MIRA
INFORM REPORT
|
Report Date : |
07.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
HUBTOWN LIMITED (w.e.f. 15.11.2011) |
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Formerly Known
As : |
ACKRUTI CITY LIMITED |
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Registered
Office : |
Hubtown Solaris, 2nd Floor, N.S. Phadke Marg, Opposite
Telli Gully, Near Hotel Regency, Andheri (East), Mumbai – 400069, Maharashtra
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
16.02.1989 |
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Com. Reg. No.: |
11-050688 |
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Capital
Investment / Paid-up Capital : |
Rs.727.359 Millions |
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CIN No.: [Company Identification
No.] |
L45200MH1989PLC050688 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMA19170E |
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PAN No.: [Permanent Account No.] |
AAACA6101D |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
The Company is engaged in the business of Real Estate Development. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
A (62) |
|
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 64100000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having fine track. Financial
position of the company is good. Trade relations are reported as fair.
Business is active. Payments are reported to be regular and as per
commitments. The company can be considered good 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.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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|
A1 |
A1 |
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Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered/ Head
Office : |
Hubtown Solaris, 2nd Floor, N.S. Phadke Marg, Opposite
Telli Gully, Near Hotel Regency, Andheri (East), Mumbai – 400069, Maharashtra,
India |
|
Tel. No.: |
91-22-67037500/ 61238200 |
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Fax No.: |
91-22-61238333 |
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E-Mail : |
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Website : |
DIRECTORS
As on 31.03.2011
|
Name : |
Hemant M. Shah |
|
Designation : |
Executive Chairman |
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|
Name : |
D. R. Kaarthikeyan |
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Designation : |
Director |
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|
Name : |
Shailesh V. Haribhakti (Upto 11.03.2011) |
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Designation : |
Director |
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|
Name : |
P. H. Ravikumar (Upto 11.03.2011) |
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Designation : |
Director |
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Name : |
Abhijit Datta (From 16.05.2011) |
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Designation : |
Director |
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Name : |
Arvind Kumar Joshi (From 16.05.2011) |
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Designation : |
Director |
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Name : |
Shailesh H. Bathiya |
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Designation : |
Director |
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Name : |
Vyomesh M. Shah (Vimal M. Shah) |
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Designation : |
Managing Director |
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Name : |
Madhukar B. Chobe |
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Designation : |
Wholetime Director |
KEY EXECUTIVES
|
Name : |
Chetan S. Mody |
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Designation : |
Company Secretary |
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AUDIT AND COMPLIANCE COMMITTEE : |
·
Shailesh H. Bathiya, Chairman ·
D. R. Kaarthikeyan ·
Arvind Kumar Joshi * ·
Vyomesh M. Shah ·
Shailesh V. Haribhakti # ·
P. H. Ravikumar # |
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|
·
|
|
REMUNERATION COMMITTEE : |
·
Abhijit Datta * Chairman ·
D. R. Kaarthikeyan ·
Arvind Kumar Joshi * ·
Shailesh V. Haribhakti # ·
P. H. Ravikumar # |
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|
·
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·
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SHAREHOLDERS’/
INVESTORS’ GRIEVANCES COMMITTEE : |
·
Abhijit Datta * Chairman ·
Hemant M. Shah ·
Madhukar B. Chobe * ·
Shailesh H. Bathiya ** ·
Vyomesh M. Shah ** |
* - Member with effect from 16.05.2011
# - Member upto 11.03.2011
** - Member upto 16.05.2011
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2011
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
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|
59,400,000 |
81.67 |
|
|
600,000 |
0.82 |
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|
60,000,000 |
82.49 |
