MIRA
INFORM REPORT
|
Report Date : |
04.06.2007 |
IDENTIFICATION DETAILS
|
Name : |
GATI LIMITED |
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Registered Office : |
1-7-293, |
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Country : |
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Financials (as on) : |
30.06.2006 |
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Date of Incorporation : |
25.04.1995 |
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Com. Reg. No.: |
01-20121 |
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CIN No.: [Company
Identification No.] |
L63011AP1995PLC020121 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDG02751A |
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PAN No.: [Permanent
Account No.] |
AABCG3709Q |
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Legal Form : |
Public Limited
Liability Company. The company’s
shares are listed on the Stock Exchanges. |
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Line of Business : |
Logistics, Express
Cargo and Shipping Services. |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
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RATING |
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 6375096 |
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Status : |
Good |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established company having fine track records. Trade relations are fair. Financial position is good. Payments are correct and as per
commitments. The company can be
considered good for any normal business dealings. It can be
regarded as a promising business partner in a medium to long run. |
LOCATIONS
|
Registered Office : |
1-7-293, |
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Tel. No.: |
91-40-27844284 |
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Fax No.: |
91-40-27894284 |
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E-Mail : |
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Website : |
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Corporate Office : |
No : |
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Tel. No.: |
(0065) 6396 8867 |
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Fax No.: |
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E-Mail : |
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Offices: |
North Zonal
Office 14/19/2, Samalkha, Tel :
91-11-25061551/52/53 Fax :
91-11-25061563 e-mail: cc_dept_north@gati.com Ist Floor, D-390, TTC Industrial Area, Near IOC Terminal, Turbhe, Navi Mumbai-400 713. Tel :
91-22-27612210,27630192/96 Fax :
91-22-27689605 e-mail: cc_dept_west@gati.com 11th K.M., Banglore - 560 023. Tel:
91-80-23710231/32 Fax :
91-80-23710220 e-mail: cc_dept_south@gati.com P-18, Kolkata-700 088. Tel:
91-33-24010342/415,24017488 Fax :
91-33-24017403 e-mail: cc_dept_east@gati.com Lasuria Mori,Dewas Naka, Behind Gati Petrol Pump, A.B. Road, Indore-452 010. Tel:
91-731-5021127,5021128 Fax:
91-731-5021126 e-mail: cc_dept_central@gati.com International Office SINGAPORE Tel : (65)
65874284, 63968724 Fax :(65)
63968867, 62955817 e-mail: infosin@gati.coms Gati Hong Kong Limited 8/B., 251 Queen's Road
Central, Tel : 852- 28505111 Fax: 852- 28505344 / 5355 e-mail: infohkg@gati.com SHANGHAI Shanghai 200021
P.R. China Tel: (0086)
21 61221031 Fax: (0086)
21 61222418 HP:
13311870157 e-mail: infochina@gati.com.
12A Chaoyang
District, Tel: (0086)
10 8523 3068 Fax: (0086)
10 8523 3001 HP: (0086)
1381079108 e-mail:infochina@gati.com 74,The 1st
Floor, Colombo-02, Tel: (0094) 11 5549834/5554284 Hp: +94 779034421. e-mail: infocmb@gati.com. |
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DIRECTORS
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Name : |
Mr. K. L. Chugh |
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Designation : |
Chairman |
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Name : |
Mr. Mahendra
Agarwal |
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Designation : |
Managing Director |
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Name : |
Mr. Krishan Sehgal |
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Designation : |
Director |
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Name : |
Dr. Ram S.
Tarneja |
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Designation : |
Director |
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Name : |
Dr. P. Sudhakar
Reddy |
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Designation : |
Director |
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Name : |
Mr. N. Srinivasan |
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Designation : |
Director |
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Name : |
Mr. T. S. Rao |
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Designation : |
Director |
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Name : |
Mr. Sunil Kumar
Alagh |
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Designation : |
Director |
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MANAGEMENT TEAM : |
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Name : |
Mr. Mahendra
Agarwal |
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Designation : |
Chief Executive
Officer |
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Name : |
Mr. Manoj Todi |
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Designation : |
Chief
Infrastructure Officer |
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Name : |
Mr. V. T. Pawar |
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Designation : |
Chief Finance
Officer |
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Name : |
Mr. Arthur Simon
Bertie |
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Designation : |
Chief Business
Chain Officer |
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Name : |
Mr. T. Kumaran |
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Designation : |
Chief,
Coast-to-Coast |
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Name : |
Mr. Mohan Prasad |
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Designation : |
Chief HR Officer |
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Name : |
Mr. G. S.
Ravikumar |
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Designation : |
Chief Technology
Officer |
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Name : |
Mr. Brad Jeffery |
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Designation : |
Vice President,
International Business |
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Name : |
Mr. K. K. Tan |
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Designation : |
Country Manager –
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Name : |
Mr. Suresh Prasad
Newatia |
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Designation : |
Head, Retention
Business Development |
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Name : |
Mr. Yogesh V.
Khamar |
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Designation : |
Head, Business
and Operations [South] |
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Name : |
Mr. M. Maheen
Kannu |
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Designation : |
Head, Retail
Business |
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Name : |
Mr. Madan
Choudhary |
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Designation : |
Head, Documents
and Packages Business |
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Name : |
Mr. Manoj Agarwal |
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Designation : |
Head, Marketing
Services & Brand Communication |
As on 30.06.2006
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Financial Institutions & Banks |
58815 |
0.08 |
|
Foreign Institutional Investors |
2566321 |
3.62 |
|
Non-Resident Indians |
345383 |
0.49 |
|
Bodies Corporate |
28181962 |
39.77 |
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Directors and Relatives |
14020535 |
19.78 |
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General Public |
2597729 |
36.26 |
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Names of
Shareholders |
No. of Shares |
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[A] Shareholding of Promoter and Promoter Group |
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[1] Indian |
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Individuals / HUF |
35234955 |
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|
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[B] Public
Shareholding |
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[1] Institutions |
|
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Mutual Funds / UTI |
701837 |
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Financial Institutions / Banks |
58815 |
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Foreign Institutional Investors |
2566321 |
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Any Other [Overseas Corporate Bodies] |
7855935 |
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|
|
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[2] Non - Institutions |
|
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Bodies Corporate |
6553882 |
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Individuals –
i. Individual shareholders holding nominal share capital up to Rs. 0.100 million ii. Individual shareholders holding nominal share capital in excess of Rs. 0.100 million |
6842008 6810406 |
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Any Other [specify] |
4246586 |
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TOTAL |
70870745 |
BUSINESS DETAILS
|
Line of Business : |
Logistics,
Express Cargo and Shipping Services |
GENERAL INFORMATION
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Customers : |
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No. of Employees : |
2876 |
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Bankers : |
Ø
State
Bank of Ø
ICICI
Bank Ø
UTI
Bank |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
|
|
Name : |
R. S. Agarwala
& Company Chartered
Accountants, |
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Associates/Subsidiaries : |
Associates:
Subsidiaries:
|
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20000000 |
Equity Shares |
Rs. 10/- each |
Rs. 200.000 millions |
|
1000000 |
Redeemable
Preference Shares |
Rs. 100/- each |
Rs. 100.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
70870745 |
Equity Shares |
Rs.2/- each |
Rs.141.741 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.06.2006 |
30.06.2005 |
30.06.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
141.741 |
83.565 |
83.565 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1452.033 |
492.191 |
374.544 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
1593.774 |
575.756 |
458.109 |
|
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LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
413.624 |
428.420 |
400.983 |
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2] Unsecured Loans |
302.337 |
210.442 |
159.357 |
|
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TOTAL BORROWING |
715.961 |
638.862 |
560.340 |
|
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DEFERRED TAX LIABILITIES |
58.237 |
55.237 |
92.261 |
|
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|
|
|
|
|
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TOTAL |
2367.972 |
1269.855 |
1110.710 |
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|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
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|
FIXED ASSETS [Net Block] |
1013.687 |
651.509 |
600.293 |
|
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Capital work-in-progress |
415.904 |
125.166 |
72.315 |
|
|
|
|
|
|
|
|
INVESTMENT |
199.161 |
41.811 |
17.197 |
|
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
20.345 |
7.423 |
10.696 |
