Wednesday, September 09, 2009
Nifty September 2009 futures were at 4821 at a premium of 6.75 points as compared to the spot closing of 4814.25. Turnover in NSE's futures & options (F&O) segment was Rs 53,935.19 crore, much lower than Rs 67,576.95 crore on Tuesday, 8 September 2009.
Housing Development and Infrastructure (HDIL) September 2009 futures were at premium at 326 compared to the spot closing of 321.
IFCI September 2009 futures were at slight premium at 59.90 compared to the spot closing of 59.40.
Tata Steel September 2009 futures were at discount at 459.30 compared to the spot closing of 460.65.
In the cash market, the S&P CNX Nifty rose 9 points or 0.19% at 4814.25.
The Sensex ended the volatile session higher supported by index heavyweights RIL, Hindalco and JP Associates. Buying was seen in oil & gas, banking and healthcare stocks, whereas realty, teck and auto stocks were underpressure.
The index opened flat with a loss of 12.58 points, at 16,111.09 on Wednesday on mixed global cues. It continued to trade in a narrow range amid volatility through the day. Finally it closed in green after trading in a subdued manner, touching a high of 16,215.74 and low of 16,044.77.
BSE Midcap index dipped 0.05%, while Smallcap index rose 0.06%.
Asian stocks fell as Alibaba.com`s chairman sold a stake and Lenovo Group shareholders reduced their holdings. Japanese benchmark index Nikkei fell 81.09 points, or 0.78%, to end at 10,312.14.Hong Kong`s Hang Seng index declined 218.77 points, or 1.04%, to close at 20,851.04.China`s Shanghai Composite increased 15.78 points, or 0.54% to settle at 2,946.26.
European stocks fell as investors speculated that a six-month rally in equity prices has outpaced the prospects for earnings growth. UK`s benchmark index FTSE 100 fell 23.74 points, or 0.48%, to trade at 4,971.08. French benchmark index CAC 40 sank 9.06 points, or 0.25%, to trade at 3,670.30. Germany`s benchmark index DAX decreased 25.52 points, or 0.50%, to trade at 5,509.67 (4.10 pm)
The Sensex ended the day with a gain of 59.88 points, or 0.37% at 16,183.55 after touching a high of 16,215.74 and a low of 16,044.77. The broad-based NSE Nifty climbed 9.00 points, or 0.19% at 4,814.25 after hitting a high of 4,825.05 and a low of 4,783.50.
Major gainers in the 30-share index were Reliance Industries (4.54%), Hindalco Industries (4.14%), Jaiprakash Associates (1.88%), Housing Development Finance Corporation (1.32%), HDFC Bank (1.29%), and Tata Consultancy Services (1.21%).
On the other hand, DLF (3.51%), Bharti Airtel (3.36%), Hero Honda Motors (2.44%), Wipro (1.75%), Reliance Communications (1.67%), and Reliance Infrastructure (1.11%) were the major losers in the Sensex.
Overall market breadth was negative. Out of the total 2,882 stocks traded at BSE, 1,280 advanced, 1,530 declined while 72 remained unchanged.
Vikash Agarwal, head-research, Devkinandan Consultants commenting on the market outlook said, ``Nifty is likely to touch 4,463 and Sensex may touch 15,007 level, if Nifty trades below 4,659 mark and Sensex below 15,640. If the markets move above 4,659 and 15,640 levels, then Sensex and Nifty may touch 4,856 and 16,273 levels, respectively.
Key benchmark indices extended gains for the fourth straight session on a revival in monsoon and after a recent survey showed an improvement in business confidence of India Inc. An near 5% rally in index heavyweight Reliance Industries (RIL) which has a 13.18% weightage, the highest, in the Sensex, aided the upmove. The Sensex rose 59.88 points or 0.37%, up 138.78 points from the day's low and off 32.19 points from the day's high. Both the key indices - the Sensex and Nifty achieved highest closing in more than 15 months
Chinese stocks ended higher after an initial slide and European stocks reversed early fall. But most other Asian markets ended lower.
The market breadth, indicating the overall health of the market, was negative after a strong start. Metal stocks rose on sustained buying following firm global metal prices, with Hindalco surging nearly 4%. However, realty shares extended losses for the second consecutive session on profit booking.
The market was volatile. After an initial slide, the market bounced back shortly. However, the market failed to sustain higher level and moved between positive and negative zone later. A rally in index heavyweight Reliance Industries (RIL) pushed the key indices to day's high in mid-morning trade. The market pared gains in early afternoon trade on profit booking. The market once again slipped into the red in afternoon trade as European markets opened lower. Further gains in RIL lifted Sensex to a fresh intraday high in mid-afternoon trade.
European markets reversed early fall and were now trading higher. Key benchmark indices in UK, Germany and France were up by between 0.31% and 0.50%
Most Asian markets were trading lower today, 9 September 2009 led by Japanese exporters following the yen's rise against the dollar. Key benchmark indices in South Korea, Japan, Hong Kong, Taiwan, and Singapore were down by between 0.39% and 1.04%. However China's Shanghai Composite ended 0.54% higher
US markets gained on Tuesday, 8 September 2009, as crude prices surged more than $3 a barrel and gold made a run at $1,000 an ounce before pulling back. The Dow Jones Industrial Average added 56.07 points, or 0.6%, to 9,497.34. The broader S&P 500 index advanced 8.99 points, or 0.9%, to 1,025.39, and the Nasdaq Composite index rose 18.99 points, or 0.9%, to 2,037.77.
US market had re-opened after a long weekend after remaining closed on Monday, 7 September 2009 on account of the Labor Day holiday.
Warren Buffett, the billionaire investor, and Alan Greenspan, the former US Federal Reserve chairman, have both issued cautions to those who say the US economy is in the final stages of recession. Buffett in an interview with a foreign media firm said the world's largest economy was not out of problems yet. Meanwhile Greenspan, speaking via video link to a conference in Mumbai, India, said banks must raise capital levels to weather future shocks. The former US Federal Reserve chairman also warned that capital injected into the banking system could fuel inflation.
The Group of 20 finance ministers and central bankers said on 5 September 2009 that they would not remove economic stimulus until the global recovery was well entrenched.
Trading in US index futures showed the Dow could fall 6 points at the opening bell on Wednesday, 9 September 2009
Closer home, in an important development, the market regulator Securities and Exchange Board of India (Sebi) is set to tweak takeover regulations, chairman C B Bhave said on Tuesday, 8 September 2009. A committee would be formed to examine the entire takeover code fairly soon, Bhave told reporters on the sidelines of an interactive session in Bangalore. The Sebi Substantial Acquisition of Shares and Takeovers Regulation was put in place in 1997. Since then, changes have been made under the framework of these original guidelines.
Meanwhile, a plan to encourage overseas firms to raise capital in India through Indian Depository Receipts, or IDRs, as they are popularly known, appears to have hit a road block, with the revenue department not in favour of granting long-term capital gains tax benefits for such issues.
IDRs are derivative instruments like Global Depository Receipts (GDRs) and American Depository Receipts (ADRs) which have shares as the underlying asset and denominated in the local currency - the rupee. These instruments will help foreign companies raise capital in India by listing IDRs on local exchanges.
Minister of State for Finance Namo Narain Meena on Tuesday, 8 September 2009 said the government is committed to clear the Insurance Amendment Bill that seeks to bring in more foreign investments in the sector. Currently, foreign direct investment (FDI) in insurance is capped at 26% and the bill seeks to raise the FDI ceiling to 49%. Ever since the Congress-led United Progressive Alliance (UPA) government returned to power for a second term in May 2009 with a decisive mandate, investors have been betting that the government will pursue economic reforms to boost growth.
Meanwhile, Reserve Bank of India (RBI) Governor Duvvuri Subbarao said the central bank may have to reverse its easy monetary policy sooner than most other countries as inflationary pressures are mounting quickly. Subbarao added that India's strong fundamentals, which helped drive its strong economic growth before the global financial crisis, remain intact and will accelerate any future upturn.
The Reserve Bank of India (RBI) Deputy Governor K.C. Chakrabarty said on Wednesday that the central bank is not concerned about rising bond yields. He said interest rates would not come down until banks lowered their rates.
Finance Minister Pranab Mukherjee on Tuesday, 8 September 2009 said the government is constantly reviewing the economic situation to decide until when the stimulus measures need to be continued and it is not desirable to plan the exit strategy now
On Monday, 7 September 2009 the Finance Minister said that a slowdown is likely in growth rate in the second and third quarters of the current fiscal due to less agricultural growth. He was a little doubtful of 6.1% expansion achieved during the first quarter of this fiscal. The economy will not grow at the pace it did in April-June period, but that does not warrant a downward revision of growth forecast.
Mukherjee said that he is, however, not revising the target of 6% plus growth rate for the fiscal as the economy will expand at a higher pace in the fourth quarter
A revival in rains is aiding monsoon-sown crops and reserves of grains are sufficient to meet shortages from drought that has hit about half the country, Prime Minister Manmohan Singh said on Wednesday, 9 September 2009
Meanwhile, the Oil India IPO which opened for bidding on 7 September 2009, was subscribed 4 times by 16:00 ST on day three, data on the National Stock Exchange showed. The Oil India initial public offer (IPO) will close on 10 September 2009. OIL, which produces 3.5 million tonnes of oil annually, will be listed on the bourses on 29 September 2009. The government has fixed Rs 950-1,050 per share price band for the initial public offering of Oil India (OIL), the second state-run firm to hit the market this year after NHPC, and will raise up to Rs 2,777 crore.
The response to Oil India IPO is being closely watched after a tepid secondary market debut of power sector firms NHPC and Adani Power, recently.
The BSE 30-share Sensex was up 59.88 points or 0.37% to 16,183.55, its highest closing since 30 May 2008. The Sensex opened 12.58 points higher at 16,111.09. The Sensex lost 78.90 points the day's low of 16,044.77 in early trade. The barometer index gained 92.07 points at the day's high of 16,215.74 in mid-afternoon trade.
The S&P CNX Nifty was up 9 points or 0.19% to 4814.25, its highest closing since 30 May 2008. Nifty September 2009 futures were at 4821 at a premium of 6.75 points as compared to the spot closing.
The Sensex has jumped 785.22 points or 5.09% in four trading days to 16,183.55 on 9 September 2009 from a recent low of 15,398.33 on 3 September 2009 as revival of monsoon rains, strong response to the initial public offer of Oil India, a survey showing an improvement in business confidence of India Inc and firm global stocks boosted sentiments.
Stocks have risen sharply this year on increased global risk appetite triggered by hopes of a recovery in the global economy after a setback from a financial sector crisis. The Sensex is up 6536.24 points or 67.75% in calendar year 2009 as on 9 September 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 8023.15 points or 98.31% as on 9 September 2009. FII inflow in calendar year 2009 totaled Rs 41536.10 crore (till 8 September 2009).
Coming back to today's trade, the market breadth, indicating the overall health of the market, was negative. On BSE, 1536 shares declined as compared with 1299 that advanced. A total of 76 shares remained unchanged. The breadth was strong in early trade.
The BSE clocked a turnover of Rs 6122 crore, lower than Rs 7190 crore on Tuesday, 8 September 2009. Turnover in NSE's futures & options (F&O) segment was Rs 53,935.19 crore, much lower than Rs 67,576.95 crore on Tuesday, 8 September 2009.
The BSE Mid-Cap index fell 0.05% to 5,939.81 and the BSE Small-Cap index rose 0.06% to 7,183.38. Both these indices underperformed the Sensex
Sectoral indices on BSE displayed mixed trend. The BSE Oil & Gas index (up 2.36%), and the BSE Bankex (up 0.59%), outperformed the Sensex.
The BSE Metal index (up 0.24%), BSE Teck index (down 1.09%), BSE Consumer Durables index (down 0.65%), BSE Realty index (down 1.65%), the BSE PSU index (down 0.49%), the BSE Auto index (down 0.88%), the BSE Capital Goods index (up 0.80%), the BSE FMCG index (down 0.56%), the BSE Power index (down 0.32%), BSE IT index (down 0.34%), the BSE Healthcare index (up 0.35%), underperformed the Sensex.
Among the 30-member Sensex pack, 18 declined while the rest gained
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) jumped 4.79% to Rs 2174.50 on 18.12 lakh shares. It was the top gainer from the Sensex pack. The stock extended Tuesday's over 3% gain. As per reports, RIL is likely to begin supplying natural gas from KG-D6 fields to state-run gas utility GAIL India's LPG plants this week.
Earlier on 28 August 2009, GAIL India signed a Gas Sales and Purchase Agreement (GSPA) for buying 2.6 million standard cubic meter per day of gas from RIL's KG-D6 fields at the Government approved price of $4.2 per million British thermal unit (mBtu).
Meanwhile, India's largest thermal power producer by sales NTPC on Saturday, 5 September 2009 moved the Supreme Court seeking quashing of the Bombay high court order giving permission to the Mukesh Ambani's RIL to amend its plea in its on-going dispute with the country's largest utility on the supply of gas from the Krishna-Godavari basin.
RIL had arrived at an agreement with the NTPC to supply 12 million standard cubic metres per day (mmscmd) gas at $2.34 per million British thermal unit (mmBtu) pusuant to the global competitive bidding.
However, RIL sought to wriggle out and avoid the Gas Sale & Purchase Agreement (GSPA) on one pretext or the other, compelling NTPC to move Bombay high court for enforcement of its agreement with the contractor RIL.
Another dispute between the Mukesh Ambani promoted RIL and Anil Ambani promoted Reliance Natural Resources (RNRL) is now in the Supreme Court. The dispute between RIL and RNRL is centered around the price and supply of gas from Krishna Godawari (KG) basin operating by RIL to RNRL for the power plants of Anil Dhirubhai Ambani group. Meanwhile the NTPC-RIL case also deals with price and supply of gas to NTPC's power plants from RIL.
India's largest thermal power producer by sales NTPC fell 0.77% while RNRL slipped 0.35%.
A rally in crude oil weighed on state-run oil marketing firms. HPCL (down 2.68%), BPCL (down 4.26%), and Indian Oil Corporation (down 3.36%), declined. Higher crude oil prices will increase under-recoveries of state-run oil firms on domestic sale of petrol, diesel, LPG and kerosene at a controlled price.
Light, sweet crude futures for delivery in September 2009, surged by $3.08 a barrel, or 4.53% to $71.10 a barrel on the New York Mercantile Exchange on Tuesday, 8 September 2009 as a slump in the dollar spurred demand for commodities
Aban Offshore fell 2.68% on reports the firm is likely to lose a contract for deploying its drill ship in Ghana, which could dent its revenue by Rs 744 crore in the current financial year.
