MIRA
INFORM REPORT
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Report Date : |
28.05.2011 |
IDENTIFICATION DETAILS
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Name : |
HOUSING AND URBAN DEVELOPMENT CORPORATION LIMITED |
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Registered
Office : |
Hudco Bhawan India, Habitat Center, Lodhi Road, New Delhi 110003 |
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Country : |
India |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
25.04.1970 |
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Com. Reg. No.: |
005276 |
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Capital
Investment / Paid-up Capital : |
Rs.20019.000 millions |
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CIN No.: [Company Identification
No.] |
U74899DL1970GOI005276 |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Providing Consultancy services and Long term Finance for Housing and
Urban Development Activities |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
A (65) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavorable 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 203883472 |
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Status : |
Good |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a Government of India undertaking corporation under the
administrative control of Ministry of Housing and Urban Poverty Alleviation. It is an established company having fine track available information
indicates high financial responsibility of the company. Trade relations are
reported as fair. Business is active. Payments are reported to be usually
correct and as per commitments. The company can be considered good for normal 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.
ECGC Country Risk Classification List – April 1, 2010
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Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office : |
Hudco Bhawan India, Habitat Center, Lodhi Road, New Delhi 110003,
India |
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Tel. No.: |
91-11-24649610-23 |
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Fax No.: |
91-11-24625308 |
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E-Mail : |
DIRECTORS
AS ON 26.07.2010
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Name : |
Mr. Prasanna Kumar Mohanty |
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Designation : |
Director |
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Date of Birth/Age : |
25.02.1954 |
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Date of Appointment : |
02.01.2009 |
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Name : |
Mr. Tyagarajan Prabakaran |
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Designation : |
Director |
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Date of Birth/Age : |
04.03.1954 |
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Date of Appointment : |
29.12.2004 |
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Name : |
Mrs. Sudha Krishnan |
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Designation : |
Director |
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Date of Birth/Age : |
16.11.1960 |
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Date of Appointment : |
03.12.2009 |
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Name : |
Mr. Rajpal Singh Solanki |
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Designation : |
Director |
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Date of Birth/Age : |
02.09.1960 |
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Date of Appointment : |
07.12.2008 |
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Name : |
Mr. Dinesh Mahajan |
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Designation : |
Director |
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Date of Birth/Age : |
26.09.1950 |
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Date of Appointment : |
26.12.2007 |
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Name : |
Mr. Nirmala S Prabhavalkar |
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Designation : |
Director |
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Date of Birth/Age : |
22.06.1954 |
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Date of Appointment : |
08.04.2008 |
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Name : |
Mr. Radha Barman |
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Designation : |
Director |
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Date of Birth/Age : |
01.08.1948 |
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Date of Appointment : |
31.07.2009 |
KEY EXECUTIVES
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Name : |
Mr. Harender Verma |
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Designation : |
Secretary |
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Date of Birth/Age : |
01.06.1961 |
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Date of Appointment : |
27.06.2008 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 26.07.2010
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Names of Shareholders |
No. of Shares |
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Mr. Prasanna Kumar Mohanty |
20018993 |
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Mrs. Sudha Krishnan |
1 |
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Mr. P K Mohanty |
1 |
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Mrs. Deepti Gaur Mukerjee |
1 |
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Mr. Aniruddha Kumar |
1 |
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Mr. Vivek Nangia |
1 |
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Mr. V K Gupta |
1 |
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Mr. Ramesh Kumar |
1 |
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TOTAL
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20019000 |
AS ON 26.07.2010
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Equity Share
Breakup |
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Percentage of
Holding |
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Category |
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Government (Central and State) |
|
99.99 |
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Others |
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0.01 |
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Total
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Providing Consultancy services and Long term Finance for Housing and
Urban Development Activities |
GENERAL INFORMATION
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No. of Employees : |
Not Available |
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Financial Institute: |
IL and FS Trust Company Limited, IL and FS Financial Centreplot No C22
G Block Bandra, Kurla Comlex Bandra East, Mumbai 400051, Maharashtra, India |
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Bankers : |
Not Available |
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Facilities : |
Rs. In Millions
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Agiwal and Associates Chartered Accountant |
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Address : |
Lal Kothi 2nd Floor, 3830, Pataudi House Road (Above Bank of
Baroda), Darya Ganj, Delhi 110002, India |
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Name : |
S N Dhawan and Company Chartered Accountant |