|
|
Sundry Debtors |
543.215 |
406.154 |
419.479 |
|
|
Cash & Bank Balances |
131.161 |
68.667 |
74.314 |
|
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Other Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances |
295.098
|
137.435 |
149.455 |
|
Total
Current Assets |
989.819
|
653.944 |
619.679 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
177.194 |
157.586 |
149.370 |
|
|
Provisions |
73.405 |
41.188 |
53.205 |
|
Total
Current Liabilities |
250.599 |
202.575 |
198.774 |
|
|
Net Current Assets |
739.220 |
451.369 |
420.905 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2367.972 |
1269.855 |
1110.710 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
30.06.2006 |
30.06.2005 |
30.06.2004 |
|
|
Sales Turnover |
814.822 |
729.199 |
3091.854 |
|
|
Other Income |
16.043 |
20.804 |
|
|
|
Total Income |
830.865 |
750.003 |
|
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
274.563 |
155.915 |
83.779 |
|
|
Provision for Taxation |
73.900 |
10.976 |
28.261 |
|
|
Profit/(Loss) After Tax |
200.663 |
144.939 |
55.518 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Freight |
275.047 |
126.006 |
95.134 |
|
Total Earnings |
275.047 |
126.006 |
95.134 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Stores & Spares |
5.639 |
7.501 |
|
|
|
Capital Goods |
180.683 |
1.153 |
100.192 |
|
Total Imports |
186.322 |
8.654 |
100.192 |
|
|
|
|
|
|
|
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Expenditures : |
|
|
|
|
|
|
Cost of Goods Sold |
801.982 |
717.217 |
|
|
|
Administrative Expenses |
444.751 |
370.386 |
|
|
|
Operating Expenses |
2398.269 |
1808.035 |
3008.075 |
|
|
Personnel Expenses |
490.135 |
396.541 |
|
|
|
Repairs and Maintenance Expenses |
38.792 |
44.359 |
|
|
|
Interest |
42.211 |
47.259 |
|
|
|
Depreciation & Amortization |
86.526 |
72.967 |
|
|
Total Expenditure |
4302.666 |
3456.764 |
3008.075 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.09.2006 1st
Qtr |
30.12.2006 2nn Qtr |
31.03.2007 3rd
Qtr |
|
Sales
Turnover |
1331.600 |
1389.600 |
138.340 |
|
Other
Income |
03.700 |
05.100 |
0.790 |
|
Total
Income |
1335.300 |
1394.700 |
139.130 |
|
Total
Expenditure |
1219.600 |
1290.200 |
125.910 |
|
Operating
Profit |
115.700 |
104.500 |
13.220 |
|
Interest |
12.500 |
18.400 |
1.150 |
|
Gross
Profit |
103.200 |
86.100 |
12.070 |
|
Depreciation |
25.300 |
27.400 |
2.740 |
|
Tax |
22.200 |
13.000 |
2.880 |
|
Reported
PAT |
56.200 |
42.600 |
6.810 |
|
|
|
|
|
200609 Quarter 1 --------------- Notes Expenditure includes
Cost of Good Sold Rs 258.20 million Staff Cost Rs 142.70 million Other
expenditure Rs 818.70 million Tax Includes Provision for Current Tax Rs 20.40
million Deferred Tax Rs (0.50) million Fringe Benefit Tax Rs 1.80 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 11 Complaints disposed off during the quarter 11 Complaints
unresolved at the end of the quarter Nil 1. The Company has issued 1571185
Convertible Warrants @ 2/- each, at a premium of Rs 82.60 per warrant to The
Infrastructure Fund of India LLC, managed by AMP Capital Investors on March 02,
2006 and 25,00,000 Convertible Warrants @ Rs 2/- each at a premium of Rs 82.60
per warrant to Mahendra Investment Advisors Pvt Ltd on September 16, 2006
convertible within 18 months from the date of allotment. 2. The Company has
deployed the proceeds from the allotment of Equity Shares on Rights basis and
Preferential basis towards objects mentioned in the Offer Documents. Pending
full utilisation, the balance funds of Rights Issue are retained in Working
Capital. 3. ESOS: 2412900(inclusive of 350000 Options to Non-Promoter
Directors) Employee Stock Options are outstanding as on September 30, 2006. 4.
The shareholders at the Annual General Meeting held on October 11, 2006 have
approved the issue of 17,82,500 Equity Shares under the ESOS Scheme-2006. 5.
The Shareholders at the Annual General Meeting held on October 11, 2006 have
approved the issue of 10,50,000 Convertible Warrants @ Rs 2/- each, at a
premium of Rs 88/- per warrant to The Infrastructure Fund of India LLC and
1,04,50,000 Convertible Warrants @ Rs 2/- each, at a premium of Rs 88/- per
warrant to the Promoter/Promoter Group. 6. The Board of Directors has approved
a Scheme of Arrangement to transfer the Fuel Stations to Four wholly owned
subsidiaries, subject to sanction of Hon'ble High Court of Andhra Pradesh. For
this purpose four wholly owned subsidiaries have been formed. 7. The additional
provision for retiring benefits, if any, under the revised Accounting Standard
- 15 issued by the Institute of Chartered Accountants of India will be
considered in the annual accounts of the current year. 8. The shares of the
Company have been listed on National Stock Exchange with effect from October
10, 2006. 9. The above unaudited financial results have been reviewed by the
Audit Committee and approved by the Board of Directors at the meeting held on
October 11, 2006 and are subject to limited review by the statutory auditors.
