# CEBILE CAPITAL LLC X-17A-5 (2020-03-02) — Broker-dealer annual report - Company: CEBILE CAPITAL LLC - Form: X-17A-5 - Filed: 2020-03-02 - Period: 2019-12-31 - Accession: 0001728467-20-000005 - CIK: 1728467 - File #: 8-70070 - Material weakness: No - Auditor: AJSH&Co LLP - Auditor location: New Delhi, K7 - Contact: Dmitriy Rutitskiy - Phone: 2127514422 - Signed by: Dmitriy Rutitskiy (CFO) Original filing: https://www.sec.gov/Archives/edgar/data/1728467/000172846720000005/CebilePublic2019.pdf --- {0}------------------------------------------------ UNITED ST A TES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 | | OMB APPROVAL | |-------------|---------------------------| | OMB Number: | | | | Expires: August 31, 2020 | | | Estimated average burden | | | hours per response 12 oo | | | SEC FILE NUMBER | # ANNUAL AUDITED REPORT FORM X-17A-5 PART Ill | 8 - 70070 | | |-----------|--| # FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder | REPORT FOR THE PERIOD BEGINNING | 11/28/2018
~~~~~~~~~~~~~ | AND ENDING | 12/31/2019
~~~~~~~~~~~- | | |----------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------|------------|-----------------------------|--| | | MM/DD /Y Y Y Y | | MMIDDIYYYY | | | | A. REGISTRANT IDENTIFICATION | | | | | NAME OF BROKER-DEALER: | | | | | | Cebile Capital, LLC | | | OFFICIAL USE ONLY | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | FIRM ID. NO | | | | 295 Madison A venue, 12th Floor | | | | | | (No. and Street) | | | | | New York | NY | | 10017 | | | (Citv) | (::;tate) | | (ZioCode) | | | | B. ACCOUNTANT IDENTIFICATION | | (Area Code --Telephone No.) | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | | AJSH&CoLLP | | | | | | | (Name -- it' individual. state last, first, middle name) | | | | | C-7/227, Sector-7 Rohini | New Delhi | India | 110085 | | | (Address) | (City) | (State) | (Zip Code) | | | CHECK ONE:
129 Certified Public Accountant
D Public Accountant
D Accountant not resident in United States or any of its possessions | | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | *\*Claims for exemption from the requirement that the annual report be covered by the opinion of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis for the exemption. See section 240.17 a-5 (e)(2).* > Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. SEC 1410 (06-02) {1}------------------------------------------------ #### **OATH OR AFFIRMATION** | Dmilriy Rulitskiy | , swear (or affirm) that, to the | |------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------| | best of my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of
Cebile Capital, LLC | , as of | | December 31, 2019
, are true and correct. I further swear (or affirm) that neither the company | | | nor any partner, proprietor, principal officer or director has any proprietary interest in any account classified solely as that of | | | a customer, except as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | This report** contains (check all applicable boxes): | | | ~ (a) Facing page. | | | lli] (b) Statement of Financial Condition. | | | D (c) Statement oflncome (Loss). | | | D ( d) Statement of Changes in Financial Condition. | | | D (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital. | | | D
(t) Statement of Changes in Liabilities Subordinated to Claims of Creditors. | | | D
(g) Computation of Net Capital. | | | D
(h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3. | | | D
(i) Information Relating to the Possession or control Requirements Under Rule 15c3-3. | | | D (j) A Reconciliation, including appropriate explanation, of the Computation of Net Capital Under Rule 15c3-1 and the | | | Computation for Determination of the Reserve Requirements Under Exhibit A ofRu1e 15c3-3. | | | D (k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of con | | | solidation. | | | (!) An Oath or Affirmation. | | | D (n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit. | | | D ( o) Exemption report | | *\*\*For conditions of confidential treatment of certain portions of this filing, see section 240.17 a-5 (e)(3).* {2}------------------------------------------------ Statement of Financial Condition December 31, 2019 (With Report of Independent Registered Public Accounting Firm Thereon) {3}------------------------------------------------ # Table of Contents | | Page | |---------------------------------------------------------|-------| | Report of Independent Registered Public Accounting Firm | | | Financial Statement: | | | Statement of Financial Condition | | | Notes to Statement of Financial Condition | 2 — 4 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ### Report of the Independent Registered Public Accounting Firm To the Members of Cebile Capital LLC #### Opinion on Statement of Financial Condition We have audited the accompanying