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Address : |
C 37, Connaught Place, New Delhi 110001, India |
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Joint Ventures : |
·
Shristi Urban Infrastructure Development Limited ·
Pragati Social Infrastructure and Development
Limited ·
MCM Infrastructure Private Limited ·
Signa Infrastructure India Limited |
CAPITAL STRUCTURE
AS ON 26.07.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
25000000 |
Equity Shares |
Rs. 1000 each |
Rs.25000.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
|
|
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|
20019000 |
Equity Shares |
Rs. 1000 each |
Rs.20019.000 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
20019.000 |
20019.000 |
20019.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
30951.868 |
26659.615 |
21887.860 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
50970.868 |
46678.615 |
41906.860 |
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LOAN FUNDS |
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1] Secured Loans |
1895.273 |
1991.898 |
2083.529 |
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2] Unsecured Loans |
153309.534 |
190501.346 |
186946.308 |
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TOTAL BORROWING |
155204.807 |
192493.244 |
189029.837 |
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DEFERRED TAX LIABILITIES |
2373.607 |
2343.927 |
1633.271 |
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TOTAL |
208549.282 |
241515.786 |
232569.968 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
688.854 |
719.688 |
676.619 |
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Capital work-in-progress |
95.874 |
90.721 |
87.177 |
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INVESTMENT |
15239.849 |
20431.909 |
20625.579 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
0.000
|
0.000 |
0.000 |
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Sundry Debtors |
121.483
|
218.175 |
87.628 |
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Cash & Bank Balances |
7558.620
|
10523.863 |
7466.957 |
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Other Current Assets |
1908.029
|
2691.336 |
2872.391 |
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Loans & Advances |
193691.316
|
219532.091 |
215644.997 |
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Total
Current Assets |
203279.448
|
232965.465 |
226071.973 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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|
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|
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Sundry Creditors |
9.543
|
7.355 |
7.231 |
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Other Current Liabilities |
9153.875
|
9392.971 |
11274.677 |
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Provisions |
1591.325
|
3495.637 |
3889.575 |
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Total
Current Liabilities |
10754.743
|
12895.963 |
15171.483 |
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Net Current Assets |
192524.705
|
220069.502 |
210900.490 |
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MISCELLANEOUS EXPENSES |
0.000 |
203.966 |
280.103 |
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TOTAL |
208549.282 |
241515.786 |
232569.968 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Income from Loans, Investments, Deposits and Others |
25077.528 |
27082.457 |
26056.193 |
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Other Income |
205.937 |
49.339 |
45.744 |
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TOTAL (A) |
25283.465 |
27131.796 |
26101.937 |
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Less |
EXPENSES |
|
|
|
|
|
|
|
Personnel
Expenses |
924.836 |
757.512 |
856.749 |
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Administrative
and Other Expenses |
231.244 |
241.320 |
210.263 |
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|
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Provision on
loans |
2106.664 |
(653.460) |
2138.680 |
|
|
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Provision on
Debtors/Recoverables And Other Loans and Advances 1 |
1.382 |
1.459 |
1.087 |
|
|
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Provision on Investment |
0.000 |
1.611 |
2.195 |
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TOTAL (B) |
3264.126 |
348.442 |
3208.974 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
22019.339 |
26783.354 |
22892.963 |
|
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|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
14124.703 |
19024.495 |
17256.118 |
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|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
7894.636 |
7758.859 |
5636.845 |
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|
|
|
|
|
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|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
45.172 |
46.715 |
52.938 |
|
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|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
7849.464 |
7712.144 |
5583.907 |
|
|
|
|
|
|
|
|
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Less |
TAX (H) |
2896.371 |
3702.269 |
1846.588 |
|
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|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
4953.093 |
4009.875 |
3737.319 |
|
|
|
|
|
|
|
|
|
Add |
Transferred from
Bonds Redemption Reserve |
0.000 |
0.000 |
1221.211 |
|
|
Add |
Transferred from
Welfare Reserve |
4953.093 |
4009.875 |
23.465 |
|
|
Less |
Transferred to
Welfare Reserve |
23.620 |
2.822 |
0.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1254.726 |
1254.726 |
1254.726 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Final
Dividend |
590.761 |
452.429 |
417.596 |
|
|
|
Interim Dividend |
0.000 |
0.000 |
263.450 |
|
|
|
Dividend Tax |
98.119 |
76.890 |
115.744 |
|
|
|
Transferred to
Special Reserve |
2000.000 |
1750.000 |
1650.000 |
|
|
|
Transferred to
General Reserve |
2219.904 |
1665.740 |
2480.899 |
|
|
|
Transferred to Welfare Reserve |
22.655 |
61.994 |
54.306 |
|
|
BALANCE CARRIED
TO THE B/S |
1300.000 |
1254.726 |
1254.726 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
247.42 |
200.30 |
186.69 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
19.59
|
14.77 |
14.31 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
31.30
|
28.47 |
12.12 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.84
|
3.30 |
2.46 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.15
|
0.16 |
0.13 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.30
|
4.45 |
4.91 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
18.90
|
18.06 |
14.90 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONAL
ACHIEVEMENTS
The Company has
continued to exhibit growth in its operations and has had another year of
significant operational achievements. During the year, the Company has sanctioned
147 schemes in all for a total loan amount of Rs. 166240 millions as against
Rs. 147540 millions in the previous year. Out of the total sanctions, Rs. 27170
millions loan amount has been for housing projects, and Rs. 139070 millions has
been for various urban infrastructure schemes. The projects sanctioned cover a
wide spectrum of projects forming part of housing and urban infrastructure
portfolios. During the year, a total amount of Rs. 30980.200 millions was
released, of which Rs. 8023.200 millions was for housing projects, while Rs.
