MIRA
INFORM REPORT
|
Report Date : |
16.05.2008 |
IDENTIFICATION
DETAILS
|
Name : |
CONSOLIDATED CONSTRUCTION CONSORTIUM LIMITED |
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Registered Office : |
No. 3, 2nd
Link Street, C.I.T. Colony, Mylapore, Chennai – 600004, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
11.07.1997 |
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Com. Reg. No.: |
18-38610 |
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CIN No.: [Company
Identification No.] |
U45201TN1997PLC038610 |
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Legal Form : |
Closely held Public Limited Liability Company. |
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Line of Business : |
The company is
engaged in Civil Construction. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 7434000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established company having fine track.
Trade relations are fair. Financial
position is satisfactory. Payments
are usually correct and as per commitments. The company can
be considered good for any normal business dealings. The Receptionist
of the Company declined to transfer the line to the concerned person. |
INFORMATION
DECLINED BY
|
Name : |
Receptionist |
LOCATIONS
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Registered/Corporate Office : |
No. 3, 2nd
Link Street, C.I.T. Colony, Mylapore, Chennai – 600004, Tamilnadu, India |
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Tel. No.: |
91-44-24661083 /
84 |
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Mobile : |
91-9444395057 |
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Fax No.: |
91-44-24990225 |
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E-Mail : |
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Website : |
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Regional
Office : |
Chennai Tel. No. : 91-44-24735693 /23728307/ 08 Mobile : 91-9444022146 Tele-fax: 91-44-24735693 Email: chn@ccclindia.com Person Incharge: Mr. T. Suresh Kumar, Deputy.
Regional Planning Manager
Tel. No. : 91-80-26787643/26787791 Mobile : 91-9448472800 Tele-fax : 91-80-2678 7791 Email: ccclblr@vsnl.com Person Incharge: Mr. R. Kishore, Manager -
Business Development
Tel. No. : 91-40-27842681 Mobile: 91-9440623030 Tele-fax : 91-40-27842668 Email: ccclhyd@yahoo.co.in, hydbd@ccclindia.com
Person Incharge: Mr. G. Ramasubramanyam, Manager -
Business Development
A1/263, Mezzanine Floor, Safdarjung Enclave, New
Delhi - 110 029, India Tel. No. : 91-11-51658236/37/38 Mobile: 91-9810525517 Email: cccldelhi@mantraonline.com Person Incharge: Mr. A. D. Huria, Executive
Director
Tel. No. : 00971-6-5750902 Mobile : 00971-503055729 Tele-fax : 00971-6-5750902 Email: majconco@eim.ae Person Incharge: Mr. D. Uma Sankar, General
Manager |
DIRECTORS
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Name : |
Mr. R. Sarabeswar |
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Designation : |
Chairman &
Whole Time Director |
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Address : |
1A, Norton Main
Road, Mandavelipakkam, Chennai – 600028, Tamilnadu, India |
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Date of Birth/Age : |
04.05.1954 |
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Date of Appointment : |
19.10.1999 |
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Name : |
Mr. S.
Sivaramakrishnan |
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Designation : |
Managing Director |
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Address : |
27A, Railway
Colony, II Street, Nelson Manickam Road, Chennai – 600029, Tamilnadu, India |
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Date of Birth/Age : |
15.02.1954 |
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Date of Appointment : |
11.07.1997 |
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Name : |
Mr. P. Venkatesh |
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Designation : |
Director |
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Address : |
D1 HIG Flat, Ashok
Pillar Road, Ashok Nagar, Chennai – 600083, Tamilnadu, India |
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Date of Birth/Age : |
13.05.1962 |
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Date of Appointment : |
22.08.1997 |
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Name : |
Mr. V. G.
Janarthanam |
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Designation : |
Whole Time
Director |
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Address : |
AL – 33, 4th
Avenue, Anna Nagar West, Chennai – 600040, Tamilnadu, India |
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Date of Birth/Age : |
12.04.1956 |
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Date of Appointment : |
01.07.2002 |
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Name : |
Mr. K. Kannan |
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Designation : |
Director |
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Address : |
576 B, Mahesh, Jame
Jamshed Road, Mathunga, Mumbai – 400019, Maharashtra, India |
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Date of Birth/Age : |
17.11.1939 |
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Date of Appointment : |
29.10.2003 |
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Name : |
Mr. P. K.