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|
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Total
shareholding of Promoter and Promoter Group (A) |
60,000,000 |
82.49 |
|
(B) Public
Shareholding |
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|
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|
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|
2,315 |
- |
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|
56,937 |
0.08 |
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863,953 |
1.19 |
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923,205 |
1.27 |
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5,268,509 |
7.24 |
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1,463,474 |
2.01 |
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3,563,610 |
4.90 |
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|
1,517,073 |
2.09 |
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|
500,091 |
0.69 |
|
|
784,122 |
1.08 |
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11 |
- |
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|
232,849 |
0.32 |
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|
11,812,666 |
16.24 |
|
Total Public
shareholding (B) |
12,735,871 |
17.51 |
|
Total (A)+(B) |
72,735,871 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
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|
- |
- |
|
Total
(A)+(B)+(C) |
72,735,871 |
- |
BUSINESS DETAILS
|
Line of Business : |
The Company is engaged in the business of Real Estate Development. |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
·
Canara Bank ·
Central Bank of India ·
Corporation Bank ·
Hdfc Bank Limited ·
Icici Bank Limited ·
Indian Overseas Bank ·
Kotak Mahindra Bank ·
Punjab National Bank ·
State Bank of India ·
State Bank of Patiala ·
UCO Bank ·
Union Bank of India |
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Facilities : |
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Banking
Relations : |
-- |
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Statutory Auditors 1 : |
Sudit K. Parekh and Company Chartered Accountants |
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Statutory Auditors 2 : |
Doshi Doshi and Associates Chartered Accountants |
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Internal Auditors 1
: |
Mahajan and Aibara Chartered Accountants |
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Internal Auditors 2 : |
Axis Risk Consulting Services Private Limited |
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Subsidiaries : |
·
Adhivitiya Properties Limited ·
Halitious Warehousing Limited (Formerly known as
Ackruti Warehousing Limited) ·
Arnav Gruh Limited ·
Devkrupa Build Tech Limited ·
Gujarat Akruti - TCG Biotech Limited ·
Holiac Realty Limited ·
Urvi Build Tech Limited ·
Sheshan Housing and Area Development Engineers
Limited ·
Heet Builders Private Limited (Formerly known as Vaishnavi
Builders and Developers Private Limited) ·
Vama Housing Limited ·
Vishal Nirman (India) Limited ·
Vishal Techno Commerce Limited ·
Ackruti Safeguard Systems Private Limited
(Formerly known as Ackruti Security Plates Private Limited) ·
Ackruti Campus of Research and Education Private
Limited ·
Headland Farming Private Limited (Formerly known
as Ackruti City Farming Private Limited) ·
Heddle Knowledge Private Limited (Formerly known
as Ackruti City Knowledge Private Limited) ·
Heeler Hospitality Private Limited (Formerly
known as Ackruti Guestline Private Limited) ·
Citygold Education Research Limited ·
Citygold Farming Private Limited ·
Harmony Erectors Private Limited ·
Sunmist Builders Private Limited (Formerly known
as Oracle Shelters Private Limited) ·
Nova Realty Private Limited ·
Jihant Housing Private Limited ·
ABP Realty Advisors Private Limited ·
India Development and Construction Venture
Capital Private Limited ·
Superaction Realty Private Limited ·
Yantti Buildcon Private Limited ·
Upvan Lake Resorts Private Limited ·
Merrygold Buildcon Private Limited ·
Vega Developers Private Limited (Formerly known
as Pure Gold Developers Private Limited) ·
Ackruti City Magnum Limited (w.e.f. F. Y.
2010-11) ·
Diviniti Projects Private Limited (Formerly known
as TDR Properties Private Limited) ·
Ackruti Center Infotech Limited (Subsidiary upto
the previous year) ·
Ackruti Middle East FZE (Subsidiary upto the
previous year) ·
E Commerce Magnum Solution Limited (Subsidiary
upto the previous year) ·
Pushpak Healthcare Services Private Limited |
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Associates,
where transactions have taken place : |
·
Ackruti City Bus Terminal (Ahmedabad) Private
Limited (w.e.f. F. Y. 2010-11) ·
Ackruti City Bus Terminal (Surat) Private Limited ·
Buildbyte.Com. (India) Private Limited ·
Whitebud Developers Limited (Formerly known as
Agreem Properties Limited) ·
Forefront Realty Private Limited (Formerly known
as V D Developers Private Limited) ·
Gallant Infotech Private Limited ·
Glamorous Properties Private Limited ·
