MIRA INFORM REPORT

Report Date :

08.02.2007

IDENTIFICATION DETAILS

Name :	CONTAINER CORPORATION OF INDIA LIMITED
Registered Office :	Concor Bhawan, C-3, Mathura Road, Opposite Apollo Hospital, New Delhi-110076
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	10.03.1988
Com. Reg. No.:	55-30915
CIN No.: [Company Identification No.]	U63011DL1988GOI030915
TAN No.: [Tax Deduction & Collection Account No.]	DELC06471D
PAN No.: [Permanent Account No.]	C68CI0844
Legal Form :	Closely held Public Limited Liability Company
Line of Business :	Handling the import and export of nation's trade in containers through rail route

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 83500000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established company of the Government of India. The company is progressing well. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments. Fundamentals are strong and healthy. The company can be considered normal for business dealings at usual trade terms and conditions. The company can be considered as a promising business partner in a medium to long run.

LOCATIONS

Registered Office :	Concor Bhawan, C-3, Mathura Road, Opposite Apollo Hospital, New Delhi-110076, India
Tel. No.:	91-11-41673093/ 94/ 95/ 96
Fax No.:	91-11-41673112
E-Mail :	co@concorindia.com, co.pro@concorindia.com
Website :	http://www.concorindia.com
Plant :	The company has 47 numbers of Inland Container Depos (ICDs) and 9 numbers of Domestic Container Terminals as on 31.03..2006

DIRECTORS

Name :	Mr. S.B. Ghosh Dastidar
Designation :	Chairman (Non-Executive)
Address :
Date of Birth/Age :	Mr. Rakesh Malhotra
Qualification :	Managing Director
Experience :
Date of Appointment :	Mr. P. G. Thyagarajan
	Director (International Marketing and Operations)
Name :
Designation :	Mr. Suresh Kumar
Address :	Director (Finance)
Date of Birth/Age :
Qualification :	Mr. Anil Kumar Gupta
Experience :	Director (Domestic Division)
Date of Appointment :
	Mr. Harpreet Singh
Name :	Director (Projects and Services
Date of Appointment :	20.07.2006
Address :
Date of Birth/Age :	Mr. R. K. Tandon
Qualification :	Governament Nominee Director, Ministry of Railways
Date of Appointment :	18.07.2006
Date of Appointment :
	Mr. Pradeep Bhatnagar
Name :	Governament Nominee Director, Ministry of Railways
Date of Ceasing :	17.07.2006
Address :
Date of Birth/Age :	Mr. R. K. Narang
Qualification :	Non-Executive Director
Date of Ceasing :	19.01.2006
Date of Appointment :
	Mr. D. Babu Paul
Name :	Non-Executive Director
Date of Ceasing :	19.01.2006
Address :
Date of Birth/Age :	Mr. P. S. Sarma
Qualification :	Non-Executive Director
Date of Ceasing :	19.01.2006

KEY EXECUTIVES

Name :	Mr. Ravi Khandelwal
Designation :	Group General Manager (Accounts) and Company Secretary

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares	Percentage of Holding
Government of India	40999901	63.08
Banks, Financial Institutions, Insurance Companies	1269491	1.95
Foreign Institutional Investors	17613017	27.10
Mutual Funds and UTI	3035388	4.67
Private Corporate Bodies	854490	1.32
Indian Public	1186566	1.83
NRIs/ OCBs	31744	0.05
Others	800	0.00
Total	64991397	100.00
Trident Terminals Private Limited	459130	--
CMA-CGM Logistics Park (Dadri) Private Limited	1425900	--
Himalayan Terminals Private Limited	40000	--

BUSINESS DETAILS

Line of Business :

Handling the import and export of nation's trade in containers through rail route

