Sequity Capital is engaged in financial investments, mainly in debt instruments (bonds), to generate a steady cash flow, preferably higher than bank deposit rates. These cash flows are either reinvested or withdrawn at the proprietor’s discretion.
The market investments are structured into Principal Protected Notes (PPNs) to enable investment in equities (shares) without risking company capital during the tenure of investment. Our equity decisions follow three investment philosophies: value investing, contrarian strategy, and focused equity approach.
Performance Report – March 2025
During the period, the business received investments and purchased securities to restructure interest payments received. Trading activities and transactions were profitable, albeit scarce in volume.
This monthly performance report aims to communicate the following:
- Key Developments
- Security Holdings
- Financial Statements
- Explaining the Financial Statements
- Manager’s Report
By understanding their businesses, owners (shareholders) can make more informed decisions and exercise higher control over the management of their business.
Key Developments
- March 2025 marks the first month of profitability, as we have attained valuation higher than the invested capital. This month also marks the receipt of our first interest income, churning the wheel of cash-flow generation.
- We were able to secure a funding of additional ₹1,00,000 to diversify bond investments. This was done to secure frequent periodic interest income to improve frequency of cash-flow generation.
- We are underway with the development of an intraday trading framework. The framework has been tested once resulting in a positive ROI of 4.16%.
- The Indian equity benchmark Nifty 50 stands at 23,519.35, regaining significantly after testing the 22,104.85 point mark.
- Indian bonds are under pressure from rising US bond yields, which are globally considered to be a safer asset. This means that higher yields (or lower price) from Indian bonds are expected to attract global investors.
Security Holdings
At present, we own the following securities listed in the stock exchanges (NSE & BSE):
Holdings as on 31st March 2025
| Instrument | Quantity Held | Last Traded Price | Current Market Value |
| 1015UCL26-N1 | 10 | ₹995.00 | ₹9,950.00 |
| 1040UCL25-N4 | 15 | ₹999.00 | ₹14,985.00 |
| 1060ECL29-NS | 20 | ₹990.00 | ₹19,800.00 |
| 842IIFL26 | 10 | ₹967.00 | ₹9,670.00 |
| 92GS2030 | 500 | ₹114.00 | ₹57,000.00 |
| 943ECL28 | 10 | ₹956.90 | ₹9,569.00 |
| 960ISFL25-N1 | 10 | ₹1,010.00 | ₹10,100.00 |
| 96IIFL28A-NF | 10 | ₹949.70 | ₹9,497.00 |
| 985IIFL22 | 10 | ₹995.00 | ₹9,950.00 |
| GOLDBEES | 100 | ₹74.17 | ₹7,417.00 |
| ITC | 10 | ₹409.80 | ₹4,098.00 |
| PNB | 20 | ₹96.13 | ₹1,922.60 |
| SBIN | 30 | ₹771.60 | ₹23,148.00 |
| SMC Global | 10 | ₹104.55 | ₹1,045.50 |
| TATA Motors | 10 | ₹674.45 | ₹6,744.50 |
| Grand Total | 780 | ₹194,896.60 |
Financial Statements
Income Statement for March 2025
| ACCOUNT | TOTAL |
| Operating Income | |
| Interest Income | 142.20 |
| Realized P&L | 161.90 |
| Unrealized P&L | 2,591.15 |
| Total for Operating Income | 2,895.25 |
| Gross Profit | 2,895.25 |
| Operating Expense | |
| Trading Charges | 275.56 |
| Total for Operating Expense | 275.56 |
| Operating Profit | 2,619.69 |
| Non Operating Income | |
| Total for Non Operating Income | 0.00 |
| Non Operating Expense | |
| Total for Non Operating Expense | 0.00 |
| Net Profit/Loss | 2,619.69 |
Balance Sheet as on 31st March 2025
| ACCOUNT | TOTAL |
|---|---|
| Assets | |
| Current Assets | |
| Bank Account | 554.38 |
| Trading Account | 6,300.03 |
| Total for Current Assets | 6,854.41 |
| Fixed Assets | |
| Securities | |
| Debt | 1,50,521.00 |
| Equity | 36,958.60 |
| Metals & Commodities | 7,417.00 |
| Total for Securities | 1,94,896.60 |
| Total for Fixed Assets | 1,94,896.60 |
| Total for Assets | 2,01,751.01 |
Liabilities & Equities | |
| Liabilities | |
| Current Liabilities | |
| Total for Current Liabilities | 0.00 |
| Long Term Liabilities | |
| Total for Long Term Liabilities | 0.00 |
| Total for Liabilities | 0.00 |
| Equities | |
| Owner’s Equity | 2,01,001.00 |
| Current Year Earnings | 750.01 |
| Total for Equities | 2,01,751.01 |
| Total for Liabilities & Equities | 2,01,751.01 |
Explaining the Financial Statements
The key observations from the financial figures are as follows:
- Unrealised Profit of ₹2,591.15:
This month our holdings appreciated in value by ₹2,591.15. However, in reality we would not gain this amount from selling our securities. This is because, last month our securities tanked by ₹997.05- and Unrealised P&L for March 2025 does not consider the Unrealised P&L of February 2025.
To calculate our Net Unrealised P&L we can add the Profit/Loss from these two periods: ( -₹997.05 + ₹2,591.15 ) = ₹1,594.1 Net Unrealised P&L.
- Trading Charges of ₹275.56:
Due to heavy purchase of securities, sale of securities, and trading activities- this is the net amount charged to us by Zerodha Broking based on the difference between accounting figures and actuals for Trading Account (funds).
Manager’s Report
Business
The month of March started with high transaction activities as we were engaged in the allocation of additional funds we had received, into a series of bonds that would provide us with frequent cash-flow generation. We also shifted from 82HUDCO27 bonds to securities with over 10% yields, while holding the G-Secs.
As we have acquired a desired portfolio, we are mostly involved in monitoring and developing our intraday trading framework to improve Realized P&L figures without disrupting our holdings.
Threats
The strengthening of the USD, rising US bond yields, and higher tariffs will surely impact profitability of businesses globally. The events threaten Indian bonds, as US bonds will be more preferable- devaluing our bonds.
However, this will impact on the real income from interest and not directly on our returns- as can be expected with any other fixed-income instrument. Investments made in GoldBEES will counter this negative effect to some extent.
In the case of equities, sectors mainly relying on global demands (especially from the US) will be facing uncertainties in the coming days. Fortunately, most of our holdings depend heavily on/in the Indian theatre itself.
Suggestions
Sequity management strongly feels that the current holdings have been purchased at the right prices. The pricing of securities is still at a healthy valuation optimal for purchase, as a result investments are encouraged but are not required for the profitability of the portfolio.
We are looking forward to testing and improving on our intraday trading framework to generate higher returns. Like previous month, this month too- we are confident about meeting our investment objectives.
Tuhin Subhro Sardar
(Manager)
Sequity Capital 