MIRA
INFORM REPORT
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Report Date : |
11.08.2007 |
IDENTIFICATION DETAILS
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Name : |
SOBHA DEVELOPERS LIMITED |
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Registered Office : |
E-106, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
07.08.1995 |
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Com. Reg. No.: |
18475 |
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CIN No.: [Company
Identification No.] |
U85110KA1995PLC018475 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRS03591A |
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PAN No.: [Permanent
Account No.] |
AABCS7723E |
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Legal Form : |
Public Limited Liability Company. Company’s Shares are listed on Stock
Exchange. |
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Line of Business : |
To buy, contract and develop commercial, residential and office
properties. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 5400000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory
track records. Directors are reported as experienced and respectable businessmen.
Trade relations are reported as fair. Business is active. Payments are
usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
E-106, |
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Tel. No.: |
91-80-25597260, 25594139 |
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Fax No.: |
91-80-25594138 |
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E-Mail : |
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Website : |
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Corporate Office : |
# 4, Neeladri Plaza, Raja Ram Mohan Roy Road, Richmond
Road Circle, Bangalore - 560 025, Karnataka, India |
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Tel. No.: |
91-80-2210 4561 / 2 / 3 / 4 / 5 / 6 |
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Marketing Offices: |
#368, 7th Cross, Wilson Garden Pune 1st Floor, Chennai
Puzhakkal Padam, Tel :+ 91 487 2389770/1 Farm House |
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International Marketing Offices: |
Services and Trade Company LLC
Sobha Contracting LLC |
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Projects & Trade Division : |
#211/9A, 1st Main, 2nd Cross,
Sanjeevappa Layout, Nagavarapalya, C.V.Raman Nagar, Bangalore - 560 093,
Karnataka, India |
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Tel. No.: |
91-80-2524 4841 / 42 / 74 / 76 / 77 |
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Fax No.: |
91-80-2534 0307 |
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E-Mail : |
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Website : |
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Sobha
Renaissance Information Technologies : |
SRIT House, #113/1B, |
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Tel. No.: |
91-80-51951999 |
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Fax No.: |
91-80-51523300 |
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E-Mail : |
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Pune
Office : |
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Tel. No.: |
91-20-2613 6177, 2613 7292 |
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Chennai
Office : |
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Tel. No.: |
91-4114-309385 |
DIRECTORS
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Name : |
Mr. P.N.C. Menon |
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Designation : |
Chairman |
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Name : |
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Designation : |
Vice Chairman |
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Name : |
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Designation : |
Managing Director |
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Name : |
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Designation : |
Director |
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Name : |
Mr. Anup Shah |
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Designation : |
Independent Director |
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Name : |
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Designation : |
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Name : |
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Designation : |
Independent Director |
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Name : |
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Designation : |
Independent Director |
KEY EXECUTIVES
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Name : |
Mr. K Suresh |
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Designation : |
Company Secretary |
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Tel. No.: |
91-0-41321198 |
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E-Mail: |
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Name : |
Mr. P. Kanodia |
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Designation : |
Chief Financial Officer |
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Tel. No.: |
91-80-25564980/81 |
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E-Mail: |
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Name : |
Anup S. Shah Law Firm |
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Designation : |
Legal Advisors |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Category Code |
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) |
SHAREHOLDING
OF PROMOTER AND PROMOTER GROUP |
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1 |
INDIAN |
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a |
Any Other (Relatives of Promoters) |
90000 |
0.12 |
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SUB – TOTAL (A)
(1) |
90000 |
0.12 |