GENERAL INFORMATION

Bankers :	Ø ABN Amro Bank Ø Allahabad Bank Ø Bank of India Ø Canara Bank Ø Central Bank of India Ø Citi Bank Ø Corporation Bank Ø Deutsche Bank Ø HDFC Bank Limited Ø ICICI Bank Limited Ø Punjab National Bank Ø Standard Chartered Bank Ø State Bank of India Ø Syndicate Bank Ø United Bank of India Ø UTI Bank Ø Indian Bank
Facilities :	Unsecured Loans (as at 31.03.2005): Foreign Currency Loan from International Bank for Reconstruction and Development (IBRD) – Rs.106.000 millions (Guaranteed by Government of India)

Banking Relations :	Satisfactory
Auditors :	Hingorani M. & Company Chartered Accountants, New Delhi Branch Auditors D.K. Chhajer & Company Chartered Accountants, Kolkata Kalyanasundaram & Company Chartered Accountants, Chennai Sanghvi & Associates Chartered Accountants, Ahmedabad P. Parikh & Associates Chartered Accountants, Mumbai

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
100000000	Equity Shares	Rs.10/- each	Rs.1000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
64991397	Equity Shares	Rs.10/- each	Rs.649.900 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		649.900	649.900	649.900
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		20261.800	16337.700	13122.500
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		20911.700	16987.600	13772.400
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	106.000	119.900
TOTAL BORROWING		0.000	106.000	119.900
DEFERRED TAX LIABILITIES		1438.400	1308.900	0.000
TOTAL		22350.100	18402.500	13892.300
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		14119.000	12372.300	9632.000
Capital work-in-progress		1655.400	1553.900	1153.600
INVESTMENT		1293.800	840.000	34.500
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories			29.500
	Sundry Debtors			57.800
	Cash & Bank Balances	7147.500	5719.000	5989.800
	Other Current Assets			0.000
	Loans & Advances	1736.700	545.100	1016.300
Total Current Assets		8884.200	6264.100	7093.400
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	2961.400	1957.100	3073.500
	Provisions	640.900	670.700	947.700
Total Current Liabilities		3602.300	2627.800	4021.200
Net Current Assets		5281.900	3636.300	3072.200
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		22350.100	18402.500	13892.300

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Sales Turnover [including other income]	24891.600	20433.300	18074.000
Profit/(Loss) Before Tax	6701.300	6096.000	4987.200
Provision for Taxation	1464.700	1807.300	1424.500
Profit/(Loss) After Tax	5236.600	4288.700	3562.700
Export Value	0.000	6.608	NA
Import Value	321.915	154.934	NA
Total Expenditure	18190.300	14337.300	13086.800

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	30.06.2006	30.06.2006	30.12.2006
Sales Turnover	7213.300	7693.300	7472.000
Other Income	162.500	168.500	205.100
Total Income	7375.800	7861.800	7677.100
Total Expenditure	5052.900	5172.700	5248.700
Operating Profit	2322.900	2689.100	2428.400
Interest	0.000	0.000	0.000
Gross Profit	2322.900	2689.100	2428.400
Depreciation	222.800	232.400	241.700
Tax	413.600	515.100	488.300
Reported PAT	1663.300	1893.400	1656.400

