Industry overview:
A merchant banking firm is a financial organization that provides you with banking and
financial consultancy services. Merchant bank help you arrange your loans and offers you
appropriate guidance as to how to plan and invest your finances.
It was in 1967 that National Grindlays Bank introduced the concept of merchant banks in
India. In 1972, the State Bank of India became the first Indian Commercial Bank to set up
a separate Merchant Banking Division. Till date, however, merchant banks in India have
been operating mostly as issue houses and not full- fledged merchant banks like in other
countries.
In India, a merchant banker is defined as "an individual who is involved in the
business of issue management either by making arrangements regarding buying, selling or
subscribing to the securities as a manager, advisor, consultant in relation to such an
issue management."
The industrial boom in India has led to major growth in the need for merchant bankers.
Merchant banking is an amalgam of banking and consultancy services. SEBI was established
in 1992 as a regulatory body for protecting the interests of investors in the securities
market. They made a few rules and guidelines for merchant bankers so that there is no
monopoly, plus the interest of the customers is not harmed.
Our Company
Galactico Capital is a boutique investment banking Company which offers comprehensive
set of financial services across Debt & Equity. Our services include corporate finance
advisory, debt syndication, private equity advisory & structured solutions for small
and emerging enterprises.
Our entrepreneurial mindset, innovative deal structuring and strong execution
capabilities make us the preferred partner for our clients. We leverage strong
relationships with institutional investors to structure the best deals for our clients. We
are passionate about supporting our customers, our communities and our people. Their
success is our success. We seek to build strong relationships with our customer and
deliver superior and consistent customer experience across all products and services.
We understand & believe that finance is a source of empowerment that contributes
significantly to the fulfillment of business houses goals. The focused Objective of
enhancing & scaling our engagements with Clients, keep us always on our toe on
innovating, adding new product / services to our portfolio of offerings to Clients year
on year.
Galactico is a professionally managed firm having team of distinguished Chartered
Accountants, Company Secretary, Lawyers, Merchant Bankers, Corporate Financial Advisors
and Tax consultants. Todays Business World demands quality professional services that are
provided in a timely and a cost-effective manner.
We, at Galactico strive with an ever-increasing desire to fulfil the needs of our
clients where quality counts. Success of our firm is based on the strength of our client
relationships and the quality of our staff and promoters. Our clients value long-term
relationships which enable us, as their advisers, to gain in-depth knowledge of their
financial affairs and requirements.
REVIEW OF OPERATIONS:
During the Financial Y ear 2022-23, Company has earned a total income of Rs. 42,078.56
thousand as compared to Rs. 46,111.65 thousand in the previous financial year.
Net profit after tax has decreased from Rs. 16,883.30 thousand in the previous
financial year to Rs. 13,978.43 thousand in the current financial year. Consequently, EPS
during the current year was Rs. 0.09 per share as compared to Rs. 0.11 per share in the
previous financial year.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The Companys internal control systems are adequate, operating effectively and
commensurate with the size of business. These internal control systems are provided
through competent management, implementation of standard policies and processes,
maintenance of an appropriate audit programme with an internal control environment,
effective risk monitoring and management information systems. Moreover, the Company
continuously upgrades these systems in line with the best available practices.
The internal control systems are supplemented by extensive internal audits, regular
reviews by the Management and standard policies and guidelines to ensure the reliability
of financial and all other records to prepare financial statements and other data. The
Company has regular checks and procedures through internal audits conducted by an
independent audit firm, periodically. The reports are deliberated and an executive summary
of the same along with Action Taken Reports (ATR) and steps taken by the Management to
address the issues, are placed before the Audit Committee meeting/ Board meeting for their
review. Reports of internal auditors are reviewed by the Audit Committee, and corrective
measures, if any, are carried out towards further improvement in systems and procedures in
compliance with Internal Control Systems. The Board also recognises the work of the
auditors as an independent check on the information received from the Management on the
operations and performance of the Company.
RISK MANAGEMENT:
As the Companys performance is dependent on capital markets, it faces the risk of
downturn in the economic growth and/or worsening macro-economic environment. Ongoing
pandemic situation, a slowdown in foreign investment inflows pose risks to the Company.
Global events may also pose challenges to the growth of the Company as it directly
impacts foreign inflows and indirectly will have a bearing on the Indian economy. Risks
from geo-political tensions, global financial market volatility led by rise in interest
rates and the threat of trade protectionism all post significant risks to the operations
of the Company.
The Company faces significant competition from companies seeking to attract its
customers/clients financial assets. In particular, it competes with other Indian and
foreign brokerage houses, discount brokerage companies, investment banks, public and
private sector commercial banks and asset managers, among others, operating in the markets
in which it is present. The Company also faces threats from the tightening and the
ever-evolving regulatory framework and any unfavorable policy changes like introduction of
long-term capital gains tax. Internal threat to the Company arises from failure of
compliance or overlooking of any misrepresentations/fraud in the operations of the
Company.
The Company has established a comprehensive system for risk management and internal
controls for all its businesses to manage the risks that it is exposed to. The objective
of its risk management framework is to ensure that various risks are identified, measured
and mitigated and also that policies, procedures and standards are established to address
these risks and ensure a systematic response in the case of crystallisation of such risks.
CAUTIONARY STATEMENT:
Statements in the Management Discussion and Analysis describing the Companys
objectives, projections, estimates, expectations may be forward-looking statements. Actual
results may differ materially from those expressed or implied. Important factors that
could make difference to the Companys operations include economic conditions in which the
Company operates, change in government regulations, tax laws, statutes and other
incidental factors.
| For & on behalf of the Board of Directors of Galactico Corporate Services
Limited |
|
| Sd/- |
Sd/- |
| Vipul Lathi |
Sandeep Palwe |
| Director |
Director |
| DIN:05173313 |
DIN: 06393282 |
+91-9892691696
