NAGRAJUNA CONSTRUCTION COMPANY (NCC)

OVERVIEW

The year 1978 saw Dr AVS Raju take that single step along with like-minded people to
establish NCC. It was the vision of this simple man who believes in human values, common
sense and value of time. It has been journey of excellence since then. Starting off with the
corporate office in Hyderabad, regional offices were opened to facilitate the geographical
spread of new projects. NCC was listed on the BSE & NSE stock exchanges in 1992.

The year 1995 saw NCC crossing a turnover of Rs. One billon. The Property Division was
established in 1996 followed by the Transportation Division in 1998. The Water, Electrical,
Power, Irrigation, Metals, Oil & Gas Divisions ere established subsequently. The GDRs, of
the Company are listed on the Luxembourg stock exchange. The enormous trust placed by
foreign institutional investors is reflected by the investment of US $ 100 million as on date by
the Blackstone group of USA. The Company has offices in Muscat (Oman) and Dubai (UAE)
and has bagged projects in these countries.

Today, NCC is the only construction company from India hailed as 'Best Under a Billion' in
Asia Pacific by Forbes Asia. It is ranked as the fastest growing construction company in the
country by Construction World - NICMAR and also as the 2nd largest company in terms of
of turnover for the year 2006-07. It is also rated as one of India's most admired companies by
Construction World and is the 4th fastest growing company in India across all sectors in a
study conducted by Dalal Street Magazine. NCC has a super ranking of 103 among India's
top 1000 companies. It has also been ranked third on the basis of total income in construction
and allied activities sector by Dun and Bradstreet in their acclaimed publication "India's Top
500 companies" in 2006.

The Company's projects have been recognised as the "Outstanding Structure of the Year" by
the Indian Concrete Institute two years in a row. NCC was awarded a bonus of Rupees 20
million for early completion of its projects. It's turnover for the financial year 2006-07 stood
at Rs.29 billion. Through the years and into the future, NCC continues to be on a steady drive
towards perfection by maintaining old customs and adding new endeavours-across decades,
across countries, across disciplines. It has marched on, towards newer horizons and newer
challenges.

NCC Urban Infrastructure Ltd. is a Subsidiary of NCC Limited and comes Equipped
With a world class building techniques and state-of-the-art building infrastructure that is
expertly commandeered by top-notch professionals. 

NCC Urban Infrastructure’s quality operations span across Residential and commercial

complexes, townships, SEZs and serviced apartment complexes. The company has an
impressive pan India presence across Bangalore, Hyderabad, Cochin, Vizag, Ranchi and
Dubai. Strict adherence to superior standards ontime deliveries and transparent
documentation has made preferred destination for individuals who are looking for quality
living at affordable prices. 

NCC Urban has inherited its experience and expertise from NCC Limited. Known for its
excellence in the execution of Turn key projects, Industrial Buildings, Multistoried,
Commercial structures,Townships, Roads, Bridges, Pipelines etc. and rated as growing
Infrastructure Company in India with annual turn over nearly Rs. 3,500 crores.

VISION

To be a world - class construction and infrastructure enterprise committed to quality, timely

completion, customer satisfaction, continuous learning and enhancement of stakeholder's
value.

MISSION

 To build a strong future ensuring increased returns to shareholders and enhanced

support to associates.

 To adopt latest technologies in the field of engineering, construction, operation &

maintenance of infrastructure projects.

 To encourage innovation, professional integrity, upgradation of knowledge and skills

of employees and a safe working environment.

 To be a responsible corporate citizen committed to the social cause.

VALUES

 Openness and trust

 Integrity & reliability
 Teamwork & collaboration
 Commitment
 Creativity
CASH FLOW FROM OPERATING ACTIVITIES

2009 2008
Net Profit before tax 2642.91 2542.91
Adjustments for Depreciation / Amortisation 822.89 606.65
Miscellaneous expenditure written off 8.61 15.09
Loss on Sale of Fixed Assets 11.03 3.41
Profit on Sale of Fixed Assets (2.82) (8.07)
Interest and financial charges 1736.70 1062.91
Income from current investments - (0.29)
Employee Compensation Expense (0.66) 11.30
Operating Profit before Working Capital 5218.66 4233.91
Changes
Adjustments for changes in Trade and Other (5788.06) (8658.19)
Receivables
Inventories (3595.64) (3854.59)
Trade Payables and other Liabilities 2085.26 7704.61
Cash used in Operations (2079.78) (574.26)
Taxes paid (1350.25) (1138.46)
Net Cash used in operating activities (3430.03) (1712.72)

OBSERVATIONS

 There has been a slight increase in profit before taxes from 2542.91 cr in 2008 to
2642.91 in 2009.

