Business
information report
1. Summary Information
|
|
|
Country |
India |
|
Company Name |
CONSOLIDATED CONSTRUCTION CONSORTIUM LIMITED |
Principal Name 1 |
Mr. S.
Sivaramakrishnan |
|
Status |
Satisfactory |
Principal Name 2 |
Mr. R. Sarabeswar |
|
|
|
Registration # |
|
|
Street Address |
Old No. 3, New
No. 5, 2nd Link Street, Only C.I.T. Colony, Mylapore, Chennai –
600 004, Tamilnadu |
||
|
Established Date |
11.07.1997 |
SIC Code |
-- |
|
Telephone# |
91-44-24661083 /
84 / 23454500
(100 Lines) / 24990225 |
Business Style 1 |
The company is
engaged in the business of Civil Construction |
|
Fax # |
91-44-24990225 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
-- |
|
|
# of employees |
4000
Approximately |
Product Name 2 |
-- |
|
Paid up capital |
Rs.369,554,000 |
Product Name 3 |
-- |
|
Shareholders |
Individuals / Hindu Undivided Family 50.77% |
Banking |
State Bank of India
|
|
Public Limited Corp. |
-- |
Business Period |
14 years |
|
IPO |
-- |
International Ins. |
- |
|
Public |
-- |
Rating |
Ba (45) |
|
Related
Company |
|||
|
Relation - Joint Ventures |
Country
|
Company
Name |
Yuga Builders |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
13,096,966,000 |
Current Liabilities |
5,343,223,000 |
|
Inventories |
0 |
Long-term Liabilities |
3,245,837,000 |
|
Fixed Assets |
1,422,537,000 |
Other Liabilities |
566,129,000 |
|
Deferred Assets |
0 |
Total Liabilities |
9,155,189,000 |
|
Invest& other Assets |
475,976,000 |
Retained Earnings |
5,470,736,000 |
|
|
0 |
Net Worth |
5,840,290,000 |
|
Total Assets |
14,995,479,000 |
Total Liab. & Equity |
14,995,479,000 |
|
Total Assets (Previous Year) |
12,099,817,000 |
|
|
|
P/L Statement as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
19,500,434,000 |
Net Profit |
935,611,000 |
|
Sales(Previous yr) |
17,558,613,000 |
Net Profit(Prev.yr) |
690,562,000 |
MIRA
INFORM REPORT
|
Report Date : |
09.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
CONSOLIDATED CONSTRUCTION CONSORTIUM LIMITED |
|
|
|
|
Registered Office : |
Old No. 3, New
No. 5, 2nd |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2010 |
|
|
|
|
Date of Incorporation : |
11.07.1997 |
|
|
|
|
Com. Reg. No.: |
18-38610 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.369.554 millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L45201TN1997PLC038610 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
CHECO2252F |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACC4214B |
|
|
|
|
Legal Form : |
Public limited liability company. The shares of the company
are listed on Stock Exchanges. |
|
|
|
|
Line of Business : |
The company is
engaged in the business of Civil Construction. |
|
|
|
|
No. of Employees : |
4000
Approximately |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 23361160 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an
established company having satisfactory track. Trade relations are reported as
fair. Business is active. Payments are reported to be usually correct and as
per commitments. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered/Corporate Office : |
Old No. 3, New
No. 5, 2nd Link Street, Only C.I.T. Colony, Mylapore, Chennai –
600 004, Tamilnadu, India |
|
Tel. No.: |
91-44-24661083 /
84 / 23454500
(100 Lines) / 24990225 |
|
Fax No.: |
91-44-24990225 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Overseas Office : |
Majid Saif Ahmed
Contracting Company LLC (JV) , P.O.Box: 62745, Sharjah, UAE. Tele-fax :
00971-6-5750902, |
|
|
|
|
Regional
Office : |
Chennai
Fax: 91-44-2365
2906 / 07 #B-16, Vikrampuri
Colony, Vikrampuri, Secunderabad - 500 009, Tele-Facsimile :
91-40-2784 2668,
Flat No.101,
Elegant Residency, Plot No,3, Fax : 91-20-2650
1373. # 103, D/1 Second
Floor, Block F, New Alipore, Kolkata - 700 053, West TC: 13/180,
"THULASI BHAVAN", Nalumukku, Pettah, #173, 3rd Main, 4th
Phase, Dollars Layout, Tele-Facsimile :
91-80-2678 7791, 11 Surdhara Bunglows, Near |
DIRECTORS
AS ON 31.03.2010
|
Name : |
Mr. R. Sarabeswar |
|
Designation : |
Chairman and
Chief Executive Director |
|
Address : |
1A, |
|
Date of Birth/Age : |
04.05.1954 |
|
Qualification : |
B.E., MBA |
|
Experience : |
30 Years |
|
Date of Appointment : |
19.10.1999 |
|
|
|
|
Name : |
Mr. S.
