MIRA INFORM REPORT

 

 

Report Date :

31.10.2007

 

IDENTIFICATION DETAILS

 

Name :

HIRANANDANI CONSTRUCTIONS PRIVATE LIMITED

 

 

Registered Office :

514, Dalmal Towers, Nariman Point, Mumbai – 400 021, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

29.10.1974

 

 

Com. Reg. No.:

11-17872

 

 

CIN No.:

[Company Identification No.]

U45200MH1974PTC017872

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMH06878E

 

 

PAN No.:

[Permanent Account No.]

AAACH0409H

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Subject is a Construction Company

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 40000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Hiranandani Is a well known name in the Mumbai’s realty market. They already made very good fortune as most developers in recent boom. Trade relations are fair. Financially Hiranandani’s are wealthy. Payments are reported as correct and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

 

LOCATIONS

 

Registered Office :

514, Dalmal Towers, Nariman Point, Mumbai – 400 021, Maharashtra, India

Tel. No.:

91-22-22876060 / 22876061

Fax No.:

91-22-22832010

E-Mail :

info@hiranandani.net

Website :

http://www.hiranandani.com

 

 

Corporate Office :

Olympia, Central Avenue, Hiranandani Business Park, Powai, Mumbai – 400 076, Maharashtra, India

Tel. No.:

91-22-25706441/ 25706466

Fax No.:

91-22-25706455

Area :

info@hiranandani.com

 

 

DIRECTORS

 

Name :

Mr. Niranjan Hiranandani

Designation :

Director

Address :

514, Dalmal Towers, Nariman Point, Mumbai – 400 021, Maharashtra, India

Date of Birth/Age :

08.03.1950

Date of Appointment :

29.10.1974

 

 

Name :

Mr. Surendra Hiranandani

Designation :

Director

Address :

Neptune Court, 60, L.J. Marg, Mumbai – 400 006

Date of Birth/Age :

30.12.1954

Date of Appointment :

29.10.1974

 

 

Name :

Mr. L H Hiranandani

Designation :

Director

Address :

5, Kanta, Little Gibbs Road, Mumbai – 400 006

Date of Birth/Age :

17.09.1917

Date of Appointment :

01.12.1987

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders                                                           

No. of Shares

 

Equity

Shares

Preference

Shares

Mr. Niranjan L Hiranandani

17000

1000

Mr. Surendra L Hiranandani

17000

1000

Mr. Kamal N Hiranandani

15500

1000

Mr. Darshan N Hiranandani

1100

200

Mrs. Preeti S Hiranandani

15500

1000

Mr. N L Hiranandani (H. U.F.)

13700

500

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is a Construction Company

 

 

GENERAL INFORMATION

 

Bankers :
  • Indusind Bank Limited (Bandra)
  • Mashreq Bank
  • ICICI (Powai)
  • ICICI
  • ICICI (Nariman Point)
  • SBI Commercial and International Bank Limited – Hiranandani Estate
  • SBI Commercial and International Bank Limited – Nariman Point, Mumbai

 

Auditors :

 

Name :

S H Patrawala and Company

Chartered Accountants

Mumbai

Address :

513, Dalmal Towers, 2111, FPJ Marg, Nariman Point, Mumbai – 400 021, Maharashtra, India

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

94700

Equity Shares

Rs. 100 each

Rs. 9.470 Millions

5300

Preference Shares

Rs. 100 each

Rs. 0.530 Million

 

Total

 

Rs. 10.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

94700

Equity Shares

Rs. 100 each

Rs. 9.470 Millions

5300

Preference Shares

Rs. 100 each

Rs. 0.530 Million

 

Total

 

Rs. 10.000 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

 

 

 

1] Share Capital

10.000

10.000

10.000

2] Share Application Money

0.000

0.000

----

3] Reserves & Surplus

0.005

0.005

0.005

4] (Accumulated Losses)

(84.631)

(115.513)

20.003

NETWORTH

(74.626)

(105.508)

(9.998)

LOAN FUNDS

                  

 

 

1] Secured Loans

370.000

50.000

338.596

2] Unsecured Loans

953.099

843.962

0.028

TOTAL BORROWING

1323.099

893.962

338.624

DEFERRED TAX LIABILITIES

0.000

0.000

 

 

 

 

 

TOTAL

1248.473

788.454

328.628

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

2.169

2.385

2.519

Capital work-in-progress

0.000

0.000

509.579

 

 

 

 

INVESTMENT

0.358

0.608

33.438

DEFERREX TAX ASSETS

0.000

0.000

-----

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

0.000

1.062

1062.500

 

