MIRA INFORM REPORT
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Report Date : |
19.01.2007 |
IDENTIFICATION DETAILS
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Name : |
ADANI ENTERPRISES LIMITED |
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Formerly Known as : |
ADANI EXPORTS LIMITED |
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Registered Office : |
“Adani
House”, Shrimali Society, Mithakhali Six Road, Navrangpura, Ahmedabad – 380
009, Gujarat, India |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
03.03.1993 |
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Com. Reg. No.: |
04-19067 |
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CIN No.: [Company Identification No.] |
L51100GJ1993PLC019067 |
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TAN No.: [Tax Deduction & Collection Account No.] |
AHMA01099A |
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PAN No.: [Permanent Account No.] |
AABCA2804L |
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Legal Form : |
A
public limited liability company. The
company’s shares are listed on the Stock Exchanges |
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Line of Business : |
Exporters
of Frozen Foods, Dyes and Intermediates, Plastic Products, Agricultural
Products, Precious Items, Tea, Coffee, Castor Oil and Seed, Textile Products,
Marine Items and other Agro Products.
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RATING & COMMENTS
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MIRA’s Rating : |
A |
RATING
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STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 30000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject
is controlled and financed by Adani family. The company is a Government
Recognized Star Trading House having fine track of performance and financial
status. Available information indicates high financial responsibility of the
company. Payments are as per commitments. The
company can be considered normal for business dealings at usual trade terms
and conditions. |
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LOCATIONS
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Registered Office : |
“Adani
House”, Shrimali Society, Mithakhali Six Road, Navrangpura, Ahmedabad – 380
009, Gujarat, India |
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Tel. No.: |
91-79-25555555/26565555 |
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Fax No.: |
91-79-26565500 |
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E-Mail : |
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Website : |
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Head Office : |
Located at : Ahmedabad |
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Branches : |
Located at : Mumbai, Delhi, Kolkata,
Chennai, Mundra, Vadodara, Surat, Goa, Belekari, Banglore, Indore,
Coimbatore, Jamshedpur, Joda Barbil (Orissa) |
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Domestic Offices : |
Eagle's Flight Tel. : 91-22–26836969 121,Maker Chamber III, 12th
Floor, Nariman point, Mumbai-400001 Tel. : 91-22–22852140 C – 105, Anandniketan, New
Delhi – 110021 Tel. : 91-11–24112415 / 16 (Energy & Mineral) Tel.: 91-11-26159124-28 79,2nd, Floor, Bigbell
Complex, 106, D. B. Road, R. S. Puram, Tel. : 91-422–2554732 T - 4, Third Floor, Swastik
Manandi Arcade, S.C. Road, Shashadrepuram, Bangalore - 20 Tel. : 91-80-2196056 Plot No. 7, Sector 12,
Nr.Ambica Weighbridge, National Highway, Tel. : 91-2836-252535 |
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International Offices : |
ADANI GLOBAL FZE.
Tel. : 9714-3555484 (8
lines) ADANI GLOBAL PTE LIMITED
Tel. : 65–6–2252070 ADANI GLOBAL PTE LIMITED
Tel.: 62-21-8307406 ADANI VIRGINIA INC. 4300 Buell St, Chesapeake,
Virginia-23324, USA |
DIRECTORS
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Name : |
Mr. Gautam S. Adani |
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Designation : |
Chairman |
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Name : |
Mr. Rajesh S. Adani |
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Designation : |
Managing Director |
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Name : |
Mr. Vasant S. Adani |
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Designation : |
Wholetime Director |
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Name : |
Mr. Jay H. Shah |
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Designation : |
Director |
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Name : |
Dr. Pravin P. Shah |
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Designation : |
Director |
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Name : |
Mr. C. R. Shah |
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Designation : |
Director |
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Name : |
Dr. A. C. Shah |
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Designation : |
Director |
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Name : |
Mr. Biswajit Choudhuri |
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Designation : |
Director |
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Other personnel |
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Name : |
Mrs. Birva C. Patel |
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Designation : |
Company Secretary [w.e.f.