Sivaramakrishnan |
|
Designation : |
Managing Director |
|
Address : |
27A, Railway
Colony, |
|
Date of Birth/Age : |
15.02.1954 |
|
Qualification : |
B.E., PG in
Structural Engineering and MBA |
|
Experience : |
30 Years |
|
Date of Appointment : |
11.07.1997 |
|
|
|
|
Name : |
Mr. P. Venkatesh |
|
Designation : |
Director |
|
Address : |
D1 HIG Flat, |
|
Date of Birth/Age : |
13.05.1962 |
|
Date of Appointment : |
22.08.1997 |
|
|
|
|
Name : |
Mr. V. G.
Janarthanam |
|
Designation : |
Director
(Operation) |
|
Address : |
AL – 33, |
|
Date of Birth/Age : |
12.04.1956 |
|
Qualification : |
B.E. |
|
Experience : |
25 Years |
|
Date of Appointment : |
01.07.2002 |
|
|
|
|
Name : |
Mr. K. Kannan |
|
Designation : |
Director |
|
Address : |
576 B, Mahesh, |
|
Date of Birth/Age : |
17.11.1939 |
|
Qualification : |
B.Com, FCA, AICWA
|
|
Date of Appointment : |
29.10.2003 |
|
Area of Expertise : |
Having vast knowledge and experience in the field of
Banking, administration and Finance. He is a Member of Takover panel of SEBI
and former Chairman and Managing Director of Bank of Baroda. |
|
Other Directorship : |
· Kesar Enterprises Limited ·
Advani Hotels and Resorts ( · Advani Pleasure Cruise Company Private Limited · Patel Engineering Limited · Indo-Tech Transformers Limited ·
· Prithvi Asset Reconstruction Company Limited ·
Shubhalakshmi Polyester Limited (w.e.f.
January 2008) |
|
|
|
|
Name : |
Mr. P. K.
Arvindan |
|
Designation : |
Director |
|
Qualification : |
Ph.D, M.Sc., B.Tech. |
|
Date of Appointment : |
29.10.2007 |
|
Area of Expertise : |
Technical Expertise in Design Engineering |
|
|
|
|
Name : |
Mr. S. N. Rajesh |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P. K.
Shridharan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Jayaram
Rangan |
|
Designation : |
Director |
|
Qualification : |
B.E. |
|
Date of Appointment : |
29.10.2007 |
|
Area of Expertise : |
He has expert
knowledge in Engineering and Project Administration. |
|
|
|
|
Name : |
Mr. K E C
Rajakumar |
|
Designation : |
Nominee Director (UTI
Venture Funds Management Company Private Limited) |
KEY EXECUTIVES
|
Name : |
Mr. N.
Balachandran |
|
Designation : |
Company Secretary
in Practice |
|
Address : |
C/2, Yamuna
Flats, |
|
|
|
|
Name : |
Mr. M. V. M. Sundar |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. T R Seetharaman |
|
Designation : |
Chief Financial Officer |
|
Date of Birth/Age : |
49 Years |
|
Qualification : |
B.Com, ACA |
|
Experience : |
25 Years |
|
Date of Appointment : |
19.08.1997 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2011
|
Category of
Shareholder |
Total No. of
Shares |
% of total No.
