MIRA
INFORM REPORT
|
Report Date : |
22.09.2008 |
IDENTIFICATION
DETAILS
|
Name : |
BRIGADE ENTERPRISES LIMITED |
|
|
|
|
Registered Office : |
Pent House, Brigade Towers, Bridge Road, Bangalore – 560 052,
Karnataka |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2008 |
|
|
|
|
Date of Incorporation : |
08.11.1995 |
|
|
|
|
Com. Reg. No.: |
019126 |
|
|
|
|
CIN No.: [Company Identification No.] |
L85110KA1995PLC019126 |
|
|
|
|
TAN No.: [Tax Deduction & Collection Account No.] |
BLRB00957F |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACB7459F |
|
|
|
|
Legal Form : |
Public Limited Liability Company. Company’s Shares are Listed on the
Stock Exchange. |
|
|
|
|
Line of Business : |
Construction Activities |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 7400000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and reputed company. Trade relations are
fair. Business is active. General financial position is good. Payments are
reported as usually correct and as per commitments. The company can be considered good normal for business dealings. |
LOCATIONS
|
Registered Office : |
Pent House, Brigade Towers, Bridge Road, Bangalore – 560 052,
Karnataka, India |
|
Tel. No.: |
91-80-41379200 |
|
E-Mail : |
enquiry@brigadegroup.com |
|
Website : |
|
|
Location : |
Owned |
|
|
|
|
Headquarters : |
Hulkul Chambers, 82,Lavelle Road, Bangalore – 560 001, Karnataka,
India. |
|
Tel. No.: |
91-80-41379200, 40467600 |
|
Fax No: |
91-80-41379320 |
|
|
|
|
Branch : |
G-5, Brigade Residency, 41, Gokulam Road, V V Mohalla, Mysore – 570
002 |
|
Tel. No.: |
91-821-4252239 |
|
Mobile No: |
91-9880405241 |
|
E-Mail : |
|
|
|
|
|
Branch : |
V. Ananthapadmanaban, Gayathri’s-Consultant Realtore, C3-Secound
Floor, Ceebros Court, 44 Habibullah Road, T.Nagar, Chennai – 600 017 |
|
Tel. No.: |
91-44-52124017 / 42124014 |
|
Mobile No: |
91-9840722374 |
|
E-Mail : |
|
|
|
|
|
Branch : |
Door No.39/5993,Plot No.213,Panampilly Nagar,Cochin. |
DIRECTORS
|
Name : |
Mr. M. R. Jaishankar |
|
Designation : |
Managing Director |
|
Age : |
54 years |
|
Qualification : |
B Sc , MBA |
|
Experience : |
34 years |
|
Date of Appointment : |
08.11.1995 |
|
|
|
|
Name : |
Ms. Githa Shankar |
|
Designation : |
Wholetime Director |
|
Age : |
54 years |
|
Qualification : |
BA, MBA |
|
Experience : |
29 years |
|
Date of Appointment : |
08.11.1995 |
|
|
|
|
Name : |
Mr.M.R.Gurumurthy |
|
Designation : |
Non-Executive Director |
|
|
|
|
Name : |
Dr.K.Kasturirangan |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr.P.V.Maya |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr.T.N.Subba Rao |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Dr.Anumolu Ramakrishna |
|
Designation : |
Additional Director |
KEY EXECUTIVES
|
Name : |
Mr. Anil Kumar A. |
|
Designation : |
Business Development and Company Secretary |
|
Age : |
40 years |
|
Qualification : |
B Com, ACA.Grad.CWA,ACS |
|
Experience : |
20 years |
|
Date of Appointment : |
07.03.2005 |
|
|
|
|
Name : |
Ms. Indira Sharma |
|
Designation : |
Vice President – Marketing |
|
Age : |
47 years |
|
Qualification : |
BBm , MBA |
|
Experience : |
26 years |
|
Date of Appointment : |
01.07.1988 |
|
|
|
|
Name : |
Mr. Roshin Matheu |
|
Designation : |
Chief Operating Officer – Projects |
|
Age : |
45 years |
|
Qualification : |
BTech , MBEM |
|
Experience : |
21 years |
|
Date of Appointment : |
08.07.2005 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2008
|
Sr. No. |
Category |
No of Shares |
Percentage |
|
1. |
