Nil) towards initial
margin.
Edelweiss Commodities and Advisors Limited, a subsidiary company has provided bank guarantee aggregating
Rs. 24.00 millions (Previous year Rs. 4.00 millions) as on 31 March 2007 to the Multi Commodity Exchange of
India Limited for meeting margin requirements.
It has pledged fixed deposit with bank amounting to Rs. 11.00 millions (Previous year Rs. 1.00 million) for
obtaining the above bank guarantee.
74
c)
Taxation matters in respect of which appeal is pending - Rs. 6.81 millions (Previous year Rs. 8.65 millions). This is
being disputed by Edelweiss Capital Limited and hence not provided for. The demand paid under protest against
such contingent liability is Rs. 4.57 millions (Previous year Rs 3.70 millions).
d)
Income tax demands against Edelweiss Securities Private Limited, a subsidiary company not acknowledged as
debts Rs. 28.59 millions (Previous year Rs. 0.08 million). The demand paid under protest against such contingent
liability is Rs. 15.04 millions (Previous year Nil)
Edelweiss
Schedules to the consolidated financial statements for the year ended
31 March 2007 (Continued)
(Currency Indian Rupees)
24
Notes to the accounts (Continued)
24.9
Contingent liability (Continued)
e)
Taxation matters in respect of which appeal is pending - Rs. 0.36 million (Previous year Rs. Nil). This is being
disputed by the Crossborder Investments Private Limited, a subsidiary company and hence not provided for. The
demand paid under protest against such contingent liability is Rs. 0.18 million (Previous year Rs. Nil).
f)
The Company has issued corporate guarantees to the extent of Rs. 3,690.00 millions (previous year Rs. 1,205.00
millions), in favour of Banks to secure the credit facilities sanctioned by these banks to Edelweiss Securities Private
Limited and Edelweiss Commodities & Advisors Limited (Subsidiary Companies).
24.10 Capital commitment
Capital commitments (net of advances) - Rs. 320.92 millions (Previous year Rs. 16.21 millions).
24.11 During the financial year 2005-06, Edelweiss Securities Private Limited, a subsidiary company had received claims from
certain Beneficial Owners (BO) on account of transactions in Depository accounts at its branch through counterfeit
signatures by the remisiers on Delivery Instructions Slips (DISs). In respect of any other future claims by BOs, a prudential
provision of Rs. 6.11 millions had been made by the management as detailed below:
Nature of Liability
(in millions)
Provision as on
1 April 2006
Addition
Amount
used
Unused amount
reversed
Provision as on
31 March 2007
Claims and Rebates
6.11
-
-
-
6.11
Total
6.11
-
-
-
6.11
24.12 Optionally Fully Convertible Debentures have been issued by subsidiaries at a face value of Rs.100 each with a conversion
option of one equity share of Rs. 10 each for every fifty debentures of Rs.100 each held on expiry of two months from the
date of allotment. In case of non-conversion, the debentures shall be redeemed at face value. The Company also has the
option to buy back the debentures at any time after three months from the date of allotment. The debentures are nontransferable and non-marketable. These debentures carry a Daily Put / Call Option.
24.13 During the financial year 2005-06, Edelweiss Securities Private Limited, a subsidiary company had subscribed to and was
allotted 10,000 fully paid equity shares of the face value of Re.1 each for cash at par of Bombay Stock Exchange Limited
(BSEL) in accordance with the BSE (Corporatisation and Demutualization) Scheme 2005 (the Scheme). The same being
in the nature of long term investments have been accordingly disclosed in Schedule 8 to the Balance Sheet. Further,
pursuant to the Scheme, the Company had classified during the financial year 2005-06, the book value of its Bombay
Stock Exchange (BSE) membership card amounting to Rs. 8.50 millions from "Fixed Assets" (Schedule 7) to "Investments"
(Schedule 8).
75
76
Options vested as at 31 March 2007
Less - Options lapsed until 31 March 2007
Less - Options exercised until 31 March 2007
Add - Options vested until 31 March 2007
Options vested as at 1 April 2006
Grants as at 31 March 2007
Less - Options exercised until 31 March 2007
31 March 2007
Less - Options lapsed/cancelled until
Add - Options granted until 31 March 2007
Grants as at 1 April 2006
Total Options approved by the members
Scheme
D
5,080,000
-
(432,250)
(1,327,890)
276,880
1,483,260
1,250
(1,327,890)
(766,750)
-
2,095,890
1
(304,620)
-
-
(1,749,000)
157,870
1,895,750
-
(1,749,000)
(338,620)
-
2,087,620
2,435,000
E
12.5
-
(3,750)
3,750
-
1,250
(3,750)
-
-
5,000
95
-
(26,250)
(221,250)
158,750
88,750
63,750
(221,250)
(50,000)
-
335,000
12.5
F
-
(15,000)
(482,500)
322,500
175,000
192,500
(482,500)
(50,000)
-
95
-
-
(157,736)
157,736
-
270,264
(157,736)
(56,250)
225,000
259,250
2,000,000
725,000
25
-
-
-
-
-
-
200,000
-
-
200,000
200
G
-
-
-
-
-
1,354,000
-
(14,500)
200,000
200
-
-
-
-
-
-
205,000
-
-
205,000
4,000,000
1,168,500
95
Pursuant to the Guidance Note issued by the Institute of Chartered Accountants of India on Accounting for Employee Share-based Payments, fair value of the Company's shares
is determined under earnings capitalization method considering weighted average adjusted profit after tax for last 3 years of all the subsidiary companies. The Company has
granted the options under its ESOP scheme on 1 October 2006 having an exercise price of Rs. 95 per option and on 31 March 2007 having an exercise price of Rs. 200 per option.
The fair value of each share has been determined as per the method specified above is Rs.117 as on 1 October 2006 and Rs 167 as on 31 March 2007. Accordingly, the charge
debited to profit & loss account towards compensation cost on accounting for ESOP is Rs. 2.49 millions (Previous year Nil)
24.14 Employee Stock Option Plans (ESOP)
Notes to the accounts (Continued)
Exercise Price (Rs.)
24
Edelweiss
Schedules to the consolidated financial statements for the year ended
31 March 2007 (Continued)
(Currency Indian Rupees)
Edelweiss
Schedules to the consolidated financial statements for the year ended
31 March 2007 (Continued)
(Currency Indian Rupees)
24
Notes to the accounts (Continued)
24.15
Capital work in progress represents advance towards flats under construction.
24.16
Previous year comparatives
Previous year figures have been regrouped and rearranged wherever necessary
For and on behalf of the Board of Directors
Rashesh Shah
Managing Director
Venkat Ramaswamy
Wholetime Director
Shilpa Soti
Company Secretary
Mumbai
Date : 5 June 2007
77