Arvindan |
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Designation : |
Director |
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Name : |
Mr. S. N. Rajesh |
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Designation : |
Director |
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Name : |
Mr. P. K.
Shridharan |
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Designation : |
Director |
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Name : |
Mr. Jayaram
Rangan |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. N.
Balachandran |
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Designation : |
Company Secretary
in Practice |
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Address : |
C/2, Yamuna
Flats, 16th Street, Nanganallur, Chennai – 600061, Tamilnadu,
India |
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Name : |
Mr. M. V. M. Sundar |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2005
|
Names of
Shareholders |
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No. of Shares |
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Ms. Anandhi
Seetharaman |
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32050 |
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Mr. Arul Anandan
X |
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125000 |
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Mr. Ayyadurai A |
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100000 |
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Mr. Baskara
Sethuraj T |
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19600 |
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Mr. Durgadoss R |
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10002 |
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Mr. Dharanidhar
K. |
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10000 |
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Mr. Devanarayanan
T K |
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5300 |
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Ms. Eswari
Manivannna |
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14000 |
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Ms. Girija R. |
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1207502 |
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Ms. Geetha
Subramani |
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13900 |
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Mr. Janarthanam
V. G. |
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140002 |
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Dr. Jayaraman S. |
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3900 |
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Mr. Kolipakkam
Moha |
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17000 |
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Ms. Lakshmi
Subramoni |
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4800 |
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Ms. Letha L. |
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4500 |
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Mr. Manivannan K. |
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14000 |
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Ms. Madhavi
Ganesh |
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30000 |
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Mr. Nischal B R |
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23200 |
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Mr. Nagarajan T B |
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5000 |
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Mr. Padmavathy J |
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99000 |
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Mr. Priyamvada K |
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22500 |
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Mr. Padmanabhan
L. |
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70000 |
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Mr. Rajagopal K. |
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10000 |
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Ms. Ramadevi
Ramamoorthy |
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8300 |
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Mr. Ravi P. N. |
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30000 |
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Mr. Renganathan
Ramamoorthy |
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10000 |
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Mr. Ramachandran
S. |
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21000 |
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Mr. Ram D N |
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3800 |
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Ms. Rajalakshmi
Bharath |
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11000 |
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Mr. Rengaraj G. |
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1250 |
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Mr. Sarabeswar R. |
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164402 |
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Ms.
Sivaramakrishnan S. |
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191832 |
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Mr. Subramani S.
R. |
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3500 |
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Mr. Sudharsan
Reddy P. |
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23200 |
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Mr. Sundaram K. |
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11600 |
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Mr. Sondra Sukumar |
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11600 |
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Mr. Seetharaman
T. R. |
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16600 |
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Ms. Shobana K. |
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8100 |
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Mr.
Sivaramakrishnan G. |
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6000 |
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Mr. Sridaran S. |
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16000 |
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Mr. Subramania
Iyer Viswanathan |
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69600 |
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Mr. Sivarajan
Balasubramaniam |
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116000 |
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Mr. Srinivas B. |
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1500 |
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Ms. Usha
Sarabeswar |