Metal stocks extended recent gains after LMEX, a gauge of six metals traded on the London Metal Exchange jumped 2.43% on Tuesday, 8 September 2009. Back home, the world's largest steel marker ArcelorMittal's deal to become a co-promoter of India's Uttam Galva Steel has also boosted sentiment. Uttam Galva Steels jumped 5% at Rs 137.85, its lifetime high
India's largest private sector steel marker by sales Tata Steel gained 0.84%. The company on Monday, 7 September 2009 said steel sales at its Indian operations rose 25% to 492,000 tonnes in August 2009 over August 2008. Saleable steel production rose 14% to 526,000 tonnes while sales of long products jumped 81%.
Domestic operations contribute about 25% of the group's total annual global capacity, including Europe's second-largest steelmaker Corus.
Usha Martin Steel (up 10.28%), ISMT (up 7.03%), National Steel & Agro Industries (up 9.78%), Visa Steel (up 7.68%), Mahindra Ungine Steel Company (up 9.82%), surged.
Hindalco Industries (up 3.87%), Sterlite Industries (up 1.31%), Sesa Goa (up 1.10%), were the other gainers from the metal pack.
India's largest mobile services provider by sales Bharti Airtel fell 3.32% to Rs 410 and was the top loser form the Sensex pack. The exclusive talks between Bharti and MTN will end on 30 September 2009 for the first stage of equity swap. As per reports, post the equity swap, the complete merger may take another three to five years. The Bharti-MTN arrangement would be fully operational by mid-2010 and its success would decide the timeline of the full merger. Also Bharti needs SingTel's nod for certain pre-approved matters but MTN expects SingTel would waive the right of first refusal (ROFR) or agree to joint discussions, reports added.
Bharti and South African telecom operator MTN have been in negotiations since 25 May 2009 on a $23 billion cash and share-swap deal aimed at an eventual full merger. The deadline for the talks has been extended twice.
India's largest private sector power generation company by sales Reliance Infrastructure shed 0.94% on reports the Maharashtra Electricity Regulatory Commission has ordered probe into the company over the recent tariff hikes.
Banking shares were mixed after Reserve Bank of India Governor's comments about monetary tightening.
India's largest private sector bank by net profit ICICI Bank rose 0.32%. The bank's managing director Kochhar said on 8 September 2009 credit growth in India is likely to pick up in the second half of this year.
India's largest bank by net profit and branch network State Bank of India fell 0.32%. Chairman O.P. Bhatt on 8 September 2009 said the bank's earnings are likely to grow 30-35% in the current quarter. SBI's retail loan growth is likely to be twice of what it was in the year-ago quarter, he said.
SBI has reduced rates on its flagship deposit scheme, the 1000-day deposit, by 25 basis points to 7% with effect from 8 September 2009. Now deposit of more than two years but less than three years will be clubbed together with an interest rate of 7%. Earlier deposits for tenures of two years but less than 1,000 days had an interest rate of 7% while the 1000-day deposit had an interest rate of 7.25%.
India's second largest private sector bank by net profit HDFC Bank gained 0.99%.
Bank of Baroda rose 3.39% after the bank's chief said the bank is looking at a overall loan growth of 20% in 2009-2010 and has seen no mark-to-market losses in the current quarter despite a muted treasury growth.
India's largest mortgage lender by total income Housing Development Finance Corporation reversed early fall and settled 1.19% higher at Rs 2524.95. The stock had dipped to a low of Rs 2453 earlier in the day on fears a surge in inflation may stoke inflationary pressure in the economy and prop up interest rates. Rise in rates may crimp lending.
IFCI jumped 3.38% on reports the government has asked the company to induct a strategic partner, after it failed to sell a 26% stake in 2007.
Auto stocks dropped for the second day in a row on profit taking after a recent sharp surge triggered expectations that the forthcoming festive season will boost auto sales. India's largest truck marker by sales Tata Motors lost 0.83%. The stock had surged 11.32% on Monday, 8 September 2009.
India's largest tractor maker by sales Mahindra & Mahindra slipped 0.45%. India's top small car maker by sales Maruti Suzuki fell 0.69%.
India's largest bike maker by sales Hero Honda Motors fell 2.67%. India's second largest bike maker by sales Bajaj Atuo shed 2.10%.
Car sales rose 26% to 120,669 units in August 2009 over August 2008 boosted by new launches and availability of cheaper loans, data released by the industry body Society of Indian Automobile Manufacturers on 8 September 2009, showed. Sales of trucks and buses rose 18.5% to 40,624 units and motorcycle sales rose 26% to 611,173 units.
Realty stocks dropped for second day on profit booking after a recent rally triggered by reports prices of residential units in key regions like New Delhi-NCR (National Capital Region) and Mumbai have moved up 10-15% on gradual return of residential property buyers.
India's largest realty developer by sales DLF lost 3.13%. The stock declined despite reports the company plans to drop those projects where margins are low and rationalise construction activities as it wants to focus on improving the company's cash flow and reduce debt by half.
Phoenix Mills (down 1.33%), Unitech (down 0.44%), Omaxe (down 0.72%), Indiabulls Real Estate (down 1.76%), and Sobha Developers (down 0.78%) edged lower
The demand for residential projects in major cities is picking up on lower home loan rates, property price cuts by developers and a recovery in the job market. Realty market had slumped last year amid a global credit crunch and buyers fearing job losses.
India's largest power equipment maker by sales Bharat Heavy Electricals (Bhel) fell 0.26% to Rs 2234. The stock hit day's high of Rs 2285 boosted by reports the company hopes to get orders worth at least Rs 10900 crore from state-owned NTPC as the utility plans to add generators.
IT stocks were mixed as rise in American depository receipts (ADR) was offset by firm rupee against the dollar. A firm rupee impacts operating profit margins of IT firms negatively as the sector derives a lion's share of revenue from exports. India's largest software services exporter by sales Tata Consultancy Services rose 1.44%. TCS's Chief Executive S. Ramadorai on 7 September 2009 said TCS is seeing stability on the ground and the company's demand pipeline is good.
India's second largest software services exporter by sales Infosys was unchanged at Rs 2200. Its ADR rose 2.49% on 8 September 2009. India's third largest software services exporter by sales Wipro slipped 1.77% despite a 2.92% rise in its ADR on 8 September 2009
The partially convertible rupee was now hovering at 48.54, lower than Tuesday's close of 48.47/48
FMCG pivotals dipped for the second day as investors shifted their exposure from the so-called defensive sector. India's largest FMCG company by sales Hindustan Unilever lost 0.54% after sliding nearly 3% on Tuesday, 8 September 2009.
ITC (down 0.92%), Dabur India (down 2.34%), Britannia Industries (down 0.24%), Bata India (down 1.29%), Godrej Consumer (down 7.40%), edged lower
IFCI notched volume of 2.99 crore and topped volume chart on BSE. Unitech (1.40 crore shares), Ispat Industries (1.08 crore shares), GVK Power & Infrastructure (97.87 lakh shares), and Suzlon Energy (95.32 lakh shares), followed IFCI in that order
Reliance Industries was the top traded counter on BSE with turnover of Rs 387.79 crore followed by DLF (Rs 185.97 crore), IFCI (Rs 179.11 crore), Unitech (Rs 157.91 crore), and HDIL (Rs 149.39 crore).
Tea stocks gained on reports average tea prices rose to Rs 133.80 a kilogram in seven months till July 2009 from Rs 106.27 per kg the year before on the back of fall in production.
Warren Tea (up 6.98%), Diana Tea (up 4.50%), McLeod Russel (up 7.60%), Harrisons Malayalam (up 6.17%), Assam Company (up 4.81%), Tata Tea (up 1.45%), Goodricke Group (up 5.11%), and Jayshree Tea (up 4.42%), rose.
Tea production in India fell by 3% to 127 million kilogram (kg) in July 2009 over July 2008 on a decline in output mainly in West Bengal, though higher realisation pushed up exports marginally, according to the Tea Board.
FDC spurted 6.53% after its board approved buyback of equity shares of the company at a maximum price of Rs 60 per share, a 19.05% premium over the ruling market price. The company announced the buyback plan during trading hours today, 9 September 2009.
Opto Circuits (India) spurted 10.53% on reports the has raised Rs 400 crore by way of a qualified institutional placement. The announcement was made before market hours today, 9 September 2009
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
9/9/2009 533029 ALKALI SANDEEP S SABOO S 71300 263.64
9/9/2009 500045 BELLA STE AL JMP SECURITIES PVT LTD B 1321966 3.92
9/9/2009 500045 BELLA STE AL JMP SECURITIES PVT LTD S 2204666 4.03
9/9/2009 526853 BILCARE LT BAJAJ ALLIANZ LIFE INSURANCE CO.LTD B 497590 389.00
9/9/2009 526853 BILCARE LT SANJAY OMKARNATH MALPANI S 250000 389.03
9/9/2009 526853 BILCARE LT RAJESH OMKARNATH MALPANI S 250000 389.00
9/9/2009 511607 BIR SHL EDU HITESH SHASHIKANT JHAVERI B 36329 85.99
9/9/2009 531932 C G IMPEX SHAH RAJESH C. B 50000 7.80
9/9/2009 531932 C G IMPEX NILESH DOSHI B 108101 7.52
9/9/2009 531932 C G IMPEX DAXABEN VASANTKUMAR SHAH S 70150 7.50
9/9/2009 517973 DMC INTER J A FINANCIAL AND MANAGEMENT CONSULTANTS PVT LTD B 35849 12.19
9/9/2009 517973 DMC INTER CENTENARY SOFTWARE PVT LTD S 25200 12.41
9/9/2009 532022 FILAT FASH PRAKASH KUMAR DEVSHILAL SHETH B 42000 76.85
9/9/2009 532022 FILAT FASH AYODHYAPATI INVESTMENT PVT LTD B 72391 79.58
9/9/2009 532022 FILAT FASH CHANDRA SHEKHAR SUNIL BHATT B 51000 80.48
9/9/2009 532022 FILAT FASH SB LIQUOR DISTRIBUTORS PRIVAT B 60000 80.00
9/9/2009 532022 FILAT FASH AYODHYAPATI INVESTMENT PVT LTD S 62891 80.01
9/9/2009 532022 FILAT FASH CHANDRA SHEKHAR SUNIL BHATT S 48423 77.50
9/9/2009 532022 FILAT FASH SB LIQUOR DISTRIBUTORS PRIVAT S 39901 77.96
9/9/2009 531486 FILMCIT MEDI WELLNESS COMMUNICATION (P) LTD S 1700000 1.16
9/9/2009 530655 GOOD LUCK ST KINOFOLK INDUSTRIES LTD. B 102055 41.26
9/9/2009 508918 GREYCELLS EN SANGEETA CHHAGANLAL DANANI B 20100 121.80
9/9/2009 508918 GREYCELLS EN MAHENDRA B JAIN HUF S 20000 121.80
9/9/2009 530315 HIND TIN WOR SUNIL BHAGWATLAL DALAL B 131197 99.71
9/9/2009 506170 HIRAN ORGOCH SANJAY SHANTILAL ANCHALIYA B 100000 56.74
9/9/2009 506170 HIRAN ORGOCH SUCHHANDAA CHATTERJEE S 174437 55.07
9/9/2009 500106 IFCI LTD GENUINE STOCK BROKERS PVT. LTD. B 4549639 59.68
9/9/2009 500106 IFCI LTD GENUINE STOCK BROKERS PVT. LTD. S 4549639 59.72
9/9/2009 504336 INDTRADECO L PLEASENT TEXTILES LIMITED S 4500000 0.41
9/9/2009 531777 INTELLVIS SO DHEERAJ KUMAR B 50000 20.00
9/9/2009 531777 INTELLVIS SO GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD S 84923 20.00
9/9/2009 523467 JAI MATA GLA JMP SECURITIES PVT LTD B 13851 9.70
9/9/2009 523467 JAI MATA GLA MOTI LAL BHASIN S 19559 9.70
9/9/2009 532642 JINDAL SOUTH OPG SECURITIES P LTD B 69506 1410.85
9/9/2009 532642 JINDAL SOUTH OPG SECURITIES P LTD S 69506 1412.69
9/9/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. B 353574 7.87
9/9/2009 530255 KAY POW PAP SUMAN GUPTA B 70000 7.63
9/9/2009 530255 KAY POW PAP OMPARKASH GUPTA B 56648 7.95
9/9/2009 530255 KAY POW PAP SATISH KUMAR GUPTA B 120411 7.98
9/9/2009 530255 KAY POW PAP BAMPSL SECURITIES LTD. S 396512 7.82
9/9/2009 530255 KAY POW PAP NARENDER GUPTA S 134529 7.74
9/9/2009 530255 KAY POW PAP SATISH KUMAR GUPTA S 130411 7.87
9/9/2009 530255 KAY POW PAP KAILASH CHAND GUPTA S 71000 8.01
9/9/2009 512559 KOHINORFOODS TEMPTATION FOODS LTD S 226919 57.28
9/9/2009 509048 LANCOR HOLDS VISWANATH SHEKHAR RAJAMANI B 200000 70.73
9/9/2009 526604 LIPPI SYSTEM NEHA NANDLAL AGRAWAL B 297850 5.30
9/9/2009 526604 LIPPI SYSTEM DINESHKUMAR RAMKUMAR GUPTA S 297850 5.30
9/9/2009 532998 LOTUS EYE SUBODHSAGAR SHARES & SERVICES PRIVATE LIMITED B 104022 37.93
9/9/2009 524138 MAHIN COMP HITESH SHASHIKANT JHAVERI B 35579 96.66
9/9/2009 524138 MAHIN COMP HITESH SHASHIKANT JHAVERI S 22774 98.09
9/9/2009 502995 MALWA COT SP SANDIP PRAVINCHANDRA VORA B 36525 47.67
9/9/2009 532986 NIRAJ CEMENT AYODHYAPATI INVESTMENT PVT LTD B 71000 86.67
9/9/2009 532986 NIRAJ CEMENT AYODHYAPATI INVESTMENT PVT LTD S 52896 85.00
9/9/2009 531996 ODYSSEY CORP DYNAMIC EQUITIES PRIVATE LIMITED B 145000 22.55
9/9/2009 531996 ODYSSEY CORP BHROSEMAND COMMODITIES PVT. LTD. S 147141 22.55
9/9/2009 532387 PRITISHN COM DB (INTL) OWN TRADING B 103507 41.02
9/9/2009 532387 PRITISHN COM DB (INTL) OWN TRADING S 104249 41.24
9/9/2009 509839 PUNJAB WOOLC KB SHAH B 85000 5.50
9/9/2009 509839 PUNJAB WOOLC DHARAM ARORA S 250000 5.50
9/9/2009 532687 REPRO INDIA SETU SECURITIES PVT LTD B 59409 115.36
9/9/2009 506172 SAMPADA CHEM THE PREMIER COMMERCIAL COPVT LTD S 108000 28.55
9/9/2009 524540 SECUN HEALTH SAURABHKUMAR RASIKLAL GANDHI B 35000 25.54
9/9/2009 524540 SECUN HEALTH SAMEER N SHAH B 35410 25.75
9/9/2009 524540 SECUN HEALTH SAMEER N SHAH S 30950 25.70
9/9/2009 524540 SECUN HEALTH KRK GOPALA RAO S 48400 25.53
9/9/2009 532886 SEL MANUF MBL & Co. LTD. B 103826 79.14
9/9/2009 532886 SEL MANUF MBL & Co. LTD. S 103826 79.42
9/9/2009 512413 SPECTACLE MANE D U B 326772 50.99
9/9/2009 512413 SPECTACLE BHARAT SHANTILAL THAKKAR B 284417 50.35
9/9/2009 512413 SPECTACLE MANE D U S 336772 50.75
9/9/2009 512413 SPECTACLE BHARAT SHANTILAL THAKKAR S 274417 50.41
9/9/2009 519228 TEMPT.FOODS FAIRDEAL INFIN SERVICES PVT. LTD. B 180827 44.99
9/9/2009 519228 TEMPT.FOODS TAIB BANK A/C TSML S 189889 44.97
9/9/2009 590093 TRIMURTHI DR VISHU ENTERPRISE S 41554 34.57
9/9/2009 513216 UTTAM GALVA JMP SECURITIES PVT LTD B 1260656 137.48
9/9/2009 513216 UTTAM GALVA JMP SECURITIES PVT LTD S 1079076 137.42
9/9/2009 530459 VALSON IND TIRATH PRADYUMAN PARIKH B 25000 55.35
9/9/2009 530459 VALSON IND ROHNIL BORADIA B 33129 52.55
9/9/2009 530459 VALSON IND HITESH SHASHIKANT JHAVERI B 28890 55.35
9/9/2009 530459 VALSON IND ROHNIL BORADIA S 33129 54.87
9/9/2009 503657 VEER ENERGY PARSVANATH FINCON PRIVATE LIMITED B 812477 25.03
9/9/2009 503657 VEER ENERGY AANGI SHARES & SERVICES PVT. LTD. S 297880 24.92
9/9/2009 503657 VEER ENERGY PARSVANATH FINCON PRIVATE LIMITED S 812477 24.48
9/9/2009 531249 WELL PACK PA PANDYA HARDIK M B 51993 204.67
9/9/2009 531249 WELL PACK PA PANDYA HARDIK M S 51949 211.48
9/9/2009 532788 XL TEL ENE BP FINTRADE PRIVATE LIMITED B 89919 59.30
9/9/2009 532788 XL TEL ENE BP FINTRADE PRIVATE LIMITED S 92974 59.36
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
09-SEP-2009,BHARTISHIP,Bharati Shipyard Limited,MBL & COMPANY LTD.,BUY,173218,214.71,-
09-SEP-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,BUY,5873422,59.78,-
09-SEP-2009,IFCI,IFCI Ltd.,AMBIT SECURITIES BROKING PVT. LTD.,BUY,6106576,59.70,-
09-SEP-2009,IFCI,IFCI Ltd.,GENUINE STOCK BROKERS PVT LTD,BUY,3777121,59.76,-
09-SEP-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,7043196,23.75,-
09-SEP-2009,JINDALSAW,Jindal Saw Limited,PHILLIPS HAGER AND NORTH OVERSEAS EQUITY PENSION TRUST,BUY,514668,618.87,-
09-SEP-2009,PNC,Pritish Nandy Comm. Ltd.,DB (INTERNATIONAL) STOCK BROKERS LTD.,BUY,140224,40.96,-
09-SEP-2009,PRAENG,Prajay Engineers Syndicat,MACQUARIE BANK LIMITED,BUY,200000,35.05,-
09-SEP-2009,SASKEN,Sasken Commu Techno Ltd,MANISH VRAJLAL SARVAIYA,BUY,447916,174.80,-
09-SEP-2009,SELMCL,SEL Manufacturing Company,MBL & COMPANY LTD.,BUY,97842,79.27,-
09-SEP-2009,UTTAMSTL,Uttam Galva Steels Limite,JMP SECURITIES PVT LTD,BUY,931472,138.14,-
09-SEP-2009,BHARTISHIP,Bharati Shipyard Limited,MBL & COMPANY LTD.,SELL,173218,214.87,-
09-SEP-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,SELL,5857662,59.80,-
09-SEP-2009,IFCI,IFCI Ltd.,AMBIT SECURITIES BROKING PVT. LTD.,SELL,6106581,59.75,-
09-SEP-2009,IFCI,IFCI Ltd.,GENUINE STOCK BROKERS PVT LTD,SELL,3777121,59.78,-
09-SEP-2009,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,7043196,23.76,-
09-SEP-2009,KOHINOOR,Kohinoor Foods Limited,TEMPTATION FOODS LTD,SELL,220281,57.37,-
09-SEP-2009,PNC,Pritish Nandy Comm. Ltd.,DB (INTERNATIONAL) STOCK BROKERS LTD.,SELL,138224,40.82,-
09-SEP-2009,PRAENG,Prajay Engineers Syndicat,SWISS FINANCE CORPORATION (MAURITIUS) LIMITED,SELL,200000,35.05,-
09-SEP-2009,SASKEN,Sasken Commu Techno Ltd,MANISH VRAJLAL SARVAIYA,SELL,447916,175.01,-
09-SEP-2009,SELMCL,SEL Manufacturing Company,MBL & COMPANY LTD.,SELL,97842,79.13,-
09-SEP-2009,UTTAMSTL,Uttam Galva Steels Limite,JMP SECURITIES PVT LTD,SELL,800992,137.19,-
The domestic market managed to conclude today’s session on a positive terrain after remaining range bound for most of the session. The market staged a smart pull back from the day’s low in the final hours lead by decent gains from the oil and gas stocks.
However, the cues from the Asian markets not in favor as major Asian exchanges closed in red. After a dismal opening, the market recovered from the fall on selective buying across the indices due to the revival in monsoon and a recent survey showed an improvement in business confidence of India Inc. The BSE Sensex ended above 16,150 level and NSE Nifty closed above 4,810 mark.
Lack of favoring cues from the global as well as domestic market, led the Indian benchmark indices to have weak opening. Despite managed to recover from the intial fall but did not manage to sustain at the higher level on selective profit booking across the counters. The US markets which opened after a long weekend due to the celebration of labour holiday, closed in positive. The IMF calls that global recession could end in the beginning of 2010 and G-20''''s call for more bank capital. There was broad-based buying and therefore S&P 500 made solid gains in its first trading session of the week, but the broad market benchmark encountered resistance as it approached last week''''s highs. Energy stocks and materials stocks led gains for the entire session. Commodity prices were also helped by a weaker U.S. dollar, which fell 1.0% against a basket of major foreign currencies to hit an 11-month low after the U.N. said that the greenback should be replaced by a new global reserve currency. On the sectoral front, most of the buying was witnessed in Oil & Gas, Bankex and Health care stocks. However, Realty, Auto and Teck stocks remained out of favour during the trading. The BSE Midcap and Smallcap stocks remained flat.
Among the Sensex pack 17 stocks ended in negative territory and 15 in 13 positive territory. The market breadth indicating the overall health of the market remained negative as 1530 stocks closed in red while 1280 stocks closed in green and 72 stocks remained unchanged in BSE.
The BSE Sensex closed higher by 59.88 points (0.37%) at 16,183.55 and NSE Nifty ended up by 9 points or (0.19%) at 4,814.25. BSE Mid Caps and Small Caps closed flat at 5,939.81 and 7,183.38 respectively. The BSE Sensex touched intraday high of 16,215.74 and intraday low of 16,044.77.
Gainers from the BSE Sensex pack are RIL (4.54%), Hindalco Inds (4.14%), JP Asso (1.88%), HDFC (1.32%) and HDFC bank (1.29%)
Losers from the BSE Sensex pack are DLF (3.51%), Bharti AIrtel (3.36%), Hero Honda (2.24%) and Wipro (1.75%).
On the global markets front, the Asian markets that opened before the Indian market, ended lower following the Yen’s rise against the dollar. Hang Seng, Taiwan Weighted, Seoul Composite, and Japan’s Nikkei closed lower by 1.04%, 0.87%, 0.74%, 0.78% at 20,851.04, 7,250.72, 1,607.77 and 10,312.14 respectively.
BSE REALTY index was at 4,417.06 down by 74.07 points or by (1.65%) The main losers were Dlf Ltd down by (3.51%) at Rs.420.4, Indbul Real down by (2.23%) at Rs.258.1, Ackruti down by (2.17%) at Rs.562.15, Phoenix Mill down by (1.79%) at Rs.169.65, Mahindralife down by (1.15%) at Rs.355.55.
BSE METAL index was at 13,346.79 up by 31.42 points or by (0.24%) The main gainers were Jindal Saw up by (11.71%) at Rs.633.25, Hindalco In up by (4.14%) at Rs.119.6, Nat Alum Co up by (1.52%) at Rs.347.2, Sesa Goa Ltd up by (1.21%) at Rs.226.25, Gujara Nre C up by (1.2%) at Rs.59.2,
BSE BANKEX index was at 8,694.80 up by 50.90 points or by (0.59%) The main gainers were Oriental Bk up by (4.47%) at Rs.213.7, Bank Of Baroda-Pari Passu up by (3.43%) at Rs.452.2, Union Bank up by (2.71%) at Rs.223.4, Bank Of India up by (2.58%) at Rs.343.8, Allahabad Bk up by (2.09%) at Rs.100,
BSE AUTO index was at 6,113.25 down by 54.32 points or by (0.88%) The main losers were Hero honda down by (2.44%) at Rs.1627.85, Bajaj Auto down by (2.34%) at Rs.1234.9, Bharat Forge down by (1.85%) at Rs.217.2, Ashok Leylnd down by (1.83%) at Rs.40.3, Bosch Ltd* down by (1.26%) at Rs.3966.25.
BSE HC index was at 3,910.70 up by 13.78 points or by (0.35%) The main gainers were Opto Circuit up by (10.08%) at Rs.206.4, Bilcare Lt up by (9.42%) at Rs.440.75, Sunpha Adv up by (3.18%) at Rs.79.5, Lupin Ltd up by (3.03%) at Rs.1039.45, Orchid Chem up by (0.96%) at Rs.126.3.
BSE OIL&GAS index was at 10,368.68 up by 238.81 points or by (2.36%) The main gainers were Reliance up by (4.54%) at Rs.2169.35, Rel Pet up by (4%) at Rs.132.7, Essar Oil Ltd. up by (1.84%) at Rs.154.6, Cairn Ind up by (1.56%) at Rs.270.15.
Hexaware Technologies closed lower by 2.64% at Rs. 79.15. The company announced that Mr. N, Nataraj, CIO Hexaware Technologies was credited with the CIO 100 Ingenious Award at the 4th Annual CIO 100 Symposium and Awards Ceremony.
Tata Communications fell by 0.63% to Rs. 484.65. The company and AccessKenya Group, Kenya''''s first publicly listed !CT company and leading corporate internet service provider, today announced that they have signed a partnership agreement to establish a Tier 1 Internet Point-of-Presence (PoP) for Tata Communications in Nairobi, Kenya.
Time Technoplast Ltd enhanced by 2.71% to Rs. 47.40. The company’s joint venture project with Schoeller Area Systems (SAS) Netherland has secured orders for Rs.20 crores approx. from a reputed multinational in India for the supply of "Special Packaging Products".
Supreme Infrastructure India Ltd surged 4.98% to Rs. 116.90, after the company bagged orders cumulative of Rs. 97.39 crore.
IFCI spurted 3.12% to Rs. 59.45 on reports the government has asked the company to induct a strategic partner, after it failed to sell a 26% stake in 2007.
Nucleus Software Exports Ltd gained 4.82% to Rs. 120.80 after the company launched a new version of its cash management software product.
Issue subscribed 4 times by 16:00 IST on day three
The initial public offer (IPO) of state-run Oil India was subscribed 4 times by 16:00 IST on day three, data on NSE website showed. The IPO received bids for 10.56 crore shares on Wednesday, 9 September 2009, compared to the issue size of 2.64 crore shares. The IPO opened for bidding on Monday, 7 September 2009, and closes on Thursday, 10 September 2009.
The IPO has received strong response from institutional investors. The qualified institutional buyers (QIB) category was subscribed more than 2.5 times on day two on Tuesday, 8 September 2009, with foreign institutional investors putting in bids for 3.68 crore shares.
At a price band of Rs 950-Rs 1050, the PE ratio works out to 10.2-11.3, based on earnings per share (EPS) of Rs 93 for the year ended March 2009 on post-issue equity of Rs 240.45 crore. The company is raising about Rs 2700 crore from the IPO.
Along with the IPO, the government is simultaneously selling a part of its stake in Oil India to the three state-run refiners - Indian Oil Corporation, HPCL and BPCL. Post-IPO and disinvestment, the government's stake in the company will decrease from 98.13% to 78.5%.
Oil India is India's second biggest oil and gas production firm in terms of revenue after ONGC. Oil India's net profit rose 25.1% to Rs 2230.85 crore on 17.6% growth in sales to Rs 7200.70 crore in the year ended March 2009 over the year ended March 2008.
(Rs. 1 Lac Application)
3.50 to 4
Globus Spirits Ltd.
3.50 to 5
950 to 1050
40 to 42
1800 to 2000
(+ 250 Form Commission)
Today domestic markets are likely to open marginally positive. After the IMF’s call of global recession to end in the beginning of 2010, US markets also managed to mark gain in the overnight trade. However in Asian markets, majority of indices have opened with losses as all the stocks are highly valued at this peak level and therefore a lot of cautiousness. In the domestic arena there could be some selling pressures due to weakness in Asian space. During the day trading is likely to trade volatile.
On Tuesday, Domestic market concluded today’s journey in green terrain on significant buying interest led by firm global cues. Asian markets ended with gains and European markets are trading on firm note. In addition, higher US index futures also contributed to the upswing in key benchmark indices. However, market slipped sharply from the day’s high in second half of trading on profit booking, before gathering momentum again. Meanwhile, concerns over a poor monsoon weighed on sentiments to an extent despite revival in monsoon rains in past few days. The BSE Sensex ended above 16,100 level and NSE Nifty closed above 4,800 mark.
The BSE Sensex closed higher by 107.35 points (0.67%) at 16,123.67 and NSE Nifty ended up by 22.35 points or (0.47%) at 4,805.25. BSE Mid Caps and Small Caps closed with losses of 25 and 10.52 points at 5,942.77 and 7,178.95 respectively. The BSE Sensex touched intraday high of 16,232.16 and intraday low of 16,030.56.
On Tuesday, US markets closed positive. The positive cues from majority of overseas markets helped major indices in US record gains. The IMF calls that global recession could end in the beginning of 2010 and G-20''s call for more bank capital. There was broad-based buying and therefore S&P 500 made solid gains in its first trading session of the week, but the broad market benchmark encountered resistance as it approached last week''s highs. Energy stocks and materials stocks led gains for the entire session. They settled 2.6% and 1.5% higher, respectively. Commodity prices were also helped by a weaker U.S. dollar, which fell 1.0% against a basket of major foreign currencies to hit an 11-month low after the U.N. said that the greenback should be replaced by a new global reserve currency.