200606 Quarter 1

Notes

Expenditure Includes Staff Cost Rs 81.90 million Other Expenditure - Rail Freight Expenses Rs 4084.60 million - Others Rs 886.00 million Tax Includes Provision for Current Tax (Including FBT) Rs 413.60 million Deferred Tax Rs 23.20 million Prior Period Adjustment Include income /Expenses EPS is Basic & Diluted Status of Investor Complaints for the quarter ended June 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 04 Complaints disposed off during the quarter 04 Complaints unresolved at the end of the quarter Nil 1. The above results were reviewed by the Audit committee and taken on record by the Board of Director, of the Company in its meeting held on July 21, 2006. 2. The Board of Directors in their meeting held on June 15, 2006 recommended final dividend of 80% (Rs 8 per equity share) amounting to Rs 519.90 million for the year 2005-06, which is subject to the approval of the shareholders. This is in addition to two interim dividends of 75% (Rs 7.50 per share) and 25% (Rs 2.50 per share) already paid subject to approval / ratification by the shareholders. 3. a. Tax provision for the period is after considering tax, deduction of Rs 272.50 million, available under section 80-IA of the Income Tax Act, 1961 in respect of new inland ports & rail system set up by the Company on or after April 01, 2001. b. During FY 05-06, the Assessing Officer disallowed claim of the Company under section 80-IA of the Income Tax Act, 1961 for the assessment year 2003-04 & 2004-05 & has raised demands for tax and interest amounting to 212.30 million and 438.10 million respectively. The Company has filed appeals against the said assessment orders before CIT (Appeals) and has paid the demands under protest. 4. The auditor’s qualifications on the account, for the year ended March 31, 2006 are being replied to in the Directors' Report. These qualifications have no material impact on the accounts for the quarter ended June 30, 2006. 5. Previous Period's figures have been recast / regrouped / rearranged wherever considered necessary to conform to this quarter classification.

200609 Quarter 2

Notes

Expenditure Includes Staff Cost Rs 86.40 million Other Expenditure - Rail Freight Expenses Rs 4238.60 million - Others Rs 846.10 million Tax Includes Provision for Current Tax (Including FBT) Rs 515.10 million Deferred Tax Rs 48.20 million Prior Period Adjustment Include income /Expenses EPS is Basic & Diluted Status of Investor Complaints for the quarter ended September 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 02 Complaints disposed off during the quarter 02 Complaints unresolved at the end of the quarter Nil 1. The above results were taken on record by the Board of Directors of the Company in its meeting held on October 13, 2006. 2. During the current quarter, the Company has paid a final dividend of Rs 8 per equity share (face value of Rs 10 per Share) amounting to Rs 519.90 million for the FY 2005-06. This was in addition to two interim dividends of Rs 7.50 per equity share and Rs 2.50 per equity share respectively paid for the FY 2005-06. 3. (a) Tax provision for the period is after considering tax deduction of Rs 538.70 million, available under Section 80-IA of the Income Tax Act, 1961 in respect of new inland ports and rail systems set up by the Company on or after April 01, 2001. (b) During FY 05-06, the Assessing Officer disallowed claim of the Company under section 80- IA of the Income Tax Act 1961 for the Assessment Year 2003-04 & 2004-05 & has raised demands of tax and interest amounting to Rs 212.30 Million and 438.10 million respectively. The Company has filed appeal against the said assessment orders before CIT (Appeals) and has paid the demands under protest. 4. The auditor’s qualifications on the accounts for the year ended March 31, 2006, have been replied to in the Directors Report of F.Y. 2005-06. These qualifications have no material impact on the account for the quarter / period ended September 30, 2006. 5. Previous Period's figures have been recast / regrouped / rearranged, wherever considered necessary to conform to this quarter's classification.

200612 Quarter 3

Notes

Expenditure Includes Staff Cost Rs 83.40 million Other Expenditure - Rail Freight Expenses Rs 4225.90 million - Others Rs 938.80 million Tax Includes Provision for Current Tax (Including FBT) Rs 488.30 million Deferred Tax Rs 42.00 million Prior Period Adjustment Include income /Expenses EPS is Basic & Diluted Status of Investor Complaints for the quarter ended December 31, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 05 Complaints disposed off during the quarter 05 Complaints unresolved at the end of the quarter Nil 1. The above results were taken on record by the Board of Directors of the Company in its meeting held on January 15, 2007. 2. The Board of Directors has declared an interim dividend of Rs 11/- per Equity Share (face value of Rs 10 per share) amounting to Rs 714.90 million. 3. (a) Tax provision for the period is after considering tax deduction of Rs 748.10 million, available under section 80-IA of the Income Tax Act, 1961 in respect of new inland ports & rail system set up by the Company on or after April 01, 2001. (b) During FY 05-06, the Assessing Officer disallowed claim of the Company under section 80-IA of the Income Tax Act, 1961 for the assessment year 2003-04 & 2004-05 & has raised demands of tax and interest amounting to Rs 212.30 million and Rs 438.10 million respectively. The company has filed appeals against the said assessment orders before CIT (Appeals) and has paid the demands under protest. 4. The auditor’s qualifications on the accounts for the year ended March 31, 2006 have been replied to in the Directors Report of F.Y. 2005-06. These qualifications have no material impact on the accounts for the quarter / period ended December 31, 2006. 5. Previous Periods figures have been recast / regrouped / rearranged wherever considered necessary to conform to this quarter classification.

