MIRA
INFORM REPORT
|
Report Date : |
05.07.2007 |
IDENTIFICATION DETAILS
|
Name : |
SRINIVASA SHIPPING AND PROPERTY DEVELOPMENTS LIMITED |
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Registered Office : |
8-2-595/3/6, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
17.10.1994 |
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Com. Reg. No.: |
01-18450 |
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CIN No.: [Company
Identification No.] |
L70100AP1994PLC018540 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDS07368E |
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PAN No.: [Permanent
Account No.] |
AADCS0821K |
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Legal Form : |
Public Limited Liability Company. The Company’s shares are listed on Stock
Exchanges. |
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Line of Business : |
Subject is engaged in Civil Engineering Activities. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 700000 |
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Status : |
Satisfactory |
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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. 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
|
Registered Office : |
8-2-595/3/6, |
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Tel. No.: |
91-40-6637560/ 66507567 |
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Fax No.: |
91-40-66637969 |
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E-Mail : |
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Website : |
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Corporate Office : |
'Challa Mall1, 8th Floor, 11-11 A, |
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Tel. No.: |
91-44-24322601/ 24322602 |
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Fax No.: |
91-44-24348447 |
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Branches : |
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Tel. No.: |
91 - 44 - 25091622 , 25091644, 25091655 |
DIRECTORS
|
Name : |
Mr. Prakash Challa |
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Designation : |
Managing Director |
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Name : |
Mr. E Bhaskar Rao |
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Designation : |
Director |
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Name : |
Mr. Suresh Challa |
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Designation : |
Director |
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Name : |
Mr. Cherukuri Ramakrishna |
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Designation : |
Director |
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Name : |
Mr. S Suryanarayana |
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Designation : |
Director |
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Address : |
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Name : |
Mr. C Jagapati Rao |
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Designation : |
Chairman |
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Name : |
Mr. Sudit K Parekh |
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Designation : |
Director |
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Name : |
Mrs. E Padmaja |
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Designation : |
Director |
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Name : |
Mr. K Akmaluddin Sheriff |
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Designation : |
Director |
KEY EXECUTIVES
|
Audit Committee : |
Sri S. Suryanarayana Chairman Sri K. Akmaluddin Sheriff Member Sri E. Bhaskar Rao Member |
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Name : |
K. M. Satish |
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Designation : |
Vice President |
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Name : |
S. Sundar |
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Designation : |
Chief Financial Officer |
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Name : |
Vishwanath Ganti |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
|
Percentage of
Holding |
|
Promoters |
|
1974890 |
|
Persons acting in concert |
|
3200 |
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Private Corporate Bodies |
|
85891 |
|
Indian Public |
|
1632126 |
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NRIs/ OCB's |
|
281389 |
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Others/Clearing Members |
|
4504 |
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Total |
|
3982000 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in Civil Engineering Activities. |
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Products : |
Contract Receipts from Completed Contracts. |
GENERAL INFORMATION
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No. of Employees : |
54 |
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Bankers : |
Andhra Bank Hyderabad & Chennai |
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Facilities : |
Secured Loans : ICICI Bank Limited : Rs.0.454 millions Unsecured Loans : Inter Corporate Deposits : Rs.14.050 millions |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M/S. Karvy & Company, Chartered Accountants, |
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Address : |
No. 2, |
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Associates/Subsidiaries : |
v Sri Satya Sai Constructions (Partnership Firm) v Sri Satya Sai Constructions (Sole Proprietary Concern) v SSPDL Retreat Private Limited. v
SSPDL Ventures Private Limited. |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15000000 |
Equity Shares |
Rs.10/- each |
Rs.150.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3982000 |
Equity Shares |
Rs.10/- each |
Rs.39.820
millions |
|
|
Convertible Warrants application money |
|
Rs.4.152
millions |
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|
Total |
|
Rs.43.971 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
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1] Share Capital |
39.820 |
30.000 |
30.000 |
|
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2] Convertible Warrants |
4.152 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
139.678 |
16.658 |
