# CEBILE CAPITAL LLC X-17A-5 (2021-02-25) — Broker-dealer annual report
- Company: CEBILE CAPITAL LLC
- Form: X-17A-5
- Filed: 2021-02-25
- Period: 2020-12-31
- Accession: 0001728467-21-000001
- 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/1728467/000172846721000001/CebilePublic2020.pdf
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UNITED ST A TES SECURJTLES AND EXCHANGE COMMISSION Washington, D.C. 20549
| | OMB APPROVAL |
|-------------|---------------------------|
| OMB Number: | |
| | Expires: October 31, 2023 |
| | Estimated average burden |
| | hours oer resoonse 12.00 |
| | SEC FILE NUMBER |
| | 8 - 70070 |
## **ANNUAL AUDITED REPORT FORM X-17 A-5 PART Ill**
## FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder
| MM/DDIYYYY
A. REGISTRANT IDENTIFICATION | | MM/DOIYYYY |
|---------------------------------------------------------------------------|----------------------------------------------------------------------|-----------------------|
| | | |
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| | | OFFICIAL USE ONLY |
| ADDRESS OF PRI CI PAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | |
| 295 Madison A venue, I 2th Floor | | |
| (No. and Street) | | |
| NY | | 10017 |
| | | (Zip Code) |
| | | |
| B. ACCOUNTANT IDENTIFICATION | | |
| INDEPENDENT PUBLIC ACCOUNT ANT whose opinion is contained in this Report• | | |
| | | |
| (Name - if imlfridual. swte Jas1. [irs1. middle name) | | |
| ew Delhi | India | 110085 |
| | (State) | (Zip Code) |
| | | |
| | | |
| | D Accountant not resident in United States or any of its possessions | FOR OFFICIAL USE ONLY |
•Cf *aims for exemption from tlte req11ireme111 that the annual report be covered by ihe 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. I 7a-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)
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#### OATH OR AFFIRMATION
| I, | | Dmitriy Rutitskiy
, swear (or affirm) that, to the | | |
|----|----------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|--|--|
| | | best of my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of | | |
| | | , as of
Cebile Capital, LLC | | |
| | December 31, 2020 | , 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: | | | |
| | | | | |
| | None | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | Chief Financial Officer | | |
| | | Title | | |
| | | | | |
| | otarv Public | | | |
| | | Cl.AUOIATA'l'\.OR | | |
| | ~
NOTARY PIJllUC. - | ol-Yorll
No. 01TASOl58172
Ol-.idln~COoJnlll __ _ | | |
| | | Elq>ln>o lonNdSlLll:. | | |
| | This report** contains (check all applicable boxes): | | | |
| | ~ (a) Facing page. | | | |
| | @ (b) Statement of Financial Condition. | | | |
| | D (c) Statement of Income (Loss). | | | |
| 0 | (d) Statement of Changes in Financial Condition. | | | |
| D | (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital. | | | |
| D | (I) Statement of Changes in Liabilities Subordinated lo Claims of Creditors. | | | |
| D | (g) Computation of Net Capital. | | | |
| D | (h) Computation for Determination of Reserve Requirements Pursuant to Rule I 5c3-3. | | | |
| D | (i) Information Relating to the Possession or control Requirements Under Rule 15c3-3. | | | |
| | D U) A Reconciliation, including appropriate explanation, of the Computation of Net Capital Under Rule I 5c3-
I and the | | | |
| | | Computation for Detennination of the Reserve Requirements Under Exhibit A of Rule I 5c3-3. | | |
| | | D (k) A Reconciliatior1 between the auditetl and unaudited Statements of Financial Condition with respect tu methods of con | | |
| | | | | |
| | solidation.
~ (I) An Oath or Affirrni1lion. | | | |
| | | 0 (n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit | | |
| | | | | |
*••For conditions of co11jide11tial treatment of certain portions of this filing, see section 240. I 7a-5(e)(3).*
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Statement of Financial Condition
December 31, 2020
(With Report of Independent Registered Public Accounting Firm Thereon)
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## **Table of Contents**
| | Page |
|--------------------------------------------------------|-------------|
| Report oflndependent Registered Public Accounting Firm | |
| Financial Statement: | |
| Statement of Financial Condition | |
| Notes to Statement of Financial Condition | 2
-
5 |
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## 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, 2020 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) l"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 is 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 misstatement 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.
Lo/
AJSH & Co LLP
Ne have !>erved as the Company's Auditor since 2019.
New Delhi, India February 25, 2021
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## Statement of Financial Condition
December 3 1, 2020
#### Assets
| Cash and cash equivalents
Accounts receivable | | 1,234,892
2,520,564 |
|--------------------------------------------------|----|------------------------|
| Other assets | | 17,958 |
| Total assets | \$ | 3,773,414
========= |
| Liabilities and Stockholder's Equity | | |
| Liabilities: | | |
| lmputed interest on accounts receivable | | 89,328 |
| Accounts payable and accrued expenses | | 192,071 |
| Payable to affiliates | | 55,395 |
| SBA loan payable | | 64,592 |
| Deferred tax liabilities | | 468,276 |
| Total liabilities | | 869,662 |
| Member's Equity | | 2,903,752 |
| Total liabilities and stockholder's equity | \$ | 3,773,414 |
See accompanying notes to Statement of Financial Condition.
