MIRA
INFORM REPORT
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Report Date : |
30.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
SRINIVASA SHIPPING AND PROPERTY DEVELOPMENTS LIMITED |
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Registered Office : |
B-2-595/3/6, Eden Gardens, Road No.10, Banjara Hills,
Hyderabad-500034, Andhra Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
17.10.1994 |
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Com. Reg. No.: |
01-18450 |
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CIN No.: [Company
Identification No.] |
L70100AP1994PLC018540 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDS07368E |
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PAN No.: [Permanent
Account No.] |
AADCS0821K |
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Legal Form : |
Public Limited Liability Company. The Company’s shares are listed on
Stock Exchanges. |
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Line of Business : |
Subject is engaged in Civil Engineering Activities. |
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 1124085 |
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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. |
INFORMATION PARTED
BY
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Name : |
Mr. Vishwanath Ganti |
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Designation : |
Company Secretary |
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Date : |
25.07.2008 |
LOCATIONS
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Registered Office : |
B-2-595/3/6, Eden Gardens, Road No.10, Banjara Hills, Hyderabad-500034,
Andhra Pradesh, India |
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Tel. No.: |
91-40-66637560/ 66507567 |
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Fax No.: |
91-40-66637969 |
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E-Mail : |
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Website : |
http://www.sspdl.com http://www.flatsindia.com |
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Area : |
13000 Sq. ft |
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Location : |
Rented |
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Corporate Office : |
'Challa Mall1, 8th Floor, 11-11 A, Sir Thiayagaraya Road, T. Nagar,
Chennai - 600 017, Tamilnadu, India |
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Tel. No.: |
91-44-24322601/ 24322602 |
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Fax No.: |
91-44-24348447 |
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Branches : |
Bangalore
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Tel. No.: |
91- 44– 25091622/ 25091644/ 25091655 |
DIRECTORS
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Name : |
Mr. Prakash Challa |
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Designation : |
Managing Director |
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Qualifications : |
MSC |
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Name : |
Mr. E Bhaskar Rao |
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Designation : |
Director |
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Qualifications : |
B.Com |
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Name : |
Mr. Suresh Challa |
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Designation : |
Director |
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Qualifications : |
MSC |
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Name : |
Mr. Cherukuri Ramakrishna |
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Designation : |
Director |
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Qualifications : |
CA |
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Name : |
Mr. S Suryanarayana |
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Designation : |
Director |
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Address : |
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Name : |
Mr. C Jagapati Rao |
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Designation : |
Chairman |
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Name : |
Mr. Sudit K Parekh |
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Designation : |
Director |
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Name : |
Mrs. E Padmaja |
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Designation : |
Director |
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Name : |
Mr. K Akmaluddin Sheriff |
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Designation : |
Director |
KEY EXECUTIVES
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Audit Committee : |
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Name : |
Mr. S. Suryanarayana |
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Designation : |
Chairman |
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Name : |
Mr. K. Akmaluddin Sheriff |
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Designation : |
Member |
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Name : |
Mr. E. Bhaskar Rao |
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Designation : |
Member |
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Name : |
K. M. Satish |
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Designation : |
Vice President |
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Name : |
S. Sundar |
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Designation : |
Chief Financial Officer |
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Name : |
Vishwanath Ganti |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2007
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters |
2149890 |
53.45 |
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Persons acting in concert |
13300 |
0.33 |
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Sub Total |
2163190 |
53.78 |
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Private Corporate Bodies |
524167 |
13.03 |
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Indian Public |
1105935 |
27.50 |
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NRIs/ OCB's |
222222 |
5.53 |
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Others/Clearing Members |
6486 |
0.16 |
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Sub Total |
1858810 |
46.22 |
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Grand Total |
4022000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in Civil Engineering Activities. |
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Products : |
Contract Receipts from Completed Contracts. |
GENERAL
INFORMATION
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No. of Employees : |
Total : 220 (Office:25, Factory : 180, Branch :15) |
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Bankers : |
v Andhra Bank Hyderabad and Chennai v Axis Bank Hyderabad and Chennai v State Bank of India Chennai v ICICI Bank Limited v
Kotak Mahindra Bank |
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Facilities : |
Secured Loans (Rs. In millions)
Unsecured Loans
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Karvy and Company, Chartered Accountants, |
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Address : |
No. 2, Bhooma Plaza, St.No. 4, Avenue 7,Banjara
Hills, Hyderabad - 500 034 |
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Subsidiaries : |
v
SSPDL Realty
India Private Limited v
SSPDL Real
Estates India Private Limited v
SSPDL Matrix Towers
Private Limited v
SSPDL
Infrastructure Developers Private Limited v
SSPDL Infra
Projects India Private Limited v
Kollur
Residential Projects Private Limited |
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Associates : |
v Sri Satya Sai Constructions (Partnership Firm) v Sri Satya Sai Constructions (Sole Proprietary Concern) v
SSPDL
Ventures Private Limited v
Alpha City
Chennai IT Park Projects Private Limited v
Sri Krishna
Devaraya Hatcheries Private Limited v
Monisha Sri
Durga Farms Private Limited v
Sahiti
Poultry Breeding Farm (Sole Proprietory Concern) v
SSPDL
Properties Private Limited v
SSPDL Retreat
Private Limited v
CBA Hotels
And Resorts Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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2,50,00,000 |
Equity Shares |
Rs. 10/- each |
Rs. 250.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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4022000 |
Equity Shares |
Rs. 10/-
each |
Rs. 40.220 millions |
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Convertible Warrants application money |
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Rs. 3.647
millions |
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Total |
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Rs. 43.867 millions |
Upfront consideration of Rs. 12.60 per warrant
received towards preferential allotment of 2,89,500 convertible warrants of Rs.
126/- each. These warrants are to be converted into 2,89,500 equity shares of Rs.
10/- each at a premium of Rs. 116/- per equity share on exercise of option by
the warrant holders on or before 24.04.2007
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 |
40.220 |
39.820 |
30.000 |
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2] Convertible Warrants |
3.648 |
4.152 |
0.000 |
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3] Reserves & Surplus |
180.949 |
139.678 |
16.658 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
224.817 |
183.650 |
46.658 |
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LOAN FUNDS |
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1] Secured Loans |
0.477 |
0.454 |
0.778 |
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2] Unsecured Loans |
176.660 |
14.049 |
0.000 |
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TOTAL BORROWING |
177.137 |
14.503 |
0.778 |
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DEFERRED TAX LIABILITIES |
0.799 |
(2.145) |
0.000 |
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TOTAL |
402.753 |
196.008 |
47.436 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
26.700 |
10.408 |
2.443 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
2.994 |
0.507 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
7.505 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
186.876
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52.660
|
2.054 |
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Sundry Debtors |
82.251
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8.744
|
0.248 |
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Cash & Bank Balances |
32.777
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24.848
|
10.936 |
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Other Current Assets |
0.859
|
0.047
|
0.007 |
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Loans & Advances |
200.367
|
106.254
|
25.845 |
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Total
Current Assets |
503.130
|
192.553
|
39.090 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
99.489
|
6.317
|
1.485 |
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Provisions |
30.584
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1.480
|
0.117 |
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Total
Current Liabilities |
130.073
|
7.797
|
1.602 |
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Net Current Assets |
373.057
|
184.756
|
37.488 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.336 |
0.000 |
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TOTAL |
402.753 |
196.008 |
47.436 |
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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 |
366.070 |
19.157 |
21.778 |
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Other Income |
2.708 |
3.162 |
0.287 |
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Total Income |
368.778 |
22.319 |
22.065 |
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Profit/(Loss) Before Tax |
70.086 |
15.846 |
(2.181) |
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Provision for Taxation |
23.343 |
6.739 |
0.354 |
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Profit/(Loss) After Tax |
46.743 |
9.107 |
(1.827) |
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Exports : |
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F.O.B. Value |
0.260 |
NA |
NA |
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Total |
0.260 |
NA |
NA |
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Imports : |
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Lifts and AC Machines |
28.730 |
NA |
NA |
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Total |
28.730 |
NA |
NA |
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Expenditures : |
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Works Cost |
391.485 |
50.677 |
2.494 |
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Personal Cost |
8.870 |
0.933 |
19.310 |
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Administrative Expenses |
17.113 |
4.998 |
1.267 |
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Construction Expenses |
0.000 |
50.677 |
0.787 |
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Increase in Work in Progress |
(2.708) |
(3.162) |
0.000 |
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Salaries, Wages, Bonus, etc. |
0.000 |
0.934 |
0.127 |
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Interest |
14.132 |
0.227 |
0.031 |
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Depreciation & Amortization |
1.305 |
0.243 |
0.233 |
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Other Expenditure |
(131.505) |
(99.054) |
(0.003) |
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Total Expenditure |
298.692 |
6.473 |
24.246 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
31.03.2008 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
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Sales
Turnover |
234.400 |
146.700 |
459.700 |
134.300 |
|
Other
Income |
1.200 |
1.500 |
0.800 |
2.900 |
|
Total
Income |
235.600 |
148.200 |
460.500 |
137.200 |
|
Total
Expenditure |
51.600 |
107.500 |
410.100 |
57.700 |
|
Operating
Profit |
184.000 |
40.700 |
50.400 |
79.500 |
|
Interest |
3.800 |
13.400 |
10.900 |
15.400 |
|
Gross
Profit |
180.200 |
27.300 |
39.500 |
64.100 |
|
Depreciation |
0.400 |
0.400 |
0.500 |
0.500 |
|
Tax |
41.800 |
9.300 |
12.800 |
29.900 |
|
Reported
PAT |
137.900 |
16.700 |
25.900 |
34.900 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity
Ratio |
0.48 |
0.07 |
0.01 |
|
Long
Term Debt-Equity Ratio |
0.22 |
0.01 |
0.01 |
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Current
Ratio |
2.77 |
8.55 |
25.16 |
|
TURNOVER
RATIOS |
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Fixed
Assets |
17.52 |
2.37 |
5.22 |
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Inventory |
3.06 |
0.70 |
1.71 |
|
Debtors |
8.06 |
4.29 |
193.00 |
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Interest
Cover Ratio |
5.97 |
80.00 |
0.00 |
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Operating
Profit Margin(%) |
23.35 |
84.82 |
(9.84) |
|
Profit
Before Interest And Tax Margin(%) |
23.00 |
83.77 |
(10.88) |
|
Cash
Profit Margin(%) |
13.11 |
48.69 |
(8.29) |
|
Adjusted
Net Profit Margin(%) |
12.76 |
47.64 |
(9.33) |
|
Return
On Capital Employed(%) |
28.45 |
13.27 |
(4.38) |
|
Return
On Net Worth(%) |
23.32 |
8.05 |
(3.78) |
LOCAL AGENCY
FURTHER INFORMATION
Trade References
v
Capital Tower
v
Maruti
v
Fuller India
Business Overview
The Company has performed exceedingly well during the financial year
2006-07 as compared to the previous financial year. The Company has embarked on
several new projects and also the on going projects are under various stages of
execution. The Company has achieved significant growth in its turnover of Rs.
500.286 millions
(including closing work in progress of Alpha City Project in Chennai) as
compared to Rs. 71.898 millions in the previous year.
The Company recorded Rs. 366.070 millions towards contract revenues,
income from operations and posted an after tax profit of Rs. 46.743 millions
for the financial year ending 31st March, 2007.
The performance of the Company during the current year i.e 2007-2008 is
also expected to be very encouraging.
Current Projects
Alpha City, Chennai Located on the IT corridor, OMR (Old Mahabalipuram
Road) in Chennai, Alpha City is a campus dedicated to, and custom-built for the
IT and ITES industry. The campus consists of 3 Grade A++ buildings - Alpha,
Beta and Gamma set on a well-planned and beautifully landscaped area. Alpha and
Gamma are 5-storey buildings, while Beta stands tall at 7-storeys. This
prestigious project incorporates the best of aesthetics, infrastructure,
comfort and convenience for IT and ITES Companies. All the buildings are
expected to be completed by end of September 2007 and will be ready for
fit-outs by IT and ITES Companies. The Company is currently in discussions and
negotiations with various parties to lease/sell the space in the buildings.