18.500 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
183.650 |
46.658 |
48.500 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.454 |
0.778 |
0.000 |
|
|
2] Unsecured Loans |
14.050 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
14.504 |
0.778 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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|
|
|
|
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TOTAL |
198.154 |
47.436 |
48.500 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
10.408 |
2.443 |
1.600 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.507 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
2.145 |
7.505 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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Inventories |
52.661
|
2.054 |
20.500 |
|
|
Sundry Debtors |
8.745
|
0.248 |
0.000 |
|
|
Cash & Bank Balances |
24.848
|
10.936 |
9.300 |
|
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Other Current Assets |
0.047
|
0.007 |
0.000 |
|
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Loans & Advances |
106.254
|
25.845 |
18.900 |
|
Total
Current Assets |
192.555
|
39.090 |
48.700 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
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Current Liabilities |
6.317
|
1.485 |
1.900 |
|
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Provisions |
1.480
|
0.117 |
0.000 |
|
Total
Current Liabilities |
7.797
|
1.602 |
1.900 |
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Net Current Assets |
184.758
|
37.488 |
46.800 |
|
|
|
|
|
|
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MISCELLANEOUS EXPENSES |
0.336 |
0.000 |
0.100 |
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|
|
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TOTAL |
198.154 |
47.436 |
48.500 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
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Sales Turnover |
71.898 |
21.778 |
0.000 |
|
|
Other Income |
3.083 |
0.287 |
1.000 |
|
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Total Income |
74.981 |
22.065 |
1.000 |
|
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|
|
|
|
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Profit/(Loss) Before Tax |
15.846 |
(2.181) |
(3.000) |
|
|
Provision for Taxation |
6.738 |
0.354 |
(1.600) |
|
|
Profit/(Loss) After Tax |
9.108 |
(1.827) |
(1.400) |
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|
|
|
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|
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Expenditures : |
|
|
|
|
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Manufacturing Expenses |
NA |
NA |
1.200 |
|
|
Administrative Expenses |
4.998 |
2.494 |
1.700 |
|
|
Opening stock of completed properties |
0.000 |
19.310 |
NA |
|
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Opening Work in progress |
2.054 |
1.267 |
NA |
|
|
Construction Expenses |
50.677 |
0.787 |
NA |
|
|
Salaries, Wages, Bonus, etc. |
0.934 |
0.127 |
0.100 |
|
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Interest |
0.227 |
0.031 |
0.300 |
|
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Power & Fuel |
NA |
NA |
0.200 |
|
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Depreciation & Amortization |
0.244 |
0.233 |
0.200 |
|
|
Other Expenditure |
NA |
NA |
0.300 |
|
Total Expenditure |
59.135 |
24.247 |
4.000 |
|
SUMMARISED RESULTS
|
PARTICULARS |
|
|
31.03.2007 (Full year) |
|
Sales
Turnover |
|
|
366.100 |
|
Other
Income |
|
|
2.700 |
|
Total
Income |
|
|
368.800 |
|
Total
Expenditure |
|
|
283.300 |
|
Operating
Profit |
|
|
85.500 |
|
Interest |
|
|
14.100 |
|
Gross
Profit |
|
|
71.400 |
|
Depreciation |
|
|
1.300 |
|
Tax |
|
|
20.400 |
|
Reported
PAT |
|
|
46.700 |
|
Dividend
(%) |
|
|
200.000 |
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity
Ratio |
0.07 |
0.01 |
0.03 |
|
Long
Term Debt-Equity Ratio |
0.01 |
0.01 |
0.03 |
|
Current
Ratio |
8.55 |
25.16 |
27.74 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
2.37 |
5.22 |
0.00 |
|
Inventory |
0.70 |
1.71 |
0.00 |
|
Debtors |
4.24 |
193.00 |
0.00 |
|
Interest
Cover Ratio |
80.00 |
0.00 |
(10.33) |
|
Operating
Profit Margin(%) |
84.82 |
(9.84) |
0.00 |
|
Profit
Before Interest And Tax Margin(%) |
83.77 |
(10.88) |
0.00 |
|
Cash
Profit Margin(%) |
48.69 |
(8.29) |
0.00 |
|
Adjusted
Net Profit Margin(%) |
47.64 |
(9.33) |
0.00 |
|
Return
On Capital Employed(%) |
13.27 |
(4.38) |
(6.17) |
|
Return
On Net Worth(%) |
8.05 |
(3.78) |
(3.66) |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.110.50 |
|
Low |
Rs.101.00 |
LOCAL AGENCY FURTHER INFORMATION
BUSINESS OVERVIEW
The Company has performed well during the year 2005-06 as compared to
the previous year. The Company has actively taken up several projects and pursuing
the same. The Company was able to achieve a turnover of Rs.71.898 millions
(including closing work in progress of Alpha City Project). The Company
recorded Rs.19.157 millions towards sales, brokerage & commission and a
profit of Rs.9.109 millions for the year 2005-06.
CURRENT PROJECTS
The construction activity of
Chennai Central, Chennai
The Company has entered into an MOD with Anchor Malls Private Ltd ( part
of the Future (Pantaloon) Group) for construction of commercial space /
shopping mall " Chennai Central". Pursuant to the MOD the Company was
appointed as " Development & Project Management Consultant". The
estimated total project cost is Rs.600 millions of which cost of construction
is Rs.200 millions and the Company will receive Rs.28 millions.
The
The Company has been awarded construction contract from Sri Satya Sai
Constructions, for construction of 180 plus residential villas and a club house
spread over 45 acres at "The Retreat" township, Tarabanahalli,
PROPOSED PROJECTS
The Company has signed a Joint Development Agreement for developing
"
The estimated share in the value of the project to the Company is Rs.30
Millions. Submissions to Chennai Metropolitan Development Authority (CMDA ) for
necessary permissions and clearances are in progress.
Residential Project,
The Company has proposed to develop a residential project in 90 plus
acres of land at Kollur, Hyderabad in a joint venture with US based foreign
investors under Foreign Direct Investment Scheme and acquisition of land is in
process.