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1328058 |
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Mr. Venkatesh P. |
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2 |
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Mr. Vaidyanathan
A. S. |
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112000 |
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Mr. Vidyasekar B. |
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46400 |
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TOTAL |
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4193000 |
BUSINESS DETAILS
|
Line of Business : |
The company is
engaged in Civil Construction. |
GENERAL
INFORMATION
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No. of Employees : |
4000 |
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Bankers : |
Leather
International Branch, Chennai – 600010, Tamilnadu, India
Industrial
Finance Branch, Chennai – 600034, Tamilnadu, India
Chennai – 600002,
Tamilnadu, India
Nungambakkam High
Road, Chennai – 600034, Tamilnadu, India
Mylapore Branch,
Chennai – 600004, Tamilnadu, India
T. Nagar Branch,
Chennai – 600017, Tamilnadu, India |
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Facilities : |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Murali Associates Chartered
Accountants |
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Address : |
G – 1, Kumar’s
Krishna, No. 56, II Main Road, R. A. Puram, Chennai – 600028, Tamilnadu,
India |
CAPITAL STRUCTURE
[As on 31.03.2005]
Authorised
Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
9000000 |
Equity Shares |
Rs. 10/- each |
Rs. 90.000 Millions |
|
1000000 |
Preference Shares |
Rs. 10/- each |
Rs. 10.000 Millions |
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TOTAL |
|
Rs. 100.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
4193000 |
Equity Shares |
Rs. 10/- each |
Rs. 41.930 Millions |
|
30000 |
15% Cumulative
Non Participating Redeemable Preference Shares |
Rs. 10/- each |
Rs. 0.300 Million |
|
20000 |
13% Cumulative
Non Participating Redeemable Preference Shares |
Rs. 10/- each |
Rs. 0.200 Million |
|
20000 |
10% Cumulative
Non Participating Redeemable Preference Shares |
Rs. 10/- each |
Rs. 0.200 Million |
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TOTAL |
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Rs. 42.630 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
133.000 |
119.100 |
42.600 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1725.600 |
1297.400 |
182.200 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1858.600 |
1416.500 |
224.800 |
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LOAN FUNDS |
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1] Secured Loans |
1154.300 |
292.200 |
262.400 |
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2] Unsecured Loans |
0.000 |
0.000 |
11.000 |
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TOTAL BORROWING |
1154.300 |
292.200 |
273.400 |
|
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
3012.900 |
1708.700 |
498.200 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
506.100 |
168.400 |
92.800 |
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Capital work-in-progress |
26.000 |
0.000 |
0.000 |
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INVESTMENT |
22.100 |
2.900 |
5.700 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
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Inventories |
3320.800
|
1331.700 |
616.600 |
|
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Sundry Debtors |
44.600
|
44.400 |
13.100 |
|
|
Cash & Bank Balances |
888.200
|
898.300 |
81.900 |
|
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Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
642.800
|
294.900 |
161.000 |
|
Total
Current Assets |
4896.400
|
2569.300 |
872.600 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
2305.900
|
883.400 |
362.500 |
|
|
Provisions |
147.400
|
162.700 |
110.400 |
|
Total
Current Liabilities |
2453.300
|
1046.100 |
472.900 |
|
|
Net Current Assets |
2443.100
|
1523.200 |
399.700 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
15.600 |
14.200 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3012.900 |
1708.700 |
498.200 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
8496.800
|
4247.600
|
970.700
|
|
|
Other Income |
50.300
|
17.000
|
6.300
|
|
|
Total Income |
8547.100 |
4264.600 |
977.000 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
619.500
|
290.500
|
126.300
|
|
|
Provision for Taxation |
157.000
|
100.600
|
47.500
|
|
|
Profit/(Loss) After Tax |
462.500
|
189.900
|
78.800
|
|
|
|
|
|
|
|
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Expenditures : |
|
|
|
|
|
|
Raw Materials |
0.000
|
0.000
|
0.000
|
|
|
Excise Duty |
00.000
|
0.000
|
0.000
|
|
|
Power & Fuel Cost |
155.400
|
67.200
|
0.000
|
|
|
Other Manufacturing Expenses |
6708.900
|
3371.800
|
2686.900
|
|
|
Employee Cost |
351..600
|
195.800
|
119.500
|
|
|
Selling and Administration Expenses |
555.100
|
264.400
|
101.300
|
|
|
Miscellaneous Expenses |
17.100
|
5.100
|
0.000
|
|
|
Interest & Financial Charges |
104.000
|
50.800
|
24.400
|
|
|
Depreciation |
35.500
|
19.000
|
9.600
|
|
|
Stock Adjustments |
0.000
|
0.000
|
[2091.000]
|
|
Total Expenditure |
7927.600 |
3974.100 |
850.700 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
31.03.2008 |
|
Type |
1st Quarter |
2nd Quarter |
3rd Quarter |
4th Quarter |
|
Sales Turnover |
2684.900
|
3830.600
|
3315.600
|
4649.800
|
|
Other Income |
11.200
|
20.200
|
21.700
|
25.400
|
|
Total Income |
2696.100
|
3850.800
|
3337.300
|
4675.200
|
|
Total Expenditure |
2467.900
|
3498.200
|
3075.500
|
4079.200
|
|
Operating Profit |
228.200
|
352.600
|
261.800
|
596.000
|
|
Interest |
25.200
|
37.300
|
2.400
|
7.000
|
|
Gross Profit |
203.000
|
315.300
|
259.400
|
589.000
|
|
Depreciation |
12.200
|
11.800
|
15.500
|
13.500
|
|
Tax |
93.900
|
0.000
|
45.100
|
178.300
|
|
Reported PAT |
18.000
|
303.500
|
191.700
|
357.700
|
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.44 |
0.34 |
1.06 |
|
Long Term Debt-Equity Ratio |
0.15 |
0.29 |
0.63 |
|
Current Ratio |
1.67 |
2.14 |
1.47 |
|
Fixed Assets |
21.25 |
25.38 |
10.09 |
|
Inventory |
3.65 |
4.36 |
2.09 |
|
Debtors |
190.94 |
147.74 |
99.56 |
|
Interest Cover Ratio |
6.96 |
6.72 |
6.18 |
|
Operating Profit Margin(%) |
8.93 |
8.48 |
16.51 |
|
Profit Before Interest And Tax Margin(%) |
8.51 |
8.04 |
15.52 |
|
Cash Profit Margin(%) |
5.86 |
4.92 |
9.11 |
|
Adjusted Net Profit Margin(%) |
5.44 |
4.47 |
8.12 |
|
Return On Capital Employed(%) |
30.84 |
31.13 |
40.03 |
|
Return On Net Worth(%) |
28.24 |
23.14 |
43.21 |
LOCAL AGENCY
FURTHER INFORMATION
Bonus Issue
Considering the financial performance of the company for nine months
period ended December 31, 2006 the board had recommended for issuance of Bonus Shares
in the ratio of 3:2 which was approved by the shareholders at the Extra
Ordinary General Meeting held on 16th April 2007.
