MIRA INFORM REPORT
|
Report Date : |
04.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
HOUSING DEVELOPMENT AND INFRASTRUCTURE LIMITED
(w.e.f
29.08. 2006) |
|
|
|
|
Formerly Known As : |
Housing Development and Improvement India
Private Limited |
|
|
|
|
Registered Office : |
9-01, Dheeraj Arma, HDIL Towers, Anant Kanekar Marg, Bandra (East),
Mumbai – 400 051, Maharashtra |
|
|
|
|
Country : |
|
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|
|
|
Financials (as on) : |
31.03.2012 |
|
|
|
|
Date of Incorporation : |
25.07.1996 |
|
|
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|
Com. Reg. No.: |
11-101379 |
|
|
|
|
Capital Investment / Paid-up Capital : |
Rs.4150.040 millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L70100MH1996PLC0101379 |
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|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on The Stock Exchanges. |
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Line of Business : |
Subject is an infrastructure and Real Estate Company. |
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|
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|
No. of Employees: |
1500 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (26) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 401400000 |
|
|
|
|
Status : |
Moderate |
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|
|
Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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|
Comments : |
Subject is an established company having a moderate track record. The market
is unfavourable to the real estate sector. Due to significant increase in
land and construction cost it has become difficult for the builder and
developers to reduce the prices of finished products to absorb the impact of
the increased EMI as a result of rise in the rate of interest. The company has eroded around 56 percent of investor’s wealth as of
March 20, 2013. Delays are reported by the company in servicing its
non-convertible debentures obligations. The company is facing severe cash
crunch. However, business is active. Payment terms are slow and delayed. The company can be considered for business dealings with great
caution. |
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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces of
its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to become
a major exporter of information technology services and software workers. In
2010, the Indian economy rebounded robustly from the global financial crisis -
in large part because of strong domestic demand - and growth exceeded 8%
year-on-year in real terms. However, India's economic growth in 2011 slowed
because of persistently high inflation and interest rates and little progress
on economic reforms. High international crude prices have exacerbated the
government's fuel subsidy expenditures contributing to a higher fiscal deficit,
and a worsening current account deficit. Little economic reform took place in
2011 largely due to corruption scandals that have slowed legislative work.
India's medium-term growth outlook is positive due to a young population and
corresponding low dependency ratio, healthy savings and investment rates, and
increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
D [Non Convertible Debentures] |
|
Rating Explanation |
Default |
|
Date |
19.03.2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
9-01, Dheeraj Arma, HDIL Towers, Anant Kanekar Marg, Bandra (East),
Mumbai – 400 051, Maharashtra, India |
|
Tel. No.: |
91-22-26583500 |
|
Fax No.: |
91-22-26583636
/ 26583535 |
|
E-Mail : |
|
|
Website : |
http://www.hdil.in |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. Rakesh Kumar Wadhawan |
|
Designation : |
Executive chairman |
|
|
|
|
Name : |
Mr. Sarang Wadhawan |
|
Designation : |
Vice Chairman cum Managing Director
|
|
|
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|
Name : |
Mr. Waryam Singh |
|
Designation : |
Director |
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|
Name : |
Mr. Ashok Kumar |
|
Designation : |
Director |
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|
Name : |
Mr. Satyapal Talwar |
|
Designation : |
Independent Director |
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|
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|
Name : |
Mr. Lalit Mohan Mehta |
|
Designation : |
Independent Director |
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|
|
|
Name : |
Mr. Shyam Sunder Dawra |
|
Designation : |
Independent Director |
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|
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|
Name : |
Mr. Surinder Kumar Soni |
|
Designation : |
Independent Director |
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|
Name : |
Mr. Sunil Behari Mathur |
|
Designation : |
Independent Director |
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|
|
|
Name : |
Mr. ramesh Chander
Kapoor |
|
Designation : |
Independent Director |
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|
|
|
Name : |
Mr. Raj Kumar Aggarwal |
|
Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. Darshan D Majmudar |
|
Designation : |
Vice President Company Secretary and Legal |
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|
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|
Name : |
Mr. K P Devassy |
|
Designation : |
Chief Financial Officer |
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AUDIT COMMITTEE |
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REMUNERATION
COMMITTEE |
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INVESTOR GRIEVANCES AND SHARE TRANSFER COMMITTEE |
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FINANCE COMMITTEE |
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PROJECT COMMITTEE |
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2012
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
103189824 |
24.63 |
|
|
53346984 |
12.73 |
|
|
156536808 |
37.36 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
156536808 |
37.36 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
152189 |
0.04 |
|
|
986116 |
0.24 |
|
|
314372 |
0.08 |
|
|
175090692 |
41.79 |
|
|
176543369 |
42.13 |
|
|
|
|
|
|
36009628 |
8.59 |
|
|
|
|
|
|
37659710 |
8.99 |
|
|
6978743 |
1.67 |
|
|
5275728 |
1.26 |
|
|
1734332 |
0.41 |
|
|
6652 |
0.00 |
|
|
2042639 |
0.49 |
|
|
13 |
0.00 |
|
|
1492092 |
0.36 |
|
|
85923809 |
20.51 |
|
Total Public shareholding (B) |
262467178 |
62.64 |
|
Total (A)+(B) |
419003986 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
419003986 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is an infrastructure and Real Estate Company. |
GENERAL INFORMATION
|
No. of Employees : |
1500 (Approximately) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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|
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Auditors : |
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|
Name : |
Thar and Company Chartered Accountants |
|
Address : |
203, Capri, anant
Kanekar Marg, Station Road, Bandra (East), Mumbai – 400 051, Maharashtra,
India |
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Associates/Subsidiaries : |
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Other Related Parties : |
|
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
500000000 |
Equity Shares |
Rs.10/- each |
Rs.5000.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
419003986 |
Equity Shares |
Rs.10/- each
|
Rs.4190.040
Millions |
NOTES:
The aggregate number of bonus shares issued in the last five years
immediately preceding the Balance Sheet date is 19,12,20,595 equity shares.
Reconciliation of the number of shares outstanding:
|
Particular |
As on 31.03.2012 |
|
Shares outstanding at the beginning of the year (Number) |
415003986 |
|
Shares Issued during the year (Number) |
4000000 |
|
Shares
outstanding at the end of the year |
419003986 |
Terms/rights attached to shares:
The Company has only
one class of shares i.e. equity shares of Rs. 10/- each. Shareholders are
entitled to vote in accordance with their shareholding in the Company and
receive dividend as and when declared by the Company. In the event of
liquidation of the Company, the holders of equity shares will be entitled to
receive remaining assets of the Company, after distribution of all preferential
amounts. The distribution will be in proportion to the number of equity shares
held by the shareholder.
Shares in the Company held by each shareholder holding more than 5
percent:
|
Particular |
As on 31.03.2012 |
|
|
|
No. of Shares |
% of Held |
|
Rakesh Kumar Wadhawan |
76047661 |
18.15 |
|
Platinum Investment Management Limited |
24295900 |
5.80 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
4190.040 |
4150.040 |
3588.427 |
|
|
2] Share Application Money |
0.000 |
2592.000 |
780.000 |
|
|
3] Reserves & Surplus |
96176.030 |
89628.845 |
66809.008 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
100366.070 |
96370.885 |
71177.435 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
23875.016 |
28678.499 |
40517.169 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
23875.016 |
28678.499 |
40517.169 |
|
|
DEFERRED TAX LIABILITIES |
131.096 |
65.694 |
53.332 |
|
|
|
|
|
|
|
|
TOTAL |
124372.182 |
125115.078 |
111747.936 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1751.690 |
1777.164 |
1807.001 |
|
|
Capital work-in-progress |
68.625 |
910.737 |
22.804 |
|
|
|
|
|
|
|
|
INVESTMENT |
13019.500 |
7859.525 |
5964.764 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
105691.484
|
100864.832 |
80336.624
|
|
|
Sundry Debtors |
2786.454
|
3428.483 |
2007.176
|
|
|
Cash & Bank Balances |
2253.286
|
2260.074 |
7873.879
|
|
|