Promoters and their Relatives |
61857799 |
57.33 |
|
2. |
Mutual Funds |
822877 |
0.73 |
|
3. |
Banks, Financial Institutions |
1267900 |
1.13 |
|
4. |
Foreign Institutional Investors |
6869273 |
6.12 |
|
5. |
Non Resident Indians |
49984 |
0.04 |
|
6. |
Indian Companies |
2021084 |
1.80 |
|
7. |
Indian Public |
36345379 |
32.38 |
|
8. |
Trusts |
85367 |
0.08 |
|
9. |
Clearing Members |
438569 |
0.39 |
|
10. |
Total |
112251940 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Construction Activities |
GENERAL
INFORMATION
|
No. of Employees : |
328 |
||||||
|
|
|
||||||
|
Bankers : |
v Corporation Bank
v Indian Bank v State Bank of
India v State Bank of Mysore v State Bank of
Patiala v HDFC Bank
Limited v IDBI Bank
Limited v Bank of
Maharashtra v ICICI Bank
Limited |
||||||
|
|
|
||||||
|
Facilities : |
Secured Loan As On
31.03.2008 Rs. in Millions
|
||||||
|
|
|
||||||
|
Banking
Relations : |
Good |
||||||
|
|
|
||||||
|
Auditors : |
|
||||||
|
Name : |
Narayanan Patil and Ramesh Chartered Accountants Brigade Links,Seshadripuram,Bangalore-560 020 |
||||||
|
Address : |
|
||||||
|
|
|
||||||
|
Associates: |
·
AEC Infotech private
Limited ·
Tandem Allied
Services Private Limited ·
Mysore
Holdings ·
Brigade
Foundation |
||||||
|
|
|
||||||
|
Subsidiaries : |
·
Brigade
hospitality Services Private Limited ·
Tetrarch
Holdings Private Limited ·
Brigade
Estate and Projects Private Limited ·
Brigade Properties
Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2008
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
150000000 |
Equity Shares |
Rs. 10/-
each |
Rs. 1500.000
Millions |
(Previous
year: 3, 00, 00,000 Equity Shares of Rs.10/- each).
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
112251940 |
Equity Shares |
Rs. 10/-
each |
Rs. 1122.520
Millions |
(2,69,16,210 equity shares of Rs.10/- each fully paid up for year
2006-07) (of the above 6,72,90,525 equity shares of Rs.10/- each were allotted
as fully paid-up Bonds Shares by capitalisation of accumulated profits)
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1122.520 |
269.160 |
269.160 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
8153.940 |
1202.730 |
516.690 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
9276.460 |
1471.890 |
785.850 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2974.910 |
2402.030 |
1007.310 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
17.930 |
|
|
TOTAL BORROWING |
2974.910 |
2402.030 |
1025.240 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
12251.370 |
3873.920 |
1811.090 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
742.330 |
758.680 |
2098.720 |
|
|
Capital work-in-progress |
4043.540 |
2205.000 |
430.990 |
|
|
|
|
|
|
|
|
INVESTMENT |
4052.150 |
15.370 |
17.990 |
|
|
DEFERREX TAX ASSETS |
15.170 |
16.760 |
4.390 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3022.460 |
2257.360 |
900.140 |
|
|
Sundry Debtors |
20.010 |
170.390 |
53.040 |
|
|
Cash & Bank Balances |
119.620 |
175.040 |
196.250 |
|
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances |
3666.530 |
1526.060 |
734.710 |
|
Total
Current Assets |
6828.700
|
4128.850
|
1884.140
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
3123.930 |
2896.710 |
2561.060 |
|
|
Provisions |
605.610
|
354.030
|
64.080
|
|
Total
Current Liabilities |
3729.540 |
3250.740 |
2625.140 |
|
|
Net Current Assets |
3099.270 |
878.110 |
[741.000] |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
298.910 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