200612 Quarter 2 --------------- Notes Expenditure includes
Cost of Good Sold Rs 253.50 million Staff Cost Rs 133.80 million Other
expenditure Rs 876.40 million Tax Includes Provision for Current Tax Rs 10.70
million Deferred Tax Rs 3.10 million Fringe Benefit Tax Rs 2.30 million EPS is
Basic 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 11 Complaints disposed off during the quarter 11 Complaints
unresolved at the end of the quarter Nil 1. The Company has issued 10,50,000
Convertible Warrants @ Rs 2/- each, at a premium of Rs 88/- per warrant to The
Infrastructure Fund of India LLC, managed by AMP Capital Investors and
1,04,50,000 Convertible Warrants @ Rs 2/- each, at a premium of Rs 88/- per
warrant to the Promoter/Promoter Group on October 23, 2006 convertible within
18 months from the date of allotment. 2. The Company has allotted US$ 20 Mn
Zero Coupon Unsecured Foreign Currency Convertible Bonds (FCCB) having maturity
period of 5 years and 1 day (due 2011) on December 05, 2006 and the Bonds are
listed on Singapore Stock Exchange. Expenses of Rs 17.90 million so far
incurred towards this issue have been charged to Share Premium Account. 3. The
Company has deployed the proceeds from the allotment of Equity Shares on Rights
basis and Preferential basis towards objectives mentioned in the Offer
Document. 4. ESOS: 2395650 (inclusive of 350000 Options to Non-Promoter
Directors) Employee Stock Options are outstanding as on December 31, 2006. The
Company has allotted 4,24,800 Equity Shares of Rs 2/- each on vesting of 40% of
options granted to eligible Employees and 1,05,000 Equity Shares of Rs 2/- each
on vesting of 30% of options granted to Non-Promoter Directors on January 20,
2007. 5. The shareholders at the Annual General Meeting held on October 11,
2006 have approved the issue of 17,82,500 Equity Shares under the ESOS
Scheme-2006. The Company has granted 18,83,850 options @ Rs 71.50 to the
eligible Employees / Directors of Subsidiary Companies the Company on January
20, 2007, under the present and the previous Schemes. 6. To strategically
position the company in an extremely competitive and growing global market, the
Company has repositioned its Brand Identity which is both contemporary and
strongly linked to its customers. Expenses of Rs 29.70 million incurred towards
this has been treated as an extra ordinary expense. 7. An Application u/s 391
of the Companies Act, 1956 in respect of a Scheme of Arrangement to vest the
Fuel Stations to Four Wholly Owned Subsidiaries, effective July 01, 2006 NOC
for which has been given by all the relevant Stock Exchanges. An application
has been filed with the Hon'ble High Court of Andhra Pradesh. 8. The additional
provision for retirement benefits, if any, under the revised Accounting
Standard - 15 issued by the Institute of Chartered Accountants of India will be
considered in the annual accounts of the current year. 9. Previous Quarterly /
Year figures regrouped and rearranged wherever necessary. 10. The above
unaudited financial results have been reviewed by the Audit Committee and
approved by the Board of Directors of the meeting held on January 20, 2007 and
are subject to limited review by the statutory auditors.
200703 Quarter 3 ---------------
Notes; EPS is Basic and Diluted 1. Credit Analysis & Research Limited
(CARE) has assigned a rating of 'CARE CGR 2' to the Company reflecting high
level of comforton Corporate Governance. 2. The paid-up Equity Share Capital of
the Company has been increased during this quarter from Rs.14,17,41,490/-to
Rs.14,47,71,090/-on account of the following: a) Issue of 424800 Equity Shares
of Rs.2/- each to Employees of the Company at a premium of Rs.5.10 per share
and 105000 Equity Shares of Rs.2- each to Non- Promoter
Directors of the Company at a
premium of Rs.10.24 per share under ESOS on 20-01-2007. b) Issue of 9,85,000
Equity Shares of Rs.21- each at a premium of Rs.82.61 per share to Mahendra
Investment Advisors Private Limited, one of the promoters of the company on
conversion of 9,85,000 convertible warrants on 29-03-2007. 3.The Company has
deployed the proceeds from preferential issue and FCCBs towards the objects
mentioned in the offer documents. 4.The Hon'ble HighCourt of Andhra Pradesh has
sanctioned the Scheme of Arrangement to vest the fuel stations to four wholly
owned subsidiaries of the Company w.e.f 1 st july 2006; pending completion of
the requisite procedural formalities, the financials of the fuel stations for
the period(s) have been included in the above results. 5.The additional
provision for retirement benefits, if any, under the revised Accounting Standard
- IS issued by the Institute of Chartered Accountants of India will be
considered in the annual audited accounts of the currentyear. 6.The above
Unaudited financial results have been reviewed by the Audit Committee and taken
on record by the Board of Directors at their meeting held on 28th April 2007
and are subject to limited review by the scatutory auditors. 7.Fifteen
complaints received from the investors during the quarter have been
resolved.There was no complaint outstanding at the beginning or at the end of
the quarter
KEY RATIOS
|
PARTICULARS |
|
30.06.2006 |
30.06.2005 |
30.06.2004 |
|
Debt-Equity
Ratio |
|
0.67 |
1.34 |
1.46 |
|
Long
Term Debt-Equity Ratio |
|
0.50 |
0.86 |
0.99 |
|
Current
Ratio |
|
1.82 |
1.30 |
1.27 |
|
TURNOVER
RATIOS |
|
|
|
|
|
Fixed
Assets |
|
4.17 |
4.39 |
4.35 |
|
Inventory |
|
294.27 |
396.90 |
395.03 |
|
Debtors |
|
9.48 |
8.70 |
8.09 |
|
Interest
Cover Ratio |
|
6.38 |
4.18 |
2.14 |
|
Operating
Profit Margin(%) |
|
9.03 |
7.74 |
6.72 |
|
Profit
Before Interest And Tax Margin(%) |
|
7.14 |
5.71 |
NA |
|
Cash
Profit Margin(%) |
|
6.30 |
6.07 |
NA |
|
Adjusted
Net Profit Margin(%) |
|
4.40 |
4.03 |
NA |
|
Return
On Capital Employed(%) |
|
19.24 |
19.58 |
NA |
|
Return
On Net Worth(%) |
|
19.77 |
32.40 |
NA |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
The
company based at Secunderabad is the leader in small and express cargo
management in
In 1999-2000, the company acquired one additional ship of 4800 DWT named Gati-1.
