C&C Constructions Ltd CMP: Rs. 256.

55

Management Interaction Note October 25, 2010

HDFC Sec Scrip ID Industry CMP Recommended action Entry Price Band Target Time horizon
Buy at CMP & add on CMP & average in the Rs.227-235
CCCLTDEQNR Construction Rs. 256.55 declines band Rs.305 & Rs. 333 1 year

Company Background
C&C Constructions Ltd (C&C) is a Delhi based infrastructure project development company that provides engineering, procurement and
construction services for infrastructure projects in India and abroad. C&C’s project expertise is primarily in transportation engineering
projects, which include construction of roads, bridges, flyovers airport runways etc. C&C also has projects in commercial buildings,
water sanitation and sewerage and transmission tower space. C&C was incorporated in July 1996 by a group of professionals having
experience in the field of infrastructure development. Since its incorporation, C&C has acquired expertise in EPC and more recently
BOT contracts. In its bid to expand its presence across various other domains of infrastructure, C&C has entered in JV with various
firms like BSCPL Infrastructures Pvt Ltd for construction of roads & M/s Sukhmani Engineers Pvt Ltd for addressing opportunities
coming across the water sewage & sanitation vertical of the infrastructure industry. C&C has also recently forayed into urban
infrastructure projects. C&C has 4 BOT projects on hand of which one is expected to start commercial operations by January 2011.

As part of its international operations, C&C has been present in Afghanistan since 2003. After years of civil strife, various multilateral
agencies such as USAID, World Bank, ADB, etc. took upon themselves the reconstruction of Afghanistan. C&C has since 2003
executed projects funded by such agencies. C&C is also implementing a project in Afghanistan funded by the Indian Government. In
FY10, about 7% of C&C’s revenue came from the international markets, while the balance was from India.

Today, C&C has over 9,000 employees. The company has a large fleet of sophisticated construction equipment which includes
crushers, excavators, cranes, batching plants, pavers, hydraulic piling rigs, milling etc. all of which are owned directly by C&C or are
owned through its joint ventures. The company believes that its employee resources and fleet of equipment, along with its engineering
skills and capabilities, enable it to successfully implement a wide variety of construction projects that involve varying degrees of
complexity. C&C has also received accolades and appreciation certificates for some of its projects which include the resurfacing and
extension of runway at Amritsar Airport; Kandahar-Spinboldak road project; Taluquan-Kshom road project in Afghanistan; Kandahar
Herat road project; Kabul-Kandahar road project; Jalalabad-Asmar road project; and Kandahar –Tirinkot road project.

Company Structure - Subsidiaries

C&C Projects Limited - C&C Projects Limited was incorporated on 1 March 2007. It is a wholly owned subsidiary of the company. The
company holds 44,687,422 equity shares of Rs. 10 each in C&C Projects Limited (Investment of about Rs 45 cr). It is primarily engaged
in the business of developing and investing in BOT Projects.

C&C Towers Limited - (Subsidiary of C&C Projects Ltd.) C&C Towers Limited was incorporated on 27 March 2009. It is a step down
subsidiary of the company and a 99.99% subsidiary of C&C Projects Limited. Its main object is to develop bus terminal cum commercial
complex at Mohali.

C&C Realtors Limited - C&C Realtors Limited was incorporated on 16 December 2009. It is a wholly owned subsidiary of the
company. The company holds 49,994 equity shares of Rs. 10 each in C & C Realtors Limited. It is primarily engaged in the business of
construction, purchase, sale and development of residential, commercial, industrial, rural and urban property including investments in
such projects.

The subsidiaries are yet to start contributing in any meaningful way. In FY10, topline contribution was nil while loss at the PAT level was
Rs. 7.51 lacs.

Company Structure – Joint Ventures

In its bid to expand its presence across various other domains of infrastructure, C&C has entered in JV with various firms like BSCPL
Infrastructures Pvt Ltd for construction of roads (C&C has a 50% stake) & M/s Sukhmani Engineers Pvt Ltd (C&C has a 55% stake) for
addressing opportunities coming across the water sewage & sanitation vertical of the infrastructure industry. The table below
summarizes the JV details for FY09 and FY08.

(Rs in cr) C&C's share of

Year Name of JV % Of C&C interest Assets Liabilities Income Expenses Tax Profit
FY10 BSC-C&C ‘JV’ 50% 460.1 460.1 536.6 461.5 14.2 60.9
FY09 BSC-C&C ‘JV’ 50% 544.4 544.4 382.2 351.8 5.3 25.0
FY08 BSC-C&C ‘JV’ 50% 416.0 416.0 419.3 375.8 7.5 36.0
FY10 C&C SE ‘JV’ 55% & 80% 6.0 6.0 7.8 5.8 0.1 1.9
FY09 C&C SE ‘JV’ 55% 4.5 4.5 2.6 4.4 0.0 -1.8
FY08 C&C SE ‘JV’ 55% 2.7 2.7 0.1 0.9 0.0 -0.8
(Source: Company, HDFC Sec)

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Clientele
The table below summarizes some of C&C’s key clients.

Central Public Work Department, India Power Grid Corporation of India Ltd
Dedicated Freight Corridor Corporation of India Ltd Public Works Department of various State Governments
Jaiprakash Associates Ltd Punjab Infrastructure Development Board
National Highways Authority of India Punjab Water Supply and Sewerage Board
The Louis Berger Group, Inc
(Source: Company, HDFC Sec)

Shareholding pattern
Given below is the latest shareholding pattern of the company. The current equity of the company is Rs. 23.38 cr (face value of Rs. 10).
In FY10, the company allotted warrants to the promoters as well as issued shares to certain funds via a QIP. As a result, the promoter
holding has gone down from 70.06% in June 2009 to 63.42% in June 2010. The FII and DII holding have both increased considerably.
Funds holding more than 1% in the company include DSP Blackrock Equity Fund (2.32%), Emerging Makers Management LLC A/c
(3.21%), Government Pension Fund Global (2.57%), HDFC Growth Fund (3.41%), HDFC Infrastructure Fund (3.75%), HDFC Core and
Satellite Fund (1.58%) and UIIC (GIC group) (1.27%).

