Edelweiss financial ltd

Edelweiss Capital is a financial services company based in Mumbai, India. Edelweiss Capital Limited provides investment banking, institutional equities, private client broking, asset management, wealth management, insurance broking and wholesale financing services to corporate, institutional and high net worth individual clients. It operates from 43 other offices in 19 Indian cities. Since its commencement of business in 1996, it has grown into a diversified Indian financial services company organised under agency and capital business lines operated by the Company and its thirteen subsidiaries. Edelweiss employs over 2900 professionals across 297 offices and branches spread across 144 cities of India

HISTORY OF THE COMPANY

The

Company was incorporated on November 21,1995 as a public limited company. Company received its certificate for commencement of business on January 16, 1996. It entered the business of securities broking in the year 2002 by acquisition of Rooshnil Securities Private limited which later changed to Edelweiss Securities Private Limited and is presently known as Edelweiss Securities Limited. Started F & O license obtained in the year 2001 It started commencement of Commodity Broking in 2004 It started commencement of Insurance Broking in 2005. Got the Clearing Member License in 2007 Edelweiss got SEBI nod to launch MF in 2009. Edelweiss Capital Ltd has appointed Mr. Berjis Desai as an Additional (Independent) Director on the Board of Directors of the Company w.e.f. November 18, 2009.

About Us
1. Overview Edelweiss is one of India's leading Financial Services Groups, with operations that span more than forty different lines of business and subsidiaries.
Our operations straddle the entire spectrum of financial services in the wholesale and retail market segments including Credit, Capital Markets & Asset Management, Commodities and Life Insurance. Indias growth story is driven by a savings rate of about 32%, one of the youngest populations in the world and strong domestic consumption. With a net worth of over INR 28 Bn, Edelweiss is adequately capitalised to exploit the opportunities emerging from this robust economic growth. Edelweiss employs over 3200 professionals across 229 offices and branches spread across 115 cities of India. Our core philosophy of Ideas create, values protect is translated into an approach that is led by entrepreneurship and creativity, and protected by intellectual rigour, research and analysis.

2. Approachs
Edelweiss is future-ready. The company has already made proactive business investments to service emerging customer needs on the one hand, and enhance stakeholder value on the other. Diversification:
Over the years, Edelweiss progressively widened its services basket by moving into adjacent business spaces. Edelweiss was a purely capital market-focused player a few years ago; this business accounts for only about a third of its revenues today. As Edelweiss continues to broad base revenues, a rising proportion of growth will be derived from its Credit, Asset Management, Commodities and Insurance businesses.

Strong and liquid balance sheet:

Edelweiss possessed a balance sheet size at the end of FY 12 of over INR 145 Bn with a net worth of over INR 28 Bn. Edelweiss focuses on low gearing that provided the organisation with sufficient headroom to fund growth without comprising its balance sheet integrity.

Risk management:
Edelweiss risk mitigation practices are strengthened through timely investments in people, processes and IT capabilities on the one hand, and credible governance practices stewarded by an industry-renowned Board on the other.

People:
Edelweiss cultivates a culture of entrepreneurship and ownership among its people. The Group continues to invest in developing leadership and managerial talent across the organization through a four-tier system of identifying, nurturing and mentoring leaders. Fountainhead, Edelweiss state-of-the-art leadership center in Alibaug, is among few such centers in the Indian Financial Services industry, promoting among others, a culture of training and development across the group.

Processes:
Edelweiss has undertaken a significant restructuring of its business to enhance operational efficiencies, dividing the organization into two operational clusters; Wholesale and Retail and SBU groupings that provide the scale and ergonomic growth. The company has carried out a visioning exercise with a roll-down across the organization to ensure clear articulation of its growth aspirations.

Execution expertise:
Edelweiss focus on error free and timely execution across businesses represent the core of its success. It possesses strong project teams that focus on processes, reviews and deliverables. Whenever necessary, it re-engineers processes and innovates state-of-the-art technology solutions that enhance efficiency.

