MIRA
INFORM REPORT
|
Report Date : |
29th
January, 2007 |
IDENTIFICATION
DETAILS
|
Name : |
TRANSAFE
SERVICES LIMITED |
|
|
|
|
Formerly Known As : |
INDIAN
CONTAINER LEASING COMPANY LIMITED |
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|
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Registered Office : |
Balmer
Lawrie House, Rear Building, 6th Floor, 21 Netaji Subhash Road,
Kolkata – 700 001, West Bengal, India |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
15.10.1990 |
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Com. Reg. No.: |
21-50028 |
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CIN No.: [Company
Identification No.] |
U28992WB1990PLC050028 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALI00838F |
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Legal Form : |
A
Closely Held Public Limited Liability Company |
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Line of Business : |
Leasing
of Containers |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD
925000 |
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Status : |
Satisfactory
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
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Comments : |
Subject
is a well established and reputed company having satisfactory track.
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. The company can be considered normal for
business dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered Office : |
Balmer
Lawrie House, Rear Building, 6th Floor, 21 Netaji Subhash Road,
Kolkata – 700 001, West Bengal, India |
|
Tel. No.: |
91-33-22424505/
4583/ 4336 |
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Fax No.: |
91-33-22424999 |
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Telefax : |
2210-5792 |
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E-Mail : |
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Website : |
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Mumbai Branch : |
Unit
No. 320, Raheja Arcade, Plot No. 61 62 Sector II, C B D Belapur, Navi Mumbai
– 400 614, Maharashtra, India |
|
Tel.
No.: |
91-22-27565911/
55939440/ 9522/ 9523 |
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Fax
No.: |
91-22-27565911/
55939440/ 9522/ 9523 |
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E-Mail
: |
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Kolkata Branch : |
Balmer
Lawrie House, Rear Building, 6th Floor, 21 Netaji Subhash Road,
Kolkata – 700 001, West Bengal, India |
|
Tel.
No.: |
91-33-22424505/
4583/ 4336 |
|
Fax
No.: |
91-33-22424999 |
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E-Mail
: |
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New Delhi Branch : |
1206,
Vikram Tower, 16, Raheja Place, New Delhi – 110 008, India |
|
Tel.
No.: |
91-11-25720051/
2029/ 25744002 |
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Fax
No.: |
91-11-25720053 |
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E-Mail
: |
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Chennai Branch : |
Balmer
Lowrie House, 628, Anna Salai Teynampet, Chennai – 600 018, Tamilnadu, India |
|
Tel.
No.: |
91-44-24348078/
24335002/ 24310039/ 24349640/ 9680 |
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Fax
No.: |
91-44-24348078 |
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E-Mail
: |
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Bangalore Branch : |
C/o
Pan Asia Business Services, 23/2, Tiffany’s Annexe, Vittal Mallya Road,
Bangalore – 560 001, Karnataka, India
|
|
Tel.
No.: |
91-80-51233605/
22275308 |
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Fax
No.: |
-- |
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E-Mail
: |
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Coimbatore Branch : |
Easwar
Mill Compound, Makkarai-Chettipalayam Road, Bodipalayam Post,
Malumichampatti, Coimbatore – 641 105, India |
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Tel.