Particulars June 2010 March 2010 Dec 2009 Sept 2009 June 2009
Indian Promoters 63.42 70.42 70.29 70.25 70.06
FII 6.58 0.09 1.95 1.95 2.85
DII 14.20 9.29 9.29 9.34 9.34
Public & Others 15.80 20.20 18.47 18.46 17.75
Total 100.00 100.00 100.00 100.00 100.00
(Source: Company, HDFC Sec)

Investment Rationale
Ability to execute projects in difficult operating conditions enables C&C to enjoy decent operating margins
C&C has been successfully operating in difficult terrains and adverse weather conditions. It has mobilized resources including
equipment, raw material and personnel to its project sites at short notice. C&C commenced operations in Afghanistan in FY03 at a time
when various departments of the Afghanistan government were restructuring themselves, which posed administrative and security
issues. Over the years C&C has successfully delivered on 7 projects and is currently executing 2 projects worth Rs. 375 cr. C&C has
carved a decent amount of credibility as a dependable contractor and enjoys a strong track and timely execution record. It has an edge
over its competitors due to their own machinery and equipments in the region, which enables quick mobilization and excellent local
contacts, thereby having smooth execution. Its operations in Afghanistan enjoy premium pricing because of the timely execution of their
projects and it hardly witnesses any delays in receiving payments.

C&C has also been successful in operating under adverse weather conditions and tough terrain within India and in particular in
connection with its projects in Bihar, where the company is currently executing about 10 projects. This has resulted in repeat orders
from some of its domestic and international clients. Within India, the company focuses on the North and East (over 80% of current order
book) and keeps away from the South where there are a number of established players and competition is high.

Excellent local contacts have led to smooth, undisturbed execution. C&C is committed to benefiting the local populations in the country.
C&C is providing them with an opportunity to learn vocational skills and have also set up a state-of-the-art medical facility. Hence, the
company has maintained a strategy of landing projects in places like Afghanistan, Bihar and other places where the operating
conditions are challenging in order to be able to capture the higher margins offered in operating in such areas. C&C reported EBIDTA
margins of 18.7% in FY10 as against 17.2% in FY09. This is higher than the industry average of about 15-17% for smaller players and
10-12% for larger players. C&C has found a good degree of success with this strategy and plans to scout for emerging opportunities in
off beat geographies going forward. Another point to note is that there has not been a single instance of penal charges levied on the
company for late completion.

We would like to highlight two important factors (1) Over a longer period of time as competition will gradually set its eye on these
regions, margins could come under pressure. But we believe that the company will still have a first mover advantage and its established
track record will enable it to maintain healthy margins. (2) Given the logistical challenges in these areas, the company has to maintain
above average levels of inventory (raw material etc) which leads to an elongated working capital cycle and continuous need of funds.
However, C&C intends to focus on receivable collection and to build efficiencies in inventory levels. At the end of FY10, C&C managed
to bring down debtor days from an average of 90 days to about 80 days in FY10. However, inventory levels increased sharply from 133
days in FY09 to 189 days in FY10. Inventory at the end of FY10 contained a large amount of work in progress (work executed but yet to
be billed). This anomaly could get corrected going ahead.

C&C enjoys decent margins due to its ability to source and maintain supply of raw material & a good captive equipment base
C&C’s management places emphasis on the sourcing and logistics for raw material such as bitumen, steel and cement. C&C also has
its own crushers, which ensure timely availability of good quality aggregates at reasonable price. C&C’s ability to source key raw

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materials at competitive prices and on timely basis enables it to complete projects on time. However, as explained earlier this results in
the company having lower than industry inventory turnover ratios (higher inventory days).

Next, C&C has its own critical high end and modern construction equipment such as crushers, excavators, cranes, batching plants,
pavers, etc. The company’s asset base at the end of FY10 stood at Rs. 498 cr from 144.7 cr at the end of FY07. The gross block has
grown at a CAGR of 51% over the past 3 years. Ownership of such high-end equipment enables quick mobilization besides ensuring
continuous availability of critical equipment. Overall, the company believes in the policy of owning the assets rather than hiring it. Hiring
of construction equipment is an expensive proposition as the cost of owned equipment is recovered in three years. The average
economic life of these assets is anywhere between 7 to 9 years .The ownership of assets ensures uninterrupted work flow leading to
completion of projects with in time and cost lines. As a result of the investment in gross block, C&C’s sales to fixed assets ratio is on
the lower side (about 2.3x in FY10). However the same is expected to improve going forward due to two factors (1) Typically roads
require higher amount of capex for construction as compared to other verticals. However, the company plans to gradually diversify
away from this segment to other spaces as well. This should reduce the capex intensity and hence the depreciation expenses
supporting net margins in the future. This is reflected in the company’s current order book where the share from roads is about 56% vs
63% as of June 2009 and 96% as of June 2008. (2) The pace of addition to gross block is expected to slow as the company has
invested considerably in the past. Further, a number of machines that get free from current projects will be redeployed into new projects
and utilization levels could increase. Capex for the next two years could be about Rs. 80-100 cr in each year.

As a result of the above-mentioned factors, we believe that the company’s return ratios and sales to fixed asset turnover ratios are set
to improve.

Trend in RoCE & RoE Trend in Fixed Assets Turnovver

19.7
20.0 4.0
18.1
17.1 3.4
18.0 3.5 3.0
16.1 17.3
16.0 14.9 3.0
2.3 2.3
13.3
14.0 15.2 2.5 2.1
1.9
12.0 13.2 13.1 2.0
12.2
10.0 11.8 1.5

8.0 1.0

6.0 0.5
Jun-07 Jun-08 Jun-09 Jun-10 June-11 (E) June-12 (E) 0.0
Jun-07 Jun-08 Jun-09 Jun-10 June-11(E) June-12 (E)
RoCE RoE

(Source: Company, HDFC Sec)

JV strategy to expand bid capacity, enter into new segments & geographies
Construction companies typically bid for various projects that require certain financial and technical credentials. Their bid capacity is
constrained by the networth requirements. This is typically more relevant for mid and small size construction companies. Keeping this in
mind, companies have to either dilute stake or enter into JVs with larger players enabling the combined entity to have a higher
networth. C&C has entered into JVs in the past with players like B.Seenaiah & Company (Projects) Limited (BSCPL) and M/s Sukhmani
Engineers Pvt Ltd. Recently; it has also entered into a JV with Isolux Corsan of Spain wherein C&C has a 40% stake.

