MIRA
INFORM REPORT
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Report Date : |
03.05.2007 |
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) : |
31.03.2006 |
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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. 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 Office: |
# 368, 7th Cross,
Wilson Garden, |
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Tel. No.: |
91-80-22295936 / 7 / 8 & 22242172 |
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Mobile No. : |
91-9880178000, 9880003333, 9880005555, 9845307978,
9900113142 |
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Fax No.: |
91-80-22120852 |
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E-Mail : |
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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 |
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Name : |
Mr. R V S Rao |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. K Suresh |
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Designation : |
Company Secretary |
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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Bankers : |
Not Available |
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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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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 |
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Gulf
International Construction & Interiors Company W.L.L.CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
90000000 |
Equity Shares |
Rs. 10/- each |
Rs. 900.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
29869000 |
Equity Shares |
Rs. 10/- each |
Rs. 298.700
Millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
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SHAREHOLDERS FUNDS |
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1] Share Capital |
298.700 |
298.700 |
211.400 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1069.600 |
356.800 |
82.700 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1368.300 |
655.500 |
294.100 |
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LOAN FUNDS |
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1] Secured Loans |
4208.100 |
2209.000 |
534.100 |
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2] Unsecured Loans |
23.000 |
23.600 |
23.600 |
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TOTAL BORROWING |
4231.100 |
2232.600 |
557.700 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
5599.400 |
2888.100 |
851.800 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
999.200 |
431.300 |
189.500 |
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Capital work-in-progress |
21.100 |
122.900 |
0.000 |
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INVESTMENT |
27.000 |
0.200 |
190.200 |
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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 |
2544.000
|
1905.400 |
771.400 |
|
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Sundry Debtors |
803.000
|
364.000 |
317.600 |
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Cash & Bank Balances |
449.700
|
65.800 |
109.400 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
5182.800
|
2237.900 |
1148.800 |
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Total
Current Assets |
8979.500
|
4573.100 |
2347.200 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
4033.000
|
2021.300 |
1784.800 |
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Provisions |
394.400
|
218.100 |
90.300 |
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Total
Current Liabilities |
4427.400
|
2239.400 |
1875.100 |
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Net Current Assets |
4552.100
|
2333.700 |
472.100 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
5599.400 |
2888.100 |
851.800 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
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Sales Turnover |
5966.200 |
4530.600 |
1950.900 |
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Other Income |
956.800 |
1381.000 |
95.000 |
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Total Income |
6923.000 |
5911.600 |
2045.900 |
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Profit/(Loss) Before Tax |
1067.000 |
484.900 |
165.200 |
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Provision for Taxation |
182.200 |
138.400 |
76.400 |
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Profit/(Loss) After Tax |
884.800 |
346.500 |
88.800 |
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Expenditures : |
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Power
& Fuel Cost |
17.700
|
14.200
|
00.000
|
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Other
Manufacturing Expenses |
4403.300
|
4668.800
|
1480.100
|
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Employee
Cost |
230.400
|
210.400
|
00.000
|
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Selling