Harbinger Developers Private Limited ·
Comral Realty Private Limited (Formerly known as
Kamla Shanti Realties Private Limited) ·
Pristine Developers Private Limited ·
Citywood Builders Private Limited (Formerly known
as Shree Swami Samarth Developers Private Limited) ·
Yellowcity Builders Private Limited ·
Sunstream City Private Limited (Formerly known as
Zeus Infrastructure Private Limited) ·
Joynest Premises Private Limited (Formerly known
as Zeal Ventures Private Limited) ·
Leading Work Properties Private Limited ·
16. Bigcity Developers Private Limited (Formerly
known as Nectar Developers Private Limited) |
|
|
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|
Jointly Controlled Entities : |
·
Aarti Projects and Constructions ·
Akruti Forefront JV ·
Akruti GM JV ·
Akruti Jay Chandan JV ·
Ackruti Jay Developers ·
Akruti Kailash Constructions ·
Akruti Realty Forefront Combine ·
Akruti Steelfab Corporation ·
Hiranandani Akruti JV ·
Gandhi Adhivitiya Combine (Partner M/s. Adhivitya
Properties Limited, a wholly owned subsidiary of Ackruti City ·
Limited) ·
Shreenath Realtors ·
Commercial Construction Corporation ·
DLF Ackruti Info Parks (Pune) Limited ·
Rare Townships Private Limited (Formerly known as
Infrastructure Ventures India Private Limited ) ·
Joyous Housing Limited ·
Akruti SMC JV (Co-venturer Arnav Gruh Limited, a
Wholly Owned Subsidiary of Ackruti City Limited) ·
Hoary Realty Limited (Formerly known as Chaitra
Realty Limited) (Associate during the previous year) ·
Ackruti City Bus Terminal (Vadodara) Private
Limited (Associate during the previous year) ·
Ackruti City Bus Terminal (Mehsana) Private
Limited (Associate during the previous year) ·
Ackruti City Bus Terminal (Adajan) Private
Limited (Associate during the previous year) |
|
|
|
|
Enterprises
where key managerial personnel or their relatives exercise significant
influence (where transactions have taken place) : |
·
Citygold Management Services Private Limited ·
Ackruti Safety Innovations Limited ·
Ackruti Salt Works Limited ·
Ichha Constructions Private Limited ·
Saicharan Consultancy Private Limited ·
Sanskriti Developers Private Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
125000000 |
Equity Shares |
Rs.10/- each |
Rs.1250.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
72735871 |
Equity Shares |
Rs.10/- each |
Rs.727.359 Millions |
|
|
|
|
|
[Of the above,
58500000 shares allotted as fully paid-up bonus shares, by way of capitalisation
of General Reserve and Surplus in Profit and Loss Account.]
[During the
previous year the Company issued 6035871 Equity Shares of Rs.10/- each under
Qualified Institutional Placement (QIP)]
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
727.359 |
727.359 |
667.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
15308.057 |
13805.280 |
9668.237 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
16035.416 |
14532.639 |
10335.237 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
13255.675 |
8234.327 |
8018.063 |
|
|
2] Unsecured Loans |
2485.129 |
1745.216 |
2008.432 |
|
|
TOTAL BORROWING |
15740.804 |
9979.543 |
10026.495 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
31776.220 |
24512.182 |
20361.732 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
691.478 |
150.934 |
181.636 |
|
|
Capital work-in-progress |
155.586 |
12.554 |
38.962 |
|
|
|
|
|
|
|
|
INVESTMENT |
5282.359 |
5011.703 |
4885.789 |
|
|
DEFERREX TAX ASSETS |
47.781 |
51.052 |
103.704 |
|
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|
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|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
5491.890
|
5178.011 |
3270.032 |
|
|
Sundry Debtors |
1506.989
|
787.041 |
4512.981 |
|
|
Cash & Bank Balances |
713.797
|
792.645 |
47.433 |
|
|
Other Current Assets |
2531.483
|
1842.372 |
1192.252 |
|
|
Loans & Advances |
17967.813
|
12842.168 |
8044.508 |
|
Total
Current Assets |
28211.972
|
21442.237 |
17067.206 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
986.413
|
477.387 |
1140.576 |
|
|
Other Current Liabilities |
1410.317
|
937.268 |
535.955 |
|
|
Provisions |
216.226
|
741.643 |
239.034 |
|
Total
Current Liabilities |
2612.956
|
2156.298 |
1915.565 |
|
|
Net Current Assets |
25599.016
|
19285.939 |
15151.641 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
31776.220 |
24512.182 |
20361.732 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales and Income from Operations |
2877.757 |
4410.323 |
3995.574 |
|
|
|
Surplus on Sale
of Interest in Project executed through Subsidiary |
0.000 |
0.000 |
376.372 |
|
|
|
Share of Profit
from Joint Ventures and Partnership Firms (Net) |
1381.618 |
409.879 |
0.220 |
|
|
|
Other Income |
491.974 |
320.058 |
335.516 |
|
|
|
TOTAL (A) |
4751.349 |
5140.260 |
4707.682 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Construction / Development |
1812.576 |
2980.396 |
1692.116 |
|
|
|
(Increase) / Decrease in Inventories |
(1048.403) |
(1907.978) |
(1504.872) |
|
|
|
Employment Cost |