Chennai Central,
Chennai
The Company has entered into a contract with M/s Anchor Malls Private
Limited, to act as "Development and Project Management Consultant"
for the construction of a shopping mall "Chennai Central" at
Nungambakkam High Road, Chennai. M/s Anchor Malls Private Limited have applied
for building permissions from various authorities and the project will commence
only after receipt of approvals from the authorities.
The Retreat,
Bangalore
The Company has been awarded construction contract from M/s Sri Satya
Sai Constructions, for construction of 180 plus residential villas and a club
house spread over 45 acres at the "The Retreat" township,
Tarabanahalli, Bangalore near to the Devanahalli International Airport at a
contract value of Rs. 770.000 millions Currently club house and model homes are
being built and other construction activity is going on.
Matrix Towers, IT
Park, Perungudi, Chennai
The Company has signed a Joint Development Agreement for developing
"Matrix Towers", an IT Park at Perungudi, Chennai. The estimated
share in value of the project to the Company is Rs. 300.000 millions. All
necessary permissions and clearances have been obtained and construction work
is going on full swing. The roof of the second floor is cast and sales have
commenced with purchase commitment for most of the space already obtained from
customers.
SSPDL Avion,
Hyderabad
The Company has signed a Joint Development Agreement for developing
"Avion", a 25 acres development and sale of serviced plots at Mamidipally
Village, adjacent to the new Hyderabad International Airport. The Company has
applied for the necessary permissions with HADA (Hyderabad Airport Development
Authority) and is awaiting clearances. The estimated share in value of the
project to the Company is around Rs. 120.000 millions.
The Retreat,
Hyderabad
The Company has entered into strategic alliance with M/s Spire Realty Hyderabad Retreat Limited, an US based investor group, to jointly develop an integrated township in about 90 plus acres of land at Kollur and Osmannagar villages, Hyderabad. It is proposed to develop an IT/ITES SEZ in about 10 hectares apart from residential, commercial and retail space in this township. The land acquisition is complete. The Company is in the process of master planning and applying for the necessary permissions. Meanwhile, the Company has also applied for SEZ and the process is currently underway. The estimated project value is around Rs. 10000.000 millions.
Proposed Projects
The Retreat , Kalar
Valley, Kerala
The Company has acquired about 300 plus acres through itself and its subsidiaries, cardamom plantation land at Kalar Valley, Kerala. The Company proposes to develop a high end eco-tourism project incorporating a five star hotel and exclusive villas for selected clients/customers. The Company is currently in the process of identifying the right partners in the hospitality industry to jointly develop this project.
Mixed Development
Project, OMR, Chennai
The Company is proposing to develop a mixed development project comprising of a Shopping Mall and High-end Residential Apartments in about 9.32 acres of prime land on the Chennai IT Corridor, OMR at Egattur Village. This will be a joint development with the land owners and the Company is in the final stages of negotiations with foreign investors to fund the project under the Foreign Direct Investment Scheme.
Residential Project,
OMR, Chennai
The Company has signed a Joint Development Agreement with the landlords for developing residential apartments in about 2.56 acres of land on the Chennai IT Corridor, OMR at Kazhipattur Village.
Changes In Capital
Structure
During the financial year 2006-2007, 40,000 convertible warrants were converted in 40,000 Equity Shares. Subsequently, 91,250 convertible warrants where converted into 91,250 equity shares on 16.04.2007 and 1,96,500 convertible warrants where converted into 1,96,500 equity shares on 24.04.2007. The Paid up share capital of the Company after the conversion of warrants stood at Rs. 43.097 millions.
Further, the Directors are happy to convey that the Company has achieved another milestone of successfully raising funds through Rights Issue. The Company has made an offering of equity shares of Rs. 10/- each at a premium of Rs. 8/- per share on Rights basis to the existing shareholders/beneficiary holders in the ratio of two shares for every one share held (2:1). The Rights Issue opened on June 7th, 2007 and closed on 20th July, 2007. The Rights Issue was oversubscribed by 1.19 times. The Company's Rights Issue process is almost complete and the shares are now being listed on Bombay and Hyderabad Stock Exchanges.