The Bonus shares will be capitalized to a sum of Rs. 199.530 million from the
securities premium account. With the issue of bonus shares, the paid up share
capital of the company will be increased from Rs. 133.020 million to Rs.
332.550 million.
Subsidiary
The Company has
established a subsidiary during the fiscal year under the name and style of
"Consolidated Interiors Limited". The day to day operations of the
company are being managed by Mr R Srinivasan, Chief Executive Officer of
Consolidated Interiors Limited. This subsidiary achieved a turnover of Rs.
157.060 million for the fiscal year ended March 31st, 2007 on a standalone
basis.
Joint Venture Agreements
The Company has floated a
partnership firm as as pecial purpose vehicle during the fiscal year under the
name and style "Yuga Builders" for the development of residential
townships with Yuga Homes Limited.
During the fiscal year
2005, The Company has entered into a partnership firm "Yuga
Developers" with Yuga Homes Limited and Ambattur Constructions Limited.
The firm has purchased a property in "Thiruverkadu" admeasuring to
6.71 acres and has initiated the commercial operation for development of the
project and the project is expected to commence in the year 2007-08.
Based on an agreement
entered into with "Tradeline LLC", Dubai, The Company has reckoned in
its Profit and Loss Account an amount aggregating to a value of Rs.0.820
million being its agreed share of profit from that venture.
Accreditation
The company has been awarded the "Par Excellence Award" from the
Builders Association India during the financial Year 2006-07.
MANAGEMENT DISCUSSION AND ANALYSIS
BUSINESS
The company is one of the
leading providers of integrated turn-key construction services and have
executed or are executing projects across 17 states and union territories in
India. The company provides integrated turn-key construction services in the
industrial, commercial, infrastructure and residential sectors of the
construction industry. The company's integrated turn-key construction services
include a range of
(i) construction services
such as construction design, engineering, procurement, construction and project
management and
(ii) construction allied
services such as mechanical and electrical ("M&E"), plumbing,
fire-fighting, heating, ventilation and air conditioning, interior fit-out
services and glazing solutions.
The company provides these
services either directly, through the Subsidiary, Consolidated Interiors
Limited ("CIL") or in certain cases through third parties.
Since completing its first
project, a temple in Tamil Nadu in the year 1998, the Company has executed 334
projects, comprising of 104 industrial projects, 172 commercial projects, 14
infrastructure projects and 44 residential projects across 14 states and union
territories in India. The built up area of the projects constructed by the
Company aggregates approximately 19.0 million sq.ft. comprising of 3.84 million
sq.ft. in the industrial sector, 12.680 million sq.ft. in the commercial sector
and 2.48 million sq.ft. in the residential sector. The company's projects
include factories, residential and commercial buildings, hospitals, hotels,
power plants and structures in the infrastructure sector such as water tanks,
water supply schemes and bridges. The company has regional offices in Chennai,
Bangalore, Hyderabad, Delhi, Pune and Kolkata.
As of March 31, 2007 The
company is executing 118 projects across various states in India, the total
value of the order book is Rs. 17,692.62 million. These projects include
industrial structures, IT parks, commercial buildings, airport terminal
buildings, hotel, hospitals and educational institutions.