of Shares |
|
|
|
|
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
93,819,636 |
50.77 |
|
|
93,819,636 |
50.77 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
93,819,636 |
50.77 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
14,779,841 |
8.00 |
|
|
105,500 |
0.06 |
|
|
18,806,035 |
10.18 |
|
|
33,691,376 |
18.23 |
|
|
|
|
|
|
10,824,461 |
5.86 |
|
|
|
|
|
|
3,591,858 |
1.94 |
|
|
19,802,699 |
10.72 |
|
|
23,047,195 |
12.47 |
|
|
7,126,722 |
3.86 |
|
|
203,055 |
0.11 |
|
|
15,608,530 |
8.45 |
|
|
108,888 |
0.06 |
|
|
57,266,213 |
30.99 |
|
Total Public
shareholding (B) |
90,957,589 |
49.23 |
|
Total (A)+(B) |
184,777,225 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total
(A)+(B)+(C) |
184,777,225 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
The company is
engaged in the business of Civil Construction. |
GENERAL INFORMATION
|
No. of Employees : |
4000
Approximately |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Bankers : |
·
State
Bank of Leather International Branch, Chennai – 600010, ·
Union
Bank of Industrial Finance Branch, Chennai – 600034, ·
Federal
Bank Limited Chennai – 600002, ·
ICICI
Bank Limited ·
Karur
Vysya Bank Limited Mylapore Branch, Chennai – 600004, ·
Bank
of T. Nagar Branch, Chennai – 600017, |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Facilities : |
Notes 1.
Working Capital Loans from Banks : Secured by
hypothecation of stocks, book debts and Fixed Assets of the company on pari
passu charge with the banks State Bank of 2.
All the above secured loans are duly secured by
equitable mortgage of the company’s specified immovable properties, by means
of deposit of title deeds of such properties concerned. 3.
Term Loan include installments payable within one
year Rs. 58.207 millions. . |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Murali Associates Chartered
Accountants |
|
Address : |
G – 1, Kumar’s Krishna,
No. 56, II Main Road, R. A. Puram, Chennai – 600028, Tamilnadu, India |
|
|
|
|
Associates : |
|
|
|
|
|
Subsidiaries : |
|
|
|
|
|
Step-down Subsidiary : |
|
|
|
|
|
Joint Ventures : |
|
|
|
|
|
Partnership Firms : |
|
CAPITAL STRUCTURE
As on 31.03.2010
Authorised
Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
225000000 |
Equity Shares |
Rs.2/- each |
Rs. 450.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
184777225 |
Equity Shares |
Rs.2/- each |
Rs.369.554 millions |
Of the above
1.
129345945 equity shares of Rs.2 each issued as bonus
shares by capitalization out of the General Reserve and Share Premium.
2.
500000 equity shares of Rs.2 each issued pursuant to Employee Stock Option Plan
(ESOP)
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
369.554 |
369.554 |
369.554 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
5470.736 |
4721.360 |
4138.887 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
5840.290 |
5090.914 |
4508.441 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3245.837 |
1879.457 |
1232.237 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
3245.837 |
1879.457 |
1232.237 |
|
|
DEFERRED TAX LIABILITIES |
566.129 |
421.652 |
285.831 |
|
|
|
|
|
|
|
|
TOTAL |
9652.256 |
7392.023 |
6026.509 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1422.537 |
1273.200 |
745.460 |
|
|
Capital work-in-progress |
126.877 |
30.685 |
0.921 |
|
|
|
|
|
|
|
|
INVESTMENT |
349.099 |
807.461 |
1219.284 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
0.000
|
0.000
|
|
|
Sundry Debtors |
118.002
|
71.296
|
125.283
|
|
|
Cash & Bank Balances |
1681.853
|
1084.573
|
869.821
|
|
|
Other Current Assets |
9660.924
|
7580.083
|
6106.197
|
|
|
Loans & Advances |
1636.187
|
1146.110
|
817.794
|
|
Total
Current Assets |
13096.966
|
9882.063
|
7919.095 |
|
|
Less : CURRENT LIABILITIES
& PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
5235.133
|
4599.704
|
3888.246
|
|
|
Provisions |
108.090
|
108.090
|
108.090
|
|
Total
Current Liabilities |
5343.223
|
4707.794
|
3996.336
|
|
|
Net Current Assets |
7753.743
|
5174.268
|
3922.759
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
106.409 |
138.085 |
|
|
|
|
|
|
|
|
TOTAL |
9652.256 |
7392.023 |
6026.509 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
19500.434 |
17558.613 |
14480.906 |
|
|
|
Other Income |
63.373 |
90.669 |
78.545 |
|
|
|
TOTAL (A) |
19563.807 |
17649.282 |
14559.451 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee Cost |
1052.737 |
996.528 |
710.352 |
|
|
|
Operating Expenses |
15336.441 |
14369.963 |
11801.329 |
|
|
|
Sales and Administration Expenses |
1281.290 |
1037.794 |
609.182 |
|
|
|
TOTAL (B) |
17670.468 |
16404.285 |
13120.863 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1893.339 |
1244.997 |
1438.588 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
312.796 |
112.388 |
71.955 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1580.543 |
1132.609 |