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2 |
FOREIGN |
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a |
Individual (NRI / Foreign Individual) |
63331350 |
86.87 |
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b |
Any Other (Relatives of Promoters) |
30 |
0.00 |
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SUB – TOTAL (A)
(2) |
63331380 |
86.87 |
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TOTAL HOLDING
FOR PROMOTERS (A) = (A) (1) +
(A) (2) |
63421380 |
87.000 |
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(B) |
PUBLIC
SHAREHOLDING |
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(1) |
INSTITUTIONS |
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a |
Mutual funds / UTI |
536155 |
0.74 |
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b |
Financial Institutions / Banks |
50720 |
0.07 |
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c |
Venture Capital Funds |
778 |
0.00 |
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d |
Insurance Companies |
84498 |
0.12 |
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e |
FII’s |
4260589 |
5.84 |
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f |
Foreign Venture Capital |
2000 |
0.00 |
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SUB – TOTAL (B)
(1) |
4934740 |
6.77 |
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2 |
NON-INSTITUTIONS |
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a |
Bodies Corporate |
1283825 |
1.76 |
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b |
i. Individual (Capital <= Rs. 0.10 million) |
2482467 |
3.41 |
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c |
Any Others |
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i. Clearing Member |
70428 |
0.10 |
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ii. Independent Directors |
228425 |
0.31 |
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iii. Non Resident Indians (Repat) |
96112 |
0.13 |
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SUB – TOTAL (B)
(2) |
4545613 |
6.24 |
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TOTAL HOLDING
FOR PUBLIC SHAREHOLDING (B) = (B) (1) +
(B) (2) |
9480353 |
13.00 |
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TOTAL HOLDING
FOR PUBLIC SHAREHOLDING (A) + (B) |
72901733 |
100.00 |
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(C) |
SHARES HELD BY
CUSTODIANS AND AGAINST WHICH DEPOSITORY RECEIPTS HAVE BEEN ISSUED |
- |
- |
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GRAND TOTAL (A +
B + C) |
72901733 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
To buy, contract and develop commercial, residential and office
properties. |
GENERAL INFORMATION
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No. of Employees : |
2125 |
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Bankers : |
v ABN Amro Bank NV v Andhra Bank v Canara bank v Corporation Bank v Dhanalakshmi
Bank v HSBC Bank v ICICI Bank v Kotak Mahindra
Bank v Oriental bank of
Commerce v State Bank of v Standard
Chartered Bank v Axis Bank |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Chartered Accountants |
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Address: |
Apartment No. 106 and 203, embassy Centre, No. 11, |
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Associates/Subsidiaries : |
Sobha
Interiors Division Plot
# 9, Bommasandra, Jigini Link Road,
Industrial Area, Bommasandra, Bangalore, Karnataka, India.
Sobha
Glazing & Metal Division Plot
# 10, Bommasandra, Jigini Link Road, Industrial Area Bommasandra, Bangalore,
Karnataka, India. Indeset
Group of Companies
P.O Sobha Projects & Trade Division Sobha Renaissance Information Technology |
Gulf
International Construction & Interiors Company W.L.L.CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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80000000 |
Equity Shares |
Rs. 10.00 each |
Rs. 800.000 Millions |
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1000000 |
7% Redeemable Preference Shares |
Rs. 100.00 each |
Rs. 100.000 millions |
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Total |
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Rs. 900.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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72901733 |
Equity Shares |
Rs. 10.00 each |
Rs. 729.020 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
792.02 |
298.700 |
298.700 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
7426.41 |
1069.600 |
356.800 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
8218.430 |
1368.300 |
655.500 |
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LOAN FUNDS |
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1] Secured Loans |
5452.27 |
4208.100 |
2209.000 |
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2] Unsecured Loans |
384.50 |
23.000 |
23.600 |
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TOTAL BORROWING |
5836.770 |
4231.100 |
2232.600 |
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DEFERRED TAX LIABILITIES |
22.330 |
0.000 |
0.000 |
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TOTAL |
14014.530 |
5599.400 |
2888.100 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1838.890 |
999.200 |
431.300 |
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Capital work-in-progress |
108.940 |
21.100 |
122.900 |
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INVESTMENT |
527.670 |
27.000 |
0.200 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
3777.950
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2544.000
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1905.400 |
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Sundry Debtors |
1577.380
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803.000
|
364.000 |
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Cash & Bank Balances |
683.56
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449.700
