Sobha Developers
BSE: 532784 | NSE: SOBHA | ISIN: INE671H01015 | Construction & Contracting - Real Estate
- Directors Report
- Chairman's Speech
- Auditors Report
- Notes To Accounts
- Accounting Policy
- Finished Products
- Raw Materials
| Chairman's Speech | Year : Mar '09 |
Dear Shareholder, It is my privilege to present to you the 14th Annual Report of Sobha Developers Limited for the financial year 2008-09. The year witnessed unprecedented events globally on the economic front. What started as the sub-prime crisis in the US soon engulfed the entire world economy leading to severe recession, worst since the Great Depression of the ‘30s. India, despite its cautionary economic policies has been no exception. Real Estate industry has been one of the worst affected by the recession. A highly levered sector was caught in a vicious cycle when lenders tightened their purse strings and cost of borrowing increased. Sobha has had a positive cash flow throughout the year. However with the credit crunch in the market coupled with a gearing of 1.74, liquidity has become critical. This has been further aggravated by a steep reduction in sales as customers started deferring property purchase decisions expecting price corrections. The extraordinary situation demanded extraordinary measures. Sobha has shown exemplary resilience in adapting to the changed scenario and has initiated aggressive measures such as (a) inviting new investment at entity/ SPV level, (b) rescheduling the debt portfolio, (c) offering none- core land holdings for sale (d) offering innovative and improved products through our highly trained delivery and quality teams, (e) presenting the cost conscious customer ‘value for money’ products through value engineering and cost optimization, (f) creating a new portfolio of products including affordable homes with undiluted quality, (g) rationalizing manpower resources and motivating them to take on additional responsibilities - the response from the dedicated Sobha team has been marvelous; the ease with which this has been accomplished demonstrates that sincerity of purpose and appropriate communication can draw the best out of people in crisis situations, (h) aggressive sales push through innovative marketing and (i) renewed customer orientation and focus. We have initiated all the above steps while continuing our operations without disruption to the progress of the projects. The results of the above actions have started bringing in positive changes in the operations. The financial results bear only partial testimony to this. I am confident that in the years to come our actions will translate into better numbers. feel that the economic revival is not too far away and 2010 will see a resurgence of the markets. Thanks to the measures initiated by Government of India to boost economic growth, inflation has been brought under control and liquidity improved. The new Government is widely expected to push the economic reforms aggressively leading to economic stability and growth. It is well appreciated that the stability of the realty sector is extremely crucial for general economic growth. The sectors strong capacity to create large number of jobs needs to be underscored. Sobha, with its cutting edge quality bias, innovative product range, adherence to legal perfection and ability to deliver projects on schedule, will be one of the biggest beneficiaries of an economy on its path to recovery. It will be amongst the foremost real estate players to take full advantage of the impending turnaround. The global economic crisis has its silver linings too. It has sprung unknown challenges to governments and corporations. Resilience marks the leader from the rest. Resilience is so intrinsically related to the day-to-day ethos of the organization that it can create significant payback in terms of helping to refocus on what is important to the organization and its people. Sobha has demonstrated its resilience now more than ever. consider the interests of our shareholders paramount. I look forward to your continued support in our relentless pursuit for excellence. Place: Bengaluru P.N.C. Menon Date : May 18, 2009 Chairman |
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| Source : Religare Technova | |
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