In the year 2000-01 the company has allotted 2785500 equity shares of Rs.10
each at fully paid up bonus shares in the ratio of 1:2. The company in
association with Indian Railways commenced running the Millennium Parcel
Express, a complete high tech and high speed cargo train between Kolkata &
Mumbai. It has also opened branches in
Gati has been awarded the prestigious ISO 9001:2000 for all of its operating
locations.
Outlook and Future Strategies
Gati's vision of becoming
the leader in Asia-Pacific and a globally preferred provider of India-centric
supply chain services and solutions will be the guiding force behind the
company's future strategies. Gati's future strategies are focused on
Information Technology, process improvement, cost management,
establishment of
state-of-the-art warehouses and provision of better quality service to its
customers,
which will position
it very favourably in the years ahead.
Vision
Gati shall:
• Be the leader in
Asia-Pacific and a globally preferred provider of India-centric supply chain
services
and solutions.
• Delight the
customers with quality services by setting new trends through innovation and
technology.
• Be the most
preferred organization for all its stakeholders.
• Be a responsible
corporate citizen with unwavering commitment to environmental protection and
conservation.
Core Values
• To be ethical,
integrated and transparent in our leadership.
• To respect and
treat with value the enquiries of others.
• To be caring and
abundant in giving support and services to others.
• To balance the
body and mind, and 'people serve people' in good spirit.
• To approach life
holistically and elegantly with sympathy.
• In keeping with
Indian culture and attitude, never say 'no' to servicing a customer.
• To be a
responsible corporate citizen and remain committed to the cause of
environmental protection
and conservation.
Review
of Operations
During the year under review, your company achieved a turnover of
Rs.4577.200 millions, as against Rs.3612.700 millions in the previous year,
registering a growth of 27%. The Net Profit after Tax has grown to Rs. 2007
lakhs as against Rs.103.700 millions in the previous year, excluding the
Extraordinary Item of Rs. 41.200 millions being the reversal of Deferred Tax
liability reversal, registering a growth of 94%.
The rapid economic growth is expected to lead increased demand of
logistic and warehouses services. Initiative taken by their company in last
year to build state of the art modern warehouses equipped with all facilities
has progressed satisfactorily. In short period, company has established ten
such warehouses across
During the year, company has strengthened its Coast to Coast division by
adding two new ships - One on
outright purchase
viz., 'Gati Zipp' and one on time Charter viz., 'Clarissa'.
Their board has decided to de-merge the Fuel Station Division from its core
business and has approved a Scheme of Arrangement to de-merge the Fuel Station
to Wholly Owned Subsidiaries, subject to approval of the shareholders and
sanction of Hon'ble Court of Andhra Pradesh. For this purpose, their company
has incorporated four subsidiary companies in the month of May'06 viz. M/s
Trymbak Commercial & Trading Pvt.Ltd., M/s Newatia Commercial & Trading
Pvt.Ltd., M/s Ocimum Commercial & Trading Pvt.Ltd., and M/s Sumeru
Commercial & Trading Pvt.Ltd. The transfer of the divison to the aforesaid
subsidiaries will be made after receipt of approval of the Hon'ble High Court
of Andhra Pradesh to the Scheme of Arrangement.
Subsidiaries & International
Business
With a vision to position the company as number one India centric,
Globally preferred Supply Chain Services and Solution provider in Asia Pacific,
your company has established wholly owned subsidiary namely M/s Gati Holdings
Limited at
The Company has obtained permission from the Central Government under
Section 212(8) of the Companies Act, 1956 and accordingly the individual Annual
Accounts of the above mentioned subsidiaries for the year ended 30th June, 2006
have not been attached to the Annual Report. Copies of these Accounts will be
made available to any member upon request.
Their Company's international business operations are keeping pace with
the changing market trends and international division is expected to contribute
significantly to the profit in the coming years.
IT Initiatives
During the year the Company launched the following major IT Solutions:
Disaster Recovery
To provide business continuity, multi level Disaster Recovery solution
was implemented to supplement the Company's Central Servers at its Head Office.
This solution comprises of one local set of alternate servers at the Head
Office and a set of servers at remote location,
Portal
Gati.net an Oracle based Portal was launched for the Gati'ites. It
includes a single sign-on and a secured Identity Management solution. This
means that all Gati'ites will have access to multiple applications through
Gati.net based on their roles and rights.
Vehicle Tracking System
Vehicle tracking system for 50 vehicles as Phase-I was launched. This
solution gives real time information using GPS/GPRS. The Vehicle Tracking
System also has the facility for the driver to have a hands free voice
communication with Central Monitoring Cell and vice- versa.
Video Conferencing
Video Conferencing solution has been implemented between all Gati Zonal
Office, Head Office and Corporate Office at
All the above initiative will help company to address & meet
customer's requirements, to improve productivity, quality and service to the customers.