 Interest and financial charges have increased from 1062.91 cr in 2008 to 1736.70 cr
due to increase in amount of loan taken.

 The net cash used in operating activities has increased tremendously from 1712.72 cr
in 2008 to 3430.03 cr in 2009.
CASH FLOW FROM INVESTING ACTIVITIES

2009 2008
Purchase of Fixed Assets and other 7051.76 6585.05
capital expenditure
Proceeds from sale of Fixed Assets 48.07 121.94
Investment in other companies (650.19) (1667.72)
including share application money
Advances to associates and other (38.36) 366.80
body corporates
Incorporation expenses (8.60) (5.02)
Share of loss from Associates (25.28) (11.30)
Foreign Exchange Translation 151.19 (69.02)
adjustment (arising on
consolidation)
Interest received 365.15 245.74
Income from current investments - 0.29
Net Cash used in Investing (7209.78) (7603.34)
Activities

OBSERVATIONS

 The amount utilised in purchasing fixed assets and other capital expenditure has
increased from 6585.05 cr in 2008 to 7051.76 cr in 2009.

 Interest received has increased 245.74 cr in 2008 to 365.15 cr in 2009.

 Net cash used in investing activities has decreased from 7603.34 cr in 2008 to
7209.78 cr in 2009.
CASH FLOW FROM FINANCING ACTIVITIES

2009 2008
Proceeds from Issue of Shares 80.18 4099.05
Proceeds from Issue of Debentures 1000.00 -
Capital Grant received 112.32 -
Long Term Funds borrowed 8168.63 7293.43
Unsecured Loans - Banks 2143.57 333.67
borrowed/ (Repaid) (Net)
Interest paid (2024.07) (1270.34)
Dividend and Dividend Tax paid (347.74) (228.29)
Net Cash from Financing 9132.89 9560.18
Activities

OBSERVATIONS

 Proceeds from issue of shares have decreased drastically from 4099.05 cr in 2008 to
80.18 cr in 2009.

 Unsecured loans have increased from 333.67 cr in 2008 to 2143.57 cr in 2009 along
with interest paid from 1270.34 in 2008 to 2024.07 cr in 2009.

 Net cash from financing activities has decreased from 9560.18 cr in 2008 in 9132.89
cr in 2009.
FUTURE OUTLOOK

A) NCC Urban

UPCOMING PROJECTS

  BANGALORE
 
a) Residential
 
 Villa Projects in Sarjapur Road, Bangalore.

 Villa Project in Yelahanka, Bangalore.                  

 
b) Commercial
 
 Proposed IT Park near Marthalli, Bangalore.

 Proposed commercial project opposite to Jakkur flying club.

 Proposed commercial project close to ITPL.

  HYDERABAD
 
 Villa Project 34 Acres in Kompally (200 Villas).

  VIZAG
 
 Residential Apartments, vizag.                             

 CHENNAI
 
 Residential Project in off OMR Road.

 Proposed Residential Project near Pallavaram 100 feet Road.

 GOA
 
 Proposed Residential Project at Panjim Goa

 RAIPUR
 
 Proposed Residential Project in Raipur
B) NCC Infra

UPCOMING PROJECTS

a) Tellapur Technocity Integrated Township, Hyderabad

 400 acres integrated township project in Tellapur, Hyderabad

 One of India’s largest integrated townships at total cost of over USD 3 bn.
 PROMOTERS: Tishman Speyer, ICICI Ventures, Nagarjuna Construction Company
(NCC)
 PROJECT COMPANY: Tellapur Technocity Private Limited, Tellapur Technopark
and Other SPVs as required
 DEVELOPMENT MANAGER: Tishman Speyer (India) Pvt. Ltd

b) Kompally, Hyderabad
c) Urban One, Gajularamaram, Hyderabad
d) Proposed commercial cum office complex at Dehradun , Utranchal
e) Games Village at Ranchi
f) Mixed development project, madhurawada, visakhapatnam (JV
Programme with Andhra Pradesh State Housing Board)