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65.800 |
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Other Current Assets |
0.000
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0.000
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0.000 |
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Loans & Advances |
11818.17
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5182.800
|
2237.900 |
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Total
Current Assets |
17857.060
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8979.500
|
4573.100 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
5287.670
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4033.000
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2021.300 |
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Provisions |
1030.360
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394.400
|
218.100 |
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Total
Current Liabilities |
6318.030
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4427.400
|
2239.400 |
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Net Current Assets |
11539.030
|
4552.100
|
2333.700 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
14014.530 |
5599.400 |
2888.100 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
11864.650 |
5966.200 |
4530.600 |
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Other Income |
1046.170 |
956.800 |
1381.000 |
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Total Income |
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6923.000 |
5911.600 |
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Profit/(Loss) Before Tax |
1865.850 |
1067.000 |
484.900 |
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Provision for Taxation |
250.610 |
182.200 |
138.400 |
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Profit/(Loss) After Tax |
1615.240 |
884.800 |
346.500 |
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Imports: |
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Raw Materials |
113.240 |
0.500 |
NA |
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Capital Items |
83.930 |
9.170 |
NA |
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Total |
197.170 |
9.670 |
NA |
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Expenditures : |
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Power
& Fuel Cost |
0.000 |
17.700
|
14.200
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Other
Manufacturing Expenses |
8071.530 |
4403.300
|
4668.800
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Employee
Cost |
0.000 |
230.400
|
210.400
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Selling
and Administration Expenses |
2248.850 |
630.800
|
205.600
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Miscellaneous
Expenses |
0.000 |
226.200
|
155.500
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Interest
& Financial Charges |
480.730 |
219.400
|
109.400
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Depreciation
|
243.860 |
128.200
|
62.800
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Total Expenditure |
11044.970 |
5856.000 |
5426.700 |
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KEY RATIOS
|
PARTICULARS |
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31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt-Equity
Ratio |
|
1.06 |
3.19 |
2.94 |
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Long
Term Debt-Equity Ratio |
|
0.95 |
2.38 |
2.25 |
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Current
Ratio |
|
2.27 |
1.63 |
1.45 |
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TURNOVER
RATIOS |
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Fixed
Assets |
|
6.66 |
6.60 |
11.14 |
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Inventory |
|
3.78 |
2.68 |
3.39 |
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Debtors |
|
10.04 |
10.22 |
13.29 |
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Interest
Cover Ratio |
|
4.66 |
5.86 |
5.43 |
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Operating
Profit Margin |
(%) |
21.93 |
23.71 |
14.50 |
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Profit
Before Interest And Tax Margin |
(%) |
19.89 |
21.56 |
13.12 |
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Cash
Profit Margin |
(%) |
15.56 |
16.98 |
9.03 |
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Adjusted
Net Profit Margin |
(%) |
13.52 |
14.83 |
7.65 |
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Return
On Capital Employed |
(%) |
24.25 |
30.31 |
31.78 |
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Return
On Net Worth |
(%) |
34.14 |
95.04 |
80.37 |
STOCK PRICES
|
Face Value |
Rs.10.00 |
|
High |
Rs.825.00 |
|
Low |
Rs.797.15 |
LOCAL AGENCY FURTHER INFORMATION
History
Sobha is a recognized leader in real-estate development business,
delivering international quality products of superior finish and services
through benchmarked practices & unique backward integration model.
The company was incorporated in the 1994 under the chairmanship of Mr.
PNC Menon. Apart from being the first ISO 9001 (1994 series) company in its
category in
Sobha with its unique business model that is backward integrated, has
been at forefront adopting the world-class building techniques and quality standards,
and now enjoys an ever-widening reputation for reliability, dependability and
honesty. Armed with the expertise in residential and contractual projects,
Sobha plans to diversify its presences across the Country entering into
different segments such as integrated townships, plot development, malls and
multiplexes.
Subject got listed at BSE and NSE on
December 20, 2006 with a record premium of 78.63%.
Business
The Company's operations can be divided into two
segments:
(i) Development and construction of residential projects and commercial
projects and
(ii) Construction of projects on a contractual basis.
