MIRA
INFORM REPORT
|
Report Date : |
13.02.2008 |
IDENTIFICATION
DETAILS
|
Name : |
SOBHA DEVELOPERS LIMITED |
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Registered Office : |
E-106, Sunrise Chambers, 22 Ulsoor Road, Bangalore - 560
042, Karnataka |
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Country : |
India |
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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 : |
A Closely Held Public Limited Liability Company |
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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, Sunrise Chambers, 22 Ulsoor Road, Bangalore - 560
042, Karnataka, India |
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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, Bangalore - 560 027, Karnataka, India |
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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, ITPL Road , Kundalahalli
(Brookefields), Bangalore - 560 037, Karnataka, India |
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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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Website : |
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Pune
Office : |
GERA LEGEND, 4th Floor, North Koregaon Park Main Road, Pune - 411 001, |
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Tel. No.: |
91-20-2613 6177, 2613 7292 |
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Chennai
Office : |
Mahendra City, Paranur, Veerapuram Post, Chingelpet,
Chennai - 603 002, |
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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 : |
Mr. N.S. Raghavan |
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Designation : |
Independent Director |
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Name : |
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Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. K Suresh |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDING
PATTERN
As on 31.12.2007
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(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 |
0.00 |
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(B) Public
Shareholding 3 |
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(1) Institutions |
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(a) Mutual Funds / UTI |
277860 |
0.38 |
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(b) Financial Institutions / Banks |
554069 |
0.76 |
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© Venture Capital Funds |
604 |
0.00 |
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(e) Insurance Companies |
1759 |
0.00 |
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(f) Foreign Institutional |
5397106 |
7.40 |
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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 |
1201549 |
1.65 |
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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 |
1535799 146651 |
2.11 0.20 |
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© Any Other (specify) |
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i. Clearing Member |
81656 |
0.11 |
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ii. Independent Directors |
187133 |
0.26 |
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iv. Non Resident Indians (repat) |
94156 |
0.13 |
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|
|
|
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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 : |
·
ABN Amro Bank NV ·
Andhra Bank ·
Canara Bank ·
Corporation Bank ·
Dhanalakshmi Bank ·
HSBC Bank ·
ICIC Bank ·
Kotak Mahindra Bank ·
Oriental Bank of Commerce ·
State Bank of India ·
Standard Chartered Bank ·
UTI Bank |
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Facilities : |
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Banking
Relations : |
- |
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Auditors : |
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Name : |
S Janardhan and Associates Chartered Accountants |
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Associates/Subsidiaries : |
Plot
# 9, Bommasandra, Jigini Link Road,
Industrial Area, Bommasandra, Bangalore, Karnataka, India.
Plot
# 10, Bommasandra, Jigini Link Road, Industrial Area Bommasandra, Bangalore,
Karnataka, India.
P.O.BOX
# 52687, Dubai, UAE
P.O
BOX #10345, C.R. #24462, DOHA, QATAR
|
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
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|
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80000000 |
Equity Shares |
Rs.10/-each |
Rs.800.000 millions |
|
1000000 |
Preference Shares |
Rs.100/-each |
Rs.100.000 millions |
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Total |
|
Rs.900.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
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|
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|
72901733 |
Equity Shares |
Rs.10/- each |
Rs.729.000
millions |
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Note:
- (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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|
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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 |
|
|
Loans & Advances |
11818.170
|
5176.980
|
2237.900 |
|
Total
Current Assets |
17857.060
|
8973.590
|
4573.100 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
5287.670
|
4010.290
|
2021.300 |
|
|
Provisions |
1030.360
|
394.390
|
218.100 |
|
Total
Current Liabilities |
6318.030
|
4404.680
|
2239.400 |
|
|
Net Current Assets |
11539.030
|
4568.910
|
2333.700 |
|
|
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|
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
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|
|
|
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TOTAL |
14014.530 |
5616.130 |
2888.100 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
11864.650 |
5966.200 |
4530.600 |
|
|
Other Income |
1046.170 |
956.800 |
1381.000 |
|
|
Total Income |
12910.820 |
6923.000 |
5911.600 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
1865.850 |
1067.000 |
484.900 |
|
|
Provision for Taxation |
250.610 |
182.200 |
138.400 |
|
|
Profit/(Loss) After Tax |
1615.240 |
884.800 |
346.500 |
|
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|
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Export Value |
N.A. |
N.A. |
N.A. |
|
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Imports : |
|
|
|
|
|
|
Raw Materials |
113.240 |
0.500 |
N.A. |
|
|
Capital Goods |
83.930 |
9.170 |
N.A. |
|
|
Others |
0.000 |
0.000 |
N.A. |
|
Total Imports |
197.170 |
9.670 |
N.A. |
|
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Expenditures : |
|
|
|
|
|
|
Power
& Fuel Cost |
0.000 |
17.700
|
14.200
|
|
|
Land
Purchase Cost |
1831.970 |
0.000 |
0.000 |
|
|
Construction
Expenses |
4952.470 |
0.000 |
0.000 |
|
|
Other
Manufacturing Expenses |
1051.470 |
4403.300
|
4668.800
|
|
|
Employee
Cost |
0.000 |
230.400
|
210.400
|
|
|
Selling
and Administration Expenses |
2248.850 |
630.800
|
205.600
|
|
|
Miscellaneous
Expenses |
0.000 |
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 |
30.09.2007 2nd
Quarter |
31.12.2007 3rd
Quarter |
|
|
|
|
|
|
Sales Turnover |
2677.000 |
3254.000 |
3553.000 |
|
Other Income |
15.000 |
76.000 |
7.000 |
|
Total Income |
2692.000 |
3330.000 |
3560.000 |
|
Total Expenditure |
2007.000 |
2429.000 |
2595.000 |
|
Operating Profit |
685.000 |
901.000 |
965.000 |
|
Interest |
101.000 |
133.000 |
171.000 |
|
Gross Profit |
584.000 |
768.000 |
794.000 |
|
Depreciation |
83.000 |
88.000 |
87.000 |
|
Tax |
93.000 |
112.000 |
106.000 |
|
Reported PAT |
408.000 |
562.000 |
611.000 |
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
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 Bangalore. The
projects executed by the Company on a contractual basis are located in the
states of Karnataka, Kerala, Andhra Pradesh, Orissa, Tamil Nadu, Punjab,
Rajasthan and Maharashtra.
The
Company is one of the leading real estate development and construction
companies in India, which focuses on residential and contractual projects.
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
covering approximately 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 India, covering approximately 10.02
million sq. ft. of super built up area.
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.
Indian Economy - Overview:
India's
economy is on the fulcrum of an ever increasing growth curve. With positive indicators
such as a stable 8-9 percent annual growth, rising foreign exchange reserves of
close to US$ 180 billion, a booming capital market with the popular 'Sensex'
index almost touching the majestic 15,000 mark, the Government estimating FDI
flow of US$ 12 billion in this fiscal, and a more than 35 per cent surge in
exports, it is easy to understand why India is a leading destination for
foreign investment.
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.
INDIA - MACRO
ECONOMIC OUTLOOK:
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, India is definitely one of the hottest destinations in the world. The contribution of the IT and IT enabled services industry to the overall GDP is very visible, not just through numbers but improvement In standard of living among the middle class. However concern over Inflation to be contained close to 5.0 per cent during 2007-08 remains a big task for the policy makers.
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.
India's
construction equipment sector is growing at a scorching pace of over 30 per
cent annually-driven by huge investments by both the Government and the private
sector in infrastructure development.
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 India as a star performer over the period 2006 to
2020, among 34 developed and developing nations. Moving forward, it will be a
matter of capitalizing on and exploiting this potential to strategize, build
and grow.
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 orders 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 Bangalore, Chennai, Mumbai and Hyderabad. IT companies will need 150 million sq. ft. of office space by 2010, an inviting prospect for property developers. It is to be noted that this requirement for office space fuels the demand for residential space in a big manner.
