MIRA
INFORM REPORT
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Report Date : |
11.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
SATRA PROPERTIES INDIA LIMITED |
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Formerly Known As : |
EXPRESS LEASING LIMITED |
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Registered Office : |
Dev Plaza, S V Road, Near Shoppers Stop, Andheri (West), Mumbai – 400
058, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
30.05.1983 |
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Com. Reg. No.: |
30083 |
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CIN No.: [Company
Identification No.] |
L65910MH1983PLC030083 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUME04598G |
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PAN No.: [Permanent
Account No.] |
AAACE1835C |
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Legal Form : |
Public Limited Liability Company. Company’s shares are listed on the
stock exchange. |
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Line of Business : |
Development of Commercial, Retail, Hotel and Residential
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 1030000 |
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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. Directors are reported
as experienced and respectable businessmen. Trade relations are fair.
Business is active. Payments are reported as 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 : |
Dev Plaza, S V Road, Near Shoppers Stop, Andheri (West), Mumbai – 400
058, Maharashtra, India |
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Tel. No.: |
91-22-26719999 |
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Fax No.: |
91-22-26203999 |
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E-Mail : |
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Website : |
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Corporate Office: |
Dev Plaza, 2nd Floor, Opposite Andheri Fire Station, S V
Road, Andheri (West), Mumbai – 400 058, Maharashtra, India |
DIRECTORS
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Name : |
Mr. Praful N Satra |
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Designation : |
Managing Director |
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Name : |
Mr. Rajan P Shah |
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Designation : |
Whole Time Director |
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Name : |
Mr. Vinayak D Khadilkar |
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Designation : |
Additional Director |
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Name : |
Mr, K Jawahar Mahi |
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Designation : |
Additional Director |
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Name : |
Dr. Vijay N Satra |
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Designation : |
Additional Director |
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Name : |
Mr. Chandrakant M Kothari |
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Designation : |
Director |
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Name : |
Mr. Vidyadhar D Khadilkar |
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Designation : |
Additional Director |
KEY EXECUTIVES
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Name : |
Mrs. Minaxi P Satra |
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Designation : |
Chairman |
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Name : |
Mr. Vicky M Kundaliya |
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Designation : |
Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Development of Commercial, Retail, Hotel and Residential
Properties. |
GENERAL
INFORMATION
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Bankers : |
· Indian Bank · Union Bank of India · The Cosmos Co-operative Bank Limited |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Bhuta Shah and Company Chartered Accountants |
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Address : |
901/ 902, Regent Chambers, Above status Restaurant, Nariman point,
Mumbai – 400 021, Maharashtra, India |
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Tel. No.: |
91-22-22832626 /2929 |
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Fax No.: |
91-22-2283 2727 |
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E-Mail : |
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Associates/Subsidiaries : |
· Satra Property Developers Private Limited · Satra Infrastructure Development Private Limited · Om Housing Company Private Limited · Shravan Developers Private Limited · Prime Multi Tiles Trading Private Limited · Savla Realtors and Developers Private Limited ·
Alif International Private Limited. · Anupam Stock Broking Private Limited (Formerly known as Cydal Investments Private Limited) · Prime Down Town Estates Private Limited (Formerly known as Bharat Shah Estates Private Limited) · BKC Developers Private Limited (Formerly known as Swiftank Systems (India) Private Limited) · Legend Tradevest Private Limited · Prime Developers · Sun Beam Builders and Developers · Rushabh Developers · Henry Hill International · Henry Hill · Sweety Developers. · Trinity Plast · Prime Bond Industries · Sagar Optics · Sweety NX · Sweety Fabrics · Passion Films · Sayonara and Satra Trading Company · Jamwai Associates · Sangam Capital Services |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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32000000 |
Equity shares |
Rs. 10/- each |
Rs.320.000 millions |
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8000000 |
8% Cumulative Redeemable Preference Shares |
Rs. 10/- each |
Rs. 80.000 millions |
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Total |
Rs.400.000
millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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2918750 |
Equity shares |
Rs. 10/-
each |
Rs.29.187
millions |
Note:
(1) Of the above 177250
shares were issued on preferential allotment basis at a premium of Rs. 790/-
per share during the Financial Year 2006-2007.
(2) Of the above
241500 shares were issued on preferential allotment basis at a premium of Rs.
85/- per share during the Financial Year 2005-2006.
(3) Out of
aggregate sum raised during the Financial Year 2006-2007 by way of issue of
preferential equity share,
including share
premium amounting to Rs. 140.000 millions, sum of Rs. 123.600 millions has been
utilised for acquisiton of land at Calicut forming part of Closing
Work-in-Progress and Rs.18.200 millions has been invested on account of Capital
with partnership firm M/s. Sun Beam Builders and Developers aggregating to sum
of Rs. 141.800 millions.
(4) Out of
aggregate sum raised during the Financial Year 2005-2006 by way of issue of
preferential equity share,
including share
premium amounting to Rs. 20.500 millions, sum of Rs. 22.900 millions has been
utilised for acquisiton of Development Right for Khar Project aggregating to
sum of Rs. 22.900 millions.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
29.187 |
27.415 |
25.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
226.478 |
33.796 |
[2.100] |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
255.665 |
61.211 |
22.900 |
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LOAN FUNDS |
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1] Secured Loans |
421.494 |
0.000 |
0.000 |
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2] Unsecured Loans |
383.558 |
244.086 |
0.000 |
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TOTAL BORROWING |
805.052 |
244.086 |
0.000 |
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DEFERRED TAX LIABILITIES |
0.414 |
0.000 |
0.000 |
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TOTAL |
1061.131 |
305.297 |
22.900 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
25.437 |
0.876 |
0.000 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
47.756 |
0.000 |
20.300 |
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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 |
495.494
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220.931 |
0.000 |
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Sundry Debtors |
526.157
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100.985 |
0.000 |
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Cash & Bank Balances |
24.452
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10.464 |
0.600 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
667.421
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159.733 |
2.400 |
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Total
Current Assets |
1713.524
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492.113 |
3.000 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
727.491
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188.745 |
0.400 |
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Provisions |
0.000
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0.000 |
0.000 |
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Total
Current Liabilities |
727.491
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188.745 |
0.400 |
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Net Current Assets |
986.033
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303.368 |
2.600 |
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MISCELLANEOUS EXPENSES |
1.905 |
1.053 |
0.000 |
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TOTAL |
1061.131 |
305.297 |
22.900 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
661.878 |
219.348 |
4.400 |
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Other Income |
2.591 |
0.080 |
0.000 |
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Total Income |
664.469 |
219.428 |
4.400 |
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Profit/(Loss) Before Tax |
97.936 |
35.105 |
1.200 |
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Provision for Taxation |
35.698 |
12.186 |
0.400 |
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Profit/(Loss) After Tax |
62.238 |
22.919 |
0.800 |
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Expenditures : |
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Construction & Purchase Cost |
535.719 |
182.685 |
NA |
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Administration Expenses |
25.055 |
1.614 |
NA |
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Financial Expenses |
2.872 |
0.021 |
NA |
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Raw Materials Consumed |
NA |
NA |
NA |
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Excise Duty |
NA |
NA |
NA |
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Power & Fuel |
NA |
NA |
NA |
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Other Manufacturing Expenses |
NA |
NA |
NA |
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Employee Cost |
NA |
NA |
0.100 |
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Selling & Administration Expenses |
NA |
NA |
0.400 |
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Miscellaneous Expenses |
NA |
NA |
2.700 |
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Interest & Financial Charges |
NA |
NA |
NA |
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Depreciation & Amortization |
2.886 |
0.002 |
NA |
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Total Expenditure |
566.532 |
184.323 |
3.200 |
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QUARTERLY RESULTS
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Year |
30.09.2007 |
30.06.2007 |
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Type |
2nd
Quarter |
1st
Quarter |
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Sales Turnover |
620.700 |
275.100 |
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Other Income |
24.800 |
0.000 |
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Total Income |
645.500 |
275.100 |
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Total Expenditure |
435.200 |
193.100 |
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Operating Profit |
210.300 |
82.000 |
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Interest |
31.300 |
1.100 |
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Gross Profit |
179.000 |
80.900 |
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Depreciation |
2.400 |
1.200 |
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Tax |
58.600 |
31.000 |
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Reported PAT |
118.000 |
49.200 |
KEY RATIOS
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Year |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt-Equity Ratio |
3.31 |
2.90 |
0.00 |
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Long Term Debt-Equity Ratio |
3.31 |
2.90 |
0.00 |
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Current Ratio |
2.41 |
2.62 |
3.52 |
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TURNOVER RATIOS |
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Fixed Assets |
46.78 |
230.11 |
1.96 |
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Inventory |
1.85 |
1.98 |
0.00 |
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Debtors |
2.11 |
4.33 |
0.00 |
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Interest Cover Ratio |
2.73 |
4.82 |
0.00 |
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Operating Profit Margin(%) |
23.73 |
20.49 |
27.27 |
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Profit Before Interest And Tax Margin(%) |
23.30 |
20.49 |
27.27 |
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Cash Profit Margin(%) |
9.84 |
10.48 |
18.18 |
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Adjusted Net Profit Margin(%) |
9.40 |
10.48 |
18.18 |
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Return On Capital Employed(%) |
22.62 |
27.21 |
5.10 |
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Return On Net Worth(%) |
39.26 |
53.13 |
3.40 |
LOCAL AGENCY
FURTHER INFORMATION
DIRECTOR REPORTS:
(A)CHANGE OF REGISTERED OFFICE OF THE COMPANY:
During the year under review, the
company has changed the registered office from "7, Hira Kunj, Near Anupam
Cinema, Aarey Road, Goregaon (E), Mumbai 400 063" to "Dev Plaza, 2nd
Floor, Opp. Andheri Fire Station, S.V. Road, Andheri (W), Mumbai 400 058."
with effect from 1st August, 2006.
(B) CHANGE OF AUTHORISED CAPITAL OF THE
COMPANY:
During the year under review, the
Company has increased the Authorised Capital of the Company from Rs.150.000
millions to Rs. 200.000 millions with effects from 22nd January, 2007 and from
Rs.200.000 millions to Rs. 400.000 millions with effect from 20th March,
2007.
OPERATIONS:
The Company has achieved a
substantial growth in the real estate business and registered a Sales Turnover
of Rs. 661.900 millions as compared to Sales Turnover of last year's of
Rs.218.600 millions which is more than 200% growth and the Directors are
confident of substantial growth in future.
During the year under review, the Company has undertaken 3 New Projects at
various locations in India i.e. "CALICUT GALLERIA", situated at
Calicut, "SATRA PALACE" at Cochin and of "SATRA CORPORATE
PARK", situated at Kalina, Santacruz (E), Mumbai.
The Details of the Major Ongoing
Projects are as follows:
(1) DREAMS THE MALL AT BORIVALI:
One of the largest shopping mall
in the suburbs of Mumbai having the potential to generate their share in Gross
saleable area to the tune of 0.20 million sq. ft (approx) and proposed to
encompass Night Clubs, Multiplexes, Specialty Food Restaurants, 3 Level Anchor
shops and much more. The same is targeted to be completed by the end of year
2007.
(2) SATRA RESIDENCY AT KHAR:
One of the 1st and
tallest tower in the vicinity of Khar (W), Mumbai with 13 storey to have Stilt
plus 2 podium with all the technological, modern, architectural design,
amenities for entertainment and leisure. The majority work of the said project
will be completed by the midst of the current year.
(3) PRIME MALL DOWNTOWN AT HUGHES ROAD:
One of the best shopping mall in
the vicinity of South Mumbai, a Financial Hub is a joint development project
with Multiplex having a Gross saleable space of 0.06 Million Sq. ft. (approx).
The said project is expected to be completed by the year 2008.
Further, The Company is under process of acquiring some more projects and the
same are at an advanced stage of negotiations.
MAJOR EVENTS DURING THE YEAR:
(A) AMALGAMATION
The Scheme of Amalgamation between
the Company and OM HOUSING COMPANY PRIVATE LIMITED is almost at the completion
stage and the Company is under process of getting the Final Orders from the
Honorable High Court, Mumbai.
(B) STOCKSPLIT:
The Board of Directors have
approved the Stock Split in its Meeting on 27th April, 2007 i.e. Sub-dividing the
each Equity Share of Face Value of Rs.10/- (Rupees Ten only) each in Five
Equity shares of Face Value of Rs.2/- (Rupees Two only) each and has taken the
consent of Members byway of Postal Ballot process.
MANAGEMENT DISCUSSION AND ANALYSIS
The Company currently holds land
reserves of approximately 41 lacs sq feet, which includes 5 Residential
Projects of 14 Lacs Sq Ft, 7 Shopping Malls of 13 Lacs Sq ft., 4 Commercial
Offices of 11 Lacs Sq Ft and 2 Hotel projects of 3 Lacs Scl Ft.
COMPARISION OF FISCAL 2007 and
2006
The Company's performance has been
the blending of various factors, which has attributed to the positive results
during the fiscal year 2007:
· Positive perception of Indian Real Estate and Stock Market.
· Favorable General economic and demographic conditions in India.
·
Their ability to identify suitable projects and execute
them in a timely and cost effective manner.
TOTAL INCOME
Total Income of the Company has increased by 203% to Rs. 664.470 millions for the fiscal year 2007 from Rs. 219.429 millions for the fiscal year 2006.
Whereas Income from Sales and services increased by 203% to Rs. 661.879
millions for the fiscal year 2007 from Rs. 218.646 millions for the fiscal year
2006, Income from construction of projects increased by 110% to Rs.411.448
millions for the fiscal year 2007 from Rs.195.647 millions for the fiscal year
2006.
Recognition of revenues for
Construction activities is based on percentage completion method.
Income from sale of TDR increased by 1066.28% to Rs. 209.930 millions for the
fiscal year 2007 from Rs.17.999 millions, which was mainly attributable to the
increase in the volume of TDR Trading.
Income from Sale of Property was nil in fiscal year 2006 while in the fiscal
year 2007 it was Rs.40.500 millions which was attributable to the sale of
properties at Santacruz and Borivali.
TOTAL EXPENDITURE
The Construction and purchase cost
increased by 193.25% to Rs. 535.720 millions for the fiscal year 2007 from Rs.
182.685 millions for the year 2006.
The Construction cost increased by 79.86% to Rs. 314.058 millions for the
fiscal year 2007 from Rs.174.612 millions for the fiscal year 2006 primarily
due to the increase in the operations of the company.
The cost incurred on purchase of TDR increased by 2230.67% to Rs. 188.155
millions for the fiscal year 2007 from Rs. 8.073 millions for the fiscal year
2006, which was mainly attributable to the increase in the volume of TDR
Trading.
The acquisition cost of properties purchased at Santacruz and Borivali was
Rs.33.508 millions in the fiscal year 2007.
PROFIT BEFORE TAX
Their profit before tax increased
by 176% to Rs. 97.937 millions for the fiscal year 2007 from Rs. 35.481
millions for the fiscal year 2006, primarily as a result of overall increase in
their business activities. However as a percentage of income from sales their
profit before tax has reduced from 16.22% for the fiscal year 2006 to 14.80%
for the fiscal year 2007, primarily due to the increase in administrative and
financial expenses during the fiscal year 2007.
PROFIT AFTER TAX
Their profit after tax increased
by 171.54% to Rs. 62.238 millions for the fiscal year 2007 from Rs. 22.919
millions for the fiscal year 2006, primarily due to their increased business
activities. However, their profit after tax as a percentage of the sales has
reduced marginally from 10.48% for the fiscal year 2006 to 9.40% for the fiscal
year 2007 due to the increase in the administrative and financial
expenses.
LIQUIDITY AND CAPITAL RESOURCES
Liquidity includes the ability to
generate sufficient funds from both internal and external sources to meet their
obligations and commitments. It also includes the ability to obtain the right
mix of equity and debt financing. Their Company's primary liquidity
requirements are to fund their purchases of land and the costs of construction
and development. They have been financing their capital requirements through
funds generated from operations, financing from banks, debt financing and
advances from customers.
FIXED ASSETS:
· Plant and Machinery
· Air Conditioner
· Electric Fittings
· Office Equipments
· Telephone Instruments
· Furniture
· Vehicle
· Computer
· Capital WIP
WEBSITE DETAILS:
Satra Group: Building Urban Dreams
Satra Group, is building large format malls replete with cutting edge
retail design, entertainment and leisure facilities.