Brand:
The Edelweiss brand is a much respected brand enjoying widespread recognition due to consistent investment in diverse set of brand building efforts spanning both conventional and unconventional channels. The Ideas create, values protect Protect tagline underlines all branding efforts. A testament to the quality of the reputation being enjoyed by Edelweiss is the fact that Superbrands India has recognized Edelweiss as the Business Superbrand in the year 2011.

3. Business Principals
The core value proposition of Edelweiss is reflected in Ideas create, values protect. The company follows an amalgamation of values and principles in order to uphold this value proposition.

We will be a Thinking Organization.

We will constantly bring thought to everything we do. Our clients and our own success depends on our ability to use greater ideation and more imagination in our approach.

We will be Fair to our clients, our employees and all stake holders.
We want our clients and our employees to be richer for their relationship with us.

We will take care of our People seriously.

Our policies - in spirit and in letter - will ensure transparency and equal opportunity for all. We will go beyond the normal goals of attracting, recruiting, retaining and rewarding fine talent. We will ensure that every individual in Edelweiss has an opportunity to achieve their fullest potential.

We will operate as a Partnership, internally and externally.

Though individuals are very often brilliant, we believe teamwork and collaboration will always ensure a better and more balanced organization. We will also treat our clients as partners and show them the same respect and consideration that we would our internal team members.

We will focus on the Long Term.

Though the world will change a lot in the coming years and our assumptions for the future may not hold up, we will reflect on the long-term implications of our actions. Even when making short-term decisions we will be aware of the long-term implications.

We will focus on Growth

for our clients, employees and shareholders.

Our Reputation and Image is more important than any financial reward.
Reputation is hard to build and even harder to rebuild. Our reputation will be impacted by our ability to think for our clients, maintain confidentiality and by our adherence to our value system.

We will Obey and Comply with the rules of the land.

We will maintain the highest standard of integrity and honesty. When we are unclear we will seek clarifications.

We will respect Risk.

Our business is going to be a constant challenge of balancing risk and reward. Our ability to constantly keep one eye on risk will guide us through this fine balance.

Our Financial Capital is a critical resource for growth.

We will endeavor to grow, protect, and use our financial capital wisely.

4. Board of Directors
Mr. Rashesh Shah, Chairman & CEO
Mr. Shah, co-founder of the Company has over 20 years of diverse experience in the financial services industry in India and has been instrumental in building Edelweiss into one of Indias leading diversified financial services companies. Prior to founding Edelweiss, he worked with ICICI Limited. Rashesh has served on the Boards of various companies and public institutions. He has in the past served on the Executive Committee of the National Stock Exchange and has recently been appointed as Chairman, Maharashtra Council of FICCI. He also Chairs the National Council on Capital Markets formed by ASSOCHAM. He has been nominated to the Executive Committee of a proposed US - India Investors Forum. His academic qualifications include an MBA from IIM, Ahmedabad and a Diploma in International Trade from the Indian Institute of Foreign Trade, New Delhi

Mr. Venkat Ramaswamy, Executive Director

Mr. Ramaswamy, co-founder of the Company spearheads some of the Companys most strategic businesses including Investment Banking and Alternative Assets Advisory. He brings significant experience and expertise on client relationships to Edelweiss. Prior to Edelweiss he worked with Spartek Emerging Opportunities Fund and ICICI Limited. His academic qualifications include an MBA from the University of Pittsburgh, United States of America and a Bachelors Degree in Electronics Engineering.

Mr. Himanshu Kaji, Executive Director

Mr. Himanshu Kaji brings to the table diverse experience of over two decades in the financial services space. In addition to his responsibilities as Executive Director, Mr. Kaji continues to be Group Chief Operating Officer managing Finance, Operations, Technology, Governance, Administration, Investor Relations and Compliance at the Edelweiss Group. He is also in charge of Corporate Planning, which looks at Strategy Development and Execution for the Group. A Chartered Accountant with a Post Graduate Diploma in Securities Law, Mr. Kaji gave up his investment banking job at ICICI Limited to join his family business of broking. During this period he played a key role in the overhaul of the oldest stock exchange in Asia the Bombay Stock Exchange (BSE). Himanshu was part of a select group which oversaw the corporatisation and the de-mutualisation of the BSE. Mr. Kaji has been involved with Edelweiss since the early days, advising Edelweiss through strategic and broking related challenges.

Mr. Narendra Jhaveri, Independent Director

Mr. Jhaveri specialised in public finance and has over 40 years of experience in the financial services sector. He has occupied important positions in various prestigious institutions including National Council of Applied Economic Research (NCAER), Reserve Bank of India and ICICI Ltd. Mr. Jhaveri rose to become Joint Managing Director and then the Executive Chairman of ICICI Securities Ltd. His academic qualifications include a Masters in Economics from Gujarat University and an M.Sc in Economics from the London School of Economics.

Mr. Kunnasagaran Chinniah, Non-Executive Director

Mr. Chinniah is Managing Director/Global Head of Portfolio, Strategy & Risk Group with GIC Special Investments ("GIC SI"), the Private Equity arm of the Government of Singapore Investment Corporation ("GIC"). He joined GIC in 1989 and has held various positions with the Special Investments Department of GIC in their North American, European and Asian regions. Mr. Chinniah is a Chartered Financial Analyst and his other academic qualifications include a Bachelors Degree in Electrical Engineering from the National University of Singapore and an MBA from the University of California (Berkeley).

Mr. P N Venkatachalam, Independent Director

Mr. Venkatachalam has over 35 years of experience in the banking sector in India and abroad and 5 years of experience in the software industry in Banking & Finance verticals. He joined State Bank of India in 1967 and retired in 2004 as its Managing Director. He was a member of the Interim Pension Fund Regulatory Authority of India and a Director on the Board of Small Industries & Development Bank of India (SIDBI). He holds a Masters Degree in Economics and is a Certified Associate from the Indian Institute of Bankers.

Mr. Berjis Desai, Independent Director

Mr. Desai is the Managing Partner of J. Sagar & Associates, one of India's leading law firms. He has been practicing for more than 30 years and has a rich and varied experience in the legal field, with specialisation in corporate law, Mergers & Acquisitions, derivatives, securities & financial laws, International Business laws and International Commercial Arbitration. He holds a Masters degree in Law from the University of Cambridge.

Mr. Sanjiv Misra, Independent Director

Mr. Misra has a rich and varied experience of over 25 years in the financial services industry, having worked with various organizations including Goldman Sachs, Citigroup etc. Mr. Misra is the President of Phoenix Advisers Pte. Ltd, a boutique advisory and principal investing firm and Senior Advisor with Apollo Management. Mr. Misra holds a Bachelor of Arts degree in Economics from St Stephens College, Delhi University, an MBA from IIM, Ahmedabad and a Master of Management from the J. L. Kellogg Graduate School of Management.

Mr. Sunil Mitra, Independent Director

An Indian Administrative Service (IAS) officer of the West Bengal cadre, Mr. Mitra had a successful career with the government, retiring as the Revenue and Finance Secretary, Government of India, in June 2011. He led the Revenue teams for the formulation of the 2010 and 2011 Union Budgets. During this period he is also credited with spearheading several pioneering reforms in the Direct and Indirect tax regimes as well as bringing in several organizational and systemic changes in tax administration. Prior to that, as the Disinvestment Secretary from August 2009 to January 2010, he led the formulation of the listingled policy of disinvestment and oversaw three major disinvestments. During his stint with the West Bengal government, Mr. Mitra is credited with carrying widespread reforms in the Stateowned power sector. He also played a crucial role in the demutualisation of the Calcutta Stock Exchange.

5. Products & Services

Edelweiss has a wide range of products and solutions in different market segments for institutional and corporate clients.

