METHODOLOGY
31 Dec 2019
Long Read
DEFINITIONS
1. Construction is taken to include civil engineering and
construction contracting.
2. Revenue indicates ‘standalone operating revenue’
and includes sales revenue but does not include other
income and revenue of subsidiaries.
3. Profit is taken as net profit where the company has
only one segment. In case where the company has
multiple segments, we have taken segment-wise profit,
wherever possible. Also, wherever standalone net
profits numbers are available, we have considered the
standalone net profit for the last six years.
QUALIFICATIONS
1. Company form: Should be a legal entity created in any
one of the three modes:
a) Registered as a public or private limited company
under the Indian Companies Act, 1956,
b) Registered as a partnership firm under the Indian
Partnership Act, 1932, or,
c) A public sector undertaking created under an Act of
the Parliament or State Legislature.
2. Audited accounts: The annual statement of accounts,
balance sheet and profit and loss account should be
audited by an accredited firm of chartered accountants,
and the same submitted annually to the body of share
or stakeholders.
3. Foreign companies working in India but not
incorporated in India are excluded. Proprietary firms are
also excluded.
4. Size of company: Revenue to be above Rs.200 crore
for construction companies and Rs.100 crore for other
construction related companies in the immediate last
financial year (2018-19). Financial results closed during
any of the calendar months falling between April 2018
and December 2018 are also considered.
5. Age: The company should have been incorporated at
least six years ago. The statement of accounts, thus,
should be available for financial years 2013-14 up to
2018-19.
6. Nature of business: The mainline business of the
company should primarily be civil works, construction
and contracting, registered as a public or private
limited company. In the case of diversified companies,
the contribution of construction to the gross annual
revenue should not be less than 50 per cent in each
accounting year if segment-wise reporting is not
available. Companies that do not report annual revenues
separately by segments (for construction) do not qualify
for inclusion. A construction company servicing in-house
requirements of the group and which does not cater to
the open market is excluded from the scope of this study.
DATA SOURCES
1. Companies annual reports and published
annual results.
RANKING METHODOLOGY
1. Ensure the companies in the frame have financial
results for all the years, ie, FY2013-14 up to
FY2018-19.
2. Two prime indicators were considered for the
ranking: Operating revenue and profit after tax (PAT)
(as reported in the annual results).
3. Year-on-year percentage change was computed
for each of the years, for revenue and PAT.
For companies who have posted a turnaround in
FY2019, its FY2018 PAT performance is averaged
taking its five years performance to normalise the
ranking calculation.
4. In the case of net loss for two or more
consecutive years, the values were treated in
absolute terms while computing the year-on-year.
For example, a net loss of Rs.10 crore risingto Rs.15 crore
in the next year is a negative growth, but if the same
comes down to Rs.5 crore, it is treated as a positive
growth.
5. The companies were ranked in terms of descending
order of year-on-year change (revenue and profit) for
each of the years. (Fastest growth was ranked one and
slowest, the last).
6. The rank of each year was then multiplied by the weight
(see table below) assigned to that year. This was done
separately for revenue and PAT. The results were totaled
for each company to form the index for both revenue
and profit.
7. Companies were sorted in ascending order of
the composite index to arrive at the fastest
growing companies. Thus, the company with the
lowest composite index was ranked first and as
the topper.
8. Companies reporting losses in 2018-19 are not
considered for the CW Awards. Construction companies
have been categorised as under:
large with revenue > Rs.7500 crore.
Medium with revenue> Rs.2,000 crore to < Rs.,7500 crore.
Small size with revenue > Rs. 2,000 crore but Rs. Rs.200 crore.
9. Jury members hold a right of veto and despite
a company emerging in the top ranks, can be pushed
down the ranks if the jury does not find it worthy
qualitatively. The quantitative performance is placed
before the jury, which then observes the qualitative
aspects of the companies emerging among the top
ranks and then decides to use its veto power in altering
the ranking of the top performers. Qualitative aspects
include quality of management, corporate ethics,
governance, reputation, etc.
Note: Some of the figures mentioned in the profiles of the winners relate to consolidated figures of the group under which the company operates.
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