Sundry Debtors

1.857

10.350

10350.439

 

Cash & Bank Balances

3.705

74.524

74524.169

 

Other Current Assets

629.150

356.453

356453.495

 

Loans & Advances

616.722

351.356

351356.773

Total Current Assets
1251.434

793.745

213.631

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors

5.490

7.600

      429.755

 

Advances

0.000

0.000

0.000

 

Bank Overdraft

0.000

0.000

0.000

 

Provisions

0.017

0.703

0.805

Total Current Liabilities
5.507

8.303

430.560

Net Current Assets
1245.927

785.442

(216.929)

 

 

 

 

MISCELLANEOUS EXPENSES

0.019

0.019

0.000

PROFIT

 

 

0.000

 

 

 

 

TOTAL

1248.473

788.454

328.626

                                                      

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

 

 

31.03.2004

Sales Turnover [including other income]

 

 

72.972

 

 

 

 

Profit/(Loss) Before Tax

 

 

(3.527)

Provision for Taxation

 

 

 

Profit/(Loss) After Tax

 

 

(3.527)

 

 

 

 

Total Expenditure

 

 

1.499

 

           

KEY RATIOS

 

PARTICULARS

 

 

31.03.2006

31.03.2005

31.03.2004

PAT / Total Income

(%)
N A

N A

(4.833)

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
N A

N A

(4.833)

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
N A

N A

(1.63)

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
N A

N A

(35.27)

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
(0.07)

(0.07)

(76.93)

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
227.24

95.58

0.49

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Assets

 

WEBSITE DETAILS ATTACHED:

 

Width of Vision, Depth of Experience

 

They pride themselves in pioneering the concept of integrated townships in India. Their efforts serve to create self sufficient communities out of pockets of land and provide their customers the highest lifestyle standards. They depend on them for their expertise, foresight, skill, and attention to detail. In their projects, your school, office, garden, shops and restaurants will all be just a pleasant walk away. Their commitment to employing environmentally friendly processes and ensuring that their communities are lush and verdant will give you the chance to enjoy a breath of a fresh air right at home.

 

Their activities branch out to real estate development, construction, facility management, infrastructure development, hospitals, schools, retail, hospitality and entertainment. Their team is real estate development team is 1,300 strong, including 900 engineers and technical staff. They also employ over 1,000 personnel in their hospitals, retail outlets, hotels, schools and entertainment complexes. Enjoy peace of mind amidst stunning architecture and vibrant greenery in your home, with Hiranandani Constructions.

 

Quality is an Attitude


Their projects are distinguished by their high quality and the unique manner in which they create an ideal living and working environment. To accomplish this, they pay acute attention to landscaping, parks, shopping and recreational facilities. These features, in turn, lead to a high demand for subject’s properties and assist purchasers secure mortgage finance quickly and easily.


A History of Firsts


The company has always been aggressive in pushing the boundaries in property development and has several firsts to its name. These include:

 

v      The mixed-use communities at Powai (Mumbai) and Thane (near Mumbai)

v      Introduction of copper plumbing in India

v      Introduction of the use of Fly Ash in concrete in India

v      100% sewage recycling and rain water harvesting in all properties as early as 1989

v      Pioneered the introduction of indigenous species of trees and shrubs into the fabis of urban communities

v      Subject is the main developer for 23 Marina, Dubai - the world’s tallest residential building, boasting some 57 swimming pools throughout its 380 meter height.

v      Subject is developing the Western Mall in Mumbai, the nation’s first flyover mall.

 

Fulfilling Responsibility to Community


Mr. Niranjan Hiranandani and Mr. Surendra Hiranandani, the company’s co-founders, have always understood that the Subject has an important role to play in the community it serves and have personally assumed a leadership role in many community, government and industry organizations. Some of these include:

v      Drafting the State Policy for slum rehabilitation in Mumbai designed to improve the well being of over 6 million slum inhabitants.

v      Acting as trustees for the creation of Nathdwara Township as a heritage destination.

v      Serving on the board of the Housing and Urban Development Corporation (HUDCO), an organization which distributes $3 billion per annum to help fund the building of housing for low income families.

v      Acting as an advisor to the government of India on housing and habitat policy for over a decade.

v      Chairman, Development and Environment Committee of the Indian Merchants Chamber.

v      President, Real Estate of the Federation of Indian Chambers of Commerce and Industry (FICCI).

v      Honoured by the Concrete Institute of America

 

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No 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. 39.32

UK Pound

1

Rs. 81.82

Euro

1

Rs. 56.90

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--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

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

54

 

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.

 

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

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions