MIRA
INFORM REPORT
|
Report Date : |
18.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
OBEROI REALTY LIMITED |
|
|
|
|
Registered
Office : |
Commerz, 3rd Floor, International Business Park, Oberoi Garden City, Off Western Express Highway, Goregaon (East), Mumbai – 400063, Maharashtra |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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|
|
Date of
Incorporation : |
08.05.1998 |
|
|
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|
Com. Reg. No.: |
11-114818 |
|
|
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|
Capital Investment
/ Paid-up Capital : |
Rs. 3282.333 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L45200MH1998PLC114818 |
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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
: |
The company is engaged in the business of real estate
development and hospitality. |
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|
|
|
No. of Employees
: |
928 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (68) |
|
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 |
|
Status : |
Good |
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|
|
Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a flagship company of Oberoi Realty Group. It is a well-established company having
fine track record. The company possesses a strong financial profile marked by favourable
networth base, low leverage and healthy cash accruals. Management has witnessed a dip in its sales volume as well as net
profitability during FY14. The rating also take into consideration, the leased assets and an
operating hotel which may supports the revenue profile during the prevailing
slowdown in the industry. However, trade relations are fair. Business is active. Payment terms
are reported as regular and as per commitments. In view of professional and experienced management along with
established brand and strong market position, 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.
INDIAN ECONOMIC OVERVIEW
N E W S
As per the latest IMF study, the total weigh of emerging markets in the
GDP of the world on a purchasing power parity basis has seen a sizeable shift.
It highlights how as against 51 % in 2005, the emerging economies now account
for close to 56 % of the global purchasing power GDP as per the latest survey.
And with the emerging economies growing at a faster rate than their developed
counterparts, there are every possibility that the their share goes up further
in the coming years. China may surpass the US over the next few years.
Politics and economics are very intricately connected. They tend to
influence each other in ways that could be very complex and far-reaching. The
prospects of the India’s economy have been seriously compromised due to
political corruption. High inflation, poor standard of living are to a great
extent a result of rampant corruption in the country. China on the other hand,
seems to be facing diametrically opposite challenge. American hedge fund
manager Jim Chanos has been keenly following the political and economic
development in the dragon economy and has figured out something that is quite
worrying. He is of the view that the Chinese economy could be heading toward
trouble on account of new Chinese President Xi Jingping’s very aggressive
anti-corruption drive. Chanos believes tat many things such as apartment sales,
luxury products, etc. were largely bought with dirty money. And it is now
beginning to impact consumption. This may indeed be bad news for an economy
that is struggling to transition from an investment-driven export-oriented
economy to a domestic consumption-driven economy.
A study published by Firstpost has revealed that asset classes like real
estate and equities were the biggest beneficiaries of the liberalization
policies. A firm called Ciane Analytics studied returns from assets
including equities, gold, fixed deposits, G-Secs and real estate since 1991.
Real estate outperformed every other asset classes during the 23-year period
with an annualized return of 20 % ! Equities came in second with annualized
return of 15.5 % ! However, while these returns may seem mouthwatering, the
fact is that the return from equities adjusted for inflation came down to just
7.1 %.
Some brief news are as under
. R-Power to buy Jaypee’s hydro assets
. Investors await justice in NSEL case
. India seeks MFN status from Pakistan ahead of meeting
. Ukrain’s clashes with rebels hinder MH17 crash investigation
. India exploring merger of state-owned hydro PSUs
..Higher costs weigh down profit growth to slowest in 9 quarters
..Wal-Mart to expand wholesale business in India
. GMR group moves to strengthen balance sheet
. Central Bank to sell 4 % stake to Life Insurance Corporation
. Tata Chemicals plans to raise up to Rs 10000 mn.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Proposed Short-Term Commercial Paper = A1+ |
|
Rating Explanation |
Very Strong degree of safety and carry lowest credit risk. |
|
Date |
22.04.2014 |
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
31-03-2014.
INFORMATION DECLINED
Management Non-Cooperative (91-22-66773333)
LOCATIONS
|
Registered Office / Corporate Office: |
Commerz, 3rd Floor, International Business
Park, Oberoi Garden City, Off Western Express Highway, Goregaon
(East), Mumbai – 400063, Maharashtra, India |
|
Tel. No.: |
91-22-66773333 |
|
Fax No.: |
91-22-66773334 |
|
E-Mail : |
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|
Website : |
DIRECTORS
As on 31.03.2014
|
Name : |
Mr. Vikas Oberoi |
|
Designation : |
Chairman and Managing Director |
|
Date of Birth/Age : |
08.09.1969 |
|
Date of Appointment : |
08.05.1998 |
|
|
|
|
Name : |
Mr. Anil Harish |
|
Designation : |
Independent, Non-Executive Director |
|
Date of Birth/Age : |
19.03.1954 |
|
Date of Appointment : |
18.07.2009 |
|
|
|
|
Name : |
Mrs. Bindu Oberoi |
|
Designation : |
Non-Independent, Non-Executive Director |
|
|
|
|
Name : |
Mr. Tilokchand P. Ostwal |
|
Designation : |
Independent, Non-Executive Director |
|
Date of Birth/Age : |
07.11.1954 |
|
Date of Appointment : |
12.12.2007 |
|
|
|
|
Name : |
Mr. Venkatesh Mysore |
|
Designation : |
Independent, Non-Executive Director |
|
Date of Birth/Age : |
30.12.1958 |
|
Date of Appointment : |
26.07.2011 |
|
|
|
|
Name : |
Mr. Saumil Daru |
|
Designation : |
Non-Independent, Executive Director |
|
Date of Birth/Age : |
04.12.1970 |
|
Date of Appointment : |
10.05.2014 |
KEY EXECUTIVES
|
Name : |
Mr. Bhaskar Kshirsagar |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2014
|
Category of
Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
212872504 |
64.85 |
|
|
33302442 |
10.15 |
|
|
33302442 |
10.15 |
|
|
246174946 |
75.00 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
246174946 |
75.00 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
2691995 |
0.82 |
|
|
36472 |
0.01 |
|
|
52130618 |
15.88 |
|
|
54859085 |
16.71 |
|
|
|
|
|
|
4220253 |
1.29 |
|
|
|
|
|
|
2846265 |
0.87 |
|
|
1124850 |
0.34 |
|
|
19007863 |
5.79 |
|
|
249689 |
0.08 |
|
|
200177 |
0.06 |
|
|
18555247 |
5.65 |
|
|
2750 |
0.00 |
|
|
27199231 |
8.29 |
|
Total Public shareholding (B) |
82058316 |
25.00 |
|
Total (A)+(B) |
328233262 |
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) |
328233262 |
0.00 |
|
Total (A)+(B)+(C) |
328233262 |
0.00 |
Shareholding
belonging to the category "Promoter and Promoter Group"
|
Sl.No. |
Name of the
Shareholder |
Details of Shares held |
Total shares (including
underlying shares assuming full conversion of warrants and convertible
securities) as a % of diluted share capital |
|
|
|
|
No. of Shares held |
As a % of grand
total (A)+(B)+(C) |
|
|
1 |
Vikas Ranvir Oberoi |
21,28,72,504 |
64.85 |
64.85 |
|
2 |
R S Estate Developers Private Limited |
3,33,00,000 |
10.15 |
10.15 |
|
3 |
Ranvir D Oberoi |
1,110 |
0.00 |
0.00 |
|
4 |
Santosh R Oberoi |
1,110 |
0.00 |
0.00 |
|
5 |
Bindu Ranvir Oberoi |
111 |
0.00 |
0.00 |
|
6 |
Gayatri Vikas Oberoi |
111 |
0.00 |
0.00 |
|
|
Total |
24,61,74,946 |
75.00 |
75.00 |
Shareholding
belonging to the category "Public" and holding more than 1% of the
Total No. of Shares
|
Sl. No. |
Name of the
Shareholder |
No. of Shares held |
Shares as % of
Total No. of Shares |
Total shares
(including underlying shares assuming full conversion of warrants and
convertible securities) as a % of diluted share capital |
|
|
|
|
|
|
|
1 |
Morgan Stanley Asia (Singapore) Pte |
8747216 |
2.66 |
2.66 |
|
2 |
SSIII Indian Investments Two Limited |
18555247 |
5.65 |
5.65 |
|
3 |
Third Avenue Trust on Behalf of Third Avenue International Value Fund Series |
4620688 |
1.41 |
1.41 |
|
4 |
T Rowe Price New Asia Fund |
5067613 |
1.54 |
1.54 |
|
|
Total |
36990764 |
11.27 |
11.27 |
Shareholding
belonging to the category "Public" and holding more than 5% of the
Total No. of Shares
|
Sl. No. |
Name(s) of the
shareholder(s) and the Persons Acting in Concert (PAC) with them |
No. of Shares |
Shares as % of Total
No. of Shares |
Total shares
(including underlying shares assuming full conversion of warrants and
convertible securities) as a % of diluted share capital |
|
|
|
|
|
|
|
1 |
SSIII Indian Investments Two Limited |
18555247 |
5.65 |
5.65 |
|
|
Total |
18555247 |
5.65 |
5.65 |
BUSINESS DETAILS
|
Line of Business : |
The company is engaged in business of real estate
development and hospitality. |
GENERAL INFORMATION
|
No. of Employees : |
928 (Approximately) |
|
|
|
|
Bankers : |
Axis Trustee Services Limited, Axis House, 2nd Floor,
Bombay Dyeing Mills Compound,, Pandurang Budhkar Marg, Worli, Mumbai,
Maharashtra - 400025, India |
|
|
|
|
Banking
Relations : |
--- |
|
|
|
|
Auditors : |
|
|
Name : |
P. Raj and Company Chartered Accountants |
|
|
|
|
Jointly controlled
entities / assets : |
· Sangam City Township Private Limited · ZACO Aviation · Oasis Realty · I-Ven Realty Limited · Saldanha Realty and Infrastructure Private Limited (from October 18 , 2013 till January 12, 2014) ·
Saldanha Realty and Infrastructure LLP (from
January 13, 2014) |
|
|
|
|
Entities where key
management personnel have significant influence |
· R S Estate Developers Private Limited · Oberoi Foundation · R. S. V. Associates ·
Oberoi Associates |
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
425000000 |
Equity Shares |
Rs.10/- each |
Rs.4250.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
328233262 |
Equity Shares |
Rs.10/- each |
Rs.3282.333 Millions |
|
|
|
|
|
A. Reconciliation of
shares outstanding at the beginning and at the end of the year
|
Particular |
in No. |
Rs. In Millions |
|
Equity shares |
|
|
|
At the beginning of the year |
328233262 |
3282.333 |
|
Add: Issue of fresh shares |
-- |
-- |
|
At the end of the year |
328233262 |
3282.333 |
B. Terms / rights
attached to equity shares
The Company has only one class of equity shares having par value of Rs.10 per share. Each equity share is entitled to one vote. The Company declares dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
During the year ended March 31, 2014, the amount of per share dividend recognised as proposed for distribution to equity shareholders was Rs.2 (Rs.2), which is subject to approval of shareholders in ensuing Annual General Meeting.
C. Details of
shareholders holding more than 5% shares in the Company
|
Particular |
in No. |
% Holding |
|
Equity shares |
|
|
|
Vikas Oberoi |
224313573 |
68.34% |
|
R S Estate Developers Private Limited |
33300000 |
10.15% |
|
SSIII Indian Investments Two Limited |
31055247 |
9.46% |
As per the of the Company, including its register of shareholders / members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.
D. Shares reserved
for issue under options
The Company instituted an Employees Stock Option Scheme (‘ESOP 2009’) pursuant to the Board and Shareholders’ resolution dated December 04, 2009. As per ESOP 2009, the Company is authorised to grant 14,43,356 options comprising equal number of equity shares in one or more tranches to the eligible employees of the Company and its subsidiaries. The employee will have the option to exercise the right within three years from the date of vesting of options. Under ESOP 2009, 13,49,553 options have been granted.
The following
information relates to the Employee Stock Options as on March 31, 2014
Rs. In Millions
|
Particulars |
Number of Options |
Exercise price (Rs.) |
Weighted average exercise price (Rs.) |
Weighted average contractual life of options as on the date of grant (years) |
|
Outstanding at the beginning of the year |
10,67,549 |
260 |
260 |
4.20 |
|
Less: Lapsed / forfeited / cancelled during the year |
30,712 |
-- |
-- |
-- |
|
Outstanding at the end of the year |
10,36,837 |
260 |
260 |
4.20 |
|
Exercisable at the end of the year |
7 |
260 |
260 |
4.20 |
The employee share based payments have been accounted using the intrinsic value method measured by a difference between the market price of the underlying equity shares as at the date of grant and the exercise price. Since the market price of the underlying equity shares on the grant date is same as exercise price of the option, the intrinsic value of option is determined as Nil. Hence no compensation expense has been recognised. Under the fair value method, the basic and diluted EPS would have been lowered by Rs.0.02.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
3282.333 |
3282.333 |
3282.333 |
|
(b) Reserves & Surplus |
24058.915 |
21781.477 |
19168.293 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total Shareholders’
Funds (1) + (2) |
27341.248 |
25063.810 |
22450.626 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
203.111 |
129.976 |
65.483 |
|
(c) Trade payables |
104.364 |
65.228 |
9.339 |
|
(d) Other long term liabilities |
429.866 |
270.492 |
281.332 |
|
(e) long-term provisions |
9.636 |
10.887 |
8.181 |
|
Total Non-current Liabilities (3) |
746.977 |
476.583 |
364.335 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade payables |
170.049 |
187.696 |
177.763 |
|
(c) Other current
liabilities |
6800.570 |
7966.828 |
7242.553 |
|
(d) Short-term provisions |
777.195 |
777.714 |
773.135 |
|
Total Current Liabilities (4) |
7747.814 |
8932.238 |
8193.451 |
|
|
|
|
|
|
TOTAL |
35836.039 |
34472.631 |
31008.412 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
5274.100 |
5439.436 |
5540.527 |
|
(ii) Intangible Assets |
19.375 |
18.470 |
31.648 |
|
(iii) Capital
work-in-progress |
4229.118 |
3804.250 |
2800.932 |
|
(iv) Intangible
assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
3166.123 |
3157.764 |
3487.957 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
2909.981 |
2923.912 |
2749.728 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
15598.697 |
15343.832 |
14610.792 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
663.600 |
637.500 |
280.000 |
|
(b) Inventories |
8754.076 |
5881.993 |
4026.039 |
|
(c) Trade receivables |
591.947 |
352.260 |
291.069 |
|
(d) Cash and cash
equivalents |
3444.634 |
9216.545 |
10515.009 |
|
(e) Short-term loans and
advances |
6432.908 |
2929.125 |
1142.765 |
|
(f) Other current assets |
350.177 |
111.376 |
142.738 |
|
Total Current Assets |
20237.342 |
19128.799 |
16397.620 |
|
|
|
|
|
|
TOTAL |
35836.039 |
34472.631 |
31008.412 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
6225.570 |
5950.457 |
3913.875 |
|
|
|
Other Income |
832.988 |
1474.493 |
1588.656 |
|
|
|
TOTAL (A) |
7058.558 |
7424.950 |
5502.531 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Operating costs |
2055.564 |
2193.069 |
1409.708 |
|
|
|
Employee benefits expense |
401.560 |
349.682 |
303.566 |
|
|
|
Other expenses |
267.999 |
205.240 |
130.403 |
|
|
|
Prior period income / (expenses) |
0.000 |
0.687 |
4.273 |
|
|
|
TOTAL (B) |
2725.123 |
2748.678 |
1847.950 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4333.435 |
4676.272 |
3654.581 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
2.617 |
3.365 |
2.633 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
4330.818 |
4672.907 |
3651.948 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
223.323 |
236.687 |
223.487 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
4107.495 |
4436.220 |
3428.461 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1156.254 |
1161.497 |
879.116 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
2951.241 |
3274.723 |
2549.345 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Sale of residential units |
41.655 |
54.857 |
115.228 |
|
|
|
Hospitality services |
506.232 |
450.422 |
437.953 |
|
|
TOTAL EARNINGS |
547.887 |
505.279 |
553.181 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
188.671 |
489.880 |
2.867 |
|
|
|
Capital Goods |
2.979 |
26.424 |
92.876 |
|
|
TOTAL IMPORTS |
191.65 |
516.304 |
95.743 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
8.99 |
9.98 |
7.77 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
41.81 |
44.10 |
46.33 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
65.98 |
74.55 |
87.60 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
14.44 |
16.13 |
13.87 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.15 |
0.18 |
0.15 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.61 |
2.14 |
2.00 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
3282.333 |
3282.333 |
3282.333 |
|
Reserves & Surplus |
19168.293 |
21781.477 |
24058.915 |
|
Net
worth |
22450.626 |
25063.810 |
27341.248 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
Total
borrowings |
0.000 |
0.000 |
0.000 |
|
Debt/Equity
ratio |
0.000 |
0.000 |
0.000 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
3913.875 |
5950.457 |
6225.570 |
|
|
|
52.035 |
4.623 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
3913.875 |
5950.457 |
6225.570 |
|
Profit |
2549.345 |
3274.723 |
2951.241 |
|
|
65.14% |
55.03% |
47.41% |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES OF
LONG-TERM DEBT: NOT AVAILABLE
|
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 |
Yes |
|
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 |
Yes |
|
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 |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN 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 |
|
LITIGATION DETAILS |
|||||||
|
Bench:- Bombay |
|||||||
|
Presentation Date : 27/05/2013 |
|||||||
|
Lodging No. : |
ITXAL/722/2013 |
Failing Date:- |
27/05/2013 |
Reg. No.:- |
ITXA/1401/2013 |
Reg. Date:- |
24/07/2013 |
|
|
|||||||
|
Petitioner:- |
THE COMMISSIONER OF INCOME TAX |
Respondent:- |
OBEROI REALTY LIMITED |
||||
|
Petn.Adv:- |
PADMA DIVAKAR (0) |
Resp. Adv.: |
I.C. LEGAL (0) |
||||
|
District:- |
MUMBAI |
||||||
|
|
|||||||
|
Bench:- |
DIVISION |
Category:- |
TAX APPEALS |
||||
|
Status:- |
Pre-Admission |
Stage:- |
|
||||
|
Last Date:- |
07/10/2014 |
|
|||||
|
Last Coram:- |
ACCORDING TO SITTING LIST ACCORDING TO SITTING LIST |
||||||
|
|
|
||||||
|
Act. : |
Income Tax Act,1961 |
Under Section 260A |
|||||
FINANCIAL PERFORMANCE
Standalone financials
During the year, the Total Revenue stood at Rs.7058.558 Millions as compared to Rs.7424.950 Millions for the previous year, representing a decrease of 4.93%; profit before tax stood at Rs.4107.495 Millions for the year as compared to Rs.4436.220 Millions for the previous year, representing a decrease of 7.41%; profit after tax stood at Rs.2951.241 Millions as compared to Rs.3274.723 Millions for the previous year, representing a decline of 9.88%.
MANAGEMENT DISCUSSION
AND ANALYSIS
Economic review
Global economy
The Financial Year 2014 witnessed many political and economic events across the globe that kept policy makers in most of the economies to focus on the path of consolidation. The statistics by researchers may have painted a very encouraging picture but the growth prospects remained broadly moderate. The quantitative easing by US post 2008 crisis benefited equity and commodity markets, yet it is unclear if the fundamentals of global economy are still strong. The world’s major economies continued to face structural flaws and policy constraints that hindered investments and growth in productivity.
Indian economy
The Indian economy showed signs of instability amidst the global economic and political imbalances in the second half of FY2014. The year gone by was more challenging due to high inflation, low GDP growth coupled with higher current account deficit. High interest rates further contributed in dampening the investment sentiments. A series of events both in domestic and international markets caused imbalance in capital flows, pressure on exchange rate, acute rise in inflation rate and fiscal imbalances in India. The inefficiencies in the policy making discouraged investments, further decelerating the growth projections.
Outlook
FY2015 outlook would be governed by the policies and framework to be announced by the new government. FY2015 is expected to remain challenging in light of the need for significant fiscal adjustment, inflation risks and the spiralling current account and fiscal deficits. Economists expect India’s GDP growth in the range of 5.0-6.0% for FY2015. The economic policies around the global economy may bring further complexity to the economic environment in the midst of uncertainty of the directions on the policy front. A strong vision on infrastructure and implementation of Real Estate Regulation and Development Bill may boost the investor confidence and related businesses. Amidst all these challenges, the company will target to ensure steady operations and deliver high quality projects for its customers. The Company will eagerly await formation of the new government and union budget for 2015.
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10508289 |
20/06/2014 |
7,500,000,000.00 |
Axis Trustee Services Limited |
Axis House, 2nd Flr, Bombay Dyeing Mills Compound,, Pandurang Budhkar Marg, Worli,, Mumbai, Maharashtra - 400025, INDIA |
C10744951 |
* Date of charge modification
FIXED ASSETS
· Buildings
· Electrical installations
· Furniture and fixtures
· Office equipments
· Plant and machinery
· Computer
· Vehicle
UNAUDITED STANDALONE
FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2014
Rs. In Millions
|
|
|
Quarter ended |
|
Sr No |
Particulars |
30.06.2014 Unaudited |
|
1 |
a) Net Sales / Income from Operations |
1410.700 |
|
|
b) Other operating Income |
18.600 |
|
|
Total (a+b) |
1429.300 |
|
2 |
Expenses : |
|
|
|
a) Operating Cost |
505.200 |
|
|
b) Employee Benefit Expenses |
106.500 |
|
|
c) Depreciation and Amortisation |
82.100 |
|
|
d) Other Costs |
52.200 |
|
|
Total Expenditure
(a+b+c+d) |
746.000 |
|
3 |
Profit from Operations before other income and finance costs (1 - 2) |
683.300 |
|
4 |
Other Income |
22.800 |
|
5 |
Profit from ordinary activities before finance costs (3 + 4) |
706.100 |
|
6 |
Finance Costs |
0.300 |
|
7 |
Profit from ordinary activities before tax (5 - 6) |
705.800 |
|
8 |
Tax Expense |
222.500 |
|
9 |
Net Profit for the period (7 - 8) |
483.300 |
|
10 |
Paid-up Equity Share Capital Equity Shares of Rs. 10/- each |
3282.300 |
|
11 |
Reserves excluding revaluation reserves as per Balance Sheet of previous accounting year |
-- |
|
12 |
Basic and Diluted Earnings per share (Face Value of Rs.10/-) |
|
|
|
Basic EPS |
|
|
|
- Before Extraordinary Items |
1.47 |
|
|
- After Extraordinary Items |
1.47 |
|
|
Diluted |
|
|
|
- Before Extraordinary Items |
1.47 |
|
|
- After Extraordinary Items |
1.47 |
|
|
|
|
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
13 |
Public Shareholding : |
|
|
|
a) Number of Shares |
8,20,58,316 |
|
|
b) Percentage of shareholding (%) |
25.00% |
|
14 |
Promoters and promoter group Shareholding |
|
|
|
a) Pledged / Encumbered |
|
|
|
b) Non-Encumbered |
|
|
|
- Number of Shares |
24,61,74,946 |
|
|
- Percentage of shares (as a % of the total shareholding of Promoter and Promoter Group) |
100.00% |
|
|
- Percentage of shares (as a % of the total share capital of the company) |
75.00% |
|
|
|
|
|
B |
Investors
Complaints |
|
|
|
Pending at the beginning of the quarter |
-- |
|
|
Received during the quarter |
1 |
|
|
Disposed of during the quarter |
1 |
|
|
Remaining unresolved at the end of the quarter |
-- |
Note
a) The above results for the quarter ended June 30, 2014 have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on July 19, 2014 and have been subjected to a Limited Review by the Statutory Auditors of the Company.
b) The figures of the last quarter are the balancing figures between audited figures in respect of full financial year and published year to date figures up to the third quarter of the respective financial year.
c) Since the nature of the real estate business of the Company is such that profits / losses do not necessarily accrue evenly over the period, the result of a quarter may not be representative of the profits / losses for the year.
d) Previous period figures have been regrouped, re-arranged and re-classified wherever necessary to conform to current period's classification.
e) The useful life of fixed assets have been revised in accordance with the Schedule II to the Companies Act 2013. The impact of change in useful life of fixed assets on depreciation expense for the quarter amounts to Rs. 261.38 lakh and on opening balance of general reserve amounts to Rs. 15.31 lakh (net of deferred tax).
f) Unaudited Standalone segment wise revenue, results and capital Employed for the quarter ended June 30, 2013.
|
|
|
Quarter ended |
|
Sr No |
Particulars |
30.06.2014 Unaudited |
|
|
Segment Revenue |
|
|
(a) |
Real estate |
1157.600 |
|
(b) |
Hospitality |
271.700 |
|
|
Total |
1429.300 |
|
|
Less: Inter segment revenue |
-- |
|
|
Net income from
operations |
1429.300 |
|
|
|
|
|
|
Segment Results (profit before tax,
interest and unallocable expenditure) |
|
|
(a) |
Real estate |
709.100 |
|
(b) |
Hospitality |
(16.800) |
|
|
Total |
692.300 |
|
|
|
|
|
|
Add/(less) |
|
|
i) |
Interest and finance charges |
(0.300) |
|
ii) |
Unallocable income net of Unallocable Expenses* |
13.800 |
|
|
Total |
705.800 |
|
|
Capital Employed (Segment assets
less segment liabilities) |
|
|
(a) |
Real estate |
21539.800 |
|
(b) |
Hospitality |
2442.300 |
|
|
Total capital
employed in segment |
23982.100 |
|
|
Add: Uallocated
capital employed |
3840.900 |
|
|
|
|
|
|
Total capital
employed in the company |
27823.000 |
* Unallocated capital employed includes
temporary surplus Income earned on temporary investment of the same has been
show in ‘Unnnallocable Income net of Unallocable Expenditure’.
AS PER WEBSITE
PRESS RELEASES
OBEROI REALTY RAISES RS.7500.000
MILLIONS VIA NCDS FOR TATA LAND PAYMENT
Tue, May 13 2014
Funds to be partly used for purchase of a 25-acre land parcel, which the firm
agreed to buy for Rs 11550.000 Millions.
Bangalore: Oberoi Realty Limited has raised Rs.7500.000 Millions by selling non-convertible debentures (NCDs) to part-fund its purchase of a 25-acre land parcel in suburban Mumbai.
The Mumbai-based developer had emerged as the highest bidder for the piece of land in Borivali that was auctioned by Tata Steel Limited. Oberoi Realty had agreed to buy the land for Rs.11550.000 Millions.
“For the NCD issue, we have offered securities in the form of cash flows from one of our residential projects,” Saumil Daru, chief financial officer of Oberoi Realty, said in an analyst call on Monday. The debentures have been issued by Incline Realty private Limited, a unit of Oberoi Realty.
Chairman and managing director Vikas Oberoi said the payment for the land has been made and approvals are being awaited. He didn’t disclose payment and approval details, saying they were confidential.
CARE Ratings has assigned an AA+ rating to the issue, ascribing it to the experienced management of the company, the group’s robust business risk profile and strong market position in the Mumbai real estate market, low debt and healthy cash accruals.
The ratings company has, however, warned about risks such as delays in project
execution, poor sales, high dependence on advances from customers to fund the
projects and the developer’s concentration in the premium housing segment which
is susceptible to slowing economic growth
Last week, Oberoi Realty, along with its project partner Sahana group, named Ritz-Carlton as its hospitality partner for a 17-acre project in Mumbai’s Worli area. Ritz-Carlton will also manage luxury residences for Oberoi Realty in the same project.
In an analyst presentation, the developer said it had availed of a Rs.300 crore construction loan for the project, in which the residential component is currently under construction
On Saturday, Oberoi Realty reported a 46.8% drop in March quarter net profit to Rs.770.000 Millions from a year ago. Revenue fell 27.4% to Rs.2205.000 Millions
In a 12 May report, Sandipan Pal, an analyst at brokerage
firm Motilal Oswal Securities Limited, said that though pre-sales had improved
in the March quarter on a quarterly basis, annual pre-sales have been
significantly low.
Shares of Oberoi Realty lost 1.74% to close at Rs.203.40
each on Monday on BSE, while the exchange’s benchmark Sensex index gained 2.42%
to end at 23,551 points and the realty index rose 0.92% to 1,433.64.
OBEROI REALTY FORAYS
INTO NCR WITH TOWNSHIP PROJECT
Friday, 9 May 2014
Having established a significant presence in Mumbai, Oberoi Realty has entered the residential market in north India. The realtor, which recently acquired Tata Steel's 25-acre Borivali land parcel for Rs 1,150, has signed a memorandum of understanding (MoU) for a township project in National Capital Region (NCR).
Speaking exclusively to dna, Vikas Oberoi, chairman and managing director, Oberoi Realty, said, "Yes, I have an MoU in place. It's an interesting project, but we will take it to market when ready for launch. It's a township with development potential of approximately five million square feet."
The realtor however did not share further details on the township and related timelines for its launch into the market. With this MoU in place, Oberoi Realty now joins other city-based realtors such as Tata Housing and Godrej Properties that have launched premium residential projects in the Delhi-NCR market.
In another development, the realtor has got on board The Ritz-Carlton as its international hospitality partner for India's first hotel-cum-serviced residences project in Worli, Mumbai. Developed by Oasis Realty (a joint venture between Sahana and Oberoi Realty), the 238-rooms luxury hotel will get operational in 2016-17 and will be branded and operated by The Ritz-Carlton (a wholly-owned subsidiary of global hotel major Marriott International Inc).
On cost of developing and funding the project, Oberoi said it (hotel) will get built from the premium the company will get from the residential component. "The hotel project will involve an investment of Rs 750 crore that will be funded through sales of residential apartments.
"The hotel component will end up being 15-20% of the cost of the residential tower. And if we are able to get 20% premium as a result of all the facilities and services, then the hotel has done its job as far as finances go," said Oberoi, adding that the hotel will also give the company regular annuity income.
The Ritz-Carlton will also manage the serviced-residences wherein the apartments will be sold to potential buyers in the market while all the services component will be taken care of by the international hotel operator. In all the residential tower will have 140 apartments ranging from 8,500 sq. ft. to 9,000 sq. ft. area and above.
The largest apartment (two units) is spread across 20,000 sq. ft. and is likely to fetch the developer over Rs 100 crore each (taking the current rate of Rs 50,000 per sq. ft. into consideration).
"Nineteen apartments were sold in its Worli project (on GSK land) and we have moved them all to this serviced residences project at the same cost. Some new sales have happened at a price of Rs 50,000 per square feet excluding floor rise," said Oberoi.
Constructed by Samsung C&T Corporatifon, the residential component has reached about 45 floors and the hotel tower is currently at eight floors. While the original design plan did have commercial (office) space, the realty company has converted that area to residential.
Oberoi Realty
announces The Ritz-Carlton as hospitality partner for iconic Worli development
Residences to be managed by the hotel for its mixed use development
Worli, Mumbai, May 08, 2014: Oberoi Realty today announced that The Ritz-Carlton will be the hospitality partner for its iconic mixed use development in Worli, Mumbai, to be developed by Oasis Realty (a joint venture between Sahana and Oberoi Realty). This mixed-use development consists of two high-rise towers; The Ritz-Carlton, Mumbai and Residences- managed by The Ritz-Carlton.
The Ritz-Carlton Hotel Company operates 85 luxury hotels and resorts in major destinations in 26 countries worldwide. This development which aims to be a global icon for Mumbai will mark the entry of The Ritz-Carlton into India’s financial capital. Strategically located in Worli, less than a kilometer from the prominent Bandra-Worli sea link, the development has been designed to be a luxury landmark adorning the Arabian Sea.
Speaking on the occasion, Mr. Vikas Oberoi, Chairman and Managing Director, Oberoi Realty Limited said, “We are extremely pleased to have The Ritz-Carlton as the hospitality partner for our mixed use development in Worli. Globally, The Ritz-Carlton is known for its legendary services and they have splendid properties at the most sought after locations worldwide. I am confident that this partnershipwill enable us to craft an iconic development known for its unmatched quality and finest service standards for guests and residents alike. We are positive that we will add a luxury landmark to the skyline of Mumbai."
The Ritz-Carlton Hotel will have 238 rooms, two specialty and fine dining restaurants, an ocean view bar, the spa and expansive banquet spaces amongst other facilities. The Ritz-Carlton is globally recognized for its unwavering commitment to service, both in its hotels and in the communities in which it operates. The Ritz-Carlton has been recognized with numerous awards for being the gold standard of hospitality with flawless, personalized service and exceptional properties all with a sense of place.
Elaborating on the association with Oberoi Realty, Mr. Paul Foskey, Executive Vice President, Hotel Development, Asia-Pacific - Marriott International said, “We have been searching for the perfect location for a premier hotel in Mumbai for several years with the right partners. This site offers everything hotel guests could want—a prime business location, stylish and contemporary design in this historically rich and vibrant city.”
The development is designed by KPF (Kohn Pedersen Fox
Associates), USA; one of the world’s leading architectural firms globally
recognized for design excellence and innovation in their buildings. The
interiors for the hotel tower will be crafted by leading interior designer,
Tony Chi who will take inspiration from Indian culture to create sleek
interiors that offer a contemporary sense of place. The project is being
constructed by Samsung C&T Corporation which already has a track record of
constructing some of the world’s tallest buildings like the Burj Khalifa in UAE
and the Petronas Tower in Malaysia. LERA (Leslie E. Robertson Associates), USA,
is the structural consultant and several other leading world-renowned
consultants for services like wind engineering, façade engineering, MEP services, vertical transportation and
landscaping are already on board for this project.
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 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.61.05 |
|
|
1 |
Rs.101.83 |
|
Euro |
1 |
Rs.81.55 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYA |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
YES |
|
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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
68 |
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.