10.07.2003] |
KEY EXECUTIVES
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Name: |
Mr.
Gautam S. Adani |
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Designation: |
Chairman |
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Age: |
42
years |
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Qualification: |
S.Y.
B.Com. |
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Date of Joining: |
1st
December, 1993 |
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Previous Employment: |
Business |
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Name: |
Mr.
Rajesh S. Adani |
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Designation: |
Managing
Director |
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Age: : |
40
years |
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Qualification: |
B.
Com. |
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Date of Joining: |
1st
December, 1993 |
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Previous Employment: |
Business |
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Name: |
Mr.
Vasant S. Adani |
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Designation: |
Wholetime
Director |
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Age: |
49
years |
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Qualification: |
B.A. |
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Date of Joining: |
1st
July, 1995 |
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Previous Employment: |
Business |
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Name: |
Mr.
Pradeep Mittal |
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Designation: |
President
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Age: |
50
years |
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Qualification: |
Diploma
in Marketing |
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Date of Joining: |
1st
January, 1998 |
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Previous Employment: |
Karamchand
Thapar and Brothers [C.S.] Limited – Chief General Manager |
MAJOR SHAREHOLDERS
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Names of Shareholders |
Percentage of Holding |
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Indian Promoters |
55.40 |
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Mutual Funds & UTI |
20.56 |
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Any other (Shares in
transit) |
0.07 |
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Private Corporate Bodies |
1.28 |
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NRIs/OCBs |
0.24 |
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Banks, Financial
Institutions and Insurance Companies |
20.38 |
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Other
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2.07 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Exporters
of Frozen Foods, Dyes and Intermediates, Plastic Products, Agricultural
Products, Precious Items, Tea, Coffee, Castor Oil and Seed, Textile Products,
Marine Items and other Agro Products.
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GENERAL INFORMATION
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Bankers : |
v
State Bank of India,
Ahmedabad, Gujarat, India v
Bank of India,
Ahmedabad, Gujarat, India v
Sumitomo Mitsui
Banking Corporation, Ahmedabad, Gujarat, India v
State Bank of
Travancore, Ahmedabad, Gujarat, India v
Development Credit
Bank Limited, Ahmedabad, Gujarat, India v
Societe Generale,
Ahmedabad, Gujarat, India v
State Bank of
Hyderabad, Ahmedabad, Gujarat, India v
The Jammu &
Kashmir Bank Limited, Ahmedabad, Gujarat, India v
State Bank of
Saurashtra, Ahmedabad, Gujarat, India v
Bank of Baroda,
Ahmedabad, Gujarat, India v
Punjab National Bank,
Ahmedabad, Gujarat, India v
Andhra Bank,
Ahmedabad, Gujarat, India v
IndusInd Bank Limited,
Ahmedabad, Gujarat, India v
Abu Dhabi Commercial
Bank Limited, Ahmedabad, Gujarat, India v
Canara Bank,
Ahmedabad, Gujarat, India v
UCO Bank, Ahmedabad,
Gujarat v
Syndicate Bank,
Ahmedabad, Gujarat v
Oriental Bank of
Commerce, Ahmedabad, Gujarat v
ICICI Bank Limited v
Standard Chartered
Bank, Mumbai v
Allahabad Bank,
Ahmedabad |
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Facilities : |
Above facilities are secured by Second Charge : Hypothecation over whole of the current assets of
the Company by way of second charge. Equitable Mortgage over certain immovable
properties belonging to the Company by way of second charge. Equitable Mortgage over certain immovable
properties belonging to Adani Properties Private Limited by way of second
charge. Guaranteed by some of the Directors and their
relatives in their personal capacity. Pledge of equity shares of some of the promoters
and their relatives. Above facilities are secured by : Hypothecation of the stocks and book debts by way
of first charge ranking pari-passu among the Banks and also by way of second
charge. Hypothecation of furniture & fixtures at
Corporate House Guargaon. Tangible movable properties ranking pari-passu
among the Banks. Guaranteed by some of the Directors in their
personal capacity. Pledge of 1,00,00,000 equity shares of Gujarat
Adani Port Limited. Held by an associate Company at an agreed value of
Rs.80/- each Pledge of 4,25,00,000 equity shares of Gujarat
Adani Port Limited, held by an associate Company. Further secured by creation of Equitable Mortgage
: Over certain immovable properties belonging to
the Company. Over certain immovable properties belonging to
Adani Properties Private Limited. The above debentures are secured by: Hypothecation on movable properties belonging to
the Company situated at Dist: Belekeri, Karnataka. Equitable Mortgage over an immovable property
belonging to the Company. Pledge of shares of some of the promoters and
their relatives The OFCD holders shall have an option to convert
the OFCDs into Equity Shares of the Company at the Conversion Price i.e. Rs
67.49 on the exercise date. The conversion option shall be exercised by the
OFCD holder between 12th and 15th month from the date
of allotment. i. e. 26.08.2005. If the option of conversion is not exercised
then the OFCDs shall be redeemed in three equal annual installments at the
end of third, fourth and fifth year from the date of allotment. Vehicles loans are secured by hypothecation of
respective vehicles. Home loans are secured
by hypothecation of respective property.