1366.633 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
99.797 |
82.446 |
53.041 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1480.746 |
1050.163 |
1313.592 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
545.135 |
359.601 |
442.680 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
935.611 |
690.562 |
870.912 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1629.188 |
1236.983 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
256.500 |
192.800 |
NA |
|
|
|
Dividend |
92.388 |
92.388 |
NA |
|
|
|
Tax on Dividend |
15.701 |
15.701 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
2200.210 |
1626.656 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
NA |
18.670 |
2.650 |
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
5.06 |
18.70 |
23.57 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
5079.580 |
4895.210 |
4962.220 |
6429.560 |
|
Total Expenditure |
4659.500 |
4512.970 |
4478.800 |
6204.940 |
|
PBIDT (Excl OI) |
420.080 |
382.240 |
483.420 |
224.620 |
|
Other Income |
13.790 |
13.390 |
14.440 |
8.860 |
|
Operating Profit |
433.870 |
395.640 |
497.860 |
233.470 |
|
Interest |
105.470 |
121.100 |
126.240 |
120.210 |
|
Exceptional Items |
0.000 |
7.000 |
0.000 |
0.000 |
|
PBDT |
328.400 |
281.540 |
371.620 |
113.270 |
|
Depreciation |
28.670 |
31.360 |
33.690 |
34.800 |
|
Profit Before Tax |
299.730 |
250.190 |
337.930 |
78.470 |
|
Tax |
111.920 |
85.430 |
115.920 |
33.430 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
187.810 |
164.760 |
222.010 |
45.050 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
4.78 |
3.91 |
5.98
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.59 |
5.98 |
9.07
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.19 |
9.41 |
15.16
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.25 |
0.21 |
0.29
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.56 |
1.29 |
1.16
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.45 |
2.10 |
1.98
|
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject is an ISO 9001:2000 certified company which provides integrated turn-key
construction services in the industrial, commercial, infrastructure and
residential sectors of the construction industry. They also provide services
which include construction design, engineering, procurement, construction and
project management. The company is having a significant presence in
FINANCIAL RESULTS
The Company has
achieved a sales and other income (standalone) of Rs.19563.80 Millions compared
to Rs. 17649.28 Million achieved during the previous year registering an
increase of about 11%. The PAT variance from the previous year is 35%. The
consolidated turnover of the company including its subsidiaries and Joint
Ventures amounts to Rs.19759.45 Million and the profit after tax on
consolidated basis comes to Rs.915.92 Million. There is a reduction in the
profitability on a consolidated basis which is mainly due to the fact that one
of the subsidiaries, viz. CCCL Infrastructure Ltd., is yet to start its
operations.
MANAGEMENT
The Board focuses
on improvement in every area of operation with transparency in its activities, and
emphasis on quality outputs. It ensures that the principles of corporate
governance are adhered to strictly. There were no changes in the composition of
the Board during the current year. Two of the directors are retiring in the
ensuing Annual General Meeting and are eligible for reappointment.
CORPORATE SOCIAL RESPONSIBILITY
The Board also emphasizes on corporate social responsibility and towards this,
39th National Safety Day was celebrated on 4th March 2010 at various project
sites. Safety awareness demonstration was conducted at Dhanalakshmi Srinivasan
Medical College Site at Perambalur and Safety Pledge was taken at
The Board wishes
to place on record that under Sarva Shiksha Abhiyan Scheme (SSA), an
alternative Education Centre was started in Mahindra Research Valley Project at
Chengalpet. Under this Scheme, free distribution of uniforms, school bags, note
books, dictionary, atlas and pen boxes were made to all the children studying
in this centre. Similar centres are now being run at project sites at MRV
Chennai and
They can also
recall the platinum rated green building award by USGB Council for Godrej and
Boyce CII Green Business Centre, Hyderabad built by CCCL in the past; the
building was awarded 56 points out of 69 which is the highest awarded to any
building in the world. The company has in place a system to inform the Board
about the risk assessment and the minimization procedure along with periodical
review to ensure Management control and their proper definition.
SUBSIDIARIES
CCCL Infrastructure
Limited:
The company has already acquired 523 acres of land contiguously near
The company have appointed M/s.Ernst and Young for preparing a project
report on the SEZ.