C&C has a 50% stake in the JV with BSCPL (details provided earlier) and a relationship that is over 10 years old. . The JV with BSPCL
is the largest functional JV currently. BSCPL has a presence in transportation engineering, irrigation and even real estate. The JV
mainly bids for projects in the roads sector. At the time of entering into the JV, BSCPL brought with it an established track record of
execution and certain capabilities and size that enabled C&C to grow faster. The understanding between both companies is quite clear
about the type of project, size of project and geographical area in which both will bid together. On a standalone basis, C&C can bid for
projects worth Rs. 500 cr while BSCPL can bid for projects upto Rs. 900 cr. Further, incase of conflict, there appears to be an
understanding wherein C&C will not bid for standalone projects in the south and BSCPL will not bid for projects in the North. When C&C
entered into this JV with BSCPL, BSCPL was about 1.5x the size of C&C. Today, this gap has narrowed. In FY09, BSCPL reported
consolidated sales of Rs. 1,126 cr and a PAT of Rs. 46.4 cr. Currently, the JV is structured in such a manner than C&C handles all the
front end activities like execution, procurement of raw material etc while BSCPL is responsible for financial and administrative activities.
About 50% of C&C’s current order book (Rs. 2,600 cr) is with its JV partner.

Split in Sales FY10 FY09 FY08

Independently 54% 49% 22%
In Joint Venture 46% 51% 78%
Total (Rs cr) 1168.45 750.13 533.26
(Source: Company, HDFC Sec

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Next, C&C recently (Sept 2010) tied up with Spanish firm Isolux Corsan of Spain to enhance their combined footprint in Asia, with plans
to jointly bid for projects worth about Rs 8,000 cr this fiscal. In the JV, C&C holds a 40% stake and the remaining equity is held by the
Spanish company. Independently, Isolux has a presence in 22 countries, while C&C is currently executing projects worth about Rs.
3,000 cr, of which about 15% are in Afghanistan. Isolux has consolidated revenues in excess of euro 3.3 billion.

This joint venture with Isolux basically helps C&C address that part of the market, which was not otherwise available to it, in terms of
domain expertise in any vertical, size of project, the complexity of projects as well as the geographies. C&C will also work on build-
operate-transfer (BOT) projects that Isolux has taken in India. The JV could start work and the orders could start flowing in by the end of
the next two months. The JV could receive a Rs. 110 cr order for a small power project and is also bidding for the Rs. 500 cr UP Power
Transmission project. The JV is expected to increase C&C’s revenue from verticals like power generation, power transmission, water
management and BOT projects. We believe a JV with a reputed player as well as the strategy to diversify geographically augurs well for
C&C. This will aid geographical as well as order book expansion along with entry into new verticals and capability to bid for larger
projects.

Decent order book that provides visibility for the next 18 months & strong pipeline
C&C’s order book currently stands at about Rs. 2,613 cr, which is 2.2 times FY10 revenue and provides revenue visibility for the next
18 months. It is also in the L1 stage for orders worth more than Rs. 1,100 cr and is prequalified for Rs. 10,000 cr of works in
infrastructure space. C&C is largely present in the transportation segment. However, in order to de-risk its business, the company has
forayed into other segments like railways, transmission, water & sanitation and commercial buildings. Its order book is dominated by
roads (constitutes around 56% of order book) and buildings (25%), and balance comes from Railway, Water and Transmission
segments. As per the management, in the past the company has been able to grow at 50% y-o-y and hence it expects to maintain this
growth rate for FY11. The order book position supports this type of growth. About 50% of C&C’s order book is under JV and about 90%
of the current order book is from the Government & related organizations. The order from private players includes the Mohali ISBT &
Comm. Complex and 2 orders from Jaypee Associates.

C&C along with its JV partner is L1 for road projects in Patna (Rs. 800 cr, BOT project) and Shillong (Rs. 1,400 cr, EPC). C&C’s share
is 50% of the mentioned projects and when announced could improve C&C’s revenue visibility to at least 2 years. The announcement
of the Patna project has been delayed due to the Bihar elections. Further, the current order book does not include the Muzaffarpur
Sonbarsa Road BOT project either (Rs. 656 cr) in which C&C has a 50% stake. While the current order book to sales ratio is lower than
that in comparison to other infra players, the management is not worried at it expects more and more orders from leaders like Jaypee
and L&T to get subcontracted to players like itself. Larger players could focus on bigger orders or projects in new areas while certain
orders could be outsourced to competent construction companies.

The company stands to benefit from its significant presence in north India, which has huge potential. The strong order book and huge
live bids provide strong visibility to the company’s revenues for the coming two to three years. The management expects the order book
of the company to grow to Rs. 4,000-4,500 cr by the end of FY11. The charts given below show the segment wise and geographical
split in order book. A key point to note is that while the current order book of Rs. 2,613 cr does not provide visibility for two full years
(assuming the company maintains a 50% growth rate), C&C is selective about accepting orders. The company does not accept / bid for
orders wherein the margins are below its past track record of margins (about 17-18%). Hence, as per the company, given India’s
infrastructure growth story, getting orders is an easy task, it is getting profitable orders (EBITDA margins of >17%) that remains key.

Split in order book - Verticals Split in order book - Geographical

13% 7%
5% 1%
11%

25%

20%

56%

13%

49%
Roads & Highways Railways Buildings Water & Sewerage Transmission Afghanisthan Punjab Bihar Haryana Others

(Source: Company, HDFC Sec)

Another point worth mentioning is the split in sales. C&C is slowly trying to reduce its dependence on roads (down from 99% of topline
in FY08 to about 91% in FY10) and increase focus on other high margin, low working capital intensive segments like water and
buildings. This is a good strategic move by the company which could aid in bring down working capital needs and dependence on one
segment.

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 Split in Sales FY10 FY09 FY08
Roads 91% 89% 99%
Building, Water & Others 9% 11% 1%
Total (Rs cr) 1168.4 750.1 533.3
(Source: Company, HDFC Sec)

C&C has made inroads into the developmental space, which could lead to the stock getting higher valuations
C&C is keen to enhance its countrywide presence by undertaking BOT projects, which are up for grabs from NHAI and other Nodal
agencies. Presently, C&C has four BOT projects (2 under implementation and 2 in the initial stage). Projects currently under execution
include a project for a bus terminal cum commercial complex in Mohali and a 44 km long road project located in Punjab between Kurali
and Kiraptpur.

Road BOT project from Kurali to Kiratpur - From just being a construction player the company turned into an infrastructure developer
in the BOT space in 2007 by bagging a road project for four-laning of 44km of National Highway-21 from Kurali to Kiratpur in Punjab.
The project has a concession period of 20 years and is in 49:51 joint venture with BSCPL, requiring a total investment of Rs 408 cr
(C&C’s stake in the project is 49%). The project is financed through a combination of debt (Rs. 260 cr), equity (Rs. 105 cr) and grant
(Rs. 44 cr). The project was expected to start its toll collection from June 2010 but due to some delay it is now expected to start from
January 2011. The project is expected to have IRR of 18%.

Mohali project – C&C has received an order for development of Inter State Bus Terminus and commercial complex at Mohali, Punjab
with a total estimated investment of around Rs. 432 cr (100% stake). The total area for the project is around 9 lakh square feet (lsf) out
of which the terminal will occupy less than 10%. The terminal is expected to come up in 18 months (by FY12 end). The bus terminus
has a concession period of 20 years whereas the commercial project is likely to come up in six years and has a concession period of 90
years. Of the 9 lsf of area, 50% is for commercial use while the balance is for retail. Under the commercial space, 1 lsf has already
been sold and 1 lsf has been given out to a hotel. Under the retail space, 1 lsf has been rented out. Recently, C&C Construction has
tied up with Cinepolis, India’s first international megaplex chain, for a ten-screen megaplex. The whole project will have a debt-equity
ratio of 70:30 and Rs. 78 cr has been invested in it so far. The company expects equity IRR of about 20.2%.

Lastly, in July 2010, C&C was awarded two separate contracts for construction of two lane roads in Bihar under NHDP III on Design,
Build, Finance, Operate and Transfer (DBFOT) annuity basis. The combined value of these projects amounts to Rs. 1,100 cr (C&C has
a 50% stake). The first project is for construction of a two-lane road with paved shoulders in Mokama- Munger Section of NH 80. The
road extends from 1,430 km to 70,000 km and the total value of the project is Rs. 444 cr. The second contract awarded by NHAI is for
construction of two-lane road in Muzaffarpur-Sonbarsa section of NH 77. The total value of the project is Rs. 656 cr as it extends from
2.8 km to 89 km. The IRR in these projects could be lower due to their small size (11-15% range). The Mokama Munger Road
(concession period of 15 years) could be ready by Oct 2012 while the Muzaffarpur Sonbarsa Road (concession period of 20 years) is
expected to be ready by April 2013.

Going ahead, C&C plants to expand its BOT project portfolio with the help of enhanced bid capacity. Divestment of stake in projects
where it does not have 100% economic interest can unlock value in the foreseeable future. The table below reflects the total cost and
C&C’s stake is mentioned separately.

BOT projects Kurali Kiratpur Toll Rd. Mohali ISBT & Comm. Complex Mokama Munger Rd. Muzaffarpur Sonbarsa Rd.
Total Project cost (Rs cr) 408.1 432.0 444.0 656.0
Means of Finance
Equity 104.2 124.2 88.8 130.0
Debt 260.0 200.0 355.2 526.0
Grant 43.9 0.0 0.0 0.0
Plough back 0.0 107.5 0.0 0.0

Cost incurred so far 367.3 104.0 0.0 0.0

Equtiy contributed so far 83.5 78.8 0.1 0.1
Concession period (Years) 20.0 20 (Bus Term), 90 (Comm) 15.0 20.0
Equity IRR 18.0% 20.2% 16.9% 10.7%
COD Jan-11 FY12 end Oct-12 Jul-13

C&C's stake 49% 100% 50% 50%

Name of JV Partner/s BSCPL Infrastructure Ltd NA BSCPL Infrastructure Ltd BSCPL Infrastructure Ltd
Stake of JV partner 51% NA 50% 50%
(Source: Company, HDFC Sec)

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Decent Corporate Governance Structure
We would like to highlight that C&C has been promoted and managed by a group of professionals with an established track record. This
includes Mr. Gurjeet Singh Johar, Mr. Charanbir Singh Sethi, Mr. Rajbir Singh, Mr. Sanjay Gupta and Mr. Amrit Pal Singh Chadha. The
profile of the independent directors is also impressive. The board consists of the 12 individuals of whom one is the Chairman, Managing
Director, 4 directors and 6 independent directors. The same is summarize is the table below.

Name Position Background Highlights

Mr. Gurjeet Singh Chairman Bachelor’s degree in commerce from Meerut University, a CA, Vice-Chairman of Project Export Promotion
Johar Council of India, a member on the Working Committee of Federation of India, a member of Core Group on
Roads & Highways of Confederation of Indian Industries. Chairman on the Board of Trustees of the Dhyan
Foundation, an NGO dedicated to the spiritual development of mankind through ancient Indian sciences.
Mr. Charanbir Managing Bachelor’s degree in commerce from Punjab University, more than 30 years of experience in the infrastructure
Singh Sethi Director sector and has successfully handled execution of many airport runway and road projects in India and in
Afghanistan.
Mr. Rajbir Singh Director Bachelor’s degree in economics from Punjab University, 12 years of experience in the infrastructure industry,
served in the Indian army for a period of nine years from 1978 to 1987 after which he was involved in handling
his family business of petroleum retailing. Joined the Board on 6 March 1997. He is in-charge of the quarrying
initiative of C&C and also handles all administrative aspects in the company.
Mr. Sanjay Gupta Director Bachelor’s degree in civil engineering from Regional Engineering College, Rourkela, 28 years of experience in
the infrastructure industry. Member of Builder Association, Delhi. Currently in-charge of implementation of the
Afghanistan projects, BOT projects and the Building projects.
Mr. Amrit Pal Singh Director Bachelor’s degree in commerce from Punjab University and a master’s degree in commerce from Shimla
Chadha University. 23 years of experience in the infrastructure sector and has been instrumental in execution of a
number of road and airport linked infrastructure projects in C&C. Executive Committee Member of National
Highways Builders Federation. Director in C&C since incorporation. He is currently in-charge of execution of
all infrastructure projects in Bihar.
Mr. Rajendra Director Bachelor’s degree in civil engineering from Thapar Engineering College, Patiala and a post graduate diploma
Mohan Aggarwal for Management from the Indira Gandhi National Open University. About four decades of experience in the
construction sector, in India and abroad and has worked for both the private as well as public sector. Has
been associated with the ONGC Limited, NPCC Limited, Central Public Works Department, RITES
Limited, Government of Libya and Oriental Structural Engineers Limited previously. Joined C&C on 1
June 2001. He is in-charge of overseeing all activities in relation to the tendering process and also handles
technical support in C&C.
Mr. Deepak Independent Bachelor’s and a master’s degree in science from the Delhi University. Retired Indian Administrative Services
Dasgupta Director Officer, 37 years of professional experience and has held senior positions in the government. Served as the
Chairman of the National Highway Authority of India, also served as a full time member on the Task Force
for interlinking rivers, worked as an advisor to the Asian Development Bank on a consulting assignment on an
intermittent basis for disseminating the national highways experience in South Asia region. Joined the Board
on 6 October 2006
Mr. Anand Bordia Independent Bachelor’s degree and a master’s degree in arts from St. Stephens College. 40 years of work experience in
Director policy formulation, programme implementation and organizational development with the GoI, has also worked
for various international organizations such as the World Customs Organization, Harvard Institute for
International Development and the UNDCP. He has been with the Indian Customs and Excise Department
and has held the post of Collector of Customs, Delhi. Also appointed as the First Secretary, Trade High
Commission of India in London, also worked in the Secretariat of World Customs Organization, Brussels for
seven years. He has conducted technical assistance programmes in Asian, African and South American
countries for the Harvard Institute for International Development, UNDCP and the World Customs
Organization. Most recently, he was appointed as a Member (Finance), NHAI and has been instrumental in
taking a number of initiatives in innovative financing, resource mobilization, public-private partnership and
expenditure control in implementation of the national highway development project, an ambitious highway
development project for the GoI. Joined the Board on 6 October 2006
Mr. Ramesh Independent Bachelor’s degree in civil engineering from the Delhi College of Engineering, a postgraduate diploma in
Chandra Rekhi Director construction management from the Indian Institute of Technology, New Delhi. Has over 43 years of
experience in the aviation and construction industry and has been involved in the design, development and
implementation of major engineering installations at airports since 1963. He has been a Chief Engineer with
New Delhi Muncipal Corporation, Chief Engineer with the International Airports Authority of India and
has also held the post of Airport Director, Delhi Airport. Been a Director of the International Airports
Authority of India, served the United Nations Development Programme/International Civil Aviation
Organization (ICAO) on a number of assignments relating to planning, design development and
implementation of airport projects in various countries such as Kenya, Laos, Vietnam, Nigeria, Uganda,
Afghanistan, Nepal and Australia. He is on the ICAO panel of consultants for airport planning and
development works and has also worked as the Head of the Aviation Division of EMA Unihorn Private Limited.
Currently he is working as senior consultant with Delhi International Airport Limited. Joined the Board on 6
October 2006
Lt. General Independent Retired official of the Defence Services. Holds a master’s degree in Defence Studies. He attended the
Harbans Singh Director Defence Services Staff College, Intelligence Staff Officer Course, Royal College of Defence Studies (U.K.). He
Kanwar (Retd.) was in the Indian Army for 40 years and has commanded various divisions of the armed forces. Awarded the
Param Vishisht Seva Medal, Ati Vishisht Seva Medal and the Vishisht Seva Medal for consistent and
distinguished service, spanning four decades to the nation. Joined the Board on 6 October 2006
Mr. Kanwal Monga Independent Bachelor’s degree in science from Punjab University. Has promoted the Virgo Group of Companies, which
Director assists high technology companies primarily from Europe and Japan in transfer of technology for the
telecommunication sector. He has been instrumental in introducing fibre optic cables into India and CNG into

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 Delhi. Joined the Board on 6 October 2006
Mr. Tarlochan Independent Master’s degree in economics from Punjab University. Currently a sitting member of the Rajya Sabha and
Singh Director various parliamentary committees. Previously, he has been the Chairman of the National Minority
Commission, Government of India. Joined the Board on 6 October 2006.
(Source: HDFC Sec, Company QIP Document)

Fund raising activity completed

FY09 was a difficult year for C&C in terms of access to funds. With the financial crisis hitting India as well and liquidity drying up in the
system, C&C was forced to borrow at high rates to fund its working capital. Tapping the equity market was also not an option for the
company has valuations had fallen. As a result, while topline grew by 40.7% in FY09, bottomline was flat. This was mainly due to a 60%
rise in interest costs to Rs. 52.51 cr. The company’s debt to equity ratio at the end of FY09 stood at 1.7x. However, this situation has
now improved with the company raising money via a QIP, preferential placement and issue of shares (conversion of warrants) to
promoters.

In FY10, C&C raised Rs. 76.87 cr through Qualified Institutional Placement (QIP). The shares issued under QIP were allotted at Rs.
243.8 per equity share. The table below summarizes the QIP allotment details. The company also raised Rs. 50.0 cr by preferential
allottment of equity shares made to promoters/ entities of promoter group. The equity shares were allotted at Rs. 253 per equity share.
Lastly, in July 2010, the company issued 5,00,00,000 (five crore) Compulsory Convertible Preference Shares of face value of Rs. 10/-
to IL&FS Trust Company Ltd. (acting as sole trustee for India Venture Trust) amounting to Rs 50 cr on preferential placement basis.
The funds thus raised will be for the purposes of procuring capital equipments/contributing equity to BOT projects/ meeting margin
requirements on incremental working capital limits to be availed by the company. The QIP issue and the issue of warrants to the
promoters have resulted in equity dilution of 28% and the enhanced equity stands at 23.4 crore. ILFS conversion price is linked to
profits of C&C in the coming year. C&C expects the conversion price of about Rs. 300-310 at the end of 18 months. We have assumed
a fully diluted equity of Rs. 25.1 cr (conversion price of Rs. 300) and this implies a further dilution of 7.1%.

Name of the Allottee No. of equity shares allotted

Emerging Markets Management, LLC A/c The EMM Umbrella Funds - Emerging Markets South Asian Stars Fund 750,000
Norges Bank A/C Government Petroleum Fund 600,000
HDFC Trustee Company Limited A/c HDFC Growth Fund 400,000
HDFC Trustee Company Ltd HDFC MF Monthly Income Plan Short Term Plan 170,000
HDFC Trustee Company Ltd - HDFC Core and Satellite Fund 370,000
Standard Life Investments India Advantage Fund 122,000
Standard Life Investments GS (Mauritius Holdings) Limited 51,000
DSP Blackrock Equity Fund 542,900
DSP Blackrock Balanced Fund 147,100
Total 3,153,000
(Source: Company, HDFC Sec)

The company’s debt equity ratio has now come down to 1.3x from 1.7x at end of FY09. The company does not expect any more
significant fund raising for now. Some fund raising could be carried out at the SPV level. In FY11, we expect interest outflow to be
under control as a result of which PAT growth could be healthy.

Q4FY10 & FY10 Performance (June ending company) & Outlook

In Q4FY10, C&C reported a topline of Rs. 401 cr, up 130.2% y-o-y and 26.5% q-o-q. The revenue growth was mainly driven by better
execution of projects. On the margin front, the operating profit margin of the company appears to have fallen to 15.4% from 22.4% in
Q4FY09. However, the best way to judge the company’s performance may not be on a quarterly basis. On a full year basis, C&C has
reported operating margins of 18.7% as against 17.2% in FY09 (standalone). Going ahead, the management of the company expects
to maintain the margin in the range of 17-18%. For Q4FY10, the company’s net profit stood at Rs. 33.1 cr, on account of higher other
income and a write-back of income tax. During the quarter there was tax write-back to the tune of Rs 0.95 cr as compared to 31.4% of
the effective tax rate in the corresponding quarter of the previous year. Consequently, the net profit of the company increased by 69%
y-o-y.

In FY10, the company reported net sales of Rs. 1,168.4 cr, up 55.8% y-o-y, operating margins of 18.7% and PAT of Rs. 69.1 cr, up
90.6% y-o-y. Interest costs increased by 53.9% y-o-y to Rs. 72.9 cr while depreciation costs increased by 79.6% y-o-y to Rs. 44.8 cr.
The effective tax rate for C&C increased to 36% from 28% in FY09. The company recommended a dividend at the rate of 27.5%, ie Rs.
2.75 per equity share. On a consolidated basis, the topline was Rs. 1,162 cr and PAT was Rs. 62.4 cr for FY10.

Going ahead, we believe that C&C could continue to maintain margins in the 17% range. The revenue from roads could reduce in the
years to come as execution in other verticals like building and water pick up momentum. Gross block addition is expected to slowdown
to about Rs. 80-100 cr per annum as the company uses machinery more efficiently and increases capacity utilization. Interest costs will
continue to rise albeit at a slower pace. We expect C&C to report a topline of Rs. 1,720.2 cr and Rs. 2,287 cr in FY11 and FY12
respectively, registering a growth rate of 47.2% and 32.9%. Operating margins are expected to be at 17.6% and 17% in FY11 and
FY12. Interest costs could rise by 34.6% and 21.3% in FY11 and FY12 to Rs. 72.9 cr and Rs. 98.2 cr respectively. Depreciation costs

Retail Research 7
could rise in line with capex. C&C pays full tax. In FY11 we expect the company to report a PAT of Rs. 102.5 cr and EPS of Rs. 40.9,
up 48.4% y-o-y. In FY12 this could increase to Rs. 139.1 cr and EPS of Rs. 55.5, up 35.7% y-o-y.

Trend in Sales & PAT Trend in EBIDTA% & NPM

2500.0 70.0 22.0 12.0
21.7

20.0 10.0
2000.0
50.0 10.0
18.0
1500.0 18.7
7.7 17.0
Rs cr

17.4 17.6

EBIDTA%
16.0 8.0

NPM
30.0

%
1000.0 16.5 6.1
14.0 5.9
10.0 6.0
500.0 6.0
12.0 5.5

0.0 -10.0 10.0 4.0

FY08 FY09 FY10 FY11 (E) FY12 (E) FY07 FY08 FY09 FY10 FY11 (E) FY12 (E)
Sales PAT Growth in PAT EBIDTA % NPM %

(Source: Company, HDFC Sec)

Risks & Concerns

• Increase in raw material prices could impact operating margins. However, a large part of C&C’s current order book is from the
GoI and related parties wherein most contracts have price escalation clauses and incase of the Jaypee contract it is executing, the
raw material is being supplied by the company.

• Increase in interest rates could impact net profit margins as C&C is dependent on debt to fund its working capital (debt to equity is
at 1.3x currently) and the company sees it in this range (1.2-1.6x) going ahead.

• C&C has a stretched working capital cycle due to high amount of inventory and work in progress. However, management has
given indication for 4 months working capital cycle for the next 2 to 3 years.

• At the end of FY10, C&C’s inventory has jumped 155% largely due to work in progress. C&C has recently started work on a
number of projects for which the company is yet to bill the customer. This could translate into revenue in FY11, however, in the
interim it stretches the company’s working capital cycle and reliance on debt.

• A significant part of C&C’s operations are in adverse terrains such as Afghanistan and Bihar where risks like political and
operational uncertainty and inclement weather besides law and order problems make its operations vulnerable.

• C&C’s foray into BOT projects is likely to entail upfront investment, which can strain its already leveraged balance sheet.

• Delay in execution could impact topline growth and profits.

• C&C faces forex exposure as it derives 7-12% of revenue from overseas. The company also imports cement from Pakistan and
Bitumen from Egypt from time to time.

• Slowdown in economy and award of projects could impact C&C adversely as it is mainly dependent on the GoI for orders.

• Competition in India and overseas could lead to pressure on margins.

• C&C has invested a lot of money in equipment in the past and could continue to do so in the future. This leads to a low sales to
fixed asset turnover ratio for the company and could hurt the bottomline when execution slows down.

• C&C is dependent on its JV partner for bidding for orders worth more than Rs. 500 cr (and that too just one company – BSCPL).
About 46% of C&C’s revenues were through its JV in FY10. Any differences between the partners may lead to break-up of joint
ventures and have adverse effect on the operations and profitability of the company.

• Business from overseas enjoys higher margins and hence margins could fluctuate from year to year depending on the
execution mix.

• Slowdown in growth of order book. The pace of order accretion appears to have slowed down in FY10. The current order book
provides revenue visibility for about 18 months.

Retail Research 8
• Pain on consolidation. At the consolidated level in FY10 sales and PAT fell by about Rs. 6 cr each while in FY09 it dropped by
about Rs. 8 cr each. This is due to netting out of work done for its subsidiaries. Going ahead, the quantum of this is uncertain and
could lead to a larger difference between standalone and consolidated profitability.

• Constant need for funds as sales grows. C&C has carried out a considerable dilution at the parent company level and could
carry out more dilution at the subsidiary level / SPV level.