As of March 31, 2007, out
of the 453 orders received by The Company so far, 167 have been placed by
clients to whom. The company has executed projects in the past.
The company provides
services in four sectors namely, industrial, commercial, infrastructure and
residential.
Industrial projects include factory buildings and related facilities for
manufacturers in textile and garments, pharmaceutical, sugar, automobile,
engineering sectors, FMCG, leather, electrical and electronics, cement, telecom,
paper and newsprint, power transformers, paints and chemicals, glass and
bottling sectors.
Commercial projects include
buildings for IT/ITES sectors, office spaces, hotels, hospital buildings,
retail malls, multiplexes, entertainment facilities, auditoria, educational
buildings, facilities for charitable institutions and other special purpose
buildings like marriage halls and clubs.
Infrastructure projects
include airport terminals, power generation facilities, water supply schemes including
overhead water tanks and water distribution infrastructure and bridges covering
river over bridges and railway over bridges.
Residential projects
include housing projects, multi-storey residential complexes and residential
blocks.
As of March 31, 2007, The
company have over 2,000 full-time employees, of which approximately 1,260, or
approximately 63%, are qualified engineers or diploma holders, and of which
1,560 or approximately 78%, are employed at various project sites, while the
balance are employed at corporate office and regional offices.
Awards and recognitions
During the year the Company
was bestowed with the "Par Excellence" award from the Builders
Association of India . The company was proud to have been associated in the
construction of 1.8 million square feet Olympia Tech Park at Chennai for
Khivraj Tech Park Limited which has become a signature building and has been
awarded the World's Largest Green Building by LEED, USA.
OPERATIONS
Concentric Integration Initiatives and Integrated Construction Services
The company has adopted a
concentric integration initiative to provide Integrated Construction Solutions
to the clients. This initiative is focused on developing or otherwise obtaining
certain key competencies and in-house resources to deliver the services at
various stages in a project ranging from its conceptualization to its
completion. The company's scheme of concentric integration includes obtaining
the infrastructure and ability to provide services in ancillary and core construction
activities including software based design and detailing, interiors contracting
services, mechanical, electrical, plumbing and air conditioning design and the
ability to provide building products for construction services.
The following is a graphical
representation of the Concentric Integration initiative:
a. Mechanical and Electrical Division
M&E Division is
primarily responsible for the management and execution of electrical,
mechanical, plumbing, heating, ventilation and air-conditioning works at
project locations. This division provides its services for the buildings
constructed by The Company & is also contemplating to provide services
independently.
This division also provides
consultancy and execution services for various contract works. These services
are typically provided at a fixed rate per square foot. In addition to
providing and implementing electrical, mechanical, plumbing and
air-conditioning works, the M&E division also provides design, estimation
and procurement services.
With a view to improve the
range of offering provided by this division, The company has initiated the
provision of services from this division for infrastructure projects in the
power transmission and airport sectors. This division has pre-qualified and
tendered for the development of power transmission infrastructure including a
220 KV substation in Karnataka.
With the objective of
developing the ability to provide services in this sector, The company has
obtained an ESA license from the government of Tamil Nadu. M&E division is
also engaged in providing services at the Chennai, Thiruchirapalli and
Thiruvananthapuram airports.
b. Consolidated Interiors Limited (CIL)
CIL, subsidiary of the
company is engaged in the provision of interior contracting and fit out services
for own projects and to a range of third party public and private sector
clients. It was formed as a result of a goodwill agreement entered into between
the Company and Trendtech CDAC, an entity engaged in providing interior
contracting services.
The core services provided
by CIL include the manufacture and assembly of wood and wood based products
including doors, windows, flooring, ceilings, panelling and custom built
furniture for commercial and residential use.
While CIL does possess an
in house design capability, it typically engages in the execution of interior
design schemes and production specific drawings received from clients and third
party designers. The company proposes to strengthen its in house design
capability and develop a dedicated interior design team within CIL with the
objective of providing integrated design and execution services in the
interiors space.
CIL typically operates from
the project sites and engages in the on site fabrication and installation of
interiors. This subsidiary is proposing to carry out the above fabrication
operations at a dedicated factory for which it is currently in the process of
identifying land. The company has also identified the equipment for its
interiors factory.
c. Building Products Division
Building Products Division
of the company consists of batching plant for production of ready mixed
concrete and manufacturing facility for production of building blocks. This
division has 12 batching plants engaged in the production of various grades of
ready mixed concrete at various locations in India. The batching plants may be
relocated at various project locations depending on demand and are operating in
locations in Tamil Nadu, Karnataka, Andhra Pradesh, Maharashtra and Chandigarh.
The chief raw materials for
the building products division are cement, aggregates, sand and water all of
which are sourced locally. This division produces ready mixed concrete for own
in house consumption and also, and surplus is sold to third parties at
prevailing market rates.
In order to diversify the
range of offerings provided by this division, The company has established an
in-house capability to produce building blocks that comprises of solid and
hollow concrete blocks at a dedicated concrete products facility. This division
has commenced test production and upon becoming fully operational, will have
the capacity to produce 10,000 solid or hollow blocks per day.
This division has been
established with the objective of ensuring that raw materials for the projects
are of a suitable quality and strength and to ensure a consistent and regular
source of supply for ready mixed concrete and building blocks.
For the Fiscal 2007, their
RMC plants have supplied 0.450 million cubic meters of RMC including 0.330
million cubic meters of ready mixed concrete for in-house requirements and 0.12
million cubic meters of RMC to third parties generating a revenue of Rs.268.000
million.
d. Information Technology Department (Ugasoft)
The company has in-house
information technology department "Ugasoft" which is engaged in the
design, development, implementation and management of the information
technology infrastructure including in-house ERP software. ERP software of the
company was designed, developed and built by this division. It has been organically
developed and integrated over a period of ten years based on an analysis of
routines and procedures followed by each of the business functions during the
course of the operations. Beginning with a module for the finance and
accounting functions of the company, the software has expanded to include a
technical module for the operations functions, a module governing the project
implementation functions, an SCM module governing the procurement and supply
chain functions, and a module for human resources and payroll management.
The above process of
development has resulted in a very close integration between the in house ERP
and the day to day business operations and procedures, as a result of which the
company is able to track and manage its operations on a real time basis.
Central server running the ERP software is located at Vadapalani Chennai. The
Company's registered and regional offices are connected to the central server
through dedicated leased line links and broadband links.
Technical infrastructure of
the company provides for centralized, redundant back up facilities which are
based in a separate disaster recovery centre located in Mylapore, Chennai.
The Company is in the process of further developing and packaging in house ERP software
for the purposes of marketing the same as packaged software to third parties.
e. Software Design Division (Yuga Design)
The company has an in house
software design division "Yuga Design" which provides for integrated
software based engineering design services to a variety of domestic and
international clients including large engineering companies and to prominent
architects.
Yuga Designs services
involve the development of detailed designs, drawings and estimates from
concepts and plans which are provided to the company by its clients. Upon
receiving concept drawings and plans from the clients, Yuga Design produces a
design basis report which records client needs and specifications based on
various inputs including the building codes and construction specifications
which would be applicable to the structure being designed. Upon approval of the
design basis report, Yuga Design engages in the production of detailed designs,
drawings and estimates using commercially available design software in conjunction
with custom built, proprietary and client specific services.
Yuga design has unique
expertise in the use of steel software and has produced in house design
templates compliant various design standards including AISE, BS and Australian
code. Yuga Design is currently proposing to expand its offering to include a
structural steel monitoring system which will permit it to provide design,
detailing phase and the fabricating services for reinforced structures.
f. Opportunities in Glazing Solutions
To date The company has
been providing glazing solutions as part of its turn-key construction services
to various clients through third party service providers. In order to further
its scheme of concentric integration the company is in the process of
incorporating a new subsidiary with the object of providing glazing solutions.
FINANCIALS
REVENUES
Contract
revenue of the company consists of revenue from engineering, procurement and
construction services provided to their clients and revenues from their
construction allied services including revenues from sales of ready mixed
concrete by their building products division and revenue arising from design
charges charged by the design division as well as revenues from increase or
decrease of contract work in progress.
The company has
other additional sources of income, such as (i) interest on term deposits and
securities, (ii) dividends from long term investments and (iii) profits on the
sale of investments and fixed assets. The table below provides a breakdown of
their total income in the Fiscal years 2007 and 2006.
Results of Operations:
Due to the nature of
projects undertaken by the company, their completion schedules, the nature of
expenditure involved in a particular project, the specific terms of the
contract, including payment terms, and the other factors that affect the income
and expenditures on specific projects, the results of operations may vary from
period to period.
The results for the Fiscal
year ended March 31, 2007 is compared with Fiscal year ended March 31,
2006.