In the case of FCCB , the bondholders have an
option of conversion into Equity Shares at the rate of Rs.67/- per share at
any time after 08.11.2004 and upto 23.10.2009. Further, the Company has an
option of redemption of these bonds at any time on or after 24.10. 2007,
subject to certain conditions Above
loans from FinanciP1 Institutions/ Banks are
secured by Demand Promissory Note and/or Pledge shares of some of the
Promoters and their relatives and guaranteed by some the Directors in their
personal capacity. |
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Banking Relations : |
Good |
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Auditors : |
Dharmesh Parikh &
Company Chartered Accountants Ahmedabad,
Gujarat |
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Associates : |
Adani
Wilmar Limited "Fortune
House" Near
Navrangpura Railway Crossing, Ahmedabad
- 380 009, Gujarat Tel: 91-79-25555863 Mobile/Cellular: 91-98795 93555
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Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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30,000,000 |
Equity Shares |
Rs.10/- each |
Rs. 300.000
millions |
|
70,000,000 |
Preference Shares |
Rs.10/- each |
Rs. 700.000
millions |
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Rs.1000.000 millions |
Issued, Subscribed
& Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
226190007 |
Equity
Shares |
Rs.10/- each |
Rs. 226.200 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES
OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS
FUNDS |
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|
1]
Share Capital |
226.200 |
225.500 |
320.474 |
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2]
Reserves & Surplus |
7478.100 |
6547.200 |
5916.726 |
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NETWORTH |
7704.300 |
6772.700 |
6237.200 |
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LOAN
FUNDS |
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1]
Secured Loans |
8722.200 |
3827.300 |
5763.000 |
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2]
Unsecured Loans |
4475.000 |
4566.000 |
862.400 |
TOTAL BORROWING
|
13197.200 |
8393.300 |
6625.400 |
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Deferred
Tax Liability |
86.500 |
78.400 |
42.700 |
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TOTAL
|
20988.000 |
15244.400 |
12905.300 |
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APPLICATION
OF FUNDS |
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FIXED
ASSETS [Net Block] |
672.300 |
497.100 |
336.100 |
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Capital
work-in-progress |
109.000 |
64.500 |
24.000 |
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Deferred
Tax Assets |
19.300 |
14.700 |
14.700 |
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INVESTMENTS |
1929.300 |
466.700 |
693.800 |
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CURRENT
ASSETS, LOANS & ADVANCES |
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|
Inventories |
3883.500 |
3231.000 |
2194.700 |
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Sundry
Debtors |
22439.400 |
21403.700 |
14538.100 |
|
Cash
& Bank Balances |
5888.600 |
4793.800 |
1996.300 |
|
Loans
& Advances |
5450.800 |
3303.600 |
2147.800 |
|
Total
Current Assets |
37662.300 |
32732.100 |
20876.900 |
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Less
: |
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|
|
Current Liabilities |
18651.300 |
18189.300 |
8872.600 |
Provisions
|
752.900 |
370.000 |
176.800 |
Total Current Liability
|
19404.200 |
18559.300 |
9049.400 |
|
Net Current Assets |
18258.100 |
14172.800 |
11827.500 |
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Miscellaneous
Expenditures |
0.000 |
28.600 |
9.200 |
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TOTAL
|
20988.000 |
15244.400 |
12905.300 |
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