The Dow Jones Industrial Average (DJIA) closed higher by 56.07 points at 9,497.34. NASDAQ index gained 18.99 points at 2,037.77 and the S&P 500 (SPX) also inclined by 8.99 points to close at 1,025.39 points.
Indian ADRs ended mostly in green. In the IT space, Wipro was up 2.92%, Infosys was up 2.49% and Satyam Computers was up 2.22%. However, Patni Computers ended down 5.38%. In the banking space, ICICI Bank was up 6.61% and HDFC Bank was up 2.66%. In the telecom space, MTNL was up 1.58% while Tata Communication was down 1.09%. In other sectors, Sterlite Industries was up 8.35%, Dr Reddy''s Labs was up 2.01% and Tata Motors was up 7.49%.Today the major stock markets in Asia are trading positive.
The FIIs on Tuesday stood as net buyers in equity and debt. Gross equity purchased stood at Rs 2,952.80 Crore and gross debt purchased stood at Rs 361.30 Crore, while the gross equity sold stood at Rs 1,902.80 Crore and gross debt sold stood at Rs 354.90 Crore. Therefore, the net investment of equity and debt reported were Rs 1,050 Crore and Rs 6.50 Crore respectively.
On Tuesday, Indian Rupee closed at 48.47/48 per dollar, 0.40% stronger than its previous close at 48.66/67. The local currency gained on the back of surge in local stock markets.
On BSE, total number of shares traded were 57.35 Crore and total turnover stood at Rs 7,189.76 Crore. On NSE, total number of shares traded were 109.49 Crore and total turnover was Rs 21,444.52 Crore.
Top traded volumes on NSE Nifty – Unitech with total volume traded 75398105 shares, followed by Suzlon Energy with 47023987, Hindalco with 23662331 shares, DLF with 14236693 shares and Tata Steel with 13208864 shares.
On NSE Future and Options, total number of contracts traded in index futures was 628383 with a total turnover of Rs 14,365.89 Crore. Along with this total number of contracts traded in stock futures were 666274 with a total turnover of Rs 22,169.96 crore. Total numbers of contracts for index options were 1175229 with a total turnover of Rs 28,286.70 Crore and total numbers of contracts for stock options were 79166 and notional turnover was Rs 2,754.40 Crore.
Today, Nifty would have a support at 4,732 and resistance at 4,842 and BSE Sensex has support at 15,782 and resistance at 16,196
Key benchmark indices are seen opening on a soft note, pausing after a three-day run-up, tracking lower Asian equities. The SGX Nifty futures for September 2009 expiry was down 6.5 points. US markets ended higher on Tuesday, 8 September 2009 after re-opening following a long weekend. Meanwhile the likely progress of the ongoing gas dispute between the Ambani brothers ahead of the formal outcome on 20 October 2009 may also influence the markets.
Asian markets were trading lower today, 9 September 2009 weighed by exporters due to the yen's recent rise against the dollar. Key benchmark indices in South Korea, Japan, China, Hong Kong, Taiwan, and Singapore were down by between 0.02% and 0.94%.
US markets gained on Tuesday, 8 September 2009 as crude prices surged more than $3 a barrel and gold made a run at $1,000 an ounce before pulling back. The Dow Jones added 56.07 points, or 0.6%, to 9,497.34. The broader S&P 500 index advanced 8.99 points, or 0.9%, to 1,025.39, and the Nasdaq Composite index rose 18.99 points, or 0.9%, to 2,037.77.
US market had re-opened after a long weekend after remaining closed on Monday, 7 September 2009 on account of the Labor Day holiday.
United Nations economists said on Monday, 7 September 2009 there would be no early recovery from global recession and warned that any move to ease back quickly on government stimulus programmes could make the crisis worse.
In its annual report, the Un trade and development agency UNCTAD also urged the creation of a new world reserve system using several currencies rather than just the US dollar, and called for tough controls on cross-border financial flows.
The world's wealthiest nations at the G20 meeting in London at the weekend have pledged a number of measures to maintain stimulus measures to boost the global economy. In a meeting held on Saturday, 5 September 2009, the finance ministers warned that the fledgling recovery was by no means assured.
Back home, in an important development, the market regulator Securities and Exchange Board of India (Sebi) is set to tweak takeover regulations, chairman C B Bhave said on Tuesday, 8 September 2009. A committee would be formed to examine the entire takeover code fairly soon, Bhave told reporters on the sidelines of an interactive session in Bangalore. The Sebi Substantial Acquisition of Shares and Takeovers Regulation was put in place in 1997. Since then, changes have been made under the framework of these original guidelines.
Meanwhile, the plan to encourage overseas firms to raise capital in India through Indian Depository Receipts, or IDRs, as they are popularly known, appears to have hit a road block, with the revenue department not in favour of granting long-term capital gains tax benefits for such issues.
IDRs are derivative instruments like Global Depository Receipts (GDRs) and American Depository Receipts (ADRs) which have shares as the underlying asset and denominated in the local currency the rupee. These instruments will help foreign companies raise capital in India by listing IDRs on local exchanges.
The finance minister, Pranab Mukherjee on Tuesday, 8 September 2009 said the government is constantly reviewing the economic situation to decide until when the stimulus measures need to be continued and it is not desirable to plan the exit strategy now
On Monday, 7 September 2009 the finance minister said that a slow down is likely in growth rate in the second and third quarters of the current fiscal due to less agricultural growth. He was a little doubtful of 6.1% expansion achieved during the first quarter of this fiscal. The economy will not grow at the pace it did in April-June period, but that does not warrant a downward revision of growth forecast.
Mukherjee said that he is, however, not revising the target of 6% plus growth rate for the fiscal as the economy will expand at a higher pace in the fourth quarter
As per the provisional figures on NSE, foreign funds bought shares worth Rs 991.75 crore and domestic funds purchased shares worth Rs 206.25 crore on Tuesday, 8 September 2009.
The BSE Sensex has jumped 725.34 points or 4.71% in three trading days to 16,123.67 on 8 September 2009 from a recent low of 15,398.33 on 3 September 2009 as revival of monsoon rains, strong response to the initial public offer of Oil India, a survey showing an improvement in business confidence of India Inc and firm global stocks boosted sentiments.
Stocks have risen sharply this year on increased global risk appetite triggered by hopes of a recovery in the global economy after a setback from a financial sector crisis. The Sensex is up 6476.36 points or 67.13% in calendar year 2009 as on 8 September 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 7963.27 points or 97.58% as on 8 September 2009. FII inflow in calendar year 2009 totaled Rs 40,373.80 crore (till 7 September 2009).
We recommend a buy in the stock of Excel Crop Care from a short-term perspective. It is apparent from the charts that the stock began to trend down after encountering resistance around Rs 170 in late May. It was on a medium-term downtrend till it found support in the range of Rs 106 and Rs 110 in mid-August. The stock subsequently resumed its intermediate-term uptrend that has been in place since the March low of Rs 60. On September 8, the stock broke through its short-term resistance level at Rs 130, by gaining 6 per cent. There is an increase in volume over the past two trading sessions. With this gain, the daily and weekly relative strength indices have entered the bullish zone. The stock is trading way above its 21- and 50-day moving averages. Moreover, the daily moving average convergence and divergence indicator is on the brink of re-entering the positive territory. We are bullish on the stock from a short-term horizon. We expect it to move up until it hits our price target of Rs 150. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 129.
GAIL India may pick up a stake in US$2bn gas pipeline that China is building for ferrying natural gas found off the Myanmar coast. (ET)
BHEL is believed to have finalized France’s Alstom as the technology partner for its proposed JV with NPCIL to undertake nuclear power projects. (FE)
TCS has entered into an alliance with Microsoft India to launch a virtualization center of excellence in Chennai. (ET)
Board of Approval for SEZ’s will take up the issue of granting a third extension to the clearance given to four zones including Reliance Industries multi product SEZ in Gurgaon and Suzlon Infrastructures high tech SEZ in Karnataka. (ET)
Cairn India will pay only Central Sales Tax on crude sold in Rajasthan. (ET)
DLF is considering selling DT Cinemas to PVR Cinemas and is also discussing various options including retaining minority stake incase of merging its multiplex business with the latter. (FE)
PNB is looking to acquire a bank in Kazakhstan for an estimated US$33mn by March next year and also unveiled its expansion plans in UK too. (FE)
Ashok Leyland signed a MoU with Magma Fincorp to provide financing to end customers of commercial vehicles. (FE)
Axis Private Equity, PE firm sponsored by Axis Bank, plans to triple its corpus size to Rs18bn. (FE)
CREC’s move to impose ceiling on tariff for sale and purchase of power has been opposed by PTC India, Indian Energy Exchange, Power Exchange of India and GMR Trading. (FE)
Wal-Mart, through Bharti Retail has introduced eight private labels in its ‘easyday’ supermarket chain. (ET)
MERC has ordered an investigation into the business affairs of Reliance Infra, the distribution arm of Reliance Power. (ET)
Tata Teleservices GSM launched its one paise per-character pricing plan for SMS. (FE)
Mahindra Satyam has decided to restore variable pay for 28,000 employees across all levels. (ET)
Reliance Capital plans Rs1bn worth stock options to its senior employees. (ET)
Almost 760 pilots belonging to Jet Airways took mass sick leave in protest against the sacking of two pilots. (FE)
Avesthagen plans an IPO raising Rs6-7bn from domestic and international market in 2010. (FE)
Kuwait’s largest telecom operator, Zain, has approached BSNL urging it to pick up a significant stake in the company. (ET)
American Tower Company has restarted negotiations to buy majority stake in Essar Telecom Infrastructure. (ET)
Talks between consumer durables retail chains - Tata Croma, Videocon’s Next and Planet M - and private equity firms for possible stake sales have hit a wall due to differences over valuations. (ET)
SEBI has set up a special committee to review its key provisions of the takeover code. (ET)
Government keen to raise FDI limit in Insurance sector from 26% to 49%. (BL)
A ministerial panel decided that new telecom companies providing 3G services will have to share 3% of their revenues with the government as spectrum usage fee while incumbent operators entering the 3G space will have to share an additional 1% of their revenues for using these airwaves. (ET)
Finance Minister says the stimulus needs to be continued but there will be no fresh tax cuts. (ET)
Despite an 11% fall in hydro electricity this fiscal, the overall electricity generation was up 6.3% (till Aug) due to higher thermal and nuclear generation. (BL)
NASSCOM has approached the European Union for a single work visa for IT workers to enable employees of Indian companies to move freely across the 27 member regional grouping. (ET)
PSU oil companies may lose Rs25,000cr on under recovery (BS)
Total direct tax collected from April-September has matched last years growth with total collections standing at Rs900bn. (ET)
Indirect tax collections fell to Rs636bn for April to July period from Rs884bn last year. (FE)
Heavy commercial vehicle sales see first upturn in 14 months (BS)
Government’s refusal to issue visas to Chinese technicians over security concerns has hit the progress of several power projects that use Chinese equipments. (ET)
Government has invited foreign players to participate in the bidding process for its oil blocks under the NELP-VIII and CBM-IV. (ET)
Government has approved nine FDI proposals involving an investment of Rs750mn. (ET)
High capital base needed for banks with PE arm - RBI (BS)
Over 300 new items would be introduced in the new WPI. (ET)
Uttar Pradesh sugar sector disinvestment process is postponed yet again. (FE)
Imports of sensitive items rise 40.6% in April-June. (FE)
Indian equities are likely to open flat today. Today SGX Nifty is trading at 4,807.50 (8.30am), 5.50 points higher than Tuesday`s closing of 4,802.
Asian stocks fell as downgrades of Japanese banks by JPMorgan Chase & Co. overshadowed gains among commodity producers on higher oil and metals prices. Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group retreated nearly 1.5% after JPMorgan downgraded both to neutral. Japanese benchmark index Nikkei 225 fell 34.75 points, or 0.33%, to trade at 10,358.48. Hong Kong`s Hang Seng index declined 60.95 points, or 0.29%, to trade at 21,008.86. China`s Shanghai Composite decreased 3.85 points, or 0.13% to trade at 2,926.62. (8.05 a.m., IST)
European stocks climbed to the highest in almost a year as higher base metal and gold prices sparked a rally in mining shares and a report showed British manufacturing jumped in July. BHP Billiton and Randgold Resources both gained more than 2.5% as copper climbed in London and gold futures rose above USD 1,000 an ounce for the first time in six months. UK`s benchmark index FTSE 100 gained 14.16 points, or 0.29%, to settle at 4,947.34. French benchmark index CAC 40 increased 8.13 points, or 0.22%, to end 3,660.96. Germany`s benchmark index DAX rose 18.22 points, or 0.33%, to close at 5,481.73.
US stocks climbed on Tuesday as rising commodity prices and merger and acquisition activity fed the belief that the US economy is strengthening. The Dow Jones Industrial average gained 56.07 points, or 0.59%, to settle at 9,497.34. The Standard & Poor`s 500 index rose 8.99 points, or 0.88%, to end at 1,025.39. The NASDAQ composite index increased 18.99 points, or 0.94%, to close at 2,037.77.
Oil prices climbed above USD 71 on Tuesday after posting the biggest single-day rise since Aug. 19 on a buying spree spurred by weakness in the dollar. Light sweet crude for October delivery rose USD 3.08 to settle at USD 71.10 a barrel on the New York Mercantile Exchange. Gasoline for October gained 5.26 cents to settle at USD 1.8289 a gallon and heating oil rose 6.2 cents to settle at USD 1.7825 a gallon. Natural gas for September delivery rose 7.9 cents to settle at USD 2.807 per million British thermal units. In London, Brent prices were up USD 2.89 cents to settle USD 69.42 a barrel on the ICE Futures exchange.
Gold settles below $1,000 an ounce level
Precious metal prices ended higher on Tuesday, 08 September, 2009. Prices rose due to the weak dollar. The yellow metal rose to eighteen month highs today. Nevertheless, it settled below its intra day high price.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Tuesday, gold for December delivery ended at $997.3, higher by $3 (0.3%) an ounce on the New York Mercantile Exchange. During intra day trading, prices rose to a high of $1006.9. Last week, gold ended higher by 4%. Year to date, gold prices are higher by 13.8%.
Gold ended August, 2009 higher by 0.2%. Before this, for the second quarter, gold ended higher by 0.5%. The metal had gained 4.3% in the first quarter of this year.
On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (2.5%) since then.
On Tuesday, Comex silver futures for December delivery rose by 22.5 cents (1.4%) to $16.51 an ounce. Last week, silver ended higher by 9.9%.
Silver ended 7.1% higher for August, 2009. For second quarter, silver rose 4.5%. Year to date, silver has climbed 43% this year. For 2008, silver had lost 24%.
In the currency market today, The U.S. dollar fell to a new yearly low versus the euro and tumbled versus other major rivals, undercut as investors continued to show rising appetite for risk. The dollar index, which measures the strength of dollar against a basket of other currencies, fell by 1.2%.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
At the MCX, gold prices for October delivery closed lower by Rs 6 (0.03%) at Rs 15,721 per 10 grams. Prices rose to a high of Rs 15,889 per 10 grams and fell to a low of Rs 15,670 per 10 grams during the day's trading.
At the MCX, silver prices for December delivery closed Rs 141 (0.53%) higher at Rs 26,472/Kg. Prices opened at Rs 26,389/kg and rose to a high of Rs 27,018/Kg during the day's trading.
All base metal prices rise as dollar slips
Copper prices rose to a year high level Comex on Tuesday, 08 September, 2009. Prices rose due to the weak dollar which increased the appeal of commodities as a hedge against inflation. Prices also rose as Goldman Sachs increased its price forecast for copper.
At USA, copper futures for December delivery rose 8.95 cents (3.1%) to 2.956 a pound. Copper fell 2.8% last week. Copper ended August, 2009, higher by 7%.
On the London Metal Exchange, copper for delivery in three months ended higher by $151 (2.4%) at $6,475 a metric ton. On 3 July, 2008, prices had touched an all time intra day high of $8,940.
After August, it was the eighth straight monthly gain for copper. Prices gained 23% in the second quarter. On a year to date basis, prices are higher by 94%.
The U.S. buys about 13% of the 17 million metric tons of copper sold annually and China buys about 20%.
In the currency market today, The U.S. dollar fell to a new yearly low versus the euro and tumbled versus other major rivals, undercut as investors continued to show rising appetite for risk. The dollar index, which measures the strength of dollar against a basket of other currencies, fell by 1.2%.
In its latest report, Goldman Sachs reported that it has forecast copper to reach $7,650 a ton at the end of 2010.
In FY 2008, copper prices dropped by 54%. Prior to 2008, copper prices ended FY 2007 with a gain of mere 5.5% after a whopping 44% gain in FY 2006. The price of copper gained every year since 2002 as global economic growth boosted demand for the metal used in pipes and wires.
At the MCX, copper for November delivery closed at Rs 315.8/Kg. The closing price was Rs 4.75/Kg (1.52%) higher than previous closing price. Prices rose to a high of Rs 319.2/ Kg and fell to a low of Rs 309.75/Kg during the day's trading.
Among other metals traded in the LME on Tuesday, lead rose 4.5% to $2,455 a ton and zinc gained 2.6% to end at $1,955 a ton. Nickel rose 2.9% to end at $18,200. Aluminium rose 1.6% at $1,895 a ton.
Prices rise as weak dollar increases appeal of commodities
Crude prices shot up substantially higher on Tuesday, 08 September, 2009. Prices ended higher due to the weak dollar which increased the appeal of commodities as a hedge against inflation. Prices also rose in anticipation of OPEC's forthcoming meeting.
On Tuesday, crude-oil futures for light sweet crude for October delivery closed at $71.1/barrel (higher by $3.08 or 4.5%). During intra day trading, crude touched a high of $71.95. Last week, crude ended lower by 6.5%. It was the biggest weekly loss for crude in two months.
For the month of August, 2009, crude ended higher by a marginal 0.7%. For the second quarter, crude ended higher by 40%. Crude prices had rallied 11.3% in the first quarter of 2009.
Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 51.7% since then. Year to date, in 2009, crude prices are higher by 52%.
In the currency market today, The U.S. dollar fell to a new yearly low versus the euro and tumbled versus other major rivals, undercut as investors continued to show rising appetite for risk. The dollar index, which measures the strength of dollar against a basket of other currencies, fell by 1.2%.
The Organization of Petroleum Exporting Countries, which accounts for about one-third of the world's oil production, is scheduled to meet tomorrow in Vienna.
Also at the Nymex on Tuesday, October reformulated gasoline gained 5.26 cents, or 3%, to $1.8289 a gallon and October heating oil rose 6.2 cents, or 3.6%, to $1.7825 a gallon.
October natural gas gained 7.9 cents, or 2.9%, to $2.807 per million British thermal units.
Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for September delivery closed higher by Rs 140 (4.2%) at Rs 3,460/barrel. Natural gas for September delivery closed higher by Rs 6.3 (4.8%) at Rs 136.3/mmbtu.
Mediocre idea that generates enthusiasm will go further than a great idea that inspires no one.
Bulls seem to get inspired by even mediocre ideas these days. After three days of healthy gains, the enthusiasm could be met with some resistance. We expect a circumspect start and a volatile day ahead. Firstly, global trend is not all that supportive. US stocks could not extend the global momentum. Asian markets are mixed. Most gains in global markets lately have come on the back of strength in commodity-related shares. The broader markets look exhausted after a six-month advance.
Same holds true for India too. The Sensex and the Nifty have doubled since early March and valuations are not fundamentally compelling. Yes, the slump in economic activity has been arrested. Q1 results turned out to be better than anticipated. Risk appetite is on the way up. Fund flows have improved. But the much-awaited rebound continues to be elusive.
Green shoots have been restricted to a few pockets. To add to the woes, rain Gods have not been too kind. Inflation remains a concern. Government’s balance sheet is highly leveraged. Exports continue to bleed. Tax collections and credit growth remain subdued.
FIIs were net buyers of Rs9.9bn in the cash segment on Tuesday on a provisional basis while the local funds pumped in Rs2.06bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net buyers at Rs11.33bn. On Monday, FIIs were net buyers of Rs10.5bn in the cash segment. With this, their net investments in Indian stocks this year have crossed $8.3bn.
US stocks rose on Tuesday as trading resumed after the Labour Day weekend, with the Nasdaq Composite index hitting a year's peak and the Dow Jones Industrial Average and S&P 500 index also climbed. Commodity shares rallied and General Electric was upgraded.
The Dow gained 56 points, or 0.6%, at 9,497.34, ending close to 10-month highs. The S&P 500 added 9 points, or 0.9%, at 1,025.39, ending close to 11-month highs. The Nasdaq advanced 19 points, or 0.9%, at 2,037.77, ending at the highest point since Oct. 1, 2008.
Last week, Wall Street ended a choppy week lower as investors turned a bit cautious after a strong August and ahead of the extended weekend. US financial markets were closed on Monday for Labor Day.
A more than 4% spike in oil prices and gold prices that briefly topped $1,000 gave a lift to the influential commodities sector. A rally in metals stocks lifted the Gold Bugs index by 1%. Tempering the advance was a selloff in some of the financial shares that rallied late in the summer.
All three major markets rose between 11% and 13% over the summer. September is typically a tough month for Wall Street as market players return from their summer vacations. It is the worst month on Wall Street in terms of percentage losses for the Dow, S&P 500 and Nasdaq, according to Stock Trader's Almanac.
Over the last few weeks, the S&P 500 seesawed across 1000, a key psychological level that traders watch. Those gyrations may continue for the next few weeks. US stocks may not move much until at least the middle of October, when the third-quarter profit reports start to pour in.
Kraft Foods shares slumped almost 6% after British candy maker Cadbury spurned its $16.7 billion takeover offer. However, the company, a Dow component, said it would continue to pursue a merger. Cadbury shares jumped 38%.
GE shares rallied 4.5% after JPMorgan upgraded the stock to "overweight" from "neutral."
Among other movers, Opexa Therapeutics surged 270% after a mid-stage study showed that at least 83% of patients taking its multiple sclerosis drug had not relapsed one year later.
Leaders from the world's 20 biggest economies, meeting over the weekend, agreed to continue to provide stimulus to support the global recovery.
Consumers cut their borrowing in July by $21.6 billion, the most on records dating back to 1943. Economists thought credit would fall by $4 billion. Credit fell by a revised $15.5 billion in June.
US light crude oil for October delivery rose $3.08 to settle at $71.10 a barrel on the New York Mercantile Exchange.
COMEX gold for December delivery rose $3.10 to settle at $999.80 an ounce after surpassing $1,000 earlier in the session.
Treasury prices fell, raising the yield on the benchmark 10-year note to 3.46%, from 3.44% late on Friday.
In currency trading, the dollar fell versus the euro and the Japanese yen.
European shares rose for a fourth straight session, paced by gains in miners and renewed M&A news. The pan-European Dow Jones Stoxx 600 index rose 0.2% to 237.75, with miners in the lead as gold futures reclaimed the $1,000-an-ounce level in electronic trading for the first time in more than six months.
The UK's FTSE 100 index closed up 0.3% at 4,947.34, while Germany's DAX index added 0.3% to 5,481.73 and the French CAC-40 index moved up 0.2% to 3,660.96.
Indian markets extended its winning streak for third straight trading session with the NSE Nifty ending above the 4,800 levels. Even the BSE Sensex ended above the 16,100 levels.
The rally was led by the metals stocks, heavyweights like Tata Steel, Sterlite Industries and Hindalco. Even the Banking stocks like ICICI Bank and SBI were in demand. Technically, the BSE Bankex index has broken above its trading range after consolidating for almost four months. The index has gained ~300 points or 3.5% in the last couple of days.
Cues from the international markets were also positive. The Hang Seng and the Shanghai Composite ended with smart gains even the European markets were trading with healthy gains.
Finally, the BSE Sensex surged 107 points or 0.7% at 16,123 after touching a high of 16,232 and a low of 16,030. The index opened at 16,030 against the previous close of 16,016. The NSE Nifty surged 22 points to shut shop at 4,805.
In Asia, the Nikkei in Japan gained by 0.7% at 10,393 while Australia's S&P/ASX ended higher by 1.5% at 4,523. The Hang Seng index in Hong Kong surged 2.1% at 21,069. Shanghai index in China was up by 1.7% at 2,930.
In Europe, stocks were in the green. The FTSE in the UK was up 0.7%, The DAX in Germany was up 0.6% and the CAC 40 index in France was up 0.5%.
Coming back to India, among the BSE sectoral indices, the Metal index was the top gainer, surging 2.5%, followed by the Oil & Gas index that was up 2%. The BSE Capital Goods index up 0.7% and the BSE Bankex index was up 0.5%.
However, BSE FMCG index was down 1.1% and BSE Auto index was down 1%. The BSE Mid-Cap index fell 0.4% and the BSE Small-Cap index fell by 0.3%.
Among the 30-components of Sensex, 15 stocks ended in the green and 15 ended in the negative terrain. Among the major gainers were Reliance Industries, SBI, L&T, Sterlite, Tata Steel and Hindalco.
On the other hand, Infosys, HUL, ITC, Tata Power and HDFC were among the major laggards.
Outside the frontline indices, the big gainers in the broader market were Spice Tele, BEML, Allahabad Bank, Century Textile and Godrej Consumer. On the other hand, losers included GMDC, Mundra Port, GVK Power, CESC and Renuka Sugar.
B K Modi acquired 51% stake in the forex and money transfer firm Wall Street Finance. ADAG Group's Reliance Money exited from the company by selling its entire 36.8% holding in the previous week for over Rs220mn.
BK Modi announced an open offer for another 20% stake in the company. The entire deal of acquiring 71% stake would be worth about Rs1bn, reports added.
In a market transaction, Modi-promoted Spice Investments & Finance Advisors purchased over 1.66mn equity shares representing 14.32% stake in Wall Street Finance at a price of Rs55 per share, in a bulk deal on the BSE.
On the other hand, Patel Holding Ltd sold 1.24mn and Arif Asgar Patel offloaded 0.42mn at an average price of Rs55.
Shares of Wall Street Finance shot up by over 5% to Rs60.80. The stock opened at Rs60 and made an intra-day high of Rs68 and a low of Rs60. Total traded volumes stood at 0.52mn shares.
Shares of Gujarat NRE Coke gained by 3.6% to Rs58. 5 after the company announced that the board of directors will meet on September 19, 2009, to consider the proposal for issue of "B" Equity Shares of Rs10/- each as bonus shares.
The stock opened at Rs59 and made an intra-day high of Rs60 and a low of Rs57.8. Total traded volumes stood at 6mn shares.
Shares of Gail India erased early gains and ended in the red, the stock was down 1% to Rs358. The stock opened at Rs365 and made an intra-day high of Rs372 and a low of Rs356. Total traded volumes stood at 0.39mn shares.
Gail India aims to cross revenue of Rs500bn in the next few years, Chairman B.C. Tripathi told shareholders at a meeting in New Delhi today.
The company has approved Rs300bn of spending on new projects and seeks to double its gas transportation capacity to 300mn cubic meters a day, he added.
The company also plans to raise capacity at Pata Chemical plant to 1mn tons and plans to invest Rs35bn in city gas by 2012-13.
Shares of Suven Life Science were locked at 5% upper circuit at Rs30.50 after the company on Monday announced that its drug discovery collaboration in central nervous system (CNS) disroder with Eli Lilly has yielded a positive outcome with lead declaration leading to a milestone payment to the company from the US drug major.
The milestone was achieved with the identification and selection of a first lead compound to be advanced into Lead Optimization Phase of preclinical development.
Shares of Jet Airways staged a smart come back and ended with smart gains. The stock was up 2.6% at Rs262.
Jet Airways fell sharply in the early trades to a low of Rs221 after the airline announced that it would cancel 115 flights due to a strike by pilots. As many as 400 pilots went on sick leave late last night, stated reports. The group is demanding that the company reinstate two pilots whose jobs were terminated without reason, report added.
SHOBHA DEVELOPERS LIMITED
ANNUAL REPORT 2008-2009
The Directors have pleasure in presenting the Thirteenth Annual Report on
the business and operations of the Company together with the Audited
Accounts for the financial year ended March 31, 2009.
Financial Highlights (Rs. in Million)
Particulars 2008-09 2007-08
Net sales and other income 9,917.05 14,362.77
Profit before interest, depreciation 2,867.70 3,674.11
Finance charges 1,052.14 614.92
Depreciation 360.33 350.40
Profit before tax 1,455.23 2,708.79
Provision for tax-current 374.00 453.00
- fringe benefit 4.00 5.50
- deferred (20.00) (33.02)
Wealth tax 0.45 0.30
Net profit after tax 1,096.78 2,283.01
Add: Balance of profit brought 2,418.74 1,249.73
Profit available for appropriation 3,515.52 3,532.74
Proposed dividend 85.29 555.00
(Includes tax on dividend)
Transfer to General Reserve - 250.00
Transfer to Debenture Redemption 171.00 309.00
Balance carried to Balance Sheet 3,259.23 2,418.74
Result of operations
The Financial year 2008-09 has been challenging due to sudden changes in
the global and Indian economy resulting in kind of economic downturn where
sales decreased along with pressureon the profit margins.
The Company's total income has decreased from Rs. 14,362.77 million to
Rs.9,917.05 million, a decrease of 30.95 0/o over the last financial year.
The profit after tax has come down from Rs 2,283.01 million to Rs.1,096.78
million resulting in a decrease of 51.95 0/o.
The decrease in profit has been accentuated by lesser sales coupled with
increase in financing costand reduction in the profit margins.