statement of financial condition of Cebile Capital LLC (the "Company"), and related notes to the statement. In our opinion, the statement present fairly, in all material respects, the financial position of the Company as of December 31, 2019 in conformity with accounting principles generally accepted in the United States of America. #### Basis for Opinion The statement of financial condition and related notes to the statement is the responsibility of the Company's management. Our responsibility is to express an opinion on it based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB'') and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the statement of financial condition is free of material misstatement, whether due to error or fraud. The Company 1s not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understating of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinions. Our audit included performing procedures to assess the risks of material misst atement of statement of financial condition, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the statement of financial condition. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation. We believe that our audits provide a reasonable basis for our opinion. AJSH & Co LLP We have served as the Company's Auditor since 2019. New Delhi, India March 2, 2020 ![](_page_4_Picture_14.jpeg) • ![](_page_4_Picture_15.jpeg) {5}------------------------------------------------ #### Statement of Financial Condition December 31, 2019 #### Assets | Cash and cash equivalents
Accounts receivable | S | 170,774
2,482,795 | |--------------------------------------------------|----|----------------------| | Receivable from affiliates | | 60,000 | | Other assets | | 16,230 | | Total assets | ಕಾ | 2,729,799 | | Liabilities and Stockholder's Equity | | | | Liabilities: | | | | Imputed interest on accounts receivable | S | 118,280 | | Accounts payable and accrued expenses | | 17,815 | | Deferred tax liabilities | | 607,577 | | Total liabilities | | 143,672 | | | | | | Subordinated borrowings | | 183,868 | | | | | | Member's Equity | | 1,802,259 | | Total liabilities and stockholder's equity | ತಿ | 2,729,799 | See accompanying notes to Statement of Financial Condition. {6}------------------------------------------------ # (1) Description of Business Cebile Capital, LLC (the "Company") was formed in Delaware in September 2012 and is located in New York. The Company completed its registration as a broker-dealer in November 2018 with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority ("FINRA"). The Company is a wholly owned subsidiary of Cebile Corporation (the "Parent"). The Company is a strategic and financial advisory firm which provides private placement and capital raising advisory services focused on mid-market private equity and real asset funds. # (2) Summary of Significant Accounting Policies # (a) Basis of Presentation This Statement of Financial Condition has been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). #### (b) Use of Estimates The preparation of the Statement of Financial Condition in conformity with GAAP requires the Company's management to make estimates and assumptions. The reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period are affected by these estimates, by their nature, are based on available information. Therefore, actual results could materially differ from those estimates. # (c) Cash and Cash Equivalents The Company maintains its cash balances in one financial institution, which at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts and believes it is not subject to any significant credit risk on cash. #### (d) Leases On January 1, 2019 the Company adopted the provisions of ASU 2016-02, Leases (Topic 842), which superseded the existing guidance for lease accounting. ASU 2016-02 requires a modified retrospective approach for all leases existing at, or entered into after, the date of initial application. The Company evaluated its existing vendor agreements, including its expense sharing agreement for the recognition criteria under this guidance. It was determined that as of January 1, 2019 or during the period ended December 31, 2019 no agreements or arrangements existed that would be classified as a lease under the adopted guidance. #### Income Taxes (e) The Company uses the asset and liability method to provide for income taxes in accordance with Accounting Standards Codification (ASC) 740, Income Taxes. Deferred tax assets and liabilities are recorded and adjusted for the future tax consequences of events that have been recorded in the financial statements or the tax returns. Differences between the carrying amounts of existing assets and liabilities on the financial statement and their respective tax bases are attributable to these deferrals. Deferred