Subsidiary Companies
As on 31st March, 2007, the Company had 7 subsidiaries. There has been no material change in the nature of the business of the subsidiaries. A statement containing financial details of the subsidiaries is included in this Annual Report. As required under the Listing Agreements with the Stock Exchanges, the consolidated financial statements of the Company and all its' subsidiaries are attached. The Consolidated Financial Statements have been prepared in accordance with Accounting Standard 21 issued by the Institute of Chartered Accountants of India and shows the financial resources, assets, liabilities, income, profits and other details of the Company and its subsidiaries.
Management Discussion and Anaiysis Report 2006-07
Industry Structure and Developments :
The real estate sector in India has assumed growing importance with the
liberalization of the economy. The consequent increase in business
opportunities and migration of the labour force to towns and cities has, in
turn, increased the demand for commercial and housing space, especially rental
housing. Developments in the real estate sector are being influenced by the
developments in the retail, hospitality and entertainment (e.g. hotels,
resorts, multiplexes) industries, community services (e.g. hospitals, schools)
and IT and ITES (e.g. call centers) etc. and vice versa as well as owing to the
fact that quality real estate development prompts raising of standards of
retail, hospitality etc. The size of the Indian real estate sector is estimated
to be over US$12 billion (Source: • Federation of Indian Chambers of Commerce
and Industry, 2006).
Infrastructure sector is another major component in the construction
industry. Currently the Government of India is
putting great emphasis on building and improving the infrastructure. The
investment in infrastructure will increase to Rs. 2892000.000 millions in 2008
from Rs. 2655000.000 millions in fiscal 2005 according to estimates by CRIS
INFAC.
Opportunities, Threats / Risks and Concerns :
Opportunities:
High growth in the economy, growing contribution of the services sector,
changing demographic profile (increasing proportion of young and working
population, increasing disposable incomes and urbanisation), rising demand from
the technology sector and favourable government policies are expected to drive
the demand for real estate in India. Foreign Direct Investment
("FDI") has been recognized as one of the important drivers of
economic growth in the country. The Indian Government has taken a number of
steps to encourage and facilitate FDI investment and FDI is allowed in many key
sectors of the economy, such as manufacturing, services and infrastructure. For
real estate sector, 100% FDI is allowed on an automatic basis i.e. without
prior approval from the Government of India ("GOI"). These factors
have given rise to significant opportunities in the housing, commercial,
retail, hospitality, SEZ, townships and infrastructure projects.
Key Segments
Housing: Aided by population growth and urbanization, the housing construction activity
has been on the upswing for the past 5 years, The contribution of the housing
sector to India's GDP is a meagre 1% against 3-6% of developing countries. If
the economy grows at the rate of 10%, the housing sector has the capacity to
grow at 14% and generate 3.2 million new jobs over the next 10 years. (Source:
Integrated Databases India Limited). The housing boom is expected to continue,
despite a marginal firming up of the interest rate on housing loans. The total
estimated floor space area (FSA) was 96 billion sq ft in 2003-04, with an
estimated 2.5 billion sq ft added in 2004-05. The new FSA added is expected to
grow at a CAGR of 4 per cent over the next 5 years to reach 3 billion sq ft by
2009-10. This would roughly translate into 14 billion sq ft to be added over a
period of 5 years. During the same period, the total housing construction
investment is estimated at Rs 9,1 76 billion.
Commercial space: Commercial construction comprises construction of
office space, hotels, hospitals, schools, stadia etc. In India, most of the
investment in this segment is driven by office space construction. Within
office space construction activity, almost 70-75 per cent of the demand comes
from IT/BPO/call centres. The other key demand drivers include banking and
financial services, FMCG and telecom. According to CRIS INFAC Construction
Review, in the last 4 years, the ITES sector grew at 48 per cent growth and the
revenue from ITES is expected to grow at a CAGR of 30 per cent to reach $19.7
billion in 2009^-10. CRIS INFAC, estimates the growth in IT/ITES is likely to
translate into construction investments of Rs 148 billion (118 million sq ft)
by 2007-08
as compared with investments of Rs 74 billion (61 million sq ft) in the
last 3 years.
Retail: The increase in disposable incomes, demographic changes (such as the
increasing number of working women, who spend more, the rising number of
nuclear families and higher income levels within the urban population), the
change in the perception of branded products, the growth in retail malls, the
entry of international players and the availability of cheap finance will drive
the growth in organised retail, resulting in a retail boom of 100+ million sft
with construction investments of Rs. 112 billion over the next 5 years (Source:
CRIS INFAC Construction Review, Feb 2006)]
Hospitality: Hospitality industry is witnessing significant
changes in its dynamics with increase in tourists and business travel to India.
As per the World Travel and Tourism Council, 2006 (WTTC), India's Travel and
Tourism is expected to grow 8.4 % in 2006 and by 8 % per annum, in real
terms, between 2007 and 2016. WTTC has also projected India as one of the
emerging tourism markets having potential of earning US$24 billion annual
foreign exchange through tourism by 2015. With the industry expected to grow at
8- 9% in 2006, the number of business travelers to the country is also likely
to increase. (Source: Central Statistical Organisation).
SEZs: Special Ecomonic
Zones (SEZs) are specifically delineated duty free enclaves deemed to be
foreign territories for purposes of Indian custom controls, duties and tariffs.
SEZ developers are eligible for tax benefits under Section 80-IA of the Income
Tax Act, pursuant to which they are eligible to avail themselves of tax
exemptions for a block of 10 years in a 15 year period at the option of the
relevant developer. In addition, developers may import/procure goods without
paying duty for the development, operation and maintenance of the SEZ.
Townships: There is a concerted effort to build urban communities / townships which
provide a great
opportunity by bringing together
all the above mentioned sub-sectors in a well planned and cohesive fashion leading
to a sustainable and eco-friendly living conditions. Cushman and Wakefield have
noted that there is scope for Rs. 400 township projects over the next five
years spread across 30 to 35 cities, each having a population of more than
0.500 millions and that the total project value dedicated to low and middle
income housing in the next seven years is estimated at US$40 billion.(Source:
"Opportunities for Private Equity Investment in Indian Real Estate".
Infrastructure: Apart from the above, a significant portion of
infrastructure development is expected to be undertaken through public-private
partnerships, thereby increasing the flow of private capital into
infrastructure projects. Key areas of infrastructure development include
transport, power, telecommunications, ports, pipelines, sanitation, water
supply and irrigation. The current rate of infrastructure investment in India,
at 3.5% of GDP, is well below the target rate of 8.0% proposed by the Expert
Group on Commercialisation of Infrastructure Projects. The Gol has taken
various initiatives to encourage this investment, such as capital grants, tax
holidays and other fiscal incentives for certain types of projects.
Threats/Risks and Concerns:
The sector has traditionally been burdened with high transaction costs as
a result of stamp duty on transfers of title to property that varies from state
to state. Though efforts are being made at the state level to reduce the stamp
duties, they continue to be as high as 11% in certain states. Absence of clear
titles to property in some cases, high transaction taxes and various real
estate regulations have kept a large portion of property transactions out of
the formal market. Urban Land Ceiling Act (ULCA) and Rent Control Acts are
largely responsible for the artificial scarcity of land, which has resulted in
making India one of the more expensive real estate markets in the world. Some
of the other regulations that affect the growth in housing construction
include, Coastal Regulatory Zone (CRZ) regulations, and property taxes.
Future Outlook :
The infrastructure and real estate markets witnessed large scale
investments and developments happening in Metro and Tier II cities in
commercial, residential, retail, hospitality and other sectors. Inspite of the
rising interest costs, limited financing from financial institutions and banks,
real estate and construction industry have witnessed surge in private equity
funding, foreign direct investments by major global players.The Company sees a
bright future in all the above markets and is actively pursuing opportunities
in hospitality and infrastructure projects apart from its on going commercial,
retail and residential projects. The Company is negotiating with foreign
investors and major realty funds for having strategic tie-ups for the projects
of the Company.
Segment Wise Performance :
The company is engaged in construction and development of commercial and
residential properties in metropolitan and Tier II cities. The operations of
the Company can be categorized under one segment i.e. construction of
commercial and residential properties. The Company has already embarked on
development of commercial properties, shopping malls, IT parks, residential
townships and these projects are currently under various stages of execution.
Contingent
Liabilities not provided for:
|
Particulars |
31.03.2007 |
31.03.2006 |
|
Sales Tax demand under Tamilnadu General Sales Tax Act |
0.320 |
0.320 |
Fixed Assets :
v
Building
v
Construction Equipment
v
Office Equipment
v
Furniture and Fixtures
v
Vehicles
As Per Website
Details :
Subject and Sri Satya Sai Constructions have
been builders and developers of commercial and residential buildings, since
1990. Their first major project was Park centre in T.Nagar,
Chennai. During the execution of the project they put into place several of the
quality standards and construction management systems which continue to be the
cornerstones of their projects. Today, two of their buildings, Challa Mall and
Capital Towers are landmarks in Chennai, appreciated by discerning clients.
Whether they are multinational companies, or
individuals buying residential property, they believe in giving their clients
buildings that are built with care and designed by top architects, at a fair
price.
Their clients vouch that their properties are well
planned and make excellent investments. They continue to build on this
reputation brick by brick, bringing their expertise to bear on their several
ongoing projects
Press
Release :
Srinivasa Shipping
in pact with Malaysian firm for township project
Nina Varghese
The company has set up two special purpose
vehicles to develop residential complexes in Hyderabad and Chennai.
Chennai , May 8
Srinivasa Shipping and Property Development Ltd has tied up with
Malaysian developer Glomac Bhd for financial and technical support for its next
township project in Andhra Pradesh.
The company plans to bid for the new 600-acre township project announced
by the Andhra Pradesh Government, Mr Prakash Challa, Managing Director,
Srinivasa Shipping and Property Development, said.
He said the company is raising additional capital of about $20 million
through the issue of foreign currency convertible bonds. In the first phase,
the company will receive $10 million.
The company has set up two special purpose vehicles to develop
residential complexes in Hyderabad and Chennai.
Mr Challa said Srinivasa Shipping will develop a 90-acre residential
project, called `The Retreat', estimated to cost Rs 4000 million at Kollur (about
5 km from the Indian School of Business) near Hyderabad.
He said the company is getting into a number of residential projects, as
there is a demand for premium housing.
Srinivasa Shipping has projects worth about Rs 6000 million in Chennai,
Bangalore and Hyderabad.
The company proposes to develop another space (both residential and
commercial) worth Rs 3300.000 million in the next three years.
It has set up a 100-per cent subsidiary in Colombo to develop
residential and commercial high rise buildings totalling 1.000 million sq. ft.
in the heart of Colombo. The project cost is estimated to be Rs 2000 million
excluding land cost.
Srinivasa Shipping is coming out with a rights issue in the ratio of 2:1
at Rs 18 per share to raise funds to the tune of Rs 143.000 millions.
SSPDL to set up
gated community in Hyderabad
Hyderabad, June 27 Srinivasa Shipping and Property Development Limited
(SSPDL) and Indiareit Fund Advisors Private Limited are developing a gated
residential villa community ‘SSPDL Northwoods’ near Hyderabad at a total
estimated project value of Rs 2500.000 millions.
Through a special purpose vehicle, they have acquired 42 acres in
Gundlapochampally village for the purpose, SSPDL has informed BSE.
In Chennai, the company has entered into a construction contract for TCG
IT Park and construction of 50 villas for Ferns-Regalia Realty Limited,
Chennai.
In Andhra Pradesh, the company has been awarded construction contracts
aggregating to Rs 782.000 millions.
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 :
The 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.
The 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. 42.47 |
|
UK Pound |
1 |
Rs. 84.00 |
|
Euro |
1 |
Rs. 66.14 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--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 |
|
63 |
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, they have no basis upon which to
recommend credit dealings |
No Rating |
|