Conclusion
C&C is an interesting play in the construction space, with a sizeable and growing order book and exposure to high-margin markets like
Afghanistan and Bihar. With the company diversifying into new segments, overall improvement in economic outlook and with the
commencement of operations of its first BOT project by January 2011, we feel that the stock is due for a re-rating.

C&C has created a niche for itself by developing the ability to execute projects in adverse terrains such as Afghanistan and Bihar. The
upside of working in adverse terrains for C&C is that it has to face limited competition, which yields higher margins than the industry
average; in these terrains, competition is limited to just 3-4 bidders against 8- 10 bidders on an average for regular contracts elsewhere.
With ~50% of the company’s future revenues expected to come from projects executed in adverse terrains, C&C is expected to
continue operating at higher-than-industry margins. Key risks include capital-intensive business model, increase in leverage levels to
fund working capital and execution risks.

With an outstanding order book of Rs. 2,613 cr, C&C is on a high growth trajectory. Going ahead, the management expects about 50%
topline growth and margins in the 17-18% range on a standalone basis. We expect C&C to report a topline of Rs. 1,720.2 cr and Rs.
2,287 cr in FY11 and FY12 respectively, registering a growth rate of 47.2% and 32.9%. Operating margins are expected to be at 17.6%
and 17% in FY11 and FY12. Interest costs could rise by 34.6% and 21.3% in FY11 and FY12 to Rs. 72.9 cr and Rs. 98.2 cr
respectively. Depreciation costs could rise in line with capex. C&C pays full tax. In FY11 we expect the company to report a PAT of Rs.
102.5 cr and EPS of Rs. 40.9, up 48.4% y-o-y. In FY12 this could increase to Rs. 139.1 cr and EPS of Rs. 55.5, up 35.7% y-o-y.

At the current market price the stock is trading at 6.3x and 4.6x its FY11 (E) and FY12 (E) EPS. This appears attractive when compared
with other players within the industry. We also derive comfort from the fact that the promoters have converted warrants to preference
shares at Rs. 253 and the company has recently competed its QIP at a price Rs. 244 per share.

Companies, which have a presence in the BOT space, get higher valuations (13x-22x P/E) than pure EPC players. However, we would
like to highlight that C&C is cheaper in term of valuation even when compared to players like J Kumar Infra, which is smaller in terms of
size and BOT exposure. The table below summarizes the same. On a full year basis, all the players have comparable margins (18%
range) barring Gayatri projects whose margins are much lower at about 11.4%. However, C&C is trading at a discount to J Kumar, and
ARSS Infra. It is trading at similar valuations as Supreme Infra despite having a more comfortable debt to equity and being double in
size. As a result, we expect C&C to get re-rated in the near future. The P/E is based on TTM EPS. C&C is a June ending company. In
terms of P/BV, C&C seems the most attractive and hence there appears to be limited downside (mainly due to fund infusion at levels
close the current market price). The key concern with the stock is that as C&C grows at a rapid pace, its need for funds is also expected
to rise and hence the company could increase debt levels or resort to equity dilution. With a 37% dilution done in FY10 & Q1FY11, we
believe that further fund raising could be at the SPV level. Interest costs could continue to remain high and if interest rates had to rise
very sharply the company could be impacted adversely.

FY10 Q1FY11
Peers Sales EBIDTA % PAT EPS Sales EBIDTA % PAT EPS BV FV Equity Price P/E P/BV D/E EV/EBIDTA
J Kumar Infra 764.2 16.8% 70.0 25.2 200.3 15.4% 15.9 5.7 117.8 10.0 27.8 250.6 9.5 2.1 0.2 5.3
Supreme Infra 536.7 18.3% 37.9 27.3 184.5 19.9% 15.6 11.2 108.6 10.0 13.9 287.2 8.6 2.6 2.2 7.2
ARSS Infra 1006.6 18.0% 90.1 60.7 356.5 19.1% 34.1 22.9 250.7 10.0 14.8 1167.9 20.6 4.7 1.3 11.4
Gayatri Projects 1274.5 11.4% 55.5 48.7 342.6 12.6% 15.1 13.2 263.5 10.0 11.4 399.5 8.1 1.5 4.5 12.4
C&C 1168.4 18.7% 69.1 29.5 401.0 15.4% 33.1 14.2 210.5 10.0 23.4 256.6 8.7 1.2 1.3 5.6
(Source: Capitaline, Company, HDFC Sec, Consolidated wherever applicable, C&C - Standalone)

We recommend investors to buy the stock at the current market price and add on declines to the Rs. 227-235 band for
sequential price targets of Rs. 305 and Rs. 333 (5.5-6x FY12 (E) EPS) over the next one-year.

Retail Research 9
Financials
Quarterly Results
June ending co - Rs cr Q4FY10 Q4FY09 % Chg y-o-y Q3FY10 % Chg q-o-q Q2FY10 Q1FY10
Net Sales 401.0 174.2 130.2% 317.0 26.5% 280.7 169.7
Other Income 6.9 1.7 311.3% -0.4 -1675.0% 0.0 0.9
Total Income 408.0 175.9 132.0% 316.6 28.9% 280.7 170.7
Total Expenditure 339.1 135.1 151.0% 249.6 35.9% 216.6 144.6
Construction expenses 286.8 113.4 152.9% 198.6 44.4% 168.1 113.4
Employee cost 37.2 15.6 138.5% 33.6 10.7% 33.4 18.1
Other expenses 15.1 6.1 146.4% 17.3 -12.6% 15.1 13.1
EBIDTA 68.8 40.7 68.9% 67.0 2.8% 64.1 26.1
Depreciation 13.3 6.5 104.1% 13.1 1.4% 12.5 5.9
EBIT 55.6 34.2 62.3% 53.9 3.1% 51.6 20.2
Interest 23.4 5.7 311.3% 15.8 48.1% 21.4 12.4
PBT 32.2 28.6 12.7% 38.1 -15.5% 30.2 7.8
Tax -0.9 9.0 -110.6% 27.2 -103.5% 10.6 2.4
PAT 33.1 19.6 69.0% 10.9 204.6% 19.6 5.4
EPS 14.2 8.4 69.0% 4.7 204.6% 8.4 2.3
OPM % 15.4% 22.4% 21.3% 22.8% 14.8%
NPM % 8.1% 11.1% 3.4% 7.0% 3.2%
(Source: Company, HDFC Sec)