Capital Market
Institutional Broking
Backed by unparalleled research capabilities, Edelweiss has emerged as Indias largest domestic Institutional Broking house. Investment Banking The Investment Banking business of Edelweiss is dedicated to providing the highest quality independent financial advice and transaction execution to corporations, entrepreneurs and investors.

Private Equity Advisory M & A AdvisoryEquity Capital Markets Loan Syndications Debt Capital Markets

Institutional Equities
Research Desk Prime Brokerage

Credit
Promoter Funding
Edelweiss offers Promoter Funding services to promoters of companies against their shareholding in the organization or to the operating company against the shareholding of its promoters.

Infrastructure Financing
Edelweiss provides financial products to meet the debt requirements of infrastructure companies. These include companies involved in the development of infrastructure projects and in the provision of infrastructure services.

Trade Financing
Timely availability of credit is an integral ingredient for the rapid growth of a business. Edelweiss Trade Financing provides credit solutions to large corporates, dealers, vendors and channel partners.

Fixed Income
Edelweiss offers a wide range of innovative products in the Fixed Income domain and caters to multiple market and client segments.

Asset Management
Alternative Asset Management
Edelweiss Alternative Asset Advisory group advises global and domestic Institutional Investors on emerging Indian opportunities across liquid, illiquid and hybrid investment strategies.

Insurance
General Insurance Broking and Advisory
Edelweiss' Insurance Broking brings unmatched expertise in Risk Analysis, Assessment and Transfer and a broad spectrum of services from Risk Management to Claim Settlement in Non-Life Insurance.

Housing Finance Home Loans

Edelweiss offers a wide range of Housing Finance products that are designed to address a variety of financing needs in the shortest possible time. We have several housing finance products under the aegis of the National Housing Bank (NHB). A brief overview of our various offerings in the Housing Finance segment:

Home Loans
We offer Variable Rate Home Loans and Fixed Rate Home Loans.

25-Year Loans
Our newly launched 25-Year Home Loans help purchase a property and repay in lower / more manageable installments.

Loan Against Property

Use the equity of your home or commercial space to fulfill your dreams or for business expansions through Variable Rate Home Loans and Fixed Rate Home Loans against property.

Re-financing
Property purchased with personal funds can be refinanced using our Re-financing services.

Balance Transfer and Top Up

We can help you transfer your existing Home Loan or Loan Against Property to Edelweiss' Housing Finance at a attractive rates of interest and for a flexible tenure so that you can benefit from a lower Equated Monthly Installment (EMI). You can also avail of an additional ("Top-Up") loan against the same property.

Lease Rental Discounting We offer loan against rental income from lease contracts with corporate clients.

Operational highlights of Scheduled Commercial Banks (SCBs)

Key attributes of balance sheet:
Contribution of CASA in incremental deposits touched 48.4% in FY10 (21.7% in FY09) PSBs gained market share in FY10, foreign banks saw contraction

Asset-liability management:
ALM mismatch was noticeable for PSBs with a shift in liabilities towards short end and assets towards the longer endNew private banks shifted deposits towards medium and long term while loans moved closer towards the New private banks shifted deposits towards medium and long term, while loans moved closer towards the shorter end

Attributes of P&L account:

Modest growth in earnings due to slow NII and other income growth ROAs and ROEs (sector) contracted; however new pvt. banks showed improvement

Asset quality deteriorated:

Gross NPL ratio increased; however, private banks showed improvement Slippages increased (to INR 657 bn) in FY10; recoveries remained weak (at INR 390 bn) Weaker sections have shown steady decline in NPA ratio in recent years, corroborating the point that weaker sections are in fact not less creditworthy than other sections

Other highlights:
Gross NPL ratio increased; however private banks showed improvement Gross NPL ratio increased; however, private banks showed improvement

Global banks are faced with three major challenges:

Refinancing a large portion of their liabilities Ending their dependence on emergency support measures by the public sector Redressing balance sheet weaknesses and reducing operating costs

References
http://www.edelweiss.in http://www.edelweissfin.com http://www/edelweissfp.com http://en.wikipedia.org/wiki/Edelweiss_Capital