MIRA INFORM REPORT

 

 

Report Date :

11.04.2012

 

IDENTIFICATION DETAILS

 

Name :

KAMANWALA HOUSING CONSTRUCTION LIMITED

 

 

Registered Office :

405 and 406, New Udyog Mandir, 2, Mogul Lane, Mahim,  Mumbai – 400016

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

12.04.1984

 

 

Com. Reg. No.:

11-032655

 

 

Capital Investment/ Paid-up Capital:

Rs.140.932 Millions

 

 

CIN No.:

[Company Identification No.]

L65990MH1984PLC032655

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMK08791G

 

 

PAN No.:

[Permanent Account No.]

AAACK4324L

 

 

Legal Form :

A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.

 

 

Line of Business :

Construction of Residential Buildings and Commercial Buildings

 

 

No. of Employees:

36 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (45)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 3245000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track. There appears some dip in the turnover and profitability of the company in current year. However, 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 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.

 

 

ECGC Country Risk Classification List – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

LOCATIONS

 

Registered Office :

405 and  406, New Udyog Madhir, Mogul Lane, Mahim, Mumbai – 400016, India

Tel. No.:

91-22-2445 6029/2445 2559/2447 4983

Fax No.:

Not Available

E-Mail :

kamanwala@gmail.com

khdl@mtnl.net.in

info@kamanvala.in

 

DIRECTORS

 

(AS ON 31.03.2011)

 

Name :

Mr. B.R. Maheshwari

Designation :

Chairman

Date of Birth/Age :

27.11.1930

Qualification :

B.Com., F.C.A.

Date of Appointment :

12.04.1984

 

 

Name :

Mr. M.L. Gupta

Designation :

Vice- Chairman and Director

 

 

Name :

Mr. Jaipan Jain

Designation :

Whole - time Director

 

 

Name :

Mr. Atul Jain

Designation :

Whole - time Director

 

 

Name :

Mr. Tarun jain

Designation :

Whole - time Director

 

 

Name :

Mr. Amit Jain

Designation :

Whole - time Director

 

 

Name :

Mrs. Pushpa Jain

Designation :

Whole - time Director

 

 

Name :

Mr. Bhanwarlal D. Jogani

Designation :

Director

 

 

Name :

Mr. Ramesh J. Patel

Designation :

Director

Date of Birth/Age :

09.03.1939

Qualification :

B.Com.

Date of Appointment :

12.04.1984

 

 

Name :

Mr. Pankaj R. Majithia

Designation :

Director

Date of Birth/Age :

01.03.1955

Qualification :

F.C.A. & A.C.S.

Date of Appointment :

12.05.2011

 

 

Name :

Mrs. Shoba Jain

Designation :

Director

Date of Birth/Age :

07.05.1945

Qualification :

B.A. (Hons.)

Date of Appointment :

24.04.2008

 

 

Name :

Mr. Sorabh Gupta

Designation :

Director

Date of Birth/Age :

24.12.1973

Qualification :

B.E. (Telecom), M.S. (Telecom)

Date of Appointment :

24.04.2008

 

 

 

 

SHAREHOLDING PATTERN

 

(AS ON 31.12.2011)

 

Category of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals/Hindu Undivided Family

4924996

34.95

Bodies corporate

1443800

10.24

Sub Total

6368796

45.19

(2) Foreign

 

 

Total Shareholding of Promoter and Promoter Group (A)

6368796

45.19

 

 

 

(B) Public Shareholding

 

 

(1) Institutions

 

 

Venture Capital

400

-

Sub Total

400

-

(2) Non- Institutions

 

 

Bodies Corporate

2376383

16.86

 

 

 

Individuals

 

 

Individual shareholders holding nominal capital up to Rs. 0.100 Million

2952698

20.95

Individual shareholders holding nominal capital in excess of Rs. 0.100 Million

2340634

16.61

 

 

 

Any Other (Specify)

54249

0.38

 

 