Future Prospectus
Realising the importance of logistics in the overall growth of the economy,
Government of India (GOI) has been giving thrust on building and improving
basic infrastructure in the country. GOI is investing in highway projects,
privatizing ports, streamlining customs and excise procedures, improving rail
network by commencing services to new locations and has undertaken
restructuring and modernisation of the airports to improve trade. In Budget
2006-07, roadmap announced for the completion of Golden Quadrilateral and
N-S-E-W corridor projects, separate allotment towards rural road infrastructure
covered under 'Bharat Nirman', increase in the allocation to National Highways
Development Programme and announcement of new expressway projects shows the
seriousness of the Govt. for improving its road infrastructure as the same
would, inter-alia, speed up the surface transportation of goods. This is a
major driver for the smooth functioning of the logistics industry as around 40%
of the cost is on transpor tation alone. (source: www.care.com - Report on
Logistic sector)
GOI's efforts to make
GOI has also rationalised the tax structure, introduced
tonnage tax and has moved to a uniform Value Added Tax (VAT) scenario that are
expected to lead to increased outsourcing of warehousing and distribution to
3PL providers. However, the industry is sensitive to fuel prices, as the sector
is dependent on transportation via Land, Air and Water networks.
India's entry into the WTO and its signing of several Asean Free Trade
Agreements (AFTA) and Bi-lateral FTAs will provide more exchange of goods and
services which is a major driver for the logistics sector. Further, the impact
of globalization, improvement in world economy is proving beneficial to
logistics companies.
All the above positive developments will lead to increased outsourcing of
warehousing and distribution to specialised 3PL and 4PL service providers.
Your company is in the process of acquiring a modern and customized fleet
of unique containers suited for Indian terrain to re-engineer and revamp its
network to the international standards. These containers are designed to increase
the space utilisation as well as for storage of odd sized materials with
different dimensions, which will help in improving productivity and efficiency.
Your Company's strategy to focus on establishing
State-of-the-art Warehouses, Providing quality value added service, Adoption of
latest cutting edge Information Technology, Continuos process improvement,
Strict cost management etc. will position your company very favourably in the
years ahead to capture the growth in logistic sectors.
Fixed
Deposits
Fixed Deposits from the public stood at Rs.117.895 millions at the end of
the year. There were no overdue deposits. However, there were 98 unclaimed
deposits of Rs. 3.294 millions as at 30th June, 2006. Out of these 40 unclaimed
deposits aggregating to Rs. 1.646 millions were renewed/ repaid till the date
of this report. Reminders have been sent to those depositors who have not yet
claimed their deposits.
MANAGEMENT
DISCUSSION & ANALYSIS
Industry Structure & Development
Logistic industry in
The Indian logistic market was valued at USD 14.31 billion (INR 645
billion) in 2004 and is expected to grow to USD 19.54 billion (INR 880 billion)
by 2009 at CAGR of 6.4%. The demand for logistics services is largely driven by
the Indian economy, which recorded a remarkable growth of 8.40% in 2005-06 and
is expected to grow by 8% approx. in 2006-07.(Source: www.careratings.com &
www.crisil.com)
The global supply chain and logistic market is around USD 3 trillion, of
which the market size for supply chain (logistics spent) in India is a mere USD
50 billion per year.
The major sectors contributing to the logistics market include the Pharma
& Chemicals, Automotives, Auto Spares, Computer Peripherals, fast moving
consumer goods (FMCG),Engineering products,Machinery,Spares , retail and
healthcare sectors. These sectors are also opting to outsource their logistics
requirements to specialized service providers, also called Third Party Logistics
(3PL) service providers. Of late the concept of Fourth Party Logistics (4PL)
service providers that act as a single interface between the client and
multiple logistics services providers has started gaining popularity among
large Indian firms.
Opportunities
Realising the importance of logistics in the overall growth of the
economy, Government of India (GOI) has been giving thrust on building and
improving basic infrastructure in the country. GOI is investing in highway
projects, privatizing ports, streamlining customs and excise procedures,
improving rail network by commencing services to new locations and has
undertaken restructuring and modernisation of the airports to improve trade. In
Budget 2006-07, roadmap announced for the completion of Golden Quadrilateral
and N-S-E-W corridor projects, separate allotment towards rural road
infrastructure covered under `Bharat Nirman', increase in the allocation to
National Highways Development Programme and announcement of new expressway
projects shows the seriousness of the Govt. for improving its road
infrastructure as the same would, inter-alia, speed up the surface
transportation of goods. This is a major driver for the smooth functioning of
the logistics industry, as around 40% of the cost is on transportation
alone.
GOI's efforts to make
GOI has also rationalised the tax structure, introduced tonnage tax and
has moved to a uniform Value Added Tax (VAT) scenario that are expected to lead
to increased outsourcing of warehousing and distribution to 3PL providers.
However, the industry is sensitive to fuel prices, as the sector is dependent
on transportation via Land, Air and Water networks.
India's entry into the WTO and its signing of several Asean Free Trade
Agreements (AFTA) and Bi-lateral FTAs will provide more exchange of goods and
services which is a major driver for the logistics sector. Further, the impact
of globalization, improvement in world economy is proving beneficial to
logistics companies.
All the above positive developments will lead to increased outsourcing of
warehousing and distribution to specialised 3PL and 4PL service providers.
Your Company's strategy to focus on establishing State-of-the-art
Warehouses, Providing quality value added service, Adoption of latest cutting
edge Information Technology, Continuos process improvement, Strict cost
management etc. will position itself very favourably in the years ahead to
capture the growth in logistic sectors.