Your Directors have recommended dividend of Re.1 for every equity share of
Rs. 10 each resulting in a dividend rate of 100/o for the financial year
The Company's main operations consist of:
1. Development and construction of residential and commercial projects.
2. Contractual projects
The summary of the projects completed and ongoing as on March 31, 2009 has
been detailed in the Management Discussion Analysis Report.
There are no subsidiaries of the Company within the meaning of Section 4 of
the Companies Act, 1956 except investments as detailed in the financial
statements forming part of the Annual Report.
During the year under review, the Company along with Pan Atlantic
Investments Limited has invested in the development of the 1000/0 FDI
compliant project in Hosahalli, Bangalore through a Special Purpose Vehicle
company, Sobha Developers (Pune) Private Limited. The Company holds 190/0
of the equity share capital in Sobha Developers (Pune) Private Limited.
During the year, the Company has rationalized the workforce consequent to
the downturn in the economy. However the Company continues to develop and
retain the best available talent. Training and motivational programs are
being continuously imparted to all the employees working throughout the
organization. TheCompany strives to implement the best HR practices so as
to ensure that talent retention is ensured atall levels.
Employee relations continued to be cordial and harmonious at all levelsand
in all divisionsoftheCompany.
The Department of Quality and Safety holds the responsibility to monitor
all quality and safety works in the various projects of the Company and to
introduce latest construction technology so as to enable the delivery of
the Company's projects at par with relevant specifications, norms and
The department focuses on construction qualityand safetyaspects,
infrastructure execution, on civil maintenance works, on geotechnical
aspects, drawing detail development and on importing/implementing new tools
and material for process upgradation.
Your Company believes in adhering to the highest standards of Corporate
Governance and has been benchmarking its policies with the best corporate
practices. A detailed report on Corporate Governance and a Certificate from
the Practicing Company Secretary regarding compliance with conditions of
Corporate Governance has been furnished in theAnnual Report.
There are six directors on the Board of Directors of the Company.
During the year under review, Mr. N.S. Raghavan and Mrs. Sobha Menon have
resigned from the Board of Directors effective from January 31, 2009.
The Directors place on record their sincere appreciation to Mr. N.S.
Raghavan and Mrs. Sobha Menon for their valuable services and contribution
rendered to the Company.
By the terms of Articles 107, 108 and 109 of the Articles of Association,
Mr. Anup Shah and Dr. S.K. Gupta, Independent Directors, are liable to
retire by rotation at the ensuing Annual General Meeting and being
eligible, offer themselves for reappointment.
Brief resumes of the Directors proposed to be re-appointed, their expertise
in specific functional areas and names of the companies in which they hold
directorship/membership/chairmanship of the Board Committees, as stipulated
under clause 49 of the listing Agreement with the Stock Exchanges have been
provided as an annexure to the Notice convening theAnnual General Meeting.
Reclassification of share capital
During the year under review, the authorized share capital of the Company
was reclassified to 150,000,000 (one hundred and fifty million only) Equity
Shares of Rs. 10/- (Rupees ten each) and 5,000,000 (Five million only)
Preference Shares of Rs. 100/-(Rupees one hundred each).aggregating to
Rs.2,000,000,000/- (Rupees two thousand million only). The approval of the
members was obtained in the extraordinary general meeting of the Company
held on September 22, 2008.
The Board of Directors at its meeting held on August 19, 2008, had resolved
to augment the long term resources of the Company by way of a rights issue.
The approval of the members was obtained vide a special resolution passed
in the extraordinary general meeting held on September 22, 2008.
The Company received an amount of Rs. 475 million from the promoters of the
Company as an advance towards share subscription.
However, due to adverse market conditions, the Company had not proceeded
with the same.
The Company had obtained approval from the Reserve Bank of India for
extension of time for repatriation of the said money till September 30,
Debentures and commercial paper
During the year under review, the Company has issued Redeemable Non
Convertible Debentures amounting to Rs. 1,950 million and redeemed
Redeemable Non Convertible Debentures amounting to Rs. 2,819.90 million.
The Company has not issued any Commercial Paper during the financial year.
The Company has during the year under report extinguished Commercial Paper
amounting to Rs. 2,000 million.
During the year under review, your company has not accepted or renewed
anyfixed Deposit from the public.
The Auditors, M/s S.R.Batliboi &Associates, Chartered Accountants, retire
at the ensuing Annual General Meeting and have confirmed their
eligibilityand willingness to accept office, if reappointed.
The Auditors have made certain observations in their report and the Board
would like to bring your attention as follows:
1.Paragraph 4 of the Auditors Report:
The Company had obtained approvals from the members in the extraordinary
general meeting held on September 22, 2008. The promoters had brought in
Rs. 475 million as advance share subscription amount. The Company has not
proceeded with the Rights Issue due to the adverse market conditions, and
intends to repay the amount so received from the promoters within the
extended time allowed bythe Reserve Bankof India.
2. Paragraph 5 of the Auditors Report:
The Company based on legal opinion from a reputed law firm had entered into
certain transaction. How ever Registrar of Companies has directed that the
prior permission of Central Government was required a/s 297 of the
Companies Act, 1956. The Company proposes to seek for condonation of delay
a/s 621 A of the Companies Act, 1956. These transactions have been done on
arms length basis in the normal course of business. The Directors feel the
above transaction were not prejudicial to the interest of the Company.
3. Clause iii(a) and iii(b) of the Annexure referred to in Paragraph 3 of
the Audit Report:
The transactions in the nature of loans referred above were undertaken by
the Companywhen the status of the Companywas a Private Company. These
transactions were done within the framework of applicable laws and in the
normal course of business. These transactions are not prejudicial to the
interests of the Company. The Company has been making adequate disclosures
for these transactions at appropriate places.
4. Clause iv of the Annexure referred to in Paragraph 3 of the Audit
The Company is in process of implementing a new ERP Suite which commenced
during the year 2008 which covers the entire operations of the Company
spread over 10 cities involving projects under implementation aggregating
to more than 15 million sft., of construction. The Board of Directors are
confident of solving the integration issues and through this process
ensuring a proper internal control system commensurating with the size and
operations of the business will beachieved.
5. Clause ix (a) and (b) of the Annexure referred to in Paragraph 3 of
Due to the general downturn in the economy, the Company had to appropriate
the available cash flows to the ongoing projects of the Company resulting
in delays in the payment of certain statutory dues during thefinancialyear.
6. Clause xi of the Annexure referred to in Paragraph 3 of the Audit
Due to a slowdown in the market in which your Company is operating the
Company had requested its lenders to reschedule or roll over its near term
obligations. The Company had made these requests much before the due dates
of repayment and in accordance with the applicable monetary policies
initiated by the Reserve Bank of India. These rollover has been consented
by the lenders.
Corporate social responsibilityand community service
Your Company is a responsible corporate citizen and is committed to
corporate social responsibility. A separate section titled 'Corporate
Social Responsibility Statement' forms the part of the Annual Report.
Your Directors are glad to report the awards received during the financial
year 2008-09 bythe Company:
i. Builders Association of India, Pune Centre has awarded the 'Best of the
Best' Award for the Employee Care Centre (ECC), Infosys Technologies
Limited, Hinjewadi, Pune under the Well Built Structure Competition, 2008.
ii. Construction World recognized the Company as one of India's 'Top 10
Builders' at the Construction World Architect 8r Builder Awards, 2008 in
iii. Mr P.N.C. Menon, Chairman, received the 'Pravasi Bharatiya Samman
Puraskar' from the Government of India.
ISO 14001 and OHSAS 18001
During the year, the Company was certified Environmental Management System
ISO 14001:2004 and Occupational Health and Safety Assessment Series OHSAS
18001:2007 compliant by Bureau Veritas Certification India Private Limited.
Code of conduct compliance
Pursuant to Clause 49 of the Listing Agreement entered with the Bombay
Stock Exchange Limited and the National Stock Exchange of India Limited,
the declaration signed by the Managing Director affirming compliance with
the Code of Conduct the by Director's and senior management personnel, for
the financial year 2008-09 is annexed and forms part of the Directors and
Corporate Governance Report.
Disclosure of employees
As required under Section 217(2A) of the CompaniesAct, 1956 read with the
Companies (Particulars of Employees) Rules, 1975 as amended, the names and
other details have been furnished in an Annexure to this Report.
Conservation of energy, research and development, technology absorption,
foreign exchange earnings and outgo:
By the terms of Section 217 (1) (e) of the CompaniesAct, 1956 read with the
Companies (Disclosure of Particulars in the Report of Board of Directors)
Rules, 1988, the particulars of conservation of energy, technology
absorption, foreign exchange earnings and outgo are
Additional information to shareholders
Your Company provides the latest information on Company projects, matters
of interest to investors, financials etc on its
Statements made in the Report, including those stated under the caption
'Management Discussion and Analysis' describing the Company's plans,
projections and expectations may constitute 'forward looking statement'
within the meaning of applicable laws and regulations. Actual results may
differ materially from those either expressed or implied.
Your Directors would like to place on record their sincere thanks to the
Company's clients, vendors, investors and bankers for their continued
support to the Company during the year. The Directors wish to place on
record their appreciation of the contributions made by employees at all
We thank the government of India, state governments and other government
agencies for their support and look forward to their continued support in
For and on behalf of the Board of Directors
Ravi Menon J.C. Sharma
Vice Chairman Managing Director
Date : May 18, 2009
Annexure to directors report
i. Conservation of energy
(a) Energy conservation measures taken
1. Energy efficient lighting system in place e.g. CFL/FTL fittings are
being used in all offices/sites.
2. Energy efficient lighting system is designed for the residential
3. Parallel operations of lifts is being carried out to achieve energy
4. VFD's/ VAV and variable load chillers are selected for the new office
5. Green energy (Solar energy) utilization for lighting common areas in the
6. Effective preventive and predictive maintenance system is in place for
maintaining all energy intensive equipments i.e. DG Sets for energy
generation, cranes, hoists, loaders, excavators, trucks and other transport
7. Fuel metering system is in place to track the consumption of fuel.
8. Designing buildings which use the natural light as the main source of
(b) Additional investmentsand proposals, if any, being implemented for
reduction in consumption of energy
The Company thrives to construct energy efficient structures which use
natural lighting in their residential and contractual projects.
(c) Impact of measures at (a) and (b) above for reduction of energy
consumption and consequent impact on the cost of production of goods
As the Company is primarily engaged in the construction and development of
residential and contractual projects, the impact of the measures at (a) and
(b) above for reduction of energy consumption cannot be quantified.
Total energy consumption and energy consumption per unit of production:
1. Purchased (Units in million) 13.34 11.68
Total Amount (Rs. in million) 70.61 61.82
Rate/Unit (Rs.) 5.29 5.29
2. Own Generation through Diesel 1.05 0.56
Genset (Units in million)
Total Amount (Rs. in million) 14.62 7.83
Rate/Unit (Rs.) 13.92 13.98
ii. Technology absorption
The Company uses German tools, water proofing techniques, European
standards for the construction activity of the Company. The Company uses
both indigenous and imported technologies for implementation in its
projects. The Company has derived the benefits in the form of cost
reduction, lesser customer complaints and increased quality of the end
products. Import of technology from the European countries is a continuous
feature and has been fullyabsorbed.
iii. Research and development (R & D)
Areas in which R&D has been carried out bythe company
1. Use of Pre fabrication to increase reliability.
2. The organization of the work with the help of scheduling, structuring of
workforce in tandem with job description and closing time gaps to ensure
3. More in depth planning of construction activities/ procedures which in
turn result in stable levels of quality.
4. Standardization of building element and parts introducing rules and
regulations based on national 8r international standards and internal
5. Self compacting concretetrials and RMC research.
6. Advanced cracktreatment using glassfiber mesh.
7. Polyurethane grouting forstructural rehabilitation.
8. Piling technology (Design parametersand execution).
9. Dynamic cone penetrometer soil compaction test.
10. PCM (Project Closure and Maintenance) software development.
11. Safety statistics, accident tracking system and categorization as per
Benefits derived as a result of theabove R&D
The benefits derived from the above ensure that the final product delivered
bythe Company adheres to the world class standards.
Future plan of action
The success of R & D initiatives in the construction industry depends very
much on selecting the right method of construction, type of machines and
kind of materials. It also depends on integrating the planning and training
process within the Company and is understood asan ongoing process.
Expenditure on R&D
The R & D activity of the Company forms part of the project cost and cannot
be quantified separately.
iv. Foreign exchange earningsand outgo
(a) Activities relating to export; initiatives taken to increase exports;
development of new export markets for products an services; and export
The Company caters to the domestic market only and has not undertaken any
activities relating to export; initiatives to increase exports; development
of new export markets for products, services or formulated any export plans
(b) Total foreign exchange used and earned.
Total expenditure in foreign exchange : Rs. 3.40 million
Total income in foreign exchange : Nil
Forand on behalf of the Board of Directors
Ravi Menon J.C. Sharma
Vice Chairman Managing Director
Date : May 18, 2009
Management Discussion and Analysis
A. Economic scenario
a. Global economy
The world has witnessed the worst ever recession during the year, perhaps
worse than the Great Depression of the 30's. It has been reported that in
the past five quarters alone 40 percent of the world's wealth has been
eroded. According to the Asian Development Bank, the current economic
crisis has erased USD 50 trillion in global wealth. Age old banks and
financial institutions could not be saved despite mammoth efforts. The fall
of the U.S. banking sector, which is reported to have lost USD 1.8 trillion
sent shivers down the entire global banking system. Net shortfall after
receiving the original federal bailout funds was still a staggering USD 400
million. The economic deceleration has compelled employers to slash
salaries as well as resort to widespread retrenchment across industries,
shaking the financial security and soundness of families and thereby their
confidence. Fiscal deficit of countries has deepened without exception.
Some economists feel that the worst is not yet over and the slowdown is
likely to take a further toll on world economies while some are positive
that a revival is not too far away. Governments of various countries have
come out with maximum stimulus packages to cushion the impact of recession
and absorb some of the losses. The burning issue is also being addressed
collectively through forums like G-20 and IMF.
b. Indian economy
India has been no exception from the adverse effects of the global economic
recession. The major fallout of the recession in the developed countries
has been its impact on the inflow of capital to emerging nations including
India, which started drying up and resulting in net outflow of capital.
Industries and services sectors were denied the required funding for not
only growth but even for their day-to-day operations. Industrial growth
declined sharply and so did foreign trade. The worst hit industries have
been real estate and construction, IT/ITES sectors, traditional exports of
diamonds, textiles etc. However, Indian banking sector due to the
conservative and pragmatic policies of the government of India and the RBI
has not been so affected by recession as its counterparts in the developed
countries. Positive and timely measures initiated by the government and RBI
have resulted in controlling inflation well above expectations.
