MIRA
INFORM REPORT
|
Report Date : |
03.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
HOUSING DEVELOPMENT AND INFRASTRUCTURE
LIMITED (w.e.f 29.08. 2006) |
|
|
|
|
Formerly Known As : |
Housing Development and Improvement India
Private Limited |
|
|
|
|
Registered Office : |
9-01, Dheeraj Arma, Anant Kanekar Marg, Bandra (East), Mumbai – 400
051, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2010 |
|
|
|
|
Date of Incorporation : |
25.07.1996 |
|
|
|
|
Com. Reg. No.: |
11-101379 |
|
|
|
|
Capital Investment / Paid-up Capital : |
Rs.3588.427 millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L70100MH1996PLC0101379 |
|
|
|
|
Legal Form : |
Public Limited Company. The Company's shares are listed on the Stock
Exchange. |
|
|
|
|
Line of Business : |
Subject is an infrastructure and Real Estate Company |
|
|
|
|
No. of Employees: |
1500 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba ( 51 ) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 284709740 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and a reputed company having fine track.
Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INFORMATION PARTED BY (GENERAL DETAILS)
|
Name : |
Mr. Preeti |
|
Designation : |
Accountant |
|
Contact No.: |
91-22-26583500 |
|
Date: |
02.06.2011 |
LOCATIONS
|
Registered Office : |
9-01, Dheeraj Arma, Anant Kanekar Marg, Bandra (East), Mumbai – 400
051, |
|
Tel. No.: |
91-22-
26583500 |
|
Fax No.: |
91-22 -
26583636 / 26583535 |
|
E-Mail : |
|
|
Website : |
http://www.hdil.in |
DIRECTORS
|
Name : |
Mr. Rakesh Kumar Wadhawan |
|
Designation : |
Executive chairman |
|
|
|
|
Name : |
Mr. Sarang Wadhawan |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Waryam Singh |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ashok Kumar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Satyapal Talwar |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Lalit Mohan Mehta |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Shyam Sunder Dawra |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Surinder Kumar Soni |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Sunil Behari Mathur |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. ramesh Chander
Kapoor |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Raj Kumar Aggarwal |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. K P Devassy |
|
Designation : |
Chief Financial Director |
KEY EXECUTIVES
|
Name : |
Mr. Darshan D Majmudar |
|
Designation : |
Company Secretary |
|
|
|
|
AUDIT COMMITTEE |
|
|
|
|
|
|
|
|
REMUNERATION
COMMITTEE |
|
|
|
|
|
|
|
|
INVESTOR GRIEVANCES AND SHARE TRANSFER COMMITTEE |
|
|
|
|
|
|
|
|
FINANCE COMMITTEE |
|
|
|
|
|
|
|
|
PROJECT COMMITTEE |
|
|
|
|
|
|
|
|
Name: |
Mr. K P Devassy |
|
Designation: |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
97307398 |
23.45 |
|
|
53346984 |
12.85 |
|
|
|
|
|
|
|
|
|
|
9371426 |
2.26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1018351 |
0.25 |
|
|
889611 |
0.21 |
|
|
314372 |
0.08 |
|
|
164075156 |
39.54 |
|
|
|
|
|
|
|
|
|
|
42058818 |
10.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24384646 |
5.88 |
|
|
17888471 |
4.31 |
|
|
|
|
|
|
|
|
|
|
1085972 |
0.26 |
|
|
105455 |
0.03 |
|
|
1186055 |
0.29 |
|
|
13 |
-- |
|
|
1971258 |
0.47 |
|
Total |
415003986 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
BUSINESS DETAILS
|
Line of Business : |
Subject is an infrastructure and Real Estate Company |
|
|
|
|
Terms : |
|
|
Selling : |
Cash, Credit |
|
|
|
|
Purchasing : |
Cash, Credit |
GENERAL INFORMATION
|
No. of Employees : |
1500 (Approximately) |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Bankers : |
|
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Facilities : |
|
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Banking
Relations : |
---- |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Auditors : |
|
||||||||||||||||||||||||||||||
|
Name : |
Thar and Company Chartered Accountants |
||||||||||||||||||||||||||||||
|
Address : |
203, Capri, anant Kanekar Marg, |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Joint Venture : |