199.026 |
121.447 |
103.205 |
|
|
|
Administrative,
Selling and Other Expenses |
558.456 |
332.536 |
356.131 |
|
|
|
TOTAL (B) |
1521.655 |
1526.401 |
646.580 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3229.694 |
3613.859 |
4061.102 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1624.576 |
1196.846 |
1087.235 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1605.118 |
2417.013 |
2973.867 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
48.391 |
31.068 |
40.515 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1556.727 |
2385.945 |
2933.352 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
47.036 |
620.783 |
230.874 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H)
(I) |
1509.691 |
1765.162 |
2702.478 |
|
|
|
|
|
|
|
|
|
Add/ (Less) |
Short Provision
for Taxation in respect of earlier year |
202.877 |
(27.528) |
(67.723) |
|
|
Add |
Prior Period Adjustments (Net) |
2.250 |
0.314 |
3.042 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
5970.668 |
5083.206 |
2523.445 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Equity Dividend |
181.840 |
363.679 |
66.700 |
|
|
|
Tax on Proposed Dividend |
30.201 |
61.807 |
11.336 |
|
|
|
Debenture Redemption Reserve |
747.500 |
250.000 |
0.000 |
|
|
|
General Reserve |
189.000 |
175.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
6536.945 |
5970.668 |
5083.206 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
NA |
6.234 |
13.788 |
|
|
TOTAL IMPORTS |
NA |
6.234 |
13.788 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
23.58 |
24.81 |
39.55 |
|
QUARTERLY RESULTS
|
PARTICULARS |
Jun 2011 |
Sep 2011 |
Dec 2011 |
|
Type |
UnAudited |
UnAudited |
UnAudited |
|
Net Sales |
686.500 |
604.700 |
888.100 |
|
Total Expenditure |
109.900 |
164.100 |
271.100 |
|
PBIDT (Excl OI) |
576.600 |
440.600 |
617.000 |
|
Other Income |
175.400 |
181.300 |
149.600 |
|
Operating Profit |
752.000 |
621.900 |
766.600 |
|
Interest |
517.100 |
527.800 |
522.600 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
234.900 |
94.100 |
244.000 |
|
Depreciation |
18.600 |
18.500 |
18.000 |
|
Profit Before Tax |
216.300 |
75.600 |
226.000 |
|
Tax |
43.800 |
16.000 |
43.600 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
172.500 |
59.600 |
182.400 |
|
Extraordinary Items |
0.000 |
0.000 |
(35.000) |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
172.500 |
59.600 |
147.400 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
31.77
|
34.34 |
57.41 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
54.09
|
54.09 |
73.42 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.39
|
11.05 |
17.00 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.09
|
0.16 |
0.28 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.14
|
0.84 |
1.16 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
10.80
|
9.94 |
8.91 |
LOCAL AGENCY FURTHER INFORMATION
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
No |
|
5) Type of Business |
No |
|
6) Line of Business |
Yes |
|
7) Promoter’s background |
-- |
|
8) No. of employees |
Yes |
|
9) Name of person contacted |
No |
|
10) Designation of contact person |
No |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
No |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
Yes |
|
20) Export / Import details (if applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
No |
OPERATIONAL
HIGHLIGHTS:
The Company has adopted an unique growth oriented and pragmatic business
model of development of real estate projects through its subsidiaries, joint
ventures, associates, partnership firms and public private partnership with
strategic investors. The benefits accruing from this business model are:
• highly capital efficient and allows the Company to grow the business
without tying up large amount of capital in land purchases.
• for any given amount of capital it allows the Company to do more
projects than would otherwise have been possible.
• leveraging of development capabilities and resources.
• creation of enhanced pool of construction and marketing expertise.
• greater profitability and significantly reduces the exposure to risks
in any one project.
• facilitates expansion in additional geographical areas.
• stable source of revenue during tough economic times.
The merits of the business model is reflected in the consolidated
results of the Company for the year, which witnessed a growth of 15.41 % at
Rs.7133.100 Millions as against Rs.6180.900 Millions in the previous year. The
consolidated net profit stood at Rs.1761.800 Millions as against Rs.1649.100
Millions in the previous year.
On a standalone basis the total income of the Company was lower by 7.53%
at Rs.4753.600 Millions as against Rs.5140.600 Millions in the previous year A
significant increase in cost of construction has had the impact on Profit
before Tax which stood at Rs.1559.000 Millions as against Rs.2386.200 Millions
in the previous year. The net profit was Rs.1714.800 Millions as against
Rs.1737.900 Millions in the previous year.