No.: |
91-422-2610626 |
DIRECTORS
|
Name : |
Mr. J
Banerjee |
|
Designation : |
Director
|
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|
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|
Name : |
Mr. S
Bajoria |
|
Designation : |
Director
|
|
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|
Name : |
Mr. K
Subramanyan |
|
Designation : |
Director
|
|
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|
|
Name : |
Mr. V
N Sharma |
|
Designation : |
Director
|
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|
Name : |
Mr. P
M Devaiah |
|
Designation : |
Director
|
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|
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|
Name : |
Mr A
Pinto |
|
Designation : |
Director
|
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|
Name : |
Mr. S
B Chakravarty |
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Designation : |
Director
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AUDIT COMMITTEE |
|
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|
Name : |
MR. S
K Mukherji |
|
Designation : |
Chairperson
|
|
Date of Ceasing : |
Upto
12.06.2006 |
|
|
|
|
Name : |
Mr. S
Bajoria |
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Designation : |
Director
|
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|
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|
Name : |
Mr S B
Chakravarty |
|
Designation : |
Director
|
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|
Name : |
Mr. K
Subramanyan |
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Designation : |
Director
|
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Date of Appointment : |
12.06.2006 |
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KEY EXECUTIVES
|
Name
: |
Mr. G
K Mukerjea |
|
Designation
: |
Manager
and Chief Operating Officer |
|
|
|
|
Name
: |
Mr. P
Kapoor |
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Designation
: |
Company
Secretary |
BUSINESS DETAILS
|
Line of Business : |
Leasing
of Containers |
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|
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|
Products with ITC Code : |
Freight
Containers - 86090000 |
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GENERAL
INFORMATION
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No. of Employees : |
About
100 |
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Bankers : |
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Facilities : |
Secured Loan (Rs. in millions)
Notes : (1) Term Loans: a) Term Loan from
Karur Vysya Bank is secured by way of: - Hypothecation of
2321 nos. containers leased to CONCOR and lease rental receivable against those 2321
containers and - Hypothecation of
containers procured out of loan availed from the bank. b) Term Loan from
UTI Bank Limited is secured by way of: - Exclusive first
charge on the assets to be acquired out of the term loan sanctioned by the bank. - Escrow of
Receivables from CONCOR for receivables pertaining to containers purchased from the term loan
sanctioned by the bank. (2) Cash Credit: a) Cash Credit from
Centurion Bank of Punjab Limited amounting to Rs. 30.645 millions (Rs. 9.119
millions) is secured by exclusive charge against book debts excepting those
book debts representing lease rentals receivable from CONCOR as stated in (1)
above. b) Cash Credit from
UTI Bank Limited amounting to Rs. 19.434 millions (Nil) is secured by
exclusive charge on the current assets of the company excluding lease rental
receivables and book debts already charged to other working capital banks and
second charge on containers acquired out of the term loan sanctioned by the
bank. |
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Banking Relations : |
Satisfactory
|
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Auditors : |
Statutory Auditors De
Chakraborty and Sen Chartered
Accountants Internal Auditors S N
Mukherji and Company Chartered
Accountants |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15000000 |
Equity
Shares |
Rs. 10/- |
Rs. 150.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
11000000 |
Equity
Shares |
Rs. 10/- |
Rs. 110.000 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
110.000 |
110.000 |
|
|
2] Reserves & Surplus |
|
122.892 |
108.286 |
|
|
NETWORTH |
|
232.892 |
218.286 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
371.076 |
137.399 |
|
|
2] Unsecured Loans |
|
0.000 |
0.000 |
|
|
TOTAL BORROWING |
|
371.076 |
137.399 |
|
|
DEFERRED TAX LIABILITIES |
|
56.912 |
54.367 |
|
|
|
|
|
|
|
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TOTAL |
|
660.880 |
410.052 |
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
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|
FIXED ASSETS [Net Block] |
|
577.760 |
377.843 |
|
|
Capital work-in-progress |
|
12.639 |
26.176 |
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
19.006 |
10.941 |
|
|
Sundry Debtors |
|
97.665 |
70.200 |
|
|
Cash & Bank Balances |
|
1.733 |
0.900 |
|
|
Other Current Assets |
|
0.000 |
0.000 |
|
|
Loans & Advances |
|
20.630 |
21.731 |
|
Total Current Assets |
|
139.034 |
103.772 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
53.786 |
99.562 |
|
|
Provisions |
|
15.678 |
0.000 |
|