Presently all the residential and commercial projects are located in
The Company is one of the leading real estate development and
construction companies in
The Company believes that it is the preferred contractor for M/s. Infosys
Technologies Limited and has constructed convention centres, software
development blocks, multiplex theatres, hostel facilities, guest houses, food
courts, restaurants, educational and research centres and club houses, in
various states of India. For other corporate customers, the Company has
constructed on a contractual basis residential bungalows, campuses, retail
showrooms and corporate offices.
a. Real Estate Projects:
As of March 31, 2007 the Company has developed and constructed 39
residential projects in
b. Contractual Projects:
As of March 31, 2007, the Company has constructed 97 contractual projects
in eight states of
Review
of operations and future outlook:
The total revenue increased to Rs.11,894 Million from
Rs.6,273 Million in the previous year recording a growth of 90%. Real Estate
revenue has grown from Rs.4,228 Million to Rs.7,538 Million representing a
growth of 78%. Contractual revenue increased to Rs. 4,327 Million from Rs.
2,024 Million in the previous year with a growth of 114%. 15 Real Estate
projects have been launched during the year. The order book position on
contractual projects is very healthy. A detailed "Management Discussion
and Analysis" is enclosed as an annexure to the Directors' Report
Initial
Public Offer (IPO) of the Company:
During the year, the Company had completed its highly successful Initial Public
Offering of 8,896,825 Equity Shares of Rs. 10/- each at a premium of Rs. 630/-
per Equity Share aggregating to Rs. 640/- per Equity Share. The total size of the
issue was Rs. 5,694 Million. The Initial Public Offer was over-subscribed to
the extent 126.48 times excluding the 882,120 shares reserved for Employees of
the Company.
The Company had also issued 583,468 Equity Shares of Rs. 10/- each to Bennett,
Coleman and Company Limited and Kotak Mahindra Private Equity Trustee Limited
as a part of its Pre IPO Placement at a premium of Rs.607/- per equity share
aggregating Rs. 617/- per Equity Share.
As a prelude to the IPO, the Company has issued 42,280,960 Equity Shares as
Bonus shares to the existing shareholders by way of capitalization of its
profits and free reserves in the ratio of two equity shares for every one
equity share held.
Management
Discussion and Analysis
Global
scenario of Real Estate Sector:
Although global private equity firms are currently capturing media
headlines and industry publications, there are other factors just as
significant that are driving change in the global real estate capital markets.
Global mergers and cross border transactions of real estate companies have
become the norm of the day.
In Asia, the Chinese and Indian markets will perhaps be the most exciting
regions over the next several years. The increased flow of institutional
funding into the sector will ensure that real estate values will continue to
rise.
Indian Economy - Overview:
Economic Survey 2006-07 states that the advance estimates of gross
domestic product (GDP) for 2006-07, released by the Central Statistical
Organization, places the growth of GDP at factor cost at constant (1999-2000)
prices in the current year at 9.2 per cent. While services maintained its
vigorous growth performance, there were distinct signs of sustained
Improvements on the industrial front. The overall macroeconomic fundamentals
are robust, particularly with tangible progress towards fiscal consolidation
and a strong balance of payments position. With an upsurge in investment, the
outlook is distinctly upbeat. The report further state that as the economy
expands at its fastest pace in two years, going by current trends, it will be
able to maintain the current momentum.
The India Growth Story has unfolded into a reality. The numbers substantiate
the progress achieved in the last decade. With GDP growth projection for
2007-08 at around 8.5 per cent,
Infrastructure:
The overall index of six core industries-having a direct bearing on
infrastructure and accounting for 27 per cent weight age in the Index of
Industrial Production (IIP)-registered a growth of 8.3 per cent during
April-December 2006, which was higher than the 5.5 per cent registered during
the same period in the previous year. In the first nine months of 2006-07,
crude petroleum, refinery products and electricity generation registered
accelerated growth rates.