Other Current Assets |
160.812
|
25.528 |
27.907
|
|
|
Loans & Advances |
38013.214
|
41411.671 |
22053.163
|
|
Total
Current Assets |
148905.250
|
147990.588 |
112298.749 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
5390.122
|
4305.551 |
2756.046 |
|
|
Other Current Liabilities |
32160.825
|
27738.252 |
5266.702
|
|
|
Provisions |
1821.936
|
1379.133 |
322.634
|
|
Total
Current Liabilities |
39372.883
|
33422.936 |
8345.382
|
|
|
Net Current Assets |
109532.367
|
114567.652 |
103953.367
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
124372.182 |
125115.078 |
111747.936 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
9174.248 |
18211.280 |
14919.917 |
|
|
|
Other Income |
1492.516 |
1016.316 |
1075.907 |
|
|
|
TOTAL (A) |
10666.764 |
19227.596 |
15995.824 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of construction, land and development expenses |
5929.519 |
26955.958 |
|
|
|
|
Employee benefits expense |
378.203 |
417.294 |
|
|
|
|
Other expenses |
410.348 |
632.230 |
|
|
|
|
Share of loss from partnership firm |
0.000 |
0.304 |
7802.955 |
|
|
|
Exceptional Items |
0.000 |
44.957 |
|
|
|
|
Transfer (to)/from Investment/Fixed assets |
0.000 |
(1052.469) |
|
|
|
|
Changes in inventories of finished goods, stock-in-trade and
work-in-progress |
(6072.755) |
(24151.814) |
|
|
|
|
TOTAL (B) |
645.315 |
2846.460 |
7802.955 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
10021.449 |
16381.136 |
8192.869 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
5783.331 |
5769.031 |
788.999 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
4238.118 |
10612.105 |
7403.870 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
84.418 |
72.492 |
51.028 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
4153.700 |
10539.613 |
7352.842 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
284.132 |
1575.462 |
1329.885 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
3869.568 |
8964.151 |
6022.957 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
4640.246 |
5829.241 |
6054.235 |
|
|
|
|
|
|
|
|
|
Add |
OTHER
ADJUSTMENTS |
95.621 |
9.496 |
(56.351) |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
5829.241 |
0.000 |
|
|
|
Transferred to Debenture Redemption Reserve |
8225.000 |
4333.400 |
6191.600 |
|
|
BALANCE CARRIED
TO THE B/S |
380.435 |
4640.247 |
5829.241 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
0.000 |
1.081 |
28.540 |
|
|
|
Construction Materials and Other Expenses |
0.000 |
14.347 |
0.000 |
|
|
TOTAL IMPORTS |
0.000 |
15.428 |
28.540 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
|
|
|
|
|
|
Basic |
9.41 |
22.88 |
18.23 |
|
|
|
Diluted |
9.25 |
22.48 |
17.81 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
1909.000 |
2464.100 |
4102.300 |
|
Total Expenditure |
(644.800) |
(167.100) |
1090.500 |
|
PBIDT (Excl OI) |
2553.800 |
2631.200 |
3011.800 |
|
Other Income |
268.200 |
591.500 |
436.600 |
|
Operating Profit |
2822.000 |
3222.700 |
3448.400 |
|
Interest |
1365.800 |
1375.600 |
1527.500 |
|
PBDT |
1456.200 |
1847.100 |
1920.900 |
|
Depreciation |
19.600 |
19.700 |
19.700 |
|
Profit Before Tax |
1436.600 |
1827.400 |
1901.200 |
|
Tax |
201.900 |
241.700 |
645.000 |
|
Profit After Tax |
1234.700 |
1585.700 |
1256.200 |
|
Net Profit |
1234.700 |
1585.700 |
1256.200 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
36.27
|
46.62 |
37.65 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
45.27
|
57.87 |
49.28 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.75
|
7.04 |
6.44 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.04
|
0.11 |
0.10 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.23
|
0.30 |
0.57 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.78
|
4.43 |
13.45 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
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 |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
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 |
Yes |
|
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 |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
-- |
|
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 |
|
31] |
PAN of Proprietor/Partner/Director, if available |
No |
|
32] |
Date
of Birth of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
PERFORMANCE REVIEW:
The Turnover of
the Company decreased by 44.52% and stood at Rs. 10666.764 millions as against
Rs.19227.596 Millions in the previous year. The Company’s Profit from
Operations for the year ended 31st March, 2012 decreased by 60.76 % to Rs.
4153.700 millions as against Rs. 10584.570 millions in the corresponding period
of the previous year. During the year, Company’s standalone net debt has been
reduced by almost Rs. 4545.632 millions, currently standing at Rs. 37408.311
millions (10.83% lower than the previous year). Company has launched
residential projects admeasuring 8,50,680 sq. ft.
