PNB GILTS Share price

PNB Gilts Ltd. was incorporated on 13th March 1996 as a publiclimited company under the Companies Act 1956 vide Certificateof Incorporation no.55-77120 of 1995-96. It was set up as awholly owned subsidiary of Punjab National Bank. The companyreceived certificate for commencement of business on April 251996. The Company commenced operations from July 2 1996.As per the announcement in the monetary policy on May 14 1994a system of Primary Dealers ("PDs") was introduced in theGovernment Securities market with Reserve Bank of India ("RBI")as the regulating authority. RBI in its guidelines dated March29 1995 specified that the Subsidiary of Scheduled CommercialBank/s and All India Financial Institution/s as well asCompanies incorporated under the Companies Act 1956 who areengaged predominantly in the securities business and inparticular the Government Securities market would be eligibleto become Primary Dealers.RBI authorised the Company in May 1996 to be enlisted asPrimary Dealers ("PD") in Government Securities with effect fromJune 1 1996. This authorisation which was valid upto March 311997 has been renewed by RBI on an annual basis. PNB Gilts Ltd.is one of the first six companies that were issued licenses byRBI to act as Primary Dealers in the Government securitiesmarket.RBI granted certificate of registration to the Company videRegistration No. 14.00007 dated February 10 1998 to carry onthe business of Non-banking Financial Institution. Thiscertificate has been issued by RBI under the section 45IA of theRBI Act 1934. RBI has also classified the Company as aninvestment company under Non-Banking Financial Companies(Reserve Bank) Directions 1977/Miscellaneous Non-BankingFinancial Company (Reserve Bank) Directions 1977. The Companyis a member of the Primary Dealer Association of India. TheRegistered-cum-Corporate office of the company is located in NewDelhi. Besides the company has branch offices in MumbaiChennai Calcutta and Ahmedabad.The Company started its operations with an initial paid upcapital of Rs.50 crores minimum capital required for a PrimaryDealer which was entirely subscribed by Punjab National Bank.In August ''99 Company capitalized its reserves to the extent ofRs.25 crores to issue bonus shares in the ratio of 1:2 therebyenhancing its paid-up capital to Rs.75 crores. This wasfollowed by a Rights Issue of Rs.25 crores in the ratio of 1:3to Punjab National Bank in September ''99 which increased itspaid-up capital to Rs.100 crores. Rs in lacsPeriod Ending 31.3.97 31.3.98 31.3.99 31.01.2000 for 10 monthsParameters Audited Audited Audited AuditedEquity Capital 5000.00 5000.00 5000.00 10000.00Reserves 789.21 5144.75 8194.18 11057.47Networth 5789.21 10144.75 13194.18 21057.47Total Income 3316.70 12536.34 15041.33 20442.53Total Expenses 635.33 4349.51 8900.84 10668.24Profit Before Tax 2681.37 8186.83 6140.49 9774.29Profit After Tax 1611.96 5510.54 4259.43 6016.89RatiosEarning Per Share (Rs) 4.30 11.02 8.52 9.21*Return on Networth (%) 37.12 54.32 32.28 32.96Net Asset valueper Share (Rs.) 15.44 20.29 26.69 21.06Dividend Paid 747.95 1050.00 1100.00 587.93*Success Ratio- Treasury Bills 62.41% 49.68% 46.90% -- GovernmentSecurities 95.81% 90.41% 43.87% -Overall Turnover Ratio- Treasury Bills 340 61 101 27.96- Government Securities 45 67 28 22.98* Number of shares as on 31.01.2000 have been taken on weightedaverage basis. The capital on 31.3.99 was Rs.50 crore on13.8.99 Bonus shares worth Rs.25 crores were issued. As on30.9.99 Rights shares worth Rs.25 crores were issued. FurtherPublic Issue is of Rs. 35 crores equity.** Interim Dividend paid during the year 1999-2000. The Boardof Directors have declared in their meeting held on 15thDecember 1999 an interim dividend of 7.5% for the year1999-2000 on pro-rata basis. Note : The Board has declared afurther Interim Dividend of 6.5% for the year 1999-2000 onpro-rata basis in its meeting held on 27th March 2000. FurtherBoard has decided that no final dividend will be paid by theCompany.Significant accounting policy and qualifications from auditorshave been disclosed under Financial Performance of the Company.SUBSIDIARIESThe Company does not have any subsidiary.