Economic Survey 2006-07 states that an investment of US$ 320 billion
would be required in the infrastructure sector during the Eleventh Five Year
Plan. These investments are to be achieved through a combination of public
investment, public-private-partnerships (PPP) and exclusive private
investments, wherever feasible. Investment requirements in some key sectors are:
US$ 50.8 billion for modernization and upgradation of highways; US$ 9.25
billion for civil aviation; US$ 11.5 billion for ports; and US$ 69.39 billion
(40 per cent of which is expected from the private sector) for the railways.
With such bullish prospects in infrastructure, affiliated industries such as
cement are on a high. Cement consumption, for the first time, is set to exceed
the 150-million tonnes mark. Reflecting the demand for the commodity, capacity
utilization rose to over 100 per cent - to touch 102 per cent in January 2007 -
with dispatches touching 14.10 million tonnes as against the production of 14
million tonnes. As opportunities in the sector continue to come to the fore,
foreign direct investment has been moving northwards. The real estate and
construction sectors received FDI of US$ 289.1 million in the first half of
2006-07.
Indian
Real Estate:
The Real Estate industry comprising of Construction and Development of
properties which has grown from family based entities with focus on single
products and having a one-market presence into corporate entities with multi
city presence having differentiated products.
The industry has witnessed a considerable shift from traditional
financing methods and limited debt support to an era of Structured Finance,
Private Equity and Public Offering. The rally over a period of years has been
driven largely due to the growth of the IT and ITES sectors and the FDI in the
sector acting as a catalyst for the growth.
A considerable lifestyle shift has occurred in the Tier I and Tier II cities
wherein development is happening in the international format. The emergence of
malls, multiplexes, serviced apartments, high-end villas etc. is a pointer
towards this.
Research Agency (Merrill Lynch) forecasts that the Indian realty sector will
grow from US$ 12 billion in 2005 to US$ 90 billion by 2015. Prominent global
funds are sitting on a total corpus of US$ 12-15 billion.
The recent developments on the macro economic outlook have witnessed
tightening of the interest rates. Reconciling the twin needs of facilitating
credit for growth on the one hand and containing liquidity to tame inflation on
the other remains a challenge.
Strong population growth, a large pool of qualified workers, greater
integration with the world economy and increased investments are fuelling the
demand for residential, commercial, industrial and retail property. Deutsche
Bank Research has depicted
Retailers and Nails:
With the retail sector also on a boom, the country is witnessing a spurt in
extremely large retail spaces. Shopping malls with over 1 million Sq.ft. of
space have become the order of the day. Many of these are now at various stages
of construction across the country.
Residential Development:
It has been reported that residential complexes & properties in the
following Indian cities recorded a 24% growth - Mumbai, Kolkata, Delhi,
Hyderabad, Chennai, Bangalore, Jaipur, Goa and Pune, this has been the highest
growth seen in the past several years. Similar growth is expected from Tier-II
cities as per a recent report.
With a growing population and increasing urbanization, the joint family
system giving way to formation of nuclear families, rise in disposable income
coupled with the propensity to spend fuelled by a rise in employment
opportunities, the demand for housing in India as it stands today far exceeds
the supply.
Commercial
Properties:
The demand for commercial properties is growing steadily. In this
segment the IT industry itself is expected to require around 66 million sq. ft.
of office space.
Two sectors that are driving the volume and prices in the commercial
segment are the information technology and retail. The IT sector has been one
of the star performers of the economy. Because of their double-digit growth
rates and massive expansion drives, IT companies require large office space.
This is especially true in places like
Strength
& Strategy of the Company:
The Company's principal competitive strengths and the strategies to face
the challenges are as follows:
The Company has, over the past twelve years, truly redefined
the real estates cape of not only
Functioning as a one-stop solution provider, the Company offers its skills and
state-of-the-art technology right from the conception to completion of a
project. In a nutshell, everything from precision engineering to aesthetic
design, quality metal glazing to high-class interiors is done in-house. This
allows for stringent focus on quality control which in turn offers a fine
combination of precision and aesthetics. Besides this, its in-house Customer
Relationship Management (CRM) team ensures that customer support is just a
phone call away. The Company's other in-house operations like Interiors, Metal
glazing. Architectural Design Studio and the Concrete Block Making Factory only
add to its world-class facilities and standards. Currently, the Company has an
employee base of 13,000 including direct and indirect employees.