Further, based on the business model adopted by the Company, the
increase in loans and advances represents substantial investments by the Company
in its subsidiaries, associates, joint ventures, partnerships and other
entities towards growing the business to drive higher profits in future and
reflects the management’s confidence towards strong business growth.
The management has always endeavoured to time the real estate cycle
during downturn, which has resulted in acquisition of land bank at lower
valuation, which will provide stable pipeline of projects in the near future.
The Company has initiated steps for sustaining growth through cost optimization,
process improvement and efficient management of working capital. The Company is
also consolidating on the initiatives taken in previous few quarters.
MANAGEMENT
DISCUSSION AND ANALYSIS
THE BUSINESS:
The Company is one of the leading real estate development companies in
India and currently operates both - on its own and through its subsidiaries /
joint ventures / associate companies, partnerships firms and public private
partnerships encompassing the construction and development of Residential and
Commercial Premises, SEZs, Biotech Park and Build Operate Transfer (BOT)
Projects. Operations of the Company include identification of projects,
acquisition of land / development rights, architectural and engineering
designing, project management including obtaining necessary approvals,
planning, execution and marketing of the projects.
The Company has a Western India focus with presence in major cities such
as Mumbai, Thane, Pune, Surat, Ahmedabad, Vadodara, and Mehsana and in
Bengaluru in the South.
The Company’s presence in Mumbai is well distributed amongst western
suburbs, eastern suburbs, the island city and Mumbai Metropolitan Region (MMR).
Tools of innovation are employed for any new project / marketing
initiative, the purpose being to constantly stay ahead in terms of ideas.
OVERVIEW OF THE
COMPANY’S PROJECTS
Residential:
Ongoing Projects:
Ackruti Sunmist - Andheri (East)
Ackruti Greenwoods – Thane
Ackruti Countrywoods – Kondhwa, Pune
Ackruti Shikhar – Andheri (East)
Ackruti Vedant – Sion (East)
Ackruti Jewell – Andheri (West)
Ackruti Gardenia – Mira Road
Ackruti Harmonisium – Matunga (East)
Rising City – Ghatkopar Mankhurd Link Road (ppp*)
Forthcoming launches:
Ackruti Neuvo – Chembur (ppp*)
Ackruti Realms – Hughes Road
Ackruti Monte Metro – Peddar Road
Ackruti Diviniti – Thane
Ackruti Countrywoods Phase – II – Kondhwa, Pune
Commercial:
Ongoing Projects
Ackruti Solaris – Andheri (East)
Forthcoming
Launches:
Gujarat State Road Transport Corporation Bus Terminal Projects –
Ahmedabad; Mehsana; Vadodara and Surat (ppp*)
ppp*-Public Private Partnership
ECONOMIC OVERVIEW:
In the last fiscal, the global recovery has evolved better than expected
but in many economies the strength of the rebound has been moderate given the
severity of the recession. However, the downside risks remain elevated and
remain concentrated in advanced economies. Most advanced economies and a few
emerging economies still face major adjustments including the need to
strengthen household balance sheets, stabilise and subsequently reduce high
public debt, and repair and reform their financial sectors. By contrast, in
many emerging and developing economies prudent policies, implemented partly in
response to earlier crisis and strong internal dynamics, have contributed to a
significantly improved medium-term growth outlook.
INDIAN ECONOMY:
India is reckoned as one of the fastest growing economies of the world
and owing to its inherent advantages of a large consumer base, raw material resources,
world class manufacturing facilities, competitively priced talent base, a
comprehensive legal and tax system and a strong operating financial system has
become a preferred investment and business destination.
Robust growth and steady fiscal consolidation
have been the hallmarks of the Indian economy in the year 2010-2011 so far. The
growth rate has been 8.6 % in 2010 -2011 and is expected to be around 9 % in
the current fiscal. However, food inflation, higher commodity prices and
volatility in global commodity markets have been a cause of concern
underscoring the need for fiscal consolidation and stronger reserves.
INDUSTRY OVERVIEW:
The real estate sector is at present, playing
an integral role in the Indian economy. The sector has demonstrated
unparalleled growth over the years and currently accounts for almost five
percent of the country’s total gross domestic product (GDP) and is projected to
increase enormously, year-on-year.
