Incorporated in **1990** and headquartered in Kolkata, **SKP Securities Limited** is a bespoke, relationship-based boutique financial services firm. Operating in a highly regulated environment, the company provides a comprehensive suite of investment and advisory services to a diverse client base, including banks, insurance companies, Asset Management Companies (AMCs), family offices, and retail investors across all socio-economic strata. --- ### **Diversified Financial Service Architecture** SKP Securities operates under a single primary business segment: **Broking & Dealing in Securities and related services**. Its operations are **100% domestic**, with all revenue and assets located within India. | Service Category | Key Offerings & Regulatory Status | Revenue Recognition Basis | |:---|:---|:---| | **Broking & Institutional Equities** | Equity trading on **NSE** and **BSE**; **SEBI** registered Stock Broker. | Point-in-time; recognized on settlement date. | | **Distribution & Private Wealth** | Mutual Funds (**AMFI** registered), Fixed Deposits, and Bonds. | Commission recognized upon allotment/right to receive. | | **Depository Services** | Participant services via **NSDL** and **CDSL**. | Based on service agreements and transaction execution. | | **Investment Banking** | Merchant Banking, M&A, and Corporate Advisory; **SEBI** registered. | Recognized when the right to receive income is established. | | **Wealth Advisory** | Portfolio Management (**PMS**) and Research Analysis. | Subscription fees recognized pro-rata over contract terms. | --- ### **Strategic Leadership & Succession Planning** The company is transitioning toward a model that blends decades of market experience with next-generation professional expertise. * **Founder Leadership:** Led by Managing Director **Naresh Pachisia**, who possesses **42 years** of capital markets experience. * **Next-Gen Integration:** The appointment of **Mr. Vaibhav Pachisia** (MBA, **INSEAD**) as Executive Director signals a shift toward data-driven growth. He brings **7 years** of experience in **management consulting** and **institutional equities** to the firm. * **Board Composition:** As of March 31, 2025, the Board consists of **8 Directors** (3 Executive, 5 Non-Executive). This includes **4 Independent Directors** and **1 Woman Director**, ensuring high standards of corporate governance. * **Key Recent Appointment:** **Deepak Jalan** (MD of Linc Ltd) joined as an Independent Director in **October 2024** for a **5-year** term, further strengthening board-level oversight. --- ### **Financial Performance & Efficiency Metrics** The company has demonstrated a significant financial turnaround, characterized by improved profitability and a strategic expansion into **Margin Funding**. | Metric | FY 2023-24 | FY 2022-23 | Strategic Driver | | :--- | :--- | :--- | :--- | | **Return on Net Worth** | **21%** | **9%** | Significant increase in Profit After Tax (PAT). | | **Net Profit Margin** | **Growth Trend** | **17%** | Driven by higher topline and stringent cost controls. | | **Debt Equity Ratio** | **0.65** | **0.83** | Improved via term loan repayment and profit retention. | | **Interest Service Coverage** | **38.28** | **14.84** | Enhanced by EBITDA growth and efficient fund management. | | **Debtor Turnover Ratio** | **0.60** | **0.22** | Reflects a strategic increase in **Margin Funding** for clients. | | **Current Asset Ratio** | **2.68** | **2.04** | Strengthened liquidity and bank loan repayments. | --- ### **Capital Structure & Shareholder Value** SKP Securities maintains a conservative and transparent capital structure designed to reward long-term investors. * **Capital Expansion:** Following a **1:1 Bonus Issue** in June 2022, the paid-up share capital doubled from **₹340.44 Lacs** to **₹680.88 Lacs**. * **Dividend Policy:** The Board recommended a final dividend of **₹2 per equity share** (Face Value **₹10**) for FY 2024-25, following a **10% dividend** (₹1 per share) in the previous cycle. * **Reserves:** The company consistently strengthens its balance sheet, transferring **₹50 Lacs** to the **General Reserve** in the 2023 cycle. * **Debt Profile:** The company maintains a **debt-free status** regarding public debt instruments, with no fixed deposit programs or mobilization of public funds. --- ### **Operational Infrastructure & Asset Custody** The company leverages robust digital and physical infrastructure to manage client assets securely. * **Asset Custody (as of March 2025):** * **83.95%** of shares held via **CDSL** * **15.32%** of shares held via **NSDL** * **0.73%** held in physical form * **Financial Liabilities:** As of **March 31, 2025**, total financial liabilities stand at **₹3,483.42 Lacs**, primarily comprised of trade payables (**₹2,275.92 Lacs**) and short-term borrowings (**₹1,002.30 Lacs**). --- ### **Risk Management & Governance Framework** SKP Securities employs an integrated framework to mitigate systemic and operational risks in a volatile market. * **Market & Proprietary Risk:** Proprietary investments have been shifted toward **risk reduction** to counter global macroeconomic uncertainties. These are subject to **Marked-to-Market (MTM)** valuation under **Ind-AS**. * **Liquidity & Credit Risk:** Managed via rolling cash flow forecasts and maintaining flexibility through committed credit facilities. Surplus funds are parked only in **high credit-rated** institutions. * **Regulatory Compliance:** The firm actively monitors "game-changing" technological disruptions and frequent **SEBI** regulatory shifts. * **Related Party Transactions:** For **FY 2026-27**, the company is seeking approval for transactions with **SKP Commodities Limited** that may exceed **SEBI LODR** materiality thresholds, ensuring all dealings remain at **arm’s length**. * **Employee Benefits Risk:** The company manages **Defined Benefit Plans** subject to interest rate risk (linked to **Government bond yields**) and investment risk (linked to **Mutual Fund NAVs**). --- ### **Future Outlook: The "Bespoke" Advantage** While the Indian financial services industry is consolidating toward large-scale fintech players, SKP Securities differentiates itself through a **"bespoke personalized value-add"** model. The company is positioned to capitalize on the increasing **financialization of Indian household savings** and the growing pool of investible surplus in the domestic economy. By integrating institutional-grade research with personalized wealth management, the firm aims to maintain its niche in a fast-growing, competitive landscape.