Sobha Developers has been an ISO 9001 : 2000 certified company since 1998, the
first such company operating in the sector, obtaining the accreditation from
India.
The Company with its vast experience in undertaking projects for residential
and contractual projects has a unique edge - the ability to offer truly
customized solutions to clients. Sobha's solutions are researched well in
advance to achieve maximum space utilization and remain timeless in
appeal.
A fine understanding of the needs and preferences of its
clients has left Sobha Developers Limited with an ever-growing list of
satisfied customers. The Company has to its credit an impressive line up of
completed and on going residential projects. Sobha Developers Limited is also
the preferred contractual partner to global Corporates like Infosys, ICICI,
Timken and HP among others. The Company has also embarked on building large
township projects with world class infrastructure. Highly respected in the
industry and market for delivering world class residential, commercial and
contractual projects. Sobha Developers Limited is a unique company offering
end-to-end solutions. In view of its consistent international quality, it is
today the most preferred and trusted construction partner for families buying
quality homes and big corporate houses.
The in-house R&D Department helps the Company benchmark itself against world
standards in project conception, execution and delivery This helps to focus
single mindedly on innovations in construction and to adapt and integrate them
into work processes. Hence total value to the customer is assured at every
stage of the construction.
The Company's excellent project management system, in-house capabilities,
passion for detailing and commitment to quality ensure that it not only sets an
industry benchmark but also remains a market leader in terms of quality.
FINANCIAL
RESULTS:
For the year 2006-07 Company's Sales and other income have
shown a robust 90% growth vis-a-vis previous year at Rs. 11,894 million as
compared to Rs. 6,273 million.
Operating profits have kept pace with top line growth at 85% and Profit before
tax has shown an increase of 75% as compared to previous year.
The Company has earned Net Profit of Rs. 1,615 million as against Rs. 885
million in previous years. This shows jump of 82% in Net Profits.
Diluted Earning per Share has improved to Rs. 24.26 per share as compared to
Rs. 13.84 in previous year, thus showing substantial jump of 90%.
Keeping in view the robust growth the Board of Directors has recommended a
final Dividend of Rs. 5.50 Equity Share.
The Net Worth of the Company stands at Rs. 8,155 Million, resulting in an improved
Debt Equity ratio to 1:0.72. The Current Ratio is healthy at 2.8:1 as compared
to previous year 1.96: 1.
Divisions
Sobha Interiors
Sobha Interior’s Division was set up with the realization that even the
best of constructions would be a trifle incomplete without woodwork and
interiors to match. Sobha Interiors is thus an endeavour to create products of
consistent high quality, superlative finish and lasting value. It is a
reiteration of the Sobha philosophy of using only international quality products
in all its projects.
Sobha Glazing and
Metal Works
This division was primarily set up to raise the bar by introducing
international standards for structural glazing and architectural metal works in
Sobha Concrete
Products
This division is a continuation of the Company’s journey of excellence.
Set up in the KIADB estate in Jigni with the same philosophy, vision and
business ethos, this division manufactures concrete blocks, pavers, kerbstones.
Water drainage channels, paving slabs and elated landscape products of
unmatched quality
Awards and
Accolades
The Company was nominated for the prestigious CNBC-V 18’s emerging India
Awards 2006. This is particularly noteworthy since Sobha had been part of the
first 3 short-listed names out of more than 3500 entrants in 12 categories.
Society Interiors RR Kabel Land Development Honour was given in April
2006 by Society Interiors, the design magazines from Magna Publishing Co
Limited and RR Kabel. Mr. PNC Menon was chosen by them for the Society Interiors
RR Kabel Land Development Honour, in recognition of his contribution to the
field of architecture and interior design.