 

Clearing Members

6.697

0.05

Non Resident Indians

47552

0.34

 

 

 

Sub Total

7723964

54.81

 

 

 

Total Public Share holding (B)

7724364

54.81

 

 

 

Total (A)+(B)

14093160

100.00

 

 

 

(C) Shares held by Custodians and against which Depositary Receipts have been issued

 

 

(1) Promoter and Promoter Group

-

-

(2) Public

-

-

 

 

 

Sub Total

-

-

 

 

 

Total (A)+(B)+(C)

14093160

100.00

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

Construction of Residential Buildings and Commercial Buildings

 

 

 

GENERAL INFORMATION

 

No. of Employees :

36 (Approximately)

 

 

Bankers :

·         Indian Overseas Bank

·         Oriental Bank of Commerce

·         Corporation Bank

 

 

Facilities :

SECURED LOAN

31.03.2011

Rs. In Millions

31.03.2010

Rs. In Millions

Cash Credit

0.000

90.318

Additional – Cash Credit

0.000

48.930

Additional – Corporate Loan (Due within one year ` Nil)

101.215

0.000

Corporate Working Capital (Repayable on or before 31.03.2011)...

79.775

0.000

Term Loan (Due within one year ` Nil)

 

(Above Loans are secured by Mortgage of BKC Kole  Kalyan Project Land and Construction thereon including stock & receivables of the projects and construction of office premises thereon)

101.135

0.000

LOAN FUNDS

 

 

Oriental Bank of Commerce

 

 

Demand Loan (Repayable on before 31.03.2012)

186.433

150.472

Term Loan (Repayable on before 30.09.2011)

(Above Loan is secured by Equitable Mortgage over the leasehold rights on plot of land of Turbhe, Navi Mumbai and on structure proposed to be constructed thereon)

82.097

50.985

Demand Loan

(Above Loan is secured by Equitable Mortgage over the leasehold rights on plot of land of Turbhe, Navi Mumbai and on structure proposed to be constructed thereon)

0.000

82.700

Punjab National Bank

 

 

Term Loan

[Above Loan is secured by Equitable Mortgage of Land and Building constructed on CTS No. G264 and 265 of Village Bandra, Santacruz (West)]

0.000

148.664

Cash Credit

[Above Loan is secured by Hypothecation of construction materials, Receivables, stock of WIP of the building constructed on CTS No. G264 and 265 of Village Bandra, Santacruz (West)]

(All above loans are also Secured by the Personal Guarantee of the Managing Director and all the Whole-time Directors)

0.000

23.273

ICICI Bank Limited - Car Loan

1.215

1.457

(Secured by hypothecation of respective vehicle)

0.242

0.411

Total

552.112

597.210

 

 

 

Unsecured Loans:

 

 

Inter-Corporate Deposits (Due wihtin one year ` Rs.111.007 Millions/- and Previous Year Rs 138.460 Millions-)..

111.007

138.460

Loans From Directors & their Relatives (Due within one year 241.626/-MIllions P.Y. ` 136.051Millions-)

241.626

136.232

 

352.633

274.692

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

 Mittal and Associates

Chartered Accountant

 

 

Advocates:

·         Mr. Mukesh Jain, Mumbai

·         Mrs. S.S Ayyar, Mumbai

Associate :

·          Attar Construction Company Private limited

·          Attar Construction Private Limited

·          A.S. Jain & Sons (Prop. Concern of Jaipal Jain)

·          Hatimi Steels (Prop. Concern of Amit)

     

 

 

Joint Venture:

·          Kamanwala Lakshachandi Today Developers

·          Kamanwala Lakshachandi Today Construction

·         Prajay Kamanwala Developers

    

 

 

 

CAPITAL STRUCTURE

 

(AS ON 31.03.2011)

 

Authorised Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

2,00,00,000

Equity Share

Rs.10/- each

Rs.200.000 Millions

 

 

 

 

 

Issued,

No. of Shares

Type

Value

Amount

 

 

 

 

1,42,05,580

Equity Share

Rs.10/- each

Rs.142.055 Millions

 

 

 

 

 

Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1,40,93,160

Equity Share

Rs.10/- each

Rs.140.932 Millions

 

 

 

 

 

(1) O f the above, 55,500 Equity Shares of Rs.10/- each were allotted as fully paid-up pursuant to contracts without payments being received in cash.