22957.000 millions was released for urban infrastructure schemes.
FUTURE OUTLOOK
With its techno
financial assistance, HUDCO has consistently played a significant role in
supporting housing and infrastructure delivery in the country. In the current
context of major programmes for housing for weaker sections and also provision
of infrastructure (both the network based as well as city based) HUDCO’s role
would continue to be important. In the ongoing JNNURM programme as well as in
the upcoming Rajiv Awas Yojana, HUDCO’s relevance is amplified both in funding
as well as extending technical assistance. HUDCO’s continued role in project
formulation, appraisal and also implementation on selective basis would
continue to increase, which would reiterate its position as a techno-financial
Institution. In the special programmes of the Government, in which emphasis is
being laid for providing and improving access to housing for the weaker
sections, HUDCO’s role would continue to increase. This would place and project
HUDCO as an Institution of eminence assisting the Government in addressing one
of the most essential needs of the society – housing with associated
infrastructure. Towards meeting the emerging challenges of the sector and
meeting the vision of the Government in respect of housing and urban
development sector, HUDCO is geared up with setting up of Strategic Business
Units (SBUs) for focussed sectoral attention. With the full implementation of
the integrated ERP solutions covering various facets of HUDCO’s activities,
which is under way at present, HUDCO is poised to meet the requirements
comprehensively.
FINANCIAL
PERFORMANCE
The Directors are
glad to report that the Company has achieved Profit before Tax and after prior
period adjustment of Rs. 7858.200 millions during the year as against Rs.
6565.000 millions in the previous year. The Net Profit stood at Rs. 4953.100
millions during the year, as against Rs. 4009.900 millions in the previous
year. The Directors are happy to report that this is the highest profit after
tax recorded by HUDCO ever. The total Reserves and Surplus stood at Rs.
30951.900 millions as on 31.03.2010.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
INDUSTRY STRUCTURE
AND DEVELOPMENTS
The financial year
2009-10 began with an uncertain outlook because of a significant drop in the
GDP growth rate during second half of the 2008-09 stemming from the sub-prime
crisis that originated in 2007 in the US. However, during the course of the
year the economy witnessed a decent recovery, especially in the industrial
sector. The GDP growth rate, which had slumped to 6.7% during 2008-09, is now
estimated to register 7.4% during 2009-10. The capital market and stock indices
too reported a smart recovery. The recovery has been the result of proactive
policy intervention by the Government in terms of stimulus measures, effective
monetary management by the RBI and inherent resilience of the Indian economy.
In the aftermath of global financial meltdown the Indian real estate sector was
in the grip of a severe slowdown. With general economic recovery setting in,
the real estate sector too witnessed resurgence in activity especially in the
affordable housing segment. Encouraged by the success of JNNURM, the Government
has launched a new scheme called Rajiv Awas Yojana (RAY), in June, 2009 with
the vision of a slum-free India that aims at encouraging States/UTs to progress
beyond JNNURM and tackle the problem of slums holistically. As in JNNURM, the
goals of RAY which are driven and incentivized by the provision of central
support for slum redevelopment and construction of affordable housing
conditional to a set of reforms necessary for urban development to become
inclusive. The Interest Subsidy Scheme for Housing the Urban Poor (ISHUP) was
launched in 2008-09 and sought to provide interest subsidy to EWS and LIG and
facilitate institutional finance to these categories. The Affordable Housing in
Partnership scheme is an important step in the direction of building
partnership between various agencies/Government/parastatals/ULBs/private
developers to face the challenge of housing. Such continued initiatives by the
Government on policy front helps keep the sector vibrant.
FIXED ASSETS:
·
Land
·
Building
·
Air-conditioned and cooler
·
Office Equipments
·
Furniture and Fixtures
·
Vehicle
·
Library Books
·
Miscellaneous Assets
CMT REPORT (Corruption, Money Laundering & 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.45.21 |
|
|
1 |
Rs.74.31 |
|
Euro |
1 |
Rs.64.40 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
65 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.