The company has applied for registration of its Logo and Trade Mark with
the Trade Marks Registry during the current financial year. The paid up capital
is Rs.94.20 Millions after capitalizing unsecured loans by the company to an
extent of Rs.75.00 Millions. Since operations are yet to commence, they are not
reporting the income generated. The company will be investing about Rs.500-600
Millions for development of SEZ, in the next couple of years.
Business alliance
with Innotech Construction Co. LLC,
The Company has entered into a MoU with M/s.Innotech Construction Co.
LLC,
continuation of its activities in the gulf in the near future.
MANAGEMENT'S
DISCUSSION AND ANALYSIS REPORT
THE ECONOMY: There was a significant slowdown in the growth rate in the second half of 2008-09, following the financial crisis that began in the industrialized nations in 2007 and spread to the real economy across the world. The growth rate of the gross domestic product (GDP) in 2008-09 was 6.7 per cent, with growth in the last two quarters hovering around 6 per cent. There was apprehension that this trend would persist for some time, as the full impact of the economic slowdown in the developed world worked through the system. It was also a year of reckoning for the policymakers, who had taken a calculated risk in providing substantial fiscal expansion to counter the negative fallout of the global slowdown. Inevitably, India The real turnaround came in the second quarter of 2009-10 when the economy grew by 7.9 per cent. As per the advance estimates of GDP for 2009-10, released by the Central Statistical Organisation (CSO), the economy is expected to grow at 7.2 per cent in 2009-10, with the industrial and the service sectors growing at 8.2 and 8.7 per cent respectively. This recovery has come about despite a decline of 0.2 per cent in agricultural output, which was the consequence of sub-normal monsoons. It foreshadows renewed momentum in the manufacturing sector, which had seen continuous decline in the growth rate for almost eight quarters since 2007-08. Indeed, manufacturing growth has more than doubled from 3.2 per cent in 2008-09 to 8.9 per cent in 2009-10. And, there has been a recovery in the growth rate of gross fixed capital formation, which had declined significantly in 2008-09 as per the revised National Accounts Statistics (NAS). While the growth rates of private and Government final consumption expenditure have dipped in private consumption demand, there has been a pick-up in the growth of private investment demand. There has also been a turnaround in merchandise export growth in November 2009, which has been sustained in December 2009, after a decline nearly twelve continuous months. After the impact of global recession, the government is trying to put the economy back on to the growth path of 9 per cent per annum. INDUSTRY: Opportunities: Construction activities are considered as integral part of country's industry and economy generating employment and enhancing quality of life. In the 11th Plan (2007-2012), the total investment is estimated to be over Rs.14000000 millions in the development of physical infrastructure. The construction industry in India currently has a gross value of output of around Rs.3800000 millions and accounts for nearly 10% of India As per the estimates of Working Group on Construction for the 11th Five Year Plan, the roads, rail, civil aviation, marine transport, power generation, water supply and irrigation sector is going to witness an investment of Rs.14500000 millions. Investments in key industrial sectors are expected to soar up to Rs.6924000 millions over the next five years as compared with Rs.2274000 millions worth of investments made over the past five years. Private placement in roads sector is likely to be in the region of Rs.340000 millions, modernization/upgrading of Highways Rs.2200000 millions, Civil Aviation Rs.400000 million, Ports Rs.500000 millions and power generation Rs.4200000 millions during the 11th Plan period. The resources required to meet the infrastructure deficit is beyond the means of the public sector. Hence, it has now become pertinent to involve private sector through various forms of PPP to execute infrastructure projects. The Planning Commission expects private players to account for about 30 per cent of the total infrastructure projects. Among the infrastructure sectors, electricity, transport and telecommunication are key sectors for raising the overall economic growth rate and sustaining the economy in the long term. The company can actively participate in the proposed investment in infrastructure sectors and the opportunities are very much available for expansion. With foray into airport sector at Chennai and other centers, the company looks forward to participating in similar infra projects apart from urban affordable housing, logistics parks, engineering procurement and construction (EPC) contracts for the under ground stations of the Metro Projects, Balance of plant (BOP) activities in power sector. Power projects that are emerging in HP, UP, MP and Kerala where energy shortfall is felt, interest the company and it will have reasonable share of the projects in the coming years. Due to current slow down in Middle East market, Dubai operations have not looked up and the company is looking for a better module to penetrate the market in due course with appropriate channel of association and participation. INDUSTRY THREATS & CONSTRAINTS: The major constraints faced by the industry are: * Lack of skilled manpower to match the requirements.* High attrition levels of employees in the industry.* Presence of unorganised players.* Cost overruns. The industry now faces shortage of skilled manpower and qualified civil engineers which is due to shifting of focus to other engineering disciplines. Even if recruited, there is the problem of attrition among the qualified engineers which is beyond the control of the management. This aspect is being looked into by the management and all possible steps are being initiated to reduce attrition levels. The cost over runs are being controlled by having stricter vigil on expenditure -both capital and revenue but more importantly, the over runs are due to spurt in raw material prices. In such cases, the company tries to enter into star rated contracts where the cost escalation is passed on to the clients. Company endeavours to deliver on time whereby cost over runs are avoided. It is a fact that the raw material prices have eased a little and we hope this trend to continue with the support from the government. Unorganised players in this industry pose a serious threat to pricing mechanism and also the available margin. This situation could be corrected by adhering to ethics of business and reasonable pricing of projects by the organized players.