Well-Built
Structure Award
The Company bagged the 2nd prize given by the Builders
Association of India, Pune Chapter, for the outstanding Food Court Project of
Infosys
ISO 9001 (2000
series)
The covered ISO 9001 (2000 series) by Bureau Vertas Quality
International was awarded to the Company for adhering to global standards in
quality.
Fixed Assets
v
Land
v
Buildings
v
Plant and machinery
v
Scaffolding Items
v
Furniture and Fixtures
v
Computers
v
Office Equipments
v
Vehicles
AS PER WEBSITE
Profile
Subject was incorporated in
With establishing subject, Mr. Menon pioneered in
Today, they believe that the Sobha brand is well accepted as the industry
benchmark for world class building techniques and quality standards, and also
enjoys an ever widening reputation for reliability, dependability and honesty.
Their scale of operations has expanded and their revenues reached Rs 6284.36
million in fiscal 2006. Their profit after tax was Rs.884.86 million in fiscal
2006. As of 2006, they have constructed 4 million sq. ft of area.
Strengths – their reasons for success:
A sustained quality edge – international quality is their
lifeline and the entire organization commits itself to it.
Backward Integration – self reliant in numerous important
and critical skills and products necessary for construction. Thus enabling
control on quality, time and cost.
Transparency at all stages - Undeviating business ethics and
adherence to all Govt. norms.
Excellent customer services – The customer is foremost in
subject’s mind. While it excels in building magnificent structures, it never
forgets that, in the process, it is also building relationships.
Functioning as a one-stop solution provider, Subject offers
its skills and state of the art technology right from the conception to
completion of a project. Besides this, their in-house CRM team ensures that
customer support is just a phone call away. They also benefit from their
in-house operations like interiors, metal glazing, the design studio, the
concrete block-making factory and the construction academy.
Their fine understanding of the needs and preferences of
their clients has left them with an ever-growing list of satisfied customers.
Apart from their residential projects, they have also established relationship
for contractual projects with global Corporates such as Infosys Technologies,
Timkin, Taj Hotels, MICO and HP, among others.
Subject is committed to the guiding principles of quality,
timely delivery, fair price and integrity. Apart from being the first ISO 9001
(1994 series) company in its category in
Quality
Commitments
The Sobha Group believes in developing and constructing
aesthetically designed economically viable residential and commercial complexes
of international quality. They believe their buildings should reflect
engineering excellence with a view to providing complete customer satisfaction.
The quality of their products/services should result in complete value for
clients, as well as foster continuous demand for their products.
Apart from being the first ISO 9001 (1994 series) company in its category in
The in-house R&D Department helps the Sobha Group benchmark itself against
world standards in project conception, execution and delivery. This helps to
focus single-mindedly on innovations in construction and to adapt and integrate
them into work processes. Hence total value to the customer is assured at every
stage of the construction.
The Sobha Group is highly regarded for its transparency, fair play, integrity
and honesty. Every Sobhaite is pledged to working towards redefining quality
for all its stakeholders. As a team, they believe that Subject epitomizes
'Passion at Work'.
Backward
integration
Backward integration is what drives the organization’s
turnkey projects. In a turnkey scenario, they bring the expertise of all their
Divisions to focus on every aspect of the project. In simple words, everything
from precision engineering to aesthetic design, from quality metal glazing to
high-class interiors is done inhouse. This allows for stringent focus on
quality control - which in turn gives their customers a fine combination of
precision and aesthetics. The Infosys centers in
They are gearing themselves as they progress, to accepting newer challenges and
having their capabilities extended to deliver over 8 million square feet in the
ensuing year by scaling up their operation.
During the year under review, they have successfully completed many projects
for their prestigious client at
They have commenced the work at
They have commenced the production in the block making Unit located at
Bommansandra Industrial Estate,
This sophisticated and automated unit with no manual handling procedures has
given flawless and absolutely perfect blocks with highest parameters,
reaffirming subject's quality standards and is now become a lofty goals & a
role model for other block making unit manufacturers who supply to other
construction companies.