Thanks to the rapid growth of the country’s economy,
mainly after globalisation, real estate sector has witnessed tremendous change
in the last decade. Increase in the affluent and aspiring population and
favourable demographics have seen a rise in demand for homes in metros as well
as many Tier I, Tier II and Tier III cities across the country.
The Housing and Real Estate Sector garnered
FDI worth US $ 1048 million during the period April 2010 to January 2011.
OPPORTUNITIES:
The pan-India residential demand for the
period 2010-2014 is estimated to be approximately 4.25 million units of which
mid-range and affordable sectors continue to capture a significant share of 70
%, while demand for office space is estimated to be around 240 million sq. ft.
Hospitality sector is expected to see demand of approximately 78 million room
nights in the same period.
- Residential
About 60 % of total estimated pan India
residential demand by 2014 is expected to be spread across India’s top seven
cities (Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, NCR and Pune) with Tier
I metropolitan cities expected to account for approximately 40 % of total
demand. While the housing sector has recorded a spike in demand over the last
two to three quarters, supply largely remains constrained owing to the slow
pace of construction activity during 2009-2010.
- Commercial
The Pan India office space demand over the
next five years (2010-2014) is estimated to be approximately 240 million sq.
ft. The overall demand for commercial office space will be subdued in
comparison to the supply which is estimated to be approximately 400 million sq.
ft. during 2010-2014, implying caution and the need for quality supply at the
right price.
- Hospitality
The demand for the hospitality sector is
expected to see a surge and is expected to be approximately 78 million nights
between 2010-2014 among the top 7 cities. In major metropolitan cities the
luxurious serviced apartments sector and new high end brands are making an
entry with an objective of tapping niche market segments.
Redevelopment – the next BIG OPPORTUNITY
The ‘Rajiv Awas Yojana’ (RAY) announced by the
Government of India, aims at creating a slum-free India by according property
rights to slum dwellers. Just like the Jawaharlal Nehru National Urban Renewal
Mission (JNNURM), cities will receive central support under the RAY scheme,
subject to the condition that they provide security of tenure through
entitlement to slum-dwellers.
With the slum population in Mumbai alone going
up from 58 lakh in 2001 to 70 lakh in 2011, Maharashtra leads the country in
slum population. The Slum Rehabilitation Authority has already constructed 1.47
lakh tenements with another 1.70 lakh under construction in over 400 slum
projects, involving over 250,000 slum dwellers. With the state government in
Maharashtra aiming to make Mumbai city slum-free by 2015, the momentum to
redevelop slums will increase.
The Company being a pioneer in slum
rehabilitation, sees RAY as an opportunity to meet twin obligations – business
and corporate social responsibility.
Redevelopment will be the key word in coming
years as the supply of vacant land is getting exhausted. Given that the real
estate contributes considerably to the GDP, redevelopment will have a cascading
effect on the economic activity and generate significant amount of funds for
the state governments.
FUTURE OUTLOOK:
While the overall long term prospects of the
real estate sector continues to remain positive, the year 2011-12 is likely to
be a challenging one for realty developers, after a year which has seen sustained
momentum in property prices. The high interest rates are impacting
affordability and delaying decision making, and all of this is not allowing
demand to get converted into sales since last two quarters of the last fiscal.
The liquidity situation in the market, availability and cost of finance for
business and home loans are also going to be critical factors in the current
fiscal.
Factors like rising disposable income, rapidly
growing middle class and youth population, fiscal incentives on both interest
and principal payments for housing loans, increased urbanization and
nuclearisation, changing demographics and heightened aspirations towards a
better quality of life will be the key drivers for the demand for housing.
On the regulatory front, the Land Title Bill
and Real Estate (Regulation of Development) Act could have a significant impact
on the way business is conducted. While the Land Title Bill would ensure that
there is clear ownership record and transparency through development process,
minimal legal issues and faster completion, the Real Estate (Regulation of
Development) Act is under revision to create a workable framework aimed at
providing a control mechanism that will ultimately benefit the real estate
sector.
The finance minister’s recently announced
budgetary support in the form of extension of the scheme of interest subvention
of 1 % on housing loan upto Rs.1.500 Millions will also act as a catalyst for
boosting growth. The fundamentals of the Sector are good and its growth should
continue in the foreseeable future.
Cost-cutting and control, superior
methodologies and innovative processes and systems and execution focus are an
integral part of the Company’s strategy. The Company is well geared up to
develop strategies to respond effectively to the challenges and opportunities
ahead and continue its journey on the growth path. The outlook for the Company
is positive.