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Debt-Equity Ratio	0.00	0.01	0.01
Long Term Debt-Equity Ratio	0.00	0.01	0.01
Current Ratio	1.68	1.67	1.71
TURNOVER RATIOS
Fixed Assets	1.46	1.46	1.62
Inventory	600.04	630.37	643.95
Debtors	341.50	346.68	249.92
Interest Cover Ratio	1862.47	1487.83	1512.27
Operating Profit Margin(%)	30.98	33.91	31.42
Profit Before Interest And Tax Margin(%)	27.56	30.58	28.28
Cash Profit Margin(%)	24.94	24.84	23.32
Adjusted Net Profit Margin(%)	21.52	21.50	20.19
Return On Capital Employed(%)	35.28	39.37	39.84
Return On Net Worth(%)	27.63	27.88	28.75

STOCK PRICES

Face Value	Rs.10.00/-
High	Rs.2003.00/-
Low	Rs.1980.25/-

LOCAL AGENCY FURTHER INFORMATION

Company’s fixed assets include Freehold Land, Leasehold Land, Buildings, Railway Sliding, Plant and Machinery, Containers, Electrical Fittings, Computers, Furniture and Fixtures, Office Equipments, Telephone Systems, Air Conditioner, Vehicles and Capital Expenditure.

FINANCIAL HIGHLIGHTS

The operating turnover of the company has registered a growth of 22% during the year under review, increasing from Rs. 19951.2 millions in the previous year to Rs. 2433.16 millions.

Total expenditure has increased in line with the growth in income by 27%. After adjusting for the expenditure of Rs. 18190.3 millions as compared to Rs. 14337.3 millions in the previous year, the profit before tax works out to Rs. 6701.3 millions, which shows a growth of 10%. After making provisions for income tax, prior period/tax adjustments, the net profit available for appropriations stands at Rs.5258 millions, which is a growth in net profit of 22.68%. Increase in Profit After Tax (PAT) is due to better operating margin and increase in amount of tax deduction availed by the company under Section 80IAof Income Tax Act.

CAPITAL STRUCTURE

There is no change in the capital structure, with the Government of India continuing to hold 63.09% of the shares, the balance 36.91 % being held by the public.

LISTING AND DEMATERIALIZATION OF CONCOR'S SHARES

Subject's shares are listed with the bourses i.e. Mumbai and National Stock Exchanges. The listing fees of all these stock exchanges have been paid. The Company's shares have been voluntarily de-listed from The Delhi Stock Exchange Association w.e.f. January 2, 2006. To facilitate dematerialization of shares by its shareholders, subject has signed agreements with both the Depositories (NSDL & CDSL). As per SEBI guidelines, subject's shares have been placed under 'Compulsory Demat Mode'. Out of 2,39,91,496 shares listed on the Stock Exchange, 2,39,89,317 shares were in demat mode as on 31 st March, 2006.

WORLD BANK LOAN

The amount of World Bank loan outstanding in the beginning of the year was Rs. 10.60 Millions, during the year the entire loan has been prepaid.

CAPITAL EXPENDITURE

Capital expenditure of Rs.270 millions approx. was incurred mainly on development of terminals, acquisition of wagons and handling equipment.

