MIRA
INFORM REPORT
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Report Date : |
20.10.2007 |
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.: |
08-18475 |
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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
Exchanges. |
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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 32621720 |
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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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KEY EXECUTIVES
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Name : |
Mr. K Suresh |
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Designation : |
Company Secretary |
SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of Holding |
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(A) Shareholding
of Promoter and Promoter Group 2 |
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(1) Indian |
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(a) Any other (Relatives of Promoters) |
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 |
-- |
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(B) Public
Shareholding 3 |
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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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© Venture Capital Funds |
778 |
0.00 |
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(e) Insurance Companies |
84498 |
0.12 |
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(f) Foreign Institutional |
4260589 |
5.84 |
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(g) Foreign Venture Capital |
2000 |
0.00 |
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(2) Non – Institutions |
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(a) Bodies Corporate |
1283825 |
1.76 |
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(b) Individuals – i. Individual shareholders holding nominal share capital up to
Rs.0.100 million ii. Individual shareholders holding nominal share capital excess of
Rs.0.100 million |
2482467 384356 |
3.41 0.53 |
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© Any Other (specify) |
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i. Clearing Member |
70428 |
0.10 |
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ii. Independent Directors |
228425 |
0.31 |
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iv. Non Resident Indians (repat) |
96112 |
0.13 |
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Grand Total |
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 : |
²
ABN Amro Bank NV ²
Andhra Bank ²
Canara Bank ²
Corporation Bank ²
Dhanalakshmi Bank ²
HSBC Bank ²
ICIC Bank ²
Kotak Mahindra Bank ²
Oriental Bank of Commerce ²
State Bank of ²
Standard Chartered Bank ²
UTI 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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Associates/Subsidiaries : |
²
Sobha
Interiors Division Plot
# 9, Bommasandra, Jigini Link Road,
Industrial Area, Bommasandra, Bangalore, Karnataka, India.
²
Sobha
Glazing & Metal Division Plot
# 10, Bommasandra, Jigini Link Road, Industrial Area Bommasandra, Bangalore,
Karnataka, India. ²
Indeset Group
of Companies
²
P.O ² Sobha Projects & Trade Division ² Sobha Renaissance Information Technology ² S. B. G. Housing Private Limited ² Lotus Manpower Services ² Sobha Space Private Limited ² Oman Builders Private Limited ²
Technology Private Limited ²
Sri Kurumba Trust ²
Royal Interiors Private Limited ²
Indeset Trading and Decoration Services LLC ²
Services and Trade Company ²
Oman Builders Private Limited |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
80000000 |
Equity Shares |
Rs.10/-each |
Rs.800.000 millions |
|
1000000 |
Preference Shares |
Rs.100/-each |
Rs.100.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
72901733 |
Equity Shares |
Rs.10/- each |
Rs.729.000
millions |
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© (of the above, 42,280,960 (Nil) Equity Shares of Rs.1O/- each were allotted as fully paid-up bonus shares by capitalisation of accumulated profit) © (of the above, 583,468 (Nil) Equity Shares of Rs. 1O/- each, were issued as fully paid-up shares under pre IPO placement) © (of the above, 8,896,825 (Nil) Equity Shares of Rs. 1O/- each, were issued as fully paid-up shares through IPO) © Nil (872,843) 7% Redeemable Preference Shares of Rs.1OO/- each fully paid-up |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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 |
729.020 |
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 |
7426.410 |
1069.600 |
356.800 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
8155.430 |
1368.300 |
655.500 |
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LOAN FUNDS |
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1] Secured Loans |
5452.270 |
4208.100 |
2209.000 |
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2] Unsecured Loans |
384.500 |
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 |
16.730 |
0.000 |
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TOTAL |
14014.530 |
5616.130 |
2888.100 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1838.890 |
999.100 |
431.300 |
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Capital work-in-progress |
108.940 |
21.140 |
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
|
2543.960
|
1905.400 |
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Sundry Debtors |
1577.380
|
802.970
|
364.000 |
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Cash & Bank Balances |
683.560
|
449.680
|
65.800 |
|
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Other Current Assets |
0.000
|
0.000
|
0.000 |
|
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Loans & Advances |
11818.170
|
5176.980
|
2237.900 |
|
Total
Current Assets |
17857.060
|
8973.590
|
4573.100 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
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Current Liabilities |
5287.670
|
4010.290
|
2021.300 |
|
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Provisions |
1030.360
|
394.390
|
218.100 |
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Total
Current Liabilities |
6318.030
|
4404.680
|
2239.400 |
|
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Net Current Assets |
11539.030
|
4568.910
|
2333.700 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
14014.530 |
5616.130 |
2888.100 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
