MIRA
INFORM REPORT
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Report Date : |
28.03.2007 |
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. |
RATING &
COMMENTS
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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 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. |
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 : |
Located At : v Mumbai v New Delhi v Coimbatore v Bangalore v Gujarat |
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International Offices : |
Located At : v UAE v Singapore v Indonesia |
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
/ SHAREHOLDING PATTERN
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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 |
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. |
GENERAL
INFORMATION
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No. of Employees : |
About 1000 |
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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 |
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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 |
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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
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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 |
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Cash & Bank Balances |
5888.600 |
4793.800 |
1996.300 |
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Loans & Advances |
5450.800 |
3303.600 |
2147.800 |
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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 |
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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
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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 RESULTS
|
Particulars |
30.06.2006 (1st Quarter) |
30.09.2006 (2nd Quarter) |
31.12.2006 (3rd Quarter) |
|
Sales Turnover |
16917.100 |
24087.1 |
26251.800 |
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Other Income |
0.100 |
06.4 |
27.000 |
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Total Income |
16917.200 |
24093.5 |
26278.800 |
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Total Expenditure |
16190.900 |
23318.9 |
25413.000 |
|
Operating Profit |
726.300 |
774.6 |
865.800 |
|
Interest |
404.600 |
496.0 |
391.700 |
|
Gross Profit |
321.700 |
278.6 |
474.100 |
|
Depreciation |
10.000 |
10.0 |
24.200 |
|
Tax |
63.600 |
41.8 |
79.800 |
|
Reported PAT |
248.100 |
226.8 |
370.100 |
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.
200612 Quarter 3
Notes
Prior period Items indicates Prior period adjustments (net) 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 01 Complaints disposed off during the quarter 01 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 January 31, 2007. 2. The Statutory Auditors of the Company have carried out limited review of the financial results of the Company for the quarter ended on December 31, 2006. 3. The Company is a global trading organisation 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 entirely 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. Increase in Staff Cost is primarily for complying with amendments to AS 15. 6. During the quarter, the Company allotted 1,34,17,221 equity shares of Re 1 each upon conversion of 1960 Foreign Currency Convertible Bonds (FCCBs) as a result paid up share capital of the Company has increase to Rs 246.50 million. 7. Net Sales includes income from Operation from a majority owned partnership firm. 8. The Company has successfully completed a FCCB issue of US$ 250 million (including a Green Shoe Option of US$ 30 million)
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
1.49 |
0.92 |
0.92 |
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Long Term Debt
Equity Ratio |
1.24 |
0.74 |
0.38 |
|
Current Ratio |
1.69 |
1.68 |
1.67 |
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TURNOVER RATIOS |
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|
Fixed Assets |
130.50 |
257.80 |
157.83 |
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Inventory |
26.24 |
49.78 |
46.14 |
|
Debtors |
4.26 |
8.23 |
5.57 |
|
Interest Cover
Ratio |
1.36 |
1.61 |
1.51 |
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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.210.00 |
|
Low |
Rs.205.10 |
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:
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).
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.
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.43.14 |
|
UK Pound |
1 |
Rs.84.71 |
|
Euro |
1 |
Rs.57.58 |
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 |
|