12251.370 |
3873.920 |
1811.090 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Contract and
other receipts |
4941.530 |
4019.590 |
1988.830 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
1374.050 |
1068.440 |
468.650 |
|
|
Provision for Taxation |
343.210 |
338.270 |
47.340 |
|
|
Profit/(Loss) After Tax |
1030.840 |
730.170 |
421.310 |
|
|
|
|
|
|
|
|
CIF Value |
25.020 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Project Expenses |
2860.870 |
2315.680 |
1150.080 |
|
|
Personnel Expenses |
306.430 |
159.430 |
87.530 |
|
|
Administrative and Selling Expenses |
216.480 |
119.030 |
126.600 |
|
|
Increase/(Decrease) in Finished Goods |
[12.280] |
[58.060] |
6.420 |
|
|
Interest |
35.710 |
160.020 |
95.970 |
|
|
Miscellaneous Expenses Written off
|
74.730 |
0.000 |
0.000 |
|
|
Depreciation & Amortization |
85.540 |
87.240 |
53.580 |
|
Total Expenditure |
3567.480 |
2951.150 |
1520.180 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
|
|
30.06.2008 |
|
Type |
|
|
1st
Quarter |
|
Sales Turnover |
|
|
1206.700 |
|
Other Income |
|
|
116.300 |
|
Total Income |
|
|
1323.000 |
|
Total Expenditure |
|
|
932.300 |
|
Operating Profit |
|
|
390.700 |
|
Interest |
|
|
18.100 |
|
Gross Profit |
|
|
372.600 |
|
Depreciation |
|
|
21.700 |
|
Tax |
|
|
85.300 |
|
Reported PAT |
|
|
265.600 |
FINANCIAL RATIOS:
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt-Equity
Ratio |
0.50 |
1.52 |
1.74 |
|
Long
Term Debt-Equity Ratio |
0.50 |
1.49 |
1.65 |
|
Current
Ratio |
1.57 |
1.02 |
1.03 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
4.67 |
2.39 |
1.39 |
|
Inventory |
1.75 |
2.40 |
1.21 |
|
Debtors |
48.62 |
33.99 |
24.35 |
|
Interest
Cover Ratio |
4.48 |
7.60 |
5.88 |
|
Operating
Profit Margin(%) |
40.21 |
35.37 |
33.70 |
|
Profit
Before Interest And Tax Margin(%) |
38.36 |
33.06 |
30.78 |
|
Cash
Profit Margin(%) |
24.20 |
22.07 |
25.89 |
|
Adjusted
Net Profit Margin(%) |
22.35 |
19.76 |
22.97 |
|
Return
On Capital Employed(%) |
22.33 |
43.98 |
33.87 |
|
Return
On Net Worth(%) |
19.16 |
66.21 |
69.27 |
LOCAL AGENCY FURTHER
INFORMATION
History
The
Company 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 is 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
|
Particulars |
2007-08 |
2006-07 |
|
Capital Commitments not provided in the books |
8436.240 |
2904.370 |
|
Towards counter guarantee to bank for issuing bank guarantee |
125.550 |
11.670 |
|
Claims from government departments not acknowledged as debts |
18.170 |
29.590 |
|
Total |
8579.960 |
2945.630 |
DIRECTOR’S REPORT
Operational Review and Future:
During the year the company has completed a good mix of residential , commercial and hospitality projects. Brigade Gateway at Malleswaram in Bangalore and Brigade. metropolis at Whitefield in Bangalore are part of integrated lifestyle enclaves developed by the company. The Ministry of Commerce, Govt. of India, New Delhi, have approved the company’s Spacial Economic Zone (SEZ) projects focusing on Information Technology to come up on a 25-acre plot in Ganjimutt, Mangalore. Apart form these, the company has signed up agreements for development of hospitality Projects. The revenues from these projects will significantly bolster the financial of the company.
Their pioneering efforts in integrated developments have been will received by their clints and in line with their philosophy of providing a better quality of life. The company intends to use its expertise in developing such projects larger scale in the near future.