During the twelve-month
period ended March 31, 2007, The Company was engaged in and commenced work on a
number of significant projects, including construction of integrated medical
campus consisting of hospital, medical college and hostel facilities at
Puducherry, construction of industrial facilities on a turnkey basis for a
Telecom SEZ near Chennai, construction of hostel facilities at Mysore including
M & E and Interior services for Infosys Technologies Limited, construction
of IT SEZ near Chennai for Hexaware Technologies Limited, construction of New
Terminal building at Trichy Airport.
1. Income
Total income increased by
Rs. 4282.580 million, or 100.42%, from Rs. 4264.540 million in Fiscal 2006 to
Rs.8547.120 million in Fiscal 2007. This was primarily due to increased
contract revenue and other income.
a. Contract revenue
The contract revenue
increased by Rs. 4249.250 million, or 100.04%, from 4247.570 million in Fiscal
2006 to Rs.8496.820 million in Fiscal 2007. This was primarily due to the
buoyancy noticed in the manufacturing and services sector which is reflected in
the growth in business and order inflow under industrial and commercial sectors
of the business coupled with the additional investments noticed in the
infrastructure sector. Further the additional impetus for establishing SEZ's
has also resulted in a spurt in construction activities. The company was able
to capitalise on the above opportunities and win large value contracts by
reason of its meeting the requisite prequalification criteria to bid for and
execute such contracts.
b. Other Income
The other income increased
by Rs. 33.330 million, or 196.41%, from Rs. 16.970 million in Fiscal 2006 to
Rs. 50.300 million in Fiscal 2007. This was primarily due to increase in interest
income arising out of higher amount of monies placed in interest bearing
deposits for margin money with the Banks and interest received from deposits
made out of monies received through private placement of equity shares till
they were utilised.
Expenditure
The expenditure
increased by Rs. 3953.530 million, or 99.48%, from Rs.3974.110 million in
Fiscal 2006 to Rs. 7927.640 million in Fiscal 2007.
Fixed Assets
Land – Freehold,
Buildings, Plant & Machinery, Furniture & Fixtures, Office Equipments and
Vehicles.
Form 8
|
Name of the company |
CONSOLIDATED
CONSTRUCTION CONSORTIUM LIMITED |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Presented By |
Ms. Lakshmi Jayaraman, Company Secretary |
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|
1) Date and description of instrument creating the change |
a. Agreement of hypothecation of goods and assets – form C – 2 dated 10.10.2003 b. Agreement of Loan for overall limit Form C – 1 dated 10.10.2003 c. Deed of Guarantee for overall limit Form C – 4 dated 10.10.2003 d. Letter regarding grant of individual limits form C – 5 dated 10.10.2003 e. Letter creating equitable mortgage by way of deposit of title deeds of immovable properties dated 10.10.2003 |
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|
2) Amount secured by the charge/amount owing on the securities of charge |
Totalling to Rs. 150.000 millions |
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|
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
1. A first charge by way of hypothecation, paripassu with order participating Bankers namely Union Bank of India, Bank of Baroda, ICICI Bank Limited on progress, moneys receivable by way of Book debts, sundry debtors and other monies due both present and future 2. Equitable mortgage of the following properties to held on security on pari – passu terms between the working capital Loan Bankers : a. Land at Unnammanchey at survey no. 433/1 433/3 433/4 433/5 434/1 434/2 434/1C 434/1B 434/1 434/1E 434/2E 434/1G 440/1 440/4 440/2 and 440/3 admeasuring 7.16 acres b. Land at Nedunkundram Village with survey No. 114/1A, 11/4B, 10/3, 9/3B, 10/4B and 10/3 admeasuring 1.34 acres and lands with survey nos. 9/7A, 10/1A, 10/1B, 11/6A, 9/6, 102B, 9/5-O, 10/2A and 11/5-O admeasuring 4.20 acres c. Landed Property situated at Giddenahalli, Attibele, Hubli, Anetal Taluk with Survey No. 10, 11 and 17 admeasuring 1, 42, 113 sq. ft. |
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|
4) Gist of the terms and conditions and extent and operation of the charge. |
Loan sanctioned against the equitable mortgage of land and buildings as mentioned above along with hypothecation of book debts and machineries of the company with commercial interest as may be applicable from time to time based on the rating |
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|
5) Name and Address and description of the person entitled to the charge. |
State Bank of India M. V. J. Towers, No. 177/1, Poonamallee High Road, Kilpauk, Chennai – 600010 |
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|
6) Date and brief description of instrument modifying the charge |
Letter evidencing creation of equitable mortgage on the property of the company situated at Sengundram Village, Chengalpattu Taluk, Kancheepuram, District dated 03.11.2005 |
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|
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
There is no change / revision in the credit facilities availed from the bank and all the other terms and conditions remains the same. In addition to hypothecation of current assets and the properties already mortgaged with the bank and registered with the RoC, Chennai, dated 20.09.2005, equitable mortgage has been created on the property situated at Sengundram Village, Chengalpattu Taluk, Kancheepuram District comprised in Survey Nos. 232/1A1, 232/2A1 and 232/2B admeasuring 33, 82 and 78 cents respectively Existing equitable mortgage on the properties are listed herein below :
Build up Area sq. ft. Basement Floor 1920 Ground Floor 2260 Mezzanine Floor 2260 I Floor 2560 Total 9000 In all measuring
9000 sq. ft.