STANDALONE
UNAUDITED FINANCIAL RESULTS FOR THE THIRD QUARTER AND NINE MONTHS ENDED
DECEMBER 31, 2011
|
S.
No. |
Particulars |
Unaudited |
Unaudited |
|
|
|
|
Quarter ended |
Nine
Months ended |
|
|
|
|
31.12.2011 |
30.09.2011 |
31.12.2011 |
|
1. |
Revenue |
|
|
|
|
|
a.
Net Sales / Income from Operations |
881.200 |
601.700 |
2137.700 |
|
|
b.
Other Operating Income |
6.900 |
3.000 |
41.500 |
|
|
Total
Income (a+b) |
888.100 |
604.700 |
2179.200 |
|
2. |
Expenditure |
|
|
|
|
|
a.
(Increase) / decrease in stock-in-trade and work-in-progress |
(741.500) |
(473.200) |
(1787.200) |
|
|
b.
Cost of construction/ development |
389.800 |
447.900 |
1398.200 |
|
|
c.
Employees Cost |
45.800 |
73.600 |
181.600 |
|
|
d.
Depreciation and Amortisation |
18.000 |
18.500 |
55.100 |
|
|
e.
Other Expenditure |
577.000 |
115.800 |
752.400 |
|
|
Total
Expenditure (a+b+c+d+e) |
289.100 |
182.600 |
600.000 |
|
3. |
Profit
from Operations before Other Income,
Interest & Exceptional Items (1-2) |
599.000 |
422.100 |
1579.100 |
|
4. |
Other
Income |
149.600 |
181.300 |
506.300 |
|
5. |
Profit
before Interest and Exceptional Items (3+4) |
748.600 |
603.400 |
2085.400 |
|
6. |
Interest and finance charges |
522.600 |
527.800 |
1567.500 |
|
7. |
Profit
after Interest but before Exceptional Items (5-6) |
226.000 |
75.600 |
517.900 |
|
8. |
Exceptional
Items |
-- |
-- |
-- |
|
9. |
Profit from Ordinary Activities before tax (7+8) |
226.000 |
75.600 |
517.900 |
|
10a. |
Tax
Expense |
43.600 |
14.600 |
102.000 |
|
10b. |
Short
/ (Excess) provision for taxation in respect of earlier year |
|
1.400 |
1.400 |
|
11. |
Net
Profit from Ordinary Activities after tax (9-10a-10b) |
182.400 |
59.600 |
414.500 |
|
12. |
Extraordinary
Items (net of tax expense) |
35.000 |
-- |
35.000 |
|
13. |
Net
Profit for the period (11-12) |
147.400 |
59.600 |
379.500 |
|
14. |
Paid-up
equity share capital (face value of Rs.10per share) |
727.400 |
727.400 |
727.400 |
|
15 |
Reserves
excluding Revaluation Reserves as per
balance sheet of previous
accounting year |
-- |
-- |
-- |
|
16. |
Earning
per Share (EPS) |
|
|
|
|
|
Basic
and Diluted EPS before extraordinary items (not annualized) (Rs.) |
2.51 |
0.82 |
5.70 |
|
|
Basic
and Diluted EPS after extraordinary items (not annualized) (Rs.) |
2.03 |
0.82 |
5.22 |
|
17. |
Public
Shareholding |
|
|
|
|
|
- Number of shares |
12735871 |
12735871 |
12735871 |
|
|
-
Percentage of shareholding |
17.51% |
17.51% |
17.51% |
|
18. |
Promoter
and Promoter Group shareholding |
|
|
|
|
|
a. Pledged/Encumbered |
|
|
|
|
|
- number
of shares |
38654500 |
43754500 |
38654500 |
|
|
- percentage of shares (as a % of the total
shareholding of promoter and promoter group) |
64.42% |
72.92% |
64.42% |
|
|
-
percentage of share (as a % of the total share capital of the Company) |
53.14% |
60.16% |
53.14% |
|
|
b. Non-encumbered |
|
|
|
|
|
- number of shares |
21345500 |
16245500 |
21345500 |
|
|
- percentage
of shares (as a % of the total shareholding of promoter and promoter group) |
35.58% |
27.08% |
35.58% |
|
|
- percentage of share (as a % of the
total share capital of the Company) |
29.35% |
22.33% |
29.35% |
Notes:
1. The
above financial results were reviewed by the Audit and Compliance Committee and
thereafter approved by the Board of Directors at their respective meetings held
on February 14, 2011. The Statutory Auditors have carried out a limited review
of the Unaudited Financial Results for the third quarter ended December 31,
2011. Both, the standalone and consolidated financial results are being
submitted to the Bombay Stock Exchange Limited (BSE) and National Stock
Exchange of India Limited (NSE) and made available on the Company's website - www.hubtown.co.in
and on the websites of BSE (www.bseindia.com) and
NSE (www.nseindia.com).