REVIEW OF OPERATIONS AND FUTURE PLANS OF SOME OF
THE SUBSIDIARY COMPANIES:
Blue Star Realtors
Private Limited: The Company has received notification for IT-SEZ in Kochi. The Company
proposes to monetize the same through strategic Joint Venture (JV) and Private
Equity Investment.
Guruashish
Construction Private Limited: The Company has a large Residential and Commercial
project at Siddhartha Nagar at Goregaon Mumbai for 1,65,800 sq. mtr. of
construction valued at Rs. 4850.000 millions.
HDIL Entertainment
Private Limited: The Company proposes to spread its presence by opening of 3 screens in
at a Multiplex Delhi, 2 screens in Multiplex at Baramati Near Pune, add 2
screens in a Multiplex at Mumbai and add 5 more screens in a Multiplex at
Kolkata in the year 2012-13. The Company intends to reach its target of 100
screens all over India by the year 2014.
Privilege Power
and Infrastructure Private Limited: The Company is holding large land bank in
Vasai and Virar belt having huge growth potential and proposes to monetize this
very soon.
HC Infracity
Private Limited: The Company is engaged in to Real estate development and has been
allotted land in Yamuna expressway project in Delhi.
The Ministry of
Corporate Affairs (MCA) vide its General Circular No. 3/2011 dated 21st
February, 2011 read together with General circular No. 2/2011 dated 8th
February, 2011 issued modifying their circular No. 5/12/2007–CL-III has granted
general exemption under Section 212(8) of the Companies Act, 1956 to Companies
from attaching the accounts of their subsidiaries in their annual reports
subject to fulfillment of certain conditions prescribed. The Board of Directors
of the Company at its Meeting held on 30th May, 2012 in line with
the circular of MCA have passed the necessary resolution granting the requisite
approvals for not attaching the Balance Sheet, statement of Profit & Loss
Account, report of the Board of Directors and report of the auditors of each of
the Subsidiary Companies to the accounts of the Company for the fiscal year
2011-12. The Company will make available these documents/details upon request
by any Member of the Company at its Registered Office. As required by
Accounting Standard–21 (AS–21) prescribed by the Companies (Accounting
standards) Rules, 2006, the Company’s consolidated financial statements
included in this Annual Report incorporate the accounts of its subsidiaries. A
summary of key financials of the HDIL Subsidiaries is also included in this
Annual Report.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
GENERAL PERFORMANCE REVIEW:
For Indian
economy, recovery was interrupted this year due to intensification of debt
crises in Euro zone, political turmoil in Middle East, rise in crude oil
prices, inflationary trends, devaluation of Rupee against major currency of the
world etc. India however remains front runner in economic growth in any
cross-country comparison. If India can build on its economic strength, it can
be a source of stability for world economy and a safe destination for restless
global capital. Infrastructure development integrated with real estate
development has been the backbone of such sustained growth and continues to be
the focal point of their economy. The Company has sustained growth and aspires
to do so in the coming years.
As per the Reserve
Bank of India, India’s GDP growth in the fiscal year 2012-13 expected to be 7.6
per cent +/- 0.25 per cent. Headline inflation expected to moderate further in
next few months and remain stable thereafter. Twelfth Five Year Plan to be
launched with the aim of “faster, sustainable and more inclusive growth”.
During Twelfth Plan period, investment in infrastructure to go up to Rs. 50
lakh crore with half of this, expected from private sector.
NDUSTRY OVERVIEW:
There were several
headwinds that prevented the sector from delivering to its full potential. High
property prices and rising home loan interest rates kept the home buyers away
from the property market. Property transactions in major Indian cities were
down by 20-40% for the year. The Indian real estate industry has been on a
roller coaster ride since 2007, riding through many highs and lows. The
industry reached new heights with increased development activity during 2007
and early 2008, characterized by growth in demand and increased foreign
investments. However, by mid-2008, this scenario took a U-turn, as the industry
witnessed a decline due to the ripple effect of the global economic slowdown
following US sub-prime mortgage crises.
However, the
Indian real estate industry is witnessing some vibrancy and upbeat market
sentiments after the steep corrections during the global financial crisis in
2008-09. Global economic performance is improving and so are the prospects of
Indian businesses. The residential segment makes up most of the real estate
industry in the country. Growth in this segment is primarily driven by
increasing urbanization, rise in the number of white-collar professionals and
rising incomes, etc. The residential segment is again witnessing growth in
demand for luxury and super premium homes among the globe-trotting executives,
new and successful businessmen, Non-resident Indians (NRIs), etc. However, this
sub-segment is currently experiencing low volumes due to steep price rise and
hike in interest rates; this may be a short-term lull and with minor
corrections the segment may continue to grow.
The commercial
real estate segment (primarily office space) is growing in tandem with the
country’s booming economy. The demand for office space is driven by the influx
of multinational companies and growth in services sector. Overall, on pan-India
basis, the demand for office space is expected to approximately total 180
million sq. ft. by 2013, with seven major cities (Bangalore, Chennai,
Hyderabad, Kolkata, Mumbai, and Pune) catering to 75% of the total demand.
Although the
retail real estate segment has the smallest pie in the real estate industry, it
is growing rapidly and the demand for good quality mall space is fuelled by the
growth in organized retail and the entry of international retailers into India.
Over the past few years, retail has become one of the fastest growing
industries in the country.
Reserve Bank of
India’s recent increase in lending rates will invariably lead to higher cost of
funds for both developers as well as end users. This coupled with slowdown in
demand and a tightening liquidity situation will keep capital values under
pressure. However, many developers believe that positive economic environment
together with good increase in salaries will improve demand over the next 3 to
6 months. On the other hand rental values are expected to witness some increase
owing to rise in demand particularly in north and far north suburbs. A
slow-down in the economy from both consumers and retailers lead to supply lag
in the retail real estate sector. Low leasing activities and high vacancy rates
all added to the sector witnessing reduced investment interests too.
BUSINESS OVERVIEW:
The year 2011-12
can best be described as a lackluster year for Indian real estate sector.
Mumbai’s residential market was characterized by slowdown in sales, inventory
pile up, cautious investor activity and hardening home loan interest rates. As
a result, residential property registrations in the city – a key indicator to
assess demand – recorded a drop in sales. The Slowdown can also be attributed
to changes in Development Control Regulation and major policy changes in F.S.I.
Housing
Development and Infrastructure Limited (HDIL) is one of the premier real estate
development companies in India and is actively pursuing on the development of
real estate and slum rehabilitation projects in Mumbai Metropolitan Region.
Being a professionally managed company, they look into the intricacies of
designing, developing and construction of each Project with an eye to
perfection. Their efficient team of Engineers, Architects, Designers,
Structural Consultants & Human Resource Personnel, leaves no stone unturned
to infuse class and quality in their Projects. With a Glorious Clientele,
Network of Investors & Financers, Efficient Supply Chain and Banker
Relations, they are set to achieve netheyr benchmarks in Real Estate Industry.
They carry forward their zeal for delivering maximum customer delight keenly
Project after Project.
During the year
2011-12, the Company launched 8,50,680 sq. ft. of saleable area in suburbs.
Projects include Rehabilitation as well as sale buildings. MMRDA has started
the process of shifting of eligible slum dwellers from Mumbai International
Airport slums (MIAL) to Kurla Premiere compound and have issued Allotment
Letters to the eligible slum dwellers for the 1st phase.
FIXED ASSETS:
·
· Buildings
· Office Equipments
· vehicles
· Computers
· Plant and Machinery
UNAUDITED FINANCIAL RESULTS
FOR THE QUARTER AND NINE MONTHS ENDED ON DECEMBER 31, 2012
Rs. in Millions
|
Sr. No. |
Particular |
Quarter Ended |
Year Ended |
|
|
|
|
31.12.2012 (Unaudited) |
30.09.2012 (Unaudited) |
31.12.2012 (Unaudited) |
|
|
|
|
|
|
|
1. |
Net Sales/Income from Operations |
4071.100 |
2429.300 |
8380.300 |
|
|
Other Operating Income |
31.200 |
34.800 |
97.300 |
|
|
Total Income From Operations (Net) |
4102.300 |
2464.100 |
8477.600 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
Cost
of materials consumed |
1128.300 |
310.200 |
2224.400 |
|
|
Purchase
of stock in trade |
0.000 |
0.000 |
0.000 |
|
|
Changes
in inventories of finished goods, work in progress and stock in trade |
(276.500) |
(688.900) |
(2643.500) |
|
|
Employee
benefits expenses |
79.400 |
79.600 |
240.300 |
|
|
Depreciation
and amortization expenses |
19.700 |
19.700 |
59.100 |
|
|
Other
expenses |
159.300 |
132.000 |
457.200 |
|
|
Total Expenses |
1110.200 |
(147.400) |
337.500 |
|
|
|
|
|
|
|
3. |
Profit
From Operations before Other Income, Interest and Exceptional Items (1-2) |
2992.100 |
2611.500 |
8140.100 |
|
|
|
|
|
|
|
4. |
Other
Income |
436.600 |
591.500 |
1294.200 |
|
|
|
|
|
|
|
5. |
Profit
Before Interest and Exceptional Items (3+4) |
3428.700 |
3203.000 |
9434.300 |
|
|
|
|
|
|
|
6. |
Interest |
1527.500 |
1375.600 |
4269.000 |
|
|
|
|
|
|
|
7. |
Profit
After Interest but before Exceptional Items (5-6) |
1901.200 |
1827.400 |
5165.300 |
|
|
|
|
|
|
|
8. |
Exceptional
Items |
-- |
-- |
-- |
|
|
|
|
|
|
|
9. |
Profit
from Ordinary Activities before Tax (7+8) |
1901.200 |
1827.400 |
5165.300 |
|
|
|
|
|
|
|
10. |
Tax
Expense |
645.000 |
241.700 |
1088.700 |
|
|
|
|
|
|
|
11. |
Net Profit
from Ordinary Activities after Tax (9-10) |
1256.200 |
1585.700 |
4076.600 |
|
|
|
|
|
|
|
12. |
Extraordinary
Item (net of expense) |
-- |
-- |
-- |
|
|
|
|
|
|
|
13. |
Net
Profit for the period (11-12) |
1256.200 |
1585.700 |
4076.600 |
|
|
|
|
|
|
|
14. |
Paid-up
Equity Share Capital (Face Value of Rs.10/- Each) |
419003986 |
419003986 |
419003986 |
|
|
|
|
|
|
|
15. |
Reserves
Excluding Revaluation Reserve |
-- |
-- |
-- |
|
|
|
|
|
|
|
16. |
Basic and Diluted Earning Per Share
(EPS) (Rs.)-Not Annualised |
|
|
|
|
|
a)
Basic and diluted EPS before extraordinary items |
3.00 |
3.78 |
9.72 |
|
|
b)
Basic and diluted EPS after extraordinary items |
3.00 |
3.78 |
9.72 |
|
|
|
|
|
|
|
17. |
Public Shareholding |
|
|
|
|
|
-Number
of Shares |
262467178 |
262467178 |
262467178 |
|
|
-
Percentage of Shareholding |
62.64 |
62.64 |
62.64 |
|
|
|
|
|
|
|
18. |
Promoters and Promoter Group
Shareholding |
|
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
|
- Number
of Shares |
150650775 |
150650775 |
150650775 |
|
|
-
Percentage of Shares (as a % of the Total Shareholding of promoter and
promoter group) |
96.24 |
96.24 |
96.24 |
|
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
35.96 |
35.96 |
35.96 |
|
|
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
|
-
Number of Shares |
5886033 |
5886033 |
5886033 |
|
|
-
Percentage of Shares (as a % of the Total Shareholding of Promoter and
Promoter Group) |
3.76 |
3.76 |
3.74 |
|
|
- Percentage
of Shares (as a % of the Total Share Capital of the Company) |
1.40 |
1.40 |
1.40 |
|
Particulars |
3 Months ended on March 31,
2012 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
7 |
|
Disposed of during the quarter |
7 |
|
Remaining unresolved at the end of the
quarter |
Nil |
NOTES:
1. The above results have
been reviewed by the Audit Committee and thereafter, approved by the Board of
Directors at their meetings held on 14th February, 2013.
2. Previous period figures
have been regrouped, rearranged, restated and reclassified wherever necessary,
for the purpose of comparison.
3. The operations of the
Company are substantially of real estate development and infrastructure and as
such reporting is done on single segment basis.
4. Executive Chairman and
Vice Chairman & Managing Director have not taken any remuneration for the
Quarter.
5. During the quarter under
review, the Company has launched Second phase of Virar Residency Park at Virar.
PRESS RELEASES:
HDIL WIPES OUT OVER 50% OF INVESTORS€™ WEALTH IN
2013
MAR 20, 2013
NEW DELHI: HDIL came under
tremendous selling pressure on Wednesday and the stock slipped to hit its
record low of Rs 47.90 in trade, after ET Now reported that CARE has revised
its rating of the company's Non Convertible Debentures to 'default'.
On Tuesday, Credit Analysis and
Research Limited revised its rating from CARE BBB+ (Triple B+) to CARE D to its
non-convertible debentures issued by the company.
"The revision in the ratings of
Housing Development and Infrastructure Limited (HDIL) reflects the ongoing
delays in servicing its Non- Convertible Debentures obligations," CARE
said in a note.
HDIL closed 19.90 per cent lower at
Rs 48.70. It has hit a record low of Rs 47.90 on the BSE and a high of Rs 61.00
in trade today. The stock has plunged over 50 per cent so far in the year 2013
as compared to 2.79 per cent fall in the BSE Sensex.
The company has eroded 56 per cent
of investor's wealth so far in the year 2013, as of March 20 data.
In response to the CARE ratings
downgrade, the company issued a statement to exchanges stating that the company
(HDIL) has not accepted the said rating and would like to reiterate the
company's strong financial and operational performance along with sound
fundamentals.
Sudip Bandyopadhyay, MD and CEO,
Destimoney Securities Pvt. Ltd in an interview with ET Now advised investors to
stay clear from real estate stocks including HDIL, Oberoi Realty and Godrej Properties.
"And somebody who is still
invested in names like these should try and avoid selling in this panic market.
As and when market recovers, HDIL should come to levels of around Rs 60,"
he added.
According to analysts, the company
is facing severe cash crunch. Most of promoters' shares are pledged and the
stock fell sharply last month on concerns that promoters pledged shares were
liquidated on margin calls pressure.
The company has a debt around of Rs
4000 crore with interest liability of over Rs 500 crore.
HDIL, MANY OTHER REAL ESTATE
PLAYERS STRUGGLING UNDER DEBT: NITIN JAIN, EDELWEISS FINANCIAL SERVICES
MAR 20, 2013
In a chat with ET Now, Nitin Jain, Head, Retail
Capital Markets, Edelweiss Financial Services, shares his views on HDIL,
Manappuram. Excerpts:
ET Now: Worrying it is
the way some of the mid-caps are cracking; there are separate reasons for most
of them. Bt the manner in which HDIL succumbed to pressure today or Manappuram
for the last two or three days, what do you make of the moves and any views on
a couple of these stocks
Nitin Jain: As you rightly pointed out the last three-four days have been quite turbulent for the markets and we have been very bullish. If you look at for the last one, one-and-a-half years, today the risks in the market have gone up disproportionately. First, there was sting operation on the private sector banks which at some level has taken away some credibility or has hurt the confidence of investors in that sector.
Second, I was a little surprised by
the hawkish stance that I saw in yesterday's RBI policy and third there is an
issue of some level of political unstability creeping in. Hence the markets are
reacting to this. Maybe the index overall has dipped only 3% or 4%, but as you
rightly pointed out, a lot of midcaps have corrected by 30% to 50% in the last
one week or so.
I am a little worried right now from
the market point of view and hence would not want to take too many long
positions on equity, but it also provides you great opportunities if you are
long-term investor in certain stocks like media, and some stocks in infra, may
be L and T. So these are some opportunities that you can selectively look at.
Let me talk about Manappuram. I was
quite surprised by the losses that they are going to report in this quarter. I
would sincerely avoid participating in these kind of stocks now because there
are also some corporate governance issues that have crept up in the last one or
two days. So we would like to avoid that.
HDIL like most of the real estate
players is struggling on the amount of debt that they have on the balance
sheets. I think it is 7500 to 8000 crores of debt and like any other player
except for some players in the south; they are also struggling on the demand
side. The CARE report that has come out, they are moving their rating to
default which is not good news for the company. It is very likely that this
stock will be under tremendous pressure even for the next few days and few
sessions. I do not see how they are going to get out of this one.
EXPOSURE TO HDIL LIMITED, SAYS BOI ED
MAR 20, 2013
Bank of India which came under focus over its exposure to realty developer HDIL, said it was of little concern. N Seshadri, ED, Bank of India told CNBC-TV18 that their exposure to HDIL is very limited.
"Our exposure is very limited and we do not see much of a concern at this point of time because there has been servicing. We are looking at the portfolio very closely, although at a very small portion of a percentage of that overall exposure. It is not significant, but we do have some concern in terms of delayed servicing of interest," he added.
Credit rating agency CARE had downgraded the Non-Convertible Debentures (NCD) of Housing Development and Infrastructure (HDIL) citing delay in servicing debt obligations.
HDIL STOCK AT ALL-TIME LOW AFTER
CARE DOWNGRADES NCD RATING TO ‘DEFAULT’
MAR 21 2013
In just two months, Housing Development and Infrastructure Limited (HDIL) share price has hit a new low, sparking fears of fresh trouble for the Mumbai-based real estate developer. The latest crash took place on Wednesday as rating agency CARE Ratings downgraded the company's Rs.20950.000 Millions non-convertible debentures (NCDs).
HDIL's share price opened at R60.25 on BSE on Wednesday and fell to an all-time low of Rs. 47.90, before closing 19.90% to a new low of R48.70. The company's stock has fallen to the current levels from a 52-week high of Rs123.95 on January 16.
CARE downgraded two tranches of HDIL's NCDs of a total of Rs. 18953.700 Millions to 'D' grade from BBB+, and another Rs. 2000.000 Millions of short-term NCDs from A3+ to 'D'.
Instruments with 'D' grading are in default or are expected to be in default soon. CARE said, "The revision in the ratings of HDIL reflects the ongoing delays in servicing its Non-Convertible Debentures obligations".
HDIL, in a statement, said it has "not accepted" the said rating and reiterated that its financial and operational performance remains strong.
"The company has submitted to CARE to review/restore the rating," it said.
However, speaking to FE, CARE officials said that it was not a matter of HDIL not accepting the rating as there have been defaults on interest payment, which has led to the downgrading of NCDs.
"Delayed or missed payment is a default," said a senior official. "Once the bonds are issued by the company, as rating agencies we keep monitoring them and there is a continuous surveillance that happens. In this case, there have been delays on interest payments, which amounts to default as per the Reserve Bank of India definition of defaults," he said.
A senior official from HDIL said, there was a delay in payment of Rs. 20.000 Millions of interest amount, which has been cleared now.
"Our accounts were frozen due to certain service tax-related issue, due to which we could not make the interest payment for February, but we have cleared it in March," the person said. He also said that the company is looking to repay Rs.1800.000 Millions of debt to banks by March 31. The re-payment will be done from the amount the company has realized through a sale of land to Adani Group last year. "We have booked about Rs. 4000.000 Millions from the land sale to Adani Group in the third quarter, of which around Rs. 1800.000 Millions will go towards debt repayment by March 31." HDIL had sold a two-acre land in Andheri to Adani Enterprises for Rs. 9000.000 Millions last year.
In January too, HDIL's share price tumbled almost 40% in three days between January 21 and January 24 on investors' worries over HDIL's financial health, given its high debt and 98% of promoter shareholding pledged. HDIL's consolidated net debt as on December 31, 2012, stood at Rs. 3,920.14.
Sarang Wadhawan, HDIL's promoter, sold 50 lakh shares worth Rs. 570.000 Millions in January, which had led to a sharp fall in the company's stock price then. Wadhawan brought down his stake to 0.99% from 2.19%. The company had clarified that the money was required to meet some payment obligations towards a 15-acre Digvijay Mill land in the south Mumbai area of Bycullah, which was purchased in 2010.
HDIL - CREDIT RATING
3 APRIL, 2013
Housing Development and Infrastructure Ltd has informed BSE that the Company is in receipt of letter from Credit Analysis and Research Limited dated March 19, 2013 informing that, they (CARE) have revised the rating from CARE BBB+ (Triple B Plus) to CARE D assigned to the non-convertible debentures (NCD) issue of the Company citing recent developments.
The Company has not accepted the said rating assigned by CARE and would like to reiterate the Company’s strong financial and operational performance and sound fundamentals and the Company has submitted to CARE to review / restore the rating.
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 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 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.54.39 |
|
|
1 |
Rs.82.05 |
|
Euro |
1 |
Rs.69.59 |
INFORMATION DETAILS
|
Report Prepared by
: |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
2 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
0 |
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
2 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
26 |
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.