and Administration Expenses |
630.800
|
205.600
|
326.300
|
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Miscellaneous
Expenses |
226.200
|
155.500
|
00.100
|
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Interest
& Financial Charges |
219.400
|
109.400
|
47.500
|
|
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Depreciation
|
128.200
|
62.800
|
26.700
|
|
Total Expenditure |
5856.000 |
5426.700 |
1880.700 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
31.12.2006 |
|
Type |
|
|
3rd
Qtr |
|
Sales
Turnover |
|
|
2976.000 |
|
Other
Income |
|
|
9.000 |
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Total
Income |
|
|
2985.000 |
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Total
Expenditure |
|
|
2302.000 |
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Operating
Profit |
|
|
683.000 |
|
Interest |
|
|
123.000 |
|
Gross
Profit |
|
|
560.000 |
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Depreciation |
|
|
68.000 |
|
Tax |
|
|
35.000 |
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Reported
PAT |
|
|
457.000 |
Notes
200612
Quarter 3 –
Total Expenditure Includes Increase / (Decrease) in stock in
Inventories Rs (691.00) million Land Cost Expenses Rs 698.00 million
Construction Expenses Rs 1433.00 million Raw Material Consumption RS 197.00
million Production Expenses Rs 52.00 million Staff Cost Rs 163.00 million Other
Administrative Expenses RS 450.00 million Tax indicates Provision for Taxation
(including FBT, Deferred Tax & Wealth Tax) EPS is Basic & Diluted
Status of Investor Complaints for the quarter ended December 31, 2006
Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter 1216 Complaints disposed off during the quarter 1096 Complaints
unresolved at the end of the quarter 120 1. The above financial results have
been audited by the statutory auditors, reviewed by the Audit Committee and
taken on record by the Board of Directors at its meeting held on January 20,
2007. 2. The Company has commenced new activities of Metal & Glazing Works
and Interiors Works w.e.f. April 03, 2006 and hence previous year/period
figures are not comparable. 3. Sales and related income includes: For the
quarter ended December (Rs in million) Real Estate business including charges
collected - 2010 Contractual Business - 987 4. The Company is engaged only in
construction business & there is no separate reportable segments as per
AS-17. 5. In October 2006, the Company issued 583,468 equity shares of face value
of Rs 10 each at a premium of Rs 607 per share as Pre IPO placement. 6. In
November 2006, the Company issued 8,896,825 equity shares of face value of Rs
10 each at a premium of Rs 630 per share as part of Initial Public Offer.
Consequently the paid up equity share capital has increased to Rs 729 million
as on December 31, 2006, including pre-IPO placement. 7. The shares of the
Company have been listed and admitted for trading on the Bombay Stock Exchange
and National Stock Exchange of India w.e.f. December 20, 2006. 8. The details
of utilisation of net IPO proceeds are as under:(Rs in million) Utilisation as
Projected in the Prospectus: Towards Land Acquisition: 2,343 Development &
Construction of: 1,425 Repayment of loans of the Company: 1,322 General Corporate
Purposes: 254 Total: 5,344 Actuals as on December 31, 2006 Towards Land
Acquisition: 830 Development & Construction of: 102 Repayment of loans of
the Company: 570 General Corporate Purposes: 0 Total: 1502 9. Figures of the
previous period have been regrouped wherever necessary.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity
Ratio |
3.19 |
2.94 |
1.46 |
|
Long
Term Debt-Equity Ratio |
2.38 |
2.25 |
1.46 |
|
Current
Ratio |
1.63 |
1.45 |
1.31 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
6.60 |
11.14 |
9.54 |
|
Inventory |
2.68 |
3.39 |
2.35 |
|
Debtors |
10.22 |
13.29 |
5.62 |
|
Interest
Cover Ratio |
5.86 |
5.43 |
4.48 |
|
Operating
Profit Margin(%) |
23.71 |
14.50 |
12.27 |
|
Profit
Before Interest And Tax Margin(%) |
21.56 |
13.12 |
10.90 |
|
Cash
Profit Margin(%) |
16.98 |
9.03 |
5.92 |
|
Adjusted
Net Profit Margin(%) |
14.83 |
7.65 |
4.55 |
|
Return
On Capital Employed(%) |
30.31 |
31.78 |
29.64 |
|
Return
On Net Worth(%) |
95.04 |
80.37 |
30.47 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.887.80/- |
|
Low |
Rs.870.05/- |
LOCAL AGENCY FURTHER INFORMATION
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
Sobha’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, Sobha 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.
Sobha Developers 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 Sobha 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
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. They
anticipate building a presence in varied industries including Hotels &
Resorts, Hypermarkets, Home Stores, and Building Materials. They 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.
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.40.90 |
|
|
1 |
Rs.81.29 |
|
Euro |
1 |
Rs.55.47 |
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 |
|