93392.600 |
135188.700 |
71553.300 |
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Profit/(Loss) Before Tax
|
1564.500 |
1306.200 |
1261.400 |
Provision for Taxation
|
381.100 |
223.300 |
20.500 |
Profit/(Loss) After Tax
|
1183.400 |
1082.900 |
1240.900 |
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Export Value
|
26296.000 |
108091.900 |
48436.700 |
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Import Value
|
37615.000 |
90299.400 |
19671.200 |
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Total Expenditure
|
91972.200 |
133896.000 |
70301.800 |
QUARTERLY
|
Particulars |
|
30.06.2006 (1st Quarter) |
30.09.2006 (2nd Quarter) |
|
Sales Turnover |
|
16917.100 |
24087.1 |
|
Other Income |
|
0.100 |
06.4 |
|
Total Income |
|
16917.200 |
24093.5 |
|
Total Expenditure |
|
16190.900 |
23318.9 |
|
Operating Profit |
|
726.300 |
774.6 |
|
Interest |
|
404.600 |
496.0 |
|
Gross Profit |
|
321.700 |
278.6 |
|
Depreciation |
|
10.000 |
10.0 |
|
Tax |
|
63.600 |
41.8 |
|
Reported PAT |
|
248.100 |
226.8 |
200606 Quarter
1 -
EPS is Basic
Status of Investor Complaints for the quarter ended 30.06. 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 have been reviewed by the
Audit Committee and taken on record by the Board of Directors at their meeting
held on 29.07.2006. 2. The Statutory Auditors of the Company have carried out limited
review of the financial results of the Company for the quarter ended on 30.06.
2006. 3.The Company is a global trading organization with operations covering a
wide range of commodities like Agro, Energy, Precious goods and others. In view
of its integrated nature of business, it is necessary to view the business in
its entirety and therefore, there are no separate segments within the Company
as defined by Accounting Standard 17 (Segmental Reporting) issued by the ICAI.
4. Previous year figures have been regrouped wherever found necessary. 5. The
increase in financial charges are on account of increase in the rate of
interest and also reduction in the interest income. 6. The reduction in other
expenditure is due to change in product mix. 7. During the period, 915 Foreign
Currency Convertible Bonds have been converted into 6263251 equity shares of Re
1/- each, as a result paid-up share capital of the Company has increased to
Rs.232.50 million.
200609 Quarter 2
Expenditure
Includes (Increase)/Decrease in stock in Trade Rs.8.30 million Purchase of
Traded Goods (including Consumption of Raw Material) Rs.22575.10 million Staff
Cost Rs.99.50 million Other expenditure Rs.628.20 million Tax includes
Provision for Current tax Rs.37.50 million Fringe Benefit Tax Rs.4.30 million
Prior period Items includes Prior period adjustments (net) Rs (7.80) million
EPS is Basic 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 Nil Complaints disposed off during the quarter Nil
Complaints unresolved at the end of the quarter Nil 1. The above results have
been reviewed by the Audit Committee and taken on record by the Board of
Directors at their meeting held on October 19, 2006. 2. The Statutory Auditors
of the Company have carried out limited review of the financial results of the
Company for the quarter ended on September 30, 2006. 3. The Company is a global
trading organization with operations covering a wide range of commodities like
Agro, Energy, Precious goods and others. In view of its integrated nature of
business, it is necessary to view the business in its entirety and therefore,
there are no separate segments within the Company as defined by Accounting Standard
17 (Segmental Reporting) issued by the ICAI. 4. Previous year figures have been
regrouped wherever found necessary. 5. The increase in financial charges are on
account of increase in the rate of interest and also reduction in the interest
income. 6. Pursuant to the fresh certificate of incorporation consequent upon
change of name issued by the Registrar of the Companies, Gujarat under section
23(1) of the Companies Act 1956 the name of the Company has been changed from
Adani Exports Limited to Adani Enterprises Limited.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt
Equity Ratio |
1.49 |
0.92 |
0.92 |
|
Long
Term Debt Equity Ratio |
1.24 |
0.74 |
0.38 |
|
Current
Ratio |
1.69 |
1.68 |
1.67 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
130.50 |
257.80 |
157.83 |
|
Inventory
|
26.24 |
49.78 |
46.14 |
|
Debtors |
4.26 |
8.23 |
5.57 |
|
Interest
Cover Ratio |
1.36 |
1.61 |
1.51 |
|
Operating
Profit Margin (%) |
6.30 |
2.55 |
2.33 |
|
Profit
Before Interest and Tax Margin (%) |
6.27 |
2.54 |
2.30 |
|
Cash
Profit Margin (%) |
1.30 |
0.82 |
0.79 |
|
Adjusted
Net Profit Margin (%) |
1.27 |
0.80 |
0.77 |
|
Return
on Capital Employed (%) |
32.47 |
27.56 |
13.97 |
|
Return
on Net Worth (%) |
16.35 |
16.75 |
8.92 |
STOCK PRICES
|
Face Value |
Rs.10/-
|
|
High |
Rs.
143.50/- |
|
Low |
Rs.
140.50/- |
LOCAL AGENCY FURTHER INFORMATION
History
Subject
was originally incorporated in the year 1988 as a partnership concern under the
name and style of Adani Exports. It was
converted into a joint stock company with a paid up capital of Rs.10 million on
02.03.1993. On 01.04.1993, the company
was accorded the status of Star Trading House.
The
company has two subsidiaries.
Ř
Adani Ports Limited
Ř
Adani Chemical
Limited.
Once
the port is set up by the Adani Ports Limited, the company plans to float Adani
Power, Adani Minerals, Adani Shipping and Adani Infrastructure.
The
company enters into contracts with various suppliers and manufacturers, to
export their produce under its name. It
is entitled to advance for export commitments fulfilled. It then sells these licences in the open
market and shares export incentives with supporting suppliers. The portion of
the export incentives retained by it constitutes its income. Under direct exports, the company exports
products like detergents and de-oiled cakes.
It books orders and develops suppliers for any merchandise. The products are then manufactured according
to the specifications of the export order, exported and the proceeds realized.
The
company has signed a Memorandum of Understanding (MOU) with the Orissa
Government to develop Gopalpur port into an all-weather world class port to
handle 6.5 million tones per annum (mtpa) of cargo at a cost of Rs.6500
millions through a joint venture company.
The
company in association with Hyundai of Korea and Pro Majestic Sdn Bhd of
Malaysia is in the process of submitting final bid for 2 x 250 MW imported coal
based power plant to be located at Mundra.
The company also contemplates to enter into energy sector by laying a
distribution network for supply of natural gas through pipeline to industrial,
commercial and domestic sectors covering all major consumption centers of the
state. The company has entered into an
MOU with the Gujarat State Petronet Limited and Petronet LNG Limited for the
utilization of main distribution trunk pipeline.
The company’s shares are
listed on the Stock Exchanges.
The company is a Government
Recognized Golden Super Star Trading House.
The company's identified
groups are as follows :
> Agro Group comprising wheat and rice, castor oil, oilseed
extraction,
sugar
and pulses.
> Energy Group comprising petro-chemicals, oil and
lubricants, coal and
Coke,
fertilizers and raw materials.
> Textiles Group comprising cotton, fabrics, polyesters and
yarns.
> Precious Goods Group comprising jems and jewellery,
diamond, gold and silver
> Strategic Investment Group that promoted Mundra Port,
Edible Oil
Business,
Food & Grocery retail outlets and the call centre.
Generic Name of the Principal
Product / Service of the company is :
Item Code No. |
Product Description |
|
Not Ascertainable |
Merchant Exporters |
The
company ranks amongst the largest and the fastest growing business houses in
India.
Profile
Subject
is the flagship company of The Adani Group and is actively involved in Global
Trading Business.
With
its head office in Ahmedabad, AEL has extended its activities across the globe.
Today, AEL has several branch offices in India and abroad (Singapore, Vietnam,
Dubai, Dhaka, Africa etc.)
It
exports over 40 commodities to over 55 countries.
Core
Competences
The
company’s success in marketplaces around the world is ascribed to a combination
of factors, internal and external.
External factors: Market
forces around the world, undergoing tremendous forces of change and exponential
growth. The group's market analysts have been able to identify potential trade
areas among these markets, and foresee emerging market trends. This has enabled
the group to let no opportunity pass by.
Internal factors: These are the group's core competencies - the service
philosophy, financial stability, risk management expertise, internal process
and IT systems, global network, etc.
The company is today an international
trading house dealing in nearly 40 commodities in more than 55 countries around
the world.
Subject
operates from 14 corporate centers in India. It operates overseas branches in
Dhaka, Dubai, Moscow, Singapore and South Korea, and maintains a long list of
contact offices around the world to provide easy access to its clientele.
Its
chosen product categories are: Agro-products, Coal and Coke Products, Textiles,
Fertilizers and Steel Scrap, Marine Products, Petrochemicals, Petroleum Oil and
Lubricants, etc.
Through
time-conscious delivery, quality-driven process systems, total reliability and
unusual levels of commitment to customer satisfaction, Adani Group has found
great success in marketplaces around the world, and a rock-solid reputation.
All
the above categories operate as separate divisions
The
company’s fixed assets of important value include land, building, plant and
machinery, furniture and fixtures, electric fittings and installations, office
equipments, computer equipments and vehicles.
Performance of
Company
The Company continued to improve its performance on all parameters during the
period. The Company has effectively leveraged its assets, infrastructure and
investments, resulting in improved productivity and performance for the period
under review.
The Company continues to strengthen its pre-eminent position in domestic and
international markets and has significantly grown its operating profits, with a
mixture of topline growth, effective cost management and the right product mix,
resulting in profit after tax of Rs.1183.400 Millions as compared to
Rs.1082.900 Millions of the previous year.
The Company recorded gross sales of Rs.93378.800 Millions as against Rs.135158.400
Millions for the year 2004-2005. The profit before tax showed a growth of 20%
at Rs.1564.500 Millions as against
last year's achievement of Rs.1306.200 Millions.
To Change Name of the Company
The Company's name is a visible symbol to all the stakeholders who
interact with us. The Company has evolved into a diversified entity taking up
new challenges and initiatives. Hence, the Board of Directors of the Company in
their meeting held on 20.05.2006 deliberated on the Company's present name viz.
Adani Exports Limited. and found the same not reflecting the entire spectrum of
its activities.
The Company was incorporated on 02.03.1993 with a primary focus on commodities
and with thrust on exports. Over the years, it expanded its horizons and has
become a large diversified organization. Company's overall business model
comprises of the following SBUs:
Ř
'Energy' Group
Ř
'Agro' Group
Ř
'Metals' Group
Ř
'Real Estate' Group
These SBU's
are structured as division / subsidiaries to ensure value and operational
optimization. The emphasis is also to aggregate businesses under a single value
chain to reap benefits of integrated domain expertise and comprehensive
solutions to customers. The new name Adani Enterprises Limited will clearly
convey the message of business diversity, scale of operations and ruggedness of
the business model to all its stakeholders.
Dividend
Considering the overall performance of the Company, the Directors have
recommended dividend at 45% (Rs.0.45 per share of Re. 1 fully paid-up) for the
year ended 31.03. 2006. This entails a dividend payment of Rs.102.100 Millions.
The dividend distribution tax borne by the Company will amount to Rs.14.300
Millions. The dividend will not suffer tax in the hands of the shareholders.
The final dividend, if approved, will be paid to the members whose names appear
on the Register of Members as on 26.07.2006. 6,50,323 equity shares allotted
during the year upon conversion of 95 Foreign Currency Convertible Bonds
(FCCBs) will be entitled to full dividend.
Corporate
Governance
The Directors are pleased to inform you that the Company has continued to
follow globally recognized and best corporate governance practices. The Company
was short-listed for the second and final round for the purpose of Corporate
Governance Award - 2005 from amongst the Companies of all over India for the
purpose of Corporate Governance Award for the second consecutive year by the
Institute of Company Secretaries of India (ICSI).
The Company has complied with the revised code of corporate governance as
stipulated under Clause 49 of the Listing Agreement with the Stock Exchanges. A
report on Corporate Governance, along with a certificate from the Auditors
confirming the compliance and the Management Discussion and Analysis of the
financial position of the Company, form part of the Annual Report.
Awards and Recognitions
The Company has received the following award s/recognitions/trophies during the
year under review:
1. The Company was short-listed for the second and final round for the purpose
of Corporate Governance Award - 2005 from amongst the Companies of all over
India for the purpose of Corporate Governance Award for the second consecutive
year by the Institute of Company Secretaries of India (ICSI).
2. Golden trophy for the highest exports in Cotton Yarns exports in merchant
export category from the Cotton Textiles Export Promotion Council of India for
the year 2005-2006.
3. Bronze trophy for the third highest exports in synthetic textiles in merchant
export category from the Synthetic and Rayon Textiles Export Promotion Council
of India for the year 2005-2006.
As Per Website Details
Subject
is the flagship company of The Adani Group and is actively involved in the
Global Trading Business.
With
its head office in Ahmedabad, India, AEL has extended its activities across the
globe. Today, AEL has branched out into several offices in India and abroad.
(Singapore, UAE, USA, etc.)
AEL
commenced its operations in 1988, driven by the desire "To become the
leader in trading business. Its trade desks handle a diverse and voluminous
product portfolio with expertise. The product range is organized under the “T.E.A.M.” structure correctly amplifying the required
cohesiveness of a knowledge based and people driven entity. Textiles-denim,
yarn, cotton grey, silk, printed fabric and so on; Energy desk with Coal, Coke,
Iron ore, Petroleum and Petrochemicals; Agriculture products like wheat, rice,
oilseed meal, pulses, groundnuts; Metals desk with products like ferrous scrap
and precious metals comprising of gold and value added diamond business.
The
product portfolio also includes Iron ore, fertilizer raw materials and several
other items. With a long-term vision, the Company is developing minor Port at
Belekeri, North Karnataka to handle iron ore and other bulk cargo.
Products
Subject
is today an international trading house dealing in nearly 40 commodities in
more than 55 countries around the world.
AEL
operates from 14 corporate centers in India. It operates overseas branches in
Dhaka, Dubai, Moscow, Singapore and South Korea, and maintains a long list of
contact offices around the world to provide easy access to its clientele.
Its
chosen product categories are: Agro-products, Coal and Coke Products, Textiles,
Fertilizers and Steel Scrap, Marine Products, Petrochemicals, Petroleum Oil and
Lubricants, etc.
Through
time-conscious delivery, quality-driven process systems, total reliability and
unusual levels of commitment to customer satisfaction, Adani Group has found
great success in marketplaces around the world, and a rock-solid reputation.
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 records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.
4] Record on Financial Crime :
Charges or conviction registered
against subject: None
5] Records on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal Records
No available information exist that suggest that
subject or any of its principals have been formally charged or convicted by a
competent governmental authority for any financial crime or under any formal
investigation by a competent government authority for any violation of
anti-corruption laws or international anti-money laundering laws or standard.
8] Affiliation with Government :
No record exists to suggest that any director or
indirect owners, controlling shareholders, director, officer or employee of the
company is a government official or a family member or close business associate
of a Government official.
9] Compensation Package :
Our market survey revealed that the amount of
compensation sought by the subject is fair and reasonable and comparable to
compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on the subject.
CORPORATE GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs.44.34 |
|
UK
Pound |
1 |
Rs.87.61 |
|
Euro |
1 |
Rs.57.61 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP
CAPITAL |
1~10 |
7 |
|
OPERATING
SCALE |
1~10 |
7 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT
LINES |
1~10 |
7 |
|
--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 |
|
64 |
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 |
|