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## Notes to Statement of Financial Condition
December 3 I, 2020
### (1) Description of Business
Cebile Capital, LLC (the "Company") was formed in Delaware in September 20 12 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 ofCebile 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 heen 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 federal ly 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*
Effective January I, 2019 the Company adopted ASC Topic 842, Lease Accounting. The Company evaluates its existing vendor agreements, including its expense sharing agreement for the recognition criteria under this guidance. It was determined that during the period ended December 31 , 2020 no agreements or arrangements were entered into that would be classified as a lease under the guidance.
### *(e) Income T11xes*
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.
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## Notes to Statement of Financial Condition
December 3 I, 2020
**ln** 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.
The Company accounts for unce1tainties 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 recognized 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. The loan principal amount and interest were repaid in full on October 19, 2020.
As at December 3 1, 2020, the Company has a due to affiliate of \$55,395.
#### **(4) Income** Taxes
A summary of the current and deferred income tax provisions for the year ended December 31 , 2020 are as follows:
| Current: | | |
|-------------|----------------------------|---------------|
| Federal | | \$
520,376 |
| State/c ity | | 178 |
| | Total | 520,554 |
| Deferred: | | |
| Federal | | 74,533 |
| State/city | | (2
13,834) |
| | Total | (139,301) |
| | Total provision for income | |
| | taxes | \$
381,253 |
The Company has not recognized any uncertain tax positions as of December 31 , 2020.
The Company remains open to examination from either the federal, New York State, or New York City jurisdictions for years 20 I 8 and forward. The Company does not anticipate any settlements that would result in a material change to its financ ial statements.
As of December 31, 2020, Lhe Company had deferred Lax liabililies uf\$468,276.
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## Notes to Statement of Financial Condition
December 3 I, 2020
## (S) Paycheck Protection Program Loan
In April 2020, the Company applied for and received a promissory note (the " PPP Loan") evidencing an unsecured loan in the amount of \$64,592 made to the Company pursuant to the Paycheck Protection Program (the "PPP") under the Corona virus Aid, Relief, and Economic Security Act (the "CARES Act"), which was enacted March 27, 2020. The PPP Loan may be forgiven, in part or in whole, subject to certain conditions as stipulated under the PPP. The Company has started the process of applying for loan forgiveness. The PPP Loan is being administered by Customers Bank and bears interest at a rate of 1.0% per annum. The Company has not accrued for interest expense as it is considered immaterial and the Company expects the loan to be forgiven in full.
In accounting for the tenns of the PPP Loan, the Company is guided by ASC 470 Debt, and ASC 450-30 Gain Contingency. Accordingly, the Company recorded the proceeds of the PPP Loan as debt and it will derecognize the liability when the loan is paid off or when forgiveness is reasonably certain. The Company believes that the possibility of loan forgiveness is to be regarded as a contingent gain and therefore will not recognize the gain (and derecognize the loan) until all uncertainty is removed (i.e. all conditions for forgiveness are met).
As of December 31, 2020, the PPP Loan amounted to \$64,592 and is reported as "SBA loan payable" on the Statement of Financial Condition
#### (6) Net Capital Requirement
The Company is a member of the Financial Industry Regulatory Authority and is subject to the Securities and Exchange Commission Unifonn Net Capital Rule I 5c3-l. 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 l and that equity capital may not be withdrawn if the resulting net capital ratio would exceed I 0 to I. At December 31, 2020, the Company's net capital was \$987,426, which was \$970,928 in excess of its minimum requirement of \$16,498.
## (7) Recent Accounting Pronouncements
On January I, 2020, the Company adopted ASU 2016-13 Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (CECL) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842 on leases. In addition, ASC 326 made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities management does not intend to sell or believes that it is more likely than not they will be required to sell.
The Company has evaluated its Financial Instruments and determined that the new standard does not have a material impact on the Company's accounts as at December 31 , 2020
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## Notes to Statement of Financial Condition
December 3 I, 2020
## **(8) Commitments and Contingent Liabilities**
The Company is not involved in any material litigation, nor is any material litigation threatened against the Company.
## **(9) Risks and uncertainties**
The World Health Organization characterized the recent outbreak of the novel coronavirus ("COVID-19") as a global pandemic on March 11 , 2020. COVID-19 continues to adversely impact global and domestic commercial activity and has contributed to significant volatility in financial markets. The impact of COVlD-19 on the Company's financial performance will depend on future developments, including the duration and spread of the outbreak and related advisories and restrictions. These developments and the impact of COVlD-19 on the financial markets and the overall economy are highly uncertain and cannot be predicted. ff the financial markets and/or the overall economy are impacted for an extended period, the Company's future financial results may be adversely affected.
## **(10) Subsequent Events**
The Company bas evaluated whether events or transactions have occurred after December 31 , 2020 tbat would require recognition or disclosure in these financial statements through February 25, 2021 , which is the issuance date of these financial statements.
There were no subsequent events which would require disclosure 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.