Whilst focusing on such integrated developments the company adopts a diverse mix of project, including stands alone residential developments, commercial projects, SEZs and increasing its presence in the Hospitality sector.
The company entered into on agreement with starwood Hotels for the management of a proposed Sheraton Hotel in Mysore.
The company along with throught its subsidiary Brigade Hospitality Services Private Limited, has entered into: (i) a Memorandum of Understanding with AAPC Hotels Management Pte Limited, a member of the Accor Asia Plastic Group, for management of the Mercure Homestead Residences at Koramangala, Bangalore (ii) Hotels Management Agreement with inter Continental Hotels Pvt. Limited for the management of the proposed Holiday Inn hotel at Devanahalli, Bangalore. The company believers that Bangalore and South Indian markets are quite vibrant and provide a conducive environment for hospitality projects including the Serviced Residences.
The company is carefully monitoring the market situation and the land prices, which has increased over the last few years.in the wake of the above the company is following a cautious but optimistic approach to increasing its land bank and its presence in different geographical locations.
Conversion into a
Public Limited Company :
The company was converted into a Public Limited Company in the Twelfth Annual General Meeting Held on 20.06.2007. The fresh certificates of incorporation consequent upon charge of name of the company on conversion into a Public Limited Company was issued by the Registrar of companies. Karnataka on 20.06.2007.
Charges in Capital
Structure:
During the year the following charges happened in the share capital of the company:
a) Bonus issue of 67290525 Equity Shares of the Company in the ratio of 5:2 was allotted on 20.06.2007
b) The Authorised Shares capital of the company was increased form Rs.300.000 millions only divided into 30.000 millions only Equity share of Rs.10/- each to 1500.000 divided in to 150.000 millions Equity shares of Rs.10 each on 20.06.2007.
c) Public issue of 16624720 Equity share and green shoe option of 1420485 Equity share of Rs.10/- each allotted on 24.12.2007 and 31.01.2008 respectively at a premium of Rs.380/- pre Equity Share.
The paid-up Equity share capital for the company has increased form Rs.269.162 millions to Rs.1122.519 millions due to the aforesaid allotment of Shares.
Initial Public
Offering (IPO)
The financial years 2007-08 is important landmark in the history of the Company. The Company camr out with an intial Public Offering (IPO) during the said financial years. Proceeds From IPO are intended to fund the expansion plans of the company.
The issue was done through a book Building process of 19.118 millions Equity share of Rs. 10/- each at a pre at a premium of Rs. 380/- per Equity Shares including the Green Shoe Option of 2.493 millions offered by Ms. Githa Shankar, one of the Promoters of the company.
This issue was opened for subscription form 10.12.2007 to 13.12.2007.the issue was oversubscribed 10.82 times.
The Equity Shares of the company are listed on the national stock Exchange of India limited and Bbmbay stock Exchange limited with effect from 31.12.2007.
Subsidiaries :
Brigade Hospitality Services Private Limited (BHSPL),a company incorporated on 01.06.2004as a 100% Subsidiaries of the company and is carrying on the business of running and managing clubs, serviced residences
And convention centres. During the financial years 2007-08, BHSPL has registered income from operations amounting to 141.210 millions. Loss incurred during the period amounted to Rs.14.42 millions.
Brigade Hospitality Services Private Limited, Tetrarch Holdings Private Limited and Brigade Properties Private Limited are wholly owned Subsidiaries of the company with main business in the fiels of real estate development. These companies are in the process of being fully operational.
Management Discussion
and Analysis Report:
Industry Structure and Developments:
India's GDP
grew by 9.2% in the fiscal year 2007 as compared to 7.5%, 8.1%, 8.4% in the
fiscal years 2004, 2005 and 2006 respectively. This strong growth in the Indian
economy is, among others, due to vibrant growth of the Information Technology
(IT) and Information Technology Enabled Services (ITES) sectors. These sectors
benefit from the growing international trend towards off-shoring and the
resultant demand for skilled and low-cost English-speaking workers. Indian
competitiveness in this area is aided by substantial investment in
telecommunications, infrastructure and the phased liberalisation of the
communications sector.