Segmental
Segmental Q4FY10 Q4FY09 % Chg y-o-y Q3FY10 % Chg y-o-y Q2FY10 Q1FY10
Indian Operations 375.1 153.2 144.8% 303.0 23.8% 261.2 144.2
Overseas Operations 25.9 21.0 23.4% 14.1 84.4% 19.5 25.5
Total 401.0 174.2 130.2% 317.0 26.5% 280.7 169.7
PBIT
Indian Operations 64.8 39.9 62.5% 60.5 7.0% 55.6 20.9
Overseas Operations 4.2 0.3 1196.4% 3.1 35.5% 4.7 6.2
Total 69.0 40.2 71.7% 63.7 8.4% 60.3 27.1
PBIT %
Indian Operations 17.3% 26.0% 20.0% 21.3% 14.5%
Overseas Operations 16.3% 1.6% 22.2% 24.2% 24.4%
Total 17.2% 23.1% 20.1% 21.5% 16.0%
Capital employed
Indian Operations 1078.0 880.1 22.5% 1052.3 2.4% 1015.3 897.9
Overseas Operations 63.9 56.2 13.6% 51.0 25.3% 69.1 68.7
Total 1141.9 936.3 22.0% 1103.2 3.5% 1084.5 966.6
(Source: Company, HDFC Sec,)

Profit & Loss A/c

(Rs cr) Jun-07 Jun-08 Jun-09 Jun-10 June-11 (E) June-12 (E)
Net Sales 330.4 533.3 750.1 1168.4 1720.2 2287.0
Other income 5.8 7.9 5.2 7.5 5.0 6.0
Total Income 336.2 541.2 755.4 1175.9 1725.2 2293.0
Total Operating Expenditure 258.8 440.4 626.2 949.9 1417.0 1898.2
EBITDA 77.4 100.8 129.2 226.0 308.2 394.8
Margins % (without other income) 21.7 17.4 16.5 18.7 17.6 17.0
Interest 19.7 32.9 47.4 72.9 98.2 119.1
Depreciation & Non cash charges 16.0 15.5 24.9 44.8 54.5 64.1
PBT 41.8 52.5 56.8 108.3 155.5 211.6
Taxation 8.6 11.6 15.7 39.2 53.0 72.5
Net Profit (Reported) 33.2 40.9 41.1 69.1 102.5 139.1
(Source: Company, HDFC Sec)

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Balance Sheet
(Rs cr) Jun-07 Jun-08 Jun-09 Jun-10 June-11 (E) June-12 (E)
Capital 18.3 18.3 18.3 23.4 23.4 25.1
Preference Capital 0.0 0.0 0.0 0.0 50.0 0.0
Reserves & Surplus 253.3 290.7 331.0 504.2 599.1 778.5
Total Shareholders’ Funds 271.6 309.0 349.2 527.5 672.5 803.6
Secured Loans 137.4 270.8 608.9 709.1 825.0 975.1
Unsecured Loans 0.0 0.0 0.0 0.0 0.0 0.0
Net Deferred Tax 4.0 7.9 15.9 37.0 37.0 37.0
Total 413.0 587.6 974.1 1273.6 1534.5 1815.7
Net Block 100.7 193.4 316.2 373.7 398.9 438.3
Capital WIP 54.8 29.3 9.9 9.7 8.5 7.1
Investments 92.7 52.7 49.7 150.2 245.0 402.5
Net Current Assets 164.8 312.2 598.4 740.1 882.1 967.8
Total 413.0 587.6 974.1 1273.6 1534.5 1815.7
(Source: Company, HDFC Sec)
Cash Flow Statement
(Rs. in cr) Jun-07 Jun-08 Jun-09 Jun-10 June-11 (E) June-12 (E)
Profit Before Tax 41.8 52.5 56.8 108.3 155.5 211.6
Net Operating Cash Flow -38.1 -50.8 -95.4 49.8 130.6 201.0
Net Cash from Investing Activity -174.3 -42.2 -128.3 -202.6 -173.3 -259.6
Net Cash from Financing Activity 220.4 115.6 256.1 145.0 60.2 22.9
Cash & Cash Equivalents 29.7 52.3 84.7 77.0 94.4 58.8
Net Inc / (Dec) in Cash 8.0 22.7 32.4 -7.8 17.4 -35.7
(Source: Company, HDFC Sec)
Ratio Analysis
Key Ratios Jun-07 Jun-08 Jun-09 Jun-10 June-11 (E) June-12 (E)
Profitability Ratios (%)
EBITDA 21.7 17.4 16.5 18.7 17.6 17.0
Net profit 10.0 7.7 5.5 5.9 6.0 6.1
RoCE 14.9 17.1 13.3 16.1 18.1 19.7
RoA 8.0 8.2 5.3 6.1 7.3 8.3
RoE 12.2 13.2 11.8 13.1 15.2 17.3
Growth Ratios (%)
Net sales 61.4 40.7 55.8 47.2 32.9
EBITDA 30.2 28.1 75.0 36.4 28.1
PBT 25.7 8.2 90.6 43.6 36.1
PAT 23.3 0.5 68.1 48.4 35.7
EPS 23.3 0.5 68.1 48.4 35.7
Valuation Ratios (X)
PE 19.4 15.7 15.6 9.3 6.3 4.6
CPE 13.1 11.4 9.7 5.6 4.1 3.2
Price/BV 2.4 2.1 1.8 1.2 1.0 0.8
EV/EBITDA 4.2 5.1 5.1 4.7 3.5 2.9
EV/Sales 1.0 1.0 0.9 0.9 0.6 0.5
EV/Mcap 1.0 1.5 3.6 1.8 1.8 1.8
D/E(Total) 0.5 0.9 1.7 1.3 1.2 1.2
Per share data (Rs)
Earnings 13.2 16.3 16.4 27.6 40.9 55.5
Cash Earnings 19.6 22.5 26.4 45.4 62.6 81.1
Book Value 108.4 123.3 139.4 210.5 268.4 320.7
Turnover Ratios
Inventory (days) 84.5 96.7 133.0 188.9 181.8 162.0
Debtors (days) 77.1 72.8 119.9 79.0 65.7 80.8
Creditors (days) 175.2 125.9 189.8 199.9 172.6 180.0
(Source: Company, HDFC Sec)

Retail Research 11
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document is not to be reported or copied or made available to others. It should not be considered to be taken as an offer to sell or a solicitation to buy
any security. The information contained herein is from sources believed reliable. We do not represent that it is accurate or complete and it should not be
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Retail Research 12