MIRA
INFORM REPORT
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Report Date : 26.06.2008 |
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IDENTIFICATION
DETAILS
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Name : |
BRIGADE ENTERPRISES LIMITED |
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Registered Office : |
Pent House, Brigade Towers, Bridge Road, Bangalore – 560 052,
Karnataka |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
08.11.1995 |
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Com. Reg. No.: |
019126 |
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CIN No.: [Company
Identification No.] |
U85110KA1995PLC019126 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRB00957F |
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PAN No.: [Permanent
Account No.] |
AAACB7459F |
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Legal Form : |
A closely held public limited liability company |
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Line of Business : |
Construction 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 7400000 |
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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 fine track.
Available information indicates high financial responsibility of the company
and its management. Trade relations are fair. General financial position is
satisfactory. 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 : |
Pent House, Brigade Towers, Bridge Road, Bangalore – 560 052, Karnataka,
India |
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Tel. No.: |
91-80-41379200 |
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E-Mail : |
enquiry@brigadegroup.com |
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Website : |
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Location : |
Owned |
DIRECTORS
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Name : |
Mr. M. R.
Jaishankar |
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Designation : |
Managing Director |
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Name : |
Dr. K
Kasturirangan |
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Designation : |
Independent
Director |
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Name : |
Ms. Githa Shankar |
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Designation : |
Executive Director |
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Name : |
Mr. P. V. Maiya |
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Designation : |
Independent Director |
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Name : |
Mr. M. R.
Gurumurthy |
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Designation : |
Non-Executive
Director |
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Name : |
Mr. P. M. Thampi |
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Designation : |
Independent
Director |
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Name : |
Mr. M. R. Shivaram |
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Designation : |
Non-Executive
Director |
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Name : |
Dr. T. N. Subba |
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Designation : |
Independent
Director |
BUSINESS DETAILS
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Line of Business : |
Construction Activities |
GENERAL
INFORMATION
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No. of Employees : |
328 |
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Bankers : |
Not Divulged |
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Facilities : |
Secured Loan As On
31.03.2007 Es in Millions
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Banking
Relations : |
Good |
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Associates: |
·
AEC Infotech
private Limited ·
Tandem Allied
Services Private Limited ·
Mysore
Holdings ·
Brigade
Foundation |
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Subsidiaries : |
·
Brigade
hospitality Services Private Limited ·
Tetrarch Holdings
Private Limited ·
Brigade
Estate and Projects Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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30000000 |
Equity Shares |
Rs. 10/-
each |
Rs. 300.000
Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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26916210 |
Equity Shares |
Rs. 10/-
each |
Rs. 269.160
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 |
269.160 |
269.160 |
107.700 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1202.730 |
516.690 |
322.800 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1471.890 |
785.850 |
430.500 |
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LOAN FUNDS |
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1] Secured Loans |
2402.030 |
1007.310 |
1071.600 |
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2] Unsecured Loans |
0.000 |
17.930 |
21.100 |
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TOTAL BORROWING |
2402.030 |
1025.240 |
1092.700 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
3873.920 |
1811.090 |
1523.200 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
758.680 |
2098.720 |
362.700 |
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Capital work-in-progress |
477.940 |
430.990 |
182.100 |
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INVESTMENT |
15.370 |
17.990 |
4.600 |
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DEFERREX TAX ASSETS |
16.760 |
4.390 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
3984.430 |
900.140 |
2128.900 |
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Sundry Debtors |
169.500 |
53.040 |
97.700 |
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Cash & Bank Balances |
175.040 |
196.250 |
127.300 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
1551.820 |
734.710 |
565.600 |
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Total
Current Assets |
5880.790
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1884.140
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2919.500 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
2921.590 |
2561.060 |
1898.800 |
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Provisions |
354.030
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64.080
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46.900 |
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Total
Current Liabilities |
3275.620 |
2625.140 |
1945.700 |
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Net Current Assets |
2605.170 |
[741.000] |
973.800 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
3873.920 |
1811.090 |
1523.200 |
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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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Contract and
other receipts |
4019.590 |
1988.830 |
1628.300 |
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Profit/(Loss) Before Tax |
1068.440 |
468.650 |
219.700 |
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Provision for Taxation |
338.270 |
47.340 |
23.700 |
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Profit/(Loss) After Tax |
730.170 |
421.310 |
196.000 |
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Expenditures : |
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Project Expenses |
2315.680 |
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Personnel Expenses |
159.430 |
87.530 |
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Administrative and Selling Expenses |
282.290 |
126.600 |
1408.600 |
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Increase/(Decrease) in Finished Goods |
[58.060] |
6.420 |
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Interest |
164.570 |
95.970 |
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Depreciation & Amortization |
87.240 |
53.580 |
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Total
Expenditure |
2951.150 |
1520.180 |
1408.600 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
31.03.2005 |
PAT / Total Income
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(%) |
18.17
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21.18
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12.04 |
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Net Profit Margin
(PBT/Sales)
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(%) |
26.58
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23.56
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13.49 |
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Return on Total Assets
(PBT/Total Assets}
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(%) |
16.09
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11.77
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6.69 |
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Return on Investment (ROI)
(PBT/Networth)
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0.73
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0.60
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0.51 |
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Debt Equity Ratio
(Total Liability/Networth)
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3.86
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4.65
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2.65 |
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Current Ratio
(Current Asset/Current Liability)
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1.80
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0.72
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1.50 |
LOCAL AGENCY FURTHER
INFORMATION
History
The
Compa`ny was originally called `Brigade Enterprises', a partnership firm,
formed by Mr. M. R Jaishankar and Ms. Githa Shankar, which was subsequently
converted into a private limited company called Brigade Enterprises Private
Limited on November 8, 1995.
In 2002, Brigade Developers Private Limited and Brigade Investments and
Projects Private Limited, merged with Company with effect from April 1, 2001
and in the year 2005, another company Brigade Constructions Private Limited
merged with Company with effect from April 1, 2004.
The company has engaged in the business of real estate development based
in Bangalore, primarily focused on the development of residential, commercial
and hospitality properties in South India. Residential properties include
integrated lifestyle enclaves and apartment buildings targeted towards middle
income and high income customers. Integrated lifestyle enclaves are
conceptualised as self-contained, gated communities, which generally include a
combination of apartment complexes, commercial and retail space, recreational
clubs, parks, schools, convention centres and car parking and which
historically have ranged from 1.62 million sq. ft to 7.23 million sq. ft. of
Developable Area. The commercial properties include commercial office space,
software and IT parks, schools, hospitals and retail malls with entertainment
facilities, such as multiplexes. The properties in the hospitality sector
include serviced residences, hotels, resorts, spas, recreational clubs and
convention centres in Bangalore and other parts of South India.
Contingent
Liabilities
Rs. In Millions
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Capital Commitments not provided in the books |
2904.370 |
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Towards counter guarantee to bank for issuing bank guarantee |
11.670 |
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Claims from government departments not acknowledged as debts |
29.590 |
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Total |
2945.630 |
Financial Results And
Operations
Current Year’s operational result reflects the company achieving greater heights in terms of volume and sales figures. The turnover has grown from Rs. 1982.41 Millions to Rs. 4077.65 Millions, which is an increase of 106 % over the previous year. The profit before tax increased from Rs. 468.65 Millions to Rs. 1068.44 million an increase of 128 % over the previous year.
The total income during the fiscal year 2007 to primarily the overall growth of their real estate development business and particularly from revenue recognized as a result of collections and development of residential properties in Brigade Gateway and Brigade Metropolis, which amounted to Rs. 2031.23 million and Rs. 595.80 million, respectively.
Market
The year 2006-07 has witnessed continued buoyancy in the real estate market, more specifically reflected in line with overall growth of the Indian economy. Since real estate / housing sector is now open to FDI investment opportunities, and an active interest is being shown by overseas real estate / financing companies in the India growth model.
With the company’s high standards in quality and timely delivery without compromising on basic principles of transparency and fairness. It has grown to be a dominant player in Bangalore.
They have recently witnessed a spurt in interest rates in the housing sector in the last few months. However they observe that the interest rates are affordable and the company does feel that this should not affect the along term perspective of the industry.
Thy intend to expand their scale of operations to various cities and centres in India, keeping in mind and all round growth and demand seen in the real estate sector.
Quality
The quality in construction is in the lifeline of the company and imparted by the company in all aspects of the products and service. The company’s continued commitment to excellence, and its efforts to continually delivery quality in all its projects, has led to being recognized as leaders in its business.
All engineers and site supervisors are regularly imparted training in the newer methodology and also in the use of latest tools and techniques in construction methods.
Contract Revenues
The total Contact Revenues recognized during the year amounts to Rs. 3781.70 Million for which the corresponding contract costs incurred and recognized profit / [Losses] for all contracts in progress during the year amounts to Rs. 2315.68 Millions. The company has retention amount as at end of the year for Rs. 128.93 Millions from suppliers / contractors and the same is included in Sundry creditors amount in the financial statement.
Land Held For
Development
Company had acquired certain lands during the preceding years which were grouped under Fixed Assets till last financial year. The same has been regrouped during the current year as Land held for Development and is disclosed as part of inventories in the current financial statement.
Warranty Costs
The company has not recognized warranty cost relating to sale of unit / property, since such cash, if any, are covered by a corresponding warranty from the company’s contractors / vendors. This cost is recognized as and when incurred by the company.
Fixed Assets
- Land and Building
- Interiors, Furniture and Fixture
- Office Equipments, Plant and Machinery
- Computer
- Motor Vehicles
Subject
is one of Bangalore's leading property developers, and an ISO
9001-2000 organisation. Their website will give the information about their
projects which includes luxury apartments, enclaves, townships, offices,
software facilities, hotels and resorts.
Brigade has grown with the growth of the real estate industry in Bangalore and Mysore.
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
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Indian Rupees |
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US Dollar |
1 |
Rs.42.82 |
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UK Pound |
1 |
Rs.84.27 |
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Euro |
1 |
Rs.66.62 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
6 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
9 |
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--PROFITABILIRY |
1~10 |
6 |
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--LIQUIDITY |
1~10 |
8 |
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--LEVERAGE |
1~10 |
8 |
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--RESERVES |
1~10 |
8 |
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--CREDIT LINES |
1~10 |
7 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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64 |
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 |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
|
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 |
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