Daulat Securities Limited is a **Kolkata-based** financial services firm specializing in the Indian capital markets. The company operates an integrated business model providing brokerage and custodial services, with a strategic stronghold in the **Eastern Region** of India. As a single-segment entity, it focuses exclusively on **Share Broking and Depository Services**, leveraging long-standing memberships with national exchanges to serve a diverse client base. ### Exchange Memberships and Service Architecture The company’s operational foundation is built upon its status as a regulated intermediary, maintaining the necessary licenses to execute trades and manage securities across India’s primary financial infrastructure. * **Stock Broking:** Active member of the **National Stock Exchange of India Ltd. (NSE)** and **The Calcutta Stock Exchange Ltd. (CSE)**. * **Depository Services:** Registered **Depository Participant** with the **National Securities Depositories Ltd. (NSDL)**. * **Third-Party Distribution:** Engaged in the distribution of **Mutual Fund** products, diversifying its service offerings beyond pure equity trading. * **Settlement Framework:** Operates under the **T+2 Settlement System** with strict adherence to **SEBI** margin norms to ensure transactional integrity. ### Strategic Evolution and Capital Management Daulat Securities has recently transitioned from a phase of capital preservation to one of operational stability. A defining characteristic of the company’s strategy has been the fiscal discipline exercised by its leadership to ensure long-term viability. * **Capital Reinvestment (Plough Back):** Historically, Key Management Personnel (KMP) **deferred or waived salaries** to reinvest funds into the organization’s working capital during periods of lower profitability. * **Shift to "Steady-State":** Management has officially signaled a shift to a **"going steady"** phase, noting that **strong enough profit** has been garnered to resume standard executive compensation and normalize administrative spending. * **Technological Modernization:** The company is currently undergoing a paradigm shift, ramping up **technological and human resources** to address the increasing role of digital platforms in financial services and to counter competitive pressures from discount brokers. ### Governance Framework and Leadership Continuity The company is led by a board of professionals with deep expertise in legal and financial domains, ensuring compliance with the **Companies Act, 2013** and **SEBI (LODR) Regulations, 2015**. **Board Composition and Key Appointments** The leadership team was recently secured through long-term re-appointments to oversee the next growth phase: | Executive Name | Designation | Experience / Qualifications | Tenure & Effective Date | | :--- | :--- | :--- | :--- | | **Mr. Jitendra Kochar** | **Managing Director** | **LLB; 31+ Years** experience | **3 Years** (from May 29, 2024) | | **Mrs. Anamika Kochar** | **Whole Time Director** | Promoter & Non-Executive | **5 Years** (from May 29, 2024) | | **Mr. Ajit Kochar** | **Whole Time Director** | **CA; 31+ Years** experience | Ongoing (Salary revised Aug 2024) | * **Committee Oversight:** The board is supported by an **Audit Committee**, **Nomination and Remuneration Committee**, and **Stakeholders Relationship Committee**. * **Remuneration Policy:** Reflecting a conservative fiscal approach, Whole Time Director salaries are currently structured at approximately **₹25,000 per month** as the company stabilizes. ### Financial Performance and Asset Classification The company’s financial health is characterized by a strong net worth and a debt-free status regarding public deposits, though it experienced a contraction in revenue in the most recent fiscal year following a high-growth period in **FY 2023-24**. **Comparative Financial Summary (Standalone)** | Metric | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Revenue from Operations** | **₹1.66 Crore** | **₹4.78 Crore** | **₹1.01 Crore** | | **Other Income** | **₹1.26 Crore** | **₹1.53 Crore** | **₹0.49 Crore** | | **Net Profit After Tax (PAT)** | **₹1.62 Crore** | **₹3.49 Crore** | **₹0.42 Crore** | | **Net Worth (as of Aug 2024)** | **₹20.97 Crore** | - | - | **Capital Structure and Liquidity** * **Equity Base:** Paid-up capital is stable at **₹5.00 Crore**, comprising **50,00,000 equity shares** at a face value of **₹10 each**. The authorized capital is **₹6.00 Crore**. * **Asset Classification (Ind AS 109):** Financial assets are categorized into **Amortised cost**, **Fair Value through Other Comprehensive Income (FVOCI)**, and **Fair Value through Profit and Loss (FVTPL)**. * **Receivables Management:** Trade receivables are carried at **cost** (not amortized) as they are typically outstanding for less than **six months**. No allowances for doubtful debts have been deemed necessary. * **Cash Position:** Cash and equivalents stood at **₹47,820** (March 31, 2024). The company utilizes **Bank Overdrafts** and short-term loans to manage liquidity for **Security Deposits**. ### Risk Profile and Mitigation Strategies While Daulat Securities considers itself a largely **"risk-free"** entity due to its strict margin policies in the retail segment, it remains exposed to systemic capital market risks. **Risk Matrix and Management Response** | Risk Category | Impact Area | Mitigation Strategy | | :--- | :--- | :--- | | **Market Volatility** | Quarterly earnings fluctuations | Management cautions that **quarterly results do not indicate annual trends**. | | **Credit Risk** | Counterparty default | Assets are only written off when there is **no reasonable expectation of recovery**. | | **Interest Rate Risk** | Floating rate Bank Overdrafts | Monitored under a formal **financial risk governance framework**. | | **Operational Risk** | System failures/Cybersecurity | Implementation of **access controls** and **transaction monitoring**. | | **Liquidity Risk** | Short-term obligations | Maintained through credit lines; **no material uncertainty** for the next 12 months. | **Key Risk Exclusions:** * **Foreign Exchange:** **Zero exposure**; no significant international transactions. * **Commodities:** **No exposure**; the company does not trade in commodity markets. * **Public Deposits:** The company holds **no public deposits** and has no Core Investment Companies (CIC) within its structure. ### Internal Controls and Compliance The company maintains a robust internal audit mechanism to provide independent assurance on control effectiveness. * **Audit Oversight:** The Audit Committee regularly reviews internal audit reports and regulatory compliance. * **Taxation:** **Deferred Tax Assets** are recognized based on the high probability of future taxable income, supported by historical performance. * **Regulatory Stability:** There has been **no resignation of statutory auditors** in recent periods, and the company remains in full compliance with **SEBI** and **Companies Act** mandates.