CONTINGENT LIABILITIES
a. Bank Guarantees including Letter of
Credit outstanding as on 31.03.2010 – Rs.7210.62 Million (P.Y.Rs.4388.72
Million). This includes Bank Guarantees and Letters of Credit executed by the
company on behalf of Herve Pomerleau International CCCLJointVenture for
Rs.739.20 Million (P.Y. Rs.879.63 Million).
b. The Company has executed Corporate
Guarantees on behalf of its subsidiaries and AOP during the year
i) on behalf of Consolidated Interiors
Limited – Rs. 140.00 Million (P.Y.Rs.140.00 Million)
ii) on behalf of Noble Consolidated Glazings
Limited – Rs.170.00 Million (P.Y. 55.00 Million)
iii) on behalf of
Herve Pomerleau International CCCL Joint Venture – Rs. 4820.00 Million (P.Y.
601.10 Million)
c. Following demands have been raised on the
company by the respective authorities:
i) On account of Sales tax /VAT - Rs.135.93
Million (P.Y. Rs.80.23 Million).
ii) On account of Service Tax –
- Rs.391.52 Million (P.Y.Rs.559.30 Million)
[for the period from April, 2006 – September, 2007].
- Rs. 314.08 Million (P.Y.’ Rs. 4.96
Million) [for March, 2008]
- Rs. 3.16 Million [ for the period from
April 2008 – September 2008].
Based on the legal opinion obtained, the
Company does not feel any liability will arise and hence no provision has been
made in the Accounts.
iii) On account of Income Tax
– Rs. 2.54 Million (P.Y Rs. 2.54 Million) [for
the period from April 2004 – March 2005].
– Rs. 4.88 Million
(P.Y Rs. 4.88 Million) [for the period from April 2005 – March 2006].
FIXED ASSETS
·
Land
– Freehold
·
Buildings
·
Buildings
– Temporary Structures
·
Plant
and Machinery
·
Furniture
and Fixtures
·
Office
Equipments
·
Vehicles
WEB DETAILS
Profile
Subject is an
ISO-certified company with a turnover of around Rs. 18.41 billion. It has a
significant presence in
Thanks to its unique professionalism that embodies a code of ethics, a
committed and farsighted management team and its band of experts in a wide
range of domains, Subject has registered consistent growth over the years, ever
since its inception.
Subject’s services encompass Construction, Engineering, Procurement, and
Project Management. To subject’s credit stand IT Parks, Biotech Parks, Resorts
and Hotels, Commercial, Industrial and Institutional structures and
Infrastructure facilities, Mechanical and Electrical Division (M and E),
Consolidated Interiors Limited (CIL), Building Products Division, Information
Technology Department (Yugasoft), Software Design Division (Yuga Design), Noble
Consolidated Glazing Limited (Glazing Solutions). Further, Subject’s Specialty
projects involving Precast Pre-stressed Structures, Pre-engineered structures
and Shell Structures are remarkable for their innovative and revolutionary application
of technology and expertise.
Subject has time and again stood true to its Vision and
Core Competencies
Construction
The first and foremost step towards delivering the best is to understand the
needs of a customer; more precisely, the specific human needs involved. Once
this understanding is gained, it is an automatic process for subject to put to
work the most effective combination of its resources. Technical and managerial
concepts and practices are so aligned with the requirements of the project that
the end-result is invariably a perfect execution.
The subject team has professionals in all the key areas of construction.