Threats, Risks and Concern
Gati faces market competition from both Indian as well as international
companies. Gati's wide reach and competitive cost positions has enabled it to
retain its leadership position. Gati's high level of integration and presence
in Asia-Pacific and domestic leadership position has helped in mitigating the
adverse impact of generic industry risk factors
.
Foreign exchange rate volatility has an impact on the business and on the
foreign currency debt. However, the Company has vast experience in the field to
mitigate the risk considerably.
The proposed'' Indian Postal Act' amendment may have adverse impact on
the Indian courier industry. However, your Company has limited operation in
courier business, which is less than 1% percent of its total operational
income, therefore, it will have marginal impact on the company.
Increasing fuel prices in the recent years have been a matter of concern
for the express distribution and supply chain companies. However, the Company
has well defined diesel price/ATF index to mitigate the impact of fluctuations
in fuel prices to a large extent.
Business Overview
During the year, Income from operations recorded Rs 4577.200 Millions
(previous year Rs. 3612.700 millions) registering the growth of over 27
percent. Profit before interest, depreciation and tax amounted to Rs. 403.300
millions(previous year Rs.276.100 millions) rising over 46 percent. EBITDA
margin, increased, standing at 8.81 percent during the year, up from 7.64
percent from the previous year. Net Profit after Tax amounted to Rs. 200.700
millions for the year ended 30th June, 2006, against Rs. 103.700 millions for
the previous year, excluding Rs. 41.200 millions in respect of Deferred Tax
liability reversal, registering a growth of over 94%.
The following are the segment wise Revenue figures of the Company for the
year under review:
(Rs. in millions)Division 2005-06 2004-05
Express Distribution & Supply Chain 3255.700 2591.400 Coast-to-Coast (Shipping)
490.700 271.300 Fuel Stations
814.800 729.200 Other Income 16.0000
20.800
Total 4577.200 3612.700
Operational
Performance
Gati widened its reach to 594 districts in
During the year, various IT initiatives such as setting up of ` Disaster
Recovery' solutions, portal and single sign on and vehicle tracking system were
taken. These initiatives are to bring operational efficiencies and meet
customer's requirements.
During the year, the Company acquired a vessel 'MV Gati Zipp' (DWT of
6779) and taken a vessel 'MV Clarissa' on time- charter basis to provide better
coastal shipping services in Bay of Bengal. The Company's vessel during the
year, started going to
The Company is transferring its fuel stations division to its
subsidiaries from the next financial year to concentrate on core
business.
With a vision to position the company as number one India centric,
Globally preferred Supply Chain Services and Solution provider in Asia Pacific,
your company has established 100% wholly owned subsidiary namely M/s Gati
Holdings Limited at Mauritius. The Holding company has established further
three step-down subsidiaries namely M/s Gati Asia Pacific Pte Ltd. at
Singapore, M/s Gati Hongkong Ltd. at Hongkong & M/s Gati China Holdings
Ltd. at
Outlook and Future Strategies
The Company continues to be driven by its vision of becoming the leader
in Asia Pacific and a globally preferred provider of India-centric supply chain
services and solutions. The Company's future strategies are focused on
development of both domestics and international business through process
improvement, better cost management, innovative products and services and
establishment of state-of-the-art warehouses. The major thrust will be also on
providing better quality services to its customers.
Vision
Gati shall:
- Be the leader in Asia-Pacific and a globally preferred provider of
India-centric supply chain services and solutions.
- Delight the customers with quality services by setting new trends
through innovation and technology.
- Be the most preferred organization for all its stake holders.
- Be a responsible corporate citizen with unwavering commitment to
environmental protection and conservation
Fixed
Assets:
Tangible
Assets:
- Land
- Building
- Plant And
Machinery
- Computers
- Ships
- Furniture and
Fittings
- Office
equipments
Intangible Assets
- Computer
Software
WEBSITE DETAILS :
Company Details
Gati Limited is a leader in the Express Cargo movement and a
pioneer in Distribution and Supply Chain Management solutions in
Today the company’s turnover is Rs.3613 million, thanks to
the strong team of 6400 dedicated professionals. They presently have the
largest fleet with over 2000 vehicles on road, with a extensive network and
reach of 594 out of 602 districts in
In the decade and a half of their presence in the cargo
management industry, they have set new benchmarks in quality of service and
customer satisfaction. They have gone online for the convenience of their
esteemed customers. Their web-centric solutions add more value and ease to its
customers. They also offer Money Back Guarantee to Express Cargo services.
Their services are customized for corporates, SME markets,
cluster markets, wholesale markets and individuals. They offer customer-centric
solutions. With state-of-the-art technology they have made things easy for
their customers. Their cargo can be tracked in the simplest way possible.