Availability of funds to the cash-strapped sectors has improved with a
complimentary decline in interest rates. Installation of a stable
government at the center and the continuity of reforms are expected to
certainly help the country to face the situation more effectively. It is
widely expected that India is in a much better position than many other
economies to achieve an early and fast recovery. The international Monetary
Fund has recently opined that 'the Indian economy, facing slowdown amid
global financial slowdown in expected to rebound by end of 2009'.
c. Real estate -global
The sub-prime crisis which surfaced in the US early on is considered the
forerunner of the economic recession in that country. It soon engulfed the
entire global economy. The real estate sector, thus, was the first casualty
in the global meltdown. Defaults in payments coupled with a sharp fall in
property prices resulted in the crash of the markets. Funding bythe banking
system into the sector dried up totally. Demand has fallen considerably,
and construction activity has come to a standstill in many countries which
consequently eroded customer sentiment deeply. It is widely believed that
the recovery of global real estate sector will take longer to recover than
the global economy.
d. Real estate- India
Indian real estate industry had experienced phenomenal growth just before
the global meltdown hit it during the last year. Industry majors had highly
leveraged their positions to acquire land banks for expansion of their
operations. The recession blocked the inflow of funds so critical for
expansion. This was exacerbated by the slowdown of the market where buyers
who were lapping up whatever was on offer in the boom time suddenly became
waryand sceptical and started avoiding the market. It is important to note
that the slowdown in Indian real estate has more to do with the sentiment
in tune with the international scene than with fundamentals. India is
significantly different from other countries of the world. Genuine demand
exists for good quality homes. The government has also been sympathetic to
the industry with various stimuli being offered.
Considering the present economic condition, buyers are deferring their
decision to acquire property and are more likely to invest once economy
recovers and buyer confidence is restored. Judging from the pronouncements
made by the government from time to time, we can expect more positive and
concrete fiscal steps which will result in providing the required support
to this sector for an early recovery.
e. Future outlook
The country is currently excited with the prospect of a stable and
aggressively pro-reforms government at the centre. Combating economic
downturn and restoration of economic growth are going to be the top
priorities for the new government. Inflation, which has been controlled
effectively, is expected to be held in check. Interest rates have started
its movement southwards and buyers will be attracted to borrow at cheaper
rates of interest. In the long term, supplywill be moderated to be in line
with the demand and the gap currently existing on account of unsold stocks
is likelyto be bridged. New project launches with innovative products and
aggressive marketing will be the new strategy for this sector. Success will
depend on the ability of the enterprise to convert its land bank to
projects in theshortestpossibletimespan.
B. Company general business profile, strengths and strategy initiatives,
future outlookand new business opportunities
The Company has achieved in a short span of time the enviable status of
being one of the leading real estate players in India. It is engaged in
residential and commercial construction apart from undertaking contracts
from major clients, especially from the IT sector. Residential projects
include luxury and super luxury residential apartments, villas and row
houses. Standard facilities such as a well-equipped club house, swimming
pool, gymnasium, game courts and recreation centre are provided in all
projects. The projects are spread out in various localities catering to
different client profiles. In 2007 it had made its move towards a pan-India
presence. The Company is currently undertaking projects in Karnataka,
Kerala, Tamil Nadu, Andhra Pradesh, Maharashtra, Orissa, Haryana,
Chandigarh and Himachal Pradesh and have plans to enter other states as
In the present economic scenario, the Company has been able to hold its
head high due to its pre-eminent strengths in quality construction, project
execution capabilities, transparentand honest dealings, aggressive
marketing strategy and above all a strong customer-centric approach.
Customer delight has been the Company's 'Mantra', with a dedicated team of
professionals serving the customers' interests from the time the sale is
made until after delivery and the conclusion of the mandatory post-delivery
warranty period of one year. Cost optimization is a continuous affair in
order to pass on the benefits to the customer and value engineering plays a
major role towards meaningful cost reduction. Innovation is given the
highest priority as also is the implementation of time-tested and well-
documented processes and best proven practices. The economic slowdown has
not diluted the efforts in this direction and has in fact reinforced the
resolve to be more productive and effective in continuing to offer the
discerning customera high value-for-money product.
While the entire real estate industry has been starved of adequate funding
for their operations, the Company has managed to restructure its short term
debts into long term ones. Efforts are also on to reduce debt by raising
equity so as to improve the gearing. The operating cash flow continues to
The slowdown had impacted the pace of some of the real estate projects
initially. Subsequently however, the project progress has picked up
momentum with more than 9 million Sft. under construction in various
stages. This will ensure continuous stream of inflows fortheCompany.
Corporate houses like Infosys, Hewlett Packard, Dell, Contel, Taj Group of
Hotels, HCL, BOSCH etc. are some of the names that have been engaging the
Company's services to build their commercial complexes. The Company has
made record delivery of twenty six contractual projects during the year
aggregating to 5.91 million Sft. When the turnover from real estate has
come down due to the economic slowdown, the contractual income has come to
the rescue of the Company. This stream continues to provide the prospect of
a steady income flow in the years to come.
The Company's business model is very robust and pragmatic. Inhouse facility
is available for all major construction activity. Stringent quality norms
are being followed at every stage of construction activity starting with
designs. The Company is perhaps the only fully backward-integrated real
estate company with inhouse facilities for architectural, structural,
infrastructure, electrical, mechanical, plumbing and environmental design,
supply of woodwork, glazing and metal works and concrete products such as
blocks and pavers. Its manufacturing facilities are spread over 600,000
Sft. and have the most modern plant and equipment to provide high quality
inputs required in construction. These manufacturing units have, apart from
ensuring quality supply of inputs for captive consumption, branched out to
obtain significant shares from outside jobs. While the focus remains on the
core business of real estate development and construction, the company has
successfully diversified into interior business and manufacturing and
marketing of spring mattresses under the brand name of 'Sobha Restoplus',
The Company is excited with the response received for its products and
plans to soon expand its range.
Utmost importance is given to client satisfaction. While the Company
markets its products directly to the customers through a dedicated
marketing team, it is ablysupported in after-sales service by a unique team
of Customer Relationship Management (CRM). They are fully qualified and
trained to look after the customers' diverse requirements for their
complete satisfaction. High levels of ethics and transparency are
maintained in dealing with the clients to improve their confidence in the
brand and the company. World class building techniques with the aid of
modern technology are employed bythe Company to ensure delivery of quality
To summarize, despite the despondency brought in by the global economic
crisis, the Company with its cutting edge technology, strong bias for
undiluted quality of its processes and products, backward-integrated
operations, high project capabilities, strict adherence to laws and
statutes, transparency in dealings, focussed customer-centric approach and
a highly professional management and motivated and dedicated human
resources, is in a strong position to tide over the current crisis. With
the proactive and progressive policies being practiced by the Government it
is hoped thatthe currentscenariowill change forthe better sooner than
later. The Company and its management will leave no stone unturned to
Project details of the Company
Summary of projects completed, ongoing and forthcoming as on March 31, 2009
is as under
- Completed : 38 projects aggregating 10.73 million Sft.
- Ongoing : 31 projects aggregating 9.31 million Sft.
- Completed : 12 projects aggregating 1.74 million Sft.
- Completed : 140 projects aggregating 18.30 million Sft.
- Ongoing : 34 Projects aggregating 5.84 million Sft.
C. Financial condition
The overall performance of the Company during the current financial period
was impacted adversely due to the general economic slowdown. The net sales
of the Company stood at Rs. 9,747 million and net profit before tax was Rs.
1,455 million. A summary of financial results for the financial period
2008- 09 is presented elsewhere in this report.
Sources of Funds
The present share capital of the Company consists of equity shares of the
facevalue of Rs.10/-each and redeemable preference shares of Rs.100/-.
The Authorised Share Capital is Rs. 2,000 million, divided into 150 million
equity shares of Rs. 10/- each and 5 million redeemable preference shares
The issued, subscribed and paid up equity share capital as of March 31,
2009 was Rs. 729.02 million, same as in the previous year. The Company did
not have any preference shares outstanding as of March 31, 2009.
The equity shares of the Company are currently listed on NSE and ESE in
India. The market capitalisation of the Company (based on NSE closing rate)
as of March 31, 2009 was Rs. 5,770 million (Previous year Rs.44,011
2. Reserves and Surplus:
Asummaryof reserves and surplus is provided in the table below:
As on March 31,
a. Capital Redemption Reserve 87 87
b. Securities Premium 5,639 5,639
c. General Reserve 700 700
d. Debenture Redemption Reserve 480 309
e. Profit and Loss Account 3,260 2,419
Total 10,166 9,154
a. Capital redemption reserve
This reserve was created for redemption of redeemable preference shares
during 2006-07. As of March 31, 2009, this was at Rs. 87 million, same as
in the previous year.
b. Securities premium
There was no change in the share premium account of the Company during
c. General reserve
Astatementof movement in theGeneral Reserve isgiven below:
(Rs. in Million)
As on March 31,
Balance beginning of year 700 450
Add: Transfer from P & L Account - 250
Balance end of year 700 700
d. Debenture redemption reserve
The Company has created Debenture Redemption Reserve amounting to Rs.171
million during theyear,outoftheprofitsofthe Company for the year, to
provide for redemption of non convertible debentures.
e. Profit and loss account
The balance retained in the profit and loss account as of March 31, 2009
was Rs. 3,260 million after providing the proposed dividend of Rs. 73
million and dividend tax of Rs.12 million. The bookvalue per share has
increased to Rs. 149.45 as of March 31, 2009 from Rs. 135.57 as of March
3. Secured and unsecured loans:
During the period under review, the Company has increased its borrowings
from Rs. 17,631 million to Rs.19,122 million. The details regarding
borrowings raised and repaid during the year 2008-09 are given below.
(Rs. in Million)
Year ended March 31
Balance as on April 1, 2008 17,631 5,837
Borrowed during the year 13,267 18,616
Repaid during the year 11,788 6,822
Interest accrued & due 12 -
Balance as on March 31, 2009 19,122 17,631
The securities offered for these borrowings are shown in the Notes
toAccounts of theAnnual Report.
Application of funds
4. Fixed assets
Astatement of movement in fixed assets is given below:
As on March 31
2009 2008 %
Land 66.36 66.36
Buildings 428.76 332.27 2.90
Plant and machinery 2,090.47 1,985.98 5.26
Furniture and fixtures 40.12 35.33 13.55
Vehicles 82.95 84.63 (1.99)
Computers & office equipment 158.11 149.55 5.72
Capitalized software 63.45 57.16 11.00
Gross Block 2,930.22 2,711.28 8.07
Less: Accumulated depreciation 1,198.02 841.78 42.32
Net block 1,732.20 1,869.50 (7.34)
Add: Capital Work-in-progress# 515.64 272.49 89.23
Net fixed assets 2,247.84 2,141.99 4.94
as % of revenue 3.63 2.44
as % of average gross block * 13.08 14.27
# The capital work-in-progress as of March 31, 2009 and 2008 represents
advances paid toward acquisition of fixed assets and the cost of assets not
put to use.
* Excluding land
a. Capital expenditure
The Company incurred an amount of Rs.468 million (Rs.549 million in the
previous year) towards capital expenditure comprising of additions to gross
block of Rs. 225 million and Rs.243 million on account of increase in
capital work in progress. The capital expenditure was funded out of
borrowings and internal accruals.
b. Additions to gross block
During the year, the Company added Rs. 225 million to the Company's gross
block comprising of Rs.105 million for investment in plant 8r machinery, Rs
96 million in Buildings, Rs 7 million in computer software and the balance
of Rs 17 million in computers, office equipments, furniture and fixtures
and vehicles etc. During the previous year, the Company added Rs.385
million to the gross block comprising of Rs. 264 million investment in
plant and machinery, Rs.46 million in computer software and the balance of
Rs.75 million in otherassets.
c. Retirement of assets
During the year, the Company retired/transferred various assets with a
gross block of Rs. 6 million and a net book value of Rs. 2 million. During
the previous year, the Company retired / transferred various assets with a
gross block of Rs. 8 million and a net book value of Rs.4 million.
d. Capital expenditure commitments
The Company's capital expenditure commitment stood at Rs. 17 million, as of
March 31, 2009 as compared to Rs. 41 million as of March 31, 2008.
During the year, there is no change in investment made by the Company to
the partnership firm 'Sobha city'. Details are provided in the notes to
accounts (Schedule-19, Point No.22). The consolidated financials for the
current year reflects its share of revenue and profits.
b. Other investments
During the year there has been no change in the other non-trade investments
exceptforinvestmentofRs.0.1 million in equityshares of Sobha Developers
(Pune) Pvt Ltd and sale of 1,006 equity shares of Tata Steel Ltd.
c. Investment in liquid mutual funds
The Company has bought and sold investment in liquid Mutual funds of Rs.571
million during the current year, details are given in the Notes to
Accounts. (Schedule 19, Point No.23)
6. Deferred tax assets
The Company recorded deferred tax assets of Rs. 31 million as of March 31,
2009 compared to Rs. 11 million as of March 31, 2008. Deferred tax
assets/liability represent timing differences in the financial and tax
books arising from depreciation on assets and expenditure under section 43B
of IncomeTaxAct., 1961, which are allowed in the year of payment. The
deferred tax assets will be recovered from future taxable income.
The inventories have gone up from Rs.7,879 million as at March 31, 2008 to
Rs.10,492 million as at March 31, 2009. A major portion of inventory is
attributed to work-in-progress of Rs.10,207 million in the current year end
as compared to Rs.7,235 million in previous year. This is mainly due to the
non recognition of sale value related to land and construction portion of
unfinished on-going real estate projects and will be recognized in
subsequentyears of sale.
Sundry debtors amounted to Rs. 3,553 million (without considering advance
of Rs. 1,672 million) as of March 31, 2009 as compared to Rs.5,452 million
(without considering advances of Rs.1,068 million) as of March 31, 2008.
Since the ownership of apartments is transferred to the clients upon full
settlement of their dues, the Company considers these debtors as good and
realizable. Further the debtors outstanding more than six months were only
Rs.786 million (Rs.415 million in the previous year) out of the total
receivables of Rs.3,553 million (Rs. 5,452 million in the previous year).
It can thus be seen that the sundry debtors has been brought down
9. Cash and cash equivalents
The cash balance includes the cash maintained at various branches and
imprest cash maintained at various projects for day to day expenses. The
bank balance includes the balance in various current accounts maintained
with various banks/locations. The deposit account represents deposits for
short tenures and margin money towards loan escrow account and other non-
fund based utilization of limits. The deposit includes the accrued interest
and outstanding (if any) as of the balance sheet date. The Company's
investment policy is to invest surpluses with banks and financial
institutions for short-term maturities and also with liquid mutual funds.
The balance under this head is Rs.211 million as on March 31, 2009 as
compared to Rs. 126 million as on March 2008.
10. Loans and advances
Loans 8r advances has increased from Rs.17,282 million as on March 31, 2008
to Rs. 18,956 million as on March 31, 2009. This is mainly due to increase
in advance towards purchasing land at Rs.17,958 million (as on March 31,
2009) from Rs. 16,248 million (as on March 31, 2008). Advances are
primarily towards amount paid in advance for value and services to be
received in future. The Company considers the advances/ deposit for land
good as the advances have been given based on arrangements/ Memoranda of
Understanding executed by the Company and the Company/ seller/ intermediary
is in the course of obtaining clearand marketable titles free from all
11. Current liabilities
Sundry creditors include creditors for goods, services and expenses,
advance from customers and interest accrued but not due etc. This has
increased to Rs.5,556 million as on March 31, 2009 from Rs.4,771 million as
on March 31, 2008. Unclaimed dividends represent dividends paid, but not
encashed by shareholders, and are represented bya bank
Advances received from customers denote monies received for the delivery of
the final products at future dates and amount received forwhich income
hasyetto be recognized in the books of accounts.
Proposed dividend represents the final dividend recommended to the
shareholders by the Board of Directors of the Company. Upon approval by the
shareholders, this will be paid after the Annual General Meeting. Provision
for Corporate dividend tax denotes the taxes payable on dividends.
Provisions for compensated absences represent an amount equivalent to
earned leave standing to the credit of employees' account.
D. Operations review
The Company is one of the leading real estate development and construction
companies in India, which focuses on residential and contractual projects.
Sales have come down during the year as compared to previous year due to
economic slowdown and recession which affected most to our construction
business. For the purpose of analysis, the revenue can be categorized as
(Rs. in Million)
Income from Year ended March 31 Change
Operations 2009 2008 %
Income from property 5,796 8,533 - 32
development, sale of land
and development rights
Income from contractual 2,299 3,887 - 41
Income from manufacturing 1,676 1943 - 14
Share in profits of partnership 68 67 1
firm (post tax)
Total 9,839 14,430 - 32
The Company is following a prudent accounting policy in recognizing
Revenue in respect of real estate property development is recognized based
on the project cost actually incurred as a proportion of total estimated
project cost and the proportion of the estimated saleable area in the
project in respect of which bookings have been made. However, if the actual
project cost incurred is less than 250/0 of the total estimated project
cost, no income is recognized in respect of that project in the relevant
fiscal period. Land costare not included forthe purpose of computing
percentage of completion. Estimates of saleable area and the related income
as well as project costs are reviewed periodically. The effect of any
changes in the estimates is recognized in the financial statements forthe
period in which such changes are determined. The company has so far
delivered 50 residential and commercial projects having 12.47 million Sft.
There are 31 ongoing projects with 9.31 million Sft The company has plans
to launch 24 more projects aggregating 17.53 million Sft.
Revenue from sale of land and development rights is recognized upon
transfer of all significant risks and rewards of ownership of such real
estate/property, as per the terms of the contracts entered into with
buyers, which generally coincides with the firming of the sales
Revenue in respect of contractual projects is recognized on the basis of
completion of a physical proportion of the contract work, agreements
entered into by the Company with its customers, and based on certification
by the clients. The Company has so far delivered 140 contractual projects
having 18.30 million Sft.
Revenue from sale of materials from Manufacturing Divisions like Interior,
Glazing 8r Metal Works, Building Materials are recognized when the
significant risks and rewards of ownership of the goods have passed to the
buyer which coincides with dispatch of goods to the customers. Service
income is recognized on the basis of completion of a physical proportion of
the contract work and based on certification bythe client.
The Company's share in profits from a firm where the Company is a partner
is recognized on the basis of such firm's audited annual accounts, as per
terms of the partnership deed. As per the deed, the Company has invested
Rs.200 million towards capital for 700/o share in the profits in FY 2007-08
and the other partner Tree Hill Estates Pvt Ltd. has invested Rs.200
million towards capital and Rs.400 million towards loan for 300/o share in
the profit of the firm. This has been arranged for the projects in
2. Other Income
This has increased from Rs.71 million to Rs.170 million in the current year
mainly due to incentive received for pre-payment of loan.
The total expenditure with respect to the yearly revenue is given as
(Rs. in Million)
2009 % 2008 %
Revenue from operations (net) 9,747 100.00 14,291 100.00
Cost of sales 4,504 46.21 7,725 54.05
Personnel expenses 1,009 10.35 1,025 7.17
Operating and other expenses 1,537 15.77 1,939 13.57
Depreciation/amortization 360 3.69 350 2.44
Financial expenses 1,052 10.79 615 4.30
Total 8,462 86.81 11,654 81.53
3.1 Cost of Sales
(Rs. in Million)
2009 % 2008 %
Revenue 9,747 100.00 14,291 100.00
Cost of sales
Land cost 2,453 25.17 3,900 27.29
Construction cost 3,492 35.83 6,370 44.57
Raw material 958 9.82 1,229 8.60
Production expenses 298 3.05 288 2.02
Decrease/(increase) (2,697) (27.67) (4,062) (28.42)
Total Cost of of Sales 4,504 46.20 7,7255 4.06
Cost of sales has come down to 46.20/o in the current year as compared to
54.1 0/o in the previous year due to various efforts made by the company
for cost reduction i.e. developing sources for alternate material and
alternate suppliers, efficient procurement and usage of material, improving
productivity, rationalization of workforce and close controlling and
monitoring of overheads etc.
a. Land cost
The company while obtaining clear and marketable title free fromall
encumbrances and transfer of legal title in its name, charge the amount to
land cost from Loans and Advances paid to the seller/intermediary. When
income is not recognized for the undivided share of land, it is transferred
b. Construction cost
Construction cost mainly consists of materials towards civil, electrical
and finishing works. Due to lower sales volumes overall cost has reduced to
Rs. 3,492 million from 6,370 million in the current year. Further as per
the Company's accounting policy, once the materials are purchased for a
project, it is charged to that particular project cost. As a result, any
cost associated with unrecognized revenue is transferred to Work-in-
For the same reasons discussed hereinabove raw materials cost has reduced
to Rs.958 million from Rs.1,229 million in the current year. This cost
includes the net materials consumed for Concrete, Interior and Glazing
d. Production expenses
This expense includes the following heads of expenses for the manufacturing
divisions during the year.
(Rs. in Million)
Concrete Interior Glazing Total
Direct wages 6.86 102.51 127.37 236.74
Power and fuel 4.36 12.59 2.17 19.12
Labour charges 0.36 12.01 3.17 15.54
Other direct expenses 0.00 18.90 7.37 26.27
Total 11.58 146.01 140.08 297.67
e. Decrease/(increase) in inventories
As explained earlier, the cost associated with un-recognized revenue is
transferred to work-in-progress. This includes the construction cost and
land cost. During the year the work-inprogress has reduced to Rs. 2,697
million from Rs. 4062 million. The revenue from the work-in-progress will
get realized in subsequent years based on the stage of completion and sales
of those projects.
3.2 Personnel expenses
The personnel expenses have reduced to Rs.1,009 million from Rs.1,025
million in the current year as compared to last year. This is mainly due to
combined effect of revisions in salaries and reduction in Manpower. The
total strength has reduced to 2,082 as on March 31, 2009 from 3,308 as on
March 31, 2008. The expenses include salaries and bonus, provision towards
gratuity and leave encashment, providentfund and staff welfare expenses.
3.3 Operating and other expenses
The operating expenses have reduced to Rs.1,537 million in the
currentyearfrom Rs.1,939 million of the previous year.
Particulars 2009 % 2008 %
Revenue 9,747 100.00 14,291 100.00
Electricity charges 43 0.44 56 0.39
Insurance charges 22 0.23 54 0.38
Sales tax and others 419 4.30 767 5.37
Freight outwards 37 0.38 43 0.30
Donation 95 0.97 100 0.70
Registration expenses 251 2.58 241 1.69
Rent 139 1.42 136 0.95
Legal and 81 0.83 107 0.75
Repairs and 31 0.32 23 0.16
Advertisement and 158 1.62 143 1.00
Travelling and 88 0.90 97 0.67
Miscellaneous 173 1.77 172 1.20
Total 1,537 15.76 1,939 13.56
4. Operating profits
The Company earned an operating profit (EBIDTA) of Rs. 2,868 million,
representing 28.90/0 of total revenues as compared to Rs. 3,674 million,
representing 25.6 0/o of total revenues during the previous year. The
reduction in EBIDTA is around 220/0 over the previous year.
The Company has charged interest to profit and loss account of Rs.1,052
million and Rs. 615 million for the years ended March 31, 2009 and 2008
respectively. An amount of Rs.1,731 million and Rs. 897 million were
inventorised / capitalized for the said period. The increase in interest is
due to increase in borrowing cost and quantum of borrowings.
6. Depreciation and amortization
The Company has provided Rs.360 million and Rs.350 million towards
depreciation and amortization for the years ended March 31, 2009 and 2008
respectively, representing 3.630/o and 2.440/0 of revenues. The
depreciation as a percentage of average gross block (excluding land) was
13.080/o and 14.270/o for the years ended March 31, 2009 and 2008
7. Provision for taxes
The details of provision for taxes areas follows:
Year ended March 31
Current tax 374.00 453.00
Deferred tax credit (20.00) (33.02)
Wealth tax 0.45 0.30
Fringe benefits tax 4.00 5.50
Total Provision 358.45 425.78
% on PET 24.6% 15.7%
% on Total Revenue 3.6% 3.0%
The Corporate tax provision was lower for the year ended March 31, 2009
compared to the previous year due to low profit before tax. Deferred tax
asset created during the year will be recovered from futuretax liability.
8. Net profit
The net profit after tax was Rs.1,097 million for the year ended March 31,
2009 as compared to Rs.2,283 million for the year ended March 31, 2008
showing a decline over previous year.
Year ended March 31
Total Revenue 9,917 14,363
PET 1,455 2,709
PAT 1,097 2,283
PET as % of revenue 14.7% 18.9%
PAT as % of revenue 11.1% 15.9%
The Company's growth has been financed through cash generated from
Operations and debt. The Company's policy is to maintain sufficient cash
balance to fund the ongoing projects requirement, the operational expenses
and other strategic initiatives like land acquisition.
The Company's investment policy is to invest surpluses with banks and
financial institutions for short-term maturities and also with liquid
mutual funds. The Companyaims to maintain adequate cash balances to meet
the strategic objectives while earning adequate returns.
10. Related party transactions
These have been discussed in detail in the notes to the financial
statements in this report.
E. Risks and threats to business
The real estate sector has been severely impacted due to the economic
slowdown. This sector requires large amount of funds for investment which
has further brought the sector under pressure. Slowdown in industry
generallyand specificallyto ITand job losses are having adverse impact on
the sector. Difficulty in getting finance at reasonable cost may hamper the
business. Due to volatility in economic conditions investors may not be
interested to invest in this sector. 1Nhile these concerns are valid to
some extent, the Company believes that large real estate players will be
able to control the situation because of their skills, competencies,
professional managementand demand supplygap.
Important business strategy of the Company includes the following:
a. Tailor made projects for group of clients
The Company is in touch with a group of clients to serve their requirements
with tailor made projects. The project will be conceived, developed
designed and constructed in line with the specific requirements of the
proposed group of clients. The Company is also working on the concept of
affordable housing to reap the benefits of its brand image by focusing on
middle class clients in prime locations. The Company is hopeful of getting
good responsefrom this newsegmentofclients.
For quick realization of its inventory various offers are being made by the
Company with convenient terms and conditions to attract new customers.
Projects are also conceived for sale of plotted land and sale of land bank.
Further, the Company is having a strong land bank in various strategic
locations which will be a major strength for the Company once the economy
b. Increased business for contractual projects
The Company has successfully executed various contractual projects with
very reputed clients and established its competency and capability. Clients
include Infosys, HCL technologies, DELL, Hewllet Packard, Taj group of
hotels, MICO, Contel etc. The Company believes that it will be able to use
its strength, superior product qualityand project execution capabilitiesfor
increasing business by adding more corporate housesas its clients.
c. Sale of plotted development land
The Company has planned for sale of plotted development land resulting in
quick cash realization, reduction in inventory and improvement in sales
d. High Standard of quality
The Company has developed its brand image because of its abilityto deliver
quiz products to the utmost satisfaction of the customers. The Company uses
world class building techniques and employs international expertsto ensure
high level of quality.
e. Cash Flow
The Company has been able to manage its cash flow successfully in the
present scenario. During the financial year 2008-09, the operating cash
flow remained positive throughout. Most of the loans due for repayment
during the financial years 2008-09 and 2009-10 have been rescheduled,
giving major relief. Further cash flow is being planned for the next two
years to enable the Company to make payment of loans, operational expenses,
fixed overheads and financial charges etc.
The Company has taken various initiatives to arrange the required funds for
future requirements i.e. sale of land and development rights, attracting
investments for specific projects and diluting promoter's stake etc. The
Company is confident that the above initiatives taken by it will give
desired results in the next six to nine months and adequate cash will be
available with the Company to discharge itsfinancial obligations.
G. Human resource management
Astrong brand image has been builtthanks to the high standard of quality
products delivered by the Company. This could not have been possible but
for the dedicated professional and experienced manpower resources of the
Company. The Company ensures best work environment and equal opportunities
with better prospects of career developmenttoallitsemployees.
Besttalentisattractedand retained bythe Company. It has created a state-of-
the-art facility for technical and managerial training of its employees to
groom their professional knowledge and managerial abilities. The Company
has also established a Training Academy to provide technical training to
tradesman and these trained tradesmen are offered preferential employment
with the Company. Human Resources department is following best practises to
motivate the workforce.
H. Information technology
The Company is continuously working and concentrating on IT to get maximum
benefit for the organization. The Company has been able to use a good ERP
system successfully. All branches and regional offices all across India are
well connected ensuring timely and qualitative collection and dissemination
of business information. The Company has been able to manage such a large
size of business successfully only because of excellent information
technology systems and processes.
I. Internal control system and their adequacy
The Company has an in-house internal audit department which examines and
ensures adequate internal checks and control procedures. It also ensures
proper accounting, records authorisation, control of operations and
compliance of law.
The Company has a strong reporting system which evaluates and forewarns the
management on issues related to compliance. Further the Company is
continuously working to improve and strengthen internal check and control
system to align with the expected growth in operations.
The Company is taking care of its risk management through robust risk
management system. Risks are being identified to achieve its strategic
business objective; plans are made, implemented and monitored to
K. Compliancewith local laws
The Company believes strongly in complying with the laws of the land where
it operates. The Company has a well-established legal set up for ensuring
compliance with all statutes which are applicable periodically to its
operations/ ventures. The legal department is responsible for getting
various sanctions and approvals pertaining to the projects. Any other
approvals or permissions related to specific operations are either handled
by corporate legal cell or bythe concerned department.
L. Cautionary statement
In accordance with the Code of Corporate Governance approved by the
Securities and Exchange Board of India, shareholders and readers are
cautioned that in the case of data and information external to the Company,
no representation is made on its accuracy or comprehensiveness though the
same are based on sources believed to be reliable. Utmost care has been
taken to ensure that the opinions expressed by the management herein
contain its perceptions on the material impacts on the Company's operations
but it is not exhaustive as they contain forward-looking statements which
are extremely dynamic and increasingly fraught with risks and
uncertainties. Actual results, performances, achievements or sequence of
events may be materially different from the views expressed herein.