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 |
12910.820 |
6923.000 |
5911.600 |
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|
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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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|
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Import : |
|
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|
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Raw Materials - Building Materials, stores,
Components and Spares Parts |
113.240 |
0.500 |
-- |
|
|
Capital Items |
83.930 |
9.170 |
-- |
|
|
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Expenditures : |
|
|
|
|
|
|
Power
& Fuel Cost |
-- |
17.700
|
14.200
|
|
|
Land
Purchase Cost |
1831.970 |
-- |
-- |
|
|
Construction
Expenses |
4952.470 |
-- |
-- |
|
|
Other
Manufacturing Expenses |
1051.470 |
4403.300
|
4668.800
|
|
|
Employee
Cost |
-- |
230.400
|
210.400
|
|
|
Selling
and Administration Expenses |
2248.850 |
630.800
|
205.600
|
|
|
Miscellaneous
Expenses |
-- |
226.200
|
155.500
|
|
|
Interest
& Financial Charges |
480.730 |
219.400
|
109.400
|
|
|
Depreciation
|
243.860 |
128.200
|
62.800
|
|
Total Expenditure |
11044.970 |
5856.000 |
5426.700 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2007 (1st
Quarter) |
|
Sales
Turnover |
|
|
1677.000 |
|
Other
Income |
|
|
15.000 |
|
Total
Income |
|
|
2692.000 |
|
Total
Expenditure |
|
|
2007.000 |
|
Operating
Profit |
|
|
685.000 |
|
Interest |
|
|
101.000 |
|
Gross
Profit |
|
|
584.000 |
|
Depreciation |
|
|
83.000 |
|
Tax |
|
|
93.000 |
|
Reported
PAT |
|
|
408.000 |
|
Dividend
(%) |
|
|
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KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity
Ratio |
1.06
|
3.19 |
2.94 |
|
Long
Term Debt-Equity Ratio |
0.95
|
2.38 |
2.25 |
|
Current
Ratio |
2.27
|
1.63 |
1.45 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
6.66
|
6.60 |
11.14 |
|
Inventory |
3.78
|
2.68 |
3.39 |
|
Debtors |
10.04
|
10.22 |
13.29 |
|
Interest
Cover Ratio |
4.66
|
5.86 |
5.43 |
|
Operating
Profit Margin(%) |
21.93
|
23.71 |
14.50 |
|
Profit
Before Interest And Tax Margin(%) |
19.89
|
21.56 |
13.12 |
|
Cash
Profit Margin(%) |
15.56
|
16.98 |
9.03 |
|
Adjusted
Net Profit Margin(%) |
13.52
|
14.83 |
7.65 |
|
Return
On Capital Employed(%) |
24.25
|
30.31 |
31.78 |
|
Return
On Net Worth(%) |
34.14
|
95.04 |
80.37 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets:
²
Land Own
²
²
Buildings
²
Plant and Machinery
²
Scaffolding items
²
Furniture and Fixtures
²
Computers
²
Office Equipments
²
Vehicles
Directors Reports:
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
residential projects, include presidential apartments, life-style villas, row
houses, super luxury apartments and luxury apartments along with amenities such
as club house, swimming pool and shopping complex.
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 Bangalore aggregating 2583 apartments coveringapproximately 6.91
million sq. ft. of super built up area.
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.
Utilisation of IPO Proceeds:
The proceeds of the IPO were used for procurement of land at
various strategic places, repayment of loans, construction expenses of projects
and for General Corporate Purposes. The unutilised portion thereto has been
invested into bank deposits and Mutual Funds. The summary of utilisation of net
IPO proceeds are as follows:
(Rs. in million)
Particulars A B
a) Towards Land Acquisition 2.343 2.672
b) Development and Construction of Projects 1.425 0.154
c) Repayments of Loans of the Company 1.322 1.587
d) General Corporate Purposes 0.254 0.000
Total 5.344 4.413
MANAGEMENT DISCUSSION AND
ANALYSIS
Global Economic Climate:
World
Economic Climate Indicator remained at a high level In the recent past and Is
clearly above its long-term average. The expectations for the coming six months
have gone up further and points to a robust global economic development. The
following table clearly depicts the growth pattern of world and Asian
economies.
Real GDP growth in % (Past and Future expectation)
2004
2005 2006 2007 2008
World
5.3 4.9 5.2 4.5 5.0
Asia (Excluding
*
Source : CFO Connect June-July 2007)
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
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 Organisation, 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 states 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 weightage 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
modernisation 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 tonne mark. Reflecting the demand for the commodity, capacity
utilisation rose to over 100 per cent - to touch 102 per cent in January 2007 -
with despatches 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 urbanisation, 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
To sum
up - Real Estate Sector:
The
demand for real estate sector are influenced by :
i)
Changing demographics and growth in disposable incomes
ii)
Shift in consumer preferences from rented houses to owned houses
iii) Increasing urbanization
iv) Shrinking Household size
v)
Trend towards more organized as compared to present Unorganised tag
vi)
Huge demand from Service Sector
vii) Growth in occupancy rate in Hotels
Challenges
facing the Indian Real Estate Sector
i)
Fragmented and unorganised market players
ii)
Highly regional oriented
iii) Increasing raw material prices
iv) Tax incentives
v) Shortage of skilled labours
vi)
Interest rates
vii)
Other factors
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
estatescape 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.
Subject has been an ISO 9001 : 2000 certified company since 1998, the first
such company operating in the sector, obtaining the accreditation from
The
Company with its vast experience in undertaking projects for residential and
contractual projects has a unique edge - the ability to offer truly customised
solutions to clients. Sobha's solutions are researched well in advance to
achieve maximum space utilisation and remain timeless in appeal.
A fine understanding of the needs and preferences of its clients has left
Subject 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. Subject 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. Subject 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.
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
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.39.79 |
|
|
1 |
Rs.81.41 |
|
Euro |
1 |
Rs.55.87 |
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 |
|