 

(2) 50,000 Equity Shares of Rs10/- each were allotted as fully paid-up to the Shareholders of the erstwhile Shree Saibaba Castings Private Limited on its Amalgamation with the Company for consideration other than cash.

 

(3) 6, 80,000 Equity Shares of Rs10/- each were issued as fully paid-up to the Shareholders of the erstwhile Doongursee Diamond Tools Limited on its Amalgamation with the Company for consideration other than cash.

 

(4) 70,46,580 Equity Shares of Rs10/- each were issued as fully paid up Bonus Shares on 1:1 basis to the Shareholders by capitalisation of Securities Premium Accounts

 

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

140.932

140.931

140.932

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

670.232

646.861

610.652

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

811.164

787.792

751.584

LOAN FUNDS

 

 

 

1] Secured Loans

552.112

597.210

929.759

2] Unsecured Loans

352.633

274.693

277.105

TOTAL BORROWING

904.745

871.903

1206.864

DEFERRED TAX LIABILITIES

9.125

9.036

8.948

 

 

 

 

TOTAL

1725.034

1668.731

1967.396

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

21.538

20.233

21.189

Capital work-in-progress

 

 

 

 

 

 

 

INVESTMENT

283.938

281.527

228.642

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

971.313

945.709

1010.983

 

Sundry Debtors

859.319

987.943

853.284

 

Cash & Bank Balances

34.622

4.756

3.534

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

125.399

113.304

452.854

Total Current Assets

1990.653

2051.712

2320.655

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditor

67.454

120.464

139.018

 

Other Current Liabilities

417.117

436.972

240.782

 

Provisions

86.664

127.585

223.710

Total Current Liabilities

571.235

685.021

603.510

Net Current Assets

1419.418

1366.691

1717.145

 

 

 

 

MISCELLANEOUS EXPENSES

0.140

0.280

0.420

 

 

 

 

TOTAL

1725.034

1668.731

1967.396

 


 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

472.775

715.245

581.645

 

 

Other Income

0.878

6.107

8.782

 

 

TOTAL                                     (A)

473.653

721.352

590.427

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of sales

265.258

517.444

448.800

 

 

Administrative and selling Expenses

52.161

32.198

33.023

 

 

Miscellaneous Expenditure Written off

0.140

0.140

0.140

 

 

TOTAL                                     (B)

317.559

549.782

481.963

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

156.094

171.570

108.464

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

116.748

82.873

61.439

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

39.346

88.697

47.025

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

1.652

1.487

1.536

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

37.694

87.210

45.489

 

 

 

 

 

Less

TAX                                                                  (H)

14.322

34.568

16.469

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

23.372

52.642

29.020

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

365.237

329.028

325.820

 

 

 

 

 

Add

Income tax refund for earlier years

0.000

0.000

0.148

 

 

 

 

 

Less

Provision for Dividend and Dividend Tax for earlier years

0.000

0.000

2.091

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Proposed Dividend

0.000

14.093

NA

 

 

Tax on Dividend

0.000

2.340

NA

 

BALANCE CARRIED TO THE B/S

388.609

365.237

NA

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

 

 

Basic

1.66

3.74

2.84

 

Diluted

1.66

3.74

2.77

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2011      

30.09.2011 

31.12.2011

 

1st Quarter

2nd Qurtered

3rd Qurtered

Audited/Unaudited

Unaudited

Unaudited

Unaudited

Net sales

34.170

79.700

130.550

Total Expenditure

27.420

59.070

74.690

PBIDT (Excl OI)