In all measuring 4.20 acres 3. Landed property situated at No. 12, Unnamanchery village Kattankulathur Panchayat Union, Chengalpet Tk, Kancheepuram Dt admeasuring
Landed property at Nedungundram Village, Tambaram Tk, Kancheepuram Dt admeasuring
5. Landed property at Giddenhalli, Attibele Hubli, Anekal Taluk at Bangalore admeasuring
In all measuring 3 acres and 10.5 guntas 6. Land at Thirukatchur Village, Chengelput with survey no. 550 now denoted as 549/1, 550/1 measuring 0.86 cents and 2.00 acres respectively all the above properties belonging to the company, along with other existing properties belonging to the company as mentioned in point [3] above shall rank Paripassu among the two bankers State Bank of India and Union Bank of India |
|
Name of the company |
CONSOLIDATED CONSTRUCTION CONSORTIUM LIMITED |
||||||||
|
Presented By |
Ms. Lakshmi Jayaraman, Company Secretary |
||||||||
|
1) Date and description of instrument creating the change |
a. Agreement of hypothecation of goods b. Agreement of hypothecation of goods All agreements dated 18.11.2005 and relates to one and the same charge |
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|
2) Amount secured by the charge/amount owing on the securities of charge |
Totalling to Rs. 235.000 millions |
||||||||
|
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
A first charge by way of hypothecation, paripassu with order participating Bankers namely Union Bank of India, Bank of Baroda, ICICI Bank Limited on progress, moneys receivable by way of Book debts, sundry debtors and other monies due both present and future |
||||||||
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Cash Credit Rate of Interest – 0.50% over BPLR with monthly rests Margin – 25% |
||||||||
|
5) Name and Address and description of the person entitled to the charge. |
Bank of Baroda No. 15, Gopalakrishnan Street, T. Nagar, Chennai – 600017 |
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|
6) Date and brief description of instrument modifying the charge |
Nil |
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|
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Nil |
|
Name of the company |
CONSOLIDATED CONSTRUCTION CONSORTIUM LIMITED |
||||||||
|
Presented By |
Mr. S. Sivramakrishnan – Managing Director |
||||||||
|
1) Date and description of instrument creating the change |
Credit facility agreement dated 10.10.2003 Deed of Hypothecation agreement dated 10.10.2003 General Counter Guarantee and indemnity dated 10.10.2003 Personal Guarantee given by principal directors dated 10.10.2003 |
||||||||
|
2) Amount secured by the charge/amount owing on the securities of charge |
Totalling to Rs. 119.000 millions |
||||||||
|
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
A first charge by way of hypothecation, paripassu with order participating Bankers namely Union Bank of India, Bank of Baroda, ICICI Bank Limited on progress, moneys receivable by way of Book debts, sundry debtors and other monies due both present and future |
||||||||
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Loan sanctioned against the equitable mortgage – to be created for land and buildings belonging to the company and against the book debts, stock of inventory, sundry debtors and other monies due with commercial interest as may be applicable from time to time based on the rating. |
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|
5) Name and Address and description of the person entitled to the charge. |
ICICI Bank Limited Nungambaakam Branch, Chennai – 600034 |
||||||||
|
6) Date and brief description of instrument modifying the charge |
Not Applicable |
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|
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Not Applicable |
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 42.40 |
|
UK Pound |
1 |
Rs. 82.57 |
|
Euro |
1 |
Rs. 65.84 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|