HIGH SPEED WAGONS

During the year, 510 high speed wagons were added to the existing fleet of CONCOR owned wagons, increasing the holding of high speed wagons to 5,112.

An order for 270 high speed wagons was also placed during the year.

CONTAINERS

The container fleet (owned and leased) as on 31.03.2006 was 11745 Containers.

CONTAINER HANDLING EQUIPMENT

During the year, 4 Rubber Tyred Gantry Cranes 2 for ICD/TKD and 2 for ICD/ Dhandari Kalan (Ludhiana) were received and commissioned.

INFORMATION TECHNOLOGY

The company made further progress in the field of Information Technology. The VSAT based network have been extended and now it covers 54 locations. The Terminal Management System for domestic i.e. DTMS and for EXIM i.e. ETMS, ERP for ORACLE Financial and HR Payroll implemented on centralized architecture are running smoothly across field locations / Regional offices and Corporate office. The Web enabled system through a. web server is running successfully providing queries to the customers. A customer feedback system have been implemented on their website. This has enabled us to constantly evaluate their performance and take corrective action on complaints and feedback. An e-filing on Commercial system (CCLS) at TKD have been introduced which enables the customers to file their documents electronically.

With the considerable advances in IT front, the Company has been in the forefront of technology, which

is being used to enhance efficiency, cost competitiveness and customer satisfaction.

NEW VENTURES

The Strategy of expanding horizons of business by diversifying in allied areas by way of strategic alliances and Joint Ventures was continued and pursued with full vigor. Important events are mentioned underneath:

Ø CMACGM Logistic Park Private Limited is a Joint Venture at ICD Dadri with M/s. CMACGM Global India Private Limited for which construction work is in full swing. It will be operational shortly.

Ø Fresh & Healthy Enterprises Limited has been incorporated as a Subsidiary Company of subject on 1st Feb., 2006 to implement Cold Chain Project in a phased manner.

Ø HALCON air cargo complex is coming up at Nasik. It is a joint Venture with Hindustan Aeronautics Ltd. The construction work is in progress.

Subject is a 100% subsidiary under the Railway Ministry. Incorporated in 1988, Subject enjoys monopoly in handling the import and export of nation's trade in containers through rail route. It has a network of inland container depots (ICDs) all over the country. The company has 10874 TEUs owned and leased containers. Subject was set up to market piecemeal, non-bulk general goods and parcels traffic, duly aggregating it for unit train operation on specific routes. The three selected corridors namely Delhi-Bombay, Delhi-Jawaharlal Nehru Port (JNPT) and Delhi-Madras, account for around 50% of the total export traffic transported by the company. 

The Company has 45 numbers of Inland Container Depots (ICDs) and 8 numbers of Domestic Container Terminal as on 31.03.2005. 

In 1992-93, the company achieved the first ever movement of refrigerated cargo containers by rail. Subject introduced this service to give a boost to export frozen and chilled products. During the same period, it diversified its activities by entering into consultancy management sector. In 1993-94, in order to provide assured services to shipping lines and shippers, it entered into an agreement with the Railways, guaranteeing transit times of container trains in selected corridors on scheduled paths. 

Subject was registered as a Multi-modal Transport Operator (MTO) in 1994-95. Government holding was diluted to the extent of 23% in the same year. In 1995-96, it entered the Indo-Nepal trade by commissioning a container terminal at Raxaul on the Indo-Nepal border.

In Jan.1997, the 'CONTRACK' services were launched offering movement of piecemeal domestic cargo in containers through specialized, scheduled and reliable container-rail services. 

The Tranche-I order for procurement of 1725 modern design high speed container flat wagons is under execution. A total of 1500 wagons have been recieved. The Government of India has granted enhanced autonomy and delegation of powers to SUBJECT by declaring it a Category-I 'Mini Ratna Company'.  