Design
Project Management Services
Execution of Projects
a) Major Housing Complexes
b) Industrial Structures
c) Commercial Complexes
d) Waste water treatment plants
e) Long span Precast Concrete Structures
f) Retrofilling
Execution of Pre-engineered buildings
Subject has every
capability to undertake large turnkey projects. Besides on-site computerized
monitoring, a comprehensive control over all projects through link-up with a
central server at regional center guarantees fluent progress of projects at all
times.
Engineering
Key player and one
among the few in the Country to deliver challenging Engineering
Marvels.Pre-Cast Concrete Structures:
These are long span structures (Span 22 Meters) with roof elements such as
folded plate, Shell etc. These elements are cast in ground and erected using
Gantry/Cranes. These buildings are suitable where internal columns are to be
avoided, and also it gives ventilation, bright lighting and minimizes the
temperature inside. Since its being precast at the ground itself, the quality
of the concrete and the finishes are maintained to high extent. Speedy
construction can be achieved through these types of construction.
Wall panels are the precast side panels, which are cast in yard and erected in
position. These concrete walls have aesthetic grooves and other joinery
provisions to cater the requirements of the buildings. These form finished
walls, which do not require any plastering.
Specialisation
Precast
Pre-stressed Structures
Subject through
its innovative technical know-how in the field of prefabrication, has executed
many precast, pre-stressed concrete structures. Consortium has to its credit
industrial buildings with precast RC roofs of spans of more than 20 meters.
Pre-engineered Steel Structures
Subject is
expanding in the field of pre-engineered steel structures for construction of
large span pre-fabricated steel framed industrial buildings. Consortium can
proudly take credit for executing
Shell Structures
Subject prides itself on having innovatively used ready mix concrete, even for
a complex shell structure.
Turnkey Project
At subject time is of the essence. They deliver the total construction package
well in advance of the stiffest time schedule.
Project Management
With decades of
experience in engineering and project management, the professionals offer
planning and scheduling services to a wide variety of industries.
The Project Management serves the entire range: Initial Project Planning
(Tasks, Resources, Schedule), Task Oversight, Tracking, Reporting and Change
Management.
The Project Management team is headed by a member of the Project Management
Institute, U.S.A, and can offer
Bar Chart preparation
Milestone charts
Review of physical
progress
Bill checking
Weekly site
meetings
Resource Levelling
Mechanical and
Electrical Division
The M and 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 has been providing its services for
projects that we construct, and is proposing to commence the provision of
services for projects which it tenders for 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 improving the range of offering provided by this division, they
have 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, they have obtained an ESA license from the
government of Tamil Nadu. The M and E division is also engaged in providing
services at the Chennai, Thiruchirapalli and Thiruvananthapuram airports. As of
May 25, 2007, the M and E department employed 68 employees including engineers,
supervisors and staff.
Consolidated Interiors Limited (CIL)
The Subsidiary, CIL is engaged in the provision of interior contracting and fit out services for our 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 our Company and Trendtech CDAC, an entity engaged in providing interior contracting services.
The core services provided by Consolidated Interiors Limited 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 Consolidated Interiors Limited 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. They propose to strengthen their in house design
capability and develop a dedicated interior design team within Consolidated
Interiors Limited with the objective of providing integrated design and
execution services in the interiors space.
CIL typically operates from our project sites and engages in the on site
fabrication and installation of interiors. They are proposing to carry out the
above fabrication operations at a dedicated factory for which they are
currently in the process of identifying land. They have also identified the
equipment for our interiors factory and estimate that they will be required to
incur an expenditure of Rs. 57.55 million. The primary raw material for the
interiors division includes timber, wood, plywood, gypsum board, floor titles,
false ceiling panels and work stations, which we source locally and import. As
of May 25, 2007, Consolidated Interiors Limited employed 60 employees of which
38 were engaged in providing services at various project sites. As of March 31,
2007 Consolidated Interiors Limited had a total income of Rs.157.08 million.
Building Products
Division
The Building
Products Division consists of batching plant for production of ready mixed
concrete and manufacturing facility for production of building blocks. They
have 12 batching plants engaged in the production of various grades of ready
mixed concrete at various locations in
Nadu, Karnataka, Andhra Pradesh, Maharashtra and
The chief raw materials for the building products division are cement,
aggregates, sand and water all of which they sourced locally. The building
products division produces ready mixed concrete and building blocks for the 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 the building products division, they have established an in-house capability
to produce building blocks that comprises of solid and hollow concrete blocks
at a dedicated concrete products facility. They have established the building
products division in the outskirts of Chennai. 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.