2. The
Company operates in the business of real estate development which as per
Accounting Standard AS - 17 is presently its only reportable business segment.
The Company is primarily operating in India, which is considered as a single
geographical segment.
3.
During the quarter: the Company sold its entire holding of (i) 18,82,353 equity
shares of City Corporation Limited; (ii) 6,59,997 equity shares in DLF Ackruti
Info Parks (Pune) Limited, (DAIPL) consequent to which DAIPL ceased to be a
join:ly controlled entity of the Company; (iii) 50,000 equity shares in each of
Ackruti Campus of Research and EduGation Private Limited (ACREPL), Harmony
Erectors Private Limited (HEPL), Sunmist Builders Private Limited. (SBPL), Nova
Realty Limited (NRL), Jihant Housing Private Limited (JHPL) and Superaction
Realty Private Limited (SRPL), consequent to which, ACREPL, HEPL, SBPL, NRL,
JHPL and SRPL respectively ceased to be subsidiaries of the Company; (iv) 2,600
equity shares in Forefront Realty Private Limited (FRPL) and 5,000 equity
shares in Bigcity Developers Private Limited (BDPL), consequent to which, FRPL
and BDPL respectively ceased to be associates of the Company; and (v) acquired
5,000 Class 'A' equity shares and 10,000 Class 'C' equity shares of Ackruti
City Bus Terminal (Ahmedabad) Private Limited (ACBTAPL), consequent to which
ACBTPL became an associate of the Company.
4.
During the quarter, a major fire took place at the registered office of the Company
on December 23, 2011, causing extensive damage and destruction of the records,
documents and assets of the Company.
However,
the financial accounting records of the Company were intact. The Company is in
process of obtaining duplicate copies of invoices, bills, etc. from suppliers /
vendors. The assets of the Company at its Registered Office, which were
destroyed in the fire, were insured and the Company is in the process of filing
claims for losses with the insurer. On account of pending approval of the
claims from the insurer, the Company has provided for losses to the extent of
Rs.35.000 Millions on a prudent basis.
5.
Inventory carrying costs include interest and other finance charges as per the
principles of Accounting Standard AS-16 (Borrowing Costs).
6.
Status of investors' complaints for the quarter ended December 31, 2011:
Opening: Nil; Received: 1; Resolved:1 ; Closing: Nil.
7.
Previous period / year figures, have been regrouped / reclassified, wherever
necessary, to conform to those of the current period.
CONTINGENT LIABILITIES (NOT PROVIDED FOR) (As on 31.03.2011):
(A) Claims against
the Company, not acknowledged as debts on account of: -
1. Income Tax
matters under appeal - Rs.607.837 Millions
Service Tax matter
under appeal (Thru Maharashtra Chamber of Housing Industry) – Rs.29.268
Millions
2. Demand notice
issued by Brihanmumbai Municipal Corporation for Land Under Construction
charges (property tax). – Rs.54.714
Millions
3. Petition filed
against the Company, under the Maharashtra Slum Area (Improvement, Clearance
and Redevelopment) Act, 1971, in relation to a Project. Rs. Nil
4. Development
Permission from Forest Department – Rs.15.622 Millions
(B) On account of
corporate guarantees issued by the Company to Bankers on behalf of other
companies and joint ventures for facilities availed by them (amount outstanding
there against.) – Rs.7129.712 Millions
Note: Further interest / penalty that may accrue
on original demands are not ascertainable, at present. The Company has taken
necessary steps to protect its position with respect to the above referred
claims, which in its opinion, based on professional / legal advice, are not
sustainable.
FIXED ASSETS
·
Freehold Land
·
Leasehold
Land
·
Commercial
Premises
·
Computer
·
Office
Equipment
·
Furniture and
Fixtures
·
Vehicles
·
Generator
·
Mivan System
·
QC Laboratory
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.51.05 |
|
|
1 |
Rs.81.09 |
|
Euro |
1 |
Rs.67.39 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
62 |
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.