6.750

20.630

55.860

Other Income

33.350

12.500

0.170

Operating Profit

40.100

33.130

56.030

Interest

19.480

27.240

33.720

Exceptional terms

0.000

0.000

0.000

PBDT

20.620

5.890

22.310

Depreciation

0.510

0.550

1.090

PROFIT BEFORE TAX

20.110

5.340

21.220

Tax

5.630

2.920

4.350

Provision and contingencies

0.000

0.000

0.000

Profit After Tax

14.470

2.420

16.860

Extra ordinay items

0.000

0.000

0.000

Prior Period Expense

0.000

0.000

0.000

Net Adjustments

0.000

0.000

0.000

Net Profit

14.470

2.420

16.860

 

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

4.93

7.30

4.92

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

7.97

12.19

7.82

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

1.87

4.21

1.94

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.04

0.11

0.08

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

0.70

0.87

0.80

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

3.48

2.99

3.84

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Check List by Info Agents

Available in Report [Yes/No]

Year of Establishment

Yes

Locality of the Firm

Yes

Construction of the firm

Yes

Premises details

No

Type of Business

Yes

Line of Business

Yes

Promoters background

Yes

No. of Employees

Yes

Name of Person Contacted

No

Designation of contact person

No

Turnover of firm for last three years

Yes

Profitability for last three years

Yes

Reasons for variation <> 20%

-

Estimation for coming financial year

No

Capital the business

Yes

Details of sister concerns

Yes

Major Suppliers

No

Major Customers

No

Payment Terms

No

Export / Import Details [If Applicable]

No

Market Information

-

Litigations that the firm / promoter involved in

-

Banking Details

Yes

Banking Facility Details

Yes

Conduct of the banking account

-

Buyer visit details

-

Financials, if provided

Yes

Incorporation details, if applicable

Yes

Last accounts filed at ROC

Yes

Major Shareholders, if applicable

No

 

REVIEW OF OPERATIONS:

 

During the year the Company recorded the turnover of Rs.473.653 Millions as compared to Rs.721.352 Millions for the previous year. The Company earned profit after tax of Rs.23.371 Millions for the year as compared to 52.643 Millions in the previous year.

 

Decrease in sales turnover during the year is mainly Attributable to short supply of inventory available for sale and adverse market conditions prevailing in the real estate sector. Profitability has also gone down on account of rising costs of interest and inputs.

 

During the year the Company’s operations were significantly affected due to deteriorating market conditions in the real estate and construction industry. While the real estate sector continued its recovery from the economic recession of year 2008 and 2009, there were numerous setbacks such as real estate linked corruption scandals sweeping across the country,

 

Prevailing acute inflationary pressure and rising interest rate regime towards the end of the year. The real estate sector is at present highly leveraged and is feeling heavy debt burden. Rising interest and input costs have adversely impacted revenue and profit growth of the Company. In spite of all these, our joint venture partners, customers, investors and lenders have reposed their trust and belief in the Company. The size of opportunity given the number and condition of residential dwellings in Mumbai is truly enormous and we hope to have new re-developments deals to be announced in the coming quarters.

 

INDUSTRY STRUCTURE AND DEVELOPMENT:

 

After the global financial crisis of 2008-09, the financial year 2010-11 was a year of robust growth. In terms of GDP growth it was aided by robust growth in agriculture, which grew at 5.4% as against 0.4% in the previous year. Industrial sector is estimated to be some what flat and have grown by 8.1% as against 8% in the last year. The economy is estimated to have grown by 8.6% as against 8% in 2009-10. For the first three quarters, almost all sectors recorded an accelerated growth. It is pertinent to note that this remarkable growth was inspite of several challenges on global economic front such as unabated sharp increase in oil prices and debt crisis in Europe and other developed countries.