During 2004-05 the company has increased the existing Concor fleet of wagons by 1435 additional high speed wagons increasing the holding of high speed wagons to 4606. Further the company has commissioned four Rubber Tyred Gantry Cranes (RTG's), two at ICD/Dadri and other two at ICD/ Dandharikalan (Ludhiana). 

Star Track Terminal Private Limited, a joint venture company formed with Maersk last year for CFS construction in Dadri was made operational in February 2005. Further the other two joint ventures with Transworld Group of companies and APL for the construction of CFSs in Dadri will be commissioned by 2005-06. A new joint venture with CMA-CGM, a French line for the construction work at ICD Dadri will commence its construction work in 2005. A joint venture with Dubai Ports International for participation in Management of Rajiv Gandhi Terminal and International Container Trans shipment Terminal at Cochin port for which the negotiation with them were brought to final stages. A joint venture for Management and operations of Rail Container Terminal in Birgunj (Nepal) was also finalized in form of M/s Himalayan Terminals and its was commissioned during July 2004.

Gateway Terminal India (Private) Limited, a joint venture company of Maersk and the company formed for the construction of 3rd container terminal at JN Port has commenced its construction work and likely to be commissioned by 2005-06. Further some of the other port projects in offing are the projects for Chennai Second berth, Ennore, Kandla and Mumbai and also setting up of Second Container Terminal at Tuticorin. In the hinterland, a majore significant change was in respect of Garhi Harsaru ICD which was bought over by Gateway Distripark Limited who, with this facility, will enter hinterland operations for the first time.

Website Details :

CONCOR - The Multimodal Logistics Professionals

Ever since globalization transformed the transport sector, national boundaries have become permeable to penetration by trade, creating the need for flexible transport solutions. Inter modalism and containerization were the by-products of this era and were poised to meta morphosize transport of "general cargo", moving it 'seamlessly' through sea and land arteries. Forty years ago, the physical process of exporting or importing goods was arduous. Goods needed to be transported by lorry to the port, unloaded into a warehouse and then reloaded into the ship 'piece by piece'.

Malcolm McLean's idea of containerization changed the basics of cargo transport by standardizing the dimensions of the container and simultaneously improving the productivity of ports by mechanizing handling of container-carrying 'cellular' ships and reducing their handling to a few hours only. Unitisation helped elimination of multiple handling of cargo and made transfers quick, cheap and easy. As containerization came to stand for 'cargo care', it grew by leaps and bounds the world over.

Indian Railway's strategic initiative to containerize cargo transport put India on the multi-modal map for the first time in 1966. Given the continental distances in India (almost 3000 km from North to South and East to West), rail transport could be the cheaper option for all cargo over medium and long distances, especially if the cost of inter-modal transfers could be reduced. Containerized multi-modal door-to-door transport provided the ideal solution to this problem. It was this idea that saw the Indian Railways entering the market for moving door-to-door domestic cargo in special DSO containers starting in 1966.

Though the first ISO marine container had been handled in India at Cochin as early as 1973, it was in 1981 that the first ISO container was moved inland by the Indian Railways to India's first Inland Container Depot (ICD) at Bangalore, also managed by the Indian Railways.

Expansion of the network to 7 ICDs by 1988 saw increase in the handling of containers, and along the way, a strong view had emerged that there was a need to set up a separate pro-active organization for promoting and managing the growth of containerization in India.

Subject was incorporated in March 1988 under the Companies Act, and commenced operation from November 1989 taking over the existing network of 7 ICDs from the Indian Railways.

The company was set up with the objective of developing multi modal logistics support for India's International and Domestic containerized cargo and trade. The task was to provide customers with the advantages of direct interaction and door to door services that formed the backbone of road transport, while capitalizing on the robust and more economical option of rail movement on the Indian Railways network.

Subject currently provides the only means by which shippers may obtain containerized freight transportation by rail in India. Though rail is the mainstay of their transportation plan, road services are also provided according to market demand and operational exigencies. Subject also operates container terminals across the country to cater to the needs of the trade, whether in the EX-IM or the domestic business.