|
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Subsidiaries : |
|
CAPITAL STRUCTURE
As on: 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
500000000 |
Equity Shares |
Rs. 10/- each |
Rs.5000.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
358842676 |
Equity Shares |
Rs. 10/-
each |
Rs.3588.427
millions |
NoteS:
(Of the above 23,12,20,595 Equity shares of Rs.10A each were
allotted as fully paid-up bonus shares by way of capitalisation of General
Reserve and Securities Premium)
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
3588.427 |
2754.927 |
2142.721 |
|
|
2] Share Warrant |
780.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
66809.008 |
41921.528 |
34229.499 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
71177.435 |
44676.455 |
36372.220 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
40517.169 |
40933.197 |
19460.766 |
|
|
2] Unsecured Loans |
0.000 |
500.000 |
11666.667 |
|
|
TOTAL BORROWING |
40517.169 |
41433.197 |
31127.433 |
|
|
DEFERRED TAX LIABILITIES |
53.332 |
24.016 |
15.121 |
|
|
|
|
|
|
|
|
TOTAL |
111747.936 |
86133.668 |
67514.774 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1807.001 |
580.348 |
526.933 |
|
|
Capital work-in-progress |
22.804 |
147.161 |
52.246 |
|
|
|
|
|
|
|
|
INVESTMENT |
5964.764 |
3029.193 |
2125.550 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
80336.624
|
64416.959
|
51028.483 |
|
|
Sundry Debtors |
2007.176
|
1653.974
|
558.314 |
|
|
Cash & Bank Balances |
7873.879
|
751.653
|
3494.007 |
|
|
Other Current Assets |
27.907
|
0.000
|
0.000 |
|
|
Loans & Advances |
22053.163
|
21850.137
|
16342.539 |
|
Total
Current Assets |
112298.749
|
88672.723
|
71423.343 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2756.046 |
3035.323 |
3043.841 |
|
|
Current Liabilities |
5266.702
|
3079.486
|
|
|
|
Provisions |
322.634
|
180.948
|
1711.439 |
|
Total
Current Liabilities |
8345.382
|
6295.757
|
6628.649 |
|
|
Net Current Assets |
103953.367
|
82376.966
|
64794.694 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
15.351 |
|
|
|
|
|
|
|
|
TOTAL |
111747.936 |
86133.668 |
67514.774 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
14919.917 |
17192.904 |
23798.689 |
|
|
|
Other Income |
1075.907 |
952.840 |
524.566 |
|
|
|
TOTAL (A) |
15995.824 |
18145.744 |
24323.255 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Increase/(Decrease) in Stock in Trade |
(391.507) |
(1373.110) |
(125.542) |
|
|
|
Increase/(Decrease) in Work in progress |
(15528.158) |
(12015.367) |
(39377.846) |
|
|
|
Transfer to Investment / Fixed assets |
(690.717) |
(61.870) |
(179.997) |
|
|
|
Cost of construction, Land and development expenses |
19147.669 |
16537.165 |
46035.510 |
|
|
|
Project Specific Interest |
4366.496 |
0.000 |
0.000 |
|
|
|
Employees, remuneration-and welfare 'expenses'' |
260.282 |
198.883 |
115.857 |
|
|
|
Administrative expenses |
638.890 |
886.014 |
430.387 |
|
|
|
Preliminary Expenses Written off |
0.000 |
15.351 |
5.117 |
|
|
|
TOTAL (B) |
7802.955 |
4187.066 |
6903.486 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
8192.869 |
13958.678 |
17419.769 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST (D) |
788.999 |
5781.850 |
1384.863 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
7403.870 |
8176.828 |
16034.906 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
51.028 |
23.562 |
13.552 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAX
(E-F) (G) |
7352.842 |
8153.266 |
16021.354 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1329.885 |
941.189 |
1917.459 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (I) |
6022.957 |
7212.077 |
14103.895 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
6054.235 |
5736.707 |
4876.320 |
|
|
Add: |
Deferred Tax Assets (F.Y. 06-07) |
0.000 |
0.000 |
0.984 |
|
|
Add: |
MAT Credit Entitlement |
0.000 |
336.604 |
0.000 |
|
|
Add: |
Excess Provision for taxation no longer required |
(56.351) |
755.554 |
0.270 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
5736.707 |
4876.320 |
|
|
|
Transfer to Debenture Redemption Reserve |
6191.600 |
2250.000 |
7125.000 |
|
|
|
Interim Dividend on Equity Shares |
0.000 |
0.000 |
420.000 |
|
|
|
Proposed Dividend on Equity Shares |
0.000 |
0.000 |
642.816 |
|
|
|
Dividend Distribution Tax |
0.000 |
0.000 |
180.626 |
|
|
|
Utilised for issue of bonus shares |
0.000 |
0.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
5829.241 |
6054.235 |
5736.707 |
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted Earnings Per Share (Rs.) |
18.23 |
30.14 |
-- |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Sales Turnover |
4509.200 |
3726.500 |
4553.500 |
5237.100 |
|
Total Expenditure |
1835.400 |
1354.300 |
1888.200 |
2681.300 |
|
PBIDT (Excl
OI) |
2673.800 |
2372.200 |
2665.300 |
2555.800 |
|
Other Income |
342.200 |
338.800 |
281.200 |
239.200 |
|
Operating
Profit |
3016.000 |
2711.000 |
2946.500 |
2795.000 |
|
Interest |
214.500 |
211.900 |
203.400 |
180.900 |
|
Exceptional
Items |
0.000 |
0.000 |
(45.000) |
0.000 |
|
PBDT |
2801.500 |
2499.100 |
2698.100 |
2614.100 |
|
Depreciation |
19.200 |
16.000 |
15.100 |
22.300 |
|
Profit
Before Tax |
2782.300 |
2483.100 |
2683.000 |
2591.800 |
|
Tax |
439.000 |
345.300 |
163.800 |
618.600 |
|
Reported PAT |
2343.300 |
2137.800 |
2519.200 |
1973.200 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
2343.300 |
2137.800 |
2519.200 |
1973.200 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
37.65 |
39.75 |
57.99 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
49.28 |
47.42 |
67.32 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.44 |
8.82 |
21.61 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.10 |
0.18 |
0.44 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.69 |
1.07 |
1.04 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
13.45 |
14.08 |
10.77 |
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF SUNDRY
CREDITORS
(Rs.
In Millions)
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors |
|
|
|
|
Total outstanding dues of micro enterprises and small enterprises and |
0.000 |
0.000 |
0.000 |
|
Total outstanding dues of creditors other than micro enterprises and
small enterprises |
2756.046 |
3035.323 |
3043.841 |
history
The company was incorporated as Housing Development and Improvement
India Private Limited under the companies act, 1956 on July 25th,
1996. On February 3rd, 2005.
The company was converted into a public limited company and on January 12th,
2005, the name of the company was changed pursuant to change in the status of
the company from private to public limited company. On August 29th,
2006, the name was changed to Housing development and Infrastructure Limited.
At the time of Incorporation, the registered office address of the company was
Karim Mahal, St. alexiuos
Road, (Off) Perry Road, Bandra (West),
Mumbai – 400 050, which was changed on June 16, 1997 to Dheeraj Apartment, P.P.
Dias Compound, Natwar Nagar road, No. 1, W.E Highway, Jogeshwari (east), Mumbai – 400 060. With effect
from April 1, 2006 it was changed to 09-01. Dheeraj Arma, anant
Kanekar Marg,
PERFORMANCE REVIEW
During the financial year 2009 10, Real Estate sector across India and particularly Mumbai Metropolitan Region witnessed strong growth across all segments Affordable housing emerged as leader among the Residential segment and revived the real estate sector across India Growing urbanisation, has led to shortfall of housing among major cities in India including Mumbai, Tapping to the needs of growing demand, HDIL launched Six Residential projects across Mumbai Metropolitan region with focus on affordability and sold approx 4,5 million sq ft of saleable area Our project Virar Residency' created landmark with more than 500 apartments being sold within few days of launch. Project execution has been our strong forte with more than 25 million sq, ft under construction and employing approx. 10,000 workforces among all our sites during the year. Company maintained its leadership in sale of Transferable Development Rights (TDR) in Mumbai Metropolitan Region.
The Company follows project completion method of accounting and accordingly financial comparison with peers in the Industry may not be accurate The Company's total income on standalone basis is Rs15995.800 millions as against Rs.18145.700 millions, Similarly, the gross operating profit on standalone basis reduced from Rs.81532.000 millions to Rs.7352.900 millions and the net profit after tax for the year is Rs.5966.600 millions as against Rs.8304.200 millions for the previous year However, the operating profit margin has improved from 44.93% to 45 97% in the current year
REVIEW OF OPERATIONS
Residential Segment
Mumbai Metropolition Region is facing more than 10 million housing units shortage in residential segment, Realising the huge demand potential the Company has launched the series of residential projects.
FUTURE OUTLOOK
Real Estate sector is poised for growth across all segments
led by increase in urbanisation across many cities in
As part of slum prevention initiative by Government of Maharashtra, your Company along with MMRDA has launched one of the largest Rental Housing projects of approximately 525 acres in Virar This project is one of the largest Public Private Partnership initiatives in India and will cater to the housing needs of more than 40,000 families in the Mumbai Metropolitan Region.
MIAL rehabilitation project phase I is close to completion and more than 20,000 families will be shifted in next 6 months to new houses at Kurla (East) and (West), and Nahur The Project has been categorised as a vital public project and will release lands for upgradation, expansion and development of Mumbai International Airport Phase II of MIAL project will commence in the next 6 months and will focus on more than 25,000 units to be constructed in the next 15 to 18 months Your Company is also exploring various opportunities to undertake slum rehabilitation projects in South Mumbai and redevelopment of old MHADA colonies in suburban Mumbai and has several projects in pipeline through its subsidiary Company.
Our sunrise venture in entertainment and leisure are poised
for rapid growth and will undertake more projects in the next 2-3 years HDIL
entertainment plans to expand its wings to other cities in
Fixed assets:-
·
· Buildings
· Office Equipments
· vehicles
· Computers
· Plant and Machinery
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
INDIAN ECONOMY AND
INDUSTRY OVERVIEW
Despite the global meltdown effect of last two years,
Economic Overview (2009-10)
- The overall GDP forecast for 2010-11 is estimated at 8.1 %.
- Soaring CPI due to increase in food prices, has undermined consumer spending. RBI has resorted to monetary tightening in an effort to curb inflationary pressure on the economy.
- Due
to improvement in the investment scenario and FDI touching USD 2 billion
in January 2010, it can be assured that
- Government has also started withdrawing the cautionary measures taken during the global crisis. In the recently announced Union Budget 2010-11, government proposed reversal of many measures as it targets to bring fiscal deficit to 5.5% in 2010-11 from 6.7% in 2009-10.
Industry Overview
Real Estate sector witnessed a complete turnaround with
signs of economic stabilisation and moderate growth in global economic
performance in second and third quarter of 2009. Property markets in
The investment environment, however, remains challenging. Private equity transactions in 2009-10 fell by over 60-70% compared to peak volumes reported in 2008-09. Activity in 2009-10 remain focused primarily towards residential, with disappointing flows into commercial properties.
Residential
The residential market that had seen a drop in demand in 2008-09, saw a revival due to economic recovery, liquidity and lower interest rates. At the same time developers started focusing on affordable and mid-segment housing where the demand still remains strong. The housing segment lead to a gradual recovery of realty sector due to the end-user interest and strong economic fundamentals. Quiet a few launches received a healthy response from the home buyers across major cities. This recovery was partly due to the fact that developers revised prices by 20-30%.
This has encouraged the institutional investors, especially private equity (PE) funds to look at new investment opportunities in the residential segment.
With the renewed momentum in the real estate sector as a whole, the year 2010-11 is expected to be a good one for the residential segment as well:
- Capital values across the cities are expected to grow in the short-term. This could however lead to a downward pressure on prices.
- Rental values are expected to remain stagnant, especially in the luxury segment. Developers are likely to remain cautious and launch new projects at attractive price.
- Most developers are expected to concentrate on affordable housing segment
Commercial
The Indian Office market did not remain unhurt by the global crisis and subsequently real estate activities in the segment witnessed a slowdown as compared to previous years. The major impact was observed in first half of the year when several projects were pulled out owing to the liquidity crisis and weak demand from the corporate sector. By end-2009-10, commercial office spaces across major cities were recorded at 51 million sq. ft. 15% lower than 2008-09.
Approximately 26 million sq. ft. absorption of commercial office space was driven by IT/ITeS and BSFI sectors. Due to caution on expansion plans, pre-commitments for future supply were recorded less than 5 million sq. ft. With a gradual revival in the economy, demand for office space is likely to increase by Q2-2010 with construction activity gaining pace.
- Approximately 46-50 million sq. ft. of office space may come up across major cities in 2010.
- Total SEZ space across major cities in 2010 is estimated to be about 12 million sq. ft.
- Rentals are likely to remain stable in the mid-term of 2010.
- Financial improvement may stimulate new project launches.
Retail
A slow-down in the economy from both consumers and retailers
lead to supply lag in the retail real estate sector. Low leasing activities and high vacancy rates
all added to the sector witnessing reduced investment interests too. By the end
of 2009-10, fresh supply of mall space across major cities in
- Approximately 20 million sq. ft. of fresh mall space is anticipated across major cities in 2010-11.
- Retailer demand likely to remain cautious in the first half of 2010-11.
- The main demand drivers are likely to be hypermarkets, multiplexes and quick service restaurants (QSR's). The Union Budget for 2010-11 promises several initiatives to reduce fiscal deficit and look towards an accelerated development of high quality physical infrastructure to sustain economic growth. Special Economic Zones (SEZ's) have too attracted significant flows of domestic and foreign investments with government committed to their growth for the year ahead.
Low cost housing is likely to witness a demand boost with the extension of interest subvention for another year.
A significant pipeline of IPO's is expected to come up by several real estate developers in 2010-11.With the current pipeline being dominated by regional players, capital raising may impact the sector well resulting in further transparency in tier II and tier III cities.
A complete market recovery. marked by revival in rents, increased absorption and reduced vacancy is likely to occur by O2-2010-11.
BUSINESS OVERVIEW
Housing Development and Infrastructure Limited (HDIL) is one
of the premier real estate development companies in
RESIDENTIAL PROJECTS
- Project Premier
Located at Kurla (West), Project Premier was launched in March- 2009. Comprising of 11 wings, there are ~ 1050 units being offered for sale. Project received tremendous response with more than 70% booking within a week
of launch. Saleable Area is approx. 1 million sq. ft.
- Project Galaxy Project Galaxy located
at
Kurla (East) was launched in April, 2009 at a price of Rs. 4,251 sq. ft. It offers 450 units comprising of 1 and 2 BHK apartments. Saleable Area is approx. 0.4 million sq. ft. project is on course of scheduled completion.
- Project Metropolis
This project was launched Rs. 7,65V sq. ft Located in March-2009 at a in one of the prime price of areas of Mumbai Suburbs- Andheri (West), Project Metropolis offers 414 units spread over 3 wings comprising of 2, 3 and 4 BHK apartments. Saleable Area is approx. 0.6 million sq. ft. The project is completely sold off.
- Project Majestic
Located at Bhandup (West), this project was launched in
October-2009. Offering 1,000 units, it was launched at a price of Rs. 5,75V sq.
ft. It offers 1,000 units for sale with — 40% of sales being done as on March
31, 2010. It offers 2 and 3 BHK apartments with an average size of 1,110 sq.
ft. Saleable Area of the project is approx. 13,00,000 sq.
- Project Harmony
Located in Goregaon (West), this project was launched recently in the month of May. Launched at a rate of Rs.8,45V sq. ft., over 95% of the project has already been sold. The average size of units offered is 1160-1180 sq. ft. Saleable Area of this project is approximately 0.65 million sq. ft.
COMMERCIAL PROJECTS
This was launched in September-2009 at the rate of Rs. 2,100/ sq. ft. offers around 1,068 units of which 90-95% has already been sold. This project is located in Virar (West). Saleable Area of this project is approximately 1.5 million sq.ft.
- Project Metropolis
Being a Lease Model, the average rent charged for this
project is around Rs. 140 sq.
- Project Harmony
Situated in Goregaon (West), this project is a sale model with approx. 75% of it already sold. Launched in the month of May-2010, it offers 163 units for sale. Saleable Area of this project is approximately 0.04 million sq. ft.
Mumbai International
Airport Limited (MIAL) Project
This project is a part of one of the largest Slum
Rehabilitation Scheme in
Entertainment
Our multiplex business is operated under the brand name "Kulraj Broadway". Currently there are three multiplexes operational –
- A three screen multiplex at Vasai having capacities
- A four screen multiplex at Kandivali having seating capacity of 636 persons and
- A six screen multiplex at Bhandup having seating capacity of 1334 persons
The Vasai multiplex and the Kandivali multiplex commenced operations in February 2008 and June 2009, respectively. The Bhandup multiplex was launched in December, 2009. All the multiplexes have gaming and food court zones.
Leisure and
Hospitality
DIL Leisure, a wholly owned subsidiary of HDIL, was created with the vision to explore opportunities in the Hospitality industry. With HDIL's legacy, HDIL Leisure intends to explore opportunities within the land banks and see exponential growth.
Key Business
Highlights 2009-2010
Juhu Project:
The first hotel project in Mumbai is at Juhu. It is proposed to be a 5 start hotel accommodating approx 250 rooms.
The operator identified and finalised for this hotel is the Hilton group and the brand is Conrad.
We have already executed a letter of Intent and are in the final stages of the Management Agreement which should be executed shortly.
We have successfully managed to secure the construction funding for this project from YES Bank.
The Key consultants have been appointed, WATG (US) is the principle architect, who is working on the concept and planning along with other core consultants already appointed.
Fine Dinning Segment:
HDIL Leisure has signed a term sheet for franchising the fine dinning concept (B-Bar).
The concept plan has been finalised and the location identified is near Juhu beach. All initial plans have been
finalised & will be submitted for approvals.
We propose to begin the operations of the restaurant within 16 months.
HDIL Leisure is in the process of acquiring stake in a 90
room budget hotel in
The formalities of the said acquisition should be completed within this year.
Future Prospects:
HDIL Leisure is currently exploring opportunities in the NCR region and identified a potential plot for development in Greater Noida. A long-term lease has already been executed with GNIDA & HDIL. HDIL Leisure will be developing and managing this project. In Mumbai the Company is currently exploring opportunities of a hotel in
the existing projects of HDIL at Versova and Kurla. HDIL is exploring the economics of unlocking its value by delinking the investments at an appropriate time.
OPPORTUNITIES AND
THREATS
The improvement in the global economic and liquidity situation coupled with more stable commodity prices, the stimulus packages by the Indian Government and various Governments globally provides an opportunity for growth for the infrastructure sector. At the same time, the real estate market has been affected by depressed prices during the year and there could be a spillover effect.
AS PER WEBSITE
Overview:
They are known as one of
Housing Development and Infrastructure Limited (HDIL) has established
itself as one of India’s premier real estate development companies, with
significant operations in the Mumbai Metropolitan Region. HDIL is a public
listed real estate company in India with shares traded on the BSE and NSE Stock
Exchanges. HDIL group has completed more than 100 million sq.ft of construction
in all verticals of real estate and has rehabilitated around 30,000 families in
last one decade.
With operations spanning every aspect of the real estate business, from
residential, commercial and retail projects, to slum rehabilitation to land
development, HDIL was ranked as India’s fastest growing real estate company by
Construction World-NICMAR in October 2007. The residential projects range from
apartment complexes to towers to townships. The commercial projects comprise
premium office spaces as well as multiplex cinemas. In retail, they focus on
building world-class shopping malls.
They also handle slum rehabilitation projects under a Government scheme
administered by the Slum Rehabilitation Authority (SRA), offering development
rights in exchange for clearing and redeveloping slum lands, while providing
replacement housing for the displaced slum dwellers.
As India’s largest slum rehabilitation company, HDIL has been awarded
the Mumbai International Airport Slum Rehabilitation project in October 2007, a
critical component of the modernisation and expansion plan for Mumbai airport
and one of the largest urban rehabilitation projects in India.
HDIL has also diversified into energy, hospitality and the development
of SEZs.
Leadership:
Mr. Rakesh
Kumar Wadhawan is Executive Chairman, founder and one of the promoters of the HDIL
Group. He has over 30 years of experience in the real estate and infrastructure
industry. He is a member of many industry organisations and has actively
participated in international housing-related seminars. His vision and
expertise has steered HDIL’s growth in residential, commercial and
infrastructure projects.
Mr. Sarang
Wadhawan is Managing Director and one of the company’s promoters. He has a MBA
from Clarks University, Worcester, U.S.A. and a B.Comm degree from Mumbai
University. Mr. Sarang Wadhawan has considerable experience in the real estate
and housing finance industry. With ambitious plans for the growth and expansion
of the company, he is actively involved in setting and executing its strategic
objectives.
Mr. Waryam
Singh is a non executive director of the company. He has over 25 years of experience
in banking, finance, civil construction and land development. He was the
chairman of Punjab and Maharashtra Co-operative Bank Limited from 1999 to 2005
and was instrumental in achieving the "Scheduled Status" for the
bank.
Mr. Ashok Kumar
Gupta is a director of the company. He is renowned for his experience in
corporate law and finance, which spans more than 25 years. He currently serves
on the board of various companies. He is a qualified Chartered Accountant and
also holds a LL.B degree from Government Law College, Mumbai.
Mr. Satya Pal
Talwar is an independent director of the company. He has more than 40 years of
experience in banking, finance and planning. He was the Deputy Governor of the
Reserve Bank of India from November 1994 to June 200 I. Prior to that, he was
also the Chairman and Managing Director of three public sector banks. He
currently serves on the board of directors of various companies. Mr. Talwar
holds B.A. and LL.B degrees. He is also a Certified Associate Member of the Indian
Institute of Bankers ("CAIIB").
Mr. Shyam
Sunder Dawra is an independent director of the company. He is a retired Indian
Administrative Service officer and has served the Government of India and the
Government of Punjab in various capacities. He retired as the Secretary
(Department of Personnel and Training), Government of India. He is presently
Chairman of the Punjab Revenue Commission and a Director of the Food
Corporation of India. Mr. Dawra has a Masters in English from Punjab University
and a Masters in Business Administration from the University of Leeds, England.
Mr. Lalit Mohan
Mehta is an independent director of the company. He is a retired Indian
Administrative Service officer. His experience in government service spans
urban affairs, planning, fiscal issues, public affairs and personnel relations.
He retired as the Secretary (Urban Development), Government of India. He holds
a B.A. degree from Punjab University and has a post graduate degree in
development studies, a course comprising aspects of economics, political
science and sociology, from the University of Bath in the United Kingdom.
Mr. Sunil
Behari Mathur is an independent director of the company. He has more than 40 years of
experience in insurance and housing finance. He was the chairman of Life
Insurance Corporation of India from August 2002 to October 2004. He is
currently on the board of directors of various companies and is also chairman
of the National Stock Exchange. He is a qualified chartered accountant. He has
also been sponsored by the United States Agency for International Development
("USAID") for a training program on housing finance at the Wharton
Business School.
Mr. Surinder
Kumar Soni is an independent director of the company and has over 40 years of
experience in the banking and finance industry. He was Chairman of the Oriental
Bank of Commerce and was appointed as the ombudsman for the banking industry by
the Reserve Bank of India, on his retirement from this post. He currently
serves on the board of directors of various companies. He has a Bachelors
degree in science and a LL.B from Delhi University. He is also a Certified
Associate of the Indian Institute of Bankers ("CAIIB").
Mr. Ramesh
Chander Kapoor is an independent director of the company. He was Chairman and Managing
Director of United Bank of India and Executive Director of Oriental Bank of
Commerce. He was appointed Ombudsman of the Reserve Bank Of India for three
years, from 1996 to 1999. He holds a B.SC degree and is a member of the CAIIB.
Mr. Raj Kumar
Aggarwal is an independent director of the company. A practising Chartered
Accountant since 1980, he has been the President of C.A. Welfare Association
and the Director of SEBI Gilts Limited, a subsidiary of State Bank of India..
Currently, he serves on the board of BOB Capital Market Limited, a subsidiary
of Bank of Baroda, and is also a member of the audit committee of the Board.
Additionally, he serves as a trustee with Canara Rebeco Mutual Fund, a joint
venture of Rebeco Group N.V. Netherlands and Canara Bank a leading Nationalised
Bank of India. He is also Chairman of the audit committee of the Trust.
PRESS RELEASE:
HDIL launches Metropolis Tower with a prestigious deal with
Future Group.
Mumbai 22, February 2010: HDIL, one of
Future Group.
Mr Sarang Wadhawan, MD, HDIL said “We are extremely pleased
to welcome Future Group into
Mr Sunil Biyani, Director, Future Group commented “HDIL and
Future group are two conglomerates that are leaders in their respective
segments. With HDIL we are assured that
About Future Group
Future Group, led by its founder and Group CEO, Mr Kishore
Biyani, is one of
Led by its flagship enterprise, Pantaloon Retail, the group
operates close to 17 million square feet of retail space in 73 cities and towns
and 65 rural locations across
retail strategy that captures almost the entire consumption
basket of Indian customers. In the lifestyle segment, the group operates
Pantaloons, a fashion retail chain and Central, a chain of seamless malls. In
the value segment, its marquee brand, Big Bazaar is a hypermarket format that
combines the look, touch and feel of Indian
bazaars with the choice and convenience of modern retail.
The group’s specialty retail formats include supermarket
chain - Food Bazaar, sportswear retailer - Planet Sports, electronics retailer
- eZone, home improvement chain -
Future Group believes in developing strong insights on
Indian consumers and building businesses based on Indian ideas, as espoused in
the group’s core value of ‘Indian-ness.’ The Group’s corporate credo is,
‘Rewrite rules, Retain values’.
About Housing Development and Infrastructure Limited
Housing Development and Infrastructure Limited (HDIL) is
among the top five listed companies in
The Company has been involved in several urban development
projects and the Mumbai International Airport Rehabilitation Project - one of
the Vital Public Infrastructure Project’s of its kind - is currently in the
advance stages of Phase I of execution.
With a significant presence in the Mumbai Metropolitan
Region, HDIL is developing projects at Pune,
Premium Lifestyle at Affordable prices: HDIL
launches ‘
• Project located at 2
kilometers from Virar railway station
• Phase 1 to include 1500 flats of 1, 2 and 3 BHK
Mumbai, January 29, 2010: Housing
Development and Infrastructure Limited (HDIL) launches
Located just 2 km from the Virar railway station, with the proposed
government flyover easing connectivity from East to West and the National
Highway, this project will have easy access to various modes of transportation
and everyday necessities like schools, colleges, hospitals, shopping complexes
and theaters.
This mega residential project will have over 3000 apartments; the first
phase of which will house over 1500 apartments with excellent infrastructure
and amenities. Its 19 wings of 7 storey each offer well planned 1, 2 and 3 BHK
apartments. The complex will consists of landscaped garden with children’s play
area and state‐of‐art clubhouse with
swimming pool. Besides being earth quake resistant, the complex will offer
intercom system and provision for fire fighting to ensure safety and security.
Generator backup will be provided for essential services in the common areas
including elevators.
Some of the amenities on offer include:
• Club House with Swimming Pool
• Landscaped Gardens with Children’s play area.
• Premium Vitrified flooring with skirting
• Designer ceramic tiles in toilets
• Exhaust fan and instant geyser in bathroom
• Intercom system and fire fighting provision
• Rain Water harvesting System
CMT REPORT (Corruption, Money Laundering and Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.54 |
|
|
1 |
Rs.70.92 |
|
Euro |
1 |
Rs.61.81 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
--- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
Yes |
|
--LITIGATION |
YES/NO |
No |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
No |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
No |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
Yes |
|
--OTHER MERIT FACTORS |
YES/NO |
Yes |
|
TOTAL |
|
51 |
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 |
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 |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.