 

During the year 2010-11, three basic issues viz. high inflation, tight liquidity and current account deficit to GDP and its financing dominated the Indian economy. RBI had come out with a number of monetary measures to contain inflation. However, this resulted in slowdown in some sectors especially manufacturing and real estate in the forth quarter.

 

Construction is the second largest economic activity in India after agriculture. The performance of the construction industry in general also improved during the year. It recorded a growth of 8.1% as against 7% during 2009-10. Demand for residential and commercial units increased during 2010-11. However, the fourth quarter witnessed a

downturn. The market for commercial premises was the worst hit.

 

OPERATIONS REVIEW:

 

The Company’s operations are based in Mumbai Metropolitan Region (MMR) and surrounding regions. The   company’s ambition is to provide affordable and premium reality solutions by leveraging the strength of brand and quality construction of the projects. The Company has land bank situated at Mumbai, Navi Mumbai (Turbhe) and Hyderabad.

 

During the year, the positions of projects completed, under construction and on hand are as under:

 

(i) RESIDENTIAL PROJECT AT SANTACRUZ (WEST), MUMBAI:

 

The construction work at the residential project has been completed and the sale of the entire constructed area  as happened.

 

(ii) PROJECT AT MALAD (WEST), MUMBAI:

 

The construction work is going on in full swing at the project. This is a growth-oriented and affordable Housing Project. The project has land cost of Rs. 333.000 Millions for the development of 2, 03,000 sq. ft. area. Barring unforeseen circumstances, the construction work at the project is expected to be completed by March, 2013. The project is being developed into spacious flats for those people who value space and prefer high standard of living. The project is expected to generate a good deal of revenue and profit for the Company’s further progress and expansion.

 

(iii) JOINT VENTURE PROJECT AT SANTACRUZ (WEST), MUMBAI:

 

This is a commercial project situated at Santacruz (West) Mumbai. For the development of the project, the Company has entered into a Deed of Partnership in the name and style of M/s. Kamanwala Lakshachandi Todays Developers in which Company has 50% Share, with M/s. Lakshachandi Developers Private Limited. 25% Share and M/s. Todays Infrastructure and Construction Limited. 25% Share. The project has a land cost of Rs. 350.000 Millions 67.000 sq. ft. area. The project is now almost on completion stage.

 

(iv) JOINT VENTURE PROJECT AT MAHIM (WEST), MUMBAI:

 

This project is a premium residential project situated at Mahim (West), Mumbai. For the development of the project, the Company has entered into a Deed of Partnership known as “Kamanwala Lakshachandi Todays Construction” in which the Company has 50% Share, M/s. Lakshachandi Construction Private Limited. 25% Share, Mrs. Janhavi Drolia 12.50% Share and Miss. Akriti Drolia 12.50% Share. The construction work for 30,000 sq. ft. saleable FSI has already commenced. The Company has paid Rs. 80.000 Millions towards its contribution.

 

(v) PROJECT AT TURBHE – NAVI MUMBAI:

 

This project is at Turbhe, Navi Mumbai, with a plot of land admeasuring 10,010 sq. mtrs. having total value of 152.5 Millions. The project will be developed into an Information Technology Park. The project is expected to generate a great deal of revenue as well as profit which will help to strengthen financial position of the Company. The project is expected to take-off as and when necessary approvals will be given by the appropriate authorities.

 

(vi) JOINT VENTURE PROJECT AT HYDERABAD – ANDHRA PRADESH:

 

The project is situated at Hyderabad, Andhra Pradesh, having a land admeasuring 35 acres. The project is to be developed in joint Venture with M/s. Prajay Engineers Syndicate Ltd. and M/s. Namita Builders and Developers Private Limited

 

The Company has acquired 20% Share in the land of the project for a contribution of Rs. 88.700 Millions The project being large in size, the required funds will be substantial and will be mobilized by appropriate means in due course of time. The project will take further two years for planning and development.