Mr. Praful Satra, Managing Director of their company envisioned the
business strategy of building land reserves in strategic locations at Irla,
Bhandup, Borivali, Huges road and Vashi and diversified into retail and office
segments. Mr. Satra's visionary
strategy was backed by the economic boom and the consequent demand for prime
retail and office space.
This business is done
by promoter's group companies
· Subject is a public limited company listed on BSE with the idea to
· Build brand name.
· Increase strategic land reserves in and around Mumbai and Navi Mumbai.
· Increase scale of operations.
· Generate competitive cash flow which will augment economies of scale and to pave way for diversification into infrastructure, hotels, SEZ's, township and office spaces and at the same time enable them to share the profits with retail investors, Mutual funds, FDI, FII, Investment bankers and Venture capitalists.
Board of Directors
Their overall management and supervision is undertaken by the Board. Their day-to-day management is the responsibility of the Managing Director who is assisted by Whole time Director under the supervision, direction and control of the Board. A team of professionals forms the next level of management with responsibility for functional areas that they lead.
The Board is composed of the following members :
Mrs. Minaxi P Satra, their Promoter and Chairperson, has a good understanding of the real estate business and possesses a good commercial acumen. She plays an important role in the policy decisions taken by their Board.
Mr. Praful N Satra, their Promoter and Managing Director has a total
experience of over 23 years in domestic and international business which
includes 7 years of experience in Real Estate Development. Mr. Praful Satra has
been the visionary behind the success of their Company. He has vast
experience in the execution and management of a wide variety of construction
and development projects. Some of the real estate development
projects he has been actively involved in are: Prime Mall (Vile Parle), Rehana
Heights (Santa Cruz), Vidhi Residency (Vile Parle), Shubangan (Juhu),
etc. He is in charge of identification and acquisition of land for development
activities, Finance related activities, Project Designing, Construction
Planning and Sales and Marketing activities of their Company. He is also a
member of the Audit Committee of their Board of Directors.
Mr. Rajan P Shah, their Whole time Director, has over 16 years of experience in the real
estate industry and construction activities. He has vast experience in the
execution and management of a wide variety of construction
projects. Some of the projects he has been involved with in the
past are Prime Mall (Vile Parle), Rehana Heights (Santa Cruz), Vidhi Residency
(Vile Parle), Gilbert Hill (Andheri), Yamuna Nagar (Lokhandwala), etc. His
areas of responsibilities include liasoning with government authorities and
local municipal corporations, purchases, project execution and coordination
with contractors and consultants. He also looks into the legal matters relating
to their Company. He is a member of the Shareholder’s / Investor’s Grievance
Committee.
Dr. Vijay N Satra, their Non-Executive Director is a Graduate of
Institute of Cost and Works Accountant of India and a qualified Chartered
Accountant with a doctorate in Finance from Pune University. He also
holds a graduate degree in Commerce and Law from University of Mumbai.
Dr. Vijay Satra has more than 24 years of experience in the field of business,
accounting, finance and taxation. He is a former Lecturer in Accountancy
and Financial Management at Mithibai College, Mumbai. He plays a major
advisory role in the tax planning, investment and financial decisions and other
corporate matters of their Company.
Mr. Vidyadhar Dinkar Khadilkar, their Independent Director, holds a
diploma in Civil and Sanitary Engineering from The Victoria Jubilee Technical Institute,
Mumbai.. Mr. Vidyadhar Khadilkar has a total work experience of over 25
years. He was appointed by Navi Mumbai Municipal Corporation as a Member
Secretary of its Expert committee. He has worked as an Engineer with state PWD
of the Government of Maharastra and also was associated with CIDCO Limited, a
town planning authority of Navi Mumbai. He was in-charge of the prestigious
Morbe Dam Project of Navi Mumbai Municipal Corporation as an executive
engineer. He is the Chairman of Compensation / Remuneration Committee and
Member of the Shareholders’ / Investors’ Grievance Committee of their Company.
Mr. K. Jawahar Mahi, their Independent Director holds a Bachelors
degree in Arts from Osmania University, Hyderabad. He is a former Indian
Revenue Service (IRS) officer. He has over 7 years of experience in real estate
business and corporate management. Mr. Mahi is the Chairman of
Shareholders’ / Investors’ Grievance Committee and a member of the Compensation
/ Remuneration Committee and Audit Committee of their Company.
Mr. Vinayak Dinkar Khadilkar, their Independent Director holds a Bachelors
degree in Commerce from University of Mumbai. He is a practicing Chartered
Accountant and has over 25 years of experience in the field of finance, accounts,
audit and taxation. Mr. Vinayak Khadilkar is the Chairman of the Audit
Committee and a member of the Compensation / Remuneration Committee of their
Company.
Company History
Their company was incorporated as Express Leasing Limited in the year 1983 to undertake the business of leasing, hire purchase, investments, finance and trading. Mr. Praful Satra and Mrs. Minaxi Satra, their present promoters acquired express Leasing Limited in June 2005 in compliance with SEBI SAST regulations. Subsequently the name was changed to Satra Properties (India) Ltd w.e.f December 2005.
BUSINESS OVERVIEW
They are an ISO 9001:2000 certified real estate development company in India and their primary business is the development of commercial, retail, hotel and residential properties. This includes all aspects of real estate development, from the identification and acquisition of lands, to the planning, execution and marketing of projects. They operate directly or through their subsidiary or associate company or through project specific companies / firms formed for the purpose of execution of projects. They also undertake development projects through Joint Development Agreements with third parties. They are also involved in the purchase and sale of TDRs which are freely transferable between developers.
Retail Malls
They have been developing retail malls under the name ‘Dreams the Mall’.
Their concept of retail includes leisure and entertainment such as multiplexes,
game zones, food court and restaurants. Their retail model includes both
lease able as well saleable projects. They intend to target a primary “anchor”
retail operator at an appropriate stage of development of the malls and market
the remaining saleable retail space to other retailers based on the location
and demographic profile of the target consumers for the mall.
The locations of their shopping malls, as well as the mix of retail
outlets within them, are carefully planned based on the profile of the relevant
consumer catchments areas as well as their understanding of consumer
preferences, with the aim of attracting shoppers and ensuring an attractive mix
of international brands, national retailers and leading local retailers.
Commercial properties
They develop commercial space for corporate and high net worth individuals. Their commercial projects are strategically located in the upcoming commercial hubs of Mumbai.
Residential
properties
Their focus in this segment is on premium luxury apartments for the high end consumers. Their continued focus in this segment is to understand their customer needs and their inspirational lifestyles so that they can conceptualize their projects accordingly.
Township project
They have ventured into a township project through a project specific company. This project comprises of construction of villas and other amenities at strategic and scenic location. They aim to provide school, temple, community hospital and other infrastructure facilities in their township project.
Hotel Projects
Their focus in this segment is on construction and development of star category hotels. Presently, they are involved in development of star category hotel at Calicut, Kerala and propose to develop star category hotel at Cochin, Kerala.
Geographical Coverage
of their operations
NOTES:
- The above
Quarterly results were reviewed by the Audit Committee and approved by the
Board of Directors at their respective meetings held on 31st October,
2007.
- The Company
is following Percentage Completion Method of Accounting to recognize
revenue from sale of incomplete properties.
- Amalgamation
of Om Housing Company Private Limited (‘Amalgamating Company’) with the
Company
The Company has received the Order of the Hon'ble High Court, Mumbai,
approving the Scheme of Amalgamation of Om Housing Company Private Limited with
the Company and the Amalgamating Company is merged with the Company as per the
Scheme.
The Results for the Quarter ended/Half Year ended are not comparable to
those for the quarter and half year ended 30th September 2006, to the extent of
Amalgamation of Om Housing Company Private Limited with the company.
Adjusting for the above, net sales for the quarter and half year ended
30 September 2007 is Rs 620.642 millions and Rs 895.739 millions, respectively;
Profit before interest and tax is Rs 201.168 millions and Rs 281.380 millions,
respectively and Profit after tax is Rs 115.406 millions and Rs 164.616
millions, respectively.
The Company is operating in a single segment i.e. Construction,
Development and trading in Real Estate and therefore there is only one
reportable segment in accordance with the Accounting Standard on Segment
Reporting (AS-17).
The Consolidated Financial Results for the Quarter / Half year ended
September 2007 comprises consolidation of financial results of the Company and
its Subsidiary Company – Satra Property Developers Private Limited. As such the
Accounting Standard AS-21 on Consolidated Financial Statements has become
applicable to the Company for the first time for the Year 2007-2008. Hence, the
figures for the consolidated financial results of the previous period / year
have not been given.
Other expenses for the quarter and half year ended 30 September 2007
include Rs 3.668 millions and Rs 0.537 millions, respectively; Depreciation for
the quarter and half year ended 30 September 2007 include Rs 0.641 millions and
Rs 0.342 millions, respectively; Interest for the quarter and half year ended
30 September 2007 include Rs 15.152 millions and Rs 0.424 millions,
respectively, which pertains to previous period / year.
The figures for the previous year / period have been regrouped /
rearranged / wherever necessary.
Information of
Investor Complaints:
Real Estate
Scenario
The Economy
India is the largest democracy and 10th largest economy in the world.
With its consistent growth performance, it provides enormous opportunities for
domestic and foreign investment. India is the 4th largest economy in terms of
purchase power parity and also the 10th most industrialized country in the
world. What's more, India provides a liberal, attractive and investor friendly
investment climate coupled with transparent government FDI policy.
According to Goldman Sachs, the Indian economy is expected to continue
growing @ 8% or more till 2050. It is slated to become the fourth largest
economy by 2050. AT KEARNEY 2004 and UNCTAD concludes that India is 3rd most
attractive destination, best off shoring destination and is among the top three
investment hot spots in the world.
The Indian economy registered a growth rate of 8.1% in 2005-2006.
Foreign exchange reserves have touched 130 billion dollars. The Indian economy
is expected to maintain its growth momentum during current year. This makes India
and its financial capital Mumbai the attractive real estate destination among
the emerging market economy.
Government Reforms
FDI policy
To catalyse investment in townships, housing, built-up infrastructure and construction-development projects as an instrument to generate economic activity the Government has decided to allow FDI up to 100% under the automatic route in townships, housing, built-up infrastructure and construction-development projects, subject to guideline i and ii.
i. In case of development of serviced housing plots, a minimum land area
of 10 hectares.
ii. In case of construction-development projects, a minimum built-up
area of 50,000 sq. Mts.
· Foreign venture capital funds are allowed to invest in real estate.
· FDI has been permitted in single branded retail.
· ULCRA (Urban Land Ceiling Regulatory Act) scrapped
· Reforms in Rent Control Act, Stamp Duties, Service Tax and Environmental clearances.
· With higher degree of professionalism coming in the real estate development, transparency has improved, which has enhanced the comfort level of the investors.
· Easy accessibility of funding through banks/institutional loans for real estate investors has resulted in increased inflow of accountable funds to the sector.
· Improved infrastructure, computerization of land, introduction of REITS and mutual funds for investments in real estate will further fuel real estate growth.
Real Estate
The real estate industry is booming with approx. 70% of Indian citizens under 40 years of age. Backed by high disposable incomes, augmented through easy bank loans, the young guns are all set to drive the growth of India's real estate sector at an expected 35% p.a. This segment has both the ability and willingness to spend and consume, the two most crucial factors that generate genuine demand. This is expected to propel the sector from its current $15 billion size to $100 billion by 2012.
Demand for office
space -11.7 million sq. ft. in 2007
Demand for retail
space - 8 million sq. ft in 2007 in Mumbai
Residential demand
100 million units for India
Satra Properties is Answering the Call
Built to Last
Today, subject is synonymous with excellence in building world-class contemporary residential and commercial projects, apart from top-end shopping malls and multiplexes matching international standards.
Satra Group seeks cost effective and innovative solutions to meet the clients' requirement and is known for executing projects on time. The Group is committed to work excellence and endeavors to improve quality of buildings by sourcing best construction materials and introducing modern construction technology.
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.39.29 |
|
UK Pound |
1 |
Rs.77.05 |
|
Euro |
1 |
Rs.58.39 |
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 |
8 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--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 |
YES |
|
--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 |
|