The building products division has been established by them with the objective
of ensuring that raw materials
for our building projects are of a suitable quality and strength and ensuring a
consistent and regular source
of supply for ready mixed concrete and building blocks. As of May 25, 2007 our
building products division employed 61 employees. For the Fiscal 2007, the RMC
plants have supplied 0.45 million cubic meters of RMC including 0.33 million
cubic meters of ready mixed concrete for our in-house requirements and 0.12
million cubic meters of RMC to third parties generating a revenue of Rs.268.0
million.
Software Designs Department (Yuga Design)
Yuga Design is the
in house software design division which provides 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 it by its clients. Upon
receiving concept drawings and plans from its 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 xsteel 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. Yuga
Design currently employs 11 qualified personnel
Information
Technology Department
The ERP software
was designed, developed and built by the software 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 our business functions
during the course of their operations. Beginning with a module for the finance
and accounting functions, the software has expanded to include a technical
module for the operations functions, a module governing our project
implementation functions, an SCM module governing our 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
our in house ERP and the day to day business operations and procedures, as a
result of which we are able to track and manage the operations on a real time
basis. The central server running the ERP software is located at Vadapalani
Chennai. The registered office and the regional offices are connected to the
central server through dedicated leased line links and broadband links.
The technical infrastructure provides for centralized, redundant back up
facilities which are based in a separate disaster recovery centre located in
Mylapore, Chennai. They intend to further develop and package their in house
ERP software for the purposes of marketing the same to as packaged software to
third parties. Yugasoft currently employs 11 qualified personnel.
Glazing Solutions
To date they have
been providing glazing solutions as part of the turn-key construction services
to various clients through third party service providers. In order to further
the scheme of concentric integration they have begun the process of incorporating
Noble Consolidated Glazings Limited with the object of providing glazing
solutions in-house.
In furtherance of the above objective, they have entered into a Memorandum of
Understanding dated May 23, 2007 with Mr. M. Ramesh Kumar and Mr. A.S. Jaya
Gopi who are partners in the concern M/s Noble Associates which has been
engaged in providing glazing services. Under the MOU, the said Mr. M. Ramesh
Kumar and Mr. A.S. Jaya Gopi have agreed to dissolve their partnership firm M/s
Noble Glazings and take up full time employment with Noble Consolidated
Glazings Limited with effect from May 31, 2007. Mr. M. Ramesh Kumar and Mr.
A.S. Jaya Gopi have also agreed to execute a suitable not compete undertaking
with the Company.
PRESS RELEASE
CCCL bags ONGC Project worth Rs.4310
millions
o To build ONGC’s corporate office -
“Rajiv Gandhi Urja Bhavan” in
o Enters joint venture with Samjung
Tech, to design and build first-of-its kind automated car parking for DMRC
Consolidated Construction Consortium Ltd
(BOM: 532902), an integrated construction
service provider with projects in the industrial, commercial, residential, and
infrastructure space, today announced that it has bagged project worth Rs.
4310 millions from Oil and Natural Gas Corporation Limited (ONGC) to
build its corporate office - “Rajiv Gandhi Urja Bhavan” in Vasant Kunj, New
Delhi.
CCCL has also entered into a Consortium with
Samjung Tech, a Korean electronics company, to design and build
first-of-its kind automated car parking structure for Delhi Metro Rail
Corporation (DMRC) in
o Sewage Treatment Plant at Keshopur
o Water Treatement Plant at Dwarka o IT Park
for DMRC at
o Multi Level Car parking for DMRC at Delhi
High Court
o Police station for Delhi Police at
CCCL has completed projects like
construction of office complex in Domestic airport for Delhi International
Airports Limited, Andhra Pavilion in Pragati Maidan, Corporate office and
Storage building for MRF Limited in Najafgarh Road, Factory building for ITC at
Ghaziabad, Factory building for Tricolite industries at Gurgaon and office
building for RR Tech Mach Limited and Software Complex for HCL Technologies
Limited at Noida in Delhi and NCR Regions CCCL have associated with the airport
project at Chennai for expansion of international and domestic terminal,
multilevel car parking and construction of bridge across Adyar River in
Chennai. The company is also associated with other airport projects in
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 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.44.61 |
|
|
1 |
Rs.73.28 |
|
Euro |
1 |
Rs.65.47 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
This score serves as a reference to
assess SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial condition (40%) Ownership background (20%) Payment
record (10%)
Credit history (10%) Market trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.