Chartered Capital and Investment Limited is an Ahmedabad-based financial services firm and a **SEBI-registered Category I Merchant Banker** (since **April 1994**). The company is currently navigating a transformative period characterized by a strategic pivot away from its legacy advisory operations toward a model centered on capital management and strategic restructuring. --- ### Strategic Pivot: Cessation of Merchant Banking Operations The company has formally announced a fundamental shift in its long-term business strategy. Despite its decades-long history in financial advisory, the company has decided to exit its primary business line. * **Surrender of License:** The company has officially stated it **does not intend to continue** its merchant banking activities. It is currently in the process of filing a formal application with **SEBI** for the **surrender of its Merchant Banking Registration Certificate**. * **Organizational Wind-down:** To facilitate this transition while maintaining regulatory compliance, the company has bifurcated its leadership roles. **Mr. Nevil Sheth** was appointed as **Compliance Officer** (effective **April 3, 2026**), while the former officer, Mr. Sagar Bhatt, will remain with the merchant banking division only until the surrender process is finalized. * **Leadership Continuity:** Despite the pivot, **Mr. Mohib N Khericha** has been re-appointed as **Managing Director** for a **3-year term** (April 1, 2024, to March 31, 2027) to oversee the restructuring. --- ### Legacy Service Portfolio and Operational Infrastructure Until the formal surrender of its license is complete, the company continues to be recognized for a comprehensive suite of non-funding advisory services: * **Capital Market Services:** Issue management, underwriting, **Qualified Institutions Placements (QIP)**, and managing **Open Offers** under Takeover regulations. * **Corporate Actions:** Execution of **Buy-back of shares** and **Delisting offers**. * **Advisory:** Domestic and overseas mergers and acquisitions (M&A) and general corporate consultancy. * **Infrastructure:** Headquartered in **Ahmedabad**, the company’s fixed assets consist primarily of office premises and immovable properties. It operates as a service-oriented entity with no manufacturing requirements. * **Human Capital:** As of March 31, 2025, the company employed **8 people**. Recent leadership additions include a **President - Investment** and a **President - Strategy & Operations** (appointed **March 2026**) to guide the new strategic direction. --- ### Financial Performance and Capital Structure The company has seen a significant expansion in its balance sheet and total income over the last three fiscal years, though profit margins have recently faced pressure from rising operational costs. #### Three-Year Financial Summary | Particulars (Rs. in lacs) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Total Income** | **1,175.63** | **796.32** | **205.98** | | **Profit After Tax (PAT)** | **538.51** | **543.33** | **32.67** | | **Total Shareholders' Equity** | **16,765.13** | **16,286.32** | **12,466.47** | | **Net Profit Margin (%)** | **45.81%** | **68.23%** | **15.86%** | | **Return on Net Worth** | **3.47%** | **3.61%** | **0.94%** | #### Key Financial Observations * **Revenue Growth:** Total income grew by **47.6%** in FY25, continuing a sharp upward trajectory from FY23. This growth is largely attributed to **Other operating income** and **Other Income** rather than core fee-based services. * **Margin Compression:** The **Net Profit Margin** fell from **68.23%** to **45.81%** in the most recent fiscal year. This was driven by increased **employee costs**, **tax expenses**, and general administrative overhead. * **Capital Strength:** The company maintains a **low-debt** profile with no externally imposed capital requirements. It follows a **Zero dividend** policy, reinvesting all profits back into the business to strengthen the equity base. * **CSR Status:** The company is **not currently required** to spend on Corporate Social Responsibility (CSR) as it falls below the statutory thresholds for net profit (**< Rs. 5 Cr**), net worth (**< Rs. 500 Cr**), and turnover (**< Rs. 1000 Cr**). --- ### Investment Portfolio and Market Risk Exposure With the wind-down of advisory services, the company’s financial health is increasingly tied to its strategic investment activities and the performance of its securities portfolio. | Risk Category | Exposure Level | Details | | :--- | :--- | :--- | | **Equity Price Risk** | **High** | Investments held at **FVTOCI** (Fair Value Through Other Comprehensive Income) totaled **₹30.2 crore**. A **10%** market shift impacts equity by **₹3.02 crore**. | | **Mutual Fund Risk** | **High** | Investments held at **FVTPL** (Fair Value Through Profit or Loss) rose to **₹106.84 crore** in FY25. | | **Credit Risk** | **Low** | Exposure is limited to reputable banks and institutions with **high credit ratings**. | | **Liquidity Risk** | **Low** | The company does not accept fixed deposits and relies on internal accruals; it has **insignificant interest-bearing borrowings**. | | **Currency Risk** | **Nil** | Operations are entirely domestic; no exposure to foreign exchange fluctuations. | --- ### Regulatory Compliance and Governance The company operates under the oversight of the **Board of Directors**, utilizing an enterprise-wide risk management process. However, it has recently faced regulatory headwinds: * **SEBI Administrative Warning:** On **March 22, 2024**, SEBI issued a warning letter following an inspection of the company's books. The warning cited violations of **SEBI (Merchant Bankers) Regulations (Reg. 9A & 13)** and **SEBI (PIT) Regulations**. Management has since implemented corrective measures to improve compliance standards. * **Shareholding Reclassification:** In **November 2024**, the **BSE** approved the reclassification of **Mr. Amritlal Rikhabchand Sanghvi** from the 'Promoter' category to the 'Public' category. #### Current Shareholding Pattern (Post-Reclassification) | Category | Shares Held | Percentage (%) | | :--- | :--- | :--- | | **Promoter & Promoter Group** | **22,39,734** | **74.37%** | | **Public Holding** | **7,71,886** | **25.63%** | | **Total** | **30,11,620** | **100.00%** | --- ### Future Outlook and External Catalysts The company’s future performance will be dictated by its ability to successfully exit the merchant banking sector and manage its substantial investment book amidst a volatile macroeconomic backdrop. * **Opportunities:** Favorable Indian demographics and a rising middle class with investible surplus provide a strong backdrop for the financial assets the company holds. * **Threats:** The company remains sensitive to **capital market volatility**. External risks include global trade tensions and potential "dumping" from China into the Indian market due to restricted US access, which could impact the valuation of the company's underlying investments. * **Internal Controls:** Auditors have confirmed that internal control systems are adequate under the **Companies (Auditor's Report) Order, 2016**, ensuring reasonable assurance for asset protection during the business transition.