tax assets and liabilities are measured using enacted tax laws and rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The federal, state and local deferred tax asset is included in the deferred tax amount in the statement of financial condition. {7}------------------------------------------------ The Company accounts for uncertainties in income taxes pursuant to ASC 740-10, Income Taxes. ASC 740-10 requires that the Company determine whether a tax position is more likely than not to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Once it is determined that a position meets this recognition threshold, the position is measured to determine the amount of benefit to be recogmized in the financial statements. #### (3) Transactions with Related Parties In 2018 the Company signed a Subordinated loan Agreement with the Parent. The principal amount of the loan was \$175,000 with a maturity set for November 15, 2021. Interest accrued under this loan agreement was at 4.5% per annum. As at December 31, 2019 the amount of accrued interest totaled \$625. The Subordinated borrowings are available in computing net capital under the SEC's Uniform Net Capital rule. As at December 31, 2019, the Company has a due from affiliate of \$60,000 against a retainer fee paid by one of its customers to the affiliate. #### Income Taxes (4) A summary of the current and deferred income tax provisions for the year ended December 31, 2019 are as follows: | Current:
State/city | | | ని | |------------------------------------|-------------------------------------|---------|--------------------| | | Total | | રી | | Deferred:
Federal
State/city | | | 359,630
247,947 | | | Total | | 607,577 | | | Total provision for income
taxes | ಲ್ಲಿ ಮಾ | 607,628 | The difference between the statutory federal income tax rate of 21% and the effective tax rate of 25.92% is primarily related to current net operating losses. The Company has not recognized any uncertain tax positions as of December 31, 2019. The Company remains open to examination from either the federal, New York State, or New York City jurisdictions for years 2018 and forward. The Company does not anticipate any settlements that would result in a material change to its financial statements. As of December 31, 2019, the Company had deferred tax liabilities of \$607,577. {8}------------------------------------------------ Notes to Statement of Financial Condition December 31, 2019 ### (5) Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606) and other assets and deferred costs - contracts with customers (Subtopic 340-40)," ("ASU 2014-09") that supersedes current revenue recognition guidance, including most industry-specific guidance. ASU 2014-09 requires a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. The guidance also requires additional disclosures regarding the nature, amount, timing and uncertainty of revenue that is recognized. ASU 2014-09 also requires a company to capitalize expenses it expects to collect from the customer in the future. During the year, the Company has entered into revenue agreements wherein the payment has been deferred over a period of more than 12 months. Thus there exists a difference between when the consideration that will be paid and when the services are rendered to the customers, accordingly an imputed interest income has been recognized in the financial statements. Imputed future interest at December 31, 2019 was \$118,280 and is reported on the statement of financial condition. ## (6) The Company is a member of the Financial Industry Regulatory Authority and is subject to the Securities and Exchange Commission Uniform Net Capital Rule 15c3-1. This Rule requires the maintenance of minimum net capital and that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1 and that equity capital may not be withdrawn if the resulting net capital ratio would exceed 10 to 1. At December 31, 2019, the Company's net capital was \$144,091, which was \$139,091 in excess of its minimum requirement of \$5,000. ## (7) Commitments and Contingent Liabilities The Company is not involved in any material litigation, nor is any material litigation threatened against the Company. #### (8) Recent Accounting Pronouncements There were no new accounting pronouncements during the year ended December 31, 2019 that we believe would have a material impact on our financial position or results of operations. #### (9) Subsequent Events The Company has evaluated whether events or transactions have occurred after December 31, 2019 that would require recognition or disclosure in these financial statements through March 2, 2020, which is the issuance date of these financial statements. There were no subsequent events which would require in the footnotes to the financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.