MIRA
INFORM REPORT
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Report Date : |
16.07.2007 |
IDENTIFICATION DETAILS
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Name : |
CONTINENTAL CONSTRUCTION LIMITED |
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Registered Office : |
Continental House, 28, |
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Country : |
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Date of Incorporation : |
13.12.1962 |
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Com. Reg. No.: |
3859 |
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CIN No.: [Company
Identification No.] |
L45101DL1962PLC003859 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELC00232B |
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Legal Form : |
Closely Held Public Limited Liability Company. |
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Line of Business : |
Subject is engaged in the business of Construction of Hydro-electric Projects, Rail Link Projects, Irrigation Projects, Water and Serape Turnkey Projects, Industrial Complexes, Hospital Complex, etc. |
RATING & COMMENTS
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MIRA’s Rating : |
C |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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Maximum Credit Limit : |
- |
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Status : |
Undetermined |
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Payment Behaviour : |
Unknown |
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Litigation : |
Unknown |
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Comments : |
In absence of latest financials and business details, it would be prudent
to deal with the company on fully safe and secured trade terms and
conditions. |
LOCATIONS
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Registered Office : |
Continental House, 28, |
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Tel. No.: |
91 -11-51617115 / 51617160 / 2955 1483 / 2642 4119 |
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Fax No.: |
91 – 11-2646 4576 |
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E-Mail : |
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Website : |
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Construction Sites: |
GUJRAT
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Branches: |
DELHI |
DIRECTORS
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Name : |
Mr. M. S. Basi |
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Designation : |
Chairman |
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Name : |
Mr. Chander Verma |
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Designation : |
Managing Director |
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Qualification : |
B.E. (Civil), M.E.A. (Construction Management) |
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Name : |
Mr. V K Verma |
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Designation : |
Executive Director |
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Name : |
Mr. M K Verma |
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Designation : |
Executive Director |
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Qualification : |
B.Sc. (Civil) |
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Name : |
Mr. P. A. Kapur |
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Designation : |
Director (Projects) |
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Qualification : |
B. Sc. Engineering |
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Name : |
Mr. P. S. Raghupathi |
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Designation : |
(Nominee of UCO Bank Nomination Recalled) |
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Name : |
Mr. R. K. Joshi |
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Designation : |
Nominee of UCO Bank |
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Name : |
Mr. K. S. Basi |
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Designation : |
Director |
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Name : |
Mr. O. P. Chadha |
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Designation : |
Director |
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Name : |
Mr. R. C. Kehar |
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Designation : |
Director |
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Name : |
Mr. S. K. Aggarwal |
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Designation : |
Director |
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Name : |
Mr. Gokaran Singh |
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Designation : |
Director |
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Name : |
Mr. S. S. Gupta |
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Designation : |
Director |
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Name : |
Mr. D. S. Basi |
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Designation : |
Director Alternate to Shri R. K. Kalra |
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Name : |
Mr. Gian Singh |
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Designation : |
Director Alternate to Shri S. Swaminathan |
KEY EXECUTIVES
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Name : |
Mr. P. K. Mookherjee |
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Designation : |
Vice President |
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Name : |
Mr. T. K. Das |
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Designation : |
Vice President |
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Name : |
Mr. Sachadeva |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Individual and HUF |
8380250 |
25.40 |
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Companies |
473500 |
1.43 |
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NRI’s, OCB’s etc. |
359450 |
1.09 |
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Mutual Funds, banks, FI’s |
1844550 |
5.59 |
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Promoters |
21942250 |
66.49 |
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Total |
33000000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in the business of Construction of Hydro-electric Projects, Rail Link Projects, Irrigation Projects, Water and Serape Turnkey Projects, Industrial Complexes, Hospital Complex, etc. |
GENERAL INFORMATION
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No. of Employees : |
1200 |
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Bankers : |
Ø UCO Bank Ø State Bank of Saurashtra Ø Oriental Bank of Commerce Ø
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State Bank of Ø State Bank of Travancore |
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Facilities : |
Subject does not enjoy any credit facility from its bankers at
present. |
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Banking
Relations : |
Unknown |
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Auditors : |
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Name : |
Tass Associates Chartered Accountant |
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Address : |
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Associates/Subsidiaries : |
Continental Papers Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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50,000,000 |
Equity Shares |
Rs. 10.00 each |
Rs. 500.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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33,000,000 |
Equity Shares |
Rs. 10.00 each |
Rs. 330.000 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
The company appears to be in trouble. We talked to Mr. Pillai
(Administrative Manager), Mr. P K Mookherjee (Director – Finance), Mr. Sachdeva
(Company Secretary – Finance) for up-dating the details but in vain.
The company is reported as poor in corporate governance and no latest
financials are available.
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Particulars |
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31.03.2007 (Estimated) |
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Sales Turnover |
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250.000 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Incorporated in December 1962 as a private limited company, subject was promoted by S S Basi, and C L Verma. It was converted into a public limited company in January 1983. It is engaged in the construction of hydro-electric and irrigation projects (such as dams, power houses, barrages, and tunnels), marine works (such as dry docks, locks, jetties, and berths), airport runways, water and sewerage turnkey projects, pipelines, vertical grain silos, heavy foundations, deep drilling, open cast mining, and industrial complexes, etc.
The company made its entry into the overseas construction market in 1975 by
constructing a fibre-board factory at Abu Suhair. It was the first civil
construction contract awarded by the Iraqi government to an Indian company.
Subject was again the first Indian company to have secured a turnkey project
(Rockhil Dam Construction) in
It has received various awards from the Engineering Export Promotion Council.
Currently, it is one among the very few Indian companies to have secured
sizeable construction contracts overseas.
The works at Mahi Aqueduct project, Kodasalli Project and Naval Drydock at
Mumbai has successfully been completed during the year 1999-2000. Also, during
the year, the company has been awarded a service contract for the construction
of water tank of Abu Aisha Project in
Subject has been certified as ISO 9001:2000 by Det Norske Veritas with effect from April, 2002
Industry and
structure development
Subject is facing tough competition in the global scenario due to presence of many leading players in the industry since the government has begun stimulating infrastructure development in the fields of power, roads and railways, the future for construction companies. Subject has been recently awarded five new projects valuing Rs. 3358.700 millions
Website details attached:
Profile
Subject is one of the largest civil engineering construction companies
in
Subject was incorporated as a Private Limited Company in December 1962
and was converted into a Public Limited Company in January 1983. Subject is a
fully mechanized construction company and has witnessed enormous growth and
expansion during these years.
Subject was engaged, from the very inception, in execution of large size
turnkey infrastructure construction projects. The Company has executed numerous
projects of national and international importance to the utmost satisfaction of
its clients in different parts of the globe.
Subject has been pioneer in exporting civil construction know-how to
Middle East and
A turnkey irrigation project, comprising of construction of rock-fill dam,
tunnels, intake structure and road in the valley, has also been executed in
In recognition of phenomenal success in securing contracts overseas and
successfully executing the same as per schedule, subject received "All
India Top Exporters Award" for five years continuously.
The success of subject is attributed to its commitment to excel in all areas -
its dedicated, adventurous, experienced and hardworking staff and its ability to
live up to the satisfaction of the clients.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government official
or a family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs. 40.36 |
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1 |
Rs. 82.23 |
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Euro |
1 |
Rs. 55.65 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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