Total Current Liabilities |
|
69.464 |
99.562 |
|
|
Net Current Assets |
|
69.570 |
4.210 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.911 |
1.823 |
|
|
|
|
|
|
|
|
TOTAL |
|
660.880 |
410.052 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
|
Sales Turnover [including other income] |
|
253.789 |
206.108 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
|
44.236 |
41.191 |
|
Provision
for Taxation |
|
16.167 |
15.465 |
|
Profit/(Loss)
After Tax |
|
28.069 |
25.726 |
|
|
|
|
|
|
Import
Value |
|
159.746 |
54.503 |
|
|
|
|
|
|
Total
Expenditure |
|
209.553 |
164.917 |
KEY
RATIOS
|
PARTICULARS |
|
|
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
|
11.06 |
12.48 |
|
|
|
|
|
|
|
Net
Profit Margin (PBT/Sales) |
(%) |
|
17.43 |
19.98 |
|
|
|
|
|
|
|
Return
on Total Assets (PBT/Total
Assets} |
(%) |
|
6.06 |
8.11 |
|
|
|
|
|
|
|
Return
on Investment (ROI) (PBT/Networth) |
|
|
0.19 |
0.19 |
|
|
|
|
|
|
|
Debt
Equity Ratio (Total
Liability/Networth) |
|
|
3.13 |
2.33 |
|
|
|
|
|
|
|
Current
Ratio (Current
Asset/Current Liability) |
|
|
2.00 |
1.04 |
LOCAL AGENCY
FURTHER INFORMATION
Overview
The Financial Year
2005-06 has been truly significant as various new avenues that have been
nurtured over last 2- 3 years have reached take off stage during the year,
culminating in the increase in total income by more than 23% over the previous
year. After setting aside the slated drop in demise lease income in respective
years the resulting net increase is approx. 42% over 2004-05. In absolute
terms, the total turnover crossed Rs. 250 millions for the first time. Overall
leasing activity recorded 3% growth, despite the drop in "demise"
lease income during the year 2005-06. The growth in new leases was over 20%.
The major contributors to this growth were:
• Leasing of
containers to international movement/ sectors contributing over 50%
• Revival of demand in
rail sector in the second half of the year as also increase in demand from
coastal
shipping activity.
• As anticipated, the
adverse trend continued in the road sector due to cheaper container look alike
built body from unorganised sector as also use of scrapped containers from
international sectors / BIFR companies. This is unlikely to change
significantly and therefore, Company adopted the strategy of introducing
Transafe Indo Trailer in this space. They are glad to report that the concept
has been well received by the intended customer segment.
• The refrigerated
container leasing sector performed below expectations during the early part of
the year.
However, during the
last quarter of the Financial Year, there has been revival in demand which
contributed to the overall increase from lease sector.
Indo Trailer
operations was developed originally on the basis of transportation model,
mainly on the North-West corridor and have been adequately extended to other
regions with progressive improvement in the Golden Quadrilateral road network.
The clamp down on overloading of trucks by Supreme Court order during later
part of the year has increased the competitiveness of Indo Trailer and stage is
now set for consistent growth in this segment. Trading operations received a
quantum jump, with execution of some major contracts for L&T, Defence and
OIMGC which has provided the basis for setting up regional
manufacturing /
assembly units. During the year, as you are aware, the Memorandum and Articles
of Association of Company was amended facilitating a negotiated agreement for
operating on license, Balmer Lawrie's Speciality Containers facilities at
Coimbatore.
Reflecting the above developments, change in name of Company was adopted
by your Board after
considerable deliberations and duly approved by Statutory Authorities.
With effect from 30 March, 2006 your company is called TRANSAFE SERVICES
LIMITED, having four Strategic Business Units, viz. Indian Container Leasing,
Glacio Cold Chain Logistics, Indo Trailer Logistics and
Creative Containers.
The above mentioned growth has been achieved (without any infusion of
additional equity capital) mainly through internal accruals and sanctioned term
loan from banks at competitive interest rates and terms. During the year, asset
addition has been approximately Rs 256.000 millions as against Rs135.000
millions last year.
The financial
performance of Company has also improved over previous year. The PBT (without
demise lease) as percentage of total income increased from 8.37% in 2004-05 to
10.09% this year and the PBT (including demise lease) as percentage of total
income decreased from 19.98% in 2004-05 to 17.43% this year despite change in
business mix from purely leasing (having potentially higher percentage of
income as PBT) to leasing, transportation, trading / manufacturing.
Change
of Name
As stated earlier, the
name of the Company was changed to "TRANSAFE SERVICES LIMITED" w.e.f.
30 March, 2006.
Future Outlook
The Company has now
embarked on leveraging opportunities in logistics and container related areas
building upon its
inherent strength and developing / acquiring new core strengths in the emerging
areas. The organisation structure has been evolved to focus on each Strategic
Business Area as well as future growth areas / policies including inorganic
growth.
The opening up of rail
freight operations to private companies will open up considerable opportunities
for
containers /trailers /
reefers and logistics support services in next few years. The Company has,
therefore, taken an ambitious target for the year 2006-07.
The Company’s Fixed
Assets of Important value includes:
- Plant and Machinery
- Containers
- Electric Installation and Equipment
- Furniture and Fittings
- Accounting Machine
- Motor Car
- Building
- Computers
As Per Web
Profile
Transafe Services Limited owns a large fleet of dry van as well as
refrigerated containers. They also provide container-related equipment on long
term lease.
- Dry van and
Refrigerated containers on operating lease for use in road and storage
segment
- ISO Dry Van and
Refrigerated containers on operating lease for rail, coastal and short sea
movement
- Dry Van and
Refrigerated containers on operating lease for international movement
- Repair and
refurbishing of containers at strategically located depots in India
- Design,
development and fabrication of special purpose container
- 3PL logistics
both for dry and perishable cargo through Indo Trailer operation
- Creative
Containers offer a complete range of requirements from logistics as well
as other industries
TSL believes in constantly broadening and diversifying its business,
suiting customers' needs. We strive to design products from scratch to match
with ever changing market needs. They also offer world class quality products
for a wide range of applications.
Milestones
- Container Leasing Division at Balmer
Lawrie and Company Limited goes operational in 1989, following a study by
the Government of India. Object: to leverage the availability of 1.4
million heavy commercial vehicles on India’s roads, with projected growth
by 100,000 such vehicles annually.
- Concept of Operating Lease introduced
successfully in India, leading to formation in 1991, of Indian Container
Leasing Company Limited as a joint venture with ICICI Group as major
partner.
- First fleet of refrigerated containers
launched in 1995, to move chocolates. Leading to steadily widening usage,
moving, besides chocolates and other confections, milk products, ice
cream, poultry items, frozen and fresh fish, meat, yeast, flowers,
lifesaving drugs, etc. Countrywide movement to establish cold chain
anticipates growing need for refrigerated containers for primary and
secondary movement.
- Agreement reached in 2000 with a Norwegian
Company, to introduce state-of-the-art container-based solutions for
strategic applications such as, for disaster management systems, emergency
shelters, mobile clinics, NBC, EMP, etc. in anticipation of steadily growing
need for containers as dependable and sustainable solutions to a variety
of logistical needs.
MILESTONES
1991-92 : Introduced Dry Van
Containers for Indian road transportation
1993-94 : First ISO container leased out for
intermodal application in Indian rail sector
1995-96 : First Refrigerated
container leased out to Nestle
1997-98 : Leasing of container handling equipment
1998-99 : First container leased
out to coastal / short sea in India
2000-01 : Tie-up with a Norwegian
Company for state-of-art special container
2001-02 : First Milvan container
delivered to Indian Army
2002-03 : First Missile container
delivered to Indian Navy
2003-04 : Introduced Transafe Indo
Trailer to Indian road transportation.
Developed Hard Top container.
2004-05 : Developed double decked
Bunk Houses for control tower for ship movement.
Developed Check-Out Equipment container for DRDL.
Developed special Housing Container for Indian Navy.
Developed and supplied Kitchen container to Indian Army.
2005-06 : Developed and supplied
vehicle mounted Caravan and Battery Command container for Indian Army.
Developed and supplied 20' Open Top and Side Access containers for Rail sector.
Developed 20' Tank Container and ISO tested first time in Asia.
Successful testing of 20' Open Top container.
Developed and supplied four different variants of special containers for Space
Research Programme.
Supplied three complete project site Bunk Houses to oil exploration companies
in India.
Developed and supplied transformer control and distribution containers for
BHEL.
Leasing of Dry Van 20' and 40' container and also 40' Refrigerated container to
international shipping companies.
Established depots in Shanghai, Singapore, Colombo, Dubai.
2006-07 : Developed Refrigerated Trailer.
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.44.27 |
|
UK
Pound |
1 |
Rs.86.71 |
|
Euro |
1 |
Rs.57.13 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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 |
|