Real Estate Sector in India:
Historically,
the real estate sector in India was unorganised and characterised by various
factors that impeded organised dealing. In recent years however, the real
estate sector in India has exhibited a trend towards greater organisation and
transparency, aided by various regulatory reforms.
These trends
have been reinforced by the substantial recent growth in the Indian economy,
which has stimulated demand for land and developed real estate across their
business lines. Demand for residential, commercial and retail real estate is
rising throughout India, accompanied by increased demand for hotel
accommodation and improved infrastructure.
In addition,
tax and other benefits applicable to Special Economic Zones are expected to
result in a new source of demand.
Opportunities:
The real estate sector in India is assuming growing importance with the
liberalisation of economy. Real estate sector is driven by the following
factors like more housing units in cities and towns because of faster growth in
urban households due to nuclearisation, demand for office space, demand for
shopping malls due to growing retail segment, Setting of Special Economic Zones
in various sectors etc.
The Company has
been a niche player in the market mainly due to the following:
*
Innovative projects in the Bangalore region
*
End-to-end competencies
* An
established brand name and reputation for quality
*
Significant portfolio of global clientele
Risks and Threats:
Risks are an
integral part of any business. The level and types of risks depends / varies
from company to company, based on its growth strategy, expansion plans, type of
industry and host of various other factors. Some of the prominent risks faced
by the Company are as follows:
*
Government Regulations
* Performance of, and the conditions
affecting, the real estate market in Bangalore.
* Difficulties
in expanding business in India
* Human
Resources
*
Financial Resources
* Natural
Calamities
They ensure
that sufficient risk mitigation measures are taken on a continual basis to
overcome / reduce the impact of these risks.
Performance and Outlook:
During the
year, the Company has completed residential, commercial and hospitality
projects. The Company's standards of innovation, quality and trust have been
established and constantly upgraded. These are clearly reflected in the
projects completed by the Company. Two Integrated Lifestyle Enclaves were
developed by the Company during the year which got a good response from the
clients. The Company proposes to do integrated developments on a large scale in
the future.
The demand for
serviced apartments in South India, especially Bangalore, is high due to the
presence of multi-national corporations. They are a niche player in the
hospitality sector including serviced residences and would be exploring these
opportunities on a large scale in the future.
They are
optimistic about delivering superior results in future, based on their
experience, land bank and project execution skills.
Strategy:
They intend to develop a range of properties in a number of cities in India to
meet a diversified business model and to provide for increasing customer
demands. The following are the key elements of their business strategy:
* Leveraging their expertise in the development of integrated lifestyle
enclaves
* Focus
on hospitality and related ventures
* Expansion into various cities in South
India
* Maintain quality standards for residential
and commercial development
*
Outsourcing selectively to increase scale of operations and reduce capital
investments
*
Continued focus on properties in a diverse range of price segments
Financial Performance:
Turnover: The
Company's turnover has increased from Rs. 4019.590 Millions to Rs.4941.530
Millions, an increase of 18.66% over the previous year.
Net Profit: Net
Profit of the Company for the year 2006-07 stood at Rs.1029.590 Millions as
compared to Rs. 747.410 Millions in the previous year, an increase of 27.40%
over the previous year.
SECURED LOANS FROM:
Corporation Bank:
For
Brigade Gateway Project is secured by the
equitable mortgage of land measuring 23.29 acres out of the larger
portion of land measuring 39.735 acres situated at 26/1, Industrial Suburb,
Subramanyanagar,
Malleswaram
West, Bangalore, together with the residential buildings to be constructed
thereon. Amount outstanding as on 31.03.2008 is Rs 171.10 Million (previous
year Rs 700.00 Million). The loan is further secured by persona) guarantee of
Mr Krishna Kumar M.R.
b. For
the Hospital Project at Brigade Gateway Project is secured by exclusive charge on
land measuring approx. 1.72 acres out of the larger portion of land measuring
39.735 acres situated at 26/1, Industrial Suburb, Subramanyanagar, Malleswaram
West, Bangalore, and building constructed thereon. Amount outstanding as on
31.03.2008 is Rs 202.17 Million (previous year Rs 200.00 Million).
c. For
the Brigade Gateway North Star Project and Multi Level Car Parking Complex
Project is secured by first
charge
on pari-passu basis with Indian Bank on land measuring approx 5.3 acres out of
the larger portion
of
land measuring 39.735 acres situated at 26/1, Industrial Suburb,
Subramanyanagar, Malleswaram West, Bangalore, and Brigade Gateway North Star
building and Multi Level Car Parking to be constructed thereon.Amount
outstanding as on 31.03.2008 is Rs 368.55 Million (previous year Rs 252.39
Million).
d.
Overdraft is secured by eguitable mortgage of
portions owned by the Company in Brigade Seshamahal, situated at No. 5, Vani Vilas Road, Basavanagudi,
Bangalore, and eguitable mortgage of
Hulkul Brigade Centre situated at No. 82, Lavelle Road, Bangalore, owned by Mr
M.R. Jaishankar and his family members .Above
loans have been further secured by the personal guarantee of Mr M.R. Jaishankar
and Mr M.R. Shivram.
Indian Bank:
For
Brigade Gateway North Star Project and Multi Level Car Parking Complex Project
is secured by first charge on pari-passu basis with Corporation Bank on land
measuring approx 5.3 acres out of the larger portion of land measuring 39.735
acres situated at 26/1, Industrial Suburb, Subramanyanagar, Malleswaram West,
Bangalore, and Brigade Gateway North Star building and Multi Level Car Parking
to be constructed thereon. Amount outstanding as on 31.03.2008 is Rs 217.37
Million (previous year Rs148.60 Million).
State Bank of India:
For Hotel and Orion Mall Project at Brigade
Gateway Project is secured by first charge on pari-passu basis with of State
Bank of Mysore and State Bank of Patiala on land measuring 5.45 acres out of
the larger portion of land measuring 39.735 acres situated at 26/1, Industrial
Suburb, Subramanyanagar, Malleswaram West, Bangalore, and the buildings to be
constructed thereon. Amount outstanding as on 31.03.2008 is Rs 358.72 Million
(previous year Nil),
For
Brigade South Parade Project is secured by
equitable mortgage of property belonging to Mr M.R. Jaishankar situated
at Kurubarakunte Village, Devanahalli Taluk, measuring 22 acres, and 1st charge
on the rent receivable from the building Brigade South Parade. Amount
outstanding as on 31.03.2008 is Rs 66.56 Million (previous year Rs 104.80
Million).The above limits are further
secured by the personal guarantee of Mr M.R. Jaishankar and
Mr M.R. Shivram.
State Bank of Mysore:
For
the Hotel and Orion Mall Project at Brigade Gateway Project is secured by first
charge on paripassu
basis
with State Bank of India and State Bank of Patiala on land measuring 5.45 acres
out of the larger portion of land measuring 39.735 acres situated at 26/1,
Industrial Suburb, Subramanyanagar, Malleswaram West, Bangalore, and the buildings
to be constructed thereon. Amount outstanding as on 31.03.2008 is Rs 169.31
Million (previous year Nil).
State Bank of Patiala:
For
the Hotel and Orion Mall Project at Brigade Gateway Project is secured by first
charge on paripassu
basis
with State Bank of Mysore and State Bank of India on land measuring 5.45 acres
out of the larger portion of land measuring 39.735 acres situated at 26/1,
Industrial Suburb, Subramanyanagar,Malleswaram West, Bangalore, and the
buildings tobe constructed thereon. Amount outstanding as on 31.03.2008 is Rs
169.27 Million (previous year Nil).
HDFC Limited
For
Brigade Metropolis Project is secured by mortgage of land situated at
Mahadevapura Village, Krishnarajapuram Hobli, Bangalore South, to the extent of developers share measuring
6,10,000 sft
and
built-up space thereon. Amount outstanding as on 31.03.2008 is Rs 900.00
Million (previous year Rs
500.00
Million). The limits are further
secured by the personal guarantee of Mr M.R. Jaishankar.
IDBI Bank Limited
For Brigade
Palmsprings is secured by equitable mortgage of land and building to be
constructed at Puttenahalli, Uttarahalli, J.P. Nagar, Bangalore, to the Extent
of Undivided Share of Brigade Enterprises Limited. Amount outstanding as on
31.03.2008 is Rs 53.83 Million (previous year Nil). The limits are further secured by the personal guarantee of Mr M.R.
Jaishankar and Mrs Githa Shankar.
Bank of Maharashtra:
For
Brigade Petunia project is secured by equitable mortgage of land and building
to be constructed thereon at Banashankari 2nd Stage, Industrial Layout,
Bangalore. Amount outstanding as on 31.03.2008 is Rs 207.55 Million. (Previous
year Nil) The limits are further
secured by personal guarantee of Mr M.R. Jaishankar and Mr M.R. Shivram.
ICICI Bank Limited
For
Brigade Homestead-2 is secured by exclusive mortgage on land and building at
Jayanagar Bangalore. Amount outstanding as on 31.03.2008 is Rs 90.49 Million
(previous year Nil). The limits are
further secured by the personal guarantee of Mr M.R. Jaishankar and Mr M.R. Shivram.
AS PER WEB SITE
DETAILS
Since 1990, Brigade Group is a name instantly identified with
Bangalore: the city in which they are headquartered, which they understand with
instinctive ease and with which they share their past and future.
When they started, their sole focus was property development.
Today, theirs is a uniquely diverse multi-domain portfolio that covers a wide
range of residential, commercial and hospitality projects. Their projects now
extend across several major cities in South India: Chennai, Chikmagalur,
Hyderabad, Kochi, Mangalore and Mysore. They are one of Bangalore's leading
property developers.
Brigade's standards of innovation, quality and trust have been
established and are being upgraded constantly by the high-calibre team of
Brigadiers. They draw upon a national and international pool of professional
associates; employ modern construction technology; work in a professional
environment supported by ERP; and follow best practices of HR management.
Their profile of clients, across domains, is a testament to the
reputation they have earned.
PROFILE:
Subject is their flagship company. In the year 2007, they made the
transition from a private to public limited company and set the path to a new
trajectory.
Over 20 years, they have constructed luxury apartments, integrated enclaves, state-of-the-art offices,
software and retail
facilities, serviced residences, resorts, hotels, clubs
and schools. At any given time, they have a range of
projects that are in various stages of conception and creation.
They have successfully handled projects ranging from 0.1 million
sft to 12 million sft. They have completed a total of 67 projects; on-going
projects include 2 enclaves, 12 residential and 2 hospitality projects.
Forthcoming projects include 4 integrated lifestyle enclaves, 14 residential, 9
commercial and 5 hospitality properties.
They have progressively introduced value-enhancing features to
their buildings. These include advanced fire and security protection systems
and technology like the Integrated Building Monitoring and Security System,
which centrally monitors all building functions and systems. This has enabled
them to increase building efficiency and ensure the continual comfort of its
residents. They where also one of the first to incorporate eco-friendly
measures like rainwater harvesting and waste recycling systems into their
projects.
In-house, end-to-end competencies
An ISO 9001:2000 company, they have also been awarded a
certificate of recognition by the International Facility Management Association
for being amongst the best service providers in the real estate industry.
They have an in-house, fully integrated property development team of over 550
employees—with about 200+ engineers and architects who oversee the development
of properties from inception to completion. Their dedicated marketing and sales
teams number close to 50+. And they are growing.
Partnering with the best
Their partners and associates are leading professionals in their
lines of business. And their reach extends globally. They were one of the first
in Bangalore to partner with leading international firms: HOK, New York (on the
Brigade Gateway enclave); Starwood, InterContinental, Accor and Banyan Tree (to
manage their hospitality projects through the Sheraton, Holiday Inn, Mercure
and Banyan Tree and Angsana Resort brand names); and the Columbia Asia Group of
Seattle (to manage their first hospital project).
An expanding vision
Their corporate vision has evolved with time and organisational
growth. Their vision and intent now encompass not just building better homes or
offices…but providing a better quality of life for people who are part of any
facility they have created.
In the process of growth and change, they have created a brand
name that stands for reliability, high professional standards and long-lasting
customer relationships.
With a strategy that focuses on leveraging their experience,
expertise and established track record, they are set to match the rapid growth
and demands within all their different domains of operations.
Brigade Hospitality Services Pvt. Limited
Brigade entered the hospitality industry with Brigade Homestead
Serviced Residences and pioneered the concept of serviced residences in Bangalore.
Today, BHSPL, their subsidiary company formed in 2004, manages serviced
residences in various parts of the city.
They have extended operations in the hospitality industry by
venturing into hotels, resorts and spas, clubs and a convention centre.
The Woodrose and Augusta clubs, located in the Brigade Millennium
and Brigade Gardenia enclaves in South Bangalore are operational. Two more
luxury clubs are planned to be part of the upcoming Brigade Gateway and Brigade
Metropolis enclaves in North and East Bangalore respectively.
The MLR Convention Centre, located within the Brigade Millennium
enclave, provides an excellent venue to cater to celebrations and events of
every size and scale.
Brigade Hospitality has entered into agreements with world-class organisations
like Starwood, InterContinental, Accor and Banyan Tree for the operation and
management of their hospitality projects: 5-star hotels, hill resorts and
serviced residences under the brands Sheraton, Holiday Inn, Mercure and Banyan
Tree and Angsana.
Brigade
Foundation
In keeping with their corporate philosophy of providing for a
better quality of life, Brigade Group has extended its reach into the sphere of
education.
Schools of excellence, through the Brigade
Foundation
Set up in 2003, the Brigade Foundation is a not-for-profit trust.
It focuses on the domain of education, at school, technical and professional
levels.
The Foundation set up its first school—located in the Brigade
Millennium campus in J.P. Nagar, Bangalore—in 2004. The Brigade Foundation
proposes to set up more schools in and near its upcoming enclaves. It also
plans on establishing rural schools for the less privileged.
The Team
Their ever-widening range of operations is managed by a
team of committed professionals, led by Vice-Presidents and General Managers in
construction management, financial administration, marketing and business
management. Continual learning and broad-based exposure are achieved through
regular seminars, lectures and workshops.
Their directors are respected professionals in their fields. Their professional
associates—architects, interior designers, landscapers, engineers, legal and
financial advisors, building services consultants and communication
consultants—are leading names in their lines of business. They share a
long-term professional relationship with all of them, based on mutual regard
and respect. They also make efforts to tap the fresh views and talents of the
many excellent young architects who are just beginning to make their presence
felt in the industry.
Quality Policy
Brigade Enterprises Limited is one among the first property developers in South
India to receive the internationally recognised ISO 9001-2000 Quality Assurance
Certification.
This certification, awarded to Brigade Group by the Bureau Veritas Quality
International (BVQI), denotes Quality Assurance in Design, Development,
Construction and Marketing of Brigade's residential, commercial, software and
industrial buildings.
They were among the first property developers to have received the coveted
CRISIL Rating. Their project 'Brigade Regency', in Malleswaram, Bangalore, was
accorded PA2 rating by CRISIL in 1995.
As a reflection of its confidence in the soundness of the project and of its
successful completion, Investment Credit Rating Agency and National Real Estate
Development Council (ICRA-NAREDCO) awarded a credit rating of RT2+ to Brigade
Millennium.
The Indian chapter of International Facilities Management Association (IFMA),
awarded a certificate of recognition to Brigade Group for being amongst the
best service providers in the industry. This was based on a
recognition-of-excellence survey carried out by Ernst and Young for IFMA.
FIXED
ASSETS
v Land
v Building
v Interiors
,Furniture and Fixtures
v Office
Equipment,Plant and Machinery
v Computers
v Motor
Vehicles
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 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.45.40 |
|
UK Pound |
1 |
Rs.83.15 |
|
Euro |
1 |
Rs.65.74 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
68 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|