To sum up - Real
Estate Sector:
- The demand for real estate sector are
influenced by :
- Changing demographics and growth in
disposable incomes
- Shift in consumer preferences from
rented houses to owned houses
- Increasing urbanization
- Shrinking Household size
- Trend towards more organized as
compared to present Unorganised tag
- Huge demand from Service Sector
- Growth in occupancy rate in
Hotels
Challenges
facing the Indian Real Estate Sector
- Fragmented and unorganised market players
- Highly regional oriented
- Increasing raw material prices
- Tax incentives
- Shortage of skilled labours
- Interest rates
- 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 Bangalore, but also much of the country. In an industry
where outsourcing is more a norm than an exception, the Company with its fully
backward integrated operation has grown synonymous with quality and trust. In
its quest to keep up with the ever-evolving international standard, the Company
has continually set a benchmark for the industry itself. The Company's unique
backward integration model ensures execution of projects with international
quality and timely delivery at competitive cost.
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
India.
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.
Sobha
Construction Academy is a unique initiative by the Company to develop skill
sets and create committed workmen for the industry. The main focus of the
Academy is to develop a highly trained workforce for the construction industry.
Components of the Academy include hands-on technical skills training in the
construction and maintenance trades, applied academics associated with the
construction trades, employability skills and life skills. Trainees from
economically weak backgrounds are given special preference, since this
endeavour is as much about providing opportunities for uplifiment as it is
about getting trained workmen for their projects. On successful completion of
the course, trainees are issued a certificate of merit.
Fixed Assets:
- Land Own
- Leasehold
Land
- Buildings
- Plant and
Machinery
- Scaffolding
items
- Furniture and
Fixtures
- Computers
- Office
Equipments
- Vehicles
AS PER WEBSITE
- Profile
Subject was incorporated in Bangalore in 1995 by Mr P N C Menon
who came to India with rich experience in fine interior decoration services in
Muscat. In the Gulf, Mr Menon's Service & Trade Group had built up a wide
reputation for its excellent work in palaces, villas, large hotels, resorts,
etc. His focus on very high quality enabled him to achieve global standards and
earned him a recognition and respect as one of the finest, quality focused
entrepreneur. Prestigious customers included the Royalty.
With establishing subject, Mr Menon pioneered in India the concept of truly
international quality in construction industry. Here again, the such superior standards
set by him ensured consistent international quality to customers which soon
became the industry benchmark for international quality. Having built
innumerable residential, contractual and commercial projects, Sobha enjoys
excellent brand presence in Bangalore.
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 India, they have also been awarded the
ISO 9001 (2000 series) for adhering to global standards in quality.
- 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
India, they have also been awarded the ISO 9001 (2000 series) for adhering to
global standards in quality. The company has been assigned the CRISIL rating of
DA1.
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 Bangalore, Mysore and several
other cities are fine examples of the Group's synergy in turnkey construction.
- 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
Bangalore where people across the social spectrum will be entertained while
shopping. With a shopping complex and amusement park, 192 room plush hotel,
convention center, multiplex and smart offices and an Olympic Size ice skating
rink, The Sobha Global Mall will be able to fulfill every single customer need
under one roof. The mall will have 4500 car parking bays in addition to two
wheeler parking and outdoor parking; a discotheque that will accommodate over
1,000 people; plus a variety of other special facilities. Two 5-star hotels in Bangalore
and a resort hotel in Cochin are also part of the plans.
In the area of Real Estate, the company has plans to be present in over 12
cities across India. Mysore, Mangalore, Cochin, Hyderabad, Pune, Chennai,
Chandigarh, Coimbatore and Delhi are the likely cities where the brand will be
present. With plans to be a truly multi-faceted organization, Sobha’s amazing
growth trajectory is clear to see.
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, India Prisons Service,
Interpol, etc.
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.39.65 |
|
UK Pound |
1 |
Rs.77.41 |
|
Euro |
1 |
Rs.57.62 |
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. |
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 |
|