 

BUSINESS OUTLOOK AND PROSPECTS:

 

There is wide gap between demand and supply so far as residential segment is concerned. In urban area and metro cities demand for housing is more than supply. However, sudden spurt in prices followed by interest hike by Banks and inflationary situation has affected the demand adversely. Cushman and Wakefield in its report “Riding

the Wave 2010 – Re-emergence of Indian Real Estate Sector” has stated that India, especially its emerging realty asset classes as discussed earlier, offers sound grounds for attracting significant global investments in the current scenario. This view is re-confirmed by FICCI and E and Y study on the real estate sector, which ranks India as the fifth most attractive destination for future real estate investments in a list of top nine attractive destinations. China topped in the list followed by US, UK and Singapore.

 

A concept of second home / vacation home is being emerged particularly in affluent class. This concept will also slowly spread amongst middle class. As this concept of second home provides good investment opportunity, the demand for housing is bound to grow.

 

Demand for commercial premises is adversely affected due to increased supply position particularly in city like Mumbai. There is remarkable increase in leasing activity. Considering the India’s economic growth, demand for commercial premises too shall revive.

 

CONTINGENT LIABILITIES:

 

The Company recognizes a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for contingent liability is made when there is possible obligation or a present obligation that may, but probably will not, require an outflow of resources

 

FIXED ASSETS

 

·         Office Premises

·         Plant and Machinery

·         Furniture and fixtures.

·         Office Equipments

·         Air Conditioners

·         Vehicles

·         Computers

 

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2011

 

 

 

 

Rs in Millions

 

Particulars

Quarter ended

 

as on 30.06.2011

 

(Unaudited)

1

Net Sales/Income from Operations

34.173

2

Other Operating Income

33.347

3

TOTAL INCOME

67.520

4

Expenditure

 

 

(a)

Increase/(Decrease) in Stock-in-trade and work in progress

16.611

 

(b)

Consumption of raw materials

-

 

©

Purchase of traded Goods

-

 

(d)

Employees Cost

5.294

 

(e)

Depreciation

0.514

 

(f )

Other Expenditure

5.512

 

(g)

Total

27.931

5

Interest

19.483

6

Exceptional Items

-

7

Profit(+)/Loss(-) from Ordinary Activities before tax (3) –(4+5+6)

20.106

8

Tax Expenses

5.634

9

Net Profit(+)/Loss(-) from Ordinary Activities after tax( 7-8)

14.472

10

Extra Ordinary Items (Net Tax Expenses)

-

11

Net Profit(+)/Loss(-) for the period (9-10)

14.472

12

Paid-up Equity Share Capital

Face value Rs.10/ per share

140.932

13

Reserves excluding revaluation reserves as per Balance sheet of previous accounting year

684.705

14

Earning Per Share

 

(a)

EPS- Basic (not to be annualised)

1.03

(b)

EPS- Diluted (not to be annualised)

1.03

15

Public Shareholding

 

 

Number of Shares

7744364

 

Percentage of Shareholding

54.95

18

Promoters and Promoter group

 

 

a) Pledged/Encumbered

 

 

Number of shares

1359500

 

Percentage of Shares (as a % of the total shareholding of promoter and promoter group)

21.41

 

Percentage of Shares (as a % of the total share capital of the Company)

9.65

 

b) Non-encumbered

 

 

Number of shares

4989296

 

Percentage of Shares (as a % of the total shareholding of promoter and promoter group)

78.59

 

Percentage of Shares (as a % of the total share capital of the Company)

35.40

 

NOTES:

 

1. The construction work is under progress at the Company’s Residential Project at Malad (West), Mumbai having land cost of Rs.333.000 Millions for 2,03,000 Sq.ft. area.

 

2. The Company has entered into a Deed of Partnership of M/s Kamanwala Lakshachandi Todays Developers in which the Company has share 50% , M/s Lakshachandi Developers Private Limited. 25% and M/s Todays Infrastructure and Construction Limited 25%. The said firm is developing the Commercial Project at Santacruz (west) having land cost of Rs. 350.000 Millions for 67,000 Sq. ft. area. The construction work of the Project is well in progress and is expected to be completed within three months.