Overseas
Subsidiary
The Company is in the process of setting up a wholly owned subsidiary in
This project would give the Company an international presence and would
help in building up a brand image and expertise in executing overseas
contracts.
INDUSTRY STRUCTURE
AND DEVELOPMENTS :
Real estate sector in
OPPORTUNITIES,
THREATS / RISKS AND CONCERNS :
Indian real estate has huge potential demand in almost every sector
especially commercial, residential,, retail, industrial, hospitality,
healthcare etc.
Commercial office space requirement is led by the burgeoning outsourcing
and Information Technology Industry. The leaders of the IT/ITES world have set
up or are setting up their centers in
In residential sector there is housing shortage of 19.4 million units
out of which 6.7 million are in urban
The increase in purchasing power and exposure to organized retail
formats has redefined the consumption pattern. As a result the country has
experienced mushrooming of retail projects across the cities.
The aforementioned developments in real estate market offers the Company
tremendous opportunities in terms of
developing projects specifically catering to the demands of commercial,
residential and retail sector. The Company focuses in these growing markets and
is aggressively pursuing projects in Chennai,
Driven by positive growth in the economy, real estate in
The Company is in negotiations with various foreign investors and
developers for developing projects on joint venture basis.
Already the Company has tied up with US based investors for joint
development of a residential project in
Inspite of various positive aspects, the main concerns of the real
estate industry are existence of Urban Land Ceiling act in some states like
Karnataka and Andhra Pradesh, higher stamp duties, increase in interest rates
of housing finance by banks, which are some deterrents for real estate
development.
Also absence of clear titles to property in some cases, lack of
corporatization, hinders organized dealings and smooth transfer of titles.
Increasing cost / shortage of key construction materials like cement, steel etc
, shortage of skilled labour etc also hinders the project plans and timely
execution of the projects.
FUTURE OUTLOOK :
The infrastructure and real estate markets look very positive with
increased investments "and construction activities happening in
commercial, residential and retail sectors.
Coupled with flow of large investments (domestic and foreign) into
property development market and huge demand for residential and commercial
properties the overall market conditions are conducive for considerable growth
in future.
SEGMENT WISE
PERFORMANCE :
The Company is engaged in construction and development of commercial and
residential properties in metropolitan and Tier II cities. The operations of
Company can be categorized under one segment i,e construction of commercial and
residential properties. The Company has already embarked on development of
commercial properties, shopping malls, IT Parks, residential townships etc.
The Company focuses on quality control in its operations and projects.
The Company has already obtained ISO 9001:2000 Quality Certification. Adhering
to quality norms and standards will help minimizing risks and improve the
efficiency of operations.
Fixed Assets :
v
Building
v
Construction Equipment
v
Office Equipment
v
Furniture & Fixtures
v
Vehicles
Website Details :
Srinivasa Shipping & Property
Development Limited and Sri Satya Sai Consturctions have been builders and
developers of commercial and residential buildings, since 1990. Their
first major project was Park centre in T.Nagar, Chennai. During the
execution of the project they put into place several of the quality standards
and construction management systems which continue to be the cornerstones of
their projects. Today, two of their buildings, Challa Mall and
Whether they are multinational companies, or
individuals buying residential property, they believe in giving their clients
buildings that are built with care and designed by top architects, at a fair
price.
Their clients vouch that their properties are
well planned and make excellent investments. They continue to build on this
reputation brick by brick, bringing their expertise to bear on their several
ongoing projects
Press
Release :
Srinivasa Shipping in pact with Malaysian firm for township project
Nina Varghese
The company has set up two special purpose
vehicles to develop residential complexes in
Chennai , May 8
Srinivasa Shipping and Property Development Ltd has tied up with
Malaysian developer Glomac Bhd for financial and technical support for its next
township project in Andhra Pradesh.
The company plans to bid for the new 600-acre township project announced
by the Andhra Pradesh Government, Mr Prakash Challa, Managing Director,
Srinivasa Shipping and Property Development, said.
He said the company is raising additional capital of about $20 million
through the issue of foreign currency convertible bonds. In the first phase,
the company will receive $10 million.
The company has set up two special purpose vehicles to develop
residential complexes in
Mr Challa said Srinivasa Shipping will develop a 90-acre residential
project, called `The Retreat', estimated to cost Rs 4000 million at Kollur
(about 5 km from the
He said the company is getting into a number of residential projects, as
there is a demand for premium housing.
Srinivasa Shipping has projects worth about Rs 6000 million in Chennai,
The company proposes to develop another space (both residential and
commercial) worth Rs 3300 million in the next three years.
It has set up a 100-per cent subsidiary in
Srinivasa Shipping is coming out with a rights issue in the ratio of 2:1
at Rs 18 per share to raise funds to the tune of Rs 143 million.
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.40.46 |
|
|
1 |
Rs.81.29 |
|
Euro |
1 |
Rs.55.96 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
45 |
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 |
|