In addition, they have set up a sophisticated Lab and R&D unit for testing
quality of raw material used in the manufacture of Blocks. The lab is also
equipped to test the finished block's quality as per international standards.
The company has achieved one more successful backward integration, with its
drive for perfection and newer accomplishments.
They have placed order for a sophisticated Kerb plant from
Future Plans
The Sobha Group, with revenues of Rs. 6284.36 million in
fiscal 2006, is today, a unique success story that is still growing. We
anticipate building a presence in varied industries including Hotels &
Resorts, Hypermarkets, Home Stores, and Building Materials. We have also
ventured into retail development with the launch of
The Sobha Global Mall.
The Sobha Global Mall is promoted as the “Shoppertainment” destination of
In the area of Real Estate, the company has plans to be
present in over 12 cities across
More heartening is the fact that, even in the face of such enormous expansion
and change, focus on international quality will remain constant and a tenet
that all Sobhaites will continue to abide by.
Corporate
Social Responsibility
At Sobha social responsibility is first demonstrated within
the organization. From conforming to all legalities to fair pricing, from
keeping up its promise of highest quality products to dedicated services, from
being honest to practicing and promoting high standards of ethics throughout
the company, we believe that Sobha acts as a socially responsible corporate
citizen.
At the same time, it hasn’t overlooked the wealth of opportunities that exist
in society and community at large. Having been sensitive to social issues right
from inception, it takes the act of giving back to society seriously and
continuously.
Recent ones being:
- Sponsorship of Anju Bobby George for the Olympics 2004.
- Sponsorship of PT Usha
- Impetus to Maj. Rathore, silver medal winner of the Olympics.
- The
- Creating a rehabilitation village for Tsunami victims in Kerala.
- Adoption of 20 orphaned children and housed in a Sobha sponsored
orphanage.
- Sobha Hermitage - A unique senior citizens’ home with world class
amenities.
- Providing fully equipped infrastructure for primary school,
dispensary and clinics.
- Welfare of its workers and tradesmen who are not on Sobha’s pay
rolls.
- Workers’ Housing Colony – for facilitating a better quality of life
and dignity
- Regular contributions to worthy causes.
Many other plans are being developed, and true to Sobha’s
determined work style, implementation is just a matter of time.
As a world class company we are proud of our quality and professionalism, but
we take pride in being a community focused organization above all else.
Press Release
Sobha Developers
Faorys into Retail
29th
May 2007
Riding on the demand for home furnishings and furniture,
To begin with Sobha has invested Rs. 170.000 millions on the spring-mattresses
division to be sold under the brand name Sobha Restoplus. Priced upwards of Rs.
10,000, the mattresses are available in 30 variants. The production capacity
for the same stands at 200 mattresses per day. SDL also intends to export mattresses
to European and Japanese markets and is in the process of obtaining the
International sleep Products Association (ISPA) certification for its products.
SDL announces Rs.
850
14th
May 2007
Sobha Developer (SDL) on Sunday announced the launch of Rs. 8500.000
millions integrated town-ship here as the pilot project of the group’s real
estate plans in 26 cities in the country.
The project would be executed in a 71 acre on the Thrissur-Guruvayur
road, SDL Chairman PNC Menon told in a press met. The proposed Sobha city’s 78
per cent area will be utilized for residential apartments spread around 55
acres and the remaining will be used for commercial purposes. The project will
be implemented in two phases. The first phase will have 15 villas with an area
4050 Sq. fts each costing Rs. 20.000 millions and will be completed in 30
months. The price for four-bed room apartments with 3018 Sq. fts. Will be Rs.
10.000 millions and three-bed room apartments with an area of 2167 sq. fts.
will be Rs. 7.800 millions. The cities where SDL plans to develop big real
estate projects included
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction registered
against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or investigation
registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.40.67 |
|
|
1 |
Rs.82.12 |
|
Euro |
1 |
Rs.55.60 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
59 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|