 

3. The Company has entered into a Deed of Partnership of M/s Kamanwala Lakshachandi Todays Construction in which the Company has share 50%, M/s. Lakshachandi Construction Private Limited 25%, Mrs. Janhavi Drolia-12.50% and Miss Akriti Drolia- 12.50%. The firm is developing a residential project at Mahim (West), Mumbai for salable FSI 30,000 sq. ft. for which the Firm has paid Rs. 4.30 Crores. The construction work has already commenced at the project.

 

4. The Company has entered into a Partnership Deed of M/s Prajay Kamanwala Developers in which the Company having share 20%, M/s Prajay Engineers Syndicate Limited. – 60% and M/s. Namita Builders and Developers Private Limited. – 20% for the development of a land admeasuring 35 acres at Hyderabad for which the Company has ontributed Rs.88.7 Millions The necessary formalities for the project will be initiated in due course of time.

 

5. The Company has recorded interest income of Rs. 33.197 Millions under the head Other Income for the Capital invested as a partner in M/s Kamanwala Lakshachandi Todays Developers for the development of commercial project at Santacruz, (West), Mumbai as it is now on the completion stage.

 

6. Sales for projects are accounted for on the basis of percentage completion method as per Architects Certificate.

 

7. The decrease in sales turnover is mainly on account of prevailing adverse market conditions in construction and real estate industry.

 

8. For the Quarter under review, the Company has incurred interest & Financial Expenses amounting to Rs.31.508 Millions out of which Rs. 12.025 Millions have been capitalized to the unsold stocks of the respective projects for which funds were borrowed and the balance Rs. 19.483 Millions have been shown as revenue expenditure.

 

9. Figures has been recast and regrouped wherever necessary.

 

10. At the beginning of the Quarter no complaint from Investors was pending. No complaint was received during   the Quarter and no complaint was pending at the end of the Quarter.

 

11. The above Financial Results were reviewed by the Audit Committee and approved by the Board of Directors in the Meeting held on 11th August, 2011 and were subjected to Limited Review by the Auditors of the Company.

 

 

 

PROFILE

 

Kamanwala Housing Construction Limited (KHCL) is a company with a 20-year track record. They are based at Mumbai, the commercial capital of India. Mumbai has always faced a major shortfall in residential as well as commercial properties

 

The construction sector has shown mercurial growth. The forecast for the sector, higher than 30% annually, maintains the pace. Demand in this sector is driven by the increasing level of urbanization, the above-average economic growth in India, the thrust on infrastructure, rapid expansion in the retail sector, the accelerating demand for office space, and the ever-widening demand for residential properties. Apart from this, increasing foreign and mutual fund investment in this sector is bringing in large capital inflows, thus catalysing growth. Apart from being an established company, KHCL has a lean and efficient organisation structure. The latest technology, an attractive pricing policy, adherence to schedule and high quality are hallmarks of our company. The projects they execute have a futuristic design, with a fine fusion of aesthetics and functionality. Their projects are distinguished by the high quality of construction and attention to detail. Moreover, they are all located in prime areas. They are currently implementing prestigious projects across central and western Mumbai - Bandra Kurla Complex, Andheri, Santa Cruz, Malad and Versova.

 

With their track record and experience, they are well positioned to take advantage of the industry growth potential. They at KHCL have adopted a de-risked growth model: by diversifying across segments (residential and commercial), projects and locations. They have embarked on locational diversification through new projects at Hyderabad, a city witnessing explosive growth.

 

They have consolidated our position and established ourselves. The foundations for taking off into a higher scale of operations have been laid.

 

The present paid up equity share capital Rs.49.670 Millions, in which the promoters hold 42%

 


CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 51.28

UK Pound

1

Rs. 81.38

Euro

1

Rs. 67.01

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

5OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--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

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

45

 

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

-

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.