Gati stands committed towards integrity and goodwill to both
its customers and industry by providing services that are path breaking,
essential to the customers business, cost-effective and flexible.
|
Milestones in Gati’s journey |
|
Gati is always dedicated to quality in service. They leave no stone unturned to bring you the
best…on time. This obsession has helped us reach new milestones, which have
become benchmarks for the industry. |
|
1989 |
|
The birth of a new revolution in the
Indian Cargo Industry |
|
Gati was born with the initiation of Gati Cargo Management Services, a
new revolution was started in the Indian Cargo Industry. |
|
|
|
1989 – 1995 |
|
Ideas that changed the way cargo was sent |
|
Ontime, intact. Else your money back.At the time of launch,a Money Back
Guarantee offer was given in case of delay in delivering shipments. |
|
Cash-On-Delivery (COD) |
|
Gati started a unique value added service called Cash On Delivery
(COD) for the advantage of the customers.Call Free Number. Gati was the first
in the logistics industry to introduce the concept of a Call Fee Number |
|
1996 |
|
|
|
Gati, the widest surface network ties-up with Indian Airlines, the
largest network in air to facilitate faster delivery of shipments. |
|
1997 |
|
Looking at the big picture,logisitics |
|
Gati introduced the concept of 3rd party logistics (3PL). And later
started offering complete Logistics and Supply Chain Management solutions. |
|
1998 |
|
Suvidha - Think Courier. Think Suvidha |
|
Gati launches its very own courier service - Suvidha. Now, the very
same service is rechristened as Zipp |
|
1999 |
|
Gati International – Bringing the world
closer |
|
Gati expands to SAARC countries with tie-ups with Bhutan &
Maldives Postal Departments. |
|
P.D. Agarwal Learning Foundation-Providing
the learning curve |
|
The P. D. Agarwal Development Centre was set up in Pune exclusively
for employee training and development. |
|
2001 |
|
Gati Millennium Parcel Express - First
Cargo Train in |
|
Gati launches the first exclusive Cargo Train in association with
Indian Railways between Mumbai and Kolkata. |
|
Gati Nagar |
|
A testimony to Gati’s concern for the Gujarat Earthquake victims. Gati
adopted Maye, a village in Bhuj. Rehabilitated the entire village, which was
affected by |
|
2003 |
|
The Best Logistics Company 2003 - a reward
from the customers |
|
Gati bagged the Voice of Customer Award for “The Best Logistics Company
‘03” in a survey conducted by Frost & Sullivan. |
|
Gati simplified the internal processes for faster and better
communication. And adopted a smarter way to work. |
|
Gati goes global - |
|
Gati forays in |
|
2004 |
|
Gati goes hi-tech - Delivering the future
of logistics |
|
Gati introduces Mechanised racking systems in the automated warehouse
at Panvel, |
Corporate Social Responsiblity initiatives
Gati - The responsible corporate citizen
Gati constantly seeks out avenues where it can contribute With a view to
building a better society. Displaying continuous social responsibility, Gati has
associated with several community development programmes, and has contributed
generously to many a worthy causes.
Earthquake - Maye village, Bhuj District,
Gujarat
In 2003 Gati accepted to develop one of the Govt. schools located at
Banjara Hills. As a contribution to the Janmabhoomi programme by the Government,
Gati’s built a building with basic facilities like Spacious Classrooms, Toilets
and Staff Rooms. The building had 27 rooms and a playground. Gati also provided
furniture for students and staff. Today the strength of the school stands at
1100 students. The housekeeping and security of the school is still under the
purview of Gati.
Tsunami Relief Fund
The tsunami that struck S.E.Asia in December 2004 has been called one of
the worst natural disasters ever, leaving over 1.000 million dead and over 4
million displaced. It’s relief operations has been hailed as one of the fastest
and the most massive ever. Gati was one of the first on the rescue scene,
reaching Nagapattnam and Cuddalore almost immediately. Gati took charge,
brought in food, water, clothing, medication and a team of doctors & cooks.
The team took special care of the children, who were the most affected. Gati
also provided the affected people with essential utensils like plates, glasses
etc.
MC High School, Nagore, Tamil Nadu
After rehabilitating people in Nagapattnam and Cuddalore, Gati took up
the development of MC High School at Nagore, where about 500 students came in
from Tsunami affected families. Gati has already started work on constructing a
building with 18 rooms, kitchen and toilets. More development work is in the
process.
Gati has also actively participated in the Kargil contributions, rescue and
rehabilitation works and other natural disasters in other areas of
Group Companies
In this new age
of convergence, Gati has kept pace with time. Their unmatched infrastructure,
quality people and technological capabilities move your cargo to its
destination on time. They enhanced their services with a greater focus on cargo
management and customer satisfaction with new operations backed by better
strategic planning.
To achieve this aim, they have strategically tied-up with Jubilee Commercial,a
IATA accredited freight forwarder, which started its operations in 1998 as Air
Cargo Agent. The network expanded with time. Today Jubilee Commercial is a
member of the Federation of Freight Forwarders Associations of India,
Federation of Indian Chamber of Commerce and Industry and International
Federation of Freight Forwarders. They are all set to become one-stop solution
provider for all freight forwarding services including customs clearance for
International cargo.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.40.54 |
|
|
1 |
Rs.80.21 |
|
Euro |
1 |
Rs.54.51 |
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 |
7 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
7 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
57 |
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 |
|