Subject's main strengths can be characterized as

Ø Its ability to provide modal choice (road or rail or air) according to the needs of the shipper and lead from the port;

Ø Its strong relationship with Indian Railways coupled with an MoU providing for guaranteed transits on 'liner corridors';

Ø The 'right of way' available to its 'carrier' Indian Railways, where road is plagued by poor physical infrastructure and incessant waits at check posts;

Ø A dedicated network of state-of-the-art terminals across the country to capture traffic at the production / consumption centres;

Ø A distinct cost advantage offered by SUBJECT CFSs to users by virtue of their location in the ICD premises (which eliminates multiple handling and transportation); and

Ø Excellent manpower resource: Professional management team, experts trained in multimodal logistics, lean manpower.

Share Holding Pattern as on 30/09/2006

(I) (a) Statement showing Shareholding Pattern

Category	Category shareholder	Number of shareholders	Total number of shares	Number of shares held in dematerialized form	Total shareholding as a percentage of total number of shares
					As a percentage of (A+B)	As a percentage of (A+B+C)
(A)	Shareholding of Promoter and Promoter Group
(1)	Indian
(b)	Central Government/ State Government(s)	9	40999901		63.085	63.085
	Sub – Total (A) (1)	9	40999901		63.085	63.085
(2)	Foreign
	Total shareholding of Promoter and Promoter Group (A) = (A) (1) + (A) (2)	9	40999901		63.085	63.085
(B)	Public shareholding
(1)	Institutions
(a)	Mutual Funds/ UTI	39	3851321	3851321	5.926	5.926
(b)	Financial Institutions/ Banks	10	1384248	1384248	2.130	2.130
(f)	Foreign Institutional Investors	78	16627826	16627826	25.585	25.585
	Sub – Total (B) (1)	127	21863395	21863395	33.640	33.640
(2)	Non-Institutions
(a)	Bodies Corporate	342	836573	836473	1.287	1.287
(b)	Individuals – i. Individual shareholders holding nominal share capital up to Rs. 1 Lakh ii. Individual shareholders holding nominal share capital in excess of Rs. 1 Lakh	4146 20	544554 715889	542271 715889	.838 1.102	.838 1.102
(c)	Any other (specify) (1) NRI (2) Trust	127 3	29485 1600	29485 1600	.045 .002	.045 .002
	Sub - Total (B) (2)	4638	2128101	2125718	3.274	3.274
	Total Public Shareholding (B) = (B) (1) + (B) (2)	4765	23991496	23989113	36.915	36.915
	TOTAL (A) + (B)	4774	64991397	23989113	100	100
	GRAND TOTAL (A) + (B) + (C)	4774	64991397	23989113	100	100

Statement showing shareholding of persons belonging to the category “Promoter and Promoter Group

Central Govt./State Govt.(s)
1.	President of India and on behalf of President of India (Govt. of India)	40999901	63.085
	TOTAL	40999901	63.085

Annexure-I     

Statement showing shareholding of persons belonging to the category “ Public” holding more than 1% of the total number of shares

Sr. No.	Name of the shareholder	Number of shares	Shares as a percentage of total number of shares indicated in Statement above
Foreign Institutional Investors: FII (Mauritius Based)
1.	Aberdeen Asset Managers Limited A/C Aberdeen International India Opportunities Fund (Mauritius) Limited	1603000	2.466
2.	Genesis Indian Investment Company Limited.-General sub Fund	3970200	6.109
Foreign Institutional Investors: FII (Other)
1.	Comgest SA A/C Magellan	825000	1.269
2.	Smallcap World Fund Inc	2891794	4.450
	TOTAL	9289994	14.294

CMT REPORT [Corruption, Money laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No 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.44.06
UK Pound	1	Rs.86.34
Euro	1	Rs.57.46

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	9
--CREDIT LINES	1~10	9
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		69

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions